02007R1234 — EN — 31.12.2013 — 015.005

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Amended by:





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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)







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;

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(ii) EUR 169,80 per 100 kg for skimmed milk powder;

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(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

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(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

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(iii) for industrial use referred to in Article 62.

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(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

Distribution to the most deprived persons in the Community

1. Products which are in intervention stocks shall be made available to certain designated organisations to enable food to be distributed to the most deprived persons in the Community in accordance with an annual plan.

The distribution 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 implementing the action.

2. A product may be mobilised on the Community market where:

(a) it is temporarily unavailable in Community intervention stocks during implementation of the annual plan referred to in paragraph 1, to the extent necessary to allow implementation of the plan in one or more Member States, and provided that the costs remain within the limits of the costs provided for in the Community budget for that purpose, or

(b) implementation of the plan would involve the transfer between Member States of small quantities of products in intervention in a Member State other than that or those in which the product is required.

3. Member States concerned shall designate the organisations referred to in paragraph 1 and shall notify the Commission in due time each year if they wish to apply this scheme.

4. The products referred to in paragraphs 1 and 2 shall be released free of charge to the designated organisations. The accounting value of such products shall be the intervention price, adjusted by coefficients where necessary to take account of quality differences.

5. Without prejudice to Article 190, the products made available under paragraphs 1 and 2 of this Article shall be financed by appropriations in the relevant budgetary heading within the EAGF of the budget of the European Communities. Provision may also be made for this financing to contribute towards the costs of transport of products from intervention centres and for administrative costs for the designated organisations generated by the implementation of the scheme set out in this Article, excluding any costs which may be borne by the beneficiaries within the framework of the application of paragraphs 1 and 2.

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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 considered as a single Member State for the purposes of this Article.

2. Authorisation shall be granted if storage is essential and taking into account the following factors:

(a) storage possibilities and storage requirements in the Member State within whose jurisdiction the paying agency falls and in other Member States;

(b) any additional costs resulting from storage in the Member State within whose jurisdiction the paying agency falls and from transportation.

3. Authorisation for storage in a third country shall be granted only if, on the basis of the criteria set out in paragraph 2, storage in another Member State would create significant difficulties.

4. The information referred to in point (a) of paragraph 2 shall be drawn up after consulting all the Member States.

5. Any customs duties and any other amounts to be granted or levied under the common agricultural policy shall not apply to products:

(a) transported following an authorisation granted under paragraphs 1, 2 and 3, or

(b) transferred from one paying agency to another.

6. Any paying agency acting in accordance with paragraphs 1, 2 and 3 shall remain responsible for products stored outside the territory of the Member State within whose jurisdiction it falls.

7. If products held by a paying agency outside the territory of the Member State within whose jurisdiction it falls are not brought back into that Member State, they shall be disposed of at the prices and subject to the conditions laid down or to be laid down for the place of storage.

Article 40

Rules for tendering procedures

Tender procedures shall ensure equality of access of all persons concerned.

In the selection of tenders preference shall be given to those which are most favourable to the Community. In any case, the award of a contract shall not necessarily ensue.

Article 41

Intervention centres

1. The Commission shall designate the intervention centres in the cereals and rice sectors and determine the conditions applying thereto.

In respect of products of the cereals sector, the Commission may designate intervention centres for each cereal.

2. When drawing up the list of intervention centres the Commission shall in particular take account of the following factors:

(a) situation of the centres in surplus areas in respect of the products concerned;

(b) availability of sufficient premises and technical equipment;

(c) favourable situation as regards means of transport.

Article 42

Carcass classification

1. Community scales for the classification of carcasses shall apply in accordance with the rules laid down in Annex V in the following sectors:

(a) beef and veal as regards carcasses of adult bovine animals;

(b) pigmeat as regards carcasses of pigs other than those which have been used for breeding.

In the sheepmeat and goatmeat sector Member States may apply a Community scale for the classification of carcasses as regards sheep carcasses in accordance with the rules laid down in point C of Annex V.

2. On-the-spot inspections in relation to the classification of carcasses of adult bovine animals and sheep shall be carried out on behalf of the Community by a Community inspection committee composed of experts from the Commission and experts appointed by the Member States. This Committee shall report back to the Commission and the Member States on the inspections carried out.

The Community shall bear the costs resulting from the inspections carried out.

Article 43

Implementing rules

Without prejudice to any specific powers conferred upon the Commission by the provisions of this Chapter, the Commission shall adopt the detailed rules for its implementation, which may relate in particular to:

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(a) the requirements and conditions to be met by products to be bought into public intervention as referred to in Article 10 or for which aid for private storage is granted as referred to in Articles 28 and 31, in particular with respect to quality, quality groups, quality grades, categories, quantities, packaging including labelling, maximum ages, preservation, the stage of the products to which the intervention price relates, and the duration of private storage;

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(aa) the respect of the maximum quantities and quantitative limits set out in Article 13(1) and point (a) of Article 18(1); in this context, the implementing rules may authorise the Commission to close buying-in at a fixed price, adopt allocation coefficients and, for common wheat, switch to the tendering procedure referred to in Article 18(2), without the assistance of the Committee referred to in Article 195(1);

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(b) amendments to Part B of Annex IV;

(c) where applicable, the scale of applicable price increases and reductions;

(d) the procedures and conditions for taking over into public intervention by paying agencies and the granting of aid for private storage, in particular:

(i) with regard to the conclusion and the content of contracts;

(ii) the duration of the period of private storage and the conditions according to which such periods, once specified in the contracts, may be curtailed or extended;

(iii) the conditions according to which it may be decided that products covered by private storage contracts may be remarketed or disposed of;

(iv) the Member State where a request for private storage may be submitted;

(e) the adoption of the list of representative markets referred to in Articles 17 and 37;

(f) the rules as regards the conditions for disposal of products bought-in under public intervention, in particular as regards selling prices, the conditions for release from storage, where appropriate, the subsequent use or destination of products thus released, checks to be carried out and, as the case may be, a system of securities to be applied;

(g) the setting-up of the annual plan referred to in Article 27(1);

(h) the condition of mobilisation on the Community market referred to in Article 27(2);

(i) the rules concerning the authorisations referred to in Article 39 including, as far as strictly necessary, derogations from the rules on trade;

(j) the rules relating to the procedures to be followed in the case of the making use of tendering procedures;

(k) the rules concerning the designation of intervention centres referred to in Article 41;

(l) the conditions to be met by the stores where products may be stored;

(m) the Community scales for the classification of carcasses provided for in Article 42(1), in particular as regards:

(i) definitions;

(ii) carcass presentations for the purpose of price reporting in respect of the classification of carcasses of adult bovine animals;

(iii) in respect of the measures to be taken by slaughterhouses as provided for in point III of point A of Annex V:

— any derogations referred to in Article 5 of Directive 88/409/EEC for slaughterhouses wishing to restrict their production to the local market,

— any derogations which may be granted to Member States which so request for slaughterhouses in which few bovine animals are slaughtered;

(iv) authorising the Member States not to apply the grading scale for the classification of pig carcasses and to use assessment criteria in addition to weight and estimated lean-meat content;

(v) rules concerning the reporting of prices of certain products by the Member States.







