Commission Regulation (EC) No 103/2004 of 21 January 2004 laying down detailed rules for implementing Council Regulation (EC) No 2200/96 as regards intervention arrangements and market withdrawals in the fruit and vegetable sector
Date: 2004-01-21
Institutions: European Commission
Subjects: fruit, market intervention, vegetable, withdrawal from the market

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COMMISSION REGULATION (EC) No 103/2004

of 21 January 2004

laying down detailed rules for implementing Council Regulation (EC) No 2200/96 as regards inter-
vention arrangements and market withdrawals in the fruit and vegetable sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

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), and in particular Article 30(6) and (7)
and Article 48 thereof,

Whereas:

(1)

(2)

(3)

fruit

The experience gained from the implementation of
Commission Regulation (EC) No 659/97 of 16 April
1997 laying down detailed rules for the application of
Council Regulation (EC) No 2200/96 as regards inter-
vention arrangements
and vegetables
in the
sector (2) has shown that certain changes need to be
made to those arrangements. In the interests of ensuring
that the rules implementing Regulation (EC) No 2200/
96 are alway clear, Regulation (EC) No 659/97 should
be replaced. With a view to rationalising the rules on
withdrawals, Commission Regulation (EC) No 1492/97
of 29 July 1997 laying down detailed rules for the appli-
cation of Council Regulation (EC) No 2200/96 as
regards the fixing of the conditions for the distillation of
certain fruit withdrawn from the market (3) should also
be incorporated into the new regulation. Regulations
(EC) No 659/97 and (EC) No 1492/97 should therefore
be repealed.

Title IV of Regulation (EC) No 2200/96 establishes the
intervention arrangements for the products referred to in
Article 1(2) thereof and provides for the grant of Com-
munity compensation for the products listed in Annex II
thereto. Article 15(3) of the same regulation provides
that operational funds may be used to finance withdra-
wals, particularly of products not listed in Annex II, or
to pay a supplement to the Community compensation
provided for in Title IV. Detailed rules should be laid
down for implementing those provisions.

Since the terms ‘products not put up for sale’,
‘market
withdrawals’ and ‘products withdrawn from the market’
are equivalent, they should be covered by a single defini-
tion. The terms
‘marketed quantity’ and ‘marketed
production’ should also be covered by a single definition,
which should be consistent with the term ‘value of

(1) OJ L 297, 21.11.1996, p. 1. Regulation as last amended by
Commission Regulation (EC) No 47/2003 (OJ L 7, 11.1.2003, p.
64).

(2) OJ L 100, 17.4.1997, p. 22. Regulation as last amended by Regu-

lation (EC) No 1135/2001 (OJ L 154, 9.6.2001, p. 9).

(3) OJ L 202, 30.7.1997, p. 28.

production marketed’ as used in Commission Regulation
(EC) No 1433/2003 of 11 August 2003 laying down
detailed rules for the application of Council Regulation
(EC) No 2200/96 as regards operational funds, opera-
tional programmes and financial assistance (4) and should
thus include quantities withdrawn from the market for
subsequent free distribution.

It should be specified that the provisions relating to
packaging requirements are to apply to products with-
drawn from the market only in the case of miniature
products which might otherwise be confused with
products not meeting the minimum size requirements.

The marketing years for the products concerned and
detailed rules on averages over a three-year period as
referred to in Article 23(5) of Regulation (EC) No 2200/
96 should be defined.

In order to enable the inspection authorities to plan their
inspection operations, producer organisations must
notify them in advance of each withdrawal operation.
Those authorities will then authorise each withdrawal
operation on the basis of the findings from any checks
they perform. Provision should be made for those autho-
rities to be present at
the denaturing of withdrawn
products which are not intended for human consump-
tion after free distribution.

compensation for

Article 23(3) of Regulation (EC) No 2200/96 determines
the Community withdrawal
the
products listed in Annex II thereto. The arrangements
for paying this compensation should permit compliance
at all times with the limits laid down in Article 23 of
Regulation (EC) No 2200/96 as well as payment within
reasonable deadlines.

Since the withdrawals provided for in Article 15(3) of
Regulation (EC) No 2200/96 are financed by the opera-
tional funds, payment should be made in accordance
with Regulation (EC) No 1433/2003. In the interests of
the maximum supplements to the
clarity, however,
Community withdrawal compensation referred to in the
second subparagraph of Article 15(3) of Regulation (EC)
No 2200/96 should be fixed.

(4)

(5)

(6)

(7)

(8)

(4) OJ L 203, 12.8.2003, p. 25.

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(9)

Under the first, second and third indents of Article
30(1)(a) and Article 30(1)(b) of Regulation (EC) No
2200/96,
fruit and vegetables withdrawn from the
market may be distributed free of charge as humani-
tarian aid to certain categories of the needy by charitable
organisations and certain establishments and institutions,
both inside the Community and outside it. The chari-
table organisations involved should be approved before-
hand. The procedures for implementing food aid should
be compatible with the general principles pursued by
the Community regarding food aid in kind.

(10)

In order to facilitate the free distribution of withdrawn
products, the processing of products withdrawn for free
distribution should be authorised, either at the expense
the charitable organisation or through any other
of
procedure which guarantees equal
the
processors concerned.

treatment of

(11) Where fruit and vegetables withdrawn from the market
are intended for free distribution, the transport, sorting
and packaging costs are to be borne by the Community
pursuant to Article 30(6) of Regulation (EC) No 2200/
96. It must be stipulated that the transport costs must be
paid. Standard rates should be fixed for the payment of
transport, sorting and packaging costs.

(12) Article 30(1) of Regulation (EC) No 2200/96 provides
that products withdrawn from the market may be put to
certain uses other than free distribution. The Member
States should be allowed to use the most appropriate
destination, provided this does not distort competition
among the industries concerned. For certain products
withdrawn from the market, one such destination may
be processing into alcohol. In order to ensure that the
distillation of such products does not disturb the market
in alcohol, such distillation alcohol should be denatured
and intended for industrial, non-food uses.

