Commission Regulation (EC) No 270/2007 of 13 March 2007 amending Regulation (EC) No 1973/2004 laying down detailed rules for the application of Council Regulation (EC) No 1782/2003 as regards the support schemes provided for in Titles IV and IVa of that Regulation and the use of land set aside for the production of raw materials
Date: 2007-03-13
Institutions: European Commission
Subjects: agricultural product, aid system, common agricultural policy, energy crop, exchange of information, fallow, land use, production aid, raw material

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COMMISSION REGULATION (EC) No 270/2007

of 13 March 2007

amending Regulation (EC) No 1973/2004 laying down detailed rules for the application of Council
Regulation (EC) No 1782/2003 as regards the support schemes provided for in Titles IV and IVa of
that Regulation and the use of land set aside for the production of raw materials

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1782/2003 of 29
September 2003 establishing common rules for direct support
schemes under the common agricultural policy and establishing
certain support schemes for farmers and amending Regulations
(EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001,
(EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC)
No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and
(EC) No 2529/2001 (1), and in particular Article 145 thereof,

Whereas:

(1)

(2)

(3)

the

Article 3(1) of Commission Regulation (EC) No
1973/2004 (2) provides
communication of
for
certain data to the Commission. As regards tobacco
aid,
the communication related to the indicative aid
amount is required for the harvest year, and not the
following year as mentioned in point (d) of that Article
which should be amended accordingly.

As regards crop-specific payments for cotton, communi-
cations to the Commission required by Article 3(1) of
Regulation (EC) No 1973/2004 and by Article 171ai(3)
of the same regulation are redundant. Article 171ai(3)
should, therefore, be deleted.

In accordance with Article 71a(2)(d) of Commission
Regulation (EC) No 796/2004 of 21 April 2004 laying
down detailed rules for the implementation of cross-
compliance, modulation and the integrated adminis-
tration and control system provided for in Council Regu-
lation (EC) No 1782/2003 establishing common rules for
direct support schemes under the common agricultural
policy and establishing certain support
for
farmers (3), Member States are bound to take into

schemes

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Regu-

lation (EC) No 2013/2006 (OJ L 384, 29.12.2006, p. 13).

(2) OJ L 345, 20.11.2004, p. 1. Regulation as last amended by Regu-

lation (EC) No 1679/2006 (OJ L 314, 15.11.2006, p. 7).

(3) OJ L 141, 30.4.2004, p. 18. Regulation as last amended by Regu-

lation (EC) No 2025/2006 (OJ L 384, 29.12.2006, p. 81).

(4)

(5)

(6)

(7)

account the application of reductions or exclusions to be
applied to individual aid applications when fixing the
reduction coefficient to be applied in case where the
budgetary ceilings fixed for certain aid schemes are
overshot.

fixing of

Article 4 of Regulation (EC) No 1973/2004 provides for
the
certain reduction coefficients by 15
effect of
November of a given year. The overall
reductions and exclusions to be applied to individual
aid applications are not necessarily known to the
Member States by that date. Moreover, there is no need
for the fixing of those coefficients by that date.

that

Furthermore, experience shows
the fixation of
further coefficients of reduction required by Article 4
of Regulation (EC) No 1973/2004 is often difficult to
execute by the deadline of 15 November of the year
concerned. Given that there is no particular need for
the fixation of those coefficients at such an early stage
and that it is sufficient if the data are communicated to
the Commission by 31 January of the following year but
in any case prior to the granting of any payments, Article
4 should be amended accordingly. That amendment has
an impact on Articles 3, 61, 69, 171bb, Annex III and
Annex VI of that Regulation which should, therefore, also
be amended.

The report from the Commission to the Council on the
review of the aid for energy crops provided for in Article
88 of Regulation (EC) No 1782/2003 has underlined the
need for enhancing the attractiveness of this aid for both
the farmers and the processors. The implementing rules
established in Chapter 8 of Regulation (EC) No
1973/2004 should therefore be simplified.

is

first processors

The system of securities guarantees that the raw material
grown on areas benefiting from the aid for energy crops
finally
delivered to collectors or
processed into energy. However,
it appears appropriate
to allow Member States to replace the system of se-
curities by
approval of
operators designed to guarantee the same degree of effec-
tiveness. Such authorised operators would have to
comply with minimum requirements and would be sanc-
tioned in case of non-compliance with their obligations,
according to detailed rules to be set up at national level
by the competent authorities.

an alternative

system of

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(8)

(9)

The contract obligation is an efficient way of ensuring
that
farmers applying for aid for energy crops will
eventually deliver those raw materials to a collector or
a processor. However, since permanent crops (e.g. short
rotation coppice) cannot be harvested in the first year(s)
of plantation, the contract obligation should apply only
from the year of the first harvest.

