Proposal for a Council Regulation laying down specific rules as regards the fruit and vegetable sector  and amending certain Regulations
Date: 2007-01-24
Institutions: European Commission
Subjects: common organisation of markets, fruit, vegetable

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.1.2007 
COM(2007) 17 final 

2007/0012 (CNS) 

Proposal for a 

COUNCIL REGULATION 

laying down specific rules as regards the fruit and vegetable sector  
and amending certain Regulations 

(presented by the Commission) 

{SEC(2007) 74} 
{SEC(2007) 75} 

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EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

EU-27 fruit and vegetables production accounts for 3.1% of the Community budget and 17% 
of the total EU agricultural production. 

The  current  common  market  organisation  (CMO)  is  set  out  in  Council  Regulations  (EC) 
No 2200/96  of  28  October  1996  on  the  common  organisation  of  the  market  in  fruit  and 
vegetables1, (EC) No 2201/96 of 28 October 1996 on the common organisation of the markets 
in  processed  fruit  and  vegetable  products2  and  (EC)  No 2202/96  of  28  October  1996 
introducing a Community aid scheme for producers of certain citrus fruits. 

In  October  2005,  drawing  its  first  conclusions  from  the  debate  launched  in  2004  by  the 
publication  of  the  report  on  the  simplification  of  the  fruit  and  vegetables  common  market 
organisation3, the Commission said that in 2006 it would propose a reform covering both the 
fresh and processed sectors4. 

In  May  2005 
Communication5. 

the  European  Parliament  adopted 

its  own-initiative  report  on 

this 

In keeping its commitments of better legislation, the Commission proposal is accompanied by 
an  analysis  of  the  economic,  social  and  environmental  aspects  of  the  problems  linked  to  the 
CMO and of the impact, the advantages and drawbacks of the different options to these issues, 
including the results of a public consultation on a set of options for reform. 

This  reform  proposal  also  answers  the  European  Court  of  Auditors'  recommendations  in  its 
Special  Report  No  8/2006  "Growing  success?  The  effectiveness  of  the  European  Union 
support for fruit and vegetable producers' operational programmes", published in September. 

2. 

REASONS AND OBJECTIVES OF THE REFORM 

During the last ten years, the fruit and vegetables sector has faced both strong pressure from 
the highly concentrated retail and discount chains that plays a major role in the setting of the 
market  price  and  the  strong  competition  of  third  country  products  who  are  offering  a 
combination  of  improved  quality  at  relatively  low  prices  and  are  taking  rapidly  growing 
market shares. 

Since the fruit and vegetables' CMO reform in 1996, producer organisations (POs) and their 
operational programs (OPs) have been the key elements for the grouping of the supply of fruit 
and vegetables. The experience has shown that POs are still a valid element to face the highly 
concentrated retail and discount chains. Nevertheless the level of the concentration of fruit and 

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OJ  L  297,  21.11.1996,  p. 1.  Regulation  as  last  amended  by  Commission  Regulation  (EC)  No 6/2005 
(OJ L 2, 5.1.2005, p. 3). 
OJ  L  297,  21.11.1996,  p. 29.  Regulation  as  last  amended  by  the  2004  Act  of  Accession  (OJ L 236, 
23.9.2003, p. 33). 
COM(2004) 549, 10.8.2004. 
COM(2005) 531, 25.10.2005. 
P6-A(2005)0121. 

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vegetables production through POs has not succeeded in concentrating supply in all Member 
States.  A  high  percentage  of  growers  in  the  main  producing  Member  States  choose  not  to 
participate. The reform includes measures to improve POs' attractiveness. 

On the other hand, the current CMO for processed fruit and vegetables products is based on 
principles  which  for  other  common  market  organisations  have  been  substantially  reformed. 
The current system, essentially providing support to quantities of products is no more in line 
with  the  CAP.  The  reform  proposes  the  inclusion  of  fruit  and  vegetables'  area  in  the  single 
payment scheme and in the single area payment scheme. The shifting from production support 
to direct aid to producers by introducing a system of decoupled income support for each farm 
will contribute to promote a more marketed oriented and sustainable agriculture. 

The present reform proposal includes measures for crises management, to increase promotion 
of fruit and vegetables, and to maintain the environment. 

The identified objectives of this reform are to: 

–  improve EU fruit and vegetables' competitiveness and market orientation or, in other words 
to  contribute  to  achieving  sustainable  production  that  is  competitive  both  on  internal  and 
external markets, 

–  reduce fluctuations in fruit and vegetables producers' income resulting from crises, 

–  increase consumption of fruit and vegetables in the EU, 

–  continue the efforts made by the sector to maintain and protect the environment, 

–  simplify and where possible reduce the administrative burden for all concerned. 

The aforementioned objectives of the reform have been identified taking into account the need 
for  WTO  compatibility;  consistency  with  the  reformed  CAP,  first  and  second  pillar  and 
conformity with the financial perspectives. Finally, it has to be pointed out that this proposal 
has been drawn up in light of the Commission proposal for a Council Regulation establishing a 
common organisation of agricultural markets. The fruit and vegetables CMO reform proposal 
is affected by the latter. 

–  Some provisions of horizontal nature and existing for a range of other agricultural products 
such  as  those  on  state  aids,  exchange  of  information  between  the  Commission  and  the 
Member States and the management Committee are left in the existing CMO for fruit and 
vegetables. Nevertheless they have been updated, simplified and streamlined so as to allow 
for their easy incorporation into that single CMO proposal. 

–  With regards to other provisions in the fruit and vegetables sector, the scope of the changes 
to  the  regime  make  it  necessary  in  the  interests  of  clarity  to  incorporate  them  in  this 
proposal. Nevertheless, where such provisions are to some extent also of a horizontal nature 
and  so  exist  for  a  range  of  other  agricultural  products,  such  as  marketing  standards  and 
trade  with  third  countries,  they  have  been  updated  and  simplified  so  as  to  allow  for  their 
easy  incorporation  into  a  Council  Regulation  establishing  a  common  organisation  of 
agricultural markets. 

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3. 

1. 

PROPOSED MEASURES FOR REFORM OF THE FRUIT AND VEGETABLES CMO 

Producer organisations 

Producer  organisations:  Taking  into  account  that  POs  have  played  a  relevant  role  in  the 
concentration of the supply, provisions have been made for simplification and more flexibility 
in their operation wherever possible. Such  provisions concern the product range of producer 
organisation, the extent of direct sales permitted and the extension of rules to non-members, 
more  incentives  to  mergers  of  POs,  associations  of  producer  organisations  (APO),  to  those 
regions where the level of the concentration of the supply through POs is very low (less than 
20% of fruit and vegetables production), to the States who became members of the Union as 
from 1 May 2004 and to the outermost regions, the delegation of powers or functions of PO to 
APO and the delegation of functions to subsidiaries under certain conditions. In its report to 
the  European  Parliament  and  to  the  Council  on  the  situation  of  the  sector  of  soft  fruits  and 
cherries  intended  for  processing,  the  Commission  indicates  that  it  may  propose  specific 
additional aid for Member States with a low level of organisation. This is being done with the 
above mentioned changes. 

The Commission has also proposed the inclusion of additional culinary herbs in the common 
market organisation for fruit and vegetables.  

New  producer  groups:  In  order  to  improve  the  grouping  of  the  supply  through  POs  in  new 
Member  States,  Producer  groups  in  new  Member  States  wishing  to  acquire  the  status  of 
producer  organisations  in  accordance  with  this  Regulation  shall  be  allowed  the  benefit  of  a 
transitional  period  during  which  specific  national  and  Community  financial  support  can  be 
given against certain commitments by the group. 

National strategy for sustainable  operational  programs: The Court of Auditors considers that 
Member  States  have  not  ensured  that  the  expenditure  on  producer  organisations'  operational 
programmes has been effective. They also consider that the Commission has not monitored the 
effectiveness of the operational programmes or evaluated the policy either. In order to achieve 
more  effective  operational  programmes,  the  Commission  proposes  that  Member  States  shall 
establish a national strategy for sustainable operational programmes in the fruit and vegetable 
market.  Such  a  strategy  should  provide  for  the  following  elements:  an  ex-ante  analysis,  the 
objectives of operational programmes and instruments, performance indicators, assessments of 
operational programmes and reporting obligations for producer organisations. 

Extension  of  rules:  In  order  to  further  boost  the  impact  of  producer  organisations  and 
associations and ensure the market as much stability as is desirable, the Commission proposes 
that Member States shall be allowed on certain conditions to extend to non-member producers 
in their region the rules, particularly on production, marketing and environmental protection, 
adopted  for  its  members  by  the  organisation  or  association  for  the  region  concerned  on  the 
basis  of  more  flexible  criteria  (producer  organisations  will  be  deemed  representative  for  the 
extension  of  rules  when  their  members  account  for  at  least  50%  of  the  producers  in  the 
economic area where they operate and they cover at least 60% of the production of that area. 
At  present,  a  producer  organisation  or  association  of  producer  organisations  is  deemed 
representative  where  its  members  account  for  at  least  two  thirds  of  the  producers  in  the 
economic area in which it operates and it covers at least two thirds of the production of that 
area). 

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The  Commission  proposes  also  that  costs  arising  from  this  extension  of  the  rules  should  be 
chargeable to the producers who are subject to the extension of rules since they will benefit 
from the extension.  

Given  the  particularities  of  the  organic  market,  the  Commission  also  proposes  that  the 
extension  of  rules  will  not  apply  to  organic  producers  unless  they  agree  and  as  long  as  they 
respect certain conditions. 

Interbranch  organisations:  The  reform  introduces  flexibility  on  Interbranch  organisations. 
Given the similarity of the objectives pursued, the provisions on extending the rules adopted 
by producer organisations and their associations and on sharing the costs resulting from such 
extension are also applied to interbranch organisations. 

2. 

Crisis management 

Fruit  and  vegetables  are  perishable  products  and  production  is  unpredictable.  Surplus  on  the 
market, even if they are not too high, can strongly disturb the market. For this reason, producer 
organisations  have  been  receiving  100%  of  the  withdrawal  costs  for  some  products 
(Community Withdrawal Contribution – CWC) and for free distribution. POs have also been 
allowed  to  use  Operational  funds  to  top  up  this  CWC  and  to  withdraw  other  products  not 
covered by that scheme.  

Experience has shown that the budget devoted to withdrawals has been reduced due to the fact 
that during the last ten years supply has been better adapted to demand. Nevertheless, the fruit 
and  vegetables  sector  goes  on  suffering  from  market  crises.  This  is  why  the  Commission 
proposes a wider range of tools for the crisis management to be carried out through POs. Crisis 
management  shall  cover  in  this  context:  market  withdrawal,  green  harvesting  or  non-
harvesting of fruit and vegetables; promotion and communication; training measures; harvest 
insurance; and support for the administrative costs of setting up mutual funds. 

Concerning  withdrawals,  as  explained  above, 
Compensation) has been removed. The Commission proposes that: 

the  CWC  (Community  Withdrawals 

–  withdrawals can be carried out by POs on the principle of 50/50% co-financing; 

–  withdrawals for free distribution in the EU will be 100% paid by the Community up to at a 

limit of 5% of the volume of the marketed production of each producer organisation. 

3. 

The introduction of fruit and vegetables areas in the single payment scheme (SPS) 

The  proposal  sets  out  the  integration  of  the  fruit  and  vegetables  into  the  single  payment 
scheme. Such integration implies: 

–  making  the  land  covered  by  fruit  and  vegetables  (including  orchards  and  potatoes  for 

human consumption) eligible for the activation of payment entitlements; 

–  decoupling  the  existing  support  for  processed fruit  and  vegetable  products  and  increasing 

the SPS national budgetary ceilings; 

–  allowing Member States to establish reference amounts under the scheme on the basis of a 
representative period appropriate to the market of each fruit and vegetable product and of 
appropriate objective and non-discriminatory criteria. 

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4. 

Environmental concerns 

The  production  and  marketing  of  fruit  and  vegetables  should  take  full  account  of 
environmental  concerns,  including  cultivation  practices,  the  management  of  waste  materials 
and the disposal of products withdrawn from the market, in particular as regards the protection 
of water quality, the maintenance of biodiversity and the upkeep of the countryside. 

In order to achieve this, the Commission proposes: 

–  the introduction of fruit and vegetables areas in the Single Payment Scheme means that the 
cross compliance rules will be compulsory for all fruit and vegetables producers receiving 
direct payments; 

–  an  enhanced  approach  to  operational  programs:  Currently  there  are  no  limits  in  the 
operational  programs  for  environmental  measures  expenditures:  The  reform  proposal 
introduces a minimum of 20% of expenditure in each operational program; 

–  an enhanced approach to organic production: During the last years, an increasing demand 
for  organic  vegetables,  largely  being  met  by  innovative,  medium  scale  producers  has 
occurred.  The  proposal  introduces  a  Community  co-financing  rate  of  60%  for  organic 
production in each operational program. 

