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"B COMMISSION REGULATION (EC) No 661/97
of 16 April 1997
laying down detailed rules for the application of Council Regulation (EC) No 2201/96 as regards the system
of quotas for processed tomato products
(OJ L 100, 17.4.1997, p. 41)
Amended by:
Official Journal
No page date
"M1 Commission Regulation (EC) No 2807/98 of 22 December 1998 L 349 34 24.12.1998
Corrected by:
"C1 Corrigendum, OJ L 123, 15.5.1997, p. 25 (661/97)1997R0661 — EN — 27.12.1998 — 001.001 — 1
COMMISSION REGULATION (EC) No 661/97
of 16 April 1997
laying down detailed rules for the application of Council Regulation (EC)
No 2201/96 as regards the system of quotas for processed tomato products
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 2201/96 of 28 October 1996 on
the common organization of the markets in processed fruit and vegetableproducts (
1), and in particular Article 6 (5) thereof,
Whereas Article 6 (4) of Regulation (EC) No 2201/96 lays down rules for
sharing out quantities of fresh tomatoes for the production of processed
products granting entitlement to production aid between the variousundertakings that commenced processing three marketing years before thatfor which the allocation is made; whereas rules should also be laid down as to
how quantities are to be shared out among undertakings that commenced
processing less than three years before the marketing year for whichallocation is made; whereas the conditions to be met by undertakings in orderto qualify for such quantities must accordingly be determined;
Whereas the detailed rules for the application of the system of production aid
for products processed from fruit and vegetables were laid down inCommission Regulation (EC) No 504/97 (
2);
Whereas, with a view to some development of the tomato-processing
industry’ s production structures, a percentage of the quantities of each group
of finished products allocated to the Member States should be reserved fornew undertakings; whereas, since the quantities available are limited, onlyundertakings providing guarantees of efficiency and durability should be
allocated quantities;
Whereas, pursuant to Article 6 (4) of Regulation (EC) No 2201/96, quantities
actually produced during the 1996/97 marketing year are not taken intoaccount when the rules for allocating quantities to processing undertakings
are applied; whereas the consequences should be drawn for undertakings
regarded as new during the 1996/97 marketing year and for all the otherundertakings concerned until 1999/2000;
Whereas the competent authorities allocate to each processing undertaking
the quantities of fresh tomatoes which may be used to produce finished
products conferring entitlement to the aid; whereas such allocation must bebased on information forwarded by the undertakings; whereas, if there aredoubts as to the accuracy of the information received, the competent
authorities must be authorized to defer allocation until such doubts have been
dispelled;
Whereas, in order for the quota system to be as efficient as possible within
each Member State, quantities not allocated and quantities allocated but not
used should be redistributed fairly among their undertakings that sign
contracts covering such additional quantities;
Whereas the allocation of a specific quota to each undertaking means that the
production aid is paid in respect of a fixed quantity only; whereas the
objective of the arrangements is met if quotas allocated to undertakings can be
transferred to others where they change hands; whereas such changes ofownership, which may be total or partial, must entail a proportional transfer of
quota rights; whereas, in the event of mergers between undertakings operating
in the same Member State, the transfer of rights to the undertaking resultingfrom the merger should also be permitted;
Whereas, with a view to a better enforcement of processing contracts,
processors should process quantities covered by such contracts before starting
to process others;!B
(1) OJ No L 297, 21. 11. 1996, p. 29.
(2) OJ No L 78, 20. 3. 1997, p. 14.1997R0661 — EN — 27.12.1998 — 001.001 — 2
Whereas the measures set out in this Regulation should replace those in
Commission Regulation (EEC) No 1794/93 of 30 June 1993 laying downdetailed rules for the application of production aid for processed tomatoproducts (
1); whereas that Regulation should therefore be repealed;
Whereas the measures provided for in this Regulation are in accordance with
the opinion of the Management Committee for Processed Fruit andVegetables,
HAS ADOPTED THIS REGULATION:
Article 1
1. The allocation provided for in Article 6 (4) of Regulation (EC) No
2201/96 shall be made by the Member States by 31 May preceding eachmarketing year.
2. Undertakings which meet the conditions pursuant to Article 3 of
Regulation (EC) No 504/97 and which
— have submitted production aid applications in respect of at least one of
the three marketing years preceding that for which allocation is made, or
— commence their activity during the marketing year for which allocation is
made,
may be allocated quantities pursuant to paragraph 1.
Article 2
Without prejudice to Article 3, quantities shall be allocated pursuant to
Article 1 (1) to all undertakings concerned in proportion to the average
quantities they produced and sold at least at the minimum price during thethree marketing years preceding that for which allocation is made.
However, undertakings which commenced production during:
(a) the penultimate marketing year preceding that for which allocation is
made, shall qualify for a quota based on the average quantities theyproduced and sold at least at the minimum price during the two marketing
years preceding the marketing year in question;
(b) the marketing year preceding that for which allocation is made, shall
qualify for a quota corresponding to the average quantities they producedand sold at least at the minimum price during that marketing year.
Article 3
1. New processing undertakings which commence production of any
finished tomato product during the marketing year for which the allocation
is made shall qualify for a production quota under the conditions set out in thesecond subparagraph, on condition that they provide sufficient guarantees to
the satisfaction of the competent authorities regarding their efficiency and
durability.
