Commission Regulation (EC) No 481/1999 of 4 March 1999 laying down general rules for the management of promotional programmes for certain agricultural products
Date: 1999-03-04
Institutions: European Commission
Subjects: agricultural product, economic support, food consumption, sales promotion

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COMMISSION REGULATION (EC) No 481/1999

of 4 March 1999

laying down general rules for the management of promotional programmes for
certain agricultural products

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 11(5) thereof,

Having regard to Council Regulation (EEC) No 822/87 of
16 March 1987 on the common organisation of
the
market in wine (3), as last amended by Regulation (EC) No
1627/98 (4), and in particular Article 46(4) thereof,

Having regard to Council Regulation (EEC) No 1195/90
of 7 May 1990 on measures to increase the consumption
and utilisation of apples (5), and in particular Article 5
thereof,

Having regard to Council Regulation (EEC) No 1201/90
of 7 May 1990 on measures to increase the consumption
of citrus fruit (6), and in particular Article 4 thereof,

Having regard to Council Regulation (EEC) No 1332/92
of 18 May 1992 introducing specific measures for table
olives (7), as last amended by Regulation (EC) No 1267/
95 (8), and in particular Article 5 thereof,

Having regard to Council Regulation (EEC) No 2067/92
of 30 June 1992 on measures to promote and market
quality beef and veal (9), and in particular Article 4
thereof,

Having regard to Council Regulation (EEC) No 2073/92
of 30 June 1992 on promoting consumption in the
Community and expanding the markets for milk and
milk products (10), and in particular Article 4 thereof,

Having regard to Council Regulation (EC) No 2275/96 of
22 November 1996 introducing specific measures for live
plants and floricultural products (11), and in particular
Article 5 thereof,

(1) OJ 172, 30. 9. 1966, p. 3025/66.
(2) OJ L 210, 28. 7. 1998, p. 32.
(3) OJ L 84, 27. 3. 1987, p. 1.
(4) OJ L 210, 28. 7. 1998, p. 8.
(5) OJ L 119, 11. 5. 1990, p. 53.
(6) OJ L 119, 11. 5. 1990, p. 65.
(7) OJ L 145, 27. 5. 1992, p. 1.
(8) OJ L 123, 3. 6. 1995, p. 4.
(9) OJ L 215, 30. 7. 1992, p. 57.
(10) OJ L 215, 30. 7. 1992, p. 67.
(11) OJ L 308, 29. 11. 1996, p. 7.

Whereas Commission Regulations (EEC) No 3461/85 (12),
as last amended by Regulation (EC) No 1402/97 (13),
(EEC) No 2282/90 (14), as last amended by Regulation
(EC) No 2404/96 (15), (EEC) No 3601/92 (16), as amended
by Regulation (EC) No 2507/94 (17),
(EEC) No 1318/
93 (18), as last amended by Regulation (EC) No 351/
1999 (19), (EC) No 3582/93 (20), as last amended by Regula-
tion (EC) No 1432/97 (21), and (EC) No 803/98 (22), on the
promotion of grape juice, apples, citrus fruit, table olives,
quality beef and veal, milk and milk products, and live
plants and floricultural products respectively lay down
different rules for different sectors as regards the duration
of programmes, the financial management of contracts
and, in particular, the terms of payment;

Whereas the various rules on the implementation of
promotional contracts should be harmonised in the inter-
ests of sound financial management,
in particular as
regards the duration of the contracts;

Whereas the various provisions concerning fulfilment of
the commitments made must be laid down in contracts
concluded between the parties concerned and the
competent national authorities within a reasonable time
limit on the basis of standard contracts supplied by the
Commission;

Whereas, in order to ensure that contracts are properly
carried out, contractors should lodge a security in favour
of the competent body, equal to 15 % of the Community
contribution; whereas, for the same purpose, a security
should be lodged if an advance payment is requested;

Whereas, for the purposes of the primary requirement
within the meaning of Article 20 of Commission Regula-
tion (EEC) No 2220/85 (23), as last amended by Regulation
(EC) No 3403/93 (24), the quality beef and veal sector
should, because of its special features, be distinguished
from the other sectors included in the promotional
programmes;

(12) OJ L 332, 10. 12. 1985, p. 22.
(13) OJ L 194, 23. 7. 1997, p. 1.
(14) OJ L 205, 3. 8. 1990, p. 8.
(15) OJ L 327, 18. 12. 1996, p. 27.
(16) OJ L 366, 15. 12. 1992, p. 17.
(17) OJ L 267, 18. 10. 1994, p. 3.
(18) OJ L 132, 29. 5. 1993, p. 83.
(19) OJ L 44, 18. 2. 1999, p. 10.
(20) OJ L 326, 28. 12. 1993, p. 23.
(21) OJ L 196, 24. 7. 1997, p. 51.
(22) OJ L 115, 17. 4. 1998, p. 5.
(23) OJ L 205, 3. 8. 1985, p. 5.
(24) OJ L 310, 14. 12. 1993, p. 4.