5. 

Promotion 

The goal intake of fruit and vegetables in a healthy diet is set at a minimum of 400 g per day 
by the WHO/FAO. Taking into account that in the EU only Greece and Italy reach this level, 
the Commission proposes the following ways to improve promotion of fruit and vegetables:  

–  POs  will  continue  to  be  able  to  include  promotion  in  their  operational  programs;  in 
particular they will carry  out generic promotion  under certain  conditions to be decided in 
the implementing regulations and promotion of POs' brands; furthermore they will have to 
include in their operational programmes action targeted at promoting consumption of fruit 
and vegetables by young consumers; 

–  Council  Regulation  (EC)  No  2826/2000  will  be  amended  in  order  to  increase  the  EU  co-
financing rate would to 60% in the case where the promotion of fruit and vegetables would 
be targeted towards school-age children and adolescents; 

–  under  the  new  heading  of  crisis  management,  promotion  and  communication  are  eligible 

measures for funding by POs operational programmes; 

–  market withdrawals, which are 100% EU co-financed, can be distributed in the EU for free 
not  only  to  charitable  organisations  and  foundations  but  also  to  schools  and  public 
education institutions and children's holiday camps. 

6. 

Trade with third countries 

Taking  into  account  that  the  WTO  negotiation  talks  are  still  ongoing  and  that  their  outcome 
remains unknown, the reform proposal does not touch on the current legal framework relating 
to external trade (entry price system, tariff quotas, trigger volumes…). 

For fruit and vegetables, the impact and the role of export refunds have been analysed. Their 
economic impact has considerably decreased. Indeed, exports with refunds represent less than 

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one third of total exports. The value of export refunds is situated between 0.8 and 8.9% of the 
price of the products in question. It has therefore been considered that better use can be made 
of the funds allocated to this instrument and it is proposed to abolish export refunds. 

7. 

Simplification 

The administrative simplification resulting from the abolition of the processing aids in favour 
of  the  existing  single  payment  scheme  or  of  the  single  area  payment  scheme  is  a  great 
advantage of the proposed reform.  

In  its  effort  to  improve  the  attractiveness  of  Producer  Organisations  the  reform  proposes 
several simplifications and increased flexibility. 

Abolition of export refunds also implies a resulting simplification as all the procedures relating 
to the granting of these refunds will no longer exist for exporters. 

8. 

Marketing standards 

The  particular  issue  of  the  simplification  of  marketing  standards  has  been  dealt  with  by 
replacing the legal provisions on these standards with the more concise text that will be in the 
single  CMO.  In  particular  this  ensures  that  the  Commission  has  sufficient  flexibility  and 
powers to simplify where appropriate and possible. 

4. 

BUDGETARY IMPACT OF THE PROPOSAL 

The  impact  of  the  proposed  reform  does  not  increase  costs  with  respect  to  the  status  quo 
scenario. It is expected that the changes and innovations in the regime will lead to the budget 
being used more efficiently. 

The increase to the Single Payment Scheme budgetary ceilings will be equal to the historical 
level of expenditure for the States who were members of the Union before 1 May 2004 and to 
the amounts resulting from the enlargement treaties for the other Member States. 

The operational programmes of the Producer Organisations will be reinforced, especially for 
the  Member  States  where  the  grouping  of  the  supply  through  the  Producer  Organisations  is 
very low. It is expected that the value of production passing through the targeted organisations 
in  these  countries  will  grow  faster  than  for  the  other  Producer  Organisations.  Reinforced 
financial support will also be given to improve the recognition of producer groups in order to 
become  Producer  Organisations.  The  overall  budget  effect  will  be  largely  neutral  due  to  the 
proposed abolition of export refunds and market withdrawals. 

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2007/0012 (CNS) 

Proposal for a 

COUNCIL REGULATION 

laying down specific rules as regards the fruit and vegetable sector  
and amending certain Regulations 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission6, 

Having regard to the opinion of the European Parliament7, 

Having regard to the opinion of the European Economic and Social Committee8, 

Having regard to the opinion of the Committee of the Regions9, 

Whereas: 

(1) 

(2) 

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The  current  regime  for  the  fruit  and  vegetables  sector  is  laid  down  in  Council 
Regulation  (EC)  No 2200/96 of  28  October  1996  on  the  common  organisation  of  the 
market  in  fruit  and  vegetables10,  Council  Regulation  (EC)  No 2201/96  of  28  October 
1996  on  the  common  organisation  of  the  markets  in  processed  fruit  and  vegetable 
products11 and Council Regulation (EC) No 2202/96 of 28 October 1996 introducing a 
Community aid scheme for producers of certain citrus fruits12. 

In the light of experience it is necessary to change the regime for fruit and vegetables 
in order to achieve the following objectives: improving the competitiveness and market 
orientation of the sector so as to contribute to achieving sustainable production that is 
competitive both on internal and external markets, reducing fluctuations in producers' 
income  resulting  from  crises  on  the  market,  increasing  the  consumption  of  fruit  and 
vegetables in the Community and continuing the efforts made by the sector to maintain 
and protect the environment. 

OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ  L  297,  21.11.1996,  p. 1.  Regulation  as  last  amended  by  Commission  Regulation  (EC)  No 6/2005 
(OJ L 2, 5.1.2005, p. 3). 
OJ L 297, 21.11.1996, p. 29. Regulation as last amended by the Act of Accession of 2003. 
OJ L 297, 21.11.1996, p. 49. Regulation as last amended by the Act of Accession of 2003. 

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(3) 

(4) 

(5) 

The  proposal  for  a  Council  Regulation  establishing  a  common  organisation  of 
agricultural markets could initially incorporate certain provisions covering the fruit and 
vegetables  sector  which  are  of  a  horizontal  nature  and  apply  for  a  range  of  other 
agricultural products, namely those on state aids, exchange of information between the 
Commission and the Member States and a management committee. It is appropriate to 
leave  such  provisions  in  Regulations  (EC)  No 2200/96  and  (EC)  No 2201/96.  Those 
provisions  should  however  be  updated,  simplified  and  streamlined  so  as  to  allow  for 
their easy incorporation into that proposal. 

As regards other provisions in the fruit and vegetables sector, the scope of the changes 
to  the  regime  make  it  necessary  in  the  interests  of  clarity  to  incorporate  all  such 
provisions in a separate Regulation. Where such provisions are to some extent also of a 
horizontal nature and apply for a range of other agricultural products, such as those on 
marketing  standards  and  trade  with  third  countries,  they  should  also  be  updated  and 
simplified  so  as  to  allow  for  their  easy  incorporation  into  a  Council  Regulation 
establishing  a  common  organisation  of  agricultural  markets  at  a  later  date.  This 
Regulation  should  not,  therefore,  repeal  or  change  existing  instruments  of  this 
horizontal nature unless they have become obsolete, redundant or should not, by their 
very nature, be dealt with at Council level. 

The  scope  of  this  Regulation  should  be  products  covered  by  the  common  market 
organisations of the markets in fruit and vegetables and processed fruit and vegetables. 
However, the provisions on producer organisations and interbranch organisations and 
agreements  only  apply  to  products  covered  by  the  common  market  organisation  for 
fruit  and  vegetables  and  this  distinction  should  be  maintained.  The  scope  of  the 
common market organisation in fruit and vegetables should also be extended to certain 
culinary herbs to allow them to benefit from the regime. 

(6)  Marketing  standards,  in  particular  relating  to  definition,  quality,  grading,  weight, 
sizing, packaging, wrapping, storage, transport, presentation, marketing and labelling, 
should  apply  in  respect  of  certain  products  to  permit  the  market  to  be  supplied  with 
products of uniform and satisfactory quality. Moreover, special measures, in particular 
up-to-date methods of analysis and other measures to determine the characteristics of 
the standards concerned, may need to be adopted to avoid abuses as regards the quality 
and  authenticity  of  the  products  presented  to  the  consumers  and  the  important 
disturbances  on  the  markets  they  may  involve.  Currently,  Council  Directive 
2001/112/EC of 20 December 2001 relating to fruit juices and certain similar products 
intended for human consumption13 lays down marketing standards for these products. 
However these rules are not fully updated. For reasons of simplification it is therefore 
appropriate  to  repeal  that  Directive  and  so  allow  updated  marketing  standards  to  be 
adopted for fruit juices in the same way as for other fruit and vegetable products. 

(7) 

The  production  and  marketing  of  fruit  and  vegetables  should  take  full  account  of 
environmental  concerns,  including  cultivation  practices,  the  management  of  waste 
materials  and  the  disposal  of  products  withdrawn  from  the  market,  in  particular  as 
regards the protection of water quality, the maintenance of biodiversity and the upkeep 
of the countryside. 

13 

OJ L 10, 12.1.2002, p. 58. 

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(8) 

(9) 

Producer  organisations  are  the  basic  elements  in  the  fruit  and  vegetables  regime,  the 
decentralised operation of which they ensure at their level. In the face of ever greater 
concentration of demand, the grouping of supply through these organisations continues 
to  be  an  economic  necessity  in  order  to  strengthen  the  position  of  producers  in  the 
market. Such grouping must be effected on a voluntary basis and must prove its utility 
by the scope and efficiency of the services offered by producer organisations to their 
members. 

Experience shows that producer organisations are the correct tool for grouping supply. 
However,  the  spread  of  producer  organisations  in  different  Member  States  has  been 
uneven.  In  order  to  further  improve  the  attractiveness  of  producer  organisations, 
provision  should  be  made  for  more  flexibility  in  their  operation  wherever  possible. 
Such  flexibility  should  concern  in  particular  the  product  range  of  a  producer 
organisation,  the  extent  of  direct  sales  permitted  and  the  extension  of  rules  to  non-
members  as  well  as  permitting  the  delegation  of  powers  or  functions  of  producer 
organisations 
to  necessary 
to  associations  of  producer  organisations,  subject 
conditions, and the delegation of functions to subsidiaries. 

(10)  A  producer  organisation  should  not  be  recognised  by  its  Member  State  as  able  to 
contribute to achievement of the objectives of the common market organisation unless 
its  articles  of  association  impose  certain  requirements  on  it  and  its  members.  The 
establishment  and  proper  functioning  of  operational  funds  require  that  producer 
organisations  should  in  general  take  charge  of  the  whole  of  the  relevant  fruit  and 
vegetable production of their members. 

(11)  Producer groups in Member States which have acceded to the Community in 2004 or 
thereafter  and  wishing  to  acquire  the  status  of  producer  organisations  in  accordance 
with this Regulation should be allowed the benefit of a transitional period during which 
national  and  Community  financial  support  can  be  given  against  certain  commitments 
by the group. 

(12) 

(13) 

(14) 

In  order  to  give  producer  organisations  greater  responsibility  for  their  financial 
decisions in particular and to gear the public resources assigned to them towards future 
requirements,  terms  should  be  set  for  the  use  of  these  resources.  Joint  financing  of 
operational  funds  set  up  by  producer  organisations  is  an  appropriate  solution. 
Additional  scope  for  financing  should  be  permitted  in  particular  cases.  In  order  to 
control  Community  expenditure,  there  should  be  a  cap  on  assistance  granted  to 
producer organisations that establish operational funds. 

In  regions  where  the  organisation  of  production  is  weak,  the  grant  of  additional, 
national,  financial  contributions  should  be  allowed.  In  the  case  of  Member  States 
which  are  at  a  particular  disadvantage  with  regard  to  structures,  those  contributions 
should be reimbursable by the Community. 

In  order  to  simplify  and  reduce  the  cost  of  the  scheme  it  could  be  helpful  to  align, 
where  possible,  the  procedures  and  rules  for  the  eligibility  of  expenditure  under 
operational funds with those of rural development programmes by permitting Member 
States to establish a national strategy for operational programs. 

(15) 

In order to further boost the impact of producer organisations and associations thereof 
and  ensure  the  market  as  much  stability  as  is  desirable,  Member  States  should  be 
allowed  on  certain  conditions  to  extend  to  non-member  producers  in  their  region  the 

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rules, particularly on production, marketing and environmental protection, adopted for 
its members by the organisation or association for the region concerned. Where proper 
justification  is  given,  certain  costs  arising  from  this  extension  of  the  rules  should  be 
chargeable  to  the  producers  concerned  since  they  will  benefit  from  the  extension. 
However,  organic  producers  should  not  be  subject  to  this  extension  of  rules  without 
their consent. 

