Commission Regulation (EC) No 1761/2004 of 12 October 2004 laying down specific measures in the cauliflower sector - See 32004R1761R(01) : The publication of Regulation (EC) No 1761/2004 is to be considered null and void.
Date: 2004-10-12
Institutions: European Commission
Subjects: agricultural situation, aid to agriculture, farm price support, leaf vegetable, market gardening, market intervention, sales aid

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Official Journal of the European Union

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COMMISSION REGULATION (EC) No 1761/2004

of 12 October 2004

laying down specific measures in the cauliflower sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty
Community,

establishing the European

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 17 thereof,

Whereas:

(1)

(2)

(3)

Cauliflower production is characterised by wide fluc-
tuations in supply depending on the weather. Demand
for cauliflowers also fluctuates in line with the weather,
but inversely to supply. The market in fresh cauliflowers
is therefore marked by rapid and unpredictable devel-
opments, with an extremely wide range of prices
charged on the markets
in fresh cauliflowers not
intended for processing. Fluctuations occur each year,
at
intervals and to varying degrees, which
causes continuing difficulties for the cauliflower sector.

irregular

Under the intervention arrangements laid down in Title
IV of Regulation (EC) No 2200/96 and implemented by
Commission Regulation (EC) No 103/2004 of 21
January 2004 laying down detailed rules for
imple-
menting Council Regulation (EC) No 2200/96 as
regards
intervention arrangements and market with-
drawals in the fruit and vegetable sector (2), the quantities
the quantity
withdrawn may not
marketed at any point of the marketing year. The scale
of the short-term cyclical developments for cauliflowers
is such that these limits prevent effective regulation of
the market by producer organisations using only the
general instruments of intervention.

exceed 10 % of

To improve competitiveness in the sector, provisions
should be introduced to smooth cyclical developments
by allowing, through the payment of a specific aid, the
processing of certain quantities intended initially for the
fresh product market where excess supply leads to a
these quantities
collapse in prices and provided that
to avoid
meet certain quality requirements. However,
this mechanism generating a rise in production,
the
amount of aid must remain well below the difference
in the prices of cauliflowers intended for
the fresh
product market and cauliflowers intended for processing.

(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 16, 23.1.2004, p. 3.

(5)

(6)

(7)

(8)

(9)

There is also a need to ensure that producer organi-
sations employ their own resources for the prevention
and management of cyclical crises. As a result,
the
minimum quantities delivered for processing must be
taken over by producer organisations without benefiting
from the aid,
the purposes of prevention and
management of cyclical crises.

for

As the purpose of the operation is to smooth out the
occasional peaks
share of
production which may benefit from either these new
provisions or
the traditional withdrawals mechanism
must continue to be limited to 15 %.

in production,

the total

Producer organisations wishing to make use of
these
provisions must guarantee the processors with whom
they work supplies of minimum quantities throughout
the marketing year, by means of contracts, so that the
activity of those processors does not depend entirely on
crises affecting cauliflowers intended for the fresh market.

To identify a state of crisis, a price quotation must be
fixed as a reference amount for monitoring cyclical devel-
opments on the market in fresh cauliflowers, as must the
price level below which,
for this price quotation, the
market in fresh cauliflowers must be considered to be
in crisis and specific measures may be triggered.

This kind of system means that producers must notify all
deliveries of cauliflowers
for processing, even those
in
which do not benefit
order to allow checks on the total quantities processed.

from the aid in question,

the impact of

Specific measures are innovative compared with the
general instruments used by the common organisations
of the markets in fruit and vegetables. At this stage,
therefore,
their scope should be limited in terms of
budget and quantity and also of time, so as to allow a
these measures
precise assessment of
before these provisions are extended. As a result,
in
order to avoid any budget overrun, a system for the
should be
quarterly notification of aid applications
organised to enable a reduction percentage for appli-
cations to be fixed where necessary. In this kind of noti-
fication system, any delay in communicating aid appli-
cations by producer organisations renders the operation
ineligible.

