Council Regulation (EC) No 1234/2007 (repealed)Show full title

CHAPTER IV Aid schemes

Section I Aid for processing

Subsection I Dried fodder

Article 86 Eligible undertakings

1. Aid for processing in respect of the products of the dried fodder sector shall be granted to undertakings processing products of that sector falling into at least one of the following categories:

(a) processors who have concluded contracts with producers of fodder for drying. Where a contract is a special-order contract for processing of fodder delivered by a producer, it shall include a clause containing an obligation for the processing undertakings to pay the producer the aid received for the quantity processed under the contract;

(b) undertakings which have processed their own crop or, in the case of a group, that of its members;

(c) undertakings which have obtained their supplies from natural or legal persons having concluded contracts with producers of fodder for drying.

2. The aid provided for in paragraph 1 shall be paid in respect of dried fodder that has left the processing plant and meets the following requirements:

(a) its maximum moisture content is from 11 % to 14 % which may vary depending on the presentation of the product;

(b) its minimum total crude protein content in the dry matter is not less than:

(i)

15 % for the products referred to in point (a) and the second indent of point (b) of Part IV of Annex I;

(ii)

45 % for the products referred to in the first indent of point (b) of Part IV of Annex I;

(c) it is of sound and fair merchantable quality.

Article 87 Advance payment

1. Processing undertakings shall be entitled to an advance payment of EUR 19,8 per tonne, or EUR 26,4 per tonne if they have lodged a security of EUR 6,6 per tonne.

Member States shall make the necessary checks to verify entitlement to the aid. Once entitlement has been established the advance shall be paid.

However, the advance may be paid before entitlement has been established provided the processor lodges a security equal to the amount of the advance plus 10 %. This security shall also serve as security for the purposes of the first subparagraph. It shall be reduced to the level specified in the first subparagraph as soon as entitlement to aid has been established and shall be released in full when the balance of the aid is paid.

2. Before an advance can be paid the dried fodder must have left the processing undertaking.

3. Where an advance has been paid, the balance amounting to the difference between the amount of the advance and the total aid due to the processing undertaking shall be paid subject to application of Article 88(2).

4. Where the advance exceeds the total to which the processing undertaking is entitled following the application of Article 88(2), the processor shall reimburse the excess to the competent authority of the Member State on request.

Article 88 Aid rate

1. The aid provided for in Article 86 shall be set at EUR 33/tonne.

2. By way of derogation from paragraph 1, where during a marketing year the volume of dried fodder for which aid is claimed exceeds the guaranteed maximum quantity set out in Article 89, the aid shall be reduced in each Member State in which production exceeds the guaranteed national quantity by reducing expenditure as a function of the percentage of the sum of the overruns represented by the overrun of that Member State.

The reduction shall be set by the Commission at a level ensuring that budget expenditure does not exceed that which would have been attained had the maximum guaranteed quantity not been exceeded.

Article 89 Guaranteed quantity

A maximum guaranteed quantity per marketing year of 4 960 723 tonnes of dehydrated and/or sun-dried fodder for which the aid provided for in Article 86 may be granted is hereby established. That quantity shall be apportioned among the Member States concerned as national guaranteed quantities in accordance with point B of Annex XI.

Article 90 Implementing rules

The Commission shall adopt the detailed rules for the implementation of this Subsection which may, in particular, include rules concerning:

(a)

declarations to be submitted by undertakings when applying for aid;

(b)

conditions to be complied with for the determination of the eligibility for the aid, in particular as regards the keeping of stock records and other supporting documents;

(c)

the granting of the aid provided for in this Subsection and the advance, as well as the release of the securities, provided for in Article 87(1);

(d)

the conditions and criteria to be fulfilled by the undertakings referred to in Article 86 and, in the case where undertakings obtain their supplies from natural or legal persons, rules concerning the guarantees to be provided by those persons;

(e)

the terms of approvals of buyers of fodder for drying, to be applied by the Member States;

(f)

the criteria for determining the requirements laid down in Article 86(2);

(g)

the criteria to be fulfilled for the conclusion of contracts and information which they shall contain;

(h)

the application of the maximum guaranteed quantity laid down in Article 89;

(i)

further requirements to those laid down in Article 86, in particular as regards carotene and fibre content.

