Proposal for a Council Regulation introducing specific measures for certain agricultural products for the Canary Islands
Date: 2000-11-29
Institutions: European Commission
Subjects: Canary Islands, French overseas department and region, Structural Funds, aid to agriculture, regions of Portugal

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Proposal for a Council Regulation introducing specific measures for certain agricultural products
for the Canary Islands

(2001/C 96 E/27)

COM(2000) 791 final (cid:151) 2000/0316(CNS)

(Submitted by the Commission on 1 December 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36, 37 and 299(2)
thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

(3) The particular geographical situation of the Canary Islands
imposes additional transport costs in supplying essential
products for human consumption, for processing and as
agricultural inputs. In addition, objective factors arising as
a result of
insularity impose further constraints on
economic operators and producers in the Canary Islands
that severely handicap their activities. These handicaps
can be alleviated by lowering the price of these essential
products. It is therefore appropriate to introduce specific
supply arrangements to guarantee supply to these islands
and compensate for the additional costs arising from their
insularity and remoteness.

Whereas:

(4) To that end, notwithstanding Article 23 of the Treaty,
imports of the products concerned from third countries
should be exempt from the applicable import duties.

the Community’s

territory and all

(1) Under Council Regulation (EEC) No 1911/91 of 26 June
1991 on the application of the provisions of Community
law to the Canary Islands (1), the Canary Islands are part
the
customs
of
common policies apply there without prejudice to any
their
special measures adopted to take account of
economic
specific
and
traditional
and
that Regulation
taxation system. Articles 2 and 10 of
rule that
the common agricultural
full application of
to the entry into force of specific
policy is subject
supply arrangements.
the
In addition, application of
common agricultural policy is to be accompanied by
specific measures relating to agricultural production in
the islands.

constraints

(2) By Decision 91/314/EEC of 26 June 1991 the Council
adopted a programme of options specific to the remote
and insular nature of the Canary Islands (Poseican) (2) in
accordance with the Community’s policy of assistance for
the most remote regions. The purpose of the programme
is to facilitate the economic and social development of the
region and enable it to benefit from the advantages of the
single market of which it is an integral part despite the
objective factors
leaving it geographically and econ-
omically isolated. The programme calls for the CAP to
be applied in the region and provides
special
measures to be adopted,
in particular to improve the
conditions in which agricultural products are produced
and marketed there and to mitigate the effects of
its
situation and constraints as
exceptional geographical
since recognised in Article 299(2) of the Treaty.

for

(1) OJ L 171, 29.6.1991, p. 1.
(2) OJ L 171, 29.6.1991, p. 5.

(5) In order to achieve the goal of

traditional

lowering prices in the
Canary Islands and mitigating the additional costs of
their remoteness and insularity while maintaining the
competitiveness of Community products and preventing
disruption of
trade flows, aid should be
granted for the supply to these islands of products of
Community origin. Such aid must take account of the
additional cost of transport to the Canary Islands and
the prices applied to exports to third countries and, in
the case of agricultural inputs and products intended for
processing, the additional costs of insularity.

(6) Since the quantities covered by the specific supply
arrangements are limited to the supply requirements of
the Canary Islands, those arrangements do not impair the
proper functioning of the internal market. In addition, the
economic advantages of the specific supply arrangements
must not provoke deflections of trade in the products
those
concerned. Re-exportation or
products from the Canary Islands should therefore be
prohibited unless authorised by the Commission. In the
case of processing, this prohibition should not apply to
traditional exports and consignments.

re-dispatching of

(7) The

the

specific

economic

advantages of

supply
to reduce
arrangements must be passed on so as
production costs and bring down prices throughout the
production and distribution chain to the end user, culmi-
nating in lower consumer prices. They should therefore
be granted only on condition that they actually are passed
on, and monitoring must be carried out to that end.

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(8) Traditional

of

should

animals,

breeding

livestock

activities

purchase

pure-bred

and by supplementing the

be
farming
supported in order
local consumption
to help meet
needs. To that end, derogations are needed from some
of the provisions of the common market organisations
which restrict production, to take account of the devel-
opment and particular conditions of
local production,
which are quite different from those in the rest of the
Community. This objective may also be pursued indirectly
by financing genetic improvement programmes involving
by
the
purchasing commercial breeds more suited to local
conditions
cow
premium and the slaughter premium, and, pending the
development of
temporary
the supply of male
provision should be made for
animals for fattening, the number of such animals to be
supplied each year being limited so as not to compromise
the abovementioned objective. The estimate of
local
consumption requirements is drawn up in a periodic
balance. To ensure that Community support can be
mobilised effectively, an annual financial allocation must
enable the sectors concerned to define and implement
strategies tailored to the local context for economic devel-
opment, spatial organisation of production and increasing
the professionalism of producers.

livestock farming,

suckler

local

(9) In the interests of uniformity and in order to align the
arrangements under Poseima and Poseican in the beef and
veal sector with those in force for the French overseas
departments,
to Regulation (EEC) No
1254/1999 on the common organisation of the market
in beef and veal should be amended.

annexes

the

(10) The sheep and goat sector receives support through a
supplementary premium granted to producers in the
Canary Islands for heavy lambs. This measure has made
it possible to develop local production, which is of social,
economic and environmental
importance because this
activity is concentrated in the most disadvantaged areas
of
the islands where no other alternatives exist. This
measure should be continued.

