Commission Regulation (EC) No 2366/98 of 30 October 1998 laying down detailed rules for the application of the system of production aid for olive oil for the 1998/99, 1999/2000 and 2000/01 marketing years
Date: 1998-10-30
Institutions: European Commission
Subjects: aid system, olive oil, production aid

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COMMISSION REGULATION (EC) No 2366/98

of 30 October 1998

laying down detailed rules for the application of the system of production aid for
olive oil for the 1998/99, 1999/2000 and 2000/01 marketing years

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

olive trees that can be replaced without leading to an
increase in overall production;

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation No 136/66/EEC of
22 September 1966 on the establishment of a common
organisation of the market in oils and fats (1), as last
amended by Regulation (EC) No 1638/98 (2), and in
particular Article 5 thereof,

Having regard to Council Regulation (EC) No 1638/98 of
20 July 1998 amending Regulation No 136/66/EEC on
the establishment of a common organisation of
the
market in oils and fats, and in particular Articles 2(4) and
4 thereof,

Having regard to Council Regulation (EEC) No 2261/84
of 17 July 1984 laying down general rules on the granting
of aid for the production of olive oil and of aid to olive oil
producer organisations (3), as last amended by Regulation
(EC) No 1639/98 (4), and in particular Article 19 thereof,

Whereas Article 3 of Regulation (EEC) No 2261/84
provides for the lodging of a crop declaration; whereas
certain concepts such as that of ‘olive tree in production'
should be precisely defined, and the content and schedule
of producers’ notifications should be laid down, to ensure
up-to-date knowledge of the oil-producing sector and to
improve such knowledge before the start of the 2001/02
production year, when it is planned to introduce a reform;

Whereas to avoid seriously endangering market equilib-
rium, Article 4 of Regulation (EC) No 1638/98 provides
that no aid under any scheme in force from 1 November
2001 may be paid in respect of olive trees planted after 1
May 1998 except in connection with the conversion of an
old olive plantation or with a programme approved by the
Commission; whereas the concept of
‘additional olive
trees' and ‘new plantings' must therefore be defined, as
must the relevant arrangements for declaration, identifica-
tion and approval; whereas programmes for additional
plantings should specify the number of dead or burnt

(1) OJ 172, 30. 9. 1966, p. 3025/66.
(2) OJ L 210, 28. 7. 1998, p. 32.
(3) OJ L 208, 3. 8. 1984, p. 3.
(4) OJ L 210, 28. 7. 1998, p. 38.

Whereas pending in-depth examination of the methods
at present used by the Member States, it is necessary to
prolong application into the 1998/99 crop year of the
provisions of Commission Regulation (EEC) No 3061/84
laying down detailed rules for the application of
the
system of production aid for olive oil (5), last amended by
Regulation (EC) No 2455/97 (6);

Whereas for the purposes of approval, Article 13(1) of
Regulation (EEC) No 2261/84 requires mill-owners to
comply with certain conditions; whereas the conditions
for approval introduced should be such as to ensure effec-
tive control arrangements; whereas mills
should be
equipped for automatic weighing of batches of olives
entering the mill; whereas the information recorded
should include particulars of the destination of oil leaving
the mill;

Whereas in accordance with Article 14 of Regulation
(EEC) No 2261/84, each producer Member State must
apply a system of checks to ensure that the product in
respect of which aid is granted is eligible for such aid;
whereas consequently aid applications must include the
particulars required for such a system to be applied;
whereas to that end, certain obligations should be laid
upon olive-growers and upon producer organisations and
associations thereof;

Whereas olive-growers can have their olives pressed in a
Member State other than the Member State of production;
whereas with a view to the correct application of the aid
scheme, provision should be made for administrative
collaboration between the Member State where the oil is
obtained and the Member State of origin of the olives;

Whereas the factors to be taken into consideration to
determine the quantity eligible for aid should be defined;
whereas rules should be laid down for determining the
quantity eligible for aid in cases where the quantity for
which aid is requested and/or the number of trees in-
dicated in the crop declaration cannot be checked or
cannot be accepted when checks are carried out;

(5) OJ L 288, 1. 11. 1984, p. 52.
(6) OJ L 340, 11. 12. 1997, p. 26.

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Whereas pending in-depth examination of the scheme at
present in force, it is necessary to prolong application of
the provisions of Commission Regulation (EEC) No
3061/84 concerning recognition of producers’ organ-
isations and associations thereof, and the arrangements for
financing them on the basis of aid withheld in accordance
with Article 20d of Regulation No 136/66/EEC;

for

Whereas Article 2 of Regulation (EC) No 1638/98
provides that, during the 1998/99 to 2000/01 marketing
years, work on the olive cultivation register provided for
in Commission Regulation (EEC) No 2276/79 of 16
October 1979 laying down detailed rules
the
drawing-up of a register of olive cultivation in the
Member States producing olive oil (1), last amended by
Regulation (EEC) No 1279/89 (2), should focus on the
creation, updating and utilisation of a geographic in-
formation system (GIS); whereas consequently, with a
view to ensuring compatibility with the databases of the
integrated administration and control system provided for
in Council Regulation (EEC) 3508/92 of 27 November
1992 establishing an integrated administration and
control system for certain Community aid schemes (3), last
amended by Regulation (EC) No 820/97 (4) and in Regu-
lation (EEC) No 3887/92 of 23 December 1992 laying
down detailed rules for applying the integrated adminis-
tration and control system for certain Community aid
schemes (5),
last amended by Commission Regulation
(EC) No 1678/98 (6), the information to be included in
the oil cultivation GIS should be specified along with
centralisation methods, arrangements, criteria and tech-
nical
tolerances; whereas with a view to Community
financing it is necessary to determine in what conditions
the oil cultivation GIS of a Member State or region shall
be deemed to have been completed;