Subsection II Flax grown for fibre

Article 91 Eligibility

1. Aid for processing the straw of flax grown for fibre shall be granted to authorised primary processors on the basis of the quantity of fibre actually obtained from straw for which a contract of sale has been concluded with a farmer.

However, in cases where farmers retain ownership of the straw which they are having processed under contract by an authorised primary processor and prove that they have placed the fibres obtained on the market, the aid shall be granted to the farmers.

In cases where the authorised primary processor and the farmer are one and the same person, the contract of sale shall be replaced by a commitment by the party concerned to carry out the processing itself.

2. For the purposes of this Subsection, ‘authorised primary processor’ shall mean a natural or legal person or a group of natural or legal persons, irrespective of its legal status under national law, or that of its members, that has been authorised by the competent authority of the Member State in the territory of which its facilities for producing flax fibre are located.

Article 92 Aid rate

1. The amount of processing aid provided for in Article 91 shall be fixed at EUR 200 per tonne of long flax fibre.

2. The quantities of fibre eligible for aid shall be limited on the basis of the areas which were the subject of one of the contracts or commitments referred to in Article 91.

The limits referred to in the first subparagraph shall be fixed by the Member States so as to comply with the national guaranteed quantities referred to in Article 94.

Article 93 Advance payment

At the request of authorised primary processors, an advance shall be paid on the aid referred to in Article 91 on the basis of the quantity of fibre obtained.

Article 94 Guaranteed quantity

1. A maximum guaranteed quantity of 80 878 tonnes per marketing year shall be established for long flax fibre in respect of which aid may be granted. That quantity shall be apportioned among certain Member States as national guaranteed quantities in accordance with point A of Annex XI.

2. In cases where the fibre obtained in one Member State originates from straw produced in another Member State, the quantities of fibre concerned shall be offset against the national guaranteed quantity of the Member State in which the straw was harvested. The aid shall be paid by the Member State against whose national guaranteed quantity such an offset is made.

Article 95 Implementing rules

The Commission shall adopt the detailed rules for the implementation of this Subsection which may, in particular, include rules concerning:

(a)

the conditions for authorisation of primary processors referred to in Article 91;

(b)

the conditions to be met by approved primary processors as regards the contracts of sale and commitments referred to in Article 91(1);

(c)

the requirements to be complied with by farmers in the case referred to in the second subparagraph of Article 91(1);

(d)

the criteria to be met by long flax fibre;

(e)

the conditions for the grant of aid and the advance payment, and in particular proof of the processing of straw;

(f)

the conditions to be met for fixing the limits referred to in Article 92(2).

Section II Production refund

Article 96 Production refund for starch

1. A production refund may be granted:

(a) for starch obtained from maize, wheat or potatoes and for certain derivatives used in the manufacture of certain products, a list of which shall be drawn up by the Commission;

(b) in the absence of significant domestic production of other cereals for the production of starch, for the following quantities of starch obtained each marketing year in Finland and Sweden from barley and oats, insofar as it does not entail an increase in the level of starch production from those two cereals:

(i)

50 000 tonnes in Finland,

(ii)

10 000 tonnes in Sweden.

2. The refund referred to in paragraph 1 shall be fixed by the Commission periodically.

Article 97 Production refund in the sugar sector

1. A production refund may be granted on the products of the sugar-sector listed in points (b) to (e) of Part III of Annex I if surplus sugar or imported sugar, surplus isoglucose or surplus inulin syrup is not available at a price corresponding to the world price for the manufacturing of the products referred to in Article 62(2)(b) and (c).

2. The production refund referred to in paragraph 1 shall be fixed taking into account in particular the costs arising from the use of imported sugar which the industry would have to bear in the event of supply on the world market and the price of the surplus sugar available on the Community market or the reference price if there is no surplus sugar.

Article 98 Conditions for granting

The Commission shall adopt the conditions for the granting of the production refunds referred to in this Section, as well as the amount of such refunds and, as regards the production refund for sugar provided for in Article 97, the eligible quantities.

Section III Aids in the milk and milk products sector

Article 99 Aid for skimmed milk and skimmed milk powder for use as feedingstuffs

1. Aid shall be granted for skimmed milk and skimmed-milk powder intended for use as feedingstuffs, according to conditions and product standards to be determined by the Commission.

