1998R2808 — EN — 16.05.2003 — 003.001 — 1
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►B COMMISSIONREGULATION(EC)No2808/98
of22December 1998
layingdowndetailedrulesfortheapplicationoftheagrimonetarysystemfortheeuroinagricul-
ture
(OJ L 349, 24.12.1998, p. 36)
Amended by:
Official Journal
No page date
►M1CommissionRegulation(EC) No 1410/1999 of 29 Jun e 1999 L 164 53 30.6.1999
►M2CommissionRegulation(EC) No 2452/2000 of 7 November 2000 L 282 9 8.11.2000
►M3CommissionRegulation(EC) No 816/2003 of 12 May 2003 L 116 12 13.5.2003
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COMMISSIONREGULATION(EC)No2808/98
of22December 1998
laying down detailed rules for the application of the agrimonetary
systemfortheeuroinagriculture
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 2799/98 of 15 December
1998 establishing the agrimonetary arrangements for the euro (1), and
inparticular Article 9 thereof,
Whereas Regulation (EC) No 2799/98 establishes new agrimonetary
arrangements following the introduction of the euro; whereas Commis-
sionRegulation(EEC) No 1068/93 of 30 April 1993 ondetailed rulesfor determining and applying the agricultural conversion rates (
2), as
last amended by Regulation (EC) No 961/98 (3), and Commission
Regulation(EC) No 805/97 of 2 May 1997 layin g downdetailed rulesfor compensation relating to appreciable revaluations (
4), as amended
by Regulation(EC) No 1425/98 (5), must be radically amended to bring
them into line with Regulation (EC) No 2799/98; whereas, in order tofacilitate implementation of the new agrimonetary arrangements, theRegulations in question should be repealed and the relevant provisionsshould be included in a new Regulation;
Whereas it is necessary to establish the operative events for the
exchange rates applicable, without prejudice to any specific definitions
or exemptions provided for in the rules for the sectors concerned on thebasis of the criteria mentioned in Article 3 of Regulation (EC) No2799/98;
Whereas for all the prices or amounts involved in trading transactions
the acceptance of the customs declaration represents a suitable opera-tive event; whereas in the case of prices and amounts linked to those
prices the commercial objective of buying or selling operations is
attained when the product is paid for or taken over and, in the case ofwithdrawal operations by producer groups, on the first day of themonth concerned; whereas, in the case of aid paid for a given quantityof product and in particular where the aid is granted subject to aspecific use of that product such as its processing, preservation, packa-
ging or consumption, the commercial objective is attained when the
product is taken over by the relevant operator and, where applicable,whenthe particular use of that product is guaran teed; whereas, inthecase of private storage aid, products are no longer available on themarket from the first day for which the aid is granted;
Whereas, inthe case of aid gran ted per hectare, the commercial objec-
tive is attained when the product is harvested, usually at the beginning
of the marketing year; whereas the operative event for structural aidshould be established at 1 January;
Whereas, for amounts not linked to the market prices of agricultural
products, the operative event can be established as a date to be deter-mined on the basis of the period during which the operation occurs;whereas it should be stated that the operative event applicable for the
recordin g of prices or offers onthe market is to occur onthe day on
which the prices or offers themselves are applicable; whereas, inthecase of advances and securities, the exchange rate must approximateto that applicable to the prices or amounts in question where this isknown at the time the advances or securities are paid;
Whereas Regulation(EC) No 2799/98 allows Member States to gran t
compensation to farmers who have suffered the effects of an appreci-1998R2808 — EN — 16.05.2003 — 003.001 — 2
(1) See page 1 of this Official Journal.
(2) OJ L 108, 1. 5. 1993, p. 106.
(3) OJ L 135, 8. 5. 1998, p. 5.
(4) OJ L 115, 3. 5. 1997, p. 13.
(5) OJ L 190, 4. 7. 1998, p. 16.
