Commission Regulation (EC) No 648/2001 of 30 March 2001 amending Regulation (EC) No 2366/98 laying down detailed rules for the application of the system of production aid for olive oil for the 1998/99, 1999/2000 and 2000/01 marketing years
Date: 2001-03-30
Institutions: European Commission
Subjects: aid system, olive oil, producer organisation, production aid

31.3.2001

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Official Journal of the European Communities

L 91/45

COMMISSION REGULATION (EC) No 648/2001

of 30 March 2001

amending Regulation (EC) No 2366/98 laying down detailed rules for the application of the system
of production aid for olive oil for the 1998/99, 1999/2000 and 2000/01 marketing years

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation No 136/66/EEC of 22
September 1966 on the establishment of a common organ-
isation of the market in oils and fats (1), as last amended by
Regulation (EC) No 2826/2000 (2),

Having regard to Council Regulation (EC) No 1638/98 of 20
July 1998 amending Regulation No 136/66/EEC on the estab-
lishment of a common organisation of the market in oils and
fats (3), and in particular Article 4 thereof,

(4)

Having regard to Council Regulation (EEC) No 2261/84 of 17
July 1984 laying down general rules on the granting of aid for
the production of olive oil and of aid to olive oil producer
organisations (4), as last amended by Regulation (EC) No 1639/
98 (5), and in particular Article 19 thereof,

Whereas:

(1)

(2)

(3)

The management and monitoring of
the system of
production aid for olive oil requires information addi-
tional to that already provided for in Commission Regu-
lation (EC) No 2366/98 of 30 October 1998 laying
down detailed rules for the application of the system of
production aid for olive oil for the 1998/99, 1999/2000
and 2000/01 marketing years (6), as last amended by
Regulation (EC) No 1273/1999 (7), particularly with
respect to the new planting referred to in Article 5, the
homogeneous production zones referred to in Article 6,
the quantities produced by the mills referred to in
Article 11 of that Regulation and the national provisions
on penalties.

In order to simplify the administrative burden, any
requirements that are not strictly necessary should be
avoided.

(5)

Under Article 14 of Regulation (EEC) No 2261/84
Member States must take the necessary steps to ensure
that the product is eligible for aid. The measures in
question relate, among others,
to the activities of
approved mills. It has been found that additional checks
are needed on some mills, particularly where their situa-

tion does not allow clear confirmation of the declara-
tions submitted based on objective facts or the declara-
tions of other operators, or where there is a need to
eliminate any risk of further irregularities on top of
those already detected.
the additional
checks should include the daily transmission of certain
stock account data.

In such cases,

Under Article 11a of Regulation No 136/66/EEC the
individual Member States must take the necessary steps
the aid scheme. Under
to penalise infringements of
Article 2(d) of Council Regulation (EEC) No 2262/84 of
17 July 1984 laying down special measures in respect of
olive oil (8), as last amended by Regulation,
(EC) No
150/1999 (9), Member States are to take specific and
appropriate measures to penalise any infringements
where it has been noted that a mill has not fulfilled the
obligations arising under Regulation (EEC) No 2261/84.
Article 13(4) of Regulation (EEC) No 2261/84 lays down
that approval of a mill is to be withdrawn in cases where
one of the conditions for approval referred to in para-
graph 1 of that Article is no longer fulfilled. The condi-
tions for approval are laid down in Articles 7, 8 and 9 of
Regulation (EC) No 2366/98. Article 4(2) of Regulation
(EEC) No 2262/84 provides for a mill's approval to be
withdrawn for a period of between one and five
marketing years where there is a substantial difference
between the quantities of olives pressed or oil produced
and the quantities shown in the stock records or where
those stock records are deemed to be inadequate or
inadequately communicated.

