Commission Regulation (EC) No 2461/1999 of 19 November 1999 laying down detailed rules for the application of Council Regulation (EC) No 1251/1999 as regards the use of land set aside for the production of raw materials
Date: 1999-11-19
Institutions: European Commission
Subjects: agricultural product, crop production, fallow, land use, raw material

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COMMISSION REGULATION (EC) No 2461/1999

of 19 November 1999

laying down detailed rules for the application of Council Regulation (EC) No 1251/1999 as regards
the use of land set aside for the production of raw materials

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1251/1999 of 17
May 1999 establishing a support system for producers of
certain arable crops (1), and in particular Article 9 thereof,

Whereas:

(1)

(2)

(3)

since Regulation (EC) No 1251/1999 has replaced the
support system for producers of certain arable crops
established by Council Regulation (EEC) No 1765/92 (2),
it is necessary to amend, in accordance with the new
the experience gained,
scheme and in the light of
Commission Regulation (EC) No 1586/97 of 29 July
1997 laying down detailed implementing rules for the
use of set-aside land for the provision of materials for
the manufacture within the Community of products not
primarily intended for human or animal consump-
tion (3). On the occasion of those amendments, and for
reasons of clarity, that Regulation should be recast;

without prejudice to receipt of the payment provided for
therein, Article 6(3) of Regulation (EC) No 1251/1999
allows land set aside to be used for the production of
raw materials intended for the manufacture within the
Community of products not intended for direct human
or animal consumption, provided that effective controls
are applied;

those raw materials and their end uses should be
defined; the raw materials and the end products that
may be obtained from such materials should be limited
in order
to safeguard traditional markets without
reducing the scope for identifying new outlets for such
raw materials; a distinction should be made between
those raw materials that can potentially be used for
human or animal consumption and those which cannot;

(1) OJ L 160, 26.6.1999, p. 1.
(2) OJ L 181, 1.7.1992, p. 12.
(3) OJ L 215, 7.8.1997, p. 3.

the cultivation of sugarbeet,
Jerusalem artichokes or
chicory roots on land set aside should not be ruled out;
however, such crops cannot qualify for area payments in
view of the risk of affecting the markets for sugar and
cereals; care should nonetheless be taken to ensure that
such crops comply with the rules governing the use of
land set aside for the production of non-food products;
in order to prevent any speculation and to ensure that
the raw materials are processed into the intended end
products, a security must be lodged even though no
payment is made;

(4)

the role of all principal parties involved in the market
need to be defined clearly; it is essential that an explicit
distinction be drawn between the applicant's obligations,
which end once the total quantity of raw material
harvested is delivered, and the obligations, including the
requirement concerning securities, incumbent on collec-
first processors and any subsequent processors,
tors,
which commence at the time of delivery and are extin-
guished when the raw materials are processed into the
intended non-food end products; the amount of the
security lodged should be high enough to prevent any
risk of the raw materials ending up in use for human or
animal consumption;
reference should be made to
Council Regulation (EEC) No 3508/92 of 27 November
1992 establishing an integrated administration and
control system for certain Community aid schemes (4),
as last amended by Regulation (EC) No 1036/1999 (5),
and to Commission Regulations (EEC) No 2220/85 of
22 July 1985 laying down common detailed rules for
the application of the system of securities for agricul-
tural products (6), as last amended by Regulation (EC) No
1932/1999 (7), and (EEC) No 3887/92 of 23 December
1992 laying down detailed rules for applying the inte-
grated administration and control system for certain
Community aid schemes (8), as last amended by Regula-
tion (EC) No 1678/98 (9), which impose horizontal rules
on the subject; special provisions should be laid down to
cover biennial crops in view of the length of the produc-
tion cycle;

(5)

a method should also be laid down for assessing those
products deemed not for human or animal consumption
and those which are intended for such uses, in order to
determine the ratio between those two types of product,
that ratio being the criterion serving to identify the
primary end use;

(4) OJ L 355, 5.12.1992, p. 1.
(5) OJ L 127, 21.5.1999, p. 4.
(6) OJ L 205, 3.8.1985, p. 5.
(7) OJ L 240, 10.9.1999, p. 11.
(8) OJ L 391, 31.12.1992, p. 36.
(9) OJ L 212, 30.7.1998, p. 23.

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(6)

(7)

(8)

in the interests of verification, the raw materials grown
need to be covered, compulsorily, by contracts between
the agricultural producer (hereinafter referred to as ‘the
applicants’) and the first processor or collector; pursuant
to Article 6(9) of Regulation (EEC) No 3508/92, such
contracts are to be regarded as forming an integral part
of area-aid applications; experience has shown that, for
the purposes of inspection, before any payment is made,
such contracts should be presented by the applicants as
well as by the collectors or first processors, to the rele-
vant competent authorities; different dates of submission
may be laid down depending on the sowing periods; in
specific circumstances, the Member States may allow
certain raw materials to be processed direct by the
producers themselves on their holdings;

it should be made clear that intermediate products or
by-products obtained from the raw materials harvested
may be used under the scheme, in quantities equivalent
to the harvested raw materials. Where such equivalent
quantities come from a Member State other than that in
which the raw material is harvested, the Member States
need to inform each other of the transaction so that
suitable checks may be conducted;

in the interests of verification, applicants should be
required to declare the areas involved, the anticipated
yields and the quantities harvested. The yields shown in
contracts concluded between applicants and collectors
or first processors, as the case may be, must be at least
equal to the yields forecast. In the case of raw materials
that can be bought into intervention otherwise than
under this scheme and of raw materials obtained from
certain rapeseed and sunflower seed, a representative
individual yield or, where appropriate, a representative
local yield should be fixed. The localities on the basis of
which the representative local yields are calculated can,
but need not necessarily, be coextensive with the regions
mentioned in the regionalisation plans provided for in
Regulation (EC) No 1251/1999. Checks of such raw
materials will be more effective if the quantities delivered
correspond to such representative yields. In duly justified
cases, a shortfall may be allowed;

