Proposal for a Council Regulation laying down specific measures for agriculture in the outermost regions of the Union
Date: 2004-10-28
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU regional policy, aid system, aid to agriculture, peripheral region, regional aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.10.2004 
COM(2004) 687 final 

2004/0247 (CNS) 

Proposal for a 

COUNCIL REGULATION 

laying down specific measures for agriculture in the outermost regions of the Union 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On 28 June 2001, the Council, adopted a reform of the support schemes for agriculture in the 
EU's outermost regions as referred to in Article 299(2) of the EC Treaty. These measures, first 
introduced in 1991 and 1992, have proved effective in promoting agriculture in and securing 
supplies to these regions1. 

On the other hand, the administration of these arrangements leaves something to be desired: the 
management of the two strands of the Posei schemes, i.e. the specific supply arrangements and 
support for local lines of production in the outermost regions, has proved somewhat inflexible. 
Adapting the supply balances to take account of even small fluctuations in demand requires the 
Commission to adopt legislation. 

The  arrangements  for  supporting  local  lines  of  production  are,  moreover,  fragmented  into 
56 (micro-)measures  established  by  Council  regulations.  It  is  not  possible  to  adjust  these 
measures  without  an  interinstitutional  legislative  procedure,  which  slows  down  Community 
action  and  hampers  attempts  to  react  as  quickly  as  possible  to  specific  situations  in  the 
outermost regions, even though often only modest sums are involved. 

That is why it is proposed to change the philosophy behind the way assistance is provided for 
these regions: by encouraging participation in decision-making and speeding up the response to 
their specific needs.  

This draft Regulation provides for the submission by the Member States of one programme per 
outermost  region.  These  programmes  will  include  a  section  on  the  specific  supply 
arrangements  for  those  agricultural  products  which  are  essential  in  the  outermost  regions  for 
human consumption, as agricultural inputs or for processing, and another section on support for 
local production. 

The Regulation does not affect the sources of financing or the intensity of Community support. 

The Community will finance the programme under the EAGGF Guarantee Section at 100% up 
to  an  annual  ceiling  established  in  the  Council  Regulation.  Part  of  this  aid  will  have  to  be 
reserved for local agricultural production. The amounts have been calculated on the basis of the 
average expenditure on financing the specific supply arrangements during the reference period 
2001–2003 and on the basis of expenditure ceilings applicable to support for local production. 

Part  of  the  aforementioned  amounts  fall  within  the  scope  of  Regulation  (EC)  No  1782/2003 
and are encompassed by the ceilings provided for in Annex VIII to said Regulation. In order to 
comply  with  the  obligation  set  forth  in  Article  70,  paragraph  2,  second  subparagraph  of  the 
aforementioned  Regulation,  the  Commission  will  adapt  accordingly  the  ceilings  set  in  said 
Annex VIII. 

The exemptions from the general ("horizontal") agricultural provisions contained in the 2001 
regulations have been incorporated into this Regulation. 

1 

Commission communication: “A stronger partnership for the outermost regions” (COM(2004) 343 final, 
26.5.2004). 

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2004/0247 (CNS) 

Proposal for a 

COUNCIL REGULATION 

laying down specific measures for agriculture in the outermost regions of the Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 36, 37 and 299(2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinion of the European Economic and Social Committee, 

Having regard to the opinion of the Committee of the Regions, 

Whereas: 

(1) 

(2) 

(3) 

The  particular  geographical  situation  of  the  outermost  regions  imposes  additional 
transport  costs  in  supplying  products  which  are  essential  for  human  consumption,  for 
processing or as agricultural inputs. In addition, objective factors arising as a result of 
insularity  and  remoteness  impose  further  constraints  on  economic  operators  and 
producers  in  the  outermost  regions  that  severely  handicap  their  activities.  These 
handicaps  can  be  alleviated  by  lowering  the  price  of  these  essential  products.  It  is 
therefore appropriate to introduce specific supply arrangements to guarantee supply to 
the  outermost  regions  and  compensate  for  the  additional  costs  arising  from  their 
remoteness, insularity and distant location. 

To  that  end,  notwithstanding  Article  23  of  the  Treaty,  imports  of  certain  agricultural 
products from third countries should be exempt from the applicable import duties. To 
take  account  of  their  origin  and  the  customs  treatment  accorded  to  them  under  the 
Community provisions, products which have entered the Community's customs territory 
under inward processing or customs warehousing arrangements should be considered as 
direct  imports,  for  the  purpose  of  granting  the  benefits  of  the  specific  supply 
arrangements. 

In order to achieve the goal of lowering prices in the outermost regions and mitigating 
the  additional  costs  of  their  remoteness,  insularity  and  distant  location  while 
maintaining the competitiveness of Community products, aid should be granted for the 
supply of products of Community origin to the outermost regions. Such aid should take 
account  of  the  additional  cost  of  transport  to  the  outermost  regions  and  the  prices 
applied to exports to third countries and, in the case of agricultural inputs and products 
intended for processing, the additional costs of insularity and distant location. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Since  the  quantities  covered  by  the  specific  supply  arrangements  are  limited  to  the 
supply  requirements  of  the  outermost  regions,  those  arrangements  do  not  impair  the 
proper functioning of the internal market. Nor should the economic advantages of the 
specific  supply  arrangements  provoke  diversions  of  trade  in  the  products  concerned. 
Dispatching  or  exportation  of  those  products  from  the  outermost  regions  should 
therefore be prohibited. However, dispatch or exportation of those products should be 
authorised  where  the  advantage  resulting  from  the  specific  supply  arrangements  is 
reimbursed  or,  in  the  case  of  processed  products,  to  permit  regional  trade  or  trade 
between  the  two  Portuguese  outermost  regions.  Account  should  also  be  taken  of 
traditional trade flows with third countries in all the outermost regions, and exports of 
processed  products  corresponding  to  traditional  exports  for  all  those  regions  should 
accordingly be authorised. Nor should the restriction apply to the traditional dispatching 
of  processed  products.  For  the  sake  of  clarity,  the  reference  period  for  defining  those 
traditionally exported or dispatched quantities should be specified. 

In  order  to  achieve  the  objectives  of  the  specific  supply  arrangements,  the  economic 
advantages  of  the  arrangements  must  be  in  terms  of  production  costs  and  must  cut 
prices up to the end user stage. They should therefore be granted only on condition that 
they are actually passed on, and appropriate checks must be carried out. 

Community  policy  to  assist  local  production  in  the  outermost  regions  has  involved  a 
multitude  of  products  and  measures  for  their  production,  marketing  or  processing. 
These  measures  have  proved  effective  and  ensured  that  agriculture  continues  and 
develops. The Community should continue to support these lines of production, which 
are a key factor in the environmental, social and economic equilibrium of the outermost 
regions. Experience has shown that, as in the case of rural development policy, a closer 
partnership with the local authorities can help to address the particular issues affecting 
the regions concerned in a more targeted way. Support for local production should thus 
continue through general programmes at the most appropriate geographical level, to be 
submitted by the Member State concerned to the Commission.  

To help achieve the goals of developing local agricultural production and the supply of 
agricultural  products,  the  level  of  programming  of  supplies  to  the  regions  concerned 
should be harmonised and the approach of partnership between the Commission and the 
Member  States  should  be  systematic.  The  supply  programme  should  therefore  be 
established  by  the  authorities  designated  by  the  Member  State  and  submitted  to  the 
Commission for approval. 

Farmers in the outermost regions should be encouraged to supply quality products and 
the marketing of these should be assisted. Use of the graphic symbol introduced by the 
Community may be useful for that purpose. 

