2001R1454 — EN — 01.07.2002 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No1454/2001
of28June2001
introducing specific measures for certain agricultural products for the Canary Islands and
repealingRegulation(EEC)No1601/92(Poseican)
(OJ L 198, 21.7.2001, p. 45)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 1195/2002 of 3 July 2002 L 174 11 4.7.2002
▼B
COUNCILREGULATION(EC)No1454/2001
of28June2001
introducing specific measures for certain agricultural products for
the Canary Islands and repealing Regulation (EEC) No 1601/92
(Poseican)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Articles 36, 37 and 299(2) thereof,
Having regard to the proposal from the Commission,Having regard to the opinion of the European Parliament(
1),
Whereas:
(1)Under Regulation (EEC) No 1911/91(2), the Canary Islands are
part of the Community's customs territory and all the common
policies apply there without prejudice to any special measuresadopted to take account of their specific constraints and tradi-tional economic and taxation system. Articles 2 and 10 of thatRegulation rule that full application of the common agricultural
policy is subject to the entry into force of specific supply
arrangements. In addition, application of the common agricul-tural policy is to be accompanied by specific measures relatingto agricultural production in the islands.
(2)By Decision 91/314/EEC(3) the Council adopted a programme
of options specific to the remote and insular nature of the Canary
Islands (Poseican) in accordance withth e Community's policy ofassistance for the outermost regions. The purpose of theprogramme is to facilitate the economic and social developmentof the region and enable it to benefit from the advantages of the
single market of which it is an integral part despite the objective
factors leaving it geographically and economically isolated. Theprogramme calls for the CAP to be applied in that region andprovides for special measures to be adopted, in particular toimprove the conditions in which agricultural products areproduced and marketed there and to mitigate the effects of its
exceptional geographical situation and constraints as since recog-
nised in Article 299(2) of the Treaty.
(3)The particular geographical situation of the Canary Islandsimposes additional transport costs in supplying essential products
for human consumption, for processing and as agricultural
inputs. In addition, objective factors arising as a result of insu-larity and outermost location impose further constraints oneconomic operators and producers in the Canary Islands thatseverely handicap their activities. These handicaps can be alle-viated by lowering the price of these essential products. It is
therefore appropriate to introduce specific supply arrangements
to guarantee supply to these islands and compensate for the addi-tional costs arising from their remoteness, insularity andoutermost location.
(4)To that end, notwithstanding Article 23 of the Treaty, imports ofthe products concerned from third countries should be exemptfrom the applicable import duties. To take account of their originand the customs treatment accorded to them under the Commu-nity provisions, products which have entered the Community'scustoms territory under inward processing or customs ware-2001R1454 — EN — 01.07.2002 — 001.001 — 2
(1) Opinion delivered on 14 June 2001 (not yet published in the Official
Journal).
(2) Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application
of the provisions of Community law to the Canary Islands (OJ L 171,
29.6.1991, p. 1). Regulation as last amended by Regulation (EC) No 1105/
2001 (OJ L 151, 7.6.2001, p. 1).
(3) OJ L 171, 29.6.1991, p. 5.
▼B
housing arrangements should be considered as direct imports, for
the purpose of granting the benefits of the specific supplyarrangements.
(5)In order to achieve the goal of lowering prices in the CanaryIslands and mitigating the additional costs of their remoteness,insularity and outermost location while maintaining the competi-
tiveness of Community products, aid should be granted for the
supply to these islands of products of Community origin. Suchaid should take account of the additional cost of transport to theCanary Islands and the prices applied to exports to third coun-tries and, in the case of agricultural inputs and productsintended for processing, the additional costs of insularity and
outermost location.
(6)Since the quantities covered by the specific supply arrangements
are limited to the supply requirements of the Canary Islands,those arrangements do not impair the proper functioning of the
internal market. In addition, the economic advantages of the
specific supply arrangements should not provoke deflections oftrade in the products concerned. Re-dispatching or re-exportationof those products from the Canary Islands should therefore beprohibited. However, it is possible to re-export products in their
unprocessed state or products resulting from local packaging of
suchproducts under certain conditions, so as to permit regionaltrade. In the case of processing, this prohibition should not applyto traditional exports and consignments.
(7)The economic advantages of the specific supply arrangementsshould be passed on so as to reduce production costs and bringdown prices throughout the production and distribution chain tothe end user, culminating in lower consumer prices. They shouldtherefore be granted only on condition that they are actually
passed on, and monitoring must be carried out to that end.
(8)Traditional livestock farming activities should be supported in
order to help meet local consumption needs. To that end, deroga-tions are needed from some of the provisions of the common
market organisations which restrict production, to take account
of the development and particular conditions of local production,which are quite different from those in the rest of the Commu-nity. This objective may also be pursued indirectly by financinggenetic improvement programmes involving the purchase ofpure-bred breeding animals, by purchasing commercial breeds
more suited to local conditions and by supplementing the suckler
cow premium and the slaughter premium. The estimate of localconsumption requirements is drawn up in a periodic balance. Toensure that Community support can be mobilised effectively, acomprehensive programme to support local activities in the live-
stock and milk products sectors should enable the sectors
concerned to define and implement strategies tailored to thelocal context for economic development, spatial organisation ofproduction and increasing the professionalism of producers.Pending the development of local livestock farming, thisprogramme may include temporary provision for the supply of
male animals for fattening, the number of such animals to be
supplied eachyear being limited so as not to compromise th eabovementioned objective. It may also provide for measures tosupport milk production in the sheep and goat sector, to structurethat sector, alleviate difficulties in the processing and marketing
of local farm cheeses made from ewe's and goat's milk, rectify
the fragmentation of supply, improve the quality of milk andassist diversification.
