Commission Regulation (EC) No 736/2008 of 22 July 2008 on the application of Articles 87 and 88 of the Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products
Date: 2008-07-22
Institutions: European Commission
Subjects: State aid, aid system, control of State aid, fishing industry, small and medium-sized enterprises

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COMMISSION REGULATION (EC) No 736/2008

of 22 July 2008

on the application of Articles 87 and 88 of the Treaty to State aid to small and medium-sized
enterprises active in the production, processing and marketing of fisheries products

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 994/98 of 7 May
1998 on the application of Articles 92 and 93 of the Treaty
establishing the European Community to certain categories of
horizontal State aid (1), and in particular Article 1(1)(a)(i)
thereof,

Having published a draft of this Regulation (2),

Having consulted the Advisory Committee on State aid,

Whereas:

(4)

(5)

(1)

(2)

Regulation (EC) No 994/98 empowers the Commission
to declare, in accordance with Article 87 of the Treaty,
that, under certain conditions, aid to small and medium-
sized enterprises (SMEs) is compatible with the common
market and not subject to the notification requirement of
Article 88(3) of the Treaty.

Commission Regulation (EC) No 70/2001 of 12 January
2001 on the application of Articles 87 and 88 of the EC
Treaty to State aid to small and medium-sized enter­
prises (3) does not apply to activities linked to the
production, processing or marketing of fishery and aqua­
culture products covered by Council Regulation (EC) No
104/2000 of 17 December 1999 on the common organ­
isation of
in fishery and aquaculture
products (4).

the markets

in

for

the

active

production,

products and has also stated its policy, most recently in
the Guidelines
the examination of State aid to
fisheries and aquaculture (5) (hereafter referred to as the
‘fisheries guidelines’). In the light of the Commission’s
considerable experience in applying those Articles to
SMEs
and
marketing of fisheries products, it is appropriate, with a
view to ensuring efficient supervision and simplifying
administration without weakening Commission moni­
toring, that the Commission should make use of the
powers conferred by Regulation (EC) No 994/98 also
for SMEs active in the production, processing and
marketing of fisheries products, in so far as Article 89
of
the Treaty has been declared applicable to such
products.

processing

The compatibility of State aid in the fisheries sector is
assessed by the Commission on the basis of
the
objectives of both the Competition Policy and the
Common Fisheries Policy (CFP).

Regulation

common market

it complies with the conditions

This Regulation should cover types of aid granted in the
fisheries sector which have been systematically approved
by the Commission for many years. This aid does not
its compatibility
require a case-by-case assessment of
from the Commission,
with the
provided that
laid
down in Council Regulation (EC) No 1198/2006 of
27 July 2006 on the European Fisheries Fund (6) and
Commission
of
26 March 2007 laying down detailed rules for the imple­
mentation of Council Regulation (EC) No 1198/2006 on
the European Fisheries Fund (7) and with certain other
conditions. Although Regulation (EC) No 1198/2006
has only been in force from 4 September 2006, the
existing
Commission has gained on the basis of
fisheries guidelines
sufficient experience in applying
similar conditions for the type of measures concerned
in order to establish that the conditions of that Regu­
lation are sufficiently accurate to justify not requiring
case-by-case assessment.

498/2007

(EC) No

(3)

The Commission has applied Articles 87 and 88 of the
Treaty in numerous decisions to SMEs active in the
fisheries
production, processing

and marketing of

(1) OJ L 142, 14.5.1998, p. 1.
(2) OJ C 248, 23.10.2007, p. 13.
(3) OJ L 10, 13.1.2001, p. 33. Regulation as last amended by Regu­

lation (EC) No 1976/2006 (OJ L 368, 23.12.2006, p. 85).

(4) OJ L 17, 21.1.2000, p. 22. Regulation as last amended by Regu­

lation (EC) No 1759/2006 (OJ L 335, 1.12.2006, p. 3).

(6)

This Regulation should be without prejudice to the possi­
bility for Member States of notifying aid to SMEs active
in the production, processing and marketing of fisheries
products. Such notifications should be assessed by the
Commission in the light of this Regulation and on the
basis of the fisheries guidelines.

(5) OJ C 229, 14.9.2004, p. 5.
(6) OJ L 223, 15.8.2006, p. 1.
(7) OJ L 120, 10.5.2007, p. 1.

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(7)

(8)

(9)

(10)

Aid that Member States intend to grant in the fisheries
sector but which does not fall within the scope of this
Regulation, or of other Regulations adopted pursuant to
Article 1 of Regulation (EC) No 994/98, should remain
subject to the notification requirement of Article 88(3) of
the Treaty. Such aid will be assessed in the light of this
Regulation and the fisheries guidelines.

