Commission Regulation (EC) No 2080/2005 of  19 December 2005  laying down detailed rules for the application of Council Regulation (EC) No 865/2004 as regards operators’ organisations in the olive sector, their work programmes and the financing thereof
Date: 2005-12-19
Institutions: European Commission
Subjects: EU financing, action programme, olive-growing, producer organisation, production aid, terms for aid

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COMMISSION REGULATION (EC) No 2080/2005

of 19 December 2005

laying down detailed rules for the application of Council Regulation (EC) No 865/2004 as regards
operators’ organisations in the olive sector, their work programmes and the financing thereof

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 865/2004 of 29
April 2004 on the common organisation of the market in olive
oil and table olives and amending Regulation (EEC) No
827/68 (1), and in particular Article 9 thereof,

Whereas:

(1)

(2)

(3)

To ensure that approved operators’ organisations are
effective, approval must relate to the various categories
of operators having a major impact in the olive oil or
table olives sectors, while ensuring that those organi-
sations
certain
can
minimum conditions
to obtain
economically significant results.

compliance with

guarantee

sufficient

that

are

organisations

To allow producer Member States to implement admin-
approved
istrative management of
operators’
the
procedures and time-limits for the approval of such orga-
nisations,
their work
for
programmes, the arrangements for paying Community
financing and the allocation thereof should be laid down.

system of
olive

the
in the

selecting

criteria

sector,

the

Under Article 110i(4) of Council Regulation (EC) No
1782/2003 (2), which establishes common rules
for
direct support schemes under the common agricultural
policy and certain support schemes for farmers, Member
States may withhold up to 10 % of
the olive oil
component in the national ceiling referred to in Article
41 thereof to provide Community financing for the work
programmes drawn up by approved operators’ organi-
sations in one or more of
the areas referred to in
Article 8(1) of Regulation (EC) No 865/2004.

(4)

In accordance with the common rules on financing direct
support schemes, and to allow the use of the amounts

(1) OJ L 161, 30.4.2004, p. 97, as corrected by OJ L 206, 9.6.2004,

p. 37.

(2) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by
Commission Regulation (EC) No 118/2005 (OJ L 24, 27.1.2005,
p. 15).

(5)

(6)

(7)

(8)

for

the annual expenditure
available by Member State,
intended
the work
programmes should not exceed the annual amounts
withheld by the Member States in accordance with
Article 110i(4) of Regulation (EC) No 1782/2003.

implementation

the

of

the

types

operators’

organisations,

To ensure overall consistency between the activities of
approved
of
measures that are eligible for Community financing and
those that are ineligible should be laid down. The
arrangements for the submission of
the programmes
and the selection criteria for those programmes should
also be laid down. The Member States concerned should,
however, be allowed to lay down additional eligibility
conditions so as to gear measures more closely to the
national situation in the olive sector.

the very least

the Community financing
In the light of experience,
for the
thresholds should be fixed at
impacts of olive
areas of improving the environmental
cultivation and traceability, certification and protection,
under the authority of the national administrations, of
the quality of olive oil and table olives by means of
quality control on the olive oils
sold to the final
consumer so as to ensure implementation of at least a
certain number of measures in sensitive priority areas.

To ensure that the work programmes are implemented
within the given time periods and in accordance with
Article 8(1) of Regulation (EC) No 865/2004, and to
the
ensure
system of approved operators’ organisations
in the
the procedures should be laid down for
olive sector,
applications
selection and
for
approval of work programmes.

administrative management of

approval,

efficient

and

the

To allow correct use of
the financing available by
Member State, provision should be made for an annual
amendment of the work programmes approved for the
following year, to take into account any duly justified
the initial conditions. Member States
changes over
conditions
should also be able
required to amend the work programmes and redistribute
the amounts allocated without exceeding the annual
amounts withheld by the producer Member States
pursuant
to Article 110i(4) of Regulation (EC) No
1782/2003.

to lay down the

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(9)

(10)

(11)

To allow work to commence in good time, operators’
organisations should be able to receive a maximum
advance of 90 % of the eligible annual expenditure for
the approved work programme, subject to the lodging of
a security under the terms laid down by Commission
Regulation (EEC) No 2220/85 of 22 July 1985 laying
down common detailed rules for the application of the
system of securities for agricultural products (1).