(9)The sheep and goat sector receives support through a supplemen-
tary premium granted to producers in the Canary Islands for
heavy lambs. This measure has made it possible to develop localproduction, which is of social, economic and environmentalimportance because this activity is concentrated in the mostdisadvantaged areas of the islands where no other alternativesexist. This measure should be continued.2001R1454 — EN — 01.07.2002 — 001.001 — 3
▼B
(10)Aid for human consumption of fresh cow's milk products is paid
to dairies so that the milk produced can be disposed of in the
normal fashion on the local market. Extending the aid to coverother products has enabled the sector to adapt to changingconsumption habits. The level of self-sufficiency is still verylow, so the measure should be continued.
(11)The area aid scheme for fruit and edible vegetables, roots andtubers, flowers and live plants has proved unsuitable, especially
because of the slowness and complexity of procedures and the
way the proposed aid was structured. Lessons should be learnedfrom the encouraging results of the Poseidom reform in thatsector, and marketing and processing aid should be envisagedwith a view to supplying the market in the Canary Islands.
Suchaid must h elp local produce compete withproducts from
elsewhere on high-growth markets, better satisfy the require-ments of consumers and new distribution channels, improve theproductivity of farms and upgrade the quality of products. Themarketing of these products, both fresh and processed, shouldbe continued and they should be promoted on the Community
market. An economic study will help to refine the structure of
the sector.
(12)Potato production is essential in the Canary Islands, for botheconomic and social and environmental reasons. The cultivatedareas are situated in areas of average altitude where the difficultterrain and small size of holdings (terrace cultivation), together
with the high prices of inputs, make for very high production
costs. Specific aid is granted for growing potatoes for humanconsumption in order to support domestic production to satisfythe islands' consumption patterns. Abolition of the temporarymeasure restricting the deliveries of potatoes for human
consumption during sensitive periods for the marketing of local
production has left the sector very vulnerable. It is thereforeplanned to grant aid for local marketing of this potato produc-tion.
(13)It is economically and environmentally imperative that vines, themost widespread crop, continue to be cultivated, because wine-growing is practised in dry areas and on land that is particularly
vulnerable to erosion. In order to help support domestic produc-
tion, a flat-rate area aid is granted for the cultivation of vines forproducing quality wines produced in specified regions. Likewise,neither abandonment premiums nor market mechanisms apply,with the exception of crisis distillation which may apply if the
market is exceptionally disrupted as a result of quality problems.
(14)Tobacco growing is of historical importance on the islands.
Economically speaking, tobacco preparation continues to be oneof the chief industrial activities in the region. In social terms,tobacco cultivation is very labour intensive and carried out bysmall farms. Since the crop is not sufficiently profitable it is in
danger of dying out. Tobacco is currently cultivated only on a
small area on the island of La Palma, where it is used for theartisanal manufacture of cigars. Spain should therefore beauthorised to continue to grant aid in addition to the Communityaid so that this traditional crop can be maintained with a view tosupporting the artisanal activity associated with it. In addition, to
maintain the manufacture of tobacco products, imports into the
Canary Islands of raw and semi-manufactured tobacco shouldcontinue to be exempt from customs duty, up to an annual limitof 20000 tonnes of stripped raw tobacco equivalent.
(15)Traditional honey in the Canary Islands is produced by a localbreed of bees well suited to local conditions but not very produc-
tive. This breed is in danger of dying out, to be replaced by
breeds which will be more profitable to beekeepers. The aidbeing paid to associations of beekeepers producing traditionalhoney of specific quality should therefore be continued, and thenumber of hives of local bees eligible for the aid should beadapted.2001R1454 — EN — 01.07.2002 — 001.001 — 4
▼B
(16)Agricultural producers in the Canary Islands should be encour-
aged to supply quality products and the marketing of these
should be assisted; in this respect, using the Community'sgraphic symbol might help achieve this purpose.
(17)Regulation (EC) No 1257/1999(1) lays down rural development
measures that may be granted Community support and sets outthe conditions for obtaining such support.
(18)This Regulation seeks to remedy the handicaps due to the remoteand insular nature of that region.
(19)The structures of certain agricultural holdings or processing andmarketing enterprises located in these islands show serious short-
comings and are beset withspecific difficulties. Provision sh ould
accordingly be made for derogations for certain types of invest-ments from the provisions limiting or preventing the grant ofsome structural aid provided for in Regulation (EC) No 1257/1999.
(20)The Community financial contribution for three of the accompa-nying measures referred to in Article 35(1) of Regulation (EC)
No 1257/1999 may amount in the outermost regions to up to
85 % of the total eligible cost. On the other hand, in accordancewith the third indent of the second subparagraph of Article 47(2)of that Regulation, the Community financial contribution foragri-environmental measures, which constitutes the fourth
accompanying measure, shall be limited to 75 % for all areas
covered by Objective 1. In view of the importance attributed toagri-environment within the context of rural development, therate of the Community financial contribution should be harmo-nised for all accompanying measures in the outermost regions.