(13)

it

In particular,

This Regulation should not apply to export-related
activities or aid favouring domestic over
imported
products.
should not apply to aid
financing the establishment and operation of a distri­
bution network in other countries. Aid towards the
cost of participating in trade fairs, or of studies or
consultancy services needed for the launch of a new or
existing product on a new market should not normally
constitute export aid.

This Regulation should exempt any aid that meets all the
requirements it lays down, and any aid scheme, provided
that any aid that could be granted under such scheme
meets all the relevant requirements of this Regulation.
Individual aid granted under an aid scheme and ad-hoc
aid should contain an express reference to this Regu­
lation.

In the interests of coherence with Community-financed
support measures, the ceilings of aid covered by this
Regulation should be equal to those fixed for the same
kind of aid in Annex II
to Regulation (EC) No
1198/2006.

It is essential that no aid is granted in circumstances
where Community law, and in particular rules of the
Common Fisheries Policy, are not complied with. An
aid can therefore only be granted by a Member State
in the fisheries sector if
the measures financed and
their
comply with Community law. Before
granting any aid, Member States should ensure that bene­
ficiaries of State aid comply with the rules of
the
Common Fisheries Policy.

effects

to

such

undertakings

(14) Aid granted to undertakings in difficulty within the
meaning of the Community guidelines on State aid for
rescuing and restructuring firms in difficulty (2) should be
assessed under those guidelines in order to avoid their
should
circumvention. Aid
therefore be excluded form the scope of this Regulation.
In order to reduce the administrative burden for Member
States, when granting aid covered by this Regulation, the
definition of what is to be considered as an undertaking
in difficulty should be simplified as compared to the
definition used in those guidelines. Moreover, SMEs are
incorporated since less than three years should not be
considered as being in difficulty for this period for the
purposes of this Regulation, unless it fulfils the criteria
under its domestic law for being the subject of collective
insolvency proceedings. These simplifications should be
without prejudice to the qualification of
these SMEs
under those guidelines as regards aid not covered by
this Regulation, which remains subject to the full defi­
nition provided for in those guidelines.

thresholds

(11) With a view to ensuring that aid is proportionate and
limited to the amount necessary,
should,
whenever possible, be expressed in terms of aid inten­
sities in relation to a set of eligible costs. For the purpose
of calculating aid intensities, aid payable in several
the
instalments should be discounted to its value at
moment of granting. The interest rate to be used for
discounting purposes
aid
and for
amount in aid not taking the form of a grant, should
be the reference rate applicable at the time of grant as
laid down in the Communication from the Commission
on the revision of the method for setting the reference
and discount rates (1).

calculating

the

(15)

subject

The Commission has to ensure that authorised aid does
not alter trading conditions in a way contrary to the
general interest. Therefore, aid in favour of a beneficiary
to an outstanding recovery order
which is
following a previous Commission decision declaring an
aid illegal and incompatible with the common market,
should be excluded from the scope of this Regulation. As
a consequence, any ad-hoc aid paid out to such a bene­
ficiary and any aid scheme not containing a provision
explicitly excluding such beneficiaries remains subject to
the notification requirements of Article 88(3) of
the
Treaty. This provision should not affect the legitimate
expectations of beneficiaries of aid schemes which are
not subject to outstanding recovery orders.

(12)

In view of the need to strike the appropriate balance
between minimising distortions of competition in the
it
aided sector and the objectives of
should not exempt
individual grants which exceed a
fixed maximum amount, whether or not made under
an aid scheme exempted by this Regulation.

this Regulation,

(16)

In order to eliminate differences that might give rise to
distortions of competition and to facilitate coordination
initiatives
between different Community and national
concerning SMEs, the definition of ‘small and medium-
sized enterprises’ used in this Regulation should be that
defined in Annex I to Regulation (EC) No 70/2001.

(1) OJ C 14, 19.1.2008, p. 6.

(2) OJ C 244, 1.10.2004, p. 2.

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(17)

For the purpose of transparency, equal treatment and
effective monitoring, this Regulation should apply only
to aid which is transparent. Transparent aid is aid for
which it
is possible to calculate precisely the gross
grant equivalent ex ante without a need to undertake a
risk assessment. Aid comprised in loans,
in particular,
should be considered as transparent where the gross
grant equivalent has been calculated on the basis of the
reference rate as laid down in the Communication from
the method for
the Commission on the revision of
rates (1). Aid
setting
and
reference
comprised in fiscal measures should be considered as
transparent where the measure provides
for a cap
ensuring that the applicable threshold is not exceeded.

discount

the

(18) Aid

should

schemes

comprised

in guarantee

be
considered as transparent when the methodology to
calculate the gross grant equivalent has been approved
following notification of
this methodology to the
Commission. The Commission will examine such notifi­
cations on the basis of the Commission Notice on the
application of Articles 87 and 88 of the EC Treaty to
State aid in the form of guarantees (2). Aid comprised in
guarantee schemes should also be considered as trans­
parent where the beneficiary is an SME and the gross
grant equivalent has been calculated on the basis of the
safe-harbour premiums laid down in Sections 3.3 and
3.5 of that Notice.

