# Official Journal L 295/2008

| | ISSN 1725-2555 |
| --- | --- |
| Official Journal
  of the European Union | L 295 |
| | |
| English edition | Legislation | Volume 514 November 2008 |

ISSN 1725-2555

Official Journal

of the European Union

L 295

English edition

Legislation

Volume 514 November 2008

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| Contents | | I   Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory | page |
| --- | --- | --- | --- |
| | | REGULATIONS |
| | | Commission Regulation (EC) No 1076/2008 of 3 November 2008 establishing the standard import values for determining the entry price of certain fruit and vegetables | 1 |
| | * | Commission Regulation (EC) No 1077/2008 of 3 November 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 1966/2006 on electronic recording and reporting of fishing activities and on means of remote sensing and repealing Regulation (EC) No 1566/2007 | 3 |
| | * | Commission Regulation (EC) No 1078/2008 of 3 November 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 861/2006 as regards the expenditure incurred by Member States for the collection and management of the basic fisheries data | 24 |

Contents

I   Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory

page

REGULATIONS

Commission Regulation (EC) No 1076/2008 of 3 November 2008 establishing the standard import values for determining the entry price of certain fruit and vegetables

1

*

Commission Regulation (EC) No 1077/2008 of 3 November 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 1966/2006 on electronic recording and reporting of fishing activities and on means of remote sensing and repealing Regulation (EC) No 1566/2007

3

*

Commission Regulation (EC) No 1078/2008 of 3 November 2008 laying down detailed rules for the implementation of Council Regulation (EC) No 861/2006 as regards the expenditure incurred by Member States for the collection and management of the basic fisheries data

24

| | | II   Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory |
| --- | --- | --- |
| | | DECISIONS |
| | | Commission |
| | | 2008/830/EC |
| | * | Commission Decision of 30 April 2008 on State aid C 21/07 (ex N 578/06) which Hungary is planning to implement in favour of IBIDEN Hungary Gyártó Kft.
  (notified under document number C(2008) 1342)

   (
  1
  ) | 34 |
| | | 2008/831/EC |
| | * | Commission Decision of 31 October 2008 setting a new deadline for the submission of dossiers for certain substances to be examined under the 10-year work programme referred to in Article 16(2) of Directive 98/8/EC
  (notified under document number C(2008) 6266)

   (
  1
  ) | 50 |
| | | 2008/832/EC |
| | * | Commission Decision of 3 November 2008 concerning the non-inclusion of bromuconazole in Annex I to Council Directive 91/414/EEC and the withdrawal of authorisations for plant protection products containing that substance
  (notified under document number C(2008) 6290)

   (
  1
  ) | 53 |

II   Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory

DECISIONS

Commission

2008/830/EC

*

Commission Decision of 30 April 2008 on State aid C 21/07 (ex N 578/06) which Hungary is planning to implement in favour of IBIDEN Hungary Gyártó Kft.
  (notified under document number C(2008) 1342)

   (
  1
  )

(notified under document number C(2008) 1342)

1

34

2008/831/EC

*

Commission Decision of 31 October 2008 setting a new deadline for the submission of dossiers for certain substances to be examined under the 10-year work programme referred to in Article 16(2) of Directive 98/8/EC
  (notified under document number C(2008) 6266)

   (
  1
  )

(notified under document number C(2008) 6266)

1

50

2008/832/EC

*

Commission Decision of 3 November 2008 concerning the non-inclusion of bromuconazole in Annex I to Council Directive 91/414/EEC and the withdrawal of authorisations for plant protection products containing that substance
  (notified under document number C(2008) 6290)

   (
  1
  )

(notified under document number C(2008) 6290)

1

53

| | | |
| --- | --- | --- |
| | * | Note to the reader (see page 3 of the cover) | s3 |

*

Note to the reader (see page 3 of the cover)

Note to the reader

s3

| | |
| --- | --- |
| | (1)   Text with EEA relevance |

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(1)   Text with EEA relevance

1

| EN | Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.
  The titles of all other Acts are printed in bold type and preceded by an asterisk. |
| --- | --- |

EN

Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.

The titles of all other Acts are printed in bold type and preceded by an asterisk.

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I Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory

REGULATIONS

| 4.11.2008 | EN | Official Journal of the European Union | L 295/1 |
| --- | --- | --- | --- |

4.11.2008

EN

Official Journal of the European Union

L 295/1

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COMMISSION REGULATION (EC) No 1076/2008

of 3 November 2008

establishing the standard import values for determining the entry price of certain fruit and vegetables

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (1),

Having regard to Commission Regulation (EC) No 1580/2007 of 21 December 2007 laying down implementing rules for Council Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 1182/2007 in the fruit and vegetable sector (2), and in particular Article 138(1) thereof,

Whereas:

Regulation (EC) No 1580/2007 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in Annex XV, Part A thereto,

HAS ADOPTED THIS REGULATION:

Article 1

The standard import values referred to in Article 138 of Regulation (EC) No 1580/2007 are fixed in the Annex hereto.

Article 2

This Regulation shall enter into force on 4 November 2008.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 3 November 2008.

For the Commission

Jean-Luc DEMARTY

Director-General for Agriculture and Rural Development

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(1)  OJ L 299, 16.11.2007, p. 1.

1

(2)  OJ L 350, 31.12.2007, p. 1.

2

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ANNEX

Standard import values for determining the entry price of certain fruit and vegetables

| (EUR/100 kg) |
| --- |
| CN code | Third country code (1) | Standard import value |
| 0702 00 00 | MA | 36,3 |
| MK | 43,0 |
| TR | 81,0 |
| ZZ | 53,4 |
| 0707 00 05 | JO | 168,2 |
| MA | 26,4 |
| TR | 143,3 |
| ZZ | 112,6 |
| 0709 90 70 | MA | 39,5 |
| TR | 127,4 |
| ZZ | 83,5 |
| 0805 50 10 | AR | 82,2 |
| MA | 81,6 |
| TR | 93,5 |
| ZA | 91,9 |
| ZZ | 87,3 |
| 0806 10 10 | BR | 232,0 |
| TR | 127,8 |
| US | 242,1 |
| ZA | 218,0 |
| ZZ | 205,0 |
| 0808 10 80 | CA | 96,3 |
| CL | 64,4 |
| CN | 66,8 |
| MK | 37,6 |
| NZ | 82,2 |
| US | 112,0 |
| ZA | 91,2 |
| ZZ | 78,6 |
| 0808 20 50 | CN | 55,9 |
| US | 208,3 |
| ZZ | 132,1 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

MA

36,3

MK

43,0

TR

81,0

ZZ

53,4

0707 00 05

JO

168,2

MA

26,4

TR

143,3

ZZ

112,6

0709 90 70

MA

39,5

TR

127,4

ZZ

83,5

0805 50 10

AR

82,2

MA

81,6

TR

93,5

ZA

91,9

ZZ

87,3

0806 10 10

BR

232,0

TR

127,8

US

242,1

ZA

218,0

ZZ

205,0

0808 10 80

CA

96,3

CL

64,4

CN

66,8

MK

37,6

NZ

82,2

US

112,0

ZA

91,2

ZZ

78,6

0808 20 50

CN

55,9

US

208,3

ZZ

132,1

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(1)  Nomenclature of countries laid down by Commission Regulation (EC) No 1833/2006 (OJ L 354, 14.12.2006, p. 19). Code ‘ZZ’ stands for ‘of other origin’.

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| 4.11.2008 | EN | Official Journal of the European Union | L 295/3 |
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4.11.2008

EN

Official Journal of the European Union

L 295/3

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COMMISSION REGULATION (EC) No 1077/2008

of 3 November 2008

laying down detailed rules for the implementation of Council Regulation (EC) No 1966/2006 on electronic recording and reporting of fishing activities and on means of remote sensing and repealing Regulation (EC) No 1566/2007

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1966/2006 of 21 December 2006 on electronic recording and reporting of fishing activities and on means of remote sensing (1), and in particular Article 5 thereof,

Whereas:

| (1) | Article 22(1)(c) of Council Regulation (EC) No 2371/2002 (2) provides that activities within the scope of the Common Fisheries Policy are prohibited unless a master, without undue delay records and reports information on fishing activities, including landings and transhipments and that copies of the records shall be made available to the authorities. |
| --- | --- |

(1)

Article 22(1)(c) of Council Regulation (EC) No 2371/2002 (2) provides that activities within the scope of the Common Fisheries Policy are prohibited unless a master, without undue delay records and reports information on fishing activities, including landings and transhipments and that copies of the records shall be made available to the authorities.

| (2) | In accordance with Council Regulation (EC) No 1966/2006 the obligation to electronically record and transmit logbook, landing declaration and transhipment data applies to masters of Community fishing vessels exceeding 24 m length overall within 24 months of entry into force of the implementing rules and to masters of Community fishing vessels exceeding 15 m length overall within 42 months of entry into force of the implementing rules. |
| --- | --- |

(2)

In accordance with Council Regulation (EC) No 1966/2006 the obligation to electronically record and transmit logbook, landing declaration and transhipment data applies to masters of Community fishing vessels exceeding 24 m length overall within 24 months of entry into force of the implementing rules and to masters of Community fishing vessels exceeding 15 m length overall within 42 months of entry into force of the implementing rules.

| (3) | Daily reporting of fishing activities creates the potential to enhance significantly the efficiency and effectiveness of monitoring, control and surveillance operations both at sea and on land. |
| --- | --- |

(3)

Daily reporting of fishing activities creates the potential to enhance significantly the efficiency and effectiveness of monitoring, control and surveillance operations both at sea and on land.

| (4) | Article 6 of Council Regulation (EEC) No 2847/93 of 12 October 1993 establishing a control system applicable to the Common Fisheries Policy (3) provides that masters of Community fishing vessels shall keep a logbook of their operations. |
| --- | --- |

(4)

Article 6 of Council Regulation (EEC) No 2847/93 of 12 October 1993 establishing a control system applicable to the Common Fisheries Policy (3) provides that masters of Community fishing vessels shall keep a logbook of their operations.

| (5) | Article 8 of Council Regulation (EEC) No 2847/93 provides that the master of each Community fishing vessel having an overall length equal to or more than 10 m or his representative, shall after each fishing trip and within 48 hours of landing submit a declaration to the competent authorities of the Member States where the landing takes place. |
| --- | --- |

(5)

Article 8 of Council Regulation (EEC) No 2847/93 provides that the master of each Community fishing vessel having an overall length equal to or more than 10 m or his representative, shall after each fishing trip and within 48 hours of landing submit a declaration to the competent authorities of the Member States where the landing takes place.

| (6) | Article 9 of Council Regulation (EEC) No 2847/93 provides that auction centres or other bodies or persons authorised by Member States which are responsible for the first marketing of fishery products shall, upon first sale, submit a sales note to the competent authorities in whose territory the first marketing takes place. |
| --- | --- |

(6)

Article 9 of Council Regulation (EEC) No 2847/93 provides that auction centres or other bodies or persons authorised by Member States which are responsible for the first marketing of fishery products shall, upon first sale, submit a sales note to the competent authorities in whose territory the first marketing takes place.

| (7) | Article 9 of Council Regulation (EEC) No 2847/93 also provides that where the first marketing of fisheries products does not take place in the Member State where the products have been landed, the Member State responsible for monitoring the first marketing shall ensure that a copy of the sales note is submitted to the authorities responsible for monitoring the landing of the products as soon as possible. |
| --- | --- |

(7)

Article 9 of Council Regulation (EEC) No 2847/93 also provides that where the first marketing of fisheries products does not take place in the Member State where the products have been landed, the Member State responsible for monitoring the first marketing shall ensure that a copy of the sales note is submitted to the authorities responsible for monitoring the landing of the products as soon as possible.

| (8) | Article 19 of Council Regulation (EEC) No 2847/93 requires Member States to create computerised databases and to establish a validation system comprising in particular cross-checks and verification of data. |
| --- | --- |

(8)

Article 19 of Council Regulation (EEC) No 2847/93 requires Member States to create computerised databases and to establish a validation system comprising in particular cross-checks and verification of data.

| (9) | Article 19b and 19e of Council Regulation (EEC) No 2847/93 require masters of Community fishing vessels to make effort reports and to record them in their logbook. |
| --- | --- |

(9)

Article 19b and 19e of Council Regulation (EEC) No 2847/93 require masters of Community fishing vessels to make effort reports and to record them in their logbook.

| (10) | Article 5 of Council Regulation (EC) No 2347/2002 (4) requires the master of a Community fishing vessel holding a deep-sea fishing permit to record in a logbook or in a form provided by the flag Member State information concerning fishing gear characteristics and fishing operations. |
| --- | --- |

(10)

Article 5 of Council Regulation (EC) No 2347/2002 (4) requires the master of a Community fishing vessel holding a deep-sea fishing permit to record in a logbook or in a form provided by the flag Member State information concerning fishing gear characteristics and fishing operations.

| (11) | Council Regulation (EC) No 768/2005 (5) establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy provides for the operation of joint deployment plans. |
| --- | --- |

(11)

Council Regulation (EC) No 768/2005 (5) establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy provides for the operation of joint deployment plans.

| (12) | Commission Regulation (EC) No 1566/2007 (6) laid down detailed rules for the implementation of Council Regulation (EC) No 1966/2006 as regards electronic recording and reporting of fishing activities. |
| --- | --- |

(12)

Commission Regulation (EC) No 1566/2007 (6) laid down detailed rules for the implementation of Council Regulation (EC) No 1966/2006 as regards electronic recording and reporting of fishing activities.

| (13) | It is necessary, at present, to further detail and clarify some provisions contained in Regulation (EC) No 1566/2007.
  To that end it is appropriate to repeal Regulation (EC) No 1566/2007 and to replace it by a new Regulation. |
| --- | --- |

(13)

It is necessary, at present, to further detail and clarify some provisions contained in Regulation (EC) No 1566/2007.

To that end it is appropriate to repeal Regulation (EC) No 1566/2007 and to replace it by a new Regulation.

| (14) | The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Fisheries and Aquaculture, |
| --- | --- |

(14)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Fisheries and Aquaculture,

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Scope

1.   This Regulation shall apply to:

| (a) | Community fishing vessels exceeding 24 metres length overall, as from 1 January 2010; |
| --- | --- |

(a)

Community fishing vessels exceeding 24 metres length overall, as from 1 January 2010;

| (b) | Community fishing vessels exceeding 15 metres length overall, as from 1 July 2011; |
| --- | --- |

(b)

Community fishing vessels exceeding 15 metres length overall, as from 1 July 2011;

| (c) | registered buyers, registered auctions or other entities or persons authorised by Member States that are responsible for the first sale of fisheries products with an annual financial turnover in first sales of fishery products in excess of EUR 400 000, as from 1 January 2009. |
| --- | --- |

(c)

registered buyers, registered auctions or other entities or persons authorised by Member States that are responsible for the first sale of fisheries products with an annual financial turnover in first sales of fishery products in excess of EUR 400 000, as from 1 January 2009.

2.   Notwithstanding paragraph 1(a), this Regulation shall apply as from a date earlier than 1 January 2010 to Community fishing vessels flying the flag of a given Member State and exceeding 24 metres length overall, if it is so provided by that State.

3.   Notwithstanding paragraph 1(b), this Regulation shall apply as from a date earlier than 1 July 2011 to Community fishing vessels flying the flag of a given Member State and exceeding 15 metres length overall, if it is so provided by that State.

4.   Notwithstanding the dates laid down in paragraphs 1(a) and 1(b), a Member State may decide to apply this Regulation to vessels of 15 metres or less flying its flag prior to those dates in accordance with Article 3(2) of Council Regulation (EC) No 1966/2006.

5.   Member States may conclude bilateral agreements on the use of electronic reporting systems on vessels flying their flags within the waters under their sovereignty or jurisdiction on condition that the vessels comply with all rules laid down in this Regulation.

6.   This Regulation shall apply to Community fishing vessels regardless of the waters in which they carry out fishing operations or of the ports in which they land.

7.   This Regulation shall not apply to Community fishing vessels used exclusively for exploitation of aquaculture.

Article 2

List of operators and vessels

1.   Each Member State shall establish a list of registered buyers, registered auctions or other entities or persons that it has authorised and that are responsible for the first sale of fishery products with an annual financial turnover of fishery products in excess of EUR 400 000. The first reference year shall be 2007 and the list shall be updated on 1 January of the current year (year n) on the basis of the annual financial turnover of fishery products in excess of EUR 400 000 in year n-2. That list shall be published on an official web site of the Member State.

2.   Each Member State shall establish and periodically update lists of Community fishing vessels flying its flag to which the provisions of this Regulation apply in accordance with Article 1(2), (3), (4) and (5). The lists shall be published on an official web site of the Member State and shall be in the format to be decided in consultations between the Member States and the Commission.

Article 3

Definitions

For the purpose of this Regulation the following definitions shall apply:

| 1. | ‘fishing operation’ means all activities in connection with searching for fish, the shooting, setting and hauling of a fishing gear and the removal of any catch from the gear; |
| --- | --- |

1.

‘fishing operation’ means all activities in connection with searching for fish, the shooting, setting and hauling of a fishing gear and the removal of any catch from the gear;

| 2. | ‘joint deployment plan’ means a plan setting out operational arrangements for the deployment of available means of control and inspection. |
| --- | --- |

2.

‘joint deployment plan’ means a plan setting out operational arrangements for the deployment of available means of control and inspection.

CHAPTER II

ELECTRONIC TRANSMISSION

Article 4

Information to be transmitted by masters of vessels or their representatives

1.   Masters of Community fishing vessels shall transmit logbook and transhipment data by electronic means to the competent authorities of the flag Member State.

2.   Masters of Community fishing vessels or their representatives shall transmit landing declaration data by electronic means to the competent authorities of the flag State.

3.   When a Community fishing vessel lands its catch in a Member State other than the flag Member State, the competent authorities of the flag Member States shall immediately upon receipt forward the landing declaration data by electronic means to the competent authorities of the Member State where the catch was landed.

4.   Masters of Community fishing vessels shall, where required under Community rules, transmit by electronic means to the competent authority of the flag Member State prior notification of entry into port at the time that it is required to be transmitted.

5.   When a vessel intends to enter a port in a Member State other than the flag Member State, the competent authorities of the flag Member State shall immediately upon receipt forward the prior notification referred to in paragraph 4 by electronic means to the competent authorities of the coastal Member State.

Article 5

Information to be transmitted by entities or persons responsible for first sale or take-over

1.   Registered buyers, registered auctions or other entities or persons authorised by Member States, that are responsible for the first sale of fishery products shall transmit information required to be recorded in a sales note by electronic means to the competent authorities of the Member State in whose territory the first marketing takes place.

2.   When the first marketing takes place in a Member State other than the flag Member State, the competent authorities of the Member State where the first marketing takes place shall ensure that a copy of the sales notes data is submitted by electronic means to the competent authorities of the flag Member State on receipt of relevant information.

3.   Where the first marketing of fisheries products does not take place in the Member State where the products have been landed, the Member State where the first marketing takes place shall ensure that a copy of the sales note data is submitted by electronic means immediately on receipt of relevant information, to the following authorities:

| (a) | the competent authorities of the Member State where the fishery products have been landed; and |
| --- | --- |

(a)

the competent authorities of the Member State where the fishery products have been landed; and

| (b) | the competent authorities of the flag Member State of the vessel that landed the fishery products. |
| --- | --- |

(b)

the competent authorities of the flag Member State of the vessel that landed the fishery products.

4.   The holder of the take-over declaration shall transmit by electronic means the information required to be recorded in a take-over declaration to the competent authorities of the Member State in whose territory the take-over physically takes place.

Article 6

Frequency of transmission

1.   The master shall transmit the electronic logbook information to the competent authorities of the flag Member State at least on a daily basis not later than 24.00 hours even when there are no catches. He shall also send such data:

| (a) | at the request of the competent authority of the flag Member State; |
| --- | --- |

(a)

at the request of the competent authority of the flag Member State;

| (b) | immediately after the last fishing operation has been completed; |
| --- | --- |

(b)

immediately after the last fishing operation has been completed;

| (c) | before entering into port; |
| --- | --- |

(c)

before entering into port;

| (d) | at the time of any inspection at sea; |
| --- | --- |

(d)

at the time of any inspection at sea;

| (e) | at the time of events defined in Community legislation or by the flag State. |
| --- | --- |

(e)

at the time of events defined in Community legislation or by the flag State.

2.   The master may transmit corrections to the electronic logbook and transhipment declarations up to the last transmission made at the end of the fishing operations and before entering into port. Corrections shall be easily identifiable. All original electronic logbook data and corrections to those data shall be stored by the competent authorities of the flag Member State.

3.   The master or his representatives shall transmit the landing declaration by electronic means immediately after the landing declaration has been established.

4.   The master of the donor vessel and the receiving vessel shall transmit transhipment data by electronic means immediately after the transhipment.

5.   The master shall keep a copy of the information referred to in paragraph 1 on board the fishing vessel for the duration of each absence from port and until the landing declaration has been submitted.

6.   When a fishing vessel is in port, does not carry fish on board and the master has submitted the landing declaration, transmission in accordance with paragraph 1 of this Article may be suspended subject to prior notification to the Fisheries Monitoring Centre of the flag Member State. Transmission shall be resumed when the vessel leaves the port. Prior notification is not required for vessels equipped with and transmitting data via VMS (Vessel Monitoring System).

Article 7

Format for transmission of data from a vessel to the competent authority of its flag State

Each Member State shall determine the format for the transmission of data from vessels flying its flag to its competent authorities.

Article 8

Return messages

Member States shall ensure that return messages are issued to vessels flying their flag for each transmission of logbook, transhipment and landing data. The return message shall contain an acknowledgement of receipt.

CHAPTER III

EXEMPTIONS

Article 9

Exemptions

1.   A Member State may exempt masters of vessels flying its flag from the obligations referred to in Article 4(1) and from the obligation to have means of electronic data transmission on board as referred to in Article 1(1) and (2) of Regulation (EC) No 1966/2006 are absent from port for 24 hours or less within the waters under its sovereignty or jurisdiction on condition that they do not land their catch outside the territory of the flag Member State.

2.   Masters of Community fishing vessels that electronically record and report data on their fishing activities shall be exempt from the obligation to complete paper logbook, landing and transhipment declarations.

3.   Masters of Community vessels, or their representatives, that land their catch in a Member State other than the flag Member State shall be exempt from the requirement to submit a paper landing declaration to the coastal Member State.

4.   Member States may conclude bilateral agreements on the use of electronic reporting systems on vessels flying their flags within the waters under their sovereignty or jurisdiction. The vessels falling within the scope of such agreements shall be exempt from completing a paper logbook within those waters.

5.   Masters of Community vessels that record in their electronic logbooks the fishing effort information required under Article 19b of Regulation (EEC) No 2847/93 shall be exempt from the obligation to transmit effort reports by telex, by VMS, by fax, by telephone or by radio.

CHAPTER IV

FUNCTIONING OF ELECTRONIC RECORDING AND REPORTING SYSTEMS

Article 10

Provisions in the event of technical failure or non-functioning of electronic recording and reporting systems

1.   In the event of a technical failure or non-functioning of the electronic recording and reporting system the master or the owner of the vessel or their representative shall communicate logbook, landing declaration and transhipment data to the competent authorities of the flag Member State in a way established by the flag Member State on a daily basis and no later than 24.00 hours even when there are no catches. Data shall also be sent:

| (a) | at the request of the competent authority of the flag State; |
| --- | --- |

(a)

at the request of the competent authority of the flag State;

| (b) | immediately after the last fishing operation has been completed; |
| --- | --- |

(b)

immediately after the last fishing operation has been completed;

| (c) | before entering into port; |
| --- | --- |

(c)

before entering into port;

| (d) | at the time of any inspection at sea; |
| --- | --- |

(d)

at the time of any inspection at sea;

| (e) | at the time of events defined in Community legislation or by the flag State. |
| --- | --- |

(e)

at the time of events defined in Community legislation or by the flag State.

2.   The competent authorities of the flag Member State shall update the electronic logbook immediately on receipt of the data referred to in paragraph 1.

3.   A Community fishing vessel shall not leave a port, following a technical failure or non-functioning of its electronic recording and reporting system before it is functioning to the satisfaction of the competent authorities of the flag Member State or before it is otherwise authorised to leave by the competent authorities of the flag Member State. The flag Member State shall immediately notify the coastal Member State when it has authorised a vessel flying its flag to leave a port in the coastal Member State.

Article 11

Non-receipt of data

1.   When the competent authorities of a flag Member State have not received data transmissions in accordance with Article 4(1) and (2) they shall notify the master or the owner of the vessel or their representative thereof as soon as possible. If, in respect of a particular vessel, this situation occurs more than three times within a period of one year, the flag Member State shall ensure that the electronic reporting system in question is checked. The Member State concerned shall investigate the matter in order to determine why data have not been received.

2.   When the competent authorities of a flag Member State have not received data transmissions in accordance with Article 4(1) and (2) and the last position received through the Vessel Monitoring System was from within the waters of a coastal Member State they shall notify the competent authorities of that coastal Member State thereof as soon as possible.

3.   The master or the owner of the vessel or their representative shall send all data for which a notification was received in accordance with paragraph 1 to the competent authorities of the flag Member State immediately on receipt of the notification.

Article 12

Data access failure

1.   When the competent authorities of a coastal Member State observe a vessel flying the flag of another Member State in their waters and cannot access logbook or transhipment data in accordance with Article 15 they shall request the competent authorities of the flag Member State to ensure access.

2.   If the access referred to in paragraph 1 is not ensured within four hours of the request, the coastal Member State shall notify the flag Member State. On receipt of the notification the flag Member State shall immediately send the data to the coastal Member State by any available electronic means.

3.   If the coastal Member State does not receive the data referred to in paragraph 2, the master or owner of the vessel or their representative shall send the data and a copy of the return message referred to in Article 8 to the competent authorities of the coastal Member State on request and by any available electronic means.

4.   If the master or owner of the vessel or their representative can not provide the competent authorities of the coastal Member State with a copy of the return message referred to in Article 8, fishing activities in the waters of the coastal Member State by the vessel concerned shall be prohibited until the master or his representative can provide a copy of the return message or information referred to in Article 6(1) to the said authorities.

Article 13

Data on the functioning of the electronic reporting system

1.   Member States shall maintain databases on the functioning of their electronic reporting system. They shall contain at least the following information:

| (a) | the list of fishing vessels flying their flag whose electronic reporting systems have experienced technical failure or have failed to function; |
| --- | --- |

(a)

the list of fishing vessels flying their flag whose electronic reporting systems have experienced technical failure or have failed to function;

| (b) | the number of electronic logbook transmissions received per day and the average number of transmissions received per vessel, broken down by flag Member State; |
| --- | --- |

(b)

the number of electronic logbook transmissions received per day and the average number of transmissions received per vessel, broken down by flag Member State;

| (c) | the number of landing declaration, transhipment declaration, takeover declaration and sales note transmissions received, broken down by flag State. |
| --- | --- |

(c)

the number of landing declaration, transhipment declaration, takeover declaration and sales note transmissions received, broken down by flag State.

2.   Summaries of information on the functioning of Member States' electronic reporting systems shall be sent to the Commission at its request in a format and at time intervals to be decided in consultation between Member States and the Commission.

CHAPTER V

DATA EXCHANGE AND ACCESS

Article 14

Format for exchange of information between Member States

1.   Information shall be exchanged between Member States using the format defined in the Annex from which extensible mark-up language (XML) is derived.

2.   Corrections to the information referred to in paragraph 1 shall be clearly identified.

3.   When a Member State receives electronic information from another Member State it shall ensure that a return message is issued to the competent authorities of that Member State. The return message shall contain an acknowledgement of receipt.

4.   Data elements in the Annex that are mandatory for masters to record in their logbook according to Community rules shall also be mandatory in exchanges between Member States.

Article 15

Access to data

1.   A flag Member State shall ensure that a coastal Member State has on-line access in real time to electronic logbook and landing declaration data of vessels flying its flag when conducting fishing operations in the waters under the sovereignty or jurisdiction or entering a port of the coastal Member State.

2.   The data referred to in paragraph 1 shall at least cover the data from the last departure from port to the time when the landing is completed. Data from fishing operations for the previous 12 months shall be made available on request.

3.   The master of a Community fishing vessel shall have secure access to his own electronic logbook information stored in the database of the flag Member State on a 24-hour, seven-days-a-week basis.

4.   A coastal Member State shall grant on-line access to its logbook database to a fishery patrol vessel of another Member State in the context of a joint deployment plan.

Article 16

Exchange of data between Member States

1.   Access to the data referred to in Article 15, paragraph 1 shall be by secure Internet connection on a 24-hour, seven-days-a-week basis.

2.   Member States shall exchange the relevant technical information to ensure mutual access to electronic logbooks.

3.   Member States shall:

| (a) | ensure that data received according to this Regulation are safely stored in computerised databases and take all necessary measures to ensure that they are treated as confidential; |
| --- | --- |

(a)

ensure that data received according to this Regulation are safely stored in computerised databases and take all necessary measures to ensure that they are treated as confidential;

| (b) | take all necessary technical measures to protect such data against any accidental or illicit destruction, accidental loss, deterioration, distribution or unauthorised consultation. |
| --- | --- |

(b)

take all necessary technical measures to protect such data against any accidental or illicit destruction, accidental loss, deterioration, distribution or unauthorised consultation.

Article 17

Single authority

1.   In each Member State, a single authority shall be responsible for transmitting, receiving, managing and processing all data covered by this Regulation.

2.   Member States shall exchange lists and contact details of the authorities referred to in paragraph 1 and shall inform the Commission thereof.

3.   Any changes in the information referred to in paragraphs 1 and 2 shall be communicated to the Commission and other Member States without delay.

CHAPTER VI

FINAL PROVISIONS

Article 18

Repeal

1.   Regulation (EC) No 1566/2007 is hereby repealed.

2.   References to the repealed Regulation shall be construed as references to this Regulation.

Article 19

Entry into force

This Regulation shall enter into force on 1 January 2008.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 3 November 2008.

For the Commission

Joe BORG

Member of the Commission

---

(1)  OJ L 409, 30.12.2006, p. 1. Corrected by OJ L 36, 8.2.2007, p. 3.

1

(2)  OJ L 358, 31.12.2002, p. 59.

2

(3)  OJ L 261, 20.10.1993, p. 1.

3

(4)  OJ L 351, 28.12.2002, p. 6.

4

(5)  OJ L 128, 21.5.2005, p. 1.

5

(6)  OJ L 340, 22.12.2007, p. 46.