(16)  A number of heterogeneous aid schemes for certain fruit and vegetables have been set 
out  in  Regulations  (EC)  No 2200/96,  (EC)  No 2201/96  and  (EC)  No 2202/96.  The 
number and variety of those schemes have made them complex to administer. Whilst 
they have been targeted at some specific fruits and vegetables, they have not been able 
to fully take into account regional conditions of production, and have not covered all 
fruit and vegetables. It is therefore appropriate to seek a different tool for supporting 
fruit and vegetable producers. 

(17)  Furthermore,  the  aid  schemes  for  fruit  and  vegetables  were  not  fully  integrated  into 
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  farmers14.  This  had  led  to  certain  complexities  and 
rigidities in the administration of that scheme. 

(18) 

In  the  interests  of  a  more  targeted  but  flexible  system  of  support  for  the  fruit  and 
vegetables  sector  and  in  the  interests  of  simplification,  it  is  therefore  appropriate  to 
abolish the existing aid schemes and include fruit and vegetables fully into the scheme 
established  by  Regulation  (EC)  No 1782/2003.  To  this  end  it  is  necessary  to  provide 
that  farmers  who  produced  fruit  and  vegetables  in  the  reference  period  should  be 
eligible  for  the  single  payment  scheme.  Provision  should  also  be  made  for  the 
establishment by Member States of reference amounts and eligible hectares under the 
single payment scheme on the basis of a representative period appropriate to the market 
of each fruit and vegetable product and of appropriate objective and non-discriminatory 
criteria.  Areas  planted  with  fruit  and  vegetables,  including  permanent  fruits  and 
vegetables should be eligible to the single payment scheme. National ceilings should be 
amended  appropriately.  Provision  should  also  be  made  for  the  Commission  to  adopt 
detailed rules and any necessary transitional measures. 

(19)  The production of fruit and vegetables is unpredictable and the products are perishable. 
Surplus on the market, even if it is not too great, can strongly disturb the market. Some 
schemes  for  market  withdrawals  have  been  operated  but  have  proved  somewhat 
complex  to  administer.  Some  further  measures  for  crisis  management  should  be 
introduced, in a manner as easy to apply as possible. Integration of all such measures 
into the operational programmes of producer organisations appears the best approach in 
these  circumstances,  and  should  also  provide  for  increased  attractiveness  of  producer 
organisations for producers. 

(20)  The integration of potatoes into the scheme set out in Regulation (EC) No 1782/2003 
implies  that,  in  order  to  safeguard  the  proper  working  of  the  single  market  based  on 
common prices, the provisions of the Treaty governing State aid should also apply to 
the potatoes. 

14 

OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 1405/2006 
(OJ L 265, 26.9.2006, p. 1). 

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(21)  Council  Regulation  (EC)  No  2826/2000  of  19  December  2000  on  information  and 
promotion  actions  for  agricultural  products  on  the  internal  market15  provides  for  a 
Community  contribution  to  certain  promotion  actions  of  up  to  50%.  In  order  to 
promote  the  consumption  of  fruit  and  vegetables  amongst  young  people,  that 
percentage should be increased for promotion of fruit and vegetables targeted towards 
children under 18. 

(22) 

Interbranch  organisations  set  up  on  the  initiative  of  individual  or  already  grouped 
operators can, if they account for a significant proportion of the members of the various 
occupational categories of the fruit and vegetable sector, contribute to behaviour taking 
closer  account  of  market  realities  and  facilitate  a  commercial  approach  that  will 
improve  production  reporting,  that  is  to  say  the  organisation  of  production,  product 
presentation and marketing. Since the work of these organisations is able to contribute 
in general to attaining the objectives of Article 33 of the Treaty, and in particular those 
of this Regulation, it should, once the relevant forms of action are defined, be possible 
to  grant  specific  recognition  to  those  organisations  which  provide  proof  of  sufficient 
representativeness  and  carry  out  practical  action  in  regard  to  those  objectives.  The 
provisions  on  extending  the  rules  adopted  by  producer  organisations  and  their 
associations and on sharing the costs resulting from such extension should, given the 
similarity of the objectives pursued, also apply to interbranch organisations. 

(23)  The  creation  of  a  single  Community  market  involves  the  introduction  of  a  trading 
system at the external borders of the Community. That trading system should include 
import  duties  and  should,  in  principle,  stabilise  the  Community  market.  The  trading 
system  should  be  based  on  the  undertakings  accepted  under  the  Uruguay  Round  of 
multilateral trade negotiations. 

(24)  The application of the entry price system for fruit and vegetables requires the adoption 

of specific provisions. 

(25)  Monitoring  the  volume  in  trade  in  agricultural  products  with  third  countries  may,  in 
respect  of  certain  products,  require  the  introduction  of  licensing  systems  for  imports 
and exports including the lodging of a security to ensure that the transactions for which 
such licences are issued are actually carried out. The Commission should, therefore, be 
empowered to introduce licensing systems in respect of such products. 

(26) 

(27) 

In  order  to  prevent  or  counteract  adverse  effects  on  the  Community  market  which 
could  result  from  imports  of  certain  agricultural  products,  imports  of  such  products 
should be subject to payment of an additional duty, if certain conditions are fulfilled. 

It is appropriate, under certain conditions, to confer on the Commission the power to 
open and administer tariff quotas resulting from international agreements concluded in 
accordance with the Treaty or from other acts of the Council. 

(28)  The  customs  duty  system  makes  it  possible  to  dispense  with  all  other  protective 
measures  at  the  external  frontiers  of  the  Community.  The  internal  market  and  duty 
mechanism could, in exceptional circumstances, prove to be inadequate. In such cases, 
in order not to leave the Community market without defence against disturbances that 

15 

OJ  L  328,  23.12.2000,  p. 2.  Regulation  as  amended  by  Regulation  (EC)  No 2060/2004  (OJ L 357, 
2.12.2004, p. 3). 

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12 

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might  ensue,  the  Community  should  be  able  to  take  all  necessary  measures  without 
delay.  Such  measures  should  comply  with  the  international  commitments  of  the 
Community. 

(29)  To ensure that those trading arrangements can function properly, provision should be 
made  for  regulating  or,  when  the  situation  on  the  market  so  requires,  prohibiting  the 
use of inward or outward processing arrangements. 

(30)  Since  the  common  markets  in  agricultural  products  are  continuously  evolving,  the 
Member  States  and  the  Commission  should  keep  each  other  informed  of  relevant 
developments. 

(31)  The  fruit  and  vegetables  regime  provides  for  certain  obligations  to  be  respected.  To 
guarantee  compliance  with  these  obligations,  there  is  a  need  for  controls  and  the 
application  of  penalties  in  case  of  non-compliance  with  such  obligations.  The  power 
should,  therefore,  be  conferred  on  the  Commission  to  set  up  the  corresponding  rules 
including  those  concerning  the  recovery  of  undue  payments  and  on  the  reporting 
obligations  of  the  Member  States.  The  special  corps  of  inspectors  in  the  fruit  and 
vegetables  sector  will  no  longer  be  necessary  under  the  new  regime  and  may  be 
abolished. 

(32)  Regulations  (EC)  No 2200/96,  (EC)  No 2201/96,  (EC)  No 2826/2000  and  (EC) 

No 1782/2003 should be amended accordingly. 

(33)  The  aid  scheme  established  by  Regulation  (EC)  No 2202/96  is  to  be  abolished.  That 
Regulation thus will no longer have any purpose and should therefore be repealed. 

(34)  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 Commission16. In 
the  interests  of  simplification,  the  separate  committees  for  fresh  fruit  and  vegetables 
and  processed  fruit  and  vegetables  should  be  abolished  and  replaced  with  a  single 
committee  for  fruit  and  vegetables  to  be  set  up  in  Council  Regulation  (EC) 
No 2200/96. 

(35)  The  change-over  from  the  existing  arrangements  to  those  provided  for  by  this 
Regulation could give rise to difficulties which are not dealt with in this Regulation. In 
order  to  deal  with  such  difficulties,  the  Commission  should  be  enabled  to  adopt 
transitional measures. 

(36)  This  Regulation  should,  as  a  general  rule,  apply  from  1  January  2008.  However  in 
order  to  avoid  the  interruption  of  the  aid  schemes  for  processed  fruit  and  vegetable 
products and citrus fruits part-way through a marketing year, such aid schemes should 
be allowed to run until the end of the 2007/2008 marketing year, 

16 

OJ L 184,  17.7.1999,  p. 23.  Decision  as  amended  by  Decision  2006/512/EC  (OJ L 200,  22.7.2006, 
p. 11). 

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HAS ADOPTED THIS REGULATION: 

TITLE I 
Introductory provisions 

Article 1 
Scope 

This  Regulation  lays  down  specific  rules  applying  to  the  products  listed  in  Article 1(2)  of 
Regulation (EC) No 2200/96 and in Article 1(2) of Regulation (EC) No 2201/96. 

However Titles III and IV of this Regulation shall only apply in respect of the products listed 
in Article 1(2) of Regulation (EC) No 2200/96. 

Article 39 shall apply to potatoes, fresh or chilled of CN code 0701. 

TITLE II 
Classification of products 

Article 2 
Marketing standards 

1. 

Provision may be made by the Commission for marketing standards for one or more 
of  the  products  listed  in  Article 1(2)  of  Regulation  (EC)  No 2200/96  and  in 
Article 1(2) of Regulation (EC) No 2201/96. 

2. 

The standards referred to in paragraph 1: 

(a) 

shall  be  established  taking  into  account,  in  particular,  the  specificities  of  the 
products concerned, the need to ensure the conditions for a smooth disposal of 
those products on the market and the interest of consumers to receive adequate 
and transparent product information; 

(b)  may  in  particular  relate  to  quality,  grading,  weight,  sizing,  packaging, 

wrapping, storage, transport, presentation, marketing and labelling. 

3. 

Save  as  otherwise  provided  for  by  the  Commission  in  accordance  with  the  criteria 
referred  to  in  point (a)  of  paragraph 2,  the  products  for  which  marketing  standards 
have  been  laid  down  may  be  marketed  in  the  Community  only  in  accordance  with 
such standards.  

Without  prejudice  to  any  specific  provisions  which  may  be  adopted  by  the 
Commission in accordance with Article 38, Member States shall check whether those 
products conform to those standards and shall apply penalties as appropriate. 

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TITLE III 
Producer organisations 

Chapter I 
Definition and recognition 

Article 3 
Definition 

1. 

For the purposes of this Regulation, 'producer organisation' means any legal entity or 
clearly defined part of a legal entity which complies with the following requirements: 

(a) 

it  is  formed  on  the  initiative  of  farmers  within  the  meaning  of  Article  2(a)  of 
Regulation (EC) No 1782/2003, who are growers of one or more products listed 
in Article 1(2) of Regulation (EC) No 2200/96; 

(b) 

it has in particular the objective of: 

(i) 

ensuring that production is planned and adjusted to demand, particularly 
in terms of quality and quantity; 

(ii)  promoting  concentration  of  supply  and  the  placing  on  the  market  of  the 

products produced by its members; 

(iii)  reducing production costs and stabilising producer prices; 

(iv)  promoting  the  use  of  cultivation  practices,  production  techniques  and 
environmentally  sound  waste  management  practices  in  particular  to 
protect the quality of water, soil and landscape and preserve or encourage 
biodiversity; 

(c) 

its  rules  of  association  provides  for  specific  requirements  as  laid  down  in 
paragraph 2; 

(d) 

it has been recognised by the Member State concerned pursuant to Article 4. 

2. 

The  rules  of  association  of  a  producer  organisation  shall  require  its  producer 
members, in particular, to: 

(a) 

apply  the  rules  adopted  by  the  producer  organisation  relating  to  production 
reporting, production, marketing and protection of the environment; 

(b)  belong  to  only  one  producer  organisation  in  respect  of  a  given  holding's 
production  of  any  given  product  listed  in  Article  1(2)  of  Regulation  (EC) 
No 2200/96; 

(c)  market their entire production concerned through the producer organisation. 

(d)  provide  the  information  requested  by  the  producer  organisation  for  statistical 
purposes,  in  particular  on  growing  areas,  quantities  cropped,  yields  and  direct 
sales; 

EN 

15 

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(e) 

pay  the  financial  contributions  provided  for  in  its  rules  of  association  for  the 
establishment  and  replenishment  of  the  operational  fund  provided  for  in 
Article 7. 

Notwithstanding point (c) of the first subparagraph, in compliance with the terms and 
conditions laid down by the producer organisation, the producer members may: 

(a) 

sell  no  more  than  a  fixed  percentage  of  their  production  directly  on  their 
holdings or outside their holdings to consumers for their personal needs, such 
percentages being fixed by Member States at a level of at least 10%; 

(b)  where  the  producer  organisation  so  authorises,  market  themselves  or  through 
another producer organisation designated by their own organisation, quantities 
of products which are marginal in relation to the volumes marketable by their 
organisation; 

(c)  where the producer organisation so authorises, market through another producer 
organisation  designated  by  their  own  organisation  products  which,  because  of 
their  characteristics,  are  not  normally  covered  by  the  commercial  activities  of 
the producer organisation concerned. 

