Proposal for a Council Regulation introducing specific measures for certain agricultural products for the Azores and Madeira (COM(2000) 791 final — 2000/0314(CNS))
Date: 2001-03-27
Institutions: European Commission
Subjects: Azores, Madeira, agricultural product, aid to agriculture, production aid, supply

27.3.2001

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Official Journal of the European Communities

C 96 E/301

Proposal for a Council Regulation introducing specific measures for certain agricultural products
for the Azores and Madeira

(2001/C 96 E/26)

COM(2000) 791 final (cid:151) 2000/0314(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 and 37 and Article
299(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

the most

remote regions. The purpose of

(1) By Decision 91/315/EEC of 26 June 1991 the Council
adopted a programme of options specific to the remote
and insular nature of Madeira and the Azores (Poseima) (1)
in accordance with the Community’s policy of assistance
for
the
programme is to facilitate the economic and social devel-
opment of those regions and enable them to benefit from
the advantages of the single market of which they are an
integral part despite the objective factors leaving them
geographically
The
programme calls for the CAP to be applied in those
to be
regions
adopted,
in
which agricultural products are produced and marketed
there and to mitigate the effects of
their exceptional
geographical situation and constraints as since recognised
in Article 299(2) of the Treaty.

for
special measures
to improve the conditions

and provides
in particular

economically

isolated.

and

of Community
traditional

(4) In order to achieve the goal of lowering prices in these
regions and mitigating the additional costs of
their
remoteness and insularity while maintaining the competi-
tiveness
preventing
and
disruption of
trade flows, aid should be
granted for the supply to the islands of products of
Community origin. Such aid must take account of the
additional cost of transport to Madeira and the Azores
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.

products

economic

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

authorised

specific

the

by

of

(6) The

the

specific

economic

advantages of

supply
arrangements must be passed on so as
to reduce
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.

(2) The particular geographical situation of Madeira and the
Azores 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 these 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.

(3) 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.

(1) OJ L 171, 29.6.1991, p. 10.

(7) The area aid scheme for fruit and edible vegetables, roots
and tubers, flowers and live plants has proved unsuitable,
the slowness and complexity of
especially because 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 Madeira and the Azores. Such
aid must help local produce compete with products from
elsewhere on high-growth markets, better
satisfy the
new distribution
requirements
and
farms
channels,
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 in these two regions.

the productivity of

of
improve

consumers

and

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(8) It

is essential,

for both economic and environmental
reasons, to keep vineyards, the most widespread crop,
on Madeira.
domestic
production, a flat-rate area aid is granted for the culti-
vation of vines for producing quality wines produced in
specified regions. That aid also applies in the Azores.

to help support

In order

(9) Likewise, compulsory and voluntary distillation and aban-
donment premiums do not apply in these two regions.

Community origin, with a view to covering local
consumption more fully.

(13) Potato production is essential

in Madeira,

farms and the cost of

for both
economic and social and environmental reasons. The
small size of
inputs make for
very high production costs. Specific aid is granted for
growing potatoes for human consumption in order to
support domestic production to satisfy the
island’s
consumption patterns.

(10) Agricultural producers in the Azores and Madeira should
be encouraged to supply quality products and the
marketing of
assisted. Using the
should be
Community’s graphic symbol might help achieve this.

these

(14) The aid for the cane-sugar-rum sector in Madeira is
granted to support local production of the sugar cane
needed to manufacture the products processed from it,
within the limits of the requirements arising from the
methods traditionally used in the region.

