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"B COMMISSION REGULATION (EC) No 1169/97
of 26 June 1997
laying down detailed rules for the application of Council Regulation (EC) No 2202/96 introducing a
Community aid scheme for producers of certain citrus fruits
(OJ L 169, 27.6.1997, p. 15)
Amended by:
Official Journal
No page date
"M1 Commission Regulation (EC) No 1145/98 of 2 June 1998 L 159 29 3.6.1998
"M2 Commission Regulation (EC) No 1082/1999 of 26 May 1999 L 131 24 27.5.1999
"M3 Commission Regulation (EC) No 2729/1999 of 21 December 1999 L 328 35 22.12.1999
Corrected by:
"C1 Corrigendum, OJ L 182, 10.7.1997, p. 55 (1169/97)
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999 should be
understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) and Council Regulation(EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).1997R1169 — EN — 25.12.1999 — 003.001 — 1
COMMISSION REGULATION (EC) No 1169/97
of 26 June 1997
laying down detailed rules for the application of Council Regulation (EC)
No 2202/96 introducing a Community aid scheme for producers of certain
citrus fruits
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 2202/96 of 28 October 1996
introducing a Community aid scheme for producers of certain citrus fruits (
1),
and in particular Article 2 (2), Article 3 (4) and Articles 6 and 8 thereof,
Whereas Regulation (EC) No 2202/96 introduces an aid scheme for producer
organizations which deliver for processing certain citrus fruits harvested inthe Community and listed in Article 1 thereof;
Whereas the marketing years for citrus fruit should be defined with a view to
ensuring that the scheme is applied uniformly;
Whereas, with a view to improving the way the scheme operates, the
authorities should know of all producer organizations marketing the citrusproduction of their members, of members of other producer organizations andof individual producers which wish to qualify under the scheme; whereas
processors who sign contracts with such producer organizations should also
send the authorities the information necessary to ensure that the schemeoperates properly,
Whereas the aid scheme for producers of certain citrus fruits is based on
contracts between producer organizations granted recognition or preliminary
recognition pursuant to Council Regulation (EC) No 2200/96 of 28 October
1996 on the common organization of the market in fruit and vegetables (
2) and
processors; whereas producer organizations can also act as processors in
certain cases; whereas the type and duration of contracts and the particulars to
be included in them should be specified with a view to the application of theaid scheme;
Whereas contracts for each product listed in Article 1 of Regulation (EC) No
2202/96 must be concluded by a given date so that the producer organizations
can plan and processors can be assured of regular supplies; whereas the
parties to such contracts should nevertheless be authorized to change, byamendments to the contracts and subject to a ceiling, the quantities originallystipulated therein so that the scheme is as effective as possible;
Whereas there is a close link between the raw materials delivered for
processing and the finished product obtained; whereas the raw materialsshould accordingly at least meet certain minimum requirements;
Whereas applications for aid or for advances on the aid for all products should
include all the particulars needed for checking eligibility;
Whereas, with a view to ensuring that the aid scheme is properly applied,
producer organizations and processors must forward the requisite information
and must keep updated documentation suitable for the purposes of allinspections and controls deemed necessary;
Whereas the administation of the aid scheme makes it necessary for
procedures to be laid down for physical and documentary checking of
delivery and processing operations, for the checks to be required to cover asufficiently representative number of applications for aid and advances andfor certain penalties to be laid down for producer organizations and processors
in the event of breaches of the regulations, in particular for false declarations
and failure to process products delivered;
Whereas the measures provided for in this Regulation are to replace those laid
down in Commission Regulation (EC) No 3338/93 of 3 December 1993
laying down detailes rules for the application of Council Regulations (EC) No
3119/93 and (EEC) No 1035/77 as regards measures to encourage the!B
(1) OJ No L 297, 21. 11. 1996, p. 49.
(2) OJ No L 297, 21. 11. 1996, p. 1.1997R1169 — EN — 25.12.1999 — 003.001 — 2
processing of certain citrus fruits and the marketing of products processed
from lemons (1), as last amended by Regulation (EC) No 2251/96 (2); whereas
that Regulation should accordingly be repealed;
Whereas exceptional transitional measures should be taken for lemons and
oranges delivered to processors at the beginning of the 1997/98 marketingyear to facilitate a smooth switchover from the former system to the newscheme;
Whereas the measures provided for in this Regulation are in accordance with
the opinion of the Management Committee for Fruit and Vegetables,
HAS ADOPTED THIS REGULATION:
CHAPTER I
Definitions and marketing years
Article 1
For the purposes of this Regulation:
(a)individual producers means producers of citrus fruit intended for
processing within the meaning of Article 4 (1) of Regulation (EC) No
2202/96;
(b)producer organizations means producer organizations within the meaning
of Articles 11 and 13 of Regulation (EC) No 2200/96 and producer
organizations granted preliminary recognition in accordance with Article
14 thereof;
(c)processor means any processing enterprise operating for economic
purposes and under its own responsibility one or more plants with
facilities for manufacturing one or more of the products listed in Article 1of Regulation (EC) No 2202/96, and any association of processingenterprises which is legally constituted and is recognized by a Member
State.
