Commission Regulation (EC) No 1346/2005 of 16 August 2005 laying down detailed rules for the application of Council Regulation (EC) No 2702/1999 on measures to provide information on, and to promote, agricultural products in third countries
Date: 2005-08-16
Institutions: European Commission
Subjects: agricultural product, consumer information, foodstuff, sales promotion, third country

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COMMISSION REGULATION (EC) No 1346/2005

of 16 August 2005

laying down detailed rules for the application of Council Regulation (EC) No 2702/1999 on
measures to provide information on, and to promote, agricultural products in third countries

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 2702/1999 of 14
December 1999 on measures to provide information on, and to
promote, agricultural products in third countries (1), and in
particular Articles 5(1), 7 and 11 thereof,

Whereas:

(1)

(2)

(3)

(4)

In the light of experience gained in recent years,
Commission Regulation (EC) No 2879/2002 laying
down detailed rules for applying Council Regulation
(EC) No 2702/1999 on measures to provide information
in third
on, and to promote, agricultural products
countries (2) should be amended.
In the interests of
clarity
that Regulation should be
and rationality,
replaced by a new one.

Regulation (EC) No 2702/1999 gives proposing organi-
sations the possibility of implementing certain parts of
the programmes themselves and selecting implemen-
tation bodies at a later stage in the procedure, while
maintaining the Community contribution at a constant
level not exceeding 50 % of the actual cost of each phase
of the programme. Detailed rules should be laid down
for the application of those provisions.

In the interests of sound management, provision should
be made for the drawing up and regular updating of lists
of products and markets covered by information and
promotion actions for agricultural products in third
countries,
authorities
responsible for implementing this Regulation and the
duration of the programmes.

designation

national

the

of

In order to prevent any risk of distortion of competition,
rules should be drawn up on the way the specific origin
of products covered by information and promotion
campaigns is to be referred to.

(5)

The procedure for submitting programmes and selecting
the implementing body should be laid down to ensure

wide competition and the free movement of services,
bearing in mind, where the proposing organisation is a
public body,
the provisions of Council Directive
92/50/EEC of 18 June 1992 relating to the coordination
of
service
contracts (3).

procedures

public

award

the

for

of

(6)

(7)

and the

scrutiny of

Criteria governing the selection of programmes by the
Member States
selected
programmes by the Commission should be established
with a view to ensuring that the Community rules are
complied with and that the measures to be implemented
are effective. After examining the programmes,
the
Commission must decide which programmes are to be
accepted and lay down the relevant budgets.

the

In order to standardise the methods of selecting imple-
menting bodies and programmes, the same rules should
be applied to the measures to be carried out by the
international organisations referred to in Article 6 of
Regulation (EC) No 2702/1999. In the interests of legal
certainty, the messages disseminated under programmes
should comply with the legislation of the third countries
targeted.

(8) With a view to ensuring that the Community measures
are effective, the Member States must ensure that the
programmes
and
are
complement, their national and regional programmes.

consistent with,

approved

(9)

To that end, preferential criteria must be laid down for
selecting programmes so as to optimise their impact.

(10)

(11)

(12)

In the case of programmes involving more than one
Member State, provision should be made for measures
to ensure that the Member States concerned cooperate in
submitting and scrutinising programmes.

interests of

In the
sound financial management,
should contain detailed rules on the
programmes
financial contribution of Member States and proposing
organisations.

The various arrangements for fulfilling the commitments
entered into should be laid down in contracts to be
concluded between the parties
concerned and the
competent national authorities within a reasonable time
limit, using models supplied to the Member States by the
Commission.

(1) OJ L 327, 21.12.1999, p. 7. Regulation as amended by Regulation

(EC) No 2060/2004 (OJ L 357, 2.12.2004, p. 3).

(2) OJ L 333, 29.12.2000, p. 63. Regulation as last amended by Regu-

lation (EC) No 67/2005 (OJ L 14, 18.1.2005, p. 5).

(3) OJ L 209, 24.7.1992, p. 1. Directive repealed with effect from 31
January 2006 by Directive 2004/18/EC of the European Parliament
and of the Council (OJ L 134, 30.4.2004, p. 114).

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(13)

To ensure the proper performance of such contracts,
contractors should lodge a security equal to 15 % of
the Community contribution and that of the Member
States concerned in favour of the competent national
authority. To the same end, a security should be
lodged where an advance payment
for each annual
phase is applied for.

and gross negligence. Reimbursements and penalties
should be introduced to this end.