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able revaluationor anactual reductionindirect aid; whereas that Regu-
lation lays down certain conditions for granting compensation and itsphasing over time, and indicates the method for determining the
maximum amount that may be allocated by a Member State; whereas
the compensation concerned is partly financed by the Communitybudget;
Whereas it is necessary to define the operative event that determines
the exchange rate used to convert amounts expressed in euros into the
national currencies of the Member States; whereas, to facilitate finan-cial management, the payment of more than one annual instalment ofcompensation in the same budget year should be avoided; whereas, totake account of the European Community's international commitments,and in the interests of administrative transparency, the procedures to be
followed by Member States wishing to grant compensation should be
laid down;
Whereas, inorder to fulfil its purpose, the compen sationmust be
granted directly to the beneficiaries, in principle farmers, within a fixed
period and for amounts not exceeding the income losses concerned;
whereas, however, to avoid administrative complications arising fromthe grant of small amounts to beneficiaries, simplified procedures maybe used incertaincases;
Whereas the measures provided for inthis Regulationare inaccor-
dance with the opinion of the relevant management committees,
HAS ADOPTED THIS REGULATION:
TITLE I
Exchangerateandoperative events
Article 1
The exchange rate to be used shall be the rate most recently fixed by
the European Central Bank (ECB) prior to the operative event.
Article 2
The operative event for the exchange rate for prices and amounts fixed
in euros in Community legislation and to be applied in trade with thirdcountries shall be the acceptance of the customs declaration.
Article 3
1. For prices or, without prejudice to Article l and paragraph 2 of
this Article, amounts linked to those prices,
— fixed inecus inCommun ity legislation ,
or
— fixed in euros by a tendering procedure,
the operative event for the exchange rate shall be:
— inthe case of purchases or sales, the takin g over by the purchaser
of the batch of products concerned or the transfer of the firstpayment, whichever is earlier,
— inthe case of withdrawals of products ►
M1inthe fruit an d vege-
table sector ◄, the first day of the month in which the withdrawal
takes place.
For the purposes of this Regulation, for purchases by intervention agen-
cies, taking over shall be the commencement of physical delivery of
the batch concerned or, where there is no physical movement, provi-
sional acceptance of the seller's tender.
2. For aid granted by quantity of marketed product or by quantity of
product to be used ina specific way, the operative even t for the
exchange rate shall be the first operation which:
— guarantees the appropriate use of the products in question and
entails grant of the aid,1998R2808 — EN — 16.05.2003 — 003.001 — 3
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and
— occurs onor after the date of takin g over of the products by the
operator concerned and, where appropriate, before the date of
specific use.
3. For private storage aid the operative event for the exchange rate
shall be the first day inrespect of which the aid relatin g to a particular
contract is granted.
Article 4
1. Notwithstanding paragraph 2, in the case of aid per hectare the
operative event for the exchange rate shall be the commencement ofthe marketing year in respect of which the aid is granted.
2. In the case of amounts of a structural or environmental character,
in particular those granted under environmental protection, early retire-ment or afforestation schemes, the operative event for the exchangerate shall be 1 January of the year during which the decision to grantthe aid is taken.
However, in cases where, under Community rules, payment of the
amounts referred to in the first subparagraph is staggered over severalyears, the annual instalments shall be converted using the exchange
rate applicable on l January of the year for which the instalment in
questionis paid.
3. For the purposes of applying this Article, the exchange rate to be
used shall be the average of the exchange rates applicable during themonth preceeding the date of the operative event, calculated pro rata
temporis.►
M3The average of the exchange rates shall be fixed by
the Commission during the month following the date of the operativeevent.◄
Article 5
1. For costs of transport, processing or, without prejudice to Article
3(3), storage and for amounts allocated to studies or promotionalmeasures, determined under a tendering procedure, the operative eventfor the exchange rate shall be the final day for the submission oftenders.
2. For the recording of prices, amounts or tenders on the market, the
operative event for the exchange rate shall be the day in respect ofwhich the price, amount or tender is recorded.
3. For advances:
(a) the operative event for the exchange rate shall be:
— the event applicable to the price or amount to which the
advance relates, where this event has occurred by the time theadvance is paid,
or
— inother cases, the date of fixin g ineuros of the advan ce or,
failing that, the date of payment of the advance;
(b) the operative event for the exchange rate shall be applied without
prejudice to application to the entire price or amount in questionof the operative event determined for that price or amount.