2. Member States shall draw up the conditions for approval,
which shall include at least the following:

(a) producer organisations shall be composed exclusively of
olive producers who are not members of any other
approved producer organisation;

For the purposes of proper management of the rules on
operators’ organisations in the olive sector, the Member
States concerned should draw up a control plan and
for any irregularities
specify a system of penalties
for
committed.
be made
also
should
operators’ organisations to notify the results of
their
work to the national authorities in the Member States
concerned and to transmit
to the
Commission.

Provision

results

those

In the interests of clarity and transparency, Commission
Regulation (EC) No 1334/2002 of 23 July 2002 laying
down detailed rules for the application of Council Regu-
lation (EC) No 1638/98 as regards the work programmes
of operators organisations in the olive sector for the
marketing years 2002/03, 2003/04 and 2004/05 (2)
should be repealed and replaced by a new Regulation.

(b) associations of producer organisations shall be composed
exclusively of approved producer organisations which are
not part of another approved association of producer orga-
nisations;

(c) other operators’ organisations shall be composed exclusively
of operators in the olive sector who are not part of another
approved operators’ organisation;

(d) interbranch organisations

a broad and
balanced representation of all economic activities linked to
the production and processing of, and trade in, olive oil
and/or table olives;

shall provide

(12)

The Management Committee for Olive Oil and Table
Olives has not delivered an opinion within the time-
limit set by its chairman,

(e)

the operators’ organisation shall be in a position to submit a
work programme for at least one of the areas of measures
referred to in points (a),
(d) and (e) of the first
(b),
subparagraph of Article 5(1);

(c),

HAS ADOPTED THIS REGULATION:

Article 1

Scope

This Regulation lays down detailed rules for the application of
Articles 7 and 8 of Regulation (EC) No 865/2004 as regards the
approval of operators’ organisations,
the measures that are
eligible for Community financing,
the approval of work
programmes,
implementation of approved work
and the
programmes.

Article 2

Conditions for approving operators’ organisations in the
olive sector

shall approve operators’ organisations
1. Member States
eligible for Community financing of work programmes as
referred to in Article 8 of Regulation (EC) No 865/2004.

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

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

(2) OJ L 195, 24.7.2002, p. 16. Regulation last amended by Regulation

(EC) No 1331/2004 (OJ L 247, 21.7.2004, p. 5).

(f)

the operators’ organisation shall undertake to submit to the
checks provided for in Article 14 of this Regulation.

In evaluating the applications for approval submitted by
in

3.
operators’ organisations, Member States
particular the following aspects:

consider

shall

(a)

the specific features of the olive sector in each regional area
defined by the Member States (hereinafter regional area);

(b) consumer interests and market balance;

(c)

improving the production quality of olive oil and table
olives;

(d) an assessment of the effectiveness of the work programmes

submitted.

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Article 3

Procedure for approving operators’ organisations in the
olive sector

For the purposes of approval, operators’ organisations in
1.
the olive sector must lodge, by a date to be determined by the
Member State but no later than 15 February each year, an
application demonstrating that they meet the conditions laid
down in Article 2(2).

(b) has been penalised for infringing the scheme to fund the
activities of operators’ organisations provided for in Council
Regulation No 1638/98 (2)
in the 2002/03 or 2003/04
marketing years.

Operators’ organisations which have been approved by the
6.
Member State under Regulation (EC) No 1334/2002 and/or
the work programmes of
have
operators’ organisations in the marketing years from 2002/03
to 2004/05 may be deemed approved under this Regulation if
they meet the conditions referred to in Article 2(2).

received financing

for

The application for approval shall be drawn up in accordance
with a model provided by the competent authority in the
Member State in order to be able to monitor compliance
with the conditions provided for
It shall
include elements allowing the identification of each member
of the operators’ organisation.

in Article 2(2).

Article 4

Community financing

No later than 1 April of each year of implementation of
2.
the approved work programme, the operators’ organisation shall
be approved by the Member State and shall receive an approval
number.