(22)

It should be clearly laid down that, in the case of multi-
annual programmes, an internal evaluation report should
be submitted on completion of each annual phase, even
where no payment request has been made.

(14)

The checks to be carried out by the Member States
should be determined.

(23)

(15)

It should be specified that the implementation of the
measures covered by the contracts is to be a primary
requirement within the meaning of Article 20 of
Commission Regulation (EEC) No 2220/85 of 22 July
1985 laying down common detailed rules for the appli-
cation of
for agricultural
products (1).

system of

securities

the

The interest rate payable by the beneficiary of a wrongful
payment should be aligned on the interest
rate for
amounts receivable not repaid on the due date referred
to in Article 86 of Commission Regulation (EC, Euratom)
No 2342/2002 of 23 December 2002 laying down
detailed rules for the implementation of Council Regu-
lation (EC, Euratom) No 1605/2002 on the Financial
Regulation applicable to the general budget of
the
European Communities (2).

(16) With a view to compliance with budget management
requirements, a financial penalty should be laid down
for failure to submit intermediate payment applications
or to do so on time, and for late payment by Member
States.

(24)

the

transition from Regulation (EC) No
To ease
transitional measures
2879/2000 to this Regulation,
should be
information and promotion
programmes for which funding is decided on by the
Commission before the entry into force of this Regu-
lation.

taken for

(17)

(18)

(19)

(20)

In the interests of sound financial management and in
order to avoid any risk of the payments to be made
taking up the whole of the Community financial contri-
bution and leaving no balance to pay, it should be laid
down that advances and intermediate payments must not
contribution from the
total
exceed 80 % of
Community and the Member States. To the same end,
applications for payment of the balance must reach the
competent national authorities within a specified time
limit.

the

The Member States should check all
information and
promotion material produced under the programmes.
The terms for the use of such material after the end of
the programmes should be laid down.

In the light of experience and in order to monitor the
proper implementation of the programmes, detailed rules
should be laid down for the monitoring by the group set
up to this end under Regulation (EC) No 2702/1999.

The Member States should check the implementation of
covered by this Regulation and the
the measures
Commission should be kept informed of the results of
the checks provided for by this Regulation.
In the
interests of
sound financial management, provision
should be made for cooperation between the Member
States concerned where measures are implemented in a
Member State other
in which the
competent contracting authority is established.

than the one

(25)

The measures provided for in this Regulation are in
accordance with the opinion of the Joint Management
Committee for the Promotion of Agricultural Products,

HAS ADOPTED THIS REGULATION:

CHAPTER 1

General provisions

Article 1

Purpose and definition

implementation,

This Regulation lays down detailed rules for applying Regulation
(EC) No 2702/1999, in particular as regards the drawing up,
selection,
the
programmes referred to in Article 7(1) of that Regulation and
the rules applicable to the programmes implemented through
an international organisation, as referred to in Article 6 of that
Regulation.

financing and checking of

‘Programme’ means a coherent set of operations of a scope that
is sufficient to contribute towards improving information about,
and sales of, the products concerned.

Article 2

Designation of competent authorities

(21)

To protect the Community's financial interests effectively,
adequate measures should be adopted to combat fraud

The Member States shall designate the competent authorities
responsible
implementing this Regulation (hereinafter
referred to as competent national authorities).

for

(1) OJ L 205, 3.8.1985, p. 5. Regulation as last amended by Regulation

(2) OJ L 357, 31.12.2002, p. 1. Regulation as amended by Regulation

(EC) No 673/2004 (OJ L 105, 14.4.2004, p. 17).

(EC) No 1261/2005 (OJ L 201, 2.8.2005, p. 3).

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They shall notify the Commission of the name and full details
of the authorities designated and any changes thereto.

CHAPTER 2

Selection of products referred to in Article 7 of Regulation
(EC) No 2702/1999

The Commission shall place that
domain in an appropriate form.

information in the public

Article 7

Article 3

Duration of the programmes

Programmes shall be implemented over a period of at least one
year but not more than three years from the date on which the
relevant contract takes effect, as referred to in Article 12(1).

Article 4

Characteristics of

information and promotion messages

disseminated under programmes

1.
All information and/or promotion messages passed on to
consumers and other target groups under programmes (here-
inafter referred to as the message) shall be based on the intrinsic
qualities of the product concerned or its characteristics.