6

---

ANNEX (1)

ELECTRONIC INFORMATION EXCHANGE FORMAT

| No | Element or attribute name | Code | Description and content | Compulsory (C)/Compulsory if (CIF) (2)/Optional (O) (3) |
| --- | --- | --- | --- | --- |
| 1 | ERS message | | | |
| 2 | Start of message | ERS | Tag indicating start of the ERS message | C |
| 3 | Address | AD | Destination for the message (ISO alpha-3 country code) | C |
| 4 | From | FR | Country transmitting the data (ISO alpha-3 country code) | C |
| 5 | Message (record) number | RN | Serial number of the message (format CCC99999999) | C |
| 6 | Message (record) date | RD | Date of transmission of the message (YYYY-MM-DD) | C |
| 7 | Message (record) time | RT | Time of retransmission of the message (HH:MM in UTC) | C |
| 8 | Message type | TM | Type of message (Logbook: type = LOG, Acknowledgment: type = RET, Correction: type = COR or sales notes: type = SAL) | C |
| 9 | Test message | TS | Presence indicates message is a test message | CIF TEST |
| 10 | | | | |
| 11 | When message type is RET


  (TM=RET) | | RET is an Acknowledgement message | |
| 12 | The following attributes need to be specified | | The message acknowledges the good or bad reception of the message identified by RN | |
| 13 | Sent message number | RN | Serial number of the message being acknowledged by the recipient FMC (CCC99999999) | C |
| 14 | Return status | RS | Indicates the status of the received message/report. The code list will be placed at the EC website with a location to be specified | C |
| 15 | Reason for Rejection (if any) | RE | Free text giving an explanation for the rejection | O |
| 16 | | | | |
| 17 | When message is of type COR


  (TM=COR) | | COR is a Correction message | |
| 18 | The following attributes need to be specified | | The message is correcting a previous message, the information contained inside the message fully replaces the previous message, identified by RN | |
| 19 | Original message number | RN | Message number of the message being corrected (format CCC99999999) | C |
| 20 | Reason for correction | RE | Code list to be found at http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm | O |
| 21 | | | | |
| 22 | When message type: LOG


  (TM=LOG) | | LOG is a Logbook declaration | |
| 23 | The following attributes need to be specified | | The LOG contains one or more of the following declarations DEP, FAR, TRA, COE, COX, ENT, EXI, CRO, TRZ, (INS), DIS, PRN, EOF, RTP, LAN | |
| 24 | Start of log record | LOG | Tag indicating start of the logbook record | C |
| 25 | Vessel's Community fleet register (CFR) number | IR | With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number | C |
| 26 | Vessel’s main identification | RC | International radio call sign | CIF CFR not up to date |
| 27 | Vessel’s external identification | XR | Side (hull) registration number of the vessel | O |
| 28 | Name of vessel | NA | Name of the vessel | O |
| 29 | Name of the master | MA | Name of the master (any change during trip to be sent in next LOG transmission) | C |
| 30 | Master address | MD | Address of master (any change during trip to be sent in next LOG transmission) | C |
| 31 | Country of registration | FS | Flag State of vessel registration. ISO alpha-3 country code | C |
| 32 | | | | |
| 33 | DEP: declaration element | | Required on every departure from port, to be sent in next message | |
| 34 | Start of departure declaration | DEP | Tag indicating start of the departure from port declaration | C |
| 35 | Date | DA | Date of departure (YYYY-MM-DD) | C |
| 36 | Time | TI | Time of departure (HH:MM in UTC) | C |
| 37 | Port name | PO | Port code (ISO alpha-2 country code + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified | C |
| 38 | Anticipated activity | AA | Code list to be found on the EC website with a location to be specified | CIF effort reporting required for intended activity |
| 39 | Gear type | GE | Letter code according to FAO's ‘International Standard Statistical Classification of the Fishing Gear’ | CIF fishing activity intended |
| 40 | Catch on board sub-declaration (list of species SPE sub-declarations) | SPE | (See details of sub-elements and attributes of SPE) | CIF catch on board the vessel |
| 41 | | | | |
| 42 | FAR: fishing activity declaration | | Required by midnight on each day at sea or in response to request from the Flag State | |
| 43 | Start of fishing activity report declaration | FAR | Tag indicating start of a fishing activity report declaration | C |
| 44 | Last report marker | LR | Marker that indicates that this is the last FAR report that will be sent (LR=1) | CIF last message |
| 45 | Inspection marker | IS | Marker that indicates this fishing activity report was received following an inspection carried out onboard the vessel. (IS=1) | CIF inspection occurred |
| 46 | Date | DA | Date for which fishing activities being reported whilst vessel at sea (YYYY-MM-DD) | C |
| 47 | Time | TI | Start time of fishing activity (HH:MM in UTC) | O |
| 48 | Relevant area sub-declaration | RAS | Specified if no catch was made (for effort purposes). List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS). | CIF |
| 49 | Fishing operations | FO | Number of fishing operations | O |
| 50 | Fishing time | DU | Duration of fishing activity in minutes — defined as fishing time equals the number of hours spent at sea, minus the time spent in transit to, between and returning from the fishing grounds, dodging, inactive or waiting for repair | CIF required (3) |
| 51 | Gear sub-declaration | GEA | (See details of sub-elements and attributes of GEA) | CIF any undertaken |
| 52 | Gear loss sub-declaration | GLS | (See details of sub-elements and attributes of GLS) | CIF required by the rules (3) |
| 53 | Catch sub-declaration (list of species SPE sub-declarations) | SPE | (See details of sub-elements and attributes of SPE) | CIF any fish caught |
| 54 | | | | |
| 55 | RLC: relocation declaration | | Used when catch (all or parts thereof) is transferred or moved from shared fishing gear to a vessel or from a vessel's hold or its fishing gear to a keep net, container or cage (outside the vessel) in which the live catch is kept until landing | |
| 56 | Start of relocation declaration | RLC | Tag indicating start of a relocation declaration | C |
| 57 | Date | DA | Date of catch relocation whilst vessel at sea (YYYY-MM-DD) | CIF |
| 58 | Time | TI | Time of relocation (HH:MM in UTC) | CIF |
| 59 | Receiving vessel CFR number | IR | With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number | CIF joint fishing operation and EU vessel |
| 60 | Receiving vessel radio call sign | TT | International radio call sign of the receiving vessel | CIF joint fishing operation |
| 61 | Flag State of receiving vessel | TC | Flag State of vessel taking the catch (ISO alpha-3-country code) | CIF joint fishing operation |
| 62 | Other partner vessel(s) CFR numbers | RF | With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number | CIF joint fishing operation and partner is EU vessel |
| 63 | Other partner vessel(s) radio call signs | TF | International radio call sign of the partner vessel(s) | CIF joint fishing operation and other partners |
| 64 | Flag State(s) of other partner vessel(s) | FC | Flag State of the partner vessel(s) (ISO alpha-3 country code) | CIF joint fishing operation and other partners |
| 65 | Relocated to | RT | 3-letter code for relocation destination (Keep net: KNE, cage: CGE, etc.) Codes will be placed on the EC website with a location to be specified | CIF |
| 66 | POS sub-declaration | POS | Location of transfer (see details of sub-elements and attributes of POS) | CIF |
| 67 | Catch sub-declaration (list of species SPE sub-declarations) | SPE | Amount of fish relocated (see details of sub-elements and attributes of SPE) | CIF |
| 68 | | | | |
| 69 | TRA: transhipment declaration | | For every transhipment of catch, declaration required from both donor and recipient | |
| 70 | Start of transhipment declaration | TRA | Tag indicating start of a transhipment declaration | C |
| 71 | Date | DA | Start of TRA (YYYY-MM-DD) | C |
| 72 | Time | TI | Start of TRA (HH:MM in UTC) | C |
| 73 | Relevant area sub-declaration | RAS | The geographical area in which the transhipment took place. The list of codes for fishing and effort/conservation areas will be placed on the EC website with a location to be specified. (See details of sub-elements and attributes of RAS). | CIF took place at sea |
| 74 | Port name | PO | Port code (ISO alpha-2 country code + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified | CIF took place in port |
| 75 | Receiving vessel's CFR number | IR | With format AAAXXXXXXXXX where A is an uppercase letter being the country of registration within the EU and X being a letter or a number | CIF fishing vessel |
| 76 | Transhipment: receiving vessel | TT | If donor vessel — International radio call sign of the receiving vessel | C |
| 77 | Transhipment: Flag State of receiving vessel | TC | If donor vessel — Flag State of vessel receiving the transhipment (ISO alpha-3 country code) | C |
| 78 | Donor vessel's CFR number | RF | With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number | CIF community vessel |
| 79 | Transhipment: (donor) vessel | TF | If receiving vessel — International radio call sign of the donor vessel | C |
| 80 | Transhipment: Flag State of donor vessel | FC | If receiving vessel — Flag State of the donor vessel (ISO alpha-3 country code) | C |
| 81 | POS sub-declaration | POS | (See details of sub-elements and attributes of POS) | CIF required (3) (NEAFC or NAFO waters) |
| 82 | Catch transhipped (list of species SPE sub-declarations) | SPE | (See details of sub-elements and attributes of SPE) | C |
| 83 | | | | |
| 84 | COE: entry in zone declaration | | If fishing in stock recovery area or Western Waters | |
| 85 | Start of Effort declaration: Entry in zone | COE | Tag indicating start of an declaration on entry into the effort zone | C |
| 86 | Date | DA | Date of entry(YYYY-MM-DD) | C |
| 87 | Time | TI | Time of entry(HH:MM in UTC) | C |
| 88 | Target specie(s) | TS | Species to be targeted whilst in zone (Demersal, Pelagic, Scallops, Crabs).
  Full list to be found at the EC website with a location to be specified | C |
| 89 | Relevant area sub-declaration | RAS | Geographical location of the vessel.
  The list of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS). | C |
| 90 | Catch on board sub-declaration (list of species SPE sub-declarations) | SPE | (See details of sub-elements and attributes of SPE) | O |
| 91 | COX: exit from zone declaration | | If fishing in stock recovery area or Western Waters | |
| 92 | Start of effort declaration: Exit out of zone | COX | Tag indicating start of a declaration on exit of the effort zone | C |
| 93 | Date | DA | Date of exit (YYYY-MM-DD) | C |
| 94 | Time | TI | Time of exit (HH:MM in UTC) | C |
| 95 | Target specie(s) | TS | Species to be targeted whilst in zone (Demersal, Pelagic, Scallops, Crabs).
  Full list to be found at the EC website with a location to be specified | CIF not conducting other fishing activities |
| 96 | Relevant area sub-declaration | RAS | Geographical location of the vessel. The list of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS). | CIF not conducting other fishing activities |
| 97 | Position sub-declaration | POS | Position of exit (see details of sub-elements and attributes of POS) | C |
| 98 | Catch taken sub-declaration | SPE | Catch taken whilst in zone (see details of sub-elements and attributes of SPE) | O |
| 99 | | | | |
| 100 | CRO: crossing of zone declaration | | If crossing stock recovery or Western Water zones | |
| 101 | Start of effort declaration: crossing of a zone | CRO | Tag indicating start of a declaration on crossing the effort zone (no fishing operation). Only DA TI POS needs to be specified in COE and COX declarations | C |
| 102 | Entry in zone declaration | COE | (See details of sub-elements and attributes of COE) | C |
| 103 | Exit from zone declaration | COX | (See details of sub-elements and attributes of COX) | C |
| 104 | | | | |
| 105 | TRZ: trans-zonal fishing declaration | | If carrying out trans-zonal fishing | |
| 106 | Start of Effort declaration: trans-zonal fishing | TRZ | Tag indicating start of a declaration on trans-zonal fishing | C |
| 107 | Entry declaration | COE | First entry (see details of sub-elements and attributes of COE) | C |
| 108 | Exit declaration | COX | Last exit (see details of sub-elements and attributes of COX) | C |
| 109 | | | | |
| 110 | INS: inspection declaration | | To be provided by the authorities, but not the master | |
| 111 | Start of inspection declaration | INS | Tag indicating start of an inspection sub-declaration | O |
| 112 | Country of inspection | IC | ISO alpha-3 country code | O |
| 113 | Assigned inspector | IA | For each state to provide a 4-digit number identifying their inspector | O |
| 114 | Date | DA | Date of inspection (YYYY-MM-DD) | O |
| 115 | Time | TI | Time of inspection (HH:MM in UTC) | O |
| 116 | Position sub-declaration | POS | Position of inspection (see details of sub-elements and attributes of POS) | O |
| 117 | | | | |
| 118 | DIS: discard declaration | | | CIF required (3) (NEAFC, NAFO) |
| 119 | Start of discard declaration | DIS | Tag containing details of fish discarded | C |
| 120 | Date | DA | Date of discard (YYYY-MM-DD) | C |
| 121 | Time | TI | Time of discard (HH:MM in UTC) | C |
| 122 | Position sub-declaration | POS | Position when discarded (see details of sub-elements and attributes of POS) | C |
| 123 | Discarded fish sub-declaration | SPE | Discarded fish (see details of sub-elements and attributes of SPE) | C |
| 124 | | | | |
| 125 | PRN: prior notification of return declaration | | To be transmitted prior to return to port or if required by Community rules | CIF required (3) |
| 126 | Start of prior notification | PRN | Tag indicating start of a prior notification declaration | C |
| 127 | Predicted date | PD | Intended date of arrival/crossing (YYYY-MM-DD) | C |
| 128 | Predicted time | PT | Intended time of arrival/crossing (HH:MM in UTC) | C |
| 129 | Port name | PO | Port code (2-letter country code (ISO alpha-2 country code) + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified | C |
| 130 | Relevant area sub-declaration | RAS | Fishing area to be used for prior notification of cod. List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS). | CIF in the Baltic Sea |
| 131 | Predicted landing date | DA | Intended date of landing (YYYY-MM-DD) in the Baltic | CIF in the Baltic Sea |
| 132 | Predicted landing time | TI | Intended time of landing (HH:MM in UTC) in the Baltic | CIF in the Baltic Sea |
| 133 | Catch on board sub-declarations (list of species SPE sub-declarations) | SPE | Catch on board (if pelagic need ICES zone). (See details of the sub-declaration SPE) | C |
| 134 | Position sub-declaration | POS | Position for entering/leaving area/zone. (See details of sub-elements and attributes of POS). | CIF |
| 135 | | | | |
| 136 | EOF: end of fishing declaration | | To be transmitted immediately after last fishing operation and before returning to port and landing fish | |
| 137 | Start of Sign off of catch declaration | EOF | Tag indicating completion of fishing operations prior to return to port | C |
| 138 | Date | DA | Date signed off (YYYY-MM-DD) | C |
| 139 | Time | TI | Time signed off (HH:MM in UTC) | C |
| 140 | | | | |
| 141 | RTP: return to port declaration | | To be transmitted on entry into port, after any PRN declaration and before landing any fish | |
| 142 | Start of return to port declaration | RTP | Tag indicating the return to the harbour at the end of the fishing trip | C |
| 143 | Date | DA | Date of return (YYYY-MM-DD) | C |
| 144 | Time | TI | Time of return (HH:MM in UTC) | C |
| 145 | Port name | PO | Port code (ISO alpha-2 country code + 3-letter port code) list (CCPPP) to be found at the EC website with a location to be specified | C |
| 146 | Reason for return | RE | Reason for returning to port (e.g. sheltering, taking on stores, landing.) The list of reason codes will be placed at the EC website with a location to be specified | CIF |
| 147 | | | | |
| 148 | LAN: landing declaration | | To be transmitted after landing of catch | |
| 149 | Start of landing declaration | LAN | Tag indicating start of a landing declaration | C |
| 150 | Date | DA | (YYYY-MM-DD – date of landing | C |
| 151 | Time | TI | HH:MM in UTC – time of landing | C |
| 152 | Sender type | TS | 3 letter code (MAS: master, REP: his representative, AGE: agent) | C |
| 153 | Port name | PO | Port code (2-letter country code (ISO alpha-2 country code) + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified | C |
| 154 | Catch landed sub-declaration (list of SPE with PRO sub-declarations) | SPE | Species, fishing areas, landed weights, related gears and presentations (see details of sub-elements and attributes of SPE) | C |
| 155 | | | | |
| 156 | POS: position sub-declaration | | | |
| 157 | Start of position sub-declaration | POS | Tag containing coordinates of the geographical position | C |
| 158 | Latitude (decimal) | LT | Latitude expressed in accordance with the WGS84 format used for VMS | C |
| 159 | Longitude (decimal) | LG | Longitude expressed in accordance with the WGS84 format used for VMS | C |
| 160 | | | | |
| 161 | GEA: gear deployment sub-declaration | | | |
| 162 | Start of gear deployment sub-declaration | GEA | Tag containing coordinates of the geographical position | C |
| 163 | Gear type | GE | Gear code according to FAO’s ‘International Standard Statistical Classification of the Fishing Gear’ | C |
| 164 | Mesh size | ME | Size of mesh (in millimetres) | CIF gear has mesh subject to size requirement |
| 165 | Gear capacity | GC | Gear size and number | CIF required for type of gear deployed |
| 166 | Fishing operations | FO | Number of fishing operations (hauls) per 24 hour period | CIF if vessel licensed to fish deep sea stocks |
| 167 | Fishing time | DU | Number of hours the gear was deployed | CIF if vessel licensed to fish deep sea stocks |
| 168 | Gear shot sub-declaration | GES | Gear shot sub-declaration (see details of sub-elements and attributes of GES) | CIF required (3) (vessel uses static or fixed gear) |
| 169 | Gear retrieved sub-declaration | GER | Gear retrieved sub-declaration (see details of sub-elements and attributes of GER) | CIF required (3) (vessel uses static or fixed gear) |
| 170 | Gillnet deployment sub-declaration | GIL | Gillnet deployment sub-declaration (see details of sub-elements and attributes of GIL) | CIF vessel has permits for ICES Zones IIIa, IVa, IVb, Vb, VIa, VIb, VIIb, c, j, k and XII |
| 171 | Fishing depths | FD | A distance from water surface to the lowest part of the fishing gear (in metres). Applies to vessels using towed gear, long lines and fixed nets | CIF deep sea fishing and in Norwegian waters |
| 172 | Average number of hooks used on long lines | NH | The average number of hooks used on the long lines | CIF deep sea fishing and in Norwegian waters |
| 173 | The average length of the nets | GL | The average length of nets when using fixed nets (in metres) | CIF deep sea fishing and in Norwegian waters |
| 174 | The average height of the nets | GD | The average height of nets when using fixed nets (in metres) | CIF deep sea fishing and in Norwegian waters |
| 175 | | | | |
| 176 | GES: gear shot sub-declaration | | | CIF required by the rules (3) |
| 177 | Start of position sub-declaration | GES | Tag containing gear shot info | C |
| 178 | Date | DA | Date gear shot (YYYY-MM-DD) | C |
| 179 | Time | TI | Time gear shot (HH:MM in UTC) | C |
| 180 | POS sub-declaration | POS | Position where gear shot (see details of sub-elements and attributes of POS) | C |
| 181 | | | | |
| 182 | GER: gear retrieved sub-declaration | | | CIF required by the rules (3) |
| 183 | Start of Position sub-declaration | GER | Tag containing gear retrieved info | C |
| 184 | Date | DA | Date gear retrieved (YYYY-MM-DD) | C |
| 185 | Time | TI | Time gear retrieved (HH:MM in UTC) | C |
| 186 | POS sub-declaration | POS | Position where gear retrieved (see details of sub-elements and attributes of POS) | C |
| 187 | GIL Gillnet deployment sub-declaration | | | CIF vessel has permits for ICES Zones IIIa, IVa, IVb, Vb, VIa, VIb, VIIb, c, j, k and XII |
| 188 | Start of gillnet sub-declaration | GIL | Tag starting gillnet deployment | |
| 189 | Nominal length of one net | NL | Information required to be recorded during each fishing trip (in metres) | C |
| 190 | Number of nets | NN | Number of nets in a fleet | C |
| 191 | Number of fleets | FL | Number of fleets deployed | C |
| 192 | POS sub-declaration | POS | Position of each fleet deployment (see details of sub-elements and attributes of POS) | C |
| 193 | Depth of each fleet deployed | FD | Depth for each fleet deployed (a distance from water surface to the lowest part of the fishing gear) | C |
| 194 | Soak time of each fleet deployed | ST | Soak time for each fleet deployed | C |
| 195 | | | | |
| 196 | GLS: gear loss sub-declaration | | Loss of fixed gear | CIF required by the rules (3) |
| 197 | Start of GLS sub-declaration | GLS | Data on fixed gear lost | |
| 198 | Date gear lost | DA | Date gear lost (YYYY-MM-DD) | C |
| 199 | Number of units | NN | Number of gears lost | CIF |
| 200 | POS sub-declaration | POS | Last known position of gear (see details of sub-elements and attributes of POS) | CIF |
| 201 | | | | |
| 202 | RAS: Relevant area sub-declaration | RAS | Relevant area depending on the relevant reporting requirement – at least one field should be filled in. List of codes will be placed at the EC website with a location to be specified. | CIF |
| 203 | FAO area | FA | FAO area (e.g. 27) | CIF |
| 204 | FAO (ICES) sub-area | SA | FAO (ICES) sub-area (e.g. 3) | CIF |
| 205 | FAO (ICES) division | ID | FAO (ICES) division (e.g. d) | CIF |
| 206 | FAO (ICES) sub-division | SD | FAO (ICES) sub-division (e.g. 24) (Meaning together with the above 27.3.d.24) | CIF |
| 207 | Economic zone | EZ | Economic zone | CIF |
| 208 | Ices statistical rectangle | SR | ICES statistical rectangle (e.g. 49E6) | CIF |
| 209 | Fishing effort zone | FE | List of codes will be placed at the EC website with a location to be specified. | CIF |
| 210 | Position sub-declaration | POS | (See details of sub-elements and attributes of POS). | CIF |
| 211 | | | | |
| 212 | SPE: species sub-declaration | | Aggregate quantity by species | |
| 213 | Start of SPE sub-declaration | SPE | Details of fish caught by species | C |
| 214 | Species name | SN | Name of the species (FAO alpha-3 code) | C |
| 215 | Weight of fish | WT | Depending on context this item to be either






  1. | Total weight of fish (in kilograms) in catch period |

No

Element or attribute name

Code

Description and content

Compulsory (C)/Compulsory if (CIF) (2)/Optional (O) (3)

1

ERS message

2

Start of message

ERS

Tag indicating start of the ERS message

C

3

Address

AD

Destination for the message (ISO alpha-3 country code)

C

4

From

FR

Country transmitting the data (ISO alpha-3 country code)

C

5

Message (record) number

RN

Serial number of the message (format CCC99999999)

C

6

Message (record) date

RD

Date of transmission of the message (YYYY-MM-DD)

C

7

Message (record) time

RT

Time of retransmission of the message (HH:MM in UTC)

C

8

Message type

TM

Type of message (Logbook: type = LOG, Acknowledgment: type = RET, Correction: type = COR or sales notes: type = SAL)

C

9

Test message

TS

Presence indicates message is a test message

CIF TEST

10

11

When message type is RET

(TM=RET)

RET is an Acknowledgement message

12

The following attributes need to be specified

The message acknowledges the good or bad reception of the message identified by RN

13

Sent message number

RN

Serial number of the message being acknowledged by the recipient FMC (CCC99999999)

C

14

Return status

RS

Indicates the status of the received message/report. The code list will be placed at the EC website with a location to be specified

C

15

Reason for Rejection (if any)

RE

Free text giving an explanation for the rejection

O

16

17

When message is of type COR

(TM=COR)

COR is a Correction message

18

The following attributes need to be specified

The message is correcting a previous message, the information contained inside the message fully replaces the previous message, identified by RN

19

Original message number

RN

Message number of the message being corrected (format CCC99999999)

C

20

Reason for correction

RE

Code list to be found at http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm

O

21

22

When message type: LOG

(TM=LOG)

LOG is a Logbook declaration

23

The following attributes need to be specified

The LOG contains one or more of the following declarations DEP, FAR, TRA, COE, COX, ENT, EXI, CRO, TRZ, (INS), DIS, PRN, EOF, RTP, LAN

24

Start of log record

LOG

Tag indicating start of the logbook record

C

25

Vessel's Community fleet register (CFR) number

IR

With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number

C

26

Vessel’s main identification

RC

International radio call sign

CIF CFR not up to date

27

Vessel’s external identification

XR

Side (hull) registration number of the vessel

O

28

Name of vessel

NA

Name of the vessel

O

29

Name of the master

MA

Name of the master (any change during trip to be sent in next LOG transmission)

C

30

Master address

MD

Address of master (any change during trip to be sent in next LOG transmission)

C

31

Country of registration

FS

Flag State of vessel registration. ISO alpha-3 country code

C

32

33

DEP: declaration element

Required on every departure from port, to be sent in next message

34

Start of departure declaration

DEP

Tag indicating start of the departure from port declaration

C

35

Date

DA

Date of departure (YYYY-MM-DD)

C

36

Time

TI

Time of departure (HH:MM in UTC)

C

37

Port name

PO

Port code (ISO alpha-2 country code + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified

C

38

Anticipated activity

AA

Code list to be found on the EC website with a location to be specified

CIF effort reporting required for intended activity

39

Gear type

GE

Letter code according to FAO's ‘International Standard Statistical Classification of the Fishing Gear’

CIF fishing activity intended

40

Catch on board sub-declaration (list of species SPE sub-declarations)

SPE

(See details of sub-elements and attributes of SPE)

CIF catch on board the vessel

41

42

FAR: fishing activity declaration

Required by midnight on each day at sea or in response to request from the Flag State

43

Start of fishing activity report declaration

FAR

Tag indicating start of a fishing activity report declaration

C

44

Last report marker

LR

Marker that indicates that this is the last FAR report that will be sent (LR=1)

CIF last message

45

Inspection marker

IS

Marker that indicates this fishing activity report was received following an inspection carried out onboard the vessel. (IS=1)

CIF inspection occurred

46

Date

DA

Date for which fishing activities being reported whilst vessel at sea (YYYY-MM-DD)

C

47

Time

TI

Start time of fishing activity (HH:MM in UTC)

O

48

Relevant area sub-declaration

RAS

Specified if no catch was made (for effort purposes). List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

CIF

49

Fishing operations

FO

Number of fishing operations

O

50

Fishing time

DU

Duration of fishing activity in minutes — defined as fishing time equals the number of hours spent at sea, minus the time spent in transit to, between and returning from the fishing grounds, dodging, inactive or waiting for repair

CIF required (3)

51

Gear sub-declaration

GEA

(See details of sub-elements and attributes of GEA)

CIF any undertaken

52

Gear loss sub-declaration

GLS

(See details of sub-elements and attributes of GLS)

CIF required by the rules (3)

53

Catch sub-declaration (list of species SPE sub-declarations)

SPE

(See details of sub-elements and attributes of SPE)

CIF any fish caught

54

55

RLC: relocation declaration

Used when catch (all or parts thereof) is transferred or moved from shared fishing gear to a vessel or from a vessel's hold or its fishing gear to a keep net, container or cage (outside the vessel) in which the live catch is kept until landing

56

Start of relocation declaration

RLC

Tag indicating start of a relocation declaration

C

57

Date

DA

Date of catch relocation whilst vessel at sea (YYYY-MM-DD)

CIF

58

Time

TI

Time of relocation (HH:MM in UTC)

CIF

59

Receiving vessel CFR number

IR

With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number

CIF joint fishing operation and EU vessel

60

Receiving vessel radio call sign

TT

International radio call sign of the receiving vessel

CIF joint fishing operation

61

Flag State of receiving vessel

TC

Flag State of vessel taking the catch (ISO alpha-3-country code)

CIF joint fishing operation

62

Other partner vessel(s) CFR numbers

RF

With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number

CIF joint fishing operation and partner is EU vessel

63

Other partner vessel(s) radio call signs

TF

International radio call sign of the partner vessel(s)

CIF joint fishing operation and other partners

64

Flag State(s) of other partner vessel(s)

FC

Flag State of the partner vessel(s) (ISO alpha-3 country code)

CIF joint fishing operation and other partners

65

Relocated to

RT

3-letter code for relocation destination (Keep net: KNE, cage: CGE, etc.) Codes will be placed on the EC website with a location to be specified

CIF

66

POS sub-declaration

POS

Location of transfer (see details of sub-elements and attributes of POS)

CIF

67

Catch sub-declaration (list of species SPE sub-declarations)

SPE

Amount of fish relocated (see details of sub-elements and attributes of SPE)

CIF

68

69

TRA: transhipment declaration

For every transhipment of catch, declaration required from both donor and recipient

70

Start of transhipment declaration

TRA

Tag indicating start of a transhipment declaration

C

71

Date

DA

Start of TRA (YYYY-MM-DD)

C

72

Time

TI

Start of TRA (HH:MM in UTC)

C

73

Relevant area sub-declaration

RAS

The geographical area in which the transhipment took place. The list of codes for fishing and effort/conservation areas will be placed on the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

CIF took place at sea

74

Port name

PO

Port code (ISO alpha-2 country code + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified

CIF took place in port

75

Receiving vessel's CFR number

IR

With format AAAXXXXXXXXX where A is an uppercase letter being the country of registration within the EU and X being a letter or a number

CIF fishing vessel

76

Transhipment: receiving vessel

TT

If donor vessel — International radio call sign of the receiving vessel

C

77

Transhipment: Flag State of receiving vessel

TC

If donor vessel — Flag State of vessel receiving the transhipment (ISO alpha-3 country code)

C

78

Donor vessel's CFR number

RF

With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number

CIF community vessel

79

Transhipment: (donor) vessel

TF

If receiving vessel — International radio call sign of the donor vessel

C

80

Transhipment: Flag State of donor vessel

FC

If receiving vessel — Flag State of the donor vessel (ISO alpha-3 country code)

C

81

POS sub-declaration

POS

(See details of sub-elements and attributes of POS)

CIF required (3) (NEAFC or NAFO waters)

82

Catch transhipped (list of species SPE sub-declarations)

SPE

(See details of sub-elements and attributes of SPE)

C

83

84

COE: entry in zone declaration

If fishing in stock recovery area or Western Waters

85

Start of Effort declaration: Entry in zone

COE

Tag indicating start of an declaration on entry into the effort zone

C

86

Date

DA

Date of entry(YYYY-MM-DD)

C

87

Time

TI

Time of entry(HH:MM in UTC)

C

88

Target specie(s)

TS

Species to be targeted whilst in zone (Demersal, Pelagic, Scallops, Crabs).

Full list to be found at the EC website with a location to be specified

C

89

Relevant area sub-declaration

RAS

Geographical location of the vessel.