The rules of association of a producer organisation shall provide for:  

(a) 

(b) 

(c) 

procedures for determining, adopting and amending the rules referred to in the 
first subparagraph; 

the  imposition  on  members  of  financial  contributions  needed  to  finance  the 
producer organisation; 

rules  enabling  the  producer  members  democratically  to  scrutinise  their 
organisation and its decisions; 

(d)  penalties  for  infringement  of  obligations  under  the  rules  of  association, 
particularly non-payment of financial contributions, or of the rules laid down by 
the producer organisation; 

(e) 

(f) 

rules  on  the  admission  of  new  members,  particularly  a  minimum  membership 
period;  

the  accounting  and  budgetary  rules  necessary  for  the  operation  of  the 
organisation. 

Article 4 
Recognition 

1. 

Member  States  shall  recognise  as  producer  organisations  for  the  purposes  of  this 
Regulation all producer groups applying for such recognition, on condition that: 

(a) 

they  meet  the  requirements  laid  down  in  Article  3  and  provide  the  relevant 
evidence,  including  proof  that  they  have  a  minimum  number  of  members  and 
cover a minimum volume of marketable production to be laid down by Member 
States; 

(b) 

there is sufficient evidence that they can carry out their activities properly, both 
over time and in terms of effectiveness and concentration of supply; 

EN 

16 

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(c) 

(d) 

they  effectively  enable  their  members  to  obtain  technical  assistance  in  using 
environmentally-sound cultivation practices; 

they effectively provide their members, if necessary, with the technical means 
for  storing,  packaging  and  marketing  their  produce  and  ensure  proper 
commercial and budgetary management of their activities. 

2. 

Member States may also recognise as producer organisations for the purposes of this 
Regulation  producer  organisations  which  do  not  comply  with  the  requirement  laid 
down in Article 3(1)(a) provided that: 

(a) 

they existed before 21 November 1996; 

(b) 

they  were  recognised  under  Council  Regulation  (EEC)  No 1035/7217  before 
1 January 1997. 

The other requirements laid down in Article 3, except, if appropriate, paragraph 1(c) 
thereof,  and  in  paragraph 1  of  this  Article  shall  apply  to  producer  organisations 
recognised pursuant to the first subparagraph of this paragraph. 

3. 

Member States shall: 

(a) 

(b) 

decide  whether  to  grant  recognition  to  a  producer  organisation  within  three 
months of the lodging of an application with all supporting documents; 

carry  out  checks  at  regular  intervals  to  ascertain  that  producer  organisations 
comply with this Title, impose in the event of non-compliance or irregularities 
concerning  the  provisions  of  this  Regulation  the  penalties  to  apply  to  such 
organisations and decide, where necessary, to withdraw recognition; 

(c) 

notify  the  Commission,  once  per  year,  of  every  decision  to  grant,  refuse  or 
withdraw recognition. 

Article 5 
Delegation of powers  

1. 

2. 

A Member State may permit producer organisations to delegate any of their powers to 
an association of producer organisations of which they are members provided that the 
Member  State  considers  that  the  association  is  capable  of  exercising  those  powers 
effectively. 

Producer  organisations  and  associations  of  producer  organisations  to  which  powers 
have been delegated pursuant to paragraph 1 may not hold a dominant position on a 
given market unless necessary in pursuance of the goals of Article 33 of the Treaty. 

17 

OJ L 118, 20.5.1972, p. 1. Regulation repealed by Regulation (EC) No 2200/96. 

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17 

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Article 6 
New Member States 

1. 

Producer organisations in Member States which acceded to the Community in 2004 
or thereafter may be allowed a transitional period of no more than five years in which 
to meet the conditions for recognition laid down in Article 4. 

In  order  to  qualify,  they  shall  present  a  phased  recognition  plan  to  the  relevant 
Member  State,  acceptance  of  which  shall  signal  the  start  of  the  five-year  period 
referred to in the first subparagraph and shall constitute a preliminary recognition. 

2. 

During  the  five  years  following  the  date  of  preliminary  recognition,  Member  States 
may grant to the producer organisations referred to in paragraph 1: 

(a) 

aid to encourage their formation and facilitate their administrative operation; 

(b) 

aid, provided either directly or through credit institutions, in the form of special 
loans to cover part of the investments required to attain recognition and set out 
in the recognition plan referred to in the second subparagraph of paragraph 1. 

3. 

Before granting preliminary recognition, Member States shall inform the Commission 
of their intentions and the financial implications thereof. 

Chapter II 
Operational funds and operational programmes 

Article 7 
Operational funds  

1. 

Producer organisations may set up an operational fund. The fund shall be maintained 
by: 

(a) 

financial contributions of members or the producer organisation itself; 

(b)  Community 

financial  assistance  which  may  be  granted 

to  producer 

organisations setting up an operational fund. 

2. 

3. 

Operational  funds  shall  be  used  to  finance  operational  programmes  approved  by 
Member States in accordance with Article 12. 

The  Commission  shall  present  a  report  to  the  European  Parliament  and  Council  by 
31 December  2013  at  the  latest  on  the  implementation  of  this  Title  as  regards 
producer organisations, operational funds and operational programmes. 

Article 8 
Objectives of operational programmes 

1. 

Operational  programmes  shall  have  one  or  more  of  the  objectives  referred  to  in 
Article 3(1)(b) or of the following objectives: 

(a) 

improvement of product quality, 

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18 

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(b)  boosting products' commercial value, 

(c) 

promotion of the products targeted at consumers, 

(d) 

creation of organic product lines, 

(e) 

promotion  of  integrated  production  or  other  methods  of  production  respecting 
the environment, 

(f) 

crisis management. 

Crisis  management  shall  be  related  to  avoiding  and  dealing  with  crises  on  the  fruit 
and vegetable markets and shall cover in this context: 

(a)  market withdrawal, 

(b)  green harvesting or non-harvesting of fruit and vegetables, 

(c) 

promotion and communication, 

(d) 

training measures, 

(e) 

harvest insurance, 

(f) 

support for the administrative costs of setting up mutual funds. 

Crisis  management  measures  may  not  comprise  more  than  one-third  of  the 
expenditure under the operational programme. 

2. 

Operational  programmes  shall  include  action  to  develop  the  use  of  environmentally 
sound techniques by the producer members with regard to both cultivation practices 
and the management of waste materials.  

For the purposes of the first subparagraph, "environmentally sound techniques" shall 
mean, in particular, techniques which help to achieve the following aims:  

(a) 

the use of farming practices which reduce the polluting effects of agriculture;  

(b) 

an environmentally favourable extensification of crop farming;  

(c)  ways  of  using  agricultural  land  which  are  compatible  with  protection  and 
improvement  of  the  environment,  the  countryside,  the  landscape,  natural 
resources, the soil and genetic diversity. 

3. 

4. 

Investments  which  increase  environmental  pressure  shall  only  be  permitted  in 
situations where effective safeguards to protect the environment from these pressures 
are in place. 

Operational programmes shall include action to promote the consumption of fruit and 
vegetables targeted at young consumers at local, regional or national level. 

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1. 

2. 

Article 9 
Community financial assistance 

The  Community  financial  assistance  shall  be  equal  to  the  amount  of  the  financial 
contributions of member producers as actually paid but limited to 50% of the actual 
expenditure incurred. 

The  Community  financial  assistance  shall  be  capped  at  4,1%  of  the  value  of  the 
marketed production of each producer organisation. 

The  percentage  provided  for  in  the  first  subparagraph  of  paragraph  1  shall  be  60% 
where an operational programme or part of an operational programme meets at least 
one of the following conditions: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

it  is  submitted  by  several  Community  producer  organisations  operating  in 
different Member States on transnational schemes; 

it  is  submitted  by  one  or  more  producer  organisations  engaged  in  schemes 
operated on an interbranch basis; 

it covers solely specific support for the production of organic products covered 
by Council Regulation (EC) No 2092/9118; 

it is submitted by a producer organisation in one of the Member States which 
acceded to the Community in 2004 or thereafter for measures running no later 
than the end of 2013; 

it is the first to be submitted by a recognised producer organisation which has 
merged  with  another  recognised  producer  organisation  or  an  association  of 
recognised producer organisations, provided that none of the member producers 
concerned  were  previously  members  of  a  producer  organisation  which 
benefited from this subparagraph; 

it  is  submitted  by  producer  organisations  in  Member  States  where  producer 
organisations market less than 20% of fruit and vegetables production; 

it is submitted by a producer organisation in one of the outermost regions of the 
Community. 

3. 

The percentage provided for in the first subparagraph of paragraph 1 shall be 100% in 
the case of market withdrawals of fruit and vegetables which shall not exceed 5% of 
the quantity of the marketed production of each producer organisation and which are 
disposed of by way of: 

(a) 

(b) 

free  distribution  to  charitable  organisations  and  foundations,  approved  to  that 
effect by the Member States, for use in their activities to assist persons whose 
right  to  public  assistance  is  recognised  in  national  law,  in  particular  because 
they lack the necessary means of subsistence;  

free distribution to penal institutions, schools and public education institutions 
and to children's holiday camps as well as to hospitals and old people's homes 
designated by the Member States, which shall take all necessary steps to ensure 

18 

OJ L 198, 22.7.1991, p. 1. 

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20 

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1. 

2. 

1. 

that  the  quantities  thus  distributed  are  additional  to  the  quantities  normally 
bought in by such establishments. 

Article 10 
National financial assistance 

In  regions  of  the  Community  where  the  degree  of  organisation  of  producers  is 
particularly low, Member States may be authorised, on a duly substantiated request, 
to  pay  producer  organisations  national  financial  assistance  equal  to  a  maximum  of 
half the financial contributions of producers. This assistance shall be additional to the 
operational fund. 

In regions of Member States where producer organisations market less than 15% of 
the  fruit  and  vegetable  production  and  whose  fruit  and  vegetable  production 
represents at least 15% of their total agricultural output, the assistance referred to in 
the first subparagraph may be partly reimbursed by the Community at the request of 
the Member State concerned. 

Articles 87, 88 and 89 of the Treaty shall not apply to the national financial assistance 
which is authorised by the Commission pursuant to paragraph 1. 

Article 11 
Planning of operational programmes 

Member  States  shall  establish  a  national  framework  for  drawing  up  the  general 
conditions  relating  to  the  measures  referred  to  in  the  first  subparagraph  of 
Article 8(2). This framework shall provide in particular that at least 20% of the total 
expenditure under an operational programme shall relate to those measures.  

Member States shall submit their proposed framework to the Commission which may 
request modifications within three months if it finds that the proposal does not enable 
the objectives set out in Article 174 of the Treaty and in the Community programme 
of policy and action in relation to the environment and sustainable development to be 
attained.  Individual  investments  supported  by  operational  programmes  shall  also 
respect those objectives. 

2. 

Member  States  shall  establish  a  national  strategy  for  sustainable  operational 
programmes in the fruit and vegetable market. Such a strategy should provide for the 
following elements: 

(a) 

an ex-ante analysis; 

(b) 

the  objectives  of  operational  programmes  and  instruments,  performance 
indicators; 

(c) 

assessment of operational programmes; 

(d) 

reporting obligations for producer organisations. 

The strategy should also integrate the national framework referred to in paragraph 1. 

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Article 12 
Approval of operational programmes 

1. 

2. 

Draft  operational  programmes  shall  be  submitted  to  the  competent  national 
authorities, who shall approve or reject them or request their modification in line with 
the provisions of this Chapter. 

By the end of each year at the latest, producer organisations shall communicate to the 
Member  State  the  estimated  amount  of  the  operational  fund  for  the  next  year  and 
shall  submit  appropriate  reasons  based  on  operational  programme  estimates, 
expenditure for the current year and possible for previous years and, if necessary, on 
estimated production  quantities  for  the next year. The Member State shall, before 1 
January  of  the  following  year,  notify  the  producer  organisation  of  the  estimated 
amount of Community financial assistance in line with the limits set out in Article 9. 

Community financial assistance payments shall be made on the basis of expenditure 
incurred  for  the  schemes  covered  by  the  operational  programme.  Advances  may  be 
made  in  respect  of  the  same  schemes  subject  to  the  provision  of  a  guarantee  or 
security. 

At  the  beginning  of  each  year  and  by  31  January  at  the  latest,  the  producer 
organisation shall notify the Member State of the final amount of expenditure for the 
previous  year,  accompanied  by  the  necessary  supporting  documents,  so  that  it  may 
receive the balance of the Community financial assistance. 