Whereas the oil cultivation GIS must enable information
in crop declarations to be verified; whereas it is necessary
to provide for a procedure for the examination of discrep-
ancies between those declarations and the estimates of the
oil cultivation GIS; whereas in cases where the discrep-
ancy cannot be resolved,
the
quantity of olive oil eligible for aid must be determined;

the consequences

for

all the Member States and whereas efforts should there-
fore concentrate on that task;

Whereas arrangements must be laid down for on-the-spot
controls, specifying in particular the number of declara-
tions that should be checked on the spot in areas where
the oil cultivation GIS has not been completed; whereas,
to check consistency between information in applications
for aid and information in the stock records of mills,
in-depth controls of a representative proportion of mills
should be organised, with penalties for consignees of oil
who refuse to be inspected or are unable to prove that
they have taken delivery of the oil;

Whereas the measures provided for in this Regulation
should be taken into account in the work schedule of
control agencies provided for in Commission Regulation
(EEC) No 27/85 of 4 January 1985 laying down detailed
rules for the application of Regulation (EEC) No 2262/84
laying down special measures in respect of olive oil (7),
last amended by Regulation (EEC) No in 3602/92 (8);

Whereas the measures provided for in this Regulation are
in accordance with the opinion of
the Management
Committee for Oils and Fats,

HAS ADOPTED THIS REGULATION:

CHAPTER 1

Crop declarations

Article 1

For the purposes of granting aid for the production
1.
of olive oil as provided for in Article 5 of Regulation
136/66/EEC, before 1 December of each marketing year
olive growers shall lodge crop declarations covering their
olive trees in production and details of the olive groves
they manage as at 1 November of the marketing year to
which the declarations correspond.

Whereas, in case the GIS has not been completed, provi-
sion should be made for a minimum number of on-the-
spot checks of crop declarations; whereas, for the 1998/99
marketing year, the oil cultivation GIS must be set up in

2.

(a)

(1) OJ L 262, 18. 10. 1979, p. 11.
(2) OJ L 127, 11. 5. 1989, p. 24.
(3) OJ L 355, 5. 12. 1992, p. 1.
(4) OJ L 117, 7. 5. 1997, p. 1.
(5) OJ L 391, 31. 12. 1992, p. 36.
(6) OJ L 212, 30. 7. 1998, p. 23.

For the purposes of this Regulation:

‘olive tree in production' means a living olive tree of a
species classed as domestic, permanently established,
irrespective of age or condition, possibly possessing
several trunks separated from one another at the base
by less than two metres;

(7) OJ L 4, 5. 1. 1985, p. 5.
(8) OJ L 366, 15. 12. 1992, p. 31.

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(b)

‘olive-growing parcel' means:

— a parcel of olive-trees as defined by the Member
State concerned, or, if no such definition exists,

— a continuous tract of land covered, over an area
greater than that referred to in the second indent
of Article 24(1), by olive trees in production each
of which is less than 20 metres from another olive
tree;

‘scattered olive trees' means olive trees in production
which do not fulfil the conditions necessary to consti-
tute a group of trees on an olive-growing parcel;

‘area under olive trees' means the area of an olive-
growing parcel, or, for each scattered olive tree, an
area of 1 are;

‘farmer' and ‘holding' mean the concepts as defined
for the integrated system provided for in Article 1(4)
of Council Regulation (EEC) No 3508/92.

(c)

(d)

(e)

lodged with the
3. Crop declarations
competent agency of the Member State or, where applic-
able, the producer organisation of which the olive grower
concerned is a member.

shall be

Article 2

From the 1998/99 marketing year, crop declarations shall
include at least:

(a)

the surname,
grower;

forenames and address of

the olive

(b) the location or locations of the holding;

(c) the

total number of olive-trees

in production,

including scattered olive trees;

(d) the land register

the olive-growing
references of
parcels of the holding or, where no land register is
kept, a full description of the holding and of the
olive-growing parcels;

(e) for each olive-growing parcel: the number of olive
trees in production, the principal variety, and details
of any irrigation or associated crops present.

If there is no change in the information in question, the
crop declarations shall be lodged at the same time as the
aid applications and shall simply state that there is no
change as compared with the previous declaration.

2. Declarations made under Regulation (EEC) No
3061/84 shall be replaced by a full crop declaration in
accordance with Articles 1 and 2 in the course of the
1999/2000 and 2000/01 marketing years.

Article 4

1.
To constitute a basis for the payment of aid to olive
growers under the common organisation of the market in
oils and fats in force from 1 November 2001, additional
olive trees planted after 1 May 1998 must be identified
geographically and included in a national or regional
programme approved by the Commission under
the
procedure laid down in Article 38 of Regulation No 136/
66/EEC.

Olive trees shall be deemed to be identified geograph-
ically where they appear in the graphical reference data-
base provided for in Article 24 or, failing this, where the
competent agency of the Member State has cartographical
information allowing the trees to be located.

For the purposes of Article 4 of Regulation (EC) No
2.
1638/98,
‘additional olive tree' means an olive tree
planted after 1 May 1998, other than one replacing an
olive tree grubbed after 1 May 1998:

— in the geographical area covered by a conversion

programme, or

— if grubbing and replacements are recorded indi-
vidually, on the holding of the olive grower in ques-
tion.

The grubbed olive tree referred to in the preceding
subparagraph must not be one that has already been
recorded as having been replaced by another tree; and
must be one which, before grubbing, was an olive tree in
production identified geographically.

Programmes

3.
trees
submitted to the Commission for approval must contain
the following information in particular:

additional

covering

olive

Article 3

(a)

1. Where a crop declaration has already been lodged
with the competent body, the crop declaration for the
current crop year shall simply indicate the references to
the previous declaration and any changes which have
occurred since then. For the 1998/99 and 1999/2000
marketing years, any changes shall be taken into account
having regard to the definitions in force and the informa-
tion required for crop declarations under Regulation
(EEC) No 3061/84 for 1997/98.

the total number of olive trees in production and the
zone
corresponding
in the
concerned at
the
programme,

areas
the date of presentation of

geographical

(b) the number of olive trees planted and grubbed, as
in the programme, and the corres-

provided for
ponding areas,

(c) where applicable, the number of dead or burnt olive
trees to be replaced, with a description of the circum-
stances,

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(d) the geographical locations of the olive trees grubbed,

dead or burnt.

