Council Regulation (EC) No 1454/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Canary Islands and repealing Regulation (EEC) No 1601/92 (Poseican)
Date: 2001-06-28
Institutions: Council of the European Union
Subjects: Canary Islands, agricultural product, aid to agriculture, peripheral region, regional aid, supply

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Official Journal of the European Communities

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COUNCIL REGULATION (EC) No 1454/2001

of 28 June 2001

introducing specific measures for certain agricultural products for the Canary Islands and
repealing Regulation (EEC) No 1601/92 (Poseican)

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 (1),

Whereas:

for

further

human

products

consumption,

for
essential
In addition,
inputs.
processing and as agricultural
insularity and
objective factors arising as a result of
outermost
constraints on
location impose
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
outermost
from their
location.

remoteness,

insularity

and

(1)

(2)

their

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

full application of

(Poseican)

the outermost

the Canary Islands

regions. The purpose of

By Decision 91/314/EEC (3)
the Council adopted a
specific to the remote and
programme of options
insular nature of
in
accordance with the Community’s policy of assistance
the
for
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
The
geographically
programme calls for the CAP to be applied in that
region and provides for special measures to be adopted,
in particular
in which
agricultural products are produced and marketed there
exceptional
and
geographical
since
recognised in Article 299(2) of the Treaty.

to improve the conditions

its
constraints

the
situation

effects
and

economically

to mitigate

isolated.

and

of

as

(3)

The particular geographical
the Canary
Islands imposes additional transport costs in supplying

situation of

(1) Opinion delivered on 14 June 2001 (not yet published in the

Official Journal).

(2) Council Regulation (EEC) No 1911/91 of 26 June 1991 on the
application of the provisions of Community law to the Canary
Islands (OJ L 171, 29.6.1991, p. 1). Regulation as last amended by
Regulation (EC) No 1105/2001 (OJ L 151, 7.6.2001, p. 1).

(3) OJ L 171, 29.6.1991, p. 5.

(4)

(5)

(6)

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. To
take account of their origin and the customs treatment
accorded to them under the Community provisions,
products which have entered the Community’s customs
processing
territory
customs
inward
under
warehousing arrangements
should be considered as
direct imports, for the purpose of granting the benefits
of the specific supply arrangements.

or

remoteness,

insularity and outermost

In order to achieve the goal of lowering prices in the
Canary Islands and mitigating the additional costs of
their
location
while maintaining the competitiveness of Community
products, aid should be granted for the supply to these
islands of products of Community origin. Such aid
should 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 and outermost location.

functioning of

the internal market.

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
In
addition, the economic advantages of the specific supply
arrangements should not provoke deflections of trade in
the
or
from the Canary
re-exportation of
Islands should therefore be prohibited. However,
it is
possible to re-export products in their unprocessed state
or products resulting from local packaging of such
products under certain conditions, so as to permit
regional trade. In the case of processing, this prohibition

concerned.
those products

Re-dispatching

products

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should
not
consignments.

apply

to

traditional

exports

and

enabled the sector to adapt to changing consumption
habits. The level of self-sufficiency is still very low, so
the measure should be continued.

(7)

(8)

the

specific

economic

advantages of

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

of

and

farming

activities

involving

particular

conditions

to take account of

local consumption requirements

should be
Traditional
livestock
supported in order to help meet
local consumption
needs. To that end, derogations are needed from some
of the provisions of the common market organisations
the
which restrict production,
development
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
the purchase of pure-bred
breeding animals, by purchasing commercial breeds
more suited to local conditions and by supplementing
the suckler cow premium and the slaughter premium.
The estimate of
is
drawn up in a periodic balance. To ensure that
Community support can be mobilised effectively, a
comprehensive programme to support local activities in
the livestock and milk products sectors should enable
the
implement
concerned
strategies tailored to the local context
for economic
development, spatial organisation of production and
increasing the professionalism of producers. Pending the
development of local livestock farming, this programme
may include temporary provision for the supply of male
animals for fattening, the number of such animals to be
supplied each year being limited so as not
to
compromise the abovementioned objective. It may also
provide for measures 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
improve the quality of milk
fragmentation of supply,
and assist diversification.

to define

sectors

and

(9)

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.

