Commission Regulation (EC) No 20/2002 of 28 December 2001 laying down detailed rules for implementing the specific supply arrangements for the outermost regions introduced by Council Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No 1454/2001
Date: 2001-12-28
Institutions: European Commission
Subjects: EU aid, import licence, peripheral region, supply, supply balance sheet, tariff reduction

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I

(Acts whose publication is obligatory)

COMMISSION REGULATION (EC) No 20/2002

of 28 December 2001

laying down detailed rules for implementing the specific supply arrangements for the outermost
regions introduced by Council Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No
1454/2001

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

for

Having regard to Council Regulation (EC) No 1452/2001 of 28
June 2001 introducing specific measures for certain agricultural
products
the French overseas departments, amending
Directive 72/462/EEC and repealing Regulations (EEC) No 525/
77 and (EEC) No 3763/91 (Poseidom) (1), and in particular the
second subparagraph of Article 3(5), Articles 3(6), 6(5), 7(2)
and 22 and the second paragraph of Article 26 thereof,

Having regard to Council Regulation (EC) No 1453/2001 of 28
June 2001 introducing specific measures for certain agricultural
products for the Azores and Madeira and repealing Regulation
(EEC) No 1600/92 (Poseima) (2), and in particular the second
subparagraph of Article 3(5), the first and second subpara-
graphs of Article 3(6), Articles 4(5), 12(2) and 34 and the
second paragraph of Article 38 thereof,

Having regard to 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) (3), and in particular
the second
subparagraph of Article 3(5), Articles 3(6) and 4(5), the first
subparagraph of Article 7(2), Article 20 and the second para-
graph of Article 24 thereof,

Whereas:

(1)

Commission Regulation (EEC) No 131/92 (4), as last
amended by Regulation (EC) No 1736/96 (5), Commis-
sion Regulation (EEC) No 1696/92 (6), as last amended
by Regulation (EEC) No 2596/93 (7), and Commission
Regulation (EC) No 2790/94 (8), as last amended by
Regulation (EC) No 1620/1999 (9),
down
common detailed rules for implementing the specific

laying

(1) OJ L 198, 21.7.2001, p. 11.
(2) OJ L 198, 21.7.2001, p. 26.
(3) OJ L 198, 21.7.2001, p. 45.
(4) OJ L 15, 22.1.1992, p. 13.
(5) OJ L 255, 6.9.1996, p. 3.
(6) OJ L 179, 1.7.1992, p. 6.
(7) OJ L 238, 23.9.1993, p. 24.
(8) OJ L 296, 17.11.1994, p. 23.
(9) OJ L 192, 24.7.1999, p. 19.

arrangements for the supply of certain agricultural prod-
ucts to the French overseas departments, the Azores and
Madeira and the Canary Islands, respectively, have been
amended several times. Moreover, in view of the amend-
ments made by Regulations (EC) Nos 1452/2001, 1453/
2001 and 1454/2001 and of experience gained, in order
to simplify the legislation, the three implementing Regu-
lations should be recast in a single Regulation.

Detailed implementing rules should be laid down for
drawing up and amending the forecast supply balances
for products eligible under the specific supply arrange-
ments.

Certain agricultural products which are exempt from
import duties already require an import licence. In the
interests of administrative simplification,
the import
licence should be used to support the arrangements for
exemption from import duties.

A document should also be adopted to support the
arrangements for exemption from import duties for
other agricultural products which do not require an
import licence. An exemption certificate, drawn up on
this
the import
purpose.

should be used for

licence form,

Detailed rules should be laid down for fixing the amount
of aid for the supply of products from the Community
under
the specific supply arrangements. Such rules
should take account of the additional costs of supply to
the outermost regions due to their remote and insular
nature, which constitute a burden that severely handi-
caps them. In order to maintain the competitiveness of
Community products, this aid should take account of
the prices applied to exports.

(2)

(3)

(4)

(5)

(6)

The aid scheme for Community products may be admin-
istered using the import licence form, hereinafter called
the ‘aid certificate’, as an administrative support.

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the specific supply arrangements
Administration of
requires detailed rules on the issue of the above docu-
ment which derogate from the normal rules applicable
to import licences under Commission Regulation (EC)
No 1291/2000 of 9 June 2000 laying down common
detailed rules for the application of the system of import
and export licences and advance fixing certificates for
agricultural products (1).

(13)

L 8/2

(7)

(8)

(9)

(10)

firstly,

Administration of the specific supply arrangements has
to ensure the rapid issue of
two objectives:
licences and certificates,
in particular by no longer
requiring a security to be lodged beforehand in all cases,
the aid for supplies of
and the rapid payment of
Community products. The second objective is to ensure
the control and monitoring of operations and to provide
the administrative authorities with the instruments they
need to ascertain whether the objectives of the scheme
are being attained — these being, in particular, to ensure
a regular supply of certain agricultural products and to
offset the effects of the geographical situation of outer-
most regions by ensuring that the benefits of the scheme
are actually passed on to the stage at which the products
destined for the end users are placed on the market.

One of the above instruments consists of registering
traders pursuing an economic activity in the context of
the specific supply arrangements. Registered traders are
entitled to the benefits of the scheme, provided they
meet the obligations laid down in the Community and
national rules. Applicants should be entitled to registra-
tion provided that they meet a certain number of objec-
tive requirements designed to facilitate administration of
the scheme.