3. 

Operational programmes and their financing by producers and producer organisations 
on  the  one  hand  and  by  Community  funds  on  the  other  shall  have  a  minimum 
duration of three and a maximum duration of five years. 

Chapter III 
Extension of rules to producers of an economic area 

Article 13 
Extension of rules 

1. 

In cases where a producer organisation which operates in a specific economic area is 
considered,  in  respect  of  a  specific  product,  to  be  representative  of  production  and 
producers  in  that  area,  the  Member  State  concerned  may,  at  the  request  of  the 
producer organisation, make the following rules binding on producers established in 
the area who do not belong to the producer organisation: 

(a) 

the rules referred to in point (a) of the first subparagraph of Article 3(2), 

(b) 

the rules adopted by the producer organisation relating to market withdrawals. 

The first subparagraph shall apply on condition that those rules: 

(a) 

have been in force for at least one marketing year, 

(b) 

are included in the exhaustive list in Annex I, 

(c) 

are made binding for no more than three marketing years. 

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2. 

3. 

For the purposes of this Chapter, "economic area" means a geographical zone made 
up  of  adjoining  or  neighbouring  production  regions  in  which  production  and 
marketing conditions are homogeneous. 

Member States shall notify a list of economic areas to the Commission. 

Within one month of notification, the Commission shall approve the list or shall, after 
consultation with the Member State concerned, decide on the amendments which the 
latter  must  make  to  it.  The  Commission  shall  make  the  approved  list  publicly 
available by the methods it considers appropriate. 

A  producer  organisation  shall  be  deemed  representative  within  the  meaning  of 
paragraph  1  where  its  members  account  for  at  least  50%  of  the  producers  in  the 
economic area in which it operates and it covers at least 60% of the production of that 
area. 

4. 

The rules which are made binding on all producers in a specific economic area: 

5. 

1. 

2. 

(a)  must  not  cause  any  harm  to  other  producers  in  the  Member  State  or  in  the 

Community; 

(b) 

shall  not  apply,  unless  they  expressly  cover  them,  to  products  delivered  for 
processing under a contract signed before the beginning of the marketing year, 
with the exception of the rules on production reporting referred to in point (a) of 
the first subparagraph of Article 3(2); 

(c)  must not clash with Community and national rules in force. 

Rules  may  not  be  made  binding  on  producers  of  organic  products  covered  by 
Regulation  (EC)  No  2092/91  unless  such  a  measure  has  been  agreed  to  by  at  least 
50%  of  such  producers  in  the  economic  area  in  which  the  producer  organisation 
operates and that organisation covers at least 60% of such production of that area. 

Article 14 
Notification and repeal 

Member  States  shall  notify  the  Commission  forthwith  of  the  rules  which  they  have 
made binding on all producers in a specific economic area pursuant to Article 13(1). 
The  Commission  shall  make  these  rules  publicly  available  by  the  methods  it 
considers appropriate. 

The  Commission  shall  decide  that  a  Member  State  must  repeal  an  extension  of  the 
rules decided on by that Member State: 

(a) 

(b) 

if it finds that the extension in question to other producers excludes competition 
in a substantial part of the internal market or jeopardises free trade, or that the 
objectives of Article 33 of the Treaty are endangered; 

if it finds that Article 81(1) of the Treaty applies to the agreement, decision or 
concerted practice which it has been decided to extend to other producers. The 
Commission's  decision  with  regard  to  that  agreement,  decision  or  concerted 
practice shall apply only from the date of such a finding; 

(c)  where it finds after checks that this Chapter has not been complied with. 

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Article 15 
Financial contributions of non-member producers 

Where  Article  13(1)  is  applied,  the  Member  State  concerned  may  decide,  on  scrutiny  of 
evidence presented, that non-member producers shall be liable to the organisation for the part 
of the financial contributions paid by the producer members, insofar as these are used to cover: 

(a) 

(b) 

administrative costs resulting from applying the rules referred to in Article 13(1); 

the  cost  of  research,  market  studies  and  sales  promotion  undertaken  by  the 
organisation or association and benefiting all producers in the area. 

TITLE IV 
Interbranch organisations and agreements  

Chapter I 
Definition and recognition 

Article 16 
Definition 

For the purposes of this Regulation, "interbranch organisations" means legal entities which: 

(a) 

(b) 

(c) 

are made up of representatives of economic activities linked to the production of or 
trade  in  or  processing  of  the  products  listed  in  Article  1(2)  of  Regulation  (EC) 
No 2200/96; 

are  established  at  the  initiative  of  all  or  some  of  the  organisations  or  associations 
which constitute them; 

carry out several of the following measures in one or more regions of the Community, 
taking account of the interests of consumers: 

(i) 

improving knowledge and the transparency of production and the market, 

(ii)  helping  to  coordinate  better  the  way  fruit  and  vegetables  are  placed  on  the 

market, in particular by means of research and market studies, 

(iii)  drawing up standard forms of contract compatible with Community rules, 

(iv)  exploiting more fully the potential of the fruit and vegetables produced, 

(v)  providing  the  information  and  carrying  out  the  research  necessary  to  adjust 
production towards products more suited to market requirements and consumer 
tastes  and  expectations,  in  particular  with  regard  to  product  quality  and 
protection of the environment, 

(vi)  seeking ways of restricting the use of plant-health products and other inputs and 

ensuring product quality and soil and water conservation, 

(vii)  developing methods and instruments for improving product quality, 

(viii)  exploiting  the  potential  of  and  protecting  organic  farming  as  well  as 

designations of origin, quality labels and geographical indications, 

EN 

24 

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(ix)  promoting  integrated  production  or  other  environmentally  sound  production 

methods, 

(x) 

laying down rules, as regards the production and marketing rules referred to in 
points 2 and 3 of Annex I, which are stricter than Community or national rules; 

(d) 

have  been  recognised  by  the  Member  State  concerned  on  the  terms  set  out  in 
Article 17. 

Article 17 
Recognition 

1. 

If  warranted  by  the  Member  State's  structures,  Member  States  may  recognise  as 
interbranch  organisations  within  the  meaning  of  this  Regulation  all  organisations 
established  on  their  territory  which  make  an  appropriate  application,  on  condition 
that: 

(a) 

they carry out their activity in one or more regions in that territory; 

(b) 

they represent a significant share of the production of or trade in or processing 
of fruit and vegetables and products processed from fruit and vegetables in the 
region or regions in question and, where more than one region is involved, they 
can demonstrate a minimum level of representativeness in each region for each 
of the branches that they group; 

(c) 

they carry out several of the measures referred to in Article 16(c); 

(d) 

they are not themselves engaged in the production or processing or marketing 
of fruit and vegetables or products processed from fruit and vegetables; 

(e) 

they do not carry out any of the activities referred to in Article 18(3). 

2. 

Before  granting  recognition  Member  States  shall  notify  the  Commission  of  the 
interbranch  organisations  which  have  applied  for  recognition,  providing  all  relevant 
information  about  their  representativeness  and  their  various  activities,  together  with 
all other information needed for an assessment. 

The  Commission  may  object  to  recognition  within  a  time  limit  of  two  months  after 
notification. 

3. 

Member States shall: 

(a) 

(b) 

decide  whether  to  grant  recognition  within  three  months  of  the  lodging  of  an 
application with all relevant supporting documents; 

carry out checks at regular intervals to ascertain that interbranch organisations 
comply  with  the  terms  and  conditions  for  recognition,  impose  in  the  event  of 
non-compliance  or  irregularities  concerning  the  provisions  of  this  Regulation, 
the  penalties  to  apply  to  such  organisations  and,  if  necessary,  decide  to 
withdraw their recognition; 

(c)  withdraw recognition if: 

(i) 

the terms and conditions for recognition laid down in this Chapter are no 
longer met; 

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25 

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(ii) 

the interbranch organisation contravenes one of the prohibitions imposed 
in  Article  18(3),  without  prejudice  to  any  other  penalties  otherwise 
incurred pursuant to national law; 

(iii) 

the  interbranch  organisation  fails  to  comply  with  the  notification 
obligation referred to in Article 18(2); 

(d)  notify the Commission, within two months, of any decision to grant, refuse or 

withdraw recognition. 

The terms and conditions on which and the frequency with which the Member States 
are to report to the Commission on the activities of interbranch organisations shall be 
drawn up in accordance with the procedure referred to in Article 46(2) of Regulation 
(EC) No 2200/96. 

The  Commission  may,  as  a  result  of  checks,  ask  a  Member  State  to  withdraw 
recognition. 

Recognition  shall  constitute  an  authorisation  to  carry  out  the  measures  listed  in 
Article 16(c), consistent with the terms of this Regulation. 

The  Commission  shall  make  publicly  available,  by  the  methods  it  considers 
appropriate,  a  list  of  the  interbranch  organisations  recognised,  indicating  the 
economic sphere or the area of their activities and the activities carried out within the 
meaning  of  Article  19.  Withdrawals  of  recognition  shall  also  be  made  publicly 
available. 

Chapter II 
Competition rules 

Article 18 
Application of competition rules 

Notwithstanding Article 1 of Council Regulation (EC) No 1184/200619, Article 81(1) 
of the Treaty shall not apply to the agreements, decisions and concerted practices of 
recognised interbranch organisations intended to implement the measures referred to 
in Article 16(c) of this Regulation. 

4. 

5. 

6. 

1. 

2. 

Paragraph 1 shall apply only provided that: 

(a) 

the  agreements,  decisions  and  concerted  practices  have  been  notified  to  the 
Commission; 

(b)  within two months of receipt of all the details required the Commission has not 
found  that  the  agreements,  decisions  or  concerted  practices  are  incompatible 
with Community rules. 

The agreements, decisions and concerted practices may not be implemented until the 
period indicated point (b) of the first subparagraph has elapsed. 

19 

OJ L 214, 4.8.2006, p. 7. 

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26 

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3. 

The  following  agreements,  decisions  and  concerted  practices  shall  in  any  case  be 
declared incompatible with Community rules: 

(a) 

(b) 

(c) 

(d) 

(e) 

agreements,  decisions  and  concerted  practices  which  may  lead  to  the 
partitioning of markets in any form within the Community; 

agreements,  decisions  and  concerted  practices  which  may  affect  the  sound 
operation of the market organisation; 

agreements, decisions and concerted practices which may create distortions of 
competition which are not essential in achieving the objectives of the common 
agricultural policy pursued by the interbranch organisation measure; 

agreements, decisions and concerted practices which entail the fixing of prices, 
without  prejudice  to  measures  taken  by  interbranch  organisations  in  the 
application of specific provisions of Community rules; 

agreements, decisions and concerted practices which may create discrimination 
or eliminate competition in respect of a substantial proportion of the products in 
question. 

If,  following  expiry  of  the  two-month  period  referred  to  in  point  (b)  of  the  first 
subparagraph of paragraph 2, the Commission finds that the conditions for applying 
paragraph 1 have not been met, it shall take a decision declaring that Article 81(1) of 
the Treaty applies to the agreement, decision or concerted practice in question. 

That Commission decision shall not apply earlier than the date of notification to the 
interbranch  organisation  concerned,  unless  that  interbranch  organisation  has  given 
incorrect information or abused the exemption provided for in paragraph 1. 

In the case of multiannual agreements, the prior notification for the first year shall be 
valid  for  the  subsequent  years  of  the  agreement.  However,  in  that  event,  the 
Commission  may,  on  its  own  initiative  or  at  the  request  of  another  Member  State, 
issue a finding of incompatibility at any time. 

Chapter III 
Extension of rules 

Article 19 
Extension of rules 

In cases where an interbranch organisation operating in a specific region or regions of 
a Member State is considered to be representative of the production of or trade in or 
processing of a given product, the Member State concerned may, at the request of the 
organisation,  make  some  of  the  agreements,  decisions or concerted  practices agreed 
on within that organisation binding for a limited period on other operators operating 
in the region or regions in question, whether individuals or groups, who do not belong 
to the organisation. 

An  interbranch  organisation  shall  be  deemed  representative  within  the  meaning  of 
paragraph 1 where it accounts for at least two thirds of the production or trade in or 
processing of the product or products concerned in the region or regions concerned of 

4. 

5. 

1. 

2. 

EN 

27 

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a  Member  State.  Where  the  application  for  extension  of  its  rules  to  other  operators 
covers  more  than  one  region,  the  interbranch  organisation  must  demonstrate  a 
minimum level of representativeness for each of the branches it groups in each of the 
regions concerned. 

3. 