(11) Traditional

of

should

farming

activities

purchase

involving

to help meet

the provisions of

the development and particular conditions of

be
livestock
local
supported in Madeira in order
consumption needs. To that end, derogations are needed
from some of
the common market
organisations which restrict production, to take account
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
pure-bred
the
breeding animals, by purchasing commercial breeds
more suited to local conditions and by supplementing
the suckler cow premium and the slaughter premium,
and, pending
livestock
temporary provision should be made for the
farming,
the number of
supply of male animals for fattening,
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
and
must
implement strategies tailored to the local context
for
economic development, spatial organisation of production
and increasing the professionalism of producers.

concerned to define

development of

sectors

enable

local

the

the

(12)

In Madeira, aid for human consumption of fresh cow’s
milk products is paid to the dairies. This aid has not
succeeded in maintaining the balance between domestic
and external
the serious
supply, chiefly because of
structural difficulties affecting the sector and its poor
environments.
capacity to adapt
Consequently,
in the
is planned to direct
context of a supply balance, towards the collection of
local production linked with an authorisation to
produce reconstituted UHT milk from milk powder of

to new economic

this aid,

it

(15) Liqueur wines should continue to be prepared using tradi-
tional methods in the islands by facilitating the purchase
of concentrated musts and wine alcohol produced in the
rest of the Community and by granting aid for the ageing
of such wines. To assist the efforts made to maintain the
quality and authenticity of these products, aid should be
granted for marketing them.

(16) Aid should be granted in Madeira for the production of
wicker, which is important as a supplement to farming
and provides a livelihood for family craft businesses in the
most disadvantaged areas of the island.

the

sector,

suckler

activity in this

(17) Milk production and cattle farming are the mainstay of
the agricultural economy of the Azores, and support for
the sector must take account of the crucial importance of
in both social and economic terms,
these activities
especially for small
farmers. To ensure the survival of
cow
traditional
premium and the aid for dairy cows should continue to
be supplemented, within the limit of the available local
quota. A supplement to the slaughter premium should be
introduced and aid granted for the disposal of surplus
male bovines for which no normal outlets can be found
in the islands and which must be shipped to the rest of
the Community at considerable additional cost, given the
particular geographical situation of the region. To ensure
that Community support can be mobilised effectively, an
annual
sectors
concerned to define and implement strategies tailored to
spatial
the local context
organisation
the
professionalism of producers.

for economic development,
production

financial allocation must

increasing

enable

and

the

of

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(18) With regard to crop cultivation in the Azores, the small
cultivatable area,
the small size and fragmentation of
farms and the extensive nature of production all make
for high production costs.
these crops
It
(beet, chicory, potatoes, tobacco, pineapples, wine, tea,
etc.) continue to be cultivated as an alternative to counter-
balance the predominance of
livestock farming, and to
ensure this
the aid granted to the local processing
industry should be continued.

is vital

that

TITLE I

SPECIFIC SUPPLY ARRANGEMENTS

Article 2

Specific supply arrangements are hereby introduced for the
agricultural products listed in Annexes I and II to this Regu-
lation, which are essential
for
processing and as agricultural
in the Azores and
Madeira.

for human consumption,

inputs

(19) The plant health of agricultural crops in Madeira is
associated with the
to particular problems
subject
climate and the inadequacy of
the control measures
hitherto applied there. Programmes should be imple-
mented to combat harmful organisms. The Community’s
financial contribution towards such programmes should
be specified.

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

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

It

(21) Article 29(3) of Regulation (EC) No 1257/1999 restricts
the grant of aid for forestry to forests and wooded areas
owned by private owners or municipalities or associations
thereof. Most of the forests and wooded areas in these
regions are owned by public authorities other than muni-
cipalities. The terms laid down in Article 29 should
therefore be relaxed.

(22) 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 Azores and Madeira as a result of their remoteness,
insularity, small area, mountainous terrain and climate
and their economic dependency on a small number of
products,

HAS ADOPTED THIS REGULATION:

Article 3

1.
No duties shall apply to direct imports into the Azores
and Madeira of products covered by the specific supply
arrangements if they originate in third countries, within the
limit of the quantities determined in the supply balance.

Products which have entered the rest of
the Community’s
customs territory under inward processing or customs ware-
housing arrangements shall be considered as direct imports for
the purposes of this Title.

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 Azores and
Madeira 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
transport to the Azores and Madeira 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.

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 Azores and Madeira and, in
the case of products intended for processing and agri-
cultural 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
Azores and Madeira 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.