Producer Member States shall reserve 2 % of the total quantities of fresh
tomatoes fixed for each group of finished products for the purposes of
allocating quotas to undertakings as referred to in the first subparagraph. The
quota allocated to each undertaking may not exceed 70 % of its processingcapacity.
2. For the purposes of this Regulation, ‘new undertaking’ means an
undertaking with plant and equipment suitable for the production of a groupof finished tomato products and which did not qualify under the quotaarrangements for the group in question for any of the three marketing years
preceding that for which allocation is made.!B
(1) OJ No L 163, 6. 7. 1993, p. 23.1997R0661 — EN — 27.12.1998 — 001.001 — 3
!M1
The plant and equipment referred to in the first subparagraph must have come
into service no later than 15 January preceding the marketing year during
which the allocation is made. However, for the 1999/2000 marketing year, thisdate is 15 February.
Article 4
For the 1997/98 marketing year, undertakings which qualified in the 1996/97
marketing year for quotas reserved for new undertakings shall qualify for aquota equal to the quantities that they have actually produced in that
marketing year, provided that the overall quota allocated in 1996/97 is not
exceeded.
Member States shall, where applicable, take account of the quantities referred
to in the first subparagraph when applying Article 2 for the 1997/98
marketing year.
Article 5
Where the quantities referred to in Articles 2, 3 and 4 have not been allocated
in full, the remainder shall be divided fairly between applicant processing
undertakings as referred to in the first subparagraph of Article 2, account
being taken in particular of those undertakings using new productiontechnology.
Article 6
1. By 15 January preceding the marketing year in which allocation is made,
processing undertakings as referred to in Article 3 shall inform the competentauthorities of their processing capacity and of the quantities of raw material
that they intend to process. The quantities of raw material shall be broken
down into:
(a) tomato concentrate, expressed as concentrate with a dry weight content of
28 % or more but less than 30 %;
(b) preserved whole peeled tomatoes;
(c) other tomato products.2. By way of an exception in duly justified cases, Member States may
accept information forwarded after the time limit laid down in paragraph 1,
provided the quantities referred to in the second subparagraph of Article 3 (1)
are not exceeded.
Article 7
1. Whereas the competent authorities of Member States have checked that
the aid applications comply with Article 12 of Regulation (EC) No 504/97,
and when they are in possession of all the particulars needed for allocationpursuant to Articles 2 to 5 of this Regulation, they shall allocate a given
quantity of fresh tomatoes to each processing undertaking. That quantity shall
be broken down into quantities for the production of:
— tomato concentrate,— preserved whole peeled tomatoes,— other tomato products.
2. Where Member States note that the overall quantity allocated to their
processing undertakings is not covered by preliminary contracts andprocessing contracts as provided for respectively in Article 6 and in Article7 of Regulation (EC) No 504/97 for a given marketing year, they may decide
to allocate the unused quantity among processing undertakings which declare
that they are prepared to conclude processing contracts covering theadditional quantities. Such additional quantities of fresh tomatoes shall only
be allocated for the marketing year in question.
Member States may allocate the additional quantities until 15 October each
year. The obligation to conclude preliminary contracts as referred to abovecovering the reallocated quantities for the purposes of the aid shall be waived
in respect of undertakings notified that they have been allocated additional
quantities by the competent authorities. Processing contracts covering suchquantities shall be concluded by 25 October.!B1997R0661 — EN — 27.12.1998 — 001.001 — 4
3. In the event of proven or suspected irregularities and where adminis-
trative or judicial inquiries have been initiated to ascertain entitlement to theaid, the competent authorities may decide not to allocate the quantity at issueuntil the dispute is settled.
Article 8
1. Where undertakings change hands, the provisions set out in the following
points (a) and (b) shall apply:
(a) where processors qualifying for processing quotas dispose of their
undertakings in any manner, they must transfer all their rights arising
from the allocation as referred to in Articles 2 to 5 to the natural or legalperson who takes over the business;
(b) where processors qualifying for processing quotas and having two or
more plants for the production of finished tomato products dispose of one
or more of those plants in any manner, they must transfer a proportion ofthe rights as referred to in point (a) corresponding to the production of the
plant(s) thus sold or transferred to the natural or legal person who takes
over the business.
Processors may in no circumstances transfer their quota rights without
transferring their plant(s).
Where undertakings change hands in accordance with the first subparagraph,
the processors concerned shall notify the competent authorities of the
Member State in question.
2. In the case of mergers of undertakings, Member States in whose territory
the relevant undertakings operate shall authorize the transfer of quota rights
between the former processing undertakings and those resulting from the
merger.
3. In the cases referred to in paragraphs 1 and 2, Member States shall take
the measures necessary to ensure that transfers of quotas do not have adverse
effects on the quota arrangements.
Article 9
Undertakings must have completed the processing of all fresh tomatoes
delivered under contracts as referred to in Article 7 of Regulation (EC) No504/97 before processing other tomatoes.
Member States shall take the measures necessary to verify compliance with
the first paragraph.
Article 10
Member States shall take all steps necessary to ensure that:
— the overall quantity allocated per Member State and per group of products
pursuant to Article 6 (3) of Regulation (EC) No 2201/96 is not exceeded,
— the quantities referred to in Articles 5 and 7 (2) are allocated fairly among
the undertakings.
Article 11
"C1Regulation (EEC) No 1794/93 3is hereby repealed.
Article 12
This Regulation shall enter into force on the third 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.!B1997R0661 — EN — 27.12.1998 — 001.001 — 5