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(10)

Checks on the total quantities processed must cover the
lots that are physically presented, to ensure that they tally
with the weight declarations, and, a posteriori, that the
physical
transactions
recorded by the producer organisations and processors.
Checks should be accompanied by penalties commen-
surate with any failings.

flows declared tally with the

Article 2

Minimum quality requirements

Products delivered for processing must be whole, of sound,
genuine and merchantable quality and suitable for processing.
Products affected by rot shall be excluded.

(11)

Finally, to ensure close monitoring of the measure by the
Commission, Member States must transmit the required
information to the Commission as quickly as possible.

Advance application by producer organisations

To qualify for the aid referred to in Article 1, producer orga-
nisations must:

Article 3

(12)

The Management Committee for fresh Fruit and Vege-
tables has not delivered an opinion within the time
limit set by its chairman,

HAS ADOPTED THIS REGULATION:

Article 1

Purpose

Under the terms of

1.
this Regulation, producer organi-
sations shall receive aid of EUR 50 per tonne for certain cauli-
flowers harvested in the Community falling within CN code
ex 0704 10 00 delivered for processing when price levels have
dropped on the fresh cauliflower market.

2.
The aid referred to in paragraph 1 shall be paid quarterly,
in accordance with the periods laid down in the second
paragraph of Article 3, for certain quantities of cauliflowers
delivered to processors and accepted by those processors
where the price conditions referred to in the first subparagraph
of Article 5(5) have been met.

(a) be recognised or have been granted preliminary recognition

under Regulation (EC) No 2200/96;

(b) have in advance concluded contracts which link them to

one or more cauliflower processors;

(c) submit an advance application to the competent authorities
of
the Member State no later than 15 days before the
beginning of the first period applied for by the producer
organisation out of
in the second
paragraph.

the periods set out

The application shall include copies of the contracts referred to
in point (b) of the first paragraph and shall cover one or more
of the following periods:

(a)

from 1 November 2004 to 31 January 2005;

(b) from 1 February 2005 to 30 April 2005;

(c)

from 1 May 2005 to 31 July 2005;

(d) from 1 August 2005 to 31 October 2005.

Article 4

Contracts

3.
For each quarter concerned, without prejudice to Article
8(4), the aid referred to in paragraph 1 of this Article shall be
paid for the quantities delivered to processors, and accepted by
those processors, in excess of the minimum quantities referred
to in Article 4(2)(c).

The contracts referred to in point (b) of the first paragraph
1.
of Article 3 shall be concluded in writing. They shall cover the
periods laid down in the second paragraph of Article 3, which
are the subject of an advance application from the producer
organisation.

2.

Contracts shall specify, in particular:

The sum of the quantities benefiting from the aid referred to in
paragraph 1 and of the quantities withdrawn under the terms of
Article 23 of Regulation (EC) No 2200/96 may not, however,
exceed 15 % of the quantities marketed in the same quarter.

(a)

the name and address of the contracting producer organi-
sation;

(b) the name and address of the processor;

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(c)

the minimum quantity of raw material to be delivered for
processing, broken down into tranches where necessary, the
quality characteristics of
the products covered by the
contract, and the undertaking made by the producers to
deliver those quantities and qualities;

(d) the period covered;

(e)

the maximum quantity of raw material delivered which
processors undertake to process under
in
question;

the contract

(f)

the price to be paid to the producer organisation for the
raw materials, which shall be paid by bank or post office
transfer, and the delivery stage to which the price in
question applies;

(g) the compensation payable should either party fail to fulfil its
contractual obligations, in particular as regards the payment
in full of the price specified in the contract, compliance with
time-limits for payment, and the obligation to deliver and
accept the minimum and maximum quantities covered by
the contract.

3. Member States may adopt additional rules on contracts.

Article 5

Price threshold

1.
For each production region concerned, the Member State
shall propose to the Commission a place of quotation and the
characteristics in terms of size and presentation of the Category I
product which serves as a reference for determining the market
situation for fresh cauliflowers in the region in question.