Council  Regulation  (EC)  No  1257/1999  of  17  May  1999  on  support  for  rural 
development from the European Agricultural Guidance and Guarantee Fund (EAGGF) 
and  amending  and  repealing  certain  Regulations2  defines  the  rural  development 
measures eligible for Community support and the conditions for obtaining that support. 
The  structures  of  certain  farms  or  processing  and  marketing  firms  in  the  outermost 
regions  are  seriously  defective  and  face  specific  difficulties.  Provision  should 

2 

OJ L 160, 26.6.1999, p. 80. Regulation as last amended by Commission Regulation (EC) No 583/2004 
(OJ L 91, 30.3.2004, p. 1). 

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accordingly be made  for  the  possibility of derogations for certain types of investment 
from  the  provisions  restricting  the  grant  of  some  structural  aid  provided  for  in 
Regulation (EC) No 1257/1999. 

(10)  Article 29(3) of Regulation (EC) No 1257/1999 restricts the grant of forestry support to 
forests  and  wooded  areas  belonging  to  private  owners  and  municipalities  and 
associations  thereof.  Parts  of  the  forests  and  wooded  areas  located  in  the  outermost 
regions  belong 
these 
circumstances,  the  conditions  laid  down  in  the  said  Article  should  be  made  more 
flexible. 

to  public  authorities  other 

than  municipalities.  Under 

(11)  Article  24(2)  of  Regulation  (EC)  No  1257/1999  and  the  Annex  thereto  determine  the 
maximum  amounts  per  year  eligible  for  Community  agri-environmental  aid.  To  take 
into account the specific environmental situation of certain very sensitive pasture areas 
in  the  Azores  and  the  preservation  of  the  landscape  and  traditional  features  of 
agricultural  land,  in  particular  the  areas  of  terrace  cultivation  in  Madeira,  provision 
should  be  made  for  the  possibility,  in  the  case  of  certain  specific  measures,  of 
increasing those amounts up to twofold. 

(12)  A  derogation  may  be  granted  from  the  Commission's  consistent  policy  of  not 
authorising  state  operating  aid  for  the  production,  processing  and  marketing  of 
agricultural products covered by Annex I to the Treaty in order to mitigate the specific 
constraints  on  farming  in  the  outermost  regions  as  a  result  of  their  remoteness, 
insularity  and  distant  location,  small  area,  mountainous  terrain  and  climate  and  their 
economic dependency on a small number of products. 

(13)  The plant health of agricultural crops in the French overseas departments is subject to 
particular  problems  associated  with  the  climate  and  the  inadequacy  of  the  control 
measures  hitherto  applied  there.  Programmes  should  therefore  be  implemented  to 
combat harmful organisms, including by organic methods. The Community's financial 
contribution towards such programmes should be specified. 

(14)  The  maintenance  of  vineyards,  which  are  the  most  widespread  crop  in  the  regions  of 
Madeira  and  the  Canary  Islands  and  a  very  important  one  for  the  Azores,  is  an 
imperative.  To  help  support  production,  neither 
economic  and  environmental 
abandonment premiums nor market mechanisms should be applicable in these regions, 
but nonetheless, in the Canary Islands, it should be possible to apply crisis distillation 
measures in the event of exceptional market disturbance arising from quality problems. 
Similarly,  technical  and  socio-economic  difficulties  have  prevented  the  complete 
conversion  within  the  time  limits  set  of  the  areas  in  the  regions  of  Madeira  and  the 
Azores  planted to vines of hybrid varieties  prohibited by the common  organisation  of 
the  market  in  wine.  The  wine  produced  by  such  vineyards  is  intended  solely  for 
traditional  local  consumption.  Additional  time  will  allow  such  vineyards  to  be 
converted while preserving a regional economic fabric very heavily reliant upon wine-
growing.  Portugal  should  notify  the  Commission,  each  year,  of  the  progress  made  in 
converting the areas concerned. 

(15)  The restructuring of the milk sector is not yet complete in the Azores. In line with the 
high  dependence  of  the  Azores  on  milk  production,  combined  with  other  handicaps 
connected  with  their  distant  location  and  the  absence  of  profitable  alternative  lines  of 
production,  the  derogation  from  certain  provisions  of  Council  Regulation  (EC) 
No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products 

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sector3,introduced by Article 23 of Council Regulation (EC) No 1453/2001 of 28 June 
2001 introducing specific measures for certain agricultural products for the Azores and 
Madeira  and  repealing  Regulation  (EEC)  No  1600/92  (Poseima)4  and  renewed  by 
Council Regulation (EC) No 55/2004 of 17 December 2003 amending Regulation (EC) 
No 1453/2001  introducing  specific  measures  for  certain  agricultural  products  for  the 
Azores  and  Madeira  and  repealing  Regulation  (EEC)  No  1600/92  (Poseima)  with 
respect  to  the  application  of  the  supplementary  levy  in  the  milk  and  milk  products 
sector in the Azores. 

(16)  Support for the production of cows' milk in Madeira has not succeeded in maintaining 
the  balance  between  domestic  and  external  supply,  chiefly  because  of  the  serious 
structural  difficulties  affecting  the  sector  and  its  poor  capacity  to  adapt  to  new 
economic  environments.  Consequently,  authorisation  to  produce  reconstituted  UHT 
milk from milk powder of Community origin should continue, with a view to covering 
local consumption more fully. 

(17)  The  need  to  maintain  local  production  by  means  of  incentives  justifies  not  applying 
Regulation  (EC)  No  1788/2003  in  the  French  overseas  departments  and  Madeira.  For 
Madeira this exemption should be subject to a limit of 4 000 tonnes, corresponding to 
the  current  production  of  2 000  tonnes  and  allowing  for  a  reasonable  possibility  of 
increased production, estimated at present at a maximum of 2 000 tonnes. 

(18) 

 Traditional livestock farming activities should be supported. In order to meet the local 
consumption needs of the French overseas departments and Madeira, duty-free imports 
from third countries of male bovine animals intended for fattening should be authorised 
subject to certain conditions and up to a maximum annual limit. The possibility opened 
under Regulation (EC) No 1782/2003 to enable Portugal to transfer rights to the suckler 
cow premium from the mainland to the Azores should be renewed and that instrument 
should be adjusted in line with the new support arrangements for the outermost regions. 

(19)  Tobacco  growing  is  of  historical  importance  in  the  Canary  Islands.  Economically 
speaking, tobacco preparation continues to be one of the chief industrial activities in the 
region. In social terms, tobacco cultivation is very labour-intensive and carried out by 
small  farms.  Since  the  crop  is  not  sufficiently  profitable,  however,  it  is  in  danger  of 
dying  out.  Tobacco  is  currently  cultivated  on  only  a  small  area  on  the  island  of  La 
Palma, for the small-scale manufacture of cigars. Spain should therefore be authorised 
to continue to grant aid in addition to Community aid so that this traditional crop can be 
maintained  with  a  view  to  supporting  the  artisanal  activity  associated  with  it.  In 
addition,  to  maintain  the  manufacture  of  tobacco  products,  imports  into  the  Canary 
Islands  of  raw  and  semi-manufactured  tobacco  should  continue  to  be  exempt  from 
customs  duty,  up  to  an  annual  limit  of  20 000  tonnes  of  stripped  raw  tobacco 
equivalent. 

(20) 

Implementation of this Regulation must not jeopardise the level of special support from 
which the outermost regions have benefited up to now. For that reason, so that they can 
carry  out  the  appropriate  measures,  the  Member  States  should  have  at  their  disposal 
sums  equivalent  to  the  support  already  granted  by  the  Community  under  Council 

3 
4 

OJ L 270, 21.10.2003, p. 123. 
OJ  L  198,  21.7.2001,  p.  26.  Regulation  as  last  amended  by  Regulation  (EC)  No  55/2004  (OJ  L  8, 
14.1.2004, p. 1). 