(12) Aid for human consumption of fresh cow’s milk products
is paid to dairies so that
the milk produced can be
disposed of in the normal fashion on the local market.
Extending the aid to cover other products has enabled the
sector to adapt to changing consumption habits. The level
of self-sufficiency is still very low, and so the measure
should be continued.

(13) The area aid scheme for fruit and edible vegetables, roots
and tubers, flowers and live plants has proved unsuitable,
especially because of
the slowness and complexity of
procedures and the way the proposed aid was structured.
Lessons should be learned from the encouraging results of
the Poseidom reform in that sector, and marketing and
processing aid should be envisaged with a view to
supplying the market
in the Canary Islands. Such aid
must help local produce compete with products from
elsewhere on high-growth markets, better
satisfy the
new distribution
requirements
channels,
and
farms
upgrade the quality of products. The marketing of these
products, both fresh and processed, should be continued
and they should be promoted on the Community market.
An economic study will help to refine the structure of the
sector.

the productivity of

of
improve

consumers

and

(14) Potato production is essential in the Canary Islands, for
both economic and social and environmental reasons. The
cultivated areas are situated in areas of average altitude
terrain and small size of holdings
where the difficult
(terrace cultivation),
together with the high prices of
inputs, make for very high production costs. Specific
aid
for human
consumption in order to support domestic production
to satisfy the islands’ consumption patterns. Abolition of
restricting the deliveries of
the
sensitive
potatoes
local production has left
periods for the marketing of
the sector very vulnerable.
is therefore planned to
It
grant aid for local marketing of this potato production.

for human consumption during

temporary measure

growing potatoes

granted

for

is

(11)

In order to support milk production in the sheep and
goat sector, to structure that sector, alleviate difficulties
in the processing and marketing of
local farm cheeses
made from ewe’s and goat’s milk, rectify the fragmen-
tation of supply, improve the quality of milk and assist
diversification, a programme is hereby introduced for
producers and producer organisations.

(15)

It is economically and environmentally imperative that
vineyards,
the most widespread crop, continue to be
cultivated, because winegrowing is practised in dry areas
and on land that is particularly vulnerable to erosion. In
order to help support domestic production, a flat-rate
area aid is granted for
for
producing quality wines produced in specified regions.
Likewise, compulsory and voluntary distillation and aban-
donment premiums do not apply here.

the cultivation of vines

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(16) Tobacco growing is of historical

importance on the
islands. Economically
tobacco preparation
speaking,
continues to be one of the chief industrial activities in
the region.
In social terms, tobacco cultivation is very
labour intensive and carried out by small farms. Since
the crop is not sufficiently profitable it is in danger of
dying out. Tobacco is currently cultivated only on a small
area on the island of La Palma, where it is used for the
artisanal manufacture of cigars. Spain should therefore be
authorised to continue to grant aid in addition to the
Community aid so that this traditional crop can be main-
tained with a view to supporting the artisanal activity
In addition, to maintain the manu-
associated with it.
facture of
imports into the Canary
Islands of raw and semi-manufactured tobacco should
continue to be exempt
from customs duty, up to an
annual
limit of 20 000 tonnes of stripped raw tobacco
equivalent.

tobacco products,

(17) Traditional honey production in the Canary Islands is
produced by a local breed of bees well suited to local
conditions but not very productive. This breed is in
to be replaced by breeds which
danger of dying out,
will be more profitable to beekeepers. The aid being
paid to associations of beekeepers producing traditional
honey of specific quality should therefore be continued,
and the number of hives of local bees eligible for the aid
should be adapted.

(18) Agricultural producers in the Canary Islands should be
the
products
quality
encouraged
marketing of
assisted. Using the
should be
Community’s graphic symbol might help achieve this.
Promotion of the symbol should therefore be funded.

supply

these

and

to

(19) The structures of certain farms and processing and
marketing firms in these islands are seriously defective
and face specific difficulties.
should therefore be
possible to derogate for some types of investment from
the
restricting the grant of
the provisions
structural aid provided for in Council Regulation (EC)
No 1257/1999.

some of

It

(20) A derogation may be granted from the Commission’s
consistent policy of not authorising State operating aid
for the production, processing and marketing of agri-
cultural products covered by Annex I to the Treaty in
order to mitigate the specific constraints on farming in
the Canary Islands as a result of their remoteness, insu-
larity, small area, mountainous terrain and climate and
their economic dependency on a small number of
products,

HAS ADOPTED THIS REGULATION:

TITLE I

SPECIFIC SUPPLY ARRANGEMENTS

Article 2

1.
Specific supply arrangements are hereby introduced for
the agricultural products listed in Annex I to this Regulation,
which are essential for human consumption, for processing and
as agricultural inputs in the Canary Islands.