— a reference to the programme approved by the
Commission under which the planting in question
is being carried out.

Article 5

1. New planting from 1 November 1995 to 31 October
1998 shall be covered by a declaration before 1 April
1999 including the information referred to in Article 2 or,
where applicable,
references to an earlier declaration
containing the same information. The declaration of new
planting shall be accompanied by documents proving to
the satisfaction of the Member State either that:

— all or some of the trees were planted prior to 1 May

1998; or that:

— planting was carried out after 1 May 1998 and before 1
November 1998, and was accompanied by grubbing
in that period of a number (to be specified) of olive
trees in production.

Proof may take the form of sales invoices from nurseries,
delivery documents for young plants or any other docu-
ments recognised by the Member State.

the

1998,

From 1 November

growers
2.
concerned shall lodge prior declarations of intention to
plant, indicating the number and location of the olive
trees in question and, where applicable, the number and
location of olive trees to be grubbed, or which have been
grubbed and not replaced after 1 May 1998.

olive

No later than the end of the second month following that
in which the declarations as referred to in the first
subparagraph are lodged, the Member States shall inform
the growers concerned whether:

— the planned planting involves

the replacing of
grubbed trees and cannot
therefore be deemed to
involve additional olive trees within the meaning of
Article 4(2),

— the planned planting involves additional olive trees
covered by a programme approved under Article 4
and therefore qualifies for aid after 31 October 2001,

— the planned planting involves additional olive trees
not constituting a basis for the payment of aid after 31
October 2001.

3.
In the context of crop declarations as referred to in
Article 2, any olive trees planted must be specified, along
with:

(a) a reference to the prior declaration referred to in

paragraph 2, and

(b) as, appropriate:

— an indication of

the number of olive trees in
production that have been grubbed and which the
new trees replace, or

CHAPTER 2

Yields

Article 6

1.
For the purposes of fixing the olive yields and oil
yields referred to in Article 18 of Regulation (EEC) No
2261/84 for
the 1998/99 marketing year, producer
Member States shall provide the Commission with data
on homogeneous production zones, taking account in
particular of:

— the geographical location and the agronomic charac-

teristics of the terrain,

— the predominant varieties, the most common type of
shape pruning and the age of the olive trees.

The homogeneous production zones may be altered only
on presentation of convincing justifications. Such altera-
tions shall be made on the Commission’s initiative or at
the request of a Member State.

The data on each production zone as referred to in

2.
paragraph 1 shall include at least the following:

(a)

the geographical boundaries of the zone;

(b) the estimated area under olive trees;

(c) the estimated average number of olive trees per

hectare of land used for olive growing;

(d) the average olive production per tree;

(e) the average production of virgin olive oil per 100

kilograms of olives.

3.
Before 1 August 1999 at the latest, the Member
States shall forward the data referred to in paragraph 2(b)
to (e), together with a short report on production condi-
tions recorded in each zone during the marketing year.

4.
For the purposes of establishing oil yields for the
1998/99 marketing year, producer Member States shall
determine, at mills equipped in various ways and repres-
entative of pressing capacity in the zone in question at
various stages of the harvest, the olive-oil yield in each
production zone.

For the purposes of establishing olive yields, the Member
States shall determine, at least for the largest production
zones and at the beginning of the marketing year, the
olive yields from trees representative of production condi-
tions in the zone.

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CHAPTER 3

Approved mills

Article 7

From the 1998/99 marketing year, for the purposes of
granting approval to mills:

(a)

the information referred to in Article 13(1)(a) of Regu-
lation (EEC) No 2261/84 must include the following:

— oil storage capacity,
— actual pressing capacity per eight-hour working

day,

— a description of the technical equipment installed
or operating at the mill, with details of the type,
make, model and hourly capacity of each unit;

(b) among the means of inspection for mills which have
produced more than 20 tonnes of oil in the previous
marketing year, the facilities must include an auto-
matic system for weighing olives and recording the
weights and an electricity meter specifically for the
pressing equipment.

However, from the 1999/2000 marketing year, point (b)
shall apply to mills with a capacity, as referred to in the
second indent of (a), greater than 2 tonnes of oil per
eight-hour working day. That provision shall apply to
other mills from the 2000/01 marketing year.

In addition, as soon as the information concerned is
available, mills must issue olive growers with certificates
as provided for in Article 12(1) and must comply with the
inspection conditions laid down by the Member State.

Without prejudice to national penalties which may be
applicable, Article 13(4) of Regulation (EEC) No 2261/84
shall apply, in the light of the risks induced for quantities
eligible for aid,
to compliance with the conditions
provided for in this Article and for Articles 8 and 9.

— for monthly statements of this information to be
sent before the tenth day of the month following
the month concerned to the competent agency
and, where applicable, to the agency responsible
for checks; however, for mills that have produced
in the previous
less
marketing year,
shall
include only the quantitative information indic-
(c),
ated in Article 9(1)(b),

than 20 tonnes of oil

the monthly statement

(d) and (f),

— for checking of the method of disposing of waste

water;

(c) from the 1999/2000 marketing year, for supplies of
olive oil to meet one of the following requirements:

— either, quantity sold is less than 50 litres or where
no sale has taken place, that it has been supplied
the
issue of a receipt showing at
against
quantity concerned, and the references and signa-
ture of the consignee;

least

— or, where the oil has been sold, that it has been
supplied in reusable immediate packings of a
maximum capacity of 200 litres,
fitted with a
sealing device that cannot be resealed and bearing
a serial number, the approval number of the mill
and the marketing year; or

— or where the oil has been sold, that it has been
supplied against the issue of an invoice and a bank
record of the payment.