CHAPTER II

Special intervention measures







Section I

Exceptional market support measures

Article 44

Animal diseases

1. The Commission may adopt exceptional support measures for the affected market in order to take account of restrictions on intra-Community and third-country trade which may result from the application of measures for combating the spread of diseases in animals.

The measures provided for in the first subparagraph shall apply to the following sectors:

(a) beef and veal;

(b) milk and milk products;

(c) pigmeat;

(d) sheepmeat and goatmeat;

(e) eggs;

(f) poultrymeat.

2. The measures provided for in the first subparagraph of paragraph 1 shall be taken at the request of the Member State(s) concerned.

They may be taken only if the Member State(s) concerned has (have) taken health and veterinary measures quickly to stamp out the disease, and only to the extent and for the duration strictly necessary to support the market concerned.

Article 45

Loss in consumer confidence

With regard to the poultrymeat and eggs sectors, the Commission may adopt exceptional market support measures in order to take account of serious market disturbances directly attributed to a loss in consumer confidence due to public health, or animal health risks.

Those measures shall be taken at the request of the Member State(s) concerned.

Article 46

Financing

1. For exceptional measures referred to in Articles 44 and 45, the Community shall provide part-financing equivalent to 50 % of the expenditure borne by Member States.

However, with regard to the beef and veal, milk and milk products, pigmeat and sheepmeat and goatmeat sectors, the Community shall provide part-financing equivalent to 60 % of such expenditure when combating foot-and-mouth disease.

2. Member States shall ensure that, where producers contribute to the expenditure borne by Member States, this does not result in distortion of competition between producers in different Member States.

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Section II

Measures in the cereals and rice sectors

Article 47

Special market measures in the cereals sector

1. Where the market situation so dictates, the Commission may take special intervention measures in respect of the cereals sector. Such intervention measures may in particular be taken if, in one or more regions of the Community, market prices fall, or threaten to fall, in relation to the intervention price.

2. The nature and application of the special intervention measures and the conditions and procedures for the sale or for any other means of disposal of the products subject to those measures shall be adopted by the Commission.

Article 48

Special market measures in the rice sector

1. The Commission may take special measures to:

(a) prevent large-scale application of public intervention, as provided for in Section II of Chapter I of this Part, in the rice sector in certain regions of the Community;

(b) make up for paddy rice shortages following natural disasters.

2. The Commission shall adopt the detailed rules for the implementation of this Article.







Section III

Measures in the sugar sector

Article 49

Minimum beet price

1. The minimum price for quota beet shall be:

(a) EUR 27,83 per tonne for the marketing year 2008/2009;

(b) EUR 26,29 per tonne as from the marketing year 2009/2010.

2. The minimum price referred to in paragraph 1 shall apply to sugar beet of the standard quality defined in Part B of Annex IV.

3. Sugar undertakings buying quota beet suitable for processing into sugar and intended for processing into quota sugar shall be required to pay at least the minimum price, adjusted by price increases or reductions to allow for deviations from the standard quality.

Increases and reductions referred to in the first subparagraph shall be applied in accordance with implementing rules to be laid down by the Commission.

4. For the quantities of sugar beet corresponding to the quantities of industrial sugar or surplus sugar that are subject to the surplus levy provided for in Article 64, the sugar undertaking concerned shall adjust the purchase price so that it is at least equal to the minimum price for quota beet.

Article 50

Interprofessional agreements

1. Agreements within the trade and delivery contracts shall conform to paragraph 3 and to purchase terms to be determined by the Commission, in particular as regards the conditions governing the purchase, delivery, taking over and payment of beet.

2. The terms for buying sugar beet and sugar cane shall be governed by agreements within the trade concluded between Community growers of these raw materials and Community sugar undertakings.

3. In delivery contracts, a distinction shall be made according to whether the quantities of sugar to be manufactured from sugar beet will be:

(a) quota sugar;

(b) out-of-quota sugar.

4. Each sugar undertaking shall provide the Member State in which it produces sugar with the following information:

(a) the quantities of beet referred to in point (a) of paragraph 3, for which they have concluded pre-sowing delivery contracts and the sugar content on which those contracts are based;

(b) the corresponding estimated yield.

Member States may require additional information.

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5. Sugar undertakings which have not signed pre-sowing delivery contracts at the minimum price for quota beet for a quantity of beet equivalent to the sugar for which they hold a quota, adjusted, as the case may be, by the coefficient for a preventive withdrawal fixed in accordance with the first subparagraph of Article 52(2), shall be required to pay at least the minimum price for quota beet for all the sugar beet they process into sugar.

6. Subject to the approval of the Member State concerned, agreements within the trade may derogate from paragraphs 3, 4 and 5.

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7. If no agreements within the trade exist, the Member State concerned shall take the necessary steps compatible with this Regulation to protect the interests of the parties concerned.

Article 51

Production charge

1. A production charge shall be levied on the sugar quota, the isoglucose quota and the inulin syrup quota held by undertakings producing sugar, isoglucose or inulin syrup as referred to in Article 56(2).

2. The production charge shall be set at EUR 12,00 per tonne of the quota sugar and quota inulin syrup. For isoglucose, the production charge shall be set at 50 % of the charge applicable to sugar.

3. The totality of the production charge paid in accordance with paragraph 1 shall be charged by the Member State to the undertakings on its territory according to the quota held during the marketing year concerned.

Payments shall be made by the undertakings by the end of February of the relevant marketing year at the latest.

4. Community sugar and inulin syrup undertakings may require sugar-beet or sugar-cane growers or chicory suppliers to bear up to 50 % of the production charge concerned.

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Article 52

Withdrawal of sugar

1. In order to preserve the structural balance of the market at a price level which is close to the reference price, taking into account the commitments of the Community resulting from agreements concluded in accordance with Article 300 of the Treaty, the Commission may decide to withdraw from the market, for a given marketing year, those quantities of sugar or isoglucose produced under quotas which exceed the threshold calculated in accordance with paragraph 2 of this Article.