(13) Article 25 of Regulation (EC) No 2200/96 requires the
Member States to establish a national framework for
drawing up the general conditions relating to the with-
drawal methods which respect
the environment. The
minimum content of such conditions should be defined,
in order to ensure that withdrawals are conducted in
conditions which respect the environment, in particular
where withdrawn products are destroyed or distributed
to animals by spreading on the ground.

(14)

Procedures are needed for physical and documentary
checks on withdrawal operations, both at the time of
withdrawal and at the end of the marketing year. In the
event of
infringements, detailed rules should be laid
down for the recovery of sums wrongly paid and for
deterrent penalties in proportion to the seriousness of
the irregularity committed. Monitoring operations must
cover the producer organisations and charitable organi-
sations involved.

(15)

Since setting up the arrangements for implementing this
Regulation will temporarily entail an additional adminis-
trative workload for the Member States, this Regulation
should apply, depending on the products, from the first
marketing year following the date of its entry into force.
Moreover, the provisions relating to transmission of the
producer prices provided for in Regulation (EC) No 659/
97 must continue to apply until 1 July 2004, pending
the adoption of new provisions in a separate act.

(16)

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

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL RULES

Article 1

Scope

This Regulation lays down detailed rules for implementing:

(a) intervention as referred to in Title IV of Regulation (EC) No
2200/96 for the products listed in Annex II to that Regu-
lation;

(b) withdrawals from the market as referred to in Article 15(3)
of Regulation (EC) No 2200/96 for products referred to in
Article 1(2) of that Regulation but not listed in Annex II
thereto.

Article 2

Definitions

For the purposes of this Regulation, ‘products withdrawn
‘market withdrawals’ and ‘products not put

1.
from the market’,
up for sale’ mean products:

(a) not sold through a producer organisation as referred to in
Article 11 of Regulation (EC) No 2200/96, in accordance
with the intervention arrangements referred to in Title IV
of that Regulation;

(b) withdrawn from the market as referred to in Article

15(2)(a) of that Regulation.

2.
For each product, the ‘marketed quantity’ of a producer
organisation, as referred to in Article 23(3) of Regulation (EC)
No 2200/96, shall be the sum of:

(a) the production of members actually sold through the

producer organisation or processed by it;

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(b) the production of members of other producer organisations
marketed through the producer organisation concerned in
accordance with the second and third indents of Article
11(1)(c)(3) of that Regulation;

(c) products withdrawn from the market and intended for free
distribution as referred to in Article 30(1)(a) and (b) of
Regulation (EC) No 2200/96.

The marketed quantity referred to in the first subparagraph
shall not include the production of members of producer orga-
nisations marketed in accordance with the first, second and
third indents of Article 11(1)(c)(3) of Regulation (EC) No 2200/
96.

The marketed production referred to in Article 24 of Regu-
lation (EC) No 2200/96 shall be equivalent to the marketed
quantity as defined in the first subparagraph of this paragraph.

(b) citrus fruit, for which it shall run from 1 October to 30

September the following year.

Article 5

Three-year average

The average over a three-year period referred to in Article
23(5) of Regulation (EC) No 2200/96 shall be the arithmetic
mean of the withdrawals recorded as a percentage of the quan-
tity marketed during the current marketing year and the two
previous marketing years.

CHAPTER II

Article 6

MARKET WITHDRAWALS

Prior notification of withdrawal operations

Article 3

Marketing standards

1. Where standards have been adopted pursuant to Article 2
of Regulation (EC) No 2200/96, products withdrawn from the
market must comply with those standards, except for the provi-
sions on the presentation and marking of products. Products
may be withdrawn in bulk in large-capacity crates, all sizes
together, provided the minimum requirements for class II, in
particular as regards quality and size, are complied with.

However, miniature produce as defined in the relevant stan-
dards must comply with the applicable marketing standards,
including the provisions on the presentation and marking of
products.

If no marketing standards have been adopted pursuant to
2.
Article 2 of Regulation (EC) No 2200/96,
the minimum
requirements laid down in Annex I hereto must be met. The
Member States may lay down additional rules supplementing
these minimum requirements.

thereof

Producer organisations and associations

1.
shall
notify the competent national authorities, by written telecom-
munication or electronic message, of each withdrawal opera-
tion they undertake. Such notification shall specify, in particu-
lar, the list of products taken into intervention and their chief
characteristics according to the relevant marketing standards,
their
the estimated quantity of each product concerned,
intended destination and the place where the withdrawn
products may be inspected as provided for in Article 23(1).
Notifications shall include a certificate attesting that the with-
drawn products conform to the standards in accordance with
Article 2 of Regulation (EC) No 2200/96 or, where no such
standards exist, the minimum requirements laid down in Annex
I hereto.

2.
The Member States shall lay down the arrangements for
producer organisations to make the notification provided for in
paragraph 1, in particular as regards time limits.

3. Within the time limits referred to in paragraph 2, the
Member States shall:

(a) either carry out a check as referred to in Article 23(1),
it shall

following which,
authorise the withdrawal operation as noted in the check;

if no irregularities are detected,

Article 4

Marketing years

The marketing year for products qualifying for Community
withdrawal compensation as referred to in Article 23(3) of
Regulation (EC) No 2200/96 and products qualifying for with-
drawal as referred to in Article 15(3) of that Regulation shall
run from 1 January to 31 December for all products except:

(a) apples and pears, for which it shall run from 1 August to

31 July of the following year;

(b) or, in the cases referred to in Article 23(3), not carry out a
check as referred to in Article 23(1), in which case it shall
inform the producer organisation of this by written tele-
communication or electronic message and authorise the
withdrawal operation as notified.

4.
The Member States shall take any measures needed to
ensure that growers who do not belong to a producer organisa-
tion are actually able to benefit from the intervention arrange-
ments provided for in Article 24 of Regulation (EC) No 2200/
96.