The detailed rules for administering the scheme must
ensure that,
for the quantities fixed in the forecast
supply balance provided for in Regulations (EC) Nos
1452/2001, 1453/2001 and 1454/2001,
registered
traders obtain a licence or certificate for the products
and quantities involved in the commercial transactions
which they carry out on their own account, by
presenting documents certifying that the operation is
genuine and the application for a licence or certificate is
in order.

(11) Monitoring of operations qualifying under the scheme
requires, inter alia, the period of validity of licences and
certificates to be suited to the requirements of air or sea
transport, proof to be furnished that the supply opera-
tion covered by the licence or certificate has been carried
out in a short time-span, and the transfer of the rights
and obligations conferred on the holder of the docu-
ment in question to be prohibited.

therefore needed to ensure that the benefits are actually
passed on.

redispatched to the rest of

(EC) Nos 1452/2001, 1453/2001 and
Regulations
1454/2001 stipulate that products benefiting from the
specific supply arrangements may not be re-exported to
third countries or
the
Community. However, those Regulations provide for a
limited number of derogations to that principle, which
vary according to the region concerned. Detailed rules
should be laid down for checking how such derogations
are used. In particular, the quantities of processed prod-
ucts which may be the subject of traditional exports or
consignments from the Canary Islands, the Azores and
Madeira and of
from the
French overseas departments should be determined on
the basis of the average of exports and consignments
during 1989, 1990 and 1991, before the Poseican,
Poseima and Poseidom arrangements entered into force,
as established by the competent authorities. The condi-
tions for authorising re-exports to third countries of
unprocessed products or packaged products resulting
from local packaging of such products, as provided for
in Regulation (EC) No 1454/2001, should also be laid
down. Lastly, conditions
should be laid down for
authorising exports of products processed locally, as
provided for in Regulations (EC) Nos 1452/2001 and
1453/2001, with a view to encouraging regional trade.

traditional consignments

(14)

(15)

(16)

The import duty exemption arrangements for C sugar
supplies to the Azores and Madeira and to the Canary
Islands provided for in Commission Regulation (EEC) No
2177/92 (2) should continue to be applied during the
period referred to in Article 10(1) of Council Regulation
(EC) No 1260/2001 (3).

In order to protect consumers and the commercial inter-
ests of traders, products which are not of sound and fair
marketable quality no later than the time when they are
first placed on the market should not qualify for the
specific supply arrangements and appropriate steps
should be taken where this requirement is not met.

In the context of the partnership procedures in force for
the outermost regions, the competent authorities should
lay down the detailed administrative rules needed to
ensure the management and monitoring of the scheme.
Moreover, to ensure that the arrangements are properly
monitored, rules are needed to specify the checks to be
carried out. Administrative penalties
to ensure the
smooth functioning of
the mechanisms implemented
should therefore be defined.

(12)

The benefits granted in the form of exemption from
import duties and aid for Community products must be
passed on so that they are reflected in production costs
and in the prices paid by the end users. Checks are

(17)

In order to be able to assess how the arrangements are
being implemented, the competent authorities should be
required to make periodic communications
to the
Commission.

(1) OJ L 152, 24.6.2000, p. 1.

(2) OJ L 217, 31.7.1992, p. 71.
(3) OJ L 178, 30.6.2001, p. 1.

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(18)

The application of some of the provisions of this Regu-
lation should be delayed to allow the production of data
needed to fix the minimum level of the aid and, for the
French overseas departments and the Azores and
Madeira, to allow the French and Portuguese authorities
to comply with the new administrative requirements.

(19)

The measures laid down in this Regulation are in accord-
ance with the opinions of all the Management Commit-
tees concerned,

of Article 3(1) of Regulation (EC) No 1453/2001 and the first
subparagraph of Article 3(1) of Regulation (EC) No 1454/2001
subject to presentation of that licence.

The competent authorities shall issue import licences at
2.
the request of the parties concerned, subject to the limits of the
forecast supply balances.

HAS ADOPTED THIS REGULATION:

Licences shall be drawn up in accordance with the model set
out in Annex I to Regulation (EC) No 1291/2000.

CHAPTER I

GENERAL PROVISIONS

Article 1

Purpose

This Regulation lays down the detailed rules for implementing
the import duty exemption arrangements and the Community
supply arrangements for the French overseas departments, the
Azores and Madeira, and the Canary Islands in the context of
the forecast supply arrangements provided for in Article 2 of
Regulation (EC) No 1452/2001, Article 2 of Regulation (EC)
No 1453/2001 and Article 2 of Regulation (EC) No 1454/
2001 respectively.

Article 2

Definitions

For the purposes of this Regulation, the following definitions
shall apply:

(a) ‘outermost

regions’:

the regions referred to in Article
299(2) of the Treaty, each of the French overseas depart-
ments being considered as a separate outermost region;

Section 20 of import licence applications and import

3.
licences shall contain one of the following entries:

(a) in the French overseas departments:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products intended for use as agricultural

inputs’,

(iii) ‘bovine animals for fattening imported under Article

7(1) of Regulation (EC) No 1452/2001’;

(b) in the Azores and Madeira:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products for direct consumption’,

(iii) ‘products intended for use as agricultural

inputs’,

(iv) ‘bovine animals for fattening, imported under Article

12(1)(a) of Regulation (EC) No 1453/2001’;

(b) ‘competent authorities’: the authorities designated by the
Member State of which the outermost region concerned is
part.

(c) in the Canary Islands:

CHAPTER II

try’,

FORECAST SUPPLY BALANCES

(ii) ‘products for direct consumption’,

(i) ‘products for the processing and/or packaging indus-

Article 3

The forecast supply balances shall state the quantities needed to
meet the supply requirements of each outermost region every
calendar year. They may be amended to take account of the
actual state of their implementation and the local production
situation.