(21)Pursuant to Article 14 of Regulation (EC) No 1260/1999(2),
eachplan, Community support framework, operational
programme and single programming document is to cover a
period of seven years, and the programming period is to beginon 1 January 2000. In the interests of cohesiveness and to avoiddiscrimination between beneficiaries of the same programme, thederogations provided for in this Regulation should, exception-
ally, be applicable to the whole programming period.
(22)A derogation may be granted from the Commission's consistentpolicy of not authorising State operating aid for the production,
processing and marketing of agricultural products covered byAnnex I to the Treaty in order to mitigate the specific constraintson farming in the Canary Islands as a result of their remoteness,insularity, outermost location, small area, mountainous terrain
and climate and their economic dependency on a small number
of products.
(23)The measures necessary for the implementation of this Regula-tion should be adopted in accordance with Council Decision1999/468/EC of 28 June 1999 laying down the procedures forthe exercise of implementing powers conferred on the Commis-sion(
3),
HAS ADOPTED THIS REGULATION:
Article 1
This Regulation lays down specific measures to remedy the difficulties
caused by the remote and insular nature and the outermost location ofthe Canary Islands in respect of certain agricultural products.2001R1454 — EN — 01.07.2002 — 001.001 — 5
(1) Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance and Guarantee Fund
(EAGGF) (OJ L 160, 26.6.1999, p. 80).
(2) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down
general provisions on the Structural Funds (OJ L 161, 26.6.1999, p. 1).
(3) OJ L 184, 17.7.1999, p. 23.
▼B
TITLE I
SPECIFICSUPPLYARRANGEMENTS
Article 2
1. Specific supply arrangements are hereby introduced for the agri-
cultural products listed in Annex I to this Regulation, which areessential for human consumption, for processing and as agricultural
inputs in the Canary Islands.
2. A forecast supply balance shall be drawn up stating the quantity
of the agricultural products listed in Annex I needed to meet supplyrequirements eachyear. A separate forecast balance may be drawn upfor the requirements of the industries processing and packaging
products intended for the local market and for traditional export or
consignment to the rest of the Community.
Article 3
1. No duties shall apply to direct imports into the Canary Islands of
products covered by the specific supply arrangements if they originate
in non-member countries, within the limit of the quantities determinedin the supply balance.
Products which have entered the Community's customs territory under
inward processing or customs warehousing arrangements shall be
considered as direct imports for the purposes of this Title.
2. To ensure coverage of the requirements established in accordance
withArticle 2 in terms of quantity, price and quality, wh ile taking careto maintain the Community's share in supplies, aid shall be granted tosupply the Canary Islands with Community products held in public
intervention storage or available on the Community market.
Such aid shall be fixed to take account of the additional cost of trans-
port to the Canary Islands and the prices applied to exports to non-member countries and, in the case of agricultural inputs and products
intended for processing, the additional costs of insularity and outermost
location.
3. In implementing the specific supply arrangements, account shall
be taken, in particular, of the following:
— the specific requirements of the Canary Islands and, in the case of
products intended for processing and agricultural inputs, thespecific quality requirements,
— trade flows with the rest of the Community,
— the economic aspect of the proposed aid.
4. Entitlement under the specific supply arrangements shall be
subject to the condition that the economic advantage derived eitherfrom exemption from import duties or from aid in the case of supplyfrom the rest of the Community is actually passed on to the end user.
5. Products covered by the specific supply arrangements may not be
re-exported to non-member countries or re-dispatched to the rest of theCommunity.
However, products in the unprocessed state or packaged products
resulting from local packaging of suchproducts may be re-exported toa non-member country in accordance withth e conditions laid down bythe Commission under the procedure referred to in Article 21(2).
Where the products concerned are processed in the Canary Islands, the
aforesaid prohibition shall not apply to traditional exports or shipments
of the processed products to the rest of the Community. No exportrefund shall be granted.
6. Detailed rules for applying this Title shall be adopted in accor-
dance with the procedure referred to in Article 21(2). These shall
include:
— the fixing of aid for supply from the rest of the Community,2001R1454 — EN — 01.07.2002 — 001.001 — 6
▼B
— provisions to ensure that the advantages granted are actually passed
on to the end user,
— introduction if necessary of a system of import or delivery licences.
The Commission shall draw up supply balances in accordance with the
procedure referred to in Article 21(2). It may revise those balances, and
the list of products in Annex I, in accordance with the same procedure,
in the light of changes in the Canary Islands' requirements.
TITLE II
MEASURESTOASSISTLOCALPRODUCTS
CHAPTER I
LIVESTOCKANDMILKPRODUCTS
Article 4
1. In the livestock sector, aid shall be granted for the supply to the
Canary Islands of pure-bred animals, animals of commercial breeds andlivestock products, originating in the Community.
2. The terms for granting aid shall be laid down taking account, in
particular, of the supply requirements of the Canary Islands for startingup production and genetic improvement of livestock and the need for
the breeds best suited to local conditions. The aid shall be paid for
the delivery of goods which fulfil the requirements specified inCommunity rules.