2. The withdrawal threshold referred to in paragraph 1 of this Article shall be calculated, for each undertaking holding a quota, by multiplying its quota by a coefficient, which shall be fixed by the Commission by 16 March of the previous marketing year, on the basis of expected market trends. For the marketing year 2008/2009, that coefficient shall be applied to the quota after renunciations in accordance with Regulation (EC) No 320/2006 granted on 15 March 2008 at the latest.

On the basis of updated market trends, the Commission may decide by 31 October of the marketing year concerned either to adjust or, in the case where no such decision has been taken in accordance with the first subparagraph of this paragraph, to fix a coefficient.

3. Each undertaking provided with a quota shall store at its own expense until the beginning of the following marketing year the sugar produced under quota beyond the threshold calculated in accordance with paragraph 2. The sugar or isoglucose quantities withdrawn during a marketing year shall be treated as the first quantities produced under quota for the following marketing year.

By way of derogation from the first subparagraph of this paragraph, taking into account the expected sugar market trends, the Commission may decide to consider, for the current and/or the following marketing year, all or part of the withdrawn sugar or isoglucose as:

(a) surplus sugar or surplus isoglucose available to become industrial sugar or industrial isoglucose; or

(b) temporary quota production of which a part may be reserved for export respecting the commitments of the Community resulting from agreements concluded in accordance with Article 300 of the Treaty.

4. If sugar supply in the Community is inadequate, the Commission may decide that a certain quantity of withdrawn sugar may be sold on the Community market before the end of the period of withdrawal.

5. In the case where withdrawn sugar is treated as the first sugar production of the following marketing year, the minimum price of that marketing year shall be paid to beet growers.

In the case where withdrawn sugar becomes industrial sugar or is exported according to points (a) and (b) of paragraph 3 of this Article, the requirements of Article 49 on the minimum price shall not apply.

In the case where withdrawn sugar is sold on the Community market before the end of the period of withdrawal according to paragraph 4, the minimum price of the ongoing marketing year shall be paid to beet growers.

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Article 52a

Withdrawal of sugar in the 2008/2009 and 2009/2010 marketing years

1. By way of derogation from Article 52(2) of this Regulation, for Member States for which the national sugar quota has been reduced as a result of renunciations of quota in accordance with Articles 3 and 4a(4) of Regulation (EC) No 320/2006, the coefficient shall be fixed by the Commission for the 2008/2009 and 2009/2010 marketing years by way of application of Annex VIIc to this Regulation.

2. An undertaking which, in accordance with Article 3(1)(a) or (b) of Regulation (EC) No 320/2006, renounces, with effect from the following marketing year, the total quota assigned to it shall, at its request, not be submitted to the application of the coefficients referred to in Article 52(2) of this Regulation. That request shall be submitted before the end of the marketing year to which the withdrawal applies.

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Article 53

Implementing rules

The Commission may adopt the detailed rules for the implementation of this Section and, in particular:

(a) the criteria to be applied by the sugar undertakings when allocating among beet sellers the quantities of beet to be covered by pre-sowing delivery contracts as referred to in Article 50(4);

(b) the percentage of withdrawn quota sugar referred to in Article 52(1);

(c) the conditions for the payment of the minimum price where the withdrawn sugar is being sold on the Community market under Article 52(4).







Section IV

Adjustment of supply

Article 54

Measures to facilitate the adjustment of supply to market requirements

In order to encourage action by trade organisations and joint trade organisations to facilitate the adjustment of supply to market requirements, with the exception of action relating to withdrawal from the market, the Commission may take the following measures in respect of the live plants, beef and veal, pigmeat, sheepmeat and goatmeat, eggs and poultrymeat sectors:

(a) measures to improve quality;

(b) measures to promote better organisation of production, processing and marketing;

(c) measures to facilitate the recording of market price trends;

(d) measures to permit the establishment of short and long-term forecasts on the basis of the means of production used.







CHAPTER III

Systems of production limitation







Section I

General provisions

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Article 55

Quota systems and production potential

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1. A quota system shall apply to the following products:

(a) milk and other milk products within the meaning of points (a) and (b) of Article 65;

(b) sugar, isoglucose and inulin syrup;

(c) potato starch which may benefit from Community aid.

2. As regards the quota systems referred to in points (a) and (b) of paragraph 1 of this Article, if a producer exceeds the relevant quota and, with regard to sugar, does not make use of the surplus quantities as provided for in Article 61, a surplus levy shall be payable on such quantities, subject to the conditions set out in Sections II and III.

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2a. In relation to the wine sector, rules concerning production potential as regards unlawful plantings, transitional planting rights as well as a grubbing-up scheme shall apply in accordance with the provisions set out in Section IVa.

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Section II

Sugar







Subsection I

Quota allocation and management

Article 56

Quota allocation

1. The quotas for the production of sugar, isoglucose and inulin syrup at national or regional level are fixed in Annex VI.

2. Member States shall allocate a quota to each undertaking producing sugar, isoglucose or inulin syrup established in its territory and approved in accordance with Article 57.

For each undertaking, the allocated quota shall be equal to the quota under Regulation (EC) No 318/2006 which was allocated to the undertaking for the marketing year 2007/2008.

3. In case of allocation of a quota to a sugar undertaking having more than one production unit, the Member States shall adopt the measures they consider necessary in order to take due account of the interests of sugar beet and cane growers.

Article 57

Approved undertakings

1. On request, Member States shall grant an approval to an undertaking producing sugar, isoglucose or inulin syrup or to an undertaking that processes these products into a product included in the list referred to in Article 62(2) provided that the undertaking:

(a) proves its professional production capacities;

(b) agrees to provide any information and to be subject to controls related to this Regulation;

(c) is not subject to suspension or withdrawal of the approval.

2. The approved undertakings shall provide the Member State in whose territory the harvest of beet, cane or the refining takes place, with the following information:

(a) the quantities of beet or cane for which a delivery contract has been concluded, as well as the corresponding estimated yields of beet or cane, and sugar per hectare;

(b) data regarding provisional and actual sugar beet, sugar cane and raw sugar deliveries, and regarding sugar production and statements of sugar stocks;

(c) quantities of white sugar sold and corresponding prices and conditions.

Article 58

Additional and supplementary isoglucose quota

1. In the marketing year 2008/2009 an additional isoglucose quota of 100 000 tonnes shall be added to the quota of the preceding marketing year. This increase shall not concern Bulgaria and Romania.

In the marketing year 2008/2009 an additional isoglucose quota of 11 045 tonnes for Bulgaria and of 1 966 tonnes for Romania shall be added to the quota of the preceding marketing year.

Member States shall allocate the additional quotas to undertakings, proportionately to the isoglucose quotas that have been allocated in accordance with Article 56(2).