Article 2
1. The marketing years for the purpose of Regulation (EC) No 2202/96,
hereinafter referred to as the ‘marketing years’, shall run from:
(a) 1 October to 30 September for:
— sweet oranges,
— mandarins, clementines and satsumas,
— grapefruit and pomelos;
(b) 1 June to 31 May for lemons.2. The aid to producer organizations delivering mandarins, clementines and
satsumas shall only be granted on products delivered to the processing
industry in the period 1 October to 30 June.
3. In a given marketing year, ‘the equivalent period’ referred to in Article
5(2) of Regulation (EC) No 2202/96 shall run from:
— 1 August of the preceding marketing year to 31 July of the current
marketing year for oranges,
— 1 October to 30 June of the current marketing year for mandarins,
clementines and satsumas,
— 1 August of the preceding marketing year to 31 July of the current
marketing year for grapefruit and pomelos,
— 1 April of the preceding marketing year to 31 March of the current
marketing year for lemons.!B
(1) OJ No L 299, 4. 12. 1993, p. 26.
(2) OJ No L 302, 26. 11. 1996, p. 17.!M21997R1169 — EN — 25.12.1999 — 003.001 — 3
CHAPTER II
Contracts
Article 3
1. The contracts referred to in Article 2 (1) of Regulation (EC) No 2202/96
on which the aid scheme is based, hereinafter referred to as ‘contracts’, shall
be concluded in writing. Separate contracts shall be concluded for each basicproduct listed in Article 1 of that Regulation and shall bear an identificationnumber. They may take one of the following forms:
(a) a contract between a producer organization and a processor;
(b) a commitment to supply the fruit where the producer organization acts as
a processor.
2. Contracts must cover:
(a) the whole marketing year in question in the case of contracts covering one
marketing year;
(b) at least three marketing years in the case of multiannual contracts in
accordance with Article 3 (2) (a) of Regulation (EC) No 2202/96.
In the case of clementines, separate contracts must be drawn up for each
potential use, that is for juice or segments.
3. Contracts shall include in particular:(a) the name and address of the producer organization signing the contract;
(b) the name and address of the processor;
(c) the quantity of raw materials to be delivered for processing; in the case of
multiannual contracts, that quantity shall be broken down by marketing
year;
(d) the schedule of deliveries to processors per delivery quarter from the start
of the marketing year;
(e) the obligation on processors to process the quantities delivered under the
contract in question;
(f) the price to be paid to the producer organization for the raw materials,
which may vary by variety and/or delivery period; this price may only be
paid by bank or postal transfer;
(g) compensation payable in the event of non-performance by either party of
the contractual obligations, in particular as regards the obligation to
deliver and to accept of the quantities stipulated.
4. In the case of contracts covering one marketing year, the price referred to
in paragraph 3 (f) may be changed by common agreement between the partiesby the written amendments referred to in Article 5 (2) but only for the
additional quantities stipulated by those amendments.
5. Multiannual contracts may cover both the production of the members of
the producer organization signing the contract and the production of members
of other producer organizations where the second and third indents of Article
11 (1) (c) (3) of Regulation (EC) No 2200/96 are applied.
6. To qualify for the aid laid down in Table 2 of the Annex to Regulation
(EC) No 2202/96, quantities delivered under multiannual contracts must be at
least equal to the following per contract, product and marketing year:
— 300 tonnes for the 1997/98 marketing year,— 500 tonnes for the 1998/99 marketing year,
— 750 tonnes for the 1999/2000 marketing year,
— 1 000 tonnes as from the 2000/01 marketing year.7. In the case of multiannual contracts, the price referred to in paragraph 3
(f) per marketing year shall be established at the time the contract is signed.
However, the price applicable to a given marketing year may be revised bycommon agreement between the parties by written amendment to the contract
before
"M21 July3of the marketing year in question in the case of
lemons and before 1 November of the marketing year in question in the caseof other products.!B1997R1169 — EN — 25.12.1999 — 003.001 — 4
8. Member States may adopt additional provisions covering contracts, in
particular as regards compensation payable by the processor or the producerorganization in the event of non-performance of contractual obligations.
