Commission Regulation (EC) No 528/1999 of 10 March 1999 laying down measures to improve the quality of olive oil production
Date: 1999-03-10
Institutions: European Commission
Subjects: olive oil, olive-growing, product quality, production improvement

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Official Journal of the European Communities

11. 3. 1999

COMMISSION REGULATION (EC) No 528/1999

of 10 March 1999

laying down measures to improve the quality of olive oil production

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 5(11) thereof,

Whereas pursuant to Article 5 of Regulation No 136/
66/EEC 1,4 % of the production aid to olive growers is
assigned to finance regional measures in the Member
States to improve the quality of olive oil production and
its environmental impact; whereas these measures should
be specified and also the tasks that can be entrusted to
producer organisations;

Whereas, by virtue of the origin of their funding, the
measures to be undertaken should directly involve olive
growers or oil mills; whereas the purpose of these meas-
ures is to produce quality virgin olive oil under conditions
that preserve or improve the environment; whereas, as a
result, these measures must help to supply the mills with
olives with prized characteristics and improve the condi-
tions under which the virgin oils are extracted and stored;

Whereas the way in which the sector operates dictates
that quality improvement measures should be imple-
mented over 12-month periods beginning on 1 May of
each year; whereas the measures for each period must be
included in national programmes; whereas Member States
must draw up and execute their national programmes;

Whereas the expenditure in each period must be based
on the deduction from the production aid for
the
marketing year preceding that in which the programme
begins; whereas production is estimated by the Commis-
sion in accordance with Article 17a(1) of Council Regula-
tion (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);

(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 expenditure on the execution of programmes
must be managed and checked nationally in accordance
with Community rules;

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:

Article 1

This Regulation specifies the measures to be under-
1.
taken and procedures to be followed to improve the
quality of olive oil production at regional level and its
impact on the environment.

The measures relate to 12-month production cycles

2.
beginning on 1 May each year and involve:

(a) action against the olive fly and possibly other harmful
organisms, including control, warning and evaluation
arrangements;

(b) improvement of the conditions under which olive
trees are grown and treated, olives are harvested, stored
and processed and the resulting oils are stored;

(c) technical assistance to growers and mills to help
improve the environment, the quality of the olives
produced and their conversion into oil;

(d) improvement of the disposal of crushing residues so

that the environment is not harmed;

(e) training,

information provision and demonstrations
for farmers and mills on oil quality and the environ-
mental impact of the oil production chain;

(f) creation and operation, at

regional, provincial or
producer-organisation level, of laboratories for virgin
oil analysis;

(g) collaboration with specialist agencies on research
programmes to improve the quality of virgin olive oil
and at the same time help improve the environment.

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Action under points (a) and (b) of paragraph 2 shall
3.
place special emphasis on integrated biological control
methods.

Insecticides against olive fly must be used in conjunction
with protein baits. However in special circumstances the
use of insecticides without protein baits may be author-
ised under the direction of the agency responsible for
prescribing treatments. Insecticides and their mode of
application must be such that no residue in olives from
the zones in question or in the oil produced from them
exceeds the maximum doses authorised by Community
legislation.

Article 2

1. Member States shall establish by 31 March of each
year an action programme for the next production cycle.

The programme shall include:

(a) a detailed description of the measures envisaged, with

duration and cost;

(b) a list of the products and materials needed, with unit

costs;

(c) a list of the centres, agencies or producer organisations

responsible for execution of the measures.

Contracts and agreements with centres, agencies or
producer organisations charged with execution of
the
measures, and administrative provisions made by the
Member State in regard to these bodies,
shall be
concluded or adopted so as to take effect at the beginning
of
the production cycle concerned. Such contracts or
agreements may be multiannual in duration subject to
adjustments stemming from the successive programmes.
They shall be drawn up using standard contract terms
made available by the Commission.

The programme shall be approved by and executed on
the responsibility of the Member State.

2.
Before 1 May each year producer Member States
shall notify to the Commission the measures planned for
the next production cycle, listed by category as indicated
in Article 1(2), and their estimated expenditure on them.

Article 3

The Commission shall determine under the pro-
2.
cedure laid down in Article 38 of Regulation No 136/
66/EEC, for each production cycle referred to in Article
1(2) and each producer Member State, the financing ceil-
ings for measures eligible for reimbursement by the
EAGGF Guarantee Section.

The ceilings shall be determined on the basis of the
production aid deduction, estimated in accordance with
Article 17a(1) of Regulation (EEC) No 2261/84, for the
marketing year finishing in the year preceding that in
which the production cycle begins.

If the resources referred to in paragraph 1 do not
3.
suffice to cover expenditure on some of the measures
included in the programme for a production cycle, the
Member State may make an additional financial contribu-
tion equal at most to 50 % of the Community financing
for each of the measures in question. This contribution
must not be funded through a deduction from the
production aid.

Article 4

Expenditure under the programme adopted by the
1.
Member State shall be eligible under this Regulation only
if the measures in question are not covered by any other
Community financing.

Only a maximum of 75 % shall be eligible in the case of
expenditure on:

— execution of the treatments required for the purposes

of action as referred to in Article 1(2)(a),

— remuneration of

the personnel of

the laboratories

referred to in Article 1(2)(f).