Article 9

Stock records as provided for in Article 8(b) shall

1.
include, in respect of each day:

(a)

the quantities of olives entering the mill batch by
batch, with the name of the producer or the owner of
each batch;

Article 8

(b) the quantities of olives pressed;

the inspection arrangements provided for

Under
in
Article 14 of Regulation (EEC) No 2261/84, the Member
States shall make provision:

(a)

in particular by analysis of samples, for verifying that
the oil matches the descriptions and definitions in
point 1 of the Annex to Regulation No 136/66/EEC
is not contaminated by undesirable
and that
substances, in particular solvents;

it

(b) from the 1998/99 marketing year:

(c) the quantities of oil obtained;

(d) the quantities of oil purchased or obtained from 1
December 1998, indicating the consignor; quantities
relating to November 1998 shall be indicated as an
aggregate;

(e) the quantities of olive residue obtained, determined

on a flat-rate basis;

— for stock records linked to the financial accounts
to be kept, containing at least the information
specified in Article 9(1) and, where applicable,
references to analyses carried out,

(f)

the quantities of oil leaving the mill batch by batch,
with the name of the consignee and an indication
whether the consignee is a producer covered by the
first indent of paragraph (c) of Article 8;

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(g) the quantities of olive residue leaving the mill:

— batch by batch, with the name of the consignee in
the case of sale to an extraction establishment,

— determined on a flat-rate basis, with the name of

the consignee in other cases,

— weighed batch by batch, where the mill has a

weighbridge.

2. At
checking the stock records, the mill shall present:

the authorities responsible for

the request of

(a)

from 1 July and from the 1998/99 marketing year, the
quantity of olive oil pressed since the beginning of
the marketing year, broken down by batch of olives
entering the mill and by producer concerned;

(b) from the 1999/2000 or 2000/01 marketing year in
accordance with the second paragraph of Article 7,
automatically recorded weights of batches of olives
entering the mill;

(c) from the 1999/2000 marketing year, a register of
quantities supplied, broken down in accordance with
the three indents of Article 8(c), indicating the refer-
ences of the consignee of the oil;

(d) where the oil and/or olive residue obtained is sold, the
sales invoice for each batch and, from the 1999/2000
marketing year, the bank statements showing payment
for the oil.

3. Quantities of olive residue as referred to in paragraph
1 may be determined on a flatrate basis by multiplying
the quantity of olives pressed by a coefficient shown in
the technical specifications of the mill or, failing this, the
following indicative coefficients:

— 0,35 for mills with a traditional production cycle,

— 0,45 for mills with a continuous three-stage produc-

tion cycle,

— 0,70 for mills with a continuous two-stage production

cycle.

declaration of the quantities for each main destination of
the oil obtained in the preceding marketing year, and a
statement of the stock situation on 1 November.

Producers’ organisations shall notify the information in
the second subparagraph to the competent body in the
Member State, or where appropriate the control agency,
before 1 January. The Member States shall notify the
Commission thereof before 15 January.

2.
The main consignees of oil as referred to in Article
9(1)(f) other than those referred to in paragraph 1 shall
hold at the disposal of the control authorities the docu-
ments necessary to enable the authorities to check that
the said consignees did indeed take delivery of the oil in
question. The definition of
‘main consignee' and the
determination of
the necessary documents shall be a
matter for the Member State.

Article 11

Producer Member States shall notify the Commis-

1.
sion:

— before 1 September, of

the quantity of olive oil
produced by mills in respect of the marketing year in
progress at 30 June;

— before 1 December, of
produced by mills
marketing year.

the quantity of olive oil
the previous

in respect of

2.
In cases as referred to in Article 13(6) of Regulation
(EEC) No 2261/84, in order to obtain approval of mills
under special control arrangements, the Member State
to the
concerned shall present a reasoned request
Commission, specifying the type of controls it undertakes
to apply to the mill concerned. Within 30 days the
Commission shall decide whether or not
to grant
approval and shall notify the Member State concerned of
its decision.

CHAPTER 4

Article 10

Applications for and grant of aid

1.
For the purposes of control, olive growers referred to
in Article 9(1)(f) having received more than 200 litres of
oil shall keep until
the marketing year
the end of
following that in question a record of the destination of
the oil produced from their olives, or where appropriate a
sales invoice or other documentary evidence.

Moreover, the grower shall present to the competent body
in the Member State or where appropriate to the produ-
cers’ organisation of which he is a member, from the
1999/2000 marketing year and before 1 December, a

Article 12

1. Aid applications may be lodged by any olive grower
who has lodged a crop declaration. They shall include at
least the following information:

(a)

the surname,
grower;

forenames and address of

the olive

(b) the quantity of virgin olive oil produced;

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(c) the location(s) of the holding and of the parcels on
which the olives were harvested, with a reference to
the crop declaration;

(d) the approved mill(s) at which the oil was produced,
with details of the quantities of olives used and of oil
produced by each mill;

(e) where appropriate, from the 1999/2000 crop year, the
quantity of olives supplied to a table olive processing
firm, indicating the firm’s references.

Aid applications must be accompanied by a certificate
from the mill, the form and content of which shall be
decided by the Member States, corroborating the details
referred to under (d).

2. Where olive growers have sold some or all of their
olives, the aid applications shall include, in addition to
the information specified in paragraph 1:

(a)

the surname, first names and address of the purchaser;

(b) a copy of the invoice for the sale of the olives;

(c) a copy of the certificate from the mill confirming the

details referred to in paragraph 1(d).

3. Aid applications shall be submitted by olive growers
before 1 July of each marketing year:

— to the producer organisation, where olive growers are

members of such an organisation,

— to the competent authorities of the Member State
concerned, where olive growers are not members of a
producer organisation.

Except in cases of force majeure, where applications are
submitted late, the aid to which the olive growers would
have been entitled had their applications been submitted
on time shall be reduced by 1 % per working day.
Applications submitted more than 25 days late shall be
inadmissible.

4. Olive growers wishing to receive the advance on the
aid provided for in Article 12 of Regulation (EEC) No
2261/84 must submit an application for the advance with
their aid applications.

