Commission Regulation (EC) No 1943/2003 of 3 November 2003 laying down rules for the application of Council Regulation (EC) No 2200/96 as regards aid to producer groups granted preliminary recognition
Date: 2003-11-03
Institutions: European Commission
Subjects: aid system, producer organisation, production aid

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COMMISSION REGULATION (EC) No 1943/2003

of 3 November 2003

laying down rules for the application of Council Regulation (EC) No 2200/96 as regards aid to
producer groups granted preliminary recognition

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

groups of different sizes, that ceiling should be adjusted
in line with the marketable production of the producer
groups.

Having regard to Council Regulation (EC) No 2200/96 of 28
October 1996 on the common organisation of the market in
fruit and vegetables (1), as last amended by Commission Regula-
tion (EC) No 47/2003 (2), and in particular Article 48 thereof,

(6)

Whereas:

(1)

(2)

(3)

(4)

(5)

In the view of experience gained during the last years, it
is necessary to amend Commission Regulation (EC) No
20/98 of 7 January 1998 laying down rules for the
application of Council Regulation (EC) No 2200/96 as
regards aid to producer organisations granted preli-
minary recognition (3), as last amended by Regulation
(EC) No 983/2000 (4).
In the interests of clarity and
rationality, that Regulation should be replaced by a new
Regulation.

Regulation (EC) No 20/98 should consequently be
repealed.

Article 14 of Regulation (EC) No 2200/96 states that
new producer groups may be allowed a transitional
period of no more than five years in which to meet the
conditions for recognition laid down in Article 11 of
that Regulation. Commission Regulation (EC) No 1432/
2003 (5) establishes the conditions for granting preli-
minary recognition to producer groups.

In order to encourage the formation of producer groups,
Article 14 of Regulation (EC) No 2200/96 also states
that Member States may grant
two sorts of aid to
producer groups granted preliminary recognition in the
five years following such preliminary recognition, one to
cover the costs of their formation and administrative
the investments
operation and one to cover part of
required to attain recognition and set out in their recog-
nition plans.

the costs of

To facilitate the correct application of the system of aid
to cover
formation and administrative
operation, that aid should be granted at a flat rate. That
flat-rate aid should be subject to a ceiling in order to
comply with budgetary constraints. Moreover, to take
the differing financial needs of producer
account of

(7)

(8)

to guarantee equal

treatment between the
In order
producer organisations referred to in Article 11 of Regu-
lation (EC) No 2200/96 and the producer groups
referred to in Article 14 of the same regulation, the aid
referred to in Article 2 of Council Regulation (EC) No
2201/96 of 28 October 1996 on the common organisa-
tion of the markets in processed fruit and vegetables (6),
as last amended by Commission Regulation (EC) No
453/2002 (7), and in Article 1 of Council Regulation
(EC) No 2202/96 of 28 October 1996 introducing a
Community aid scheme for producers of certain citrus
fruits (8), as last amended by Regulation (EC) No 2699/
2000 (9), should be added to the appropriate value of
marketed production, as provided for in Article 3 of
Commission Regulation (EC) No 1433/2003 of 11
August 2003 laying down detailed rules for the applica-
tion of Council Regulation (EC) No 2200/96 as regards
operational funds, operational programmes and financial
assistance (10).

Natural disasters can cause a steep fall
in marketed
production in a given year. In such cases, in order to
avoid such drastic reductions in the Community aid to
producer groups granted preliminary recognition as
might jeopardise its operation, there should be a limit
on the reduction in marketed production taken into
account for the purposes of calculating the aid. That
limit should be determined by reference to the yield and
the average prices obtained by the producer groups
granted preliminary recognition or by their members in
the three years preceding the year of the disaster, and
should be fixed to take account of normal production
fluctuations due to weather conditions.

In order to ensure that the aid provided for in this Regu-
lation is applied properly, the Member State in question
should check that the grant of the aid is duly justified,
account being taken of any previous grants of aid for
the launching of producer groups and of any move-
ments of producers between producer groups and/or
organisations. The Member States should also ensure
that duplicate Community or national financing is not
granted for measures qualifying for Community finan-
cing in accordance with this Regulation.

(1) OJ L 297, 21.11.1996, p. 1.
(2) OJ L 7, 11.1.2003, p. 64.
(3) OJ L 4, 8.1.1998, p. 40.
(4) OJ L 113, 12.5.2000, p. 36.
(5) OJ L 203, 12.8.2003, p. 18.

(6) OJ L 297, 21.11.1996, p. 29.
(7) OJ L 72, 14.3.2002, p. 9.
(8) OJ L 297, 21.11.1996, p. 49.
(9) OJ L 311, 12.12.2000, p. 9.
(10) OJ L 203, 12.8.2003, p. 25.