(19)

In view of
the difficulty in calculating the grant
equivalent of aid in the form of repayable advances,
such aid should be covered by this Regulation only if
the total amount of the repayable advance is inferior to
the applicable individual notification threshold and the
maximum aid intensities provided under this Regulation.

(20) Having regard to Article 87(3)(c) of

the

in order

the Treaty, aid
should not normally have the sole effect of continuously
or periodically reducing the operating costs which the
beneficiary would normally have to bear, and should
be proportionate to the handicaps that have to be
socioeconomic
to secure
overcome
benefits deemed to be in the Community interest. State
aid measures which simply seek to improve the financial
situation of producers but which in no way contribute to
the development of
the sector, and in particular aid
which is granted solely on the basis of price, quantity,
unit of production or unit of the means of production
are considered to constitute operating aid which are
incompatible with the common market. Furthermore,
such aid is also likely to interfere with the mechanisms
of
is
therefore appropriate to limit the scope of this Regu­

the common organisations of

the markets.

It

(21)

(22)

(23)

lation to aid for investments, as well as to aid for certain
socioeconomic measures.

In order to ensure that the aid is necessary and acts as an
incentive to develop certain activities,
this Regulation
should not apply to aid for activities in which the bene­
ficiary would already engage under market conditions
alone. Such incentive should be considered to be
present when, before the activities relating to the imple­
mentation of the aided project or activities are initiated,
the beneficiary has submitted an application to the
Member State.

In order to determine whether the individual notification
thresholds and the maximal aid intensities laid down in
this Regulation are respected, the total amount of public
support for the aided activity or project should be taken
into account,
is
regardless of whether
financed from local, regional, national or Community
sources.

support

that

This Regulation should cover the following aid: aid for
permanent and temporary cessation of fishing activities,
aid for the financing of socioeconomic measures, aid for
productive investments in aquaculture, aid for aqua-envi­
ronmental measures, aid for public health and animal
health measures, aid for inland fishing, aid for processing
and marketing of fisheries and aquaculture products, aid
for measures of common interest which are implemented
with the active support of operators themselves or by
organisations acting on behalf of producers or other
organisation recognised by the Member States, aid for
measures of common interest intended to protect and
develop aquatic fauna and flora while enhancing the
aquatic environment, aid for investments in public or
landing sites and fishing shelters,
private fishing ports,
aid for measures of common interest
intended to
implement a policy of quality and value enhancement,
development of new markets or promotional campaigns
fisheries and aquaculture products, aid for pilot
for
reassignment of
aid for modification for
projects,
fishing vessels, and aid for technical assistance.

framework

the Community
energy products

(24) When tax exemptions provided for in Article 14 of
Council Directive 2003/96/EC of 27 October 2003
the
restructuring
taxation of
are
the
applied equally to the whole
Commission considers that they may contribute to the
development of
the sector and serve the common
interest. These exemptions have been applied equally by
Member States and experience in the application of these
measures under Regulation (EC) No 1595/2004 has
these have not adversely affected trading
shown that

for
and electricity (3)
sector,

fisheries

(1) OJ C 14, 19.1.2008, p. 6.
(2) OJ C 155, 20.6.2008, p. 10.

(3) OJ L 283, 31.10.2003, p. 51. Directive as last amended by Directive

2004/75/EC (OJ L 157, 30.4.2004, p. 100).

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conditions and are helping in attaining the objectives of
the Common Fisheries Policy by assuring sustainable
economic and social conditions. Considering the trans­
parency of the measure, with the aid being calculated on
the actual amount of fuel used by the vessel, and in the
light of the fact that this regulation only applies to SMEs
and that the vast majority of fishing undertakings in the
European Union are SMEs (the majority of undertakings
benefiting from these tax exemptions are smaller enter­
prises owning just one vessel), the Commission considers
that such measures will not unduly distort competition
and affect trading conditions to an extent contrary to the
common interest. Consequently, such tax exemptions
should, as far as they constitute State aid, be declared
compatible with the common market and exempt from
the notification requirement of Article 88(3) of the EC
Treaty provided that they comply with those Directives
and that they are applicable to the whole fisheries sector.
this Regulation should also, under certain
Moreover,
conditions,
common
compatible with the
market and exempt from the notification requirement
of Article 88(3) of
tax exemptions or
the Treaty,
reductions applicable to inland fishing and piscicultural
works which Member States may introduce pursuant to
Article 15 of Council Directive 2003/96/EC.

declare

In order to ensure transparency and effective monitoring,
in accordance with Article 3 of Regulation (EC) No
994/98, it is appropriate to establish a standard format
in which Member States should provide the Commission
in pursuance of
with summary information whenever,
this Regulation, an aid scheme or individual aid is im­
plemented. The Commission will attribute an identifi­
cation number to each aid measure which is commu­
nicated to it. The fact that such number is attributed to
an aid measure does not imply that the Commission has
examined whether the aid fulfils the conditions of this
Regulation. It creates therefore no legitimate expectations
for the Member State or beneficiary as regards the com­
patibility of the aid measures with this Regulation.