Article 4
Where producer organizations also act as processors, the contracts covering
the production of their members shall be deemed to have been concluded only
if and when the following particulars have been forwarded to the competent
authority within the time limit laid down in Article 6:
(a) the total area on which the raw materials are grown;
(b) the estimated total harvest;
(c) the quantity intended for processing, broken down by type of contract;(d) the schedule of deliveries referred to in Article 3 (3) (d);(e) an undertaking by the producer organization to process the quantities
delivered under the contract in question.
Article 5
1. Contracts shall be concluded at the latest by:
(a) 1 November for oranges, mandarins, clementines, satsumas, grapefruit
and pomelos;
(b) 1 July for lemons.2. In the case of contracts covering one marketing year, the quantity for each
delivery period, within the meaning of Article 3(3)(d), may be amended by
means of a written amendment, except for the quantity for the first deliveryperiod.
Such amendments shall show the identification number of the contract to
which they relate. They shall be concluded by no later than the 45th day after
the beginning of the delivery period in question.
The quantities to be delivered in each delivery period as stipulated in such
amendments may not differ by more than 40 % from those originally laid
down in the contract for that period. However, they may differ by up to 50 %in the case of deliveries of lemons and oranges in the third and fourth periods.
The quantities delivered by the new members referred to in Article 8(5) shall
be included in those amendments.
3. In the case of multiannual contracts, the quantity for each marketing year,
within the meaning of Article 3(3)(c), may be amended by means of a written
amendment. Such amendments shall show the identification number of the
contract to which they relate. They shall be concluded before 1 July of themarketing year in question in the case of lemons and before 1 November ofthe marketing year in question in the case of other products. The quantities to
be delivered in each marketing year as stipulated in such amendments may not
differ by more than 40 % from those originally laid down in the contract forthat marketing year. The quantity to be delivered shall be broken down bydelivery quarter from the start of the marketing year concerned.
A maximum of 25 % of the quantity to be delivered in each delivery period
may be transferred to either the preceding or the subsequent delivery period
by means of a single written agreement between the parties concerned foreach period, provided that the total quantity for the marketing year concernedis respected.
The producer organisation shall forward the agreement to the body referred to
in Article 6(1), ensuring that it reaches that body before the end of the period
concerned in the case of transfer to the subsequent period and 30 days before
the end of the preceding period in the case of transfer to the preceding period.!B
!M2
!M1
!M21997R1169 — EN — 25.12.1999 — 003.001 — 5
Article 6
1. The producer organizations shall forward a copy of each contract and of
any amendments thereto to the body designated by the Member State in which
the raw materials are to be harvested and, where applicable, to the bodydesignated by the Member State where processing is to take palce. Suchcopies must reach the competent authorities no later than 10 working days
after the conclusion of the contract or of any amendment thereto and no less
than five working days before the start of deliveries.
In no case may the total quantity covered by all the contracts signed by a given
producer organization exceed the production per product intended for
processing as estimated by that producer organization pursuant to Article 8.
2. In the event of exceptional, duly justified circumstances, the Member
States may accept contracts and amendments thereto that reach theirauthorities after the time limit laid down in paragraph 1, provided that suchlate arrival does not make controls impracticable.
CHAPTER III
Information to be provided
Article 7
1. No later than 30 days before the beginning of the marketing year,
producer organizations wishing to receive the aid provided for in Article 3 of
Regulation (EC) No 2202/96 and processors wishing to sign contracts withsuch producer organizations shall inform the body designated by the MemberState in which the raw materials are to be harvested and, where applicable, the
body designated by the Member State in which processing takes place. At the
same time they shall forward the information required by the Member State inquestion for the administration and monitoring of the aid scheme. Suchinformation shall in any case include the hourly extraction, pasteurization and
concentration capacity of each processing unit.
Member States may decide that such information:(a) is only to be given by new producer organizations or new processors
where the necessary information on the others is already available;
(b) is to cover a single marketing year, several marketing years or an
unlimited period.
2. At least five working days before the start of deliveries or processing,
producer organizations and processors shall notify the competent authorities
of the week in which deliveries and processing are to commence eachmarketing year. Producer organizations and processors shall be deemed to
have discharged this obligation where they provide proof that they have
forwarded that information at least eight working days before that time-limit.
3. In exceptional, duly justified cases, the Member States may accept
notifications from producer organizations and processors after the time limitlaid down in paragraph 2. However, in such cases, no aid shall be granted to
producer organizations for quantities already delivered or in the course of
delivery where the requisite checks on the conditions under which the aid isgranted cannot be conducted to the satisfaction of the competent authorities.