(11)

(12)

(13)

The area aid scheme for fruit and edible vegetables,
flowers and live plants has proved
roots and tubers,
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 requirements of consumers
and new distribution channels, improve the productivity
farms and upgrade the quality of products. The
of
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.

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
terrain and small size of
altitude where the difficult
holdings (terrace cultivation),
together with the high
prices 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 islands’ consumption patterns. Abolition of
the temporary measure restricting the deliveries of
for human consumption during sensitive
potatoes
periods for the marketing of local production has left
the sector very vulnerable.
It is therefore planned to
grant aid for local marketing of this potato production.

It is economically and environmentally imperative that
the most widespread crop, continue to be
vines,
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 the cultivation of vines for
producing quality wines produced in specified regions.
Likewise, neither abandonment premiums nor market
crisis
mechanisms
distillation which may
is
exceptionally disrupted as a result of quality problems.

apply, with the
apply

exception of
if

the market

(10) 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

(14)

importance on the
Tobacco growing is of historical
islands. Economically speaking,
tobacco preparation
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

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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 maintained with a view to supporting the
artisanal activity associated with it.
to
maintain the manufacture of tobacco products, imports
into the Canary Islands of raw and semi-manufactured
tobacco should continue to be exempt from customs
limit of 20 000 tonnes of
duty, up to an annual
stripped raw tobacco equivalent.

In addition,

(21)

(15)

Traditional honey 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 danger of dying
to be replaced by breeds which will be more
out,
profitable
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.

to beekeepers. The

(16) Agricultural producers in the Canary Islands should be
and
the
encouraged
to supply
marketing of these should be assisted;
in this respect,
using the Community’s graphic symbol might help
achieve this purpose.

quality products

(17)

Regulation (EC) No 1257/1999 (1)
lays down rural
development measures that may be granted Community
support and sets out the conditions for obtaining such
support.

(18)

This Regulation seeks to remedy the handicaps due to
the remote and insular nature of that region.

(19)

(20)

structures of

The
certain agricultural holdings or
processing and marketing enterprises located in these
islands show serious shortcomings and are beset with
specific difficulties. Provision should accordingly be
made for derogations for certain types of investments
from the provisions limiting or preventing the grant of
some structural aid provided for in Regulation (EC) No
1257/1999.

The Community financial contribution for three of the
accompanying measures referred to in Article 35(1) of
Regulation (EC) No 1257/1999 may amount
in the
outermost regions to up to 85 % of the total eligible
cost. On the other hand, in accordance with the third
indent of the second subparagraph of Article 47(2) of
that Regulation, the Community financial contribution
for agri-environmental measures, which constitutes the

fourth accompanying measure, shall be limited to 75 %
In view of the
for all areas covered by Objective 1.
importance attributed to agri-environment within the
the
context of
development,
be
Community
in the
harmonised for all accompanying measures
outermost regions.

the
contribution

rate of
should

financial

rural

plan,

programme

Community

each
operational

to Article 14 of Regulation (EC) No
Pursuant
1260/1999 (2),
support
framework,
single
programming document is to cover a period of seven
years, and the programming period is to begin on 1
January 2000. In the interests of cohesiveness and to
avoid discrimination between beneficiaries of the same
programme,
in this
Regulation should, exceptionally, be applicable to the
whole programming period.

the derogations provided for

and

(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
agricultural 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,
insularity, outermost location, small area, mountainous
terrain and climate and their economic dependency on a
small number of products.