(9)

the whole quantities of raw materials harvested on areas
covered by contracts should be delivered to the first
processors or collectors. To ensure that this condition is
met, applicants should be required to submit a declara-
tion to the relevant competent authorities. Applicants
need to inform the competent authorities should they be
unable to deliver all or part of the quantity of raw

(10)

(11)

(12)

(13)

(14)

(15)

(16)

material stipulated in the contract. Contracts should be
amended or terminated in the event of special circum-
stances falling outside normal agricultural conditions.
The conditions under which an amendment may lead to
a reduction in the land covered by the contract without
to payment should be
affecting the applicant's right
clearly defined;

the scheme would be more in line with commercial
practice if the collectors or first processors, as the case
may be, were allowed to change the end uses envisaged
and shown in contracts, after the applicants have deliv-
ered the raw materials covered by this Regulation,
provided that the scheme is effectively verified;

in order to comply with the Memorandum of Under-
standing on oil seeds between the European Economic
Community and the United States of America within the
the GATT, as approved by Council
framework of
Decision 93/355/EEC (1), a monitoring system should
be introduced to assess the quantities, in soya-bean-meal
equivalent, of by-products
intended for human or
animal consumption and obtained from colza seed,
rapeseed, sunflower seed or soya beans grown on land
set aside for purposes other than production for human
or animal consumption;

a clear time limit should be set for the processing of the
raw materials into eligible end products;

certain transport operations within Community territory
involving raw materials and products derived therefrom
should be subject to controls to guarantee traceability
and to ensure that the provisions of this Regulation have
been applied to them. Such controls should entail the
use of declarations and T5 control copies to be issued in
accordance with Commission Regulation (EEC) No
2454/93 of 2 July 1993 laying down provisions for the
implementation of Council Regulation (EEC) No 2913/
92 establishing the Community Customs Code (2), as
last amended by Regulation (EC) No 1662/1999 (3);

a demonstrable measure of control must be established
for each of
the principal parties involved; whereas
controls are to be stepped up wherever failures to
observe the rules laid down in this Regulation emerge;

simplified rules may be adopted in respect of raw mate-
rials that cannot
in any circumstances be used for
human or animal consumption;

law provisions, without

application of
this scheme should take account of
special conditions obtaining in certain Member States, in
particular as regards controls, public health, the environ-
thereby
ment and criminal
accentuating the differences as to the manner in which
such factors are treated within the Community. To that
end, any proposal to exclude any of the raw materials
listed in Annexes I or II should, prior to its enactment,
be duly justified and notified to the Commission by the
Member State concerned;

(1) OJ L 147, 18.6.1993, p. 25.
(2) OJ L 253, 11.10.1993, p. 1.
(3) OJ L 197, 29.7.1999, p. 25.

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(17)

provision should be made whereby raw materials grown
on set-aside land, and products derived therefrom, do
not generally qualify for any other Community aid
financed under Council Regulation (EC) No 1257/1999
of 17 May 1999 on support for rural development from
the European Agricultural Guidance and Guarantee Fund
(EAGGF) and amending and repealing certain Regula-
tions (1), or Council Regulation (EC) No 1258/1999 of
17 May 1999 on the financing of the common agricul-
tural policy (2);

(18) with a view to determining whether the objectives of the
reform of the common agricultural policy have been
achieved, this scheme should be evaluated on the basis
of information on its actual application in the Member
States;

(19)

the system provided for in Regulation (EC) No 1251/
1999 will apply from the 2000/2001 marketing year;
whereas, so that the producers concerned can carry out
sowing and submit their contracts and applications for
area payments in respect of that marketing year in full
knowledge of, and in compliance with, the rules on the
application of the new arrangements, this Regulation
should enter into force immediately on publication in
the Official Journal of the European Communities;

(20)

the measures laid down in this Regulation are in accord-
ance with the opinion of the Management Committee
for Cereals,

However, the cultivation of such raw materials shall be deemed
compatible with those provisions. Furthermore, by way of
derogation from Article 19(2) of that Regulation, the areas
concerned need not be left fallow from 15 January, provided
that the requirements of this Regulation are satisfied.

No payment shall be made in respect of set-aside land on
2.
which sugarbeet,
Jerusalem artichokes or chicory roots are
grown. However, all the provisions of Chapter II shall apply to
sugarbeet, Jerusalem artichokes and chicory roots grown on
land set aside in the same way as if such a payment were made.

Article 2

For the purposes of this Regulation:

(a) ‘applicant’ means any person applying for an area payment;

(b) ‘collector’ means any person signing a contract as provided
for in Article 4 who purchases on his own account raw
materials listed in Annex I and intended for use in products
listed in Annex III;

(c) ‘first processor’ means any user of raw materials who
undertakes the first processing thereof with a view to
obtaining one or more of the products listed in Annex III.

CHAPTER II

Raw materials which need to be covered by a contract

HAS ADOPTED THIS REGULATION:

S e c t i o n 1

CHAPTER I

Aim and definitions

Article 1

1.
Land set aside under the support system for producers of
certain arable crops, as set out in Regulation (EC) No 1251/
1999, may be used in accordance with Article 6(3) thereof for
the production of the raw materials listed in Annexes I and II
to this Regulation and intended for the purposes set out in
Annex III.

Such land may qualify for payment of area-aid (hereinafter
referred to as ‘the payment’) pursuant to Article 2(2) of Regula-
tion (EC) No 1251/1999, subject to the conditions contained in
this Regulation.