Approval

shall be rejected,

3.
suspended or withdrawn
immediately if the operators’ organisation does not meet the
conditions referred to in Article 2(2).

Nevertheless, the operators’ organisation shall retain the
4.
rights which devolve from its approval until the moment that
its approval is withdrawn, provided that it acted in good faith as
regards conformity with the conditions referred to in Article
2(2).

is withdrawn because the operators’ organi-
Where approval
sation has failed deliberately or as a result of serious negligence
to comply with the conditions for approval referred to in
Article 2(2),
take
effect from the date from which the conditions for approval
are no longer being fulfilled.

the decision to withdraw approval shall

Approval

5.
immediately if the operators’ organisation:

shall be rejected,

suspended or withdrawn

The

annual Community

1.
the work
programmes of operators’ organisations shall be provided up
to the amount withheld in accordance with Article 110i(4) of
Regulation (EC) No 1782/2003.

financing

for

Member States shall ensure that the annual expenditure for the
implementation of approved work programmes does not exceed
the amount referred to in the first subparagraph.

2. Member States shall ensure that the Community financing
is allocated proportionately over the period provided for in
Article 8(1).

Article 5

Measures eligible for Community financing

1.
The measures eligible for Community financing under
Article 8(1) of Regulation (EC) No 865/2004 (hereinafter
eligible measures) shall be as follows:

(a)

in the
management in the olive oil and table olives sector:

area of market

follow-up and administrative

(i) collecting data on the sector and the market,

accordance with specifications
representativeness
geographical
down by the competent national authority;

in
relating to method,
and precision laid

(a) has been penalised for infringing the production aid scheme
provided for in Council Regulation No 136/66/EEC (1) in
the 2002/03 or 2003/04 marketing years,

(ii) drawing up studies, in particular on subjects linked to
the other activities provided for in the work programme
of the operators’ organisation concerned;

(1) OJ L 172, 30.9.1966, p. 3025/66.

(2) OJ L 210, 28.7.1998, p. 32.

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(b) in the area of improving the environmental impacts of olive

cultivation:

(v)

setting up and improving laboratories for the analysis
of virgin olive oils;

(i)

at

risk of

abandonment,

collective operations to maintain olive groves of high
environmental value
in
conformity with specified conditions, on the basis of
objective criteria, by the competent national authority
in particular concerning the regional areas which may
be eligible and the area and minimum number of olive
oil producers who must be involved to make the
operations in question effective;

(vi) training tasters to carry out organoleptic checks on

virgin olive oils;

(d) in the area of traceability, certification and protection, under
the authority of the national administrations, of the quality
of olive oil and table olives by means of quality control on
the olive oils sold to the final consumer:

(ii) developing good agricultural practice in olive growing,
based on environmental
criteria adapted to local
conditions, its dissemination among olive growers and
following up its practical application;

(i)

setting up and managing systems allowing products to
be traced from the olive grower through to packaging
and labelling, in accordance with specifications set out
by the competent national authority;

(iii) practical demonstrations of alternatives to chemical

products for controlling olive fly;

(iv) practical demonstrations of olive-growing techniques
geared towards environmental protection and stew-
ardship of the countryside, such as organic farming,
low-input farming, integrated farming, etc.;

(v) adding environmental data to the geographic infor-
mation system for olive cultivation (olive GIS) referred
to in Article 20 of Regulation (EC) No 1782/2003;

(ii)

setting up and managing quality certification systems,
based on a system of risk analysis and checks on critical
points, which is in conformity with technical criteria
adopted by the competent national authority;

(iii) setting

up

systems

and managing

to monitor
compliance with norms attesting to the authenticity,
quality and marketing of the olive oil and table olives
placed on the market, in accordance with the technical
specifications laid down by the competent national
authority;

(c)

in the area of improving the production quality of olive oil
and table olives:

(e)

in the area of disseminating information on measures
carried out by operators’ organisations to improve the
quality of olive oil and table olives:

(i)

growing,

conditions

improving
in particular
for
controlling olive fly, harvesting, delivering and storing
olives prior
in accordance with the
technical specifications laid down by the competent
national authority;

to processing,

(ii) varietal

improvement of olive groves on individual
holdings, provided that they contribute to the objectives
of the work programmes;

(iii) improving conditions

for

storage and use of

the

residues of olive oil and table olive production;

(i) disseminating information on the work carried out by
operators’ organisations in the areas referred to in points
(a), (b), (c) and (d);

(ii) setting up and maintaining an internet site on measures
carried out by operators’ organisations in the areas
referred to in points (a), (b), (c) and (d).