Representative yields should be used for the calculation
of the minimum quantity of raw material to be delivered
by the farmer to ensure that the areas concerned are used
for energy purposes. However, for certain raw materials
any misuse is practically impossible due to their original
character and the setting of a representative yield is
therefore not necessary.

(10)

The obligation of delivering all raw materials harvested
on the areas concerned does not allow replacing the raw
material harvested by an equivalent quantity of the same
raw material. For annual crops this obligation is not
thus making the
necessary and should be abolished,
implementation of
the scheme more flexible, without
jeopardising the basic goal of the scheme.

(14)

(15)

In accordance with the third subparagraph of Article
24(3) of Regulation (EC) No 1973/2004 first processors
and collectors choosing to replace the raw materials and
intermediate products or by-products by their equivalent
quantities are required to inform the competent autho-
rities about it. Furthermore, according to this provision,
communication between the national authorities of
Member States must be ensured in case such transactions
concern different Member States, so that sufficient infor-
mation on such transactions for the national authorities
of Member States is available. Therefore the obligation to
use the T5 copy provided for in Articles 37 and 38 of
the same Regulation is not necessary and should be
abolished.

listed in Annex III

In order to harmonise the rules under the area related aid
schemes and to simplify the administration and the
controls of the applications for aid, features referred to
in acts
to Regulation (EC) No
1782/2003 or which may form part of the good agri-
cultural and environmental conditions as referred to in
Article 5 and Annex IV of that Regulation should be
made eligible for all area related aid schemes, including
the Single Area Payment Scheme. Therefore Article 30(3)
of Regulation (EC) No 796/2004 should also apply to
that scheme.

(11)

It is appropriate to provide that, where it is possible,
communications
to the paying agency by both the
farmer and the collector or first processor should be
made in a manner allowing to avoid duplication.

(16)

is necessary in order

Information on the yield within the framework of the
arable crops area payment
to
conduct the forecast of expenditure. Moreover, Article
104 of the Regulation (EC) No 1782/2003 establishes
differentiated yields for the calculation of aid in case
maize is treated separately or not. Therefore Annex IX
of the Regulation (EC) No 1973/2004 should be adapted.

(12) Article 25 of Regulation (EC) No 1973/2004 provides
for the possibility for the Member States to allow farmers
to use raw materials on their own holding for energy
purposes. For the sake of clarity and transparency and
taking into account the specificities of this option it is
appropriate to establish special rules applicable to this
case.

(13)

the production is

For cereals and oilseeds used on the holding, the de-
naturation of
explicitly required
to Article 25(4) of Regulation (EC) No
pursuant
1973/2004. Taking into account
the possible limited
volume of such production and the technical difficulties
for such a process, it would be appropriate to leave it up
to the Member State to set the appropriate measures and
checks. This approach should also be extended to the
determination of
raw materials
harvested.

quantities of

the

(17)

Regulation (EC) No 1973/2004 should therefore be
amended accordingly.

(18)

Since the amendments provided for in this Regulation
relate to aid applications to be submitted in 2007, this
Regulation should apply as of 1 January 2007. However,
because of administrative constraints some amendments
should apply from 1 January 2008.

(19)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Direct Payments,

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HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1973/2004 is amended as follows:

1. Article 3(1) is amended as follows:

(a) The following point (b)a is inserted:

‘(b)a by 15 October following the end of the year in
respect of which the aid is granted, all the infor-
mation needed to evaluate the aid for energy
crops and in particular:

— the number of applications,

— the areas corresponding to each species of raw

material,

— the quantities of each type of raw material and

end product obtained;’

(b) point (c) is amended as follows:

(i) the

introductory phrase

is

replaced by

the

following:

‘by 31 January of the following year at the latest:’

granted to the farmers and at the latest by 31 January of
the following year on the basis of the data communicated
in accordance with Article 3(1)(b),
this
Regulation.’

(b)a and (c) of

3. Chapter 8 is replaced by the following:

‘CHAPTER 8

AID FOR ENERGY CROPS

SECTION 1

Definitions

Article 23

Definitions

For the purposes of this Chapter:

(a) “applicant” means any farmer cultivating the areas
referred to in Article 88 of Regulation (EC) No
1782/2003 with a view to obtaining the aid provided
for in that Article;

(b) “aid” means the aid for energy crops provided for in

Article 88 of Regulation (EC) No 1782/2003;

(c) “energy product” means one of the energy products
referred to in the second paragraph of Article 88 of
Regulation (EC) No 1782/2003;

(ii) Point (iii) is replaced by the following:

‘(iii)

the total determined quantity in the case of the
to producers of dairy
additional payments
products provided for in Article 96 of Regu-
lation (EC) No 1782/2003.’