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Article 7

Payment of Community withdrawal compensation

paid shall be reduced by 20 % if the file is less than one month
late, 50 % if it is less than three months late and 100 % if it is
more than three months late.

1.
For the products listed in Annex II to Regulation (EC) No
2200/96, the Community withdrawal compensation referred to
in Articles 23, 24 and 26 of that Regulation shall be paid,
provided the producer organisations referred to in Article 11 of
Regulation (EC) No 2200/96 or their associations submit a
payment application file to the competent authority of the
Member State.

6. When considering each application, the Member States
shall ensure that the quantity not put up for sale since the
beginning of the marketing year concerned does not exceed the
limits laid down in Articles 23 and 24 of Regulation (EC) No
2200/96. Where those limits are exceeded, the Community
withdrawal compensation shall be paid only up to those limits,
and taking account of the compensation already paid. Surplus
quantities shall be included when the next file is considered.

The Member States shall fix the minimum period to be
2.
covered by the payment application files referred to in para-
graph 1.

The payment application files referred to in paragraph 1

3.
shall be accompanied by supporting documents relating to:

(a) the quantities of each product marketed since the beginning

of the marketing year concerned;

7.
Subject to the penalties provided for in Articles 26 and
27, the Member States shall pay the Community withdrawal
compensation to producer organisations or their associations,
minus the net receipts they have earned on the products with-
drawn from the market, within four months of receiving their
complete payment application file.

(b) the quantities of each of the products withdrawn from the

market;

Article 8

(c) the net

receipts earned from the withdrawn products

concerned;

Specific rules on withdrawals financed from operational
funds

(d) the final destination of each of the products concerned, in
the form of a take-over certificate (or equivalent document)
attesting that the withdrawn products have been taken over
by a third party with a view to their free distribution, distil-
lation, use as animal feed or industrial non-food use;

(e) a statement that the withdrawal operations concerned have
been authorised by the Member State for the quantities
concerned in accordance with Article 6(3).

The quantities referred to at (a) and (b) shall be broken down as
between:

— producer organisations themselves,

— individual growers not belonging to a producer organisa-
tion, on whose behalf a producer organisation has made
withdrawals in accordance with Article 24 of Regulation
(EC) No 2200/96.

In the case of products which have been composted or biode-
graded, payment application files must contain a supporting
document as drawn up by the Member States pursuant to
Article 22 of this Regulation.

4.
Producer organisations must send all their full payment-
application files to the national authorities no later than one
month after the end of the marketing year for the products
concerned.

Regulation (EC) No 1433/2003 shall apply to the
1.
payment of withdrawal compensation for products not listed in
Annex II to Regulation (EC) No 2200/96 and the grant of a
supplement
to the Community withdrawal compensation
provided for in (a) and (b) of the first subparagraph of Article
15(3) of Regulation (EC) No 2200/96.

2. Member States fixing a maximum level for the supple-
ment to the Community withdrawal compensation according
to the second subparagraph of Article 15(3) shall take account
of the following factors:

(a) withdrawals are a short-term instrument
supply of the market in fresh produce;

for stabilising

(b) withdrawals may under no circumstances be used as an

alternative outlet to the market;

(c) withdrawals must not disturb the management of
market in fruit and vegetables intended for processing.

the

Member States shall ensure that producer organisations also
take account of these factors when fixing the amount of with-
drawal compensation referred to in (a) in the first subparagraph
of Article 15(3) of Regulation (EC) No 2200/96.

5. Where a producer organisation fails
its
payment application files by the deadline provided for in para-
graph 4, the amount of Community withdrawal compensation

to submit

The maximum supplements which may be paid by Member
States applying the second subparagraph of Article 15(3) of
Regulation (EC) No 2200/96 shall be as set out in Annex II
hereto.

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Article 9

Article 11

Reporting data on withdrawals

Free distribution to institutions and establishments

Before the 15th day of each month, the Member States
1.
in the
shall forward to the Commission by electronic mail,
format drawn up by the Commission, an estimate of
the
products not put up for sale in the previous month, broken
down by product.

2.
At the end of each marketing year, the Member States
shall forward to the Commission the details set out in Annex
III for each product concerned.

These details shall be sent:

Products withdrawn from the market may be made available to
penal institutions and social, educational and health institutions
as referred to in the second indent of Article 30(1)(a), and
Article 30(1)(b) of Regulation (EC) No 2200/96 and designated
by the Member States.

Old people's homes, nurseries and psychiatric institutions shall
be treated as belonging to the above establishments.

tomatoes,

(a) not later than 15 May following each marketing year in the
case of
apricots,
aubergines,
peaches, nectarines, grapes, melons, watermelons and
products not listed in Annex II to Regulation (EC) No
2200/96;

cauliflowers,

(b) not later than 15 February following each marketing year
sweet oranges,

in the case of pears, apples,
satsumas, clementines and mandarins.

lemons,

3.
If the Member States do not forward the details referred
to in paragraph 2, or if the details forwarded appear incorrect
in the light of objective facts in the Commission's possession,
the Commission may suspend payment of the advances on the
provision for expenditure referred to in Article 7(2) of Council
Regulation (EC) No 1258/1999 (1) pending provision of the
requisite details.

Article 12

Free distribution outside the Community for the benefit
of vulnerable groups in third countries

1.
Paragraphs 2 to 7 of this Article shall apply in the case
referred to in the third indent of Article 30(1) of Regulation
(EC) No 2200/96.

Products dispatched by the

2.
charitable organisations
referred to in Article 10 as humanitarian aid shall not be
eligible for export
refunds. Products withdrawn from the
market and then processed in accordance with Articles 13 and
14 may not be distributed in third countries by the charitable
organisations concerned.

CHAPTER III

DESTINATION OF WITHDRAWN PRODUCTS

The customs export document, the transit document and any
T5 document issued shall be endorsed ‘without refund’.

SECTION 1

Fr e e di str i but i on

Article 10

Free distribution to charitable organisations

1.
In accordance with the first and third indents of Article
30(1)(a) of Regulation (EC) No 2200/96, products withdrawn
from the market during a given marketing year may be made
available to charitable organisations approved by the Member
States for free distribution, at their request.