Article 8
1. Producer organizations signing contracts shall forward the following
information, broken down by product, to the body designated by the MemberState in which the raw materials are to be harvested:
(a) the total area on which the products are grown, broken down by member
producer, with the cadastral reference numbers on the parcels concerned
or a reference recognized as equivalent by the supervisory body;
(b) the estimated total harvest;(c) the estimated quantity intended for processing.2. The information specified in paragraph 1 shall be provided by the
producer organizations or individual producers in question to the producer!B1997R1169 — EN — 25.12.1999 — 003.001 — 6
organization signing the contract, which shall forward it to the body
designated by the Member State, where producer organizations:
(a) market production intended for processing of members of other producer
organizations pursuant to the second and third indents of Article 11 (1)(c) (3) of Regulation (EC) No 2200/96;
and/or
(b) pass on the benefit of the aid scheme to individual producers pursuant to
Article 4 (1) of Regulation (EC) No 2202/96.
3. To qualify for the aid, the producer organizations and individual
producers as referred to in paragraph 2 shall sign agreements with theproducer organization signing the contract.
Such agreements shall cover all citrus production delivered for processing by
the said producer organizations and the individual producers in question and
must specify at least the following:
(a) the number of marketing years covered by the agreement,(b) the quantities to be delivered for processing, broken down by producer,
product and delivery period in accordance with Article 3 (3) (d),
(c) the consequences of failure to comply with the agreement.
4. No later than 30 days after the start of the marketing year, the information
specified in paragraphs l and 2 and a copy of the agreements referred to in
paragraph 3 shall be forwarded to the body designated by the Member State inwhich the raw materials are harvested.
5. If a producer joins a producer organization after the dates referred to in
paragraph 4, the information mentioned in paragraphs 1 and 2, and if
appropriate, the agreements referred to in paragraph 3, shall in the case of thenew member be forwarded to the body referred to in paragraph 4 within 30days of the date on which membership took effect.
CHAPTER IV
Raw materials
Article 9
Products delivered to processors by producer organizations under contracts
must meet the minimum requirements laid down in the Annex.
Article 10
1. By
"M16 p.m. 3 on the preceding working day, the producer
organizations shall notify each delivery to the body designated by the MemberState where the raw materials are harvested and, where applicable, to the bodydesignated by the Member State in which processing takes place. Such
notifications shall specify in particular the quantity to be delivered, the
precise identification of the means of transport used and the identificationnumber of the contract under which delivery is made. Notifications shall beforwarded electronically and the recipient body shall keep a written record for
at least three years.
The competent body may require further details which it deems necessary for
the purposes of physical checks of deliveries.
Where there is a change in the information specified in the first subparagraph
after its notification, the new information shall be notified on the same terms
before the consignment leaves.
2. On acceptance at the processing plant of consignments delivered under
contracts, a certificate of delivery shall be issued, specifying:
(a) the date and time of unloading,(b) the precise identification of the means of transport used;(c) the identification number of the contract to which the consignment
relates;
(d) the gross and net weights of the consignment;!B
!M2
!B1997R1169 — EN — 25.12.1999 — 003.001 — 7
(e) net that the raw material complies with the minimum requirements laid
down in the Annex.
Certificates of delivery shall be drawn up in four copies. They shall be signed
by the processor or his representative and by the producer organization or itsrepresentative. Signatures shall be preceded by the words ‘Agreed by’. Each
certificate shall bear an identification number.
Both processors and producer organizations shall keep a copy of certificates
of delivery. One copy shall be forwarded immediately by the producer
organization to the bodies referred to in paragraph 1 for the purposes ofcontrols.
3. Where part or all of a consignment belongs to producers as referred to in
Article 8 (2) (a) and (b), the producer organization signing the contract shall
forward a copy of the certificate provided for in paragraph 2 to each producer
organization concerned and to the individual producers in question.
4. By no later than the 10th day of the following month, the producer
organizations shall notify the quantity delivered each month, by consignmentand product, to the body designated by the Member State in which the raw
materials were harvested and, where applicable, to the body designated by the
Member State in which processing takes place. Quantities delivered undercontracts shall be broken down by contract and according to thecorresponding aid.
Article 11
1. By no later than the 10th day of the following month, processors signing
contracts with producer organizations shall notify the body designated by theMember State in which the raw materials were harvested and, whereapplicable, the body designated by the Member State in which processing
takes place of the following in respect of each month, broken down by
product:
(a) the quantity of product received by consignment and per contract and the
quantity of products received otherwise than under contracts;
(b) the quantities of juice obtained, broken down by concentration in
accordance with the Brix scale, specifying the quantities obtained fromconsignments delivered under contracts;
(c) the average juice yield, expressed in weight of raw material, and the
concentration of the juice, expressed in degrees Brix;
(d) the quantities of segments obtained, specifying the quantities obtained
from consignments delivered under contracts;
(e) the quantities of every other finished product and by-product obtained,
specifying the quantities obtained from consignments delivered undercontracts;
(f) the quantities of waste obtained and the use to which the waste is put,
specifying the quantities obtained from consignments delivered under
contracts.