The provisions of Commission Regulation (EC) No 2316/
1999 (3) shall govern land set aside and used to grow the raw
materials listed in Annexes I or II.

(1) OJ L 160, 26.6.1999, p. 80.
(2) OJ L 160, 26.6.1999, p. 103.
(3) OJ L 280, 30.10.1999, p. 43.

Use of raw material — Contract and application for payment

Article 3

1. The raw materials listed in Annex I (hereinafter referred to
as ‘raw materials’) may be grown on land set aside solely on
condition that they are intended primarily for use in the manu-
facture of the end products listed in Annex III. The economic
value of non-food products obtained by processing such raw
materials as determined by the valuation method set out in
Article 13(3) shall be higher than that of all other products
intended for human or animal consumption and obtained by
such processing.

2. Raw materials grown on land set aside shall be covered by
contracts as provided for in Article 4.

3. Applicants shall deliver all raw materials harvested to a
collector or first processor, who shall take delivery of them and
ensure that an equivalent quantity of such raw materials is used
within the Community for the manufacture of one or more
end products listed in Annex III.

Where the collector or first processor uses the raw material
actually harvested to manufacture an intermediate product or a
by-product, he may use an equivalent quantity of such inter-
mediate products or by-products to manufacture one or more
end products as referred to in Annex III.

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Where the collector or first processor avails himself of the
possibility provided for in the first and second subparagraphs,
he shall so inform the competent authority with whom the
security is lodged. Where such equivalent quantity is used in a
Member State other than that in which the raw material
is
the Member States
harvested,
concerned shall inform each other of the details of such trans-
action.

the competent authorities of

the
4. By way of derogation from paragraphs 2 and 3,
Member States may authorise applicants to process into biogas
under CN code 2711 29 00, on their holdings, all raw mate-
rials harvested on certain areas set aside, on condition that:

(a) the applicant undertakes, by way of a declaration in place
of the contract as provided for in Article 4, to process
directly the raw material covered by the declaration;

(b) the Member State concerned introduces suitable controls
is processed into biogas

ensuring that the raw material
under CN code 2711 29 00.

Measures as provided for in the first subparagraph and any
thereto shall be notified to the
subsequent amendments
Commission by 30 November preceding the year of the harvest
to which those measures apply.

Articles 4 to 21 shall apply mutatis mutandis.

4. Where contracts relate to rapeseed, colza seed, sunflower
seed or soya beans covered by CN codes ex 1205 00 90,
1206 00 91, 1206 00 99 or 1201 00 90, the applicants shall
ensure that,
in addition to the information required under
paragraph 2, they specify the anticipated quantity of by-prod-
ucts intended for uses other than human or animal consump-
tion.

5.
For the purposes of control, Member States may require
each applicant to conclude a single supply contract for each
raw material.

Article 5

in their payment applications submitted to the
Each year,
competent authorities, applicants shall
identify the parcel or
parcels on which the raw materials are to be grown. The
following particulars must be provided in respect of each
parcel set aside and each raw material grown thereon:

(a) the species of raw material and varieties thereof;

(b) the anticipated yield per species and variety.

Where the same species or variety is also grown on land not
set aside within the same holding, the species or variety and the
forecast output shall be shown, together with details of the
parcels concerned, their location and identification.

Article 4

S e c t i o n 2

Amendment

and termination of

contract — Applicant's

1.
In support of their applications for payment, applicants
shall submit to their competent authorities the contracts they
have concluded with a collector or first processor.

2. Applicants shall ensure that such contracts specify the
following:

(a) the names and addresses of the parties to the contract;

(b) the duration of the contract;

(c) the species of all raw materials concerned and the area

planted with each species;

(d) the forecast quantities of

raw materials, classified by
species, and any conditions governing their delivery. Such
quantities shall be no less than those calculated on the basis
of
the anticipated yield considered by the competent
authority to be representative for the raw material in ques-
tion. Such anticipated yields shall take account inter alia of
the average yield,

if any, set for the region concerned;

(e) an undertaking to fulfil their obligations pursuant to Article

3(3);

obligations

Article 6

Where the parties to the contract amend or terminate the latter
after the applicant has lodged a payment application, the appli-
cant may maintain such payment application only on condi-
tion that, with a view to allowing the requisite inspections to
be carried out, he informs the relevant competent authority of
such amendment or termination, no later than the closing date
set in the Member State concerned for amendment of the
application.

Article 7

Without prejudice to Article 6, where applicants inform their
competent authorities that, owing to special circumstances,
they will be unable to supply all or part of the raw materials
specified in the contract, the competent authorities may, after
obtaining sufficient evidence of such special circumstances,
authorise such amendments to contracts as appear justified, or
may authorise their termination.

(f) the intended primary end uses for the raw material, each
end use complying with the conditions laid down in
Articles 3(1) and 13(3).

Where the land covered by contracts is reduced as a result of
their amendments, or where contracts are terminated, then, in
order to maintain their right to payments, applicants shall:

3. Applicants shall ensure that the contracts are concluded in
time to allow the collector or first processor to deposit a copy
with his competent authority within the time limits laid down
in Article 13(1).

(a) once more set aside the land in question by any means

permitted by the competent authorities;

(b) abstain from selling, transferring or using raw materials

grown on land struck out of the contracts.

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Article 8

Without prejudice to Article 6, collectors or first processors
may alter the intended primary end uses of raw materials, as
referred to in Article 4(2)(f), once the raw materials under
contract have been delivered to the collector or first processor
and once the conditions laid down in Article 10(1) and in the
first subparagraph of Article 13(4) have been fulfilled.

Changes in end uses shall be made in compliance with the
conditions laid down in Articles 3(1) and 13(3).

The collectors or first processors shall give prior notice to their
competent authorities with a view to the requisite controls.