CHAPTER III

IMPORTS FROM THIRD COUNTRIES

SECTION 1

(iii) ‘products intended for use as agricultural

inputs’,

(iv) ‘bovine animals for fattening imported under the third
subparagraph of Article 7(1) of Regulation (EC) No
1454/2001’.

In all cases, section 20 of import licence applications and
import
‘exemption from
import duties’ and ‘licence to be used in [name of the outer-
most region]’.

licences shall contain the entries:

Imports of products subject to the presentation of an import
licence

Section 12 of import licences shall show the last day of

4.
validity.

Article 4

Import licences

1.
Products subject to the presentation of an import licence
shall be exempt from import duties as provided for in Article
3(1) of Regulation (EC) No 1452/2001, the first subparagraph

Import duties shall be levied on quantities which exceed
5.
those stated on the import
licence. The tolerance of 5 %
provided for in Article 8(4) of Regulation (EC) No 1291/2000
shall be allowed, provided that
the import duties relating
thereto are paid.

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SECTION 2

Imports of products not subject to the presentation of an
import licence

Article 5

Exemption certificates

1.
Products not subject to presentation of an import licence
shall be exempt from import duties as provided for in Article
3(1) of Regulation (EC) No 1452/2001, the first subparagraph
of Article 3(1) of Regulation (EC) No 1453/2001 and the first
subparagraph of Article 3(1) of Regulation (EC) No 1454/2001
subject to presentation of an exemption certificate.

2.
Exemption certificates shall be drawn up on the import
licence form set out in Annex I to Regulation (EC) No 1291/
2000.

Articles 8(5), 13, 15, 17, 18, 21, 23, 26, 27, 29 to 33 and 36
to 41 of Regulation (EC) No 1291/2000 shall apply, mutatis
mutandis, subject to this Regulation.

The words ‘exemption certificate’ shall be printed or

3.
stamped in the upper left-hand section of the certificate.

The competent authorities shall

4.
issue exemption certi-
ficates at the request of the parties concerned, subject to the
limits of the forecast supply balances.

Section 20 of exemption certificate applications and
the following

5.
exemption certificates shall contain one of
entries:

(a) in the French overseas departments:

(i) ‘products for the processing and/or packaging industry’,

(ii) ‘products intended for use as agricultural

inputs’;

(b) in the Azores and Madeira:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products for direct consumption’,

(iii) ‘products intended for use as agricultural

inputs’;

(c) in the Canary Islands:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products for direct consumption’,

(iii) ‘products intended for use as agricultural

inputs’.

In all cases, section 20 of exemption certificate applications
and exemption certificates shall contain the entries: ‘exemption
from import duties’ and ‘certificate to be used in [name of the
outermost region]’.

CHAPTER IV

COMMUNITY SUPPLY

Article 6

Fixing the aid

For the purposes of fixing the aid to compensate for remote-
ness, the Commission shall take account of the specific addi-
tional transport and intermediate reloading costs involved in
supplying goods to the outermost regions concerned.

location,

For the purposes of fixing the aid to compensate for insular
nature and outermost
take
account of
the specific additional costs involved in local
processing due to the small size of the market, the need to
guarantee security of supply and the specific quality require-
ments for goods in the outermost regions concerned.

the Commission shall

The Commission shall fix a flat-rate minimum level of aid.

Where the highest level of refund granted by the Commission
for exports of similar products is higher than the flat-rate
minimum aid referred to above, the aid granted shall not
exceed the amount of the said refunds.

No aid shall be granted for the supply of products which have
already benefited from the specific supply arrangements in
another outermost region.

Article 7

Aid certificates

Aid shall be paid on presentation of a fully-utilised aid

1.
certificate.

Presenting an aid certificate shall be tantamount to applying for
the aid. Except in cases of force majeure or climatic aberrations,
certificates must be presented within 30 days of the date on
which they are charged. Where that time limit is overrun, the
aid shall be reduced by 5 % per day of delay.

The aid shall be paid by the competent authorities not later
than sixty days after the date on which the utilised aid certifi-
cate is lodged, except:

(a) in cases of force majeure or climatic aberrations, or

(b) where

an administrative

enquiry has been opened
concerning entitlement to the aid. In such cases, payment
shall take place only when entitlement has been recognised.

Aid certificates shall be drawn up on the import licence
2.
form set out in Annex I to Regulation (EC) No 1291/2000.

Section 12 of exemption certificates shall show the last

6.
day of validity.

Articles 8(5), 13, 15, 17, 18, 21, 23, 26, 27, 29 to 33 and 36
to 41 of Regulation (EC) No 1291/2000 shall apply, mutatis
mutandis, subject to this Regulation.

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The words ‘aid certificate’ shall be printed or stamped in

3.
the upper left-hand section of the certificate.

For the purposes of Regulation (EC) No 1452/2001, ‘end

2.
user’ shall mean:

Sections 7 and 8 of the certificate shall be struck out.

Section 20 of aid certificate applications and aid certi-

4.
ficates shall contain one of the following entries:

(a) in the French overseas departments:

(i) ‘products for the processing and/or packaging industry’,

(ii) ‘products intended for use as agricultural

inputs’;

(b) in the Azores and Madeira:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products for direct consumption’,

(iii) ‘products intended for use as agricultural

inputs’,

(iv) ‘live animals for fattening,

introduced under Article

12(1)(b) of Regulation (EC) No 1453/2001’;

(c) in the Canary Islands:

(i) ‘products for the processing and/or packaging indus-

try’,

(ii) ‘products for direct consumption’,

(iii) ‘products intended for use as agricultural

inputs’,

(iv) ‘live animals for fattening, introduced under the third
subparagraph of Article 7(1) of Regulation (EC) No
1454/2001’.