(d) “first processor” means any user of agricultural raw
materials, apart
from applicants using raw materials
on the holding, who undertakes the first processing
thereof with a view to obtaining one or more of the
products referred to in the second paragraph of Article
88 of Regulation (EC) No 1782/2003;

(c) point (d) is replaced by the following:

‘by 31 March of the harvest year at the latest, the
indicative aid amount per kg in the case of
the
tobacco aid provided for in Article 110j of Regulation
(EC) No 1782/2003, by group of tobacco varieties as
listed in Annex XXV to this Regulation and, where
applicable, per quality grade;’

2. Article 4 is replaced by the following:

‘Article 4

The coefficient of reduction of areas in the case referred to
in Articles 75, 78(2), 82, 85, 89(2), 98 and 143 of Regu-
lation (EC) No 1782/2003, or of quantities with the
objective criteria in the case referred to in Article 95(4)
of that Regulation, shall be fixed before the payments are

(e) “collector” means any person concluding a contract
with an applicant as referred to in Article 25, who
purchases on his own account raw materials referred
to in Article 24(1) and intended for the uses provided
for in the second paragraph of Article 88 of Regulation
(EC) No 1782/2003.

SECTION 2

Use of raw material

Article 24

Use of raw material

1.
Any agricultural raw material may be grown on the
areas covered by the aid provided that they are intended
primarily for use in the production of energy products
under the conditions laid down in paragraphs 2 to 8.

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Sugar beet may be grown on the areas referred to in
2.
the paragraph 1 provided that any intermediate product is
used in the production of energy products and that any co-
product or by-product
is used in
accordance with Council Regulation (EC) No 318/2006 (*).

containing sugar

(a)

the species of all raw materials concerned and the area
planted with each species;

(b) the indication of the year foreseen for the first harvest.

3.
For hemp, Article 29 of Commission Regulation (EC)
No 795/2004 (**) and Article 33 of Regulation (EC) No
796/2004 shall apply.

The Member States may exclude any agricultural raw
4.
from aid where such materials raise difficulties
material
from the viewpoint of controls, public health,
the en-
vironment, criminal law, or a reduced rate of final energy
products.

In support of the single application and by the date
in Article 11 of Regulation (EC) No
to their competent
the contract concluded with a
the

3.
provided for
796/2004, applicants
authorities a copy of
collector or
declaration referred to in paragraph 2.

first processor or, where appropriate,

submit

shall

Member States may decide that the contract may only be
concluded between an applicant and a first processor.

For any raw material, the Member States may set a

5.
minimum cultivated area.

Member States may require applicants to conclude a single
contract for each raw material.

6.
The economic value of the energy products obtained
by processing raw materials shall be higher than that of all
other products intended for other uses and obtained by
such processing, as determined by the valuation method
set out in Article 38(6) of this Regulation.

Applicants shall ensure that the contract specifies at

4.
least the following:

(a)

the names and addresses of the parties to the contract;

7.
By way of derogation from paragraph 6, soya beans
may be grown on the areas referred to in paragraph 1
provided that any intermediate product apart from soya
bean meal is used in the production of energy products.

(b) the duration of the contract;

(c)

the species of all raw materials concerned and the area
planted with each species;

Energy products shall be obtained at the most by a

8.
third successive processor.

(d) any conditions applicable to the delivery of the forecast

quantities of raw materials;

SECTION 3

Contract

Article 25

Contract

The production of raw materials referred to in Article
1.
24 shall be covered by a contract
in accordance with
Article 90 of Regulation (EC) No 1782/2003 under the
conditions laid down in this Chapter.

2.
By way of derogation from paragraph 1, for the years
prior to the first harvest of crops other than annual crops,
applicants may undertake by way of a written declaration
to plant during the year concerned and to use the raw
materials to be harvested for the production of energy
products. The declaration shall
the
following information:

contain at

least

(e) an undertaking by the farmer to fulfil his obligation

pursuant to Article 27(1);

(f) an undertaking of the first processor or the collector to
use the raw materials in accordance with this Chapter.

SECTION 4

Representative yields, delivery of
quantities to be delivered

raw materials and

Article 26

Representative yields

1. Member States shall establish each year and in due
time, using an appropriate procedure, representative yields
which must be attained for each species of raw materials,
and shall inform the applicants concerned thereof.

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By way of derogation from paragraph 1, Member
2.
States may decide to not establish representative yields
for crops other than annual crops.
In that case, where
the controls provided for in the second subparagraph of
Article 27(1) show a risk of non-compliance with the obli-
gation to deliver all the raw material harvested, the Member
States shall, using an appropriate procedure, establish rep-
resentative yields for those crops concerned by that risk.