Every three years,

2.
the Member States shall send the
Commission by electronic mail the list of approved charitable
organisations referred to in paragraph 1. The Commission shall
forward these lists to all the Member States.

3.
The Member States shall take the necessary steps to facili-
tate contacts and operations between producer organisations
and approved charitable organisations.

(1) OJ L 160, 26.6.1999, p. 103.

3.
The Member States may submit to the Commission a
request to carry out an operation to distribute products with-
drawn from the market in cases justified by an emergency. All
requests must be justified by providing the following informa-
tion in particular:

(a) the country of destination and the reasons for each opera-
tion, based on the existence of a recognised humanitarian
crisis, a request from the beneficiary countries and clearly
identified needs of well-defined vulnerable groups;

(b) the type of products to be supplied and their nutritional

value in relation to the grounds for the operation;

(c) the number of beneficiaries justifying the volumes to be

distributed;

(d) the beneficiary communities and groups and the planned

distribution points in the third countries;

(e) the names of the charitable organisations involved in each

operation and their respective roles;

(f) the request from the government of the country or coun-

tries of destination for the planned operation.

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The Commission shall decide on a case-by-case basis
4.
whether
to
to authorise the operation concerned, subject
amendments where necessary, by evaluating the justification
referred to in paragraph 3 and taking account, in particular, of:

(a) the performance guarantees;

(b) the market situation in the Community and the third coun-

tries concerned;

(c) the existence of a humanitarian crisis;

(d) whether a request has been formulated by the beneficiary

countries;

(e) the existence of clearly identified needs of well-defined

vulnerable groups;

(f) compliance with the principles set out in the London Food

Aid Convention (1).

5.
All subsequent substantial amendments to operations as
referred to in paragraph 3 shall be notified to the Commission,
which shall have one month in which to object to such amend-
ments.

6.
The Member States shall forward to the Commission a
copy of the notification made to the Committee on Surplus
Disposal of the Food and Agriculture Organisation (FAO) for
each operation.

7.
After each operation, the Member States shall send the
Commission the information provided for in Annex IV. At its
request, they shall inform the Commission about the course of
each operation in the third countries.

Article 13

free distribution processed by processors accepting payment in
kind. To that end, they may organise, in accordance with the
terms of
this Article, one or more standing invitations to
tender, public auctions or other procedures as decided by the
Member State which ensure that competition between inter-
takes place under equal conditions. The
ested operators
processed products intended for free distribution shall then be
distributed by the charitable organisations, institutions or estab-
lishments concerned.

3. Member States wishing to implement a procedure
referred to in paragraph 2 shall ensure that it is appropriately
publicised. The processing period covered by the procedure
may not exceed one year.

4. Where necessary,
the Member State shall group the
requirements expressed under paragraph 1 into batches of
processed products.

Article 15

Draft contracts and obligations on processors

1.
After implementing the procedure referred to in Article
14(2), the Member State shall draft a contract for a processor
detailing, for each batch, at least the following information:

(a) the fresh produce concerned and the period during which
products withdrawn from the market may be available;

(b) the geographical areas in which products withdrawn from

the market are likely to be available;

Processing at the expense of the charitable organisation

(c) a description of the procedure followed by the Member

State to choose the processor;

Any charitable organisation as referred to in Article 10 may
process the products withdrawn from the market, or have them
processed at its expense, for free distribution operations. All
the resulting products must be distributed free of charge.

Article 14

Processing with payment in kind

interested charitable organisations,

No later than the date set by the competent national
1.
authority,
institutions and
establishments referred to in Articles 10 and 11 respectively
shall inform that authority of their requirements for products
processed from fruit and vegetables withdrawn from the
market, undertaking to take them over and distribute the full
quantity free of charge.

Depending on their requirements as indicated in accord-
2.
ance with paragraph 1,
the Member States may have the
products that are withdrawn from the market and intended for

(1) OJ L 222, 24.8.1999, p. 40.

(d) the identity of the processor selected;

(e) a detailed description of the product processed from fruit
and vegetables to be supplied and its preparation for distri-
bution, the date by which it must be supplied and the
quantity which the processor undertakes to supply for a
given quantity of withdrawn products available;

(f) the identity of the charitable organisations, institutions or

establishments for which the products are intended.

2.
The Member State shall forward the draft contract to the
Commission for approval. The Commission shall reject any
draft contracts where the ratio of fresh produce to processed
products is too high. The Member State shall award the
contract once the Commission has approved it.

For each batch,

the Member State shall

3.
inform the
processor, as withdrawals are made, of the producer organisa-
tions from which it may obtain supplies of fresh products, and
shall grant the processor priority over other possible destina-
tions for the withdrawn products.

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The processor must process all the products withdrawn
4.
from the market which are delivered to it. Any withdrawn
products in excess of the quantities needed to manufacture the
processed products intended for
free distribution shall be
payment in kind to compensate for the processor's manufac-
turing costs.

The transport costs shall be paid to the party which actu-
2.
ally bears the financial cost of the transport operation in ques-
tion.

Payment shall be subject to the presentation of supporting
documents certifying in particular:

5.
After manufacture, the processed product shall be made
available to the charitable organisations, institutions or estab-
lishments concerned no later
the
processor receives the raw materials, in proportion to the quan-
tity of fresh product made available to the contractor.

than one month after

6.
The processor shall lodge a security to ensure that the
products are supplied in accordance with the tender. This
security shall be based on the net weight of fresh product
requested against the processed product manufactured. It shall
be equivalent:

(a) for the products referred to in Annex II to Regulation (EC)
No 2200/96, to the Community withdrawal compensation
referred to in Article 26 of that Regulation;

(b) for other products, to an amount fixed by the Member

State.

The security shall be released as supplies of the processed
product are delivered and once the successful tenderer has
provided evidence that all the fresh products made available to
it against the delivery of the processed product have been
processed.