To facilitate the application of the provisions on penal-
ties laid down in a number of Council Regulations, their
sequence must be specified and the concepts referred to
in Article 4(2) of Regulation (EEC) No 2262/84 defined.
In particular, to ensure that the associated severe penal-
ties are reserved for serious infringements, certain differ-
ences in quantities, taking account of the size of mills,
and time limits to be taken into consideration should be
specified. In this context, it should be laid down that the
discovery of an infringement concerning the physico-
chemical properties of the category of oil in the declara-
tion may be viewed as a serious irregularity in the stock
records of all virgin olive oils which may be eligible for

(1) OJ 172, 30.9.1966, p. 3025/66.
(2) OJ L 328, 23.12.1999, p. 2.
(3) OJ L 210, 28.7.1998, p. 32.
(4) OJ L 208, 3.8.1984, p. 3.
(5) OJ L 210, 28.7.1998, p. 38.
(6) OJ L 293, 31.10.1998, p. 50.
(7) OJ L 151, 18.6.1999, p. 12.

(8) OJ L 208, 3.8.1984, p. 11.
(9) OJ L 18, 23.1.1999, p. 7.

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(6)

(7)

(8)

aid. In addition, it should be specified that irregularities
corrected within a certain time limit, other than those
referred to in Article 4 of Regulation (EEC) No 2262/84,
are not covered by Article 13(4) of Regulation (EEC) No
2261/84 but
that penalties must be applied under
Article 11a of Regulation No 136/66/EEC.

The information to be provided by producers or their
organisations under Article 10(1) of Regulation (EC) No
the system of
2366/98 is an important element of
production aid and its control.

Criteria should be laid down for the application of
Article 13(6) of Regulation (EEC) No 2261/84
concerning the approval of mills under special control
arrangements. To establish whether a mill qualifies for
those arrangements,
its production during the olive
processing period should be compared with that of the
other mills in the same NUTS level III region or on an
island forming part of a NUTS level
III region (1).
Furthermore, in view of the seriousness of infringements
committed, the system of additional checks should be
applied to the mill in question at the very least. To avoid
any delays in the application of that system during the
period in which the mills operate, a deadline should be
laid down for submitting applications for approval
under the special control arrangements to the Commis-
sion and provision should be made for granting tempo-
rary approval.

Article 16(1) of Regulation (EC) No 2366/98 lays down
that the advance may be paid, subject to the results of
checks carried out, from 16 October of each marketing
year. In some cases the date from which the advance can
be paid must be deferred to allow additional checks to
be carried out on the producers and mills concerned.
This is justified where the production in respect of
which an aid application has been made corresponds to
a much higher yield than that estimated for the zone
concerned, or where a proposal has been made to with-
draw approval from the mill in question for at least one
year.

(9)

The measures provided for in this Regulation are in
the Management
accordance with the opinion of
Committee for Oils and Fats,

HAS ADOPTED THIS REGULATION:

1. The following paragraph 4 is added to Article 5:

‘4.
Before 31 October 2001, the Member States shall
notify the Commission of the measures taken to monitor
the application of the above paragraphs 2 and 3 and to
penalise offenders, and of the number of olive trees from
the 1998/99 and 1999/2000 marketing years regarding
which,

in accordance with paragraph 2:

— a declaration of intention to plant was lodged,

— the Member State considers that they are replacement

plantings of grubbed trees,

— the Member State considers that they are plantings
in accordance with

under an approved programme,
Article 4,

— the Member State considers that they are additional
plantings not eligible for aid after 31 October 2001.’

2. The following text is added to Article 6(1)(a);

‘— an estimate of the number of olive trees in production,

— an estimate of the area under olives,

— the average yield of virgin olive oil per kilogram of

olives.’