The quantities shall be expressed in net weight.
Notifications shall be signed by the processor to certify their exactitude.
2. Within 45 days of completion of processing operations for the marketing
year, the processors shall inform the body referred to in paragraph 1 of the
following in respect of each product:
(a) the quantities received, broken down into finished products and
by-products obtained;
(b) the quantities received under contracts, broken down by delivery period
and type of contract, that is, either covering one marketing year ormultiannual;
(c) the quantities received under contracts, broken down into finished
products and by-products obtained;
(d) the quantities of each finished product and by-product obtained from the
quantities referred to in point (a); in the case of juice, such quantitiesshall be broken down by concentration, expressed in degrees Brix;!B1997R1169 — EN — 25.12.1999 — 003.001 — 8
(e) the quantities of each finished product and by-product obtained from the
quantities referred to in point (c); in the case of juice, such quantitiesshall be broken down by concentration, expressed in degrees Brix;
(f) the quantities of each finished product and by-product in stock on
completion of processing operations for the marketing year.
The quantities shall be expressed in net weight.3. Where contracts are signed by associations of processors, the notifi-
cations in accordance with paragraph 1 and the information under paragraph 2shall be forwarded in respect of each member of the association.
CHAPTER V
Aid applications
Article 12
Aid applications shall be submitted by the producer organisation per product
and per delivery period to the body designated by the Member State on whose
territory the raw materials were harvested.
A single aid application may be submitted per delivery period for a given
basic product. In the case of clementines, separate aid applications must bedrawn up for each potential use, that is for juice or segments.
Article 13
Each aid application for each product and for each delivery period, shall
include inter alia the following:
(a) the applicant’s name and address;(b) the identification numbers of the contracts under which the product is
delivered, specifying whether the contracts relate to one or moremarketing years;
(c) the quantity of product delivered under the contracts, including any
amendments thereto, during the period concerned. That quantity shall be
broken down by contract and according to the amount of thecorresponding aid;
(d) the quantity of product delivered otherwise than under contracts during
the same period;
(e) the average prices applying, on the one hand, to products delivered under
contracts, distinguishing between multiannual contracts and contractscovering one marketing year, and, on the other hand, to other products
delivered otherwise than under contracts during the period concerned;
(f) a declaration by the producer organisation to the effect that products
referred to in point (c) meet the quality criteria laid down in Article 9.
Article 14
Aid applications referred to in Article 13 shall be submitted to the competent
body not later than 45 days following the end of the period concerned.
Article 15
1. The aid shall be paid by the competent body of the Member State in
which the raw material was harvested once the supervisory body of theMember State in which processing takes place has established that theproducts covered by the application for the aid have been delivered to the
processor.
Where processing takes place in another Member State, that Member State
shall provide the Member State where the product is harvested with proof that
the product has in fact been delivered.
No aid shall be granted for quantities in respect of which the requisite checks
on the conditions under which the aid is granted have not been conducted.!B
!M21997R1169 — EN — 25.12.1999 — 003.001 — 9
2. Within 15 working days of receipt of the aid, the producer organisation
shall pay in full by bank or postal transfer the amounts received to itsmembers or, where the second and third indents of Article 11(1)(c)(3) ofRegulation (EC) No 2200/96 apply, to the members of the other producer
organisations and/or to the individual producers concerned. In cases as
provided for in Article 4 of this Regulation, such payments may be credited.
CHAPTER VI
Controls and penalties
Article 16
1. Producer organizations delivering products for processing shall keep
records covering each product delivered. Such records shall contain at least
the following:
(a) in the case of quantities delivered under multiannual contracts:
(i) the consignments delivered, by delivery day, and the identification
number of the contract to which they relate,
(ii) the net weight of each consignment delivered and the identification
number of the relevant delivery certificate;
(b) in the case of quantities delivered under contracts for one marketing year:
(i) the consignments delivered, by delivery day, and the identification
number of the contract to which they relate,
(ii) the net weight of each consignment delivered and the identification
number of the relevant delivery certificate,
(iii) the total quantities delivered, by delivery day, broken down in
accordance with the aid applicable;
(c) in the case of quantities delivered otherwise than under contracts:
(i) the consignments delivered by delivery day and the name and
address of the processor,
(ii) the net weight of each consignment delivered.