For the same reasons, the Commission should establish
specific requirements as regards the form and the content
of the annual reports to be submitted to the Commission
by Member States. Moreover, it is appropriate to establish
rules concerning the records that Member States should
keep regarding the aid schemes and individual aid
exempted
in line with the
requirements laid down in Article 15 of Council Regu­
lation (EC) No 659/1999 of 22 March 1999 laying down
detailed rules for the application of Article 93 of the EC
Treaty (1).

this Regulation,

by

(25)

(26)

under

to provide

the measures

information within a

implemented
this Regulation. A failure of

the
concerning
the Member
benefit of
States
reasonable
deadline on these aid measures may therefore be
considered as an indication that the conditions of this
Regulation are not being respected. A failure by a
Member State to provide information allowing for moni­
toring of an aid measures may therefore lead the
Commission to decide that
the
relevant part of the Regulation, should be withdrawn as
regards
concerned and that all
subsequent aid measures,
including new individual aid
measures granted on the basis of aid schemes previously
covered by this Regulation, need to be notified to the
Commission in accordance with Article 88 of the Treaty.
As soon as the Member State has provided correct and
complete information, the Commission should allow the
Regulation to be fully applicable again.

the Regulation, or

the Member State

established for

(28) Having regard to the expiry date of Regulation (EC) No
1198/2006 and the fact that the conditions for granting
aid under this Regulation have been aligned with the
conditions
the
European Fisheries Fund,
it is appropriate to limit the
period of application of this Regulation to the date on
which Regulation (EC) No 1198/2006 expires. Should
this Regulation expire without being extended, aid
schemes already exempted by this Regulation should
continue to be exempted for six months.

application of

the

(29)

It is appropriate to lay down transitional provisions for
notifications pending on the date of entry into force of
this Regulation and for aid which was granted before the
entry into force of this Regulation and was not notified
in breach of the obligation in Article 88(3) of the Treaty,
as well as for aid fulfilling the conditions of Commission
Regulation (EC) No 1595/2004 of 8 September 2004 on
the application of Articles 87 and 88 of the EC Treaty to
State aid to small and medium-sized enterprises active in
the production, processing and marketing of
fisheries
products (2),

HAS ADOPTED THIS REGULATION:

CHAPTER 1

COMMON PROVISIONS

Article 1

Scope

(27)

In order to monitor the implementation of this Regu­
lation, the Commission should also be in a position to
obtain all necessary information from Member States

This Regulation shall apply to transparent aid granted to
(SMEs) active in the

1.
small and medium-sized enterprises
production, processing or marketing of fisheries products.

(1) OJ L 83, 27.3.1999, p. 1. Regulation as last amended by Regulation

(EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(2) OJ L 291, 14.9.2004, p. 3.

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2.

This Regulation shall not apply to:

for an indefinite period of time and/or for an indefinite
amount;

(a) aid the amount of which is fixed on the basis of price or

quantity of products put on the market;

(c)

‘individual aid’ means ad-hoc aid and notifiable awards of
aid on the basis of an aid scheme;

(b) aid to export-related activities, namely aid directly linked to
the quantities exported, to the establishment and operation
of a distribution network or to other current expenditure
linked to the export activity;

(d)

‘ad-hoc aid’ means individual aid not awarded on the basis
of an aid scheme;

(c) aid contingent upon the use of domestic over imported

goods;

(d) aid granted to undertakings in difficulty;

(e) aid schemes which do not explicitly exclude the payment of
individual aid in favour of an undertaking which is subject
to an outstanding recovery order
following a previous
Commission decision declaring an aid illegal and incom­
patible with the common market;

(e)

(f)

(g)

‘aid intensity’ means
percentage of the eligible costs;

the aid amount expressed as a

‘fisheries product’ means both products caught at sea or in
inland waters and the products of aquaculture listed in
Article 1 of Regulation (EC) No 104/2000;

‘small and medium-sized enterprises’ (‘SMEs’) means small
and medium-sized enterprises as defined in Article 2 (7) of
Commission Regulation (EC) No …/2008 of 2 July 2008
on the application of Articles 87 and 88 of the Treaty
declaring certain categories of aid compatible with the
common market (1);

(f) ad-hoc aid in favour of an undertaking which is subject to
an outstanding recovery order
a previous
Commission decision declaring an aid illegal and incom­
patible with the common market.

following

(h) ‘transparent aid’ means aid in respect of which it is possible
to calculate precisely the gross grant equivalent ex ante
without need to undertake a risk assessment;

3.
This Regulation shall not apply to aid for individual
projects with eligible expenses in excess of EUR 2 million, or
where the amount of aid exceeds EUR 1 million per beneficiary
per year.

