Corrigendum to Council Regulation (EC) No 865/2004 of 29 April 2004 on the common organisation of the market in olive oil and table olives and amending Regulation (EEC) No 827/68

( Official Journal of the European Union L 161 of 30 April 2004 )

Regulation (EC) No 865/2004 should read as follows:

COUNCIL REGULATION (EC) No 865/2004

of 29 April 2004

on the common organisation of the market in olive oil and table olives and amending Regulation (EEC) No 827/68

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 36 and the third subparagraph of Article 37(2),

Having regard to the proposal of the Commission,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and Social Committee (2),

After consulting the Committee of the Regions,

Whereas:

(1) The common agricultural policy pursues the objectives set out in Article 33 of the Treaty. In order to stabilise markets and ensure a fair standard of living for the agricultural community in the sector of olive oil and table olives, it is necessary to provide for an income support to farmers maintaining olive groves, for internal market measures to maintain the prices and supply conditions in a reasonable frame, and for activities aiming at influencing market demand by improving the quality of products as well as the way of presenting quality to consumers.

(2) Income support to farmers maintaining olive groves is provided for in Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (3) through the single farm payments as well as an aid for maintenance of olive groves.

(3) Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organisation of the market in oils and fats (4) should therefore be repealed and replaced by a new regulation. On this occasion, the following Council Regulations of the olive oil sector should also be repealed: Regulations (EEC) No 154/75 (5), (EEC) No 2754/78 (6), (EEC) No 3519/83 (7), (EEC) No 2261/84 (8), (EEC) 2262/84 (9), (EEC) No 3067/85 (10), (EEC) No 1332/92 (11), (EEC) No 2159/92 (12), (EEC) No 3815/92 (13), (EC) No 1414/97 (14), (EC) No 1638/98 (15) and (EC) No 1873/2002 (16).

(4) It is necessary for the marketing year to be adapted to the production cycle of all olive varieties and, for harmonisation simplicity purposes, it should be realigned with the marketing year for other agricultural products.

(5) The descriptions and definitions of olive oil and so the denomination are an essential element of the market order by setting quality standards and providing consumers with an adequate information on the product.

(6) The characteristics of the olive oil justify an interest of the consumers in spite of the high price of that oil as compared with other oils and fats. To avoid abuses as regards the quality and authenticity of the products presented to the consumers and the important disturbances on the market they may involve, special measures are needed to develop and protect the quality of olives and olive oils.

(7) The information given on labels should be guaranteed by up-to-date methods of analysis and other measures to determine the characteristics of each olive oil standard.

(8) Taking into account the influence of variation in the level of the productions and the world market supply available, there should be provision for appropriate measures to be taken in order to stabilise the internal market.

(9) The system of aid for private storage contracts is deemed to be an efficient instrument to regulate the supply of olive oil, acting as a safety net mechanism when there is serious disturbance of the market.

(10) The contribution of olive oil and table olive operators to improve and guarantee the quality of the products in question and so to develop the consumers' interests and keep the balance in the market should be encouraged and organised by a Community scheme.

(11) Community finance, consisting of the percentage of direct aid that Member States are allowed to withhold in accordance with Article 110i(4) of Regulation (EC) No 1782/2003, is required to encourage approved operators' organisations to draw up work programmes for the purpose of improving the production quality of olive oil and table olives. Community support should be allocated in accordance with the priorities given to the activities undertaken within the work programmes in question.

(12) In order to monitor the volume of olive oil trade with third countries while aiming at a simplification of administrative procedures, provision should be made for an import licence scheme with the lodging of a security to ensure that the transactions for which such licences are requested are effected. If market developments made necessary a closer follow-up of exports of olive oil from the Community, the Commission should be authorised to introduce a system of export licences.

(13) The Community market for olive oil and table olives involves a trading system at the borders of the Community, including import duties. The trading system should be based on the undertakings accepted under international agreements.

(14) For the most part, the customs duties applicable to agricultural products under the World Trade Organisation (WTO) agreements are laid down in the common customs tariff. However, the Commission should be able to suspend these duties partially or fully in order to ensure an adequate supply of the internal market in olive oil.

(15) To the extent necessary for its proper working, provision should be made for regulating or, when the situation on the market so requires, prohibiting in a harmonised way the use of inward and outward processing arrangements.

(16) The customs duty system makes it possible to dispense with all other protective measures at the external frontier of the Community. The internal market and duty mechanism could, in exceptional circumstances, prove deficient. In such cases, in order not to leave the Community market without defence against disturbances that might ensue, the Community should be able to take all necessary measures without delay. All such measures should comply with the obligations arising from the WTO agreements.