TITLE II

MEASURES TO ASSIST LOCAL PRODUCTS

CHAPTER I

MEASURES COMMON TO BOTH REGIONS

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
the products
under
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

S e c t i o n 1

Livestock

Article 4

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

Where the products concerned are processed in the Azores and
Madeira, 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.

in particular, of

the supply requirements of

The terms for granting aid shall be laid down taking
2.
account,
the
Azores and Madeira for starting up production and genetic
livestock and the need for the breeds best
improvement of
suited to local conditions. The aid shall be paid for
the
delivery of goods which fulfil the requirements specified in
Community rules.

6.
Detailed rules for applying this Title shall be adopted in
accordance with the procedure referred to in Article 29(2).
These shall include:

The following shall be taken into account when aid is

3.
being fixed:

(cid:151) the fixing of aid for

supply from the rest of

the

Community,

(cid:151) the conditions and in particular the costs of supply to the
Azores and Madeira resulting from their geographical
situation;

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

(cid:151) provisions

to ensure that

the advantages granted are

world market;

actually passed on to the end user,

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

licences.

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

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

countries;

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 Annexes I and
II,
in the light of
changes in the Azores’ and Madeira’s requirements.

in accordance with the same procedure,

raw sugar

sugar beet. The quantities

When determining the Azores’
requirements,
account shall be taken of the development of local production
of
supply
arrangements shall be determined so as to ensure that the
total volume of sugar refined in the Azores each year does
not exceed 10 000 tonnes.

covered by

the

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

4.
under paragraph 1.

5.
The list of products covered, 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 29(2).

S e c t i o n 2

Fruit, vegetables, plants and flowers

Article 5

Article 9 of Council Regulation (EEC) No 2038/1999 of 13
September 1999 on the common organisation of the markets
in sugar (1) shall not apply to the Azores.

(1) OJ L 252, 25.9.1999, p. 1. Regulation last amended by Commission
Regulation (EC) No 1527/2000 (OJ L 175, 14.7.2000, p. 59).

1.
Aid shall be granted in respect of the fruits, vegetables,
flowers and live plants listed in Chapters 6, 7 and 8 of the
tea falling within CN code 0902,
combined nomenclature,
honey falling within CN code 0409 00 and fruits of
the
genus Capsicum and the genus Pimenta falling within CN
code 0904, harvested or produced locally and intended to
supply the markets of the respective production regions. This
aid shall not be granted for bananas grown in Madeira.

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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 individual
producers or producer organisations as referred to in Articles
11, 13 and 14 of Council Regulation (EC) No 2200/96 of 28
October 1996 on the common organisation of the market in
fruit and vegetables (1) and the food industry or distributors,
restaurants and the like or local authorities.

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

legal persons established in the rest of

4. Where the measures provided for in paragraph 1 are
undertaken by joint ventures constituted, with the aim of
marketing produce from the regions concerned, by producers
or producer organisations or associations in those regions 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 aid specified in paragraph 2 shall be
the amount of
the annual production
increased to 13 % of
marketed jointly.

the value of

Detailed rules for applying this Article shall be adopted in

5.
accordance with the procedure referred to in Article 29(2).

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.

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

in the

Article 7

This Article shall not apply to pineapples produced in the

2.
Azores.

Detailed rules for applying this Article shall be adopted in
3.
accordance with the procedure referred to in Article 29(2). The
product categories and amounts of aid referred to in paragraph
1 shall be fixed in accordance with the same procedure.

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

Article 6

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 29(2).

1.
Aid shall be granted for
contracts concerning the marketing of
products as specified in Article 5(1).

the conclusion of annual
fresh and processed

This aid shall be paid up to a limit of a volume of 3 000
tonnes per product per year for each of the two regions.

The contracts shall be concluded between individual producers
or producer organisations or their associations within the
meaning of Council Regulation (EC) No 2200/96 established
in the 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.

S e c t i o n 3

Wine

Article 8

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 (2) 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 (3), as regards
production potential
shall not apply to the Azores and
Madeira.