In the case of raw materials as referred to in Article 9, the
2.
actual quantities to be delivered by the applicants to the collec-
tors or first processors must at least correspond to the repres-
entative individual yield or, as the case may be, the repres-
entative local yield for the parcels concerned established by the
Member States pursuant to that Article.

However, in duly justified cases, the Member States may, by
way of an exception, allow a shortfall of up to 10 % in the
yield.

Furthermore, where they have authorised the amendment or
termination of contracts in accordance with Article 7, the
competent authorities may, where it seems justified to do so,
reduce the quantities that applicants are required to deliver
under the first subparagraph of this paragraph.

S e c t i o n 3

Representative yields and quantities delivered

Article 9

Each year before the harvest, the Member States shall
1.
establish representative yields, which shall be attained in prac-
tice, for raw materials that may be bought into intervention
otherwise than under this scheme and for rapeseed or colza
seed covered by CN code ex 1205 00 90, with the exception
of varieties having a high erucic acid content, and sunflower
seeds covered by CN codes 1206 00 91 or 1206 00 99. Those
representative yields shall be established:

(a) for each individual holding concerned; or

(b) on a local basis.

In the case set out in point 1, Member States shall select
2.
the localities to be used to calculate representative yields, which
may, but need not necessarily, correspond to the regions set
out in their regionalisation plans drawn up in accordance with
Regulation (EC) No 1251/1999. Each year before the harvest,
Member States shall inform the applicants concerned of those
representative yields, doing so by:

(a) 31 July at the latest in the case of raw materials that may
into intervention otherwise than under this
be bought
scheme and rapeseed as referred to in the first subpara-
graph; and

(b) 31 August at the latest in the case of sunflower seeds as

referred to in paragraph 1.

Article 10

1. Applicants shall declare the total quantity of raw materials
harvested by species to their competent authorities and shall
confirm the quantities of raw materials delivered and the
parties to whom such deliveries are made.

Article 11

Where applicants fail to deliver the requisite quantity of any
given raw material pursuant to this Regulation, they shall be
deemed, for the purposes of Article 9(2) of Regulation (EEC)
No 3887/92, to have failed to fulfil their obligations under the
set-aside scheme for non-food purposes in respect of an area
calculated by multiplying the area of land set aside and used by
them for the production of the raw materials in accordance
with the criteria laid down in this Regulation by the percentage
shortfall

in deliveries of that raw material.

S e c t i o n 4

Conditions of payment

Article 12

1.
Payments may be made to applicants in respect of land set
aside in accordance with Regulation (EC) No 1251/1999 before
the raw materials are processed. However, such payments shall
only be made where the requisite quantities of raw materials
pursuant to this Regulation have been delivered to the collector
or first processor and where:

(a) the declaration referred to in Article 10 has been made;

(b) a copy of the contract has been deposited with the collec-
tor's or first processor's competent authority, the condi-
tions referred to in Article 13(2) have been fulfilled, and the
information specified in the first subparagraph of Article
13(4) has been forwarded by either the collector or first
processor;

(c) the competent authority has received proof that the full
security provided for in Article 15(2) has been lodged;

(d) the competent authority responsible for the payment has
checked that the conditions laid down in Article 4 have
been met in respect of each application.

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In the case of biennial crops, where the raw materials are
2.
harvested, and hence delivered, in the course of the second year
of cultivation only, payment shall be made in each of the two
years following the conclusion of the contract as provided for
in Article 4, on condition that the competent authorities estab-
lish that:

(a) the obligations laid down in point (b) of paragraph 1, with
the exception of the communication of the information
referred to in the first subparagraph of Article 13(4), and in
point (d) thereof, are fulfilled as from the first year of
cultivation; and

(b) the obligations laid down in points (a) and (c) of paragraph
1 are fulfilled, and the information referred to in the first
subparagraph of Article 13(4)
in the
second year of cultivation.

is communicated,

However, payments shall only be made in respect of the first
year of cultivation if the competent authorities receive proof
that 50 % of the security as provided for in Article 15(2) has
been lodged.

S e c t i o n 5

Contract and obligations on collector or first processor

Article 13

1. Collectors or first processors shall deposit copies of the
contracts with their competent authorities:

(a) in respect of raw materials to be sown from 1 July to 31
December, by 31 January of the following year; or

(b) in respect of raw materials to be sown from 1 January to
30 June, by the closing date for the submission of payment
applications for the year in question in the Member State
concerned.

Where applicants and collectors or first processors amend or
terminate contracts prior to the date referred to in Article 6 in
a given year, the collectors or first processors shall deposit with
their competent authorities a copy of the amended or termi-
nated contract, no later than that date.

2. The competent authorities referred to in paragraph 1 shall
check that contracts submitted comply with the conditions laid
down in Article 3(1). Where those conditions are not met, the
applicants' competent authorities shall be notified.

3. With a view to monitoring compliance with Article 3(1),
the competent authorities concerned shall, on the basis of the
information referred to in paragraph 2, compare the sum of
the values of all non-food products with the sum of the values
of all other products intended for human or animal consump-
tion and obtained from the same processing operation. Each
figure shall equal
the relevant quantity multiplied by the
average of the ex-factory prices recorded during the previous
the
marketing year. Where such prices are not available,
competent authorities shall determine the relevant prices,
in
particular on the basis of the information referred to in para-
graph 2.

4. Collectors or first processors who have taken over the raw
materials from applicants shall inform their competent authori-
ties of the quantities of raw materials received, specifying the
species, the name and address of the party to the contract who
the place of delivery and the
delivered the raw materials,
contract reference, within a time limit to be set by the Member
States that allows the payments to be made within the period
specified in Article 8 of Regulation (EC) No 1251/1999.

