ANNEX III Non-exhaustive list of actions and expenditure eligible under operational programmes referred to in Article 31(1)

1.

Specific costs for:

  • quality improvement measures;

  • biological plant protection materials (such as pheromones and predators) whether used in organic, integrated or conventional production;

  • environmental actions referred to in Article 33(5) of Regulation (EU) No 1308/2013;

  • organic, integrated or experimental production, including specific costs for organic seeds and seedlings;

  • monitoring of compliance with the standards referred to in Title II of Implementing Regulation (EU) No 543/2011, with plant-health rules and with maximum level of residues.

Specific costs shall mean the additional costs, calculated as the difference between the conventional costs and the costs actually incurred, and income foregone resulting from an action excluding additional income and costs savings.

For each category of eligible specific costs referred to in the first paragraph, in order to calculate additional costs compared with conventional ones, Member States may fix, in a duly justified way, standard flat-rates or scales of unit costs.

2.

Administrative and personnel costs relating to the implementation of operational funds and operational programmes which shall include:

(a)

overheads specifically related to the operational fund or operational programme, including management and personnel costs, reports and evaluation studies, and the costs of keeping accounts and the management of accounts, by means of the payment of a standard flat rate up to a maximum of 2 % of the operational fund as approved in accordance with Article 33 and up to a maximum of EUR 180 000, comprising both the Union financial assistance and the producer organisation contribution.

In the case of operational programmes submitted by recognised associations of producer organisations, overheads shall be calculated as the addition of the overheads of each producer organisation as provided for in the first paragraph but limited to a maximum of EUR 1 250 000 per association of producer organisations.

Member States may restrict funding to the real costs, in which case they should define the eligible costs;

(b)

personnel costs including legally compulsory charges linked to wages and salaries, if these are directly borne by the producer organisation, association of producer organisation or subsidiaries in the situation referred to in Article 22(8) subject to Member States' approval, by cooperatives which are a member of the producer organisation, resulting from measures:

(i)

to improve or maintain a high level of quality or environmental protection;

(ii)

to improve the level of marketing.

The implementation of these measures shall essentially involve the use of qualified personnel. If, in such cases, the producer organisation uses its own employees or producer members, the time worked shall be documented.

If a Member State wishes to provide an alternative to restricting funding to the real costs, for all the eligible personnel costs referred to in this point, it shall fix, ex ante and in a duly justified way, standard flat rates or scales of unit costs up to a maximum of 20 % of the approved operational fund. This percentage may be increased in duly justified cases.

When requesting those standard flat rates, producer organisations shall furnish proof of the implementation of the action to the satisfaction of the Member State;

(c)

legal and administrative costs of mergers of producer organisations, as well as legal and administrative costs related to creating transnational producer organisations or transnational associations of producer organisations; feasibility studies and proposals commissioned by producer organisations in this respect.

3.

Costs of meetings and training programmes where they are related to the operational programme, including daily allowances, transport and accommodation costs, where applicable, on a standard flat-rate or scales of unit costs basis.

4.

Promotion of:

  • brands/trademarks of producer organisation, associations of producer organisations and subsidiaries in the situation referred to in Article 22(8),

  • generic promotion and promotion of quality labels,

  • costs for promotional printing on packaging or on labels under any of the first and second indents on the condition that it is provided for in the operational programme.

Geographical names are allowed only if:

(a)

they are a protected designation of origin or a protected geographical indication, covered by Regulation (EU) No 1151/2012 of the European Parliament and of the Council(1); or

(b)

in all cases where point (a) does not apply, these geographical names are secondary to the principal message.

Promotional material for generic promotion and promotion of quality labels shall bear the emblem of the European Union (in the case of visual media only) and include the following statement: ‘Campaign financed with the aid of the European Union’. Producer organisations, associations of producer organisations and subsidiaries in the situation referred to in Article 22(8) of this Regulation shall not use the emblem of the European Union in promotion of their brands/trademarks.

5.

Costs for transport, sorting and packing related to free distribution as referred to in Articles 16 and 17 of Implementing Regulation (EU) 2017/892.

6.

Purchase of land not built on where purchase is necessary to carry out an investment included in the operational programme provided it costs less than 10 % of all the eligible expenditure on the operation concerned; in exceptional and duly justified cases, a higher percentage can be fixed for operations concerning environmental conservation.

7.

Purchase of equipment, including second hand equipment provided it has not been purchased with Union or national support in a period of seven years preceding the purchase.

8.

Investments in means of transport where the producer organisation duly justifies to the Member State concerned that the means of transport shall only be used for transport internal to the producer organisation; and investments in additional on-the-truck facilities for cold-storage or controlled atmosphere transport.

9.

Leasing, including of second hand equipment which has not received Union or national support in a period of seven years preceding the leasing, within the limits of the net market value of the item.

10.

Hire of equipment or other items where economically justified as an alternative to purchase, at the approval of the Member State.

11.

Investments in shares or capital of companies contributing directly to the achievement of the goals of the operational programme.