3. The following shall be taken into account when aid is being
fixed:
— the conditions and in particular the costs of supply to the Canary
Islands resulting from their geographical situation,
— the price of products on the Community market and on the world
market,
— whether or not duties are charged on imports from non-member
countries,
— the economic aspect of the proposed aid.
4. Article 3(4) and (5) shall apply to goods qualifying for aid under
paragraph1 of th is Article.
5. The list of products, the level of the aid referred to in paragraph 1
of this Article and the detailed rules for applying this Article shall beadopted in accordance withth e procedure referred to in Article 21(2).
Article 5
1. The aid provided for in paragraph 2 and 3 below shall be granted
to assist traditional activities connected withbeef and veal productionand measures to improve product quality, within the limits of the
consumption needs of the islands as assessed in the context of a peri-
odic supply balance.
The balance shall also take account of breeding animals supplied under
Article 4 and animals covered by the measures provided for in the third
subparagraphof Article 7(1).
2. A supplement to the slaughter premium provided for under
Article 11 of Regulation (EC) No 1254/1999(
1), of EUR 25 per head,
shall be paid to producers for each animal slaughtered.
3. A supplement to the premium for maintaining suckler cows
provided for in Article 6 of Regulation (EC) No 1254/1999 shall be
paid to beef and veal producers. The amount of this supplement shall
be EUR 50 per suckler cow held by the producer on the day on whichthe application is submitted.2001R1454 — EN — 01.07.2002 — 001.001 — 7
(1) Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common
organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21).
▼B
4. The provisions relating to:
(a) the regional ceiling laid down by Article 4 of Regulation (EC) No
1254/1999 as regards the special premium;
(b) the individual ceiling for animals kept on the holding as laid down
in Article 6 of Regulation (EC) No 1254/1999 as regards the basicsuckler cow premium;
(c) the national ceiling laid down under Article 11 of Regulation (EC)
No 1254/1999 as regards the basic slaughter premium;
(d) the stocking density for animals kept on the farm, laid down in
Article 12 of Regulation (EC) No 1254/1999, as regards the specialpremium and the basic suckler cow premium,
shall not apply in the Canary Islands in the case of the special
premium, the basic suckler cow premium, the slaughter premium orthe supplementary premiums referred to in paragraphs 2 and 3 of thisArticle.
5. The basic and supplementary premiums referred to in paragraphs
2 and 3 shall be granted each year for a maximum of 10000 malebovine animals, 5 000 suckler cows and 15 000 slaughtered animals,respectively.
6. Detailed rules for applying this Article shall be adopted in accor-
dance with the procedure referred to in Article 21(2). They shall coverdrawing up the balances referred to in paragraph 1 of this Article andany reviews to take account of changing requirements and:
(a) as regards the special premium for male bovine animals, they shall
provide for:
— the ‘freezing’, within the regional ceiling set in Article 4 of
Regulation (EC) No 1254/1999, of the number of animals for
which the special premium was granted in the Canary Islands
for the year 2000,
— the grant of premiums within the limit of 90 animals per age
group, per calendar year and per holding;
(b) as regards the suckler cow premium, these detailed rules:
— shall include provisions to guarantee, to the extent necessary,
the rights of producers to whom a premium has been granted
under Article 6 of Regulation (EC) No 1254/1999,
— may provide for the establishment of a specific reserve for the
Canary Islands and special conditions for allocating or reallo-
cating rights, taking into account the objectives pursued in the
livestock farming sector; the size of the reserve shall be deter-mined on the basis of the ceiling set in paragraph 5 and thenumber of premiums granted for the year 2000;
(c) as regards the slaughter premium, they shall provide for:
— the ‘freezing’, within the ceiling set in Article 38(1) of Regula-
tion (EC) No 2342/1999(
1), of the number of animals for which
the slaughter premium was granted for 2000.
The detailed implementing rules may include additional conditions
for granting supplementary premiums.
The Commission may review the ceilings fixed in paragraph 5 in
accordance withth e same procedure.2001R1454 — EN — 01.07.2002 — 001.001 — 8
(1) Commission Regulation (EC) No 2342/1999 of 28 October 1999 laying
down detailed rules for the application of Council Regulation (EC) No
1254/1999 on the common organisation of the market in beef and veal as
regards premium schemes (OJ L 281, 4.11.1999, p. 30). Regulation as last
amended by Commission Regulation (EC) No 192/2001 (OJ L 29,31.1.2001, p. 27).
▼B
Article 6
1. A supplementary premium shall be granted, in addition to the ewe
premium payable under Article 5(3) of Regulation (EC) No 2467/98(1),
to producers of light lambs as defined in Article 4(3) of that Regula-tion.
The amount of the supplementary premium shall be equal to the differ-
ence between the amounts of the premiums determined under Article5(2) and (3) of Regulation (EC) No 2467/98 payable to producers of
heavy lambs and producers of light lambs, respectively, plus the differ-
ence between the amounts of the specific aids for rural measuresreferred to in the first and second indents of Article 1(1) of Regulation(EEC) No 1323/90(
2).
2. The supplementary premium determined in accordance with para-
graph 1 shall also be paid to producers of goat meat, without prejudiceto payment of the premium provided for in Article 5(5) of Regulation(EC) No 2467/98.