For the purposes of this paragraph, pure-bred animals, animals
of commercial breeds and egg products shall be treated as
agricultural

inputs.

In all cases, section 20 of aid certificate applications and aid
‘certificate to be used in
certificates shall contain the entry:
[name of the outermost region]’.

Section 12 of aid certificates shall show the last day of

5.
validity.

6.
The amount of the aid applicable shall be that in force on
the day on which the application for the aid certificate is
lodged.

7.
The competent authorities shall issue aid certificates at
the request of the parties concerned, subject to the limits of the
forecast supply balances.

CHAPTER V

COMMON PROVISIONS

Article 8

Passing on the benefits to the end user

1.
For the purposes of Regulations (EC) Nos 1452/2001,
1453/2001 and 1454/2001, ‘benefit’ shall mean the exemption
from customs duty or the Community aid provided for in
those Regulations.

(a) in the case of products for the processing industry and

intended for human consumption:

(i) the final processor or packager, for the part of the aid
intended to compensate for remoteness, insularity and
outermost location,

(ii) the consumer,

for

the additional part of

the aid

intended to take account of export prices;

(b) in the case of products intended for use as agricultural
inputs, in particular products intended for use as animal
feed: the farmer.

For the purposes of Regulations (EC) Nos 1453/2001 and

3.
1454/2001,

‘end user’ shall mean:

(a) in the case of products

for direct consumption:

the

consumer.

(b) in the case of products for the processing and/or packaging

industry and intended for human consumption:

(i) the final processor or packager, for the part of the aid
intended to compensate for remoteness, insularity and
outermost location,

(ii) the consumer,

for

the additional part of

the aid

intended to take account of export prices;

(c) in the case of products for the processing and/or packaging
industry for use as animal feed and products for use as
agricultural

inputs: the farmer.

4.
The competent authorities shall take all appropriate steps
to check that the benefits derived from the exemption from
import duties or the grant of Community aid are actually
passed on to the end user. In doing so they may assess the
trading margins and prices applied by the various traders
concerned.

These measures, in particular the control points used to deter-
mine whether the benefits of the aid have been passed on, and
any amendments made, shall be notified to the Commission.

Article 9

Register of traders

Import licences, exemption certificates and aid certificates
1.
shall be issued only to traders entered in a register kept by the
competent authorities.

Any trader established in the Community may apply to

2.
be entered in the Register.

Entry in the register shall be subject to the following require-
ments:

(a) traders must possess

structures and legal
the means,
authorisations required to carry out their activities in the
sector concerned and must,
in particular, have duly
complied with the obligations imposed by the authorities
concerning business accounting and taxation;

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(b) traders must be able to guarantee that their activities are

carried out in the outermost region concerned;

of Article 315(1) and (2) of Commission Regulation (EEC)
No 2454/93 (1).

(c) in the context of the specific supply arrangements for the
outermost region concerned, and in compliance with the
objectives of those arrangements, traders shall undertake:

(i) to communicate to the competent authorities, at their
request, all relevant information about their commer-
cial activities, particularly regarding the prices and
profit margins they practise,

(ii) to operate exclusively in their own name and on their

own account,

(iii) to submit licence and certificate applications commen-
surate with their real capacity to dispose of the prod-
ucts concerned, such capacity being proven by refer-
ence to objective factors,

(iv) to refrain from acting in any way likely to create
artificial shortages of products and from marketing the
available products at artificially low prices,

(v) to ensure, to the satisfaction of the competent authori-
ties and when the agricultural products are disposed of
in the outermost region concerned, that the benefits
obtained are passed on to the end user.

3. When applying for registration as referred to in the first
subparagraph of paragraph 2, processors intending to export
or dispatch processed products obtained from raw materials
which entered the outermost region concerned under the rele-
vant specific supply arrangements in accordance with Articles
16, 17 and 19 must declare their intention to engage in this
activity and indicate the location of the processing plant.

For the purposes of the second subparagraph of Article
4.
3(5) of Regulation (EC) No 1454/2001, when applying for
registration as referred to in the first subparagraph of para-
graph 2 of this Article, traders intending to re-export unpro-
cessed products or products resulting from local packaging as
provided for in Article 20 of this Regulation must declare their
intention to engage in this activity and indicate the location of
the packaging plant where applicable.

Article 10

Documents to be presented by traders and validity of
licences and certificates

Subject

to Articles 4(2), 5(4), 7(7), 14 and 15,

the
1.
licence and certificate
competent authorities
shall accept
applications presented by traders
for each consignment,
provided that they are accompanied by the original or a certi-
fied copy of the purchase invoice and the original or a certified
copy of the following documents:

— the bill of lading or airway bill,

— the certificate of origin for products originating in third
countries or, for products originating in the Community,
the T2L document, or the T2LF document under the terms

The purchase invoice, bill of lading or airway bill must be
drawn up in the name of the applicant.

2.
The period of validity of licences and certificates shall be
fixed on the basis of transportation time. This time may be
extended by the competent authority in special cases where
serious and unforeseeable difficulties affect transportation time,
but may not exceed two months from the date on which the
licence or certificate was issued.