As regards the measure provided for in point (c)(ii) of the first
subparagraph, Member States shall ensure that appropriate
provisions are made in order to recover the investment or its
residual value if the member leaves the operators’ organisation.

(iv) technical assistance to the olive oil processing industry
covering aspects linked to the quality of products;

2. Member States may adopt additional conditions specifying
the eligible measures, provided that these do not render their
presentation or implementation impossible.

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Article 6

Allocation of Community financing

(a) reimbursement (including in the form of annual payments)
of loans taken out for a measure carried out in full or in
part before the beginning of the work programme;

In each Member State a minimum percentage of 20 % of the
amount of Community financing available under Article 8 of
Regulation (EC) No 865/2004 shall be allocated to the area
referred to in point (b) of the first subparagraph of Article
5(1), and a minimum percentage of 12 % of that Community
financing shall be allocated to the area referred to in point (d) of
the first subparagraph of Article 5(1).

If the minimum percentage referred to in the first subparagraph
cannot be fully used in the areas of measures mentioned
therein, the amounts which have not been used may not be
allocated to other areas of measures but shall be returned to the
Community budget.

(b) payments

to operators participating in meetings

and

training programmes, to compensate for loss of income;

(c) expenditure relating to administrative and personnel costs
incurred by Member States and beneficiaries of aid from the
EAGGF shall not be borne by the Fund;

(d) the purchase of land which has not been built on;

(e)

the purchase of second-hand equipment;

Article 7

Activities and costs ineligible for Community financing

(f) expenditure linked to leasing contracts,

including taxes,

interest and insurance costs;

The

following

1.
for
Community financing under Article 8 of Regulation (EC) No
865/2004:

shall not be

activities

eligible

(g) hire as an alternative to purchase, and the operating costs of

the goods hired.

(a) activities which are in receipt of Community financing other
than that provided for in Article 8 of Regulation (EC) No
865/2004;

4. Member States may adopt additional conditions giving
further details of the ineligible activities and costs referred to
in paragraphs 1 and 3.

(b) activities aiming at a direct

increase in production or

involving a rise in storage or processing capacity;

Article 8

(c) activities linked to the purchase or storage of olive oil or

table olives or having an impact on their prices;

(d) activities linked to the commercial promotion of olive oil or

table olives;

(e) activities linked to scientific research;

(f) activities

that could distort competition in the other

economic activities of the operators’ organisation.

To ensure compliance with paragraph 1(a), operators’
2.
organisations shall undertake in writing, on behalf of themselves
and their members,
to refuse any financing under another
Community or national aid scheme for measures which are
actually financed under Article 8 of Regulation (EC) No
865/2004.

Work programmes and applications for approval

1.
The work programmes eligible for Community financing
under Article 8(1) of Regulation (EC) No 865/2004 shall be
carried out over a maximum period of three years. The first
period shall begin on 1 April 2006. The following periods shall
begin every three years on 1 April.

Each operators’ organisation approved under this Regu-
2.
lation may lodge an application for approval for one single
work programme by a date to be determined by the Member
State but no later than 15 February each year.

The application for approval
elements:

shall contain the following

(a) details of the operators’ organisation in question;

(b) information on the selection criteria provided for in Article

9(1);

In the implementation of

3.
the measures referred to in
Article 5, costs incurred as a result of the following shall not
be eligible for Community financing:

(c) a description and justification of each proposed measure,

and a timetable;

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(d) the planned expenditure, broken down by measure and by
area of measures, as referred to in Article 5, with details for
each 12-month period from the date of approval of the
work programme, distinguishing the overheads, which
the total, and the other main
may not exceed 2 % of
types of costs;

(c)

the size of
programme;

the regional area involved in the work

(d) the divergent economic situations in the regional area
in the work

involved which are taken into account
programme;