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Regulation  (EC)  No  1452/2001  of  28  June  2001  introducing  specific  measures  for 
certain agricultural products for the French overseas departments, amending Directive 
72/462/EEC  and  repealing  Regulations  (EEC)  No  525/77  and  (EEC)  No  3763/91 
(Poseidom)5,  Council  Regulation  (EC)  No  1453/2001  and  Council  Regulation  (EC) 
No 1454/2001  of  28  June  2001  introducing  specific  measures  for  certain  agricultural 
products  for  the  Canary  Islands  and  repealing  Regulation  (EEC)  No  1601/92 
(Poseican)6  and  sums  granted  to  farmers  established  in  those  regions  under  Council 
Regulation  (EC)  No  1254/1999  of  17  May  1999  on  the  common  organisation  of  the 
market in beef and veal7, Council Regulation (EC) No 2529/2001 of 19 December 2001 
on  the  common  organisation  of  the  market  in  sheepmeat  and  goatmeat8,  Council 
Regulation (EC) No 1784/2003 of 29 September 2003 on the common organisation of 
the  market  in  cereals9  and  sums  granted  for  the  supply  of  rice  to  the  French  overseas 
department  of  Réunion  under  Article  5  of  Council  Regulation  (EC)  No  1785/2003  of 
29 September  2003  on  the  common  organisation  of  the  market  in  rice10.  The  new 
system  of  support  for  agricultural  production  in  the  outermost  regions  established  by 
this Regulation must be coordinated with the support for the same lines of production in 
force in the rest of the Community. 

(21)  Commission  Regulations  (EC)  Nos  1452/2001,  1453/2001  and  1454/2001  should  be 
repealed.  Council  Regulation  (EC)  No  1782/2003  of  29  September  2003  establishing 
common  rules  for  direct  support  schemes  under  the  common  agricultural  policy  and 
establishing  certain  support  schemes  for  farmers  and  amending  Regulations  (EEC) 
No 2019/93,  (EC)  No  1452/2001,  (EC)  No  1453/2001,  (EC)  No  1454/2001,  (EC) 
No 1868/94,  (EC)  No  1251/1999,  (EC)  No  1254/1999,  (EC)  No  1673/2000,  (EEC) 
No 2358/71 and (EC) No 2529/200111, and Regulation (EC) No 1785/2003 should also 
be  amended  to  ensure  coordination  of  the  respective  arrangements.  The  measures 
necessary  for  the  implementation  of  this  Regulation  should  be  adopted  in  accordance 
with  Council  Decision  1999/468/EC  of  28  June  1999  laying  down  the  procedures  for 
the exercise of implementing powers conferred on the Commission12. 

(22)  The programmes provided for by this Regulation should start to apply at the beginning 
of 2006. However, to enable the programmes to start on that date, the Member States 
and the Commission should be permitted to take all the preparatory measures between 
the date of entry into force of this Regulation and that of its application, 

5 

6 
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10 
11 

12 

OJ  L  198,  21.7.2001,  p.  11.  Regulation  as  amended  by  Regulation  (EC)  No  1782/2003  (OJ  L  270, 
21.10.2003, p. 1). 
OJ L 198, 21.7.2001, p. 45. Regulation as last amended by Regulation (EC) No 1782/2003. 
OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC) No 1782/2003. 
OJ L 341, 22.12.2001, p. 3. Regulation as last amended by Regulation (EC) No 1782/2003. 
OJ L 270, 21.10.2003, p. 78. 
OJ L 270, 21.10.2003, p. 96. 
OJ  L  270,  21.10.2003,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  864/2004  (OJ  L  206, 
9.6.2004, p. 20). 
OJ L 184, 17.7.1999, p. 23. 

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HAS ADOPTED THIS REGULATION: 

TITLE 1 
SUBJECT 

Article 1 
Subject 

This Regulation lays down specific measures on agriculture to remedy the difficulties caused 
by  the  remoteness,  insularity  and  distant  location  of  the  regions  of  the  Union  referred  to  in 
Article 299(2) of the Treaty, hereinafter the "outermost regions". 

TITLE II 
SPECIFIC SUPPLY ARRANGEMENTS 

Article 2 
Forecast supply balance 

1. 

2. 

1. 

2. 

Specific supply arrangements are hereby introduced for the agricultural products listed 
in Annex I, which are essential in the outermost regions for human consumption, for 
the manufacture of other products or as agricultural inputs. 

A  forecast  supply  balance  shall  be  drawn  up  stating  the  quantity  of  the  agricultural 
products listed in Annex I needed to meet supply requirements each year. A separate 
forecast balance may be drawn up for the requirements of undertakings packaging and 
processing products intended for the local market, for traditional consignment to the 
rest of the Community or for export as part of regional trade or traditional trade flows. 

Article 3 
Operation of the arrangements 

Within the limit of the quantities determined in the forecast supply balance, no duties 
shall  apply  to  direct  imports  from  third  countries  into  the  outermost  regions  of 
products covered by the specific supply arrangements. 

Products  which  have  entered  the  Community's  customs  territory  under  inward 
processing or customs warehousing arrangements shall be considered as direct imports 
from third countries for the purposes of this Title. 

To ensure coverage of the requirements established in accordance with Article 2(2) in 
terms  of  price  and  quality,  while  taking  care  to  maintain  the  Community's  share  in 
supplies,  aid  shall  be  granted  to  supply  the  outermost  regions  with  Community 
products held in public intervention storage or available on the Community market. 

Such aid shall be determined for each type of product concerned to take account of the 
additional cost of transport to the outermost regions and the prices applied to exports 
to third countries and, in the case of products intended for processing and agricultural 
inputs, the additional costs of insularity and distant location. 

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3. 

In  implementing  the  specific  supply  arrangements,  account  shall  be  taken,  in 
particular, of the following: 

(a) 

the specific requirements of the outermost regions and, in the case of products 
intended for processing and agricultural inputs, the quality requirements; 

4. 

1. 

2. 

(b) 

trade flows with the rest of the Community; 

(c) 

the economic aspect of the proposed aid. 

Entitlement  under  the  specific  supply  arrangements  shall  be  subject  to  the  condition 
that  the  economic  advantage  derived  either  from  exemption  from  import  duties  or 
from aid is actually passed on to the end user. 

Article 4 
Export to third countries and dispatch to the rest of the Community 

Products  covered  by  the  specific  supply  arrangements  may  be  exported  to  third 
countries  or  dispatched  to  the  rest  of  the  Community  only  on  conditions  laid  down 
under the procedure referred to in Article 26(2).  

Those conditions shall include payment of import duties on the products referred to in 
Article  3(1)  or  reimbursement  of  the  aid  received  under  the  specific  supply 
arrangements for the products referred to in Article 3(2).  

Those conditions shall not apply to trade flows between French overseas departments. 

The restriction provided for in paragraph 1 shall not apply to products processed in the 
outermost  regions  from  products  having  benefited  from  the  specific  supply 
arrangements which are: 

(a) 

exported to third countries or dispatched to the rest of the Community within the 
limits of traditional exports and traditional dispatches. Those quantities and the 
third  countries  of  destination  shall  be  specified  by  the  Commission  in 
accordance  with  the  procedure  laid  down  in  Article  26(2),  on  the  basis  of  the 
average of exports or dispatches during the years 1989, 1990 and 1991; 

(b) 

exported  to  third  countries  as  part  of  regional  trade  flows  in  accordance  with 
conditions specified under the procedure referred to in Article 26(2); 

(c) 

dispatched from the Azores to Madeira or vice versa. 

No export refund shall be granted for the products thus exported. 

Article 5 
Approval of supply programmes 

1. 

Member States shall submit a draft supply programme to the Commission in the light 
of the financial allocation referred to in Article 24(2) and (3), comprising in particular: 

(a) 

the draft forecast supply balance; 

(b) 

the rate and amount of aid for supply from the Community. 

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2. 