Within 40 working days of the date on which they deliver the
raw materials to the first processors, the collectors shall inform
their competent authorities of the names and addresses of
those first processors. Within 40 working days of receipt by
the first processors,
in turn inform their
the latter shall
competent authorities of the names and addresses of the collec-
tors who delivered the raw materials to them, the quantities
and type thereof and the dates of delivery.

Where delivery of the raw materials to the first processors is
not made by the collectors direct, the latter shall inform their
competent authorities of the names and addresses of the parties
involved in the delivery, together with the names and addresses
of the first processors. That information shall be provided
within 40 working days of receipt of the raw materials by the
first processors.

Within 40 working days of the transaction, all other parties
involved in the delivery shall, in turn, inform their competent
authorities of the names and addresses of the purchasers of raw
materials and the quantities sold to them.

the
Where the competent authorities are not
competent authorities of the first processors and the competent
authorities of all other parties involved in delivering the raw
materials as referred to in the third subparagraph shall inform
the collectors' competent authorities of the quantities supplied
to the first processors.

the same,

With a view to facilitating such checks, collectors or first
processors shall provide their competent authorities with the
requisite information on the processing chain in question, in
particular as regards prices and the technical processing coeffi-
cients to be used for determining the quantities of end products
that may be obtained. The coefficients shall be those set out in
Article 21(1).

Where the Member States of the collectors or first processors
are not the same as the Member States in which the raw
materials have been grown, then, within 40 working days of
receipt of the information referred to in the first and third
subparagraphs,
the competent authorities concerned shall
inform the authorities of the applicants of the total quantities
of raw materials delivered.

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S e c t i o n 6

Soya-flour equivalents for oleaginous by-products

Article 14

1. Without prejudice to Article 13, as soon as possible and
by no later than 31 May of the year in which the raw materials
are to be harvested, the competent authorities referred to in
paragraph 1 of that Article shall inform the Commission of the
total quantity of by-products intended for human or animal
consumption and resulting from the contracts as provided for
in Article 4, covering rapeseed, colza seed, sunflower seeds and
ex 1205 00 90,
under CN codes
soya
1206 00 91, 1206 00 99 and 1201 00 90.

falling

beans

The competent authorities shall calculate the quantity on the
basis of the following ratios:

(a) 100 kg of rapeseed covered by CN code 1205 00 90 shall

be deemed equivalent to 56 kg of by-products;

(b) 100 kg of

sunflower

covered by CN codes
seeds
1206 00 91 or 1206 00 99 shall be deemed equivalent to
56 kg of by-products;

(c) 100 kg of soya beans covered by CN code 1201 00 90
shall be deemed equivalent to 78 kg of by-products.

The anticipated quantity of by-products to be produced, as
referred to in Article 4(4), shall be deducted from the forecast
quantity of all by-products calculated in accordance with the
second subparagraph.

2. On the basis of the information provided pursuant to
paragraph 1, the Commission shall calculate the forecast total
quantity of by-products for human or animal consumption,
expressed in terms of soya-bean-meal equivalent.

S e c t i o n 7

Securities

Article 15

1. The collectors or first processors shall lodge a full security
as provided for in paragraph 2 with their competent authorities
by the closing date for submission of payment applications for
the year in question in the Member State concerned.

2. The securities to be lodged in respect of each raw material
shall be calculated by multiplying the sum of all areas set aside
under this scheme, covered by a contract signed by the
collector or first processor concerned and used to produce that
raw material, by the rate of EUR 250 per hectare.

3. Where contracts are amended or terminated in accordance
with Article 6 or Article 7,
the securities lodged shall be
adjusted accordingly.

4. A percentage of the security corresponding to the quantity
of the raw material processed into the relevant principal non-
food end product shall be released on condition that
the
competent authority of
first processor
the
concerned is in possession of proof that that quantity of raw

collector or

material has been processed in compliance with the require-
ment laid down in Article 4(2)(f), account being taken, where
necessary, of any changes pursuant to Article 8.

5. Without prejudice to paragraph 4:

(a) where the security has been lodged by the collector, it shall
be released once the raw material in question is delivered to
the first processor,

(b) where the security has been lodged by a processor, it shall
be released once the raw material or the intermediate prod-
ucts covered by the contract are delivered to another
processor,

provided that the competent authority of the party selling or
transferring the goods in question has proof that the party
purchasing or taking over the goods has lodged an equivalent
security with his competent authority.

Article 16

1. The competent authorities of the Member States in which
processing takes place shall take the necessary steps to ensure
that processors established in their territory provide all assur-
ances as regards the obligations undertaken.

2. The principal processing of quantities of raw materials into
the end products specified in the contract shall constitute the
primary requirement within the meaning of Article 20 of Regu-
lation (EEC) No 2220/85.

The raw materials shall be processed into one or more of the
endproducts listed in Annex III by 31 July of the second year
following that of harvest by the applicant.

3. The following obligations,
incumbent on collectors or
processors, shall constitute subordinate requirements within
the meaning of Article 20 of Regulation (EEC) No 2220/85:

(a) the obligation to take delivery of all raw materials delivered

by applicants pursuant to Article 3(3);

(b) the obligation to deposit copies of contracts in accordance

with Article 13(1);

(c) the obligation to provide the information required in
accordance with the first, second and third subparagraphs
of Article 13(4);

(d) the obligation to lodge a security in accordance with Article

15(1).

S e c t i o n 8

Documents for sale, transfer, or delivery in another Member State,
or export

Article 17

Where collectors or first processors sell or transfer raw mate-
rials or intermediate products and/or co-products or by-prod-
ucts covered by contracts as provided for in Article 4 to
processors established in other Member States, the products
shall be accompanied by T5 control copies issued in accord-
ance with Regulation (EEC) No 2454/93.