3.
The aid shall be granted to sellers who have concluded a
contract as referred to in paragraph 1 with an operator estab-
lished in the rest of the Union.

1.
the
A flat-rate aid per hectare shall be granted for
continued cultivation of vines for the production of quality
wines psr in the traditional production zones.

Article 9

(1) OJ L 297, 21.11.1996, p. 1. Regulation last amended by Regulation

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

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

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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 indi-
vidual producers during a transitional period. During that
period, all the aid shall be paid through the Wine Institute
of Madeira
the
Azores, in accordance with rules to be laid down in accordance
with the procedure referred to in paragraph 3.

and the Wine-growing Commission of

3.
Detailed rules for applying this Article shall be adopted as
necessary in accordance with the procedure referred to in
Article 29(2).

S e c t i o n 4

Graphic symbol

Article 10

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 Azores and Madeira as most remote regions,
shall be proposed by the professional organisations. The
forward such proposals, with
Portuguese authorities
their opinion, to the Commission for approval.

shall

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

2.
Detailed rules for applying this Article shall be adopted as
necessary in accordance with the procedure referred to in
Article 29(2).

(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;

(b) aid shall be granted for the supply of animals as referred to
in (a) originating in the Community, up to a limit of 1 000
head. Priority shall be given to producers holding animals
for fattening at least 50 % of which are of local origin.

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

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 29(2).

the amount of

Article 12

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 Madeira as
assessed in the context of a periodic supply balance. The
balance shall also take account of breeding animals supplied
under Article 4 and animals
supply
arrangements provided for in Article 11.

covered by

the

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

A supplement to the premium for maintaining suckler
3.
in Article 6 of Regulation (EC) No
cows provided for
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;

CHAPTER II

MEASURES TO ASSIST LOCAL PRODUCTS IN MADEIRA

(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;

S e c t i o n 1

Livestock and milk products

Article 11

Until the local numbers of young male bovines reach a
to maintain traditional beef production, and

1.
level sufficient
within the limit referred to in Article 12:

(c) the national ceiling referred to in Article 11 of that Regu-

lation as regards the basic slaughter premium

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

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The basic and supplementary premiums referred to in
5.
paragraphs 2 and 3 shall be granted each year
for a
maximum of 2 000 male bovine animals, 1 000 suckler cows
and 2 500 slaughtered animals, respectively.

6.
Detailed rules for applying this Article shall be adopted in
accordance with the procedure referred to in Article 29(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
Madeira for the year 2000,

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

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

(cid:151) shall

include provisions to guarantee,
to the extent
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 Madeira and special conditions for allocating 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 the
in paragraph 5 and the number of
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 13

During the period 2001-05, a flat-rate financial allocation shall
be granted to producer organisations or their associations to
implement in Madeira 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, marketing, 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
competent
authorities designated by the Member State,
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 Portuguese authorities shall present a report on
implementation of the programme.

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 29(2).

Article 14

1.
The aid provided for in paragraph 2 and 3 below shall be
granted to assist traditional activities connected with cow’s milk
production and measures to improve product quality, within
the limits of the consumption needs of Madeira as assessed in
the context of a periodic supply balance. The balance shall take
account of
supply
arrangements referred to in Article 2.

the milk products

covered by the

2.
Aid shall be granted for the human consumption of
locally produced fresh cow’s milk products, within the limits
of the consumption needs of Madeira as assessed periodically.

The amount of the aid shall be EUR 12/100 kg of whole milk
delivered to a dairy in order to ensure the regular disposal of
the aforementioned products on the local market. The aid shall
be paid to the dairies.

3.
Notwithstanding Articles 2 and 3 of Regulation (EC) No
2597/97 on drinking milk, the production in Madeira of UHT
milk reconstituted from milk powder originating in the
Community shall be authorised within the limits of
local
consumption requirements. This product shall be intended for
local consumption only.

4.
The Commission shall review the aid referred to in
paragraph 2 and adopt detailed rules for applying this Article
in accordance with the procedure referred to in Article 29(2).
The detailed rules shall determine, in particular, the quantity of
locally-produced fresh milk to be incorporated into the recon-
stituted UHT referred to in paragraph 3 and shall include the
provisions needed to ensure that
locally-produced milk is
collected and finds outlets.