The supply programmes shall be approved in accordance with the procedure referred 
to  in  Article  26(2).  The  list  of  products  contained  in  Annex  I  may  be  revised  in 
accordance  with  the  same  procedure,  in  the  light  of  demand  developments  in  the 
outermost regions. 

Article 6 
Raw sugar supplies in the Azores 

When  determining  the  Azores'  raw  sugar  requirements,  account  shall  be  taken  of  the 
development  of  local  production  of  sugar  beet.  The  quantities  covered  by  the  supply 
arrangements shall be determined so as to ensure that the total volume of sugar refined in the 
Azores each year does not exceed 10 000 tonnes. 

Article 7 
Imports of rice into Réunion 

No customs duties shall be charged in the French overseas department of Réunion on products 
falling within CN codes 1006 10 and 1006 40 00 imported for consumption there. 

Article 8 
Detailed rules for the application of the arrangements 

Detailed  rules  for  the  application  of  this  Title  shall  be  adopted  in  accordance  with  the 
procedure referred to in Article 26(2). Such rules shall in particular define the conditions under 
which the Member States may amend the resources allocated each year to the various products 
eligible  under  the  specific  supply  arrangements  and,  where  necessary,  establish  a  system  of 
import licences or delivery certificates. 

TITLE III 
Measures to assist local agricultural products 

Article 9 
Support programmes 

1. 

2. 

Community  support  programmes  for  the  outermost  regions  shall  be  established 
containing specific measures to assist local lines of agricultural production within the 
scope of the Title II of Part Three of the EC Treaty. 

Community support programmes shall be established at the geographical level which 
the Member State concerned deems most appropriate. They shall be prepared by the 
competent authorities designated by the Member State, which shall submit them to the 
Commission after the competent authorities and organisations have been consulted at 
the appropriate territorial level. 

3. 

Only one Community support programme per outermost region may be submitted. 

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Article 10 
Measures 

Community  support  programmes  shall  contain  the  measures  needed  to  ensure  continuity  and 
development of local lines of agricultural production in each outermost region. 

Article 11 
Compatibility and consistency 

1. 

2. 

Measures taken under support programmes must comply with Community law and be 
consistent  with  other  Community  policies  and  with  the  measures  taken  under  those 
policies. 

Consistency  of  the  measures  taken  under  support  programmes  with  measures 
implemented  under  other  instruments  of  the  common  agricultural  policy,  and  in 
particular  the  common  organisations  of  markets,  rural  development,  product  quality, 
animal welfare and protection of the environment, must be ensured. 

In particular, no measure under this Regulation may be financed as: 

(a) 

(b) 

additional support for premium or aid schemes under a common organisation of 
the market save in exceptional cases justified by objective criteria; 

support for research projects, measures to support research projects or measures 
eligible for Community financing under Council Decision 90/424/EEC13; 

(c) 

support for measures within the scope of Regulation (EC) No 1257/1999. 

Article 12 
Content of Community support programmes 

A Community support programme shall contain: 

(a) 

(b) 

(c) 

13 
14 
15 
16 

a  quantified  description  of  the  current  agricultural  production  situation  taking  into 
account the results of available evaluations, showing disparities, gaps and potential for 
development,  the  financial  resources  deployed  and  the  main  results  of  operations 
undertaken under Council Regulations (EEC) Nos 3763/9114, 1600/9215, 1601/9216and 
(EC) Nos 1452/2001, 1453/2001 and 1454/2001; 

a description of the strategy proposed, the priorities selected, its quantified objectives, 
and  an  appraisal  showing  the  expected  economic,  environmental  and  social  impact, 
including employment effects; 

a  description  of  the  measures  contemplated,  and  in  particular  aid  schemes  for 
implementing  the  programme,  and,  where  appropriate,  information  on  the  needs  for 
any studies, demonstration projects, training or technical assistance operations relating 
to the preparation, implementation or adaptation of the measures concerned; 

OJ L 224, 18.8.1990, p. 19. 
OJ L 356, 24.12.1991, p. 1. Regulation repealed by Regulation (EC) No 1452/2001. 
OJ L 173, 27.6.1992, p. 1. Regulation repealed by Regulation (EC) No 1453/2001. 
OJ L 173, 27.6.1992, p. 13. Regulation repealed by Regulation (EC) No 1454/2001. 

EN 

11 

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(d) 

(e) 

(f) 

(g) 

1. 

2. 

3. 

4. 

a schedule for the implementation of the measures and a general indicative financing 
table showing the resources to be deployed; 

proof  of  the  compatibility  and  consistency  between  the  various  measures  under  the 
programmes and the criteria and quantitative indicators to be used for monitoring and 
evaluation; 

the  steps  taken  to  ensure  the  programmes  are  implemented  effectively  and 
appropriately,  including  the  arrangements  for  publicity,  monitoring  and  evaluation, 
and a  specified  set of quantified  indicators for use in programme evaluation and  the 
arrangements for checks and penalties; 

the designation of competent authorities and bodies responsible for implementing the 
programme  and  the  designation  at  the  appropriate  levels  of  authorities  or  associated 
bodies and socio-economic partners, and the results of consultations held. 

Article 13 
Presentation, approval, application and amendment 

Support programmes shall be submitted not more than six months after the entry into 
force of this Regulation. 

The Commission shall evaluate the programmes proposed and approve them under the 
procedure referred to in Article 26(2) within six months of their submission. 

The programmes shall apply from 1 January 2006. 

The  conditions  under  which  Member  States  may  amend  support  measures  or  the 
allocation  of  resources  allotted  to  them  shall  be  defined  in  accordance  with  the 
procedure referred to in Article 26(2). 

Article 14 
Monitoring 

The procedures and physical and financial indicators for ensuring effective monitoring of the 
implementation of Community programmes shall be adopted in accordance with the procedure 
referred to in Article 26(2). 

TITLE IV 
ACCOMPANYING MEASURES 

Article 15 
Graphic symbol 

1. 

2. 

A graphic symbol shall be introduced with a view to ensuring greater awareness and 
consumption of quality agricultural products, whether natural or processed, specific to 
the outermost regions. 

The  conditions  for  using  the  graphic  symbol  provided  for  in  paragraph  1  shall  be 
proposed by the trade organisations concerned. The national authorities shall forward 
such proposals, with their opinion, to the Commission for approval. 

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12 

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Use of the symbol shall be monitored by an official authority or a body approved by 
the competent national authorities. 

Article 16 
Rural development 

Notwithstanding  Article  7  of  Regulation  (EC)  No  1257/1999,  in  the  case  of  the 
outermost regions, the total value of the aid for investments intended in particular to 
encourage  diversification,  restructuring  or  a  shift  towards  sustainable  agriculture  on 
agricultural  holdings  of  small  economic  size,  to  be  defined  in  the  programme 
complement  referred 
in  Articles  18(3)  and  19(4)  of  Regulation  (EC) 
No 1260/199917,  expressed  as  a  percentage  of  the  volume  of  eligible  investments, 
shall not exceed 75%. 

to 

Notwithstanding  Article  28(2)  of  Regulation  (EC)  No  1257/1999,  in  the  case  of  the 
outermost regions, the total value of the aid for investments in enterprises engaged in 
processing and marketing agricultural products consisting mainly of local produce in 
sectors to be defined in the programme complements referred to in Articles 18(3) and 
19(4) of Regulation (EC) No 1260/1999, expressed as a percentage of the volume of 
eligible  investments,  shall  not  exceed  65%.  The  total  value  of  the  aid  for  small  and 
medium-sized enterprises, otherwise subject to the same conditions, shall not exceed 
75%. 

The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall 
not apply to tropical or subtropical forests or wooded areas situated in the territory of 
the French overseas departments, the Azores and Madeira. 

