Proposal for a Council Regulation (EC) on the common organization of the market in processed fruit and vegetables

(96/C 52/02)

COM(95) 434 final - 95/0248 (CNS)

(Submitted by the Commission on 10 November 1995)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas the fruit and vegetable sector in general is subject to various changes which the Community must take into account by adapting the basic rules in the relevant market organizations; whereas, as regards certain processed products, account should also be taken of the effects of international competition; whereas, in view of the numerous amendments made to Council Regulation (EEC) No 426/86 of 24 February 1986 on the common organization of the market in products processed from fruit and vegetables (1), as last amended by Commission Regulation (EC) No 2314/95 (2), a new regulation should, for reasons of clarity, be adopted;

Whereas it is desirable to insert in that new regulation the main provisions of Council Regulation (EEC) No 2245/88 of 19 July 1988 introducing a guarantee threshold system for peaches in syrup (3), as last amended by Commission Regulation (EC) No 1032/95 (4), of Council Regulation (EEC) No 1206/90 of 7 May 1990 laying down general rules for the system of production aid for processed fruit and vegetables (5), as last amended by Regulation (EEC) No 2202/90 (6), and of Council Regulation (EEC) No 668/93 of 17 March 1993 on the introduction of a limit to the granting of production aid for processed tomato products (7); whereas these Regulations should therefore be repealded;

Whereas certain processed products are of particular importance in the Mediterranean regions of the Community where producer prices are considerably higher than in third countries; whereas the system of production aid based on the signing of contracts guaranteeing a regular supply to the industry against payment of a minimum price to producers, as applied in the past, has proved successful and should be pursued; whereas, at the same time as for fresh products, the role of the producer organizations should be strengthened in order to ensure a greater concentration of supply, to manage supply along more rational lines and to facilitate the monitoring of compliance with minimum producer prices;

Whereas, in view of the link between prices for products intended to be consumed fresh and prices for products intended for processing, provision should be made for minimum producer prices to be determined taking into account the movement of market prices in the fruit and vegetable sector and the need to maintain a sufficient balance between the various market outlets for fresh products;

Whereas the amount of aid should compensate for the difference between the prices paid to producers with the Community and those paid in third countries; whereas, therefore, provision should be made for a calculation which takes account in particular of that difference and of the effect of changes in the minimum price, without prejudice to certain technical elements being applied;

Whereas, because of the abundant supply of raw materials and the elasticity of processing capacity, granting production aid could, in certain cases, encourage production to expand considerably; whereas, in order to avoid any difficulties in selling processed products, provision should be made for limits to the granting of aid in the form, depending on the product, either of a guarantee threshold or of a system of quotas; whereas, experience gained in respect of processed tomato products has led to the adoption of a more flexible system intended to enhance the dynamism of undertakings and the competitiveness of the Community industry;

Whereas the distinctive features of the dried grapes sector have led to the application of a system of aid for specialized areas cultivated; whereas this system, together with the system of maximum guaranteed areas designed to prevent the cultivation of grapes intended for drying from expanding excessively, must be included, as in the past, in the same regulation;

Whereas the replanting operations to combat phylloxera are being continued; whereas, in order to prevent those operations being discontinued while large areas still remain to be replanted, the system of aid to assist producers who are replanting their vineyards to combat phylloxera should be maintained;

Whereas, in order to facilitate the disposal of processed products and to bring their quality more into line with market requirements, provision should be made for laying down standards;

Whereas, in the case of the dried grape and dried fig sectors, the system of storage at the end of a marketing year, limited to a certain quantity of dried grapes, should be maintained subject to certain adjustments; whereas the buying-in prices for each of the two products should be established having regard to their distinctive characteristics;

Whereas provision should be made for the implementation of special measures to assist certain sectors which are threatened by international competition but where production is of major importance at local or regional level; whereas such measures must include structural improvements to enhance competitiveness and promote the use of the products in question;

Whereas by Regulation (EC) No 3290/94 (8) the Council has adopted the adaptations and transitional arrangements required in the agricultural sector in order to implement the agreements concluded in the context of the Uruguay Round of multilateral trade negotiations, in particular the new trade arrangements with third countries in the processed fruit and vegetables sector; whereas the provisions of Regulation (EEC) No 426/86, as amended by Annex XIV to Regulation (EC) No 3290/94, should be inserted in this Regulation; whereas, however, in order to simplify matters, responsibility for the implementation of certain technical provisions relating to any sugar shortages should be in the hands of the Commission;