The list of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

C

90

Catch on board sub-declaration (list of species SPE sub-declarations)

SPE

(See details of sub-elements and attributes of SPE)

O

91

COX: exit from zone declaration

If fishing in stock recovery area or Western Waters

92

Start of effort declaration: Exit out of zone

COX

Tag indicating start of a declaration on exit of the effort zone

C

93

Date

DA

Date of exit (YYYY-MM-DD)

C

94

Time

TI

Time of exit (HH:MM in UTC)

C

95

Target specie(s)

TS

Species to be targeted whilst in zone (Demersal, Pelagic, Scallops, Crabs).

Full list to be found at the EC website with a location to be specified

CIF not conducting other fishing activities

96

Relevant area sub-declaration

RAS

Geographical location of the vessel. The list of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

CIF not conducting other fishing activities

97

Position sub-declaration

POS

Position of exit (see details of sub-elements and attributes of POS)

C

98

Catch taken sub-declaration

SPE

Catch taken whilst in zone (see details of sub-elements and attributes of SPE)

O

99

100

CRO: crossing of zone declaration

If crossing stock recovery or Western Water zones

101

Start of effort declaration: crossing of a zone

CRO

Tag indicating start of a declaration on crossing the effort zone (no fishing operation). Only DA TI POS needs to be specified in COE and COX declarations

C

102

Entry in zone declaration

COE

(See details of sub-elements and attributes of COE)

C

103

Exit from zone declaration

COX

(See details of sub-elements and attributes of COX)

C

104

105

TRZ: trans-zonal fishing declaration

If carrying out trans-zonal fishing

106

Start of Effort declaration: trans-zonal fishing

TRZ

Tag indicating start of a declaration on trans-zonal fishing

C

107

Entry declaration

COE

First entry (see details of sub-elements and attributes of COE)

C

108

Exit declaration

COX

Last exit (see details of sub-elements and attributes of COX)

C

109

110

INS: inspection declaration

To be provided by the authorities, but not the master

111

Start of inspection declaration

INS

Tag indicating start of an inspection sub-declaration

O

112

Country of inspection

IC

ISO alpha-3 country code

O

113

Assigned inspector

IA

For each state to provide a 4-digit number identifying their inspector

O

114

Date

DA

Date of inspection (YYYY-MM-DD)

O

115

Time

TI

Time of inspection (HH:MM in UTC)

O

116

Position sub-declaration

POS

Position of inspection (see details of sub-elements and attributes of POS)

O

117

118

DIS: discard declaration

CIF required (3) (NEAFC, NAFO)

119

Start of discard declaration

DIS

Tag containing details of fish discarded

C

120

Date

DA

Date of discard (YYYY-MM-DD)

C

121

Time

TI

Time of discard (HH:MM in UTC)

C

122

Position sub-declaration

POS

Position when discarded (see details of sub-elements and attributes of POS)

C

123

Discarded fish sub-declaration

SPE

Discarded fish (see details of sub-elements and attributes of SPE)

C

124

125

PRN: prior notification of return declaration

To be transmitted prior to return to port or if required by Community rules

CIF required (3)

126

Start of prior notification

PRN

Tag indicating start of a prior notification declaration

C

127

Predicted date

PD

Intended date of arrival/crossing (YYYY-MM-DD)

C

128

Predicted time

PT

Intended time of arrival/crossing (HH:MM in UTC)

C

129

Port name

PO

Port code (2-letter country code (ISO alpha-2 country code) + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified

C

130

Relevant area sub-declaration

RAS

Fishing area to be used for prior notification of cod. List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

CIF in the Baltic Sea

131

Predicted landing date

DA

Intended date of landing (YYYY-MM-DD) in the Baltic

CIF in the Baltic Sea

132

Predicted landing time

TI

Intended time of landing (HH:MM in UTC) in the Baltic

CIF in the Baltic Sea

133

Catch on board sub-declarations (list of species SPE sub-declarations)

SPE

Catch on board (if pelagic need ICES zone). (See details of the sub-declaration SPE)

C

134

Position sub-declaration

POS

Position for entering/leaving area/zone. (See details of sub-elements and attributes of POS).

CIF

135

136

EOF: end of fishing declaration

To be transmitted immediately after last fishing operation and before returning to port and landing fish

137

Start of Sign off of catch declaration

EOF

Tag indicating completion of fishing operations prior to return to port

C

138

Date

DA

Date signed off (YYYY-MM-DD)

C

139

Time

TI

Time signed off (HH:MM in UTC)

C

140

141

RTP: return to port declaration

To be transmitted on entry into port, after any PRN declaration and before landing any fish

142

Start of return to port declaration

RTP

Tag indicating the return to the harbour at the end of the fishing trip

C

143

Date

DA

Date of return (YYYY-MM-DD)

C

144

Time

TI

Time of return (HH:MM in UTC)

C

145

Port name

PO

Port code (ISO alpha-2 country code + 3-letter port code) list (CCPPP) to be found at the EC website with a location to be specified

C

146

Reason for return

RE

Reason for returning to port (e.g. sheltering, taking on stores, landing.) The list of reason codes will be placed at the EC website with a location to be specified

CIF

147

148

LAN: landing declaration

To be transmitted after landing of catch

149

Start of landing declaration

LAN

Tag indicating start of a landing declaration

C

150

Date

DA

(YYYY-MM-DD – date of landing

C

151

Time

TI

HH:MM in UTC – time of landing

C

152

Sender type

TS

3 letter code (MAS: master, REP: his representative, AGE: agent)

C

153

Port name

PO

Port code (2-letter country code (ISO alpha-2 country code) + 3-letter port code). Port code list (CCPPP) to be found at the EC website with a location to be specified

C

154

Catch landed sub-declaration (list of SPE with PRO sub-declarations)

SPE

Species, fishing areas, landed weights, related gears and presentations (see details of sub-elements and attributes of SPE)

C

155

156

POS: position sub-declaration

157

Start of position sub-declaration

POS

Tag containing coordinates of the geographical position

C

158

Latitude (decimal)

LT

Latitude expressed in accordance with the WGS84 format used for VMS

C

159

Longitude (decimal)

LG

Longitude expressed in accordance with the WGS84 format used for VMS

C

160

161

GEA: gear deployment sub-declaration

162

Start of gear deployment sub-declaration

GEA

Tag containing coordinates of the geographical position

C

163

Gear type

GE

Gear code according to FAO’s ‘International Standard Statistical Classification of the Fishing Gear’

C

164

Mesh size

ME

Size of mesh (in millimetres)

CIF gear has mesh subject to size requirement

165

Gear capacity

GC

Gear size and number

CIF required for type of gear deployed

166

Fishing operations

FO

Number of fishing operations (hauls) per 24 hour period

CIF if vessel licensed to fish deep sea stocks

167

Fishing time

DU

Number of hours the gear was deployed

CIF if vessel licensed to fish deep sea stocks

168

Gear shot sub-declaration

GES

Gear shot sub-declaration (see details of sub-elements and attributes of GES)

CIF required (3) (vessel uses static or fixed gear)

169

Gear retrieved sub-declaration

GER

Gear retrieved sub-declaration (see details of sub-elements and attributes of GER)

CIF required (3) (vessel uses static or fixed gear)

170

Gillnet deployment sub-declaration

GIL

Gillnet deployment sub-declaration (see details of sub-elements and attributes of GIL)

CIF vessel has permits for ICES Zones IIIa, IVa, IVb, Vb, VIa, VIb, VIIb, c, j, k and XII

171

Fishing depths

FD

A distance from water surface to the lowest part of the fishing gear (in metres). Applies to vessels using towed gear, long lines and fixed nets

CIF deep sea fishing and in Norwegian waters

172

Average number of hooks used on long lines

NH

The average number of hooks used on the long lines

CIF deep sea fishing and in Norwegian waters

173

The average length of the nets

GL

The average length of nets when using fixed nets (in metres)

CIF deep sea fishing and in Norwegian waters

174

The average height of the nets

GD

The average height of nets when using fixed nets (in metres)

CIF deep sea fishing and in Norwegian waters

175

176

GES: gear shot sub-declaration

CIF required by the rules (3)

177

Start of position sub-declaration

GES

Tag containing gear shot info

C

178

Date

DA

Date gear shot (YYYY-MM-DD)

C

179

Time

TI

Time gear shot (HH:MM in UTC)

C

180

POS sub-declaration

POS

Position where gear shot (see details of sub-elements and attributes of POS)

C

181

182

GER: gear retrieved sub-declaration

CIF required by the rules (3)

183

Start of Position sub-declaration

GER

Tag containing gear retrieved info

C

184

Date

DA

Date gear retrieved (YYYY-MM-DD)

C

185

Time

TI

Time gear retrieved (HH:MM in UTC)

C

186

POS sub-declaration

POS

Position where gear retrieved (see details of sub-elements and attributes of POS)

C

187

GIL Gillnet deployment sub-declaration

CIF vessel has permits for ICES Zones IIIa, IVa, IVb, Vb, VIa, VIb, VIIb, c, j, k and XII

188

Start of gillnet sub-declaration

GIL

Tag starting gillnet deployment

189

Nominal length of one net

NL

Information required to be recorded during each fishing trip (in metres)

C

190

Number of nets

NN

Number of nets in a fleet

C

191

Number of fleets

FL

Number of fleets deployed

C

192

POS sub-declaration

POS

Position of each fleet deployment (see details of sub-elements and attributes of POS)

C

193

Depth of each fleet deployed

FD

Depth for each fleet deployed (a distance from water surface to the lowest part of the fishing gear)

C

194

Soak time of each fleet deployed

ST

Soak time for each fleet deployed

C

195

196

GLS: gear loss sub-declaration

Loss of fixed gear

CIF required by the rules (3)

197

Start of GLS sub-declaration

GLS

Data on fixed gear lost

198

Date gear lost

DA

Date gear lost (YYYY-MM-DD)

C

199

Number of units

NN

Number of gears lost

CIF

200

POS sub-declaration

POS

Last known position of gear (see details of sub-elements and attributes of POS)

CIF

201

202

RAS: Relevant area sub-declaration

RAS

Relevant area depending on the relevant reporting requirement – at least one field should be filled in. List of codes will be placed at the EC website with a location to be specified.

CIF

203

FAO area

FA

FAO area (e.g. 27)

CIF

204

FAO (ICES) sub-area

SA

FAO (ICES) sub-area (e.g. 3)

CIF

205

FAO (ICES) division

ID

FAO (ICES) division (e.g. d)

CIF

206

FAO (ICES) sub-division

SD

FAO (ICES) sub-division (e.g. 24) (Meaning together with the above 27.3.d.24)

CIF

207

Economic zone

EZ

Economic zone

CIF

208

Ices statistical rectangle

SR

ICES statistical rectangle (e.g. 49E6)

CIF

209

Fishing effort zone

FE

List of codes will be placed at the EC website with a location to be specified.

CIF

210

Position sub-declaration

POS

(See details of sub-elements and attributes of POS).

CIF

211

212

SPE: species sub-declaration

Aggregate quantity by species

213

Start of SPE sub-declaration

SPE

Details of fish caught by species

C

214

Species name

SN

Name of the species (FAO alpha-3 code)

C

215

Weight of fish

WT

Depending on context this item to be either

1.

Total weight of fish (in kilograms) in catch period

| 2. | Total weight of fish (in kilograms) on board (aggregate) or |
| --- | --- |

2.

Total weight of fish (in kilograms) on board (aggregate) or

| 3. | Total weight of fish (in kilograms) landed |
| --- | --- |

3.

Total weight of fish (in kilograms) landed

CIF species not counted

216

Number of fish

NF

Number of fish (when catch have to be registered in numbers of fish i.e. salmon, tuna)

CIF

217

Quantity held in nets

NQ

Estimate of quantity held in nets i.e. not in hold

O

218

Number held in nets

NB

Estimate of number of fish held in nets i.e. not in hold

O

219

Relevant area sub-declaration

RAS

The geographical area in which the majority of the catch was taken.

List of codes will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

C

220

Gear type

GE

Letter code according to FAO's ‘International Standard Statistical Classification of the Fishing Gear’

CIF landing declaration for certain species and catch areas only

221

Processing sub-declaration

PRO

(See details of sub-elements and attributes of PRO)

CIF for landing (transhipment) declaration

222

223

PRO: processing sub-declaration

Processing/presentation for each specie landed

224

Start of Processing sub-declaration

PRO

Tag containing fish processing details

C

225

Fish freshness category

FF

Fish freshness category (A, B, E)

C

226

State of preservation

PS

Letter code for the state of the fish e.g. live, frozen, salted. List of codes will be placed at the EC website with a location to be specified

C

227

Presentation of fish

PR

Letter code for the product presentation (reflects manner of processing): use codes found at the EC website with a location to be specified

C

228

Processing’s type of packaging

TY

3-letter code (CRT=cartons, BOX=boxes, BGS=bags, BLC=blocks)

CIF (LAN or TRA)

229

Number of packing units

NN

Number of packing units: cartoons, boxes, bags, containers, blocks etc

CIF (for LAN or TRA)

230

Av weight per unit of packing

AW

Product weight (kg)

CIF (for LAN or TRA)

231

Conversion factor

CF

A numerical factor that is applied to convert fish processed weight into fish live weight

O

232

233

When message type is SAL

(TM=SAL)

SAL is a Sales message

234

The following attributes need to be specified

A sale message may be either a sales note line or a take-over line

235

Start of sales record

SAL

Tag indicating start of sales record

C

236

Vessel's Community fleet register number

IR

With format AAAXXXXXXXXX where A is an uppercase letter being the country of first registration within the EU and X being a letter or a number

C

237

Vessel’s call sign

RC

International radio call sign

CIF CFR not up to date

238

Vessel’s external identification

XR

Side (hull) number of registration of the vessel that landed the fish

O

239

Country of registration

FS

ISO alpha-3 country code

C

240

Name of vessel

NA

Name of the vessel that landed the fish

O

241

SLI declaration

SLI

(See details of sub-elements and attributes of SLI)

CIF sale

242

TLI declaration

TLI

(See details of sub-elements and attributes of TLI)

CIF take-over

243

244

SLI: sales line declaration

245

Start of sales line declaration

SLI

Tag containing details of a consignment sale

C

246

Date

DA

Date of the sale (YYYY-MM-DD).

C

247

Sale country

SC

Country where the sale took place (ISO alpha-3 country code)

C

248

Sale location

SL

Port code list (CCPPP) to be found at the EC website with a location to be specified

C

249

Name of seller

NS

Name of auction centre, other body or person selling the fish

C

250

Name of buyer

NB

Name of body or person buying the fish

C

251

Sales contract reference number

CN

Sales contract reference number

C

252

Source document sub-declaration

SRC

(See details of sub-declaration and attributes of SRC)

C

253

Consignment sold sub-declaration

CSS

(See details of sub-declaration and attributes of CSS)

C

254

255

SRC sub-declaration

Flag State authorities shall track back the source document based on the vessel's logbook and landing data

256

Start of source document sub-declaration

SRC

Tag containing details of the source document for the consignment sold

C

257

Date of landing

DL

Date of landing (YYYY-MM-DD).

C

258

Country and port name

PO

Country and port name for place of landing. Country port code list (CCPPP) to be found at the EC website with a location to be specified

C

259

260

CSS sub-declaration

261

Start of consignment sold sub-declaration

CSS

Tag containing details of the item sold

C

262

Species name

SN

Name of the species sold (FAO alpha-3 code)

C

263

Weight of fish sold

WT

Weight of fish sold (in kilograms)

C

264

Number of fish sold

NF

Number of fish (when catch have to be registered in numbers of fish i.e. salmon, tuna)

CIF

265

Fish price

FP

Price per kg

C

266

Currency of sale

CR

Currency of price of sale. List of currency symbols/codes will be placed at the EC website with a location to be specified

C

267

Fish size category

SF

Size of fish (1-8; one size or kg, g, cm, mm or number of fish per kg as appropriate)

CIF

268

Product destination (purpose)

PP

Codes for human consumption, carry-over, industrial purposes

CIF

269

Relevant area sub-declaration

RAS

List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

C

270

PRO processing sub-declaration

PRO

(See details of sub-elements and attributes of PRO)

C

271

Withdrawn

WD

Withdrawn through a producers' organisation (Y-yes, N-no, T – temporarily)

C

272

P.O. Use code

OP

List of codes will be placed at the EC website with a location to be specified

O

273

State of preservation

PS

Letter code for the state of the fish e.g. live, frozen, salted. List of codes will be placed at the EC website with a location to be specified.

CIF when temporarily withdrawn

274

275

TLI: take-over declaration

276

Start of TLI declaration

TLI

Tag for details of take-over event

C

277

Date

DA

Date of the take-over (YYYY-MM-DD).

C

278

Take-over country

SC

Country where the take-over took place (ISO alpha-3 country code)

C

279

Take-over location

SL

Port code or place name (if not in port) where the take-over took place – list to be found at the EC website with a location to be specified http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm

C

280

Name of take-over organisation

NT

Name of the organisation that took-over the fish

C

281

Take-over contract reference number

CN

Take-over contract reference number

O

282

SRC sub-declaration

SRC

(See details of sub-elements and attributes of SRC)

C

283

Consignment taken over sub-declaration

CST

(See details of sub-elements and attributes of CST)

C

284

285

CST sub-declaration

286

Start of line for each consignment taken over

CST

Tag containing detail line for each species taken over

C

287

Species name

SN

Name of the species sold (FAO alpha-3 code)

C

288

Weight of fish taken over

WT

Weight of fish taken over (in kilograms)

C

289

Number of fish taken over

NF

Number of fish (when catch have to be registered in numbers of fish i.e. salmon, tuna)

CIF

290

Fish size category

SF

Size of fish (1-8; one size or kg, g, cm, mm or number of fish per kg as appropriate)

C

291

Relevant area sub-declaration

RAS

List of codes for fishing and effort/conservation areas will be placed at the EC website with a location to be specified. (See details of sub-elements and attributes of RAS).

O

292

PRO processing sub-declaration

PRO

(See details of sub-elements and attributes of PRO)

C

| 1. | Character set definitions are available at http://europa.eu.int/idabc/en/chapter/556used for ERS should be: Western character set (UTF-8). |
| --- | --- |

1.

Character set definitions are available at http://europa.eu.int/idabc/en/chapter/556used for ERS should be: Western character set (UTF-8).

| 2. | All Codes (or appropriate references) will be listed on the EC Fisheries website with a location to be specified: http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm (including codes for corrections, ports, fishing areas, intentions on leaving port, reasons for returning to port, type of fishing/target species, codes on entering conservation/effort zones and other codes or references. |
| --- | --- |

2.

All Codes (or appropriate references) will be listed on the EC Fisheries website with a location to be specified: http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm (including codes for corrections, ports, fishing areas, intentions on leaving port, reasons for returning to port, type of fishing/target species, codes on entering conservation/effort zones and other codes or references.

| 3. | All 3 character codes are XML elements (3-character code), all 2-character codes are XML attributes. |
| --- | --- |

3.

All 3 character codes are XML elements (3-character code), all 2-character codes are XML attributes.

| 4. | The XML sample files and the reference XSD definition of the above Annex will be placed on the EC website with a location to be specified. |
| --- | --- |

4.

The XML sample files and the reference XSD definition of the above Annex will be placed on the EC website with a location to be specified.

| 5. | All the weights in the table are expressed in kilograms and, if needed with up to two decimals of precision. |
| --- | --- |

5.

All the weights in the table are expressed in kilograms and, if needed with up to two decimals of precision.

---

(1)  The present Annex replaces in full the Annex to the Regulation (EC) No 1566/2007 laying down detailed rules for the implementation of Regulation (EC) No 1966/2006 on electronic recording and reporting of fishing activities and on means of remote sensing.

(2)  Compulsory if required by the Community rules, international or bilateral agreements.

(3)  When CIF does not apply then attribute is optional.

| 1. | Character set definitions are available at http://europa.eu.int/idabc/en/chapter/556used for ERS should be: Western character set (UTF-8). |
| --- | --- |

1.

Character set definitions are available at http://europa.eu.int/idabc/en/chapter/556used for ERS should be: Western character set (UTF-8).

| 2. | All Codes (or appropriate references) will be listed on the EC Fisheries website with a location to be specified: http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm (including codes for corrections, ports, fishing areas, intentions on leaving port, reasons for returning to port, type of fishing/target species, codes on entering conservation/effort zones and other codes or references. |
| --- | --- |

2.

All Codes (or appropriate references) will be listed on the EC Fisheries website with a location to be specified: http://ec.europa.eu/fisheries/cfp/control_enforcement_en.htm (including codes for corrections, ports, fishing areas, intentions on leaving port, reasons for returning to port, type of fishing/target species, codes on entering conservation/effort zones and other codes or references.

| 3. | All 3 character codes are XML elements (3-character code), all 2-character codes are XML attributes. |
| --- | --- |

3.

All 3 character codes are XML elements (3-character code), all 2-character codes are XML attributes.

| 4. | The XML sample files and the reference XSD definition of the above Annex will be placed on the EC website with a location to be specified. |
| --- | --- |

4.

The XML sample files and the reference XSD definition of the above Annex will be placed on the EC website with a location to be specified.

| 5. | All the weights in the table are expressed in kilograms and, if needed with up to two decimals of precision. |
| --- | --- |

5.

All the weights in the table are expressed in kilograms and, if needed with up to two decimals of precision.

---

| 4.11.2008 | EN | Official Journal of the European Union | L 295/24 |
| --- | --- | --- | --- |

4.11.2008

EN

Official Journal of the European Union

L 295/24

---

COMMISSION REGULATION (EC) No 1078/2008

of 3 November 2008

laying down detailed rules for the implementation of Council Regulation (EC) No 861/2006 as regards the expenditure incurred by Member States for the collection and management of the basic fisheries data

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 861/2006 of 22 May 2006 establishing Community financial measures for the implementation of the common fisheries policy and in the area of the Law of the Sea (1), and in particular Article 31 thereof,

Whereas:

| (1) | Council Regulation (EC) No 199/2008 of 25 February 2008 concerning the establishment of a Community framework for the collection, management and use of data in the fisheries sector and support for scientific advice regarding the Common Fisheries Policy (2) establishes a basis for scientific analyses of fisheries and for providing the formulation of sound scientific advice for the implementation of the Common Fisheries Policy. |
| --- | --- |

(1)

Council Regulation (EC) No 199/2008 of 25 February 2008 concerning the establishment of a Community framework for the collection, management and use of data in the fisheries sector and support for scientific advice regarding the Common Fisheries Policy (2) establishes a basis for scientific analyses of fisheries and for providing the formulation of sound scientific advice for the implementation of the Common Fisheries Policy.

| (2) | The Commission is to adopt a multi-annual Community programme pursuant to Council Regulation (EC) No 199/2008 based on which the Member States should establish multi-annual national programmes for the collection, management and use of data. |
| --- | --- |

(2)

The Commission is to adopt a multi-annual Community programme pursuant to Council Regulation (EC) No 199/2008 based on which the Member States should establish multi-annual national programmes for the collection, management and use of data.

| (3) | Article 9 of Regulation (EC) No 861/2006 provides, amongst other actions, for Community financial contribution for measures in the area of basic data collection. Moreover, Article 24 of that Regulation requires the Commission to decide each year on the annual Community contribution to those measures. |
| --- | --- |

(3)

Article 9 of Regulation (EC) No 861/2006 provides, amongst other actions, for Community financial contribution for measures in the area of basic data collection. Moreover, Article 24 of that Regulation requires the Commission to decide each year on the annual Community contribution to those measures.

| (4) | In view of the principle of sound financial management, it is necessary to lay down the rules and procedures to be complied with by Member States in order to benefit from Community financial assistance for expenditure incurred in the area of data collection. It is also appropriate that the non-compliance with such rules and procedures entails the exclusion of expenditures. |
| --- | --- |

(4)

In view of the principle of sound financial management, it is necessary to lay down the rules and procedures to be complied with by Member States in order to benefit from Community financial assistance for expenditure incurred in the area of data collection. It is also appropriate that the non-compliance with such rules and procedures entails the exclusion of expenditures.

| (5) | The annual Community contribution should be based on annual budget forecasts which should be evaluated taking into account the national programmes established by the Member States. |
| --- | --- |

(5)

The annual Community contribution should be based on annual budget forecasts which should be evaluated taking into account the national programmes established by the Member States.

| (6) | With a view to ensure that Community funds are allocated efficiently, the annual budget forecast should be consistent with the activities foreseen in the national programme. |
| --- | --- |

(6)

With a view to ensure that Community funds are allocated efficiently, the annual budget forecast should be consistent with the activities foreseen in the national programme.

| (7) | With a view to simplifying procedures, it is necessary to establish the rules and the format for the submission by Member States of the annual budgetary forecast in relation to the execution of the national programmes. Only costs directly related to the implementation of the national programmes, which are properly justified and actually incurred by the Member States, should be considered eligible. In this respect, it is also relevant to clarify the role and obligations of partners and sub-contractors in the implementation of the national programmes. |
| --- | --- |

(7)

With a view to simplifying procedures, it is necessary to establish the rules and the format for the submission by Member States of the annual budgetary forecast in relation to the execution of the national programmes. Only costs directly related to the implementation of the national programmes, which are properly justified and actually incurred by the Member States, should be considered eligible. In this respect, it is also relevant to clarify the role and obligations of partners and sub-contractors in the implementation of the national programmes.

| (8) | With regard to the possibility to amend the technical aspects of the multi-annual programmes as provided for in Article 5(2) of Council Regulation (EC) No 199/2008, it is appropriate to establish the rules under which the Member States may amend adequately the funds necessary for the proper implementation of the national programmes. Member States should be allowed to reallocate funds between different cost categories if this is considered of a benefit for the implementation of the national programme. |
| --- | --- |

(8)

With regard to the possibility to amend the technical aspects of the multi-annual programmes as provided for in Article 5(2) of Council Regulation (EC) No 199/2008, it is appropriate to establish the rules under which the Member States may amend adequately the funds necessary for the proper implementation of the national programmes. Member States should be allowed to reallocate funds between different cost categories if this is considered of a benefit for the implementation of the national programme.

| (9) | Rules should be established in order to ensure that the claims for reimbursement of expenditure are in line with the Commission Decision approving the annual Community contribution. Those rules should include the procedure for submission and approval of such claims. Where appropriate, claims which do not comply with those rules should be de-committed. |
| --- | --- |

(9)

Rules should be established in order to ensure that the claims for reimbursement of expenditure are in line with the Commission Decision approving the annual Community contribution. Those rules should include the procedure for submission and approval of such claims. Where appropriate, claims which do not comply with those rules should be de-committed.

| (10) | It is appropriate that payments are made in two instalments, thus allowing Member States to benefit already from the Community financial contribution during the period of implementation of the programme. |
| --- | --- |

(10)

It is appropriate that payments are made in two instalments, thus allowing Member States to benefit already from the Community financial contribution during the period of implementation of the programme.

| (11) | In view of ensuring correct use of Community funds, the Commission and the Court of Audit should be in a position to verify the compliance with the provisions provided in this Regulation and should, for that purpose, be provided with any information relevant for carrying out the audits and financial corrections as referred to in Article 28 of Regulation (EC) No 861/2006. |
| --- | --- |

(11)

In view of ensuring correct use of Community funds, the Commission and the Court of Audit should be in a position to verify the compliance with the provisions provided in this Regulation and should, for that purpose, be provided with any information relevant for carrying out the audits and financial corrections as referred to in Article 28 of Regulation (EC) No 861/2006.

| (12) | The measures provided for in this Regulation are in accordance with the opinion of the Committee for Fisheries and Aquaculture, |
| --- | --- |

(12)

The measures provided for in this Regulation are in accordance with the opinion of the Committee for Fisheries and Aquaculture,

HAS ADOPTED THIS REGULATION:

Article 1

Subject-matter

This Regulation establishes detailed rules for the implementation of Regulation (EC) No 861/2006 as regards the Community financial contribution for expenditure incurred by Member States for the collection and management of the basic fisheries data.

Article 2

Submission of the annual budget forecast

1.   Member States wishing to receive a financial contribution from the Community for the implementation of their multi-annual programme, as referred to in Article 4 of Regulation (EC) No 199/2008, hereinafter ‘the national programme’, shall submit to the Commission by 31 March of the year prior to the period of the implementation of that programme:

| (a) | an annual budget forecast for the first year of implementation of the national programme; and |
| --- | --- |

(a)

an annual budget forecast for the first year of implementation of the national programme; and

| (b) | indicative annual budget forecasts for each of the following years of implementation of the national programme. |
| --- | --- |

(b)

indicative annual budget forecasts for each of the following years of implementation of the national programme.

2.   Member States shall submit definitive annual budget forecasts for each of the years of implementation of their national programme, following the first, where they differ from the indicative budget forecasts already submitted. Definitive annual budget forecasts shall be submitted by 31 October prior to the year of implementation concerned.

3.   For the first national programme covering the period 2009-2010, the annual budget forecasts shall be submitted by 15 October 2008.

Article 3

Content of the annual budget forecast

1.   The annual budget forecast shall contain the planned annual expenditure that a Member State expects to incur for the implementation of its national programme.

2.   The annual budget forecast shall be presented:

| (a) | by category of expenditure as referred to in Annex I to this Regulation; |
| --- | --- |

(a)

by category of expenditure as referred to in Annex I to this Regulation;

| (b) | by module as defined in the Commission Decision establishing the multi-annual Community programme on collection, management and use of data for the fisheries and aquaculture sectors; and |
| --- | --- |

(b)

by module as defined in the Commission Decision establishing the multi-annual Community programme on collection, management and use of data for the fisheries and aquaculture sectors; and

| (c) | where relevant, by region as defined in Article 1(a) of Commission Regulation (EC) No 665/2008 (3). |
| --- | --- |

(c)

where relevant, by region as defined in Article 1(a) of Commission Regulation (EC) No 665/2008 (3).

3.   Member States shall submit the annual budget forecast by electronic means and using the financial forms established and communicated to them by the Commission.

Article 4

Evaluation of the annual budget forecast

1.   The Commission shall evaluate the annual budget forecasts by taking into account the national programmes approved in accordance to Article 6(3) of Regulation (EC) No 199/2008.

2.   For the purpose of evaluating the annual budget forecast, the Commission may request a Member State to provide further clarification on the expenditure concerned. The Member State shall provide that clarification within 15 calendar days from the Commission’s request.

3.   If the Member State fails to communicate sufficient clarification within the deadline referred to in paragraph 2, the Commission may exclude as appropriate the concerned expenditure from the respective annual budget forecast to be approved.