S e c t i o n 2

Potatoes

Article 15

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

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The annual amount of the aid shall be EUR 596 per hectare
per year.

Terms for this specific outlet shall be laid down to ensure that
the markets for alcohol and spirit drinks in the Community are
not disturbed.

The aid shall be paid up to a limit of 2 000 hectares cultivated
and harvested per year.

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 29(2).

S e c t i o n 3

cane-sugar-rum

Article 16

Flat-rate area aid shall be granted each year to sugar-cane

1.
growers.

The amount of the aid shall be EUR 500 per hectare
2.
planted and harvested per year. The aid shall be paid for up
to 100 hectares.

Article 17

1.
Aid shall be granted for the direct processing of sugar
cane produced in Madeira into sugar syrup (mel de cana) or
agricultural rum as defined in Article 1(4)(a) of Council Regu-
lation (EEC) No 1576/89 of 29 May 1989 laying down general
rules on the definition, description and presentation of spirit
drinks (1).

The following shall be taken into account when the

4.
amount of aid is being fixed:

(a) the conditions and in particular the costs of supply to

Madeira resulting from its geographical situation;

(b) the price of products on the Community market and on the

world market;

(c) the economic aspect of the proposed aid.

No refund shall be granted on exports from Madeira of musts
and wine alcohol.

5.
Aid shall be granted for the ageing of Madeira liqueur
wines up to a maximum of 20 000 hectolitres each year. The
aid shall be paid for liqueur wines which require five years’
ageing or more.
It shall be paid for each lot during three
marketing years.

The amount of the aid shall be EUR 0,040 per hectolitre per
day.

Temporary aid shall be granted each year

6.
the
shipment of Madeira wine and its marketing on Community
markets.

for

The aid shall be paid to manufacturers of sugar syrup or to
distillers on condition that
they have paid the sugar cane
producer a minimum price, to be determined.

The aid shall amount to EUR 0,2 per bottle, up to a limit of
2,5 million bottles per year.

2.
The aid shall be granted for the production of an annual
quantity of 250 tonnes of sugar syrup and 2 500 hectolitres of
alcohol at 71.8.o in the case of agricultural rum.

Article 18

The amount of the aid provided for in Articles 16 and 17, the
minimum price to be paid to producers and the detailed rules
for applying the above Articles shall be adopted in accordance
with the procedure referred to in Article 29(2).

S e c t i o n 4

Wine

Article 19

The aid provided for in this Article shall be granted to
the preparation of Madeira liqueur wines within the
the requirements arising from the methods tradi-

1.
assist
limits of
tionally used in the region.

2.
Aid shall be granted to purchase rectified concentrated
musts in the rest of the Community for use in wine-making
to sweeten the liqueur wines concerned.

3.

Aid shall be granted for the purchase of wine alcohol.

(1) OJ L 160, 12.6.1989, p. 1.

Detailed rules for applying this Article shall be adopted in

7.
accordance with the procedure referred to in Article 29(2).

S e c t i o n 5

Wicker

Article 20

Flat-rate area aid shall be granted each year to wicker

1.
growers.

The amount of the aid shall be EUR 250 per hectare of

2.
area planted and harvested, up to a limit of 200 hectares.

Detailed rules for applying this Article shall be adopted in

3.
accordance with the procedure referred to in Article 29(2).

CHAPTER III

MEASURES TO ASSIST LOCAL PRODUCTS IN THE AZORES

S e c t i o n 1

Livestock and milk products

Article 21

1.
The aid provided for in this Article shall be granted to
support essential traditional economic activities in the beef and
veal and milk sectors in the Azores.

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

The premium shall be paid to producers. The amount of this
premium shall be EUR 80 per cow held by the producer on
the day on which the application is submitted.