Whereas the granting of certain aid would compromise the functioning of the internal market; whereas, therefore, the provisions of the Treaty enabling aid granted by Member States to be examined and enabling aid which is incompatible with the common market to be prohibited, should be extended to cover the fruit and vegetable sector;

Whereas the common organization of the market in processed fruit and vegetables must take proper and simultaneous account of the objectives set out in Articles 39 and 110 of the Treaty;

Whereas, to facilitate the implementation of the proposed measures, a procedure for close cooperation between the Member States and the Commission by means of a management committee should be set up,

HAS ADOPTED THIS REGULATION:

Article 1

1. This Regulation sets up a common organization of the market in processed fruit and vegetables.

2. The organization shall cover the following products:

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3. The marketing years for the products referred to in paragraph 2 shall be fixed in accordance with the procedure laid down in Article 26.

TITLE I

SYSTEM OF AID

Article 2

1. A system of production aid shall apply to the products listed in Annex I obtained from fruit and vegetables harvested in the Community.

2. Production aid shall be granted to processors who have paid producers for their raw materials a price not less than the minimum price under contracts between, on the one side, producer organizations recognized or provisionally authorized pursuant to Council Regulation (EC) No . . ./95, and processors on the other. The producer organizations shall extend the benefit of the provisions of this Article to operators not affiliated to any of the collective structures provided for in Regulation (EC) No . . ./95, who undertake to market through such structures all their output intended for the manufacture of the products referred to in Annex I and who pay a contribution towards the overall management costs of this system borne by the organization.

Contracts must be signed before the start of the marketing year.

Article 3

1. The minimum price to be paid to producers shall be calculated on the basis of:

(a) the minimum price applying during the previous marketing year;

(b) the movement of market prices in the fruit and vegetables sector;

(c) the need to ensure normal market disposal of fresh products for the various uses, including supply to the processing industry.

2. Minimum prices shall be fixed before the start of each marketing year.

3. Minimum prices and detailed rules for the application of this Article shall be adopted in accordance with the procedure provided for in Article 26.

Article 4

1. The production aid may not exceed the difference between the minimum price paid to the producer in the Community and the price of the raw material in the main producing and exporting third countries.

2. The amount of aid shall be so fixed as to enable the Community product to be disposed of at the minimum price, within the limit set in paragraph 1. In establishing the amount of the aid, without prejudice to the application of Article 5, account shall be taken in particular of:

(a) the difference between the price of the raw material in the Community and that obtaining in the major competing third countries;

(b) the amount of the aid fixed for the previous marketing year; and

(c) where Community production of a product accounts for a substantial share of the market, trends in the volume of external trade and in the prices obtaining in such trade, where the latter criterion results in a reduction in the amount of the aid.

3. The aid shall be fixed in terms of the net weight of the processed product. The coefficients expressing the relationship between the weight of raw material used and the net weight of the processed product shall be defined on a standardized basis. They shall be regularly updated on the basis of experience.

4. Aid shall be granted to processors only for processed products which

(a) have been produced from raw materials harvested in the Community, for which the applicant has paid at least the minimum price referred to in Article 3;

(b) meet minimum quality requirements.

5. The price of the raw material in main competing third countries shall be determined mainly on the basis of the prices actually applying at the farm-gate stage for fresh products of a comparable quality used for processing, weighted on the basis of the quantities of finished products exported by those third countries.

6. Where Community production accounts for at least 50 % of the quantities of a product making up the Community consumption market, the trends in prices and the quantities of imports and exports shall be assessed by comparing the data for the calendar year preceding the start of the marketing year with the data for the previous calendar year.

7. In the case of products processed from tomatoes, the production aid shall be calculated for:

(a) tomato concentrate falling within CN code 2002 90;

(b) whole peeled tomatoes obtained from the San Marzano variety or similar varieties and falling within CN code 2002 10;

(c) whole peeled tomatoes obtained from the Roma or similar varieties and falling within CN code 2002 10;

(d) tomato juice falling within CN code 2009 50.

8. The production aid for other products processed from tomatoes shall be derived, as appropriate, either from the aid calculated for tomato concentrate, with account being taken in particular of the dry extract content of the product, or from the aid calculated for whole peeled tomatoes obtained from the Roma or similar varieties, with account being taken in particular of the commercial characteristics of the product.

