1997R1169 — EN — 30.06.1997 — 000.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSION REGULATION (EC) No 1169/97
of 26 June 1997
layingdowndetailedrulesfortheapplicationofCouncilRegulation(EC)No2202/96introducinga
Community aid scheme for producers of certain citrus fruits
(OJ L 169, 27.6.1997, p. 15)
Corrected by:
►C1 Corrigendum, OJ L 182, 10.7.1997, p. 55 (1169/97)
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COMMISSION REGULATION (EC) No 1169/97
of 26 June 1997
layingdowndetailedrulesfortheapplicationofCouncilRegulation
(EC) No 2202/96 introducing a Community aid scheme for produ-
cers of certain citrus fruits
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 2202/96 of 28 October
1996 introducing a Community aid scheme for producers of certaincitrus fruits (
1), and in particular Article 2 (2), Article 3 (4) and Articles
6 and 8 thereof,
Whereas Regulation (EC) No 2202/96 introduces an aid scheme for
producer organizations which deliver for processing certain citrus fruitsharvested in the Community and listed in Article 1 thereof;
Whereas the marketing years for citrus fruit should be defined with a
view to ensuring that the scheme is applied uniformly;
Whereas, with a view to improving the way the scheme operates, the
authorities should know of all producer organizations marketing thecitrus production of their members, of members of other producerorganizations and of individual producers which wish to qualify underthe scheme; whereas processors who sign contracts with such producerorganizations should also send the authorities the information necessaryto ensure that the scheme operates properly,
Whereas the aid scheme for producers of certain citrus fruits is based on
contracts between producer organizations granted recognition orpreliminary recognition pursuant to Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organization of the market infruit and vegetables (
2) and processors; whereas producer organizations
can also act as processors in certain cases; whereas the type andduration of contracts and the particulars to be included in them shouldbe specified with a view to the application of the aid scheme;
Whereas contracts for each product listed in Article 1 of Regulation
(EC) No 2202/96 must be concluded by a given date so that theproducer organizations can plan and processors can be assured ofregular supplies; whereas the parties to such contracts should neverthe-less be authorized to change, by amendments to the contracts andsubject to a ceiling, the quantities originally stipulated therein so thatthe scheme is as effective as possible;
Whereas there is a close link between the raw materials delivered for
processing and the finished product obtained; whereas the raw materialsshould accordingly at least meet certain minimum requirements;
Whereas applications for aid or for advances on the aid for all products
should include all the particulars needed for checking eligibility;
Whereas, with a view to ensuring that the aid scheme is properly
applied, producer organizations and processors must forward the requi-site information and must keep updated documentation suitable for thepurposes of all inspections and controls deemed necessary;
Whereas the administation of the aid scheme makes it necessary for
procedures to be laid down for physical and documentary checking ofdelivery and processing operations, for the checks to be required tocover a sufficiently representative number of applications for aid andadvances and for certain penalties to be laid down for producer organ-izations and processors in the event of breaches of the regulations, in
(1) OJ No L 297, 21. 11. 1996, p. 49.
(2) OJ No L 297, 21. 11. 1996, p. 1.
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particular for false declarations and failure to process products deliv-
ered;
Whereas the measures provided for in this Regulation are to replace
those laid down in Commission Regulation (EC) No 3338/93 of 3December 1993 laying down detailes rules for the application ofCouncil Regulations (EC) No 3119/93 and (EEC) No 1035/77 asregards measures to encourage the processing of certain citrus fruits andthe marketing of products processed from lemons (
1), as last amended
by Regulation (EC) No 2251/96 (2); whereas that Regulation should
accordingly be repealed;
Whereas exceptional transitional measures should be taken for lemons
and oranges delivered to processors at the beginning of the 1997/98marketing year to facilitate a smooth switchover from the former systemto the new scheme;
Whereas the measures provided for in this Regulation are in accordance
with the opinion of the Management Committee for Fruit and Veget-ables,
HAS ADOPTED THIS REGULATION:
CHAPTER I
Definitions and marketing years
Article 1
For the purposes of this Regulation:
(a)individual producers means producers of citrus fruit intended for
processing within the meaning of Article 4 (1) of Regulation (EC)No 2202/96;
(b)producer organizations means producer organizations within the
meaning of Articles 11 and 13 of Regulation (EC) No 2200/96 andproducer organizations granted preliminary recognition in accord-ance with Article 14 thereof;
(c)processor means any processing enterprise operating for economic
purposes and under its own responsibility one or more plants withfacilities for manufacturing one or more of the products listed inArticle 1 of Regulation (EC) No 2202/96, and any association ofprocessing enterprises which is legally constituted and is recognizedby a Member State.