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One of the following shall be entered under the heading ‘Other’
in box 104 of the T5 control copies:

— Producto destinado a su transformación o entrega de
acuerdo con lo establecido en el artículo 4 del Reglamento
(CE) no 2461/1999 de la Comisión

— Skal anvendes til forarbejdning eller levering i overensstem-
melse med artikel 4 i Kommissionens forordning (EF) nr.
2461/1999

— Zur Verarbeitung oder Lieferung gemäß Artikel 4 der
Verordnung (EG) Nr. 2461/1999 der Kommission zu
verwenden

— Πρέπει

να χρησιµοποιηθεί για µεταποίηση ή παράδοση
σύµφωνα µε το άρθρο 4 του κανονισµού (ΕΚ) αριθ. 2461/
1999 της Επιτροπής

— To be used for processing or delivery in accordance with
Article 4 of Commission Regulation (EC) No 2461/1999

— À utiliser pour transformation ou livraison conformément
aux dispositions de l'article 4 du règlement (CE) no 2461/
1999 de la Commission

— Da consegnare o trasformare conformemente all'articolo 4
del regolamento (CE) n. 2461/1999 della Commissione

— Te gebruiken voor verwerking of aflevering overeenkomstig
artikel 4 van Verordening (EG) nr. 2461/1999 van de
Commissie

— A utilizar para transformação ou entrega em conformidade
com o artigo 4.o do Regulamento (CE) n.o 2461/1999 da
Comissão

— Käytetään jalostamiseen tai

toimittamiseen komission

asetuksen (EY) N:o 2461/1999 mukaisesti

— Används till bearbetning eller leverans i enlighet med

kommissionens förordning (EG) nr 2461/1999.

The provisions of the first and second paragraphs shall apply
to all subsequent sales to processors in other Member States up
to the stage of manufacture of the end product shown in the
contract. In the case of co-products or by-products, they shall
apply only where the products would attract export refunds if
they were obtained from raw materials grown otherwise than
under this scheme.

Article 18

1. Where collectors deliver all or part of the raw materials
which they have received, to first processors who are not
established in the same Member State, they shall complete a T5
control copy, entering the following under ‘Other’ in box 104:

(a) the quantities they have delivered direct to the first proces-

sors;

(b) the names and addresses of the first processors;

(c) the names and addresses of the other parties involved in
the delivery circuit, even where those parties are located in
the Member State where first processing has taken place;

(d) the quantities delivered by each other party involved.

2. All parties involved in deliveries as referred to in paragraph
1(c) who are not established in the same Member State as the
first processor shall complete a T5 control copy, entering,
under the heading ‘Other’ in box 104, the names and addresses
of the collector and the information specified in points (a) and
(b) of that paragraph.

Article 19

Where one or more end products, intermediate products, co-
products or by-products covered by contracts as provided for
in Article 4 are intended for export to third countries, a T5
control copy shall be drawn up by the competent authority of
the Member State in which those products are obtained to
cover their transport within the Community.

One of the following remarks shall be entered under ‘Other’ in
box 104 of the T5 control copy:

— Este producto no podrá acogerse a ninguna de las medidas
previstas en el apartado 2 del artículo 1 del Reglamento
(CE) no 1258/1999 del Consejo

— De finansieringsforanstaltninger, der er omhandlet i artikel
1, stk. 2, i Rådets forordning (EF) nr. 1258/1999 kan ikke
anvendes på dette produkt

— Dieses Erzeugnis kommt für keine Finanzierungen gemäß
Artikel 1 Absatz 2 der Verordnung (EG) Nr. 1258/1999 des
Rates in Betracht

— Το προϊόν αυτό δεν µπορεί να επωφεληθεί από τα µέτρα που
προβλέπονται στο άρθρο 1 παράγραφος 2 του κανονισµού (ΕΚ)
αριθ. 1258/1999 του Συµβουλίου

— This product shall not qualify for any benefit pursuant to
Article 1(2) of Council Regulation (EC) No 1258/1999

— Ce produit ne peut pas bénéficier des financements prévus à
l'article 1er paragraphe 2 du règlement (CE) no 1258/1999
du Conseil

— Questo prodotto non può beneficiare delle misure di cui
all'articolo 1, paragrafo 2 del regolamento (CE) n. 1258/
1999 del Consiglio

— Dit product komt niet in aanmerking voor financieringen
lid 2, van Verordening (EG) nr.

als bedoeld in artikel 1,
1258/1999 van de Raad

— O presente produto não pode beneficiar de medidas ao
abrigo do n.o 2 do artigo 1.o do Regulamento (CE) n.o
1258/1999 do Conselho

— Tähän tuotteeseen ei sovelleta neuvoston asetuksen (EY)
N:o 1258/1999 1 artiklan 2 kohdan mukaisia toimenpiteitä

— De åtgärder som avses i artikel 1.2. i rådets förordning (EG)
nr 1258/1999 kan inte användas för denna produkt.

The provisions of the first and second paragraphs shall apply
only where end products listed in Annex III, intermediate prod-
ucts, co-products or by-products covered by contracts as
provided for in Article 4 would attract export refunds if they
were obtained from raw materials grown otherwise than under
this scheme.

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S e c t i o n 9

Controls

Article 20

Member States shall lay down the records which collectors and
processors are to keep.

In the case of collectors, such records shall
following entries:

include the

(a) the quantities of all raw materials purchased and sold for

processing under this scheme;

(b) the names and addresses of subsequent purchasers/proces-

sors;

In the case of processors, such records shall include, at regular
intervals to be determined by the competent authority, the
following entries:

2. The competent authorities shall step up the controls as
referred to in paragraph 1, and shall inform the Commission
immediately, where:

(a) irregularities are revealed by at least 3 % of the controls as

referred to in paragraph 1;

(b) there is a deviation from the previous performances of

processors;

(c) there are processing operations where:

(i) the quantities or values of end products, by-products or
co-products are disproportionate in relation to the coef-
ficients referred to in the second and third subpara-
graphs of paragraph 1; or where

(ii) there is a disparity relative to the criteria for deter-
mining the economic value of products set out
in
Articles 3(1) and 13(3).