9. The Commission shall fix the amount of the aid before the start of each marketing year, in accordance with the procedure laid down in Article 26. The coefficients referred to in paragraph 3, the minimum quality requirements and the other detailed rules for the application of this Article shall be adopted in accordance with the same procedure.

Article 5

1. A guarantee threshold for the whole Community is hereby introduced for each marketing year in the products referred to. When the guarantee threshold is exceeded, the production aid shall be reduced. The guarantee threshold shall be:

(a) 582 000 tonnes net weight for peaches in syrup and/or natural fruit juice,

(b) 102 805 tonnes net weight for Williams and Rocha pears in syrup and/or natural fruit juice.

2. The amount by which the thresholds referred to in paragraph 1 are exceeded shall be calculated on the basis of the average quantities produced in the three marketing years preceding the marketing year for which the aid is to be fixed. Where the guarantee threshold is exceeded, the aid for the following marketing year shall be reduced in proportion to the amount by which the threshold is exceeded.

Article 6

1. A quota system is hereby introduced for granting production aid on products processed from tomatoes. The production aid shall be limited to a volume of processed products corresponding to a weight of 6 596 787 tonnes of fresh tomatoes.

2. The volume of processed products referred to in paragraph 1 shall be apportioned every five years among three separate product groups, namely tomato concentrate, tinned whole peeled tomatoes and other products, on the basis of the average quantities of products in each group produced in compliance with minimum prices during the five marketing years preceding the marketing year for which the apportionment is made.

However, the first apportionment, for the 1996/97 marketing year and for the subsequent four marketing years, shall be on the basis of the average quantities actually produced during the marketing years 1991/92, 1992/93, 1993/94 and 1994/95.

3. The quantity of fresh tomatoes, determined in accordance with paragraph 2 for each product group, shall be shared out each year among the Member States according to the average quantities produced in compliance with minimum prices during the three marketing years preceding the marketing year for which the allocation is made, excluding 1995/96, which shall not be taken into consideration.

However, for the first three apportionments, for the marketing years 1996/97, 1997/98 and 1998/99, the quantities taken into account in respect of the marketing years 1992/93, 1993/94 and 1994/95 shall be the quantities actually produced.

No apportionment under this paragraph may result in a variation, by Member State and by product group, of more than 20 % from one marketing year to the next. Where an apportionment is made under paragraph 2, that percentage shall be calculated on the basis of the quantities in the previous marketing year adjusted by the coefficients of variation resulting, for each group of products, from that apportionment.

4. Member States shall share out the quantities allocated to them between the processing undertakings established on their territory according to the average quantities produced in compliance with minimum prices during the three marketing years preceding the marketing year for which the allocation is made, excluding 1995/96, which shall not be taken into consideration.

However, for the first three apportionments, for the marketing years 1996/97, 1997/98 and 1998/99, the quantities taken into account in respect of the marketing years 1992/93, 1993/94 and 1994/95 shall be the quantities actually produced.

5. The apportionments referred to in paragraphs 2 and 3 shall be carried out in accordance with the procedure laid down in Article 26. The detailed rules for the application of this Article shall be adopted in accordance with the same procedure. They shall include, in particular, rules applying to undertakings that have been in business for less than three years, to new undertakings and in cases of mergers or transfers of undertakings.

Article 7

1. Aid shall be granted for the cultivation of sultanas, dried grapes of the Moscatel varieties and currants which are dried for processing.

The amount of the aid shall be fixed per hectare of specialized area harvested on the basis of the average yield per hectare of the area concerned. In addition, the amount of the aid shall be fixed to take account of:

(a) the need to ensure that the areas traditionally used to grow the said crops are maintained,

(b) the outlets available for these dried grapes.

The amount of aid may be differentiated according to grape variety and other factors which may affect yield.

2. A maximum guaranteed Community area is hereby introduced for each marketing year equal to the average of the areas in the Community used for the crops referred to in paragraph 1 in the marketing years 1987/88, 1988/89 and 1989/90. If the specialized areas used for the production of dried grapes exceed the maximum guaranteed Community area, the amount of the aid shall be reduced for the following marketing year according to the extent by which that area is exceeded.

3. The aid shall be granted once the areas have been harvested and the products have been dried for processing.

4. Producers who replant their vineyards to combat phylloxera and who are not in receipt of aid provided for under structural measures against that disease chargeable to the Guidance Section of the EAGGF shall be entitled, during three marketing years, to aid of an amount determined in the light of the amount of the aid referred to in paragraph 1 and of the amount of aid granted under the said structural measures. In this case, paragraph 3 shall not apply.

