1998R2808 — EN — 01.07.1999 — 001.001 — 1
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►B COMMISSION REGULATION (EC) No 2808/98
of 22 December 1998
layingdowndetailedrulesfortheapplicationoftheagrimonetarysystemfortheeuroinagricul-
ture
(OJ L 349, 24.12.1998, p. 36)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 1410/1999 of 29 June 1999 L164 53 30.6.1999
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▼B
COMMISSION REGULATION (EC) No 2808/98
of 22 December 1998
laying down detailed rules for the application of the agrimonetary
system for the euro in agriculture
THE COMMISSIONOF THE EUROPEANCOMMUN ITIES,
Having regard to the Treaty establishing the European Community,
HavingregardtoCouncilRegulation(EC)No2799/98of15December
1998establishingtheagrimonetaryarrangementsfortheeuro(1),andin
particular Article 9 thereof,
Whereas Regulation (EC) No 2799/98 establishes new agrimonetary
arrangementsfollowingtheintroductionoftheeuro;whereasCommis-sion Regulation (EEC) No 1068/93 of 30 April 1993 on detailed rulesfordeterminingandapplyingtheagriculturalconversionrates(
2),aslast
amended by Regulation (EC) No 961/98(3), and Commission Regula-
tion (EC) No 805/97 of 2 May 1997 laying down detailed rules forcompensation relating to appreciable revaluations(
4), as amended by
Regulation (EC) No 1425/98(5), must be radically amended to bring
them into line with Regulation (EC) No 2799/98; whereas, in order tofacilitate implementation of the new agrimonetary arrangements, theRegulations in question should be repealed and the relevant provisionsshould be included in a new Regulation;
Whereas it is necessary to establish the operative events for the
exchange rates applicable, without prejudice to any specific definitionsorexemptionsprovidedforintherulesforthesectorsconcernedonthebasis of the criteria mentioned in Article 3 of Regulation (EC) No2799/98;
Whereas for all the prices or amounts involved in trading transactions
theacceptanceofthecustomsdeclarationrepresentsasuitableoperativeevent;whereasinthecaseofpricesandamountslinkedtothosepricesthe commercial objective of buying or selling operations is attainedwhen the product is paid for or taken over and, in the case of with-drawal operations by producer groups, on the first day of the monthconcerned; whereas, in the case of aid paid for a given quantity ofproduct and in particular where the aid is granted subject to a specificuse of that product such as its processing, preservation, packaging orconsumption, the commercial objective is attained when the product istaken over by the relevant operator and, where applicable, when theparticular use of that product is guaranteed; whereas, in the case ofprivatestorageaid,productsarenolongeravailableonthemarketfromthe first day for which the aid is granted;
Whereas,inthecaseofaidgrantedperhectare,thecommercialobjec-
tive is attained when the product is harvested, usually at the beginningof the marketing year; whereas the operative event for structural aidshould be established at 1 January;
Whereas, for amounts not linked to the market prices of agricultural
products, the operative event can be established as a date to be deter-mined on the basis of the period during which the operation occurs;whereas it should be stated that the operative event applicable for therecording of prices or offers on the market is to occur on the day onwhich the prices or offers themselves are applicable; whereas, in thecaseofadvancesandsecurities,theexchangeratemustapproximatetothatapplicabletothepricesoramountsinquestionwherethisisknownat the time the advances or securities are paid;
(1) See page 1 of this Official Journal.
(2) OJ L 108, 1. 5. 1993, p. 106.
(3) OJ L 135, 8. 5. 1998, p. 5.
(4) OJ L 115, 3. 5. 1997, p. 13.
(5) OJ L 190, 4. 7. 1998, p. 16.