These messages must comply with the legislation applicable in
the third countries at which they are targeted.

2.
Any reference to the origin of products shall be secondary
to the central message of a campaign. However, the origin of a
product may be indicated as part of an information or
promotion operation,
in the case of a designation under
Community rules or a typical product needed to illustrate the
information or promotion measures.

Article 5

List of products and markets

The lists of products and markets referred to respectively in
Articles 3 and 4 of Regulation (EC) No 2702/1999 are set
out in the Annex to this Regulation.

They shall be updated every two years, not
December.

later than 31

Article 6

Programmes implemented in cooperation with interna-
tional organisations

Where Article 6 of Regulation (EC) No 2702/1999 is applied,
the international organisations referred to in that Article shall
submit, at
for
programmes planned in the following year.

the Commission, proposals

the request of

Presentation of programmes and pre-selection by Member
States

For the purpose of implementing the operations under
1.
programmes, the Member State concerned shall publish a call
for proposals each year.

No later than 31 March each year, the trade and interbranch
organisations in the Community which are representative of the
sectors concerned (hereinafter referred to as proposing organi-
sations) shall submit their programmes to the Member State.

Programmes shall be submitted in a form prescribed by the
Commission and available from its website. This format shall
be attached to the calls for proposals referred to in the first
subparagraph.

The programmes submitted in accordance with paragraph

2.
1 shall comply with:

(a) Community rules governing the products concerned and

their marketing;

(b) the specifications stipulating exclusion, selection and award
criteria distributed to that end by the Member States
concerned.

Programmes must contain sufficient detail to comply with the
rules applicable and enable their cost/benefit
ratio to be
evaluated.

The Member States shall check programmes in particular against
the following criteria:

— consistency between the

strategies proposed and the

objectives set,

— the quality of the proposed measures,

— their likely impact and success in increasing demand for the

products concerned,

— assurances that the proposing organisations are effective and

representative,

— assurances that the proposed implementing body is effective

and has the required technical capacity.

The conditions governing the granting and payment of the
Community contribution, as referred to in Article 9(4) of Regu-
lation (EC) No 2702/1999, shall be laid down in an agreement
on assistance concluded between the Community and the inter-
national organisation concerned.

The Member States shall draw up a provisional
the
programmes they select on the basis of the criteria laid down
in the specifications referred to in point (b) of the first subpar-
agraph and of the criteria referred to in the third subparagraph.

list of

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For the purposes of implementing its programmes, each
3.
proposing organisation shall select one or more implementing
bodies by a competitive procedure validated by the Member
State concerned. Where this selection has been made before
the implementing body may
the programme is submitted,
take part in drawing up the programme.

In accordance with the third subparagraph of Article 7(3)
3.
of Regulation (EC) No 2702/1999, the Member States shall
send their amended programmes to the Commission within
30 calendar days of receiving the information referred to in
paragraph 2 of this Article.

the Member States concerned shall

4. Where a programme involving more than one Member
jointly
State is planned,
select the programme and nominate a coordinating Member
State. They shall undertake to contribute to the financing of
the programme in accordance with Article 11(2) and agree on
administrative collaboration procedures to facilitate the moni-
toring, implementation and checking of that programme.

or

regional measures

The individual Member States

5.
shall ensure that any
in
national
agreement with measures part-financed under Regulation (EC)
No 2702/1999 and that programmes presented complement
national and regional campaigns.

undertake

they

are

Article 8

Priority in selecting programmes

1.
In the case of programmes as referred to in Article 7(1) of
Regulation (EC) No 2702/1999 submitted by several Member
States, preference shall be given to those covering a group of
products and placing particular emphasis on quality, nutritional
and food safety aspects of Community production.

2.
In the case of programmes involving a single Member
State or a single product, preference shall be given to those
that emphasise the Community interest in particular in terms
of the quality, nutritional value, safety and representativeness of
European agricultural and food production.

After checking the amended programmes the Commission shall
decide, no later than 30 November, which programmes it may
part-finance in accordance with the procedure referred to in
Article 12(2) of Regulation (EC) No 2202/1999.

4.
The proposing organisation(s) shall be responsible for the
proper implementation and management of the programmes
selected.

Article 10

Approval of implementing bodies

1.
The implementing body selected in accordance with
Article 7(3) shall be approved by the Member State, which
inform the Commission thereof before the contract
shall
referred to in Article 12(1) is signed.

