2007R1234 — EN — 03.10.2012 — 011.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

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COUNCIL REGULATION (EC) No 1234/2007

of 22 October 2007

establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation)







THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament ( 1 ), Whereas: (1) The operation and development of the common market for agricultural products should be accompanied by the establishment of a common agricultural policy (hereinafter CAP) to include, in particular, a common organisation of agricultural markets (hereinafter CMO) which may, according to Article 34 of the Treaty, take various forms depending on the product. (2) Since the introduction of a CAP, the Council has adopted 21 CMOs for each product or group of products, each governed by a separate Council basic regulation: — Council Regulation (EEC) No 234/68 of 27 February 1968 on the establishment of a common organisation of the market in live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage ( 2 ), — Council Regulation (EEC) No 827/68 of 28 June 1968 on the common organisation of the market in certain products listed in Annex II to the Treaty ( 3 ), — Council Regulation (EEC) No 2759/75 of 29 October 1975 on the common organisation of the market in pigmeat ( 4 ), — Council Regulation (EEC) No 2771/75 of 29 October 1975 on the common organisation of the market in eggs ( 5 ), — Council Regulation (EEC) No 2777/75 of 29 October 1975 on the common organisation of the market in poultrymeat ( 6 ), — Council Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco ( 7 ), — Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organisation of the market in bananas ( 8 ), — Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables ( 9 ), — Council Regulation (EC) No 2201/96 of 28 October 1996 on the common organisation of the markets in processed fruit and vegetable products ( 10 ), — Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal ( 11 ), — Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products ( 12 ), — Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine ( 13 ), — Council Regulation (EC) No 1673/2000 of 27 July 2000 on the common organisation of the markets in flax and hemp grown for fibre ( 14 ), — Council Regulation (EC) No 2529/2001 of 19 December 2001 on the common organisation of the market in sheepmeat and goatmeat ( 15 ), — Council Regulation (EC) No 1784/2003 of 29 September 2003 on the common organisation of the market in cereals ( 16 ), — Council Regulation (EC) No 1785/2003 of 29 September 2003 on the common organisation of the market in rice ( 17 ), — Council Regulation (EC) No 1786/2003 of 29 September 2003 on the common organisation of the market in dried fodder ( 18 ), — Council Regulation (EC) No 865/2004 of 29 April 2004 on the common organisation of the market in olive oil and table olives ( 19 ), — Council Regulation (EC) No 1947/2005 of 23 November 2005 on the common organisation of the market in seeds ( 20 ), — Council Regulation (EC) No 1952/2005 of 23 November 2005 concerning the common organisation of the market in hops ( 21 ), — Council Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the sugar sector ( 22 ). (3) In addition, the Council has adopted three regulations with specific rules for certain products without, however, setting up a CMO for these products: — Council Regulation (EC) No 670/2003 of 8 April 2003 laying down specific measures concerning the market in ethyl alcohol of agricultural origin ( 23 ), — Council Regulation (EC) No 797/2004 of 26 April 2004 on measures improving general conditions for the production and marketing of apiculture products ( 24 ), — Council Regulation (EC) No 1544/2006 of 5 October 2006 laying down special measures to encourage silkworm rearing ( 25 ). (4) The abovementioned Regulations (hereinafter basic regulations) are often accompanied by a collateral set of further Council regulations. Most of the basic regulations follow the same structure and have numerous provisions in common. This is the case in particular with regard to the rules on trade with third countries and the general provisions, but also, to a certain extent for the rules related to the internal market. The basic regulations often contain different solutions to identical or similar problems. (5) The Community has, for some time, been pursuing the aim of simplifying the regulatory environment of the CAP. Accordingly, a horizontal legal framework for all direct payments was established amalgamating an array of support systems into a single payment scheme by the adoption of Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers ( 26 ). This approach should also be applied to the basic regulations. In this context the rules contained therein should be amalgamated into a single legal framework and sectoral approaches be replaced by horizontal ones where this is possible. (6) In the light of the aforementioned considerations, the basic Regulations should be repealed and replaced by one single Regulation. (7) Simplification should not lead to calling into question the policy decisions that have been taken over the years in the CAP. This Regulation should, therefore, essentially be an act of technical simplification. It should not, therefore, repeal or change existing instruments unless they have become obsolete, redundant or should not, by their very nature, be dealt with at Council level, nor should it provide for new instruments or measures. (8) Against this background, this Regulation should not include those parts of CMOs which are subject to policy reforms. This is the case with regard to most parts of the fruit and vegetables, processed fruit and vegetables and the wine sectors. The provisions contained in the respective Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 1493/1999 should, therefore, be incorporated into this Regulation only to the extent that they are not themselves subject to any policy reforms. The substantive provisions of these CMOs should only be incorporated once the respective reforms have been enacted. (9) The CMOs for cereals, rice, sugar, dried fodder, seeds, olive oil and table olives, flax and hemp, bananas, milk and milk products, and silkworms provide for marketing years mainly adapted to the biological production cycles of each of these products. The marketing years as they have been fixed in these sectors should, therefore, be incorporated into this Regulation. (10) In order to stabilise the markets and to ensure a fair standard of living for the agricultural community, a differentiated system of price support for the different sectors has been developed, in parallel to the introduction of direct support schemes, taking account of the different needs in each of these sectors on the one hand and the interdependence between different sectors on the other. These measures take the form of public intervention or the payment of aid for the private storage of products of the cereals, rice, sugar, olive oil and table olives, beef and veal, milk and milk products, pigmeat and sheepmeat and goatmeat sectors. Given the objectives of the present Regulation, there is, therefore, a need to maintain price support measures where they are foreseen in the instruments as they were developed in the past, without making any substantial changes as compared to the previous legal situation. (11) For the sake of clarity and transparency, the provisions governing these measures should be made subject to a common structure, whilst maintaining the policy pursued in each sector. For that purpose it is appropriate to distinguish between reference prices and intervention prices. (12) The CMOs for cereals, beef and veal and milk and milk products contained provisions according to which the Council, acting in accordance with the procedure laid down in Article 37(2) of the Treaty, may change the price levels. Given the sensitivity of the price systems it should be made clear that the possibility under Article 37(2) to change price levels exists with regard to all sectors covered by this Regulation. (13) Moreover, the CMO for sugar provided for the possibility of reviewing the standard qualities of sugar, as further defined in Regulation (EC) No 318/2006, to take account, in particular, of commercial requirements and developments in technical analysis. That Regulation therefore provided for the power of the Commission to amend the relevant Annex. There is a particular need to maintain that possibility in order to enable the Commission to take swift action if necessary. (14) To ensure reliable information on Community market prices for sugar, the price reporting system as provided for in the CMO for sugar should be incorporated into this Regulation, on the basis of which market price levels for white sugar should be determined. (15) To prevent the system of intervention in respect of cereals, rice, butter and skimmed milk powder from becoming an outlet in itself the possibility to provide for the opening of public intervention only during certain periods of the year should be maintained. In respect of beef and veal products, pigmeat and butter, the opening and closing of public intervention should be dependent on market price levels during a certain period. As regards maize, rice and sugar, the limitation of the quantities up to which buying-in under public intervention can be carried out, should be maintained. With regard to butter and skimmed milk powder, the power of the Commission needs to be maintained to suspend the normal buying-in once a certain quantity is reached or to replace it by buying-in under a tender procedure. (16) The price level at which buying-in under public intervention should be carried out was, in the past, decreased in the CMOs for cereals, rice and beef and veal and fixed along with the introduction of direct support schemes in these sectors. Aid under those schemes on the one hand and intervention prices on the other are, therefore, closely linked. For the products of the milk and milk products sector, that price level was fixed in order to promote consumption of the products concerned and improve their competitiveness. In the rice and sugar sectors, the prices were fixed in order to contribute to stabilising the market in instances where the market price in a given marketing year falls below the reference price fixed for the following marketing year. These policy decisions of the Council still remain valid. (17) As in previous CMOs, this Regulation should provide for the possibility of disposal of products bought into public intervention. Such measures should be taken in a way that avoids market disturbances and that ensures equal access to the goods and equal treatment of purchasers. (18) Due to its intervention stocks of various agricultural products, the Community has the potential means to make a significant contribution towards the well-being of its most deprived citizens. It is in the Community interest to exploit this potential on a durable basis until the stocks have been run down to a normal level by introducing appropriate measures. In the light of these considerations, Council Regulation (EEC) No 3730/87 of 10 December 1987 laying down the general rules for the supply of food from intervention stocks to designated organisations for distribution to the most deprived persons in the Community ( 27 ) has, so far, provided for the distribution of food by charitable organisations. This important social measure, which can be of considerable value to the most deprived persons, should be maintained and incorporated into the framework of this Regulation. (19) In order to contribute to balancing the milk market and to stabilising market prices, the CMO for milk and milk products has provided for the granting of aid for private storage in respect of cream, certain butter products and certain cheese products. Moreover, the Commission has been empowered to decide to grant aid for private storage of certain other cheese products as well as for white sugar, certain kinds of olive oil and of certain beef and veal products, skimmed milk powder, pigmeat and sheepmeat and goatmeat. Given the purpose of this Regulation, these measures should be maintained. (20) Council Regulation (EC) No 1183/2006 of 24 July 2006 concerning the Community scale for the classification of carcasses of adult bovine animals ( 28 ), Council Regulation (EEC) No 1186/90 of 7 May 1990 extending the scope of the Community scale for the classification of carcasses of adult bovine animals ( 29 ), Council Regulation (EEC) No 3220/84 of 13 November 1984 determining the Community scale for grading pig carcasses ( 30 ) and Council Regulation (EEC) No 2137/92 of 23 July 1992 concerning the Community scale for the classification of carcasses of ovine animals and determining the Community standard quality of fresh or chilled sheep carcasses ( 31 ) provide for Community scales for the classification of carcasses in the beef and veal, pigmeat and sheepmeat and goatmeat sectors. These schemes are essential for the purposes of price recording and for the application of the intervention arrangements in those sectors. Moreover, they pursue the objective of improving market transparency. Such carcass classification schemes should be maintained. It is therefore appropriate to incorporate their essential elements into this Regulation, whilst empowering the Commission to regulate certain issues of a rather technical character through implementing rules. (21) Restrictions to free circulation resulting from the application of measures intended to combat the spread of animal diseases could cause difficulties on the market in certain products in one or more Member States. Experience shows that serious market disturbances such as a significant drop in consumption or in prices may be attributed to a loss in consumer confidence due to public health or animal health risks. (22) The exceptional market support measures in order to remedy such situations provided for in the respective CMOs for beef and veal, milk and milk products, pigmeat, sheepmeat and goatmeat, eggs and poultrymeat should, therefore, be incorporated into this Regulation under the same conditions as they have applied so far. Such exceptional market support measures should be taken by the Commission and should be directly related to or consequent upon health and veterinary measures adopted in order to combat the spread of disease. They should be taken at the request of Member States in order to avoid serious disruption on the markets concerned. (23) The possibility for the Commission to adopt special intervention measures where this proves to be necessary in order to react efficiently and effectively against threats of market disturbances in the cereals sector and in order to prevent large-scale application of public intervention in certain regions of the Community in the rice sector or to make up for paddy rice shortages following natural disasters, as they have been provided for in the CMOs for cereals and rice respectively should be maintained in this Regulation. (24) A minimum price should be fixed for quota beet corresponding to a standard quality which should be defined, in order to ensure a fair standard of living for the Community growers of sugar beet and sugar cane. (25) Specific instruments are needed to ensure a fair balance of rights and obligations between sugar undertakings and sugar beet growers. Therefore, the standard provisions governing the interprofessional agreements previously contained in the CMO