The general costs of contractors, including those of
total

2.
any subcontractors, shall be limited to 2 % of
eligible expenditure.

Article 5

1.

Payments in connection with:

— contracts and agreements concluded or adopted by a
Member State with centres, agencies or producer orga-
nisations responsible for the execution of measures,

— administrative provisions of

the Member State in
connection with such centres, agencies or organisa-
tions,

Expenditure on the measures specified in this Regu-
1.
lation shall be financed from the production aid deduc-
tion made pursuant to Article 5 of Regulation No 136/
66/EEC.

shall be made on presentation of supporting documents
for the expenditure and following verification by the
competent authorities of these documents and of fulfil-
ment of the specified obligations.

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The competent body shall make the payments referred to
above within 60 calendar days of receipt of the applica-
tion. However, this deadline may be suspended at any
time in the 60-day period after the payment application is
first registered, by informing the creditor contractor that
his application is not admissible, either because the sum
is not payable, because the application is not supported
by the requisite evidence for all the additional applica-
tions, or if the competent body deems it necessary to have
further information or to make checks. The deadline shall
start to run again from the date the requested information
— which must be sent within 30 calendar days — is
received. Except in cases of force majeure, any delay in
making the above payments shall give rise to a reduction
in the refund to the Member State, in accordance with the
rules laid down in Article 4 of Commission Regulation
(EC) No 296/96 (1).

2.
Contracts or agreements cannot be concluded until
a security equal to 15 % of the maximum amount of
Community funding has been lodged, in order to guar-
antee their proper performance. The security shall be
lodged in accordance with Title III of Commission Regu-
lation (EEC) No 2220/85 (2).

However, if the contractor is a public body or a quasi-
public body, a written guarantee from its supervisory
authority covering an amount equal to the percentage
referred to in the preceding subparagraph may be
accepted by the competent body, provided that the super-
visory authority undertakes to verify that:

— the obligations entered into have been properly

discharged, and

— the sums received were correctly used to discharge the

obligations entered into.

lodgement of

Proof of
reach the
competent body before the time limit referred to in the
second subparagraph of paragraph 1 expires.

the security must

3.
The primary requirement within the meaning of
Article 20 of Regulation (EEC) No 2220/85 shall be the
implementation of the measures in the contract.

4.
In the case of multiannual contracts or agreements,
the security shall be calculated on the basis of the value of
each of their annual parts.

contract or agreement, or during the annual period
applicable.

6.
All centres, agencies and producer organisations
charged with the execution of measures shall submit to
the Member State within two months of the final date set
for execution a detailed report on the use of
the
Community funds assigned and the outcome of the meas-
ures in question. If the report is presented after the two-
month time limit 3 % of the Community contribution
for the measures in question shall be retained for each
month or part thereof by which the report is late.

Article 6

the
1. Within 30 calendar days of
contract, the contractor may submit an application for an
advance to the competent body, accompanied by the
security referred to in paragraph 3 below. No applications
for an advance can be made after the 30-day limit.

the signing of

Advances may cover at most 30 % of the amount of
Community funding.

The competent body must pay the advance within
2.
30 calendar days of the submission of the application for
an advance. Article 4 of Regulation (EC) No 296/96 shall
apply where payment is made late.

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

to 110 % of

However, if the contractor is a public body or a quasi-
public body, a written guarantee from its supervisory
authority covering an amount equal to the percentage
referred to in the preceding subparagraph may be
accepted by the competent body, provided that the super-
visory authority undertakes to pay the amount covered by
the security should entitlement to the amount advanced
not be established.

4.

Release of securities shall be conditional on:

— transmission to the Member State of the supporting

documents for the expenditure effected,

— verification of the documents and establishment that

the specified obligations have been met.

5.
Release of the security shall be conditional on veri-
fication by the Member State of execution within the
indicated time limits of the measures specified in the

(1) OJ L 39, 17. 2. 1996, p. 5.
(2) OJ L 205, 3. 8. 1985, p. 5.

Article 7

If a security as referred to in Articles 5 or 6 is forfeited or
a deduction made as referred to in Article 5(6),
the
amount
in question shall be deducted from EAGGF
Guarantee Section expenditure.

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Article 8

1. Member States shall apply a checking system to
ensure that measures included in programmes for which
financing is granted are correctly executed. This shall
involve:

— administrative and accounting checks on the costs

borne,

— checks, in particular on the spot, on verification of
conformity of execution of the measures with the
provisions of the contract or agreement or the admin-
istrative provisions.

The Commission may request Member States to make
any change in the checking system it deems necessary.

3.
A short report on execution of the programme and
the checks made shall be transmitted by Member States to
the Commission by 1 October following each production
cycle.

It shall summarise the measures planned and carried out,
by category as referred to in Article 2(2), and for each
measure state the costs allocated and checks made and
assess the results achieved, the environmental impact and
the difficulties encountered.

Article 9

2. Member States shall inform the Commission of their
planned checking system when they transmit the in-
formation referred to in Article 2(2).

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

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

Done at Brussels, 10 March 1999.

For the Commission

Franz FISCHLER

Member of the Commission