Article 16

Transport costs

for

The transport costs

1.
the free distribution of all
products withdrawn from the market shall be met by the Guar-
antee Section of the European Agricultural Guidance and Guar-
antee Fund (EAGGF) on the basis of the flat-rate amounts set
according to the distance between the point of withdrawal and
the place of delivery set out in Annex V.

In the case of free distribution outside the Community, the flat-
rate amounts set out in Annex V shall cover the distance
between the point of withdrawal and the point of exit from the
Community.

In the case of sea transport, the Commission shall determine
the transport costs which may be met on the basis of the real
transport costs and the distance. The compensation thus deter-
mined may not exceed the cost of land transport over the
shortest route between the place of loading and the theoretical
point of exit. A correcting coefficient of 0,6 shall be applied to
the amounts provided for in Annex V.

(a) the names of the beneficiary organisations;

(b) the quantity of the products concerned;

(c) acceptance by the beneficiary organisations and the means

of transport used;

(d) the transport costs actually incurred.

Article 17

Sorting and packing costs

The costs of sorting and packaging fresh fruit and vegeta-
1.
bles withdrawn from the market for free distribution as referred
to in Article 30(1) of Regulation (EC) No 2200/96 shall be
borne by the EAGGF Guarantee Section at the flat-rate amount
of EUR 132 per tonne net weight, in the case of products put
up in packages of less than 25 kilograms net weight. The cost
of fresh products intended for the manufacture of processed
products as referred to in Articles 13 and 14 of this Regulation
shall not be borne.

2.
Packages of products for free distribution shall display the
European emblem, together with one or more of the following
references:

— Producto destinado a su distribución gratuita [Reglamento

(CE) no 103/2004]

— Produkt urcˇený k bezplatné distribuci [narˇízení (ES) cˇ. 103/

2004]

— Produkt til gratis uddeling (forordning (EF) nr. 103/2004)

— Zur kostenlosen Verteilung bestimmtes Erzeugnis (Verord-

nung (EG) Nr. 103/2004)

— Tasuta jagamiseks mõeldud tooted [määrus (EÜ) nr 103/

2004]

— Προϊόν προοριζόµενο για δωρεάν διανοµή [κανονισµός (ΕΚ)

αριθ. 103/2004]

— Product for free distribution (Regulation (EC) No 103/2004)

— Produit destiné à la distribution gratuite [règlement (CE) no

103/2004]

— Prodotto destinato alla distribuzione gratuita [regolamento

(CE) n. 103/2004]

— Produkts paredze¯ts bezmaksas izplatı¯šanai [Regula (EK) Nr.

103/2004]

— Produktas

skirtas nemokamai distribucijai

[Reglamentas

(EB) Nr. 103/2004]

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— Térítésmentes terjesztésre szánt termék (103/2004. sz. EK

rendelet)

— Prodott destinat għad-distribuzzjoni bla ħlas [Regolament

(KE) nru. 103/2004]

— Voor gratis uitreiking bestemd product (Verordening (EG)

nr. 103/2004)

— Produkt przeznaczony do bezpłatnej dystrybucji [rozpor-

za˛dzenie (WE) nr 103/2004]

— Produto destinado a distribuição gratuita [Regulamento (CE)

no 103/2004]

— Výrobok urcˇený na bezplatnú distribúciu [nariadenie (ES) cˇ.

103/2004]

— Proizvod, namenjen za prosto razdelitev [Uredba (ES) št.

103/2004]

— Ilmaisjakeluun tarkoitettu tuote (asetus (EY) N:o 103/2004)

— Produkt för gratisutdelning (förordning (EG) nr 103/2004).

Where distribution is to take place outside the Community, the
reference shall also be written in the language(s) of the third
countries concerned.

Packages of fresh products to be used in the manufacture of
the processed products referred to in Articles 13 and 14 shall
not show these references.

3.
The costs of sorting and packaging shall be paid to the
producer organisations which have performed those opera-
tions.

Payment shall be subject to the presentation of supporting
documents certifying in particular:

(a) the names of the beneficiary organisations;

(b) the quantity of the products concerned;

(c) acceptance by the beneficiary organisations, specifying the

presentation.

SECTION 2

Di sti llati on, n on-food uses and a ni mal feed

Article 18

Common rules

1.
The supply of, and award of contracts for, the products
referred to in the fourth and fifth indents of Article 30(1)(a) of
Regulation (EC) No 2200/96 with a view to non-food uses or
for use in animal feed after processing by the feedingstuffs
industry, and the products referred to in Article 30(1)(c) of that
Regulation for distillation into alcohol of a strength of more
than 80 % by volume shall be carried out either by a standing
invitation to tender, public auction or other procedure adopted
by a Member State ensuring that competition between inter-
ested operators takes place on an equal basis.

2.
The supply and award of contracts referred to in para-
graph 1 shall be carried out no later than three months after
the beginning of the marketing year of the product in question.

The list of bodies designated by the Member States to
3.
carry out the supply and award referred to in paragraph 1 shall
be published by the Commission in the C series of the Official
Journal of the European Union.

take the measures necessary to
4. Member States shall
prevent any distortion of competition in the supply of, and
award of contracts
to the distilleries
concerned.

the products

for,

At

the Commission's

5.
shall
communicate the results of the operations covered by para-
graphs 1 to 4 within seven days.

request, Member States

Article 19

Distillation

In the case of distillation as referred to in Article 30(1) of Regu-
lation (EC) No 2200/96,
the alcohol obtained from the
products concerned shall be subject to special denaturing in
accordance with Commission Regulation (EC) No 3199/93 (1)
and shall be for industrial and not food use.

Article 20

Animal feed

1.
The products withdrawn from the market during a given
marketing year may be delivered fresh to livestock farmers
approved by the Member States at their request, in accordance
with paragraph 2, for feeding to livestock. Zoos, game reserves
and other enterprises having livestock to which withdrawn
fresh products can suitably be fed shall be treated as livestock
farmers.