Article 27

Delivery of
delivered

raw materials and quantities

to be

Applicants

1.
processor:

shall deliver

to a

collector or

first

(a)

the quantities of raw material at
representative yield;

least equal

to the

(b) all raw material derived from crops for which the
the option

Member States have decided to use
provided for in Article 26(2).

Member States shall set up appropriate control measures in
order to ensure that the obligation to deliver all the raw
materials provided for in point (b) of the first subparagraph
is complied with.

Applicants or collectors or

2.
shall
declare to the competent authority the delivery of raw
materials by a written declaration signed by the collector
or first processor and by the applicant. The declaration
shall contain at least the following information:

first processors

The first processor may use an equivalent quantity of
5.
the raw material, intermediate products or by-products to
manufacture one or more energy products.

the

the

collector

first processor or

In the case referred to in the first subparagraph, or where
the collector sells an equivalent quantity of the raw material
harvested,
shall
accordingly inform the competent authority with whom
the security referred to in Article 31 is lodged or, in the
event of application of Article 37, the competent authority
responsible for
first
processor concerned. Where such equivalent quantity is
used in a Member State other than the Member State in
which the raw material is harvested, the competent auth-
orities of the Member States concerned shall inform each
other of the details of such transactions.

the collector or

the approval of

6.
In accordance with the national provisions governing
contractual relations, the first processor may delegate to a
third party the collection of the raw material from the
farmer applying for the aid. The first processor remains
solely responsible with regard to the obligations
laid
down by this Chapter.

Article 28

Exceptional circumstances

In case of exceptional circumstance or force majeure as
provided for
in Article 40(4) of Regulation (EC) No
1782/2003, an applicant may inform his competent
authority following the procedure established in Article
72 of Regulation (EC) No 796/2004 that, owing to such
circumstances, he is unable to deliver all or part of the raw
materials specified in the contract referred to in Article 25.
The competent authority may, after obtaining sufficient
circumstances, authorise
evidence of
amendments
to be delivered to the
collector or first processor.

such exceptional
to the quantities

(a)

the date of the delivery;

(b) the quantities delivered for each species.

Conditions of payment of the aid

SECTION 5

3.
The collectors or first processors shall take delivery of
the raw material as referred to in paragraph 1 and ensure
that an equivalent quantity of such raw materials is used
within the Community for the manufacture of one or more
energy products.

Article 29

Payment

1. Without prejudice to the sanctions provided for in
Article 51 of Regulation (EC) No 796/2004 and in
Article 30 of this Regulation, the aid shall be paid only
where:

Collectors shall deliver to the first processor(s) an
the raw materials taken over

4.
equivalent quantity of all
from the applicants.

(a) a copy of

the contract has been deposited to the

competent authority in accordance with Article 25;

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(b) the security provided for in Article 31 has been lodged,

save where Article 37 is applied;

areas covered by a contract signed by the collector or first
processor concerned and used to produce that raw material,
by the rate of EUR 60 per hectare.

(c)

the declaration provided for in Article 27(2) has been
submitted to the competent authority;

(d) the

competent

the
conditions laid down in Articles 25 and 27 have
been met in respect of each application.

authority has

checked

that

3.
In case of the production of crops other than annual
crops, however, securities shall be lodged in respect of the
year of the first harvest only and shall remain valid for the
the
consecutive years during the period of validity of
contract.

4. Where contracts are amended in accordance with
Article 28,
adjusted
accordingly.

lodged shall be

securities

the

2.
By way of derogation from paragraph 1 and without
prejudice to reductions and exclusions provided for in
Article 51 of Regulation (EC) No 796/2004 and to
sanctions provided for in Article 30 of this Regulation,
the aid in respect of the years prior to the first harvest
for crops other than annual crops shall be paid provided
that the declaration referred to in Article 25(2) has been
submitted to the
the
competent authority has checked the compliance with
Article 25(2).

authority and that

competent

Article 30

Sanctions in the case of false delivery declaration

Where it is revealed during the controls that the delivery
declaration as provided for in Article 27(2) is intentionally
false, the applicant shall lose his eligibility for the aid. If the
aid has already been paid,
shall be recovered in
accordance with the provisions of Article 73 of Regulation
(EC) No 796/2004. For crops other than annual crops,
payments already made are subject to recovery until the
last eligible payment.

it

SECTION 6

Obligations on collectors and first processors

Article 31

Securities

the amendments

1.
Collectors or first processors shall lodge a security as
provided for in paragraph 2 with their competent auth-
orities by the final date for
to the
payment applications for
in question in the
Member State concerned, as referred to in Article 15(2)
of Regulation (EC) No 796/2004. However, Member
States may waive the requirement of a security under the
conditions set up in Article 5 of Commission Regulation
(EEC) No 2220/85 (***).

the year

5. Without prejudice to Articles 20 to 24 of Regulation
(EEC) No 2220/85, where the security has been lodged by
the collector, it shall be released once the raw material in
question has been delivered to the first processor, provided
that the collector’s competent authority has evidence that
the first processor has lodged an equivalent security with
their competent authority. In case of first processing in a
Member State applying the provisions of Article 37, the
security lodged by the collector shall be released once the
raw material in question has been delivered to an approved
first processor.