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(9)

(10)

In the event of mergers, the possibility should be given
for the aid to be granted to the producer groups
resulting from the merger, in order to take into account
the financial needs of the new producers groups and to
ensure the correct application of the aid scheme.

The aid provided for in this Regulation should be
discontinued once the producer group is recognised by
the Member State. However,
the
multiannual financing of investments, those qualifying
for investment aid pursuant to this Regulation can be
carried over to operational programmes as referred to in
Article 15 of Regulation (EC) No 2200/96.

to take account of

(11) Article 14(7) of Regulation (EC) No 2200/96 provides a
special scheme for Portugal. Provisions should be laid
down to ensure compliance with that special scheme.
The provisions fixing the value of the marketed produc-
tion in case of natural disasters should also apply to
Portugal.

(12)

Strict control procedures should be laid down, together
with deterrent sanctions in the event of infringement,
given the high degree of responsibility and initiative
conferred on the producer groups.
In the interest of
simplification and rationality, these sanctions should be
applied as provided for in Regulation (EC) No 1433/
2003.

(13)

The measures provided for in this Regulation are in
the Management
accordance with the opinion of
Committee for Fresh Fruit and Vegetables,

HAS ADOPTED THIS REGULATION:

(ii) sold under the terms of the second and third indents of
Article 11(1)(c)(3), second subparagraph, of Regulation (EC)
No 2200/96 with the group's authorisation.

The production shall include the amount of the aid as provided
for in Article 2 of Regulation (EC) No 2201/96 and Article 1 of
Regulation (EC) No 2202/96 received by the producer groups
for the same annual or semestrial period referred to in Article
3.

Marketed production shall not
include the production of
members of other producer organisations or groups marketed
through the group in question in accordance with the second
and third indents of Article 11(1)(c)(3), second subparagraph,
of Regulation (EC) No 2200/96.

For the purposes of this Regulation,

‘value of marketed
2.
production’ means the value of marketed production at the ‘ex-
producer group’ stage, or, where appropriate, as a ‘wrapped or
prepared unprocessed product’.

3.
In the event of a natural disaster recognised by the
competent national authorities, marketed production shall be
deemed to be at least 70 % of the average theoretical value
equal to the area belonging to the producer group granted
preliminary recognition and sown to the product in question
during the year of
the natural disaster, multiplied by the
average yield and average price obtained

— by the producer group or its members for the product in
question during the three years prior to the natural disaster,
or

— where the Member State so decides, in the same production

region during the three years prior to the disaster.

Article 1

Scope

Article 3

Financing of recognition plans

This Regulation lays down rules on the granting of aid as
provided for in Article 14(2) of Regulation (EC) No 2200/96 to
producer groups granted preliminary recognition.

1.
The aid provided for in Article 14(2)(a) of Regulation (EC)
No 2200/96 shall be granted towards the costs of setting up
and running the producer group, at a flat rate.

Article 2

Definitions

For the purposes of this Regulation,

‘marketed produc-
1.
tion’ means the production of a producer group's members in
the category for which preliminary recognition is granted:

(i) delivered to the producer group and actually sold through

the group fresh or processed;

2.
The aid referred to in paragraph 1 shall be determined for
each producer group on the basis of its value of marketed
production, and shall:

(a) amount, for the first, second, third, fourth and fifth years,
to 5 %, 5 %, 4 %, 3 % and 2 % respectively of the value of
a maximum of
up
marketed
EUR 1 000 000;

production

to

(b) amount, for the first, second, third, fourth and fifth years,
to 2,5 %, 2,5 %, 2,0 %, 1,5 % and 1,5 % respectively of the
value of marketed production exceeding EUR 1 000 000;

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(c) be subject to a ceiling for each producer group of:

— EUR 100 000 for the first year,

— EUR 100 000 for the second year,

— EUR 80 000 for the third year,

— EUR 60 000 for the fourth year,

— EUR 50 000 for the fifth year;

(d) be paid

— in annual or semestrial instalments at the end of each
annual or semestrial period for the implementation of
the recognition plan, or

— in instalments covering part of an annual period if
recognition occurs according to Article 11 of Regula-
tion (EC) No 2200/96 before the end of an annual
period.

In order to calculate the instalments referred to in the first
indent of subparagraph (d), the Member States may use as a
basis the marketed production corresponding to a period other
than that in respect of which the instalment is paid, where
checks so require. The period by which the period used fails to
coincide with the actual period concerned must be less than
the length of the actual period.

Article 4

Special loans

1.
Aid as provided for in Article 14(2)(b) of Regulation (EC)
No 2200/96 shall be granted, directly or through credit institu-
tions, in the form of special loans to cover part of the cost of
investments linked to implementation of the measures in recog-
nition plans, as described in Article 16 of Regulation (EC) No
1432/2003.

Investments liable to distort competition where the other
economic activities of the organisation are concerned shall be
excluded.