2. Producer organizations shall submit to all inspections and checks deemed
necessary by the competent authorities and shall keep all additional recordslaid down by those authorities for the purposes of the checks they require.
3. The Member States may decide what form the records provided for in
paragraphs 1 and 2 shall take.
Article 17
1. Processors shall keep records covering each product purchased. Such
records shall contain at least the following:
(a) in the case of quantities purchased from producer organizations under
contracts:
(i) the consignments received, by delivery day, and the identification
number of the contract to which they relate,
(ii) the net weight of each consignment received, the identification
number of the corresponding delivery certificate and the preciseidentification of the means of transport used;
(b) in the case of other quantities purchased:
(i) the consignments received, by delivery day, and the name and
address of the seller,
(ii) the net weight of each consignment received;
(c) the quantities of juice obtained each day, broken down by concentration,
expressed in degrees Brix, specifying the quantities obtained fromconsignments delivered under contracts;!M2
!B1997R1169 — EN — 25.12.1999 — 003.001 — 10
(d) the quantities of segments obtained each day, specifying the quantities
obtained from consignments delivered under contracts;
(e) the quantities of every other finished product and by-product obtained
each day, specifying the quantities obtained from consignments delivered
under contracts;
(f) the quantities of waste obtained each day and the uses to which such
waste is put;
(g) the quantities of each finished product and by-product purchased by the
processor each day, giving the name and address of the seller; in the caseof juice, such quantities shall be broken down by concentration,expressed in degrees Brix;
(h) the quantities of each finished product and by-product leaving the
processor’ s establishment each day, giving the name and address of the
consignee; in the case of juice, such quantities shall be broken down by
concentration, expressed in degrees Brix; such details may appear in therecords as a reference to supporting documents existing elsewhere,provided that such documents contain the abovementioned particulars;
(i) the quantities of finished products and by-products in stock at the end of
the marketing year, broken down by finished product and by-product.
The quantities shall be expressed in net weight.2. As from the end of the processing year in question, processors shall keep
proof of payment of all raw materials purchased under contracts or writtenamendments therto for five years. Processors shall also keep proof of paymentor sale of all processed finished products and by-products purchased or sold
for the five years.
3. Processors shall submit to all inspections and checks deemed necessary
by the competent authorities and shall keep all additional records laid down
by such authorities for the purpose of the checks they deem necessary.
4. The Member States may decide what form the records provided for in
paragraphs 1 and 3 shall take.
Article 18
1. Member States shall take all the measures necessary to ensure
compliance with this Regulation. To that end, and without prejudice to Title
VI of Regulation (EC) No 2200/96, they shall in particular conduct the checksprovided for in paragraphs 2 and 3 of this Article.
2. For each product, marketing year and producer organisation:
(a) physical checks shall be made of:
— at least 5 % of the areas referred to in Article 8(1) and (2);— at least 20 % of the quantities delivered for processing in each
delivery period;
(b) documentary checks shall be made of:
— at least 30 % of the agreements referred to in Article 8(3);
— at least 30 % of the payments referred to in Article 15;— all applications for aid in each delivery period.
The checks shall also verify that the following tally:
(a) the quantities of products delivered for processing under contracts and
covered by delivery certificates as provided for in Article 10(2) and thosecovered by each application for the aid or an advance; and
(b) the quantities of products delivered for processing under contracts and
those delivered to producer organisations by their members, by membersof other producer organisations where the second and third indents of
Article 11(1)(c) of Regulation (EC) No 2200/96 apply, and by individual
producers where Article 4 of Regulation (EC) No 2202/96 applies.!B
!M31997R1169 — EN — 25.12.1999 — 003.001 — 11
3. For each processor, product received and month,
(a) physical checks shall be made of:
— at least 30 % of the consignments received under the two types of
contract (for one or more marketing years); the checks shall cover at
least the net weight of each consignment and its yield in juice;
(b) documentary checks shall be made of
— at least 30 % of the consignments received under the two types of
contract (for one or more marketing years); the checks shall coverthe real link with a contract, the delivery certificates referred to inArticle 10(2), the precise identification of the means of transport
used and compliance with the minimum requirements laid down in
the Annex.
— at least 30 % of each finished product and by-product obtained under
contracts;
— at least 30 % of each finished product and by-product obtained
otherwise than under contracts;
— at least 30 % of the transfers as provided for in Article 3(3)(f).
The checks shall also verify that the following tally:(a) the invoices for the purchase and sale of finished products and
by-products; and
(b) the quantities of products received by each processor, the quantities of
finished products and byproducts produced, the quantities of finished
products and by-products purchased, and the quantities of finished
products and by-products sold or in stock.