Article 32

Primary, secondary and subordinate requirements for
collectors and processors

1.
The following obligations shall constitute primary
requirement within the meaning of Article 20 of Regulation
(EEC) No 2220/85:

(a)

the obligation for collectors to deliver the total quan-
tities of raw materials to the first processor provided for
in Article 27(4);

(b) the obligation for first processors to process at least the
quantities of raw materials determined in accordance
with Article 27(1) into the end products specified in
the contract;

(c)

the obligation for
related to the
economic value of the energy products obtained by
processing raw materials referred to in Article 24(6).

first processors

2.
The securities to be lodged in respect of each raw
material shall be calculated by multiplying the sum of all

2.
The obligation for first processors to process raw
materials by 31 July of the second year following that of
harvest shall constitute a secondary requirement within the
meaning of Article 20 of Regulation (EEC) No 2220/85.

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The following obligations shall constitute subordinate
3.
requirements within the meaning of Article 20 of Regu-
lation (EEC) No 2220/85:

(a)

the species of all raw materials concerned and the area
planted with each species;

(a) or collectors and first processors:

(b) where appropriate, the indication of the year foreseen

for the first harvest;

(i) the obligation to take delivery of the relevant quan-
tities of raw materials, as delivered by applicants in
accordance with Article 27(3);

(ii) the obligation to sign the declaration of delivery

referred to in Article 27(2);

(b) for first processors, the obligation, where applicable, to
set up in

lodge a security within the time limit
Article 31(1).

By way of derogation from Article 20(2) of Regu-
4.
lation (EEC) No 2220/85, the obligation for a collector
or a first processor to accept or facilitate the on-the-spot
checks to be performed by the competent authorities or to
provide the records referred to in Article 38 of this Regu-
lation shall constitute a primary requirement.

SECTION 7

Special rules for the use of raw material on the holding

Article 33

Use of raw material on the holding

Notwithstanding Article 25(1), Member States may

1.
permit applicants to:

(a) use

short

covered
by
rotation
ex 0602 90 41 or all
the oilseeds
covered by CN codes 1201 00 90, 1205 10 90,
1205 90 00, 1206 00 91 and 1206 00 99 harvested:

forest
the cereals or

trees

(i) as fuel for heating their agricultural holding;

(c) an undertaking by the applicant

to use or process
directly the raw material covered by the declaration in
accordance with paragraph 1 of this Article and Article
24(1) and by a date to be fixed by the Member States
which shall not be later than the 31 July of the second
year following that of the harvest;

(d) the intended end use of

the raw material and the
technical description of the envisaged transformation.

Save as otherwise provided in this Section,

the
this Chapter shall apply to the concerned

3.
provision of
farmers.

Article 34

Quantities of raw materials to be used on the holding

1.

Applicants shall use on the holding:

(a) a quantity of raw material at least equal to the rep-

resentative yield referred to in Article 26; or

(b) for raw material for which no representative yield has

been established, all the raw material harvested.

Member States shall
introduce adequate control measures
to ensure compliance with the obligation provided for in
point (b) of the first subparagraph.

submit

Applicants shall, by a date to be fixed by the Member
2.
States,
to the competent authority a harvest
declaration that shall contain at least the following infor-
mation:

(a)

the date of the harvest;

(ii) for the production on the holding of power or

biofuels;

(b) the quantities of raw materials harvested.

(b) process into biogas covered by CN code 2711 29 00

on their holdings all raw materials harvested.

2. Where paragraph 1 of this Article applies, Article 25
shall not apply. Applicants shall, by the date provided for
in Article 11 of Regulation (EC) No 796/2004 and in
support of
to their
competent authorities a written declaration which shall
contain at least the following information:

application,

submit

single

the

In case of exceptional circumstance or force majeure
3.
as provided for in Article 40(4) of Regulation (EC) No
1782/2003, an applicant may, in accordance with Article
72 of Regulation (EC) No 796/2004, inform his competent
authority that he will be unable to harvest or to use all or
part of quantity of raw material referred to in paragraph 1
of
after
competent
obtaining sufficient evidence of such exceptional circum-
stances, authorise amendments to the quantities to be
used on the holding.

this Article. The

authority may,

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Article 35

Controls

Without prejudice to the controls provided for in Articles
24 and 26 of Regulation (EC) No 796/2004 and Articles
37(4) to 37(6) of this Regulation, Member States applying
Article 33(1) of this Regulation shall
introduce adequate
control measures to ensure that:

(a)

the relevant quantities of raw materials are harvested in
accordance with Article 34.

