Commission Regulation (EC) No 396/2002 of 1 March 2002 laying down detailed rules for the application of the specific measures adopted in respect of fruit, vegetables, plants and flowers for the benefit of the Canary Islands
Date: 2002-03-01
Institutions: European Commission
Subjects: Canary Islands, EU aid, agricultural product, aid system, production aid

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COMMISSION REGULATION (EC) No 396/2002

of 1 March 2002

laying down detailed rules for the application of the specific measures adopted in respect of fruit,
vegetables, plants and flowers for the benefit of the Canary Islands

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

(5)

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) (1), and in particular Article 9(2), Article
10(5), Article 11(2) and Article 14(3) thereof,

Whereas:

(1)

(2)

(3)

Detailed rules should be laid down for the application of
Articles 9, 10 and 11 of Regulation (EC) No 1454/2001,
which provide for aid measures for fruit, vegetables,
plants and flowers, and Article 14, which provides for
aid measures for the cultivation of potatoes.

Article 14 of Regulation (EC) No 1454/2001 provides
for the grant of area aid for the cultivation of potatoes
for human consumption in respect of an area not
exceeding 9 000 hectares cultivated and harvested each
year. Detailed rules for the grant of the aid should be
laid down to reflect the distinctive cultural and climatic
features of the Canary Islands archipelago.

Article 9 of Regulation (EC) No 1454/2001 provides for
the grant of aid for the marketing on the Canary Islands
market of the products referred to in that Article. The
aid must be fixed on a flat-rate basis in the light of the
average value of each of the products to be determined,
within the limits of annual quantities established for
each product category. To make it possible for this
provision to be implemented, a list should be drawn up
of the products eligible for the aid based on the supply
requirements of
the categories
the regional markets,
should be established on the basis of the average value
of the products covered, a maximum quantity should be
fixed for the Canary Islands as a whole and detailed rules
should be laid down for the grant of the aid.

(4)

For the grant of the different aid amounts a distinction
should be made between the producer organisations
referred to in Council Regulation (EC) No 2200/96 of

(1) OJ L 198, 21.7.2001, p. 45.

28 October 1996 on the common organisation of the
market in fruit and vegetables (2), as last amended by
Commission Regulation (EC) No 911/2001 (3), and other
producers.

implementing the marketing aid
For the purpose of
measures and financing the economic study referred to
in Articles 10 and 11 respectively of Regulation (EC) No
1454/2001, and in the interests of legislative simplifica-
tion, the provisions adopted by Commission Regulation
(EEC) No 2173/92 of 30 July 1992 laying down detailed
rules for the application of specific measures adopted in
respect of fruit, vegetables, plants and flowers for the
benefit of the Canary Islands (4), as repealed by Regula-
tion (EC) No 21/2002 (5), should be incorporated in this
Regulation subject to the adjustments which experience
has shown to be desirable and which the amendments to
the Council Regulation demand.

(6) With regard in particular to the marketing aid for the
conclusion of annual contracts referred to in abovemen-
tioned Article 10, the concept of annual contract needs
to be defined and a basis established for calculating the
amount of the aid, set at 10 % of the value of the
production marketed, free at destination, and at 13 % in
situations where Article 10(4) applies. Provision should
be made,
for arrangements for allocating the
quantities qualifying for aid in situations where there is
an overrun of the limits set in that Article.

lastly,

(7)

(8)

(9)

Specific rules should be laid down to ensure that the
quantities fixed are monitored and that the conditions
set for the grant of the aid are met. To that end, a
system of approval of operators involved in the distribu-
tion and catering sectors,
local authorities and food
processors who undertake to meet certain requirements
would appear to ensure the satisfactory administration
of the local marketing aid scheme. General provisions
applicable to these measures as a whole, especially those
concerning monitoring and notification, should also be
set out in a final chapter.

To ensure the continuity of the aid schemes for the
cultivation of potatoes and for marketing outside the
Community and financing of the economic study, the
provisions of Titles I, III and IV of this Regulation need
to be made applicable with effect from 1 January 2002.