Investments to the direct or indirect benefit of such activ-
2.
ities shall be financed pro rata to their use for the sectors or
products for which preliminary recognition is granted.

All applications for aid shall be accompanied by a written
2.
declaration from the producer group to the effect that the
latter:

(a) complies and will comply with Regulations (EC) No 2200/

96 and (EC) No 1432/2003 and with this Regulation;

(b) has not benefited,

is not benefiting and will not benefit
either directly or indirectly from duplicate Community or
national financing for measures and/or actions for which
Community financing is granted pursuant to this Regula-
tion.

3. Member States shall pay the aid within six months of
receipt of a full application.

Article 6

Eligibility

Member States shall evaluate the eligibility of producer groups
for the aid under this Regulation in order to establish that the
aid is duly justified, regard being had to the conditions and the
date on which any earlier public aid was granted to the
producer organisations or groups from which the members of
the producer group in question originate and to any move-
ments of members between organisations and producer groups.

Article 7

Community assistance

Expenditure incurred by Member States on aid as referred to in
Articles 3 and 4 shall qualify for assistance from the EAGGF
Guarantee Section.

Article 8

Community contribution

Article 5

Application for aid

The Community contribution towards aid as referred to

1.
in Article 3 shall amount to:

— 75 % of eligible public expenditure in Objective 1 and 2
regions as referred to in Article 1 of Council Regulation
(EC) No 1260/1999 (1),

1.
Producer groups shall each submit a single application for
the aid referred to in Articles 3 and 4 within three months of
the end of each annual period as referred to in Article 3(2)(d).

— 50 % of eligible public expenditure in other regions.

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

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The Community contribution towards aid as referred to
2.
in Article 4, expressed in terms of capital-grant equivalent, shall
not exceed, as a percentage of eligible investment costs as
referred to in Article 4:

— 50 % in Objective 1 and 2 regions as referred to in Article

1 of Regulation (EC) No 1260/1999,

— 30 % in other regions.

The Member States concerned must undertake to contribute at
least 5 % of eligible investment costs as referred to in Article 4.

Beneficiaries of aid towards eligible investment costs as referred
to in Article 4 shall pay at least:

— 25 % in Objective 1 and 2 regions as referred to in Article

1 of Regulation (EC) No 1260/1999,

— 45 % in other regions.

Article 11

Specific clauses for Portugal

Where the Portuguese authorities demonstrate that, in a given
year, the aid payable to a producer group in Portugal in accor-
dance with this Regulation is less than that stipulated in Article
14(7) of Regulation (EC) No 2200/96, the aid provided for in
Article 3(2) shall be increased so as to satisfy the provisions of
the aforesaid Article 14.

In the event of a natural disaster recognised by the Portuguese
authorities, Article 2(3) of this Regulation shall apply for the
calculation of the value of marketed production to be used for
the purposes of Article 14(7) of Regulation (EC) No 2200/96.

Article 12

Checks

Article 9

Mergers

Without prejudice to checks carried out in accordance with
Title VI of Regulation (EC) No 2200/96, Member States shall
carry out checks on producer groups to verify compliance with
the conditions for the grant of aid as referred to in Articles 3
and 4.

1.
Aid as provided for in Articles 3 and 4 of this Regulation
may be given, or may continue to be given, to producer groups
which have been granted preliminary recognition under Regu-
lation (EC) No 1432/2003 and which result from the merger
between a producer group granted preliminary recognition
under that Regulation and one or more of the following:

(a) one or more producer groups granted preliminary recogni-

tion pursuant to Regulation (EC) No 1432/2003;

Article 13

Recovery of aid and sanction

Recovery of aid and sanctions as provided for in Article 24 of
Regulation (EC) No 1433/2003 shall apply where a check
carried out pursuant to Article 12 of this Regulation shows
that:

(b) one or more producer organisations recognised pursuant to

Regulation (EC) No 2200/96.

(a) the value of marketed production is less than the amount

used for calculating aid as referred to in Article 3;

2.
For the purposes of calculating the aid payable pursuant
to paragraph 1, the producer group resulting from the merger
shall replace the merging groups or organisations.

(b) aid covered by this Regulation has not been used in accor-
dance with the regulations applicable or with the approved
recognition plan.

Article 10

Article 14

Repeal

Consequences of recognition

Regulation (EC) No 20/98 is repealed.

Aid as provided for in Articles 3 and 4 shall cease once

1.
recognition is granted.

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

2. Where an operational programme is submitted pursuant
to Regulation (EC) No 1433/2003, the Member State shall
ensure that there is no duplicate financing of the measures
financed under the recognition plan.

Article 15

Entry into force

3.
Investments qualifying for the aid or the costs referred to
in Article 4 may be carried over to operational programmes
provided they are in line with Regulation (EC) No 1433/2003.

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

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

Done at Brussels, 3 November 2003.

For the Commission

Franz FISCHLER

Member of the Commission