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 national ceiling referred to in Article 11 of that Regu-

lation as regards the basic slaughter premium;

shall not apply in the Azores in the case of the basic special
premium,
supplementary
premium referred to in paragraph 2.

slaughter premium or

the

the

The basic and supplementary premiums referred to in
5.
paragraphs 2 and 3 shall be granted each year
for a
maximum of 40 000 male bovine animals and 33 000
slaughtered animals, respectively.

6.
Detailed rules for applying this Article shall be adopted in
accordance with the procedure referred to in Article 29(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 1254/2000, of the number of
animals for which the special premium was granted
in the Azores for the year 2000,

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

(cid:151) the (cid:145)freezing(cid:146), within the ceiling set in Article 38(5) of
Regulation (EC) No 2342/2000, of
the number of
animals for which the slaughter premium was granted
for the year 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.

Aid shall be granted for the private storage of

8.
tionally manufactured cheeses:

tradi-

(cid:151) S. Jorge, at least three months old,

(cid:151) Ilha, at least 45 days old.

The amount of the aid shall be fixed in accordance with the
procedure referred to in paragraph 8.

9.
Aid shall be introduced to dispose of young male bovine
animals born in the Azores in other regions of the Community.

The aid shall amount to EUR 40 per head shipped, and shall
be granted for up to 20 000 animals to producers who have
kept those animals for at least three months before shipment.

10.
Detailed rules for applying this Article shall be adopted,
as appropriate, in accordance with the procedure referred to in
Article 29(2).

Article 22

During the period 2001-05, a flat-rate financial allocation shall
be granted to producer organisations or their associations to
in the Azores a comprehensive programme to
implement
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
the rationalisation of
quality products,
production and marketing structures providing for grouped
purchases and the provision of technical assistance.

structuring,

sector

The programme shall be prepared and implemented by the
competent
authorities designated by the Member State,
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 Portuguese authorities shall present a report on
implementation of the programme.

Detailed rules for applying this Article shall be adopted, as
appropriate, in accordance with the procedure referred to in
Article 29(2).

S e c t i o n 2

Pineapples

Article 23

A specific premium shall be granted to maintain the dairy

7.
herd, up to a maximum of 78 000 head.

Aid shall be granted to produce pineapples falling within CN
code 0804 30 00 up to a limit of 2 000 tonnes per year.

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The amount of the aid shall be EUR 1,20 per kilogram.

The amount of the aid shall be EUR 500 per hectare.

Detailed rules for applying this Article shall be adopted in
accordance with the procedure referred to in Article 29(2).

S e c t i o n 3

Sugar

Article 24

1.
Flat-rate area aid shall be granted in order to develop the
production of sugar beet, up to the limit of an area corre-
sponding to production of 10 000 tonnes of white sugar per
year.

The amount of the aid shall be EUR 600 per hectare sown and
harvested.

Specific aid shall be granted to process

2.
sugar beet
harvested in the Azores into white sugar, up to an overall
production limit of 10 000 tonnes of refined sugar per year.

2.
Aid shall be granted to produce chicory falling within CN
code 1212 99 10 for up to a maximum area of 400 hectares
per year.

The amount of the aid shall be EUR 500 per hectare.

3.
Aid shall be granted to conclude annual contracts for the
marketing of the potatoes referred to in paragraph 1 on the
same terms as those laid down in Article 6.

4.

Aid per hectare shall be granted for the cultivation of tea.

The amount of
harvested area per year.

the aid shall be EUR 500 per hectare of

The aid shall be paid for up to 200 hectares.

The aid shall amount to EUR 27 per 100 kg of refined sugar.
It may be adapted in accordance with the procedure referred to
in paragraph 3.

Detailed rules for applying this Article shall be adopted in

5.
accordance with the procedure referred to in Article 29(2).

Detailed rules for applying this Article shall be adopted in

3.
accordance with the procedure referred to in Article 29(2).

S e c t i o n 4

Tobacco

Article 25

A supplementary premium shall be granted, in addition
1.
to the premium introduced by Title I of Regulation (EEC) No
2075/92 of 30 June 1992 on the common organisation of the
market in raw tobacco (1), for the collection of leaf tobacco of
the variety Burley P., up to a limit of 250 tonnes. The amount
of the supplementary premium shall be EUR 0,20 per kg of
leaf tobacco.