2.
A forecast supply balance shall be drawn up stating the
quantity of the agricultural products listed in Annex I needed
to meet supply requirements each year. A separate forecast
balance may be drawn up for
the
industries processing and packaging products intended for
the local market and for traditional export or consignment to
the rest of the Community.

the requirements of

Article 3

No duties shall apply to direct imports into the Canary
1.
Islands
supply
arrangements if they originate in third countries, within the
limit of the quantities determined in the supply balance.

products

covered

specific

the

by

of

Products which have
customs
territory under inward processing or customs warehousing
arrangements shall be considered as direct
imports for the
purposes of this Title.

entered the Community’s

2.
To ensure coverage of the requirements established in
accordance with Article 2 in terms of quantity, price and
quality, while taking care to maintain the Community’s share
in supplies, aid shall be granted to supply the Canary Islands
with Community products held in public intervention storage
or available on the Community market.

Such aid shall be fixed to take account of the additional cost of
to the Canary Islands and the prices applied to
transport
in the case of agricultural
exports to third countries and,
inputs and products intended for processing, the additional
costs of insularity.

In implementing the scheme introduced by this Article,

3.
account shall be taken, in particular, of the following:

(cid:151) the specific requirements of the Canary Islands and, in the
case of products intended for processing and agricultural
inputs, the specific quality requirements,

Article 1

(cid:151) traditional trade flows with the rest of the Community,

This Regulation lays down specific measures to remedy the
difficulties caused by the remote and insular nature of the
Canary Islands in respect of certain agricultural products.

(cid:151) the economic aspect of the proposed aid.

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Entitlement under the supply arrangements provided for
4.
in this Title shall be subject to the condition that the economic
advantage derived either from exemption from import duties
or from aid in the case of supply from the rest of
the
Community is actually passed on to the end user.

re-dispatched to the rest of

5.
Products covered by the specific supply arrangements
introduced by this Title may not be re-exported to third
the Community
countries or
without authorisation from the Commission. The Commission
shall determine the conditions for such authorisation, which
shall include, in particular, reimbursement of the aid received
under
the products
referred to in Article 3(2) or payment of the import duty on
the products referred to in Article 3(1).

the specific supply arrangements

for

Where the products concerned are processed in the Canary
Islands, the aforesaid prohibition shall not apply to traditional
exports or shipments of the processed products to the rest of
the Community. In the case of traditional exports, no refund
shall be granted.

the
suited to local conditions. The aid shall be paid for
delivery of goods which fulfil the requirements specified in
Community rules.

The following shall be taken into account when aid is

3.
being fixed:

(cid:151) the conditions and in particular the costs of supply to the
Canary Islands resulting from their geographical situation,

(cid:151) the price of products on the Community market and on the

world market,

(cid:151) whether or not duties are charged on imports from third

countries,

(cid:151) the economic aspect of the proposed aid.

Article 3(4) and (5) shall apply to goods qualifying for aid

4.
under paragraph 1.

6.
Detailed rules for applying this Title shall be adopted in
accordance with the procedure referred to in Article 22(2).
These shall include:

5.
The list of products, the level of the aid referred to in
paragraph 1 and the detailed rules for applying this Article
shall be adopted in accordance with the procedure referred
to in Article 22(2).

(cid:151) the fixing of aid for

supply from the rest of

the

Community,

Article 5

(cid:151) provisions

to ensure that

the advantages granted are

actually passed on to the end user,

(cid:151) introduction if necessary of a system of import or delivery

licences.

1.
Until the local numbers of young male bovines reach a
level sufficient to maintain traditional beef production, and
within the limit referred to in Article 6:

(a) the customs duties referred to in Article 30 of Regulation
(EC) No 1254/1999 shall not be applied to imports of
bovine animals from third countries for on-site fattening
and consumption in the islands;

The Commission shall draw up supply balances in accordance
with the procedure referred to in the first subparagraph. It may
revise those balances, and the list of products in Annex I, in
accordance with the same procedure, in the light of changes in
the Canary Islands’ requirements.

(b) aid shall be granted for the supply of animals as referred to
in (a) originating in the Community, up to a limit of 4 000
head. Priority shall be given to producers holding animals
for fattening at least 50 % of which are of local origin.

TITLE II

Article 3(4) and (5) shall apply to goods qualifying for aid
under paragraph 1.