(23)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (3),

HAS ADOPTED THIS REGULATION:

Article 1

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

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,

(1) Council Regulation (EC) No 1257/1999 of 17 May 1999 on
from the European Agricultural
(OJ L 160, 26.6.1999,

support
for rural development
Guidance and Guarantee Fund (EAGGF)
p. 80).

(2) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying
down general provisions on the Structural Funds (OJ L 161,
26.6.1999, p. 1).

(3) OJ L 184, 17.7.1999, p. 23.

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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

of

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

products
if

covered

specific

the

by

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

To ensure coverage of the requirements established in
2.
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
case of
to non-member
exports
agricultural inputs and products intended for processing, the
additional costs of insularity and outermost location.

countries

in the

and,

In implementing the

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

specific

supply arrangements,

(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,

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

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

to the condition that

Entitlement under the specific supply arrangements shall
4.
be subject
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.

Products covered by the specific supply arrangements
countries or

5.
may not be
re-dispatched to the rest of the Community.

re-exported to non-member

However, products
in the unprocessed state or packaged
products resulting from local packaging of such products may
be re-exported to a non-member country in accordance with
the conditions
the
procedure referred to in Article 21(2).

laid down by the Commission under

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. No export refund shall be granted.

6.
Detailed rules for applying this Title shall be adopted in
accordance with the procedure referred to in Article 21(2).
These shall include:

(cid:151) the fixing of aid for

supply from the rest of

the

Community,

(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.

The Commission shall draw up supply balances in accordance
with the procedure referred to in Article 21(2). It may revise
in
those balances, and the list of products
accordance with the same procedure, in the light of changes in
the Canary Islands’ requirements.

in Annex I,

TITLE II

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 pure-bred animals, animals of
commercial breeds and livestock products, originating in the
Community.

in particular, of
for

The terms for granting aid shall be laid down taking
2.
the supply requirements of
the
account,
Canary Islands
starting up production and genetic
improvement of livestock and the need for the breeds best
suited to local conditions. The aid shall be paid for the 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,

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(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

non-member countries,

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

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

4.
aid under paragraph 1 of this Article.

5.
The list of products, the level of the aid referred to in
paragraph 1 of this Article and the detailed rules for applying
this Article shall be adopted in accordance with the procedure
referred to in Article 21(2).

shall not apply in the Canary Islands in the case of the special
the slaughter
premium,
premium or
referred to in
paragraphs 2 and 3 of this Article.

the basic suckler cow premium,
the supplementary premiums

5.
The basic and supplementary premiums referred to in
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 21(2).
They shall cover drawing up the balances referred to in
paragraph 1 of this Article and any reviews to take account of
changing requirements and:

Article 5

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

they shall provide for:

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.

(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,

The balance shall also take account of breeding animals
supplied under Article 4 and animals covered by the measures
provided for in the third subparagraph of Article 7(1).

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

2.
A supplement to the slaughter premium provided for
under Article 11 of Regulation (EC) No 1254/1999 (1), of EUR
25 per head, shall be paid to producers for each animal
slaughtered.

3.
A supplement to the premium for maintaining suckler
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 special premium;

(b) the individual ceiling for animals kept on the holding as
laid down in Article 6 of Regulation (EC) No 1254/1999
as regards the basic suckler cow premium;

(c)

the national ceiling laid down under Article 11 of
Regulation (EC) No 1254/1999 as
the basic
slaughter premium;

regards

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

laid
down in Article 12 of Regulation (EC) No 1254/1999, as
regards the special premium and the basic suckler cow
premium,

(1) Council Regulation (EC) No 1254/1999 of 17 May 1999 on the
common organisation of the market in beef and veal (OJ L 160,
26.6.1999, p. 21).

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

(cid:151) shall

include provisions to guarantee,

to the extent
necessary, the rights of producers to whom a premium
has been granted under Article 6 of Regulation (EC)
No 1254/1999,

(cid:151) may provide for the establishment of a specific reserve
for
for
the Canary Islands and special conditions
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 ceiling set
in paragraph 5 and the number of
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 (2), 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.