5. Before the beginning of each marketing year, the Commission shall fix the amount of the aid in accordance with the procedure laid down in Article 26. In accordance with the same procedure, it shall lay down the detailed rules for the application of this Article and determine, as necessary, the extent to which the maximum guaranteed area has been exceeded and the consequent reduction in the amount of aid.

Article 8

Common quality standards may be introduced for the products listed in Article 1 (2) intended either for consumption in the Community or for export to third countries, in accordance with the procedure laid down in Article 26.

Article 9

1. During the last two months of a marketing year, the agencies, legal or natural persons approved by the Member States concerned, hereinafter referred to as 'storage agencies', may buy in sultanas, currants and dried figs produced in the Community during the current marketing year provided the products comply with quality standards to be determined.

The quantities of sultanas and currants bought in under paragraph 2 may not exceed 27 370 tonnes.

2. The buying-in price at which storage agencies buy in the products referred to in paragraph 1 shall be:

(a) in the case of dried figs, the minimum price for the lowest quality class, less 5 %;

(b) in the case of sultanas and currants, the buying-in price in force during the 1994/95 marketing year, adjusted each year in line with the change in the minimum import price referred to in Article 13 or, from the year 2000, in world prices.

3. The products bought in by the storage agencies shall be disposed of on terms which do not jeopardize the balance of the market and which ensure equal access to the products for sale and equal treatment of purchasers.

Where products cannot be disposed of on normal terms, special measures may be taken. In that case, a special security may be required to ensure that undertakings entered into are fulfilled, in particular those relating to the destination of the product. The security shall be forfeit, in full or in part, if undertakings are not fulfilled or are fulfilled only in part.

4. Storage aid shall be granted to storage agencies for the quantities of products which they have bought in and for the actual duration of storage. However, the aid shall cease to be granted at the end of a period of 18 months following the end of the marketing year during which the product was bought in.

5. Financial compensation equal to the difference between the buying-in price paid by storage agencies and the selling price shall be granted to storage agencies. This compensation shall be reduced by the amount of any profits resulting from the difference between the buying-in price and the selling price.

6. For the purposes of applying paragraph 1, Member States shall approve storage agencies which provide adequate guarantees both that they can store products under satisfactory technical conditions and that they can satisfactorily manage the products bought in.

These agencies shall be required in particular to store products bought in on separate premises and to keep separate accounts for those products.

7. The sale of products bought in under paragraph 1 shall be organized by invitation to tender or at a price fixed in advance.

Tenders submitted shall be taken into account only where a security is lodged.

8. The buying-in price referred to in paragraph 2 and detailed rules for the application of this Article, in particular the arrangements for storage aid, financial compensation and the buying- in and sale of products by storage agencies shall be adopted in accordance with the procedure laid down in Article 26.

Article 10

1. In the case of products covered by Article 1 which are of major economic or ecological importance at local or regional level and are facing strong international competition, special measures to promote them and enhance their competitiveness may be taken in accordance with the procedure laid down in Article 26.

Such measures may include, in particular:

(a) action to improve the suitability for processing of products harvested and to adapt their characteristics to the needs of the processing industry;

(b) action to perfect the scientific and technical aspects of new operational methods and procedures with a view to improving quality and/or reducing production costs for processed products;

(c) action relating to the development of new products and/or new uses for processed products;

(d) the carrying out of economic and market studies;

(e) action to promote the consumption and use of the products concerned.

2. The measures provided for in paragraph 1 shall be carried out by producer organizations or their associations recognized pursuant to Regulation (EC) No . . ./95, in association with organizations representing the other branches of activity in the sector concerned.

3. A proportion of 50 % of the cost of the measures referred to in paragraph 1 will be met from public funds. Of this amount, Member States shall contribute 10 % and the Community 90 % in the so-called Objective 1 regions under Council Regulation (EEC) No 2052/88 (9), with Member States contributing 20 % and the Community 80 % in other regions.

4. Detailed rules for the application of this Article, and in particular for ensuring the compatibility and complementarity of the measures provided for in this Article with those adopted pursuant to Article 17 of Regulation (EC) No . . ./95, on the one hand, and with the measures financed pursuant to Articles 2, 5 and 8 of Council Regulation (EEC) No 4256/88 (10), on the other, shall be adopted in accordance with the procedure laid down in Article 26.