MEASURES TO ASSIST LOCAL PRODUCTS

CHAPTER I

LIVESTOCK AND MILK PRODUCTS

Article 4

1.
In the livestock sector, aid shall be granted for the supply
to the Canary Islands of the pure-bred animals, animals of
commercial breeds and livestock products, originating in the
Community.

2.
The numbers of animals qualifying for the measures
referred to in paragraph 1 shall be determined in a periodic
forecast supply balance, taking account of the development of
local production. These numbers,
the aid
referred to in paragraph 1(b) and detailed rules for applying
this Article, including in particular the minimum duration of
the fattening period, shall be fixed in accordance with the
procedure referred to in Article 22(2).

the amount of

Article 6

2.
account,
Canary Islands
improvement of

The terms for granting aid shall be laid down taking
the
the supply requirements of
in particular, of
for
starting up production and genetic
livestock and the need for the breeds best

1.
The aid provided for in paragraph 2 and 3 below shall be
granted to assist traditional activities connected with beef and
veal production and measures to improve product quality,
within the limits of the consumption needs of the islands as
assessed in the context of a periodic supply balance.

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The balance shall also take account of breeding animals
supplied under Article 4 and animals
covered by the
measures provided for in Article 5.

A supplement to the slaughter premium of EUR 25 per
2.
head shall be paid to producers for each animal slaughtered
under Article 11 of Regulation (EC) No 1254/1999.

A supplement to the premium for maintaining suckler
3.
cows provided for
in Article 6 of Regulation (EC) No
1254/1999 shall be paid to beef and veal producers. The
amount of this supplement shall be EUR 50 per suckler cow
held by the producer on the day on which the application is
submitted.

4.

The provisions relating to:

(a) the regional ceiling laid down by Article 4 of Regulation
(EC) No 1254/1999 as regards the basic special premium;

(b) the individual ceiling for animals kept on the holding as
laid down in Article 6 of the aforementioned Regulation, as
regards the basic suckler cow premium;

(c) the national ceiling laid down under Article 11 of the above

Regulation as regards the basic slaughter premium;

(d) the stocking density for animals kept on the farm,

laid
that Regulation, as regards the
down in Article 12 of
basic special premium and the basic suckler cow premium,

shall not apply in the Canary Islands in the case of the basic
special premium, the basic suckler cow premium, the slaughter
premium or
referred to in
the supplementary premiums
paragraphs 2 and 3.

The basic and supplementary premiums referred to in
5.
paragraphs 2 and 3 shall be granted each year
for a
maximum of 10 000 male bovine animals, 5 000 suckler
cows and 15 000 slaughtered animals, respectively.

6.
Detailed rules for applying this Article shall be adopted in
accordance with the procedure referred to in Article 19(2).
They shall cover drawing up the balances referred to in
paragraph 1 and any reviews to take account of changing
requirements and:

(a) as regards the special premium for male bovine animals,

they shall provide for:

(cid:151) the (cid:145)freezing(cid:146), within the regional ceiling set in Article 4
of Regulation (EC) No 1254/1999, of the number of
animals for which the special premium was granted in
the Canary Islands for the year 2000,

(b) as regards the suckler cow premium, these detailed rules:

(cid:151) shall

to the extent
include provisions to guarantee,
to whom a
rights of producers
necessary,
premium has been granted under Article 6 of Regu-
lation (EC) No 1254/1999,

the

(cid:151) may provide for the establishment of a specific reserve
for the Canary Islands and special conditions for allo-
cating or reallocating rights, taking into account the
objectives pursued in the livestock farming sector; the
size of the reserve shall be determined on the basis of
in paragraph 5 and the number of
the ceiling set
premiums granted for the year 2000;

(c) as regards the slaughter premium, they shall provide for:

(cid:151) the (cid:145)freezing(cid:146), within the ceiling set in Article 38(1) of
Regulation (EC) No 2342/1999, of
the number of
animals for which the slaughter premium was granted
for 2000.

The detailed implementing rules may include additional
conditions for granting supplementary premiums.

The Commission may review the ceilings fixed in paragraph 5
in accordance with the same procedure.

Article 7

During the period 2001-05, a flat-rate financial allocation shall
be granted to producer organisations or their associations to
implement in the Canary Islands a comprehensive programme
to support the production and marketing of local produce in
the livestock sector.

The programme may include measures to encourage improved
quality and hygiene, the marketing of quality products, sector
structuring, the rationalisation of production and marketing
structures providing for grouped purchases and the provision
of technical assistance.

The programme shall be prepared and implemented by the
authorities designated by the Member State,
competent
working in close collaboration with the most representative
producer organisations or their associations in the sectors
concerned. It may not include the granting of aid in addition
to the individual premiums paid directly to producers under
this Regulation in the livestock sector.

Each year the Spanish authorities shall present a report on
implementation of the programme.