2.
The Member State shall propose to the Commission, for
periods of not less than one month, the average price of the
product referred to in paragraph 1 over the previous five
marketing years, excluding the highest average yearly rate and
the lowest average yearly rate among the five years in question.

3.
The Member State shall propose to the Commission a
price threshold for each production region, equal to 80 % of
the average price referred to in paragraph 2.

4.
The Commission shall fix, on the basis of the proposals
referred to in paragraphs 1 to 3 and of any other relevant
information at its disposal, the price threshold referred to in
paragraph 3 and shall communicate it to the Member State
concerned.

It shall cease to be paid the day following the first day on which
the rate recorded is once again above or equal to the price
threshold fixed pursuant to paragraph 4.

Article 6

Acceptance of advance applications

1.
The Member State shall accept the advance application
referred to in Article 3 where the conditions laid down in
Articles 3 and 4 have been met and it has fixed the place of
quotation, characteristics and price threshold and carried out the
calculations referred to in Article 5.

2.
The Member State shall inform the producer organisation
of the terms under which it may be paid the aid. It shall send
the producer organisation the price threshold fixed pursuant to
Article 5(4) for the production region of the producer organi-
sation concerned, and all the necessary details as regards the
place of quotation and the characteristics of the product quoted
as referred to in Article 5(1).

Article 7

Notification of deliveries

From the beginning of

the periods laid down in the
1.
second paragraph of Article 3, the producer organisation shall
notify the competent authorities of the Member State, no later
than 18.00 of the preceding working day, of each delivery to
processors holding the contracts
referred to in Article 4,
including the quantities which will not subsequently be the
subject of an application for aid in accordance with Article 8.

This notification shall include the quantity to be delivered, the
place and time of delivery and the identification number of the
contract relating to the delivery in question. It shall be sent
electronically and the authorities to which it is addressed shall
keep a record of it for at least three years.

The competent authorities of the Member States concerned may
ask for any additional information they consider necessary for a
physical check on the deliveries.

2. When each consignment delivered under contracts is
accepted at the processing plant, a delivery certificate shall be
issued, specifying:

(a)

the date and time of unloading;

(b) the identification number of

the contract

to which the

consignment relates;

(c)

the net weight.

5.
The aid referred to in Article 1 may be paid only once the
rate determined in the place of quotation referred to in
paragraph 1 of
this Article has been below the price
threshold fixed pursuant to paragraph 4 for two consecutive
quotation days.

Delivery certificates shall be prepared in four copies. They shall
be signed by the processor or its representative and by the
producer organisation or
its representative. Each certificate
shall bear an identification number.

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Processors and producer organisations shall both keep a copy of
delivery certificates.

The producer organisation shall

send the competent
3.
authorities of the Member State a communication by e-mail
containing the information referred to in paragraph 2, not
later than the fifth working day following the week of delivery.

However, where the conditions referred to in the first subpara-
graph of Article 5(5) are met, the producer organisation shall
send the communication referred to in the first subparagraph of
this paragraph not later than the first working day following the
delivery.

Article 8

Applications for and payment of aid

1.
Producer organisations shall present their aid application
to the competent authorities of the Member States each quarter,
not later than the 15th of the month following the end of the
quarter covered by the aid application.

No aid shall be granted if the application is presented beyond
this deadline.

Each aid application for a particular quarter shall include

2.
the following information:

(a)

the name and address of the producer organisation;

(b) the total quantity of cauliflowers delivered and accepted for
processing during the quarter concerned, broken down by
processor;
the aid application shall specify, within this
the quantity corresponding to deliveries made
quantity,
where the conditions referred to in the first subparagraph
of Article 5(5) have been met;

(c)

the minimum quantity referred to in Article 4(2)(c);

If the quantities referred to in paragraph 3 are such that
4.
the total of the quantities which have benefited from the aid in
the course of the previous quarters and of the quantities referred
to in paragraph 3 does not exceed 50 000 tonnes,
the
Commission shall authorise the Member States to pay the aid
applied for.