(e)

the financing plan by area of measures referred to in Article
5, with details for each 12-month period maximum from
the date of approval of the work programme, indicating in
particular the Community financing applied for and, where
appropriate, the financial contributions from operators and
the national contribution;

(f)

the description of the quantitative and qualitative efficiency
indicators allowing interim evaluation in the course of
implementation, and ex post evaluation of the programme
on the basis of general principles laid down by the Member
State;

(e)

the existence of several areas of measures and the size of the
financial contribution from the operators;

(f)

the quantitative and qualitative efficiency indicators allowing
interim evaluation in the course of implementation, and ex
post evaluation of the programme drawn up by the Member
State.

Member States shall take account of the distribution of appli-
cations among the different types of operators’ organisations in
each regional area.

(g) proof that a bank security for an amount equivalent to at
least 5 % of the requested Community financing has been
lodged;

2. Member States shall reject any work programmes that are
incomplete or contain inaccurate information, or include any of
the ineligible activities provided for in Article 7.

(h) an application for an advance under Article 11;

(i)

the declaration provided for in Article 7(2);

3.
No later than 15 March each year, Member States shall
inform operators’ organisations which work programmes have
to which work
been approved and, where
programmes they have granted the corresponding national
financing.

applicable,

(j)

for interbranch organisations and associations of producer
the operators’ organisations
details of
organisations,
responsible for the actual
implementation of the subcon-
tracted measures in their programmes;

(k) for operators’ organisations forming part of an association
of producers or of an interbranch organisation, a statement
that the measures provided for in their programmes are not
covered by any other application for Community financing
under this Regulation.

Article 9

Selection and approval of work programmes

1. Member States shall select the work programmes on the
basis of the following criteria:

Final approval of a work programme may be made subject to
the incorporation of amendments judged necessary by the
the operators’ organisation
Member State.
concerned shall communicate its agreement within 15 days of
the notification of amendments.

In this

case,

Should the proposed work programme not be selected,
security

immediately release

4.
the Member State
referred to in Article 8(2)(g).

shall

the

shall

States

ensure

5. Member
amount of
Community financing is allocated within each category of
operators’ organisation taking account of the value of olive
oil produced or marketed by the members of the operators’
organisation.

that

the

(a)

the general quality of the programme and its consistency
with the goals and priorities of
the olive sector in the
regional area concerned, as laid down by the Member State;

(b) the financial credibility and the sufficiency of the financial
resources of the operators’ organisation concerned for the
purposes of implementing the proposed measures;

Article 10

Amendments to work programmes

Operators’ organisations may,

in accordance with a
1.
procedure laid down by the Member State, request amendments
to the content and budget of their approved work programme,
provided that this does not involve an overrun on the amount
withheld pursuant to Article 110i(4) of Regulation (EC) No
1782/2003.

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Requests for amendment to a work programme shall be
2.
accompanied by supporting documents setting out the reasons
for and the nature and implications of the proposed changes.
Such requests shall be submitted by the operators’ organisation
least six months before the
to the competent authority at
planned start of implementation of the measure in question.

3. Where operators’ organisations with previously separate
work plans have merged,
they shall operate the plans in
parallel and separately until 1 January of the year following
the merger. These organisations
their work
programmes by means of an application to amend their
respective work programmes, in accordance with paragraphs 1
and 2.

shall merge

Notwithstanding the first subparagraph, the Member States may
authorise the operators’ organisations which so request, for duly
substantiated reasons,
respective work
to implement
programmes without merging them.

their

4.
No later than two months after receiving the amendment
request referred to in paragraph 2, once it has examined the
documents provided, the competent authority in the Member
State shall communicate its decision to the operators’ organi-
sation concerned. If a decision is not taken within that time-
limit, the request shall be deemed to have been accepted.

Should the Community financing obtained by the
in the
their

5.
operators’ organisation be less
programme,
approved
programme to the financing obtained.

than the amount
adapt

beneficiaries may

Article 11

Advances

An operators’ organisation which has lodged the appli-
1.
cation provided for in Article 8(2)(h) shall receive, under the
conditions referred to in paragraph 2 of this Article, a total
advance of a maximum of 90 % of the eligible expenditure
planned for
approved work
programme.

covered by the

each year

2.
During the month following the beginning of the imple-
mentation of each year of the approved work programme, the
Member State shall pay the operators’ organisation concerned
an initial instalment of one third of the amount referred to in
paragraph 1.