(i)

‘undertaking in difficulty’ means an undertaking fulfilling the
following conditions:

Article 2

Definitions

For the purpose of this Regulation the following definitions
shall apply:

(a)

‘aid’ means any measure fulfilling all the criteria laid down
in Article 87(1) of the Treaty;

— in the case of a limited liability company, where more
than half of its registered capital has disappeared and
more than one-quarter of that capital has been lost over
the preceding 12 months, or

— in the case of a company where at least some members
have unlimited liability for the debt of the company,
where more than half of its capital as shown in the
company accounts has disappeared and more than one
quarter of that capital has been lost over the preceding
12 months, or

(b) ‘aid scheme’ means any act on the basis of which, without
further implementing measures being required,
individual
aid awards may be made to undertakings defined within
the act in a general and abstract manner and any act on
the basis of which aid which is not linked to a specific
project may be awarded to one or several undertakings

— whatever the type of company concerned, where it
fulfils the criteria under its domestic law for being the
subject of collective insolvency proceedings.

(1) OJ L …, … 2008, p. …

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Article 3

Conditions for exemption

1.
Ad-hoc aid, fulfilling all the conditions of this Regulation,
shall be compatible with the common market within the
meaning of Article 87(3)(c) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of the Treaty
provided that
in
Article 25(1) has been submitted and that the aid contains an
express reference to this Regulation, by citing its title and publi­
cation reference in the Official Journal of the European Union.

the summary information provided for

2.
Aid schemes fulfilling all the conditions set out in this
Regulation shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall
be exempt from the notification requirement of Article 88(3) of
the Treaty provided that the summary information provided for
in Article 25(1) has been submitted, that any individual aid that
could be awarded under such scheme fulfils all the conditions of
this Regulation, and that
the scheme contains an express
reference to this Regulation, by citing its title and publication
reference in the Official Journal of the European Union.

3.
Individual aid granted under a scheme referred to in
paragraph 2 shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall
be exempt from the notification requirement of Article 88(3) of
the Treaty provided that the aid granted directly fulfils all the
conditions of this Regulation that the summary information
provided for in Article 25(1) has been submitted and that the
individual aid measure contains an express reference to this
Regulation, by citing its title and publication reference in the
Official Journal of the European Union.

4.
Before granting any aid under this Regulation, Member
States shall verify that the measures financed and their effects
comply with Community law.

5.
Aid measures shall only be exempted under this Regu­
lation as far as they explicitly provide that, during the grant
period the beneficiaries of the aid shall comply with the rules of
the Common Fisheries Policy and that, if during this period it is
found that the beneficiary does not comply with rules of the
the grant must be reimbursed in
Common Fisheries Policy,
proportion to the gravity of the infringement.

Article 4

Aid intensity and eligible costs

For the purpose of calculating aid intensity, all figures
1.
tax or other
used shall be taken before any deduction of
charge. Where aid is awarded in a form other than a grant,
the aid amount shall be the grant equivalent of the aid. Aid
payable in several instalments shall be discounted to its value at
the moment of granting. The interest rate to be used for
discounting purposes shall be the reference rate applicable at

the time of grant. In cases where aid is awarded by means of tax
exemptions or reductions in future taxes due, subject to respect
of a certain aid intensity defined in gross grant equivalent,
discounting of aid tranches takes place on the basis of the
reference rates applicable at the various times the tax advantages
become effective.

2.
The eligible costs shall comply with the requirements of
Article 55, paragraphs (2) and (5), of Regulation (EC) No
1198/2006 and Article 26 of Regulation (EC) No 498/2007
and be supported by documentary evidence which shall be
clear and itemised.

Article 5

Transparency of aid

1.
In
This Regulation shall apply only to transparent aid.
particular, the following types of aid shall be considered to be
transparent:

(a) direct grants and interest rate subsidies;

(b) aid comprised in loans where the gross grant equivalent has
been calculated on the basis of the reference rates prevailing
at
the
existence of normal security and/or abnormal risk associated
with the loan;

the grant and taking into account

the time of

(c) aid comprised in guarantee schemes:

— where the methodology to calculate the gross grant
equivalent has been accepted following notification of
this methodology
the
approved methodology explicitly addresses the type of
guarantees and the type of underlying transactions at
stake in the context of the application of this Regu­
lation, or

the Commission

and

to

— where the gross grant equivalent has been calculated on
the basis of the safe-harbour premiums laid down in the
Commission Notice on the application of Articles 87
and 88 of the EC Treaty to State aid in the form of
guarantees;

(d) aid comprised in fiscal measures shall be considered as
cap

transparent when the measures provides
ensuring that the applicable ceiling is not exceeded.

for

a

The following types of aid shall not be considered to be

2.
transparent:

(a) aid comprised in capital injections;

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(b) aid comprised in risk capital measures.

been adopted before work on the aided project or activity has
started.