The Member States shall notify the Commission
5.
before 1 September of each marketing year of the number
of aid applications and the quantities of olive oil
concerned.

Article 13

Where part or all of an olive grower’s production is
pressed at an approved mill located in a Member State
other than that in which the olives were harvested, the aid
application shall be submitted to the competent agency of
the Member State where the oil was produced.

In such cases, after checking the mill concerned, the
latter Member State shall forward the aid application and
the information concerning the check at the mill to the
Member State of origin of the olives. After checking that
all the requirements for the grant of the aid have been
met, the Member State where the olives were harvested
shall pay the production aid.

Article 14

1. Olive growers shall be eligible for aid in respect of
the quantity of virgin olive oil they actually produce, plus
the flat-rate quantity of olive-residue oil provided for in
paragraph 2.

However, the quantity on which aid may be paid in
respect of crop declarations and aid applications for the
1998/99, 1999/2000 and 2000/01 marketing years in the
cases referred to in Article 15 of Regulation (EEC) No
2261/84 and Article 2(3) of Regulation (EC) No 1638/98
shall be determined in accordance with Article 15.

The quantity of olive-residue oil on which the aid
2.
may be paid shall be equal to 8 % of the quantity of
virgin olive oil produced from the olives from which the
residue has come and in respect of which entitlement to
aid has been recognised in accordance with Article 2(4) of
Regulation (EEC) No 2261/84.

3.
For the purposes of determining the quantity of
virgin olive oil actually produced, as from the 1998/99
marketing year the competent agency shall take account
in particular of:

— the basic data in the register of olive cultivation or the
geographical information system (GIS) for olive culti-
vation as regards production potential. In areas not
currently covered by the olive cultivation register or
the GIS, the information contained in crop declara-
tions shall be used;

— the information from the computerised files referred

to in Article 27;

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— evidence of pressing provided by approved mills;

— the results of checks carried out.

For the purposes of

4.
fixing actual production as
referred to in Article 17a(2) of Regulation (EEC) No 2261/
84,
inform the
Commission before 1 April following each marketing
year of the quantity on which the aid is payable.

the Member States concerned shall

— where the percentage in excess is greater than 55 %
but not greater than 75 %, the olive grower and the
parcels concerned shall not be eligible under the aid
scheme for the marketing year in question,

— where the percentage in excess is greater than 75 %,
the olive grower and the parcels concerned shall not
be eligible under the aid scheme for the marketing
year in question or the following marketing year.

Article 15

Article 16

In cases as provided for in Article 15(2) and (3) of
1.
Regulation (EEC) No 2261/84 where the quantity covered
by aid applications is not confirmed by the approved mill,
the quantity of oil from that mill on which each olive
grower concerned is eligible for aid shall be determined
by the Member State in accordance with Article 15(4) of
that Regulation.

the mill,

However, without prejudice to any claims which the olive
the
growers concerned might make against
quantity on which aid is payable may not exceed 75 % of
the quantity covered by each aid application submitted or
75 % of the quantity obtained by multiplying the average
yields for the homogeneous production zone by the
number of olive trees concerned. The number of trees
shall be established pro rata as a function of the quantity
of oil concerned in cases where aid is requested for oil
obtained in several mills.

than that actually found,

trees shown in the crop
2. Where the number of
declaration is greater
the
quantity on which aid is payable and, where applicable,
any other penalties shall be determined on the basis of
the percentage by which the number of trees declared
exceeds the actual number in accordance with Article
28(4):

— where that percentage in excess is 55 % or less, the
aid shall be granted on the quantity referred to in the
first subparagraph of Article l4(1),
less a corrective
amount; the corrective amount shall be equal to the
quantity in question multiplied by the percentage and
by a coefficient given by the following scale:

Percentage in excess

Coefficient

Subject to the results of checks carried out, in partic-
1.
ular as referred to in Article 28, the Member States shall
pay the advance provided for in Article 12 of Regulation
(EEC) No 2261/84 from 16 October of each marketing
year.

2. After carrying out all the requisite checks and subject
to the results thereof, the Member States shall pay the
balance of the aid to producers within 90 days of the
fixing by the Commission of actual production for the
marketing year concerned and of the unit amount of
production aid as provided for in Article 17a(2) of Regula-
tion (EEC) No 2261/84.

CHAPTER 5

Producer organisations and associations thereof

Article 17

Without prejudice to the other conditions laid down in
Article 20c of Regulation No 136/66/EEC, Chapters 3
and 4 of Regulation (EEC) No 2261/84 and this Regula-
tion, producer organisations and associations thereof may
not be recognised unless they have given an undertaking:

(a)

to have the administrative structure required for the
performance of
the tasks with which they are
entrusted;

greater than 0 but not greater than 5

0

(b) to have

the qualified staff

required for

the

performance of such tasks;

greater than 5 but not greater than 15

greater than 15 but not greater than 25

greater than 25 but not greater than 35

greater than 35 but not greater than 45

greater than 45 but not greater than 55

0,005

0,0075

0,010

0,0125

0,015

(c) to draw up quarterly reports on their work and to keep
records relating to their management activities;

(d) subject to observance of the time limit laid down in

Article 12(3),

— in the case of organisations which are nonmem-
bers of an association, to submit to the competent
authority
aid applications
forwarded to them by their members during the
preceding month,

each month the

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— in the case of organisations which are members of
an association, to forward to the association each
month the aid applications submitted to them by
their members during the preceding month,

to submit

— in the case of associations of producer organ-
isations,
to the competent authority
each month the aid applications forwarded to
them during the preceding month by their
member organisations.

Recognition shall depend on observance of all the condi-
tions set out in this Article.

advances to the competent agency of the Member State
concerned.