TITLE II

TRADE WITH THIRD COUNTRIES

Article 11

1. Imports into the Community, or exports therefrom, of any of the products listed in Article 1 (2) may be subject to presentation of an import or export licence.

Licences shall be issued by Member States to any applicant, irrespective of his place of establishment in the Community and without prejudice to measures taken for the application of Article 15, 16, 17 and 18.

Import and export licences shall be valid throughout the Community. The issue of such licences may be subject to the lodging of a security guaranteeing that the products are imported or exported during the term of validity of the licence; except in cases of force majeure, the security shall be forfeited in whole or in part if import or export is not carried out, or is carried out only partially, within that period.

2. The term of validity of licences and other detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 12

1. Save as otherwise provided for in this Regulation, the rates of duty in the common customs tariff shall apply to the products listed in Article 1 (2).

2. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 13

1. A minimum import price for the 1995, 1996, 1997, 1998 and 1999 marketing years shall be fixed for the products listed in Annex II. The minimum import price shall be determined having regard in particular to:

- the free-at-frontier prices on import into the Community,

- the prices obtaining on world markets,

- the situation on the internal Community market,

- the trend of trade with third countries.

Where the minimum import price is not observed, a countervailing charge in addition to customs duty shall be imposed, based on the prices of the main supplier third countries.

2. The minimum import price for dried grapes shall be fixed before the beginning of the marketing year.

A minimum import price shall be fixed for currants and for other dried grapes. For each of the two groups of products, the minimum import price may be fixed for products in immediate packing of a net weight to be determined and for products in immediate packing of a net weight exceeding that weight.

3. The minimum import price for processed cherries shall be fixed before the beginning of the marketing year. The price may be fixed for products in immediate packing of a determined net weight.

4. The minimum import price to be observed for dried grapes shall be that applicable on the day of importation. The counterveiling charge to be levied, if any, shall be that which is applicable on the same day.

5. The minimum price to be observed for import of sour cherries and processed cherries shall be that applicable on the day of acceptance of entry for free circulation.

6. Countervailing charges for dried grapes shall be fixed by reference to a scale of import prices. The difference between the minimum import price and each step of the scale shall be:

- 1 % of the minimum price for the first step,

- 3,6 % and 9 %, respectively, of the minimum price for the second, third and fourth steps.

The fifth step of the scale shall cover all cases where the import price is lower than that applied for the fourth step.

The maximum countervailing charge to be fixed for dried grapes shall not exceed the difference between the minimum price and an amount determined on the basis of the most favourable prices applied on the world market for significant quantities by the most representative non-member countries.

7. Where the import price for sour cherries and processed cherries is less than the minimum price for those products, a countervailing charge equal to the difference between those prices shall be levied.

8. The minimum import price, the amount of the countervailing charge and the other rules for the implementation of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 14

1. In order to prevent or counteract adverse effects on the market in the Community which may result from imports of certain products listed in Article 1 (2), imports of one or more such products at the rate of duty laid down in the common customs tariff shall be subject to payment of an additional import duty if the conditions set out in Article 5 of the Agreement on Agriculture concluded in accordance with Article 228 of the Treaty in the framework of the Uruguay Round of multilateral trade negotiations have been fulfilled, unless the imports are unlikely to disturb the Community market, or the effects would be disproportionate to the intended objective.

2. The trigger prices below which an additional duty may be imposed shall be those forwarded by the Community to the World Trade Organization in accordance with its offer tabled during the Uruguay Round of multilateral trade negotiations.

The trigger volumes to be exceeded in order to have the additional import duty imposed shall be determined in particular on the basis of imports into the Community in the three years preceding the year in which the adverse effects referred to in paragraph 1 arise or are likely to arise.

3. The import prices to be taken into consideration for imposing an additional import duty shall be determined on the basis of the cif import prices of the consignment concerned.

The cif import prices shall be verified for this purpose on the basis of the representative prices for the product in question on the world market or on the Community import market for the product.

4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26. Such detailed rules shall specify in particular:

(a) the products to which additional import duties may be applied pursuant to Article 5 of the Agreement on Agriculture;

(b) the other criteria necessary for application of paragraph 1 in accordance with Article 5 of the Agreement on Agriculture.

Article 15

1. Tariff quotas for the products listed in Article 1 (2) resulting from agreements concluded in the framework of the Uruguay Round of multilateral trade negotiations shall be opened and administered in accordance with detailed rules adopted in accordance with the procedure laid down in Article 26.