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Whereas Regulation (EC) No 2799/98 allows Member States to grant
compensation to farmers who have suffered the effects of an appreci-able revaluation or an actual reduction in direct aid; whereas thatRegulationlaysdowncertainconditionsforgrantingcompensationandits phasing over time, and indicates the method for determining themaximum amount that may be allocated by a Member State; whereasthe compensation concerned is partly financed by the Communitybudget;
Whereasitisnecessarytodefinetheoperativeeventthatdeterminesthe
exchange rate used to convert amounts expressed in euros into thenationalcurrenciesoftheMemberStates;whereas,tofacilitatefinancialmanagement, the payment of more than one annual instalment ofcompensation in the same budget year should be avoided; whereas, totakeaccountoftheEuropeanCommunity’sinternationalcommitments,andintheinterestsofadministrativetransparency,theprocedurestobefollowed by Member States wishing to grant compensation should belaid down;
Whereas, in order to fulfil its purpose, the compensation must be
granteddirectlytothebeneficiaries,inprinciplefarmers,withinafixedperiod and for amounts not exceeding the income losses concerned;whereas, however, to avoid administrative complications arising fromthe grant of small amounts to beneficiaries, simplified procedures maybe used in certain cases;
WhereasthemeasuresprovidedforinthisRegulationareinaccordance
with the opinion of the relevant management committees,
HAS ADOPTED THIS REGULATION:
TITLE I
Exchange rate and operative events
Article 1
Theexchangeratetobeusedshallbetheratemostrecentlyfixedbythe
European Central Bank (ECB) prior to the operative event.
Article 2
Theoperativeeventfortheexchangerateforpricesandamountsfixed
ineurosinCommunitylegislationandtobeappliedintradewiththirdcountries shall be the acceptance of the customs declaration.
Article 3
1. Forpricesor,withoutprejudicetoArticlelandparagraph2ofthis
Article, amounts linked to those prices,
— fixed in ecus in Community legislation,
or
— fixed in euros by a tendering procedure,
the operative event for the exchange rate shall be:
— inthecaseofpurchasesorsales,thetakingoverbythepurchaserof
thebatchofproductsconcernedorthetransferofthefirstpayment,whichever is earlier,
— in the case of withdrawals of products ►
M1in the fruit and
vegetable sector ◄, the first day of the month in which the with-
drawal takes place.
For the purposes of this Regulation, for purchases by intervention
agencies, taking over shall be the commencement of physical deliveryofthebatchconcernedor,wherethereisnophysicalmovement,provi-sional acceptance of the seller’s tender.
2. Foraidgrantedbyquantityofmarketedproductorbyquantityof
product to be used in a specific way, the operative event for theexchange rate shall be the first operation which:
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— guarantees the appropriate use of the products in question and
entails grant of the aid,
and
— occurs on or after the date of taking over of the products by the
operator concerned and, where appropriate, before the date ofspecific use.
3. For private storage aid the operative event for the exchange rate
shallbethefirstdayinrespectofwhichtheaidrelatingtoaparticularcontract is granted.
Article 4
1. Notwithstanding paragraph 2, in the case of aid per hectare the
operativeeventfortheexchangerateshallbethecommencementofthemarketing year in respect of which the aid is granted.
2. Inthecaseofamountsofastructuralorenvironmentalcharacter,
inparticularthosegrantedunderenvironmentalprotection,earlyretire-mentorafforestationschemes,theoperativeeventfortheexchangerateshallbe1Januaryoftheyearduringwhichthedecisiontogranttheaidis taken.
However, in cases where, under Community rules, payment of the
amounts referred to in the first subparagraph is staggered over severalyears,theannualinstalmentsshallbeconvertedusingtheexchangerateapplicableonlJanuaryoftheyearforwhichtheinstalmentinquestionis paid.
▼
M1
3. ForthepurposesofapplyingthisArticle,theexchangeratetobeused shall be the average of the exchange rates applicable during themonth preceeding the date of the operative event, calculated pro rata
temporis.
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Article 5
1. For costs of transport, processing or, without prejudice to Article
3(3),storageandforamountsallocatedtostudiesorpromotionalmeas-ures, determined under a tendering procedure, the operative event forthe exchange rate shall be the final day for the submission of tenders.
2. Fortherecordingofprices,amountsortendersonthemarket,the
operative event for the exchange rate shall be the day in respect ofwhich the price, amount or tender is recorded.
3. For advances:
(a) the operative event for the exchange rate shall be:
— theeventapplicabletothepriceoramounttowhichtheadvance
relates,wherethiseventhasoccurredbythetimetheadvanceispaid,
or
— in other cases, the date of fixing in euros of the advance or,
failing that, the date of payment of the advance;
(b) the operative event for the exchange rate shall be applied without
prejudicetoapplicationtotheentirepriceoramountinquestionofthe operative event determined for that price or amount.
