Proposal for a Council Regulation amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union
Date: 2009-10-02
Institutions: European Commission
Subjects: agricultural product, aid system, aid to agriculture, peripheral region, regional aid, supply

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.10.2009 
COM(2009) 510 final 

2009/0138 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in 
the outermost regions of the Union 

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EXPLANATORY MEMORANDUM 

On 30 January 2006 the Council adopted Regulation (EC) No 247/2006 laying down specific 
measures for agriculture in the outermost regions of the Union. 

The  development  in  Community  legislation  and  the  practical  implementation  of  this 
Regulation occurred in the meantime require the amendment of some of its provisions. 

Following the reform of the common organisation of the market of sugar, incorporated in the 
single CMO by Council Regulation (EC) No 1234/2007, Article 5 should be updated so that it 
reflects these new provisions and allows the Azores to integrate raw cane sugar in its forecast 
supply balance. In the past marketing years, the sugar beet production in the Azores was not 
sufficient to allow its sugar industry to fulfil their allocated quota and no significant quantities 
of raw beet sugar were available on the market. This amendment will improve their situation 
by allowing them to import raw cane sugar (within the limit of the forecast supply balance). 

In  the  context  of  the  current  economic  crisis,  it  seems  appropriate  to  allow  for  the 
prolongation  of  the  derogation  set  for  the  Canary  islands  for  the  supply  within  the  specific 
supply arrangements of milk-based preparations falling within CN code 1901 90 99. In fact, 
this product is a basic element of the traditional local alimentation and the viability of a local 
industry processing depends on its availability at competitive prices. 

Article  12(f)  of  Regulation  (EC)  No  247/2006  refers  to  provisions  for  checks  and 
administrative  penalties,  among  other  issues  to  be  included  in  the  Community  support 
programmes  for  the  outermost  regions  that  are  to  be  submitted  by  Member  States  to  the 
Commission for approval. In the light of the experience gained by the Commission, to ensure 
that the Community support programmes are implemented effectively and appropriately, it is 
necessary  to  remove  references  in  point  (f)  of  Article  12  of  that  Regulation  to  checks  and 
administrative penalties. However, such national measures will continue to be communicated 
to the Commission in accordance with Article 27 of that Regulation. 

Following the wine reform of 2008 and the recent integration of the wine CMO into the single 
CMO,  Article  18  needs  to  be  updated  to  reflect  the  new  provisions  of  Council  Regulation 
(EC) No 1234/2007 as amended by Regulation (EC) No 491/2009. 

Finally,  the  specific  conditions  of  the  French  overseas  department  of  Reunion,  where  milk 
production is made very difficult by its topography and small size while the supply of fresh 
milk is impossible due to its insularity and distance from other producing regions, allow for 
an extension of the derogation already granted for similar reasons to Madeira to reconstitute 
milk  powder  in  order  to  obtain  UHT  milk  for  human  consumption  [1st  paragraph  of 
Article 19(4)]. Moreover, due to the low level of production of fresh milk in these outermost 
regions, to the difficulties to increase it and to the fact that the locally produced milk already 
finds  sufficient  outlet  in  the  local  dairy  industry,  which  is  equally  to  be  supported,  it  is 
appropriate  to  delete  the  obligation  for  the  Commission  to  adopt  detailed  rules  determining 
the quantity of locally produced fresh milk to be incorporated into the reconstituted UHT milk 
referred to above [2nd paragraph of Article 19(4)]. 

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In this respect, please find enclosed a proposal for a Council Regulation amending Regulation 
(EC) No 247/2006 and all necessary documents for the initiation of the respective procedure. 

The  Regulation  does  not  affect  the  sources  of  financing  or  the  intensity  of  Community 
support. 

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2009/0138 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in 
the outermost regions of the Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 36, 37 and 299(2) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

Article 5(1) of Council Regulation (EC) No 247/20063 ensures exemption, within the 
limit of the forecast supply balance, from import duties for the supply of C sugar to the 
Azores, Madeira and the Canary Islands for the period laid down in Article 10(1) of 
Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation 
of the markets in the sugar sector4. Following the sugar reform and the integration of 
the  sugar  sector  in  Council  Regulation  (EC)  No 1234/2007  of  22 October  2007 
establishing a common organisation of agricultural markets and on specific provisions 
for  certain  agricultural  products  (Single  CMO  Regulation)5,  the  provisions  of 
Article 5(1)  of  Regulation  (EC)  No  247/2006  should  be  adapted.  In  particular,  the 
Azores should be authorised to benefit from the exemption from import duties for raw 
cane sugar within the limit of their forecast supply balance. 