If the raw materials have not been processed into energy
products by the date referred to in Article 33(2)(c), the aid
paid for the harvest
in question shall be recovered in
accordance with Article 73 of Regulation (EC) No
796/2004 and the farmer shall be excluded from the aid
for energy crops for the following year.

Article 36a

Member States may decide to apply this Section as from 1
January 2008.

Such control measures
following:

shall

cover

at

least

the

SECTION 8

(i) administrative control

for

the compliance with

Article 34 concerning the quantities harvested;

(ii) on-the-spot checks on at least 10 % of the farms for
checking the quantity harvested declared by the
applicant in accordance with Article 34(2);

(b) the raw materials referred to in point (a) are directly
used on the holding or processed into biogas falling
within CN code 2711 29 00.

Article 36

Payments

1. Without prejudice to the reductions and exclusions
established in Article 51 of Regulation (EC) No 796/2004
and in paragraph 2 of this Article, the aid shall be paid to
applicants provided that:

(a)

the requisite quantities of raw materials pursuant to
Article 34 have been harvested;

(b) the declarations provided for in Articles 33(2) and
34(2) have been submitted to the competent authority;

(c) The checks provided for in Article 35(a) have been

completed by the Competent Authority.

if

it

2. Without prejudice to Article 40 of Regulation (EC)
is revealed that an applicant has
No 1782/2003,
submitted intentionally a false harvest declaration referred
to in Article 34(2) of this Regulation he shall not be eligible
for the aid. If the aid has already been paid,
it shall be
recovered in accordance with Article 73 of Regulation
(EC) No 796/2004.

Optional system of approval

Article 37

Optional system of approval

By way of derogation from Article 31, Member States
1.
may decide to set up a system of approval of the collectors
and first processors (hereinafter referred to as approved
operators).

Member States shall make available to public the decision
referred to in the first subparagraph by 1 November of the
year preceding its application. However, for 2007, Member
States shall make their decision available to public by 1
March 2007.

Save as otherwise provided in this Section, the provisions
of this Chapter shall apply to the Member States having
decided to apply the first subparagraph.

a Member State has decided to apply
2. Where
paragraph 1,
it shall adopt the necessary provisions and
take the necessary measures to ensure that the provisions
of this Chapter are complied with. In particular, Member
States
the
operators ensuring that at least the following criteria are
met:

lay down conditions

for approval of

shall

(a)

for collectors:

(i) have the administrative capacities for operating as a
record keeping

and performing

the

collector
referred to in Article 38;

(ii) have a contractual relationship with at least one
processor
raw materials or
the delivery of
have carried on trading activities for a sufficient
period;

for

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(b) for first processors:

(i) have the administrative capacities for operating as a
first processor and the administrative capacities for
performing the record keeping referred to in Article
38;

(ii) have the appropriate production capacities for the
production of at least one energy product referred
to in Article 24(1).

3. Member States shall set up a procedure of controls of
the approval for approved operators before the list referred
to in paragraph 6 is published.

4. Where it is found that an approved operator fails to
comply with the obligations laid down in this Chapter or
with the national provisions adopted on its basis, or where
a collector or first processor does not accept or facilitate
the on-the-spot checks to be performed by the competent
information
authorities
and/or does not provide
impose
referred to in Article 38, Member States shall
shall be
appropriate penalties. The
calculated in the light of
the in-
fringement and proportionally to the securities forfeited
for non-compliance with the requirements as set up in
Article 32.

rate of penalties
the seriousness of

the

If an approved operator, as a result of a serious
5.
negligence to be determined by the Member State fails to
comply with the provisions of this Chapter or with the
national provisions, Member
to
withdraw its approval for a period to be determined by
the Member State.

States may

decide

Before 15 December of the year prior to the year in
6.
respect of which the aid is granted, Member States shall
make available to the public a list of approved collectors
and first processors. However, for the aid to be granted in
respect of the year 2007 the list of approved collectors and
first processors shall be made available to the public by 15
April 2007 at the latest.

7. Where
a Member State has decided to apply
paragraph 1, the aid shall be paid only to applicants who
have concluded contracts with approved collectors or
processors.