3. The final paragraph of Article 7 is deleted.

4. In Article 8:

(a) in the second indent of point (b), the words ‘to the
competent agency and, where applicable, to the agency
responsible for checks’ are replaced by ‘to the agency
responsible for checks or, in the absence of such an
agency, to the competent agency’;

(b) the following point (d) is added:

‘(d) for a system of additional checks which involves
in particular transmitting daily information on the
quantities of olives pressed, the quantities of oil
and olive residue obtained,
the stocks of oil
present and the amount of electricity consumed.
Without prejudice to the monthly statement, that
information shall be transmitted on the next
working day to the inspection agency or, in the
absence of such an agency, the competent agency.’

5. The following Article 9a is inserted:

Article 1

‘Article 9a

Regulation (EC) No 2366/98 is amended as follows:

(1) Eurostat publication ISBN 92-829-7275-0 — Nomenclature of territo-

rial units for statistics, 1999 edition.

1.
Approval shall be withdrawn from any mill failing to
fulfil the conditions referred to in Article 13(1) of Regula-
tion (EEC) No 2261/84, as laid down in Articles 7, 8 and 9
of this Regulation, for a period of time in keeping with the
seriousness of the infringement.

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The withdrawal of approval referred to in the first subpara-
graph shall apply without prejudice to other penalties,
including financial penalties, applicable under Article 11a
of Regulation No 136/66/EEC.

agency' are replaced by ‘Producers’ organisations shall
notify the information in the second subparagraph to
the control agency or,
in the absence of such as
agency, to the competent body in the Member State.;

In the case of irregularities other than those referred
2.
to in paragraph 3, Member States may decide not to
withdraw approval and to apply a different penalty if the
mill, when an infringement of the conditions for approval
is first found, implements the measures needed to rectify
that infringement within a time period to be laid down by
the Member State and in any case not more than 90 days.
That deadline shall be notified to the party concerned no
later than 45 days after an infringement is first found.

irregularities

3.
In the case of the penalties referred to in paragraph
1, approval shall be withdrawn from a mill for a period of
between one and five marketing years if the Member State
substantial difference
finds
between the quantities of olives pressed or oil produced
and the quantities shown in the stock records, or inade-
quacy in the stock records or in the communication
thereof.

including a

The irregularities referred to in the first subparagraph shall
be considered to exist where one of the following condi-
tions is found:

(a) a difference involving an increase of more than 25 %
or 30 tonnes of oil between the total quantity of olive
oil declared since the beginning of the marketing year
and the quantity based on:

— plant capacity,

— energy use or workforce capacity,

— the quantities of olives entering the mill and the

quantities pressed,

— the quantities and, where necessary, the composi-

tion of olive residue obtained,

— or the actual stocks of olives, oils or residues;

(b) the existence, based on an analysis of the samples
referred to in Article 8(a), of oils that do not comply
with the characteristics of virgin olive oils set out in
point 1 of the Annex to Regulation No 136/66/EEC;

(c) a delay between December and April of the same

marketing year of more than:

(b) the following paragraph 3 is added:

‘3.
In the absence of the declaration of the quant-
ities for each destination and the statement of the
stock situation referred to in paragraph 1, the Member
State concerned shall apply an appropriate penalty.’

7. Article 11 is replaced by the following:

‘Article 11

1.
Producer Member States shall notify the Commis-
sion, no later than the 10th day of the second month
following the month in question, of the aggregate quantity
of olive oil produced since the start of the marketing year,
based on the aggregate of the mills' monthly statements.

At the request of a mill whose approval has been
2.
withdrawn, the Member State may grant approval under
the special control arrangements on the conditions laid
down by Article 13(6) of Regulation (EEC) No 2261/84.
Those conditions shall be fulfilled only where the olive oil
production of the mill concerned during the period from
November to March inclusive is higher than the available
processing capacity in that period in the previous
marketing year of other mills in the same NUTS level III
region as the mill in question or on an island forming part
of a NUTS level III region.

The Member State concerned shall present to the Commis-
sion no later than the second month following withdrawal,
an application from the mill for approval under the special
control arrangements specifying the reasons and the type
of controls it undertakes to apply to the mill concerned. If
the Commission fails to deliver an opinion within 45 days,
the application shall be considered to have been accepted.