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Whereas, for the purposes of budget management, provi-
sion must be made for a penalty for failure to submit
payment applications or non-compliance with the dead-
line for the submisson of intermediate quarterly payment
applications or for late payment by Member States;

— grape juice,

— milk and milk products,

— apples and citrus fruit,

— quality beef and veal,

the Community financial contribution,

Whereas the payments to be made may take up the whole
of
leaving no
balance to pay; whereas, in order to avoid that risk and in
the interests of sound financial management, it should be
stipulated that the advance and the various intermediate
payments cannot exceed 75 % of the Community contri-
bution; whereas, in the same interests, the application for
the balance should be made by the competent body
within a set time limit;

Whereas Member States must monitor the implementa-
tion of measures and the Commission must be kept
informed of the results of the measures provided for in
this Regulation; whereas, in the interests of sound finan-
cial management, cooperation between Member States
should be provided for where measures are carried out in
a Member State other than that in which the competent
body is established;

Whereas, for reasons of sound financial management and
in order to improve the effectiveness of the measures
carried out, provision should be made for independent
evaluation of measures, in addition to internal evaluation
by the contractor; whereas rules for carrying out and
financing such external evaluation should be laid down;

Whereas, where the overall budget for a programme to be
evaluated is relatively low and the cost of evaluation may
turn out to be disproportionately high compared with the
budget, provision should be made, by way of an excep-
tion, to waive the requirement for such external evalu-
ation;

Whereas, where several programmes are implemented in
any Member State, it may prove economical to entrust a
single body with the
the
task of
programmes in that Member State;

evaluating all

Whereas the measures provided for in this Regulation are
in accordance with the opinion of
the Management
Committees for Wine, Milk and Milk Products, Fruit and
Vegetables, Beef and Veal, Live Plants, and Oils and Fats,

HAS ADOPTED THIS REGULATION:

Article 1

This Regulation lays down general indirect management
rules applying to promotional programmes
the
following:

for

— live plants and floricultural products,

— olive oil and table olives, where this type of manage-

ment applies.

Article 2

1.

Under the programme selection procedure:

— as soon as the Member State is notified of

Commission
programmes, or

decision

approving

the
promotional

— in the case of live plants and floricultural products, as
list of measures selected by the

soon as the final
Member State concerned is drawn up,

all applicants shall be informed whether or not their
applications have been selected.

2.
The competent bodies shall conclude contracts with
the parties concerned within 30 calendar days of notifica-
tion of the Commission decision or, in the case of live
plants and floricultural products, of the drawing up of the
final
list of measures selected by the Member State
concerned. Beyond that deadline, no contracts may be
concluded without prior authorisation from the Commis-
sion.

shall use standard contracts
The competent bodies
shall
supplied by the Commission. Those contracts
contain the
two
applicable, which the
contracting parties shall be deemed to know and accept.

conditions

Subject to extension authorised by the Commission, the
measures provided for in the contract shall be imple-
mented within 12 months of the date on which the
contract is signed by the two parties. Any extension may
not exceed three months and must be the subject of a
duly reasoned application from the contractor to the
competent body before the expiry date.

3.
Contracts may not be concluded by the two parties
until a security has been lodged equal to 15 % of the
maximum Community financial contribution in order to
guarantee satisfactory performance of the contract. The
security shall be lodged in acordance with Title III of
Regulation (EEC) No 2220/85.

However, if the contractor is a body governed by public
law or acts under the supervision of such a body, a written
guarantee from the supervisory authority covering an
amount equal to the percentage specified in the first
subparagraph may be accepted by the competent body,
provided that
the supervisory authority undertakes to
verify that:

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— the obligations entered into are properly discharged,
— the sums received are used properly to discharge the

obligations entered into.

Proof of lodging of the security must reach the competent
body before the expiry of the time limit laid down in the
first subparagraph of paragraph 2.

The security shall be released within the time limits and
under the conditions laid down in Article 4 of this Regu-
lation for payment of the balance.

4.
The primary requirement within the meaning of
Article 20 of Regulation (EEC) No 2220/85 shall be the
implementation of the measures covered by the contract.