Article 2
1. The marketing years for the purpose of Regulation (EC) No 2202/
96, hereinafter referred to as the ‘marketing years', shall run from:
(a) 1 October to 30 September for:
— sweet oranges,
— mandarins, clementines and satsumas,— grapefruit and pomelos;
(b) 1 June to 31 May for lemons.
2. The aid to producer organizations delivering mandarins, clemen-
tines and satsumas shall only be granted on products delivered to theprocessing industry in the period 1 October to 30 June.
(1) OJ No L 299, 4. 12. 1993, p. 26.
(2) OJ No L 302, 26. 11. 1996, p. 17.
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CHAPTER II
Contracts
Article 3
1. The contracts referred to in Article 2 (1) of Regulation (EC) No
2202/96 on which the aid scheme is based, hereinafter referred to as‘contracts', shall be concluded in writing. Separate contracts shall beconcluded for each basic product listed in Article 1 of that Regulationand shall bear an identification number. They may take one of thefollowing forms:
(a) a contract between a producer organization and a processor;
(b) a commitment to supply the fruit where the producer organization
acts as a processor.
2. Contracts must cover:
(a) the whole marketing year in question in the case of contracts
covering one marketing year;
(b) at least three marketing years in the case of multiannual contracts in
accordance with Article 3 (2) (a) of Regulation (EC) No 2202/96.
In the case of clementines, separate contracts must be drawn up for each
potential use, that is for juice or segments.
3. Contracts shall include in particular:
(a) the name and address of the producer organization signing the
contract;
(b) the name and address of the processor;
(c) the quantity of raw materials to be delivered for processing; in the
case of multiannual contracts, that quantity shall be broken down bymarketing year;
(d) the schedule of deliveries to processors per delivery quarter from
the start of the marketing year;
(e) the obligation on processors to process the quantities delivered
under the contract in question;
(f) the price to be paid to the producer organization for the raw
materials, which may vary by variety and/or delivery period; thisprice may only be paid by bank or postal transfer;
(g) compensation payable in the event of non-performance by either
party of the contractual obligations, in particular as regards theobligation to deliver and to accept of the quantities stipulated.
4. In the case of contracts covering one marketing year, the price
referred to in paragraph 3 (f) may be changed by common agreementbetween the parties by the written amendments referred to in Article 5(2) but only for the additional quantities stipulated by those amend-ments.
5. Multiannual contracts may cover both the production of the
members of the producer organization signing the contract and theproduction of members of other producer organizations where thesecond and third indents of Article 11 (1) (c) (3) of Regulation (EC) No2200/96 are applied.
6. To qualify for the aid laid down in Table 2 of the Annex to
Regulation (EC) No 2202/96, quantities delivered under multiannualcontracts must be at least equal to the following per contract, productand marketing year:
— 300 tonnes for the 1997/98 marketing year,
— 500 tonnes for the 1998/99 marketing year,— 750 tonnes for the 1999/2000 marketing year,— 1 000 tonnes as from the 2000/01 marketing year.
7. In the case of multiannual contracts, the price referred to in
paragraph 3 (f) per marketing year shall be established at the time thecontract is signed. However, the price applicable to a given marketingyear may be revised by common agreement between the parties by
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written amendment to the contract before 1 June of the marketing yearin question in the case of lemons and before 1 November of themarketing year in question in the case of other products.
8. Member States may adopt additional provisions covering
contracts, in particular as regards compensation payable by theprocessor or the producer organization in the event of non-performanceof contractual obligations.
Article 4
Where producer organizations also act as processors, the contracts
covering the production of their members shall be deemed to have beenconcluded only if and when the following particulars have beenforwarded to the competent authority within the time limit laid down inArticle 6:
(a) the total area on which the raw materials are grown;
(b) the estimated total harvest;
(c) the quantity intended for processing, broken down by type of
contract;
(d) the schedule of deliveries referred to in Article 3 (3) (d);
(e) an undertaking by the producer organization to process the quant-
ities delivered under the contract in question.
Article 5
1. Contracts shall be concluded at the latest by:
(a) 1 November for oranges, mandarins, clementines, satsumas, grape-
fruit and pomelos;
(b) 15 May for lemons.