(2) Commission Regulation (EC) No 2342/1999 of 28 October 1999
laying down detailed rules
application of Council
for
Regulation (EC) No 1254/1999 on the common organisation of
in beef and veal as regards premium schemes (OJ
the market
L 281, 4.11.1999, p. 30). Regulation as
last amended by
Commission Regulation (EC) No 192/2001 (OJ L 29, 31.1.2001,
p. 27).

the

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

ceilings

fixed in

Article 6

1.
A supplementary premium shall be granted, in addition
to the ewe premium payable under Article 5(3) of Regulation
(EC) No 2467/98 (1), to producers of light lambs as defined in
Article 4(3) of that Regulation.

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 light lambs, respectively, plus the difference between the
amounts of the specific aids for rural measures referred to in
the first and second indents of Article 1(1) of Regulation (EEC)
No 1323/90 (2).

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

3.
The premiums referred to in paragraphs 1 and 2 of this
Article 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.

Detailed rules for applying this Article shall be adopted
4.
as necessary in accordance with the procedure referred to in
Article 21(2).

Article 7

maintain traditional beef production, and within the limit of
the balance provided for under Article 5. Priority for such
animals
for
fattening at least 50 % of which are of local origin.

shall be given to producers holding animals

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, pursuant to Articles 5,
6 and 8.

The detailed rules for applying this Article shall be fixed

2.
in accordance with the procedure referred to in Article 21(2).

Draft programmes, to run for no more than five years, shall be
presented to the Commission by the competent authorities.
The Commission shall approve them in accordance with the
procedure referred to in Article 21(2).

Each year the Spanish authorities shall present a report
3.
on implementation of the programme. Before the end of 2005,
the Commission shall submit to the European Parliament and
to the Council an evaluation report on the application of the
measure referred to in this Article, accompanied if applicable
by appropriate proposals.

Article 8

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

1.
During the period from 2002 to 2006, aid shall be
granted to implement in the Canary Islands a comprehensive
programme to support the production and marketing of local
produce in the livestock and milk products sectors.

The Commission shall review the aid referred to in
2.
paragraph 1 of
this Article and adopt detailed rules for
applying this Article in accordance with the procedure referred
to in Article 21(2). Payment shall be subject to the benefit
derived therefrom being actually passed on to the consumer.

This programme may include measures such as incentives to
improve quality and hygiene,
the marketing of quality
products, sector structuring, the rationalisation of production
and marketing structures providing for grouped purchases,
local communication relating to quality products and the
provision of technical assistance.

In the beef and veal sector the programme may include the
possibility of a supply of male animals for fattening until the
local numbers of young male bovines reach a level sufficient to

(1) Council Regulation (EC) No 2467/98 of 3 November 1998 on the
common organisation of the market in sheepmeat and goatmeat
(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).

(2) Council Regulation (EEC) No 1323/90 of 14 May 1990 instituting
specific aid for sheep and goat farming in certain less-favoured
areas of the Community (OJ L 132, 23.5.1990, p. 17). Regulation
last amended by Regulation (EC) No 193/98 (OJ L 20, 27.1.1998,
p. 18).

CHAPTER II

FRUIT, VEGETABLES, PLANTS AND FLOWERS

Article 9

Aid shall be granted for the fruits, edible vegetables,
1.
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.

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Grant of the aid shall be subject to the conclusion of supply
lasting one or more years between individual
contracts
producers, producer groups or producer organisations as
referred to in Articles 11, 13 and 14 of Regulation (EC) No
2200/96 (1) and the food industry or distributors, restaurants
and the like or local authorities.

The aid shall be paid out to the abovementioned individual
producers, producer groups 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 or not the beneficiary is
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 50 harvested
from 1 January to 31 March.