4. The operative event for the exchange rate for securities shall be,
for each separate operation:
— foradvances,thatdefinedfortheamountoftheadvance,wherethis
event has occurred by the time the security is paid,
— for the submission of tenders, the day on which the tender is
submitted,
— for the execution of tenders, the closing date of the invitation to
tender,
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— in other cases, the date on which the security takes effect.
TITLE II
Compensation for appreciable revaluations
Article 6
1. This Title lays down the detailed rules for granting the compens-
atory aid referred to in Article 4 of Regulation (EC) No 2799/98.
2. The maximum amounts of compensatory aid shall be determined
in accordance with Article 4(2) of Regulation (EC) No 2799/98.
Article 7
1. Without prejudice to Article 9:
(a) Member States may grant compensatory aid only by means of
paymentstobeneficiariesandwithoutconditionsrelatingtoitsuse;
and
(b) compensatoryaidmaybegrantedonlytoagriculturalholdings,the
definition of an agricultural holding being established by theMember State concerned on the basis of objective criteria.
2. The maximum level of the aid shall be converted into national
currency using the average exchange rate for the year in which theappreciable revaluation occurred.
Article 8
1. The amount of compensatory aid granted to the beneficiary shall
be linked to the size of the holding during a period to be stipulated ineach case, according to the criteria laid down in the second subpara-graph of Article 4(1) of Regulation (EC) No 2799/98.
In determining the size of the holding, account shall be taken only of
the types of production referred to in point (1)(a) of the Annex to thesaid Regulation.
Member States may set minimum holding sizes only to the extent
necessary to facilitate administration of the compensatory aid.
2. In all cases, the compensatory aid must be compatible with the
international commitments of the Community.
Article 9
1. Wheretheamountofcompensatoryaidwhichistobegrantedfor
any annual instalment divided by the estimated number of agriculturalholdingsconcernedisbelowEUR400,thatamountmaybegrantedformeasures concerning the agricultural sector:
— which are collective and of general interest,
or
— for which Community provisions allow Member States to grant
national aid, provided the intensities under the State aid policy arerespected.
2. To be eligible for Community finance the measures shall be
additional, either by their nature or in terms of aid intensity, to thosewhichtheMemberStatewouldhaveappliedintheabsenceoftheaid,and shall not benefit from other Community financing.
TITLE III
Compensationforreductionsintheexchangeratesappliedtodirect
aid
Article 10
1. This Title lays down the detailed rules for granting the compens-
atory aid referred to in Article 5 of Regulation (EC) No 2799/98.
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2. The maximum amounts of compensatory aid shall be determined
in accordance with Article 5(2) of Regulation (EC) No 2799/98.
If,fortheamountsmentionedinparagraph3ofthepresentArticle,an
amountfixedinnationalcurrencyislowerthantheceiling,areductionof the ceiling which does not affect the fixed amount is not to beconsidered as a reduction.
3. For the purposes of Article 5 of Regulation (EC) No 2799/98,
amounts of a structural or environmental character that are not:
— flat-rate aid fixed per hectare or per livestock unit,
or
— a compensatory premium per ewe or she-goat,
shall be those financed from the EAGGF Guidance Section or the
FinancialInstrumentforFisheriesGuidance(FIFG),thosereferredtoinCouncil Regulation (EEC) No 1992/93(
1) or those fixed in Council
Regulations(EEC)No2078/92(2),(EEC)No2079/92(3)or(EEC)No
2080/92(4).
4. The compensatory aid shall be granted for the 12-month period
preceding the respective application of the reduced exchange rate.
5. Member States may grant compensatory aid only by means of
additionalpaymentstobeneficiariesofaidasreferredtoinArticle5ofRegulation(EC)No2799/98.Theymaynotimposeconditionsastotheuse of such payments.
6. Themaximumlevelofaidshallbeconvertedusingtheexchange
rate which gave rise to that amount.