CHAPTER III

(a) the quantities of all raw materials purchased for processing;

Raw materials which need not be covered by contracts

(b) the quantities of raw materials processed and the quantities
and types of end products, co-products and by-products
obtained therefrom;

(c) wastage during processing;

(d) the quantities destroyed and the reasons for such destruc-

tion;

(e) the quantities and types of products sold or transferred by

the processor and the prices obtained;

(f) the names and addresses of subsequent purchasers/proces-

sors.

Article 21

comprising physical

1. The competent authorities of collectors and those of the
Member States in which processing takes place shall carry out
controls
checks and inspections of
commercial documents, with a view to verifying, in the case of
collectors, consistency between the purchases of raw materials
and the corresponding deliveries, and, in the case of processors,
between deliveries respectively of raw materials, finished prod-
ucts, co-products and by-products.

For the purpose of such controls, the competent authorities
shall base themselves in particular on the technical processing
coefficients for the raw materials concerned.

Where such coefficients for exports are to be found in
Community legislation, they shall be applied. Where there are
none but other coefficients may be found in Community legis-
lation, they shall be applied. In all other cases, inspection shall
rely mainly on the coefficients generally accepted by the
processing industry.

The controls shall also seek to establish that the correct end use
is made of the raw materials, co-products and by-products, and
that Articles 3(1) and 13(3) are complied with.

Controls shall cover at least 10 % of the transactions and
processing operations that take place in the Member State
concerned and shall be determined by the competent authority
on the basis of a risk analysis and taking account of how
representative the contracts submitted are.

Article 22

The raw materials listed in Annex II (hereinafter referred to as
‘raw materials’) may be grown on land set aside, on condition
that they are intended for use in the manufacture of the end
products listed in Annex III.

They do not need to be covered by a contract.

Article 23

1.
To qualify for payments, applicants wishing to use land
set aside for growing raw materials shall submit a written
undertaking with their payment applications to the competent
authorities in their Member States, to the effect that the raw
materials concerned will only be used or sold for purposes in
accordance with Annex III.

Each year applicants shall inform their competent author-
2.
ities, in their payment applications, of the parcels set aside in
accordance with this Chapter, the crops grown on such parcels,
the duration of the crop cycle and the foreseeable frequency of
harvesting.

CHAPTER IV

General provisions

S e c t i o n 1

Exclusion from the scheme and prohibition of overlapping aid

Article 24

The Member States may exclude any of the raw materials listed
in Annexes I or II from the scheme established by this Regula-
tion where such materials raise difficulties in terms of controls,
public health, the environment or criminal law. In such cases,
the Member State concerned shall notify the Commission of
the raw material(s) which it
intends to exclude and shall
provide grounds therefor.

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Article 25

Raw materials listed in Annex I and grown on land set aside
and intermediate products, end products, co-products and by-
products derived therefrom, raw materials listed in Annex II
and grown on land set aside and products derived therefrom
and land used to produce such raw materials shall not be
eligible for:

(a) any financing by the Guarantee Section of the European
Agricultural Guidance and Guarantee Fund pursuant
to
Article 1(2) of Regulation (EC) No 1258/1999;

(b) Community aid as provided for in Regulation (EC) No
1257/1999, with the exception of support granted in
respect of the costs of planting fast-growing species as
provided for in the second subparagraph of Article 31(3)
thereof.

S e c t i o n 2

Evaluation and additional national measures

Article 26

Within three months of the end of each marketing year, the
Member States shall forward to the Commission all the infor-
mation needed to evaluate the scheme introduced by this Regu-
lation.

Where Chapter II is concerned, such information shall include
the following information:

(a) the areas corresponding to each species of raw material, the
anticipated yields as referred to in Article 4(2)(d) and the
representative yields as referred to in Article 9;

(b) the quantities of each species of raw material not sold by

collectors;

(c) the quantities of each type of end product, by-product and
raw

co-product obtained, with details of
material used.

the type of

Where Chapter III is concerned, the information shall include
the surface area set aside for each species grown.

Article 27

1. The Member States shall appoint the competent authorities
as referred to in this Regulation.

2. The Member States may adopt any additional measures
necessary for the application of this Regulation and shall notify
the Commission thereof.

S e c t i o n 3

Final provisions

Article 28

Regulation (EC) No 1586/97 is hereby repealed with effect
from 1 July 2000.

It shall continue to apply to contracts in respect of the 1999/
2000 and earlier marketing years.

References to the repealed Regulation shall be construed as
references to this Regulation.

Article 29

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply to contracts and payment applications submitted
in respect of 2000/2001 and subsequent marketing years.