2. Quotas may be administered by applying one of the following methods or a combination thereof:

(a) a method based on the chronological order in which applications are lodged (on a 'first come, first served' basis);

(b) a method allocating quotas in proportion to the quantities requested when applications are lodged (using the 'simultaneous examination' method);

(c) a method based on taking traditional trade flows into account (using the 'traditional/new arrivals' method).

Other appropriate methods may be adopted.

They must avoid discrimination between the operators concerned.

3. The method of administration adopted shall, where appropriate, take account of the supply needs of the Community market and the need to safeguard the equilibrium of that market, whilst at the same time drawing on methods applied in the past to quotas corresponding to those referred to in paragraph 1, without prejudice to rights arising from agreements concluded in the framework of the Uruguay Round of trade negotiations.

4. The detailed rules referred to in paragraph 1 shall provide for annual quotas, suitably phased over the year, shall determine the administrative method to be used and, where appropriate, shall include:

(a) guarantees covering the nature, provenance and origin of the product;

(b) recognition of the document used for verifying the guarantees referred to in (a); and

(c) the conditions under which import licences are issued and their term of validity.

Article 16

1. To the extent necessary to enable export of:

(a) economically significant quantities of the products without added sugar referred to in Article 1 (1);

(b) - white and raw sugar falling within CN code 1701,

- glucose and glucose syrup falling within CN codes 1702 30 51, 1702 30 59, 1702 30 91, 1702 30 99 and 1702 40 90,

- isoglucose falling within CN codes 1702 30 10, 1702 40 10, 1702 60 10 and 1702 30 90, and

- beet and cane syrups falling within CN code ex 1702 90 99,

used in the products listed in Article 1 (2) (b), on the basis of prices for those products in international trade and within the limits resulting from agreements concluded in accordance with Article 228 of the Treaty, the difference between those prices and prices in the Community may be covered by export refunds.

2. The method to be adopted for the allocation of the quantities which may be exported with a refund shall be the method which:

(a) is most suited to the nature of the product and the situation on the market in question, allowing the most efficient possible use of the resources available and takes due account of the efficiency and structure of Community exports, without, however, creating discrimination between large and small operators;

(b) is least cumbersome administratively for operators, administration requirements taken into account;

(c) avoids any discrimination between the operators concerned.

3. Refunds shall be the same for the whole Community.

Where the international trade situation or the specific requirements of certain markets make this necessary, the refund on a given product may vary according to the destination of the product.

Refunds shall be fixed in accordance with the procedure laid down in Article 26. Refunds shall be fixed at regular intervals.

Refunds fixed at regular intervals, may, if necessary, be amended in the interval by the Commission at the request of a Member State or on its own initiative.

4. Refunds shall be granted only on application and on presentation of the relevant export licence.

5. The refund applicable to exports shall be that applicable on the day of application for the licence and, in the case of a differentiated refund, that applicable on the same day:

(a) for the destination indicated on the licence; or

(b) for the actual destination if it differs from the destination indicated on the licence. In that case, the amount applicable may not exceed the amount applicable for the destination indicated on the licence.

Appropriate measures may be taken to prevent abuse of the flexibility provided for in this paragraph.

6. Paragraphs 4 and 5 may be waived in the case of products on which refunds are paid under food-aid operations, in accordance with the procedure laid down in Article 26.

7. Compliance with the limits on volumes arising from agreements concluded in accordance with Article 228 of the Treaty shall be ensured on the basis of the export certificates issued for the reference periods provided for therein and applicable to the products concerned. With regard to compliance with the obligations arising under the agreements concluded in the framework of the Uruguay Round of trade negotiations, the ending of a reference period shall not affect the validity of export licences.

8. Detailed rules for the application of this Article, including provisions on redistribution of unallocated or unused exportable quantities, shall be adopted in accordance with the procedure laid down in Article 26.

Article 17

1. This Article shall apply to the refunds referred to in Article 16 (1) (a).

2. The following shall be taken into account when refunds are being fixed:

(a) the existing situation and future trends with regard to:

- prices and availability on the Community market of products processed from fruit and vegetables,

- prices ruling in international trade;

(b) minimum marketing and transport costs from the Community markets to ports or other points of export in the Community, as well as costs of shipment to the countries of destination;

(c) the economic aspect of the proposed exports;

(d) limits resulting from the agreements concluded in accordance with Article 228 of the Treaty.