3. The premiums referred to in paragraphs 1 and 2 of this Article
shall be granted on the same terms as those laid down for the grant ofthe premium to producers of sheepmeat and goat meat under Article 5
of Regulation (EC) No 2467/98.
4. Detailed rules for applying this Article shall be adopted as neces-
sary in accordance withth e procedure referred to in Article 21(2).
Article 7
1. During the period from 2002 to 2006, aid shall be granted to
implement in the Canary Islands a comprehensive programme tosupport the production and marketing of local produce in the livestockand milk products sectors.
This programme may include measures such as incentives to improve
quality and hygiene, the marketing of quality products, sector struc-turing, the rationalisation of production and marketing structuresproviding for grouped purchases, local communication relating to
quality products and the provision of technical assistance.
In the beef and veal sector the programme may include the possibility
of a supply of male animals for fattening until the local numbers of
young male bovines reacha level sufficient to maintain traditional
beef production, and within the limit of the balance provided for underArticle 5. Priority for such animals shall be given to producers holdinganimals for fattening at least 50 % of which are of local origin.
The programme shall be prepared and implemented by the competent
authorities designated by the Member State, working in close colla-boration with the most representative producer organisations or theirassociations in the sectors concerned. It may not include the granting
of aid in addition to the individual premiums paid directly to producers
under this Regulation in the livestock sector, pursuant to Articles 5, 6and 8.
2. The detailed rules for applying this Article shall be fixed in
accordance withth e procedure referred to in Article 21(2).
Draft programmes, to run for no more than five years, shall be
presented to the Commission by the competent authorities. The
Commission shall approve them in accordance with the procedurereferred to in Article 21(2).2001R1454 — EN — 01.07.2002 — 001.001 — 9
(1) Council Regulation (EC) No 2467/98 of 3 November 1998 on the common
organisation of the market in sheepmeat and goatmeat (OJ L 312,
20.11.1998, p. 1). Regulation last amended by Regulation (EC) No 1669/2000 (OJ L 193, 29.7.2000, p. 8).
(
2) Council Regulation (EEC) No 1323/90 of 14 May 1990 instituting specific
aid for sheep and goat farming in certain less-favoured areas of the Commu-
nity (OJ L 132, 23.5.1990, p. 17). Regulation last amended by Regulation
(EC) No 193/98 (OJ L 20, 27.1.1998, p. 18).
▼B
3. Each year the Spanish authorities shall present a report on imple-
mentation of the programme. Before the end of 2005, the Commissionshall submit to the European Parliament and to the Council an evalua-
tion report on the application of the measure referred to in this Article,
accompanied if applicable by appropriate proposals.
Article 8
1. Aid shall be granted for the human consumption of locally
produced cow's milk products, within the limits of the consumption
needs of the islands as assessed periodically. The aid shall be paid tothe dairies. The aid shall amount to EUR 8,45 per 100 kg of wholemilk.
2. The Commission shall review the aid referred to in paragraph 1
of this Article and adopt detailed rules for applying this Article in
accordance withth e procedure referred to in Article 21(2). Paymentshall be subject to the benefit derived therefrom being actually passedon to the consumer.
CHAPTER II
FRUIT,VEGETABLES,PLANTSANDFLOWERS
Article 9
1. Aid shall be granted for the fruits, edible vegetables, roots and
tubers, flowers and live plants listed in Chapters 6, 7 and 8 of the
Combined Nomenclature harvested in the Canary Islands and intended
to supply the market in the Canary Islands.
The aid shall be granted for products which conform to common stan-
dards fixed by Community legislation or, where no such standardsexist, to specifications written into the supply contracts.
Grant of the aid shall be subject to the conclusion of supply contracts
lasting one or more years between individual producers, producergroups or producer organisations as referred to in Articles 11, 13 and14 of Regulation (EC) No 2200/96(
1) and the food industry or distribu-
tors, restaurants and the like or local authorities.
The aid shall be paid out to the abovementioned individual producers,
producer groups or producer organisations within the limits of annualquantities established for each product category.
The amount of the aid shall be fixed on a flat-rate basis for each of the
product categories to be determined, based on the average value of theproducts covered. The amount of aid shall be differentiated accordingto whether or not the beneficiary is one of the producer organisationsreferred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96.
The aid shall not be granted for bananas falling within CN code
0803 00, tomatoes falling within CN code 070200 or new potatoesfalling within CN code 0701 9050 harvested from 1 January to 31March.
2. Detailed rules for applying this Article shall be adopted in accor-
dance with the procedure referred to in Article 21(2). The productcategories and amounts of aid referred to in paragraph1 sh all be fixedin accordance withth e same procedure.
Article 10
1. Aid shall be granted for the conclusion of annual contracts
concerning the marketing of fresh and processed products as specifiedin Article 9 and medicinal plants falling within CN code 1211, which2001R1454 — EN — 01.07.2002 — 001.001 — 10
(1) Council Regulation (EC) No 2200/96 of 28 October 1996 on the common
organisation of the market in fruit and vegetables (OJ L 297, 20.11.1996,
p. 1). Regulation last amended by Commission Regulation (EC) No 2826/
2000 (OJ L 328, 23.12.2000, p. 2).
▼B
are harvested in the Canary Islands. This aid shall also be granted for
tomatoes falling within CN code 070200 on the terms laid down in thethird subparagraph of paragraph 2 of this Article.