The rules for which extension to other operators may be requested: 

(a)  must concern one of the following aims: 

(i) 

production and market reporting, 

(ii) 

stricter  production  rules  than  those  laid  down  in  Community  or  national 
rules, 

(iii)  drawing up of standard contracts which are compatible with Community 

rules, 

(iv)  rules on marketing, 

(v) 

rules on protecting the environment, 

(vi)  measures to promote and exploit the potential of products, 

(vii)  measures  to  protect  organic  farming  as  well  as  designations  of  origin, 

quality labels and geographical indications; 

(b)  must have been in force for at least one marketing year; 

(c)  may be made binding for no more than three marketing years; 

(d)  must  not  cause  any  harm  to  other  operators  in  the  Member  State  or  the 

Community. 

The rules referred to in point (a) (ii), (iv) and (v) of the first subparagraph must not be 
other  than  those  set  out  in  Annex I.  The  rules  referred  to  in  point (a)(ii)  shall  not 
apply to products which were produced outside the specific region or regions referred 
to in paragraph 1. 

Article 20 
Notification and repeal 

1. 

2. 

Member  States  shall  notify  the  Commission  forthwith  of  the  rules  which  they  have 
made  binding  on  all  operators  in  one  or  more  specific  regions  pursuant  to 
Article 19(1).  The  Commission  shall  make  those  rules  publicly  available  by  the 
methods it considers appropriate. 

Before  the  rules  are  made  publicly  available,  the  Commission  shall  inform  the 
Committee set up by Article 46(1) of Regulation (EC) No 2200/96 of any notification 
of the extension of interbranch agreements. 

The  Commission  shall  decide  that  a  Member  State  must  repeal  an  extension  of  the 
rules decided on by that Member State in the cases referred to in Article 14(2). 

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28 

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Article 21 
Financial contributions of non-members 

In  cases  where  rules  for  one  or  more  products  are  extended  and  where  one  or  more  of  the 
activities  referred  to  in  point  (a)  of  the  first  subparagraph  of  Article  19(3)  are  pursued  by  a 
recognised interbranch organisation and are in the general economic interest of those persons 
whose activities relate to one or more of the products concerned, the Member State which has 
granted  recognition  may  decide  that  individuals  or  groups  which  are  not  members  of  the 
interbranch organisation but which benefit from those activities shall pay the organisation all 
or part of the financial contributions paid by its members to the extent that such contributions 
are intended to cover costs directly incurred as a result of pursuing the activities in question. 

TITLE V 
Trade with third countries 

Chapter I 
General provisions 

Article 22 
General principles 

Save  as  otherwise  provided  for  in  this  Regulation  or  in  provisions  adopted  pursuant  thereto, 
the following shall be prohibited in trade with third countries: 

(a) 

(b) 

the levying of any charge having equivalent effect to a customs duty; 

the application of any quantitative restriction or measure having equivalent effect. 

Article 23 
Combined Nomenclature 

The  general  rules  for  interpreting  the  Combined  Nomenclature  and  the  special  rules  for  its 
application shall apply to the tariff classification of products covered by this Title. The tariff 
nomenclature  resulting  from  the  application  of  this  Regulation  shall  be  included  in  the 
Common Customs Tariff. 

Chapter II 
Imports 

SECTION I 
IMPORT LICENCES 

Article 24 
Optional Import Licence Systems 

The Commission may decide that imports into the Community of one or more products falling 
within the scope of this Regulation shall be subject to presentation of an import licence. 

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Article 25 
Issue of licences 

Import licences shall be issued by Member States to any applicant, irrespective of his place of 
establishment in the Community, unless a Council Regulation or an agreement concluded in 
accordance  with  Article 133  or  Article 300  of  the  Treaty  provides  otherwise,  and  without 
prejudice to measures taken for the application of Section III. 

Import licences shall be valid throughout the Community. 

Article 26 
Validity 

Article 27 
Security 

1. 

2. 

Licences  shall  be  issued  subject  to  the  lodging  of  a  security  guaranteeing  that  the 
products are imported during the term of validity of the licence.  

Except in cases of force majeure, the security shall be forfeited in whole or in part if 
the  import  is  not  carried  out,  or  is  carried  out  only  partially,  within  the  period  of 
validity of the licence. 

Article 28 
Implementing rules 

Detailed rules for the application of this Section, including the term of validity of the licences, 
shall  be  adopted  in  accordance  with  the  procedure  referred  to  in  Article 46(2)  of  Regulation 
(EC) No 2200/96. 

SECTION II 
IMPORT DUTIES AND ENTRY PRICE SYSTEM 

Article 29 
Import duties 

Save  as  otherwise  provided  for  in  this  Section,  the  rates  of  import  duty  in  the  Common 
Customs Tariff shall apply to products falling within the scope of this Regulation. 

Article 30 
Entry price system 

1. 

Should application of the common customs tariff duty rate depend on the entry price 
of the imported consignment, the veracity of this price shall be checked using a flat-
rate  import  value  calculated  by  the  Commission,  by  product  and  by  origin,  on  the 
basis  of  the  weighted  average  of  prices  for  the  product  on  Member  States' 
representative import markets or on other markets, where appropriate. 

EN 

30 

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2. 

3. 

4. 

1. 

2. 

3. 

4. 

Specific  provisions  may,  however,  be  adopted  for  verifying  the  entry  price  of 
products imported primarily for processing, in accordance with the procedure referred 
to in Article 46(2) of Regulation (EC) No 2200/96. 

Where the declared entry price of the consignment in question is higher than the flat-
rate import value, increased by a margin set in accordance with the procedure referred 
to in Article 46(2) of Regulation (EC) No 2200/96 which may not exceed the flat-rate 
value  by  more  than  10%,  the  lodging  of  a  security  equal  to  the  import  duty 
determined on the basis of the flat-rate import value shall be required. 

If the entry price of the consignment in question is not declared at the time of customs 
clearance, the common customs tariff duty rate to be applied shall depend on the flat-
rate  import  value  or  be  arrived  at  by  application  of  the  relevant  customs  legislation 
provisions  under  conditions  to  be  determined  in  accordance  with  the  procedure 
referred to in Article 46(2) of Regulation (EC) No 2200/96. 

Detailed  rules  for  the  application  of  paragraphs  1,  2  and  3  shall  be  adopted  in 
accordance  with  the  procedure  referred  to  in  Article 46(2)  of  Regulation  (EC) 
No 2200/96. 

Article 31 
Additional import duties 

An  additional  import  duty  shall  apply  to  imports  at  the  rate  of  duty  laid  down  in 
Articles 29  and  30  of  one  or  more  products  falling  within  the  scope  of  this 
Regulation,  in  order  to  prevent  or  counteract  adverse  effects  on  the  market  of  the 
Community which may result from those imports, if: 

(a) 

(b) 

the imports are made at a price below the level notified by the Community to 
the World Trade Organisation ("the trigger price"); or 

the  volume  of  imports  in  any  year  exceeds  a  certain  level  ("the  trigger 
volume").  

The trigger volume shall be based on market access opportunities defined as imports 
as a percentage of the corresponding domestic consumption during the three previous 
years. 

Additional  import  duties  shall  not  be  imposed  where  the  imports  are  unlikely  to 
disturb the Community market, or where the effects would be disproportionate to the 
intended objective. 

For the purposes of paragraph 1(a), import prices shall be determined on the basis of 
the cif import prices of the consignment under consideration.  

Cif import prices shall be checked against the representative prices for the product on 
the world market or on the Community import market for that product. 

Detailed  rules  for  the  application  of  paragraphs  1,  2  and  3  shall  be  adopted  in 
accordance  with  the  procedure  referred  to  in  Article 46(2)  of  Regulation  (EC) 
No 2200/96. Such detailed rules shall specify in particular: 

(a) 

the products to which additional import duties shall be applied; 

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31 

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(b) 

the other criteria necessary to ensure application of paragraph 1 of this Article. 

SECTION III 
IMPORT QUOTA MANAGEMENT 

Article 32 
Tariff quotas 

1. 

2. 

Tariff  quotas  for  imports  of  products  falling  within  the  scope  of  this  Regulation 
resulting from agreements concluded in accordance with Article 300 of the Treaty or 
from  any  other  act  of  the  Council  shall  be  opened  and  administered  by  the 
Commission under detailed rules adopted in accordance with the procedure referred 
to in Article 46(2) of Regulation (EC) No 2200/96. 

Tariff  quotas  shall  be  administered  in  a  manner  which  avoids  any  discrimination 
between  the  operators  concerned,  by  applying  one  of  the  following  methods  or  a 
combination of them or another appropriate method: 

(a) 

(b) 

(c) 

a method based on the chronological order of the lodging of applications ("first 
come, first served" principle); 

a  method  of  distribution  in  proportion  to  the  quantities  requested  when  the 
applications were lodged (using the "simultaneous examination method"); 

a  method  based  on  taking  traditional  trade  patterns  into  account  (using  the 
"traditional/newcomers method"). 

3. 

The  method  of  administration  adopted  shall,  where  appropriate,  give  due  weight  to 
the  supply  requirements  of  the  Community  market  and  the  need  to  safeguard  the 
equilibrium of that market. 

Article 33 
Opening of Tariff Quotas 

The Commission, in accordance with the procedure referred to in Article 46(2) of Regulation 
(EC) No 2200/96, shall provide for the annual tariff quotas, if necessary suitably phased over 
the year and shall determine the administrative method to be used. 

Detailed rules for the implementation of this Section shall be adopted in accordance with the 
same procedure, in particular on: 

(a) 

(b) 

(c) 

guarantees covering the nature, provenance and origin of the product; 

recognition of the document used for verifying the guarantees referred to in point (a); 

the conditions under which import licences shall be issued and their term of validity. 

EN 

32 

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SECTION IV 
SAFEGUARD AND SUSPENSION OF INWARD PROCESSING 

Article 34 
Safeguard measures 

Save as otherwise provided for pursuant to this Regulation, other Council acts or international 
agreements  concluded  in  accordance  with  Article  300  of  the  Treaty,  safeguard  measures 
against imports into the Community may be taken by the Commission in accordance with the 
provisions of Council Regulations (EC) No 519/9420 and (EC) No 3285/9421. 

Article 35 
Suspension of Inward Processing Arrangements 

To the extent necessary for the proper functioning of the common organisation of the markets, 
the  use  of  inward  processing  arrangements  for  the  products  falling  within  the  scope  of  this 
Regulation may be fully or partially prohibited in accordance with the procedure referred to in 
Article 46(2) of Regulation (EC) No 2200/96. 

Chapter III 
Exports 

SECTION I 
EXPORT LICENCES 

Article 36 
Optional Export Licence Systems 

1. 

2. 

3. 

The  Commission  may  decide  that  exports  from  the  Community  of  products  falling 
within  the  scope  of  this  Regulation  shall  be  subject  to  presentation  of  an  export 
licence. 

Articles 25, 26 and 27 shall apply mutatis mutandis. 

Detailed rules for the application of paragraphs 1 and 2, including the term of validity 
of  the  licences,  shall  be  adopted  in  accordance  with  the  procedure  referred  to  in 
Article 46(2) of Regulation (EC) No 2200/96. 

20 
21 

OJ L 67, 10.3.1994, p. 89. 
OJ L 349, 31.12.1994, p. 53. 

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33 

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SECTION II 
SUSPENSION OF OUTWARD PROCESSING 

Article 37 
Suspension of Outward Processing Arrangements 

To the extent necessary for the proper functioning of the common organisation of the market 
in  the  products  falling  within  the  scope  of  this  Regulation,  the  use  of  outward  processing 
arrangements  for  these  products  may  be  fully  or  partially  prohibited  in  accordance  with  the 
procedure referred to in Article 46(2) of Regulation (EC) No 2200/96. 

TITLE VI 
Implementing, amending and final provisions 

Chapter I 
Implementing provisions 

Article 38 
Detailed rules 

Detailed  rules  for  the  application  of  this  Regulation  may  be  adopted  in  accordance  with  the 
procedure referred to in Article 46(2) of Regulation (EC) No 2200/96. 