3. When prices on the Community market are being determined for the products referred to in Article 16 (1) (a), account shall be taken of the ruling prices which are most favourable from the point of view of exportation.

The following shall be taken into account when prices in international trade are being determined:

(a) prices ruling on third-country markets;

(b) the most favourable price in third countries of destination for imports from third countries;

(c) producer prices recorded in exporting third countries;

(d) offer prices at the Community frontier.

4. The refund shall be paid upon proof that:

- the products have been exported from the Community,

- the products are of Community origin, and

- in the case of a differentiated refund the products have reached the destination indicated on the licence or another destination for which the refund was fixed, without prejudice to Article 16 (5) (b). However, exceptions may be made to this rule in accordance with the procedure laid down in Article 26, provided conditions are laid down which offer equivalent guarantees.

5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 18

1. This Article shall apply to the refunds referred to in Article 16 (1) (b).

2. The amount of the refund shall equal:

- for raw sugar, white sugar and beet and cane syrup, the amount of the export refund for such products in the unprocessed state, fixed in accordance with Article 17 of Council Regulation (EEC) No 1785/81 (11) and its implementing provisions,

- for isoglucose, the amount of the export refund for that product in its unprocessed state, fixed in accordance with Article 17 of Regulation (EEC) No 1785/81 and its implementing provisions,

- for glucose and glucose syrup, the amount of the export refund for such products in their unprocessed state, fixed for each of those products in accordance with Article 13 of Council Regulation (EEC) No 1766/92 (12), and its implementing provisions.

3. In order to benefit from the refund, processed products must be accompanied, upon export, by a declaration from the applicant stating the quantities of raw and white sugar and beet and cane syrups, isoglucose, glucose and glucose syrup used in manufacture.

The accuracy of the declaration referred to in the first subparagraph shall be subject to checking by the competent authorities of the Member States concerned.

4. If the refund is insufficient to allow export of the products listed in Article 1 (2) (b), the provisions laid down for the refund referred to in Article 16 (1) (a) shall apply to those products instead of those in Article 1 (2) (b).

5. The refund shall be granted on exports of products:

(a) which are of Community origin;

(b) which have been imported from third countries and on which the import duties referred to in Article 12 have been paid, provided the exporter proves:

- that the product to be exported and the product previously imported are one and the same, and

- that the import duties where collected on importation.

In the case covered by (b), the refund on each product shall be equal to the duties collected on importation where the latter are lower than the refund applicable; where the duties collected on importation are higher than that refund, the latter shall apply.

6. The refund shall be paid upon proof that:

- the products fulfil either of the two conditions set out in paragraph 5,

- the products have been exported from the Community, and

- in the case of a differentiated refund the products have reached the destination indicated on the licence or another destination for which the refund was fixed, without prejudice to Article 16 (5) (b). However, exceptions may be made to this rule in accordance with the procedure laid down in Article 26, provided conditions are laid down which offer equivalent guarantees.

7. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 19

1. To the extent necessary for the proper working of the common organization of the markets in cereals, sugar and fruit and vegetables, the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, may, in particular cases, prohibit in whole or in part the use of inward processing arrangements in respect of:

- the products referred to in Article 16 (1) (b), and

- fruit and vegetables intended for the manufacture of the products listed in Article 1 (2).

2. However, by way of derogation from paragraph 1, if the situation referred to in paragraph 1 arises with exceptional urgency and the Community market is disturbed or is liable to be disturbed by the inward processing arrangements, the Commission shall, at the request of a Member State of on its own initiative, decide upon the necessary measures; the Council and the Member States shall be notified of such measures, which shall be valid for no more than six months and shall be immediately applicable. If the Commission receives a request from a Member State, it shall take a decision thereon within a week following receipt of the request.

3. The Commission's decision may be referred to the Council by any Member State within a week of the day on which it was notified. The Council, acting by a qualified majority, may confirm, amend or repeal the Commission's decision. If the Council has not acted within three months, the Commission's decision shall be deemed to have been repealed.

Article 20

1. Where pursuant to Article 20 of Regulation (EEC) No 1785/81 a levy exceeding ECU 5 per 100 kilograms is charged on exports of white sugar, the imposition of a charge on exports of the products listed in Article 1 (2) containing a minimum of 35 % added sugar may be decided in accordance with the procedure laid down in Article 26.