2. In the case of contracts covering one marketing year, the quant-
ities stipulated in the schedule of deliveries referred to in Article 3 (3)(d) may be altered by written amendment. Such amendments shall showthe identification number of the contract to which they relate. They shallbe concluded by no later than the 15th day of the month preceding thedelivery quarter in question. The quantities to be delivered each deliveryquarter as stipulated in such amendments may not differ by more than40 % from those originally laid down in the contract for that quarter.The quantities delivered by the new members referred to in Article 8 (5)shall be included in those amendments.
3. In the case of multiannual contracts, the quantities stipulated for
each marketing year as referred to in Article 3 (3) (c) may be altered bywritten amendment. Such amendments shall show the identificationnumber of the contract to which they relate. They shall be concludedbefore 1 June of the marketing year in question in the case of lemonsand before 1 November of the marketing year in question in the case ofother products. The quantities to be delivered each marketing year asstipulated in such amendments may not differ by more than 40 % fromthose originally laid down in the contract for that marketing year. Thequantities to be delivered in each delivery period shall be adjustedaccordingly.
Article 6
1. The producer organizations shall forward a copy of each contract
and of any amendments thereto to the body designated by the MemberState in which the raw materials are to be harvested and, where applic-able, to the body designated by the Member State where processing is totake palce. Such copies must reach the competent authorities no laterthan 10 working days after the conclusion of the contract or of anyamendment thereto and no less than five working days before the startof deliveries.
In no case may the total quantity covered by all the contracts signed by
a given producer organization exceed the production per product
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intended for processing as estimated by that producer organizationpursuant to Article 8.
2. In the event of exceptional, duly justified circumstances, the
Member States may accept contracts and amendments thereto that reachtheir authorities after the time limit laid down in paragraph 1, providedthat such late arrival does not make controls impracticable.
CHAPTER III
Information to be provided
Article 7
1. No later than 30 days before the beginning of the marketing year,
producer organizations wishing to receive the aid provided for in Article3 of Regulation (EC) No 2202/96 and processors wishing to signcontracts with such producer organizations shall inform the body desig-nated by the Member State in which the raw materials are to beharvested and, where applicable, the body designated by the MemberState in which processing takes place. At the same time they shallforward the information required by the Member State in question forthe administration and monitoring of the aid scheme. Such informationshall in any case include the hourly extraction, pasteurization andconcentration capacity of each processing unit.
Member States may decide that such information:
(a) is only to be given by new producer organizations or new proces-
sors where the necessary information on the others is already avail-able;
(b) is to cover a single marketing year, several marketing years or an
unlimited period.
2. At least five working days before the start of deliveries or
processing, producer organizations and processors shall notify thecompetent authorities of the week in which deliveries and processingare to commence each marketing year. Producer organizations andprocessors shall be deemed to have discharged this obligation wherethey provide proof that they have forwarded that information at leasteight working days before that time-limit.
3. In exceptional, duly justified cases, the Member States may accept
notifications from producer organizations and processors after the timelimit laid down in paragraph 2. However, in such cases, no aid shall begranted to producer organizations for quantities already delivered or inthe course of delivery where the requisite checks on the conditionsunder which the aid is granted cannot be conducted to the satisfaction ofthe competent authorities.
Article 8
1. Producer organizations signing contracts shall forward the
following information, broken down by product, to the body designatedby the Member State in which the raw materials are to be harvested:
(a) the total area on which the products are grown, broken down by
member producer, with the cadastral reference numbers on theparcels concerned or a reference recognized as equivalent by thesupervisory body;
(b) the estimated total harvest;
(c) the estimated quantity intended for processing.
2. The information specified in paragraph 1 shall be provided by the
producer organizations or individual producers in question to theproducer organization signing the contract, which shall forward it to thebody designated by the Member State, where producer organizations:
(a) market production intended for processing of members of other
producer organizations pursuant to the second and third indents ofArticle 11 (1) (c) (3) of Regulation (EC) No 2200/96;
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and/or
(b) pass on the benefit of the aid scheme to individual producers
pursuant to Article 4 (1) of Regulation (EC) No 2202/96.
3. To qualify for the aid, the producer organizations and individual
producers as referred to in paragraph 2 shall sign agreements with theproducer organization signing the contract.
Such agreements shall cover all citrus production delivered for
processing by the said producer organizations and the individual produ-cers in question and must specify at least the following:
(a) the number of marketing years covered by the agreement,
(b) the quantities to be delivered for processing, broken down by
producer, product and delivery period in accordance with Article 3(3) (d),
(c) the consequences of failure to comply with the agreement.