Aid in the form of repayable advances shall only be
3.
the total amount of
considered to be transparent aid if
repayable advance does not exceed the applicable threshold
under this Regulation. If the threshold is expressed in terms
of aid intensity, the total amount of the repayable advance,
expressed as a percentage of
the eligible costs, shall not
exceed the applicable aid intensity.

Article 6

Cumulation

the

In determining whether

1.
individual notification
thresholds laid down in Article 1(3) and the maximum aid
the total
intensities laid down in Chapter 2 are respected,
amount of public support measures for the aided activity or
project shall be taken into account, regardless of whether that
support is financed from local, regional, national or Community
sources.

2.
Aid exempted under this Regulation may be cumulated
with any other aid exempted under this Regulation as long as
those aid measures concern different identifiable eligible costs.

Aid exempted under

3.
this Regulation shall not be
cumulated with any other aid exempted under this Regulation
or de minimis aid fulfilling the conditions
laid down in
Commission Regulation (EC) No 875/2007 (1) or with other
Community funding in relation to the same — partly or fully
overlapping — eligible costs if such cumulation would result in
exceeding the highest aid intensity or aid amount applicable to
that aid under this Regulation.

Article 7

Incentive effect

This Regulation shall only exempt aid which has an

1.
incentive effect.

2.
Aid shall be considered to have an incentive effect if it
enables the beneficiary to carry out activities or projects which
it would not have carried out as such in the absence of the aid.

This condition shall be considered to have been fulfilled if,
before work on the project or activity has started, the bene­
ficiary has submitted an application for the aid to the Member
State concerned.

The condition laid down in paragraph 2 shall not apply as
3.
regards fiscal measures establishing a legal right
to aid in
accordance with objective criteria and without further exercise
of discretion by the Member State if those fiscal measures have

(1) OJ L 193, 25.7.2007, p. 6.

If the conditions of paragraphs 1 to 3 are not fulfilled, the
4.
entire aid measure will not be exempted under this Regulation.

CHAPTER 2

CATEGORIES OF AID

Article 8

Aid for permanent cessation of fishing activities

Aid for the permanent cessation of fishing activities of fishing
vessels shall be compatible with the common market within the
meaning of Article 87(3)(c) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of the Treaty
provided that:

(a)

the aid fulfils the conditions of Article 23 of Regulation (EC)
No 1198/2006 and Article 4 of Regulation (EC) No
498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 9

Aid for temporary cessation of fishing activities

Aid for temporary cessation of fishing activities for fishers and
owners of fishing vessels shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of the Treaty provided that:

exempt

(a)

the aid fulfils the conditions of Article 24 of Regulation (EC)
No 1198/2006; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 10

Aid for socioeconomic compensation for the management
of the fleet

Aid for the financing of socioeconomic measures shall be
compatible with the common market within the meaning of
Article 87(3)(c) of the Treaty and shall be exempt from the
notification requirement of Article 88(3) of
the Treaty
provided that:

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(a)

the aid fulfils the conditions of Articles 26(3) and 27 of
Regulation (EC) No 1198/2006 and Article 8 of Regulation
(EC) No 498/2007; and

notification requirement of Article 88(3) of
provided that:

the Treaty

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 11

Aid for productive investments in aquaculture

investments

Aid for productive
shall be
compatible with the common market within the meaning of
Article 87(3)(c) of the Treaty and shall be exempt from the
the Treaty
notification requirement of Article 88(3) of
provided that:

in aquaculture

(a)

the aid fulfils the conditions of Articles 28 and 29 of Regu­
lation (EC) No 1198/2006 and Articles 9 and 10 of Regu­
lation (EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 12

Aid for aqua-environmental measures

Aid for compensation for the use of aquaculture production
methods helping to protect and improve the environment and
conserve nature shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 28 and 31 of Regu­
lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 14

Aid for animal health measures

Aid for animal health measures shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 28 and 32 of Regu­
lation (EC) No 1198/2006 and Article 12 of Regulation
(EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 15

Aid for inland fishing

Aid for inland fishing shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of the Treaty provided that:

exempt

(a)

the aid fulfils the conditions of Articles 28 and 30 of Regu­
lation (EC) No 1198/2006 and Article 11 of Regulation
(EC) No 498/2007; and

(a)

the aid fulfils the conditions of Article 33 of Regulation (EC)
No 1198/2006 and Article 13 of Regulation (EC) No
498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 13