2. The amount of the export charge shall be fixed taking into account:

- the nature of the product processed from fruit or vegetables which contains added sugar,

- the added sugar content of the product in question,

- the prices of white sugar in the Community and on the world market,

- the export levy applicable to white sugar,

- the economic implications of applying the said charge.

3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 26.

Article 21

1. The general rules for the interpretation of the combined nomenclature and the special 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 in 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:

- the levying of any charge having equivalent effect to a customs duty,

- the application of any quantitative restriction or measure having equivalent effect.

Article 22

1. If, by reason of imports or exports, the Community market in one or more of the products listed in Article 1 (2) is affected by, or is threatened with, serious disturbance likely to jeopardize the achievement of the objectives set out in Article 39 of the Treaty, appropriate measures may be applied in trade with third countries until such disturbance or threat of disturbance has ceased.

The Council, acting on a proposal from the Commission in accordance with the voting procedure laid down in Article 43 (2) of the Treaty, shall adopt the general rules for the application of this paragraph and shall determine the cases in which and limits within which Member States may take protective measures.

2. If the situation referred to in paragraph 1 arises, 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.

4. This Article shall be applied having regard to the obligations arising from international agreements concluded in accordance with Article 228 (2) of the Treaty.

TITLE III

GENERAL PROVISIONS

Article 23

Articles 92, 93 and 94 of the Treaty shall apply to the production of and trade in the products referred to in Article 1 (2).

Article 24

1. Member States and the Commission shall communicate to each other the information necessary for the application of this Regulation. The data to be communicated shall be determined in accordance with the procedure laid down in Article 26. Detailed rules for the communication and distribution of such information shall be adopted in accordance with the same procedure.

2. The laws, regulations and administrative provisions adopted by Member States for the application of this Regulation, including any amendments thereto, shall be communicated to the Commission no later than one month after their adoption.

3. Member States shall take all appropriate measures to penalize infringements of the provisions of this Regulation and to forestall and bring to an end any fraud.

Article 25

A Management Committee for Processed Fruit and Vegetables, hereinafter referred to as 'the Committee', shall be set up, consisting of representatives of the Member States and chaired by a representative of the Commission.

Article 26

1. Where reference is made to the procedure laid down in this Article, the chairman shall refer the matter to the Committee either on his/her own initiative or at the request of the representative of a Member State.

2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The chairman shall not vote.

The Commission shall adopt measures which shall apply immediately. However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by the Commission to the Council forthwith. In that event the Commission may defer application of the measures which it has decided for a period of not more than one month from the date of such communication.

The Council, acting by qualified majority, may take a different decision within one month.

Article 27

The Committee may consider any other question referred to it by its chairman either on his/her own initiative or at the request of the representative of a Member State.

Article 28

Expenditure incurred pursuant to Articles 2, 8, 9 (4) and (5) and 10 (3) shall be deemed to be intervention to stabilize the agricultural markets within the meaning of Article 1 (2) (b) of Council Regulation (EEC) No 729/70 (13).

Article 29

This Regulation shall be so applied that appropriate account is simultaneously taken of the objectives set out in Articles 39 and 110 of the Treaty.

Article 30

Regulations (EEC) No 426/86, (EEC) No 2245/88, (EEC) No 1206/90 and (EEC) No 668/93 are hereby repealed.

References to those Regulations shall be understood as references to this Regulation and are to be read in accordance with the correspondence tables in Annex III.

Article 31

This Regulation shall enter into force on 1 January 1996.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 49, 27. 2. 1986, p. 1.

(2) OJ No L 233, 30. 9. 1995, p. 69.

(3) OJ No L 198, 26. 7. 1988, p. 18.

(4) OJ No L 105, 9. 5. 1995, p. 3.

(5) OJ No L 119, 11. 5. 1990, p. 74.

(6) OJ No L 201, 31. 7. 1990, p. 4.

(7) OJ No L 72, 25. 3. 1993, p. 1.

(8) OJ No L 349, 31. 12. 1994, p. 105.

(9) OJ No L 185, 15. 7. 1988, p. 9.

(10) OJ No L 374, 31. 12. 1988, p. 25.

(11) OJ No L 177, 1. 7. 1981, p. 4.

(12) OJ No L 181, 1. 7. 1992, p. 21.

(13) OJ No L 94, 28. 4. 1970, p. 13.

ANNEX I

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ANNEX II

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ANNEX III

Table of equivalence