(17) The proper working of a single market based on common prices would be jeopardised by the granting of national aid. Therefore, the provisions of the Treaty governing State aid should apply to the products covered by this common market organisation.

(18) As the common market in olive oil and table olives is in continuous development, the Member States and the Commission should keep each other informed of these developments.

(19) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (17).

(20) In view of the need to solve practical and specific problems, the Commission should be authorised to adopt necessary measures in cases of emergency.

(21) Expenditure incurred by the Member States as a result of the obligations arising from the application of this Regulation should be financed by the Community in accordance with Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (18).

(22) The products included in the common market organisation established by Regulation No 136/66/EEC which are not covered by the common market organisation in olive oil and table olives, or by any other common market organisation, should be included in Council Regulation (EEC) No 827/68 of 28 June 1968 on the common market organisation of the market in certain products listed in Annex II (19),

HAS ADOPTED THIS REGULATION:

CHAPTER I

INTRODUCTORY PROVISIONS AND QUALITY REQUIREMENTS

Article 1

The common organisation of the market in olive oil and table olives shall cover the following products:

CN code Description (a) 1509 Olive oil and its fractions, whether or not refined, but not chemically modified 1510 00 Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils or fractions with oils or fractions heading No 1509 (b) 0709 90 31 Olives, fresh or chilled, for uses other than the production of oil 0709 90 39 Other olives, fresh or chilled 0710 80 10 Olives (uncooked or cooked by steaming or boiling water), frozen 0711 20 Olives provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption ex 0712 90 90 Olives dried, whole, cut, sliced, broken or in powder, but not further prepared 2001 90 65 Olives prepared or preserved by vinegar or acetic acid ex 2004 90 30 Olives prepared or preserved otherwise than by vinegar or acetic acid, frozen 2005 70 Olives prepared or preserved otherwise than by vinegar or acetic acid, not frozen (c) 1522 00 311522 00 39 Residues resulting from the treatment of fatty substances or animal waxes containing oil having the characteristics of olive oil 2306 90 112306 90 19 Oil-cake and other residues resulting from the extractions of olive oil

Article 2

The marketing year for the products listed in Article 1 shall begin on 1 July and end on 30 June of the following year. However, the 2005/06 marketing year shall begin on 1 November 2005.

Article 3

This Regulation shall apply without prejudice to the measures provided for by Regulation (EC) No 1782/2003.

Article 4

1. The use of the descriptions and definitions of olive oils and olive-pomace oils set out in Annex I shall be compulsory as regards the marketing of the products concerned within each Member State, in intra-Community trade and, as long as compatible with international compulsory rules, trade with third countries.

2. Only oils referred to in points 1(a) and (b), 3 and 6 of Annex I may be marketed at the retail stage.

CHAPTER II

INTERNAL MARKET

SECTION 1

Marketing standards

Article 5

1. Marketing standards covering in particular quality grading, packaging and presentation may be laid down in respect of the products referred in Article 1(a) taking into account technical production and marketing requirements and changes in the methods used for determining the physical, chemical and organoleptic characteristics of these products.

Where such standards are laid down, the products to which they apply may be marketed in the Community only in accordance with those standards.

2. Member States shall, in the case of products which are the subject of marketing standards, check whether those products conform to the said standards and shall apply penalties as appropriate. They shall notify the Commission of the arrangements they have taken for the purpose of applying this paragraph.

3. The marketing standards, as well as detailed rules for the application of this Article and, where applicable, the methods of analysis to be used, shall be adopted in accordance with the procedure referred to in Article 18(2).

SECTION 2

Disturbance of the market

Article 6

1. In order to regularise the market in the event of serious disturbance thereof in certain regions of the Community, it may be decided in accordance with the procedure referred to in Article 18(2) to authorise bodies offering sufficient guarantees, and approved by the Member States, to conclude contracts for the storage of olive oil that they market.

The measures referred to in the first subparagraph may be implemented inter alia when the average price recorded on the market during a representative period is less than:

— EUR 1 779/tonne for extra virgin olive oil, or

— EUR 1 710/tonne for virgin olive oil, or

— EUR 1 524/tonne for lampante olive oil having two degrees of free acidity, this amount being reduced by EUR 36,70/tonne for each additional degree of acidity.

2. An aid for the performance of the contracts referred to in paragraph 1 may be granted by means of tenders.

3. The amount of the aid referred to in paragraph 2 and the detailed rules for implementing this Article, in particular the quantities, qualities and duration of storage of the oils concerned shall be established in accordance with the procedure referred to in Article 18(2) in such a way as to ensure a significant impact on the market.

