[F1 [F2CHAPTER 6b U.K. INTEGRATION OF TOBACCO, OLIVE OIL, COTTON, HOPS PAYMENTS, SUGAR BEET, CANE, CHICORY AND BANANA SUPPORT INTO THE SINGLE PAYMENT SCHEME]

Article 48c U.K. General rules

1. Where a Member State has made use of the option provided for in Article 71 of Regulation (EC) No 1782/2003 and decided to apply the single payment scheme in 2006, the rules laid down in Title III of Regulation (EC) No 1782/2003 and in Chapters 1 to 6 of this Regulation shall apply.

[F3However, the reduction referred to in Article 41(2) of Regulation (EC) No 1782/2003 shall not apply to the reference amount calculated for sugar beet, cane and chicory support in accordance with point K of Annex VII to Regulation (EC) No 1782/2003.]

[F42. Where a Member State has applied the single payment scheme in 2005 and without prejudice to the third subparagraph of Article 71(1) of Regulation (EC) No 1782/2003, for the purposes of the establishment of the amount and the determination of payment entitlements in the framework of the integration of tobacco, olive oil and cotton payments as well as sugar beet, cane and chicory support in the single payment scheme, Articles 37 and 43 of that Regulation shall apply subject to the rules established in Article 48d of this Regulation and, in case the Member State has made use of the option provided for in Article 59 of Regulation (EC) No 1782/2003, in Article 48e of this Regulation.

[F5For the purposes of the establishment of the amount and the determination of payment entitlements in the framework of the integration of banana support into the single payment scheme, Articles 37 and 43 of Regulation (EC) No 1782/2003 shall apply subject to the rules established in Article 48d of this Regulation.] ]

3. Where a Member State has applied the single payment scheme in 2005, the Member State shall ensure the respect of the national ceiling fixed in Annex VIII to Regulation (EC) No 1782/2003.

[F24. As the case may be, Article 41(2) of Regulation (EC) No 1782/2003 shall apply to the value of all the payment entitlements existing before the integration of banana support and/or dairy payments, and to the reference amounts calculated for banana support and/or dairy payments.]

[F45. Where a Member State has applied the single payment scheme in 2005, the percentage of reduction fixed by the Member State in accordance with Article 42(1) of Regulation (EC) No 1782/2003 shall apply in 2006 to the tobacco, olive oil, cotton, sugar beet, cane and chicory reference amounts to be integrated in the single payment scheme.

[F5The percentage of reduction fixed by the Member State in accordance with Article 42(1) of Regulation (EC) No 1782/2003 in the first year of implementation of the single payment scheme shall apply to the banana reference amounts to be integrated into the single payment scheme.] ]

6. The five-year period provided for in Article 42(8) of Regulation (EC) No 1782/2003 shall not restart for the payment entitlements coming from the national reserve whose amount has been recalculated or increased in accordance with Articles 48d and 48e of this Regulation.

[F47. Where a Member State has applied the single payment scheme in 2005, for the purpose of the establishment of the payment entitlements in relation to cotton, tobacco, olive oil, hops, sugar beet, cane and chicory, the first year of application of the single payment scheme referred to in Articles 7(1), 12 to 17 and 20 shall be 2006.

[F5For the purpose of the establishment of the payment entitlements in relation to banana support, the first year of application of the single payment scheme referred to in Articles 7(1), 12 to 17 and 20 shall be 2007.]

[F28. Where the inclusion of the sugar and banana reference amounts calculated in accordance with point K and L of Annex VII to Regulation (EC) No 1782/2003 in the single payment scheme risks making it impossible to respect the time-limits set out in Article 34 of Regulation (EC) No 1782/2003 and Article 12 of this Regulation, the Member States shall extend those time-limits by one month.] ]

Article 48d U.K. Specific rules

[F21. If the farmer has not been allocated or has not bought payment entitlements by the last date for applying for the establishment of payment entitlements for 2006, he shall receive payment entitlements calculated in accordance with Articles 37 and 43 of Regulation (EC) No 1782/2003 for tobacco, olive oil and cotton payments as well as sugar beet, cane and chicory support. For the purpose of the integration of the banana support into the single payment scheme, the year shall be 2007.

The first subparagraph shall also apply when the farmer has leased in payment entitlements for 2005 and/or 2006, and, for the purpose of the integration of the banana support, and/or for 2007.]

2. If the farmer has been allocated or has bought or received payment entitlements by the last date for applying for the establishment of payment entitlements for 2006, the value and number of his payment entitlements shall be recalculated as follows:

[F4(a) the number of payment entitlements shall be equal to the number of payment entitlements he owns, increased by the number of hectares established in accordance with Article 43 of Regulation (EC) No 1782/2003 for tobacco, olive oil and cotton as well as for sugar beet, cane and chicory;

(b) the value shall be obtained by dividing the sum of the value of the payment entitlements he owns and the reference amount calculated in accordance with Article 37 of Regulation (EC) No 1782/2003 for sugar beet, cane and chicory used for the production of sugar or inuline syrup and for tobacco, olive oil and cotton by the number established in accordance with point (a) of this paragraph.]

[F2If the farmer has been allocated or has bought or received payment entitlements by the last day for applying for the establishment of payment entitlements for 2007 in the framework of the integration of banana support, the value and number of his payment entitlements shall be recalculated as follows:

(a) the number of payment entitlements shall be equal to the number of payment entitlements he owns, increased by the number of hectares established in accordance with Article 43 of Regulation (EC) No 1782/2003 for bananas;

(b) the value shall be obtained by dividing the sum of the value of the payment entitlements he owns and the reference amount calculated in accordance with Article 37 of Regulation (EC) No 1782/2003 for banana support by the number established in accordance with point (a) of this paragraph.

Set aside payment entitlements shall not be taken into account in the calculation referred to in the first and second subparagraph.]

3. By way of derogation from Article 27, the contractual clause referred to in that Article may be inserted or modified in a lease contract by the date for lodging an application under the single payment scheme in 2006 at the latest.

4. Payment entitlements leased out before the date for lodging an application under the single payment scheme in 2006 shall be taken into account in the calculation referred to in paragraph 2. However, payment entitlements leased out via a contractual clause as referred to in Article 27 before 15 May 2004 shall be taken into account in the calculation referred to in paragraph 2 of this Article only if the lease conditions may be adjusted.

[F55. For the purpose of the integration of banana support in the single payment scheme, the year 2006 referred to in paragraphs 3 and 4 shall be replaced by 2007.]

Article 48e U.K. Regional implementation

[F41. Where a Member State has made use of the option provided for in Article 59(1) of Regulation (EC) No 1782/2003, all payment entitlements shall be increased by a supplementary amount corresponding to the increase of the regional ceiling in the corresponding year, divided by the total number of payment entitlements established in the region at the date for lodging an application for the single payment scheme at the latest.]

2. Where a Member State has made use of the option provided for in Article 59(1) and (3) of Regulation (EC) No 1782/2003, without prejudice to Article 48 of that Regulation, a farmer shall receive a supplementary amount per payment entitlement.

The supplementary amount shall consist of the sum of the following:

[F4(a) the corresponding part of the increase of the regional ceiling divided by the total number of payment entitlements established in the region at the date for lodging an application for the single payment scheme at the latest;

(b) the reference amount corresponding for each farmer to the remaining part of the increase of the regional ceiling divided by the number of payment entitlements that the farmer owns by the date for lodging an application for the single payment scheme in 2006 at the latest.]

However, in case of set aside entitlements, the farmer shall receive only the supplementary amount calculated according to point (a) per set aside entitlement.]