Article 5

Community financial contribution

The Commission shall approve the annual budget forecast and shall decide on the annual Community financial contribution to each national programme in accordance with the procedure laid down in Article 24 of Regulation (EC) No 861/2006 and on the basis of the outcome of the evaluation of the annual budget forecasts as referred to in Article 4.

Article 6

Amendments to the approved annual budget forecast

1.   Member States shall be authorised to transfer the amounts set out in the annual budget forecast approved in accordance with Article 5 between modules and cost categories within the same region only, provided that:

| (a) | the amounts transferred do not exceed EUR 50 000 or 10 % of the approved total budget for the region where the amount of that budget is less than EUR 500 000; |
| --- | --- |

(a)

the amounts transferred do not exceed EUR 50 000 or 10 % of the approved total budget for the region where the amount of that budget is less than EUR 500 000;

| (b) | they inform the Commission upon the occurrence of the need for transfer. |
| --- | --- |

(b)

they inform the Commission upon the occurrence of the need for transfer.

2.   Any other amendments of the annual budget forecast approved in accordance with Article 5 shall be duly justified and shall be approved by the Commission before the expenditure is incurred.

Article 7

Eligible expenditure

1.   In order to be eligible for Community financial contribution, expenditure shall:

| (a) | be actually incurred by the Member State; |
| --- | --- |

(a)

be actually incurred by the Member State;

| (b) | concern an action foreseen in the national programme; |
| --- | --- |

(b)

concern an action foreseen in the national programme;

| (c) | be indicated in the annual budget forecast; |
| --- | --- |

(c)

be indicated in the annual budget forecast;

| (d) | fall in one of the categories listed in Annex I; |
| --- | --- |

(d)

fall in one of the categories listed in Annex I;

| (e) | concern an action executed in compliance with the conditions laid down in Regulation (EC) No 199/2008 and its implementing provisions; |
| --- | --- |

(e)

concern an action executed in compliance with the conditions laid down in Regulation (EC) No 199/2008 and its implementing provisions;

| (f) | be identifiable and verifiable, in particular being recorded in the accounting records of the Member State and their partners; |
| --- | --- |

(f)

be identifiable and verifiable, in particular being recorded in the accounting records of the Member State and their partners;

| (g) | be determined according to the applicable accounting standards and comply with the requirements of national legislation; |
| --- | --- |

(g)

be determined according to the applicable accounting standards and comply with the requirements of national legislation;

| (h) | be reasonable, justified, and comply with the requirements of sound financial management, in particular regarding economy and efficiency; |
| --- | --- |

(h)

be reasonable, justified, and comply with the requirements of sound financial management, in particular regarding economy and efficiency;

| (i) | be incurred during the implementation period of the action as foreseen in the national programme. |
| --- | --- |

(i)

be incurred during the implementation period of the action as foreseen in the national programme.

2.   Eligible expenditure shall be related to:

| (a) | the following data collection activities:






  — | collection of data on the sampling sites as referred to in Article 10 of Regulation (EC) No 199/2008 from direct sampling or interviews and queries, |
| --- | --- | --- |

(a)

the following data collection activities:

—

collection of data on the sampling sites as referred to in Article 10 of Regulation (EC) No 199/2008 from direct sampling or interviews and queries,

| — | at-sea-monitoring of commercial and recreational fisheries as referred to in Article 11 of Regulation (EC) No 199/2008, |
| --- | --- |

—

at-sea-monitoring of commercial and recreational fisheries as referred to in Article 11 of Regulation (EC) No 199/2008,

| — | research surveys at sea as referred to in Article 12 of Regulation (EC) No 199/2008; |
| --- | --- |

—

research surveys at sea as referred to in Article 12 of Regulation (EC) No 199/2008;

| (b) | the following data management activities, as provided for in the multi-annual Community programme referred to in Article 3 of Regulation (EC) No 199/2008:






  — | database and web site development, |
| --- | --- | --- |

(b)

the following data management activities, as provided for in the multi-annual Community programme referred to in Article 3 of Regulation (EC) No 199/2008:

—

database and web site development,

| — | data input (storage), |
| --- | --- |

—

data input (storage),

| — | data quality control and validation, |
| --- | --- |

—

data quality control and validation,

| — | data processing from primary data into detailed or aggregated data, |
| --- | --- |

—

data processing from primary data into detailed or aggregated data,

| — | transformation process of the primary socioeconomic data into metadata; |
| --- | --- |

—

transformation process of the primary socioeconomic data into metadata;

| (c) | the following data use activities as provided for in the multi-annual Community programme referred to in Article 3 of Regulation (EC) No 199/2008:






  — | production of sets of data and their uses to support scientific analysis as a basis for advice to fisheries management, |
| --- | --- | --- |

(c)

the following data use activities as provided for in the multi-annual Community programme referred to in Article 3 of Regulation (EC) No 199/2008:

—

production of sets of data and their uses to support scientific analysis as a basis for advice to fisheries management,

| — | biological parameter estimates (age, weight, sex, maturity and fecundity), |
| --- | --- |

—

biological parameter estimates (age, weight, sex, maturity and fecundity),

| — | preparation of sets of data for stock assessments, bio-economic modelling and corresponding scientific analysis. |
| --- | --- |

—

preparation of sets of data for stock assessments, bio-economic modelling and corresponding scientific analysis.

Article 8

Non-eligible expenditure

The following expenditure shall not be eligible for Community financial contribution:

| (a) | profit margins, provisions and bad debts; |
| --- | --- |

(a)

profit margins, provisions and bad debts;

| (b) | interest owed and bank charges; |
| --- | --- |

(b)

interest owed and bank charges;

| (c) | average labour costs; |
| --- | --- |

(c)

average labour costs;

| (d) | indirect costs such as: buildings and sites, administration, support staff, office supplies, infrastructure, running and maintenance costs, such as telecommunication costs, goods and services; |
| --- | --- |

(d)

indirect costs such as: buildings and sites, administration, support staff, office supplies, infrastructure, running and maintenance costs, such as telecommunication costs, goods and services;

| (e) | equipment which is not used for data collection and management purposes, such as scanners, printers, mobile phones, walkie-talkies, videos and cameras; |
| --- | --- |

(e)

equipment which is not used for data collection and management purposes, such as scanners, printers, mobile phones, walkie-talkies, videos and cameras;

| (f) | purchase of vehicles; |
| --- | --- |

(f)

purchase of vehicles;

| (g) | distribution, marketing and advertising costs of promoting products and commercial activities; |
| --- | --- |

(g)

distribution, marketing and advertising costs of promoting products and commercial activities;

| (h) | entertainment expenses, other than those regarded by the Commission as strictly necessary for carrying out the national programme; |
| --- | --- |

(h)

entertainment expenses, other than those regarded by the Commission as strictly necessary for carrying out the national programme;

| (i) | expenditure on luxuries and publicity; |
| --- | --- |

(i)

expenditure on luxuries and publicity;

| (j) | all expenditure on other programmes/projects financed by a third party; |
| --- | --- |

(j)

all expenditure on other programmes/projects financed by a third party;

| (k) | all expenditure on protecting the results of the work carried out under the national programme; |
| --- | --- |

(k)

all expenditure on protecting the results of the work carried out under the national programme;

| (l) | any recoverable types of levy (including VAT); |
| --- | --- |

(l)

any recoverable types of levy (including VAT);

| (m) | resources made available to the Member State free of charge; |
| --- | --- |

(m)

resources made available to the Member State free of charge;

| (n) | value of contributions in kind; |
| --- | --- |

(n)

value of contributions in kind;

| (o) | unnecessary or ill-considered expenses. |
| --- | --- |

(o)

unnecessary or ill-considered expenses.

Article 9

Implementation of programmes

1.   Member States may be assisted by partners for the implementation of the national programme. The partners shall be organisations expressively identified in the national programme to assist the Member States to implement the whole or a significant part of the national programme. The partners shall be directly involved in the technical implementation of one or more tasks of the national programme and shall be subject to the same obligations as the Member States in relation to the implementation of the national programmes.

2.   The partners shall not act, in the context of the programme, as subcontractors to the Member State or other partners.

3.   For a fixed duration, specific tasks of the national programme may be carried out by subcontractors, who shall not be considered as partners. Subcontractors shall be natural or legal persons providing services to the Member States and/or partners. Any recourse to subcontracting while the action is under way, if not provided for in the initial programme proposal, shall be subject to prior written authorisation by the Commission.

Article 10

Submission of claims for reimbursement

1.   Member States shall submit to the Commission claims for reimbursement of expenditure incurred for the implementation of the national programmes by 31 May of each year following the calendar year concerned. Those claims shall be comprised of:

| (a) | a letter stating the total amount claimed for reimbursement, which shall clearly indicate the items listed in Annex II; |
| --- | --- |

(a)

a letter stating the total amount claimed for reimbursement, which shall clearly indicate the items listed in Annex II;

| (b) | a financial report, presented by category of expenditure, module and, where relevant, by region as indicated in the financial forms referred to in Article 3(3). The financial report shall be presented in the format established and communicated to Member States by the Commission; |
| --- | --- |

(b)

a financial report, presented by category of expenditure, module and, where relevant, by region as indicated in the financial forms referred to in Article 3(3). The financial report shall be presented in the format established and communicated to Member States by the Commission;

| (c) | a statement of expenditure as defined in the Annex III; and |
| --- | --- |

(c)

a statement of expenditure as defined in the Annex III; and

| (d) | the relevant supporting documents as indicated in the Annex I. |
| --- | --- |

(d)

the relevant supporting documents as indicated in the Annex I.

2.   The claims for reimbursement shall be submitted to the Commission by electronic means.

3.   When submitting claims for reimbursement, Member States shall take all appropriate steps to verify and certify that:

| (a) | the actions conducted and the statement of expenditure incurred under the Decision referred to in Article 5 correspond to the national programme as approved by the Commission; |
| --- | --- |

(a)

the actions conducted and the statement of expenditure incurred under the Decision referred to in Article 5 correspond to the national programme as approved by the Commission;

| (b) | the claim for reimbursement complies with the conditions set out in Articles 7 and 8; |
| --- | --- |

(b)

the claim for reimbursement complies with the conditions set out in Articles 7 and 8;

| (c) | the expenditure has been incurred in compliance with the conditions laid down in Regulation (EC) No 861/2006, this Regulation, the Decision referred to in Article 5 and with Community legislation on the award of public contracts. |
| --- | --- |

(c)

the expenditure has been incurred in compliance with the conditions laid down in Regulation (EC) No 861/2006, this Regulation, the Decision referred to in Article 5 and with Community legislation on the award of public contracts.

Article 11

Evaluation of the claims for reimbursement

1.   The Commission shall evaluate the claims for reimbursement on their compliance with this Regulation.

2.   For the purpose of evaluating the claim for reimbursement, the Commission may request a Member State to provide further clarification. The Member State shall provide that clarification within 15 calendar days from the Commission’s request.

Article 12

Exclusion from reimbursement

If the Member States fails to communicate sufficient clarification within the deadline referred to in Article 11(2) and the Commission considers that the claim for reimbursement does not comply with the conditions laid down in this Regulation, it shall request the Member State to submit its observations within 15 calendar days. If the examination confirms the non-compliance, the Commission shall refuse to reimburse all or part of the expenditure concerned by the non-compliance and, where appropriate, request reimbursement of undue payments or de-commit the outstanding amounts.

Article 13

Approval of the claims for reimbursement

The Commission shall approve the claims for reimbursement on the basis of the outcome of the procedure laid down in Articles 11 and 12.

Article 14

Payments

1.   The Community financial contribution granted to a Member State in accordance with Article 8 in respect of each year of implementation of the national programme shall be paid in two instalments as follows:

| (a) | a pre-financing payment equivalent to 50 % of the Community contribution. That payment shall be made after the notification to the Member State of the Decision referred to in Article 5 and the receipt of a letter requesting the pre-financing payment and clearly stating the items listed in Annex II; |
| --- | --- |

(a)

a pre-financing payment equivalent to 50 % of the Community contribution. That payment shall be made after the notification to the Member State of the Decision referred to in Article 5 and the receipt of a letter requesting the pre-financing payment and clearly stating the items listed in Annex II;

| (b) | an annual balance payment based on the claim of reimbursement referred to in Article 10. That payment shall be made within 45 days of approval, by the Commission, of the claim for reimbursement referred to in Article 12. |
| --- | --- |

(b)

an annual balance payment based on the claim of reimbursement referred to in Article 10. That payment shall be made within 45 days of approval, by the Commission, of the claim for reimbursement referred to in Article 12.

2.   Penalty reductions as referred to in Article 8 of Regulation (EC) No 199/2008 shall be executed on the annual balance payment as referred to in paragraph 1(b).

3.   Additional cost claims and supporting documents shall not be accepted after the execution of the balance payment.

Article 15

Currency

1.   The annual budget forecasts and the claims for reimbursement shall be expressed in euro.

2.   For the first year of implementation of the national programme, Member States not participating in the third stage of Economic and Monetary Union shall apply the exchange rate published in the C series of the Official Journal of the European Union on 1 March of the year prior to the period of the implementation of that programme. For the first national programme covering the period 2009-2010, that date shall be 1 October 2008.

3.   For each of the years of implementation of the national programme following the first, Member States not participating in the third stage of Economic and Monetary Union shall apply the exchange rate published in the C series of the Official Journal of the European Union on 1 October of the year prior to the year of implementation concerned.

4.   The Member States not participating in the third stage of the Economic and Monetary Union shall specify the exchange rate used in the annual budget forecast and the claim for reimbursement.

Article 16

Audits and financial corrections

Member States shall provide the Commission and the Court of Auditors with any information those institutions may request for the audits and financial corrections referred to in Article 28 of Regulation (EC) No 861/2006.

Article 17

Entry into force

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.

It shall apply to expenditure incurred as of 1 January 2009.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 3 November 2008.

For the Commission

Joe BORG

Member of the Commission

---

(1)  OJ L 160, 14.6.2006, p. 1.

1

(2)  OJ L 60, 5.3.2008, p. 1.

2

(3)  OJ L 186, 15.7.2008, p. 3.

3

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ANNEX I

Eligibility of expenditure incurred for the implementation of national programmes

The eligible expenditure categories shall include all or some of the following:

| (a) | Staff costs:






  — | expenditure on staff for the time actually devoted to the national programme by scientific or technical staff only, |
| --- | --- | --- |

(a)

Staff costs:

—

expenditure on staff for the time actually devoted to the national programme by scientific or technical staff only,

| — | staff costs shall be established in relation to the working time actually devoted to the national programme and shall be calculated by reference to actual labour costs (wages, social costs, social security and pension contributions), but excluding any other costs, |
| --- | --- |

—

staff costs shall be established in relation to the working time actually devoted to the national programme and shall be calculated by reference to actual labour costs (wages, social costs, social security and pension contributions), but excluding any other costs,

| — | calculation of the hourly/daily rates shall be done on the basis of 210 productive days per year, |
| --- | --- |

—

calculation of the hourly/daily rates shall be done on the basis of 210 productive days per year,

| — | time devoted by staff to the programme must appear in full in the records (time sheets) and be certified at least once each month by the responsible person. The time sheets shall be made available to the Commission on request. |
| --- | --- |

—

time devoted by staff to the programme must appear in full in the records (time sheets) and be certified at least once each month by the responsible person. The time sheets shall be made available to the Commission on request.

| (b) | Travel expenses:






  — | travel expenses shall be established in accordance with the internal rules of the Member State or partners. For travel outside the Community, prior agreement of the Commission shall be required if not specified in the national programme. |
| --- | --- | --- |

(b)

Travel expenses:

—

travel expenses shall be established in accordance with the internal rules of the Member State or partners. For travel outside the Community, prior agreement of the Commission shall be required if not specified in the national programme.

| (c) | Durable goods:






  — | durable goods must have an expected life not shorter than the duration of the work under the programme. They are included in the inventory of durable goods or are regarded as assets in accordance with the accounting methods, rules and principles of the Member State or partners concerned, |
| --- | --- | --- |

(c)

Durable goods:

—

durable goods must have an expected life not shorter than the duration of the work under the programme. They are included in the inventory of durable goods or are regarded as assets in accordance with the accounting methods, rules and principles of the Member State or partners concerned,

| — | for the purpose of calculating the eligible expenditure, durable goods will be considered to have a probable life of 36 months in the case of computer equipment of a value not exceeding EUR 25 000, and 60 months in the case of other goods. The eligible amount will depend on the expected life of the goods in relation to the duration of the programme, on condition that the period used to calculate this amount starts on the actual date of commencement of the programme, or the date of purchase of the goods where this occurs after the date of commencement, and ends on the date of completion of the programme. Account should be taken also of the use made of the goods during that period, |
| --- | --- |

—

for the purpose of calculating the eligible expenditure, durable goods will be considered to have a probable life of 36 months in the case of computer equipment of a value not exceeding EUR 25 000, and 60 months in the case of other goods. The eligible amount will depend on the expected life of the goods in relation to the duration of the programme, on condition that the period used to calculate this amount starts on the actual date of commencement of the programme, or the date of purchase of the goods where this occurs after the date of commencement, and ends on the date of completion of the programme. Account should be taken also of the use made of the goods during that period,

| — | as an exception, durable equipment may have been purchased or leased with an option to buy within six months before the commencement day of the national programme, |
| --- | --- |

—

as an exception, durable equipment may have been purchased or leased with an option to buy within six months before the commencement day of the national programme,

| — | applicable public procurement rules shall also apply in case of purchase of durable goods, |
| --- | --- |

—

applicable public procurement rules shall also apply in case of purchase of durable goods,

| — | expenditure related to durable goods shall be justified with certified invoices, confirming the delivery date, and must be submitted to the Commission together with the statement of expenditure. |
| --- | --- |

—

expenditure related to durable goods shall be justified with certified invoices, confirming the delivery date, and must be submitted to the Commission together with the statement of expenditure.

| (d) | Consumable materials and supplies including computing costs:






  — | consumable materials and supplies expenditure are consumable raw materials for the purchase, production, repair or use of any goods or equipment which have a probable life shorter than the duration of the work under the programme. They are not included in the inventory of durable goods of the Member State or partners concerned, or are not regarded as assets in accordance with the accounting principles, rules and methods of the Member State or partners concerned, |
| --- | --- | --- |

(d)

Consumable materials and supplies including computing costs:

—

consumable materials and supplies expenditure are consumable raw materials for the purchase, production, repair or use of any goods or equipment which have a probable life shorter than the duration of the work under the programme. They are not included in the inventory of durable goods of the Member State or partners concerned, or are not regarded as assets in accordance with the accounting principles, rules and methods of the Member State or partners concerned,

| — | their description must be detailed enough to allow decision on their eligibility, |
| --- | --- |

—

their description must be detailed enough to allow decision on their eligibility,

| — | eligible computing costs concern the establishment and supply to Member States of software for the management and interrogation of databases. |
| --- | --- |

—

eligible computing costs concern the establishment and supply to Member States of software for the management and interrogation of databases.

| (e) | Vessel costs:






  — | for research surveys at sea referred to in Article 12 of Regulation (EC) No 199/2008, including those conducted from chartered vessels, only rental costs and other operating costs shall be eligible. A certified copy of the invoice must be submitted to the Commission together with the statement of expenditure, |
| --- | --- | --- |

(e)

Vessel costs:

—

for research surveys at sea referred to in Article 12 of Regulation (EC) No 199/2008, including those conducted from chartered vessels, only rental costs and other operating costs shall be eligible. A certified copy of the invoice must be submitted to the Commission together with the statement of expenditure,

| — | when a vessel is the property of the Member State or the partner, a detailed breakdown showing how the operating costs charged have been calculated shall be submitted to the Commission together with the statement of expenditure. |
| --- | --- |

—

when a vessel is the property of the Member State or the partner, a detailed breakdown showing how the operating costs charged have been calculated shall be submitted to the Commission together with the statement of expenditure.

| (f) | Subcontracting costs/external assistance:






  — | subcontracting/external assistance concerns standard and non-innovative services provided to the Member State and/or the partners who are unable to provide these services themselves. These costs shall not represent more than 20 % of the approved overall annual budget. The prior written approval of the Commission is required where the cumulative amount of the subcontracts in the national programme exceeds the above-specified limit, |
| --- | --- | --- |

(f)

Subcontracting costs/external assistance:

—

subcontracting/external assistance concerns standard and non-innovative services provided to the Member State and/or the partners who are unable to provide these services themselves. These costs shall not represent more than 20 % of the approved overall annual budget. The prior written approval of the Commission is required where the cumulative amount of the subcontracts in the national programme exceeds the above-specified limit,

| — | subcontracts must be awarded by a Member State/partner in accordance with the applicable rules on public tendering and in conformity with Community Directives on public procurement procedures, |
| --- | --- |

—

subcontracts must be awarded by a Member State/partner in accordance with the applicable rules on public tendering and in conformity with Community Directives on public procurement procedures,

| — | all invoices by subcontractors shall include a clear reference to the national programme and module (i.e. number and title or short title). All invoices shall be sufficiently detailed as to allow identification of single items covered by the service delivered (i.e. clear description and cost of each item), |
| --- | --- |

—

all invoices by subcontractors shall include a clear reference to the national programme and module (i.e. number and title or short title). All invoices shall be sufficiently detailed as to allow identification of single items covered by the service delivered (i.e. clear description and cost of each item),

| — | the Member States and partners must ensure that each subcontract shall provide expressly for the Commission and the Court of Auditors to exercise their powers of control, on documents and on the premises, over the subcontractor who has received Community funds, |
| --- | --- |

—

the Member States and partners must ensure that each subcontract shall provide expressly for the Commission and the Court of Auditors to exercise their powers of control, on documents and on the premises, over the subcontractor who has received Community funds,

| — | countries outside the Community may, if their contribution is considered necessary for carrying out Community programmes, participate as subcontractors in a national programme with the prior written approval of the Commission, |
| --- | --- |

—

countries outside the Community may, if their contribution is considered necessary for carrying out Community programmes, participate as subcontractors in a national programme with the prior written approval of the Commission,

| — | a certified copy of the contract with the subcontractor and subsequent proves of payment must be submitted to the Commission together with the statement of expenditure. |
| --- | --- |

—

a certified copy of the contract with the subcontractor and subsequent proves of payment must be submitted to the Commission together with the statement of expenditure.

| (g) | Other specific costs:






  — | Any other additional or unforeseen expenditure not falling within one of the above categories can be charged to the programme only with the prior agreement of the Commission unless they are already foreseen in the annual budget forecast. |
| --- | --- | --- |

(g)

Other specific costs:

—

Any other additional or unforeseen expenditure not falling within one of the above categories can be charged to the programme only with the prior agreement of the Commission unless they are already foreseen in the annual budget forecast.

| (h) | Support for scientific advice:






  — | daily allowances and travel costs are eligible for the duration of the meetings referred to in Article 10(2) of Regulation (EC) No 665/2008 in accordance with rule established in Article 10(3) of Regulation (EC) No 665/2008, |
| --- | --- | --- |

(h)

Support for scientific advice:

—

daily allowances and travel costs are eligible for the duration of the meetings referred to in Article 10(2) of Regulation (EC) No 665/2008 in accordance with rule established in Article 10(3) of Regulation (EC) No 665/2008,

| — | a certified copy of the supporting travel documents must be submitted to the Commission together with the statement of expenditure. |
| --- | --- |

—

a certified copy of the supporting travel documents must be submitted to the Commission together with the statement of expenditure.

---

ANNEX II

Content of the letter stating the amount claimed for reimbursement or demanded as pre-financing payment

The letter stating the amount claimed for reimbursement or demanded as pre-financing payment shall clearly indicate:

| 1. | the Commission Decision to which it refers (relevant Article and Annex); |
| --- | --- |

1.

the Commission Decision to which it refers (relevant Article and Annex);

| 2. | the reference to the national programme; |
| --- | --- |

2.

the reference to the national programme;

| 3. | the amount claimed from the Commission expressed in Euro, VAT excluded; |
| --- | --- |

3.

the amount claimed from the Commission expressed in Euro, VAT excluded;

| 4. | the type of claim (pre-finance, balance payment); |
| --- | --- |

4.

the type of claim (pre-finance, balance payment);

| 5. | the bank account to which the transfer should be made. |
| --- | --- |

5.

the bank account to which the transfer should be made.

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ANNEX III

STATEMENT OF EXPENDITURE

(to be sent to unit MARE.C4 through official channels)

PUBLIC EXPENDITURE INCURRED IN CARRYING OUT THE NATIONAL PROGRAMME FOR DATA COLLECTION

Commission Decision of/No ...

National reference (if any) ...

CERTIFICATE

I, the undersigned ... representing the authority ... responsible for the relevant financial and control procedures, hereby certify, after verification, that all eligible expenditure included in the attached documents, representing the total cost, was paid in 200... and amounts to: ... EUR (exact amount to two decimal places) concerning the national data collection programme 200... and corresponding to the European Commission contribution of 50 %;

An instalment of ... EUR has already been received in respect of the above programme.

I also certify that the statement of expenditure is accurate and the application for payment takes account of any recoveries made.

The operations were carried out in accordance with the objectives laid down in the decision and with the provisions of Council Regulation (EC) No 199/2008 as well as Council Regulation (EC) No 861/2006, in particular as regards:

| — | compliance with Community law and instruments adopted under it, in particular the rules on competition and the award of public contracts, |
| --- | --- |

—

compliance with Community law and instruments adopted under it, in particular the rules on competition and the award of public contracts,

| — | application of management and control procedures to the financial assistance, in particular to verify the delivery of the products and services co-financed and the reality of expenditure claimed and to prevent, detect and correct irregularities, pursue fraud, and recover unduly paid amounts. |
| --- | --- |

—

application of management and control procedures to the financial assistance, in particular to verify the delivery of the products and services co-financed and the reality of expenditure claimed and to prevent, detect and correct irregularities, pursue fraud, and recover unduly paid amounts.

The tables attached comprise the expenditure incurred. Certified copies of invoices for durable goods and vessel costs are annexed. Originals of all supporting documents and invoices will continue to be available for a minimum period of three years following payment of the balance by the Commission.

Date: .../.../...

Name capitals, stamp, position and signature of competent authority

List of enclosures:

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II Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory

DECISIONS

Commission

| 4.11.2008 | EN | Official Journal of the European Union | L 295/34 |
| --- | --- | --- | --- |

4.11.2008

EN

Official Journal of the European Union

L 295/34

---

COMMISSION DECISION

of 30 April 2008

on State aid C 21/07 (ex N 578/06) which Hungary is planning to implement in favour of IBIDEN Hungary Gyártó Kft.

(notified under document number C(2008) 1342)

(Only the Hungarian text is authentic)

(Text with EEA relevance)

(2008/830/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof,

Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,

Having called on interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments,

Whereas:

1.   PROCEDURE

| (1) | By electronic notification dated 30 August 2006, registered the same day at the Commission, the Hungarian authorities notified a case of application of existing regional aid schemes in favour of an initial investment project by IBIDEN Hungary Gyártó Kft. The notification was made pursuant to the individual notification requirement laid down in paragraph 24 of the Multisectoral Framework on regional aid for large investments projects 2002 (2) (hereafter: MSF 2002). |
| --- | --- |

(1)

By electronic notification dated 30 August 2006, registered the same day at the Commission, the Hungarian authorities notified a case of application of existing regional aid schemes in favour of an initial investment project by IBIDEN Hungary Gyártó Kft. The notification was made pursuant to the individual notification requirement laid down in paragraph 24 of the Multisectoral Framework on regional aid for large investments projects 2002 (2) (hereafter: MSF 2002).

| (2) | The Commission requested additional information by letters of 13 October 2006 (D/58881) and 13 March 2007 (D/51161). |
| --- | --- |

(2)

The Commission requested additional information by letters of 13 October 2006 (D/58881) and 13 March 2007 (D/51161).

| (3) | By letters registered at the Commission on 14 November 2006 (A/39085), 3 January 2007 (A/30004), 15 January 2007 (A/30441) and 27 March 2007 (A/32641) the Hungarian authorities asked the Commission to extend the deadline for providing additional information, which the Commission accepted. |
| --- | --- |

(3)

By letters registered at the Commission on 14 November 2006 (A/39085), 3 January 2007 (A/30004), 15 January 2007 (A/30441) and 27 March 2007 (A/32641) the Hungarian authorities asked the Commission to extend the deadline for providing additional information, which the Commission accepted.

| (4) | The Hungarian authorities submitted additional information by letters registered at the Commission on 31 January 2007 (A/30990) and 15 May 2007 (A/34072). |
| --- | --- |

(4)

The Hungarian authorities submitted additional information by letters registered at the Commission on 31 January 2007 (A/30990) and 15 May 2007 (A/34072).

| (5) | On 11 December 2006 and on 25 April 2007, meetings were held between the Hungarian authorities and the Commission services where also representatives of IBIDEN Hungary Gyártó Kft. were present. |
| --- | --- |

(5)

On 11 December 2006 and on 25 April 2007, meetings were held between the Hungarian authorities and the Commission services where also representatives of IBIDEN Hungary Gyártó Kft. were present.

| (6) | By letter dated 10 July 2007, the Commission informed Hungary that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. |
| --- | --- |

(6)

By letter dated 10 July 2007, the Commission informed Hungary that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid.

| (7) | The Commission Decision to initiate the procedure was published in the Official Journal of the European Union
   (3). The Commission invited interested parties to submit their comments on the aid measure. |
| --- | --- |

(7)

The Commission Decision to initiate the procedure was published in the Official Journal of the European Union
   (3). The Commission invited interested parties to submit their comments on the aid measure.

| (8) | The Commission received four comments from interested parties:






  (a) | by letter dated 25 October 2007, registered at the Commission on the same day (A/38842); |
| --- | --- | --- |

(8)

The Commission received four comments from interested parties:

(a)

by letter dated 25 October 2007, registered at the Commission on the same day (A/38842);

| (b) | by letter dated 22 November 2007, registered at the Commission on 24 November 2007 (A/39732); |
| --- | --- |

(b)

by letter dated 22 November 2007, registered at the Commission on 24 November 2007 (A/39732);

| (c) | by letter dated 23 November 2007, registered at the Commission on the same day (A/39711); |
| --- | --- |

(c)

by letter dated 23 November 2007, registered at the Commission on the same day (A/39711);

| (d) | by letter dated 26 November 2007, registered at the Commission on 27 November 2007 (A/39740). |
| --- | --- |

(d)

by letter dated 26 November 2007, registered at the Commission on 27 November 2007 (A/39740).

| (9) | By letter dated 4 December 2007 (D/54826), the Commission forwarded the observations received to Hungary which was given the opportunity to react. |
| --- | --- |

(9)

By letter dated 4 December 2007 (D/54826), the Commission forwarded the observations received to Hungary which was given the opportunity to react.

| (10) | The opinion from Hungary to the comments of interested parties was received by letter dated 4 January 2008, registered at the Commission on the same day (A/151). |
| --- | --- |

(10)

The opinion from Hungary to the comments of interested parties was received by letter dated 4 January 2008, registered at the Commission on the same day (A/151).