The Member State shall check that
the implementing body
selected has the necessary financial and technical resources to
ensure that the measures are implemented in the most effective
manner in accordance with Article 8(2) of Regulation (EC) No
2702/1999. It shall inform the Commission of the procedure
followed to this end.

2.
A proposing organisation may implement certain parts of
a programme as provided for in Article 7(5) of Regulation (EC)
No 2702/1999 only under the following conditions:

(a)

the proposed implementation complies with Article 8(2) of
Regulation (EC) No 2702/1999;

Article 9

(b) the proposing organisation has at least five years' experience

Selection of programmes by the Commission

of implementing such measures;

No later than 30 June each year the Member States shall
1.
referred to in Article 7(2)
send the Commission the list
including, where applicable, the list of
implementing bodies
which they have selected, where these have already been
selected in accordance with Article 7(3), and a copy of each
programme.

In the case of programmes involving more than one Member
State, this notification shall be made by common accord of the
Member States concerned.

(c)

the part of the programme carried out by the proposing
organisation accounts for no more than 50 % of its total
cost, except in duly justified cases and after obtaining the
written authorisation of the Commission;

(d) the proposing organisation shall ensure that the cost of the
measure which it plans to carry out itself is not in excess of
the normal market rates.

The Member State shall check that these conditions are met.

If the Commission finds that all or part of a programme
2.
submitted does not comply with the Community rules or the
criteria referred to in Article 7(2), and thus that all or part of
that programme is ineligible, it shall inform the Member States
concerned within 60 calendar days of receipt of the provisional
list referred to in Article 7(2).

3. Where the proposing organisation is a body governed by
public law within the meaning of the second subparagraph of
Article 1(b) of Directive 92/50/EEC, the Member States shall
take appropriate measures
the authorities
awarding contracts enforce the provisions of that Directive.

to ensure that

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The provisions of Directive 92/50/EEC shall also apply in the
case of the measures referred to in Article 6 of Regulation (EC)
No 2702/1999.

first

subparagraph,
the
undertakes to verify that:

provided

the

supervisory

body

CHAPTER 3

Financing of programmes

Article 11

Financial contributions

The financial contribution of the Community shall be paid

1.
to the Member States concerned.

2. Where several Member States contribute to the financing
of a programme, their shares shall complement the financial
contributions of each of the proposing organisations established
In such cases, notwithstanding
in their respective territories.
Article 9 of Regulation (EC) No 2702/1999, Community
financing shall not exceed 50 % of
the
programme.

the total cost of

Details of

3.
in
Article 9(2) and (3) of Regulation (EC) No 2702/1999 must
be given in the programme communicated to the Commission.

the financial contributions provided for

(a)

the obligations entered into are properly discharged, and

(b) the sums received are used properly to discharge the obli-

gations entered into.

Proof that the performance security has been lodged must reach
the Member State within the time limit laid down in para-
graph 1.

The primary requirement within the meaning of Article
4.
20 of Regulation (EEC) No 2220/85 shall be implementation of
the measures provided for in the contract.

The Member State shall immediately send the Commission
5.
a copy of the contract and proof that the performance security
has been lodged.

It shall also send a copy of the contract concluded by the
selected proposing organisation with the implementing body.
The latter contract shall contain the provision that the imple-
menting body must submit to the checks provided for in Arti-
cle 21.

Article 12

Article 13

Conclusion of contracts and provision of securities

Arrangements for the payment of advances

As soon as the Commission adopts the decision referred
1.
to in Article 9(3), the proposing organisations concerned shall
be informed by the Member States whether or not their appli-
cations have been accepted.

The Member States shall conclude contracts with the selected
proposing organisations within 90 calendar days of notification
of the Commission decision referred to in Article 9(3). Beyond
that deadline, no contracts may be concluded without prior
authorisation from the Commission.

The Member States shall use standard forms of contract

2.
provided by the Commission.

Where appropriate,
the Member States may amend certain
terms in the standard contracts in line with national rules,
provided that this does not infringe Community legislation.

3.
Contracts may not be concluded by the two parties until a
performance security equal to 15 % of the maximum annual
financial contribution from the Community and the Member
States concerned has been lodged in favour of the Member
State by the proposing organisation in accordance with Title
III of Commission Regulation (EEC) No 2220/85 in order to
ensure satisfactory performance of the contract.