For the purposes of this Article, buttermilk and buttermilk powder shall be regarded as skimmed milk and skimmed-milk powder.

2. Aid amounts shall be fixed by the Commission taking into account the following factors:

(a) the reference price fixed in point (e)(ii) of Article 8(1) for skimmed-milk powder;

(b) development of the supply situation as regards skimmed milk and skimmed-milk powder, and developments in the use thereof as feed;

(c) trends in calf prices;

(d) trends in the market prices for competing proteins as compared with those for skimmed-milk powder.

Article 100 Aid for skimmed milk processed into casein and caseinates

1. Aid shall be granted for Community-produced skimmed milk processed into casein and caseinates, according to conditions and product standards of such milk and the casein or caseinates produced from it to be determined by the Commission.

2. Aid shall be fixed by the Commission taking into account the following factors:

(a) the reference price for skimmed-milk powder, or the market price for first-quality spray-process skimmed-milk powder, if that price exceeds the reference price;

(b) the market prices for casein and caseinates on the Community and world markets.

The aid may vary, according to whether the skimmed milk is processed into casein or caseinates and according to the quality of those products.

Article 101 Aid for the purchase of cream, butter and concentrated butter at reduced prices

Under conditions to be determined by the Commission, when surpluses of milk products build up or are likely to occur, the Commission may decide that aid shall be granted to enable cream, butter and concentrated butter to be purchased at reduced prices:

(a)

by non-profit making institutions and organisations;

(b)

by military forces and units of comparable status in the Member States;

(c)

by manufacturers of pastry products and ice-cream;

(d)

by manufacturers of other foodstuffs to be determined by the Commission;

(e)

for the direct consumption of concentrated butter.

Article 102 Aid for the supply of milk products to pupils

1. Under conditions to be determined by the Commission, Community aid shall be granted for supplying to pupils in educational establishments certain processed milk products to be determined by the Commission falling within CN codes 0401, 0403, 0404 90 and 0406 or CN code 2202 90.

2. By way of derogation from Article 180, Member States may, in addition to Community aid, grant national aid for supplying the products referred to in paragraph 1 to pupils in educational establishments. Member States may finance their national aid by means of a levy on the dairy sector or by any other contribution from the dairy sector.

3. In the case of whole milk, the Community aid shall be EUR 18,15/100 kg.

In the case of other milk products, the amounts of aid shall be determined by the Commission taking into account the milk components of the products concerned.

4. The aid referred to in paragraph 1 shall be granted on a maximum quantity of 0,25 litre of milk equivalent per pupil and per day.

Section IV Aids in the olive oil and table olives sector

Article 103 Aids to operator organisations

1. The Community shall finance, by means of the amounts withheld by Member States in accordance with Article 110i (4) of Regulation (EC) No 1782/2003, three-year work programmes to be drawn up by operator organisations referred to in Article 125 in one or more of the following areas:

(a) the market follow-up and administrative management in the olive oil and table olives sector;

(b) the improvement of the environmental impacts of olive cultivation;

(c) the improvement of the production quality of olive oil and table olives;

(d) the traceability system, the certification and protection of the quality of olive oil and table olives, in particular the monitoring of the quality of olive oils sold to final consumers, under the authority of the national administrations;

(e) the dissemination of information on the activities carried out by operator organisations with the aim of improving the quality of olive oil.

2. The maximum Community funding for the work programmes referred to in paragraph 1 shall be equal to the part of the amounts withheld by the Member States. This funding shall concern the eligible cost with a maximum of:

(a) 100 % for activities in the areas referred to in points (a) and (b) of paragraph 1;

(b) 100 % for fixed assets investments and 75 % for other activities in the area referred to in point (c) of paragraph 1;

(c) 75 % for the work programmes carried out in at least three third countries or non-producing Member States by approved operator organisations from at least two producer Member States in the areas referred to in points (d) and (e) of paragraph 1, and 50 % for the other activities in these areas.

Complementary financing shall be ensured by the Member State up to 50 % of the costs not covered by the Community funding.

The Commission shall establish the detailed rules for the application of this Article and in particular the procedures for the approval of the work programmes by the Member States and the types of activities eligible under such programmes.