However, in the case of quality beef and veal, two other
primary requirements within the meaining of that Article
shall apply, namely:

(a) the implementation of the measures provided for in
the control record referred to in Article 4(2)(b) of
Regulation (EEC) No 1318/93;

(b) where appropriate, the application of the penalties
provided for in the rules of procedure of the body
referred to in Article 4(2)(e) of the abovementioned
Regulation in the event of non-compliance with the
specifications by its members, and comprising in
particular the withdrawal of eligibility for the promo-
tional measure.

The competent body shall send a copy of

lodging of

the
the security to the

5.
contract and proof of
Commission immediately.

However, if the contractor is a body governed by public
law or acts under the supervision of such a body, a written
guarantee from the supervisory authority covering an
amount equal to the percentage specified in the first
subparagraph may be accepted by the competent body,
provided that the supervisory authority undertakes to pay
the amount covered by the guarantee should entitlement
to the advance paid not be established.

Article 4

1.
Subsequent applications for intermediate payments
shall be submitted before the end of the calendar month
following the expiry of each period of 90 calendar days
calculated from the date of signature of the contract.
These applications shall cover expenditure incurred and
paid during that quarter and shall be accompanied by the
relevant supporting documents and an interim report on
the implementation of the contract. Where no expendi-
ture has been incurred during the three-month period in
question, information to that effect shall be submitted
within the same time limits as for applications for inter-
mediate payments.

Except in cases of force majeure, where an application for
an intermediate payment and the relevant documents are
submitted late, the payment shall be reduced by 3 % for
each whole month by which it is overdue.

in aggregate

The payments and the advance referred to in Article 3(1)
total
may not
is
Community financial contribution. Once that
reached, no more intermediate payment applications shall
be submitted.

exceed 75 % of

level

the

If the contract provides for implementation of measures
in another Member State, the competent body shall notify
the authorities of the latter Member State that the contract
has been signed.

Article 3

1. Within 30 calendar days of
the
contract, the contractor may submit an application for an
advance to the competent body, accompanied by the
security as indicated in paragraph 3. Beyond that date, no
applications for an advance may be made.

the signing of

The advance may cover up to 30 % of the Community
financing.

The competent authority must pay the advance
2.
within 30 calendar days of submission of the payment
application. Where payment is made late, the rules laid
down in Article 4 of Commission Regulation (EC) No
296/96 (1) shall apply.

The advance shall be paid subject to the lodging by
3.
the contractor of a security equal
that
advance in favour of the competent body in accordance
with the conditions laid down in Title III of Regulation
(EEC) No 2220/85.

to 110 % of

(1) OJ L 39, 17. 2. 1996, p. 5.

2.
Applications for payment of the balance (equal to at
least 25 %) shall be submitted within four months of
completion of the measures covered by the contract.

To be considered as duly submitted, applications must be
accompanied by:

(a) all relevant supporting documents relating to expendi-

ture;

(b) a summary of the work carried out (report on opera-

tions);

(c) an internal evaluation report, drawn up by the
contractor, on the results obtained, as ascertainable on
the date of the report, and the use that can be made of
them.

Except in cases of force majeure, where an application for
payment of the balance is submitted late, the balance
shall be reduced by 3 % for each month by which it is
overdue.

The balance shall be paid subject to verification of

3.
the documents referred to in paragraph 2.

The balance paid shall be reduced according to the extent
of non-compliance with the primary requirement referred
to in Article 2(4).

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The security referred to in Article 3(3) shall be
4.
released on condition that definitive entitlement to the
advance paid has been established.

Without prejudice to Council Regulation (EEC) No 595/
91 (1), they shall inform the Commission at the earliest
opportunity of any irregularities detected during checks.

The competent body shall make the payments
5.
referred to in the previous paragraphs within 60 calendar
days of receipt of the application. However, at any time
within 60 days of the date the application for payment is
first recorded as received, that period may be interrupted
by notifying the contractor concerned that the application
is not acceptable because the amount is not due, because
the supporting documents required for all additional
applications have not been supplied or because the
competent body sees the need for further information or
checks. The payment period shall start running again
from the date of receipt of the information requested,
which must be transmitted within 30 calendar days.
Except
in cases of force majeure, where the above
payments are made late, the amount reimbursed to the
Member State shall be reduced in accordance with the
rules laid down in Article 4 of Regulation (EC) No 296/
96.

The security referred to in Article 2(3) must remain
6.
valid until the balance is paid and shall be released by
means of a letter of discharge issued by the competent
body.

7. Within 30 calendar days of receipt, the competent
body shall send the Commission:

— the quarterly reports on implementation of

the

contract,

— the summary of the work carried out, and

— the internal evaluation report.

8.
After the balance has been paid, the competent body
shall send the Commission a financial statement detailing
the expenditure incurred under the contract.

The competent body shall also certify that, in the light of
checks carried out, all the expenditure may be considered
eligible under the terms of the contract.