SECTION 9

Checks

Article 38

Record keeping

1.
The competent authority of the Member State shall
specify the records to be kept by collectors, processors or
applicants referred to in Article 33(1) and the frequency of
the update of
least
monthly.

those records, which shall be at

For processors, such records shall comprise at least

2.
the following information:

(a)

the quantities of different raw materials purchased for
processing;

(b) the quantities of raw materials processed and the quan-
tities and types of end products, co-products and by-
products obtained there from;

(c) wastage during processing;

(d) the quantities destroyed and the reasons for such

destruction;

(e)

the quantities and types of products sold or transferred
by the processor and the prices obtained;

(f) where applicable,

the names and addresses of

the

subsequent processors.

For collectors, such records shall comprise at least the

3.
following information:

(a)

the quantities of all raw materials purchased and sold
for processing under this scheme;

(b) the names and addresses of the first processors.

4.
In the case of applicants referred to in Article 33(1),
the records shall comprise at least a stock record allowing
for the traceability of the harvests and processing on the
holding.

shall

The competent authority of
the
check

the collector or first
5.
processor
submitted
that
complies with the conditions referred to in Article 24(1).
the applicants’
Where those conditions are not met,
competent authorities shall be notified.

contract

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6. With a view to calculating the economic value of the
products referred to in Article 24(6), the competent auth-
orities concerned shall, on the basis of the information
referred to in paragraph 2, compare the sum of
the
values of all energy products with the sum of the values
of all other products intended for other uses and obtained
from the same processing operation. Each value shall equal
the relevant quantity multiplied by the average of the ex-
factory prices recorded during the previous marketing year.
Where such prices are not available, the competent auth-
orities shall determine the relevant prices, in particular on
the basis of the information referred to in Article 39(1).

Article 39

Controls of the processing

1.
First processors shall provide their competent auth-
orities with the required information on the processing
chain in question,
in particular as regards prices and the
technical processing coefficients to be used for determining
the quantities of end products that may be obtained.

2.
The competent authorities of the Member States in
which collectors are located shall carry out checks on the
premises of at least 25 % of the collectors established in
their territory, selected on the basis of a risk analysis. Such
checks shall comprise physical checks and inspections of
commercial
verifying
consistency between the purchases of raw materials and
compliance with
the
primary,
laid
down in Article 32.

secondary and subordinate requirements

documents, with

corresponding

view to

deliveries

and

a

3.
The competent authorities of the Member States in
which processing takes place shall check compliance with
Article 24(1) and primary,
secondary and subordinate
requirements laid down in Article 32(2) at the premises
located in their
of at
territory, selected on the basis of a risk analysis. Such
checks shall involve at least:

the processors

least 25 % of

(a) a comparison of the sum of the values of all the energy
products with the sum of
the values of all other
products intended for other uses and obtained from
the same processing operation;

(b) analysis

of

the
physical

processor’s
system,
comprising
of
checks
commercial documents, with a view to verifying that
deliveries of raw materials, end products, co-products
and by-products tally.

production
and

inspections

For the purpose of the checks referred to in point (b) of the
first subparagraph,
the competent authorities shall base
themselves in particular on the technical processing coef-
ficients for the raw materials concerned. Where such coef-
ficients exist for exports in Community legislation, they
shall be applied. Where they do not, but other coefficients
do exist in Community legislation, they shall be applied. In
all other cases, inspection shall rely mainly on the coeffi-
cients generally accepted by the processing industry.

4.
For the processing operations referred to in Article
33(1), checks shall be carried out on 10 % of applicants
selected on the basis of a risk analysis taking account of:

(a) aid amounts;

(b) type of production declared for

the processing,

in

particular crops other than annual crops;

(c)

the number of agricultural parcels;

(d) developments since the previous year;

(e)

the findings of checks made in past years;

(f) other parameters to be defined by the Member States,
the declarations

based on the representativeness of
submitted.

The checks referred to in paragraph 4 shall involve at

5.
least:

(a) a comparison of the sum of the values of all the energy
products with the sum of
the values of all other
products intended for other uses and obtained from
the same processing operation;

(b) existence of facilities for using or processing the raw

materials on the holding.

6. Where the checks referred to in paragraph 4 reveal
irregularities, the competent authority shall carry out ad-
ditional checks during the year and shall consequently
increase the percentage of applicants to be subject to an
on-the-spot check the following year, in accordance with
Article 26(3) of Regulation (EC) No 796/2004.

7.
If it has been provided that certain elements of the
checks referred to in paragraphs 2, 3 and 4 may be carried
out on the basis of a sample, that sample shall guarantee a
reliable and representative level of inspection.