(cid:151) the grant of basic premiums within the limit of 90
animals per age group, per calendar year and per
holding;

Detailed rules for applying this Article, the measures and the
amount of aid shall be fixed and may be reviewed in
accordance with the procedure referred to in Article 22(2).

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Article 8

1.
A supplementary premium shall be granted, in addition
to the ewe premium payable under Article 5(3) of Council
Regulation (EC) No 2467/98 of 3 November 1998 on the
in sheepmeat and
common organisation of
goatmeat (1), to producers of light lambs as defined in Article
4(3) of that Regulation.

the market

lambs,

amounts of

The amount of the supplementary premium shall be equal to
the difference between the
the premiums
determined under Article 5(2) and (3) of Regulation (EC) No
2467/98 payable to producers of heavy lambs and producers of
the difference between the
light
amounts of the specific aids for rural measures referred to in
the first and second indents of Article 1(1) of Council Regu-
lation (EEC) No 1323/90 of 14 May 1990 instituting specific
aid for sheep and goat farming in certain less-favoured areas of
the Community (2).

respectively, plus

2.
The supplementary premium determined in accordance
with paragraph 1 shall also be paid to producers of goat
meat, without prejudice
the premium
provided for in Article 5(5) of Regulation (EC) No 2467/98.

to payment of

3.
The premiums referred to in paragraphs 1 and 2 shall be
granted on the same terms as those laid down for the grant of
the premium to producers of sheepmeat and goat meat under
Article 5 of Regulation (EC) No 2467/98.

4.
Detailed rules for applying this Article shall be adopted as
necessary in accordance with the procedure referred to in
Article 22(2).

Article 9

During the period 2001-05, financial assistance shall be
1.
granted to producers and producer organisations recognised by
the competent authorities
to implement a comprehensive
programme to support production and marketing in the
sheep and goat sector in the Canary Islands,
in particular
cheese, the chief product of that sector.

The operational programmes must be approved by the
include measures such as
competent authorities and shall
incentives to structure the sector, achieve genetic improvement
of herds, and improve the technical and health conditions on
farms, the quality of milk and cheese and the image of local
products,
industrial production, marketing and concentration
of artisanal supply.

These programmes may not include aid in addition to the
premiums paid under Article 8.

(1) OJ L 312, 20.11.1998, p. 1. Regulation last amended by Regulation

(EC) No 1669/2000 (OJ L 193, 29.7.2000, p. 8).

Additional detailed rules of application, the measures and
2.
the amount of aid shall be fixed and may be reviewed in
accordance with the procedure referred to in Article 22(2).

Article 10

1.
Aid shall be granted for the human consumption of
locally produced fresh cow’s milk products, within the limits
of the consumption needs of the islands as assessed period-
ically. The aid shall be paid to the dairies. The aid shall amount
to EUR 8,45 per 100 kg of whole milk.

The Commission shall review the aid referred to in
2.
paragraph 1 and adopt detailed rules for applying this Article
in accordance with the procedure referred to in Article 22(2).
Payment shall be subject to the benefit derived therefrom being
actually passed on to the consumer.

CHAPTER II

FRUIT, VEGETABLES, PLANTS AND FLOWERS

Article 11

1.
Aid shall be granted for the fruits, edible vegetables, roots
and tubers, flowers and live plants listed in Chapters 6, 7 and 8
of the combined nomenclature harvested in the Canary Islands
and intended to supply the market in the Canary Islands.

The aid shall be granted for products which conform to
common standards fixed by Community legislation or, where
no such standards exist,
to specifications written into the
supply contracts.

Grant of the aid shall be subject to the conclusion of supply
contracts lasting one or more years between producers or
producer organisations as referred to in Articles 11, 13 and
14 of Council Regulation (EC) No 2200/96 of 28 October
in fruit
1996 on the common organisation of
and vegetables (3) and the food industry or distributors,
restaurants and the like or local authorities.

the market

The aid shall be paid out to the abovementioned producers or
producer organisations within the limits of annual quantities
established for each product category.

The amount of the aid shall be fixed on a flat-rate basis for
each of the product categories to be determined, based on the
average value of the products covered. The amount of aid shall
be differentiated according to whether the beneficiary is a
producer or one of the producer organisations referred to in
Articles 11, 13 and 14 of Regulation (EC) No 2200/96.

The aid shall not be granted for bananas falling within CN code
0803 00, tomatoes falling within CN code 0702 00 or new
potatoes falling within CN code 0701 90 51.

(2) OJ L 132, 23.5.1990, p. 17. Regulation last amended by Regulation

(3) OJ L 297, 20.11.1996, p. 1. Regulation last amended by Regulation

(EC) No 193/98 (OJ L 20, 27.11.1998, p. 18).

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

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Detailed rules for applying this Article shall be adopted in
2.
accordance with the procedure referred to in Article 22(2). The
product categories and amounts of aid referred to in paragraph
1 shall be fixed in accordance with the same procedure.