At least twice a year, the Member States shall conduct physical checks of
stocks of products processed by the processor and of stocks of processed
products purchased and shall carry out a reconciliation of the data thusobtained with those in the processor’ s records.
4. Member States must programme their tally checks on the basis of a risk
analysis that considers, among other things:
— observations made during checks conducted in earlier years;— developments since the year before;
— the yield in juice,
— the relationship between the quantities delivered and the estimated total
harvest.
Member States may increase the frequency and percentage of checks laid
down in paragraphs 2 and 3.
Article 19
1. Checks conducted pursuant to Article 18 shall not preclude any additional
checks by the competent authorities or any consequences resulting from the
application of national provisions.
2. Member States shall take all the measures necessary to ensure that the
records are kept properly and that they tally with the general accounts of the
producer organizations and of the processors.
3. Where checks reveal substantial irregularities, the competent authorities
shall conduct additional checks during the marketing year in progress and
increase the frequency of checks during the following marketing year.
Article 20
1. If the aid for a product applied for by a producer organisation in respect
of a delivery period is found to be greater than the amount due, the latter shall
be reduced where the difference is the result of false declarations, falsedocuments or serious negligence on the part of the producer organisation.
That reduction shall be equal to twice the difference, plus interest calculated
on the period elapsing between payment and reimbursement of the amountunduly received by the recipient.!M3
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The rate of interest shall be that applied by the European Monetary Institute to
transactions in euros, as published in the ‘C’ series of the Official Journal of
the European Communities , in force on the date of undue payment; plus three
percentage points.
2. Where paragraph 1 is applied, if the difference between the aid actually
paid and the aid due exceeds 20 % of the latter, the recipient shall reimbursethe total aid paid, plus interest calculated in accordance with that paragraph; ifthat difference exceeds 30 %, the producer organisation shall also forfeit any
entitlement to production aid in the following marketing year.
3. Amounts recovered and interest shall be paid to the competent paying
agency and deducted from expediture financed by the European Agricultural
Guidance and Guarantee Fund.
4. Member States shall take the measures necessary to ensure compliance
with Article 15 (2). They shall make provision in particular for penaltiesagainst the officers of the producer organization commensurate with the
seriousness of any irregularity.
5. Where the quantity of a product delivered under a multiannual contract
for a marketing year is found to be less than the minimum quantity laid downin Article 3 (6), the corresponding aid under the multiannual contract shall be
reduced by 50 % for the marketing year in question. The recipient shall
reimburse the difference between the aid actually paid and the aid due, plusinterest calculated in accordance with paragraph 1.
Where three multiannual contracts or more are affected at the same time by a
failure to deliver the minimum quantity for a marketing year, the producer
organization in question shall be barred from signing further multiannualcontracts from the time such failure is observed. Depending on the
seriousness of such failure, the Member State shall determine the duration
of such a bar. It shall cover at least two marketing years. The firstsubparagraph shall apply to all contracts.
6. Where producer organizations commit irregularities on more than one
occasion, Member States shall withdraw the producer organization’ s
recognition or preliminary recognition in the case of producer groups grantedpreliminary recognition.
7. If the quantities actually delivered during a marketing year under each
contract referred to in Article 3(2)(a) and (b) are found to be less than the
contracted quantities, including any amendments, for the marketing year in
question, the aid for the contract in question shall be reduced by:
— 20 % if the difference between the quantities actually delivered and the
quantities contracted is greater than or equal to 20 % but less than 30 %,
— 30 % if the difference between the quantities actually delivered and the
quantities contracted is greater than or equal to 30 % but less than 40 %,
— 40 % if the difference between the quantities actually delivered and the
quantities contracted is greater than or equal to 40 % but less than 50 %.
No aid shall be granted if the difference between the quantities actually
delivered and the quantities contracted is greater than or equal to 50 %.
In the case of multiannual contracts, this paragraph shall not apply if
paragraph 5 is applied.
The producer organisation signing the contracts shall reimburse the difference
between the aid
"M2 3 actually paid and the aid
"M2 3 due plus interest calculated in accordance with
paragraph 1.
The aid reduction referred to in this paragraph shall not be applied if the
producer organisation signing the contracts can prove to the satisfaction of thecompetent national authority that failure to comply with the contracts was not
deliberate or the result of serious negligence on its part or on the part of
members of other producer organisations and/or individual producers.
8. Where a processing contract is cancelled, either in full or in part, before
its expiry, the signatory producer organisation shall reimburse 40 % of the aid
received for that contract, plus interest calculated in accordance with the
second subparagraph of paragraph 1.!M2
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In addition, in the case of multiannual contracts:
— a producer organisation which cancels, in full or in part, rivo or more
contracts during the same marketing year may not conclude a multiannualcontract pursuant to Regulation (EC) No 2206/96 for three marketingyears from the time the competent body of the Member State concerned
notes such cancellation,
— failure to deliver a product during one of the marketing years covered by
a contract shall imply cancellation of that contract.
Article 21
1. Where in the course of a marketing year processors are found to have
failed to process the total quantity of a product delivered to them undercontracts, they shall be liable to a financial penalty. The latter shall be
calculated as follows:
(a) where the difference between the quantity delivered and the quantity
processed does not exceed 5 %, the penalty shall be equal to three timesthe amount obtained by multiplying 5 % of the total quantity of product
delivered by the level of aid corresponding to the multiannual contract for
the marketing year in question;
(b) where the difference falls between 5 % and 20 %, the penalty shall be
equal to four times the amount obtained by multiplying 20 % of the totalquantity of product delivered by the level of aid corresponding to the
multiannual contract for the marketing year in question and the processor
shall be barred from the scheme for the marketing year following that inwhich his failure to process is established;
(c) where the difference exceeds 20 %, the penalty shall be equal to five
times the amount obtained by multiplying 50 % of the total quantity of
product delivered by the level of aid corresponding to the multiannual
contract for the marketing year in question and the processor shall bebarred from the scheme for the three marketing years following that inwhich his failure to process is established.
2. The penalty referred to in paragraph 1 shall not be applied if the
processor can prove to the satisfaction of the competent national authority,
that the irregularities were not deliberate or the result of serious negligence.
CHAPTER VII
Communications to the Commission
Article 22
1. Each Member State concerned shall notify the Commission of:
(a) the quantity of each product covered by contracts for the current
marketing year, broken down by delivery period and type of contract, by:
(i) 15 August in the case of lemons;(ii) 15 December in the case of other products;
(b) the quantity of each product delivered for processing pursuant to
Regulation (EC) No 2202/96 during the periods referred to in Article2(3), by:
(i) 1 May of the current marketing year in the case of lemons;(ii) 1 September of the current marketing year in the case of other
products.
2. In respect of each product, at the latest by 1 January of the following
marketing year, each Member State concerned shall communicate to the
Commission:
(a) the quantities received by processors, broken down by finished product
and by-product obtained;!M2
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(b) the quantities received by processors under contracts, broken down by
delivery period and type of contract, that is, either covering onemarketing year or multiannual;
(c) the quantities received by processors under contracts, broken down by
finished product and by-product obtained;
(d) the quantities of each finished product and by-product obtained from the
quantities referred to in (a); in the case of juice, such quantities shall bebroken down by concentration, expressed in degrees Brix;
(e) the quantities of each finished product and by-product obtained from the
quantities referred to in (c); in the case of juice, such quantities shall be
broken down by concentration, expressed in degrees Brix;
(f) the quantities of each finished product and by-product in stock at the end
of the marketing year;
(g) the quantities covered by contracts and delivered, by type of contract, that
is, either covering one marketing year or multiannual;
(h) expenditure, expressed in national currency, on aid paid to producer
organizations.
The quantities shall be expressed in net weight.
CHAPTER VIII
Transitional and final provisions
Article 23
As regards grapefruit and pomelos, whether or not the processing threshold
laid down in Article 5 of Regulation (EC) No 2202/96 for the 1999/2000marketing year has been exceeded shall be assessed on the basis of the
average quantities processed pursuant to Regulation (EC) No 2202/96 during
the 1997/98 and 1998/99 marketing years.
Article 24
Regulation (EC) No 3338/93 is hereby repealed.
Article 25
This Regulation shall enter into force on the third day following that of its
publication in the Official Journal of the European Communities .This
Regulation shall be binding in its entirety and directly applicable in allMember States.!B
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ANNEX
MINIMUM REQUIREMENTS AS PROVIDED FOR IN ARTICLE 9
Products delivered for processing must:
1. be whole, of sound and fair merchantable quality and suitable for processing.
Products affected by rot are excluded;
2. comply with the following minimum values:
(a) Products for processing into juice
Yield in juice Degrees Brix (1)
Oranges 30 % 10°
Mandarins 23 % "M19°3
Clementines 25 % 10°
Grapefruit and pomelos 22 % 8°Lemons 20 % 7°
(
1)Refractometric method.
(b) Products for processing into segments
Yield in juice Degrees Brix (1)
Clementines 33 % 10°
Satsumas 33 % 10°
(1)Refractometric method.
"C1For processing into segments, 3 clementines and satsumas must be at
least 45 mm in size.!B1997R1169 — EN — 25.12.1999 — 003.001 — 16