4. The operative event for the exchange rate for securities shall be,
for each separate operation:
— for advances, that defined for the amount of the advance, where this
event has occurred by the time the security is paid,
— for the submission of tenders, the day on which the tender is
submitted,
— for the execution of tenders, the closing date of the invitation to
tender,
— inother cases, the date onwhich the security takes effect.1998R2808 — EN — 16.05.2003 — 003.001 — 4
▼M1
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▼B
TITLE II
Compensationforappreciablerevaluations
Article 6
1. This Title lays down the detailed rules for granting the compensa-
tory aid referred to inArticle 4 of Regulation(EC) No 2799/98.
2. The maximum amounts of compensatory aid shall be determined
inaccordan ce with Article 4(2) of Regulation(EC) No 2799/98.
Article 7
1. Without prejudice to Article 9:
(a) Member States may grant compensatory aid only by means of
payments to beneficiaries and without conditions relating to its use;
and
(b) compensatory aid may be granted only to agricultural holdings, the
definition of an agricultural holding being established by theMember State concerned on the basis of objective criteria.
2. The maximum level of the aid shall be converted into national
currency using the average exchange rate for the year in which the
appreciable revaluationoccurred.
Article 8
1. The amount of compensatory aid granted to the beneficiary shall
be linked to the size of the holding during a period to be stipulated ineach case, according to the criteria laid down in the second subpara-
graph of Article 4(1) of Regulation(EC) No 2799/98.
In determining the size of the holding, account shall be taken only of
the types of production referred to in point (1)(a) of the Annex to thesaid Regulation.
Member States may set minimum holding sizes only to the extent
necessary to facilitate administration of the compensatory aid.
2. Inall cases, the compen satory aid must be compatible with the
international commitments of the Community.
Article 9
1. Where the amount of compensatory aid which is to be granted for
any annual instalment divided by the estimated number of agriculturalholdings concerned is below EUR 400, that amount may be granted for
measures concerning the agricultural sector:
— which are collective and of general interest,
or
— for which Community provisions allow Member States to grant
national aid, provided the intensities under the State aid policy are
respected.
2. To be eligible for Community finance the measures shall be addi-
tional, either by their nature or in terms of aid intensity, to those whichthe Member State would have applied in the absence of the aid, andshall not benefit from other Community financing.
TITLE III
Compensation for reductions in the exchange rates applied to
directaid
Article 10
1. This Title lays down the detailed rules for granting the compensa-
tory aid referred to inArticle 5 of Regulation(EC) No 2799/98.1998R2808 — EN — 16.05.2003 — 003.001 — 5
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2. The maximum amounts of compensatory aid shall be determined
inaccordan ce with Article 5(2) of Regulation(EC) No 2799/98.
If, for the amounts mentioned in paragraph 3 of the present Article, an
amount fixed in national currency is lower than the ceiling, a reductionof the ceiling which does not affect the fixed amount is not to beconsidered as a reduction.
3. For the purposes of Article 5 of Regulation(EC) No 2799/98,
amounts of a structural or environmental character that are not:
— flat-rate aid fixed per hectare or per livestock unit,
or
— a compensatory premium per ewe or she-goat,
shall be those financed from the EAGGF Guidance Section or the
Financial Instrument for Fisheries Guidance (FIFG), those referred toinCoun cil Regulation(EEC) No 1992/93(
1) or those fixed inCoun cil
Regulations (EEC) No 2078/92(2), (EEC) No 2079/92 (3) or (EEC) No
2080/92 (4)►M2or those referred to inChapters II, IV, V, VI or VIII
of Council Regulation (EC) No 1257/1999 (5).◄
4. The compensatory aid shall be granted for the 12-month period
preceding the respective application of the reduced exchange rate.
5. Member States may grant compensatory aid only by means of
additional payments to beneficiaries of aid as referred to in Article 5of Regulation (EC) No 2799/98. They may not impose conditions asto the use of such payments.
6. The maximum level of aid shall be converted using the exchange
rate which gave rise to that amount.
TITLE IV
General provisions
Article 11
1. The application for authorisation to grant compensatory aid as
referred to inTitles II an d III shall be submitted to the Commissionby the Member State concerned before the end of the third month
following that in which the appreciable revaluation or the reduction
concerned occurred. The application must include sufficient informa-tionfor the Commissionto check the compatibility of the measurewith the rules as provided inparagraph 2.