3. Member States shall check that each instalment of the
advance has actually been spent, before paying the following
instalment.

This check shall be carried out by the Member State on the
basis of the report referred to in Article 13 or on the basis of an
on-the-spot check as referred to in Article 14.

4.
The payments referred to in paragraph 2 shall be subject
to the lodging of a security by the operators’ organisation
concerned in accordance with Regulation (EEC) No 2220/85
of an amount equal to 110 % of the advance requested. The
primary requirement within the meaning of Article 20(2) of that
Regulation is the implementation of the measures listed in the
approved work programme.

Once the security referred to in the first subparagraph has been
lodged, the Member State shall immediately release the security
referred to in Article 8(2)(g).

release of

5.
By a date to be determined by the Member State but no
later than the end of each year of implementation of the work
programme, the operators’ organisations concerned may lodge
an application for
the security referred to in
paragraph 4 up to an amount equal to half the expenditure
actually carried out. The Member State shall
lay down which
supporting documents must accompany this application and
check them, and shall release the securities corresponding to
the expenditure concerned no later than in the course of the
second month following that in which the application is lodged.

Article 12

Application for Community financing

1.
For the purposes of payment of the Community financing
under Article 8 of Regulation (EC) No 865/2004, an operators’
organisation shall
lodge, by a date to be determined by the
Member State but no later than three months after the end of
each year of implementation of its work programme, an appli-
cation for financing with the paying agency.

The Member State may pay operators’ organisations the balance
of Community financing corresponding to each year of imple-
mentation of the work programme after checking, on the basis
of the report referred to in Article 13 or on the basis of an on-
the two
the-spot check as referred to in Article 14,
instalments of the advance referred to in Article 11(2) have
actually been spent.

that

A second instalment equivalent to the remaining two thirds of
the amount referred to in paragraph 1 shall be paid after
carrying out the check referred to in paragraph 3.

Applications for Community financing submitted after the date
referred to in the first subparagraph shall be inadmissible and
any amounts received in respect of Community financing for
the programme shall be reimbursed in accordance with the
procedure laid down in Article 17.

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The application for Community financing shall be drawn
2.
up in accordance with a model provided by the competent
authority in the Member State. To be admissible, the application
shall be accompanied by:

tation of the work programmes during the previous calendar
year. These reports shall cover the following:

(a) supporting documents proving:

(i)

the expenditure effected in the period of implementation
of the work programme (invoices and bank documen-
tation proving that they have been paid);

(ii) where appropriate, payment of

butions of
concerned;

the operators

the financial contri-
and the Member State

(b) a summary report comprising the following elements:

(a)

the stages of the work programme implemented or being
implemented;

(b) the main amendments to the work programmes;

(c) an evaluation of the results already obtained based on the

indicators laid down in Article 8(2)(f).

For the final year of implementation of the work programme, a
final report shall replace the reports provided for in the first
subparagraph.

(i)

a detailed description of the stages of the programme
implemented, broken down by areas of measures as
detailed in Article 5;

2.
For work programmes with a duration of under one year,
the final report shall be presented no later than two months
after the end of implementation of the programme.

(ii) where appropriate, the justification and the financial
repercussions of the gaps between the stages of the
work programme approved by the Member State and
the stages of
the work programme actually imple-
mented;

(iii) an evaluation of the work programme implemented
based on the indicators laid down in Article 8(2)(f).

The final report shall evaluate the work programme and

3.
shall comprise at least the following:

(a) an account, based at

least on the indicators set out

in
Article 9(1)(f) and any other relevant criteria, showing to
what extent the objectives pursued by the programmes have
been achieved;

3.
Applications for financing which do not comply with the
conditions set out in paragraphs 1 and 2 shall be rejected. The
operators’ organisation concerned may lodge a new application
for financing within a period to be laid down by the Member
State.