for sugar should be maintained. (26) The diversity of natural, economic and technical situations makes it difficult to provide for uniform purchase terms for sugar beet throughout the Community. Agreements within the trade already exist between associations of sugar beet growers and sugar undertakings. Therefore, framework provisions should define only the minimum guarantees required by both sugar beet growers and the sugar industry to ensure a smooth functioning of the sugar market with the possibility to derogate from some rules in the context of an agreement within the trade. More detailed terms have previously been provided in the CMO for sugar in Annex II to Regulation (EC) No 318/2006. Given the highly technical character of these terms, it is more appropriate to deal with these questions at Commission level. (27) The production charge provided for under the CMO for sugar to contribute to the financing of the expenditure occurring under that CMO should be incorporated in this Regulation. (28) To maintain the structural balance of the markets in sugar at a price level close to the reference price, the possibility for the Commission to decide to withdraw sugar from the market for as long as it takes for the market to rebalance should be maintained. (29) The CMOs for live plants, beef and veal, pigmeat, sheepmeat and goatmeat, eggs and poultrymeat provided for the possibility of adopting certain measures to facilitate the adjustment of supply to market requirements. Such measures may contribute to stabilising the markets and to ensuring a fair standard of living for the agricultural community concerned. Given the objectives of this Regulation, that possibility should be maintained. According to those provisions, the Council may adopt the general rules concerning such measures in accordance with the procedure laid down in Article 37 of the Treaty. The aims to be pursued by such measures are clearly circumscribed and delimit the nature of the measures that may be adopted. Therefore, the adoption of additional general rules by the Council in those sectors is not necessary and should no longer be provided for. (30) In the sugar and in the milk and milk products sectors the quantitative limitation of production as set out in Regulations (EC) No 318/2006 and Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector ( 32 ) has been an essential market policy instrument for many years. The reasons which in the past led the Community to adopt production quota systems in both sectors remain valid. (31) Whereas the sugar quota system was provided for in the CMO for sugar, the corresponding system in the dairy sector has so far been regulated in a legal act separate from the CMO for milk and milk products, namely Regulation (EC) No 1788/2003. Given the crucial importance of these schemes and the objectives of this Regulation, it is appropriate to incorporate the relevant provisions for both sectors in this Regulation without making any substantial changes to the schemes and their modes of operation as compared to the previous legal situation. (32) The sugar quota scheme under this Regulation should therefore reflect the arrangements set out in Regulation (EC) No 318/2006 and, in particular, maintain the legal status of the quotas in so far as, according to the case-law of the Court of Justice, the system of quotas constitutes a mechanism for regulating the market in the sugar sector aiming to ensure the attainment of public interest objectives. (33) This Regulation should, therefore, also enable the Commission to adjust the quotas to a sustainable level after the termination, in 2010, of the restructuring fund established by Council Regulation (EC) No 320/2006 of 20 February 2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community ( 33 ). (34) In the light of the need to allow for a certain amount of national flexibility in relation to the structural adjustment of the processing industry and of beet and cane growing during the period in which the quotas are to be applied, the possibility for Member States to be allowed to alter the quotas of undertakings within certain limits whilst not restricting the operation of the restructuring fund as an instrument should be maintained. (35) The CMO for sugar provided that, in order to avoid that surplus sugar distorts the sugar market, the Commission should be enabled, according to certain criteria, to provide for carrying forward the surplus sugar, isoglucose or inulin syrup to be treated as quota production of the following marketing year. Moreover, if, for certain quantities, the applicable conditions are not met, it also provided for a levy on the surplus in order to avoid the accumulation of these quantities threatening the market situation. These provisions should be maintained. (36) The main purpose of the milk quota system of reducing the imbalance between supply and demand on the respective market and the resulting structural surpluses, thereby achieving a better market equilibrium, still prevails. The application of a levy to quantities of milk collected or sold for direct consumption above a certain guarantee threshold should, therefore, be maintained. In line with the purpose of this Regulation, there is, to a certain extent, a need in particular for terminological harmonisation between the sugar and milk-quota schemes, whilst fully preserving their legal status quo. It therefore seems appropriate to harmonise the terminology in the milk sector with that in the sugar sector. The terms ’national reference quantity’ and ’individual reference quantity’ in Regulation (EC) No 1788/2003 should, therefore, be replaced by the terms ’national quota’ and ’individual quota’ whilst retaining the legal notion that is being defined. (37) In substance, the milk quota scheme in this Regulation should be shaped according to Regulation (EC) No 1788/2003. In particular, the distinction between deliveries and direct sales should be maintained and the scheme should be applied on the basis of individual representative fat contents and a national reference fat content. Farmers should be authorised under certain conditions to temporarily transfer their individual quota. Moreover the principle should be maintained that when a farm is sold, leased or transferred by inheritance, the corresponding quota is transferred to the purchaser, tenant or heir together with the relevant land, while the exceptions to the principle that quotas are tied to farms in order to continue the restructuring of milk production and improve the environment should be maintained. In line with the various types of transfer of quotas and using objective criteria, the provisions authorising Member States to place part of the transferred quantities in the national reserve should also be maintained. (38) The surplus levy should be set at a dissuasive level and be payable by the Member States as soon as the national quota is exceeded. The Member State should then divide the burden of payment among the producers who have contributed to the overrun. Those producers should be liable vis-à-vis the Member State for payment of their contribution to the levy due by virtue of the fact of having overrun their available quantity. Member States should pay to the European Agricultural Guarantee Fund (EAGF) the levy corresponding to the overrun of their national quota, reduced by a flat-rate amount of 1 % in order to take account of cases of bankruptcy or the definitive inability of certain producers to make their contribution to the payment of the levy due. (39) Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy ( 34 ) qualifies the proceeds flowing from the application of the additional levy in the dairy sector as ’assigned revenue’ which has to be paid to the Community budget and, in the event of reuse, has to be used exclusively to finance expenditure under the EAGF or the European Agricultural Fund for Rural Development (EAFRD). Article 22 of Regulation (EC) No 1788/2003 according to which levy proceeds are considered as intervention to stabilise agricultural markets and are to be applied to financing expenditure in the milk sector, has therefore become obsolete and should not be incorporated in this Regulation. (40) Various CMOs have provided for different kinds of aid schemes. (41) The CMOs for dried fodder and for flax and hemp provided for processing aids for these sectors as a means to govern the internal market in respect of the sectors concerned. These provisions should be maintained. (42) In view of the special market situation for cereals and potato starch the CMO for cereals contained provisions which allowed the granting of a production refund if that proves necessary. The production refund should be of such a nature that the basic products used by the industry concerned can be made available to it at a lower price than that resulting from the application of the common prices. The CMO for sugar established the possibility of the granting of a production refund in cases where, with regard to the manufacturing of certain industrial, chemical or pharmaceutical products the need arises to take measures aimed at making available certain sugar products. These provisions should be maintained. (43) To contribute to balancing the milk market and to stabilise the market prices for milk and milk products, measures are needed to increase the possibility of disposing of milk products. The CMO for milk and milk products therefore provided for the grant of aids for the marketing of certain milk products with a view to specific uses and destinations. Moreover, that CMO provided that, in order to stimulate the consumption of milk by young people, the Community should defray a part of the expenditure occasioned by granting aid for the supply of milk to pupils in schools. These provisions should be maintained. (44) Community finance, consisting of the percentage of direct aid that Member States are allowed to withhold in accordance with Article 110i(4) of Regulation (EC) No 1782/2003, is required to encourage approved operator organisations to draw up work programmes for the purpose of improving the production quality of olive oil and table olives. In that context, the CMO for olive oil and table olives provided for Community support to be allocated in accordance with the priorities given to the activities undertaken within the work programmes in question. These provisions should be maintained. (45) A Community tobacco fund financed by certain deductions from aid schemes in that sector was established under Regulation (EEC) No 2075/92 with a view to carrying out various measures in respect of that sector. The year 2007 is the last in which deductions from the aid scheme provided for in Chapter 10c of Title IV of Regulation (EC) No 1782/2003 would be made available to the Community Tobacco Fund. Whilst the financing of the fund will expire prior to the entry into force of this Regulation, Article 13 of Regulation (EEC) No 2075/92 should nevertheless be maintained to serve as a legal basis for the multiannual programmes that may be financed by the Community Tobacco Fund. (46) Beekeeping, being a sector of agriculture, is characterised by the diversity of production conditions and yields and the dispersion and variety of economic operators, both at the production and marketing stages. Moreover, in view of the spread of varroasis in several Member States in recent years and the problems which that disease causes for honey production, action by the Community continues to be necessary as varroasis cannot be completely eradicated and is to be treated with approved products. Given such circumstances and in order to improve the production and marketing of apiculture products in the Community, national programmes should be drawn up every three years, comprising technical assistance, control of varroasis, rationalisation of transhumance, management of the restocking of hives in the Community, and cooperation on research programmes on beekeeping and apiculture products with a view to improving the general conditions for the production and marketing of apiculture products. Those national programmes should be partly financed by the Community. (47) Regulation (EC) No 1544/2006 replaced all national silkworm aids by a Community aid scheme for silkworm rearing which takes the form of a fixed sum per box of silkworm eggs used. (48) As the policy considerations which led to the introduction of the abovementioned aid schemes for beekeeping and silkworm rearing still persist, these aid schemes should be incorporated in the framework of this Regulation. (49) The application of standards for the marketing of agricultural products can contribute to improving the economic conditions for the production and marketing as well as the quality of such products. The application of such standards is therefore in the interest of producers, traders and consumers. Accordingly, within the CMOs for bananas, olive oil and table olives, live plants, eggs and poultrymeat, marketing standards were put in place which relate, in particular, to quality, grading, weight, sizing, packaging, wrapping, storage, transport, presentation, origin and labelling. It is appropriate to maintain that approach under this Regulation. (50) Under the CMOs for olive oil and table olives and for bananas the Commission has, so far, been entrusted with the adoption of the provisions on marketing standards. Given their detailed technical character and the need to constantly improve their effectiveness and to adapt them to evolving trade practices, it is appropriate to extend this approach to the live plants sectors while specifying the criteria to be taken into account by the Commission in setting out the relevant rules. Moreover, special measures, in particular up-to-date methods of analysis and other measures to determine the characteristics of the standards concerned, may need to be adopted to avoid abuses as regards the quality and authenticity of the products presented to consumers and the important disturbances on the markets such abuses may entail. (51) Several legal instruments have been put in place to regulate the marketing and designation of milk, milk products and fats. They pursue the objective of improving the position of milk and milk products on the market on the one hand and ensuring a fair competition between spreadable fats of milk and non-milk origin on the other, both to the benefit of producers and consumers. The rules contained in Council Regulation (EEC) No 1898/87 of 2 July 1987 on the protection of designations used in marketing milk and milk products ( 35 ) are aimed at protecting the consumer and at establishing conditions of competition between milk products and competing products in the field of product designation, labelling and advertising which avoid any distortion. Council Regulation (EC) No 2597/97 of 18 December 1997 laying down additional rules on the common organisation of the market in milk and milk products for drinking milk ( 36 ) provides for rules aimed at guaranteeing a high quality of drinking milk and products which fulfil consumers' needs and wishes, thus stabilising the market concerned and providing the consumer with high quality drinking milk. Council Regulation (EC) No 2991/94 of 5 December 1994 laying down standards for spreadable fats ( 37 ) sets out the marketing standards for the milk and non-milk products concerned with a clear and distinct classification accompanied by rules on designation. In line with the objectives of the present Regulation, these rules should