Article 12

the conclusion of annual
1.
Aid shall be granted for
contracts concerning the marketing of
fresh and processed
products as specified in Article 11 and harvested in the
Canary Islands.

The contracts shall be concluded between individual producers
or producer organisations as referred to in Articles 11, 13 and
14 of Regulation (EC) No 2200/96 established in the Canary
Islands and natural or legal persons established in the rest of
the Community.

The amount of the aid shall be 10 % of the value of the

2.
production marketed, free at destination.

This aid shall be paid up to a limit of a volume of 10 000
tonnes per product per year.

The aid shall be granted to purchasers who undertake to
the contracts

the Canary Islands products under

3.
market
referred to in paragraph 1.

4. Where marketing of the products referred to in paragraph
1 is undertaken by joint ventures constituted, with the aim of
marketing produce from the Canary Islands, by producers in
those islands or producer organisations as referred to in
Articles 11, 13 and 14 of Regulation (EC) No 2200/96 and
the
natural or
Community, and where the partners undertake to pool the
knowledge and know-how required to achieve the objective
of the joint venture over a minimum period of three years,
the amount of the aid shall be increased to 13 % of the value of
the annual production marketed jointly.

legal persons established in the rest of

Detailed rules for applying this Article shall be adopted in

5.
accordance with the procedure referred to in Article 22(2).

Article 13

The Community shall contribute up to a maximum of
1.
EUR 100 000 towards the financing of an economic analysis
the fresh and processed fruit and
and forward study of
vegetable sector
in the Canary Islands, paying particular
attention to tropical produce.

The study shall produce an economic and technical assessment
of the sector. It shall pay particular attention to supply data
and processing costs and examine the conditions and scope for
level,
development and sales at regional and international
having regard to competition on the world market.

CHAPTER III

WINE

Article 14

Chapter II of Title II of Council Regulation (EC) No 1493/1999
of 17 May 1999 on the common organisation of the market in
wine (1) and Chapter III of Commission Regulation (EC) No
1227/2000 of 31 May 2000 laying down detailed rules for
the application of Council Regulation (EC) No 1493/1999 on
the common organisation of the market in wine (2), as regards
production potential shall not apply to the Canary Islands.

Article 15

1.
Aid per hectare shall be granted for the continued culti-
vation of vines for the production of quality wines psr in the
traditional production zones.

The following areas shall be eligible for aid:

(a) areas planted to vine varieties included among the varieties
classified by the Member States as being suitable for the
production of each of the quality wines psr produced in
their territory, as referred to in Article 19 of Regulation
(EC) No 1493/1999, and

(b) areas where the yield per hectare is lower than a maximum
to be fixed by the Member State, expressed as quantities of
grapes, grape musts or wine, under the terms of Annex
VI(1) to Regulation (EC) No 1493/1999.

2.
The amount of the aid shall be EUR 476,76 per hectare
per year. The aid shall be paid to producer groups or their
associations.

However, the aid shall also be granted to individual producers
during a transitional period. During that period, all the aid
shall be paid through the regulatory boards for designations
of origin,
to be laid down in
accordance with the procedure referred to in paragraph 3.

in accordance with rules

Detailed rules for applying this Article shall be adopted as
3.
necessary in accordance with the procedure referred to in
Article 22(2).

CHAPTER IV

POTATOES

Article 16

Aid per hectare shall be granted for the cultivation of
1.
potatoes for human consumption falling within CN codes
0701 90 51, 0701 90 59 and 0701 90 90.

The maximum amount of the aid shall be EUR 596 per

2.
hectare.

The aid shall be paid up to a limit of 9 000 hectares cultivated
and harvested per year.

Detailed rules for applying this Article shall be adopted in

3.
accordance with the procedure referred to in Article 22(2).

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 22(2).

(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 143, 16.6.2000, p. 1.

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CHAPTER V

TOBACCO

Article 17

Spain is hereby authorised to grant tobacco production aid to
the Canary Islands in addition to the premium provided for in
Title I of Regulation (EEC) No 2075/92. The grant of this aid
may not result in discrimination between producers in the
islands.

The amount of the aid shall not be more than the Community
premium referred to in the first paragraph. The additional aid
shall be paid for up to 10 tonnes each year.

Article 18

1.
No customs duties shall be applied to direct imports into
the Canary Islands of raw and semi-manufactured tobacco
falling, respectively, within:

(cid:151) CN code 2401,

(cid:151) and subheadings:

(cid:151) 2401 10 Tobacco, not stemmed/stripped,

(cid:151) 2401 20 Tobacco, partly or wholly stemmed/stripped,

(cid:151) ex 2401 20 outer coverings for cigars presented on
supports, in reels for the manufacture of tobacco,

(cid:151) 2401 30 Tobacco waste,

(cid:151) ex 2402 10 00 Unfinished cigars without wrapping,

(cid:151) ex 2403 10 00 Cigarette rag (finished mixtures of
the manufacture of cigarettes, cigars,

tobacco for
cheroots and cigarillos),

(cid:151) ex 2403 91 00 Homogenised or reconstituted tobacco,

whether or not put up in sheets or strips,

(cid:151) ex 2403 99 90 Expanded tobacco (1).