Article 11

Presentation of licences and certificates and goods and
non-transferability of licences and certificates

For products covered by the specific supply arrange-
1.
ments,
import licences, exemption certificates and aid certi-
ficates must be presented to the customs authorities with a
view to completing the customs formalities within no more
than 15 working days from the date of unloading of the goods.
The competent authorities may reduce this maximum time.

In the case of products which have been the subject of inward
processing or customs warehousing in the Azores, Madeira and
the Canary Islands and subsequently released into free circula-
tion there, the maximum period of 15 days shall start to run
on the date the licences or certificates referred to in the first
subparagraph are applied for.

The goods shall be presented in bulk or in separate lots

2.
corresponding to the licence or certificate presented.

The licences and certificates shall be used for a single operation
only when completing the customs formalities.

3.

Licences and certificates shall not be transferable.

Article 12

Quality of products

Only products of sound and fair marketable quality within the
meaning of Article 21(1) of Commission Regulation (EC) No
800/1999 (2) may qualify for the specific supply arrangements.

Conformity of the products with the requirements laid down in
the first paragraph shall be examined no later than the stage of
first marketing in accordance with the standards or practices in
force in the Community.

Where a product is considered not to meet the requirement
its entitlement under the
laid down in the first paragraph,
specific supply arrangements shall be withdrawn and the corre-
sponding quantity reattributed to the forecast supply balance.
Where aid has been granted in accordance with Article 7, the
aid shall be reimbursed. Where imports have been made in
accordance with Articles 4 and 5, the import duty shall be
paid, unless the party concerned supplies proof that the prod-
ucts have been re-exported or destroyed.

(1) OJ L 253, 11.10.1993, p. 1.
(2) OJ L 102, 17.4.1999, p. 11.

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Article 13

Lodging securities

No security shall be required when applying for licences and
certificates.

Without prejudice to Article 26, in special cases and to the
extent necessary to ensure the proper application of this Regu-
lation, the competent authorities may require a security to be
lodged equal to the amount of the benefit granted. In such
cases, Article 35(1) and (4) of Regulation (EC) No 1291/2000
shall apply.

Article 14

Significant

increases in applications for licences and

certificates

increase in applications for

If the state of execution of a forecast supply balance
1.
indicates a significant
import
licences, exemption certificates or aid certificates for a given
product which might jeopardise achievement of one or more
of
the
competent authorities shall immediately inform the Commis-
sion thereof, providing all relevant information on the supply
needs of the outermost region concerned.

the specific supply arrangements,

the objectives of

After consulting with the competent authorities, the Commis-
sion shall take all the necessary steps to ensure that the outer-
most region concerned is supplied with essential products,
taking account of available supply and the requirements of the
priority sectors.

2. Without prejudice to the necessary measures adopted
where the issue of licences and certificates is restricted, the
competent authorities shall apply a single percentage reduction
to all pending applications.

3.
Paragraphs 1 and 2 shall apply, after consultation with
the competent authorities, without prejudice to special provi-
sions adopted to overcome major difficulties in a given sector.

Article 15

Fixing a maximum quantity per licence or certificate
application

Insofar as is strictly necessary to avoid disturbances on the
market in the outermost region concerned, or the pursuit of
speculative actions likely to be prejudicial to the smooth func-
tioning of the specific supply arrangements, the competent
authorities shall fix a maximum quantity per licence or certifi-
cate application.

The competent authorities shall notify the Commission imme-
diately of the instances in which this Article is applied.

CHAPTER VI

SPECIAL PROVISIONS

SECTION 1

French overseas departments

Article 16

Reconsignment and re-export

1.
intention to export,

Processors who have declared, under Article 9(3), their
trade, or

in the context of regional

dispatch, in the context of traditional trade flows, processed
products containing raw materials which have benefited from
the specific supply arrangements, may do so within the limits
of annual quantities to be determined by the Commission in
accordance with Article 23(2) of Regulation (EC) No 1452/
2001. The competent authorities shall take the necessary steps
to ensure that those operations do not exceed the annual
quantities laid down.

Products delivered to the French overseas departments under
the specific supply arrangements and used to victual ships and
aeroplanes shall be deemed to have been consumed locally.

The competent authorities shall authorise the export or
2.
dispatch of quantities of processed products other than those
referred to in paragraph 1 only where it is attested that the
products concerned do not contain raw materials imported or
introduced under the specific supply arrangements.

The competent authorities shall carry out the necessary checks
to ensure the accuracy of the attestations referred to in the first
subparagraph and shall recover, where appropriate, the benefit
granted under the specific supply arrangements.

3.
the
Processing operations which, within the limit of
quantities to be determined by the Commission in accordance
with Article 23(2) of Regulation (EC) No 1452/2001, may give
rise to regional trade exports or traditional consignments must
meet the processing conditions laid down in the provisions on
the inward processing arrangements and the procedure for
processing under customs control specified in Council Regula-
tion (EEC) No 2913/92 (1) and Regulation (EEC) No 2454/93,
mutatis mutandis, with the exception of all usual
forms of
handling.

SECTION 2

Azores and Madeira

Article 17

Reconsignment and re-export

in the context of regional

Processors who have declared, under Article 9(3), their
1.
trade, or
intention to export,
dispatch, in the context of traditional trade flows, processed
products containing raw materials which have benefited from
the specific supply arrangements, may do so within the limits
of annual quantities to be determined by the Commission in
accordance with Article 35(2) of Regulation (EC) No 1453/
2001. The competent authorities shall take the necessary steps
to ensure that those operations do not exceed the annual
quantities laid down.