Article 21

1.
the
Before 31 April of each marketing year,
following amounts shall be fixed on the basis of forecasts
for the overall aid withheld in accordance with Article
20d of Regulation No 136/66/EEC and within the ceiling
of the foreseeable resources for each Member State:

Article 18

(a)

the unit amount to be allocated to associations for
each of their member producer organisations;

For the purposes of verifying compliance with the condi-
tion laid down in Article 4(2) of Regulation (EEC) No
2261/84, producer organisations
their
members to provide copies of the title deeds, contracts or
other documents on the basis of which they manage their
olive groves. Those copies shall be annexed to the
producer organisation’s register of members.

require

shall

Article 19

1.
Producer organisations which make up an associa-
tion must represent at least one third of the economic
regions referred to in Article 4(3) of Regulation (EEC) No
2261/84.

2.
The verification provided for in the first indent of
Article 10 of Regulation (EEC) No 2261/84 shall cover
the checks carried out by the association’s
5 % of
member producer
shall
prepare a detailed report on each check carried out and
shall immediately forward a copy thereof to the Member
State concerned, and to the control agency if necessary.

organisations. Associations

Article 20

Before 1 January of each marketing year, producer
1.
organisations or, where appropriate, associations thereof
shall submit their members’ crop declarations and any
amendments thereto to the competent agency of
the
Member State concerned.

2.
Producer organisations or, where appropriate, asso-
ciations thereof shall submit the aid applications for the
marketing year in progress to the competent agency of
the Member State concerned before 1 August of each
marketing year. However, aid applications lodged late by
olive growers may be submitted by the organisation or
association by 14 August of each marketing year.

(b) the unit amount to be allocated to producer organ-
isations for each individual aid application submitted.

In order
to determine the number of members of
producer organisations to be taken into consideration for
the purposes of applying point (a), only members who
have submitted at least one application to the organ-
isation during the period covering the current and the
three previous marketing years
shall be taken into
account.

The balance of
the aid withheld in accordance with
Article 20d of Regulation No 136/66/EEC shall be
divided among the producer organisations on the basis of
the quantity of olive oil on which the aid is granted
through each organisation.

Without prejudice to Article 11(3) of Regulation (EEC)
No 2261/84, in cases where associations have discharged
all their responsibilities under Community rules and have
not used the entire sum raised by the financing arrange-
ment provided for in point (a), they must divide the
balance among their member producer organisations on
the basis of the number of members of such organ-
isations.

2. However, where the aid withheld in accordance with
Article 20d(1) of Regulation No 136/66/EEC is not suffi-
cient to grant the amounts resulting from the application
of paragraph 1(a) and (b) to the producer organisations
and associations thereof, the Member States concerned
may contribute towards the payment of certain costs
arising from the checks carried out by such bodies.

In such cases, the Member States may grant amounts
which differ from those specified in paragraph 1 (a) and
(b) to the producer organisations and associations thereof,
but
in no circumstances may the latter amounts be
exceeded.

3. After conducting the checks provided for in Article
8(1) of Regulation (EEC) No 2261/84, producer organ-
forward their members’ applications for
isations shall

3. Advances as provided for in Article 11(4) of Regula-
tion (EEC) No 2261/84 may not exceed:

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— in the case of associations, 70 % of the sum obtained
by multiplying the unit
the
preceding marketing year pursuant to paragraph 1(a)
by the number of members of their member producer
organisations, or

fixed for

amount

— in the case of producer organisations, 70 % of the
sum obtained by multiplying the unit amount fixed
for the preceding marketing year pursuant to para-
graph 1(b) by the number of foreseeable applications.

CHAPTER 6

Geographical information system for olive cultiva-
tion

Article 22

The geographical information system for olive cultivation
provided for in Article 2(1) of Regulation (EC) No 1638/
98, hereinafter referred to as the ‘olive cultivation GIS',
shall cover olive growers who have submitted crop
declarations as provided for in Article 1 of this Regulation
and aid applications as provided for in Article 12.

Article 23

1. A computerised alphanumerical database shall be
established to record the following information relating to
each agricultural holding or parcel, as the case may be:

— the information from crop declarations and aid

applications, with any amendments thereto,

— the quantities of olive oil and, where applicable, of

table olives on which aid has been paid,

— the information referred to in Article 10(1),

— the results of on-the-spot checks.

2.
The alphanumerical system for identifying agricul-
tural parcels shall be the same as that used for the in-
tegrated administration and control system (IACS), sup-
plemented, where necessary, to cover areas under olive
trees.

Article 24

graphical

1. A computerised
database
containing the parcels covered by a significant number of
declarations shall be established for the administrative
units designated by the Member States. It shall comprise
the following three sets of graphical information:

reference

— digital orthophotographs,

— the boundaries of the administrative units and of the
parcels as shown in the land register or, where none
exists, in the parcel identification system established
by the Member State,

— the location of the individual olive trees.

The Member State shall fix the minimum size of olive-
growing parcels below which no boundaries shall be
determined. That minimum size may not be greater than
10 ares.

For administrative units not included in the graphical
reference database, the Member States shall set up an
alternative system to ensure that declarations are valid.

The graphical reference database shall apply a homo-
2.
geneous projection system to the whole country and shall
ensure that the different layers of information are geomet-
rically consistent over space and time.

The graphical reference database shall be updated period-
ically to ensure that it contains the most recent informa-
tion available and that the orthophotographs are no more
than five years old.

3.
The digital orthophotographs shall comply with the
geometrical standards for mapmaking on a 1:10 000 scale
and, from the radiometric point of view, shall have a
maximum pixel size of one metre. They shall comply
with market standards as regards mosaicking and tone.

Parcel boundaries shall be in raster or vector format, as
available, complying with the standards for map making
on a 1:10 000 scale. In all cases, the system introduced
shall possess the topological properties needed to provide
easy access to parcels, monitoring of boundary fluctu-
ations over the four previous marketing years and access
to the characteristics of parcels in the alphanumerical
database.

4. Olive growers who have lodged crop declarations
may access the information in the graphical reference
base and may, on application, receive a copy of the alpha-
numerical and graphical information concerning them.