However, if the contracting organisation is a body governed by
public law or acts under the supervision of such a body, the
competent national authority may accept a written guarantee
from the supervisory body covering the percentage specified in

1. Within 30 calendar days of the contract referred to in
Article 12(1) being signed and,
in the case of multiannual
programmes, within 30 days of the beginning of each twelve-
the contracting organisation may submit an
month period,
to the Member State
application for an advance payment
concerned,
in
paragraph 3 of this Article. Beyond that date, no applications
for an advance may be made.

security provided for

together with the

Each advance payment shall amount to no more than 30 % of
the annual contribution from the Community and the Member
State(s) concerned, as referred to in Article 9(2) and (3) respec-
tively of Regulation (EC) No 2702/1999.

The Member State shall pay an advance within 30
2.
calendar days of submission of
the application for advance
payment. Except in cases of force majeure, where the payments
are made late the amount of the monthly advance paid by the
Commission to the Member State
reduced in
accordance with Article 4 of Commission Regulation (EC) No
296/96 (1).

shall be

The

advance

shall be paid on condition that

the
3.
contracting organisation lodges a security equal to 110 % of
that advance in favour of
the Member State in accordance
with Title III of Regulation (EEC) No 2220/85. The Member
State shall forward a copy of each application for an advance
payment and proof that the corresponding security has been
lodged to the Commission immediately.

(1) OJ L 39, 17.2.1996, p. 5. Regulation as last amended by Regulation

(EC) No 605/2005 (OJ L 100, 20.4.2005, p. 11).

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However, if the contracting organisation is a body governed by
public law or acts under the supervision of such a body, the
competent national authority may accept a written guarantee
from the supervisory body covering the percentage specified in
body
the
undertakes to pay the amount covered by its guarantee if enti-
tlement to the advance as paid is not established.

subparagraph, provided

supervisory

first

the

Article 14

Intermediate payments

1.
Applications for intermediate payments of the Community
and Member State contributions shall be submitted by the
proposing organisations to the Member States before the end
of the calendar month following the month in which each
period of three months calculated from the date of signing of
the contract referred to in Article 12(1) expires.

the

relevant

statement,

copies of

Such applications shall cover the payments made during the
quarter concerned and shall be accompanied by a summary
financial
and
supporting documents and an interim report on the implemen-
tation of the contract during the quarter concerned (hereinafter
referred to as the quarterly report). Where no payment has been
made or no activities have been carried out during the quarter
concerned, these documents shall be sent to the competent
national authority within the deadline referred to in the first
subparagraph.

invoices

Except in cases of force majeure, where an application for inter-
mediate payment accompanied by the documents referred to in
the second subparagraph is submitted late, the payment shall be
reduced by 3 % for each whole month by which it is overdue.

The

intermediate payments

2.
shall be paid only on
condition that the Member State has checked the documents
referred to in the second subparagraph of paragraph 1.

3.
Intermediate payments and the advance payments referred
to in Article 13 taken together may not exceed 80 % of the
total annual financial contribution from the Community and
the Member States referred to in Article 9(2) and (3) respectively
of Regulation (EC) No 2702/1999. Once that level is reached,
no new intermediate payment applications may be submitted.

Article 15

Payment of the balance

Applications

for payment of

1.
shall be
submitted by the proposing organisation to the Member State
the annual measures
within four months of completion of
covered by the contract referred to in Article 12(1).

the balance

To be considered as admissible, the application shall be accom-
panied by:

(b) a summary financial statement showing all expenditure

scheduled and incurred.

The annual report shall be accompanied by copies of
the
invoices and supporting documents relating to the payments
made.

in cases of

force majeure, where an application for
Except
payment of the balance is submitted late, the balance shall be
reduced by 3 % for each month by which it is overdue.

The balance shall be paid only on condition that the
and documents

2.
Member State has
referred to in paragraphs 1(3).

checked the

invoices

Where the primary requirement referred to in Article 12(4) is
the balance payable shall be reduced
not satisfied in full,
proportionately.

Article 16

Payments by the Member State

Member States shall make the payments referred to in Articles
14 and 15 within 60 calendar days of receipt of the application
for payment.