Products delivered to the Azores and to Madeira under the
specific supply arrangements and used to victual ships and
aeroplanes shall be deemed to have been consumed locally.

(1) OJ L 302, 19.10.1992, p. 1.

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The competent authorities shall authorise the export or
2.
dispatch of quantities of processed products other than those
referred to in paragraph 1 only where it is attested that the
products concerned do not contain raw materials imported or
introduced under the specific supply arrangements.

The competent authorities shall carry out the necessary checks
to ensure the accuracy of the attestations referred to in the first
subparagraph and shall recover, where appropriate, the benefit
granted under the specific supply arrangements.

3.
the
Processing operations which, within the limit of
quantities to be determined by the Commission in accordance
with Article 35(2) of Regulation (EC) No 1453/2001, may give
rise to regional trade exports or traditional consignments must
meet the processing conditions laid down in the provisions on
the inward processing arrangements and the procedure for
processing under customs control specified in Regulation (EEC)
No 2913/92 and Regulation (EEC) No 2454/93, mutatis
mutandis, with the exception of all usual forms of handling.

Article 18

Sugar

During the period referred to in Article 10(1) of Regulation
(EC) No 1260/2001, C sugar as referred to in Article 13 of that
Regulation, exported in accordance with the relevant provi-
sions of Commission Regulation (EEC) No 2760/81 (1), and
introduced for the purposes of consumption in Madeira in the
form of white sugar falling within CN code 1701 or into the
Azores in the form of raw sugar falling within CN code
1701 12 10, shall benefit, under the terms of this Regulation,
from the scheme of exemption from import duties within the
limits of the forecast supply balances referred to in Article 3.

SECTION 3

Canary Islands

Article 19

Reconsignment and re-export

in the context of regional

Processors who have declared, under Article 9(3), their
1.
intention to export,
trade, or
dispatch, in the context of traditional trade flows, processed
products containing raw materials which have benefited from
the specific supply arrangements, may do so within the limits
of the annual quantities set out in the Annex. The competent
authorities shall take the necessary steps to ensure that those
operations do not exceed the annual quantities laid down.

Products delivered to the Canary Islands under the specific
supply arrangements and used to victual ships and aeroplanes
shall be deemed to have been consumed locally.

2.
The competent authorities shall authorise the export or
dispatch of quantities of processed products other than those
referred to in paragraph 1 only where it is attested that the

(1) OJ L 262, 16.9.1981, p. 14.

products concerned do not contain raw materials imported or
introduced under the specific supply arrangements.

The competent authorities shall carry out the necessary checks
to ensure the accuracy of the attestations referred to in the first
subparagraph and shall recover, where appropriate, the benefit
granted under the specific supply arrangements.

the
Processing operations which, within the limit of
3.
quantities set out in the Annex, may give rise to regional trade
exports or traditional consignments must meet the processing
conditions
laid down in the provisions on the inward
processing arrangements and the procedure for processing
under customs control specified in Regulation (EEC) No 2913/
92 and Regulation (EEC) No 2454/93, mutatis mutandis, with
the exception of all usual forms of handling.

Article 20

Re-exporting unprocessed products or products packaged
locally

Under the second subparagraph of Article 3(5) of Regulation
(EC) No 1454/2001, unprocessed products or packaged prod-
ucts resulting from local packaging of unprocessed products
which have benefited from the specific supply arrangements
may be re-exported, subject to the following requirements:

(a) the words ‘goods exported under Article 3(5) of Regulation
(EC) No 1454/2001’ must be entered in section 31 of the
single administrative document (SAD);

(b) quantities of products which have been exempt

from
import duties and re-exported shall be re-attributed to the
forecast supply balance;

(c) the products covered by this point shall not qualify for

export refunds;

(d) quantities of products on which aid has been granted and
which are then re-exported shall be re-attributed to the
forecast supply balance and the aid granted shall be reim-
bursed;

(e) the products covered by this point shall not qualify for

export refunds;

(f) if there is a risk that regular supplies to the Canary Islands
might be jeopardised by a significant increase in re-exports
of the products covered by this Article, the competent
authorities may restrict quantities in such a way as to
ensure that priority needs in the sectors concerned are met.

The Spanish authorities shall
inform the Commission forth-
with, prior to their implementation, of the measures it plans to
take to apply this point and the reasons for these measures.
The Commission shall inform the other Member States thereof.

The above paragraphs shall apply without prejudice to special
provisions adopted to overcome sensitive difficulties in a given
sector.

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Article 21

Sugar

During the period referred to in Article 10(1) of Regulation
(EC) No 1260/2001, C sugar as referred to in Article 13 of that
Regulation, exported in accordance with the relevant provi-
sions of Regulation (EEC) No 2670/81, and introduced for the
purposes of consumption in the Canary Islands in the form of
white sugar falling within CN code 1701, shall benefit, under
the terms of this Regulation, from the scheme of exemption
from import duties within the limits of the forecast supply
balances referred to in Article 3.

CHAPTER VII

NOTIFICATIONS AND REPORT

Article 22

Notifications

The competent authorities shall notify to the Commission no
later than the fifth day of each month the following data
relating to the previous months of the reference calendar year,
by product and CN code and, where applicable, by individual
destination:

(a) the quantities broken down according to whether imported
from third countries or dispatched from the Community;

(b) the amount of aid and the expenditure actually paid by
product and, where applicable, by individual destination;

(c) the quantities for which licences and certificates have not
been used, broken down by category of licence or certifi-
cate;

(d) any quantities exported after processing in the context of
the traditional quantities under Regulations (EC) Nos 1453/
2001 and 1454/2001;

(e) any quantities dispatched after processing in the context of
traditional quantities under Regulations (EC) Nos 1452/
2001, 1453/2001 and 1454/2001;

(f) any quantities re-exported unprocessed or locally packaged

under Regulation (EC) No 1454/2001;

(g) any quantities exported in the context of regional trade
under Regulations (EC) Nos 1452/2001 and 1453/2001;

(h) transfers within an overall quantity for a category of prod-
ucts and amendments to the forecast supply balances
during the period;

(i) the available balance and the utilisation rate.