Notwithstanding  Article  24(2)  of  Regulation  (EC)  No  1257/1999,  the  maximum 
amounts  per  year  eligible  for  Community  aid,  as  set  out  in  the  Annex  to  that 
Regulation, may be increased up to twofold in the case of the measure to protect lakes 
in  the  Azores  and  the  measure  to  preserve  the  landscape  and  traditional  features  of 
agricultural  land,  in  particular  the  conservation  of  stone  walls  supporting  terraces  in 
Madeira. 

A  description  of  the  measures  planned  under  this  Article  shall  be  included  in  the 
programmes  for  these  regions  referred  to  in  Articles  18  and  19  of  Regulation  (EC) 
No 1260/1999. 

Article 17 
State aid 

For the agricultural products covered by Annex I to the Treaty, to which Articles 87, 
88  and  89  thereof  apply,  the  Commission  may  authorise operating aid in the sectors 
producing,  processing  and  marketing  those  products,  with  a  view  to  mitigating  the 
specific constraints on farming in the outermost regions as a result of their remoteness, 
insularity and distant location. 

1. 

2. 

3. 

4. 

5. 

1. 

17 

OJ L 161, 26.6.1999, p. 1. 

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13 

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2. 

1. 

2. 

3. 

1. 

2. 

Member  States  may  grant  additional  financing  for  the  implementation  of  the 
Community support programmes referred to in Title III. In such cases they must notify 
the  Commission  of  the  state  aid  and  the  Commission  must  approve  it  in  accordance 
with  this  Regulation  as  part  of  those  programmes.  The  aid  thus  notified  shall  be 
regarded as being notified within the meaning of the first sentence of Article 88(3) of 
the Treaty. 

Article 18 
Plant health programmes 

France  and  Portugal  shall  submit  programmes  to  the  Commission  for  the  control  of 
organisms harmful to plants or plant products in the French overseas departments and 
the Azores and Madeira respectively. The programmes shall specify in particular the 
objectives to be achieved, the measures to be carried out, their duration and their cost. 
The programmes submitted pursuant to this Article shall not concern the protection of 
bananas. 

The Community shall contribute to the financing of the programmes provided for in 
paragraph 1 on the basis of a technical analysis of the regional situations. 

The  financial  contribution  of  the  Community  provided  for  in  paragraph  2  and  the 
amount  of  the  aid  shall  be  decided  in  accordance  with  the  procedure  referred  to  in 
Article  26(2).  The  measures  eligible  for  Community  financing  shall  be  defined  in 
accordance with the same procedure. 

Such contribution may cover up to 60% of eligible expenditure in the French overseas 
departments  and  up  to  75%  of  eligible  expenditure  in  the  Azores  and  Madeira. 
Payment  shall  be  made  on  the  basis  of  documentation  provided  by  the  French  and 
Portuguese authorities. If necessary, checks may be organised by the Commission and 
conducted  on  its  behalf  by  experts  as  referred  to  in  Article  21  of  Council  Directive 
2000/29/EC18. 

Article 19 
Wine 

Chapter  II  of  Title  II  and  Chapters  I  and  II  of  Title  III  of  Council  Regulation  (EC) 
No 1493/199919  and  Chapter  III  of  Commission  Regulation  (EC)  No  1227/200020 
shall not apply to the Azores and Madeira. 

Notwithstanding  Article  19(1)  of  Regulation  (EC)  No  1493/1999,  grapes  from 
prohibited  direct-producer  hybrid  vine  varieties  (Noah,  Othello,  Isabelle,  Jacquez, 
Clinton  and  Herbemont)  harvested  in  the  Azores  and  Madeira  may  be  used  for  the 
production of wine which must remain within those regions. 

By  31  December  2006  Portugal  shall  have  gradually  eliminated  vineyards  planted 
with  prohibited  direct-producer  hybrid  vine  varieties,  with,  where  appropriate,  the 
support provided for in Chapter III of Title II of Regulation (EC) No 1493/1999. 

18 
19 
20 

OJ L 169, 10.7.2000, p. 1. 
OJ L 179, 14.7.1999, p. 1. 
OJ L 143, 16.6.2000, p. 1. 

EN 

14 

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3. 

1. 

2. 

3. 

4. 

Portugal shall notify the Commission, each year, of the progress made in converting 
and restructuring areas planted with prohibited direct-producer hybrid vine varieties. 

Chapter II of Title II and Title III of Regulation (EC) No 1493/1999 and Chapter III of 
Regulation (EC)  No 1227/2000 shall  not apply to the Canary  Islands, except  for the 
crisis distillation referred to in Article 30 of Regulation (EC) No 1493/1999, if there is 
exceptional market disturbance caused by problems of quality. 

Article 20 
Milk 

As from the marketing year 1999/2000, for the purposes of sharing the additional levy 
between the producers referred to in Article 4 of Regulation (EC) No 1788/2003, only 
producers  within  the  meaning  of  Article  5(c)  of  that  Regulation,  established  and 
producing  in  the  Azores,  who  market  quantities  exceeding  their  reference  quantity 
increased  by  the  percentage  referred  to  in  the  third  subparagraph  of  this  paragraph 
shall be deemed to have contributed to the overrun. 

The  additional  levy  shall  be  due  on  quantities  exceeding  the  reference  quantity  thus 
increased  by  the  above-mentioned  percentage,  after  reallocation  of  the  unused 
quantities  within  the  margin  resulting  from  this  increase  among  all  the  producers 
within the meaning of Article 5(c) of Regulation (EC) No 1788/2003 established and 
producing in the Azores, and in proportion to the reference quantity available to each 
producer. 

The percentage referred to in the first subparagraph shall be equal to the ratio between 
the  quantities  respectively  of  73 000  tonnes  for  the  marketing  years  1999/2000  to 
2004/05  and  23 000  tonnes  as  from  the  marketing  year  2005/06  and  the  total  of  the 
reference quantities available on each holding on 31 March 2000. It shall apply only 
to the reference quantities available on 31 March 2000. 

The  quantities  of  milk  or  milk  equivalent  marketed  which  exceed  the  reference 
quantities but which comply with the percentage referred to in paragraph 1, after the 
reallocation  referred  to  in  that  same  paragraph,  shall  not  be  taken  into  account  in 
establishing  any  overrun  by  Portugal  as  calculated  in  accordance  with  Article  1  of 
Regulation (EC) No 1788/2003. 

The  additional  levy  scheme  applicable  to  producers  of  cows'  milk  provided  for  in 
Regulation (EC) No 1788/2003 shall not apply in the French overseas departments or, 
within the limit of local production of 4 000 tonnes of milk, in Madeira. 

Notwithstanding  Articles  2  and  3  of  Council  Regulation  (EC)  No  2597/9721,  the 
production in Madeira of UHT milk reconstituted from milk powder originating in the 
Community shall be authorised within the limits of  local consumption requirements, 
insofar  as  this  measure  ensures  that  locally  produced  milk  is  collected  and  finds 
outlets. This product shall be used for local consumption only. 

Detailed  rules  for  the  application  of  this  paragraph  shall  be  adopted  in  accordance 
with the procedure referred to in Article 26(2). The detailed rules shall determine, in 

21 

OJ L 351, 23.12.1997, p. 13. 

EN 

15 

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particular,  the  quantity  of  locally  produced  fresh  milk  to  be  incorporated  into  the 
reconstituted UHT milk referred to in the first subparagraph. 

Article 21  
Livestock farming 

1. 

2. 

3. 

Until the local numbers of young male bovines reach a level sufficient to ensure the 
maintenance  and  development  of  local  beef  production  in  the  French  overseas 
departments  and  Madeira,  the  possibility  shall  be  introduced  of  importing  bovine 
animals  from  third  countries,  without  applying  the  customs  duties  referred  to  in 
Article  30  of  Regulation  (EC)  No  1254/1999,  for  fattening  and  consumption  in  the 
French overseas departments and Madeira. 