SECTION 3

Operators' organisations

Article 7

1. For the purposes of this Regulation, operators' organisations shall comprise approved producers' organisations, approved interbranch organisations or approved organisations of other operators in the olive oil sector or their associations.

2. For the purposes of this Section, “approved interbranch organisations” shall mean legal entities which:

— are made up of representatives of economic activities linked to the production of and/or trade in and/or processing of the products referred to in Article 1,

— are established at the initiative of all or some of the organisations or associations which constitute them,

— have been recognised by the Member State in which they operate.

Article 8

1. The amounts withheld by Member States in accordance with Article 110i(4) of Regulation (EC) No 1782/2003 shall ensure the Community financing of three-year work programmes to be drawn up by operators' organisations in one or more of the following areas:

(a) the market follow-up and administrative management in the olive oil and table olives sector;

(b) the improvement of the environmental impacts of the olive cultivation;

(c) the improvement of the production quality of olive oil and table olives;

(d) the traceability system, the certification and protection of the quality of olive oil and table olives, in particular the monitoring of the quality of olive oils sold to final consumers, under the authority of the national administrations;

(e) the dissemination of information on the activities carried out by operator organisations with the aim of improving the quality of olive oil.

2. The maximum Community funding for the work programmes referred to in paragraph 1 shall be equal to the part of the aids withheld by the Member States. This funding shall concern the eligible cost with a maximum of:

— 100 % for the activities in areas referred to in points (a) and (b) of paragraph 1,

— 100 % for the fixed assets investments and 75 % for the other activities in the area referred to in point (c) of paragraph 1,

— 75 % for the work programmes carried out in at least three third countries or non-producing Member States by approved operator organisations from at least two producer Member States in areas referred to in points (d) and (e) of paragraph 1, and 50 % for the other activities in these areas.

Complementary financing shall be ensured by the Member State up to 50 % of the costs not covered by the Community funding.

3. Member States shall verify that the conditions for granting Community funding are met. To that end, they shall carry out an audit of work programmes and a control plan involving a sample determined on the basis of a risk analysis and comprising at least 30 % per year of producer organisations and all the other operator's organisations in receipt of Community funding under this Article.

Article 9

In accordance with the procedure referred to in Article 18(2), detailed rules shall be adopted concerning:

(a) the conditions for the approval of operators' organisations and their associations;

(b) the types of activities eligible under programmes in the areas referred to in Article 8(1)(a) to (e);

(c) the procedures for the approval of programmes by the Member States;

(d) the measures concerning the control and sanctions as well as the audit of work programmes;

(e) any other detailed measure that might be necessary for the implementation of this Section.

CHAPTER III

TRADE WITH THIRD COUNTRIES

Article 10

1. Imports to the Community of any of the products falling within CN codes 1509, 1510 00, 0709 90 39, 0711 20 90, 2306 90 19, 1522 00 31, 1522 00 39 shall be subject to presentation of an import licence.

Import licences shall be issued by the Member States to any applicant, irrespective of his place of establishment in the Community.

2. Import licences shall be valid throughout the Community. Such licences shall be issued subject to the lodging of a security guaranteeing that the products are imported during the period of validity of the licence. Except in cases of force majeure, the security shall be forfeited in whole or in part if import is not carried out, or is carried out only partially, within that period.

3. Where necessary for the purposes of following market developments, it may be decided, in accordance with the procedure referred to in Article 18(2), to make exports from the Community of any of the products listed in Article 1(a) subject to presentation of an export licence.

4. The term of validity of licences and other detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 18(2).

Article 11

1. Unless this Regulation provides otherwise, the rates of duty in the Common Customs Tariff shall apply to the products listed in Article 1.

2. By way of derogation from paragraph 1, should the market price for olive oil in the Community significantly exceed 1,6 times the average prices laid down in the second subparagraph of Article 6(1), during a period of at least three months, it may be decided, in accordance with the procedure referred to in Article 18(2) and so as to ensure the Community market is adequately supplied with olive oil through imports from non-member countries:

— to suspend partially or fully the application of common customs duties to olive oil, and establish the detailed arrangements for any such suspension,

— to open an import quota for olive oil at a reduced rate of the common customs duties and establish the detailed arrangements for managing such quota.

These measures shall apply for the minimum necessary period, which in any event shall not exceed the end of the marketing year in question.

Article 12

1. The general rules for the interpretation of the combined nomenclature and the detailed rules for its application shall apply to the tariff classification of products covered by this Regulation. The tariff nomenclature resulting from the application of this Regulation shall be incorporated into the common customs tariff.

2. Save as otherwise provided for in this Regulation or in provisions adopted pursuant thereto, the following shall be prohibited in trade with third countries:

(a) the levying of any charge having equivalent effect to a customs duty;

(b) the application of any quantitative restriction or measures having equivalent effect.

