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Article 304

For the products benefiting from the aid arrangements provided for in Article 3 of Regulation ( EEC ) No 516/77 on the common organization of the markets in fruit and vegetable processed products , the following provisions shall apply to Portugal :

1 . Until the first move towards alignment of the prices referred to in Article 238 , the minimum price referred to in Article 3b of Regulation ( EEC ) No 516/77 shall be established on the basis :

- of the price fixed in Portugal under the preceding national arrangements for the product intended for processing , or

- in the absence of such a price , of the prices paid in Portugal to producers for the product intended for processing , as recorded during a representative period to be determined .

2 . Where the minimum price referred to in paragraph 1 is :

- lower than the common price , the price in Portugal shall be modified at the beginning of each marketing year following accession , according to the procedures provided for in Article 238 ,

- higher than the common price , the common price shall be adopted on accession for Portugal .

3 . ( a ) For processed tomato products , for the first five marketing years following accession or , where Article 260 ( 2 ) is applied during the first three marketing years following accession , the amount of Community aid granted to Portugal shall be derived from the aid calculated for the Community as at present constituted , bearing in mind the difference of the minimum producer prices resulting from the application of point 2 of this Article , before this last-mentioned aid is reduced , possibly as a result of the guarantee threshold fixed for these products in the Community as at present constituted being exceeded .

Where the threshold in the Community as at present constituted is exceeded , if this proves necessary to ensure normal conditions for competition between Portuguese industries and those of the Community , it shall be decided , in accordance with the procedure provided for in Article 20 of Regulation ( EEC ) No 516/77 , that a compensatory amount , at the most equal to the difference between the aid fixed for Portugal and that which would have been derived from the Community aid fixed , will be applied in accordance with Article 240 ( 3 ) ( a ) and levied by the Portuguese Republic on exports to third countries .

However , on expiry of the arrangements under Regulation ( EEC ) No 1320/85 , no compensatory amount shall be levied where it is proved that the Portuguese product has not benefited from Community aid granted to Portugal .

In no case may the aid applicable to Portugal exceed the amount of aid granted in the Community as at present constituted .

( b ) During the period referred to in ( a ) , the grant of Community aid to Portugal shall be limited , for each marketing year , to a quantity of processed products corresponding to a quantity of fresh tomatoes of :

- 685 000 tonnes for the manufacture of tomato concentrate ,

- 9 600 tonnes for the manufacture of whole peeled tomatoes ,

- 137 tonnes for other tomato products .

At the end of that period , the quantities fixed above , adjusted to accommodate any changes made to Community thresholds during the same period , shall be taken into consideration when fixing Community thresholds .

4 . For tomato products on expiry of the period referred to in point 3 ( a ) and for the other products during the six marketing years following accession , the amount of the Community aid granted to Portugal shall be derived from the aid fixed for the Community as at present constituted , bearing in mind the difference of the minimum prices resulting from the application of point 2 .

5 . Community aid shall be applied in full in Portugal as from the beginning of the seventh marketing year following accession .

6 . For the purposes of applying this Article , the minimum price and the aid obtaining in the Community as at present constituted shall refer to the amounts obtaining in the Community as at present constituted excluding Greece .