Article 3(4) and 4(1) shall apply to animals qualifying for the exemption referred to in 
the first subparagraph of this paragraph. 

The numbers of animals qualifying for the exemption referred to in paragraph 1 shall 
be determined when the need to import is justified, taking account of the development 
of  local  production.  These  numbers,  and  detailed  rules  for  the  application  of  this 
Article, including in particular the minimum duration of the fattening period, shall be 
fixed in accordance with the procedure referred to in Article 26(2). Priority for such 
animals  shall  be  given  to  producers  keeping  animals  for  fattening  at  least  50%  of 
which are of local origin. 

Where  Article  68(2)(a)(i)  of  Regulation  (EC)  No  1782/2003  is  applied,  the  Portugal 
may reduce the national ceiling for the suckler cow premium rights. In such case, in 
accordance with the procedure referred to in Article 26(2), the corresponding amount 
shall be transferred from the ceiling set under Article 68(2)(a)(i) of Regulation (EC) 
No  1782/2003  to  the  financial  resources  referred  to  in  the  second  indent  of  Article 
24(2). 

Article 22 
State aid for tobacco production 

Spain is hereby authorised to grant aid for the production of tobacco in the Canary Islands in 
addition to the premium provided for in Title I of Regulation (EEC) No 2075/9222. The grant of 
this aid may not result in discrimination between producers in the islands. 

The amount of the aid shall not be more than the Community premium referred to in the first 
paragraph. The additional aid shall be paid for up to 10 tonnes each year. 

Article 23 
Exemption of tobacco from customs duties 

1. 

No  customs  duties  shall  be  applied  to  direct  imports  into  the  Canary  Islands  of  raw 
and semi-manufactured tobacco falling, respectively, within: 

(a)  CN code 2401, 

22 

OJ L 215, 30.7.1992, p. 70. 

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16 

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(b) 

and the following subheadings: 

– 

– 

– 

– 

– 

– 

– 

– 

2401 10 Tobacco, not stemmed/stripped, 

2401 20 Tobacco, partly or wholly stemmed/stripped, 

ex 24 01 20 Outer coverings for cigars presented on supports, in reels for 
the manufacture of tobacco, 

2401 30 Tobacco waste, 

ex 24 02 10 Unfinished cigars without wrapping, 

ex  24  03  10  Cigarette  rag  (finished  mixtures  of  tobacco  for  the 
manufacture of cigarettes, cigars, cheroots and cigarillos), 

ex 24 03 91 Homogenised or reconstituted tobacco, whether or not put up 
in sheets or strips, 

ex 24 03 99 Expanded tobacco. 

The exemption provided for in the first subparagraph shall apply to products intended 
for the local manufacture of tobacco products, up to an annual import limit of 20 000 
of raw stripped tobacco equivalent. 

2. 

Detailed rules for the application of this Article shall be adopted in accordance with 
the procedure referred to in Article 26(2). 

TITLE V 
FINANCIAL PROVISIONS 

Article 24 
Financial resources 

1. 

2. 

The  measures  provided  for  in  this  Regulation,  except  for  Article  16,  shall  constitute 
intervention  intended  to  stabilise  the  agricultural  markets  within  the  meaning  of 
Article 2(2) of Council Regulation (EC) No 1258/199923. 

The  Community  shall  finance  the  measures  provided  for  in  Titles  II  and  III  of  this 
Regulation up to an annual maximum as follows: 

− 

− 

− 

French overseas departments: 

Azores and Madeira: 

Canary Islands: 

EUR 84.7 million,

EUR 77.3 million,

EUR 127.3 million.

3. 

The  amounts  allocated  annually  to  the  programmes  provided  for  in  Title  II  may  not 
exceed: 

− 

− 

− 

French overseas departments: 

Azores and Madeira: 

Canary Islands: 

EUR 20.7 million,

EUR 17.7 million,

EUR 72.7 million,

23 

OJ L 160, 26.6.1999, p. 103. 

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TITLE VI 
GENERAL AND FINAL PROVISIONS 

Article 25 
Implementing rules 

The  measures  necessary  for  the  implementation  of  this  Regulation  shall  be  adopted  in 
accordance with the procedure referred to in Article 26(2). They shall include in particular the 
reductions  in  the  number  of  animals  and  areas  planned  within  the  regional  and/or  national 
ceilings or the total amounts or base areas for the premiums and payments concerned. 

Article 26 
Management Committee 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Management  Committee  for  Direct 
Payments established by Article 144 of Regulation (EC) No 1782/2003, except for the 
implementation of Article 16 of this Regulation, for which it shall be assisted by the 
Committee on Agricultural Structures and Rural Development set up by Article 50 of 
Regulation (EC) No 1260/1999. 

Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC 
shall apply. 

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month. 

Article 27 
National measures 

The  Member  States  shall  take  the  measures  necessary  to  ensure  compliance  with  this 
Regulation,  in  particular  as  regards  checks  and  administrative  penalties,  and  shall  inform  the 
Commission thereof. 

Article 28 
Communications 

1. 

2. 

3. 

The Member States shall communicate to the Commission not later than 15 February 
each year the appropriations made available to them which they intend to spend in the 
following year on implementation of the programmes covered by this Regulation. 

The Member States shall submit to the Commission, not later than 30 June each year, 
a report on the implementation of the measures provided for in this Regulation. 

Not  later  than  31  December  2009,  and  thereafter  every  five  years,  the  Commission 
shall submit a general report to Parliament and the Council showing the impact of the 
action  taken  under  this  Regulation,  accompanied  if  applicable  by  appropriate 
proposals. 

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Article 29 
Repeals 

Regulations (EC) Nos 1452/2001, 1453/2001 and 1454/2001 are hereby repealed.  

References to the repealed Regulations shall be understood as references to this Regulation and 
shall be read in accordance with the correlation table in Annex II. 

Article 30 
Amendment of Regulation (EC) No 1782/2003 

Regulation (EC) No 1782/2003 is hereby amended as follows: 

1) 

Article 70 is amended as follows: 

(i) 

paragraph 1(b) is replaced by the following: 

"(b)  all  other  direct  payments  listed  in  Annex  VI  granted  to  farmers  in  the 
reference  period  in  the  French  overseas  departments,  the  Azores  and 
Madeira, the Canary and Aegean Islands and the direct payments granted 
in the reference period under Article 6 of Regulation (EEC) No 2019/93." 

(ii)  paragraph 2, first sub paragraph, is replaced by the following: 

"2.  Without  prejudice  to  Article  6(2)  of  Regulation  (EEC)  No  2019/93, 
Member States shall grant the direct payments referred to in paragraph 1 
of  this  Article,  within  the  limit  of  the  ceilings  fixed  in  accordance  with 
Article 64(2) of this Regulation, under the conditions established in Title 
IV,  Chapters  3,  6  and  7  to  13  of  this  Regulation  and  in  Article  6  of 
Regulation (EEC) No 2019/93 respectively." 

2) 

The first subparagraph of Article 71(2) is replaced by the following: 

"Without  prejudice  to  Article  70(2)  of  this  Regulation,  in  the  transitional  period  the 
Member State concerned shall effect each of the direct payments referred to in Annex 
VI  under  the  conditions  established  in  Title  IV,  Chapters  3,  6  and  7  to  13  of  this 
Regulation and in Article 6 of Regulation (EEC) No 2019/93 respectively, within the 
limit of budgetary ceilings corresponding to the component of these direct payments 
in the national ceiling referred to in Article 41 of this Regulation, fixed in accordance 
with the procedure referred to in Article 144(2) of this Regulation." 

3) 

Annexes I and VI are amended as set out in Annex III to this Regulation. 

Article 31 
Amendment of Regulation (EC) No 1785/2003 

Regulation (EC) No 1785/2003 is hereby amended as follows: 

1) 

2) 

Article 5 is deleted; 

Article 11(3) is deleted. 