2.
The Member States shall approve the livestock farmers
and similar undertakings. The approval shall state, for each live-
stock farmer or similar undertaking, the maximum quantities
of withdrawn products which may be delivered, in view of the
livestock concerned and the authorised methods for distributing
the withdrawn products to the animals. Approval shall be given
for a maximum period of three years.

SECTION 3

Obli g a ti ons on r e ci p i e nts of p r oduc ts a nd na ti on al
fr a me w or k

Article 21

Undertakings by the recipients of withdrawn products

The recipients of withdrawn products referred to in Articles 10,
11 and 18 shall undertake to:

(a) comply with this Regulation;

(b) keep separate stock records and financial accounts for the

operations in question;

(1) OJ L 288, 23.11.1993, p. 12.

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(c) accept the checks provided for by the Community rules;

(d) provide the supporting documents referred to in Article

7(3)(d).

in Annex IV to Commission Regulation (EC) No 1148/2001 (1).
The check shall take place following receipt of the notification
referred to in Article 6(1) of this Regulation, within the dead-
lines provided for in Article 6(2).

Recipients of withdrawn products intended for distillation shall
also undertake not to receive additional aid for the alcohol
produced from the products concerned.

Article 22

Environmental management

1. Member States shall notify the Commission by electronic
mail of the national framework referred to in the third para-
graph of Article 25 of Regulation (EC) No 2200/96. They shall
inform the Commission of any amendments to the above
framework. The Commission shall forward each framework to
all the other Member States.

2.
The first-level checks provided for in paragraph 1 shall
cover 100 % of the quantity of products withdrawn from the
market during the marketing year for each product. At the end
of this check, the withdrawn products shall be denatured under
the supervision of the competent authorities under the terms
and conditions laid down by the Member State and to its satis-
faction.

3. Where the first, second and third indents of Article
30(1)(a) and Article 30(1)(b) of Regulation (EC) No 2200/96
apply, the Member States may check a smaller percentage,
provided it is not less than 10 % of the quantities concerned
during the marketing year. The products concerned shall not
be denatured in accordance with paragraph 2 of this Article. In
the event that the checks reveal significant irregularities, the
competent authorities shall carry out additional checks.

the

including

The frameworks referred to in paragraph 1 shall lay down
2.
the terms under which producer organisations are authorised
to avail themselves of Article 30(2) of Regulation (EC) No
2200/96,
and biodegradation
processes authorised by a Member State, the procedures to be
followed by the producer organisations which use them and
the documents certifying the final destination of the products
which must be submitted by producer organisations together
with their payment applications as provided for in Article
7(3)(d) of this Regulation.

composting

If a Member State authorises

the livestock farmers
3.
referred to in Article 20(2)
to distribute the withdrawn
products to animals by spreading them on the ground on an
agricultural plot, the framework shall also stipulate the terms
on which farmers are authorised to avail themselves of this
possibility.

CHAPTER IV

CHECKS AND PENALTIES

SECTION 1

Ch e cks

Article 23

First-level checks

1.
The Member States shall make first-level checks on with-
drawal operations in each producer organisation, comprising a
documentary and identity check and a physical check, where
appropriate by sampling, of the weight of the products with-
drawn from the market and a check on compliance with the
rules in Article 3, in accordance with the procedures laid down

Article 24

Second-level checks

At the end of the marketing year, the Member States shall
1.
make second-level checks. They shall
lay down criteria for
analysing and evaluating the risk of any given producer organi-
sation carrying out non-compliant withdrawal operations. Such
criteria shall relate, among other things, to the findings of
previous first- and second-level checks, and whether or not a
producer organisation has some form of quality-assurance
procedure. They shall use these criteria to determine for each
producer organisation a minimum frequency of second-level
checks.

The checks referred to in paragraph 1 shall comprise
2.
documentary and, if necessary, on-the-spot checks on interven-
tion operations at the premises of producer organisations and
the recipients of withdrawn products, in order to ensure that
the requisite conditions for payment of Community withdrawal
compensation have been complied with. These checks shall
include:

(a) the specific stock and accounting records to be kept by all
producer organisations which carry out one or more with-
drawal operations during the marketing year concerned;

(b) verification of the quantities marketed as declared in the
payment applications, checking in particular the stock and
accounting records, the invoices and, where necessary, their
veracity and ensuring that the declarations tally with the
accounting and/or tax data of the producer organisations
concerned;

(1) OJ L 153, 13.6.2001, p. 9.

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(c) checks that the accounts are correct, in particular the vera-
city of net
receipts by the producer organisations as
declared in their payment applications, the proportionality
of any withdrawal costs,
in the accounts
regarding the receipt by the producer organisations of the
Community withdrawal compensation and any amounts
thereof paid on to members, ensuring that these tally;

the entries

(d) checks on the destination of withdrawn products as
declared in the payment applications and checks to ensure
that
and recipients have
complied with this Regulation.

the producer organisations

least 30 % of

The checks referred to in the first subparagraph shall be made
each year on at
the producer organisations
concerned and the recipients associated with those organisa-
tions and, for each producer organisation concerned, at least
once every five years during which withdrawals are carried out.
Each check shall include a sample representing at least 5 % of
the quantities withdrawn during the marketing year by the
producer organisation.

The stock and accounting records referred to in (a) in the first
subparagraph shall show,
the
following movements (expressed in quantities):

for each product withdrawn,

SECTION 2

R e c ov e r y a nd p e na lti e s

Article 25

Recovery

Unduly paid compensation shall be recovered, with interest,
independent producers or
from the producer organisations,
recipients of withdrawn products concerned,
in particular
where:

(a) the products not put up for sale have not been disposed of
as provided for in Article 30 of Regulation (EC) No 2200/
96;

(b) the disposal of the products not put up for sale causes
substantial environmental damage and/or does not comply
with the framework referred to in Article 22 of this Regu-
lation.