The contracts shall be concluded between individual producers or
producer organisations as referred to in Articles 11, 13 and 14 of Regu-
lation (EC) No 2200/96 established in the Canary Islands and natural orlegal persons established in the rest of the Community.
2. The amount of the aid shall be 10 % of the value of the produc-
tion marketed, free at destination.
This aid shall be paid up to a limit of a volume of 10 000 tonnes per
product per year.
However, for tomatoes falling within CN code 0702 00 the amount of
the aid shall be EUR 0,76/100 kg up to a limit of 300 000 tonnes per
year.
3. The aid shall be granted to purchasers who undertake to market
the Canary Islands products under the contracts referred to in paragraph1.
4. Where marketing of the products referred to in paragraph 1 of
this Article is undertaken by joint ventures constituted, with the aimof marketing produce from the Canary Islands, by producers in thoseislands or producer organisations as referred to in Articles 11, 13 and
14 of Regulation (EC) No 2200/96 and natural or legal persons estab-
lished in the rest of the Community, and where the partners undertaketo pool the knowledge and know-how required to achieve the objectiveof the joint venture over a minimum period of three years, the amountof the aid shall be increased to 13 % of the value of the annual produc-
tion marketed jointly.
5. Detailed rules for applying this Article shall be adopted in accor-
dance withth e procedure referred to in Article 21(2).
Article 11
1. The Community shall contribute up to a maximum of EUR
100000 towards the financing of an economic analysis and forward
study of the fresh and processed fruit and vegetable sector in theCanary Islands, paying particular attention to tropical produce.
The study shall produce an economic and technical assessment of the
sector. It shall pay particular attention to supply data and processingcosts and examine the conditions and scope for development and sales
at regional and international level, having regard to competition on the
world market.
2. Detailed rules for applying this Article shall be adopted in accor-
dance withth e procedure referred to in Article 21(2).
CHAPTER III
WINE
Article 12
Chapter II of Title II and Title III of Regulation (EC) No 1493/1999(
1)
and Chapter III of Regulation (EC) No 1227/2000(2), as regards
production potential shall not apply to the Canary Islands, except forthe crisis distillation referred to in Article 30 of Regulation (EC) No2001R1454 — EN — 01.07.2002 — 001.001 — 11
(1) Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common
organisation of the market in wine (OJ L 179, 14.7.1999, p. 1). Regulation
as last amended by Regulation (EC) No 2826/2000 (OJ L 328, 23.12.2000,p. 2).
(
2) Commission Regulation (EC) No 1227/2000 of 31 May 2000 laying down
detailed rules for the application of Council Regulation (EC) No 1493/1999
on the common organisation of the market in wine (OJ L 143, 16.6.2000, p.
1).
▼B
1493/1999, if there is exceptional market disturbance caused by
problems of quality.
Article 13
1. Aid per hectare shall be granted for the continued cultivation of
vines for the production of quality wines psr in the traditional produc-tion zones.
The following areas shall be eligible for aid:
(a) areas planted to vine varieties included among the varieties classi-
fied by the Member States as being suitable for the production of
each of the quality wines psr produced in their territory, as referredto in Article 19 of Regulation (EC) No 1493/1999, and
(b) areas where the yield per hectare is lower than a maximum to be
fixed by the Member State, expressed as quantities of grapes, grapemusts or wine, under the terms of Annex VI(I) to Regulation (EC)No 1493/1999.
2. The amount of the aid shall be EUR 476,76 per hectare per year.
The aid shall be paid to producer groups or their associations.
However, the aid shall also be granted to individual producers during a
transitional period. During that period, all the aid shall be managed in
accordance withrules to be laid down in accordance withth e proce-dure referred to in Article 21(2).
3. Detailed rules for applying this Article shall be adopted as neces-
sary in accordance withth e procedure referred to in Article 21(2).
CHAPTER IV
POTATOES
Article 14
1. Aid per hectare shall be granted for the cultivation of potatoes for
human consumption falling within CN codes 0701 90 50 and0701 90 90.
2. The amount of the aid shall be EUR 596 per hectare.
The aid shall be paid up to a limit of 9 000 hectares cultivated and
harvested per year.
3. Detailed rules for applying this Article shall be adopted in accor-
dance withth e procedure referred to in Article 21(2).
CHAPTER V
TOBACCO
Article 15
Spain is hereby authorised to grant tobacco production aid to the
Canary Islands in addition to the premium provided for in Title I ofRegulation (EEC) No 2075/92(
1). The grant of this aid may not result
in discrimination between producers in the islands.
The amount of the aid shall not be more than the Community premium
referred to in the first paragraph. The additional aid shall be paid for upto 10 tonnes eachyear.2001R1454 — EN — 01.07.2002 — 001.001 — 12
(1) Council Regulation (EEC) No 2075/92 of 30 June 1992 on the common
organisation of the market in raw tobacco (OJ L 215, 30.7.1992, p. 70).
Regulation as last amended by Regulation (EC) No 1336/2000 (OJ L 154,
27.6.2000, p. 2).