The joint meeting of the Management Committees for
Fresh Fruit and Vegetables,
for Processed Fruit and
Vegetables, for Hops, and for Live Plants and Floriculture
Products has not delivered an opinion within the time
limit laid down by its Chairman,

(2) OJ L 297, 21.11.1996, p. 1.
(3) OJ L 129, 11.5.2001, p. 3.
(4) OJ L 217, 31.7.1992, p. 56.
(5) OJ L 8, 11.1.2002, p. 15.

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HAS ADOPTED THIS REGULATION:

TITLE I

Potato production

Article 1

1.
Aid for the cultivation of potatoes for consumption
falling within CN codes 0701 90 50 and 0701 90 90 as
provided for in Article 14 of Regulation (EC) No 1454/2001
shall be granted in respect of areas:

(a) that have been sown and for which all normal cultivation

work has been completed;

(b) for which an aid application has been made in accordance
with Article 2 below, such applications being deemed to be
declarations of cultivated area.

Aid may be granted twice each year in respect of a given

2.
area.

3.
In order to check that the maximum area referred to in
Article 14 of Regulation (EC) No 1454/2001 has been
observed, where cultivation aid is granted twice in a given year
in respect of a given area, the area in question shall be multi-
plied by 2.

Where the total area for which aid is requested exceeds the
maximum area referred to in Article 14 of Regulation (EC) No
1454/2001, the aid shall be granted to applicant producers in
proportion to the area shown in their aid applications.

4. Where the potato crop has not reached harvesting stage,
the competent Spanish authorities may acknowledge that cases
of force majeure and natural disasters seriously affecting the area
cultivated by the declarant justify continued entitlement to the
aid.

Cases of force majeure and natural disasters shall be notified to
the competent Spanish authorities within five working days of
the date on which they occur. Evidence thereof shall be
provided within one month following notification.

Spain shall inform the Commission forthwith of cases of force
majeure or natural disasters it recognises as justifying continued
entitlement to the aid.

Article 2

TITLE II

Local marketing

Article 3

1.
The lists of the products qualifying for the aid provided
for in Article 9 of Regulation (EC) No 1454/2001, classified by
category, shall be as shown in column II of Annex I for fruit
and vegetables, and in column II of Annex II for flowers and
live plants.

2.
The products shall be the subject of supply contracts as
referred to in Article 4 and comply with the standards estab-
lished in accordance with Title I of Regulation (EC) No 2200/
96 as regards fruit and vegetables and in accordance with
Council Regulation (EEC) No 316/68 of 12 March 1968 fixing
quality standards for fresh cut flowers and fresh ornamental
foliage (1), as regards flowers and plants, or, where no such
the quality specifications
standards have been adopted,
contained in the contracts.

3.
The aid shall be granted within the limits of the annual
quantities shown in column III of Annexes I and II, by product
category.

4.
The aid amounts applicable for each product category are
shown in columns IV and V of Annexes I and II. The amounts
shown in column V shall apply, for all products, to producer
organisations recognised in accordance with Articles 11 and 14
of Regulation (EC) No 2200/96 and the amounts shown in
column IV shall apply to other individual producers and
producer groups.

Article 4

1.
Supply contracts as referred to in Article 9(1) of Regula-
tion (EC) No 1454/2001 shall be concluded between individual
producers, producer groups or producer organisations and the
approved operators referred to in Article 5.

2.

Contracts shall

include:

(a) the business names of the parties to the contract;

(b) a precise description of

the products covered by the

contract;

(c) the total quantity to be supplied and the forecast supply

schedule;

(d) the references and areas of the parcels on which the prod-
ucts are grown and the names and addresses of each
grower concerned;

(e) the duration of the undertaking;

(f) the method of packaging and particulars concerning trans-

port (conditions and costs);

(g) the precise stage of delivery.

1.
Interested growers shall submit an aid application to the
competent authorities by a date to be set by them. The date set
shall allow the necessary on-the-spot checks to be carried out.

3.
Contractors may increase, by not more than 30 %, the
quantity initially specified in the contract, by means of an
amending clause.