2.
Detailed rules for applying this Article shall be adopted
in accordance with the procedure referred to in Article 21(2).
The product categories and amounts of aid referred to in
paragraph 1 shall be fixed in accordance with the same
procedure.

Article 10

the conclusion of annual
1.
Aid shall be granted for
fresh and processed
contracts concerning the marketing of
products as specified in Article 9 and medicinal plants falling
within CN code 1211, which are harvested in the Canary
Islands. This aid shall also be granted for tomatoes falling
within CN code 0702 00 on the terms laid down in the third
subparagraph of paragraph 2 of this Article.

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.

However, for tomatoes falling within CN code 0702 00 the
amount of the aid shall be EUR 0,76/100 kg up to a limit of
300 000 tonnes per year.

(1) Council Regulation (EC) No 2200/96 of 28 October 1996 on the
common organisation of the market in fruit and vegetables (OJ L
297, 20.11.1996, p. 1). Regulation last amended by Commission
Regulation (EC) No 2826/2000 (OJ L 328, 23.12.2000, p. 2).

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

the Canary Islands products under

3.
market
referred to in paragraph 1.

the products

4. Where marketing of
referred to in
paragraph 1 of this Article 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 natural or legal persons
the Community, and where the
established in the rest of
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
the annual production
the value of
increased to 13 % of
marketed jointly.

Detailed rules for applying this Article shall be adopted

5.
in accordance with the procedure referred to in Article 21(2).

Article 11

1.
The Community shall contribute up to a maximum of
EUR 100 000 towards the financing of an economic analysis
and forward study of
the fresh and processed fruit and
in the Canary Islands, paying particular
vegetable sector
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
development and sales at regional and international
level,
having regard to competition on the world market.

Detailed rules for applying this Article shall be adopted

2.
in accordance with the procedure referred to in Article 21(2).

CHAPTER III

WINE

Article 12

and Chapter

Chapter II of Title II and Title III of Regulation (EC) No
1493/1999 (2)
III of Regulation (EC) No
1227/2000 (3), as regards production potential shall not apply
to the Canary Islands, except for the crisis distillation referred
to in Article 30 of Regulation (EC) No 1493/1999, if there is
exceptional market disturbance caused by problems of quality.

(2) Council Regulation (EC) No 1493/1999 of 17 May 1999 on the
common organisation of the market in wine (OJ L 179, 14.7.1999,
last amended by Regulation (EC) No
p. 1). Regulation as
2826/2000 (OJ L 328, 23.12.2000, p. 2).

(3) Commission Regulation (EC) No 1227/2000 of 31 May 2000
laying down detailed rules
application of Council
for
Regulation (EC) No 1493/1999 on the common organisation of
the market in wine (OJ L 143, 16.6.2000, p. 1).

the

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Article 13

aid may not result in discrimination between producers in the
islands.

Aid per hectare shall be granted for

1.
the continued
cultivation 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

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(I) to Regulation (EC) No 1493/1999.

lower

The amount of the aid shall be EUR 476,76 per hectare
2.
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 managed in accordance with rules to be laid down in
accordance with the procedure referred to in Article 21(2).

3.
Detailed rules for applying this Article shall be adopted
as necessary in accordance with the procedure referred to in
Article 21(2).

CHAPTER IV

POTATOES

Article 14

1.
Aid per hectare shall be granted for the cultivation of
potatoes for human consumption falling within CN codes
0701 90 50 and 0701 90 90.

2.

The amount of the aid shall be EUR 596 per 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

3.
in accordance with the procedure referred to in Article 21(2).

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 16

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,

and the following 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
supports, in reels for the manufacture of tobacco,

for cigars presented on

(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 tobacco
for the manufacture of cigarettes, cigars, 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.

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

2.
in accordance with the procedure referred to in Article 21(2).