4. No later than 15 days before the start of the marketing year in the
case of lemons and no later than 30 days after the start of the marketingyear in the case of other products, the information specified in para-graphs 1 and 2 and a copy of the agreements referred to in paragraph 3shall be forwarded to the body designated by the Member State inwhich the raw materials are harvested.
5. If a producer joins a producer organization after the dates referred
to in paragraph 4, the information mentioned in paragraphs 1 and 2, andif appropriate, the agreements referred to in paragraph 3, shall in thecase of the new member be forwarded to the body referred to inparagraph 4 within 30 days of the date on which membership tookeffect.
CHAPTER IV
Raw materials
Article 9
Products delivered to processors by producer organizations under
contracts must meet the minimum requirements laid down in the Annex.
Article 10
1. By noon on the preceding working day, the producer organizations
shall notify each delivery to the body designated by the Member Statewhere the raw materials are harvested and, where applicable, to thebody designated by the Member State in which processing takes place.Such notifications shall specify in particular the quantity to be deliv-ered, the precise identification of the means of transport used and theidentification number of the contract under which delivery is made.Notifications shall be forwarded electronically and the recipient bodyshall keep a written record for at least three years.
The competent body may require further details which it deems neces-
sary for the purposes of physical checks of deliveries.
Where there is a change in the information specified in the first
subparagraph after its notification, the new information shall be notifiedon the same terms before the consignment leaves.
2. On acceptance at the processing plant of consignments delivered
under contracts, a certificate of delivery shall be issued, specifying:
(a) the date and time of unloading,
(b) the precise identification of the means of transport used;
(c) the identification number of the contract to which the consignment
relates;
(d) the gross and net weights of the consignment;
(e) net that the raw material complies with the minimum requirements
laid down in the Annex.
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Certificates of delivery shall be drawn up in four copies. They shall besigned by the processor or his representative and by the producerorganization or its representative. Signatures shall be preceded by thewords ‘Agreed by'. Each certificate shall bear an identification number.
Both processors and producer organizations shall keep a copy of certi-
ficates of delivery. One copy shall be forwarded immediately by theproducer organization to the bodies referred to in paragraph 1 for thepurposes of controls.
3. Where part or all of a consignment belongs to producers as
referred to in Article 8 (2) (a) and (b), the producer organization signingthe contract shall forward a copy of the certificate provided for inparagraph 2 to each producer organization concerned and to the indi-vidual producers in question.
4. By no later than the 10th day of the following month, the producer
organizations shall notify the quantity delivered each month, byconsignment and product, to the body designated by the Member Statein which the raw materials were harvested and, where applicable, to thebody designated by the Member State in which processing takes place.Quantities delivered under contracts shall be broken down by contractand according to the corresponding aid.
Article 11
1. By no later than the 10th day of the following month, processors
signing contracts with producer organizations shall notify the bodydesignated by the Member State in which the raw materials wereharvested and, where applicable, the body designated by the MemberState in which processing takes place of the following in respect of eachmonth, broken down by product:
(a) the quantity of product received by consignment and per contract
and the quantity of products received otherwise than undercontracts;
(b) the quantities of juice obtained, broken down by concentration in
accordance with the Brix scale, specifying the quantities obtainedfrom consignments delivered under contracts;
(c) the average juice yield, expressed in weight of raw material, and the
concentration of the juice, expressed in degrees Brix;
(d) the quantities of segments obtained, specifying the quantities
obtained from consignments delivered under contracts;
(e) the quantities of every other finished product and by-product
obtained, specifying the quantities obtained from consignmentsdelivered under contracts;
(f) the quantities of waste obtained and the use to which the waste is
put, specifying the quantities obtained from consignments deliveredunder contracts.
The quantities shall be expressed in net weight.Notifications shall be signed by the processor to certify their exactitude.2. Within 45 days of completion of processing operations for the
marketing year, the processors shall inform the body referred to inparagraph 1 of the following in respect of each product:
(a) the quantities received, broken down into finished products and
by-products obtained;
(b) the quantities received under contracts, broken down by delivery
period and type of contract, that is, either covering one marketingyear or multiannual;
(c) the quantities received under contracts, broken down into finished
products and by-products obtained;
(d) the quantities of each finished product and by-product obtained
from the quantities referred to in point (a); in the case of juice, suchquantities shall be broken down by concentration, expressed indegrees Brix;
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(e) the quantities of each finished product and by-product obtained
from the quantities referred to in point (c); in the case of juice, suchquantities shall be broken down by concentration, expressed indegrees Brix;
(f) the quantities of each finished product and by-product in stock on
completion of processing operations for the marketing year.