Article  6  of  Regulation  (EC)  No  247/2006  provides  for  a  transitional  period  during 
which the Canary Islands may continue to receive supplies of determined quantities of 
milk-based preparations falling within CN codes 1901 90 99 and 2106 90 92 intended 
for industrial processing. This transitional period expires on 31 December 2009. The 
product falling within CN code 1901 90 99 – skimmed milk powder with vegetable fat 
– is a traditional product for the local consumers, including the most deprived, and has 
been sold in the Canary Islands during the last 40 years. The supply of this product has 
generated  a  specific  local  industry  ensuring  employment  and  added  value.  In  the 
current  situation  of  economic  crisis  it  is  appropriate  to  maintain  the  supply  of  this 

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OJ C , , p. . 
OJ C , , p. . 
OJ L 42, 14.2.2006,p. 1. 
OJ L 178, 30.6.2001, p. 1. 
OJ L 299, 16.11.2007, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

specific  product  and  to  extend  the  transitional  period  set  by  Article  6  of  that 
Regulation to 31 December 2013. 

Article  12(f)  of  Regulation  (EC)  No  247/2006  refers  to  provisions  for  checks  and 
penalties in the Community support programmes for the outermost regions that are to 
be  submitted  by  Member  States  to  the  Commission  for  approval.  In  the  light  of  the 
experience  gained  by  the  Commission  and  in  order  to  ensure  that  the  Community 
support programmes are implemented effectively and appropriately, it is necessary to 
remove references in point (f) of Article 12 of that Regulation to checks and penalties. 
However,  such  national  measures  will  continue  to  be  communicated  to  the 
Commission in accordance with Article 27 of that Regulation. 

Article  18  of  Regulation  (EC)  No  247/2006  determines  rules  concerning  the 
applicability of special rules for the wine sector in the outermost regions of the Union. 
The  common  organisation  of  the  market  in  wine  has  been  modified  by  Council 
Regulation  (EC)  No  479/20086  and  successively  integrated  into  Regulation  (EC) 
No 1234/2007  as  amended  by  Regulation  (EC)  No  491/20097.  References  to  these 
measures  need  therefore  to  be  updated.  Furthermore,  Article  85u(7)  of  Regulation 
(EC)  No  1234/2007  includes  an  explicit  exemption  for  the  Azores,  Madeira  and  the 
Canary Islands from the grubbing-up scheme. Therefore, such an exemption needs no 
longer to be mentioned in Regulation (EC) No 247/2006. 

The  second  subparagraph  of  Article  18(2)  of  Regulation  (EC)  No  247/2006  foresees 
gradual  elimination,  by  31  December  2013,  of  vineyards  planted  with  prohibited 
direct-producer  hybrid  vine  varieties  in  the  Azores  and  Madeira.  The  third 
subparagraph of Article 18(2) of that Regulation obliges Portugal to notify each year 
progress made in converting and restructuring areas planted with such vine varieties. 
These provisions are stricter than the rules laid down in Article 120a(5) of Regulation 
(EC) No 1234/2007, namely that prohibited direct-producer hybrid vine varieties shall 
be  grubbed  up  except  when  the  resulting  wine  is  intended  exclusively  for  the  wine 
producers' family. Therefore Article 18(2) and 18(3) of Regulation (EC) No 247/2006 
should be deleted in order to eliminate the disparity of treatment between the regions 
of the Azores and Madeira on one hand and the rest of the Community on the other. 

Despite  the  recent  development  of  the  local  milk  production  in  Reunion,  the  current 
need  for  drinking  milk  consumption  on  the  island  is  not  sufficiently  covered. 
Moreover, the remoteness and insularity of this region do not allow other sources of 
raw  milk.  Consequently,  the  authorisation  to  produce  reconstituted  UHT  milk  from 
milk  powder  of  Community  origin,  granted  to  Madeira  by  the  first  subparagraph  of 
Article  19(4)  of  Regulation  (EC)  No  247/2006,  should  be  extended  to  the  French 
overseas department of Reunion. 

The  conditions  for  further  extension  of  the  local  milk  production  of  the  outermost 
regions,  which  benefit  from  the  waiver  foreseen  by  the  first  subparagraph  of 
Article 19(4) of Regulation (EC) No 247/2006, are very limited due to the topography 
of the islands concerned. Though the obligation to ensure the collection and outlet of 
the  local  milk  production  is  maintained,  it  is  appropriate  to  delete  the  Commission's 

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OJ L 148, 6.6.2008, p. 1. 
OJ L 154, 17.6.2009, p. 1. 

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obligation,  foreseen  by  the  second  subparagraph  of  that  Article,  to  determine  an 
incorporation rate for fresh milk produced locally. 

(8) 

Regulation (EC) No 247/2006 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 247/2006 is amended as follows: 

(1) 

Article 5 is replaced by the following: 

"Article 5 

Sugar 

1.  During  the  period  laid  down  in  Article  204(2)  and  (3)  of  Council  Regulation 
(EC)  No  1234/2007*,  the  following  sugar  produced  in  excess  of  the  quota 
referred  to  in  Article  61  of  that  Regulation  shall  be  exempted  from  import 
duties within the limit of the forecast supply balance referred to in Article 2 of 
this Regulation: 

(a)  brought for consumption to Madeira or the Canary Islands in the form of 

white sugar falling within CN code 1701; 

(b) 

refined  and  consumed  in  the  Azores  in  the  form  of  raw  sugar  falling 
within CN code 1701 12 10 (raw beet sugar). 