be maintained. (52) Concerning the eggs and poultrymeat sectors, provisions exist in relation to marketing standards and, in certain cases, to production. These provisions are contained in Council Regulation (EC) No 1028/2006 of 19 June 2006 on marketing standards for eggs ( 38 ), Council Regulation (EEC) No 1906/90 of 26 June 1990 on certain marketing standards for poultrymeat ( 39 ) and Council Regulation (EEC) No 2782/75 of 29 October 1975 on the production and marketing of eggs for hatching and of farmyard poultry chicks ( 40 ). The essential rules contained in those Regulations should be incorporated into this Regulation. (53) Regulation (EC) No 1028/2006 provides that marketing standards for eggs should, in principle, apply to all eggs of hens of the species Gallus gallus, marketed in the Community and, as a general rule, also to those intended for export to third countries. It also draws a distinction between eggs suitable and eggs not suitable for direct human consumption by the creation of two quality classes of eggs and lays down provision to ensure appropriate information to the consumer as regards quality and weight grades and the identification of the farming method used. Finally, that Regulation provides for special rules in respect of eggs imported from third countries according to which special provisions in force in certain third countries may justify derogations from the marketing standards if their equivalence to Community legislation is guaranteed. (54) As regards poultrymeat, Regulation (EEC) No 1906/90 determines that marketing standards should, in principle, apply to certain types of poultrymeat suitable for human consumption marketed in the Community and that poultrymeat intended for export to third countries should, however, be excluded from the application of the marketing standards. That Regulation provides for the grading of poultrymeat in two categories according to conformation and appearance and the conditions under which the meat is to be offered for sale. (55) According to those Regulations, Member States should be able to exempt from the application of those marketing standards eggs and poultrymeat, respectively, sold through certain forms of direct sale from the producer to the final consumer where small quantities are involved. (56) Regulation (EC) No 2782/75 establishes special rules concerning the marketing and transport of eggs for hatching and of farmyard poultry chicks as well as for the incubation of eggs for hatching. That Regulation provides, in particular, for the individual marking of eggs for hatching used for chick production, for the way of packing and the kind of packing material for transport. However, it excludes small sized pedigree breeding and other breeding establishments from the compulsory application of the standards laid down therein. (57) In line with the objectives of the present Regulation, those rules should be maintained without touching upon their substance. However, further provisions contained in those Regulations which are of technical character should be dealt with in implementing rules to be adopted by the Commission. (58) As it has been the case so far under the CMO for hops, a quality policy should be followed throughout the Community by implementing provisions concerning certification together with rules prohibiting, as a general rule, the marketing of products for which a certificate has not been issued, or, in the case of imported products, those which do not comply with equivalent quality characteristics. (59) The descriptions and definitions of olive oil and the denomination are an essential element of the market order with respect to setting quality standards and providing consumers with adequate information on the product and should be maintained in this Regulation. (60) One of the aforementioned aid schemes contributing to balancing the market in milk and milk products and to stabilising the market prices in that sector consists of an aid scheme, contained in Regulation (EC) No 1255/1999, for the processing of skimmed milk into casein and caseinates. Council Regulation (EEC) No 2204/90 of 24 July 1990 laying down additional general rules on the common organisation of the market in milk and milk products as regards cheese ( 41 ) provided for rules concerning the use of casein and caseinates in the manufacture of cheese in order to counter adverse effects that may result from that aid scheme, taking into account the vulnerability of cheese to substitution operations with casein and caseinates, thereby intending to stabilise the market. These rules should be incorporated into this Regulation. (61) The processing of certain agricultural raw materials into ethyl alcohol is closely linked with the economy of those raw materials. This can contribute considerably to enhancing their value and may be of particular economic and social importance for the economy of certain regions of the Community or may be a significant source of income for the producers of the raw materials concerned. It also permits the disposal of products of unsatisfactory quality and short-term surpluses that may cause temporary problems in certain sectors. (62) In the hops, olive oil and table olives, tobacco and silkworm sectors the legislation focuses on various kinds of organisations in order to achieve policy aims in particular with a view to stabilising the markets in, and of improving and guaranteeing the quality of, the products concerned through joint action. The provisions which have regulated that system of organisations so far are based on organisations which are recognised by the Member States or, under certain conditions, by the Commission, in accordance with provisions to be adopted by the Commission. That system should be maintained and the provisions as they have been in place so far should be harmonised. (63) To support certain activities of inter-branch organisations which are of particular interest in the light of the current rules concerning the CMO for tobacco, provision should be made for the rules adopted by an inter-branch organisation for its members to be extended, subject to certain conditions, to all non-member producers and groups in one or more regions. The same should also apply in respect of other activities of inter-branch organisations which are of general economic or technical interest for the tobacco sector so as to be of benefit to all persons active in the branches in question. There should be close cooperation between the Member States and the Commission. The Commission should have permanent monitoring powers, particularly as regards the agreements and concerted practices adopted by such organisations. (64) In certain sectors apart from those for which current rules provide for the recognition of producer or interbranch organisations, Member States may wish to recognise such kinds of organisations based on national law as far as this is compatible with Community law. This possibility should therefore be clarified. Moreover, rules should be adopted stating that the recognition of producer and interbranch organisations in accordance with the current Regulations remains valid after the adoption of this Regulation. (65) A single Community market involves a trading system at the external borders of the Community. That trading system should include import duties and export refunds and should, in principle, stabilise the Community market. The trading system should be based on the undertakings accepted under the Uruguay Round of multilateral trade negotiations. (66) Monitoring the volume in trade in agricultural products with third countries in the CMOs for the cereals, rice, sugar, seeds, olive oil and table olives, flax and hemp, beef and veal, milk and milk products, pigmeat, sheepmeat and goatmeat, eggs, poultrymeat, live plants and agricultural ethyl alcohol sectors, has, so far, both for imports and exports been subject to either compulsory licence systems or to systems where the Commission was empowered to provide for licence requirements. (67) Monitoring trade flows is foremost a matter of management which should be addressed in a flexible way. Against this background and in the light of the experience gained in the CMOs where the management of licences is already conferred on the Commission, it appears appropriate to extend this approach to all sectors where import and export licences are being used. The decision on the introduction of licence requirements should be made by the Commission taking account of the need for import licences for the management of the markets concerned and, in particular, for monitoring the imports of the products in question. (68) For the most part, the customs duties applicable to agricultural products under the World Trade Organisation (WTO) agreements are laid down in the Common Customs Tariff. However, for some products of the cereals and rice sectors, the introduction of additional mechanisms makes it necessary to provide for the possibility to adopt derogations. (69) In order to prevent or counteract adverse effects on the Community market which could result from imports of certain agricultural products, imports of such products should be subject to payment of an additional duty, if certain conditions are fulfilled. (70) It is appropriate, under certain conditions, to confer on the Commission the power to open and administer import tariff quotas resulting from international agreements concluded in accordance with the Treaty or from other acts of the Council. (71) Council Regulation (EEC) No 2729/75 of 29 October 1975 on the import levies on mixtures of cereals, rice and broken rice ( 42 ) aims to ensure the proper working of the duty system for imports of mixtures of cereals, rice and broken rice. These rules should be included in this Regulation. (72) The Community has concluded several preferential market access arrangements with third countries which allow those countries to export cane sugar to the Community under favourable conditions. The CMO for sugar provided for the evaluation of the refiners' need for sugar for refining and, under certain conditions, the reservation of import licences to specialised users of significant quantities of imported raw cane sugar, which are considered to be full-time refiners in the Community. These provisions should be maintained. (73) In order to prevent illicit crops from disturbing the CMO for hemp for fibre, the respective Regulation provided for checks on imports of hemp and hemp seed to ensure that such products offer certain guarantees with regard to the tetrahydrocannabinol content. In addition, imports of hemp seed intended for uses other than sowing were subject to a control system which makes provision for the authorisation of the importers concerned. These provisions should be maintained. (74) A quality policy is being followed throughout the Community as regards products of the hops sector. In the case of imported products, the provisions ensuring that only products complying with equivalent minimum quality characteristics are imported should be incorporated in this Regulation. (75) The customs duty system makes it possible to dispense with all other protective measures at the external frontiers of the Community. The internal market and duty mechanism could, in exceptional circumstances, prove to be inadequate. In such cases, in order not to leave the Community market without defence against disturbances that might ensue, the Community should be able to take all necessary measures without delay. Such measures should comply with the international commitments of the Community. (76) To ensure the proper functioning of the CMOs and, in particular, avoid market disturbance, the CMOs for a number of products traditionally provided for the possibility of prohibiting the use of inward and outward processing arrangements. This possibility should be maintained. Moreover, experience shows that where markets are disturbed or threatened to be disturbed by the use of these arrangements, action needs to be taken without major delays. The Commission should therefore be entrusted with the relevant powers. It is thus appropriate to enable the Commission to suspend the use of inward and outward processing arrangements in such situations. (77) Provisions for granting refunds on exports to third countries, based on the difference between prices within the Community and on the world market, and falling within the limits set by the Community's commitments in the WTO, should serve to safeguard the Community's participation in international trade in certain products falling within this Regulation. Subsidised exports should be subject to limits in terms of value and quantity. (78) Compliance with the limits in terms of value should be ensured at the time when the export refunds are fixed through the monitoring of payments under the rules relating to the EAGF. Monitoring can be facilitated by the compulsory advance fixing of export refunds, while allowing the possibility, in the case of differentiated refunds, of changing the specified destination within a geographical area to which a single export refund rate applies. In the case of a change of destination, the export refund applicable to the actual destination should be paid, with a ceiling on the amount applicable to the destination fixed in advance. (79) Compliance with the quantity limits should be ensured by a reliable and effective system of monitoring. To that end, the granting of export refunds should be made subject to an export licence. Export refunds should be granted up to the limits available, depending on the particular situation of each product concerned. Exceptions to that rule should be permitted only for processed products not listed in Annex I to the Treaty, to which volume limits do not apply. Provision should be made for a derogation from strict compliance with management rules where exports benefiting from export refunds are not likely to exceed the quantity laid down. (80) In the case of the export of live bovine animals, provision should be made whereby export refunds are granted and paid only if the provisions established in Community legislation concerning animal welfare, in particular those concerning the protection of animals during transport, are respected. (81) Agricultural products may in certain cases benefit from special import treatment in third countries if the products comply with certain specifications and/or price conditions. Administrative cooperation between the authorities in the importing third country and the Community is necessary to ensure the correct application of such a system. To that end the products should be accompanied by a certificate issued in the Community. (82) Exports of flowering bulbs to third countries are of considerable economic importance to the Community. The continuation and development of such exports may be ensured by stabilising prices in this trade. Provision should therefore be made for minimum export prices for the products in question. (83) In accordance with Article 36 of the Treaty the provisions of the chapter of the Treaty relating to rules on competition shall apply to production of and trade in agricultural products only to the extent determined by the Council within the framework of Article 37(2) and (3) of the Treaty and in accordance with the procedure laid down therein. In the various CMOs the provisions on state aid had been largely declared applicable. The application in particular of the Treaty rules applying to undertakings was furthermore defined in Council