These rules may include, in particular: 

(a) 

detailed rules for the application of Title II which may in particular include: 

(i) 

the provision for marketing standards referred to in Article 2; 

(ii) 

rules  concerning  the  question  whether  products  for  which  standards  are  laid 
down  may  be  marketed  in  the  Community  only  in  accordance  with  those 
standards; 

(iii)  rules on derogations from the standards; 

(iv) 

rules on presentation of particulars required by the standards;  

(v) 

rules  on  the  application  of  the  standards  to  products  imported  into  the 
Community and products exported from the Community; 

(b) 

rules for the implementation of Title III, including: 

(i) 

(ii) 

the conditions under which producer organisations may delegate their powers to 
subsidiaries; 

the  degree  of,  and  detailed  rules  for,  financing  of  the  measures  referred  to  in 
Article 6 and Article 10(1); 

rules for the implementation of Title IV; 

the  rules  concerning  administrative  and  physical  controls  to  be  conducted  by  the 
Member States with regard to the respect of obligations resulting from the application 
of this Regulation; 

34 

   EN 

(c) 

(d) 

EN 

 
(e) 

(f) 

(g) 

(h) 

(i) 

a  system  for  the  application  of  penalties  where  non-compliances  with  any  of  the 
obligations resulting from the application of this Regulation are found. The penalties 
shall be graduated according to the severity, extent, permanence and repetition of the 
non-compliance found; 

the rules regarding the recovery of undue payments; 

the rules on the reporting of the controls carried out as well as their results; 

rules for the implementation of Title V, including the measures specifically referred 
to in that Title; 

measures  required  to  facilitate  the  transition  from  the  arrangements  provided  for  in 
Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 2202/96 to those laid 
down in this Regulation. 

Chapter II 
Amendments, repeal and final provisions 

Article 39 
State aids 

Articles  87,  88  and  89  of  the  Treaty  shall  apply  to  the  production  of  and  trade  in  potatoes, 
fresh or chilled of CN code 0701. 

Article 40 
Amendments to Regulation (EC) No 2200/96 

Regulation (EC) No 2200/96 is amended as follows: 

(1) 

In Article 1(2), the table is replaced by the following: 

"CN code 

Description 

0702 00 00  

Tomatoes, fresh or chilled  

0703 

0704 

0705 

0706 

0707 00 

0708 

ex 0709 

ex 0802  

Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled 

Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled 

Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled 

Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or 
chilled 

Cucumbers and gherkins, fresh or chilled 

Leguminous vegetables, shelled or unshelled, fresh or chilled 

Other  vegetables,  fresh  or  chilled,  excluding  vegetables  of  subheadings  0709 60 91, 
0709 60 95, 0709 60 99, 0709 90 31, 0709 90 39 und 0709 90 60 

Other nuts, fresh or dried, whether or not shelled or peeled, excluding areca (or betel) and 
cola nuts falling within subheading 0802 90 20  

0803 00 11 

Fresh plantains 

ex 08030090 

Dried plantains 

0804 20 10 

Figs, fresh 

EN 

35 

   EN 

 
0804 30 00 

0804 40 00 

0804 50 00 

0805 

Pineapples 

Avocados 

Guavas, mangos and mangosteens 

Citrus fruit, fresh or dried 

0806 10 10  

Fresh table grapes  

0807 

0808 

0809 

0810 

0813 50 31 
0813 50 39 

ex 0910 99 

ex 12 11 90 85 

Melons (including watermelons) and pawpaws (papayas), fresh 

Apples, pears and quinces, fresh 

Apricots, cherries, peaches (including nectarines), plums and sloes, fresh 

Other fruit, fresh 

Mixtures exclusively of dried nuts of CN codes 0801 and 0802 

Thyme, fresh or chilled 

Basil, melissa, mint, origanum vulgare (oregano / wild marjoram), rosemary, sage, fresh or 
chilled 

1212 99 30 

Locust (or carob) beans" 

(2) 

Titles I, II, III, IV, V and VI are deleted. 

(3) 

Article 44 is replaced by the following: 

"Article 44 

Member  States  and  the  Commission  shall  provide  each  other  with  any  information 
necessary  for  the  application  of  this  Regulation  and  Council  Regulation  (EC)  No 
[…]*,  for  market  monitoring  and  analysis  and  for  complying  with  the  international 
obligations concerning the products covered by those Regulations. 

* 

OJ L [This Regulation, number to be inserted by OPOCE on publication]." 

(4) 

Article 46 is replaced by the following: 

"Article 46 

1. 

The  Commission  shall  be  assisted  by  a  Management  Committee  for  Fruit  and 
Vegetables (hereinafter referred to as "the Committee"). 

2.  Where  reference  is  made  to  this  paragraph,  Articles  4  and  7  of  Decision 

1999/468/EC shall apply. 

The  period  laid  down  in  Article  4(3)  of  Decision  1999/468/EC  shall  be  set  at 
one month. 

3. 

The Committee shall adopt its Rules of Procedure." 

(5) 

Article 47 is deleted. 

EN 

36 

   EN 

 
(6) 

Article 48 is replaced by the following: 

"Article 48 

Detailed  rules  for  the  application  of  this  Regulation  shall  be  adopted  in  accordance 
with the procedure referred to in Article 46(2).  

They may include rules to determine what information is necessary for the purposes 
of  application  of  Article  44,  as  well  as  those  on  its  form,  content,  timing  and 
deadlines and on arrangements for transmitting or making available information and 
documents." 

(7) 

(8) 

Articles 49, 50 and 51 are deleted. 

Article 52 is replaced by the following: 

"Article 52 

Expenditure under this Regulation and Regulation (EC) No […] shall be deemed to 
be  intervention  measures  to  regulate  agricultural  markets  as  referred  to  in 
Article 3(1)(b) of Council Regulation (EC) No 1290/2005*. 

* 

OJ L 209, 11.8.2005, p. 1." 

(9) 

Articles 55, 56 and 57 are deleted. 

(10) 

Annexes I to V are deleted. 

Article 41 
Amendments to Regulation (EC) No 2201/96 

Regulation (EC) No 2201/96 is amended as follows: 

(1) 

(2) 

(3) 

Titles I and II are deleted. 

Articles 24 and 25 are deleted. 

Articles 26 and 27 are replaced by the following: 

"Article 26 

Detailed  rules  for  the  application  of  this  Regulation  shall  be  adopted  in  accordance 
with the procedure referred to in Article 46(2) of Regulation (EC) No 2200/96. 

They may include rules to determine what information is necessary for the purpose of 
application of Article 27, as well as those on its form, content, timing and deadlines 
and  on  arrangements  for  transmitting  or  making  available  information  and 
documents. 

Article 27 

Member  States  and  the  Commission  shall  provide  each  other  with  any  information 
necessary  for  the  application  of  this  Regulation  and  Council  Regulation  (EC) 

EN 

37 

   EN 

 
No […]*, for market monitoring and analysis and for complying with the international 
obligations concerning the products covered by those Regulations. 

* 

OJ L [This Regulation, number to be inserted by OPOCE on publication]" 

(4) 

(5) 

Articles 29 to 32 are deleted. 

Annexes I, II and III are deleted. 

Article 42 
Amendments to Regulation (EC) No 2826/2000 

Regulation (EC) No 2826/2000 is amended as follows: 

(1) 

In Article 5(3), the following subparagraph is added: 

"As regards the promotion of fresh fruits and vegetables, the main target group shall 
be children under 18 years." 

(2) 

In Article 9(2), the following subparagraph is added: 

"The  percentage  referred  to  in  the  first  subparagraph  shall  be  60%  in  the  case  of 
promotion of fruit and vegetables targeted only towards children under 18." 

Article 43 
Amendments to Regulation (EC) No 1782/2003 

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

(1) 

In Article 33(1), point (a) is replaced by the following: 

“(a) 

they  have  been  granted  a  payment  in  the  reference  period  referred  to  in 
Article 38 under at least one of the support schemes referred to in Annex VI or, 
in  the  case  of  olive  oil,  in  the  marketing  years  referred  to  in  the  second 
subparagraph of Article 37(1), or, in the case of sugar beet, cane and chicory, if 
they have benefited from market support in the representative period referred to 
in point K of Annex VII, or, in the case of bananas, if they have benefited from 
compensation  for  loss  of  income  in  the  representative  period  referred  to  in 
point L  of  Annex VII,  or  in  the  case  of  fruit  and  vegetables,  they  were 
producers of fruit and vegetable products in the representative period applied by 
Member States for those products pursuant to point M of Annex VII;” 

(2) 

In Article 37(1), the following subparagraph is added: 

“For  fruit  and  vegetables  the  reference  amount  shall  be  calculated  and  adjusted  in 
accordance with point M of Annex VII.”. 

(3) 

In Article 40, paragraph 2 is replaced by the following: 

"2. 

If  the  whole  reference  period  was  affected  by  the  case  of  force  majeure  or 
exceptional  circumstances,  the  Member  State  shall  calculate  the  reference 
amount on the basis of the 1997 to 1999 period.  

EN 

38 

   EN 

 
In  the  case  of  sugar  beet,  cane  and  chicory,  the  reference  amount  shall  be 
calculated on the basis of the closest marketing year prior to the representative 
period chosen in accordance with point K of Annex VII. In the case of bananas 
it  shall  be  calculated  on  the  basis  of  the  closest  marketing  year  prior  to  the 
representative  period  chosen  in  accordance  with  point  L  of  Annex  VII.  In  the 
case  of  fruit  and  vegetables,  it  shall  be  calculated  on  the  basis  of  the  closest 
marketing  year  prior  to  the  representative  period  chosen  in  accordance  with 
point  M  of  Annex  VII.  In  those  cases,  paragraph  1  shall  apply  mutatis 
mutandis." 

(4) 

In Article 43(2), point (a) is replaced by the following: 

"(a) 

in the case of potato starch, dried fodder, seed, olive groves, and tobacco aids 
listed in Annex VII, the number of hectares whose production has been granted 
the  aid  in  the  reference  period,  as  calculated  in  points  B,  D,  F,  H  and  I  of 
Annex VII;  

(aa)  in the case of sugar beet, cane and chicory, the number of hectares as calculated 

in accordance with point 4 of point K of Annex VII; 

(ab)  in the case of bananas, the number of hectares as calculated in accordance with 

point L of Annex VII; 

(ac) 

in  the  case  of  fruit  and  vegetables,  the  number  of  hectares  as  calculated  in 
accordance with point M of Annex VII;". 

(5) 

In Article 44(2), the second subparagraph is replaced by the following: 

"'Eligible hectare' shall also mean one of the following 

(a) 

areas planted with hops or being under a temporary resting obligation;  

(b) 

areas under olive trees; 

(c) 

areas planted with bananas; 

(d) 

areas with permanent fruit and vegetables crops.". 

(6) 

Article 51 is replaced by the following: 

"Article 51 
Agricultural use of the land 

Farmers  may  use  the  parcels  declared  in  accordance  with  Article  44(3)  for  any 
agricultural  activity  except  for  permanent  crops.  However  farmers  may  use  the 
parcels for the following permanent crops: 

(a) 

hops, 

(b)  olive trees, 

(c) 

bananas, 

(d)  permanent fruit and vegetable crops." 

(7) 

Article 60 is deleted. 

EN 

39 

   EN 

 
(8) 

In Article 63(3), the following subparagraph is added: 

"With regard to the inclusion of the fruit and vegetables payments component in the 
single payment scheme, Members  States  may decide,  by  1 April  2008,  to apply the 
derogation provided for in the first subparagraph." 

(9) 

Article 71g is deleted. 

(10) 

In Article 71k(2), the following subparagraph is added : 

"However,  with  regard  to  the  inclusion  of  the  fruit  and  vegetables  payments 
component  in  the  single  payment  scheme,  New  Members  States  may  decide,  by 
1 April 2008, or by 1 August of the year preceding the first year of application of the 
single  payment  scheme,  to  apply  the  derogation  provided  for  in  the  first 
subparagraph." 

(11) 

In Article 145, the following point is inserted after point (d)c): 

"(d)d) detailed rules relating to  the inclusion of  fruit  and vegetables  support into the 

single payment scheme.". 

(12) 

Article 155 is replaced by the following: 

"Article 155 
Other transitional rules 

Further measures required to facilitate the transition from the arrangements provided 
for in the Regulations referred to in Articles 152 and 153 and in Regulations (EEC) 
No 404/93,  (EC)  No 2200/96,  (EC)  No 2201/96,  (EC)  No 2202/96  and  (EC) 
No 1260/2001  to  those  established  by  this  Regulation,  notably  those  related  to  the 
application of Articles 4 and 5 and the Annex to Regulation (EC) No 1259/1999 and 
Article 6  of  Regulation  (EC)  No 1251/1999  and  from  the  provisions  related  to  the 
improvement plans provided for in Regulation (EEC) No 1035/72 to those referred to 
in  Articles  83  to  87  of  this  Regulation,  may  be  adopted  in  accordance  with  the 
procedure  referred  to  in  Article 144(2)  of  this  Regulation.  Regulations  and  Articles 
referred  to  in  Articles 152  and  153  shall  continue  to  apply  for  the  purpose  of  the 
establishment of the reference amounts referred to in Annex VII.". 

(13) 

The Annexes are amended in accordance with Annex II to this Regulation. 

Regulation (EC) No 2202/96 and Council Directive 2001/112/EC are repealed. 