In the case of approval withdrawn between 1 August and
31 March, at the request of the mill concerned and where
production fulfils the conditions referred to in the first
temporary
subparagraph,
approval under its proposed special control arrangements,
until expiry of the deadline laid down by the Commission
in the second subparagraph.’

the Member State may grant

— 20 days in the case of transmission of the monthly

statements referred to in Article 8(b).

8. In Article 12(5), the date ‘1 September’ is replaced by ‘5

September’.

However, the minimum value of the difference referred to
in point a shall be 50 tonnes for mills with a capacity of
more than 5 tonnes per working day of eight hours or an
annual capacity of more than 500 tonnes.’

9. In Article 14(4), the date ‘1 April’ is replaced by ‘15 May’.

10. In Article 16:

6. In Article 10:

(a) in the third subparagraph of paragraph 1, the words
‘Producers’ organisations shall notify the information
in the second subparagraph to the competent body in
the Member State, or where appropriate the control

(a) The first paragraph is replaced by the following:

‘1. Without prejudice to paragraph 2, subject to the
results of the checks carried out, the Member States
shall pay the advance referred to in Article 12 of
Regulation (EEC) No 2261/84 from 16 October of
each marketing year.’;

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(b) the second paragraph is replaced by the following:

(c) Paragraph 2 becomes paragraph 3.

Payment of at least 25 % of the advance shall be

‘2.
deferred in the case of:

(a) producers who lodge an aid application for

production:

— that is more than twice the quantity resulting
from the application to the number of olive
trees declared of the average yield of the homo-
geneous zone in which the holding is mostly
located,

— that comes mainly from a homogeneous zone
for which aid applications correspond to total
production exceeding by more than 30 % the
quantity resulting from the application of the
average yield for the zone to the number of
olive trees on the holdings which are mostly
located in that zone;

(b) producers whose production comes mainly from
mills for which it has been proposed that approval
be withdrawn for a period of between one and five
years.

The margins by which the quantities resulting from
average yields are exceeded, as referred to in point a,
may be adjusted up or down by about 20 % by the
Member States before 15 October of each marketing
year taking account of the yields of the regional area.

following the

Payment of the advance shall be suspended until 1
the marketing year
end of
April
concerned in the cases referred to in point a, or until a
decision is taken on the proposals as referred to in
point b. However, Member States may decide not to
suspend payment of the advance or to reduce the
period of suspension in cases where an additional
analysis provides objective proof of the yield given in
the declarations of the party concerned.’

11. The following paragraph 4 is added to Article 30:

‘4.
A mill shall be subject
referred to in Article 8(d) where:

to the additional checks

(a) checks are unable to verify the mill's declarations in
numerous cases or where significant volumes are
concerned, and in particular where the majority of the
checks carried out pursuant to paragraph 3 do not
provide any proof of delivery of the quantities of olive
oil declared by the mill

in question;

(b) these are justified by the irregularities for which penal-
ties are sought, particularly where a proposal to with-
draw approval for between one and five marketing
years is involved;

(c) approval has been granted under the special control
arrangements referred to in Article 13(6) of Regulation
(EEC) No 2261/84;

(d) at least 25 % of the total production of the mill

is
received from producers referred to in Article 16(2)(a),
except where an additional analysis provides objective
proof to the satisfaction of the Member State.

The additional checks shall apply from the second month
following the month of the checks in question, and at least
until the end of the following marketing year or, where
appropriate, until the Member State decides on a proposed
penalty.’

12. The following text is added to the second paragraph of

Article 32:

‘In particular, the Member States shall notify the Commis-
sion in the course of the month preceding the start of each
marketing year of
in force
providing for penalties for each case of irregularity.’

the national provisions

Article 2

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

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

Done at Brussels, 30 March 2001.

For the Commission

Franz FISCHLER

Member of the Commission