2. 

In  the  Azores,  for  the  purpose  of  refining,  the  quantities  referred  to  in 
paragraph  1  may  be  supplemented,  within  the  limit  of  the  forecast  supply 
balance, by raw sugar falling within code 1701 11 10 (raw cane sugar). When 
determining  raw  sugar  requirements  of  the  Azores,  account  shall  be  taken  of 
the  development  of  local  production  of  sugar  beet.  The  quantities  covered  by 
the  supply  arrangements  shall  be  determined  so  as  to  ensure  that  the  total 
volume  of  sugar  refined  in  the  Azores  each  year  does  not  exceed  10 000 
tonnes. 

* 

OJ L 299, 16.11.2007, p. 1." 

(2) 

Article 6 is replaced by the following: 

"Article 6 

Milk-based preparations 

By  way  of  derogation  from  Article  2,  for  the  period  from  1  January  2010  to 
31 December 2013 the Canary Islands may continue to receive supply of milk-based 
preparations  falling  within  CN  code  1901 90 99  (skimmed  milk  powder  with 
vegetable  fat)  intended  for  industrial  processing  of  up  to  800  tonnes  per  year.  Aid 

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granted for supplies of this product from the Community may not exceed EUR 210 
per  tonne  and  shall  be  included  in  the  limit  laid  down  in  Article  23.  This  product 
shall be used for local consumption only." 

(3) 

In Article 12, point (f) is replaced by the following: 

"(f) 

the  steps  taken  to  ensure  the  programmes  are  implemented  effectively  and 
appropriately,  including  the  arrangements  for  publicity,  monitoring  and 
evaluation,  and  a  specified  set  of  quantified  indicators  for  use  in  programme 
evaluation." 

(4) 

Article 18 is replaced by the following: 

"Article 18 

Wine 

1.  Measures  referred  to  in  Articles  103v,  103w,  103x  and  182a  of  Regulation 

(EC) No 1234/2007 shall not apply to the Azores and Madeira. 

2.  Notwithstanding  Article  120a(2)  of  Regulation  (EC)  No  1234/2007,  grapes 
from prohibited direct-producer hybrid vine varieties (Noah, Othello, Isabelle, 
Jacquez, Clinton and Herbemont) harvested in the Azores and Madeira may be 
used for the production of wine which must remain within those regions. 

3.  Measures  referred  to  in  Articles  103v,  103w  and  103y  of  Regulation  (EC) 

No 1234/2007 shall not apply to the Canary Islands." 

(5) 

Article 19(4) is replaced by the following: 

"4.  Notwithstanding  Article  114(2)  of  Regulation  (EC)  No  1234/2007,  the 
production  in  Madeira  and  in  the  French  overseas  department  of  Reunion  of 
UHT milk reconstituted from milk powder originating in the Community shall 
be  authorised  within  the  limits  of  local  consumption  requirements,  insofar  as 
this measure does not hinder that locally produced milk is collected and finds 
outlets. This product shall be used for local consumption only. 

Detailed  rules  for  the  application  of  this  paragraph  shall  be  adopted  in 
accordance with the procedure referred to in Article 26(2) of this Regulation." 

Article 2 

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

It shall apply from 1 January 2010. 

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

Done at Brussels,  

For the Council 
The President 

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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 11 04 & 05 03 02 50 

Fiche Fin n° 199728 
RVE/dz 
6.13.2009.1 
DATE: 17/7/2009  
APPROPRIATIONS: 
EUR 235 Mio & 
EUR 377 Mio 

TITLE: 
Proposal for a Council Regulation amending Regulation (EC) No 247/2006 laying down specific 
measures for agriculture in the outermost regions of the Union 
LEGAL BASIS: 
Art. 36, 37 and 299(2) of the Treaty 
AIMS: 
Update and adaptation of certain provisions of Regulation (EC) No 247/2006 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
2009 
(EUR million) 
- 

FOLLOWING 
FINANCIAL 
YEAR 
2010 
(EUR million) 
- 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
(1) 

5.1  REVENUE 

- 

- 

- 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

- 

2011 
(1) 
(1) 

2012 
(1) 
(1) 

2013 
(1) 
(1) 

2014 
(1) 
(1) 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

YES NO 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

YES NO 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 
(1) These programs have a high level of execution. As the proposed modifications to Council Regulation (EC) 
No 247/2006 do not change the annual ceiling amounts for the financing of the specific supply arrangements 
and of the measures in favour of local production, there is no budgetary impact. 

YES NO 
YES NO 

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