2.

Aid applications shall contain at least:

— the name, first name and address of the applicant,

— the cultivated area in hectares and ares, and the land
register reference or particulars regarded as equivalent by
the body responsible for checking areas of land.

Contracts and amending clauses shall be signed not less
4.
than 10 days before the start of the deliveries concerned and
before a deadline set by the competent authorities, which may
differ for each product.

(1) OJ L 71, 21.3.1968, p. 8.

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The competent authorities may adopt additional provi-
5.
sions concerning contracts, in particular regarding compensa-
tion in the event of failure to observe contractual obligations or
the fixing of a minimum quantity for each contract.

where in the Community gives an undertaking before the start
of the marketing period for the product or products in ques-
tion to buy all or part of the production of an individual
producer or a producer organisation with a view to marketing
it outside the Canary Islands.

Article 5

1.
Economic operators in the wholesale or retail food trade
or in catering, local authorities and food processors wishing to
participate in the aid scheme shall submit an application for
approval to the body designated by the competent authorities
before a date set by the latter.

The body shall lay down the conditions for approval and shall
publish each year a list of approved operators not less than one
month before the deadline for the signing of contracts.

2.

The approved operators shall give an undertaking to:

(a) market or process the products covered by the supply

contracts exclusively in the Canary Islands;

(b) keep specific accounts for the performance of the supply

contracts;

(c) forward, at the request of the competent departments, any
supporting documents concerning the performance of the
contracts and the fulfilment of undertakings given under
this Regulation.

Article 6

and producer organisations
Producers, producer groups
wishing to qualify under the aid scheme shall send a declara-
tion together with a copy of the contract referred to in Article
4 to the competent authorities before a date set by the latter.

Article 7

the competent authorities shall

1. Where the documents referred to in Article 6 indicate
that the quantities provided for in Article 3(3) are likely to be
fix a temporary
exceeded,
reduction coefficient to be applied to aid applications falling
within this category and shall
inform the interested parties
thereof. The coefficient, which shall be equivalent to the ratio
between the quantities shown in columns III of Annexes I and
II, and the quantities contained in the contracts plus any addi-
tional amounts under amending clauses, shall be set before any
decision is taken to grant the aid and at the latest one month
after the deadline referred to in Article 4(4).

2. Where paragraph 1 is applied, the competent authorities
shall establish, at the end of the year, the definitive reduction
coefficient to be applied to aid applications falling within the
category concerned and submitted during the year.

TITLE III

Marketing outside the Canary Islands

Article 8

For the purposes of Article 10 of Regulation (EC) No
1.
‘annual contract’ means a contract in which an
1454/2001,
operator, whether a natural or legal person, established else-

Operators who intend to submit an application for aid
2.
shall send the annual contract
to the competent Spanish
authorities before the start of the marketing period for the
product or products in question. The contract shall include at
least:

(a) the business names of the contracting parties and their

places of establishment;

(b) a precise description of

the products covered by the

contract;

(c) the total quantity to be supplied and the forecast supply

schedule;

(d) the references and areas of the parcels on which the prod-
ucts are grown and, in the case of producer organisations,
the names and addresses of each producer;

(e) the duration of the undertaking;

(f) the method of packaging and particulars concerning trans-

port (conditions and costs);

(g) the exact delivery stage.

3.
The competent authorities shall assess the contracts for
conformity with Article 10 of Regulation (EC) No 1454/2001
and this Regulation. They shall verify that the contracts contain
all the information specified in paragraph 2. They shall inform
the operator whether paragraph 6 is likely to be applied.

4.
For products other than tomatoes and for the purpose of
calculating the aid, the value of marketed production, delivered
to destination zone, shall be evaluated on the basis of the
annual contract, the particular transport documents and any
other supporting documents submitted to justify the applica-
tion for payment.

The value of the marketed production to be taken into account
shall be equivalent to that of a delivery at the first port or
airport of unloading.

The competent authorities may request any additional informa-
tion or supporting documentation required to calculate the aid.