CHAPTER V

TOBACCO

Article 15

CHAPTER VI

HONEY

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 (1). The grant of this

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

(1) Council Regulation (EEC) No 2075/92 of 30 June 1992 on the
common organisation of the market in raw tobacco (OJ L 215,
30.7.1992, p. 70). Regulation as last amended by Regulation (EC)
No 1336/2000 (OJ L 154, 27.6.2000, p. 2).

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.

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

this Article,

Detailed rules for applying this Article shall be adopted
2.
as necessary in accordance with the procedure referred to in
Article 21(2).

CHAPTER VII

GRAPHIC SYMBOL

Article 18

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 outermost regions, shall be
proposed by the professional organisations. The Spanish
authorities shall forward such proposals, with their opinion, to
the Commission for approval.

the

Notwithstanding

3.
second
third
subparagraph of Article 47(2) of Regulation (EC) No
1257/1999,
the
agri-environmental measures provided for in Articles 22, 23
and 24 of that Regulation shall be 85 %.

contribution

Community

indent

the

the

to

of

4.
A summary description of the measures planned under
this Article shall be included in the operational programmes
for that region referred to in Article 18 of Regulation (EC) No
1260/1999.

TITLE IV

GENERAL AND FINAL PROVISIONS

Article 20

The measures necessary for
Regulation shall
management procedure referred to in Article 21(2).

this
in accordance with the

the implementation of

adopted

be

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

Article 21

2.
Detailed rules for applying this Article shall be adopted
as necessary in accordance with the procedure referred to in
Article 21(2).

TITLE III

STRUCTURAL DEROGATIONS

Article 19

the total value of

Notwithstanding Article 7 of Regulation (EC) No
1.
1257/1999,
the aid, expressed as a
percentage of the volume of eligible investments, shall not
exceed 75 % for
to
towards
encourage diversification,
sustainable
small
economic size to be defined in the programme complement
referred to in Article 18(3) of Regulation (EC) No 1260/1999.

agriculture on agricultural holdings of

restructuring or a shift

intended in particular

investments

investments

the total value of

Notwithstanding Article 28(2) of Regulation (EC) No
2.
1257/1999,
the aid, expressed as a
percentage of the volume of eligible investments, shall not
exceed 65 % for
engaged in
processing and marketing agricultural products consisting
local produce in sectors to be defined in the
mainly of
programme complement
referred to in Article 18(3) of
Regulation (EC) No 1260/1999. The total value of the aid for
small
same
and medium-sized
conditions, shall not exceed 75 %.

in enterprises

enterprises,

under

the

1.
The Commission shall be assisted by the Management
Committee for Cereals established by Article 22 of Regulation
(EEC) No 1766/92 (1), or by the management committees
established by
common
organisation of the markets for the products concerned.

regulations on the

the other

In the case of agricultural products covered by Regulation
(EEC) No 827/68 (2) 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 Regulation (EEC) No 1696/71 (3).

In the case of the graphic symbol and other cases provided for
in this Regulation, the Commission shall be assisted by the
and Vegetables
Fresh Fruit
Management Committee
established by Regulation (EC) No 2200/96.

for

For the purposes of implementing Title III, the Commission
shall be assisted by the Committee on the Development and
Conversion of Regions and the Committee on Agricultural

(1) Council Regulation (EEC) No 1766/92 of 30 June 1992 on the
(OJ L 181,
the market
common organisation of
1.7.1992, p. 21). Regulation last amended by Regulation (EC) No
1666/2000 (OJ L 193, 29.7.2000, p. 1).

in cereals

(2) Regulation (EEC) No 827/68 of the Council of 28 June 1968 on
the common organisation of the market in certain products listed
in Annex II to the Treaty (OJ L 151, 30.6.1968, p. 16). Regulation
as last amended by Commission Regulation (EC) No 3290/94 (OJ L
349, 31.12.1994, p. 105).

(3) Council Regulation (EEC) No 1696/71 of 26 July 1971 on the
common organisation of the market in hops (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).