(a) the production delivered by members of the producer orga-
nisation and by members of other producer organisations
in accordance with the second and third indents of Article
11(1)(c)(3) of Regulation (EC) No 2200/96;

The interest rate to be applied shall be calculated in accordance
with national
legislation, and shall not be lower than the
interest rate generally applicable to recovery under national
rules.

(b) the production delivered by operators not covered by (a);

(c) sales by the producer organisation, broken down by
products prepared for the fresh market and other types of
products (including raw materials for processing);

(d) products withdrawn from the market.

The checks on the destination of products referred to in (d) in
the first subparagraph shall include, in particular:

(a) a sample check on the separate accounts to be kept by reci-
pients and, where necessary, verification that these tally
with the accounts required under national law;

(b) checks on compliance with the relevant environmental

requirements;

(c) for distillation, checks that

for which the
contract is awarded has been processed into alcohol of a
strength of more than 80 % by volume, denatured and put
to an industrial use.

the product

3.
If the second-level checks reveal significant irregularities,
the competent authorities shall carry out more detailed second-
level checks
the marketing year concerned and shall
increase the frequency of second-level checks on the producer
their associations) concerned during the
organisations
following marketing year.

for

(or

Article 26

Financial penalties

If, following the notification provided for in Article 6 and
1.
a check as referred to in Article 23, irregularities are found
with regard to the standards referred to in Article 2 of Regu-
lation (EC) No 2200/96 or the minimum quality requirements
set out in Annex I to this Regulation, the recipient/applicant
shall be required:

(a) to pay the amount of the compensation unduly applied for,
calculated on the basis of
the quantities of withdrawn
products not in conformity with the standards or minimum
requirements, if those quantities are less than 10 % of the
quantities notified pursuant to Article 6 of this Regulation;

(b) to pay the double amount of the compensation unduly
applied for, calculated on the basis of the quantities of
withdrawn products not in conformity with the standards
or minimum requirements, if those quantities are between
10 % and 25 % of the quantities notified pursuant to Article
6 of this Regulation;

(c) to pay the amount of the compensation for the entire quan-
tity notified pursuant to Article 6 of this Regulation, where
the quantities of withdrawn products not in conformity
with the standards or minimum requirements exceed 25 %
of the quantity notified.

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Except in cases of obvious error, where irregularities are
2.
found in the application of this Regulation, the recipient/appli-
cant shall be required:

(a) if the compensation has already been paid, in addition to

recovery as provided for in Article 25:

(i) to pay an amount equal to the amount unduly paid, in

cases of fraud;

(ii) to pay 50 % of the amount unduly paid, in other cases;

(b) in cases where applications for compensation have been
submitted under Article 7 but no compensation has been
paid:

(i) to pay the compensation unduly applied for, in the case

of fraud;

(ii) to pay 50 % of the amount unduly applied for, in other

cases.

Article 28

Payment of amounts

Sums recovered, with the interest accrued and the amount of
the penalty, shall be paid to the responsible paying agency and
deducted from expenditure financed by the EAGGF.

Article 29

National provisions

Articles 23 to 28 shall apply without prejudice to any measures
which the Member States deem necessary to ensure compliance
with Title IV and Article 15 of Regulation (EC) No 2200/96
and any other penalties to be adopted pursuant to Article 48 of
that Regulation.

Article 27

Additional penalties

CHAPTER V

TRANSITIONAL AND FINAL PROVISIONS

Article 30

Transitional provisions

1. Where irregularities attributable to the recipients of with-
drawn products are detected during checks made in accordance
with Articles 23 and 24, the following shall apply:

(a) The approval of recipients as referred to in Article 10 and
Article 20(2) shall be withdrawn. This shall take effect
immediately and continue for at least one marketing year,
and may be extended depending on the seriousness of the
irregularity. Institutions and establishments as referred to in
Article 11 shall not be eligible to benefit from free distribu-
tion operations in the following marketing year.

(b) Recipients as referred to in Articles 18, 19 and 20 shall be
excluded from benefiting from the Articles concerned for at
extended
least one marketing year, which may be
depending on the seriousness of the irregularity.

(c) Recipients of products withdrawn from the market shall be
obliged to repay the value of the products they receive,
calculated in accordance with Article 3(4) of Regulation
(EC) No 1433/2003,
the sorting and packaging costs
received and the transport costs received, plus interest
calculated by reference to the time which has elapsed
between receipt of the product and repayment by the bene-
ficiary.

In the event of a false declaration made deliberately or
2.
through gross negligence, the Member State shall exclude the
producer organisation from Community withdrawal compensa-
tion and entitlement to make withdrawals as referred to in
Article 15(2)(a) of Regulation (EC) No 2200/96 for one to five
in which the irregularity is
marketing years following that
detected, depending on the seriousness of the irregularity.

As an exception to Article 4, the 2004/05 marketing year

1.
shall cover the following periods:

(a) for melons and watermelons, from 1 April 2004 to 31

December 2004;

(b) for cauliflowers, apricots, nectarines, peaches and table

grapes, from 1 May 2004 to 31 December 2004;

(c) for pears, from 1 June 2004 to 31 July 2005;

(d) for apples, from 1 July 2004 to 31 July 2005;

(e) for lemons, from 1 June 2004 to 30 September 2005.

For the 2002/03 and 2003/04 marketing years, the three-
2.
year period referred to in Article 5 to be taken into considera-
tion shall be that covered by the 2002/03, 2003/04 and 2004/
05 marketing years.

Article 31

Repeal

Regulations (EC) No 659/97 and (EC) No 1492/97 are hereby
repealed.

However, Article 7 of Regulation (EC) No 659/97 shall apply
until 1 July 2004.

References to the repealed regulations shall be construed as
references to this Regulation and are to be read in conjunction
with the correlation table in Annex VI.

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Article 32

Entry into force

This Regulation shall enter into force on the 20th day following that of its publication in the Official Journal
of the European Union.

It shall apply for each product from the beginning of the first marketing year following its entry into force
for the product concerned as defined in Article 4 and Article 30(1).