However, this deadline may be suspended at any time in the 60-
day period after the payment application is first registered by
notifying the creditor contracting organisation that its appli-
cation is not admissible, either because the sum is not
payable, or because the application is not supported by the
requisite
applications, or
the
because the Member State deems it necessary to have further
information or to undertake checks. The payment period shall
start running again from the date of receipt of the information
requested or the date of the checks undertaken by the Member
State, which must be forwarded or undertaken respectively
within 30 calendar days of the notification.

additional

evidence

for

all

the amount of

Except in cases of force majeure, where the payments are made
the monthly advance paid by the
late
Commission to the Member State
reduced in
accordance with Article 4 of Regulation (EC) No 296/96.

shall be

Article 17

Securities

1.
The security referred to in Article 13(3) shall be released
on condition that definitive entitlement to the advance as paid
has been established by the Member State concerned.

Performance securities as provided for in Article 12(3)
2.
must remain valid until
the balance is paid and shall be
released by means of a letter of discharge issued by the
competent national authority.

(a) a summary of the work carried out and an evaluation of the
results obtained, which can be ascertained at the date of the
report;

Performance securities shall be released within the time limit
and on the terms laid down in Article 16 for payment of the
balance.

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Any securities forfeit and penalties imposed shall be
the
and declared to the European Agricultural

3.
deducted
Community
Guidance and Guarantee Fund (EAGGF), Guarantee Section.

part-financed

expenditure

from the

by

Article 18

Documents to be submitted to the Commission

The annual report shall be submitted after completion of
1.
each annual phase even where no application for payment of
the balance is lodged.

the
2. Within 30 calendar days
balance referred to in Article 15(2), the Member State shall
send the Commission the summary statements referred to in
points (a) and (b) of the second subparagraph of Article 15(1).

following payment of

3.
The Member State shall send the Commission twice a year
the quarterly reports required for intermediate payments in
accordance with Article 14.

The first and second quarterly reports shall be sent within 60
calendar days of receipt of the second quarterly report by the
Member State and the third and fourth quarterly reports
together with the
to in
paragraph 2 of this Article.

statements

summary

referred

visual works and websites, may be used subsequently provided
that prior written authorisation is obtained
from the
Commission, the proposing organisations concerned and the
Member
the
contribute
States which
the contractors' rights
programme, account being taken of
under the national law governing the contract.

financially

to

Article 20

Monitoring of programmes

The Monitoring Group provided for in Article 8(3) of
1.
Regulation (EC) No 2702/1999 shall meet
regularly to
monitor progress in implementation of the various programmes
in receipt of financing under this Regulation.

To that end, the Monitoring Group shall be informed of the
timetable for the planned measures under each programme, the
quarterly and annual reports and the results of
the checks
carried out in accordance with Articles 14, 15 and 21 of this
Regulation.

The Monitoring Group shall be chaired by a representative of
the Member State concerned. Where programmes involve more
than one Member State, the Monitoring Group shall be chaired
by a representative designated by the Member States concerned.

The annual report
quarterly report concerning the fourth quarter.

for the previous year may include the

2.
Commission officials and other staff may take part in
activities organised under a programme in receipt of financing
under this Regulation.

following payment of

the Member State shall

the
4. Within 30 calendar days
balance,
send the Commission a
financial statement detailing the expenditure incurred under
the contract, presented in accordance with a format prescribed
by the Commission and sent
to the Member States. The
statement shall be accompanied by a reasoned opinion of the
Member State on the implementation of the tasks set for the
phase ended.

The statement shall also certify that,
in the light of checks
carried out in accordance with Articles 14(2) and 15(2), all
the expenditure may be considered eligible under the terms of
the contract.

CHAPTER 4

Monitoring and control

Article 19

Use of material

The Member States shall check that the information and
1.
promotion material produced and used under the programmes
qualifying for financing under this Regulation complies with the
Community rules.

They shall send the Commission a list of material approved.

Article 21

Checks by the Member States

1.
The Member State concerned shall determine the most
appropriate means of checking the programmes and measures
covered by financing under this Regulation and shall notify the
Commission thereof.

The checks described shall be undertaken each year on at least
20 % of
the programmes completed in the previous year,
covering a minimum of two programmes, and shall relate to
at least 20 % of the total budget of the programmes completed
during the previous year. The selection of programmes for
sampling shall be based on a risk analysis.

The Member State shall send the Commission a report on each
programme checked, describing the results of the checks carried
out and the anomalies detected. The report shall be sent as soon
as it has been finalised.

2.
In particular by means of technical and accounting checks
at the premises of the contracting organisation and the imple-
menting body, the Member States shall take the steps necessary
to verify that:

2.
The material produced and financed under a programme
referred to in paragraph 1, including graphic, visual and audio-

(a)

the information and supporting documents supplied are
accurate, and

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(b) all the obligations laid down in the contract referred to in

Article 12(1) have been fulfilled.