The exemption referred to in the first subparagraph shall apply
to products intended for the local manufacture of
tobacco
products, up to an annual import limit of 20 000 tonnes of
raw stripped tobacco equivalent.

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 22(2).

CHAPTER VI

HONEY

Article 19

The aid shall be paid to beekeepers’ associations recognised by
the competent authorities on the basis of the number of hives
of black bees in production, up to a limit of 15 000 hives.

The amount of the aid shall be EUR 20 per hive in production
per marketing year. For the purposes of
the
marketing year shall begin on 1 July and end on 30 June the
following year.

this Article,

2.
Detailed rules for applying this Article shall be adopted as
necessary in accordance with the procedure referred to in
Article 22(2).

CHAPTER VII

GRAPHIC SYMBOL

Article 20

1.
The conditions for using the graphic symbol introduced
with a view to ensuring greater awareness and consumption of
quality agricultural products, whether natural or processed,
specific to the Canary Islands as most remote regions, shall
be proposed by the professional organisations. The Spanish
authorities shall forward such proposals, with their opinion,
to the Commission for approval.

Use of the symbol shall be monitored by an official authority
or a body approved by the competent Spanish authorities.

2.
Detailed rules for applying this Article shall be adopted as
necessary in accordance with the procedure referred to in
Article 22(2).

TITLE III

STRUCTURAL DEROGATIONS

Article 21

Notwithstanding Article 7 of Regulation (EC) No
1.
1257/1999, the total value of the aid, expressed as a percentage
of the volume of eligible investments, shall not exceed 75 % for
investments intended in particular to encourage diversification,
restructuring or a shift towards sustainable agriculture on agri-
cultural holdings of very small economic size to be defined in
the programming complement referred to in Article 18(3) of
Regulation (EC) No 1260/1999 (2).

Notwithstanding Article 28(2) of Regulation (EC) No
2.
1257/1999, the total value of the aid, expressed as a percentage
of the volume of eligible investments, shall not exceed 65 % for
investments in small and medium-sized enterprises engaged in
processing and marketing agricultural products consisting
mainly of
local produce in sectors to be defined in the
programming complement referred to in Article 18(3) of Regu-
lation (EC) No 1260/1999.

Aid shall be granted for the production of quality honey
1.
specific to the Canary Islands, produced by the local breed of
(cid:145)black bees(cid:146).

The measures planned under

this Article shall be
3.
described in the operational programmes for these regions, as
referred to in Article 18 of Regulation (EC) No 1260/1999.

(1) OJ L 172, 8.7.1999, p. 32.

(2) OJ L 161, 26.6.1999, p. 1.

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TITLE IV

GENERAL AND FINAL PROVISIONS

Article 22

1.
The Commission shall be assisted by the Management
Committee for Cereals established by Article 22 of Council
Regulation (EEC) No 1766/92 of 30 June 1992 on the
common organisation of the market in cereals (1), or by the
management committees established by the other regulations
on the common organisation of the markets for the products
concerned.

In the case of agricultural products covered by Regulation
(EEC) No 827/68 and products not covered by a common
organisation of the market, the Commission shall be assisted
by the Management Committee for Hops established by Article
20 of Council Regulation (EEC) No 1696/71 of 26 July 1971
on the common organisation of the market in hops (2).

In the case of the graphic symbol and other cases provided for
in this Regulation, the Commission shall be assisted by the
Management Committee for Fresh Fruit and Vegetables estab-
lished by Council Regulation (EC) No 2200/96 of 28 October
1996 on the common organisation of the market in fruit and
vegetables (3).

For the purposes of implementing Title IV, the Commission
shall be assisted by the Committee on Agricultural Structures
and Rural Development established by Article 50 of Council
Regulation (EC) No 1260/1999 of 21 June 1999 laying down
general provisions on the Structural Funds (4).

reference

is made

to this paragraph,

2. Where
the
management procedure provided for in Article 4 of Council
Decision 1999/468/EC of 28 June 1999 laying down the
powers
procedures
of
conferred on the Commission (5)
to
Article 7(3) of that Decision.

implementing

shall apply,

exercise

subject

the

for

The period provided for in Article 4(3) of Decision

3.
1999/468/EC shall be one month.

gating the specific constraints on farming in the Canary Islands
as a result of their remoteness and insularity.

Article 24

The measures provided for in this Regulation, except for Article
21, shall constitute intervention intended to stabilise the agri-
cultural markets within the meaning of Article 2(2) of Council
Regulation (EC) No 1258/1999 (6).