2.   DETAILED DESCRIPTION OF THE AID

2.1.   Objective of the measure

| (11) | The Hungarian authorities intend to promote regional development by providing regional investment aid to IBIDEN Hungary Gyártó Kft. for the setting up of a new manufacturing plant for the production of ceramic substrates for Diesel Particulate Filters in the Dunavarsány Industrial Park, in the region of Central Hungary (Pest County), which is an assisted area in accordance with Article 87(3)(a) of the EC Treaty with an aid intensity ceiling of 40 % Net Grant Equivalent (NGE) for the period 2004-2006 (4). |
| --- | --- |

(11)

The Hungarian authorities intend to promote regional development by providing regional investment aid to IBIDEN Hungary Gyártó Kft. for the setting up of a new manufacturing plant for the production of ceramic substrates for Diesel Particulate Filters in the Dunavarsány Industrial Park, in the region of Central Hungary (Pest County), which is an assisted area in accordance with Article 87(3)(a) of the EC Treaty with an aid intensity ceiling of 40 % Net Grant Equivalent (NGE) for the period 2004-2006 (4).

2.2.   The beneficiary

| (12) | The aid beneficiary is ‘IBIDEN Hungary Gyártó Kft.’ (hereinafter: IBIDEN HU). The aided project aims to set up the second production plant within IBIDEN’s ceramics division of ceramic substrates for Diesel Particulate Filters in the European Union, besides IBIDEN DPF France S.A.S. in France (set up in 2001). |
| --- | --- |

(12)

The aid beneficiary is ‘IBIDEN Hungary Gyártó Kft.’ (hereinafter: IBIDEN HU). The aided project aims to set up the second production plant within IBIDEN’s ceramics division of ceramic substrates for Diesel Particulate Filters in the European Union, besides IBIDEN DPF France S.A.S. in France (set up in 2001).

| (13) | IBIDEN HU was established on 5 May 2004 by IBIDEN European Holdings B.V. (The Netherlands) and IBIDEN Co., Ltd. (Japan). IBIDEN European Holdings B.V. is 100 % owned by IBIDEN Co., Ltd., which in turn is a joint-stock company with many proprietors: companies (e.g. banks) and private entities. IBIDEN HU is 99 % owned by IBIDEN European Holdings B.V. and 1 % by IBIDEN Co., Ltd. IBIDEN DPF France S.A.S. has been owned by IBIDEN European Holdings B.V. by 100 % since the end of 2005. |
| --- | --- |

(13)

IBIDEN HU was established on 5 May 2004 by IBIDEN European Holdings B.V. (The Netherlands) and IBIDEN Co., Ltd. (Japan). IBIDEN European Holdings B.V. is 100 % owned by IBIDEN Co., Ltd., which in turn is a joint-stock company with many proprietors: companies (e.g. banks) and private entities. IBIDEN HU is 99 % owned by IBIDEN European Holdings B.V. and 1 % by IBIDEN Co., Ltd. IBIDEN DPF France S.A.S. has been owned by IBIDEN European Holdings B.V. by 100 % since the end of 2005.

Image

| (14) | The parent company IBIDEN Co., Ltd. is a multinational company that was established in 1912, as a company generating electric power, and has its headquarters in Gifu, Japan. Its operations can be divided into five segments whose shares in the 2005 annual sales turnover were the following: 50 % for the electronics division, 22 % for the ceramics division, 16 % for the housing materials division, 4 % for the construction materials division and 8 % for other small divisions (such as oil products, information services, synthetic resin, agriculture, livestock and fishery processing departments). According to the Annual Report of 2006 (5), the IBIDEN Group consists of 47 subsidiaries and one affiliated company, which is not active in the ceramic sector. In 2006 consolidated net sales were Yen 319,0 billion, operating income was Yen 43,6 billion, and net income was Yen 27,2 billion. In the same year, the group counted 10 115 employees in its business representations and factories all over the world. |
| --- | --- |

(14)

The parent company IBIDEN Co., Ltd. is a multinational company that was established in 1912, as a company generating electric power, and has its headquarters in Gifu, Japan. Its operations can be divided into five segments whose shares in the 2005 annual sales turnover were the following: 50 % for the electronics division, 22 % for the ceramics division, 16 % for the housing materials division, 4 % for the construction materials division and 8 % for other small divisions (such as oil products, information services, synthetic resin, agriculture, livestock and fishery processing departments). According to the Annual Report of 2006 (5), the IBIDEN Group consists of 47 subsidiaries and one affiliated company, which is not active in the ceramic sector. In 2006 consolidated net sales were Yen 319,0 billion, operating income was Yen 43,6 billion, and net income was Yen 27,2 billion. In the same year, the group counted 10 115 employees in its business representations and factories all over the world.

2.3.   Investment project

2.3.1.   The new investment project of IBIDEN HU in Dunavarsány

| (15) | The notification concerns the second phase of an investment project, which aims to set up a plant to produce ceramic substrates for Diesel Particulate Filters in the Dunavarsány Industrial Park. |
| --- | --- |

(15)

The notification concerns the second phase of an investment project, which aims to set up a plant to produce ceramic substrates for Diesel Particulate Filters in the Dunavarsány Industrial Park.

| (16) | By letter dated 1 April 2005 the Hungarian authorities, in line with paragraph 36 of the MSF 2002 (6), informed the Commission about the State aid granted to IBIDEN HU for the first phase of the investment project. |
| --- | --- |

(16)

By letter dated 1 April 2005 the Hungarian authorities, in line with paragraph 36 of the MSF 2002 (6), informed the Commission about the State aid granted to IBIDEN HU for the first phase of the investment project.

| (17) | The Hungarian authorities indicate that the two phases of the investment by IBIDEN HU in the Dunavarsány Industrial Park have to be considered as a single investment project within the meaning of paragraph 49 of the MSF 2002: the two investment phases concern the same production site, the same company, the same product and they were started within a period of three years. |
| --- | --- |

(17)

The Hungarian authorities indicate that the two phases of the investment by IBIDEN HU in the Dunavarsány Industrial Park have to be considered as a single investment project within the meaning of paragraph 49 of the MSF 2002: the two investment phases concern the same production site, the same company, the same product and they were started within a period of three years.

| (18) | According to the information provided by the Hungarian authorities on the two investment phases, the production of ceramic substrates for Diesel Particulate Filters will take place in two newly built buildings of 24 000 m2 and 30 900 m2 respectively in the Dunavarsány Industrial Park. By 2007, four production lines will be installed in building I and five lines will be installed in building II. |
| --- | --- |

(18)

According to the information provided by the Hungarian authorities on the two investment phases, the production of ceramic substrates for Diesel Particulate Filters will take place in two newly built buildings of 24 000 m2 and 30 900 m2 respectively in the Dunavarsány Industrial Park. By 2007, four production lines will be installed in building I and five lines will be installed in building II.

| (19) | By 2007 the project will create a total of 1 100 new direct jobs in Dunavarsány. |
| --- | --- |

(19)

By 2007 the project will create a total of 1 100 new direct jobs in Dunavarsány.

| (20) | The Hungarian authorities confirm that no other products than those concerned by the investment project will be produced at the aided facility for five years after the completion of the investment. |
| --- | --- |

(20)

The Hungarian authorities confirm that no other products than those concerned by the investment project will be produced at the aided facility for five years after the completion of the investment.

| (21) | In addition, the Hungarian authorities confirm that the beneficiary accepted to maintain the investment at the site for a minimum period of five years after the completion of the investment. |
| --- | --- |

(21)

In addition, the Hungarian authorities confirm that the beneficiary accepted to maintain the investment at the site for a minimum period of five years after the completion of the investment.

2.3.2.   Timing of IBIDEN HU investment project in Dunavarsány

| (22) | The works on the investment project have already started in October 2004. Production linked to the project started in August 2005 in building I and in May 2006 in building II. Full capacity linked to the project was expected to be reached in April 2007. Table I provides further details on the timing of the project:
  Table I
  Timing of the investment project | Start of project | Start of production | End of project | Full production capacity |
| --- | --- | --- | --- | --- | --- |
| Phase I | 6.10.2004 | 1.8.2005 | 1.1.2006 | 1.5.2006
  (1,2 million units annually) |
| Phase II | 20.6.2005 | 3.5.2006 | 31.3.2007 | 1.4.2007
  (a further 1,2 million units annually) |

(22)

The works on the investment project have already started in October 2004. Production linked to the project started in August 2005 in building I and in May 2006 in building II. Full capacity linked to the project was expected to be reached in April 2007. Table I provides further details on the timing of the project:

Table I

Timing of the investment project

Start of project

Start of production

End of project

Full production capacity

Phase I

6.10.2004

1.8.2005

1.1.2006

1.5.2006

(1,2 million units annually)

Phase II

20.6.2005

3.5.2006

31.3.2007

1.4.2007

(a further 1,2 million units annually)

2.4.   Costs of the investment project

| (23) | The total eligible investment costs of the project are HUF 47 570 933 882 (EUR 190,83 million) in nominal value. In present value this amount is HUF 41 953 072 670 (EUR 168,30 million) (7). Table II provides a breakdown of the total eligible costs by year and category.
  Table II
  Eligible investment costs (Phases I and II) nominal value in million HUF | 2004 | 2005 | 2006 | 2007 | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Land | [...] (8) | [...] | [...] | [...] | [...] |
| Infrastructure | [...] | [...] | [...] | [...] | [...] |
| Buildings | [...] | [...] | [...] | [...] | [...] |
| Utility | [...] | [...] | [...] | [...] | [...] |
| Machinery | [...] | [...] | [...] | [...] | [...] |
| Eligible Investment | [...] | [...] | [...] | [...] | 47 571 |
| Phase I | Phase II | Phase I | Phase II | Phase I | Phase II | Phase I | Phase II | |
| [...] | [...] | [...] | [...] | [...] | [...] | [...] | [...] |

(23)

The total eligible investment costs of the project are HUF 47 570 933 882 (EUR 190,83 million) in nominal value. In present value this amount is HUF 41 953 072 670 (EUR 168,30 million) (7). Table II provides a breakdown of the total eligible costs by year and category.

Table II

Eligible investment costs (Phases I and II) nominal value in million HUF

2004

2005

2006

2007

Total

Land

[...] (8)

[...]

[...]

[...]

[...]

Infrastructure

[...]

[...]

[...]

[...]

[...]

Buildings

[...]

[...]

[...]

[...]

[...]

Utility

[...]

[...]

[...]

[...]

[...]

Machinery

[...]

[...]

[...]

[...]

[...]

Eligible Investment

[...]

[...]

[...]

[...]

47 571

Phase I

Phase II

Phase I

Phase II

Phase I

Phase II

Phase I

Phase II

[...]

[...]

[...]

[...]

[...]

[...]

[...]

[...]

2.5.   Financing of the project

| (24) | The Hungarian authorities confirmed that the own contribution by the beneficiary exceeds 25 % of the eligible costs, which is free of any public support. |
| --- | --- |

(24)

The Hungarian authorities confirmed that the own contribution by the beneficiary exceeds 25 % of the eligible costs, which is free of any public support.

2.6.   Legal basis

| (25) | The financial support to IBIDEN HU is granted on the basis of the following two legal basis:






  (a) | The Ministry of Economy and Transport will give a grant on the basis of the scheme ‘HU 1/2003 — Earmarked Scheme for Investment Promotion’ (9). This scheme has as its legal basis ‘Decree 1/2001 (I.5.) of the Minister of Economy on the Earmarked Scheme for Entrepreneurship’ and ‘Decree 19/2004 (II. 27.) of the Minister of Economy and Transport on Detailed Rules of Certain Aid Schemes of the Ministry’. |
| --- | --- | --- |

(25)

The financial support to IBIDEN HU is granted on the basis of the following two legal basis:

(a)

The Ministry of Economy and Transport will give a grant on the basis of the scheme ‘HU 1/2003 — Earmarked Scheme for Investment Promotion’ (9). This scheme has as its legal basis ‘Decree 1/2001 (I.5.) of the Minister of Economy on the Earmarked Scheme for Entrepreneurship’ and ‘Decree 19/2004 (II. 27.) of the Minister of Economy and Transport on Detailed Rules of Certain Aid Schemes of the Ministry’.

| (b) | The Ministry of Finance will grant a tax allowance based on the scheme ‘Development Tax Benefit’ (10). This scheme was established by ‘Act LXXXI of 1996 on Corporate Tax and Dividend Tax’ and by ‘Government Decree 275/2003 (XII.24.) on the Development Tax Benefit’. |
| --- | --- |

(b)

The Ministry of Finance will grant a tax allowance based on the scheme ‘Development Tax Benefit’ (10). This scheme was established by ‘Act LXXXI of 1996 on Corporate Tax and Dividend Tax’ and by ‘Government Decree 275/2003 (XII.24.) on the Development Tax Benefit’.

2.7.   Aid amount and aid intensity

| (26) | The total nominal aid amount is HUF 15 591 223 750 (EUR 62,55 million), which corresponds to HUF 9 793 809 933 (EUR 39,29 million) in present value. On the basis of the eligible costs indicated in paragraph 23 above, this corresponds to an aid intensity of 22,44 % in net grant equivalent (NGE) (11). |
| --- | --- |

(26)

The total nominal aid amount is HUF 15 591 223 750 (EUR 62,55 million), which corresponds to HUF 9 793 809 933 (EUR 39,29 million) in present value. On the basis of the eligible costs indicated in paragraph 23 above, this corresponds to an aid intensity of 22,44 % in net grant equivalent (NGE) (11).

| (27) | The aid is being provided in the form of the following two aid instruments. First, the Ministry of Economy and Transport is making a grant with a total amount in nominal value of HUF 3 592 000 000 (EUR 14,41 million) dispersed over the years of 2005 till 2007. Second, the Ministry of Finance is providing a corporate tax allowance (12) estimated at HUF 11 999 223 750 (EUR 48,14 million) in nominal value disbursed over the years 2007 until 2016. The grant in present value amounts to HUF 3 118 450 763 (EUR 12,51 million) and the tax allowance in present value is HUF 6 675 359 170 (EUR 26,78 million). |
| --- | --- |

(27)

The aid is being provided in the form of the following two aid instruments. First, the Ministry of Economy and Transport is making a grant with a total amount in nominal value of HUF 3 592 000 000 (EUR 14,41 million) dispersed over the years of 2005 till 2007. Second, the Ministry of Finance is providing a corporate tax allowance (12) estimated at HUF 11 999 223 750 (EUR 48,14 million) in nominal value disbursed over the years 2007 until 2016. The grant in present value amounts to HUF 3 118 450 763 (EUR 12,51 million) and the tax allowance in present value is HUF 6 675 359 170 (EUR 26,78 million).

| (28) | The Hungarian authorities specified that aid in the amount of HUF 7 411 828 735 (EUR 29,73 million) in present value (HUF 11 745 422 640 or EUR 47,12 million in nominal value) had already been granted to IBIDEN HU on the basis of the existing regional aid schemes (13) up to the individual notification threshold established in paragraph 24 of the MSF 2002. For the first phase of the investment project the Ministry of Finance granted aid on 25 February 2005 in the amount of HUF 4 832 595 058 (EUR 19,39 million) in present value (HUF 8 773 422 640 or EUR 35,20 million in nominal value) and the Ministry of Economy and Transport granted aid on 3 March 2005 in the amount of HUF 1 875 354 000 (EUR 7,52 million) in present value (HUF 2 142 000 000 or EUR 8,60 million in nominal value). For the second phase of the investment the Ministry of Economy and Transport granted aid in the amount of HUF 703 879 677 (EUR 2,82 million) in present value (HUF 830 000 000 or EUR 3,33 million in nominal value) on 22 December 2006. |
| --- | --- |

(28)

The Hungarian authorities specified that aid in the amount of HUF 7 411 828 735 (EUR 29,73 million) in present value (HUF 11 745 422 640 or EUR 47,12 million in nominal value) had already been granted to IBIDEN HU on the basis of the existing regional aid schemes (13) up to the individual notification threshold established in paragraph 24 of the MSF 2002. For the first phase of the investment project the Ministry of Finance granted aid on 25 February 2005 in the amount of HUF 4 832 595 058 (EUR 19,39 million) in present value (HUF 8 773 422 640 or EUR 35,20 million in nominal value) and the Ministry of Economy and Transport granted aid on 3 March 2005 in the amount of HUF 1 875 354 000 (EUR 7,52 million) in present value (HUF 2 142 000 000 or EUR 8,60 million in nominal value). For the second phase of the investment the Ministry of Economy and Transport granted aid in the amount of HUF 703 879 677 (EUR 2,82 million) in present value (HUF 830 000 000 or EUR 3,33 million in nominal value) on 22 December 2006.

| (29) | Thus, according to the Hungarian authorities, the aid amount, which is subject to the notification, is the difference between the total amount of aid and the support already granted, i.e. HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million). |
| --- | --- |

(29)

Thus, according to the Hungarian authorities, the aid amount, which is subject to the notification, is the difference between the total amount of aid and the support already granted, i.e. HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million).

| (30) | Regarding the remaining aid amount to be granted for the second phase of the investment, the Hungarian authorities have suspended the decision-making process until the decision of the European Commission. Thus, the authorisation of the notified aid is subject to Commission approval. |
| --- | --- |

(30)

Regarding the remaining aid amount to be granted for the second phase of the investment, the Hungarian authorities have suspended the decision-making process until the decision of the European Commission. Thus, the authorisation of the notified aid is subject to Commission approval.

| (31) | The Hungarian authorities confirm that the aid for the project cannot be cumulated with aid received for the same eligible costs from other local, regional, national or Community sources. |
| --- | --- |

(31)

The Hungarian authorities confirm that the aid for the project cannot be cumulated with aid received for the same eligible costs from other local, regional, national or Community sources.

| (32) | The Hungarian authorities confirm that the aid applications for the first phase of the investment project were submitted on 5 December 2003 at the Ministry of Economy and Transport and on 16 September 2004 at the Ministry of Finance. The aid applications for the second phase of the investment project were submitted on 28 March 2005 and on 31 May 2005 respectively. Therefore, the respective aid applications had been made before work started on the first phase on the project on 6 October 2004 and on the second phase of the project on 20 June 2005. |
| --- | --- |

(32)

The Hungarian authorities confirm that the aid applications for the first phase of the investment project were submitted on 5 December 2003 at the Ministry of Economy and Transport and on 16 September 2004 at the Ministry of Finance. The aid applications for the second phase of the investment project were submitted on 28 March 2005 and on 31 May 2005 respectively. Therefore, the respective aid applications had been made before work started on the first phase on the project on 6 October 2004 and on the second phase of the project on 20 June 2005.

2.8.   General commitments

| (33) | The Hungarian authorities committed themselves to submit to the Commission:






  — | within two months of granting the aid, a copy of the signed aid/investment contract(s) between the granting authority and the beneficiary; |
| --- | --- | --- |

(33)

The Hungarian authorities committed themselves to submit to the Commission:

—

within two months of granting the aid, a copy of the signed aid/investment contract(s) between the granting authority and the beneficiary;

| — | on a five-yearly basis, starting from the approval of the aid by the Commission, an intermediary report (including information on the aid amounts being paid, on the execution of the aid contract and on any other investment projects started at the same establishment/plant); |
| --- | --- |

—

on a five-yearly basis, starting from the approval of the aid by the Commission, an intermediary report (including information on the aid amounts being paid, on the execution of the aid contract and on any other investment projects started at the same establishment/plant);

| — | within six months after payment of the last tranche of the aid, based on the notified payment schedule, a detailed final report. |
| --- | --- |

—

within six months after payment of the last tranche of the aid, based on the notified payment schedule, a detailed final report.

3.   GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE

| (34) | The notified project concerns the production of ‘ceramic substrates for diesel particulate filters’ (hereafter: DPF), which are installed in diesel passenger cars and light duty trucks. The ceramic part, which is produced by IBIDEN HU, is an intermediate product (TIER 3), which is then sold under market conditions to independent companies, which apply a precious metal coating of the substrate to form a coated DPF (TIER 2). The coated DPFs are then sold to exhaust manifold producers (TIER 1), which are the direct suppliers of car assembly factories. |
| --- | --- |

(34)

The notified project concerns the production of ‘ceramic substrates for diesel particulate filters’ (hereafter: DPF), which are installed in diesel passenger cars and light duty trucks. The ceramic part, which is produced by IBIDEN HU, is an intermediate product (TIER 3), which is then sold under market conditions to independent companies, which apply a precious metal coating of the substrate to form a coated DPF (TIER 2). The coated DPFs are then sold to exhaust manifold producers (TIER 1), which are the direct suppliers of car assembly factories.

| (35) | The Commission, in the Decision to initiate the formal investigation procedure indicated that the Hungarian authorities suggested a broad definition of the relevant market, covering both key parts of the exhaust gas treatment system of diesel engine vehicles, namely Diesel Oxidation Catalysts (hereafter: DOC), which treat gases (i.e. CO and HC) and to a certain extent the soluble organic fraction (SOF) of particulate matter (PM); and Diesel Particulate Filters (hereafter: DPF) (14), which are effective in treating the insoluble fraction of particulate matter, i.e. soot. They argue these devices are very similar to each other, since both aim to reduce harmful substances from emissions, and therefore belong to the same relevant market. They also argue that the production processes and technologies to manufacture the two components are very similar. |
| --- | --- |

(35)

The Commission, in the Decision to initiate the formal investigation procedure indicated that the Hungarian authorities suggested a broad definition of the relevant market, covering both key parts of the exhaust gas treatment system of diesel engine vehicles, namely Diesel Oxidation Catalysts (hereafter: DOC), which treat gases (i.e. CO and HC) and to a certain extent the soluble organic fraction (SOF) of particulate matter (PM); and Diesel Particulate Filters (hereafter: DPF) (14), which are effective in treating the insoluble fraction of particulate matter, i.e. soot. They argue these devices are very similar to each other, since both aim to reduce harmful substances from emissions, and therefore belong to the same relevant market. They also argue that the production processes and technologies to manufacture the two components are very similar.

| (36) | The Commission, in the Decision to initiate the formal investigation procedure in the present case, noted that it had doubts on the compatibility of the aid with the common market based on Article 87(3)(a) of the EC Treaty and on the MSF 2002. The Commission also noted that the approach of the Hungarian authorities with regards to the relevant market was also not supported by the two independent market studies (the study by Frost & Sullivan Ltd (F&S)
   (15) and by AVL List GMBH (AVL)) (16), which were submitted by the Hungarian authorities. |
| --- | --- |

(36)

The Commission, in the Decision to initiate the formal investigation procedure in the present case, noted that it had doubts on the compatibility of the aid with the common market based on Article 87(3)(a) of the EC Treaty and on the MSF 2002. The Commission also noted that the approach of the Hungarian authorities with regards to the relevant market was also not supported by the two independent market studies (the study by Frost & Sullivan Ltd (F&S)
   (15) and by AVL List GMBH (AVL)) (16), which were submitted by the Hungarian authorities.

| (37) | In particular, the Commission expressed doubts whether DOC and DPF can be considered as substitutes, which belong to the same relevant product market of after-treatment devices and, at the moment of the initiation of the formal investigation procedure, the Commission considered that the relevant product market was narrower and covered only substrates of Diesel Particulate Filters to be fitted in diesel exhaust systems. |
| --- | --- |

(37)

In particular, the Commission expressed doubts whether DOC and DPF can be considered as substitutes, which belong to the same relevant product market of after-treatment devices and, at the moment of the initiation of the formal investigation procedure, the Commission considered that the relevant product market was narrower and covered only substrates of Diesel Particulate Filters to be fitted in diesel exhaust systems.

| (38) | First, the Commission noted that the DPF’s main function is to treat solid inorganic and insoluble particulate matter (i.e. soot), while the DOC aims to clean hazardous gases and the soluble organic fraction (SOF) contained in particulate matter, without being able to collect soot. While it is true that there is some overlap between the two functions insofar as the coated DPF treats as well harmful gases to a certain extent, this does not eliminate the need for a separate DOC in the exhaust gas treatment system. Both components will continue to co-exist and have to be installed together in the period to be considered (i.e. until 2008). For future Euro 5-6 technologies DOCs will continue to be used for oxidation of CO, HC and SOF. Thus, the Commission noted that there appeared to be no substitutability on the demand side, as these are two separate and complementing devices. |
| --- | --- |

(38)

First, the Commission noted that the DPF’s main function is to treat solid inorganic and insoluble particulate matter (i.e. soot), while the DOC aims to clean hazardous gases and the soluble organic fraction (SOF) contained in particulate matter, without being able to collect soot. While it is true that there is some overlap between the two functions insofar as the coated DPF treats as well harmful gases to a certain extent, this does not eliminate the need for a separate DOC in the exhaust gas treatment system. Both components will continue to co-exist and have to be installed together in the period to be considered (i.e. until 2008). For future Euro 5-6 technologies DOCs will continue to be used for oxidation of CO, HC and SOF. Thus, the Commission noted that there appeared to be no substitutability on the demand side, as these are two separate and complementing devices.

| (39) | The Commission also noted in the decision to initiate the formal investigation procedure that, according to one of the studies, a truly multi-functional product, which integrates on one ceramic monolith the functions of both DOC and DPF, had recently been introduced by the company Eberspächer and it was used in the Volkswagen Passat. However, the Commission doubted whether IBIDEN HU’s product is suitable for such a complete multi-functionality. |
| --- | --- |

(39)

The Commission also noted in the decision to initiate the formal investigation procedure that, according to one of the studies, a truly multi-functional product, which integrates on one ceramic monolith the functions of both DOC and DPF, had recently been introduced by the company Eberspächer and it was used in the Volkswagen Passat. However, the Commission doubted whether IBIDEN HU’s product is suitable for such a complete multi-functionality.

| (40) | Second, the Commission noted that the substitutability on the supply side was also questionable. No concrete evidence of substrates for DOCs producers, which are also capable of producing substrates for DPFs with the same equipment without major additional investment costs, or vice versa, were provided. Furthermore, substitutability is also doubtful because the price of the DPF is around four times higher than the price of the DOC. |
| --- | --- |

(40)

Second, the Commission noted that the substitutability on the supply side was also questionable. No concrete evidence of substrates for DOCs producers, which are also capable of producing substrates for DPFs with the same equipment without major additional investment costs, or vice versa, were provided. Furthermore, substitutability is also doubtful because the price of the DPF is around four times higher than the price of the DOC.

| (41) | Finally, the Commission observed that while the aid appears to meet the conditions of the Guidelines on national regional aid 1998 (17), the Commission had doubts whether the market share of the beneficiary in the relevant market is below 25 % as required by paragraph 24(a) of the MSF 2002. The market studies submitted by the Hungarian authorities indicate that the share in volume terms of IBIDEN in the DPF market in Europe substantially exceeds the 25 % threshold both before and after the investment. Thus the condition under paragraph 24(a) of MSF 2002 is not respected if the DPF is regarded as the relevant market. However, in the combined market of the DPF and DOC, which is considered as relevant by the Hungarian authorities, IBIDEN’s market share would remain below 25 % both before and after the investment in volume terms. |
| --- | --- |

(41)

Finally, the Commission observed that while the aid appears to meet the conditions of the Guidelines on national regional aid 1998 (17), the Commission had doubts whether the market share of the beneficiary in the relevant market is below 25 % as required by paragraph 24(a) of the MSF 2002. The market studies submitted by the Hungarian authorities indicate that the share in volume terms of IBIDEN in the DPF market in Europe substantially exceeds the 25 % threshold both before and after the investment. Thus the condition under paragraph 24(a) of MSF 2002 is not respected if the DPF is regarded as the relevant market. However, in the combined market of the DPF and DOC, which is considered as relevant by the Hungarian authorities, IBIDEN’s market share would remain below 25 % both before and after the investment in volume terms.

4.   COMMENTS FROM INTERESTED PARTIES

| (42) | In response to the publication of its Decision to open the formal investigation procedure in the Official Journal of the European Union, the Commission received observations by the following interested parties:






  (a) | the aid beneficiary IBIDEN Hungary Gyártó Kft.; |
| --- | --- | --- |

(42)

In response to the publication of its Decision to open the formal investigation procedure in the Official Journal of the European Union, the Commission received observations by the following interested parties:

(a)

the aid beneficiary IBIDEN Hungary Gyártó Kft.;

| (b) | Aerosol & Particle Technology Laboratory, Thermi-Thessaloniki, Greece, a centre for research and technology; |
| --- | --- |

(b)

Aerosol & Particle Technology Laboratory, Thermi-Thessaloniki, Greece, a centre for research and technology;

| (c) | Saint-Gobain Industrie Keramik Rödental GmbH, Rödental, Germany, a competitor (hereafter: Saint-Gobain); |
| --- | --- |

(c)

Saint-Gobain Industrie Keramik Rödental GmbH, Rödental, Germany, a competitor (hereafter: Saint-Gobain);

| (d) | an interested party, which, pursuant to Article 6(2) of the Council Regulation (EC) No 659/1999 (18), requested the Commission to withhold its identity. |
| --- | --- |

(d)

an interested party, which, pursuant to Article 6(2) of the Council Regulation (EC) No 659/1999 (18), requested the Commission to withhold its identity.

| (43) | The arguments put forward by the above-mentioned interested parties can be summarised as follows. |
| --- | --- |

(43)

The arguments put forward by the above-mentioned interested parties can be summarised as follows.