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Article 32 
Entry into force 

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

It shall apply from 1 January 2006. However, Articles 13, 25 and 26 shall apply from the date 
of its entry into force. 

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

Done at Brussels, 

For the Council 
The President 

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ANNEX I 

1. 

– 

– 

– 

– 

– 

– 

– 

2. 

LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS FOR THE 
FRENCH OVERSEAS DEPARTMETNS 

Cereals and cereal products intended for human consumption and animal feed; 

Hops; 

Seed potatoes; 

Vegetable oils for use in the processing industry; 

Fruit pulps, purées and concentrated juices for processing; 

Preparations  for  animal  feed  falling  within  CN  codes  2309 90 31,  2309 90 33, 
2309 90 41, 2309 90 43, 2309 90 51 and 2309 90 53; 

Réunion: products falling within CN code 1006 20. 

LIST  OF  PRODUCTS  COVERED  BY  THE  SPECIFIC  SUPPLY  ARRANGEMENTS  FOR  THE 
REGION OF THE AZORES 

Description 

CN code 

Cereals and cereal products intended for human consumption and 
animal feed 

Maize seed 

Rice 

Soya beans 

Sunflower seed 

Hops 

Beet raw sugar 

Fruit juices (raw materials) 

Olive oil 

1005 10  

1006 

1201 00 90 

1206 00 99 

1210 

1701 12 10 

2009 

1509 10 90, 1509 90 00 

EN 

21 

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3. 

LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS FOR THE 
REGION OF MADEIRA 

Description 

CN code 

Cereals and cereal products intended for human 
consumption and animal feed 

Hops 

Dried lucerne 

Soya cake 

Rice 

Vegetable oil 

Sugars 

Fruit preserves and concentrated fruit juices (raw 
materials) 

Fresh or chilled beef and veal 

Frozen beef and veal 

Pigmeat 

Milk products: 

–  Milk powder: 

–  Liquid milk 

–  Butter 

–  Cheese 

Seed potatoes 

1210 

1214 10 

2304 

1006 

ex 1507 to ex 1516 

1701 and 1702 (except isoglucose) 

2007 99, 2008 et ex 2009 

0201 

0202 

0203 

ex 0402 

0401 

ex 0405 

0406 

0701 10 00 

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22 

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4. 

LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS 
FOR THE CANARY ISLANDS 

Description 

CN code 

Cereals and cereal products intended for human consumption 
and animal feed 

Malt 

Hops 

Rice 

Vegetable oil 

Sugars 

Concentrated fruit juices (raw materials) 

Fresh or chilled beef and veal 

Frozen beef and veal 

Frozen pigmeat 

Frozen poultrymeat 

Dried eggs (for the food industry) 

Seed potatoes 

Milk products: 

–  Liquid milk 

–  Concentrated or powdered milk 

–  Butter 

–  Cheese 

Milk-based preparations for children 

not containing animal fat 

Lucerne (alfalfa) meal and pellets 

Lucerne in other forms 

Oil-cake and other solid residues resulting from the 
extraction of soya-bean oil 

1107 

1210 

1006 

ex 1507 to ex 1516 

1701 and 1702 (except isoglucose) 

ex 2009 

0201 

0202 

0203 21, 0203 22, 0203 29 

0207 26, 22, 41, 42, 43, 50 

ex 0408 

0701 10 00 

0401 

0402 

ex 0405 

0406 30, 0406 90 23, 25, 27, 77, 79, 81, 89 

ex 1901 90 

1214 10 00 

ex 1214 90 90 

2304 00  

EN 

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Article 1 

Article 2 

Article 3 

Article 4 

Article 5 

Article 6 

Article 7 

Article 8 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

CORRELATION TABLE 

ANNEX II 

Regulation (EC) No 
1452/2001 

Regulation (EC) No 
1453/2001 

Regulation (EC) No 1454/2001 

Regulation (EC) No 
1785/2003 

This Regulation 

Article 1 

Article 2 

Article 1 

Article 2 

Article 1 

Article 2 

Article 3 (1) to (4) 

Article 3 (1) to (4) 

Article 3 (1) to (4) 

Article 3(5) 

Article 3(5) 

Article 3(5) 

3rd subparagraph of Article 
3(6) 

1st and 2nd subparagraphs 
of Article 3(6) 

1st and 2nd subparagraphs 
of Article 3(6) 

1st and 2nd subparagraphs of 
Article 3(6) 

Article 11(3) 

Article 5 

Article 6 

Article 8 

Article 9 

Article 11 

Article 12 

Article 13 

Article 14 

Article 15 

Article 16 

Article 17 

Article18 

Article 19 

Article 5 

Article 6 

Article 7 

Article 9 

Article 11 

Article 13 

Article 14 

Article 15 

Article 16 

Article 17 

Article 18 

Article 19 

Article 20 

Article 22, paragraphs 1 and 
2, 1st and 2nd 
subparagraphs of paragraph 
3, paragraph 4 and 
paragraph 5 
Article 24 

Article 25 

Article 26 

Article 27 

Article 18 

Article 10 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

EN 

24 

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Article 28 

Article 30 

Article 31 

Article 4 

Article 5 

Article 7 

Article 8 

Article 9 

Article 10 

Article 11 

Article 13 

Article 14 

Article 17 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Article 21(1) and (2) 

Article 33(1) and (2) 

Article 19(1) and (2) 

Article 16(1) and (2) 

Article 21(3) 

Article 21(5) 

Article 24 

Article 20 

Article 10(2) 

Article 7 

Article 33(3) 

Article 33(5) 

Article 33(6) 

Article 36 

Article 32 

Article 8 

Article 10 

Article 23 

Article 15(3) 

Article 15(4) 

Article 12 

3rd subparagraph of Article 
22(3) 

Article 25 

Article 37 

Article 22 

Article 23 

Article 26 

Article 27 

Article 34 

Article 35 

Article 38 

Article 39 

Article 19(4) 

Article 22 

Article 12 

Article 15 

Article 16 

Article 23 

Article 20 

Article 21 

Article 24 

Article 25 

Article 29 

Article 41 

Article 27 

Article 16(3) 

Article 16(4) 

Article 16(5) 

Article 17(1) 

Article 17(2) 

Article 18 

Article 19(1) 

Article 19(2) 

Article 19(3) 

Article 20(1) and (2) 

Article 20(3) 

Article 20(4) 

Article 21(1) and (2) 

Article 21(3) 

Article 22 

Article 23 

Article 24(1) 

Article 24(2), (3) and 
(4) 

Article 25 

Article 26 

Article 27 

Article 28 

Article 29 

Article 30 

Article 31 

Article 32 

EN 

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ANNEX III 

Annexes I and V to Regulation (EC) No 1782/2003 are amended as follows: 

1) 

Annex I is replaced by the following: 

"ANNEX I 

LIST OF SUPPORT SCHEMES FULFILLING THE CRITERIA SET OUT IN ARTICLE 1 

Sector 

Legal base 

Notes 

Single payment 

Title III of this Regulation 

Decoupled payment (see Annex VI) (*) 

Single area payment 

Title IVa, Article 143b of this 
Regulation 

Decoupled  payment 
payments listed in this Annex 

replacing  all 

the  direct 

Durum wheat 

Protein crop 

Rice 

Nuts 

Energy crops 

Starch potatoes 

Title IV, Chapter 1 of this 
Regulation 

Title IV, Chapter 2 of this 
Regulation 

Title IV, Chapter 3 of this 
Regulation 

Title IV, Chapter 4 of this 
Regulation 

Title IV, Chapter 5 of this 
Regulation 

Title IV, Chapter 6 of this 
Regulation 

Area payment (quality premium) 