2. Italy, Lithuania and Sweden may allocate, upon request by any undertaking established on their respective territories, a supplementary isoglucose quota in the marketing years 2008/2009 and 2009/2010. The maximum supplementary quotas are fixed per Member State in Annex VII.

3. A one-off amount of EUR 730 shall be levied on the quotas that have been allocated to undertakings in accordance with paragraph 2. It shall be collected per tonne of supplementary quota allocated.

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Article 59

Quota management

1. The Commission shall adjust the quotas set out in Annex VI by 30 April 2008 for the 2008/2009 marketing year and by 28 February 2009 and 2010 respectively for the 2009/2010 and 2010/2011 marketing years. The adjustments shall result from the application of paragraph 2 of this Article and Article 58 of this Regulation, and of Articles 3 and 4a(4) of Regulation (EC) No 320/2006.

2. Taking into account the results of the restructuring scheme provided for in Regulation (EC) No 320/2006, the Commission shall decide by 28 February 2010 the common percentage needed to reduce the existing quotas for sugar and isoglucose per Member State or region with a view to avoiding market imbalances in the marketing years from the 2010/2011 marketing year. The Member States shall adjust the quota of each undertaking accordingly.

By way of derogation from the first subparagraph of this paragraph, for Member States for which the national quota has been reduced as a result of renunciations of quota in accordance with Articles 3 and 4a(4) of Regulation (EC) No 320/2006, the Commission shall fix the percentage by way of application of Annex VIIa to this Regulation. Such Member States shall adjust, for each undertaking in their territory holding a quota, the percentage in accordance with Annex VIIb to this Regulation.

The first and second subparagraphs of this paragraph shall not apply to the outermost regions referred to in Article 299(2) of the Treaty.

Article 60

National quota reallocation and reduction of quotas

1. A Member State may reduce the sugar or isoglucose quota allocated to an undertaking established on its territory by up to 10 % for the marketing year 2008/2009 and following, whilst respecting the freedom of undertakings to participate in the mechanisms established by Regulation (EC) No 320/2006. In doing so, the Member States shall apply objective and non discriminatory criteria.

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2. Member States may transfer quotas between undertakings in accordance with the rules laid down in Annex VIII and taking into consideration the interests of each of the parties concerned, particularly sugar beet and cane growers.

3. The quantities reduced pursuant to paragraphs 1 and 2 shall be allocated by the Member State in question to one or more undertakings on its territory, whether or not holding a quota.

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4. By way of derogation from paragraph 3 of this Article, where Article 4a of Regulation (EC) No 320/2006 is applied, Member States shall adjust the sugar quota allocated to the undertaking concerned by applying the reduction defined under paragraph 4 of that Article, within the limit of the percentage fixed in paragraph 1 of this Article.

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Subsection II

Quota Overrun

Article 61

Scope

The sugar, isoglucose or inulin syrup produced during a marketing year in excess of the quota referred to in Article 56 may be:

(a) used for the processing of certain products as referred to in Article 62;

(b) carried forward to the quota production of the next marketing year, in accordance with Article 63;

(c) used for the specific supply regime for the outermost regions, in accordance with Title II of Council Regulation (EC) No 247/2006 ( 1 ); or

(d) exported within the quantitative limit fixed by the Commission respecting the commitments resulting from agreements concluded in accordance with Article 300 of the Treaty.

Other quantities shall be subject to the surplus levy referred to in Article 64.

Article 62

Industrial sugar

1. Industrial sugar, industrial isoglucose or industrial inulin syrup shall be reserved for the production of one of the products referred to in paragraph 2 when:

(a) it has been subject to a delivery contract concluded before the end of the marketing year between a producer and a user which have both been granted approval in accordance with Article 57; and

(b) it has been delivered to the user by 30 November of the following marketing year at the latest.

2. The Commission shall draw up a list of products for the production of which industrial sugar, industrial isoglucose or industrial inulin syrup is used.

The list shall in particular include:

(a) bioethanol, alcohol, rum, live yeast and quantities of syrups for spreading and those to be processed into Rinse appelstroop;

(b) certain industrial products without sugar content but the processing of which uses sugar, isoglucose or inulin syrup;

(c) certain products of the chemical or pharmaceutical industry which contain sugar, isoglucose or inulin syrup.

Article 63

Carry forward of surplus sugar

1. Each undertaking may decide to carry forward all or part of its production in excess of its sugar quota, its isoglucose quota or its inulin syrup quota to be treated as part of the next marketing year's production. Without prejudice to paragraph 3, that decision shall be irrevocable.

2. Undertakings which take the decision referred to in paragraph 1 shall:

(a) inform the Member State concerned before a date to be determined by that Member State:

— between 1 February and 30 June of the current marketing year for quantities of cane sugar being carried forward,

— between 1 February and 15 April of the current marketing year for other quantities of sugar or inulin syrup being carried forward;

(b) undertake to store such quantities at their own expense until the end of the current marketing year.

3. If an undertaking's definitive production in the marketing year concerned was less than the estimate made when the decision in accordance with paragraph 1 was taken, the quantity carried forward may be adjusted retroactively by 31 October of the following marketing year at the latest.

4. The quantities carried forward shall be deemed to be the first quantities produced under the quota of the following marketing year.

5. Sugar stored in accordance with this Article during a marketing year may not be subject to any other storage measures provided for in Articles 13, 32 or 52.

Article 64

Surplus levy

1. A surplus levy shall be levied on quantities of:

(a) surplus sugar, surplus isoglucose and surplus inulin syrup produced during any marketing year, except for quantities carried forward to the quota production of the following marketing year and stored in accordance with Article 63 or quantities referred to in points (c) and (d) of Article 61;

(b) industrial sugar, industrial isoglucose and industrial inulin syrup for which no proof has been supplied, by a date to be determined by the Commission, that it has been processed into one of the products referred to in Article 62(2);

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(c) sugar and isoglucose withdrawn from the market in accordance with Articles 52 and 52a and for which the obligations provided for in Article 52(3) are not met.

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2. The surplus levy shall be fixed by the Commission at a sufficiently high level in order to avoid the accumulation of quantities referred to in paragraph 1.

3. The surplus levy referred to in paragraph 1 shall be charged by the Member State to the undertakings on its territory according to the quantities of production referred to in paragraph 1 that have been established for those undertakings for the marketing year concerned.







Section III

Milk







Subsection I

General provisions

Article 65

Definitions

For the purposes of this Section:

(a) ‘milk’ shall mean the produce of the milking of one or more cows;

(b) ‘other milk products’ means any milk product other than milk, in particular skimmed milk, cream, butter, yoghurt and cheese; when relevant, these shall be converted into ‘milk equivalents’ by applying coefficients to be fixed by the Commission;

(c) ‘producer’ means a farmer with a holding located within the geographical territory of a Member State, who produces and markets milk or who is preparing to do so in the very near future;

(d) ‘holding’ means a holding as defined in Article 2 of Regulation (EC) No 1782/2003;

(e) ‘purchaser’ means undertakings or groups which buy milk from producers:

— to subject it to collecting, packing, storing, chilling or processing, including under contract,

— to sell it to one or more undertakings treating or processing milk or other milk products.

However, any group of purchasers in the same geographical area which carries out the administrative and accounting operations necessary for the payment of the surplus levy on behalf of its members shall be regarded as a purchaser. For the purposes of the first sentence of this subparagraph, Greece shall be considered a single geographical area and it may deem an official body to be a group of purchasers;

(f) ‘delivery’ means any delivery of milk, not including any other milk products, by a producer to a purchaser, whether the transport is carried out by the producer, a purchaser, an undertaking processing or treating such products or a third party;

(g) ‘direct sale’ means any sale or transfer of milk by a producer directly to consumers, as well as any sale or transfer of other milk products by a producer. The Commission may, while respecting the definition of ‘delivery’ given in point (f), adjust the definition of ‘direct sale’ in order to ensure, in particular, that no quantity of marketed milk or other milk products is excluded from the quota arrangements;

(h) ‘marketing’ means deliveries of milk or direct sales of milk or other milk products;

(i) ‘individual quota’ means a producer's quota at 1 April of any twelve-month period;

(j) ‘national quota’ means the quota referred to in Article 66, fixed for each Member State;

(k) ‘available quota’ means the quota available to producers on 31 March of the twelve-month period for which the surplus levy is calculated, taking account of all transfers, sales, conversions and temporary re-allocations provided for in this Regulation which have taken place during that twelve-month period.







Subsection II

Quota allocation and management

Article 66

National quotas

1. The national quotas for the production of milk and other milk products marketed during seven consecutive periods of twelve months commencing on 1 April 2008 (hereinafter referred to as ‘twelve-month periods’) are fixed in point 1 of Annex IX.

2. The quotas referred to in paragraph 1 shall be divided between producers in accordance with Article 67, distinguishing between deliveries and direct sales. Any overrun of the national quotas shall be determined nationally in each Member State, in accordance with this Section and making a distinction between deliveries and direct sales.

3. The national quotas set out in point 1 of Annex IX shall be fixed without prejudice to possible review in the light of the general market situation and particular conditions existing in certain Member States.

4. For Bulgaria and Romania a special restructuring reserve shall be established as set out in point 2 of Annex IX. This reserve shall be released as from 1 April 2009 to the extent that the on-farm consumption of milk and milk products in each of these countries has decreased since 2002.

The decision on releasing the reserve and its distribution to the deliveries and direct sales quota shall be taken by the Commission on the basis of a report to be submitted by Bulgaria and Romania to the Commission by 31 December 2008. This report shall detail the results and trends of the actual restructuring process in each country's dairy sector, and in particular the shift from production for on-farm consumption to production for the market.

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4a. For Croatia a special restructuring reserve shall be established as set out in point 2 of Annex IX. This reserve shall be released as of 1 April of the first quota year after accession to the extent that the on-farm consumption of milk and milk products in Croatia has decreased in the period 2008-2012.

The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota shall be taken by the Commission in accordance with the procedure referred to in Article 195(2) on the basis of an assessment of a report to be submitted by Croatia by 31 December 2013. That report shall detail the results and trends of the actual restructuring process in Croatia's dairy sector, and in particular the shift from production for on-farm consumption to production for the market.

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5. For Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovenia and Slovakia the national quotas shall include all milk or milk equivalent delivered to a purchaser or sold directly, irrespective of whether it is produced or marketed under a transitional measure applicable in those countries.

Article 67

Individual quotas

1. The producers' individual quota or quotas at 1 April 2008 shall be equal to their individual reference quantity or quantities at 31 March 2008 without prejudice to transfers, sales and conversions of quota that take effect on 1 April 2008.

2. Producers may have either one or two individual quotas, one for deliveries and the other for direct sales. A producer's quantities may be converted from one quota to the other only by the competent authority of the Member State, at the duly justified request of the producer.

3. Where a producer has two quotas, his contribution to any surplus levy due shall be calculated separately for each.

4. The part of the Finnish national quota allocated to the deliveries referred to in Article 66 may be increased by the Commission to compensate Finnish SLOM producers up to200 000 tonnes. This reserve, to be allocated in accordance with Community legislation, must be used exclusively on behalf of producers whose right to take up production again has been affected as a result of accession.

5. Individual quotas shall be modified, where appropriate, for each of the twelve-month periods concerned, so that, for each Member State, the sum of the individual quotas for the deliveries and that for the direct sales does not exceed the corresponding part of the national quota adapted in accordance with Article 69, taking account of any reductions made for allocation to the national reserve as provided for in Article 71.

Article 68

Allocation of quotas from the national reserve

Member States shall adopt rules allowing for allocation to producers of all or part of the quotas from the national reserve provided for in Article 71 on the basis of objective criteria to be notified to the Commission.

Article 69

Management of quotas

1. The Commission shall adapt, for each Member State and for each period, before the end of that period, the division between ‘deliveries’ and ‘direct sales’ of national quotas, in the light of the conversions requested by producers, between individual quotas for deliveries and for direct sales.

2. Member States shall each year forward to the Commission, by dates and according to rules to be fixed by the Commission in accordance with Article 192(2), the information necessary to:

(a) make the adaptation referred to in paragraph 1 of this Article;

(b) calculate the surplus levy to be paid by them.

Article 70

Fat content

1. Each producer shall be assigned a reference fat content, to be applied to the individual quota for deliveries allocated to that producer.

2. For the quotas allocated to producers on 31 March 2008 in accordance with Article 67(1), the reference fat content referred to in paragraph 1 shall be the same as the reference fat content applied to that quota at that date.

3. The reference fat content shall be altered during the conversion referred to in Article 67(2) and where quotas are acquired, transferred or temporarily transferred in accordance with rules to be established by the Commission.

4. For new producers having an individual quota for deliveries allocated entirely from the national reserve, the fat content shall be fixed in accordance with rules to be established by the Commission.

5. The individual reference fat content referred to in paragraph 1 shall be adjusted, where appropriate, upon the entry into force of this Regulation and thereafter, at the beginning of each twelve-month period as necessary, so that, for each Member State, the weighted average of the individual representative fat contents does not exceed by more than 0,1 gram per kg the reference fat content set in Annex X.