The quantities shall be expressed in net weight.3. Where contracts are signed by associations of processors, the
notifications in accordance with paragraph 1 and the information underparagraph 2 shall be forwarded in respect of each member of theassociation.
CHAPTER V
Aid applications
Article 12
Aid applications shall be submitted by the producer organization to the
body designated by the Member State on whose territory the rawmaterials were harvested. Applications covering each marketing yearshall be submitted by:
(a) 5 July of the following marketing year in the case of lemons;
(b) 15 August of the marketing year in progress in the case of
mandarins, clementines and satsumas;
(c) 15 November of the following marketing year in the case of
oranges, grapefruit and pomelos.
A single aid application may be submitted per marketing year for a
given basic product. In the case of clementines, separate aid applica-tions must be drawn up for each potential use, that is for juice orsegments.
Article 13
Aid applications shall include in particular the following:
(a) the applicant’s name and address;
(b) the identification numbers of the contracts under which the product
is delivered, specifying whether the contracts relate to one or moremarketing years;
(c) the quantity of product delivered under the contracts, including any
amendments thereto, broken down by contract, delivery period andamount of aid;
(d) the proportion of the quantities referred to in point (c) on which an
advance is paid pursuant to Article 14 and the amount of theadvance received;
(e) the quantity of product delivered otherwise than under contracts
during the marketing year, broken down by delivery period asprovided for in Article 3 (3) (d);
(f) the average prices applying, on the one hand, to products delivered
under contracts, distinguishing between multiannual contracts andcontracts covering one marketing year, and, on the other hand, toother products delivered otherwise than under contracts;
(g) a declaration by the producer organization to the effect that prod-
ucts referred to in point (c) meet the minimum requirements laiddown in the Annex.
Article 14
1. Producer organizations may submit applications, by product and
delivery period, for advances on the aid in respect of oranges,mandarins, clementines, satsumas and lemons delivered under contracts.
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Applications for advances may relate to one basic product only. In thecase of clementines, separate applications for advances must be drawnup for each potential use, that is for juice or segments.
Applications for advances shall be submitted within 30 days of the end
of the period concerned.
2. Advances shall be equal to 70 % of the amounts set out in the
Annex to Regulation (EC) No 2202/96.
3. Applications for advances shall include at least the information
specified in Article 13 (a), (b) and (g) and the quantity of productdelivered under contracts and any amendments thereto during thedelivery period in question. That quantity shall be broken down bycontract and according to the amount of the corresponding aid.
4. Advances shall be paid, within 30 days of the date of submission
of the application to the producer organization for the quantity deliveredduring the delivery period concerned.
5. Where it appears, on the basis of the notifications referred to in
point (a) of the first subparagraph of Article 22 (1), that there is a riskthat the processing thresholds fixed in Article 5 of Regulation (EC) No2202/96 may be exceeded, the Commission may reduce the percentagelaid down in paragraph 2 of this Article in accordance with the proce-dure provided for in Article 6 of Regulation (EC) No 2202/96.
Article 15
1. The aid or advance shall be paid by the competent body of the
Member State in which the raw material was harvested once the super-visory body of the Member State in which processing takes place hasestablished that the products covered by the application for the aid orthe advance have been delivered to the processor.
Where processing takes place in another Member State, that Member
State shall provide the Member State where the product is harvestedwith proof that the product has in fact been delivered.
No aid or advance shall be granted on quantities in respect of which the
requisite checks on the conditions under which the aid is granted havenot been conducted. In particular, no aid shall be paid before theinformation from the Commission to the Member States, as provided forin the second subparagraph of Article 22 (1), has been received and, ifthe processing thresholds are exceeded, before a decision has been takenunder Article 6 of Regulation (EC) No 2202/96.
2. Within 15 working days following receipt of the aid or the
advance, the producer organization shall pay in full by bank or postaltransfer the amounts received to its members or, where the second andthird indents of Article 11 (1) (c) (3) of Regulation (EC) No 2200/96apply, to the members of the other producer organizations and/or to theindividual producers concerned. In cases as provided for in Article 4 ofthis Regulation, such payments may be credited.