2. Inaccordan ce with the procedure laid downinArticle 93(3) of
the Treaty and with this Regulation, the Commission shall check thecompatibility of the aid applications with the rules in force concerningcompensation for appreciable revaluations and for reductions.
3. The total amount of compensatory aid granted must be propor-
tionate to the loss affecting each sector in the Member Stateconcerned. How the aid is distributed within a given sector must notalter the conditions of competition to an extent detrimental to thecommonin terest.
4. The Commissionmay take up to two mon ths from the date of
receipt of the full applicationreferred to inparagraph l to approve thecompensatory aid. If the Commission has not delivered an opinionwithin that period, the measures planned may be implemented provided
that the Member State gives the Commissionprior n otificationof its
intention.
5. Any Member State intending to grant compensatory aid shall
adopt the necessary national measures within three months of the date1998R2808 — EN — 16.05.2003 — 003.001 — 6
(1) OJ L 182, 24. 7. 1993, p. 12.
(2) OJ L 215, 30. 7. 1992, p. 85.
(3) OJ L 215, 30. 7. 1992, p. 91.
(4) OJ L 215, 30. 7. 1992, p. 96.
(5) OJ L 160, 26.6.1999, p. 80.
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of the Commissiondecisionor the prior n otificationby the Member
State provided for inparagraph 4.
Article 12
1. Payment to the same beneficiary of an amount of the same
compensatory aid instalment may not be made during the same budgetyear as payment of the corresponding amount of another instalment.
2. Payment of the amount of the first instalment of compensatory
aid as referred to in:
— Title II shall be made within one year following the date of the
appreciable revaluation which gave entitlement to the aid
concerned,
— Title III shall be made within a period beginning on the date of the
operative event and ending:
— 18 months later in the case of recipients of a cattle premium,
— 12 months later in the case of recipients of amounts of a struc-
tural or environmental character, or
— nine months later in the case of recipients of other direct aid as
referred to inArticle 5(1) of Regulation(EC) No 2799/98.
3. The time limits referred to in Article 11(1) and (5) and in para-
graph 2 of this Article may be amended by the Commission at the
duly justified request of Member States.
4. The Commissionshall have two mon ths inwhich to approve the
measures referred to inArticle 8 of Regulation(EC) No 2799/98 fromthe date of receipt of such measures envisaged by a non-participatingMember State. If the Commissionfails to deliver anopin ionwithin
that time the measures may be implemented provided that the Commis-
sion has been notified in advance by the Member State.
Article 13
Every year the Member State concerned shall submit to the Commis-
sion a report on the implementation of the compensatory aid
measures, giving details of the amounts paid out. The first of these
reports shall be submitted not later than 18 months after the decisionor the notification by the Member State referred to in Article 11(4).
Article 14
Amounts quoted in tenders submitted in response to invitations to
tender organised under an instrument forming part of the common agri-
cultural policy shall, with the exception of amounts the Communitycontribution to which is financed from the EAGGF Guidance Section,be expressed ineuros.
Article 15
1. The percentage of appreciability of an appreciable revaluation and
the reductioninthe exchan ge rate shall be expressed to three decimal
places, the third decimal being rounded off. The average annualexchange rate shall be established to six significant figures, the sixthfigure being rounded off.
2. For the purposes of this Regulation significant figures means:
— all figures, inthe case of a n umber whose absolute value is greater
thanor equal to 1,
or
— all decimal places starting from the first one which is not zero, in
other cases.
The roundings-off referred to in this Article shall be effected by
increasing the figure concerned by one unit in cases where thefollowing figure is greater than or equal to five and by leaving itunchanged in other cases.1998R2808 — EN — 16.05.2003 — 003.001 — 7
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Article 16
Regulations (EEC) No 1068/93 and (EC) No 805/97 are hereby
repealed
Article 17
This Regulation shall enter into force on the day following its publica-
tioninthe Official Journal of the European Communities .
It shall apply from 1 January 1999.
This Regulation shall be binding in its entirety and directly applicable
inall Member States.1998R2808 — EN — 16.05.2003 — 003.001 — 8