Regulation (EC) No 1184/2006 of 24 July 2006 applying certain rules on competition to the production of, and trade in, agricultural products ( 43 ). In line with the objective of creating one comprehensive set of market policy rules it is appropriate to incorporate the provisions concerned in this Regulation. (84) The rules on competition relating to the agreements, decisions and practices referred to in Article 81 of the Treaty and to the abuse of dominant positions should be applied to the production of, and trade in, agricultural products, in so far as their application does not impede the functioning of national organisations of agricultural markets or jeopardise the attainment of the objectives of the CAP. (85) A special approach is warranted in the case of farmers' organisations the particular objective of which is the joint production or marketing of agricultural products or the use of joint facilities, unless such joint action excludes competition or jeopardises the attainment of the objectives of Article 33 of the Treaty. (86) In order both to avoid compromising the development of a CAP and to ensure legal certainty and non-discriminatory treatment of the undertakings concerned, the Commission should have the sole power, subject to review by the Court of Justice, to determine whether agreements, decisions and practices referred to in Article 81 of the Treaty are compatible with the objectives of the CAP. (87) The proper working of the single market based on common prices would be jeopardised by the granting of national aid. Therefore, the provisions of the Treaty governing State aid should, as a general rule, apply to the products covered by this Regulation. In certain situations exceptions should be allowed. Where such exceptions apply, the Commission should, however, be in a position to draw up a list of existing, new or proposed national aids, to make appropriate observations to the Member States and to propose suitable measures to them. (88) Since their accession, Finland and Sweden may, due to the specific economic situation of the production and marketing of reindeer and reindeer products, grant aids in that regard. Moreover, Finland may, subject to authorisation by the Commission, grant aid respectively for certain quantities of seeds and for certain quantities of cereal seed produced solely in Finland, because of its specific climatic conditions. These exceptions need to be maintained. (89) In Member States with a significant reduction of sugar quota, sugar beet growers will face particularly severe adaptation problems. In such cases the transitional Community aid to sugar beet growers provided for in Chapter 10f of Title IV of Regulation (EC) No 1782/2003 will not suffice to fully address the beet growers' difficulties. Therefore, Member States having reduced their quota by more than 50 % of the sugar quota fixed on 20 February 2006 in Annex III to Regulation (EC) No 318/2006 should be authorised to grant State aid to sugar beet growers during the period of application of the transitional Community aid. To ensure that Member States do not grant State aid exceeding the needs of their sugar beet growers, the determination of the total amount of the State aid concerned should continue to be made subject to Commission approval, except in the case of Italy where the maximum need for the most productive sugar beet growers to adapt to the market conditions after the reform has been estimated at EUR 11 per tonne of sugar beet produced. Moreover, due to the particular problems expected to arise in Italy, the provision for arrangements allowing sugar beet growers to benefit directly or indirectly from the State aid granted should be maintained. (90) In Finland sugar beet growing is subject to particular geographical and climatic conditions which will adversely affect the sector beyond the general effects of the sugar reform. For this reason the provision made in the CMO for sugar authorising that Member State, on a permanent basis, to grant its sugar beet growers an adequate amount of State aid should be maintained. (91) Given the particular situation in Germany, where national support is currently granted to a large number of smaller producers of alcohol under the specific conditions of the German alcohol monopoly, it is necessary to permit, during a limited period of time, the continuation of the granting of such support. It is also necessary to provide for the submission of a report by the Commission on the functioning of that derogation, at the end of that period, accompanied by any appropriate proposals. (92) If a Member State wishes to support, on its territory, measures promoting the consumption of milk and milk products in the Community, provision should be made for the possibility of financing such measures by a promotional levy on milk producers at national level. (93) In order to take account of possible developments in dried fodder production, the Commission should, before 30 September 2008, on the basis of an evaluation of the CMO for dried fodder, present a report to the Council on that sector. The report should be accompanied, if necessary, by appropriate proposals. Moreover, the Commission should report at regular intervals to the European Parliament and the Council on the aid scheme applied in respect of the apiculture sector. (94) Adequate information is needed about the present state of the market in hops within the Community and the prospects for its development. Provision should therefore be made for the registration of all supply contracts regarding hops produced within the Community. (95) It is appropriate to provide, under certain conditions and for certain products, for measures to be taken in cases where disturbances are occurring or are likely to occur due to significant changes in the internal market prices or as regards quotations or prices on the world market. (96) It is necessary to establish a framework of specific measures for ethyl alcohol of agricultural origin so that economic data can be collected and statistical information analysed for the purpose of monitoring the market. In so far as the market in ethyl alcohol of agricultural origin is linked to the market in ethyl alcohol in general, information also needs to be made available concerning the market in ethyl alcohol of non-agricultural origin. (97) Expenditure incurred by the Member States as a result of the obligations arising from the application of this Regulation should be financed by the Community in accordance with Regulation (EC) No 1290/2005. (98) The Commission should be authorised to adopt the necessary measures to solve specific practical problems in case of emergency. (99) Since the common markets in agricultural products are continuously evolving, the Member States and the Commission should keep each other informed of relevant developments. (100) In order to avoid abuse of any of the advantages provided for in this Regulation, such advantages should not be granted or, as the case may be, should be withdrawn, in cases where it is found that the conditions for obtaining any of those advantages have been created artificially, contrary to the objectives of this Regulation. (101) To guarantee compliance with the obligations laid down by this Regulation, there is a need for controls and the application of administrative measures and administrative penalties in case of non-compliance. Power should, therefore, be conferred on the Commission to adopt the corresponding rules, including those concerning the recovery of undue payments and the reporting obligations of the Member States resulting from the application of this Regulation. (102) The measures necessary for the implementation of this Regulation should, as a general rule, be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission ( 44 ). However, in respect of certain measures under this Regulation which relate to Commission powers, require swift action or are of a purely administrative nature, the Commission should be empowered to act on its own. (103) Due to the incorporation into this Regulation of certain elements of the CMOs for fruit and vegetables and processed fruit and vegetable products and wine, certain amendments should be made to these CMOs. (104) This Regulation incorporates provisions concerning the applicability of the competition rules under the Treaty. Such provisions have, so far, been dealt with in Regulation (EC) No 1184/2006. The scope of that Regulation should be amended so that its provisions only apply to products listed in Annex I to the Treaty that are not covered by this Regulation. (105) This Regulation incorporates the provisions contained in the basic regulations listed in recitals (2) and (3) with the exception of those contained in Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 1493/1999. Moreover, this Regulation incorporates the provisions of the following Regulations: — Council Regulation (EEC) No 2729/75 of 29 October 1975 on the import levies on mixtures of cereals, rice and broken rice, — Council Regulation (EEC) No 2763/75 of 29 October 1975 laying down general rules for granting private storage aid for pigmeat ( 45 ), — Council Regulation (EEC) No 2782/75 of 29 October 1975 on the production and marketing of eggs for hatching and of farmyard poultry chicks, — Council Regulation (EEC) No 707/76 of 25 March 1976 on the recognition of producer groups of silkworm rearers ( 46 ), — Council Regulation (EEC) No 1055/77 of 17 May 1977 on the storage and movement of products bought in by an intervention agency ( 47 ), — Council Regulation (EEC) No 2931/79 of 20 December 1979 on the granting of assistance for the exportation of agricultural products which may benefit from a special import treatment in a third country ( 48 ), — Council Regulation (EEC) No 3220/84 of 13 November 1984 determining the Community scale for grading pig carcasses, — Council Regulation (EEC) No 1898/87 of 2 July 1987 on the protection of designations used in marketing milk and milk products, — Council Regulation (EEC) No 3730/87 of 10 December 1987 laying down the general rules for the supply of food from intervention stocks to designated organisations for distribution to the most deprived persons in the Community, — Council Regulation (EEC) No 386/90 of 12 February 1990 on the monitoring carried out at the time of export of agricultural products receiving refunds or other amounts ( 49 ), — Council Regulation (EEC) No 1186/90 of 7 May 1990 extending the scope of the Community scale for the classification of carcasses of adult bovine animals, — Council Regulation (EEC) No 1906/90 of 26 June 1990 on certain marketing standards for poultrymeat, — Council Regulation (EEC) No 2204/90 of 24 July 1990 laying down additional general rules on the common organisation of the market in milk and milk products as regards cheese, — Council Regulation (EEC) No 2077/92 of 30 June 1992 concerning inter-branch organisations and agreements in the tobacco sector ( 50 ), — Council Regulation (EEC) No 2137/92 of 23 July 1992 concerning the Community scale for the classification of carcasses of ovine animals and determining the Community standard quality of fresh or chilled sheep carcasses, — Council Regulation (EC) No 2991/94 of 5 December 1994 laying down standards for spreadable fats, — Council Regulation (EC) No 2597/97 of 18 December 1997 laying down additional rules on the common organisation of the market in milk and milk products for drinking milk, — Council Regulation (EC) No 2250/1999 of 22 October 1999 concerning the tariff quota for butter of New Zealand origin ( 51 ), — Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector, — Council Regulation (EC) No 1028/2006 of 19 June 2006 on marketing standards for eggs, — Council Regulation (EC) No 1183/2006 of 24 July 2006 concerning the Community scale for the classification of carcasses of adult bovine animals. (106) These Regulations should therefore be repealed. In the interests of legal certainty and given the number of acts to be repealed by this Regulation and the number of acts adopted pursuant to or amended by those acts, it is appropriate to clarify that repeal does not affect the validity of any legal acts adopted on the basis of the repealed act or of any amendments to other legal acts made thereby. (107) This Regulation should, as a general rule, start to apply on 1 January 2008. However, in order to ensure that the new provisions of this Regulation do not interfere with the ongoing 2007/2008 marketing year, a later date of application should be provided for in respect of those sectors for which marketing years are foreseen. This Regulation should therefore only apply as of the start of the 2008/2009 marketing year for the sectors concerned. As a consequence, the respective regulations governing those sectors should continue to apply until the end of the corresponding marketing year 2007/2008. (108) Moreover, in respect of certain other sectors for which no marketing years are foreseen, a later date of application should also be provided for in order to ensure the smooth transition from the existing CMOs to this Regulation. As a consequence, the regulations governing the existing CMOs for those sectors should continue to apply until the later date of application provided for in this Regulation. (109) As regards Regulation (EC) No 386/90, the competence for the adoption of the substance dealt with by that Regulation is being transferred to the Commission by this Regulation. Moreover, Regulations (EEC) No 3220/84, (EEC) No 1186/90, (EEC) No 2137/92 and (EC) No 1183/2006 are being repealed by this Regulation whilst only certain provisions of those Regulations are being incorporated into this Regulation. Further details contained in those Regulations will therefore have to be dealt with in implementing rules yet to be adopted by the Commission. Some more time should be allowed for the Commission to establish the respective rules. The mentioned Regulations should therefore continue to apply until 31 December 2008. (110) The following acts of the Council have become redundant and should be repealed: — Council Regulation (EEC) No 315/68 of 12 March 1968 fixing quality standards for flowering bulbs, corms and tubers ( 52 ), — Council Regulation (EEC) No 316/68 of 12 March 1968 fixing quality standards for fresh cut flowers and fresh ornamental foliage ( 53 ), — Council Regulation (EEC) No 2517/69 of 9 December 1969 laying down certain measures for reorganising Community fruit production ( 54 ), — Council Regulation (EEC) No 2728/75 of 29 October 1975 on aids for the production of and trade in potato starch and potatoes for starch manufacture ( 55 ), — Council Regulation (EEC) No 1358/80 of 5 June 1980 fixing the guide price and the intervention price for adult bovine animals for the 1980/81 marketing year and introducing a Community grading scale for carcasses of adult bovine animals ( 56 ), — Council Regulation (EEC) No 4088/87 of 21 December 1987 fixing conditions for the application of preferential customs duties on imports of certain flowers originating in Cyprus, Israel and Jordan ( 57 ), — Council Decision 74/583/EEC of 20 November 1974 on the monitoring of sugar movements ( 58 ). (111) The transition from the arrangements provided for in the provisions and Regulations repealed by this Regulation could give rise to difficulties which are not dealt with in this Regulation. In order to deal with such difficulties, the Commission should be enabled to adopt transitional measures, Whereas: HAS ADOPTED THIS REGULATION:







