Article 1U.K.Scope

1.This Regulation applies to aid granted to undertakings in all sectors, with the exception of:

(a)aid granted to undertakings active in the fishery and aquaculture sectors, as covered by Council Regulation (EC) No 104/2000(1);

(b)aid granted to undertakings active in the primary production of agricultural products as listed in Annex I to the Treaty;

(c)aid granted to undertakings active in the processing and marketing of agricultural products as listed in Annex I to the Treaty, in the following cases:

(i)

when the amount of the aid is fixed on the basis of the price or quantity of such products purchased from primary producers or put on the market by the undertakings concerned,

(ii)

when the aid is conditional on being partly or entirely passed on to primary producers;

(d)aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity;

(e)aid contingent upon the use of domestic over imported goods;

(f)aid granted to undertakings active in the coal sector, as defined in Regulation (EC) No 1407/2002;

(g)aid for the acquisition of road freight transport vehicles granted to undertakings performing road freight transport for hire or reward;

(h)aid granted to undertakings in difficulty.

2.For the purposes of this Regulation:

(a)‘agricultural products’ means products listed in Annex I to the EC Treaty, with the exception of fishery products;

(b)‘processing of agricultural products’ means any operation on an agricultural product resulting in a product which is also an agricultural product, except on farm activities necessary for preparing an animal or plant product for the first sale;

(c)‘marketing of agricultural products’ means holding or display with a view to sale, offering for sale, delivery or any other manner of placing on the market, except the first sale by a primary producer to resellers or processors and any activity preparing a product for such first sale; a sale by a primary producer to final consumers shall be considered as marketing if it takes place in separate premises reserved for that purpose.