The detailed rules for applying the premium scheme laid down
to the
in Regulation (EC) No 2848/98 shall
supplementary premium,
specific derogations
except
adopted in accordance with the procedure referred to in
paragraph 2 of this Article.

apply

for

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 29(2).

S e c t i o n 5

Seed potatoes, chicory and tea

Article 26

Aid shall be granted to produce seed potatoes falling
1.
within CN code ex 0701 10 00 up to a limit of 200 hectares.

TITLE III

PLANT-HEALTH MEASURES

Article 27

The

submit

competent

shall
the
authorities
1.
Commission programmes
control of organisms
for
harmful to plants or plant products. The programmes shall
the
the objectives
specify in particular
measures to be carried out, their duration and their cost. The
programmes
to this Article shall not
concern protective measures for bananas.

submitted pursuant

to be achieved,

the

to

2.
The Community shall contribute to the financing of such
programmes on the basis of a technical analysis of the regional
situation.

3.
The financial participation of the Community and the
amount of the aid shall be decided in accordance with the
procedure referred to in Article 29(2). The measures eligible
for Community financing shall be defined in accordance with
the same procedure.

4.
Such participation may cover up to 75 % of the eligible
expenditure. Payment shall be made on the basis of documen-
tation supplied by the competent authorities.
If necessary,
investigations may be organised by the Commission and
conducted on its behalf by experts as referred to in Article
21 of Council Directive 2000/29/EC of 8 May 2000 on
introduction into the
protective measures
Community of organisms harmful to plants or plant products
and against their spread within the Community (2).

against

the

(1) OJ L 215, 30.7.1992, p. 70. Regulation last amended by Regulation

(EC) No 1336/2000 (OJ L 154, 27.6.2000, p. 2).

(2) OJ L 169, 10.7.2000, p. 1.

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TITLE IV

STRUCTURAL DEROGATIONS

Article 28

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 (3).

1.
Notwithstanding Article 7 of Regulation (EC) No
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 programme complement referred to in Article 18(3) of
Regulation (EC) No 1260/1999 (1).

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 (4).

2.
Notwithstanding Article 28(2) of Regulation (EC) No
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.

3.
The restriction provided for in Article 29(3) of Regulation
(EC) No 1257/1999 shall not apply to forests and wooded areas
situated in the territory of the Azores and Madeira.

The measures planned under

4.
this Article shall be
described in the operational programmes for these regions, as
referred to in Article 18 of Regulation (EC) No 1260/1999.

TITLE V

GENERAL AND FINAL PROVISIONS

Article 29

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 (2), 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

For the purposes of implementing Title III, the Commission
shall be assisted by the Standing Committee on Plant Health
established by the Council Decision of 23 November 1976
establishing a Standing Committee on Plant Health (5).

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 (6).

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 (7)
to
Article 7(3) of that Decision.

implementing

shall apply,

exercise

subject

the

for

However, in the case of Title III, the procedure laid down in
Article 18 of Directive 2000/29/EC shall apply.

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

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

Article 30

For the agricultural products covered by Annex I to the Treaty
establishing the European Community, 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 mitigating the specific constraints on
their
farming in the Azores and Madeira as a result of
remoteness and insularity.

(3) 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).

(4) 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).

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

(5) OJ L 340, 9.12.1976, p. 25.
(6) OJ L 161, 26.6.1999, p. 1.
(7) OJ L 184, 17.7.1999, p. 23.

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Article 31

The measures provided for in this Regulation, except for Article
28, shall constitute intervention intended to stabilise the agri-
cultural markets within the meaning of Article 2(2) of Council
Regulation (EC) No 1258/1999 of 17 May 1999 on the
financing of the common agricultural policy (1).

Article 32

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

in particular as

The detailed rules for applying this Article shall be adopted by
the procedure provided for in Article 29(2).