Securities withheld and penalties imposed shall be
9.
deducted from the expenditure declared to the EAGGF
Guarantee Section.

Article 5

1.
The competent bodies shall take the steps necessary,
in particular by means of technical, administrative and
accounting checks on the contractor, any partners or
subcontractors, to verify:

(a) the accuracy of the information and supporting docu-

ments supplied; and

For

the purposes of paragraph 1, where the
2.
contractor implements measures in a Member State other
than that in which the contracting competent body is
established, the competent body of the Member State
concerned, duly notified at
least 10 working days in
advance, shall afford the latter all necessary assistance in
verification and checking.

3.
The competent body of the Member State concerned
shall determine the most appropriate way of carrying out
checks on measures implemented in third countries and
shall notify the Commission thereof.

4.
The Commission may take part at any time in the
verifications and checks referred to in paragraphs 1, 2 and
3. To that end, the competent bodies of the Member
States shall notify the Commission in good time of verifi-
cations and checks as indicated in paragraphs 2 and 3.

The Commission may also carry out any additional
checks it considers necessary.

Article 6

1. With a view to the drafting of the reasoned opinion
on each programme presented or,
in the case of live
plants and floricultural products, to the drawing up of the
provisional list of measures selected, the competent body
of the Member State concerned shall conduct an ex-ante
analysis of the suitability of the proposed measures in
relation to the general and specific objectives set in the
programme concerned, in accordance with the rules in
force in the sector.

rules,

regard

to Community

2. With due
the
competent body shall ensure as far as possible and by all
appropriate means that independent bodies compete to
undertake an external evaluation. The choice of evaluator
must be approved by the Commission. In the case of live
plants and floricultural products, the evaluation shall be
conducted during the final year of implementation of the
programme.

The external evaluation shall comprise the following:

— monitoring of the planned measures using a signifi-

cant sample,

— an ex-post evaluation of the results obtained in rela-

tion to the objectives originally set,

— a cost/benefit analysis of the main measures of the
programme on the basis of performance indicators
(cost, output and impact).

The evaluation report, to be drawn up within four months
of completion of the measures, shall be forwarded to the
Commission at the earliest opportunity.

(b) the fulfilment of all the obligations laid down in the

contract.

(1) OJ L 67, 14. 3. 1991, p. 11.

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By way of an exception, where the total budget for the
programme to be evaluated is less than EUR 100 000, the
Commission may, on a reasoned request
from the
competent body, waive the requirement for an evaluation
of that programme.

The interest rate to be used shall be that applied by the
European Monetary Institute to its operations in euro on
the date of the undue payment, as published in the ‘C'
series of the Official Journal of the European Communi-
ties, plus three percentage points.

3. Where more than one programme is implemented
in a given Member State, a single body may be given the
task of conducting the external evaluation of all
the
programmes in that Member State. The cost of evaluation
shall be broken down among the various programmes in
proportion to their individual budgets.

The evaluation shall be financed on the same terms

4.
as the measures contained in the programme.

Subject

5.
to the last subparagraph of paragraph 2,
where evaluation is not carried out or is incomplete, the
Commission shall take this into account when consid-
ering subsequent programmes, irrespective of the finan-
cial implications for the evaluating body.

Article 7

The exchange rate applicable shall be governed by
Commission Regulation (EC) No 2799/98 (1).

Article 8

2.
Amounts recovered and the relevant interest shall be
paid to the paying agencies and departments and
deducted by them from the expenditure financed by the
European Agricultural Guidance and Guarantee Fund in
proportion to the Community financial contribution.

Article 9

The following provisions are repealed:

— the final sentence of Article 2(3), Article 2(3a) and (4),
the second sentence of the fourth indent of Article
3(2), the final subparagraph of Article 3(2) and Articles
5 and 6 of Regulation (EEC) No 3461/85,

— Articles 1(2), (3) and (4) and 6 to 9 of Regulation (EC)

No 3582/93,

— Articles 1(3), 7, 8, 8a, 9, 9a and 10 of Regulation (EEC)

No 2282/90,

— Articles 1(3), 7, 8 and 9 of Regulation (EEC) No 3601/

92,

— Articles 2(1), 6, 7, 8(1) and (2) and 9 of Regulation

(EEC) No 1318/93,

— Articles 7 to 11 of Regulation (EC) No 803/98.

1. Where undue payments are made, the beneficiary
shall repay the amounts concerned, plus interest on the
time elapsing between payment and repayment by the
beneficiary.

Article 10

This Regulation shall enter into force on 15 March 1999.

It shall apply to contracts concluded from that date.

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

Done at Brussels, 4 March 1999.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 349, 24. 12. 1998, p. 1.