CHAPTER VI
Controls and penalties
Article 16
1. Producer organizations delivering products for processing shall
keep records covering each product delivered. Such records shallcontain at least the following:
(a) in the case of quantities delivered under multiannual contracts:
(i) the consignments delivered, by delivery day, and the identifica-
tion number of the contract to which they relate,
(ii) the net weight of each consignment delivered and the identifi-
cation number of the relevant delivery certificate;
(b) in the case of quantities delivered under contracts for one marketing
year:
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(i) the consignments delivered, by delivery day, and the identifi-
cation number of the contract to which they relate,
(ii) the net weight of each consignment delivered and the identifi-
cation number of the relevant delivery certificate,
(iii) the total quantities delivered, by delivery day, broken down in
accordance with the aid applicable;
(c) in the case of quantities delivered otherwise than under contracts:
(i) the consignments delivered by delivery day and the name and
address of the processor,
(ii) the net weight of each consignment delivered.
2. Producer organizations shall submit to all inspections and checks
deemed necessary by the competent authorities and shall keep all addi-tional records laid down by those authorities for the purposes of thechecks they require.
3. The Member States may decide what form the records provided
for in paragraphs 1 and 2 shall take.
Article 17
1. Processors shall keep records covering each product purchased.
Such records shall contain at least the following:
(a) in the case of quantities purchased from producer organizations
under contracts:
(i) the consignments received, by delivery day, and the identifica-
tion number of the contract to which they relate,
(ii) the net weight of each consignment received, the identification
number of the corresponding delivery certificate and the preciseidentification of the means of transport used;
(b) in the case of other quantities purchased:
(i) the consignments received, by delivery day, and the name and
address of the seller,
(ii) the net weight of each consignment received;
(c) the quantities of juice obtained each day, broken down by concen-
tration, expressed in degrees Brix, specifying the quantities obtainedfrom consignments delivered under contracts;
(d) the quantities of segments obtained each day, specifying the quant-
ities obtained from consignments delivered under contracts;
(e) the quantities of every other finished product and by-product
obtained each day, specifying the quantities obtained from consign-ments delivered under contracts;
(f) the quantities of waste obtained each day and the uses to which
such waste is put;
(g) the quantities of each finished product and by-product purchased by
the processor each day, giving the name and address of the seller; inthe case of juice, such quantities shall be broken down by concen-tration, expressed in degrees Brix;
(h) the quantities of each finished product and by-product leaving the
processor’s establishment each day, giving the name and address ofthe consignee; in the case of juice, such quantities shall be brokendown by concentration, expressed in degrees Brix; such details mayappear in the records as a reference to supporting documentsexisting elsewhere, provided that such documents contain theabovementioned particulars;
(i) the quantities of finished products and by-products in stock at the
end of the marketing year, broken down by finished product andby-product.
The quantities shall be expressed in net weight.2. As from the end of the processing year in question, processors
shall keep proof of payment of all raw materials purchased undercontracts or written amendments therto for five years. Processors shall
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also keep proof of payment or sale of all processed finished productsand by-products purchased or sold for the five years.
3. Processors shall submit to all inspections and checks deemed
necessary by the competent authorities and shall keep all additionalrecords laid down by such authorities for the purpose of the checks theydeem necessary.
4. The Member States may decide what form the records provided
for in paragraphs 1 and 3 shall take.
Article 18
1. Member States shall take all the measures necessary to ensure
compliance with this Regulation. To that end, and without prejudice toTitle VI of Regulation (EC) No 2200/96, they shall in particular conductthe checks provided for in paragraphs 2 and 3 of this Article.
2. Physical and documentary checks shall be carried out on all
producer organizations covering, for each product, marketing year andproducer organization, at least 30 % of:
(a) the areas referred to in Article 8 (1) and (2);
(b) the agreements referred to in Article 8 (3);
(c) the payments referred to in Article 15;
(d) the quantities delivered for processing in each delivery period;
(e) applications for aid or advances.
The checks shall be designed in particular to verify that the following
tally:
(a) the quantities of products delivered for processing under contracts
and covered by delivery certificates as provided for in Article 10 (2)and those covered by each application for the aid or an advance;and
(b) the quantities of products delivered for processing under contracts
and those delivered to producer organizations by their members, bymembers of other producer organizations where the second andthird indents of Article 11 (1) (c) (3) of Regulation (EEC) No2200/96 apply, and by individual producers where Article 4 ofRegulation (EC) No 2202/96 applies;
3. Physical and documentary checks shall be carried out on all
processors covering, for each product received, month and processor, atleast 30 % of:
(a) the consignments received under each type of contract (for one or
more marketing years); the checks shall cover at least the netweight of each consignment, the actual link with a contract, thedelivery certificates as provided for in Article 10 (2), the preciseidentification of the means of transport used and compliance withthe minimum requirements laid down in the Annex;
(b) each finished product and by-product obtained under contracts;
(c) each finished product and by-product obtained otherwise than under
contracts;
(d) tranfers as provided for in Article 3 (3) (f).