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

Done at Brussels, 21 January 2004.

For the Commission

Franz FISCHLER

Member of the Commission

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MINIMUM REQUIREMENTS FOR PRODUCTS INTENDED FOR INTERVENTION

ANNEX I

1. Products intended for intervention must be:

— whole,

— sound; products affected by rotting or deterioration such as to make them unfit for consumption are excluded,

— clean, practically free from any visible foreign matter,

— practically free from pests and damage caused by pests,

— free of abnormal external moisture,

— free of any foreign taste and/or smell.

2. Products must be sufficiently developed and ripe, taking account of their type.

3. Products must be characteristic of the variety and/or commercial type.

MAXIMUM SUPPLEMENTS TO THE COMMUNITY WITHDRAWAL COMPENSATION

ANNEX II

Product

Maximum supplement

(EUR/tonne)

Tomatoes

Cauliflowers

Apples

Grapes

Apricots

Nectarines

Peaches

Pears

Aubergines

Oranges

Mandarins

Clementines

Satsumas

Lemons

Melons

Water melons

80,1

65,0

62,3

74,3

91,9

123,9

115,4

64,4

36,5

18,5

44,8

7,0

0,0

42,6

42,0

27,0

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ANNEX III

INTERVENTION REPORTING

Information which the Member States must transmit to the Commission at the end of each marketing year in
accordance with Article 9(2)

1. For each product listed in Annex II to Regulation (EC) No 2200/96, and for every other product concerned:

(a) total quantities not put up for sale (tonnes);

(b) the amounts of payments by the Member States (in euro or in national currency), broken down into Community
withdrawal compensation, supplements to Community withdrawal compensation and compensation for with-
drawal of products not listed in Annex II.

2. For each product referred to in Annex II to Regulation (EC) No 2200/96 and, at the Commission's request, certain
products not listed in Annex II which have been withdrawn in significant quantities during the marketing year
concerned or a previous marketing year:

(a) monthly breakdown of quantities not put up for sale (tonnes);

(b) breakdown of quantities not put up for sale (tonnes) by destination as provided for in Article 30 of Regulation

(EC) No 2200/96.

3. Summary table showing quantities marketed and not put up for sale (tonnes) by recognised producer organisation
and by product (listed in Annex II to Regulation (EC) No 2200/96 and, where applicable, not listed in Annex II).

ANNEX IV

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ANNEX V

TRANSPORT COSTS UNDER FREE DISTRIBUTION ARRANGEMENTS

Distance between the place of withdrawal and the place of delivery (1)

Transport costs
(EUR/tonne)

Less than 25 km

From 25 km to 200 km

From 200 km to 350 km

From 350 km to 500 km

From 500 km to 750 km

750 km or more

15,5

32,3

45,2

64,5

83,9

102

Supplement for refrigerated transport: EUR 7,7/tonne.
(1)

In the case referred to in Article 13, the distance between the place of withdrawal and the place of delivery of the processed product,
via the place of processing.
In the case referred to in Article 14, the distance between the place of processing and the place of distribution of the processed
product (fresh produce as referred to in Article 14 does not qualify for reimbursement of transport costs).

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ANNEX VI

CORRELATION TABLE

Regulation (EC) No 659/97

Regulation (EC) No 1492/97

This Regulation

Article 1

Article 2(1)
Article 2(2)
Article 2(3)

Article 3

Article 4

Article 5(1)
Article 5(2)
Article 5(3)

Article 6(1)
Article 6(2) and (3)

Article 7

Article 8(1)
Article 8(2)
Article 8(3)

Article 9(1)
Article 9(2)
Article 9(3)

Article 10

Article 11(1)
Article 11(2)
Article 11(3)

Article 12

Article 13

Article 14(1)
Article 14(2)
Article 14(3)

Article 14a

Article 14b(1)
Article 14b(2)
Article 14b(3)
Article 14b(4)
Article 14b(5)
Article 14b(6)
Article 14b(7)
Article 14b(8)

Article 15(1)
Article 15(2)

Article 16(1)
Article 16(2)
Article 16(3)

Article 17(1)
Article 17(2)
Article 17(3)
Article 17(4)

Article 1

Article 2(1)
Article 3(1)
Article 3(2)

Article 2(2)

Article 4

Article 7(1)
Article 7(2) and (3)
Article 7(6)

Article 8(1)
Article 8(2)

—

Article 6(1), (2) and (3)
—
Article 6(4)

Article 9(1)
Article 9(2)
Article 9(3)

Article 22

Article 10(1)
Article 21
Article 10(2)

Article 11

Article 10(3)

Article 10(1)
Article 12(1)
Article 12(2) to (6)

Article 13

Article 14(2) and Article 15(4)
Article 14(3)
Article 14(1)
Article 14(4)
Article 15(1) and (2)
Article 15(3)
Article 15(5)
Article 15(6)

Article 16(1)
Article 16(2)

Article 17(1)
Article 17(2)
Article 17(3)

—
Article 23(1) and (2)
Article 24(1) and (2)
Article 24(3)

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Regulation (EC) No 659/97

Regulation (EC) No 1492/97

This Regulation

Article 18(1)
Article 18(2)
Article 18(3)
Article 18(4)

Article 19(1)

Article 19(2)
Article 19(3)

Article 20(1)
Article 20(2)
Article 20(3)
Article 20(4)
Article 20(5)
Article 20(6)
Article 20(7)

Article 21

Annex I
Annex II
Annex III
Annex IV
Annex V
Annex VI
Annex VII
Annex VIII

—
Article 23(3)
—
—

Article 25
Article 26(2)
Article 28
Article 27(2)

Article 27(1)
Article 27(1)
Article 27(1)
—
Article 27(1)
Article 25
Article 28

Article 29

—
—
—
Annex III
Annex V
Annex IV
Annex I
Annex II

Article 18(1)
Article 18(2)
Article 18(3)
Article 19
Article 24(2)
Article 18(4)
Article 18(5)

Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7