Aid for public health measures

Aid for compensation to mollusc farmers for the temporary
suspension of harvesting of farmed mollusc shall be compatible
with
of
Article 87(3)(c) of the Treaty and shall be exempt from the

common market within

the meaning

the

Article 16

Aid for processing and marketing

Aid for processing and marketing of fisheries products shall be
compatible with the common market within the meaning of
Article 87(3)(c) of the Treaty and shall be exempt from the
notification requirement of Article 88(3) of
the Treaty
provided that:

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(a)

the aid fulfils the conditions of Article 34 and 35 of Regu­
lation (EC) No 1198/2006 and Article 14 of Regulation
(EC) No 498/2007; and

market within the meaning of Article 87(3)(c) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty provided that:

exempt

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

(a)

the aid fulfils the conditions of Articles 36 and 39 of Regu­
lation (EC) No 1198/2006 and Article 17 of Regulation
(EC) No 498/2007; and

Article 17

Aid for collective actions

Aid for measures of common interest which are implemented
with the active support of operators themselves or by organi­
sations acting on behalf of producers or other organisation
recognised by the Member States shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 36 and 37 of Regu­
lation (EC) No 1198/2006 and Article 15 of Regulation
(EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 20

Aid for development of new markets and promotional
campaigns

Aid for measures of common interest intended to implement a
policy of quality and value enhancement, development of new
markets or promotional campaigns for fisheries and aquaculture
products shall be compatible with the common market within
the Treaty and shall be
the meaning of Article 87(3)(c) of
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

Article 18

(a)

the aid fulfils the conditions of Articles 36 and 40 of Regu­
lation (EC) No 1198/2006 and Article 18 of Regulation
(EC) No 498/2007; and

Aid for measures intended to protect and develop aquatic
fauna and flora

Aid for measures of common interest intended to protect and
develop aquatic fauna and flora while enhancing the aquatic
environment shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall
be exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 36 and 38 of Regu­
lation (EC) No 1198/2006 and Article 16 of Regulation
(EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 19

Aid for investments in fishing ports,

landing sites and

shelters

Aid for investments in public or private fishing ports, landing
sites and fishing shelters shall be compatible with the common

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 21

Aid for pilot projects

Aid for pilot projects shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty
and shall be exempt
from the notification requirement of
Article 88(3) of the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 36 and 41 of Regu­
lation (EC) No 1198/2006 and Article 19 of Regulation
(EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

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Article 22

Aid for modification for reassignment of fishing vessels

Aid for modification for reassignment of fishing vessels, under
the flag of a Member State and registered in the Community for
training or research purposes inside the fisheries sector or for
other activities outside fishing shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a)

the aid fulfils the conditions of Articles 36 and 42 of Regu­
lation (EC) No 1198/2006 and Article 20 of Regulation
(EC) No 498/2007; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 23

Aid for technical assistance

technical assistance shall be compatible with the
Aid for
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a)

the aid fulfils the conditions of Article 46(2) and (3) of
Regulation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in grant equivalent,
the total rate of public contributions fixed by Annex II to
Regulation (EC) No 1198/2006.

Article 24

Tax exemptions in accordance with Directive 2003/96/EC

1.
Tax exemptions applicable to the whole fishing sector
which Member States introduce pursuant to and in accordance
with Article 14 of Directive 2003/96/EC shall, to the extent that
they constitute State aid, be compatible with the common
market and exempt
from the notification requirement of
Article 88(3) of the Treaty.

Environmental aid in the form of

2.
tax exemptions or
reductions applicable to inland fishing and piscicultural works
which Member States introduce pursuant
to Article 15 of
Directive 2003/96/EC shall be compatible with the common
from the notification requirement of
market and exempt
Article 88(3) of
it shall not be
the Treaty, provided that
granted for periods longer than 10 years. After this 10-year
period, Member States shall re-evaluate the appropriateness of
the aid measures concerned.

the tax reduction shall pay at
The beneficiary of
Community minimum tax level set by that Directive.

least

the

CHAPTER 3

COMMON AND FINAL PROVISIONS

Article 25

Transparency and monitoring

1.
On the entry into force of an aid scheme or the awarding
of an ad-hoc aid, which has been exempted pursuant to this
Regulation, the Member State shall forward to the Commission
a summary of the information regarding such aid measure. This
information shall be provided in electronic form via the estab­
lished Commission IT application,
in the form laid down in
Annex I.

The Commission shall acknowledge the receipt of the above
summary without delay.

The summaries provided by the Member States pursuant to
the
paragraph 1 shall be published in the Official
European Union and on the Commission’s website.