TITLE IV
General provisions
Article 11
1. The application for authorisation to grant compensatory aid as
referredtoinTitlesIIandIIIshallbesubmittedtotheCommissionbythe Member State concerned before the end of the third monthfollowing that in which the appreciable revaluation or the reductionconcernedoccurred.TheapplicationmustincludesufficientinformationfortheCommissiontocheckthecompatibilityofthemeasurewiththerules as provided in paragraph 2.
2. InaccordancewiththeprocedurelaiddowninArticle93(3)ofthe
Treaty and with this Regulation, the Commission shall check thecompatibility of the aid applications with the rules in force concerningcompensation for appreciable revaluations and for reductions.
3. The total amount of compensatory aid granted must be propor-
tionatetothelossaffectingeachsectorintheMemberStateconcerned.How the aid is distributed within a given sector must not alter theconditions of competition to an extent detrimental to the commoninterest.
4. The Commission may take up to two months from the date of
receipt of the full application referred to in paragraph l to approve thecompensatory aid. If the Commission has not delivered an opinionwithinthatperiod,themeasuresplannedmaybeimplementedprovidedthat the Member State gives the Commission prior notification of itsintention.
5. Any Member State intending to grant compensatory aid shall
adopt the necessary national measures within three months of the date
(1) OJ L 182, 24. 7. 1993, p. 12.
(2) OJ L 215, 30. 7. 1992, p. 85.
(3) OJ L 215, 30. 7. 1992, p. 91.
(4) OJ L 215, 30. 7. 1992, p. 96.
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of the Commission decision or the prior notification by the Member
State provided for in paragraph 4.
Article 12
1. Payment to the same beneficiary of an amount of the same
compensatory aid instalment may not be made during the same budgetyear as payment of the corresponding amount of another instalment.
2. Paymentoftheamountofthefirstinstalmentofcompensatoryaid
as referred to in:
— Title II shall be made within one year following the date of the
appreciablerevaluationwhichgaveentitlementtotheaidconcerned,
— TitleIIIshallbemadewithinaperiodbeginningonthedateofthe
operative event and ending:
— 18 months later in the case of recipients of a cattle premium,— 12 months later in the case of recipients of amounts of a struc-
tural or environmental character, or
— ninemonthslaterinthecaseofrecipientsofotherdirectaidas
referred to in Article 5(1) of Regulation (EC) No 2799/98.
3. The time limits referred to in Article 11(1) and (5) and in para-
graph2ofthisArticlemaybeamendedbytheCommissionatthedulyjustified request of Member States.
4. The Commission shall have two months in which to approve the
measures referred to in Article 8 of Regulation (EC) No 2799/98 fromthe date of receipt of such measures envisaged by a non-participatingMemberState.IftheCommissionfailstodeliveranopinionwithinthattime the measures may be implemented provided that the Commissionhas been notified in advance by the Member State.
Article 13
EveryyeartheMemberStateconcernedshallsubmittotheCommission
a report on the implementation of the compensatory aid measures,givingdetailsoftheamountspaidout.Thefirstofthesereportsshallbesubmittednotlaterthan18monthsafterthedecisionorthenotificationby the Member State referred to in Article 11(4).
Article 14
Amounts quoted in tenders submitted in response to invitations to
tender organised under an instrument forming part of the commonagriculturalpolicyshall,withtheexceptionofamountstheCommunitycontribution to which is financed from the EAGGF Guidance Section,be expressed in euros.
Article 15
1. Thepercentageofappreciabilityofanappreciablerevaluationand
the reduction in the exchange rate shall be expressed to three decimalplaces, the third decimal being rounded off. The average annualexchange rate shall be established to six significant figures, the sixthfigure being rounded off.
2. For the purposes of this Regulation significant figures means:
— allfigures,inthecaseofanumberwhoseabsolutevalueisgreater
than or equal to 1,
or
— all decimal places starting from the first one which is not zero, in
other cases.
The roundings-off referred to in this Article shall be effected by
increasing the figure concerned by one unit in cases where thefollowing figure is greater than or equal to five and by leaving itunchanged in other cases.
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Article 16
Regulations (EEC) No 1068/93 and (EC) No 805/97 are hereby
repealed
Article 17
ThisRegulationshallenterintoforceonthedayfollowingitspublica-
tion in the Official Journal of the European Communities .
It shall apply from 1 January 1999.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
all Member States.