Article 44 
Repeal 

Article 45 
Current aid schemes 

The aid schemes set out in Regulations (EC) No 2201/96 and (EC) No 2202/96 and abolished 
by this Regulation shall remain applicable in respect of each of the products concerned for the 
marketing year for that product which ends during 2008. 

EN 

40 

   EN 

 
Article 46 
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 2008. 

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

Done at Brussels,  

For the Council 
The President 

EN 

41 

   EN 

 
 
 
ANNEX I 

Exhaustive list of rules applied by producer organisations that may be extended to 
non-member producers pursuant to Article 13(1) 

1. 

Rules on production information 

(a) 

notification of growing intentions, by product and where appropriate variety; 

(b)  notification of sowings and plantings; 

(c) 

notification of total areas grown, by product and if possible variety; 

(d)  notification  of  anticipated  tonnages  and  probable  cropping  dates  by  product 

and if possible variety; 

(e) 

periodic notification of quantities cropped and available stocks, by variety; 

(f) 

information on storage capacities. 

2. 

Production rules 

(a) 

choice  of  seed 
market/industrial processing); 

to  be  used  according 

to 

intended  destination  (fresh 

(b) 

thinning in orchards. 

3. 

Marketing rules 

(a) 

specified dates for commencement of cropping, staggering of marketing; 

(b)  minimum quality and size requirements; 

(c) 

preparation, presentation, packaging and marking at first marketing stage; 

(d) 

indication of product origin. 

4. 

Rules on the protection of the environment 

(a) 

use of fertiliser and manure; 

(b)  use of plant-health products and other crop protection methods; 

(c)  maximum residue content in fruit and vegetables of plant-health products and 

fertilisers; 

(d) 

rules on disposal of by-products and used material; 

(e) 

rules concerning products withdrawn from the market. 

EN 

42 

   EN 

 
ANNEX II 

The Annexes to Regulation (EC) No 1782/2003 are amended as follows: 

(1) 

(2) 

In Annex I, the row concerning dried grapes is deleted. 

Annex II is replaced by the following: 

"ANNEX II 
National ceilings referred to in Article 12(2) 

(EUR million) 

Member State  

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

Belgium  

Denmark  

Germany  

Greece  

Spain  

France  

Ireland  

Italy  

Luxembourg  

Netherlands  

Austria  

Portugal  

Finland  

Sweden  

United Kingdom  

4.7 

7.7 

40.4 

45.4 

56.9 

51.4 

15.3 

62.3 

0.2 

6.8 

12.4 

10.8 

8.0 

6.6 

17.7 

6.4 

10.3 

54.6 

61.1 

77.3 

68.7 

20.5 

84.5 

0.3 

9.5 

17.1 

14.6 

10.9 

8.8 

23.6 

8.0 

12.9 

68.3 

76.4 

97.0 

85.9 

25.6 

8.0 

12.9 

68.3 

79.7 

8.1 

12.9 

68.3 

79.7 

8.1 

12.9 

68.3 

79.7 

8.1 

12.9 

68.3 

79.7 

8.1 

12.9 

68.3 

79.7 

103.8 

103.9 

103.9 

103.9 

103.9 

87.0 

25.6 

87.0 

25.6 

87.0 

25.6 

87.0 

25.6 

87.0 

25.6 

106.4 

116.5 

116.6 

116.6 

116.6 

116.6 

0.4 

12.0 

21.3 

18.2 

13.7 

11.0 

29.5 

0.4 

12.0 

21.4 

19.6 

13.8 

11.0 

29.5 

0.4 

12.0 

21.4 

19.6 

13.8 

11.0 

29.5 

0.4 

12.0 

21.4 

19.6 

13.8 

11.0 

29.5 

0.4 

12.0 

21.4 

19.6 

13.8 

11.0 

29.5 

0.4 

12.0 

21.4 

19.6 

13.8 

11.0 

29.5 

" 

(3) 

In Annex V, the rows concerning dried grapes, citrus for processing and tomatoes for 
processing are deleted. 

(4) 

In Annex VII, the following point is added: 

"M.  Fruit and vegetables 

Member  States  shall  determine  the  amount  to  be  included  in  the  reference 
amount of each farmer on the basis of objective and non-discriminatory criteria 
such as: 

– 

– 

– 

the  amount  of  market  support  received,  directly  or  indirectly,  by  the 
farmer in respect of fruit and vegetables, 

the area used to produce fruit and vegetables, 

the amount of fruit and vegetables produced, 

EN 

43 

   EN 

 
in respect of a representative period which could be different for each product, 
of  one  or  more  marketing  years  starting  from  the  marketing  year  ending  in 
2001 and, in case of the Member States which have acceded to the Community 
in  2004  or  thereafter,  from  the  marketing  year  ending  in  2004,  up  to  the 
marketing year ending in 2007. 

Member  States  shall  calculate 
in 
Article 43(2)  of  this  Regulation  on  the  basis  of  objective  and  non-
discriminatory criteria such as the areas referred to in the second indent of the 
first paragraph. 

the  applicable  hectares  referred 

to 

The  application  of  the  criteria  in  this  point  may  be  varied  between  different 
fruit and vegetable products if duly justified on an objective basis. 

For  the  purposes  of  this  Regulation,  "fruit  and  vegetables"  shall  mean  the 
products  listed  in  Article 1(2)  of  Regulation  (EC)  No 2200/96  and  in 
Article 1(2) of Regulation (EC) No 2201/96." 

(5) 

Annexes VIII and VIIIa are replaced by the following: 

"ANNEX VIII 
National ceilings referred to in Article 41 

Member State 

2005 

2006 

2007 

2008 

2009 

(EUR '000)

2010 and 
subsequent 

Belgium  

Denmark  

Germany  

Greece  

Spain  

France  

Ireland  

Italy  

Luxembourg 

Netherlands  

Austria  

Portugal  

Finland  

Sweden  

411 053 

580 376 

593 395 

606 935 

614 179 

611 805 

943 369 

1 015 479 

1 021 296 

1 027 278 

1 030 478 

1 030 478 

5 148 003 

5 647 175 

5 695 607 

5 744 240 

5 770 254 

5 774 254 

838 289 

2 143 603 

2 171 217 

2 362 198 

2 364 613 

2 175 282 

3 266 092 

4 635 365 

4 649 913 

4 830 954 

4 838 536 

4 840 413 

7 199 000 

8 236 045 

8 282 938 

8 382 272 

8 407 555 

8 415 555 

1 260 142 

1 335 311 

1 337 919 

1 340 752 

1 342 268 

1 340 521 

2 539 000 

3 791 893 

3 813 520 

4 151 330 

4 163 175 

4 184 720 

33 414 

386 586 

613 000 

452 000 

467 000 

637 388 

36 602 

428 329 

633 577 

504 287 

561 956 

670 917 

37 051 

833 858 

737 093 

571 377 

563 613 

755 045 

37 051 

846 389 

742 610 

608 101 

565 690 

760 281 

37 051 

853 090 

745 561 

608 631 

566 801 

763 082 

37 051 

853 090 

744 955 

608 327 

565 520 

763 082 

United Kingdom  

3 697 528 

3 944 745 

3 960 986 

3 977 175 

3 985 834 

3 975 849 

EN 

44 

   EN 

 
 
 
 
 
 
 
 
ANNEX VIIIa 
National ceilings referred to in Article 71c 

(EUR '000) 

Calendar 
year 

Bulgaria 

Czech 
Republic 

Estonia 

Cyprus 

Latvia 

Lithuania 

Hungary  Malta 

Romania 

Poland 

Slovenia 

Slovakia 

228 800 

23 400 

8 900 

33 900 

92 000 

350 800 

294 551 

27 300 

12 500 

43 819 

113 847 

446 305 

670 

830 

724 600 

35 800 

97 700 

980 835 

44 184 

127 213 

200 384 

377 919 

40 400 

17 660 

60 764 

154 912 

540 286 

1 640 

441 930 

1 263 706 

58 958 

161 362 

246 766 

470 463 

50 500 

26 852 

75 610 

193 076 

677 521 

2 982 

532 444 

1 579 292 

73 533 

201 937 

287 399 

559 622 

60 500 

31 292 

90 016 

230 560 

807 366 

3 392 

623 399 

1 877 107 

87 840 

240 014 

327 621 

645 222 

70 600 

35 732 

103 916 

267 260 

933 966 

3 802 

712 204 

2 162 207 

101 840 

276 514 

407 865 

730 922 

80 700 

40 172 

117 816 

303 960 

1 060 666 

4 212 

889 814 

2 447 207 

115 840 

313 114 

488 209 

816 522 

90 800 

44 612 

131 716 

340 660 

1 187 266 

4 622 

1 067 425 

2 732 307 

129 840 

349 614 

568 553 

902 222 

100 900 

49 052 

145 616 

377 360 

1 313 966 

5 032 

1 245 035 

3 017 407 

143 940 

386 214 

648 897 

902 222 

100 900 

45 652 

145 616 

377 360 

1 313 966 

5 032 

1 422 645 

3 017 407 

143 940 

386 214 

729 241 

902 222 

100 900 

45 652 

145 616 

377 360 

1 313 966 

5 032 

1 600 256 

3 017 407 

143 940 

386 214 

809 585 

902 222 

100 900 

45 652 

145 616 

377 360 

1 313 966 

5 032 

1 777 866 

3 017 407 

143 940 

386 214 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 and  
subsequent 
years 

" 

EN 

45 

   EN 

 
 
 
 
 
FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 08 – 05 03 02 29 – 05 02 10 01 – 05 03 01 

APPROPRIATIONS: 
€1 319.758 Mio, €115 Mio, 
€38 Mio and €30 196 Mio 

TITLE: 
Council Regulation laying down specific rules as regards the fruit and vegetable sector and amending 
certain Regulations 

LEGAL BASIS: 
Articles 36 and 37 of the Treaty 

AIMS: 
Reform of the fruit and vegetables regime. 

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

See annexed table 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 2007 
(EUR million) 

– 

– 

– 

– 

FOLLOWING 
FINANCIAL 
YEAR 2008 
(EUR million) 

–40.6 

– 

2009 

+36.7 
– 

2010 

–5.8 
– 

2011 

+2.6 
– 

2012 

+12.6 
– 

2013 

+15.7 
– 

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: 

EN 

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ANNEX 

Estimated impact of the reform of fruit and vegetables compared to the status quo: 

Fruit and vegetables status quo – in EUR Mio 

Measures 

Export refunds 

Bulgaria Romania 

Market withdrawals 

Operational funds (1) 

Tomatoes 

Bulgaria Romania 

Bulgaria Romania 

Peaches – pears – prunes – figs 

Bulgaria Romania 

Citrus 

Free distribution 

Pre-recognition of PO's 

Dried grapes 

Total 

B-2008  B-2009  B-2010  B-2011  B-2012 

B-2013 

30 

0.7 

32 

693 

3 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

30 

0.7 

32 

744 

5 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

30 

0.7 

32 

799 

7 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

30 

0.7 

32 

858 

8.5 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

30 

0.7 

32 

922 

10.2 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

30 

0.7 

32 

990 

12.2 

329 

7.2 

76 

0.9 

241 

6 

15 

115 

1 548.8 

1 601.8 

1 658.8 

1 719.3 

1 785 

1 855 

Fruit and vegetables – reform proposal – in EUR Mio 

Measures 

Operational funds (1) 

Free distribution 

Pre-recognition of PO's 

B-2008  B-2009  B-2010  B-2011  B-2012 

B-2013 

695.08 

752.6 

815.51 

884.44 

960.09 

1 043.28 

8 

30 

8 

40 

8 

40 

8 

40 

8 

40 

8 

30 

Single payment scheme (2) (3) (4) (5) 

769.1 

831.865 

783.465 

783.465 

783.465 

783.465 

Total 

1 502.2 

1 632.5 

1 647.0 

1 715.9 

1 791.6 

1 864.7 

Promotion  (amendment  of  Regulation 
(EC) No 2826/2000) 

6 

6 

6 

6 

6 

6 

Impact of the proposal 

–40.6 

36.7 

–5.8 

2.6 

12.6 

15.7 

(1) 

(2) 
(3) 

(4) 
(5) 

Hypothesis of yearly increase in expenditure: 
– 
– 

for the baseline (status quo): +7.5% for all Member States, 
for the reformed CMO: +7.5% for Member States with sufficient levels of grouping of supply 
and +20% for Member States with low grouping of supply. 

Old regime for B-2008 (marketing year 2007/08 processed products). 
Forecasted residual amounts of marketing year 2007/08 for some processed products (EUR 48.4 Mio) + 
single payment scheme for B-2009. 
Before modulation. 
Based  on  expenditures  during  2003/2004  and  2005  for  15  "old"  Member  States  and  on  maximum 
guaranteed quantities x aid for NMS. 

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