Article 25

The Member States shall take the measures necessary to ensure
regards
compliance with this Regulation,
inform the
controls and administrative penalties, and shall
Commission thereof.

in particular as

The detailed rules for applying this Article shall be adopted by
the procedure provided for in Article 22(2).

Article 26

1.
Spain shall present to the Commission an annual report
on the implementation of the measures provided for in this
Regulation.

2.
At the end of the fifth year of application of the system
the Commission shall submit to Parliament and the Council a
general report showing the impact of the action taken under
this Regulation.

Article 27

Council Regulation (EEC) No 1601/92 of 15 June 1992
concerning specific measures for
the Canary Islands with
regard to certain agricultural products (7) is hereby repealed.
References
to Regulation (EEC) No 1601/92 shall be
construed as references to this Regulation and should be read
in accordance with the correlation table in Annex II.

Article 28

Article 23

For the agricultural products covered by Annex I to the Treaty,
to which Articles 87, 88 and 89 thereof apply, the Commission
may authorise operating aid in the
sectors producing,
processing and marketing those products, with a view to miti-

into force on the 20th day
This Regulation shall enter
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.

(1) OJ L 181, 1.7.1992, p. 21. Regulation last amended by Regulation

(EC) No 1666/2000 (OJ L 193, 29.7.2000, p. 1).

(2) OJ L 175, 4.8.1971, p. 1. Regulation last amended by Regulation

(EC) No 191/2000 (OJ L 23, 28.1.2000, p. 4).

(3) OJ L 297, 20.11.1996, p. 1. Regulation last amended by Regulation

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

(4) OJ L 161, 26.6.1999, p. 1.
(5) OJ L 184, 17.7.1999, p. 23.

(6) Council Regulation (EC) No 1258/1999 of 17 May 1999 on the
financing of the common agricultural policy (OJ L 160, 26.6.1999,
p. 103).

(7) OJ L 173, 27.6.1992, p. 13. Regulation last amended by Regulation

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

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LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS PROVIDED FOR IN ARTICLE 3

ANNEX I

Description

CN code

Cereals:

(cid:151) Wheat

(cid:151) Barley

(cid:151) Oats

(cid:151) Maize

(cid:151) Meal and pellets

Malt

Hops

Rice

Vegetable oil

Sugar

Concentrated fruit juices
(raw materials)

Fresh or chilled beef and veal

Frozen beef and veal

Frozen pigmeat

Frozen poultrymeat

Dried eggs
(for the food industry)

Table wine

Seed potatoes

Milk and milk products

(cid:151) Liquid milk

(cid:151) Concentrated or powdered milk

(cid:151) Butter

(cid:151) Cheese

1001

1003

1004

1005

1103

1107

1210

1006

ex 1507 to 1516

1701 and 1702 (except isoglucose)

2007 99
2008

0201

0202

0203 21, 22, 29

0207 21, 22, 41, 42, 43, 50

0408

2204

0701 10 00

0401

0402

0405

0406 30, 0406 90 23, 25, 27, 77, 79, 81, 89

Milk-based preparations for children
not containing animal fat

Lucerne (alfalfa) meal and pellets

2106 90 91
1901 90 90

1214 10 00

Oil-cake and other solid residues resulting from the
extraction of soya-bean oil

2304 00

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ANNEX II

CORRELATION TABLE

Regulation (EEC) No 1601/92

This Regulation

Article 1
Article 2
Article 3(1)

Article 3(2)
Article 3(3)
Article 4
Article 5
Article 6
Article 7
Article 8(1)

Article 8(2)
Article 8(3)
Article 9
Article 10(1)
Article 10(2)

Article 10(3)

Article 11
Article 12
Article 13

Article 14
Article 15
Article 16
Article 17
Article 18
Article 19
Article 20
Article 21
Article 22
Article 23
Article 24
Article 25
Article 26
Article 27
Article 28

Article 29

Article 30

Article 31
Annex

Article 1
Article 2
First subparagraph of Article 3(1)
Second subparagraph of Article 3(1)
Article 3(2)
Article 3(3)
Article 4
Article 5
Article 18
Article 3(4)
First subparagraph of Article 3(5)
Second subparagraph of Article 3(5)
Third subparagraph of Article 3(5)
Deleted
Third subparagraph of Article 3(5)
Article 6(1)
Deleted
Article 6(2)
Article 6(3)
Article 6(4)
Article 6(5)
Article 7
Article 10
Deleted
Article 8
Article 9
Deleted
Article 11
Article 12
Article 13
Article 14
Article 15
Article 16
Deleted
Deleted
Article 17
Article 19
Deleted
Article 20
Article 21
Deleted
Article 22
Article 23
Article 24
Article 25
Article 26
Article 27
Article 28
Annex I
Annex II