Without prejudice to Council Regulation (EEC) No 595/91 (1),
the Member States shall inform the Commission at the earliest
opportunity of any irregularities detected during checks.

In the case of programmes involving more than one
take the
the Member States concerned shall
inform

3.
Member State,
necessary steps to coordinate their checks and shall
the Commission thereof.

The Commission may take part at any time in the checks
4.
the
provided for in paragraphs 1, 2 and 3. To that end,
competent national authorities in the Member States shall
send the Commission, at least 30 days prior to the checks, a
provisional schedule of the checks to be carried out by the
Member State.

The Commission may carry out any additional checks
considers necessary.

it

Article 22

Recovery of wrongful payments

In cases of wrongful payment,

1.
the beneficiary shall
reimburse the amount in question plus interest for the period
between payment and the reimbursement by the beneficiary.

The interest rate to be used shall be laid down in accordance
with Article 86(2) of Regulation (EC, Euratom) No 2342/2002.

2.
Amounts recovered and the relevant interest shall be paid
to the Member States' paying agencies or departments and
deducted by them from the expenditure financed by the
EAGGF in proportion to the Community financial contribution.

Subject

to Article 6 of Council Regulation (EC) No
2.
2988/95 (2), the reductions and exclusions under this Regu-
lation shall be without prejudice to additional
sanctions
pursuant to other provisions under Community or national law.

CHAPTER 5

Repeal, transitional and final provisions

Article 24

Repeal of Regulation (EEC) No 2879/2000

Regulation (EC) No 2879/2000 is hereby repealed. However,
the provisions of that Regulation shall continue to apply to
information and promotion programmes for which funding is
decided on by the Commission before the entry into force of
this Regulation.

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

Article 25

Transitional provisions

1.
For 2005, as well as the deadline provided for in the
second subparagraph of Article 7(1), a second deadline for
the submission of programmes shall be set at 31 October 2005.

2.
Notwithstanding the first subparagraph of Article 9(1), for
2005, for programmes submitted not later than 31 October
2005 the deadline for sending the Commission the provisional
list of programmes shall be 15 December 2005.

3.
Notwithstanding Article 9(3), for 2005 the Commission
shall take the decision referred to in that paragraph not later
than 28 February 2006.

Article 23

Penalties

Article 26

Entry into force

In the case of fraud or gross negligence, the proposing
repay twice the difference between the

1.
organisation shall
amount initially paid and the amount actually due.

This Regulation shall enter into force on the seventh day
following 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, 16 August 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

(1) OJ L 67, 14.3.1991, p. 11.

(2) OJ L 312, 23.12.1995, p. 1.

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ANNEX

1. List of third-country markets in which promotional measures may be carried out

A. COUNTRY

South Africa

Former Yugoslav Republic of Macedonia

Australia

Bosnia and Herzegovina

Bulgaria

China

South Korea

Croatia

India

Japan

Norway

New Zealand

Romania

Russia

Serbia and Montenegro (1)

Switzerland

Turkey

Ukraine

B. GEOGRAPHICAL AREAS

North Africa

North America

Latin America

South-east Asia

Middle East

2. List of products which may be covered by promotional measures in third countries

— Fresh, chilled and frozen beef, veal and pigmeat; food preparations based on these products

— Quality poultrymeat

— Milk products

(1) Including Kosovo, under the aegis of the United Nations, in accordance with Security Council Resolution 1244 of 10 June 1999.

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— Olive oil and table olives

— Table wines with a geographical indication. Quality wines psr

— Spirit drinks with a geographical indication or a reserved traditional description

— Fresh and processed fruit and vegetables

— Products processed from cereals and rice

— Fibre flax

— Live plants and products of ornamental horticulture

— Protected designation(s) of origin (PDO), protected geographical

indication(s) (PGI) or traditional speciality(ies)

guaranteed (TSG) in accordance with Council Regulations (EEC) No 2081/92 (1) or (EEC) No 2082/92 (2)

— Products of organic farming in accordance with Council Regulation (EEC) No 2092/91 (3).

(1) OJ L 208, 24.7.1992, p. 1.
(2) OJ L 208, 24.7.1992, p. 9.
(3) OJ L 198, 22.7.1991, p. 1.