TABLE OF CONTENTS PART I INTRODUCTORY PROVISIONS PART II INTERNAL MARKET TITLE I MARKET INTERVENTION CHAPTER I Public intervention and private storage Section I General provisions Section II Public intervention Subsection I General provisions Subsection II Opening of buying-in Subsection III Intervention price Subsection IV Disposal from intervention Section III Private storage Subsection I Mandatory aid Subsection II Optional aid Section IV Common provisions CHAPTER II Special intervention measures Section I Exceptional market support measures Section II Measures in the cereals and rice sectors Section III Measures in the sugar sector Section IV Adjustment of supply CHAPTER III Systems of production limitation Section I General provisions Section II Sugar Subsection I Quota allocation and management Subsection II Quota overrun Section III Milk Subsection I General provisions Subsection II Quota allocation and management Subsection III Quota overrun Section IIIa Potato starch quotas Section IV Procedural rules concerning sugar, milk and potato starch quotas Section IVa Production potential in the wine sector Subsection I Unlawful plantings Subsection II Transitional planting right regime Subsection III Grubbing up scheme CHAPTER IV Aid schemes Section I Aid for processing Subsection I Dried fodder Subsection II Flax grown for fibre Subsection III Potato starch Section II Production refund Section III Aids in the milk and milk products sector Section IIIa Aids in the hops sector Section IV Aids in the olive oil and table olives sector Section IVa Aids in the fruit and vegetables sector Subsection I Producer groups Subsection II Operational funds and operational programmes Subsection IIa School Fruit Scheme Subsection III Procedural provisions Section IVb Support programmes in the wine sector Subsection I Introductory provisions Subsection II Submission and content of support programmes Subsection III Specific support measures Subsection IV Procedural provisions Section V Community Tobacco Fund Section VI Special provisions for the apiculture sector Section VII Aids in the silkworm sector TITLE II RULES CONCERNING MARKETING AND PRODUCTION CHAPTER I Rules concerning marketing and production Section I Marketing rules Section Ia Designations of origin, geographical indications and traditional terms in the wine sector Subsection I Designations of origin and geographical indications Subsection II Traditional terms Section Ib Labelling and presentation in the wine sector Section II Conditions for production Section IIa Production rules in the wine sector Subsection I Wine grape varieties Subsection II Oenological practices and restrictions Section III Procedural rules CHAPTER II Producer organisations, interbranch organisations, operator organisations Section I General principles Section Ia Rules concerning producer and interbranch organisations and producer groups in the fruit and vegetables sector Subsection I Rules of association and recognition of producer organisations Subsection II Association of producer organisations and producer groups Subsection III Extension of rules to producers in an economic area Subsection IV Interbranch organisations in the fruit and vegetables sector Section Ib Rules concerning producer and inter-branch organisations in the wine sector Section II Rules concerning interbranch organisations in the tobacco sector Section IIa Rules concerning producer organisations and interbranch organisations in the milk and milk products sector Section III Procedural rules PART III TRADE WITH THIRD COUNTRIES CHAPTER I General provisions CHAPTER II Imports Section I Import licences Section II Import duties and levies Section III Import quota management Section IV Special provisions for certain products Subsection I Special provisions for imports in respect of the cereals and rice sectors Subsection II Preferential import arrangements for sugar Subsection III Special provisions for imports of hemp Subsection IV Special provisions for imports of hops Subsection V Special provisions for imports of wine Section V Safeguard and inward processing CHAPTER III Exports Section I Export licences Section II Export refunds Section III Export quota management in the milk and milk products sector Section IV Special imort treatment by third countries Section V Special provisions for live plants Section VI Outward processing PART IV COMPETITION RULES CHAPTER I Rules applying to undertakings CHAPTER II State aid rules PART V SPECIFIC PROVISIONS FOR INDIVIDUAL SECTORS PART VI GENERAL PROVISIONS PART VII IMPLEMENTING, TRANSITIONAL AND FINAL RULES CHAPTER I Implementing provisions CHAPTER II Transitional and final provisions ANNEX I LIST OF PRODUCTS REFERRED TO IN ARTICLE 1(1) Part I: Cereals Part II: Rice Part III: Sugar Part IV: Dried fodder Part V: Seeds Part VI: Hops Part VII: Olive oil and table olives Part VIII: Flax and hemp grown for fibre Part IX: Fruit and vegetables Part X: Processed fruit and vegetable products Part XI: Bananas Part XII: Wine Part XIII: Live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage Part XIV: Raw tobacco Part XV: Beef and teal Part XVI: Milk and milk products Part XVII: Pigmeat Part XVIII: Sheepmeat and goatmeat Part XIX: Eggs Part XX: Poultrymeat Part XXI: Other products ANNEX II LIST OF PRODUCTS REFERRED TO IN ARTICLE 1(3) Part I: Ethyl alcohol of agricultural origin Part II: Apiculture products Part III: Silkworms ANNEX III DEFINITIONS REFERRED TO IN ARTICLE 2(1) Part I: Definitions concerning the rice sector Part II: Definitions concerning the sugar sector Part III: Definitions concerning the hops sector Part IIIa: Definitions concerning the wine sector Part IV: Definitions concerning the beef and veal sector Part V: Definitions concerning the milk and milk products sector Part VI: Definitions concerning the eggs sector Part VII: Definitions concerning the poultrymeat sector Part VIII: Definitions concerning the apiculture sector ANNEX IV STANDARD QUALITY OF RICE AND SUGAR A. Standard quality for paddy rice B. Standard qualities for sugar ANNEX V COMMUNITY SCALES FOR THE CLASSIFICATION OF CARCASSES REFERRED TO IN ARTICLE 42 A. Community scale for the classification of carcasses of adult bovine animals B. Community scale for the classification of pig carcasses C. Community scale for the classification of sheep carcasses ANNEX VI NATIONAL AND REGIONAL QUOTAS from the 2010/2011 marketing year onwards ANNEX VII SUPPLEMENTARY QUOTAS FOR ISOGLUCOSE REFERRED TO IN ARTICLE 58(2) ANNEX VIIa CALCULATION OF THE PERCENTAGE TO BE ESTABLISHED IN ACCORDANCE WITH THE SECOND SUBPARAGRAPH OF ARTICLE 59(2) ANNEX VIIb CALCULATION OF THE PERCENTAGE APPLICABLE TO UNDERTAKINGS IN ACCORDANCE WITH THE SECOND SUBPARAGRAPH OF ARTICLE 59(2) ANNEX VIIc CALCULATION OF THE COEFFICIENT TO BE ESTABLISHED IN ACCORDANCE WITH ARTICLE 52A(1) ANNEX VIII DETAILED RULES ON TRANSFERS OF SUGAR OR ISOGLUCOSE QUOTAS IN ACCORDANCE WITH ARTICLE 60 ANNEX IX NATIONAL QUOTAS AND RESTRUCTURING RESERVE QUANTITIES REFERRED TO IN ARTICLE 66 ANNEX X REFERENCE FAT CONTENT REFERRED TO IN ARTICLE 70 ANNEX Xa POTATO STARCH QUOTAS PER MARKETING YEAR AS REFERRED TO IN ARTICLE 84a ANNEX Xb BUDGET FOR SUPPORT PROGRAMMES (REFERRED TO IN ARTICLE 103N(1)) ANNEX Xc BUDGET ALLOCATION FOR RURAL DEVELOPMENT (REFERRED TO IN ARTICLE 190A(3)) ANNEX Xd BUDGET FOR THE GRUBBING-UP SCHEME ANNEX Xe AREAS WHICH MEMBER STATES MAY DECLARE INELIGIBLE FOR THE GRUBBING-UP SCHEME (REFERRED TO IN ARTICLE 85U(1), (2) AND (5)) ANNEX XI A.I. Apportionment of the maximum guaranteed quantity for long flax fibre among the Member States referred to in Article 94(1) A.II. Apportionment of the maximum guaranteed quantity for the marketing year 2008/2009 for short flax and hemp fibre among the Member States referred to in Article 94(1a)Répartition entre les États membres de la quantité maximale garantie pour la campagne de commercialisation 2008/2009 pour les fibres courtes de lin et pour les fibres de chanvre visée à l'article 94, paragraphe 1 bis A.III. Zones eligible for the aid referred to in Article 94a B. Apportionment of the maximum guaranteed quantity among the Member States referred to in Article 89 ANNEX XIa MARKETING OF THE MEAT OF BOVINE ANIMALS AGED 12 MONTHS OR LESS IN ACCORDANCE WITH ARTICLE 113B I. Definition II. Classification of bovine animals aged 12 months or less at the slaughterhouse III. Sales descriptions IV. Compulsory information on the label V. Optional information on the label VI. Recording VII. Official checks VIII. Meat imported from third countries IX. Penalties ANNEX XIb CATEGORIES OF GRAPEVINE PRODUCTS 1. Wine 2. New wine still in fermentation 3. Liqueur wine 4. Sparkling wine 5. Quality sparkling wine 6. Quality aromatic sparkling wine 7. Aerated sparkling wine 8. Semi-sparkling wine 9. Aerated semi-sparkling wine 10. Grape must 11. Partially fermented grape must 12. Partially fermented grape must extracted from raisined grapes 13. Concentrated grape must 14. Rectified concentrated grape must 15. Wine from raisined grapes 16. Wine of overripe grapes 17. Wine vinegar Appendix to Annex XIb Wine growing zones ANNEX XII DEFINITIONS AND DESIGNATIONS IN RESPECT OF MILK AND MILK PRODUCTS REFERRED TO IN ARTICLE 114(1) ANNEX XIII MARKETING OF MILK FOR HUMAN CONSUMPTION REFERRED TO IN ARTICLE 114(2) ANNEX XIV MARKETING STANDARDS FOR PRODUCTS OF THE EGGS AND POULTRYMEAT SECTORS REFERRED TO IN ARTICLE 116 A. Marketing standards for eggs of hens of the Gallus gallus species B. Marketing standards for poultrymeat C. Standards for the production and marketing of eggs for hatching and of farmyard poultry chicks ANNEX XV MARKETING STANDARDS APPLYING TO SPREADABLE FATS REFERRED TO IN ARTICLE 115 Appendix to Annex XV ANNEX XVa ENRICHMENT, ACIDIFICATION AND DE-ACIDIFICATION IN CERTAIN WINE-GROWING ZONES A. Enrichment limits B. Enrichment processes C. Acidification and de-acidification D. Processes ANNEX XVb RESTRICTIONS A. General B. Fresh grapes, grape must and grape juice C. Blending of wines D. By-products ANNEX XVI DESCRIPTIONS AND DEFINITIONS OF OLIVE OIL AND OLIVE POMAGE OILS REFERRED TO IN ARTICLE 118 ANNEX XVIa EXHAUSTIVE LIST OF RULES THAT MAY BE EXTENDED TO NON-MEMBER PRODUCERS PURSUANT TO ARTICLE 125F AND ARTICLE 125L ANNEX XVII IMPORT DUTIES FOR RICE REFERRED TO IN ARTICLES 137 AND 139 ANNEX XVIII VARIETIES OF BASMATI RICE REFERRED TO IN ARTICLE 138 ANNEX XIX STATES REFERRED TO IN ARTICLES 153(3) AND 154(1)(b) AND IN POINT 12 OF PART II OF ANNEX III ANNEX XX LIST OF GOODS OF THE CEREALS, RICE, SUGAR, MILK AND EGG SECTORS FOR THE PURPOSE OF ARTICLE 26(a)(ii) AND FOR THE GRANTING OF EXPORT REFUNDS REFERRED TO IN SECTION II OF CHAPTER III OF PART III Part I: Cereals Part II: Rice Part III: Sugar Part IV: Milk Part V: Eggs ANNEX XXI LIST OF CERTAIN GOODS CONTAINING SUGAR FOR THE PURPOSE OF THE GRANTING OF EXPORT REFUNDS REFERRED TO IN SECTION II OF CHAPTER III OF PART III ANNEX XXII CORRELATION TABLES REFERRED TO IN ARTICLE 202