Article 13

To the extent necessary for the proper functioning of the common organisation of the markets in the olive oil and table olive sector, the use of inward-processing arrangements for the products listed in Article 1(a) and (b) may be fully or partially prohibited in accordance with the procedure referred to in Article 18(2).

Article 14

1. If, by reason of imports or exports, the Community market in one or more of the products listed in Article 1 is affected by, or it is threatened with, serious disturbance likely to jeopardise the achievement of the objectives set out in Article 33 of the Treaty, appropriate measures may be applied in trade with non-members of the WTO until such disturbance or threat of disturbance has ceased.

2. Should the situation referred to in paragraph 1 arise, the Commission shall, at the request of a Member State or on its own initiative, decide upon the necessary measures. The Member States shall be notified of such measures, which shall be immediately applicable. If the Commission receives a request from a Member State, it shall take a decision thereon within three working days following receipt of the request.

3. Measures decided upon by the Commission may be referred to the Council by any Member State within three working days of the day on which they were notified. The Council shall meet without delay. It may, acting by a qualified majority, amend or annul the measure in question within one month following the date on which it was referred to the Council.

4. Provisions adopted under this Article shall be applied having regard to the obligations arising from agreements concluded in accordance with Article 300(2) of the Treaty.

CHAPTER IV

GENERAL PROVISIONS

Article 15

Unless this Regulation provides otherwise, Articles 87, 88 and 89 of the Treaty shall apply to the production of, and trade in, the products listed in Article 1 of this Regulation.

Article 16

Measures taken by Member States to increase the price for other vegetable oils in relation to that for olive oil so as to ensure an outlet for nationally produced olive oil shall be incompatible with the application of this Regulation.

Article 17

Member States and the Commission shall send each other any information necessary for the application of this Regulation and for complying with the international obligations concerning olive oil and table olives.

Detailed rules to determine which information is necessary, as well as those for its communication and distribution, shall be adopted in accordance with the procedure referred to in Article 18(2).

Article 18

1. The Commission shall be assisted by the Management Committee for Olive Oil and Table Olives (hereinafter referred to as ‘the Committee’).

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month.

3. The Committee shall adopt its Rules of Procedure.

Article 19

Measures that are both necessary and justifiable in an emergency, in order to resolve practical and specific problems shall be adopted in accordance with the procedure referred to in Article 18. Such measures may derogate from certain parts of this Regulation, but only to the extent that, and for such period as, is strictly necessary.

Article 20

Regulation (EC) No 1258/1999 and the provisions adopted in implementation thereof shall apply to the expenditure incurred by the Member States in carrying out obligations pursuant to this Regulation.

CHAPTER V

TRANSITIONAL AND FINAL RULES

Article 21

Regulation No 136/66/EEC is hereby amended as follows:

1. In Article 5, paragraph 2 is replaced by the following: ‘2. From the 1998/99 marketing year, the unit amount of the production aid provided for in paragraph 1 shall be EUR 1 322,5/tonne.’;

2. In Article 20d(1), ‘for the 1998/99 to 2003/04 marketing years’ are replaced by ‘from the marketing year 1998/99’.

Article 22

In Article 5 of Regulation (EEC) No 1638/98, the first paragraph is deleted.

Article 23

Regulation (EC) No 1873/02 is hereby amended as follows:

1. In Article 2, ‘for the 2002/2003 and 2003/04 marketing years’ is replaced by ‘from the marketing year 2002/03’;

2. In Article 3, ‘for the 2002/03 and 2003/04 marketing years’ shall be replaced by ‘from the marketing year 2002/03’.

Article 24

1. Regulations (EEC) No 136/66/EEC, (EEC) No 154/75, (EEC) No 2754/78, (EEC) No 3519/83, (EEC) No 2261/84, (EEC) 2262/84, (EEC) No 3067/85, (EEC) No 1332/92, (EEC), No 2159/92, (EEC) No 3815/92, (EC) No 1414/97, (EC) No 1638/98 and (EC) No 1873/2002 are repealed as from 1 November 2005.

However, the provisions necessary for the management and control of the production aid remain applicable for the purposes of managing and controlling production aid related to the marketing years up to the marketing year 2004/05.

References to the repealed Regulation No 136/66/EEC are construed as references to this Regulation.

2. Transitional measures may be adopted in accordance with the procedure referred to in Article 18(2).

Article 25

The Annex to Regulation (EEC) No 827/68 is hereby amended in accordance with Annex II to this Regulation.

Article 26

This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Union.

It shall apply from the marketing year 2005/06. However, Articles 21 to 23 shall apply as from 1 November 2004.