Article 33

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

Article 34

Regulation (EEC) No 1600/92 is hereby repealed. References to
Regulation (EEC) No 1600/92 shall be construed as references
to this Regulation and should be read in accordance with the
correlation table in Annex III.

Article 35

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

Portugal shall present

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

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

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

ANNEX I

Description

CN code

Cereals:

(cid:151) Wheat

(cid:151) Barley

(cid:151) Maize

(cid:151) Malt

(cid:151) Maize seed

Rice

Soya seed

Sunflower seed

Hops

Raw sugar

1001

1003

1005

1107

1005 10

1006

1201 00 90

1206 00 99

1210

1701 12 10

Fruit juice (raw materials) other than those covered by
Article 5 of this Regulation

2009

Olive oil

1509 10 90, 90 00, 00 90

(1) OJ L 160, 26.6.1999, p. 103.

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

ANNEX II

Description

CN code

Cereals:

(cid:151) Wheat

(cid:151) Barley

(cid:151) Maize

(cid:151) Rye

(cid:151) Malt

(cid:151) Maize meal

Hops

Dried alfalfa

Soya cake

Rice

Vegetable oil

Sugar

Fruit preserves
(raw
materials) other than those covered by Article 5 of this
Regulation

and concentrated fruit

juices

Beef and veal:

(cid:151) Fresh or chilled

(cid:151) Frozen

Pigmeat

Milk and milk products:

(cid:151) Milk powder

(cid:151) Liquid milk

(cid:151) Butter

(cid:151) Cheese

Seed potatoes

1001

1003

1005

1020

1107

1103 13

1210

1214

2304

1006

ex 1507 to 1516

1701 and 1702 (except isoglucose)

2007 99, 2008 and 2009

0201

0202

0203

ex 0402

0401

0405

0406

0701 10 00

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ANNEXE III

CORRELATION TABLE

Regulation (EEC) No 1600/92

This Regulation

Article 1

Article 2

Article 3(1)

Article 3(2)

Article 3(3)

Article 3(4)

Article 4

Article 5

Article 6

Article 7

Article 8(1)

Article 8(2)

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14(1)

Article 14(2)

Article 14(3)

Article 14(4)

Article 1

Article 2

First subparagraph of Article 3(1)

Second subparagraph of Article 3(1)

Article 3(2)

Article 3(3)

Article 3(6)

Article 4

Article 11

Deleted

Article 3(4)

First subparagraph of Article 3(5)

Second subparagraph of Article 3(5)

Third subparagraph of Article 3(5)

Third subparagraph of Article 3(5)

Article 3(6)

Article 5

Article 6

Article 7

Article 12(1)

Deleted

Article 12(2)

Article 12(3)

Article 12(4)

First subparagraph of Article 12(5)

Article 12(6)

Article 13

First subparagraph of Article 15(1)

First subparagraph of Article 14(1)

Second and third subparagraphs of Article 15(1)

Article 15(2)

Article 16

Article 17

Article 18

Article 19

Article 20

Article 21

Article 22

Article 23

Article 24(1)

Article 24(2)

Article 24(3)

Article 24(4)

Article 14(2)

Article 14(3)

Article 14(4)

Article 15

Article 16

Article 17

Article 18

Article 19

Article 8

Article 19

Article 19(6)

Article 20

Article 9

Deleted

Article 21(1)

Deleted

Article 21(2)

Article 21(3)

Article 21(5)

Article 21(7)

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Regulation (EEC) No 1600/92

This Regulation

Article 24(5)

Article 24(6)

Article 25

Article 26

Article 27

Article 28

Article 29

Article 30

Article 31

Article 32

Article 33

Article 34

Article 35

Article 36

Annex I

Annex II

Article 21(8)

Article 21(9)

Article 21(10)

Article 22

Article 24

Article 25

Article 26

Article 26(4)

Article 8

Article 9

Article 23

Article 10

Article 28

Article 27

Article 29

Article 30

Article 31

Article 32

Article 33

Article 34

Article 35

Annex I

Annex II

Annex III