▼B
Article 16
1. No customs duties shall be applied to direct imports into the
Canary Islands of raw and semi-manufactured tobacco falling, respec-tively, within:
— CN code 2401,
and the following subheadings:
— 2401 10 Tobacco, not stemmed/stripped,
— 2401 20 Tobacco, partly or wholly stemmed/stripped,— ex 2401 20 Outer coverings for cigars presented on supports, in
reels for the manufacture of tobacco,
— 2401 30 Tobacco waste,
— ex 2402 1000 Unfinished cigars without wrapping,—►
M1ex 2403 1090 ◄Cigarette rag (finished mixtures of
tobacco for the manufacture of cigarettes, cigars, cheroots andcigarillos),
— ex 2403 9100 Homogenised or reconstituted tobacco, whether or
not put up in sheets or strips,
— ex 2403 9990 Expanded tobacco.
The exemption referred to in the first subparagraph shall apply to
products intended for the local manufacture of tobacco products, up to
an annual import limit of 20000 tonnes of raw stripped tobacco
equivalent.
2. Detailed rules for applying this Article shall be adopted in accor-
dance withth e procedure referred to in Article 21(2).
CHAPTER VI
HONEY
Article 17
1. Aid shall be granted for the production of quality honey specific
to the Canary Islands, produced by the local breed of ‘black bees’.
The aid shall be paid to beekeepers' associations recognised by the
competent authorities on the basis of the number of hives of black
bees in production, up to a limit of 15000 hives.
The amount of the aid shall be EUR 20 per hive in production per
marketing year. For the purposes of this Article, the marketing yearshall begin on 1 July and end on 30 June the following year.
2. Detailed rules for applying this Article shall be adopted as neces-
sary in accordance withth e procedure referred to in Article 21(2).
CHAPTER VII
GRAPHICSYMBOL
Article 18
1. The conditions for using the graphic symbol introduced with a
view to ensuring greater awareness and consumption of quality agricul-
tural products, whether natural or processed, specific to the Canary
Islands as outermost regions, shall be proposed by the professionalorganisations. The Spanish authorities shall forward such proposals,with their opinion, to the Commission for approval.
Use of the symbol shall be monitored by an official authority or a body
approved by the competent Spanish authorities.
2. Detailed rules for applying this Article shall be adopted as neces-
sary in accordance withth e procedure referred to in Article 21(2).2001R1454 — EN — 01.07.2002 — 001.001 — 13
▼B
TITLE III
STRUCTURALDEROGATIONS
Article 19
1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999, the
total value of the aid, expressed as a percentage of the volume ofeligible investments, shall not exceed 75 % for investments intendedin particular to encourage diversification, restructuring or a shift
towards sustainable agriculture on agricultural holdings of small
economic size to be defined in the programme complement referred toin Article 18(3) of Regulation (EC) No 1260/1999.
2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999,
the total value of the aid, expressed as a percentage of the volume ofeligible investments, shall not exceed 65 % for investments in enter-prises engaged in processing and marketing agricultural productsconsisting mainly of local produce in sectors to be defined in theprogramme complement referred to in Article 18(3) of Regulation
(EC) No 1260/1999. The total value of the aid for small and medium-
sized enterprises, under the same conditions, shall not exceed 75 %.
3. Notwithstanding the third indent of the second subparagraph of
Article 47(2) of Regulation (EC) No 1257/1999, the Community contri-
bution to the agri-environmental measures provided for in Articles 22,23 and 24 of that Regulation shall be 85 %.
4. A summary description of the measures planned under this
Article shall be included in the operational programmes for that regionreferred to in Article 18 of Regulation (EC) No 1260/1999.
TITLE IV
GENERALANDFINALPROVISIONS
Article 20
The measures necessary for the implementation of this Regulation shall
be adopted in accordance withth e management procedure referred to in
Article 21(2).
Article 21
1. The Commission shall be assisted by the Management Committee
for Cereals established by Article 22 of Regulation (EEC) No 1766/92(
1), or by the management committees established by the other regu-
lations on the common organisation of the markets for the productsconcerned.
In the case of agricultural products covered by Regulation (EEC) No
827/68(
2) and products not covered by a common organisation of the
market, the Commission shall be assisted by the Management
Committee for Hops established by Article 20 of Regulation (EEC)
No 1696/71(3).
In the case of the graphic symbol and other cases provided for in this
Regulation, the Commission shall be assisted by the Management
Committee for FreshFruit and Vegetables establish ed by Regulation(EC) No 2200/96.2001R1454 — EN — 01.07.2002 — 001.001 — 14
(1) Council Regulation (EEC) No 1766/92 of 30 June 1992 on the common
organisation of the market in cereals (OJ L 181, 1.7.1992, p. 21). Regulation
last amended by Regulation (EC) No 1666/2000 (OJ L 193, 29.7.2000, p. 1).
(2) Regulation (EEC) No 827/68 of the Council of 28 June 1968 on the
common organisation of the market in certain products listed in Annex IIto the Treaty (OJ L 151, 30.6.1968, p. 16). Regulation as last amended by
Commission Regulation (EC) No 3290/94 (OJ L 349, 31.12.1994, p. 105).
(
3) Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common
organisation of the market in hops (OJ L 175, 4.8.1971, p. 1). Regulation
last amended by Regulation (EC) No 191/2000 (OJ L 23, 28.1.2000, p. 4).