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Every on-the-spot check shall be the subject of an
8.
inspection report
signed by the inspector giving the
details of the checks carried out. The report shall indicate
in particular:

(a)

the date of the check;

(b) the persons present;

(c)

the period checked;

(d) the

checking

techniques
applicable, reference to sampling methods;

used

including, where

5. Article 69 is replaced by the following:

‘Article 69

Communications

Where the areas referred to in Articles 59 and 60 are found
to have been exceeded, the Member State concerned shall
fix the definitive rate of the overshoot before the payments
are granted to the farmers and by 31 January of
the
following year at the latest and shall communicate it to
the Commission by 31 January of the following year at
the latest. The data used to calculate the rate by which a
base area is exceeded shall be communicated using the
form set out in Annex VI.’;

6. In Article 136, the term ‘Article 30(3)’ is deleted;

(e) results of the check.

7. In Article 171ai, paragraph 3 is deleted;

Article 40

Additional measures and mutual assistance

The Member States shall take all

1.
further measures
required for the proper application of this Chapter and
shall give the mutual assistance needed for the purposes
of checks required pursuant to this Chapter. Where this
Chapter does not provide for appropriate reductions and
exclusions,
the Member States may apply appropriate
national sanctions against market participants involved in
the procedure for granting aid.

2.
As far as necessary or as required by this Chapter, the
Member States shall assist one another mutually to ensure
effective controls, and enable the authenticity of documents
submitted and the accuracy of the data exchanged to be
verified.

___________

(*) OJ L 58, 28.5.2006, p. 1.
(**) OJ L 141, 30.4.2004, p. 1.
(***) OJ L 205, 3.8.1985, p. 5.’

4. In Article 61 the paragraph 1 is replaced by the following:

8. In Article 171bb(2) the first subparagraph is replaced by the

following:

‘The Member States shall fix the amount of aid per olive
GIS-ha for each category of olive grove, before the
payments are granted to the farmers and by 31 January
of the following year at the latest.’;

9. In Annex III, the heading ‘TRANSMISSION DEADLINE: 15

NOVEMBER EACH YEAR’ is deleted;

10. In Annex VI, the heading ‘TRANSMISSION DEADLINE: 15

NOVEMBER EACH YEAR’ is deleted;

11. Annex IX is replaced by the text set out in the Annex to

this Regulation.

Article 2

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Union.

‘1. Where the areas referred to in Articles 59 and 60 are
found to be exceeded, the Member State concerned shall
determine the definitive rate of overshoot truncated to two
decimal points, before the payments are granted to the
farmers and by 31 January of the following year at the
latest.’;

It shall apply from 1 January 2007. However, Sections 3, 4, 5,
6 and 9 of Chapter 8 of Regulation (EC) No 1973/2004 as
amended by Article 1(3) of this Regulation shall apply from 1
January 2008.

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

Done at Brussels, 13 March 2007.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX

‘ANNEX IX

referred to in Article 3(1)(a)(i), (c)(i) and (e)(i)

ARABLE CROPS AREA PAYMENTS

The information is to be presented in the form of a series of tables drawn up in accordance with the model described
below:
— a set of tables giving information in respect of each base area region within the meaning of Annex IV to this

Regulation;

— a single table summarising the information for each Member State.

The tables are to be sent in computerised form.

Notes:

Each table must quote the region in question.

Line 1 relates only to durum wheat eligible for the supplement to the area payment provided for in Article 105(1) of
Regulation (EC) No 1782/2003.
The line “Arable crops declared as fodder areas for premiums for bovine animals and sheep” corresponds to the areas
referred to in Article 102(3) of Regulation (EC) No 1782/2003.

Model A: In case of a separate treatment of maize (*):

Crop

Area
(hectares)

Yield
(tonnes/hectare)

Durum wheat, Article 105(1)

Maize (separate base area), Article 104(2)

Other crops: cereals, oilseeds, flax, hemp, Article 104(2)

Protein crops, Article 104(2)

Voluntary set-aside, Article 107(6)

Arable crops declared as fodder areas for premiums for bovine animals and
sheep

Total

Model B: In case maize is not treated separately (**):

Crop

Area
(hectares)

Yield
(tonnes/hectare)

Durum wheat, Article 105(1)

Crops as listed in Annex IX of Council Regulation (EC) No 1782/2003,
Article 104(1)

Voluntary set-aside, Article 107(6)

Arable crops declared as fodder areas for premiums for bovine animals and
sheep

Total

(*) Following Article 104 of Council Regulation (EC) No 1782/2003, the “maize” yield determined in the regionalisation plan for the
region concerned is used for maize; the “cereals other than maize” yield is used for cereals, oilseeds, linseed, and flax and hemp grown
for fibre; the average cereal yield is used for protein crops.

(**) Following Article 104 of Council Regulation (EC) No 1782/2003, the average cereal yield determined in the regionalisation plan for

the region concerned is used for the crops.’