For Romania the reference fat content set in Annex X shall be reviewed on the basis of the figures for the full year 2004 and, if necessary, adjusted by the Commission.

Article 71

National reserve

1. Each Member State shall set up a national reserve as part of the national quotas fixed in Annex IX, in particular with a view to making the allocations provided for in Article 68. The national reserve shall be replenished, as appropriate, by withdrawing some quantities as provided for in , retaining part of transfers as provided for in Article 76, or by making an across-the-board reduction in all individual quotas. The quotas in question shall retain their original purpose, i.e. deliveries or direct sales.

2. Any additional quota allocated to a Member State shall automatically be placed in the national reserve and divided into deliveries and direct sales according to foreseeable needs.

3. The quotas placed in the national reserve shall not have a reference fat content.

Article 72

Cases of inactivity

1. When a natural or legal person holding individual quotas no longer meets the conditions referred to in point (c) of Article 65 during a twelve-month period, the corresponding quantities shall revert to the national reserve no later than 1 April of the following calendar year, unless that person becomes once again a producer within the meaning of point (c) of Article 65 before that date.

Where that person becomes once again a producer not later than the end of the second twelve-month period following withdrawal, all or part of the individual quota which had been withdrawn shall revert to that person no later than 1 April following the date of application.

2. Where producers do not market a quantity equal to at least ►M7 85 % ◄ of their individual quota during at least one twelve-month period, Member States may decide whether and on what conditions all or part of the unused quota shall revert to the national reserve.

Member States may determine on what conditions a quota shall be re-allocated to the producer concerned should he resume marketing.

3. Paragraphs 1 and 2 shall not apply in cases of force majeure and in duly justified cases temporarily affecting the production capacity of the producers concerned and recognised by the competent authority.

Article 73

Temporary transfers

1. By the end of each twelve-month period, Member States shall authorise, for the period concerned, any temporary transfers of part of individual quotas which the producers who are entitled thereto do not intend to use.

Member States may regulate transfer operations according to the categories of producers or milk production structures concerned, may limit them to the level of the purchaser or within regions, authorise complete transfers in the cases referred to in (3) and determine to what extent the transferor can repeat transfer operations.

2. Any Member State may decide not to implement paragraph 1 on the basis of one or both of the following criteria:

(a) the need to facilitate structural changes and adjustments;

(b) overriding administrative needs.

Article 74

Transfers of quotas together with land

1. Individual quotas shall be transferred with the holding to the producers taking it over when it is sold, leased, transferred by actual or anticipated inheritance or any other means involving comparable legal effects for the producers, in accordance with detailed rules to be determined by the Member States, taking account of the areas used for dairy production or other objective criteria and, where applicable, of any agreement between the parties. The part of the quota which, where applicable, has not been transferred with the holding shall be added to the national reserve.

2. Where quotas have been or are transferred in accordance with paragraph 1 by means of rural leases or by other means involving comparable legal effects, Member States may decide, on the basis of objective criteria and with the aim of ensuring that quotas are attributed solely to producers, that the quota shall not be transferred with the holding.

3. Where land is transferred to the public authorities and/or for use in the public interest, or where the transfer is carried out for non-agricultural purposes, Member States shall ensure that the necessary measures are taken to protect the legitimate interests of the parties, and in particular, that producers giving up such land are in a position to continue milk production if they so wish.

4. Where there is no agreement between the parties, in the case of tenancies due to expire without any possibility of renewal on similar terms, or in situations involving comparable legal effects, the individual quotas in question shall be transferred in whole or in part to the producer taking them over, in accordance with provisions adopted by the Member States, taking account of the legitimate interests of the parties.

Article 75

Special transfer measures

1. With a view to successfully restructuring milk production or improving the environment, Member States may, in accordance with detailed rules which they shall lay down, taking account of the legitimate interests of the parties concerned:

(a) grant compensation in one or more annual instalments to producers who undertake to abandon permanently all or part of their milk production and place the individual quotas thus released in the national reserve;

(b) determine on the basis of objective criteria the conditions on which producers may obtain, in return for payment, at the beginning of a twelve-month period, the re-allocation by the competent authority or a body designated by that authority of individual quotas released definitively at the end of the preceding twelve-month period by other producers in return for compensation in one or more annual instalments equal to the abovementioned payment;

(c) centralise and supervise transfers of quotas without land;

(d) provide, in the case of land transferred with a view to improving the environment, for the individual quota concerned to be allocated to a producer giving up the land but wishing to continue milk production;

(e) determine, on the basis of objective criteria, the regions or collection areas within which the permanent transfer of quotas without transfer of the corresponding land is authorised, with the aim of improving the structure of milk production;

(f) authorise, upon application by a producer to the competent authority or a body designated by that authority, the definitive transfer of quotas without transfer of the corresponding land, or vice versa, with the aim of improving the structure of milk production at the level of the holding or to allow for extensification of production.

2. Paragraph 1 may be implemented at national level, at the appropriate territorial level or in specified collection areas.

Article 76

Retention of quotas

1. In the case of transfers as referred to in Articles 74 and 75 Member States may, on the basis of objective criteria, retain part of the individual quotas for their national reserve.

2. Where quotas have been or are transferred in accordance with Articles 74 and 75 with or without the corresponding land by means of rural leases or by other means involving comparable legal effects, Member States may decide, on the basis of objective criteria and with the aim of ensuring that quotas are attributed solely to producers, whether and under which conditions all or part of the transferred quota shall revert to the national reserve.

Article 77

Aid for the acquisition of quotas

No financial assistance linked directly to the acquisition of quotas may be granted by any public authority for the sale, transfer or allocation of quotas under this Section.







Subsection III

Quota overrun

Article 78

Surplus levy

1. A surplus levy shall be payable on milk and other milk products marketed in excess of the national quota as established in accordance with Subsection II.

The levy shall be set, per 100 kilograms of milk, at EUR 27,83 .

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However, for the twelve-month periods starting on 1 April 2009 and 1 April 2010, the surplus levy for milk delivered in excess of 106 % of the national quota for deliveries applicable for the twelve-month period starting on 1 April 2008 shall be set at 150 % of the levy referred to in the second subparagraph.

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1a. By way of derogation from the first subparagraph of paragraph 1, for the 12-month periods starting on 1 April 2009 and 1 April 2010 and as regards deliveries the surplus levy shall be payable on milk marketed in excess of the national quota as established in accordance with Subsection II and reduced by individual quotas for deliveries released into the national reserve in accordance with Article 75(1)(a) as from 30 November 2009 and kept therein until 31 March of the 12-month period concerned.

▼B

2. Member States shall be liable to the Community for the surplus levy resulting from overruns of the national quota, determined nationally and separately for deliveries and direct sales, and between 16 October and 30 November following the twelve-month period concerned, shall pay 99 % of the amount due to the EAGF.

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2a. The difference between the amount of the surplus levy resulting from the application of paragraph 1a and that resulting from the application of the first subparagraph of paragraph 1 shall be used by the Member State for financing restructuring measures in the dairy sector.

▼B

3. If the surplus levy provided for in paragraph 1 has not been paid before the due date and after consultation of the Committee of the Agricultural Funds, the Commission shall deduct a sum equivalent to the unpaid surplus levy from the monthly payments within the meaning of Articles 14 and 15(2) of Regulation (EC) No 1290/2005. Before taking its decision, the Commission shall warn the Member State concerned, which shall make its position known within one week. Article 14 of Council Regulation (EC) No 2040/2000 ( 2 ) shall not apply.

4. The Commission shall determine the arrangements for the implementation of this Article.

Article 79

Contribution of producers to the surplus levy due

The surplus levy shall be entirely allocated, in accordance with Articles 80 and 83, among the producers who have contributed to each of the overruns of the national quotas referred to in Article 66(2).

Without prejudice to Articles 80(3) and 83(1), producers shall be liable vis-à-vis the Member State for payment of their contribution to the surplus levy due, calculated in accordance with Articles 69, 70 and 80, for the mere fact of having overrun their available quotas.

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For the 12-month periods starting on 1 April 2009 and 1 April 2010 and as regards the deliveries, the surplus levy shall be entirely allocated, in accordance with Articles 80 and 83, among the producers who have contributed to the overrun of the national quota as established by application of Article 78(1a).

▼B

Article 80

Surplus levy on deliveries

1. In order to draw up the definitive surplus levy statement, the quantities delivered by each producer shall be increased or reduced to reflect any difference between the real fat content and the reference fat content, using coefficients and on terms to be laid down by the Commission.

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At national level, the surplus levy shall be calculated on the basis of the sum of the deliveries, adjusted in accordance with the first subparagraph.

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3. Each producer's contribution to payment of the surplus levy shall be established by decision of the Member State, after any unused part of the national quota allocated to deliveries has or has not been re-allocated, in proportion to the individual quotas of each producer or according to objective criteria to be set by the Member States:

(a) either at national level on the basis of the amount by which each producer's quota has been exceeded;

(b) or firstly at the level of the purchaser and thereafter at national level where appropriate.

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Where the third subparagraph of Article 78(1) applies, Member States, in establishing each producer's contribution to the amount of levy payable due to the application of the higher rate referred to in that subparagraph, shall ensure that this amount is contributed proportionately by the producers responsible according to objective criteria to be set by the Member State.

▼B

Article 81

Role of purchasers

1. Purchasers shall be responsible for collecting from producers contributions due from the latter by virtue of the surplus levy and shall pay to the competent body of the Member State, before a date and following a procedure to be laid down by the Commission, the amount of these contributions deducted from the price of the milk paid to the producers responsible for the overrun or, failing this, collected by any other appropriate means.

2. Where a purchaser fully or partially replaces one or more other purchasers, the individual quotas available to the producers shall be taken into account for the remainder of the twelve-month period in progress, after deduction of quantities already delivered and account being taken of their fat content. This paragraph shall also apply where a producer transfers from one purchaser to another.

3. Where, during the reference period, quantities delivered by a producer exceed that producer's available quota, the relevant Member State may decide that the purchaser shall deduct part of the price of the milk in any delivery by the producer concerned in excess of the quota, by way of an advance on the producer's contribution, in accordance with detailed rules laid down by the Member State. The Member State may make specific arrangements to enable purchasers to deduct this advance where producers deliver to several purchasers.

Article 82

Approval

Purchaser status shall be subject to prior approval by the Member State in accordance with criteria to be laid by the Commission.

The conditions to be fulfilled and information to be provided by producers in the case of direct sales shall be established by the Commission.

Article 83

Surplus levy on direct sales

1. In the case of direct sales, each producer's contribution to payment of the surplus levy shall be established by decision of the Member State, after any unused part of the national quota allocated to direct sales has or has not been re-allocated, at the appropriate territorial level or at national level.

2. Member States shall establish the basis of calculation of the producer's contribution to the surplus levy due on the total quantity of milk sold, transferred or used to manufacture the milk products sold or transferred by applying criteria fixed by the Commission.

3. No correction linked to fat content shall be taken into account for the purpose of drawing up the definitive surplus levy statement.

4. The Commission shall determine how and when the surplus levy must be paid to the Member State's competent body.

Article 84

Amounts paid in excess or unpaid

1. Where, in the case of deliveries or direct sales, the surplus levy is found to be payable and the contribution collected from producers is greater than that levy, the Member State may:

(a) use partially or totally the excess to finance the measures in point (a) of Article 75(1), and/or

(b) redistribute it partially or totally to producers who:

— fall within priority categories established by the Member State on the basis of objective criteria and within the period to be laid down by the Commission, or

— are affected by an exceptional situation resulting from a national rule unconnected with the quota system for milk and other milk products set up by this Chapter.

2. Where it is established that no surplus levy is payable, any advances collected by purchasers or the Member State shall be reimbursed no later than the end of the following twelve-month period.

3. Where a purchaser does not meet the obligation to collect the producers' contribution to the surplus levy in accordance with Article 81, the Member State may collect unpaid amounts directly from the producer, without prejudice to any penalties it may impose upon the defaulting purchaser.

4. Where a producer or a purchaser fails to comply with the time limit for payment, interest on arrears to be fixed by the Commission shall be paid to the Member State.

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Section IIIa

Potato starch quotas

Article 84a

Potato starch quotas

1. The potato starch producing Member States shall be allocated quotas for the marketing year during which the quota scheme applies in accordance with Article 204(5) and Annex Xa.

2. Each producer Member State referred to in Annex Xa shall allocate its quota among potato starch manufacturers for use in the marketing years concerned on the basis of the subquotas allocated to each manufacturer in 2007/2008.

3. An undertaking producing potato starch shall not conclude cultivation contracts with potato producers for a quantity of potatoes which would produce a quantity of starch in excess of its quota as referred to in paragraph 2.

4. Any potato starch produced in excess of the quota as referred to in paragraph 2 shall be exported, as such, from the Community before 1 January following the end of the marketing year in question. No export refund shall be paid in respect of it.