▼B
For the purposes of implementing Title III, the Commission shall be
assisted by the Committee on the Development and Conversion ofRegions and the Committee on Agricultural Structures and Rural
Development, established by Article 48 and by Article 50 respectively
of Regulation (EC) No 1260/1999.
2. Where reference is made to this paragraph, Articles 4 and 7 of
Decision 1999/468/EC shall apply.
The period provided for in Article 4(3) of Decision 1999/468/EC shall
be one month.
3. The Committees shall adopt their rules of procedure.
Article 22
For the agricultural products covered by Annex I to the Treaty, to
which Articles 87, 88 and 89 thereof apply, the Commission mayauthorise operating aid in the sectors producing, processing andmarketing those products, with a view to mitigating the specific
constraints on farming in the Canary Islands as a result of their remote-
ness, insularity and outermost location.
Article 23
The measures provided for in this Regulation, except for Article 19,
shall constitute intervention intended to stabilise the agriculturalmarkets within the meaning of Article 2(2) of Regulation (EC) No1258/1999(
1).
Article 24
The Member States shall take the measures necessary to ensure compli-
ance withth is Regulation, in particular as regards controls andadministrative penalties, and shall inform the Commission thereof.
The detailed rules for applying this Article shall be adopted by the
procedure provided for in Article 21(2).
Article 25
1. Spain shall present to the Commission an annual report on the
implementation of the measures provided for in this Regulation.
2. No later than at the end of the fifth year of application of the
system the Commission shall submit a general report to Parliament
and the Council showing the impact of the action taken under this
Regulation, accompanied if applicable by appropriate proposals.
Article 26
Regulation (EEC) No 1601/92(
2) is hereby repealed. References to
Regulation (EEC) No 1601/92 shall be construed as references to this
Regulation and should be read in accordance with the correlation tablein Annex II.
Article 27
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
Article 19 shall apply as from 1 January 2000.2001R1454 — EN — 01.07.2002 — 001.001 — 15
(1) Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of
the common agricultural policy (OJ L 160, 26.6.1999, p. 103).
(2) Council Regulation (EEC) No 1601/92 of 15 June 1992 concerning specific
measures for the Canary Islands with regard to certain agricultural products
(OJ L 173, 27.6.1992, p. 13). Regulation as last amended by Regulation
(EC) No 2826/2000 (OJ L 328, 23.12.2000, p. 2).
▼B
This Regulation shall be binding in its entirety and directly applicable
in all Member States.2001R1454 — EN — 01.07.2002 — 001.001 — 16
▼B
ANNEX I
ListofproductscoveredbythespecificsupplyarrangementsprovidedforinArticle3
Description CN code
Cereals and cereal products intended for
humanconsumptionandanimalfeed
Malt 1107
Hops 1210
Rice 1006
Vegetable oil ex 1507 to 1516
Sugar 1701 and 1702 (except isoglucose)
Concentrated fruit juices (raw materials) other
than those eligible under Article 9 of this Regu-
lation200799 and 2008
Freshor ch illed beef and veal 0201
Frozen beef and veal 0202
Frozen pigmeat 020321, 22, 29
Frozen poultrymeat 020721, 22, 41, 42, 43, 50
Dried eggs (for the food industry) 0408
Seed potatoes 07011000Milkandmilkproducts
Liquid milk 0401
Concentrated or powdered milk 0402
Butter 0405
Cheese 040630, 0406 9023, 25, 27, 77, 79, 81, 89
Milk-based preparations for children 21069091
Not containing animal fat 19019090
Lucerne (alfalfa) meal and pellets 12141000
Oil-cake and other solid residues resulting from
the extraction of soya-bean oil2304002001R1454 — EN — 01.07.2002 — 001.001 — 17
▼B
ANNEX II
Correlationtable
Regulation (EEC) No 1601/92 This Regulation
Article 1 Article 1
Article 2 Article 2
Article 3(1 First subparagraphof Article 3(1)
Second subparagraphof Article 3(1)
Article 3(2) Article 3(2)Article 3(3) Article 3(3)Article 4 Article 4Article 5 Article 7(1), third subparagraphArticle 6 Article 16Article 7 Article 3(4)Article 8(1) First subparagraphof Article 3(5)
Second subparagraphof Article 3(5)
Article 8(2) Third subparagraph of Article 3(5)Article 8(3) Article 3(6)Article 9 Third subparagraph of Article 3(5)Article 10(1) Article 5(1)Article 10(2) Deleted
Article 5(2)
Article 10(3) Article 5(3)
Article 5(4)Article 5(5)Article 5(6)
Article 11 Article 8Article 12 DeletedArticle 13 Article 6
Article 7
Article 14 DeletedArticle 15 Article 9Article 16 Article 10Article 17 Article 11Article 18 Article 12Article 19 Article 13Article 20 Article 14Article 21 DeletedArticle 22 Deleted
Article 23 Article 15
Article 24 Article 17Article 25 DeletedArticle 26 Article 18Article 27 Article 19Article 28 Deleted
Article 20Article 21Article 222001R1454 — EN — 01.07.2002 — 001.001 — 18
▼B
Regulation (EEC) No 1601/92 This Regulation
Article 29 Article 23
Article 24
Article 30 Article 25
Article 26
Article 31 Article 27
Annex Annex I
Annex II2001R1454 — EN — 01.07.2002 — 001.001 — 19