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

Done at Brussels, 19 November 1999.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX I

RAW MATERIALS REFERRED TO IN CHAPTER II

Brief description

Other outdoor plants (e.g. Kenaf Hibiscus Cannabinus L. and Cheopodium) with the exception of
Euphorbia lathyris; Sylibum marianum and Isatis tinctoria

CN code

0602 90 59

0701 90 10

Potatoes

ex 0713 10 90

Peas (Pisum arvense L.), other than those for sowing

0713 50 00

Broad beans other than those for sowing

ex 0714 90

Jerusalem artichokes (provided that they do not undergo the process known as hydrolysis as
defined by Commission Regulation (EEC) No 1443/82 (1), either in their natural state or as an
intermediate product such as inuline, or as a by-product such as oligo fructose, or as any
co-products)

0810 30 10

Blackcurrants

ex 0810 90 85

Fruits of the species Aronia Arbutifolia, sea buckthorn and elder

0904 20

Fruits of the genus Capsicum or of the genus Pimenta, dried or crushed or ground

0909

Seeds of anise, badian, fennel, coriander, cumin or caraway;

juniper berries

0910 50 00

Curry

0910 99 10

Fenugreek seed

ex 0910 99 91

Spices, other than mixtures

ex 0910 99 99

Spices, other than mixtures

1001 90 99

Spelt, common wheat and meslin other than for sowing

ex 1002 00 00

Rye other than seed

1003 00 90

Barley other than seed

1004 00 00

Oats other than seed

1005 90 00

Maize (corn) other than seed

1007 00 90

Grain sorghum, other than hybrids for sowing

ex 1008 10 00

Buckwheat other than seed

ex 1008 20 00

Millet other than seed

ex 1008 90 10

Triticale other than seed

ex 1008 90 90

Other cereals other than seed

1201 00 90

Soya beans other than for sowing

1202 20 00

Shelled ground nuts

ex 1204 00 90

Linseed other than for sowing but destined for uses other than textiles

ex 1205 00 90

Rape or colza seeds other than for sowing (only those types referred to in Articles 4(1) and 4(2)(a),
(b) and (e) of Commission Regulation (EC) No 2316/1999 (2)

1206 00 91
1206 00 99

Sunflower seeds other than for sowing

1207 30 90

Castor oil seeds other than for sowing

1207 40 90

Sesamum seeds other than for sowing

1207 50 90

Mustard seeds other than for sowing

1207 60 90

Safflower seeds other than for sowing

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CN code

Brief description

ex 1207 99 91

Hemp seeds other than for sowing and mentioned in Annex B to Commission Regulation (EEC) No
1164/89 (3), destined for uses other than textiles

1207 99 99

Other oil seeds and oleaginous fruits other than for sowing

ex 1209 29

Bitter lupin

ex 1211

Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in
pharmacy or for insecticidal, fungicidal or similar purposes, other than lavender, lavandin and sage

1212 91

1212 99 10

1214

Chapter 14

Sugar beet (provided that sugar, as defined by Commission Regulation (EEC) No 1443/82, is not
produced from it, either as an intermediate product, co-product or by-product)

Chicory roots (provided that they do not undergo the process known as hydrolysis as defined by
Commission Regulation (EEC) No 1443/82, either in their natural state or as an intermediate
product such as inuline, or as a by-product such as oligofructose, or as any co-products)

Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupins, vetches
and similar forage products

Vegetable plaiting, stuffing or padding materials, or those used in brooms or brushes; vegetable
products not elsewhere specified or included (e.g. broomcorn (Sorghum vulgare var. technicum))

(1) OJ L 158, 9.6.1982, p. 17.
(2) OJ L 280, 30.10.1999, p. 43.
(3) OJ L 121, 25.4.1989, p. 4.

ANNEX II

RAW MATERIALS REFERRED TO IN CHAPTER III

CN code

Brief description of products

ex 0602 90 41

Short rotation forest trees with a harvest cycle of 10 years or less

ex 0602 90 49

ex 0602 90 51

Trees, shrubs and bushes, producing plant material covered by CN code 1211 and by Chapter 14
of the Combined Nomenclature, excluding all those which can be used for human or animal
consumption

Outdoor multiannual plants (e.g. Miscanthus sinensis) other than those wich can be used for human
or animal consumption, in particular those producing plant material covered by CN code 1211,
other than lavender,

lavandin and sage, and by Chapter 14 of the Combined Nomenclature

ex 0602 90 59

Euphorbia lathyris, Sylibum marianum and Isatis tinctoria

1211 90 95

Digitalis lanata, Secale cornutum and Hypericum perforatum, excluding plant material which can be
used for human or animal consumption

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ANNEX III

End-products that may be manufactured from raw materials listed in Annexes I and II:

— all products falling within Chapters 25 to 99 of the Combined Nomenclature,

— all products falling within Chapter 15 of the Combined Nomenclature and intended for uses other than human or

animal consumption,

— products covered by CN code 2207 20 00 and intended for direct use in motor fuel or for processing for use in motor

fuel,

— packaging material covered by CN codes ex 1904 10 and ex 1905 90 90, on condition that proof has been obtained
that the products have been used for non-food purposes in accordance with Article 15(4) of this Regulation,

— mushroom spawn covered by CN code 0602 91 10,

— lac, natural gums, resins, gum-resins and balsams covered by CN code 1301,

— saps and extracts of opium covered by CN code 1302 11 00,

— saps and extracts of pyrethrum or of the roots of plants containing rotenone covered by CN code 1302 14 00,

— other mucilages and thickeners covered by CN code 1302 39 00,

— all agricultural products listed in Annex I and products derived therefrom by an intermediate process and used as fuel

for energy production,

— all products listed in Annex II and products derived therefrom and intended for energy purposes,

— all products referred to in Commission Regulation (EEC) No 1722/93 (1), as last amended by Regulation (EC) No
87/1999 (2), on condition that they are not obtained from cereals or potatoes cultivated on land set aside and that
they do not contain products derived from cereals or potatoes cultivated on land set aside,

— all products referred to in Council Regulation (EEC) No 1010/86 (3), as last amended by Commission Regulation (EC)
No 1148/98 (4), on condition that they are not obtained from sugarbeet cultivated on land set aside, and that they do
not contain products derived from sugarbeet cultivated on land set aside.

(1) OJ L 159, 1.7.1993, p. 112.
(2) OJ L 9, 5.1.1999, p. 8.
(3) OJ L 94, 9.4.1986, p. 9.
(4) OJ L 159, 3.6.1998, p. 38.