Applications for aid shall be submitted by the buyer who

5.
enters into the commitment to market the product.

6. Where the quantities covered by aid applications exceed
the limit of 300 000 tonnes in the case of tomatoes falling
within CN code 0702 or 10 000 tonnes in the case of other
products, as laid down in Article 10(2) of Regulation (EC) No
1454/2001,
shall decide on a
uniform reduction coefficient to be applied to all aid applica-
tions for the products concerned.

the competent authorities

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The increase in aid provided for in Article 10(4) of Regu-
7.
lation (EC) No 1454/2001 shall be paid on presentation of the
commitments entered into by the partners to pool, for a period
of not less than three years, the knowledge and know-how
required to achieve the objective of the joint venture. These
commitments shall
include a clause prohibiting cancellation
before the end of the aforementioned three-year period.

Where the aforementioned commitments are broken, the buyer
may not submit an application for aid for the marketing year
concerned.

TITLE IV

Study concerning fruit and vegetables

Article 9

1.
The contract to carry out the study referred to in Article
11 of Regulation (EC) No 1454/2001 shall be awarded by
invitation to tender on the responsibility of the competent
authorities.

2.
The draft invitation to tender and the specifications shall
be sent to the Commission by the competent authorities. The
Commission shall make known its observations, if any, within
a period of one month following the date of receipt of the
draft.

3.
The competent authorities shall send a copy of the final
study to the Commission, which shall present its observations,
if any, within 45 days of the date of receipt of the study.

The Community's financial contribution shall be paid

4.
subject to:
— compliance with the provisions of Article 11 and the speci-

fications together with the observations presented,

— payment of
authorities.

the contribution from the Spanish public

TITLE V

General provisions

Article 10

The marketing year shall run from 1 January to 31

1.
December.

2.
Applications for aid shall be submitted to the department
designated by the Spanish authorities in accordance with the
models established by the latter and within the periods laid
down by them.

5. Within 15 working days of receipt of the aid referred to
in Title II, the producer organisation shall pay its members, by
bank or postal transfer, the full amount received.

Article 11

Spain shall communicate to the Commission:

(a) no later than 31 May, a report on the implementation of
the measures referred to in this Regulation in the preceding
marketing year showing in particular:
— the areas which have qualified for the aid referred to in

Title I,

— broken down by aid amount and by product set out in
Annexes I and II, the quantities which have qualified for
the aid referred to in Title II,

— broken down by product and their value within the
meaning of the second subparagraph of Article 8(4), the
quantities which have qualified for the aid and the
increased aid referred to in Title III,

(b) no later than 31 May, broken down by category or
product, provisional data concerning the quantities covered
by contract for the current year;

(c) no more than one month following their publication, the
detailed rules adopted for the application of this Regula-
tion.

Article 12

1.
The national authorities shall take all the measures neces-
sary to guarantee compliance with the conditions to which the
grant of the aid provided for in Articles 9, 10 and 14 of
Regulation (EC) No 1454/2001 is subject.

Checks carried out

2.
involve administrative and
shall
on-the-spot checks. The administrative checks shall be exhaus-
tive and shall involve cross-checks, in particular with the data
of the integrated administration and control system.

On the basis of a risk analysis, the national authorities shall
carry out random on-the-spot checks on aid applications repre-
senting at least 10 % of the quantities, 5 % of the areas and 5 %
of the growers for the marketing aids referred to in Articles 9
and 10 and accounting for at least 5 % of the areas and 5 % of
the beneficiaries of the aid for the cultivation of potatoes
referred to in Article 14.

The national authorities shall withdraw the approvals referred
to in Article 5 where the commitments to which they are
subject are not fulfilled. They may suspend the payment of aid
for one or more marketing years depending on the seriousness
of the irregularities uncovered.

3.
The applications for marketing aid shall be accompanied
by invoices and all other supporting documents relating to the
measures undertaken, in particular the references of the supply
contracts and annual contracts.

3. Where aid has been paid out unduly, the competent
administration shall recover the sums paid out, with interest
from the date on which the aid is paid out to the date on
which it is repaid by the beneficiary.