These data shall be supplied on the basis of the licences and
certificates used.

Article 23

Reports

No later than 30 June every year, the competent authorities
shall send the Commission an annual implementation report as
referred to, respectively, in Article 27(1) of Regulation (EC) No

1452/2001, Article 39(1) of Regulation (EC) No 1453/2001
and Article 25(1) of Regulation (EC) No 1454/2001, relating to
the previous calendar year.

Reports shall give the following information,

in particular:

(a) significant socio-economic and agricultural trends;

(b) a summary of the available physical and financial data on
the implementation of each measure,
followed by an
analysis of the data and, where necessary, a presentation
and analysis of the sector to which the measure relates;

(c) the progress of the measures and priorities in relation to
the specific and general objectives, using quantified indica-
tors,

(d) a brief account of any major problems encountered in

administering and implementing the measures;

(e) an examination of the results of all these measures, taking

account of their reciprocal

links;

(f) for the specific supply arrangements, the data and analysis
of price trends and how the benefit thus granted has been
passed on.

Article 24

Reduction of advances

Without prejudice to the general rules on budgetary discipline,
where the information transmitted by the Member States to the
Commission under Articles 22 and 23 is incomplete or the
time limit has not been complied with, the Commission shall
reduce advances on entry in the accounts of agricultural expen-
diture on a temporary and flat-rate basis.

CHAPTER VIII

CHECKS AND PENALTIES

Article 25

Checks

1.
The physical checks carried out in the outermost region
concerned on the import, entry, export, dispatch, re-export and
reconsignment of agricultural products must involve a repres-
entative sample amounting to at least 5 % of the licences and
certificates presented in accordance with Article 11.

Physical checks shall be carried out, mutatis mutandis, in accord-
ance with the procedures laid down in Council Regulation
(EEC) No 386/90 (1).

In special cases the Commission may request that checks

2.
be carried out on other percentages.

Article 26

Penalties

Except in cases of force majeure or climatic aberrations, if a
1.
trader fails to comply with the undertakings given under
Article 9, and without prejudice to any penalties applicable
under national

law, the competent authorities shall:

(1) OJ L 42, 16.2.1990, p. 6.

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— recover the benefit granted from the holder of the import

licence, exemption certificate or aid certificate;

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

— provisionally suspend or revoke registration, depending on

the seriousness of the breach of the obligations.

The benefit referred to in point (a) shall be equal to the amount
of the exemption from import duties or to the amount of the
aid.

2.
Except in cases of force majeure or climatic aberrations,
where holders of a licence or certificate do not carry out the
planned importation or introduction, their entitlement to apply
for licences and certificates shall be suspended for a period of
sixty days following expiry of the licence or certificate. After
the suspension period,
licences or
certificates shall be subject to the lodging of a security equal to
the amount of the benefit to be granted during a period to be
determined by the competent authorities.

the issue of subsequent

The competent authorities shall adopt

3.
the necessary
measures to reuse any quantities of products made available as
a result of non-execution, partial execution or cancellation of
the licences and certificates issued or recovery of the benefit
granted.

CHAPTER IX

NATIONAL PROVISIONS

Article 27

The competent authorities shall adopt
the additional rules
needed to administer and monitor the specific supply arrange-
ments in real time.

They shall notify the Commission of any measures they intend
to implement pursuant to the first paragraph, before their entry
into force.

CHAPTER X

TRANSITIONAL AND FINAL PROVISIONS

Article 28

Repeal

Regulations (EEC) No 131/92,

1.
(EC) No 2790/94 are hereby repealed.

(EEC) No 1696/92 and

2.
Articles 1, 2, 2a and 3 of Regulation (EEC) No 131/92
and Articles 1, 2, 3 and 4 of Regulation (EEC) No 1696/92
shall continue to apply until 30 June 2002.

Article 29

Transitional provisions

1.
For thirty days following the entry into force of this
Regulation, the competent authorities may, at the request of a
trader who has submitted an application for entry in the
register under Article 9, issue to the latter a licence or certifi-
cate, subject to the conditions in Article 10, provided that the
application for such licence or certificate is presented in
accordance with Article 10(1).

The issuing of licences or certificates shall be subject to the
lodging of a security.

Licences and certificates issued under Regulations (EEC)
2.
No 131/92, (EEC) No 1696/92 and (EC) No 2790/94 which
are not fully used before their expiry date may be replaced, for
the remaining quantities, in accordance with paragraph 1 or
may be cancelled and the security released.

Article 30

Entry into force

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

It shall apply from 1 January 2002. However,
— the third and fourth paragraphs of Article 6 shall apply

from 1 July 2002,

— Articles 4, 5, 7, 9, 10, 11, 13, 14, 15, 26, 27 and 28 shall
not apply to the French overseas departments, the Azores
and Madeira until 1 July 2002.