Those checks shall be designed in particular to verify that the following
tally:
(a) on the one hand, the invoices for the purchase and sale of finished
products and by-products; and
(b) on the other hand, the quantities of products received by each
processor, the quantities of finished products and by-productsproduced, the quantities of finished products and by-productspurchased, and the quantities of finished products and by-productssold or in stock.
At least twice a year, the Member States shall conduct physical checks
of stocks of products processed by the processor and of stocks of
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processed products purchased and shall carry out a reconciliation of thedata thus obtained with those in the processor’s records.
4. Member States may increase the frequency and percentage of
checks laid down in paragraphs 2 and 3.
Article 19
1. Checks conducted pursuant to Article 18 shall not preclude any
additional checks by the competent authorities or any consequencesresulting from the application of national provisions.
2. Member States shall take all the measures necessary to ensure that
the records are kept properly and that they tally with the generalaccounts of the producer organizations and of the processors.
3. Where checks reveal substantial irregularities, the competent
authorities shall conduct additional checks during the marketing year inprogress and increase the frequency of checks during the followingmarketing year.
Article 20
1. If the aid or the advance for a product applied for by a producer
organization in respect of a marketing year or a delivery period is foundto be greater than the amount due, the latter shall be reduced where thedifference is the result of false declarations, false documents or seriousnegligence on the part of the producer organization. That reduction shallbe equal to twice the difference, plus interest calculated on the periodelapsing between payment and reimbursement of the amount undulyreceived by the recipient.
The interest rate shall be that applied by the European Monetary Insti-
tute to operations in ecus, as published in the ‘C' series of the Official
Journal of the European Communities and in force on the date of the
undue payment, plus three percentage points.
2. Where paragraph 1 is applied and if the difference between the aid
or advance actually paid and the aid or advance due exceeds 20 % ofthe aid or advance due, the recipient shall reimburse the total aid oradvance paid, plus interest calculated in accordance with paragraph 1; ifthat difference exceeds 30 %, the producer organization shall alsoforfeit any entitlement to production aid in the following marketingyear.
3. Amounts recovered and interest shall be paid to the competent
paying agency and deducted from expediture financed by the EuropeanAgricultural Guidance and Guarantee Fund.
4. Member States shall take the measures necessary to ensure
compliance with Article 15 (2). They shall make provision in particularfor penalties against the officers of the producer organization commen-surate with the seriousness of any irregularity.
5. Where the quantity of a product delivered under a multiannual
contract for a marketing year is found to be less than the minimumquantity laid down in Article 3 (6), the corresponding aid under themultiannual contract shall be reduced by 50 % for the marketing yearin question. The recipient shall reimburse the difference between the aidactually paid and the aid due, plus interest calculated in accordance withparagraph 1.
Where three multiannual contracts or more are affected at the same time
by a failure to deliver the minimum quantity for a marketing year, theproducer organization in question shall be barred from signing furthermultiannual contracts from the time such failure is observed. Dependingon the seriousness of such failure, the Member State shall determine theduration of such a bar. It shall cover at least two marketing years. Thefirst subparagraph shall apply to all contracts.
6. Where producer organizations commit irregularities on more than
one occasion, Member States shall withdraw the producer organiza-
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tion’s recognition or preliminary recognition in the case of producergroups granted preliminary recognition.
Article 21
1. Where in the course of a marketing year processors are found to
have failed to process the total quantity of a product delivered to themunder contracts, they shall be liable to a financial penalty. The lattershall be calculated as follows:
(a) where the difference between the quantity delivered and the
quantity processed does not exceed 5 %, the penalty shall be equalto three times the amount obtained by multiplying 5 % of the totalquantity of product delivered by the level of aid corresponding tothe multiannual contract for the marketing year in question;
(b) where the difference falls between 5 % and 20 %, the penalty shall
be equal to four times the amount obtained by multiplying 20 % ofthe total quantity of product delivered by the level of aid corre-sponding to the multiannual contract for the marketing year inquestion and the processor shall be barred from the scheme for themarketing year following that in which his failure to process isestablished;
(c) where the difference exceeds 20 %, the penalty shall be equal to
five times the amount obtained by multiplying 50 % of the totalquantity of product delivered by the level of aid corresponding tothe multiannual contract for the marketing year in question and theprocessor shall be barred from the scheme for the three marketingyears following that in which his failure to process is established.