4.1.   Relevant product market according to IBIDEN HU and Aerosol & Particle Technology Laboratory

| (44) | The aid beneficiary IBIDEN HU and Aerosol & Particle Technology Laboratory are in favour of taking a broad market definition, which would cover all components (mainly DOC and DPF) in the exhaust gas treatment system of diesel engine vehicles. They observe that DOC and DPF are very similar to each other, since both aim to reduce harmful substances from emissions, and therefore belong to the same relevant product market. |
| --- | --- |

(44)

The aid beneficiary IBIDEN HU and Aerosol & Particle Technology Laboratory are in favour of taking a broad market definition, which would cover all components (mainly DOC and DPF) in the exhaust gas treatment system of diesel engine vehicles. They observe that DOC and DPF are very similar to each other, since both aim to reduce harmful substances from emissions, and therefore belong to the same relevant product market.

| (45) | According to this opinion, both DOC and DPF would be regarded as PM removal components, although IBIDEN HU acknowledges that DOC is ineffective in treating the insoluble part of PM (i.e. soot). The interested parties argue that due to the fact that IBIDEN HU’s product is able to filter HC and CO in addition to its main function of filtering soot, it belongs to the same market as DOC. It is up to car manufacturers to decide whether to construct the exhaust gas treatment part from independent components for detoxifying gaseous harmful substances and for treating the particle substances or to use the multifunctional component. |
| --- | --- |

(45)

According to this opinion, both DOC and DPF would be regarded as PM removal components, although IBIDEN HU acknowledges that DOC is ineffective in treating the insoluble part of PM (i.e. soot). The interested parties argue that due to the fact that IBIDEN HU’s product is able to filter HC and CO in addition to its main function of filtering soot, it belongs to the same market as DOC. It is up to car manufacturers to decide whether to construct the exhaust gas treatment part from independent components for detoxifying gaseous harmful substances and for treating the particle substances or to use the multifunctional component.

| (46) | Nevertheless, IBIDEN HU acknowledges in its submission that in spite of the additional function of IBIDEN HU’s DPF that helps cleaning gases (HC and CO) more efficiently, the combined use of DPF and DOC is necessary to ensure compliance with emission regulations. A high quality, well-developed DPF can reduce the size and sophistication of the DOC that car manufacturers need to install in their cars, thus, the DPF has had a huge impact on the DOC, and vice versa, which means that as one device becomes more sophisticated, the other device has to correspond to these changes. |
| --- | --- |

(46)

Nevertheless, IBIDEN HU acknowledges in its submission that in spite of the additional function of IBIDEN HU’s DPF that helps cleaning gases (HC and CO) more efficiently, the combined use of DPF and DOC is necessary to ensure compliance with emission regulations. A high quality, well-developed DPF can reduce the size and sophistication of the DOC that car manufacturers need to install in their cars, thus, the DPF has had a huge impact on the DOC, and vice versa, which means that as one device becomes more sophisticated, the other device has to correspond to these changes.

| (47) | Both IBIDEN HU and Aerosol & Particle Technology Laboratory refer to a trend in the technological development of DOC and DPF leading to a new generation of filters, which could incorporate the advantages, characteristics and former technologies in one unit, thereby combining the DOC and DPF on the same monolith substrate (for instance, Volkswagen has already introduced fourth generation after-treatment components to its Passat model, using just one DPF with no DOC). IBIDEN HU however indicated that it currently produces the ‘third generation’ (19) DPF and carries out continuous product improvement so that it can be converted into the ‘fourth generation’ DPF capable of fully incorporating the functionalities of the DOC. |
| --- | --- |

(47)

Both IBIDEN HU and Aerosol & Particle Technology Laboratory refer to a trend in the technological development of DOC and DPF leading to a new generation of filters, which could incorporate the advantages, characteristics and former technologies in one unit, thereby combining the DOC and DPF on the same monolith substrate (for instance, Volkswagen has already introduced fourth generation after-treatment components to its Passat model, using just one DPF with no DOC). IBIDEN HU however indicated that it currently produces the ‘third generation’ (19) DPF and carries out continuous product improvement so that it can be converted into the ‘fourth generation’ DPF capable of fully incorporating the functionalities of the DOC.

| (48) | IBIDEN HU also indicated that, although the Commission in the Decision to open the formal investigation procedure suggests the opposite, in reality the price of IBIDEN’s product is not four times more than the price of a DOC. IBIDEN HU manufactures a semi-finished product, and therefore the final product (coated DPF) is much more expensive than IBIDEN HU’s semi-finished product. The current industry experience shows that the market price of the device after the coating, canning and application of the mat is 2,5 times higher than that of the substrate, the product of IBIDEN Group: for example, in 2007 the market price of a DPF was EUR 453 and the price of the substrate (semi-finished product) was only EUR [...], while the market price of a DOC was EUR 102 in 2007 (20). |
| --- | --- |

(48)

IBIDEN HU also indicated that, although the Commission in the Decision to open the formal investigation procedure suggests the opposite, in reality the price of IBIDEN’s product is not four times more than the price of a DOC. IBIDEN HU manufactures a semi-finished product, and therefore the final product (coated DPF) is much more expensive than IBIDEN HU’s semi-finished product. The current industry experience shows that the market price of the device after the coating, canning and application of the mat is 2,5 times higher than that of the substrate, the product of IBIDEN Group: for example, in 2007 the market price of a DPF was EUR 453 and the price of the substrate (semi-finished product) was only EUR [...], while the market price of a DOC was EUR 102 in 2007 (20).

| (49) | Moreover, regarding the supply side substitution, IBIDEN HU indicates that the production technologies of DOC and DPF are very similar: the only main differences are that in the case of DPF a plugging process is added to that of DOC’s and the phase of cutting is earlier than in the case of DOC. |
| --- | --- |

(49)

Moreover, regarding the supply side substitution, IBIDEN HU indicates that the production technologies of DOC and DPF are very similar: the only main differences are that in the case of DPF a plugging process is added to that of DOC’s and the phase of cutting is earlier than in the case of DOC.

| (50) | Furthermore, IBIDEN HU claims that according to several studies, including a document by Johnson Matthey Japan, there are manufacturers that produce both DOC and DPF, so the distinction between DOC manufacturers and DPF manufacturers is blurred. |
| --- | --- |

(50)

Furthermore, IBIDEN HU claims that according to several studies, including a document by Johnson Matthey Japan, there are manufacturers that produce both DOC and DPF, so the distinction between DOC manufacturers and DPF manufacturers is blurred.

4.2.   Relevant product market according to Saint-Gobain and the interested party whose identity is withheld

| (51) | Two of the four interested parties — Saint-Gobain and the party whose identity is withheld — supported the Commission’s doubts expressed in the Decision to open the formal investigation procedure. According to them, DOC and DPF cannot be considered as substitutes and thus they do not belong to the same relevant product market. Therefore, they argue that in the present case the DPF market alone is the relevant product market. According to these parties, the main reasons for this are the following: |
| --- | --- |

(51)

Two of the four interested parties — Saint-Gobain and the party whose identity is withheld — supported the Commission’s doubts expressed in the Decision to open the formal investigation procedure. According to them, DOC and DPF cannot be considered as substitutes and thus they do not belong to the same relevant product market. Therefore, they argue that in the present case the DPF market alone is the relevant product market. According to these parties, the main reasons for this are the following:

4.2.1.   No demand side substitution

| (52) | The interested parties indicate that the main characteristics of the substrates for a DOC and a DPF are different: a DOC substrate is usually made from non porous cordierite which must resist 400 °C temperatures or from stainless metal foil. A DPF substrate is in general made of porous silicon carbide which must resist 1 000 °C (resistance to such high temperature is needed to burn-off soot and avoid blockage of the coated filter). Thus, due to very different thermal characteristics, customers cannot switch between substrates for DPF and substrates for DOC in case of relative price increase for one of the products. |
| --- | --- |

(52)

The interested parties indicate that the main characteristics of the substrates for a DOC and a DPF are different: a DOC substrate is usually made from non porous cordierite which must resist 400 °C temperatures or from stainless metal foil. A DPF substrate is in general made of porous silicon carbide which must resist 1 000 °C (resistance to such high temperature is needed to burn-off soot and avoid blockage of the coated filter). Thus, due to very different thermal characteristics, customers cannot switch between substrates for DPF and substrates for DOC in case of relative price increase for one of the products.

| (53) | According to Saint-Gobain, since the materials used for the substrates for DPF are higher performance materials, there is also a difference in prices between the two components: a substrate (without the cost of catalyst coating and canning) of a DPF on average costs EUR 120, while a substrate of a DOC on average costs between EUR 12-EUR 20 (also without the cost of catalyst coating and canning). Therefore, as Saint-Gobain claims, DPF manufacturers can obviously not switch to a DOC substrate for technical reasons (which they would otherwise do given the price difference) and a DOC producer would not substitute a DOC substrate with a DPF substrate as he/she would get a much more expensive product without an oxidation function comparable to a DOC substrate. |
| --- | --- |

(53)

According to Saint-Gobain, since the materials used for the substrates for DPF are higher performance materials, there is also a difference in prices between the two components: a substrate (without the cost of catalyst coating and canning) of a DPF on average costs EUR 120, while a substrate of a DOC on average costs between EUR 12-EUR 20 (also without the cost of catalyst coating and canning). Therefore, as Saint-Gobain claims, DPF manufacturers can obviously not switch to a DOC substrate for technical reasons (which they would otherwise do given the price difference) and a DOC producer would not substitute a DOC substrate with a DPF substrate as he/she would get a much more expensive product without an oxidation function comparable to a DOC substrate.

| (54) | Saint-Gobain and the party with withheld identity also emphasize the differences in the use of a DOC and a DPF (21): the primary purpose of a DOC is to oxidise certain gases by way of chemical reaction, while the primary function of a DPF is to filter out soot by way of mechanical process. While, under certain circumstances, a DPF performs — as a collateral effect — some of the functionality of the DOC, the full oxidation effect cannot be achieved without the installation of both devices. Even the coated DPF that uses the substrate produced by IBIDEN HU does not have the full functionality of a DOC, since it only serves the purpose of providing sufficient temperature for the burning-off the soot, but it does not have the same purification effect as a full-function DOC. They indicate that, according to the expectations of many car manufacturers and automotive suppliers, a DOC and a DPF will remain separate devices installed next to each other in the gas exhaust line. |
| --- | --- |

(54)

Saint-Gobain and the party with withheld identity also emphasize the differences in the use of a DOC and a DPF (21): the primary purpose of a DOC is to oxidise certain gases by way of chemical reaction, while the primary function of a DPF is to filter out soot by way of mechanical process. While, under certain circumstances, a DPF performs — as a collateral effect — some of the functionality of the DOC, the full oxidation effect cannot be achieved without the installation of both devices. Even the coated DPF that uses the substrate produced by IBIDEN HU does not have the full functionality of a DOC, since it only serves the purpose of providing sufficient temperature for the burning-off the soot, but it does not have the same purification effect as a full-function DOC. They indicate that, according to the expectations of many car manufacturers and automotive suppliers, a DOC and a DPF will remain separate devices installed next to each other in the gas exhaust line.

4.2.2.   No supply side substitution

| (55) | Further, Saint-Gobain and the party with withheld identity also indicate that the production process of the DOC and DPF substrates are very different: the non porous cordierite used for the DOC substrate is sintered in the air at 400 °C temperature. While silicon carbide, the material used for a DPF substrate (which is also the material of IBIDEN HU’s substrate), must be prepared at very high temperature (above 2 000 °C) in the oxygen free atmosphere. This difference of temperature alone is so vital that one of the most essential and costly production elements cannot be used to produce both types of product. |
| --- | --- |

(55)

Further, Saint-Gobain and the party with withheld identity also indicate that the production process of the DOC and DPF substrates are very different: the non porous cordierite used for the DOC substrate is sintered in the air at 400 °C temperature. While silicon carbide, the material used for a DPF substrate (which is also the material of IBIDEN HU’s substrate), must be prepared at very high temperature (above 2 000 °C) in the oxygen free atmosphere. This difference of temperature alone is so vital that one of the most essential and costly production elements cannot be used to produce both types of product.

| (56) | Further, a substrate for the DOC is always a single block honeycomb cylinder, the channels of which are not plugged. A substrate for the DPF is normally formed by gluing several filtering elements, and channels of the DPF are plugged. For the manufacture of DPF substrates a non-oxide high temperature sintering furnace, gluing and plugging equipment are needed, which are not necessary for the production of substrates for DOC. Thus, the interested parties argue that it is not possible to produce DPF on the DOC’s production lines or vice versa. |
| --- | --- |

(56)

Further, a substrate for the DOC is always a single block honeycomb cylinder, the channels of which are not plugged. A substrate for the DPF is normally formed by gluing several filtering elements, and channels of the DPF are plugged. For the manufacture of DPF substrates a non-oxide high temperature sintering furnace, gluing and plugging equipment are needed, which are not necessary for the production of substrates for DOC. Thus, the interested parties argue that it is not possible to produce DPF on the DOC’s production lines or vice versa.

5.   COMMENTS FROM THE HUNGARIAN AUTHORITIES

| (57) | The Hungarian authorities support the view of Aerosol & Particle Technology Laboratory and IBIDEN Hungary Gyártó Kft. in relation to the relevant product, market, price, demand side and supply side specificities. |
| --- | --- |

(57)

The Hungarian authorities support the view of Aerosol & Particle Technology Laboratory and IBIDEN Hungary Gyártó Kft. in relation to the relevant product, market, price, demand side and supply side specificities.

| (58) | According to the Hungarian authorities, modern diesel emission control is based on the integration of different functionalities at system level. The close inter-dependency of all sub-units (such as DOC and DPF) in a diesel emission control system, has led to multi-player supply-chains, linking substrate, coating and exhaust system manufacturers, and the performance characteristics of each individual sub-unit create challenges to the entire supply-chain. Therefore the diesel emission control system or diesel after-treatment system should be defined as the relevant product. |
| --- | --- |

(58)

According to the Hungarian authorities, modern diesel emission control is based on the integration of different functionalities at system level. The close inter-dependency of all sub-units (such as DOC and DPF) in a diesel emission control system, has led to multi-player supply-chains, linking substrate, coating and exhaust system manufacturers, and the performance characteristics of each individual sub-unit create challenges to the entire supply-chain. Therefore the diesel emission control system or diesel after-treatment system should be defined as the relevant product.

| (59) | They also argue that the product of IBIDEN HU is a multifunctional part fitted into the exhaust pipe system. The combination of this product and a DOC creates the third generation after-treatment device. Furthermore, the product of IBIDEN HU is a semi-finished product due to the fact that it will be coated at a further level. Without coating the product is not fully-functional and may not be classified as a finished product in terms of third-generation DPF. This is also supported by the fact that the final product is much more expensive than IBIDEN HU’s semi-finished product: currently the market price of the final device is 2,5 times higher than that of the filter produced by IBIDEN HU. |
| --- | --- |

(59)

They also argue that the product of IBIDEN HU is a multifunctional part fitted into the exhaust pipe system. The combination of this product and a DOC creates the third generation after-treatment device. Furthermore, the product of IBIDEN HU is a semi-finished product due to the fact that it will be coated at a further level. Without coating the product is not fully-functional and may not be classified as a finished product in terms of third-generation DPF. This is also supported by the fact that the final product is much more expensive than IBIDEN HU’s semi-finished product: currently the market price of the final device is 2,5 times higher than that of the filter produced by IBIDEN HU.

| (60) | Further, the Hungarian authorities indicate that, in practice, DPFs are installed in most diesel-engine cars, and manufacturers that need a DOC also need a DPF. The demand creates a common market for the products, as the same manufacturers use the same methods, infrastructure and efforts to obtain the products. On the supply side, DOC and DPF manufacturers usually use the same manufacturing processes, production technology and materials. In terms of materials, both DOCs and DPFs use cordierite. In production they undergo the same processes, such as material preparation, mixture, tempering, and moulding, drying, finishing and firing. The only differences between the production process of the two products are an extra stage (plugging) and the rescheduling of another stage (cutting). Consequently, the same manufacturers will be involved with supply, and DOC and DPF compete with each other in the exhaust gas after-treatment market. |
| --- | --- |

(60)

Further, the Hungarian authorities indicate that, in practice, DPFs are installed in most diesel-engine cars, and manufacturers that need a DOC also need a DPF. The demand creates a common market for the products, as the same manufacturers use the same methods, infrastructure and efforts to obtain the products. On the supply side, DOC and DPF manufacturers usually use the same manufacturing processes, production technology and materials. In terms of materials, both DOCs and DPFs use cordierite. In production they undergo the same processes, such as material preparation, mixture, tempering, and moulding, drying, finishing and firing. The only differences between the production process of the two products are an extra stage (plugging) and the rescheduling of another stage (cutting). Consequently, the same manufacturers will be involved with supply, and DOC and DPF compete with each other in the exhaust gas after-treatment market.

| (61) | The Hungarian authorities emphasize that IBIDEN HU is able to produce substrates for particulate filters with the same equipment without any significant investment, as any manufacturer with the same production technology could. As the DPF is a form of developed DOC, the cost of the modification is not an initial investment in another product line, but an essential development of production assets. |
| --- | --- |

(61)

The Hungarian authorities emphasize that IBIDEN HU is able to produce substrates for particulate filters with the same equipment without any significant investment, as any manufacturer with the same production technology could. As the DPF is a form of developed DOC, the cost of the modification is not an initial investment in another product line, but an essential development of production assets.

| (62) | In addition, the Hungarian authorities indicate that a clear trend can also be seen in the technological development of DOC and DPF, which is leading to a new generation of filters which could incorporate the advantages, characteristics and former technologies in one unit, thereby combining a DOC and a DPF. When defining the relevant market and calculating the market share, the DOC should also be taken into account as it constitutes a combined after-treatment device with a DPF, and together they ensure compliance with the regulations. |
| --- | --- |

(62)

In addition, the Hungarian authorities indicate that a clear trend can also be seen in the technological development of DOC and DPF, which is leading to a new generation of filters which could incorporate the advantages, characteristics and former technologies in one unit, thereby combining a DOC and a DPF. When defining the relevant market and calculating the market share, the DOC should also be taken into account as it constitutes a combined after-treatment device with a DPF, and together they ensure compliance with the regulations.

| (63) | In view of the above arguments, the Hungarian authorities consider that the only supportable definition of the relevant market is the whole diesel after-treatment devices market, including both DPF and DOC. According to the study prepared by an independent market research company AVL, IBIDEN’s market share in the diesel after-treatment devices market remains below 25 % both before and after the investment, thus, fulfilling the condition in paragraph 24(a) of MSF 2002. Therefore, the Hungarian authorities consider that the Commission should terminate the Article 88(2) procedure by a positive decision. |
| --- | --- |

(63)

In view of the above arguments, the Hungarian authorities consider that the only supportable definition of the relevant market is the whole diesel after-treatment devices market, including both DPF and DOC. According to the study prepared by an independent market research company AVL, IBIDEN’s market share in the diesel after-treatment devices market remains below 25 % both before and after the investment, thus, fulfilling the condition in paragraph 24(a) of MSF 2002. Therefore, the Hungarian authorities consider that the Commission should terminate the Article 88(2) procedure by a positive decision.

6.   ASSESSMENT OF THE AID

6.1.   Existence of State aid in the meaning of Article 87(1) of the EC Treaty

| (64) | In the Decision to initiate the formal investigation procedure, the Commission concluded that the financial support given by the Hungarian authorities to IBIDEN Hungary Gyártó Kft. on the basis of the existing regional aid schemes (HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ and N 504/2004 ‘Development Tax Benefit’) in the form of a grant and a tax credit constitutes State aid within the meaning of Article 87(1) of the EC Treaty. The Hungarian authorities have not contested that conclusion. |
| --- | --- |

(64)

In the Decision to initiate the formal investigation procedure, the Commission concluded that the financial support given by the Hungarian authorities to IBIDEN Hungary Gyártó Kft. on the basis of the existing regional aid schemes (HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ and N 504/2004 ‘Development Tax Benefit’) in the form of a grant and a tax credit constitutes State aid within the meaning of Article 87(1) of the EC Treaty. The Hungarian authorities have not contested that conclusion.

6.2.   Notification requirement, legality of the aid, and applicable law

| (65) | By notifying the measure in 2006, the Hungarian authorities complied with the individual notification requirement of paragraph 24 of the MSF 2002. |
| --- | --- |

(65)

By notifying the measure in 2006, the Hungarian authorities complied with the individual notification requirement of paragraph 24 of the MSF 2002.

| (66) | In line with paragraph 63 and footnote 58 of the Guidelines on national regional aid for 2007-2013 (22), the Commission assessed the aid measure under the provisions of the Guidelines on national regional aid 1998 (hereafter: RAG) and the MSF 2002. |
| --- | --- |

(66)

In line with paragraph 63 and footnote 58 of the Guidelines on national regional aid for 2007-2013 (22), the Commission assessed the aid measure under the provisions of the Guidelines on national regional aid 1998 (hereafter: RAG) and the MSF 2002.

6.3.   Compatibility of the aid with the RAG

| (67) | In the Decision to initiate the formal investigation procedure, the Commission indicated that the aid is granted in conformity with the existing regional aid schemes (23) and concluded that the standard compatibility criteria laid down in the RAG (such as compatibility criteria concerning initial investment in the region eligible for regional aid, eligible costs, own contribution, incentive effect, maintenance of the investment, cumulation) are respected. |
| --- | --- |

(67)

In the Decision to initiate the formal investigation procedure, the Commission indicated that the aid is granted in conformity with the existing regional aid schemes (23) and concluded that the standard compatibility criteria laid down in the RAG (such as compatibility criteria concerning initial investment in the region eligible for regional aid, eligible costs, own contribution, incentive effect, maintenance of the investment, cumulation) are respected.

6.4.   Compatibility of the aid with the MSF 2002 provisions

6.4.1.   Single investment project

| (68) | Paragraph 49 of the MSF 2002 states that an investment project should not be artificially divided into sub-projects in order to escape the provisions of the framework. A ‘single investment project’ includes all the fixed investments on a production site in a period of three years (24). A production site is an economically indivisible series of fixed capital items fulfilling a precise technical function, linked by a physical or functional link, and which have clearly identified aims, such as the production of a defined product. |
| --- | --- |

(68)

Paragraph 49 of the MSF 2002 states that an investment project should not be artificially divided into sub-projects in order to escape the provisions of the framework. A ‘single investment project’ includes all the fixed investments on a production site in a period of three years (24). A production site is an economically indivisible series of fixed capital items fulfilling a precise technical function, linked by a physical or functional link, and which have clearly identified aims, such as the production of a defined product.

| (69) | As IBIDEN HU already received regional aid in the past for the first phase of the investment project on the same location and as the notification refers to the second phase of the investment project, it is necessary to establish whether the two phases form part of the same single investment project. |
| --- | --- |

(69)

As IBIDEN HU already received regional aid in the past for the first phase of the investment project on the same location and as the notification refers to the second phase of the investment project, it is necessary to establish whether the two phases form part of the same single investment project.

| (70) | In this regard the Commission observes that the two investment phases concern the same production site (the Dunavarsány Industrial Park, the region of Central Hungary), the same company (IBIDEN HU), the same product (ceramic substrates for Diesel Particulate Filters) and the start of works on each project were commenced within a period of three years (the first phase started in 2004, while the second phase started in 2005). Consequently, the Commission considers that the criteria of the definition of a ‘production site’ in paragraph 49 of the MSF 2002 are fulfilled and that the two phases of the investment form part of the same single investment project. |
| --- | --- |

(70)

In this regard the Commission observes that the two investment phases concern the same production site (the Dunavarsány Industrial Park, the region of Central Hungary), the same company (IBIDEN HU), the same product (ceramic substrates for Diesel Particulate Filters) and the start of works on each project were commenced within a period of three years (the first phase started in 2004, while the second phase started in 2005). Consequently, the Commission considers that the criteria of the definition of a ‘production site’ in paragraph 49 of the MSF 2002 are fulfilled and that the two phases of the investment form part of the same single investment project.

| (71) | In addition, the Commission observes that the Hungarian authorities agree that the two phases of the investment by IBIDEN HU in the Dunavarsány Industrial Park have to be considered as a single investment project. |
| --- | --- |

(71)

In addition, the Commission observes that the Hungarian authorities agree that the two phases of the investment by IBIDEN HU in the Dunavarsány Industrial Park have to be considered as a single investment project.

6.4.2.   Aid intensity

| (72) | As the first and second phases of the investment are considered to form a single investment project, they both are taken into account to calculate the maximum aid intensity of the project. |
| --- | --- |

(72)

As the first and second phases of the investment are considered to form a single investment project, they both are taken into account to calculate the maximum aid intensity of the project.

| (73) | Given that the planned eligible expenditure in present value is HUF 41 953 072 670 (EUR 168,30 million) and the applicable standard regional aid ceiling is 40 % (NGE), the adjusted maximum aid intensity in NGE resulting from the scaling down mechanism of paragraphs 21 and 22 of the MSF 2002 is 23,34 %. |
| --- | --- |

(73)

Given that the planned eligible expenditure in present value is HUF 41 953 072 670 (EUR 168,30 million) and the applicable standard regional aid ceiling is 40 % (NGE), the adjusted maximum aid intensity in NGE resulting from the scaling down mechanism of paragraphs 21 and 22 of the MSF 2002 is 23,34 %.

| (74) | Since the aid intensity for the project is 22,44 % NGE and thus is below the maximum aid intensity allowed under the scaling down mechanism (23,34 % NGE), the proposed intensity of the overall aid package complies with the adjusted regional aid ceiling. |
| --- | --- |

(74)

Since the aid intensity for the project is 22,44 % NGE and thus is below the maximum aid intensity allowed under the scaling down mechanism (23,34 % NGE), the proposed intensity of the overall aid package complies with the adjusted regional aid ceiling.

6.4.3.   Compatibility with the rules under paragraphs 24(a) and (b) of the MSF 2002

| (75) | Since the total aid amount of HUF 9 793 809 933 (EUR 39,29 million) in present value exceeds the individual notification threshold of EUR 30 million, the compliance of the notified aid with paragraph 24(a) and (b) of the MSF 2002 has to be assessed. |
| --- | --- |

(75)

Since the total aid amount of HUF 9 793 809 933 (EUR 39,29 million) in present value exceeds the individual notification threshold of EUR 30 million, the compliance of the notified aid with paragraph 24(a) and (b) of the MSF 2002 has to be assessed.

| (76) | The Commission’s Decision to allow regional aid to large investment projects falling under paragraph 24 of the MSF 2002 depends on the market share of the beneficiary before and after the investment and on the capacity created by the investment. To carry out the relevant tests under paragraph 24(a) and (b) of the MSF 2002, the Commission has first to identify the product(s) concerned by the investment, and to define the relevant product and geographic markets. |
| --- | --- |

(76)

The Commission’s Decision to allow regional aid to large investment projects falling under paragraph 24 of the MSF 2002 depends on the market share of the beneficiary before and after the investment and on the capacity created by the investment. To carry out the relevant tests under paragraph 24(a) and (b) of the MSF 2002, the Commission has first to identify the product(s) concerned by the investment, and to define the relevant product and geographic markets.

6.4.3.1.   Product concerned by the investment project

| (77) | According to paragraph 52 of the MSF 2002, ‘product concerned’ means the product envisaged by the investment project and, where appropriate, its substitutes considered to be such, either by the consumer (by reason of the product’s characteristics, prices and intended use) or by the producer (through flexibility of the production installations). When the project concerns an intermediate product and a significant part of the output is not sold on the market, the product concerned will be deemed to include the downstream products. |
| --- | --- |

(77)

According to paragraph 52 of the MSF 2002, ‘product concerned’ means the product envisaged by the investment project and, where appropriate, its substitutes considered to be such, either by the consumer (by reason of the product’s characteristics, prices and intended use) or by the producer (through flexibility of the production installations). When the project concerns an intermediate product and a significant part of the output is not sold on the market, the product concerned will be deemed to include the downstream products.

| (78) | The notified project concerns the production of ‘ceramic substrates for diesel particulate filters (DPF)’. DPF is an automotive part, which is fitted into the exhaust gas treatment system of diesel engine vehicles and which cleans the exhaust gas generated by engine combustion (25). |
| --- | --- |

(78)

The notified project concerns the production of ‘ceramic substrates for diesel particulate filters (DPF)’. DPF is an automotive part, which is fitted into the exhaust gas treatment system of diesel engine vehicles and which cleans the exhaust gas generated by engine combustion (25).

| (79) | The ceramic part, which is produced by IBIDEN HU, is an intermediate product. After having produced it in the factory (TIER 3), it is sold under market conditions through IBIDEN Deutschland GmbH (26) to independent companies (the main customers are [...], [...] and [...]), which perform the precious metal coating of the substrate, and thus the DPF becomes a coated DPF (TIER 2). The coated DPFs are then sold to exhaust manifold producers (TIER 1), which are the direct suppliers of car assembly factories. The end users of ceramic substrates are diesel passenger cars and light duty trucks. |
| --- | --- |

(79)

The ceramic part, which is produced by IBIDEN HU, is an intermediate product. After having produced it in the factory (TIER 3), it is sold under market conditions through IBIDEN Deutschland GmbH (26) to independent companies (the main customers are [...], [...] and [...]), which perform the precious metal coating of the substrate, and thus the DPF becomes a coated DPF (TIER 2). The coated DPFs are then sold to exhaust manifold producers (TIER 1), which are the direct suppliers of car assembly factories. The end users of ceramic substrates are diesel passenger cars and light duty trucks.

| (80) | No other products for sale on the market or use by other IBIDEN Group’s plants will result from the investment project. The Hungarian authorities confirmed that no other products than those notified and assessed will be produced at the aided facility for five years after the end of the project/full production. |
| --- | --- |

(80)

No other products for sale on the market or use by other IBIDEN Group’s plants will result from the investment project. The Hungarian authorities confirmed that no other products than those notified and assessed will be produced at the aided facility for five years after the end of the project/full production.

| (81) | Following the above, the Commission will consider the ceramic substrate for DPF, which is installed in diesel passenger cars and light duty trucks as the product envisaged by the investment project. |
| --- | --- |

(81)

Following the above, the Commission will consider the ceramic substrate for DPF, which is installed in diesel passenger cars and light duty trucks as the product envisaged by the investment project.

6.4.3.2.   Relevant product and geographic markets

| (82) | The definition of the relevant product market requires the examination of what other products could be considered as substitutes to the product envisaged by the investment project within the meaning of paragraph 52 of the MSF 2002. In this regard and, having taken into account the comments from the interested parties and the Hungarian authorities, the Commission has looked which products could be considered as substitutes for DPF. The summary of this analysis is presented below. |
| --- | --- |

(82)

The definition of the relevant product market requires the examination of what other products could be considered as substitutes to the product envisaged by the investment project within the meaning of paragraph 52 of the MSF 2002. In this regard and, having taken into account the comments from the interested parties and the Hungarian authorities, the Commission has looked which products could be considered as substitutes for DPF. The summary of this analysis is presented below.