(b) an account of the changes to the work programme;

(c) where appropriate, an indication of the factors to be taken
into account in drawing up the next work programme.

Applications for expenditure made more than two months
4.
after the end of the period of implementation of the work
programme shall be rejected.

Article 14

On-the-spot checks

No later than three months after the date of submission of
5.
the application for financing and the supporting documents
referred to in paragraph 2, and once they have carried out
the examination of the supporting documents and the checks
shall pay the
referred to in Article 14, Member States
Community financing that is due and, as appropriate, release
the securities referred to in Article 8(2)(g) or Article 11(4).

Article 13

Operators’ organisation reports

from 2007, operators’ organisations shall
1. With effect
submit by 1 May of each year annual reports on the implemen-

1. Member States shall verify that the conditions for granting
regards
Community financing are met,
compliance with the following aspects:

in particular

as

(a) compliance with the approval conditions;

(b) implementation of

the approved work programmes,

in

particular investment measures;

(c)

the expenditure actually implemented as compared to the
assistance applied for and the financial contribution by the
olive operators concerned.

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Official Journal of the European Union

20.12.2005

The competent authority shall introduce control plans for
2.
on-the-spot checks covering a sample of approved operators’
organisations in accordance with Article 8(3) of Regulation
(EC) No 865/2004. The competent authority shall select the
sample on the basis of risk analysis in such a way that:

— producer organisations and associations

thereof are all
subject to on-the-spot checks at least once after payment
of the advance and before the final payment of Community
financing;

— other operators’ organisations and interbranch organisations
are all checked each year during the period of implemen-
tation of each approved work programme, unless they have
benefited from an advance in the course of that year,
in
which case the check will be carried out after the date of
payment of that advance.

If the checks reveal irregularities, the competent authority shall
carry out additional checks during the year in question and shall
increase the number of operators’ organisations to be checked
the following year.

The on-the-spot checks shall be unannounced. However,
3.
in order
to facilitate the practical organisation of checks,
advance warning of no more than 48 hours may be given to
the operators’ organisation to be checked.

The competent authority shall determine which operators’
4.
organisations to check on the basis of a risk analysis based on
the following criteria:

(a)

the amount of financing for the approved work programme;

(b) the nature of
programme;

the measures

financed under

the work

(c)

the degree of progress in implementing work programmes;

(d) findings made during previous on-the-spot checks or verifi-

cations carried out during the approval procedure;

(e) other risk criteria to be defined by the Member States.

Article 15

Inspection reports

Every on-the-spot check shall be the subject of a detailed
inspection report, indicating in particular:

(a)

the date and duration of the check;

(b) a list of those present;

(c) a list of invoices checked;

(d) reference numbers of invoices selected from the accounting
documents (register of sales, or of purchases, and VAT
register in which the selected invoices have been recorded);

(e) bank documents proving payment of the amounts selected;

(f) an indication of the measures already carried out which

have been specifically analysed on-the-spot.

Article 16

Corrections and penalties

1. Where the withdrawal of approval referred to in Article
3(3) results from the fact that the operators’ organisation has
failed deliberately or by serious negligence to meet its obli-
the operators’ organisation shall be ineligible for
gations,
financing in respect of the entire work programme and shall
also pay the competent authority an amount equal
to the
ineligible amount of financing.

2.
If a given measure has not been implemented in
conformity with a work programme, the operators’ organisation
shall be ineligible for financing for the measure in question.
This exclusion shall not apply if the operators’ organisation
has submitted factually correct information or can show by
any other means that it is not at fault.

The following penalties shall apply to operators’ organi-
3.
sations where irregularities are found in the implementation of
the work programme:

(a)

in the event of an irregularity caused by negligence, the
operators’ organisation:

(i)

shall be ineligible for financing for the measure in
question;

5.
The duration of each on-the-spot check shall correspond
to the degree of progress in implementing the approved work
programme.

(ii) shall also pay the competent authority an amount equal

to the ineligible amount of financing;

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Official Journal of the European Union

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(b) in the event of an intentional

irregularity,

declarations, the operators’ organisation:

including false

The amounts recovered or paid under this Article shall be
4.
paid to the paying agency and deducted from expenditure
financed
and
Guarantee Fund.