PART I

INTRODUCTORY PROVISIONS

Article 1

Scope

1. This Regulation establishes a common organisation of the markets for the products of the following sectors, as provided further in Annex I:

(a) cereals, Part I of Annex I;

(b) rice, Part II of Annex I;

(c) sugar, Part III of Annex I;

(d) dried fodder, Part IV of Annex I;

(e) seeds, Part V of Annex I;

(f) hops, Part VI of Annex I;

(g) olive oil and table olives, Part VII of Annex I;

(h) flax and hemp, Part VIII of Annex I;

(i) fruit and vegetables, Part IX of Annex I;

(j) processed fruit and vegetables, Part X of Annex I;

(k) bananas, Part XI of Annex I;

(l) wine, Part XII of Annex I;

(m) live plants and products of floriculture, Part XIII of Annex I (hereinafter referred to as the live plants sector);

(n) raw tobacco, Part XIV of Annex I;

(o) beef and veal, Part XV of Annex I;

(p) milk and milk products, Part XVI of Annex I;

(q) pigmeat, Part XVII of Annex I;

(r) sheepmeat and goatmeat, Part XVIII of Annex I;

(s) eggs, Part XIX of Annex I;

(t) poultrymeat, Part XX of Annex I;

(u) other products, Part XXI of Annex I.

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3. This Regulation establishes specific measures for the following sectors as listed and, as the case may be, as further defined in Annex II:

(a) ethyl alcohol of agricultural origin, Part I of Annex II (hereinafter referred to as the agricultural ethyl alcohol sector);

(b) apiculture products, Part II of Annex II (hereinafter referred to as the apiculture sector);

(c) silkworms, Part III of Annex II.

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4. In respect of potatoes, fresh or chilled of CN code 0701, Chapter II of Part IV shall apply.

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Article 2

Definitions

1. For the purposes of application of this Regulation, the definitions concerning certain sectors as set out in Annex III shall apply.

2. For the purposes of this Regulation:

(a) ‘farmer’ shall mean a farmer as defined in Regulation (EC) No 1782/2003;

(b) ‘paying agency’ shall mean the body or the bodies assigned by a Member State in accordance with Regulation (EC) No 1290/2005;

(c) ‘intervention price’ shall mean the price at which products shall be bought into public intervention.

Article 3

Marketing years

The following marketing years shall be established:

(a) 1 January to 31 December of a given year for the banana sector;

(b) 1 April to 31 March of the following year for: (i) the dried fodder sector; (ii) the silkworm sector;

(c) 1 July to 30 June of the following year for: (i) the cereals sector; (ii) the seeds sector; (iii) the olive oil and table olives sector; (iv) the flax and hemp sector; (v) the milk and milk products sector;

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(ca) 1 August to 31 July of the following year for the wine sector;

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(d) 1 September to 31 August of the following year for the rice sector;

(e) 1 October to 30 September of the following year for the sugar sector.

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For products of the fruit and vegetables and processed fruit and vegetables sectors, the marketing years shall, if necessary, be fixed by the Commission.

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Article 4

Commission powers

Save as otherwise provided for by this Regulation, where powers are conferred upon the Commission, it shall act in accordance with the procedure referred to in Article 195(2).

Article 5

Implementing rules

The Commission may adopt the detailed rules for the application of Article 2.

The Commission may amend the definitions concerning rice set out in Part I of Annex III and the definition of ‘ACP/Indian sugar’ set out in point 12 of Part II of that Annex.

The Commission may also fix the conversion rates for rice at various stages of processing, the processing costs and the value of by-products.







PART II

INTERNAL MARKET







TITLE I

MARKET INTERVENTION







CHAPTER I

Public intervention and private storage







Section I

General provisions

Article 6

Scope

1. This Chapter lays down the rules concerning, where applicable, buying-in under public intervention and the granting of aids for private storage with regard to the following sectors:

(a) cereals;

(b) rice;

(c) sugar;

(d) olive oil and table olives;

(e) beef and veal;

(f) milk and milk products;

(g) pigmeat;

(h) sheepmeat and goatmeat.

2. For the purposes of this Chapter:

(a) ‘cereals’ shall mean cereals harvested in the Community;

(b) ‘milk’ shall mean cow's milk produced in the Community;

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(d) ‘cream’ shall mean cream obtained directly and exclusively from milk.

Article 7

Community origin

Without prejudice to Article 6(2) only products originating in the Community shall be eligible for buying-in under public intervention or for the granting of aid for the private storage thereof.

Article 8

Reference prices

1. For products subject to the intervention measures referred to in Article 6(1) the following reference prices shall be fixed:

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(a) as regards the cereals sector, EUR 101,31 per tonne;

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(b) as regards paddy rice, EUR 150/tonne for standard quality as defined in point A of Annex IV;

(c) as regards sugar: (i) for white sugar: — EUR 541,5/tonne for the marketing year 2008/2009, — EUR 404,4/tonne as from the marketing year 2009/2010; (ii) for raw sugar: — EUR 448,8/tonne for the marketing year 2008/2009, — EUR 335,2/tonne as from the marketing year 2009/2010. The reference prices laid down in points (i) and (ii) shall apply to unpacked sugar, ex factory of standard quality as defined in point B of Annex IV;

(d) as regards the beef and veal sector, EUR 2 224/tonne for carcasses of male bovine animals of grade R3 as laid down in the Community scale for the classification of carcasses of adult bovine animals provided for in Article 42(1)(a);

(e) as regards the milk and milk products sector: (i) EUR 246,39 per 100 kg for butter; ▼M3 (ii) EUR 169,80 per 100 kg for skimmed milk powder; ▼B

(f) as regards the pigmeat sector, EUR 1 509,39/tonne for pig carcasses of standard quality defined in terms of weight and lean meat content in accordance with the Community scale for the classification of pig carcasses, provided for in Article 42(1)(b) as follows: (i) carcasses weighing from 60 to less than 120 kg: grade E as laid down in point B II of Annex V; (ii) carcasses weighing from 120 to 180 kg: grade R as laid down in point B II of Annex V.

2. The reference prices for cereals and rice set out in points (a) and (b) of paragraph 1 respectively, shall relate to the wholesale stage for goods delivered to the warehouse, before unloading. Those reference prices shall be valid for all Community intervention centres designated in accordance with Article 41.

3. The Council, acting in accordance with the procedure laid down in Article 37(2) of the Treaty, may change the reference prices fixed in paragraph 1 of this Article in the light of developments in production and the markets.

Article 9

Price reporting in the sugar market

The Commission shall set up an information system on prices in the sugar market, including a system for the publication of price levels for the sugar market.

The system shall be based on information submitted by undertakings producing white sugar or by other operators involved in the sugar trade. This information shall be treated with confidentiality.

The Commission shall ensure that the information published does not permit the identification of prices of individual undertakings or operators.







Section II

Public intervention







Subsection I

General provisions

Article 10

Products eligible for public intervention

1. Public intervention shall be applicable in respect of the following products subject to the conditions laid down in this Section and further requirements and conditions to be determined by the Commission in accordance with Article 43:

(a) common wheat, durum wheat, barley, maize and sorghum;

(b) paddy rice;

(c) white or raw sugar provided that the sugar concerned has been produced under quota and manufactured from beet or cane harvested in the Community;

(d) fresh or chilled meat of the beef and veal sector falling within CN codes 0201 10 00 and 0201 20 20 to 0201 20 50;

(e) butter produced directly and exclusively from pasteurised cream in an approved undertaking of the Community of a minimum butterfat content, by weight, of 82 % and a maximum water content, by weight, of 16 %;

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(f) skimmed milk powder of top quality made from milk in an approved undertaking in the Community by the spray process, with a minimum protein-content of 34,0 % by weight of the fat free dry matter.







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Subsection II

Opening of buying-in

Article 11

Public intervention periods

Public intervention shall be available:

(a) for cereals, from 1 November to 31 May;

(b) for paddy rice, from 1 April to 31 July;

(c) for sugar, throughout the marketing years 2008/2009 and 2009/2010;

(d) for beef and veal, throughout any marketing year;

(e) for butter and skimmed milk powder, from 1 March to 31 August.

Article 12

Opening of public intervention

1. During the periods referred to in Article 11, public intervention:

(a) shall be open for common wheat;

(b) shall be open for durum wheat, barley, maize, sorghum, paddy rice, sugar, butter and skimmed milk powder up to the intervention limits referred to in Article 13(1);

(c) shall be opened for beef and veal by the Commission, without the assistance of the Committee referred to in Article 195(1), if the average market price for beef and veal over a representative period in a Member State or in a region of a Member State recorded on the basis of the Community scale for the classification of carcasses provided for in Article 42(1) is below EUR 1 560/tonne.

2. Public intervention for beef and veal, referred to in point (c) of paragraph 1, shall be closed by the Commission, without the assistance of the Committee referred to in Article 195(1), where, over a representative period, the conditions provided for in that point are no longer fulfilled.

Article 13

Intervention limits

1. Buying into public intervention shall be carried out within the following limits:

(a) for durum wheat, barley, maize, sorghum and paddy rice, 0 tonnes for the periods referred to in Article 11(a) and (b) respectively;

(b) for sugar, 600 000 tonnes, expressed in white sugar, for each marketing year;

(c) for butter, 30 000 tonnes for each period referred to in Article 11(e);

(d) for skimmed milk powder 109 000 tonnes for each period referred to Article 11(e).

2. Sugar stored in accordance with point (b) of paragraph 1 of this Article during a marketing year shall not be subject to any of the other storage measures provided for in Articles 32, 52 and 63.

3. By way of derogation from paragraph 1, for the products referred to in points (a), (c) and (d) of that paragraph, the Commission may decide to continue public intervention beyond the amounts referred to in that paragraph if the market situation and, in particular, the development of market prices, so requires.







Subsection III

Intervention prices

Article 18

Intervention prices

1. The intervention price:

(a) for common wheat shall be equal to the reference price for a maximum quantity offered of 3 million tonnes per intervention period as fixed in Article 11(a);

(b) for butter shall be equal to 90 % of the reference price for amounts offered within the limit in Article 13(1)(c);

(c) for skimmed milk powder shall be equal to the reference price for amounts offered within the limit in Article 13(1)(d).

2. The intervention prices and the quantities for intervention for the following products shall be determined by the Commission by means of tendering procedures:

(a) common wheat for amounts in excess of the maximum quantity offered of 3 million tonnes per intervention period as fixed in Article 11(a);

(b) durum wheat, barley, maize, sorghum and paddy rice, in application of Article 13(3);

(c) beef and veal;

(d) butter for amounts offered in excess of the limit in Article 13(1)(c), in application of Article 13(3), and

(e) skimmed milk powder for amounts offered in excess of the limit in Article 13(1)(d), in application of Article 13(3).