If the total of the quantities which have benefited from the aid
in the course of the previous quarters and of the quantities
referred to in paragraph 3 exceeds 50 000 tonnes,
the
Commission shall
fix a reduction percentage for the appli-
cations, applicable to the quantities referred to in paragraph 3.

5.
The aid shall be paid by the competent authorities of the
Member States once the provisions referred to in paragraph 4
have been implemented and if these authorities have carried out
the checks provided for in Article 9(a) and checked that the aid
application tallies with the delivery certificates referred to in
Article 7(2).

Article 9

Checks

For each producer organisation and each producer, the

1.
following checks shall be carried out:

(a) physical checks, to verify that the quantities tally with the
delivery certificates referred to in Article 7(2) and comply
with the minimum quality requirements
laid down in
Article 9, on at least:

(i) 5 % of the quantities delivered for processing where the
conditions referred to in the first subparagraph of
Article 5(5) have not been met,

(ii) 50 % of the quantities delivered for processing where the
conditions referred to in the first subparagraph of
Article 5(5) have been met,

(d) the quantity of cauliflowers withdrawn from the market

under Article 23 of Regulation (EC) No 2200/96;

(b) administrative and accounting checks, to verify:

(e)

the marketed quantity of cauliflowers, within the meaning
of Article 2(2) of Regulation (EC) No 103/2004;

(f)

the quantity covered by the aid application.

3. Member States shall notify the Commission, not later than
the month following the end of
the 20th of
the quarter
the total quantities which are the subject of
concerned, of
applications
requesting
producer organisation.

broken down by

for payment,

(i) as regards the producer organisations,

the total
quantities of products marketed, the total quantities of
products delivered for processing,
the
delivery certificates referred to in Article 7(2), and the
total of the quantities stated in the aid applications tally
with the payments received from the processor;

the total of

that

(ii) as regards the processor, that the quantity of finished
products obtained from the raw materials received tallies
with the quantities of finished products sold.

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For the purposes laid down in point (b)(ii) of paragraph 1,
2.
processors who sign contracts with producer organisations shall
keep the following information for at least three years:

(a)

the total quantities of raw materials received;

(b) the quantities of product received from producer organi-
sations benefiting from the provisions of this Regulation,
broken down by producer organisation;

(c)

the quantities of each finished product obtained from each
of the quantities referred to in the first indent;

(d) the quantities of each finished product in stock at the start

and end of the quarter.

Article 10

Recovery and penalties

Aid unduly paid to producer organisations,

1.
recovered with interest,
rities found during the checks referred to in Article 9.

shall be
including that linked to any irregula-

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.

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

(a)

if the aid has already been paid, in addition to recovery as
provided for in paragraph 1:

(i)

in cases of fraud, to pay an amount equal to the amount
unduly paid;

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

(i)

in cases of fraud, to pay an amount equal to the amount
unduly applied for;

(ii) in other cases,
applied for;

to pay 50 % of

the amount unduly

3.
In the event of a false declaration the Member State shall
debar the producer organisation concerned from benefiting
from the provisions of this Regulation and shall
inform the
Commission thereof.

4.
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 11

Informing the Commission

1. Member States
quarter concerned, the following information:

shall send the Commission,

for each

(a) a list of producer organisations which have submitted an
advance application, accepted by the Member State in
accordance with Article 6;

(b) the proposals referred to in Article 5(1), (2) and (3), for each

producer organisation concerned;

(c)

the quantities contracted for by the producer organisations
concerned under the provisions of Article 4(2)(c) and (e).

This information must reach the Commission not later than 15
days before the start of the quarter concerned.

2. Member States shall inform the Commission immediately
where the conditions referred to in the first subparagraph of
Article 5(5) are met for a specific producer organisation.

Article 12

Entry into force

(b) in cases where applications for aid have been submitted

under Article 8 but no aid has been paid:

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

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

Done at Brussels, 12 October 2004.

For the Commission

Franz FISCHLER
Member of the Commission