1.   General overview of the exhaust gas treatment system

| (83) | Emission reduction is a complex area with many interactions between technologies, impact on fuel economy, driving performance, durability and costs. Emission reduction measures can be divided into two main areas:






  (a) | combustion system developments to reduce engine-out emissions; and |
| --- | --- | --- |

(83)

Emission reduction is a complex area with many interactions between technologies, impact on fuel economy, driving performance, durability and costs. Emission reduction measures can be divided into two main areas:

(a)

combustion system developments to reduce engine-out emissions; and

| (b) | emission control technologies using ‘after-treatment’ of engines exhaust gas (only the latter is relevant for the present case). |
| --- | --- |

(b)

emission control technologies using ‘after-treatment’ of engines exhaust gas (only the latter is relevant for the present case).

| (84) | The exhaust gas of diesel engines contains hazardous substances: significant amounts of particulate matter (‘PM’, such as soot and Soluble Organic Fraction (SOF) (27)), and hazardous gases (such as hydrocarbons (HC), carbon oxides (COx), nitrogen oxides (NOx)). These materials are treated by the exhaust gas treatment system installed in vehicles. |
| --- | --- |

(84)

The exhaust gas of diesel engines contains hazardous substances: significant amounts of particulate matter (‘PM’, such as soot and Soluble Organic Fraction (SOF) (27)), and hazardous gases (such as hydrocarbons (HC), carbon oxides (COx), nitrogen oxides (NOx)). These materials are treated by the exhaust gas treatment system installed in vehicles.

| (85) | Accordingly, there are certain components within the system which clean hazardous substances. In general, these can be devices: (1) which clean the gas components and (2) which clean the particulate matter (including soot). The following two emission after-treatment devices, which are relevant for the present case, are used in diesel passenger cars and light duty trucks:






  (a) | ‘DOC’ — Diesel Oxidation Catalyst, which is intended to suppress hazardous gases (mainly hydrocarbons (HC), carbon oxides (COx)) and, as a collateral effect, it also eliminates to a certain extent SOF (soluble organic fraction of particulate matter), but which cannot treat soot. A DOC, similarly to a DPF, is composed of an inner-solid substrate through which the exhaust gases are channelled. When flowing through the channels, the exhaust gas enters into chemical reactions with the catalysers (platinum and palladium) deposited on the wall of the substrate. Since 2000 DOCs have been introduced in practically all diesel passenger car models in EEA in order to comply with more stringent emission norms, with regard to the limits of harmful gases in the emissions. |
| --- | --- | --- |

(85)

Accordingly, there are certain components within the system which clean hazardous substances. In general, these can be devices: (1) which clean the gas components and (2) which clean the particulate matter (including soot). The following two emission after-treatment devices, which are relevant for the present case, are used in diesel passenger cars and light duty trucks:

(a)

‘DOC’ — Diesel Oxidation Catalyst, which is intended to suppress hazardous gases (mainly hydrocarbons (HC), carbon oxides (COx)) and, as a collateral effect, it also eliminates to a certain extent SOF (soluble organic fraction of particulate matter), but which cannot treat soot. A DOC, similarly to a DPF, is composed of an inner-solid substrate through which the exhaust gases are channelled. When flowing through the channels, the exhaust gas enters into chemical reactions with the catalysers (platinum and palladium) deposited on the wall of the substrate. Since 2000 DOCs have been introduced in practically all diesel passenger car models in EEA in order to comply with more stringent emission norms, with regard to the limits of harmful gases in the emissions.

| (b) | ‘DPF’ — Diesel Particulate Filter, which is intended to retain the insoluble fractions of the particulate matter, i.e. soot. This is achieved by mechanical filtering. The exhaust gas flows into the channels of the DPF honeycomb structure and is forced to flow through the walls since the channels are alternatively plugged. The substrate serves as a filter and the soot is deposited on its walls. However, the DPF becomes saturated with soot and in order for it to remain functional the soot needs to be eliminated by burning it (regeneration of the filter). |
| --- | --- |

(b)

‘DPF’ — Diesel Particulate Filter, which is intended to retain the insoluble fractions of the particulate matter, i.e. soot. This is achieved by mechanical filtering. The exhaust gas flows into the channels of the DPF honeycomb structure and is forced to flow through the walls since the channels are alternatively plugged. The substrate serves as a filter and the soot is deposited on its walls. However, the DPF becomes saturated with soot and in order for it to remain functional the soot needs to be eliminated by burning it (regeneration of the filter).

| (86) | DPFs first appeared in series production in 2000 in the Peugeot 607 diesel car and have since become more and more widespread, witnessing a tremendous growth in the last 3-4 years. This growth is due partly to the tax incentives offered on diesel vehicles equipped with DPFs in several countries, partly to the more environmental conscious approach of the consumers, and also to the anticipation of tightening emission norms, notably, with regard to PM limits (in the EEA emission reduction is regulated by the ‘Euro’ emission standards). It is expected that before Euro 5 (28) comes into effect in 2009, an increasing share of diesel cars will already be equipped with DPF. This trend will ensure a further expanding market for DPFs in the coming years. |
| --- | --- |

(86)

DPFs first appeared in series production in 2000 in the Peugeot 607 diesel car and have since become more and more widespread, witnessing a tremendous growth in the last 3-4 years. This growth is due partly to the tax incentives offered on diesel vehicles equipped with DPFs in several countries, partly to the more environmental conscious approach of the consumers, and also to the anticipation of tightening emission norms, notably, with regard to PM limits (in the EEA emission reduction is regulated by the ‘Euro’ emission standards). It is expected that before Euro 5 (28) comes into effect in 2009, an increasing share of diesel cars will already be equipped with DPF. This trend will ensure a further expanding market for DPFs in the coming years.

| (87) | Different types of DPFs can be distinguished on the basis of the material of the filter (for instance, ceramic, cordierite or metal) and the filter regeneration strategy. Regeneration is necessary in order to eliminate (i.e. burn-off) the accumulated particles. In practice this is achieved either through an additive mixed with the fuel which lowers the oxidation temperature (the latter is known as an ‘uncoated DPF with fuel borne catalyst’) or through a precious metal coating covering the walls of the substrate which helps in the burn-off process (the latter is referred to as a ‘coated DPF’ or as an ‘impregnated catalysed DPF’). |
| --- | --- |

(87)

Different types of DPFs can be distinguished on the basis of the material of the filter (for instance, ceramic, cordierite or metal) and the filter regeneration strategy. Regeneration is necessary in order to eliminate (i.e. burn-off) the accumulated particles. In practice this is achieved either through an additive mixed with the fuel which lowers the oxidation temperature (the latter is known as an ‘uncoated DPF with fuel borne catalyst’) or through a precious metal coating covering the walls of the substrate which helps in the burn-off process (the latter is referred to as a ‘coated DPF’ or as an ‘impregnated catalysed DPF’).

| (88) | Due to the precious metal coating, this type of coated DPF also treats, to a limited extent, HC and CO gases by way of a chemical oxidation process. IBIDEN HU’s product belongs to this category. It is a ceramic substrate which is subsequently coated at TIER 2, and then integrated into the exhaust manifold system at TIER 1. |
| --- | --- |

(88)

Due to the precious metal coating, this type of coated DPF also treats, to a limited extent, HC and CO gases by way of a chemical oxidation process. IBIDEN HU’s product belongs to this category. It is a ceramic substrate which is subsequently coated at TIER 2, and then integrated into the exhaust manifold system at TIER 1.

2.   The definition of the relevant product market following the interested parties’ and Hungarian authorities’ comments

| (89) | In the Decision to open the formal investigation procedure, the Commission expressed several doubts, which have been summarised above, whether DOC and DPF can be considered as substitutes, which belong to the same relevant product market. |
| --- | --- |

(89)

In the Decision to open the formal investigation procedure, the Commission expressed several doubts, which have been summarised above, whether DOC and DPF can be considered as substitutes, which belong to the same relevant product market.

| (90) | The Commission considers that the arguments put forward by the aid beneficiary IBIDEN HU, the interested party Aerosol & Particle Technology Laboratory and by the Hungarian authorities do not dispel the initial doubts of the Commission, which were confirmed by the comments of Saint-Gobain and the interested party whose identity is withheld. In particular the Commission observes the following: |
| --- | --- |

(90)

The Commission considers that the arguments put forward by the aid beneficiary IBIDEN HU, the interested party Aerosol & Particle Technology Laboratory and by the Hungarian authorities do not dispel the initial doubts of the Commission, which were confirmed by the comments of Saint-Gobain and the interested party whose identity is withheld. In particular the Commission observes the following:

| (91) | The substrates of DPF and DOC do not belong to the same relevant product market as their product characteristics are different, as a consequence of which there is neither demand side nor supply side substitution between the two products. |
| --- | --- |

(91)

The substrates of DPF and DOC do not belong to the same relevant product market as their product characteristics are different, as a consequence of which there is neither demand side nor supply side substitution between the two products.

| (92) | From the demand side perspective, the Commission observes that there are significant differences in product characteristics, intended use and price between substrates for DPF and substrates for DOC:






  (a) | As demonstrated by the interested parties, the substrates for DOC are mostly made of the non-porous cordierite. The material used for the DOC substrate must resist an internal temperature of approximately 400 °C present inside the DOC. The reference material used for the substrates for DPF is silicon carbide. The DPF substrate must be porous in order to ensure the soot filtration. Due to the necessary regeneration of DPF, the substrate must be made of material resisting to very high temperatures (approximately 1 000 °C in case of a coated DPF) and to repeated thermal shocks. Thus, due to their different thermal characteristics, customers will be unable to switch between substrates for DPF and substrates for DOC in the event of price increase for one of the products. |
| --- | --- | --- |

(92)

From the demand side perspective, the Commission observes that there are significant differences in product characteristics, intended use and price between substrates for DPF and substrates for DOC:

(a)

As demonstrated by the interested parties, the substrates for DOC are mostly made of the non-porous cordierite. The material used for the DOC substrate must resist an internal temperature of approximately 400 °C present inside the DOC. The reference material used for the substrates for DPF is silicon carbide. The DPF substrate must be porous in order to ensure the soot filtration. Due to the necessary regeneration of DPF, the substrate must be made of material resisting to very high temperatures (approximately 1 000 °C in case of a coated DPF) and to repeated thermal shocks. Thus, due to their different thermal characteristics, customers will be unable to switch between substrates for DPF and substrates for DOC in the event of price increase for one of the products.

| (b) | As far as the price is concerned, the Commission supports the view of Saint-Gobain and the interested party with withheld identity in this regard and observes that there is a big price difference between substrates of DOC and DPF, since the materials used for the substrates for DPF are higher performance materials whose production implies higher costs (for example, the use of a non-oxide high temperature sintering furnace is required). According to the submission from the interested parties, the average price per unit of the substrate for DPF ranges between EUR 120-180 (without the cost of the catalyst coating and the canning cost), whereas the price of the substrate for DOC ranges between EUR 12 and EUR 20 (also without the cost of the catalyst coating and the canning cost). Such a price difference indicates that substrates for DPF do not belong to the same market as substrates for DOC, because DPF TIER 2 manufacturers cannot switch to purchasing a DOC substrate for technical reasons (otherwise they would do so because of a big price difference) and a DOC producer would not substitute a DOC substrate with a DPF substrate as s/he would get a more expensive product without an oxidation function comparable to a DOC substrate. |
| --- | --- |

(b)

As far as the price is concerned, the Commission supports the view of Saint-Gobain and the interested party with withheld identity in this regard and observes that there is a big price difference between substrates of DOC and DPF, since the materials used for the substrates for DPF are higher performance materials whose production implies higher costs (for example, the use of a non-oxide high temperature sintering furnace is required). According to the submission from the interested parties, the average price per unit of the substrate for DPF ranges between EUR 120-180 (without the cost of the catalyst coating and the canning cost), whereas the price of the substrate for DOC ranges between EUR 12 and EUR 20 (also without the cost of the catalyst coating and the canning cost). Such a price difference indicates that substrates for DPF do not belong to the same market as substrates for DOC, because DPF TIER 2 manufacturers cannot switch to purchasing a DOC substrate for technical reasons (otherwise they would do so because of a big price difference) and a DOC producer would not substitute a DOC substrate with a DPF substrate as s/he would get a more expensive product without an oxidation function comparable to a DOC substrate.

| (c) | As far as the intended use is concerned, on the basis of the submissions from the interested parties, the Commission observes that the primary purpose of a DOC is to oxidise certain gases contained in the diesel exhaust into less harmful substances by way of a chemical reaction. The primary function of a DPF is to filter out soot by way of a mechanical filtering process. While, under certain circumstances, a DPF performs — as a collateral effect — some of the functionality of the DOC, the full oxidation effect cannot be achieved without the installation of both devices. Moreover, a DOC device does not fulfil any functionality of a DPF, as it does not filter soot. According to the expectations of car manufacturers and automotive suppliers, DOC and DPF will remain separate devices installed next to each other in the gas exhaust line (29). |
| --- | --- |

(c)

As far as the intended use is concerned, on the basis of the submissions from the interested parties, the Commission observes that the primary purpose of a DOC is to oxidise certain gases contained in the diesel exhaust into less harmful substances by way of a chemical reaction. The primary function of a DPF is to filter out soot by way of a mechanical filtering process. While, under certain circumstances, a DPF performs — as a collateral effect — some of the functionality of the DOC, the full oxidation effect cannot be achieved without the installation of both devices. Moreover, a DOC device does not fulfil any functionality of a DPF, as it does not filter soot. According to the expectations of car manufacturers and automotive suppliers, DOC and DPF will remain separate devices installed next to each other in the gas exhaust line (29).

| (d) | The oxidation performed by the catalysts of IBIDEN HU DPF substrate serves the purpose of providing sufficient temperatures for the burning of the soot, but it does not have the same purification effect as a full-function DOC. As has been pointed out in the submissions from the interested parties, the so-called multi-functional product by IBIDEN HU does not eliminate the need for a separate DOC in the exhaust gas treatment system. The Hungarian authorities and the aid beneficiary also admit that, due to the current legislation, IBIDEN HU’s so-called multi-functional product still needs to be installed together with the DOC. |
| --- | --- |

(d)

The oxidation performed by the catalysts of IBIDEN HU DPF substrate serves the purpose of providing sufficient temperatures for the burning of the soot, but it does not have the same purification effect as a full-function DOC. As has been pointed out in the submissions from the interested parties, the so-called multi-functional product by IBIDEN HU does not eliminate the need for a separate DOC in the exhaust gas treatment system. The Hungarian authorities and the aid beneficiary also admit that, due to the current legislation, IBIDEN HU’s so-called multi-functional product still needs to be installed together with the DOC.

| (e) | The Commission observes that the belief expressed by the IBIDEN HU and the Hungarian authorities concerning the tendency to use a combined single solution (of DOC and DPF) might reflect the future trend of the emission control technologies, however, it does not reflect the current situation, which is subject to the Commission’s analysis. Thus both DPF and DOC will continue to co-exist and will be installed together in the period to be considered (from 2003 to 2008 i.e. one year before the start of and one year after full completion of the investment project). As illustrated by market data estimates in one of the studies, DOCs remain the major emission control component to be installed in all diesel cars in the period concerned. The study also confirms that for future Euro 5 and Euro 6 technologies DOCs will continue to be used for oxidation of CO, HC and SOF. |
| --- | --- |

(e)

The Commission observes that the belief expressed by the IBIDEN HU and the Hungarian authorities concerning the tendency to use a combined single solution (of DOC and DPF) might reflect the future trend of the emission control technologies, however, it does not reflect the current situation, which is subject to the Commission’s analysis. Thus both DPF and DOC will continue to co-exist and will be installed together in the period to be considered (from 2003 to 2008 i.e. one year before the start of and one year after full completion of the investment project). As illustrated by market data estimates in one of the studies, DOCs remain the major emission control component to be installed in all diesel cars in the period concerned. The study also confirms that for future Euro 5 and Euro 6 technologies DOCs will continue to be used for oxidation of CO, HC and SOF.

| (f) | In addition, the Commission observes that the market study by Frost & Sullivan, which is an independent industry consultant and researcher, analyses only DPF as a stand alone product to treat particulate matter and it does not refer to DOC. |
| --- | --- |

(f)

In addition, the Commission observes that the market study by Frost & Sullivan, which is an independent industry consultant and researcher, analyses only DPF as a stand alone product to treat particulate matter and it does not refer to DOC.

| (93) | Further, from the supply side perspective, there are differences in the production processes of the DOC and DPF substrates. Since the DPF substrate must have high temperature resistance, the material (mostly silicon carbide) must be prepared at very high temperatures and under oxygen free atmosphere. The cordierite which is predominantly used for the DOC substrate is sintered in the air and at relatively much lower temperature. Moreover, the substrate for DOC is a single block honeycomb cylinder whereas the DPF substrate is formed by gluing several filtering elements and the channels of the DPF are plugged, which is not the case for DOC. It follows then that the production of the DPF substrate necessitates a non oxide high temperature sintering furnace, gluing system and plugging machines and these equipments are not necessary for the production of the DOC substrate. It appears therefore that it is not possible to produce DPF and DOC substrate on the same production lines without significant additional costs. |
| --- | --- |

(93)

Further, from the supply side perspective, there are differences in the production processes of the DOC and DPF substrates. Since the DPF substrate must have high temperature resistance, the material (mostly silicon carbide) must be prepared at very high temperatures and under oxygen free atmosphere. The cordierite which is predominantly used for the DOC substrate is sintered in the air and at relatively much lower temperature. Moreover, the substrate for DOC is a single block honeycomb cylinder whereas the DPF substrate is formed by gluing several filtering elements and the channels of the DPF are plugged, which is not the case for DOC. It follows then that the production of the DPF substrate necessitates a non oxide high temperature sintering furnace, gluing system and plugging machines and these equipments are not necessary for the production of the DOC substrate. It appears therefore that it is not possible to produce DPF and DOC substrate on the same production lines without significant additional costs.

| (94) | As regards, the argument put forward by IBIDEN HU and the Hungarian authorities that there are manufacturers that produce both DOC and DPF and that the distinction between DOC manufacturers and DPF manufacturers is thus blurred, the Commission considers that it is not relevant whether the same manufacturer can produce or not both products. What is relevant is whether the same equipment can be used for the production of both substrates without significant additional costs. This was not demonstrated by the interested parties or the Hungarian authorities. Notably, no concrete evidence of DOC substrate producers, which would produce substrates for DPFs with the same equipment without major additional investment costs, or vice versa, was provided. |
| --- | --- |

(94)

As regards, the argument put forward by IBIDEN HU and the Hungarian authorities that there are manufacturers that produce both DOC and DPF and that the distinction between DOC manufacturers and DPF manufacturers is thus blurred, the Commission considers that it is not relevant whether the same manufacturer can produce or not both products. What is relevant is whether the same equipment can be used for the production of both substrates without significant additional costs. This was not demonstrated by the interested parties or the Hungarian authorities. Notably, no concrete evidence of DOC substrate producers, which would produce substrates for DPFs with the same equipment without major additional investment costs, or vice versa, was provided.

| (95) | In view of the above-mentioned arguments, the Commission considers that although a DOC and a DPF belong, together with the other components (for instance, Lean NOx Trap, the purpose of which is to reduce the NOx in the exhaust gas) to a diesel passenger car’s or light duty truck’s after-treatment/diesel emission control system, the mere fact that they exist next to each other in the same exhaust line or influence each other’s development does not make them substitutes from the demand side and/or supply side viewpoint, as these are two separate components with different characteristics, prices and intended use. Moreover, as regards substitutability on the supply side, there are differences in the production processes of the DOC and DPF substrates, leading to the conclusion that there is no substitutability between DOC substrates and DPF substrates on the supply side. |
| --- | --- |

(95)

In view of the above-mentioned arguments, the Commission considers that although a DOC and a DPF belong, together with the other components (for instance, Lean NOx Trap, the purpose of which is to reduce the NOx in the exhaust gas) to a diesel passenger car’s or light duty truck’s after-treatment/diesel emission control system, the mere fact that they exist next to each other in the same exhaust line or influence each other’s development does not make them substitutes from the demand side and/or supply side viewpoint, as these are two separate components with different characteristics, prices and intended use. Moreover, as regards substitutability on the supply side, there are differences in the production processes of the DOC and DPF substrates, leading to the conclusion that there is no substitutability between DOC substrates and DPF substrates on the supply side.

| (96) | On the basis of the above and for the purpose of this Decision, the Commission considers that the relevant product market covers only substrates for Diesel Particulate Filters to be fitted in the exhaust systems of diesel passenger cars and light duty trucks. |
| --- | --- |

(96)

On the basis of the above and for the purpose of this Decision, the Commission considers that the relevant product market covers only substrates for Diesel Particulate Filters to be fitted in the exhaust systems of diesel passenger cars and light duty trucks.

3.   Relevant geographic market

| (97) | In the Decision to initiate the formal investigation procedure the Commission considered that the relevant geographical market should be EEA-wide due to the differences in emission regulation and fuel quality standards compared to third countries and the lower share of diesel vehicles in other major automotive markets (30). At present demand seems to be very low for after-treatment devices for diesel light duty vehicles in markets other than EEA. With the development of more advanced after-treatment devices for diesel vehicles, which will then be able to meet the requirements regarding exhaust-gas emission in some third countries, the market for after-treatment devices is expected to expand geographically only after 2008. |
| --- | --- |

(97)

In the Decision to initiate the formal investigation procedure the Commission considered that the relevant geographical market should be EEA-wide due to the differences in emission regulation and fuel quality standards compared to third countries and the lower share of diesel vehicles in other major automotive markets (30). At present demand seems to be very low for after-treatment devices for diesel light duty vehicles in markets other than EEA. With the development of more advanced after-treatment devices for diesel vehicles, which will then be able to meet the requirements regarding exhaust-gas emission in some third countries, the market for after-treatment devices is expected to expand geographically only after 2008.

| (98) | None of the interested parties or the Hungarian authorities have contested this conclusion. On the basis of the above and for the purpose of this decision, the Commission considers that the relevant geographical market for DPF is EEA-wide. |
| --- | --- |

(98)

None of the interested parties or the Hungarian authorities have contested this conclusion. On the basis of the above and for the purpose of this decision, the Commission considers that the relevant geographical market for DPF is EEA-wide.

6.4.3.3.   Market share

| (99) | According to paragraph 24(a) of the MSF 2002, an individually notifiable investment project will not be eligible for investment aid if the aid beneficiary accounts for more than 25 % of the sales of the product concerned before the investment or will, after the investment, account for more than 25 %. |
| --- | --- |

(99)

According to paragraph 24(a) of the MSF 2002, an individually notifiable investment project will not be eligible for investment aid if the aid beneficiary accounts for more than 25 % of the sales of the product concerned before the investment or will, after the investment, account for more than 25 %.

| (100) | To examine whether the project is compatible with paragraph 24(a) of the MSF 2002, the market share of the aid beneficiary at group level before and after the investment has to be analysed. As the investment of IBIDEN HU started in 2004 and the full capacity production of 2,4 million units per year was expected to be achieved in 2007, the Commission examined the market shares in 2003 and 2008. |
| --- | --- |

(100)

To examine whether the project is compatible with paragraph 24(a) of the MSF 2002, the market share of the aid beneficiary at group level before and after the investment has to be analysed. As the investment of IBIDEN HU started in 2004 and the full capacity production of 2,4 million units per year was expected to be achieved in 2007, the Commission examined the market shares in 2003 and 2008.

| (101) | The Hungarian authorities confirmed that there are no joint-ventures and long-term marketing arrangements between IBIDEN and other companies in the ceramic division. |
| --- | --- |

(101)

The Hungarian authorities confirmed that there are no joint-ventures and long-term marketing arrangements between IBIDEN and other companies in the ceramic division.

| (102) | The Hungarian authorities have provided market data from the following sources: Frost & Sullivan Ltd. and AVL List GmbH. The market shares of IBIDEN Group on DPF market before the start and after completion of the project in volume terms for Europe are given in Table III below.
  Table III
  Market share of IBIDEN at group level in Europe







  (Data in units) |
| --- | --- |
| | 2003 | 2008 |
| Sales by IBIDEN group | [...] | [...] |
| Total DPF market | 702 000 | 6 340 000 |
| Share in DPF market | [...] % | [...] % |
| Source: Frost & Sullivan Ltd. (). |

(102)

The Hungarian authorities have provided market data from the following sources: Frost & Sullivan Ltd. and AVL List GmbH. The market shares of IBIDEN Group on DPF market before the start and after completion of the project in volume terms for Europe are given in Table III below.

Table III

Market share of IBIDEN at group level in Europe

(Data in units)

2003

2008

Sales by IBIDEN group

[...]

[...]

Total DPF market

702 000

6 340 000

Share in DPF market

[...] %

[...] %

Source: Frost & Sullivan Ltd. ().

| (103) | The studies submitted by the Hungarian authorities demonstrate that the market share of IBIDEN at Group level in the DPF market both before and after the investment amounts to [...] % — [...] % in Europe in volume terms (32) and therefore substantially exceeds the 25 % threshold (33). Thus the condition in paragraph 24(a) of the MSF 2002 is not respected. |
| --- | --- |

(103)

The studies submitted by the Hungarian authorities demonstrate that the market share of IBIDEN at Group level in the DPF market both before and after the investment amounts to [...] % — [...] % in Europe in volume terms (32) and therefore substantially exceeds the 25 % threshold (33). Thus the condition in paragraph 24(a) of the MSF 2002 is not respected.

6.4.3.4.   Production capacity increase/Growing market test

| (104) | Paragraph 24 of the MSF 2002 provides that individually notifiable projects will not be eligible for investment aid if one of the conditions stipulated in paragraph 24 is not fulfilled. Although, as indicated above, the condition in paragraph 24(a) of the MSF 2002 is not respected, the Commission has also examined whether the investment project complies with another condition stipulated in paragraph 24(b) of the MSF 2002. According to paragraph 24(b) of the MSF 2002, the individually notifiable investment project will not be eligible for investment aid if the capacity created by the project is more than 5 % of the size of the market measured using apparent consumption data of the product concerned, unless the average annual growth rate of its apparent consumption over the last five years is above the average annual growth rate of the European Economic Areas’s GDP over the same period. |
| --- | --- |

(104)

Paragraph 24 of the MSF 2002 provides that individually notifiable projects will not be eligible for investment aid if one of the conditions stipulated in paragraph 24 is not fulfilled. Although, as indicated above, the condition in paragraph 24(a) of the MSF 2002 is not respected, the Commission has also examined whether the investment project complies with another condition stipulated in paragraph 24(b) of the MSF 2002. According to paragraph 24(b) of the MSF 2002, the individually notifiable investment project will not be eligible for investment aid if the capacity created by the project is more than 5 % of the size of the market measured using apparent consumption data of the product concerned, unless the average annual growth rate of its apparent consumption over the last five years is above the average annual growth rate of the European Economic Areas’s GDP over the same period.

| (105) | In this context the Commission observes that, as shown in Table IV below, the average annual growth of the apparent consumption (measured as total sales) in Europe of DPF over the last five years is substantially above the average annual growth rate of the EEA’s GDP (34).
  Table IV
  Growing market test












  (Sales in units) |
| --- | --- |
| | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | CAGR (35) |
| DPF | 29 000 | 290 000 | 702 000 | 1 169 000 | 1 791 000 | 2 957 000 | 152,17 % |
| GDP (millions of EUR in constant 1995 prices) (EU 27) | 8 197 605,0 | 8 295 193,5 | 8 402 482,6 | 8 610 427,6 | 8 765 680,7 | 9 027 663,9 | 1,95 % |

(105)

In this context the Commission observes that, as shown in Table IV below, the average annual growth of the apparent consumption (measured as total sales) in Europe of DPF over the last five years is substantially above the average annual growth rate of the EEA’s GDP (34).

Table IV

Growing market test

(Sales in units)

2001

2002

2003

2004

2005

2006

CAGR (35)

DPF

29 000

290 000

702 000

1 169 000

1 791 000

2 957 000

152,17 %

GDP (millions of EUR in constant 1995 prices) (EU 27)

8 197 605,0

8 295 193,5

8 402 482,6

8 610 427,6

8 765 680,7

9 027 663,9

1,95 %

| (106) | Consequently, the Commission concludes that the aid under scrutiny is in conformity with paragraph 24(b) of the MSF 2002, however, as shown above, the aid is not in conformity with paragraph 24(a) of the MSF 2002. |
| --- | --- |

(106)

Consequently, the Commission concludes that the aid under scrutiny is in conformity with paragraph 24(b) of the MSF 2002, however, as shown above, the aid is not in conformity with paragraph 24(a) of the MSF 2002.

6.5.   Negative effects of the aid and conclusion

| (107) | In accordance with the rules on regional aid, aid amounting to HUF 7 411 828 735 (EUR 29,73 million) in present value (HUF 11 745 422 640 or EUR 47,12 million in nominal value) had already been granted to IBIDEN HU on the basis of the existing regional aid schemes (36) up to the individual notification threshold established in paragraph 24 of the MSF 2002. The aid amount, which is subject to the present notification, is the difference between the total amount of aid and the support already granted, i.e. HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million). |
| --- | --- |

(107)

In accordance with the rules on regional aid, aid amounting to HUF 7 411 828 735 (EUR 29,73 million) in present value (HUF 11 745 422 640 or EUR 47,12 million in nominal value) had already been granted to IBIDEN HU on the basis of the existing regional aid schemes (36) up to the individual notification threshold established in paragraph 24 of the MSF 2002. The aid amount, which is subject to the present notification, is the difference between the total amount of aid and the support already granted, i.e. HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million).

| (108) | Paragraph 24 of the MSF 2002 provides that individually notifiable projects will not be eligible for investment aid if one of the conditions stipulated in paragraph 24 is not fulfilled. As demonstrated above, the aid under the scrutiny does not comply with paragraph 24(a) of the MSF 2002 because the market share of IBIDEN at group level in the DPF market in Europe both before and after the investment substantially exceeds the 25 % threshold. |
| --- | --- |

(108)

Paragraph 24 of the MSF 2002 provides that individually notifiable projects will not be eligible for investment aid if one of the conditions stipulated in paragraph 24 is not fulfilled. As demonstrated above, the aid under the scrutiny does not comply with paragraph 24(a) of the MSF 2002 because the market share of IBIDEN at group level in the DPF market in Europe both before and after the investment substantially exceeds the 25 % threshold.

| (109) | The high market share of IBIDEN reflects the prevailing position of the company in the DPF market. According to the study by Frost & Sullivan Ltd (F&S) (37) and comments provided by the interested parties, IBIDEN enjoys an outstanding position in the European market for DPF, as it is one of the two major filter substrate manufacturers in the world (the other main manufacturer being NGK). The Commission observes that the DPF market in Europe has experienced tremendous growth over the last years, as all vehicle manufacturers adopt the technology to meet the Euro emission limits. It is a highly profitable market the future strong development of which also seems to be secured. The aid subject to the notification would even more strengthen the leading position of IBIDEN in this market, making it more difficult for new entrants to consolidate their position in this market. The aid subject to the notification is thus susceptible to create substantial distortion of competition. |
| --- | --- |

(109)

The high market share of IBIDEN reflects the prevailing position of the company in the DPF market. According to the study by Frost & Sullivan Ltd (F&S) (37) and comments provided by the interested parties, IBIDEN enjoys an outstanding position in the European market for DPF, as it is one of the two major filter substrate manufacturers in the world (the other main manufacturer being NGK). The Commission observes that the DPF market in Europe has experienced tremendous growth over the last years, as all vehicle manufacturers adopt the technology to meet the Euro emission limits. It is a highly profitable market the future strong development of which also seems to be secured. The aid subject to the notification would even more strengthen the leading position of IBIDEN in this market, making it more difficult for new entrants to consolidate their position in this market. The aid subject to the notification is thus susceptible to create substantial distortion of competition.

| (110) | On the basis of the foregoing considerations, the Commission concludes that the aid subject to the notification is not compatible with the common market. As the aid of HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million) has not been granted, there is no need for its recovery, |
| --- | --- |

(110)

On the basis of the foregoing considerations, the Commission concludes that the aid subject to the notification is not compatible with the common market. As the aid of HUF 2 381 981 198 (EUR 9,56 million) in present value (in nominal value this amount is HUF 3 845 801 110 or EUR 15,43 million) has not been granted, there is no need for its recovery,

HAS ADOPTED THIS DECISION:

Article 1

The State aid which the Republic of Hungary is planning to implement for IBIDEN Hungary Gyártó Kft. amounting to HUF 2 381 981 198 in present value (HUF 3 845 801 110 in nominal terms) is incompatible with the common market.

The aid may accordingly not be implemented.

Article 2

The Republic of Hungary shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

Article 3

This Decision is addressed to the Republic of Hungary.

Done at Brussels, 30 April 2008.

For the Commission

Neelie KROES

Member of the Commission

---

(1)  OJ C 224, 25.9.2007, p. 2.

1

(2)  Communication from the Commission — Multisectoral framework on regional aid for large investment projects (OJ C 70, 19.3.2002, p. 8) as modified by the Commission communication on the modification of the Multisectoral Framework on regional aid for large investment projects (2002) with regard to the establishment of a list of sectors facing structural problems and on a proposal of appropriate measures pursuant to Article 88 paragraph 1 of the EC Treaty, concerning the motor vehicle sector and the synthetic fibres sector (OJ C 263, 1.11.2003, p. 3).

2

(3)  Cf. footnote 1.

3

(4)  Commission letter of 9 July 2004, C(2004) 2773/5 concerning HU 12/2003 — Regional aid map of Hungary for the period from 1 May 2004 until 31 December 2006.

4

(5)  Financial year ended 31 March 2006.

5

(6)  In order to ensure transparency and effective monitoring on regional aid to large investment projects, paragraph 36 of the MSF 2002 provides for a special ‘transparency mechanism’. Under the transparency mechanism Member States must provide information in a standard format whenever aid is granted under the MSF 2002 for non-notifiable projects with eligible costs exceeding EUR 50 million.

6

(7)  Calculated, in accordance with the rules of the underlying aid scheme, on the basis of an exchange rate of 249,28 HUF/EUR (applicable on 31 August 2004) and a reference rate of 8,59 %.

7

(8)  Covered by the obligation of professional secrecy.

8

(9)  HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ was submitted under the interim procedure and accepted by the Commission as existing aid within the meaning of Annex IV, Chapter 3, paragraph (1)(c) (under Article 22) of the Treaty of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary Malta, Poland, Slovenia and Slovakia to the European Union.

9

(10)  HU 3/2004 ‘Development Tax Benefit Scheme’ was submitted under the interim procedure and accepted by the Commission as existing aid within the meaning of Annex IV, Chapter 3, paragraph (1)(c) (under Article 22) of the Treaty of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary Malta, Poland, Slovenia and Slovakia to the European Union. The amendment of the scheme was notified to the Commission (case number N 504/2004) and approved by the Commission on 23 December 2004 (ref. C(2004) 5652).

10

(11)  In this decision, the net grant equivalent (NGE) is calculated on the basis of the standard corporate tax rate applicable in Hungary (16 %).

11

(12)  The tax allowance is capped in terms of its overall present value.

12

(13)  HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ and N 504/2004 (ex HU 3/2004) ‘Development Tax Benefit Scheme’.

13

(14)  Differences in the intended use between the end products, DPF and DOC, are a reflection of the different uses of their respective substrates. Therefore, hereafter in the decision DPF will be used alternatively to substrate of DPF.

14

DPF

substrate of DPF

(15)  ‘Strategic analysis of the European market for Diesel Particulate Filters’, October 2006. The firm Frost & Sullivan is active in market/industry consulting and research.

15

(16)  ‘Market survey on PM reduction after-treatment devices’, March 2007. AVL List is closely involved with the design and development of internal combustion engines. The AVL study, which was commissioned by IBIDEN HU for the present case, argues that both DOC and DPF belong to the same relevant product market, however, the data and analysis presented in the AVL study do not confirm this argument, i.e. various elements/information in the study indicate the absence of substitutability, and not the opposite.

16

i.e.

(17)  OJ C 74, 10.3.1998, p. 9.

17

(18)  OJ L 83, 27.3.1999, p. 1.

18

(19)  The concept of subsequent generations of the product is used by IBIDEN HU to refer to the evolution of the technology.

19

(20)  However, as regards the DOC's market price of EUR 102, as provided in the AVL study, it seems that it refers to the DOC price after coating at TIER 2 as well, and therefore the price of the DOC substrate would need to be adjusted downwards the same way as IBIDEN adjusted DPF's substrate prices.

20

(21)  Differences in the intended use between the end products, DPF and DOC, are a reflection of the different uses of their respective substrates.

21

(22)  OJ C 54, 4.3.2006, p. 13.

22

(23)  HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ and N 504/2004 (ex HU 3/2004) ‘Development Tax Benefit Scheme’.

23

(24)  Because investment projects may continue over several years, the three year period is calculated, in principle, from the start of works on each project.

24

(25)  DPF is not yet required by the current European legislation, but is already installed in certain motor vehicles. From September 2009 onwards, new limit values will become mandatory for new types of diesel passenger cars (category M1) and light duty commercial vehicles (category N1 class I) with a reference mass not exceeding 2 610 kg (these limits will apply for classes II and III of N1 and N2 vehicles as from September 2010). This will in practice result in the instalment of DPFs in order to fulfil the limit values.

25

1

1

1

2

(26)  The Hungarian authorities confirmed that IBIDEN Deutschland GmbH is a trade and marketing company, and it does not produce exhaust gas treatment parts. No other IBIDEN Group's company carries out any further processing on the parts produced by IBIDEN HU.

26

(27)  SOF: soluble organic fraction like organic material derived from engine lubricating oil and from fuel.

27

(28)  Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information (OJ L 171, 29.6.2007, p. 1).

28

(29)  This trend, as illustrated by Saint-Gobain, is underlined by the various presentations given during various expert forums in 2007 by General Motors, DaimlerChrysler, Johnson Matthey, Hyundai and Arvin Meritor.

29

(30)  According to the market study by AVL, modern exhaust after-treatment systems need sulphur free diesel fuel to ensure effective and durable performance. Low sulphur diesel fuel was introduced in the EU in 2005 and will be mandatory in 2009.

30

(31)  Data compiled by AVL reflect a somewhat smaller market than F&S and would result in inconsistencies as the volume of the beneficiary's sales in Europe before the investment (i.e. in 2003) is higher then total sales estimated by AVL. Therefore for the DPF market figures contained in the F&S study were used where no such inconsistencies arose. Moreover, taking the higher F&S data is in favour of the beneficiary, but even in this scenario, market shares are well above 25 %. The F&S study directly refers to the number of DPFs sold or expected to be sold on the market taking into account all manufacturers of DPFs. It should also be noted that although the studies refer to DPF, i.e. the ready-made downstream product, in practice the volume of substrates sold equals the number of DPFs sold.

31

i.e

i.e.

(32)  IBIDEN HU's ceramic substrate is an intermediary product which is subject to further processing (i.e. coating, canning) at subsequent levels of the value chain (carried out by independent companies). Since data in value terms contained in the submitted studies refer only to the ready made DPF whose price is substantially higher that that of IBIDEN's product, and since no reliable data has been submitted as regards the price of the intermediary product, the Commission considers that in the case at hand, analysis in volume terms should be used. In any event, if IBIDEN sells DPF substrates at close to the average market price, market shares in value terms would be comparable.

32

i.e.

(33)  According to data provided by Saint-Gobain, even in a hypothetical market comprising substrates for both DPF and DOC (DPF + DOC market), IBIDEN's market share is above 25 % in value terms in the EEA. However, this argument is not confirmed by the AVL study (which was commissioned by the beneficiary), as it indicates substantially higher prices of DOCs and thus a market share in value terms remains below 25 % in the combined market (however, as regards the market price of the DOC as provided in the AVL study, it would seem that this refers to the DOC price after coating at TIER 2, which would explain the significantly higher price compared with the one indicated for the substrate by Saint-Gobain). Therefore, on the basis of the available information it cannot be concluded whether in such a hypothetical market IBIDEN's market share would be above or below 25 % in value terms in the EEA.

33

(34)  For practical reasons, EU-27 GDP figures were considered.

34

(35)  CAGR: Compound annual growth rate.

35

(36)  HU 1/2003 ‘Earmarked Scheme for Investment Promotion’ and N 504/2004 (ex HU 3/2004) ‘Development Tax Benefit Scheme’.

36

(37)  ‘Strategic analysis of the European market for Diesel Particulate Filters’, October 2006. The firm Frost & Sullivan is active in market/industry consulting and research.

37

---

| 4.11.2008 | EN | Official Journal of the European Union | L 295/50 |
| --- | --- | --- | --- |

4.11.2008

EN

Official Journal of the European Union

L 295/50

---

COMMISSION DECISION

of 31 October 2008

setting a new deadline for the submission of dossiers for certain substances to be examined under the 10-year work programme referred to in Article 16(2) of Directive 98/8/EC

(notified under document number C(2008) 6266)

(Text with EEA relevance)

(2008/831/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Directive 98/8/EC of the European Parliament and of the Council of 16 February 1998 concerning the placing of biocidal products on the market (1), and in particular the second subparagraph of Article 16(2) thereof,

Whereas:

| (1) | Commission Regulation (EC) No 1451/2007 of 4 December 2007 on the second phase of the 10-year work programme referred to in Article 16(2) of Directive 98/8/EC of the European Parliament and of the Council concerning the placing of biocidal products on the market (2) establishes a list of active substances to be assessed, with a view to their possible inclusion in Annex I, IA or IB to Directive 98/8/EC. |
| --- | --- |

(1)

Commission Regulation (EC) No 1451/2007 of 4 December 2007 on the second phase of the 10-year work programme referred to in Article 16(2) of Directive 98/8/EC of the European Parliament and of the Council concerning the placing of biocidal products on the market (2) establishes a list of active substances to be assessed, with a view to their possible inclusion in Annex I, IA or IB to Directive 98/8/EC.

| (2) | For a number of substances/product-type combinations included in that list, either all participants have withdrawn or no dossier has been received within the deadline specified in Article 9(2)(c) of Regulation (EC) No 1451/2007 by the Member State designated as rapporteur for the evaluation. |
| --- | --- |

(2)

For a number of substances/product-type combinations included in that list, either all participants have withdrawn or no dossier has been received within the deadline specified in Article 9(2)(c) of Regulation (EC) No 1451/2007 by the Member State designated as rapporteur for the evaluation.

| (3) | Consequently, and pursuant to Article 11(2) of Regulation (EC) No 1451/2007, the Commission informed the Member States thereof. That information was also made public by electronic means on 8 November 2007. |
| --- | --- |

(3)

Consequently, and pursuant to Article 11(2) of Regulation (EC) No 1451/2007, the Commission informed the Member States thereof. That information was also made public by electronic means on 8 November 2007.

| (4) | Within three months of the electronic publication of that information, companies indicated an interest in taking over the role of participant for some of the substances and product-types concerned, in accordance with Article 12(1) of Regulation (EC) No 1451/2007. |
| --- | --- |

(4)

Within three months of the electronic publication of that information, companies indicated an interest in taking over the role of participant for some of the substances and product-types concerned, in accordance with Article 12(1) of Regulation (EC) No 1451/2007.

| (5) | A new deadline should therefore be established for the submission of dossiers for these substances and product-types in accordance with the second subparagraph of Article 12(3) of that Regulation. |
| --- | --- |

(5)

A new deadline should therefore be established for the submission of dossiers for these substances and product-types in accordance with the second subparagraph of Article 12(3) of that Regulation.

| (6) | The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on Biocidal Products, |
| --- | --- |

(6)

The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on Biocidal Products,

HAS ADOPTED THIS DECISION:

Article 1

For the substances and the product-types set out in the Annex, the new deadline for the submission of dossiers shall be 1 December 2009.

Article 2

This Decision is addressed to the Member States.

Done at Brussels, 31 October 2008.

For the Commission

Stavros DIMAS

Member of the Commission

---

(1)  OJ L 123, 24.4.1998, p. 1.

1

(2)  OJ L 325, 11.12.2007, p. 3.

2

---

ANNEX

Substances and product-types for which the new deadline for the submission of dossiers is 1 December 2009

| Name | EC number | CAS number | Producttype | RMS |
| --- | --- | --- | --- | --- |
| 1,2-benzisothiazol-3(2H)-one | 220-120-9 | 2634-33-5 | 2 | ES |
| 2,2′-dithiobis[N-methylbenzamide] | 219-768-5 | 2527-58-4 | 6 | PL |
| 2,2′-dithiobis[N-methylbenzamide] | 219-768-5 | 2527-58-4 | 13 | PL |
| 2-Butanone, peroxide | 215-661-2 | 1338-23-4 | 1 | HU |
| 2-Butanone, peroxide | 215-661-2 | 1338-23-4 | 2 | HU |
| 2-Butanone, peroxide | 215-661-2 | 1338-23-4 | 3 | HU |
| 2-Butanone, peroxide | 215-661-2 | 1338-23-4 | 6 | HU |
| 2-chloroacetamide | 201-174-2 | 79-07-2 | 3 | EE |
| 2-chloroacetamide | 201-174-2 | 79-07-2 | 6 | EE |
| 2-chloroacetamide | 201-174-2 | 79-07-2 | 13 | EE |
| Dodecylguanidine monohydrochloride | 237-030-0 | 13590-97-1 | 6 | ES |
| Ethylene oxide | 200-849-9 | 75-21-8 | 2 | NO |
| Glyoxal | 203-474-9 | 107-22-2 | 2 | FR |
| Glyoxal | 203-474-9 | 107-22-2 | 3 | FR |
| Glyoxal | 203-474-9 | 107-22-2 | 4 | FR |
| Hexa-2,4-dienoic acid/Sorbic acid | 203-768-7 | 110-44-1 | 6 | DE |
| Mixture of cis- and trans-p-menthane-3,8 diol/Citriodiol | 255-953-7 | 42822-86-6 | 1 | UK |
| Mixture of cis- and trans-p-menthane-3,8 diol/Citriodiol | 255-953-7 | 42822-86-6 | 2 | UK |
| Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride) | Polymer | 374572-91-5 | 1 | FR |
| Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride) | Polymer | 374572-91-5 | 5 | FR |
| Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride) | Polymer | 374572-91-5 | 6 | FR |
| Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride) | Polymer | 374572-91-5 | 13 | FR |
| Poly(hexamethylendiamine guanidinium chloride) | Polymer | 57028-96-3 | 1 | FR |
| Poly(hexamethylendiamine guanidinium chloride) | Polymer | 57028-96-3 | 5 | FR |
| Poly(hexamethylendiamine guanidinium chloride) | Polymer | 57028-96-3 | 6 | FR |
| Poly(hexamethylendiamine guanidinium chloride) | Polymer | 57028-96-3 | 13 | FR |
| Polyvinylpyrrolidone iodine | Polymer | 25655-41-8 | 1 | SE |
| Potassium (E,E)-hexa-2,4-dienoate | 246-376-1 | 24634-61-5 | 6 | DE |
| Pyridine-2-thiol 1-oxide, sodium salt | 223-296-5 | 3811-73-2 | 2 | SE |
| Pyridine-2-thiol 1-oxide, sodium salt | 223-296-5 | 3811-73-2 | 3 | SE |
| Salicylic acid | 200-712-3 | 69-72-7 | 1 | LT |
| Salicylic acid | 200-712-3 | 69-72-7 | 2 | LT |
| Salicylic acid | 200-712-3 | 69-72-7 | 3 | LT |
| Salicylic acid | 200-712-3 | 69-72-7 | 4 | LT |
| Silicon dioxide — amorphous | 231-545-4 | 7631-86-9 | 3 | FR |
| Silver chloride | 232-033-3 | 7783-90-6 | 3 | SE |
| Silver chloride | 232-033-3 | 7783-90-6 | 4 | SE |
| Silver chloride | 232-033-3 | 7783-90-6 | 5 | SE |
| Silver chloride | 232-033-3 | 7783-90-6 | 13 | SE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 1 | DE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 2 | DE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 4 | DE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 5 | DE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 6 | DE |
| Sulphur dioxide | 231-195-2 | 7446-09-5 | 13 | DE |
| Thiabendazole | 205-725-8 | 148-79-8 | 2 | ES |
| Thiabendazole | 205-725-8 | 148-79-8 | 13 | ES |
| Triclosan | 222-182-2 | 3380-34-5 | 3 | DK |
| Polymer of formaldehyde and acrolein | Polymer | 26781-23-7 | 3 | HU |

Name

EC number

CAS number

Producttype

RMS

1,2-benzisothiazol-3(2H)-one

220-120-9

2634-33-5

2

ES

2,2′-dithiobis[N-methylbenzamide]

219-768-5

2527-58-4

6

PL

2,2′-dithiobis[N-methylbenzamide]

219-768-5

2527-58-4

13

PL

2-Butanone, peroxide

215-661-2

1338-23-4

1

HU

2-Butanone, peroxide

215-661-2

1338-23-4

2

HU

2-Butanone, peroxide

215-661-2

1338-23-4

3

HU

2-Butanone, peroxide

215-661-2

1338-23-4

6

HU

2-chloroacetamide

201-174-2

79-07-2

3

EE

2-chloroacetamide

201-174-2

79-07-2

6

EE

2-chloroacetamide

201-174-2

79-07-2

13

EE

Dodecylguanidine monohydrochloride

237-030-0

13590-97-1

6

ES

Ethylene oxide

200-849-9

75-21-8

2

NO

Glyoxal

203-474-9

107-22-2

2

FR

Glyoxal

203-474-9

107-22-2

3

FR

Glyoxal

203-474-9

107-22-2

4

FR

Hexa-2,4-dienoic acid/Sorbic acid

203-768-7

110-44-1

6

DE

Mixture of cis- and trans-p-menthane-3,8 diol/Citriodiol

255-953-7

42822-86-6

1

UK

Mixture of cis- and trans-p-menthane-3,8 diol/Citriodiol

255-953-7

42822-86-6

2

UK

Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride)

Polymer

374572-91-5

1

FR

Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride)

Polymer

374572-91-5

5

FR

Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride)

Polymer

374572-91-5

6

FR

Oligo(2-(2-ethoxy)ethoxyethylguanidinium chloride)

Polymer

374572-91-5

13

FR

Poly(hexamethylendiamine guanidinium chloride)

Polymer

57028-96-3

1

FR

Poly(hexamethylendiamine guanidinium chloride)

Polymer

57028-96-3

5

FR

Poly(hexamethylendiamine guanidinium chloride)

Polymer

57028-96-3

6

FR

Poly(hexamethylendiamine guanidinium chloride)

Polymer

57028-96-3

13

FR

Polyvinylpyrrolidone iodine

Polymer

25655-41-8

1

SE

Potassium (E,E)-hexa-2,4-dienoate

246-376-1

24634-61-5

6

DE

Pyridine-2-thiol 1-oxide, sodium salt

223-296-5

3811-73-2

2

SE

Pyridine-2-thiol 1-oxide, sodium salt

223-296-5

3811-73-2

3

SE

Salicylic acid

200-712-3

69-72-7

1

LT

Salicylic acid

200-712-3

69-72-7

2

LT

Salicylic acid

200-712-3

69-72-7

3

LT

Salicylic acid

200-712-3

69-72-7

4

LT

Silicon dioxide — amorphous

231-545-4

7631-86-9

3

FR

Silver chloride

232-033-3

7783-90-6

3

SE

Silver chloride

232-033-3

7783-90-6

4

SE

Silver chloride

232-033-3

7783-90-6

5

SE

Silver chloride

232-033-3

7783-90-6

13

SE

Sulphur dioxide

231-195-2

7446-09-5

1

DE

Sulphur dioxide

231-195-2

7446-09-5

2

DE

Sulphur dioxide

231-195-2

7446-09-5

4

DE

Sulphur dioxide

231-195-2

7446-09-5

5

DE

Sulphur dioxide

231-195-2

7446-09-5

6

DE

Sulphur dioxide

231-195-2

7446-09-5

13

DE

Thiabendazole

205-725-8

148-79-8

2

ES

Thiabendazole

205-725-8

148-79-8

13

ES

Triclosan

222-182-2

3380-34-5

3

DK

Polymer of formaldehyde and acrolein

Polymer

26781-23-7

3

HU

---

| 4.11.2008 | EN | Official Journal of the European Union | L 295/53 |
| --- | --- | --- | --- |

4.11.2008

EN

Official Journal of the European Union

L 295/53

---

COMMISSION DECISION

of 3 November 2008

concerning the non-inclusion of bromuconazole in Annex I to Council Directive 91/414/EEC and the withdrawal of authorisations for plant protection products containing that substance

(notified under document number C(2008) 6290)

(Text with EEA relevance)

(2008/832/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the market (1), and in particular the fourth subparagraph of Article 8(2) thereof,

Whereas:

| (1) | Article 8(2) of Directive 91/414/EEC provides that a Member State may, during a period of 12 years following the notification of that Directive, authorise the placing on the market of plant protection products containing active substances not listed in Annex I to that Directive that are already on the market two years after the date of notification, while those substances are gradually being examined within the framework of a programme of work. |
| --- | --- |

(1)

Article 8(2) of Directive 91/414/EEC provides that a Member State may, during a period of 12 years following the notification of that Directive, authorise the placing on the market of plant protection products containing active substances not listed in Annex I to that Directive that are already on the market two years after the date of notification, while those substances are gradually being examined within the framework of a programme of work.

| (2) | Commission Regulations (EC) No 451/2000 (2) and (EC) No 1490/2002 (3) lay down the detailed rules for the implementation of the third stage of the programme of work referred to in Article 8(2) of Directive 91/414/EEC and establish a list of active substances to be assessed with a view to their possible inclusion in Annex I to Directive 91/414/EEC. That list includes bromuconazole. |
| --- | --- |

(2)

Commission Regulations (EC) No 451/2000 (2) and (EC) No 1490/2002 (3) lay down the detailed rules for the implementation of the third stage of the programme of work referred to in Article 8(2) of Directive 91/414/EEC and establish a list of active substances to be assessed with a view to their possible inclusion in Annex I to Directive 91/414/EEC. That list includes bromuconazole.

| (3) | For bromuconazole the effects on human health and the environment have been assessed in accordance with the provisions laid down in Regulations (EC) No 451/2000 and (EC) No 1490/2002 for a range of uses proposed by the notifier. Moreover, those Regulations designate the rapporteur Member States which have to submit the relevant assessment reports and recommendations to the European Food Safety Authority (EFSA) in accordance with Article 10(1) of Regulation (EC) No 1490/2002. For bromuconazole the rapporteur Member State was Belgium and all relevant information was submitted on 14 November 2005. |
| --- | --- |

(3)

For bromuconazole the effects on human health and the environment have been assessed in accordance with the provisions laid down in Regulations (EC) No 451/2000 and (EC) No 1490/2002 for a range of uses proposed by the notifier. Moreover, those Regulations designate the rapporteur Member States which have to submit the relevant assessment reports and recommendations to the European Food Safety Authority (EFSA) in accordance with Article 10(1) of Regulation (EC) No 1490/2002. For bromuconazole the rapporteur Member State was Belgium and all relevant information was submitted on 14 November 2005.

| (4) | The assessment report has been peer reviewed by the Member States and the EFSA within its Working Group Evaluation and presented to the Commission on 26 March 2008 in the format of the EFSA conclusion regarding the peer review of the pesticide risk assessment of the active substance bromuconazole (4). This report has been reviewed by the Member States and the Commission within the Standing Committee on the Food Chain and Animal Health and finalised on 11 July 2008 in the format of the Commission review report for bromuconazole. |
| --- | --- |

(4)

The assessment report has been peer reviewed by the Member States and the EFSA within its Working Group Evaluation and presented to the Commission on 26 March 2008 in the format of the EFSA conclusion regarding the peer review of the pesticide risk assessment of the active substance bromuconazole (4). This report has been reviewed by the Member States and the Commission within the Standing Committee on the Food Chain and Animal Health and finalised on 11 July 2008 in the format of the Commission review report for bromuconazole.

| (5) | During the evaluation of this active substance, a number of concerns have been identified. In particular, based on the available information, it was not possible to assess the potential contamination of surface water and groundwater. Moreover, with regard to ecotoxicology, there are concerns due to the high risk to aquatic organisms. Consequently, it was not possible to conclude on the basis of the information available that bromuconazole met the criteria for inclusion in Annex I to Directive 91/414/EEC. |
| --- | --- |

(5)

During the evaluation of this active substance, a number of concerns have been identified. In particular, based on the available information, it was not possible to assess the potential contamination of surface water and groundwater. Moreover, with regard to ecotoxicology, there are concerns due to the high risk to aquatic organisms. Consequently, it was not possible to conclude on the basis of the information available that bromuconazole met the criteria for inclusion in Annex I to Directive 91/414/EEC.

| (6) | The Commission invited the notifier to submit its comments on the results of the peer review and on its intention or not to further support the substance. The notifier submitted its comments which have been carefully examined. However, despite the arguments put forward by the notifier, the concerns identified could not be eliminated, and assessments made on the basis of the information submitted and evaluated during the EFSA expert meetings have not demonstrated that it may be expected that, under the proposed conditions of use, plant protection products containing bromuconazole satisfy in general the requirements laid down in Article 5(1)(a) and (b) of Directive 91/414/EEC. |
| --- | --- |

(6)

The Commission invited the notifier to submit its comments on the results of the peer review and on its intention or not to further support the substance. The notifier submitted its comments which have been carefully examined. However, despite the arguments put forward by the notifier, the concerns identified could not be eliminated, and assessments made on the basis of the information submitted and evaluated during the EFSA expert meetings have not demonstrated that it may be expected that, under the proposed conditions of use, plant protection products containing bromuconazole satisfy in general the requirements laid down in Article 5(1)(a) and (b) of Directive 91/414/EEC.

| (7) | Bromuconazole should therefore not be included in Annex I to Directive 91/414/EEC. |
| --- | --- |

(7)

Bromuconazole should therefore not be included in Annex I to Directive 91/414/EEC.

| (8) | Measures should be taken to ensure that authorisations granted for plant protection products containing bromuconazole are withdrawn within a fixed period of time and are not renewed and that no new authorisations for such products are granted. |
| --- | --- |

(8)

Measures should be taken to ensure that authorisations granted for plant protection products containing bromuconazole are withdrawn within a fixed period of time and are not renewed and that no new authorisations for such products are granted.

| (9) | Any period of grace granted by a Member State for the disposal, storage, placing on the market and use of existing stocks of plant protection products containing bromuconazole should be limited to twelve months in order to allow existing stocks to be used in one further growing season, which ensures that plant protection products containing bromuconazole remain available to farmers for 18 months from the adoption of this Decision. |
| --- | --- |

(9)

Any period of grace granted by a Member State for the disposal, storage, placing on the market and use of existing stocks of plant protection products containing bromuconazole should be limited to twelve months in order to allow existing stocks to be used in one further growing season, which ensures that plant protection products containing bromuconazole remain available to farmers for 18 months from the adoption of this Decision.

| (10) | This Decision does not prejudice the submission of an application for bromuconazole according to the provisions of Article 6(2) of Directive 91/414/EEC, the detailed implementation rules of which have been laid down in Commission Regulation (EC) No 33/2008 (5), in view of a possible inclusion in its Annex I. |
| --- | --- |

(10)

This Decision does not prejudice the submission of an application for bromuconazole according to the provisions of Article 6(2) of Directive 91/414/EEC, the detailed implementation rules of which have been laid down in Commission Regulation (EC) No 33/2008 (5), in view of a possible inclusion in its Annex I.

| (11) | The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health, |
| --- | --- |

(11)

The measures provided for in this Decision are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health,

HAS ADOPTED THIS DECISION:

Article 1

Bromuconazole shall not be included as active substance in Annex I to Directive 91/414/EEC.

Article 2

Member States shall ensure that:

| (a) | authorisations for plant protection products containing bromuconazole are withdrawn by 3 May 2009; |
| --- | --- |

(a)

authorisations for plant protection products containing bromuconazole are withdrawn by 3 May 2009;

| (b) | no authorisations for plant protection products containing bromuconazole are granted or renewed from the date of publication of this Decision. |
| --- | --- |

(b)

no authorisations for plant protection products containing bromuconazole are granted or renewed from the date of publication of this Decision.

Article 3

Any period of grace granted by Member States in accordance with the provisions of Article 4(6) of Directive 91/414/EEC, shall be as short as possible and shall expire on 3 May 2010 at the latest.

Article 4

This Decision is addressed to the Member States.

Done at Brussels, 3 November 2008.

For the Commission

Androulla VASSILIOU

Member of the Commission

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(1)  OJ L 230, 19.8.1991, p. 1.

1

(2)  OJ L 55, 29.2.2000, p. 25.

2

(3)  OJ L 224, 21.8.2002, p. 23.

3

(4)  EFSA Scientific Report (2008) 136, Conclusion regarding the peer review of the pesticide risk assessment of the active substance bromuconazole, finalised 26 March 2008.

4

(5)  OJ L 15, 18.1.2008, p. 5.

5

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4.11.2008

| 4.11.2008 | EN | Official Journal of the European Union | L 295/s3 |
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EN

Official Journal of the European Union

L 295/s3

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NOTE TO THE READER

The institutions have decided no longer to quote in their texts the last amendment to cited acts.

Unless otherwise indicated, references to acts in the texts published here are to the version of those acts currently in force.

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