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

Done at Brussels, 28 December 2001.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX

Maximum quantities of processed products which can be exported or shipped annually from the Canary Islands
in the context of traditional exports and consignments

(Article 9(3) and Article 19)

(quantity in kilograms (or litres *))

CN code

to EC

to third country

0402 10

0402 21

0402 29

0402 91

0402 99

0403 10

0403 90

0405

0406 10

0406 30

0406 40

0406 90

0710 21

0710 22

0710 30

0710 40

0710 80

0710 90

0711 20

0711 40

0811 90

0812 90

0813 50

1101 00

1102 20

1102 90

1104 19

1105 00

1507 90

1514 90 90

1601 00

1602 41

1602 49

1602 50

1604 13

1604 14

1702 90

1704 10

1704 90

1804 00

—

64 000

—

3 000

1 000

—

1 000

6 000

17 000

2 000

2 000

25 000

—

1 000

2 000

1 000

4 000

—

—

—

1 000

3 000

1 000

105 000

13 000

1 000

4 000

—

—

—

10 000

13 000

16 000

—

2 712 000

552 000

675 000

19 000

648 000

—

54 000

11 000

33 000

3 000

1 000

7 000

1 000

12 000

119 000

5 000

1 000

14 000

1 000

1 000

1 000

1 000

16 000

1 000

1 000

1 000

1 000

1 000

1 000

1 000

6 000

1 000

1 000

1 000

300 000

3 000 000

44 000

1 000

39 000

50 000

2 027 000

18 000

6 000

20 000

293 000

1 000

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11.1.2002

CN code

to EC

to third country

(quantity in kilograms (or litres *))

1805 00

1806 10

1806 20

1806 31

1806 90

1901 20

1901 90

1902 11

1902 19

1902 20

1902 30

1903 00

1904 10

1904 90

1905 20

1905 30

1905 40

1905 90

2004 10

2004 90

2005 10

2205 20

2005 40

2005 59

2005 60

2005 70

2005 80

2005 90

2006 00

2007 10

2007 91

2007 99

2008 19

2008 20

2008 30

2008 50

2008 60

2008 70

2008 92

2008 99

2009 19

2009 30

2009 40

2009 60

2009 70

2009 80

1 000

4 000

1 000

1 000

30 000

1 140 000

2 521 000

1 000

1 000

—

1 000

—

3 000

—

—

45 000

1 000

15 000

22 000

4 000

1 000

57 000

2 000

2 000

34 000

9 000

1 000

20 000

5 000

3 000

3 000

463 000

1 000

18 000

10 000

2 000

1 000

5 000

104 000

224 000

18 000

—

9 000

—

2 000

11 000

45 000

58 000

25 000

4 000

38 000

—

45 000

2 000

47 000

1 000

37 000

1 000

2 000

1 000

1 000

132 000

3 000

43 000

1 000

72 000

63 000

1 000

19 000

—

1 000

3 000

5 000

27 000

27 000

2 000

8 000

7 000

1 000

38 000

1 000

1 000

1 000

1 000

12 000

1 000

24 000

10 000

7 000

1 071 000

3 000

18 000

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Official Journal of the European Communities

L 8/13

CN code

2009 90

2101 10

2101 20

2101 30

2102 10

2102 20

2102 30

2103 10

2103 20

2103 30

2103 90

2104 10

2104 20

2105 00

2106 10

2106 90

2202 10

2202 90

2203 00

2205 10

2205 90

2208 40

2208 50

2208 90

2209 00

2301 20

2309 90

3002 10

3002 20

3002 90

3004 20

3004 50

3004 90

3005 10

3005 90

3203 00

3307 49

3307 90

3401 19

3402 13

3402 20

3402 90

3403 19

3405 30

3405 40

3901 10

to EC

16 000

5 000

1 000

1 000

1 000

—

—

—

22 000

1 000

30 000

22 000

1 000

167 000

3 000

8 000

* 5 000 000

* 3 000 000

* 70 000

* 47 000

* 17 187 000

* 47 000

* 9 000

* 190 000

—

20 610 000

20 000

8 000

1 000

1 000

1 000

1 000

51 000

1 000

2 000

1 000

1 000

7 000

2 000

5 000

135 000

40 000

7 000

1 000

2 000

195 000

(quantity in kilograms (or litres *))

to third country

12 000

3 000

1 000

—

28 000

2 000

3 000

2 000

35 000

3 000

61 000

193 000

595 000

505 000

28 000

13 000

* 203 000

* 799 000

* 157 000

* 1 000

* 3 295 000

* 43 000

* 7 000

* 17 000

* 18 000

18 654 000

1 525 000

1 000

1 000

1 000

3 000

—

18 000

2 000

1 000

1 000

14 000

6 000

9 000

—

69 000

62 000

1 000

1 000

6 000

32 000

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11.1.2002

CN code

3901 20

3904 21

3909 50

3912 90

3917 21

3917 23

3917 32

3917 39

3917 40

3919 10

3920 10

3920 20

3920 99

3921 90

3923 10

3923 21

3923 29

3923 30

3923 40

3923 90

3924 10

3924 90

3926 90

4823 11

4823 51

4823 59

to EC

80 000

49 000

2 000

7 000

195 000

20 000

65 000

33 000

270 000

860 000

2 100 000

310 000

340 000

20 000

49 000

727 000

23 000

180 000

18 000

1 000

6 000

10 000

132 000

1 000

9 000

6 000

(quantity in kilograms (or litres *))

to third country

76 000

180 000

47 000

1 000

11 000

10 000

68 000

2 000

65 000

30 000

2 000

8 000

—

70 000

59 000

356 000

72 000

35 000

25 000

13 000

5 000

4 000

198 000

3 000

15 000

3 000