Area payment 

Area payment 

Area payment 

Area payment 

Production aid 

Milk and milk products  Title IV, Chapter 7 of this 

Regulation 

Arable crops in Finland 
and in certain regions of 
Sweden 

Title IV, Chapter 8 of this 
Regulation (**)(*****) 

Dairy premium and additional payment 

Special regional aid for arable crops 

Seeds 

Arable crops 

Sheepmeat and 
goatmeat 

Beef and veal 

Title IV, Chapter 9 of this 
Regulation (**)(*****) 

Production aid 

Title IV, Chapter 10 of this 
Regulation (***)(*****) 

Area  payment,  including  set-aside  payments,  grass 
silage  payments,  supplementary  amounts(**)  and 
durum wheat supplement and special aid 

Title IV, Chapter 11 of this 
Regulation (***)(*****) 

Title IV, Chapter 12 of this 
Regulation (*****) 

and 

Ewe 
premium and certain additional payments 

she-goat  premium, 

supplementary 

Special  premium (***),  deseasonalisation  premium, 
suckler  cow  premium  (including  when  paid  for 
heifers and including the additional national suckler 
cow  premium  when  part-financed)(***),  slaughter 
premium(***),  extensification  payment,  additional 
payments 

Grain legumes 

Title IV, Chapter 13 of this 
Regulation (*****) 

Area payment 

EN 

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Specific types of 
farming and quality 
production 

Dried fodder 

Article 69 of this 
Regulation (****) 

Article 71(2) second 
subparagraph of this 
Regulation (*****) 

Small farmers' scheme  Article 2a 

Regulation (EC) 
No 1259/1999 

Transitional area aid for farmers receiving less than 
EUR 1 250 

Olive oil 

Silkworms 

Bananas 

Title IV, Chapter 10b, of this 
Regulation 

Area payment 

Article 1 
Regulation (EEC) No 845/72 

Aid to encourage rearing 

Article 12 
Regulation (EEC) No 404/93 

Production aid 

Dried grapes 

Article 7(1) 
Regulation (EC) No 2201/96 

Area payment 

Tobacco 

Hops 

POSEI 

Aegean Islands 

Cotton 

(*) 

Title IV, Chapter 10c, of this 
Regulation 

Production aid 

Title IV, Chapter 10d of this 
Regulation (***)(*****) 

Area payment 

Title III of Council 
Regulation No …/… (******) 

Direct  payments  within  the  meaning  of  Article  2, 
under measures established in the programmes 

Articles 6 (**)(*****), 8, 11 
and 12 
Regulation (EEC) 
No 2019/93 

Sectors: beef and veal; potatoes; olives; honey 

Title IV, Chapter 10a, of this 
Regulation 

Area payment 

Starting from 1 January 2005 or later in the case of application of Article 71. For 2004, or later on in 
the case of application of Article 71, the direct payments listed in Annex VI are included in Annex I 
except for dried fodder. 
In the case of application of Article 70. 
In the case of application of Articles 66, 67, 68 or 68a. 
In the case of application of Article 69. 
In the case of application of Article 71. 

(**) 
(***) 
(****) 
(*****) 
(******)  OJ L …, ……, p. ." 

EN 

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2) 

Annex VI is replaced by the following: 

"ANNEX VI 

LIST OF DIRECT PAYMENTS IN RELATION TO THE SINGLE PAYMENT  
REFERRED TO IN ARTICLE 33 

Sector 

Legal base 

Notes 

Arable crops 

Articles 2, 4 and 5 
Regulation (EC) No 1251/1999 

Area payment, including set-aside payments, grass 
silage payments, supplementary amounts(*), durum 
wheat supplement and special aid 

Potato starch 

Article 8(2) 
Regulation (EEC) No 1766/92 

Payment  for  farmers  producing  potatoes  for  the 
manufacture of potato starch 

Grain legumes 

Article 1 
Regulation (EC) No 1577/96 

Rice 

Seeds(*) 

Article 6 
Regulation (EC) No 3072/95 

Article 3 
Regulation (EEC) No 2358/71 

Area payment 

Area payment 

Production aid 

Beef and veal 

Articles 4, 5, 6, 10, 11, 13 and 14 
Regulation (EC) No 1254/1999 

Milk and milk 
products 

Title IV, Chapter 7 of this 
Regulation 

Sheepmeat and 
goatmeat 

Article 5 
Regulation (EC) No 2467/98 
Article 1 
Regulation (EEC) No 1323/90 
Articles 4, 5 and 11(1) and (2), 
1st, 2nd and 4th indents 
Regulation (EC) No 2529/2001 

Special  premium,  deseasonalisation  premium, 
suckler  cow  premium  (including  when  paid  for 
heifers  and 
the  additional  national 
suckler  cow  premium  when  part-financed), 
slaughter  premium, 
extensification  payment, 
additional payments 

including 

Dairy premium and additional payments (**) 

Ewe  and 
premium and certain additional payments 

she-goat  premium, 

supplementary 

Aegean Islands(*) 

Article 6(2) and (3) 
Regulation (EEC) No 2019/93 

Sectors: beef and veal 

Dried fodder 

Article 3  
Regulation (EC) No 603/95 

Payment  for  processed  products  (as  applied 
according to Annex VII point D of this Regulation) 

Cotton 

Olive oil 

Paragraph 3 of Protocol No 4 on 
cotton annexed to the Act of 
Accession of Greece 

Support  in  the  form  of  payment  for  unginned 
cotton 

Article 5 of Regulation No 
136/66/EEC 

Production aid 

EN 

28 

   EN 

 
 
Tobacco 

Hops 

Article 3 of Regulation 
No 2075/92/EEC 

Article 12 of Regulation (EEC) 
No 1696/71 

Article 2 of Regulation (EEC) 
No 1098/98 

Production aid 

Area payment 

Aid for temporary resting 

(*) 
(**) 

Except in the case of application of Article 70. 
Starting from 2007, except in the case of application of Article 62." 

EN 

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FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
05 02 11 04 (1) 

APPROPRIATIONS: 
EUR 268 millions (1) 

TITLE: 
Proposal  for  a  Council  Regulation  laying  down  specific  measures  for  the  agriculture  in  the  outermost 
regions of the Union 

LEGAL BASIS: 
Articles 36, 37 and 299(2) of the Treaty 

AIMS: 
Rationalise,  with  a  view  to  improving  their  effectiveness,  the  measures  applicable  to  the  Outermost 
Regions,  in  particular  through  the  establishment  of  programmes  providing  for  the  application  of  the 
specific supply arrangements and of measures in favour of local agricultural production in a form which 
is the most appropriate to the needs of the region concerned. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

12 MONTH 
PERIOD 

(EUR million) 

289,3 (2) 

5.1  REVENUE 

– 

CURRENT 
FINANCIAL 
YEAR  2004 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2005 
(EUR million) 

– 

– 

– 

– 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

– 

2006 

2007 

2008 

2009 

289,3 (2) 
– 

289,3 (2) 
– 

289,3 (2) 
– 

289,3 (2) 
– 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES / NO 

YES / NO 

YES / NO 

YES / NO 

OBSERVATIONS: 
(1) 

The appropriations for other lines of Title 05 are also concerned, especially as regards those payments 
which  are  made  in  the  outermost  Regions  in  the  context  of  certain  direct  aid  regimes  throughout  the 
Union. These payments notably concern beef, sheep and goat premiums (EUR 41,8 million) and arable 
crops  (EUR  1,9  million),  currently  financed  respectively  from  within  the  appropriations  of  05 03 02, 
05 03 03 and 05 02 03. 
The measure lays down annual ceiling amounts for each region for the financing of the specific supply 
arrangements and of measures in favour of local production. Since these ceilings are based on average 
expenditure in a recent reference period and on the ceilings already applicable for certain aids for the 
support of local production, the measure is neutral for the budget. 

(2) 

EN 

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