The

competent

4.
administration, having verified the
applications for aid and the relevant supporting documents,
shall, in the three months following the end of the period for
lodging applications, pay the aid calculated in accordance with
this Regulation.

Where the undue payment has been made because of a false
declaration, false documents or serious negligence on the part
of the recipient, a penalty equal to the amount paid out unduly,
with interest calculated in accordance with the first subpara-
graph, shall be imposed.

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The interest rate shall be that applied by the European Central
Bank to its principal refinancing transactions published in the
‘C’ series of the Official Journal of the European Communities, in
force on the date of the undue payment and increased by three
percentage points.

4.
The aid recovered shall be paid to the paying authorities
or agencies and deducted by them from the expenditure
financed by the European Agricultural Guidance and Guarantee
Fund.

TITLE VI

Final provisions

Article 13

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

Titles I, III and IV shall apply from 1 January 2002.

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

Done at Brussels, 1 March 2002.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX I

FRUIT AND VEGETABLES

Product
category

CN code

Product

Quantity
(tonnes)

Aid
(EUR/tonne)

I

A

B

C

II

III

IV

V

ex 0703 10
0704 90
0709 90 60
ex 0709 90 90
ex 0709

Onions
Cabbages
Sweet com
Pumpkins
Other vegetables not elsewhere speci-
fied
Grapefruit
Lemons

0805 40 00
0805 50 10
0807 11 00 Watermelons

ex 0807 19 00

Melons

0703 20 00
ex 0703 90 00
0704 10 00
0705

ex 0706 10 00
0707 00 05
0709 30 00
0709 40 00
ex 0709 60 10
0709 90 20
0709 90 70
0714 20
0805 10
ex 0805 20

0806 10 10
0808 10
0808 20
0809 10 00
0809 30
0809 40 05
ex 0810 90 95

0708 20 00
ex 0709 70 00
ex 0709 90
ex 0802

0804 20 10
0804 30 00
0804 40 00
ex 0804 50 00
0807 20 00
0810 10 00
ex 0810 90 95

Garlic
Leeks
Cauliflowers
Lettuce and chicory
Carrots
Cucumbers
Aubergines (egg-plants)
Celery
Peppers
Chard and cardoons
Courgettes
Sweet potatoes
Oranges
Mandarins
Tables grapes
Apples
Pears
Apricots
Peaches and nectarines
Plums
Other temporate fruit not elsewhere
specified

French beans
Spinach
Cress
Almonds
Fresh figs
Pineapples
Avocados
Mangoes
Papaws (papayas)
Strawberries
Cactus figs (prickly pears) and other
tropical fruit not elsewhere specified

16 320

40

120

32 830

90

180

14 550

120

210

D

ex 0701 90

Potatoes harvested from 1 April to 31
December

30 000

60

150

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ANNEX II

FLOWERS AND LIVE PLANTS

Product
category

I

CN code

Product

Quantity
(units)

Aid
(EUR/unit)

II

III

IV

V

Category A: Cuttings

A

0602 90 45

Cuttings

24 000 000

0,010

0,011

Category B: Flowers

B 1

B 2

B 3

0603 10

0603 10

0603 10

Flowers with a value of between
EUR 0,07 and EUR 0,15/unit

Flowers with a value of between
EUR 0,16 and EUR 0,45/unit

Flowers with a value of between
EUR 0,46 and EUR 1,20/unit

8 000 000

0,018

0,019

6 000 000

0,040

0,044

1 090 000

0,060

0,066

Category C: Plants

C 1

C 2

C 3

C 4

0602 90

0602 90

0602 90

0602 90

Plants with a value of between
EUR 0,15 and EUR 0,45/unit

Plants with a value of between
EUR 0,46 and EUR 1,50/unit

Plants with a value of between
EUR 1,51 and EUR 3,00/unit

Plants with a value of more than
EUR 3,01/unit

2 500 000

0,045

0,048

1 000 000

0,222

0,240

750 000

0,456

0,480

500 000

0,601

0,637