Journal of

an ad-hoc

Upon the entry into force of an aid scheme or the
2.
awarding of
aid, which has been exempted
pursuant to this Regulation, the Member State concerned shall
publish on the Internet the full text of such aid measure, indi­
cating the criteria and conditions under which such aid is
the granting authority. The
granted and the identity of
Member State concerned shall ensure that the full text of the
aid measure is accessible on the Internet as long as the aid
measure concerned is in force. The summary information
to
provided by
paragraph 1 shall specify an Internet address leading directly
to the full text of the aid measure. This Internet address shall
also be contained in the annual report submitted pursuant to
paragraph 4.

concerned pursuant

the Member State

3. When granting individual aid exempted pursuant to this
Regulation, with the exception of aid taking the form of fiscal
measures, the aid granting act shall contain an explicit reference
to the specific provisions of this Regulation concerned by this
act, to the national law which ensures respect of the relevant
provisions of
this Regulation and to the Internet address
referred to in paragraph 2.

4.
In accordance with Chapter III of Commission Regulation
(EC) No 794/2004 (1), Member States shall compile a report in
electronic form on the application of this Regulation in respect
of each whole year or each part of the year during which this
Regulation applies.

(1) OJ L 140, 30.4.2004, p. 1.

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5. Member States shall maintain detailed records regarding
any ad-hoc aid or individual aid granted under an aid scheme
exempted under this Regulation. Such records shall contain all
information necessary to establish that the conditions laid down
including information on the
in this Regulation, are fulfilled,
to aid or a
status of any undertaking whose entitlement
bonus depends on its status as an SME,
information on the
incentive effect of aid and information making it possible to
establish the precise amount of eligible costs for the purpose of
applying this Regulation.

6.
Records regarding individual aid shall be maintained for
10 years from the date on which the aid was granted. Records
regarding an aid scheme shall be maintained for 10 years from
the date on which the last aid was granted under such scheme.

The Commission shall regularly monitor aid measures of

7.
which it has been informed pursuant to paragraph 1.

8.
On written request, the Member State concerned shall
provide the Commission within the period fixed in the
the information which the Commission
request, with all
considers necessary to monitor the application of this Regu­
lation.

the Commission shall

If, despite such reminder,

If such information is not provided within that period or a
send a
commonly agreed period,
reminder setting a new deadline for the submission of
the
the Member State
information.
concerned does not provide the information requested,
the
Commission may, after having provided the Member State
concerned with the possibility to make its views known,
adopt a decision stating that all future individual aid measures
adopted on the basis of the scheme are to be notified to the
Commission.

Article 26

Transitional provisions

1.
Notifications pending at the time of entry into force of
this Regulation shall be assessed in accordance with its
provisions. Where the conditions of this Regulation are not
fulfilled, the Commission shall examine such pending notifi­
cations under the Community guidelines for State aid in the
fisheries sector.

Aid notified before the entry into force of this Regulation or
granted before that date in the absence of a Commission auth­
the notification requirement of
orisation and in breach of
Article 88(3) of
the Treaty, shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt if it fulfils the conditions laid down
in Article 3 of this Regulation, except the requirement of citing
the Regulation and the Commission identification number. Any
aid which does not fulfil those conditions shall be assessed by
the Commission in accordance with the relevant frameworks,
guidelines, communications and notices.

2.
Aid schemes exempted under this Regulation shall remain
exempt during an adjustment period of six months following
the date provided for in the second paragraph of Article 27.

Article 27

Entry into force and applicability

This Regulation shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

It shall apply until 31 December 2013.

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

Done at Brussels, 22 July 2008.

For the Commission

Joe BORG
Member of the Commission

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ANNEX I

Form of summary information to be provided whenever an aid scheme exempted by this Regulation is
implemented and whenever an ad-hoc aid exempted by this Regulation is granted outside any aid scheme

1. Member State:

2. Region/Authority granting the aid:

3. Title of aid scheme/name of company receiving an ad-hoc aid:

4. Legal basis:

5. Annual expenditure planned under the scheme or amount of ad-hoc aid granted:

6. Maximum aid intensity:

7. Date of entry into force:

8. Duration of the scheme or individual aid award (not later than 30. June 2014); indicate:

— under the scheme: the date until which aid may be granted:

— in the case of an ad-hoc aid: the expected date of the last instalment to be paid:

9. Objective of aid:

10. Indicate which of Articles 8 to 24 is used:

11. Activity concerned:

12. Name and address of the granting authority:

13. Web address where the full text of the scheme or the criteria and conditions under which ad-hoc aid is granted

outside of an aid scheme can be found:

14. Motivation: indicate why a State aid scheme has been established instead of assistance under the European Fisheries

Fund:

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ANNEX II

Periodic report form to be completed and notified to the Commission

For their reporting obligations to the Commission under group exemption regulations adopted on the basis of Council
Regulation (EC) No 994/98, Member States shall provide the information mentioned below concerning all aid measures
covered by this Regulation, in computerised form, in the format communicated by the Commission to the Member States.

1. Member State:

2. Title:

3. Aid number:

4. Year of expiry:

5. Objective of the aid:

6. Number of beneficiaries:

7. Category of aid (e.g. direct grant, loan with reduced interest rate, etc.):

8. Total annual expenditure:

9. Remarks: