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"B COMMISSION REGULATION (EC) No 528/1999
of 10 March 1999
laying down measures to improve the quality of olive oil production
(OJ L 62, 11.3.1999, p. 8)
Amended by:
Official Journal
No page date
"M1 Commission Regulation (EC) No 593/2001 of 27 March 2001 L 88 6 28.3.20011999R0528 — EN — 04.04.2001 — 001.001 — 1
COMMISSION REGULATION (EC) No 528/1999
of 10 March 1999
laying down measures to improve the quality of olive oil production
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,Having regard to Council Regulation No 136/66/EEC of 22 September 1966
on the establishment of a common organisation of the market in oils and
fats (
1), as last amended by Regulation (EC) No 1638/98 (2), and in particular
Article 5(11) thereof,
Whereas pursuant to Article 5 of Regulation No 136/66/EEC 1,4 % of the
production aid to olive growers is assigned to finance regional measures in the
Member States to improve the quality of olive oil production and its
environmental impact; whereas these measures should be specified and alsothe tasks that can be entrusted to producer organisations;
Whereas, by virtue of the origin of their funding, the measures to be
undertaken should directly involve olive growers or oil mills; whereas the
purpose of these measures is to produce quality virgin olive oil under
conditions that preserve or improve the environment; whereas, as a result,these measures must help to supply the mills with olives with prizedcharacteristics and improve the conditions under which the virgin oils are
extracted and stored;
Whereas the way in which the sector operates dictates that quality
improvement measures should be implemented over 12-month periodsbeginning on 1 May of each year; whereas the measures for each period
must be included in national programmes; whereas Member States must draw
up and execute their national programmes;
Whereas the expenditure in each period must be based on the deduction from
the production aid for the marketing year preceding that in which theprogramme begins; whereas production is estimated by the Commission in
accordance with Article 17a(1) of Council Regulation (EEC) No 2261/84 of
17 July 1984 laying down general rules on the granting of aid for theproduction of olive oil and of aid to olive oil producer organisations (
3), as last
amended by Regulation (EC) No 1639/98 (4); whereas expenditure on the
execution of programmes must be managed and checked nationally in
accordance with Community rules;
Whereas the measures provided for in this Regulation are in accordance with
the opinion of the Management Committee for Oils and Fats,
HAS ADOPTED THIS REGULATION:
Article 1
1. This Regulation specifies the measures to be undertaken and procedures
to be followed to improve the quality of olive oil production at regional level
and its impact on the environment.
2. The measures relate to 12-month production cycles beginning on 1 May
each year and involve:
(a) action against the olive fly and possibly other harmful organisms,
including control, warning and evaluation arrangements;
(b) improvement of the conditions under which olive trees are grown and
treated, olives are harvested, stored and processed and the resulting oilsare stored;
(c) technical assistance to growers and mills to help improve the environ-
ment, the quality of the olives produced and their conversion into oil;!B
(1) OJ 172, 30. 9. 1966, p. 3025/66.
(2) OJ L 210, 28. 7. 1998, p. 32.
(3) OJ L 208, 3. 8. 1984, p. 3.
(4) OJ L 210, 28. 7. 1998, p. 38.1999R0528 — EN — 04.04.2001 — 001.001 — 2
(d) improvement of the disposal of crushing residues so that the environment
is not harmed;
(e) training, information provision and demonstrations for farmers and mills
on oil quality and the environmental impact of the oil production chain;
(f) creation and operation, at regional, provincial or producer-organisation
level, of laboratories for virgin oil analysis;
(g) collaboration with specialist agencies on research programmes to
improve the quality of virgin olive oil and at the same time help improvethe environment.
3. Action under points (a) and (b) of paragraph 2 shall place special
emphasis on integrated biological control methods.
Insecticides against olive fly must be used in conjunction with protein baits.
However in special circumstances the use of insecticides without protein baits
may be authorised under the direction of the agency responsible for
prescribing treatments. Insecticides and their mode of application must besuch that no residue in olives from the zones in question or in the oil producedfrom them exceeds the maximum doses authorised by Community legislation.
Article 2
1. Member States shall establish by 31 March of each year an action
programme for the next production cycle.
The programme shall include:(a) a detailed description of the measures envisaged, with duration and cost;(b) a list of the products and materials needed, with unit costs;(c) a list of the centres, agencies or producer organisations responsible for
execution of the measures.
Contracts and agreements with centres, agencies or producer organisations
charged with execution of the measures, and administrative provisions madeby the Member State in regard to these bodies, shall be concluded or adoptedso as to take effect at the beginning of the production cycle concerned. Such
contracts or agreements may be multiannual in duration subject to
adjustments stemming from the successive programmes. They shall be drawnup using standard contract terms made available by the Commission.
The programme shall be approved by and executed on the responsibility of the
Member State.
2. Before 1 May each year producer Member States shall notify to the
Commission the measures planned for the next production cycle, listed by
category as indicated in Article 1(2), and their estimated expenditure on them.
Article 3
1. Expenditure on the measures specified in this Regulation shall be
financed from the production aid deduction made pursuant to Article 5 of
Regulation No 136/66/EEC.
2. The Commission shall determine under the procedure laid down in
Article 38 of Regulation No 136/66/EEC, for each production cycle referredto in Article 1(2) and each producer Member State, the financing ceilings formeasures eligible for reimbursement by the EAGGF Guarantee Section.
The ceilings shall be determined on the basis of the production aid deduction,
estimated in accordance with Article 17a(1) of Regulation (EEC) No 2261/84,
for the marketing year finishing in the year preceding that in which the
production cycle begins.!B1999R0528 — EN — 04.04.2001 — 001.001 — 3
!M1
The ceilings shall be adjusted on the basis of the difference between the
calculation of the deduction from the aid based on estimated production and
that based on actual production for the marketing year preceding that on thebasis of which the ceilings are fixed under the second subparagraph.
3. If the resources referred to in paragraph 1 do not suffice to cover
expenditure on some of the measures included in the programme for aproduction cycle, the Member State may make an additional financialcontribution equal at most to 50 % of the Community financing for each of
the measures in question. This contribution must not be funded through a
deduction from the production aid.
Article 4
1. Expenditure under the programme adopted by the Member State shall be
eligible under this Regulation only if the measures in question are not covered
by any other Community financing.
Only a maximum of 75 % shall be eligible in the case of expenditure on:
— execution of the treatments required for the purposes of action as referred
to in Article 1(2)(a),
— remuneration of the personnel of the laboratories referred to in Article
1(2)(f).
2. The general costs of contractors, including those of any subcontractors,
shall be limited to 2 % of total eligible expenditure.
Article 5
1. Payments in connection with:
— contracts and agreements concluded or adopted by a Member State with
centres, agencies or producer organisations responsible for the executionof measures,
— administrative provisions of the Member State in connection with such
centres, agencies or organisations,
shall be made on presentation of supporting documents for the expenditure
and following verification by the competent authorities of these documentsand of fulfilment of the specified obligations.
The competent body shall make the payments referred to above within 60
calendar days of receipt of the application. However, this deadline may besuspended at any time in the 60-day period after the payment application isfirst registered, by informing the creditor contractor that his application is not
admissible, either because the sum is not payable, because the application is
not supported by the requisite evidence for all the additional applications, or ifthe competent body deems it necessary to have further information or to make
checks. The deadline shall start to run again from the date the requested
information — which must be sent within 30 calendar days — is received.Except in cases of force majeure , any delay in making the above payments
shall give rise to a reduction in the refund to the Member State, in accordance
with the rules laid down in Article 4 of Commission Regulation (EC) No
296/96 (
1).
2. Contracts or agreements cannot be concluded until a security equal to
15 % of the maximum amount of Community funding has been lodged, in
order to guarantee their proper performance. The security shall be lodged inaccordance with Title III of Commission Regulation (EEC) No 2220/85 (
2).
However, if the contractor is a public body or a quasi-public body, a written
guarantee from its supervisory authority covering an amount equal to thepercentage referred to in the preceding subparagraph may be accepted by the
competent body, provided that the supervisory authority undertakes to verify
that:
— the obligations entered into have been properly discharged, and
— the sums received were correctly used to discharge the obligations
entered into.
(1) OJ L 39, 17. 2. 1996, p. 5.
(2) OJ L 205, 3. 8. 1985, p. 5.!B1999R0528 — EN — 04.04.2001 — 001.001 — 4
Proof of lodgement of the security must reach the competent body before the
time limit referred to in the second subparagraph of paragraph 1 expires.
3. The primary requirement within the meaning of Article 20 of Regulation
(EEC) No 2220/85 shall be the implementation of the measures in thecontract.
4. In the case of multiannual contracts or agreements, the security shall be
calculated on the basis of the value of each of their annual parts.
5. Release of the security shall be conditional on verification by the
Member State of execution within the indicated time limits of the measures
specified in the contract or agreement, or during the annual period applicable.
6. All centres, agencies and producer organisations charged with the
execution of measures shall submit to the Member State within two months ofthe final date set for execution a detailed report on the use of the Community
funds assigned and the outcome of the measures in question. If the report is
presented after the two-month time limit 3 % of the Community contributionfor the measures in question shall be retained for each month or part thereof
by which the report is late.
Article 6
1. Within 30 calendar days of the signing of the contract, the contractor may
submit an application for an advance to the competent body, accompanied bythe security referred to in paragraph 3 below. No applications for an advancecan be made after the 30-day limit.
Advances may cover at most 30 % of the amount of Community funding.2. The competent body must pay the advance within 30 calendar days of the
submission of the application for an advance. Article 4 of Regulation (EC) No
296/96 shall apply where payment is made late.
3. The advance shall be paid subject to the lodging by the contractor of a
security equal to 110 % of the advance, in favour of the competent body, inaccordance with Title III of Regulation (EEC) No 2220/85.
However, if the contractor is a public body or a quasi-public body, a written
guarantee from its supervisory authority covering an amount equal to the
percentage referred to in the preceding subparagraph may be accepted by thecompetent body, provided that the supervisory authority undertakes to pay theamount covered by the security should entitlement to the amount advanced
not be established.
4. Release of securities shall be conditional on:
— transmission to the Member State of the supporting documents for the
expenditure effected,
— verification of the documents and establishment that the specified
obligations have been met.
Article 7
If a security as referred to in Articles 5 or 6 is forfeited or a deduction made as
referred to in Article 5(6), the amount in question shall be deducted from
EAGGF Guarantee Section expenditure.
Article 8
1. Member States shall apply a checking system to ensure that measures
included in programmes for which financing is granted are correctly executed.This shall involve:
— administrative and accounting checks on the costs borne,— checks, in particular on the spot, on verification of conformity of
execution of the measures with the provisions of the contract or
agreement or the administrative provisions.
2. Member States shall inform the Commission of their planned checking
system when they transmit the information referred to in Article 2(2).
The Commission may request Member States to make any change in the
checking system it deems necessary.!B1999R0528 — EN — 04.04.2001 — 001.001 — 5
3. A short report on execution of the programme and the checks made shall
be transmitted by Member States to the Commission by 1 October followingeach production cycle.
It shall summarise the measures planned and carried out, by category as
referred to in Article 2(2), and for each measure state the costs allocated andchecks made and assess the results achieved, the environmental impact and
the difficulties encountered.
Article 9
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States.!B1999R0528 — EN — 04.04.2001 — 001.001 — 6