Article 25

1.
The area of agricultural parcels and the number of
olive trees in the graphical reference base shall be deter-
mined by any suitable means as defined by the competent
body, in particular by photo-interpretation of recent, very
high resolution aerial or satellite photographs. However,
on-the-spot inspections must be conducted where clear
results cannot be obtained by photo-interpretation.

Scattered olive trees shall be identified, and their location
plotted approximately.

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The Member States, shall lay down technical tolerances
regarding the accuracy of area measurements and tree
counting, taking account of official documents available
and the local situation.

(a)

the alphanumerical database as provided for in Article
23(1) includes the information on all crop declarations
and aid applications for the most recent marketing
year;

2. Numbers of olive trees in each as determined by
reference to the graphical reference database shall be
compared with the information in crop declarations
included in the alphanumerical database.

Where the declared number of olive trees on the holding
differs by more than 3 % from the number determined in
accordance with paragraph 1, the crop declaration shall be
deemed to contain a discrepancy.

3.
The olive growers concerned shall be notified where
their declarations contain discrepancies. The growers
concerned shall be granted a period of grace of up to
three months, at the Member State’s discretion, in which
to provide justifications for the discrepancy or, when first
informed thereof, to amend their declarations.

for

the Member State to accept

At the grower’s request, where the justifications provided
are insufficient
the
declared data, amended where applicable, a check shall be
carried out in the presence of both parties, the cost of
which is to be borne by the grower should the declared
data, whether or not amended pursuant
to the first
subparagraph, not be confirmed.

The number of olive trees determined for each

4.
parcel shall correspond:

— to the data from the declaration, where applicable as
amended pursuant to paragraph 3, where no discrep-
ancies are found or where any discrepancies are
smaller than those determined in accordance with
paragraph 1,

— to the data determined in accordance with paragraph
1, where the olive grower has failed to reply within the
period of grace allowed on notification of a discrep-
ancy,

— to the data recorded after the check provided for in
in other

the second subparagraph of paragraph 3,
cases.

The areas calculated in accordance with paragraph 1
5.
and the numbers of olive trees determined for each
parcel, and the totals per holding, shall be recorded in the
alphanumerical database.

Article 26

(b) the graphical reference database as provided for in the
first and second subparagraphs of Article 24(1) gives
the location of all the parcels covered by the database
and included in the alphanumerical database;

(c) the numbers of olive trees on parcels in the database
referred to at (a) and those in the database referred to
at (b) have been compared pursuant to Article 25(2)
and the number of declarations containing discrepan-
cies making it impossible to determine the data to be
recorded pursuant to Article 25(4) represents less than
5 % of all crop declarations.

2. Without prejudice to the results of verifications made
in the course of clearance of EAGGF accounts, expend-
iture on setting up the olive cultivation GIS and the
periodical updating of the graphical reference database
shall be eligible for Community financing for the 1998/
99, 1999/2000 and 2000/01 marketing years.

3.
The Member States shall inform the Commission of
national measures taken pursuant to Articles 23 to 26.

Before 1 January 1999 the Member States shall present a
report to the Commission on the situation of the olive
cultivation GIS as at 1 November 1998.

By 1 November 1999 the Commission shall determine
whether the olive cultivation GIS for any region or
Member State has been completed on the basis of a report
from the Member State concerned in accordance with the
procedure laid down in Article 38 of Regulation No 136/
66/EEC.

CHAPTER 7

Controls

Article 27

1.
The permanent computerised files of olive and
olive-oil production data provided for in Article 16 of
Regulation (EEC) No 2261/84 shall include:

(a)

the alphanumerical database and the graphical refer-
ence database of the olive cultivation GIS provided for
in Articles 23 and 24 and the results of the checks
provided for in Article 25;

(b) the files of new planting containing the information
referred to in Article 5 and the results of the checks
provided for in Article 29;

1.
The olive cultivation GIS of a Member State or
region shall be deemed to have been completed once, for
the zone in question:

(c) the files of producer organisations and associations
thereof containing the information referred to in
Article 16(2)(b) of Regulation (EEC) No 2261/84;

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(d) the files of mills containing information on the condi-
tions for approval referred to in Article 7, the stock
records provided for in Article 8 and the results of the
checks provided for in Article 30;

(b) checks of aid applications shall comprise the verifica-
tions referred to in the second and third indents of
Article 14(3a) of Regulation (EEC) No 2261/84.

(e) the files of

the homogeneous production zones
containing the information referred to in Article 6.

2.
The files referred to in paragraph 1, with the excep-
tion of the graphical reference database, shall enable the
data of the current and four previous marketing years at
least to be consulted directly and immediately.

The Member States may establish decentralised files
provided the latter are of homogeneous design, are
compatible with each other and are accessible centrally at
the paying agency and the control agency. The olive
cultivation GIS databases must be compatible with those
of the integrated system.

The identification codes of olive growers, producer organ-
isations and associations thereof, mills and homogeneous
production zones shall be either assigned to the indi-
vidual persons or bodies concerned once and for all or
and
automatically
searches over the five marketing years referred to in the
first subparagraph to be conducted immediately.

convertible

to enable

aggregates

Checks to ensure that the crop declarations and aid
applications tally shall in particular take account of:

— the olive and oil yields fixed in accordance with
Article 18 of that Regulation for the zone in which
the holding or holdings of origin of the olives
pressed are located;

— the average olive and oil yields in municipalities
where the holding or holdings of origin of the
olives pressed are located, if such yields are avail-
able in the Member States.

In cases where the checks made under the first subpara-
graph reveal inconsistencies, the procedure laid down in
Article 25(2) and (3) for the number of olive trees shall
apply mutatis mutandis
to the other anomalous or
missing information. However, the quantity of oil for
which aid has been requested may not be changed.