2. The penalty referred to in paragraph 1 shall not be applied if the
processor can prove to the satisfaction of the competent nationalauthority, that the irregularities were not deliberate or the result ofserious negligence.
CHAPTER VII
Communications to the Commission
Article 22
1. Each Member State shall notify to the Commission:
(a) the quantity of each product covered by contracts for the marketing
year in progress, broken down by delivery period, at the latest by:
(i) 1 July in the case of lemons;
(ii) 1 December in the case of other products;
(b) the quantity of each product delivered for processing under Regula-
tion (EC) No 2202/96, at the latest by:
(i) 15 July of the following marketing year in the case of lemons;
(ii) 1 September of the marketing year in progress in the case of
mandarins, clementines and satsumas;
(iii) 1 December of the following marketing year in the case of
oranges, grapefruit and pomelos.
On the basis of the information referred to in the first subparagraph, the
Commission shall determine whether the processing thresholds referredto in Article 5 of Regulation (EC) No 2202/96 have been complied withor exceeded. Member States shall be immediately informed of theresults of this check. A decision shall be taken on the financialconsequences of exceeding the thresholds in accordance with Article 6of Regulation (EC) No 2202/96.
2. In respect of each product, at the latest by 1 January of the
following marketing year, each Member State concerned shall commu-nicate to the Commission:
(a) the quantities received by processors, broken down by finished
product and by-product obtained;
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(b) the quantities received by processors under contracts, broken down
by delivery period and type of contract, that is, either covering onemarketing year or multiannual;
(c) the quantities received by processors under contracts, broken down
by finished product and by-product obtained;
(d) the quantities of each finished product and by-product obtained
from the quantities referred to in (a); in the case of juice, suchquantities shall be broken down by concentration, expressed indegrees Brix;
(e) the quantities of each finished product and by-product obtained
from the quantities referred to in (c); in the case of juice, suchquantities shall be broken down by concentration, expressed indegrees Brix;
(f) the quantities of each finished product and by-product in stock at
the end of the marketing year;
(g) the quantities covered by contracts and delivered, by type of
contract, that is, either covering one marketing year or multiannual;
(h) expenditure, expressed in national currency, on aid paid to producer
organizations.
The quantities shall be expressed in net weight.
CHAPTER VIII
Transitional and final provisions
Article 23
1. As regards grapefruit and pomelos, the exceeding of the
processing thresholds laid down in Article 5 (2) of Regulation (EC) No2202/96 for the 1997/98 and 1998/99 marketing years shall be assessedon the basis of:
(a) the quantities processed during the 1997/98 marketing year under
Regulation (EC) No 2202/96 for the 1997/98 marketing year;
(b) the average quantities processed during the 1997/98 and 1998/99
marketing years under Regulation (EC) No 2202/96 for the 1998/99marketing year.
2. By way of an exception in the case of the 1997/98 marketing year:
(a) operations referred to in Article 5 (1), Article 7 (1) and Article 8
shall be carried out at the latest by:
(i) 1 December for lemons;
(ii) 1 February for oranges;
(b) notifications as provided for in Article 22 (1) (a) shall forwarded at
the latest by:
(i) 15 January for lemons;
(ii) 15 March for oranges;
(c) advances on aid as provided for in Article 14 (4) for the first and
second delivery periods may not be paid before:
(i) 1 March for lemons;
(ii) 15 April for oranges.
Member States shall take the measures necessary to facilitate and
monitor such operations.
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Article 24
Regulation (EC) No 3338/93 is hereby repealed.
Article 25
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
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ANNEX
MINIMUM REQUIREMENTS AS PROVIDED FOR IN ARTICLE 9
Products delivered for processing must:
1. be whole, of sound and fair merchantable quality and suitable for processing.
Products affected by rot are excluded;
2. comply with the following minimum values:
(a) Products for processing into juice
Yield in juice Degrees Brix (1)
Oranges 30 % 10 °
Mandarins 23 % 10 °
Clementines 25 % 10 °
Grapefruit and pomelos 22 % 8 °
Lemons 20 % 7°
(1) Refractometric method.
(b) Products for processing into segments
Yield in juice Degrees Brix (1)
Clementines 33 % 10 °
Satsumas 33 % 10°
(1) Refractometric method.
►C1For processing into segments, ◄clementines and satsumas must be at
least 45 mm in size.