3. Without prejudice to any specific provisions which may be adopted by the Commission in accordance with Article 194, Member States shall verify that the conditions for granting Community funding are met. To that end, they shall carry out an audit of work programmes and a control plan involving a sample determined on the basis of a risk analysis and comprising at least 30 % per year of producer organisations and all the other operators' organisations in receipt of Community funding under this Article.

Section V Community Tobacco Fund

Article 104 Tobacco Fund

1. A Community Tobacco Fund (hereinafter referred to as the Fund) shall be set up to finance measures in the following areas:

(a) improving public awareness of the harmful effects of all forms of tobacco consumption, in particular through information and education, support for the collection of data to establish tobacco consumption patterns and to conduct epidemiological studies on nicotinism in the Community, and a study on preventing nicotinism;

(b) specific measures to help tobacco growers to switch to other crops or other economic activities that create employment and studies of the possibilities for tobacco growers to do so.

2. The Fund shall be financed:

(a) for the 2002 harvest by a deduction of 2 % and for the 2003, 2004 and 2005 harvests, of 3 % of the premium provided for in Title I of Regulation (EEC) No 2075/92 as applicable until and including the 2005 harvest for the financing of any kind of measures provided for in paragraph 1;

(b) for the calendar years 2006 and 2007, in accordance with Article 110m of Regulation (EC) No 1782/2003.

3. Detailed rules for the application of this Article shall be adopted by the Commission.

Section VI Special provisions for the apiculture sector

Article 105 Scope

1. With a view to improving general conditions for the production and marketing of apiculture products, Member States may draw up a national programme for a period of three years (hereinafter referred to as the ‘apiculture programme’).

2. By way of derogation from Article 180, Articles 87, 88 and 89 of the Treaty shall not apply:

(a) to the financial contribution provided by Member States for measures subject to Community support in accordance with this Section;

(b) to specific national aids for the protection of apiaries disadvantaged by structural or natural conditions or under economic development programmes, except for those allocated for production or trade.

Aids referred to in point (b) shall be notified to the Commission by Member States together with the communication of the apiculture programme in accordance with Article 109.

Article 106 Measures eligible for aid

The measures which may be included in the apiculture programme shall be the following:

(a)

technical assistance to beekeepers and groupings of beekeepers;

(b)

control of varroasis;

(c)

rationalisation of transhumance;

(d)

measures to support laboratories carrying out analyses of the physico-chemical properties of honey;

(e)

measures to support the restocking of hives in the Community;

(f)

cooperation with specialised bodies for the implementation of applied research programmes in the field of beekeeping and apiculture products.

Measures financed from the EAFRD in accordance with Council Regulation (EC) No 1698/2005(1) shall be excluded from the apiculture programme.

Article 107 Study of the production and marketing structure in the beekeeping sector

To be eligible for the part-financing provided for in Article 108(1), Member States shall carry out a study of the production and marketing structure in the beekeeping sector in their territory.

Article 108 Financing

1. The Community shall provide part-financing for the apiculture programmes equivalent to 50 % of the expenditure borne by Member States.

2. Expenditure relating to the measures taken under the apiculture programmes shall be made by the Member States by 15 October each year.

Article 109 Consultation

The apiculture programme shall be drawn up in close collaboration with the representative organisations and beekeeping cooperatives. It shall be submitted to the Commission for approval.

Article 110 Implementing rules

The Commission shall establish the detailed rules for the application of this Section.

Section VII Aids in the silkworm sector

Article 111 Aid to be granted to silkworm rearers

1. Aid shall be granted for silkworms falling within CN-code ex 0106 90 00 and for silkworm eggs falling within CN-code ex 0511 99 85 reared within the Community.

2. The aid shall be granted to silkworm rearers for each box of silkworm eggs used, on condition that the boxes contain a minimum quantity of eggs, to be determined, and that the worms have been successfully reared.

3. The aid per box of silkworm eggs used shall be EUR 133,26.

Article 112 Implementing rules

Detailed rules for the application of this Section shall be adopted by the Commission which shall cover, in particular, the minimum quantity of eggs referred to in Article 111(2).

(1)

OJ L 277, 21.10.2005, p. 1.