2. Notwithstanding the first subparagraph of paragraph
1, in regions where the olive cultivation GIS has not yet
been completed,
shall be
conducted on 1 % of all crop declarations in the 1998/99
marketing year, 5 % in 1999/2000 and 10 % in 2000/01.

on-the-spot

inspections

Without prejudice to the checks to be carried out, in
particular cross-checks between files, and the results to be
notified, the files shall contain archives of the historical
data available for the marketing years prior to those
referred to in the first subparagraph and, from 31 October
2001 at the latest, shall allow the information contained
in them:

At least two thirds of the declarations referred to in the
first subparagraph shall be declarations that have not been
checked on the spot during the previous two marketing
years.

— to be automatically aggregated at

regional

and

Member State level,

— to be automatically compared between files.

3. During the on-the-spot checks, all the information
in crop declarations and aid applications shall be verified,
and in particular:

Article 28

1.

From the 1998/99 marketing year,

(a) checks of crop declarations shall comprise at least:

— comparisons with the data in the graphical refer-
ence database and, where applicable, adjustments
in accordance with Article 25,

— cross-checks to show that parcels declared actually
exist and to prevent any duplication of aid granted
under this scheme or other aid schemes involving
declarations of areas;

— the location of each parcel and the number of olive

trees therein,

— the destination of the oil in the case referred to in

Article 10(1),

— consistency between the olive trees on holdings and
the quantity of oil covered by aid applications.

Aid applications specifying an inconsistent quantity of oil
shall be rejected.

4.
For each marketing year from 1998/99, a percentage
shall be established, where applicable, for the number of
trees declared over and above the number of trees deter-
mined in accordance with Article 25(4) or found during
the checks referred to in paragraphs 1 and 2.

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That percentage in relation to the number of trees deter-
mined shall be equal
to the difference between the
number of trees declared and the number determined,
where that difference is greater than zero, multiplied by
100.

Article 29

the Member States

1. Where there is insufficient proof or where there is
doubt,
shall conduct on-the-spot
checks before 1 November 1999 of declarations as
provided for in Article 5(1).

Planting and grubbing operations carried out
in the
period from 1 May to 31 October 1998 shall be deter-
mined on the basis of all the information to be supplied
by the growers, at the request of the competent agency of
the Member State, and of the situation found on the spot,
particularly as regards the size of trees. Once all the
checks have been made, growers shall be given the
benefit of the doubt.

2. At least 10 % of declarations as provided for in
Article 5(2) and (3) in respect of each marketing year shall
be checked before the end of the following marketing
year.

Article 30

1.
From the 1998/99 marketing year, the checks as
provided for in Article 14(3) of Regulation (EEC) No
2261/84 shall include an in-depth check of the consis-
the information and data supplied for each
tency of
least 30 % of approved mills
marketing year by at
selected on the basis of
the
risk analysis. However,
number of checks in each Member State shall not be less
than the number of checks on mills carried out under the
1997/98 marketing year.

In addition, to establish that the information is recorded
and the conditions for approval are met, cursory checks
shall be conducted at the following percentages of the
mills at least:

— 5 % in 1998/99,

— 10 % in 1999/2000,

— 20 % in 2000/01.

2.

In-depth checks shall comprise:

(a) an on-the-spot inspection of equipment, quantities
and types of product in stock, accounts and other
relevant documents;

(b) comparisons between the various data provided by the
in particular
mills or available from other sources,
with supplies, the destination of oil and olive residue,
electricity
consumption and labour
employed;

and water

(c) comparisons between the quantities in the stock
records and the overall quantities in the aid applica-
tions lodged by the olive growers concerned;

(d) the other checks referred to in Article 8; the sample
analyses referred to in Article 8(a) shall be carried out
for at least 25 % of the samples taken.

3. Moreover, for at least 10 % of in-depth checks, the
Member State shall check the suppliers of goods or
services or the consignees of the oil or of the olive residue
referred to in Article 10 or in Article 9(1)(g) respectively.

If the consignee of the oil or of the olive residue refuses
to submit to the check, or if the competent body has
evidence showing that delivery was not taken of the oil or
olive residue in question:

— in the case referred to in Article 10(1), he shall be
liable to pay the Member State an amount double that
of the aid for the quantity of oil concerned,

— in the case referred to in Article 10(2), the Member
State shall apply a penalty commensurate with the
quantity of oil concerned.

Amounts collected by the Member State shall be deducted
the European Agricultural
from the expenditure of
Guidance and Guarantee Fund by the paying bodies or
departments in the Member State.

Article 31

Where an agency is entrusted with the task of carrying
out checks as provided for in this Regulation, such checks
shall be shown in the agency’s work schedule drawn up in
accordance with Articles 3 and 4 of Regulation (EEC) No
27/85.

Notwithstanding Article 4(1) and (2) of Regulation (EEC)
No 27/85, the work schedule for the 1998/99 marketing
year shall be adjusted as necessary and presented to the
Commission before 1 December 1998 for approval before
1 January 1999. The adjusted schedule and the corre-
sponding budget shall be approved definitively by the
Member State concerned by 15 January 1999 at the latest.

CHAPTER 8

General

Article 32

Producer Member States shall take all measures necessary
to inform the olive growers, the mills and the other

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operators concerned of the penalties provided for in or
pursuant to the Community regulations, in particular for
cases where crop declarations or aid applications do not
correspond to the truth.

Producer Member States shall forward provisions adopted
pursuant to this Regulation to the Commission imme-
diately.

Before 1 January 2000 and 1 January 2001, producer
Member States shall present a summary report of the
number of checks carried out under Articles 28, 29 and
30, the number of cases where adjustment was required,
the information or quantities
with an indication of
concerned, and the penalties imposed or under considera-

tion, along with a brief assessment of the control arrange-
ments set up and any difficulties encountered.

Article 33

Regulation (EEC) No 2276/79 is repealed with effect from
1 November 1999.

Regulation (EEC) No 3061/84 shall continue to apply
solely to measures relating to marketing years prior to
1998/99 until 31 October 1999. It is repealed with effect
from 1 November 1999.

Article 34

This Regulation shall enter into force on 1 November
1998.

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

Done at Brussels, 30 October 1998.

For the Commission

Franz FISCHLER

Member of the Commission