5. Notwithstanding paragraph 4, an undertaking producing potato starch may, in any marketing year, in addition to its quota for that year, utilise no more than 5 % of its quota relating to the following marketing year. In such case, the quota for the following marketing year shall be reduced accordingly.

6. The provisions of this Section shall not apply to the production of potato starch by undertakings which are not subject to paragraph 2 of this Article and which purchase potatoes for which producers do not benefit from the payment provided for in Article 77 of Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes under the Common Agricultural Policy and establishing certain support schemes for farmers ( 3 ).







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Section IV

Procedural rules concerning sugar, milk and potato starch quotas

▼B

Article 85

Implementing rules

►M10 The Commission shall adopt detailed rules for the application of Sections I to IIIa which may relate, in particular, to: ◄

(a) supplementary information to be submitted by approved undertakings referred to in Article 57 as well as the criteria for administrative penalties, suspensions and withdrawal of approval of the undertakings;

(b) the establishment and the communications of the amounts referred to in Article 58 and the surplus levy referred to in Article 64;

(c) derogations from the dates laid down in Article 63;

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(d) in respect of Section IIIa, mergers, changes of ownership and the commencement or cessation of trading of potato starch manufacturers.

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Section IVa

Production potential in the wine sector







Subsection I

Unlawful plantings

Article 85a

Unlawful plantings planted after 31 August 1998

1. Producers shall grub up at their own cost areas planted with vines without a corresponding planting right, where applicable, after 31 August 1998.

2. Pending grubbing-up in accordance with paragraph 1, grapes and products made from grapes from areas referred to in that paragraph may be put into circulation only for the purposes of distillation at the exclusive expense of the producer. The products resulting from distillation may not be used in the preparation of alcohol having an actual alcoholic strength by 80 % volume or less.

3. Without prejudice, where applicable, to earlier penalties imposed by Member States, Member States shall impose penalties on producers who have not complied with this grubbing-up obligation graduated according to the severity, extent and duration of the non-compliance.

4. The end of the transitional ban on new plantings on 31 December 2015, as provided for in Article 85g(1), shall not affect the obligations provided for in this Article.

Article 85b

Obligatory regularisation of unlawful plantings planted before 1 September 1998

1. Producers shall, against the payment of a fee and not later than 31 December 2009, regularise areas planted with vines without a corresponding planting right, where applicable, before 1 September 1998.

Without prejudice to any proceedings under clearance of accounts, the first subparagraph shall not apply to areas regularised on the basis of Article 2(3) of Regulation (EC) No 1493/1999.

2. The fee referred to in paragraph 1 shall be determined by Member States. It shall be equivalent to at least twice the average value of the corresponding planting right in the region concerned.

3. Pending regularisation under paragraph 1, grapes or products made from grapes from areas referred to in that paragraph may be put into circulation only for the purpose of distillation at the exclusive expense of the producer. The products may not be used in the preparation of alcohol having an actual alcoholic strength of 80 % volume or less.

4. Unlawful areas referred to in paragraph 1 which are not regularised in accordance with that paragraph by 31 December 2009 shall be grubbed up by the producers concerned at their own expense.

Member States shall impose penalties, graduated according to the severity, extent and duration of the non-compliance, on producers who do not comply with this grubbing-up obligation.

Pending the grubbing-up referred to in the first subparagraph, paragraph 3 shall apply mutatis mutandis.

5. The end of the transitional ban on new plantings on 31 December 2015, as provided for in Article 85g(1), shall not affect the obligations provided for in paragraphs 3 and 4.

Article 85c

Verification of non-circulation or distillation

1. In relation to Article 85a(2) and Article 85b(3) and (4), Member States shall require proof of non-circulation of the products concerned or, where the products concerned are distilled, the submission of distillation contracts.

2. Member States shall verify non-circulation and distillation referred to in paragraph 1. They shall impose penalties in case of non-compliance.

3. Member States shall notify the Commission of the areas subject to distillation and the corresponding volumes of alcohol.

Article 85d

Accompanying measures

Areas referred to in the first subparagraph of Article 85b(1), as long as they are not regularised and areas referred to in Article 85a(1) shall not benefit from any national or Community support measures.

Article 85e

Implementing measures

Detailed rules for the implementation of this Subsection shall be adopted by the Commission.

Those rules may include:

(a) details on the communication requirements of Member States, including possible reductions of the budget allocations referred to in Annex Xb in case of non-compliance;

(b) details on the penalties to be imposed by Member States in case of non-compliance with the obligations laid down in Articles 85a, 85b and 85c.







Subsection II

Transitional planting right regime

Article 85f

Duration

This Subsection shall apply until 31 December 2015.

Article 85g

Transitional prohibition on planting vines

1. Without prejudice to Article 120a(1) to (6) and in particular paragraph 4 thereof, the planting of vines of wine grape varieties classifiable according to Article 120a(2) shall be prohibited.

2. Grafting-on of wine grape varieties classifiable according to Article 120a(2) to varieties other than wine grape varieties referred to in that Article shall also be prohibited.

3. Notwithstanding paragraphs 1 and 2, plantings and grafting-on as referred to in those paragraphs shall be allowed if covered by:

(a) a new planting right, as provided for in Article 85h;

(b) a replanting right, as provided for in Article 85i;

(c) a planting right granted from a reserve, as provided for in Articles 85j and 85k.

4. The planting rights referred to in paragraph 3 shall be granted in hectares.

5. Member States may decide to maintain the prohibition referred to in paragraph 1 in their territory or parts of their territory until 31 December 2018 at the latest. In such cases the rules governing the transitional planting right regime as laid down in this Subsection, including this Article, shall apply accordingly in the given Member State.

Article 85h

New planting rights

1. Member States may grant new planting rights to producers in respect of areas:

(a) intended for new plantings carried out under measures for land consolidation or measures concerning compulsory purchases in the public interest adopted under national law;

(b) intended for experimental purposes;

(c) intended for graft nurseries; or

(d) whose wine or vine products are intended solely for the consumption by the wine-grower’s household.

2. New planting rights granted shall be:

(a) exercised by the producer to whom they are granted;

(b) used before the end of the second wine year after the one in which they were granted;

(c) used for the purposes for which they were granted.

Article 85i

Replanting rights

1. Member States shall grant replanting rights to producers who have grubbed up an area planted with vines.

However, grubbed-up areas for which a grubbing-up premium is granted in accordance with Subsection III shall not generate replanting rights.

2. Member States may grant replanting rights to producers who undertake to grub up an area planted with vines. In such cases, the grubbing-up of the pledged area shall be carried out at the latest at the end of the third year after which new vines for which the replanting rights had been granted have been planted.

3. Replanti