In special circumstances, tendering procedures may be restricted to, or the intervention prices and the quantities for intervention may be fixed per, Member State or region of a Member State on the basis of recorded average market prices.

3. The maximum buying-in price determined in accordance with tendering procedures under paragraph 2 shall not be higher:

(a) for cereals and paddy rice, than the respective reference prices;

(b) for beef and veal, than the average market price recorded in a Member State or a region of a Member State increased by an amount to be determined by the Commission on the basis of objective criteria;

(c) for butter, than 90 % of the reference price;

(d) for skimmed milk powder, than the reference price.

4. The intervention prices referred to in paragraphs 1, 2 and 3 shall be:

(a) for cereals, without prejudice to price increases or reductions for quality reasons, and

(b) for paddy rice, increased or decreased accordingly if the quality of the products offered to the paying agency differs from the standard quality, defined in point A of Annex IV. Moreover, increases and reductions of the intervention price may be fixed by the Commission in order to ensure that production is orientated towards certain varieties.

5. The intervention price for sugar shall be 80 % of the reference price fixed for the marketing year following the marketing year during which the offer is lodged. However, if the quality of the sugar offered to the paying agency differs from the standard quality defined in point B of Annex IV for which the reference price is fixed, the intervention price shall be increased or reduced accordingly.

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Subsection IV

Disposal from intervention

Article 25

General principles

Disposal of products bought into public intervention shall take place in such a way as to avoid any disturbance of the market, to ensure equal access to the goods and equal treatment of purchasers and in compliance with the commitments resulting from agreements concluded in accordance with Article 300 of the Treaty.

Article 26

Sugar disposal

As regards sugar bought-in under public intervention, paying agencies may sell it only at a price which is higher than the reference price fixed for the marketing year in which the sale takes place.

However, the Commission may decide that paying agencies:

(a) may sell the sugar at a price equal to or lower than the reference price referred to in the first paragraph if the sugar is intended: (i) for use as animal feed, or ▼M3 (ii) for export, either without further processing or after processing into products listed in Annex I to the Treaty or into goods listed in Part III of Annex XX to this Regulation, or ▼M3 (iii) for industrial use referred to in Article 62. ▼B

(b) are to make unprocessed sugar held by them available, for human consumption on the internal market of the Community, to charitable organisations — recognised by the Member State concerned or by the Commission in cases where a Member State has not recognised any such organisation — at a price which is lower than the current reference price or free of charge for distribution as part of individual emergency aid operations.

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Article 27

Scheme for the distribution of food to the most deprived persons in the Union

1. A scheme is established for 2012 and 2013 whereby food products may be distributed to the most deprived persons in the Union through organisations, which shall not be commercial undertakings, designated by Member States. For the purpose of this food distribution scheme, products in intervention stocks shall be made available or, where there are no intervention stocks suitable for the food distribution scheme, food products shall be purchased on the market.

For the purposes of the food distribution scheme provided for in the first subparagraph ‘most deprived persons’ means physical persons, including families or groups composed of such persons, who are recorded or recognised on the basis of eligibility criteria adopted by the national competent authorities to be socially and financially dependent, or who are judged to be so on the basis of the criteria used by the designated organisations and approved by those national competent authorities.

2. Member States wishing to participate in the food distribution scheme provided for in paragraph 1 shall submit, to the Commission, food distribution programmes containing the following:

(a) details of the main characteristics and objectives of such programmes;

(b) the organisations designated;

(c) the requests for quantities of food products to be distributed each year and other relevant information.

Member States shall choose the food products on the basis of objective criteria including nutritional values and suitability for distribution. For that purpose, Member States may give preference to food products of Union origin.

3. The Commission shall adopt annual plans based on the requests and other relevant information referred to in point (c) of the first subparagraph of paragraph 2 and submitted by Member States as part of their food distribution programmes.

Each annual plan shall set out annual financial allocations by the Union per Member State.

When food products included in the annual plan are not available in intervention stocks in the Member State where such products are required, the Commission shall make provision in the annual plan for the transfer of those products to that Member State from Member States where they are available in intervention stocks.

The Commission may revise an annual plan in the light of any relevant developments affecting its execution.

4. The food products shall be released to designated organisations free of charge.

The distribution of the food products to the most deprived persons shall be:

(a) free of charge; or

(b) at a price which is in no case greater than that justified by the costs incurred by the designated organisations in their distribution and that are not eligible costs under points (a) and (b) of the second subparagraph of paragraph 7.

5. Member States participating in the food distribution scheme provided for in paragraph 1 shall:

(a) submit to the Commission an annual report on implementation of the food distribution programmes;

(b) keep the Commission informed in a timely manner on developments affecting the implementation of the food distribution programmes.

6. The Union shall finance the eligible costs under the scheme. This financing shall not exceed EUR 500 million per budget year.

7. The eligible costs under the scheme shall be:

(a) the cost of food products released from intervention stocks;

(b) the cost of food products purchased on the market; and

(c) the costs of transporting food products in intervention stocks between Member States.

Within the financial resources available to implement the annual plans in each Member State, the national competent authorities may consider to be eligible the following costs:

(a) costs of transport of food products to the storage depots of the designated organisations;

(b) the following costs incurred by the designated organisations, to the extent that they are directly linked with the implementation of the annual plans: (i) administrative costs; (ii) transport costs between the storage depots of the designated organisations and the points of final distribution; and (iii) storage costs.

8. Member States shall carry out administrative and physical controls to ensure that the annual plans are implemented in compliance with the applicable rules and shall establish the penalties applicable in cases of irregularities.

9. The words ‘European Union aid’ accompanied by the emblem of the European Union shall be clearly marked on the packing of food distributed through the annual plans as well as at the distribution points.

10. The food distribution scheme provided for in paragraph 1 shall be without prejudice to any national schemes, whereby food products are distributed to most deprived persons, that are in conformity with Union law.

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Section III

Private storage







Subsection I

Mandatory aid

Article 28

Eligible products

Aid for private storage shall be granted for the following products subject to the conditions set out in this Section and to further requirements and conditions to be adopted by the Commission in accordance with Article 43:

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(a) in respect of: (i) unsalted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 82 %, a maximum milk solids-non-fat content, by weight, of 2 % and a maximum water content, by weight, of 16 %, (ii) salted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 80 %, a maximum milk solids-non-fat content, by weight, of 2 %, a maximum water content, by weight, of 16 % and a maximum salt content, by weight, of 2 %.

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Article 29

Conditions and aid-level for butter

The amount of aid for butter shall be fixed by the Commission in the light of storage costs and the likely trends in prices for fresh butter and butter from stocks.

Where, at the time of removal from storage, an adverse change unforeseeable at the time of entry into storage has occurred on the market, the aid may be increased.

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Subsection II

Optional Aid

Article 31

Eligible products

1. Aid for private storage may be granted in respect of the following products subject to the conditions set out in this Section and to further requirements and conditions to be adopted by the Commission in accordance with Article 43:

(a) white sugar;

(b) olive oil;

(c) fresh or chilled meat of adult bovine animals presented in the form of carcasses, half-carcasses, compensated quarters, forequarters or hindquarters, classified in accordance with the Community scale for the classification of carcasses of adult bovine animals provided for in Article 42(1);

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(f) pigmeat;

(g) sheepmeat and goatmeat.

The Commission may amend the list of products laid down in point (c) of the first subparagraph if the market situation so requires

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2. The Commission shall fix the aid for private storage provided for in paragraph 1 in advance or by means of tendering procedures.

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Article 32

Conditions of granting for white sugar

1. If the average Community price recorded for white sugar is below the reference price, during a representative period, and is likely to remain at that level, taking into account the market situation, the Commission may decide to grant aid for private storage of white sugar to undertakings which are allocated a sugar quota.

2. Sugar stored in accordance with paragraph 1 during a marketing year may not be subject to any other storage measures provided for in Articles 13, 52 or 63.

Article 33

Conditions of granting for olive oil

The Commission may decide to authorise bodies, offering sufficient guarantees and approved by the Member States, to conclude contracts for the storage of olive oil that they market in the event of a serious disturbance on the market in certain regions of the Community, inter alia, when the average price recorded on the market during a representative period is less than:

(a) EUR 1 779/tonne for extra virgin olive oil, or

(b) EUR 1 710/tonne for virgin olive oil, or

(c) EUR 1 524/tonne for lampante olive oil having 2 degrees of free acidity, this amount being reduced by EUR 36,70/tonne for each additional degree of acidity.

Article 34

Conditions of granting for products of the beef and veal sector

When the average Community market price recorded on the basis of the Community scale for the classification of carcasses of adult bovine animals provided for in Article 42(1) is, and is likely to remain, at less than 103 % of the reference price, the Commission may decide to grant aid for private storage.

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Article 37

Conditions of granting for pigmeat

When the average Community market price for pig carcasses as established by reference to the prices recorded in each Member State on the representative markets of the Community and weighted by means of coefficients reflecting the relative size of the pig herd in each Member State is, and is likely to remain, at less than 103 % of the reference price, the Commission may decide to grant aid for private storage.

Article 38

Conditions of granting for sheepmeat and goatmeat

The Commission may decide to grant aid for private storage when there is a particularly difficult market situation for sheepmeat and goatmeat in one or more of the following quotation areas:

(a) Great Britain;

(b) Northern Ireland;

(c) any Member State other than the United Kingdom, taken separately.







Section IV

Common provisions

Article 39

Rules concerning storage

1. Paying agencies may not store, outside the territory of the Member State within whose jurisdiction they fall, products they have bought in unless they have obtained prior authorisation from the Commission.

The territories of Belgium and Luxembourg shall be considere