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Structures and Rural Development, established by Article 48
and by Article 50 respectively of Regulation (EC) No
1260/1999.

2. Where reference is made to this paragraph, Articles 4
and 7 of Decision 1999/468/EC shall apply.

The period provided for
1999/468/EC shall be one month.

in Article 4(3) of Decision

3.

The Committees shall adopt their rules of procedure.

Article 22

For the agricultural products covered by Annex I to the Treaty,
to which Articles 87, 88 and 89 thereof
the
Commission may authorise operating aid in the sectors
producing, processing and marketing those products, with a
view to mitigating the specific constraints on farming in the
Canary Islands as a result of their remoteness, insularity and
outermost location.

apply,

Article 23

The measures provided for in this Regulation, except
for
Article 19, shall constitute intervention intended to stabilise
the agricultural markets within the meaning of Article 2(2) of
Regulation (EC) No 1258/1999 (1).

Article 24

The Member States shall take the measures necessary to ensure
regards
compliance with this Regulation,
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 21(2).

Article 25

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

2.
No later than at the end of the fifth year of application
of the system the Commission shall submit a general report to
Parliament and the Council showing the impact of the action
taken under this Regulation, accompanied if applicable by
appropriate proposals.

Article 26

(EEC) No

1601/92 (2)
Regulation
repealed.
References to Regulation (EEC) No 1601/92 shall be construed
to this Regulation and should be read in
as
accordance with the correlation table in Annex II.

references

hereby

is

Article 27

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

Article 19 shall apply as from 1 January 2000.

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

Done at Luxembourg, 28 June 2001.

For the Council

The President

B. ROSENGREN

(1) 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).

(2) Council Regulation (EEC) No 1601/92 of 15 June 1992 concerning
specific measures for the Canary Islands with regard to certain
agricultural products (OJ L 173, 27.6.1992, p. 13). Regulation as
last amended by Regulation (EC) No 2826/2000 (OJ L 328,
23.12.2000, p. 2).

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List of products covered by the specific supply arrangements provided for in Article 3

ANNEX I

Description

CN code

Cereals and cereal products intended for human
consumption and animal feed

Malt

Hops

Rice

Vegetable oil

Sugar

1107

1210

1006

ex 1507 to 1516

1701 and 1702 (except isoglucose)

Concentrated fruit juices (raw materials) other than those
eligible under Article 9 of this Regulation

2007 99 and 2008

Fresh or chilled beef and veal

Frozen beef and veal

Frozen pigmeat

Frozen poultrymeat

Dried eggs (for the food industry)

Seed potatoes

Milk and milk products

Liquid milk

Concentrated or powdered milk

Butter

Cheese

Milk-based preparations for children

Not containing animal fat

Lucerne (alfalfa) meal and pellets

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

0201

0202

0203 21, 22, 29

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

0408

0701 10 00

0401

0402

0405

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

2106 90 91

1901 90 90

1214 10 00

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 1

Article 2

First subparagraph of Article 3(1)

Second subparagraph of Article 3(1)

Article 3(2)

Article 3(3)

Article 4

Article 7(1), third subparagraph

Article 16

Article 3(4)

First subparagraph of Article 3(5)

Second subparagraph of Article 3(5)

Third subparagraph of Article 3(5)

Article 3(6)

Third subparagraph of Article 3(5)

Article 5(1)

Deleted

Article 5(2)

Article 5(3)

Article 5(4)

Article 5(5)

Article 5(6)

Article 8

Deleted

Article 6

Article 7

Deleted

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Deleted

Deleted

Article 15

Article 17

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Regulation (EEC) No 1601/92

This Regulation

Article 25

Article 26

Article 27

Article 28

Article 29

Article 30

Article 31

Annex

Deleted

Article 18

Article 19

Deleted

Article 20

Article 21

Article 22

Article 23

Article 24

Article 25

Article 26

Article 27

Annex I

Annex II