European Agricultural Guidance

the

by

(i)

shall be ineligible for financing in respect of the entire
work programme;

(ii)

shall also pay the competent authority an amount equal
to the ineligible amount of financing;

Article 18

Communications from the Member States

No later

1.
than 31 January 2006 the Member States
producing olive oil shall communicate to the Commission the
national measures
and in
particular those relating to:

implementing this Regulation,

(iii) shall be ineligible for Community financing under
Article 8 of Regulation (EC) No 865/2004 for the
entire three-year period following that in which the
irregularity was discovered.

(a)

the conditions for approval of the operators’ organisations
referred to in Article 2(2);

Amounts resulting from the application of the corrections
4.
or penalties under this Article shall be paid to the responsible
paying agency and deducted by it from expenditure financed by
the European Agricultural Guidance and Guarantee Fund.

Article 17

Recovery of undue payments

1.
The competent authority in the Member State shall
recover any amount unduly paid plus, where appropriate,
interest calculated in accordance with paragraph 2.

2.

Interest shall be calculated:

(a) on the basis of the period elapsing between payment and

reimbursement by the beneficiary;

(b) the additional conditions specifying the eligible measures

adopted pursuant to Article 5(2);

(c)

the goals and priorities of the olive sector referred to in
Article 9(1)(a) and the quantitative and qualitative indicators
referred to in Article 9(1)(f);

(d) the arrangements for the system of advances referred to in
Article 11 and, where appropriate, the system for paying the
national financing;

(e)

the application of the checks referred to in Article 14 and of
the penalties and corrections provided for in Article 16;

(f)

the period referred to in Article 12(3).

2.
No later than 1 May of each year of implementation of
the approved work programme, Member States shall transmit to
the Commission data on:

(b) at the rate applied by the European Central Bank to its main
refinancing operations published in the ‘C’ series of the
Official Journal of the European Union and in force on the
date on which the undue payment
is made, plus three
percentage points.

(a) approved operators’ organisations;

3.
In the case of a measure which is subsequently found to
be ineligible, and which has been implemented in conformity
with an approved work programme, the Member State may
decide to pay the relevant financing due or not to proceed to
the recovery of amounts which have already been paid out, if
such a decision is permitted in comparable cases financed from
the national budget and if the operators’ organisation has not
acted negligently or intentionally.

(b) the work programmes and their characteristics, broken
down by type of operators’ organisation, by area of
measures and by regional area;

(c)

the amount of financing allocated to each work programme;

(d) the planned schedule of Community financing by budget
year for the total period covered by the work programmes.

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20.12.2005

No later than 10 September of each year of implemen-
3.
tation of the approved work programmes, Member States shall
transmit to the Commission a report on the implementation of
this Regulation comprising at least the following information:

(a)

the number of work programmes financed, recipients, areas
under olive trees, mills, processing facilities and volumes of
oil and table olives concerned;

(b) the characteristics of the measures developed in each of the

areas of measures;

(c) any discrepancy between measures planned and measures
actually carried out, and its implications at the level of
expenditure;

(d) a description and evaluation of results, based in particular
on the evaluations of the work programmes referred to in
the third indent of Article 12(2)(b)(iii);

(e) statistics on the checks carried out

in accordance with
Articles 14 and 15 and the penalties or corrections
applied in accordance with Article 16;

(f) expenditure by programme and by area of measures, and
financial contri-

the Community, national and operators’
butions.

Article 19

Transitional provision

The Member States may

for

the

first

year of

1.
financing
programme.

advance

the Community
the

implementation of

This advance must be limited exclusively to the amount

2.
corresponding to that Community financing.

3.
Expenditure resulting from the payment of the advance
provided for in paragraph 2 shall be entered in the accounts as
expenditure incurred from 16 to 31 October 2006.

Article 20

Repeal

Regulation (EC) No 1334/2002 is hereby repealed.

However, Articles 9, 10 and 11(3) thereof shall continue to
apply in the case of work programmes covering the 2004/05
marketing year.

Article 21

Entry into force

4.
The communications provided for in this Article shall be
carried out electronically in accordance with the information
provided to the Member States by the Commission.

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, 19 December 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission