Proposal for a REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down specific measures for agriculture in the outermost regions of the Union
Date: 2010-09-24
Institutions: European Commission
Subjects: agricultural product, aid system, aid to agriculture, peripheral region, regional aid, supply

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EUROPEAN COMMISSION 

Brussels, 24.9.2010 
COM(2010) 498 final 

2010/0256 (COD) 

Proposal for a 

REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

laying down specific measures for agriculture in the outermost regions of the Union 

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EXPLANATORY MEMORANDUM 

1. 

ALIGNMENT  WITH  THE  TREATY  ON  THE  FUNCTIONING  OF  THE  EUROPEAN  UNION 
(TFEU). 

The  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  makes  a  clear  distinction 
between, on the one hand, the powers delegated to the Commission to adopt non-legislative 
acts  (delegated  acts)  of  general  application  in  order  to  supplement  or  amend  certain  non-
essential  elements  of  a  legislative  act,  as  set  out  in  Article  290,  and,  on  the  other,  those 
conferred upon the Commission to adopt implementing acts as referred to in Article 219. 

In the case of delegated acts, the Legislator delegates to the Commission the power to adopt 
quasi-legislative measures. In the case of implementing acts, the context is very different. The 
Member  States  are  the  primary  parties  responsible  for  implementing  legally  binding  acts  of 
the  European  Union.  However,  if  the  implementation  of  that  legislative  act  necessitates 
uniform conditions of implementation, the Commission is responsible for adopting these. 

The  harmonisation  of  Regulation  (EC)  No 247/2006  with  the  new  rules  contained  in  the 
Treaty  is  based  on  classifying  into  delegated  powers  and  implementing  powers  of  the 
provisions  adopted  by  the  Commission  pursuant  to  that  Regulation  (Regulation  (EC) 
No 793/2006  laying  down  certain  detailed  rules  for  applying  Council  Regulation  (EC) 
No 247/2006). 

Following  this  exercise,  a  draft  proposal  recasting  Regulation  (EC)  No 247/2006  has  been 
drafted.  Under  this  draft,  the  Legislator  reserves  the  right  to  issue  decisions  concerning  the 
essential  elements  of  a  specific  scheme  for  certain  agricultural  products  in  the  outermost 
regions, in order to remedy the difficulties caused by their extreme remoteness (the ‘POSEI 
programme’).  The  general  guidelines  for  this  scheme  and  the  general  principles  which 
underpin  them  are  determined  by  the  Legislator.  As  such,  the  objectives  of  the  measures 
introduced by this specific scheme  and  the  principles  regarding programming, compatibility 
and  consistency  with  other  EU  policies  are  defined  by  the  Legislator.  The  Legislator  also 
establishes  the  principles  for  a  certification  scheme  and  the  application  of  penalties, 
reductions and exclusions. The Legislator also makes provision for the existence of a POSEI 
logo. 

In accordance with Article 290 of the Treaty on the functioning of the European Union, the 
Legislator  entrusts  the  Commission  with  the  task  of  supplementing  or  amending  certain 
non-essential  elements.  A  Commission  delegated  act  may  therefore  set  out  additional 
elements which are necessary for the smooth running of the scheme defined by the Legislator. 
The Commission therefore adopts, by means of a delegated act, the conditions for operators 
being  registered  in  the  register  of  certificates  and  can,  if  necessary  (given  the  economic 
situation) require the lodging of a security for the issuing of certificates (Article 11(2)). The 
Legislator can also delegate to the Commission the power to adopt measures relating to the 
establishment  of  the  procedure  for  approving  amendments  to  programmes  (Article  6(3)), 
conditions for processing (Article 13(6)), the conditions on establishing aid amounts (Articles 
18(4),  23(3)  and  29(4)),  the  conditions  for  the  exemption  from  importing  rights  (Article 
26(2)), the conditions on the right to use the logo (Article 20(3)) and penalties (Article 17(2)). 

The Member States, in accordance with Article 291 of the Treaty on the Functioning of the 
European  Union,  are  responsible  for  implementing  the  scheme  defined  by  the  Legislator. 

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However, it would appear that it is necessary to ensure that the POSEI programme is applied 
in  a  uniform  manner  across  all  Member  States  in  order  to  avoid  unfair  competition  or 
discrimination between operators. The Legislator therefore grants the Commission the power 
to implement, in accordance with Article 291(2) of the Treaty, specifically with regard to the 
uniform  conditions  under  which  products  which  are  the  subject  of  specific  supply 
arrangements  enter,  leave  and  move  within  the  outermost  regions  (Articles  11(3),  13(2)(a), 
13(2)(b),  13(3),  26(1)  and  28(2),  the  uniform  conditions  for  implementing  the  programmes, 
(Articles 6(2), 18(3), 20(4) and 29(3)), and a general framework of checks which the Member 
States must perform (Articles 7, 12(2) and 17(1)). 

2. 

SUBSTANTIVE AMENDMENTS 

In  view  of  the  fact  that  since  it  was  adopted  on  30  January  2006,  Council  Regulation  (EC) 
No 247/2006  laying  down  specific  measures  for  agriculture  in  the  outermost  regions  of  the 
Union  has  been  the  subject  of  several  amendments,  it  is  proposed  that  it  be  recast  in  the 
interests of clarity. 

Furthermore,  changes  in  Community  legislation  and  the  practical  implementation  of  this 
Regulation that have occurred since it was adopted, make it necessary to also modify certain 
provisions thereof and to restructure the legislative text so that it reflects more effectively the 
reality of the POSEI agricultural scheme. 

This  new  regulation  is  more  explicit  in  setting  out  the  scheme’s  main  objectives,  the 
implementation of which the specific measures for agriculture in the outermost regions should 
contribute to (Article 2). 

Its new structure highlights the central role played by the Programmes of Options Specifically 
Relating  to  the  Remoteness  and  Insularity  (POSEI  programmes)  which  have  now  been 
defined  for  each  outermost  region  at  the  most  appropriate  level  and  coordinated  by  the 
relevant Member States. These programmes relate to the two fundamental POSEI elements, 
namely  the  specific  supply  arrangements  and  the  specific  measures  in  favour  of  local 
production (Article 3). 

Other minor amendments have been made to the wording of the Regulation, in particular: 

(1) 

(2) 

The  procedure  for  submitting  programmes  and  amendments  for  approval  to  the 
Commission has been specified to make it more consistent with current practice and in 
view  of  the  need  for  greater  flexibility  and  efficiency  as  regards  the  process  of 
adapting  programmes  to  meet  the  actual  needs  of  agriculture  and  the  supply  of 
products essential for the outermost regions (Article 6). 

In  Article  10,  it  has  been  specified  that  the  specific  supply  arrangements  should  be 
designed  for  each  region  in  accordance  with  local  agricultural  production,  the 
development of which should not be limited by aid for supply which is too excessive 
for  products  which  are  also  produced  locally.  This  provision  is  considered  to  be 
necessary to make it compulsory for the two POSEI instruments to be compatible with 
each other. 

(3) 

The  possibility  of  re-dispatching  products  which  have  been  processed  locally  using 
basic  products  which  have  benefited  from  the  specific  supply  arrangements,  without 
the  benefit  being  reimbursed,  which  was  restricted  to  products  dispatched  from  the 

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(4) 

(5) 

(6) 

Azores to Madeira or vice versa, or from Madeira to the Canary Islands or vice versa, 
will also now apply to the French overseas departments (Article 13(2)(e)). 

In the interests of sound budgetary management, the Member States must indicate in 
their programmes the list of aid constituting direct payments (Article 18(2)(d)). 

It  is  also  helpful  to  indicate  how  the  aid  amounts  for  measures  to  assist  local 
agricultural products are defined, which was previously not indicated in the basic act 
(Article 18(2)(e) and (f)). 

Finally  the  financial  allocation  for  each  national  programme  selected  is  that  which 
corresponds to the 2011 financial year and subsequent years. However, the ceiling for 
financing for the specific supply arrangements for France and Portugal has increased 
by 20% (Article 29(3)), in the light of the conclusions of the first report on the impact 
of the 2006 POSEI reform, submitted to the European Parliament and the Council in 
2010. 

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

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2010/0256 (COD) 

Proposal for a 

REGULATION (EU) No …/ OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL 

of … 

laying down specific measures for agriculture in the outermost regions of the Union 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first subparagraph of Article 42 and Article 43(2) thereof, 

Having regard to the proposal from the European Commission1, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure4, 

Whereas:  

(1) 

Specific measures in the agricultural sector in order to remedy the difficulties caused 
by the specific situation facing the European Union’s outermost regions, as referred to 
in  Article  349  of  the  Treaty,  have  been  established  by  Council  Regulation  (EC) 
No 247/2006 of 30 January 2006 laying down specific measures for agriculture in the 
outermost regions of the Union5. These measures have been implemented by means of 
support programmes for each region, which constitute an essential tool for supplying 
such regions with agricultural products. In view of the new amendments which have 
become  necessary  and  following  the  entry  into  force  of  the  Lisbon  Treaty,  it  is 
necessary to repeal Regulation (EC) No 247/2006 and replace it with a new text.  

(2) 

The  fundamental  objectives  which  the  scheme  promoting  the  Union’s  outermost 
regions will help to meet, need to be specified. 

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5 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 42, 14.2.2006, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

The  content  of  the  Programmes  of  Options  Specifically  Relating  to  Remoteness  and 
Insularity  ('POSEI  programmes’)  which,  in  accordance  with  the  principle  of 
subsidiarity,  must  be  established  by  the  Member  States  concerned  at  the  most 
appropriate  geographical  level  and  submitted  by  the  Member  States  to  the 
Commission for approval, must also be specified. 

In  order  to  achieve  the  objectives  of  the  scheme  promoting  the  Union’s  outermost 
regions more effectively, the POSEI programmes must include measures which ensure 
the  supply  of  agricultural  products  and  the  preservation  and  development  of  local 
agricultural production. The level of programming for the regions concerned needs to 
be harmonised and the policy of partnership between the Commission and the Member 
States needs to become more systematic. 

In  keeping  with  the  principle  of  subsidiarity  and  in  order  to  ensure  flexibility,  two 
principles which form the basis of the programming approach adopted for the scheme 
promoting  the  Union's  outermost  regions,  the  authorities  appointed  by  the  Member 
State may propose amendments to the programme to bring it into line with the reality 
of  the  situation  in  the  outermost  regions.  Also  in  keeping  with  this  approach,  the 
procedure  for  amending  the  programmes  must  be  adapted  to  reflect  the  level  of 
relevance of each type of amendment. 

In order to ensure the supply of essential agricultural products to the outermost regions 
and  to  compensate  for  the  additional  costs  caused  by  their  extreme  remoteness,  it  is 
appropriate  to  introduce  a  specific  supply  arrangement.  In  fact,  the  exceptional 
geographical  situation  of  the  outermost  regions  imposes  additional  transport  costs  in 
supplying  products  which  are  essential  for  human  consumption,  for  processing  or  as 
agricultural inputs. In addition, other objective factors linked to these regions’ extreme 
remoteness, namely their insularity and small surface areas, lead to further constraints 
on economic operators and producers in the outermost regions that severely handicap 
their  activities.  These  handicaps  can  be  alleviated  by  lowering  the  price  of  these 
essential products. 

To that end, notwithstanding  Article  28 of  the Treaty, imports of certain agricultural 
products from third countries should be exempt from the applicable import duties. To 
take  account  of  their  origin  and  the  customs  treatment  accorded  to  them  under 
European Union law, products which have entered the Union’s customs territory under 
inward  processing  or  customs  warehousing  arrangements  should  be  considered  as 
direct  imports,  for  the  purpose  of  granting  the  benefits  of  the  specific  supply 
arrangements. 

In  order  to  achieve  in  an  effective  manner  the  lowering  of  prices  in  the  outermost 
regions and mitigating the additional costs of their extreme remoteness, all the while 
maintaining the competitiveness of EU products, aid should be granted for the supply 
of Community products to the outermost regions. Such aid should take account of the 
additional cost of transport to these regions and the cost of exports to third countries 
and,  in  the  case  of  agricultural  inputs  and  products  intended  for  processing,  the 
additional costs of their extreme remoteness, specifically insularity and small surface 
areas. 

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(9) 

In  order  to  avoid  speculation  which  would  be  harmful  to  end  users  in  the  outermost 
regions, it is important to specify that the specific supply arrangements may only apply 
to products of sound, fair and marketable quality. 

(10)  Rules  should  be  established  concerning  the  operation  of  the  scheme,  particularly 
relating to the creation of a register of operators and a system of certificates, based on 
the  certificates  referred  to  in  Articles  130  and  161  of  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)6. 

(11)  Given the requirements relating to the monitoring of transactions benefiting from the 
specific  supply  arrangements,  administrative  checks  must  be  conducted  on  the 
products concerned at the time of their import or entry into the outermost regions and 
also  at  the  time  of  their  export  or  dispatch  from  the  same.  In  addition,  in  order  to 
achieve  the  objectives  of  the  arrangements,  the  economic  advantages  of  the  specific 
supply arrangements must be in terms of production costs and must reduce prices up to 
the  end  user  stage.  They  should  therefore  be  granted  only  on  condition  that  they  are 
actually passed on, and appropriate checks must be carried out. 

(12)  Since  the  quantities  covered  by  the  specific  supply  arrangements  are  limited  to  the 
supply requirements of the outermost regions, this system does not impair the proper 
functioning of the internal market. Nor should the economic advantages of the specific 
supply  arrangements  provoke  diversions  of  trade  in  the  products  concerned. 
Dispatching  or  exportation  of  those  products  from  the  outermost  regions  should 
therefore be prohibited. Nevertheless, the dispatch or export of these products must be 
authorised if the financial advantage resulting from the specific supply arrangements is 
reimbursed. 

(13)  With  regard  to  processed  products,  trade  between  the  outermost  regions  should  be 
authorised in order to allow commerce between these regions. Account should also be 
taken of trade flows within the context of regional commerce and traditional exports 
and dispatching with the rest of the Union or third countries in the outermost regions, 
and  exports  of  processed  products  corresponding  to  traditional  trade  for  all  those 
regions. For the sake of clarity, the reference period for defining traditionally exported 
or dispatched quantities should be specified. 

(14)  However,  appropriate  measures  should  be  taken  to  allow  for  the  necessary 
restructuring of the sugar processing sector in the Azores. These measures should take 
into account that in order for the sugar sector on the Azores to be viable, a certain level 
of production and processing needs to be ensured. Against this background, dispatches 
of sugar from the Azores to the rest of the Union should be allowed exceptionally to 
exceed  traditional  flows  for  a  limited  period  of  five  years,  subject  to  progressively 
reduced  annual  limits.  Given  that  the  quantities  that  may  be  re-dispatched  will  be 
proportional  and  limited  to  the  extent  strictly  necessary  for  ensuring  the  viability  of 
local sugar production and processing, such temporary dispatching of sugar from the 
Azores will not adversely affect the internal market of the Union. 

6 

OJ L 299, 16.11.2007, p. 1. 

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(15)  With  regard  to  out-of-quota  sugar  to  be  supplied  to  the  Azores,  Madeira  and  the 
Canary Islands, the scheme of exemption from import duties will continue to apply. In 
particular,  the  Azores  should  be  also  authorised  to  benefit  from  the  exemption  from 
import duties for raw cane sugar within the limit of their forecast supply balance. 

(16)  To date the Canary Islands have been supplied under the specific supply arrangements 
for  skimmed  milk  powder  containing  vegetable  fat  with  CN code  1901 90 99  for 
industrial  processing.  The  continued  supply  of  this  product,  which  has  become  a 
traditional component of the local diet, should be permitted. 

(17)  Given that rice constitutes a staple of the diet of Réunion, and since the island does not 
produce sufficient quantities to meet local requirements, the import of this product to 
the island should continue to be exempt from any form of import tax. 

(18)  European Union policy to assist local production in the outermost regions has involved 
a  multitude  of  products  and  measures  for  their  production,  marketing  or  processing. 
These  measures  have  proved  effective  and  ensured  that  agriculture  continues  and 
develops.  The  EU  should  continue  to  support  these  lines  of  production,  which  are  a 
key  element  to  ensure  the  environmental,  social  and  economic  equilibrium  of  the 
outermost  regions.  Experience  has  shown  that,  as  in  the  case  of  rural  development 
policy,  a  closer  partnership  with  local  authorities  can  help  to  address  the  particular 
issues  affecting  the  regions  concerned  in  a  more  targeted  way.  Support  to  promote 
local production therefore needs to continue by means of the POSEI programmes. 

(19) 

In order to support the marketing of products from the outermost regions, aid should 
be  established  to  assist  commercialisation  of  these  products  outside  of  the  region  in 
which they are produced. 

(20)  The  minimum  elements  which  must  be  provided  under  the  POSEI  programmes  in 
order  to  establish  the  measures  supporting  local  agricultural  production,  specifically 
the description of location, the strategy proposed, the objectives and measures, should 
be  established.  The  principles  where  these  measures  are  consistent  with  other  EU 
policies  should  also  be  stipulated,  in  order  to  avoid  any  incompatibility  and 
overlapping of aid. 

(21) 

In order to ensure that it can be implemented, the POSEI programme may also contain 
measures  for  financing  studies,  demonstration  projects,  training  and  technical 
assistance. 

(22)  Farmers  in  the  outermost  regions  should  be  encouraged  to  supply  high-quality 
products  and  to  prioritise  their  marketing.  Use  of  the  logo  introduced  by  the  Union 
may be useful to this end. 

(23)  The  structures  of  certain  farms  or  processing  and  marketing  firms  in  the  outermost 
regions are seriously defective and face specific difficulties. Articles 26(2) and 28(2) 
of Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural 
development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)7 
therefore provide for more favourable support rates for certain types of investment in 
the outermost regions. 

7 

OJ L 277, 21.10.2005, p. 1. 

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(24)  Article 27(1) of Regulation (EC) No 1698/2005 excludes the outermost regions from 
the  restriction  to  a  grant  of  forestry  support  provided  for  in  Article  20(b)(ii)  of  that 
Regulation. 

(25)  Article  39(4)  of  Regulation  (EC)  No  1698/2005  and  Annex  I  thereto  determine  the 
maximum  annual  amounts  eligible  for  agri-environmental  payments.  To  take  into 
account the specific environmental situation of certain very sensitive pasture areas in 
the Azores and the preservation of the landscape and traditional features of agricultural 
land, in particular the areas of terrace cultivation in Madeira, provision should be made 
for  the  possibility,  in  the  case  of  certain  specific  measures,  of  increasing  those 
amounts up to twofold. 

(26)  A  derogation  may  be  granted  from  the  Commission’s  consistent  policy  of  not 
authorising  State  operating  aid  for  the  production,  processing  and  marketing  of 
agricultural products covered by Annex I to the Treaty, in order to mitigate the specific 
constraints  on  farming  in  the  outermost  regions  linked  to  their  extreme  remoteness, 
specifically  their  isolation,  insularity,  small  surface  areas,  mountainous  terrain  and 
climate and their economic dependency on a small number of products. 

(27)  The plant health of agricultural crops in the outermost regions is subject to particular 
problems  associated  with  the  climate  and  the  inadequacy  of  the  control  measures 
hitherto  applied  there.  Programmes  should  therefore  be  implemented  to  combat 
harmful organisms, including by organic methods. The Union’s financial contribution 
towards such programmes should be defined. 

(28)  The  maintenance  of  vineyards,  which  are  the  most  widespread  type  of  cultivation  in 
the  regions  of  Madeira  and  the  Canary  Islands  and  a  very  important  one  for  the 
Azores,  is  an  economic  and  environmental  imperative.  To  help  support  production, 
neither  the  abandonment  premiums  nor  the  market  mechanisms  provided  for  in 
Regulation (EC) No 1234/2007 should be applicable in these regions, but nonetheless, 
in the Canary Islands, it should be possible to apply crisis distillation measures in the 
event  of  exceptional  market  disturbance  arising  from  quality  problems.  Similarly, 
technical and socio-economic difficulties have prevented complete conversion, within 
the time limits established, of the areas in the regions of Madeira and the Azores under 
vines  of  hybrid  varieties  prohibited  by  Regulation  (EC)  No 1234/2007.  The  wine 
produced by such vineyards is intended solely for traditional local consumption. 

(29)  The restructuring of the milk sector is not yet complete in the Azores. In line with the 
high  dependence  of  the  Azores  on  milk  production,  combined  with  other  handicaps 
connected with their extreme remoteness and the absence of profitable alternative lines 
of  production, 
the  derogation  from  certain  provisions  of  Regulation  (EC) 
No 1234/2007  concerning  surplus  levies  on  milk  and  milk  products  should  be 
maintained.  

(30)  Support  for  the  production  of  cow’s  milk  in  Madeira  and  Réunion  has  not  been 
sufficient  to  maintain  the  balance  between  domestic  and  external  supply,  chiefly 
because of the serious structural difficulties affecting the sector and its poor capacity 
to adapt to new economic environments. Consequently, authorisation to produce UHT 
milk reconstituted from milk powder of EU origin should continue, in order to cover 
local consumption more fully. In order to inform the consumer correctly, it should be 

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made  compulsory  to  indicate  the  method  by  which  UHT  milk  is  reconstituted  using 
milk powder on the sales labelling. 

(31)  The  need  to  maintain  local  milk  production  by  means  of  incentives  justifies  not 
applying  Regulation  (EC)  No  1234/2007  in  the  French  overseas  departments  and 
Madeira. This exemption should apply to Madeira subject to a limit of 4 000 tonnes. 

(32)  Traditional livestock farming activities should be supported. In order to meet the local 
consumption  needs  of  the  French  overseas  departments  and  Madeira,  duty-free 
imports from third countries of male bovine animals intended for fattening should be 
authorised subject to certain conditions and up to a maximum annual limit. 

(33)  The possibility opened under Council Regulation (EC) No 73/2009 of 19 January 2009 
establishing common rules for direct support schemes under the common agricultural 
policy  and  establishing  certain  support  schemes  for  farmers8  to  enable  Portugal  to 
transfer rights to the suckler cow premium from the mainland to the Azores should be 
renewed  and  that  instrument  should  be  adjusted  in  the  light  of  the  support 
arrangements for the outermost regions. 

(34)  Tobacco  growing  is  of  historical  importance  in  the  Canary  Islands.  Economically 
speaking, tobacco preparation continues to be one of the chief industrial activities in 
the region. In social terms, tobacco cultivation is very labour-intensive and carried out 
by small farms. Since the crop is not sufficiently profitable, however, it is in danger of 
dying  out.  Tobacco  is  currently  cultivated  on  only  a  small  area  on  the  island  of  La 
Palma, for the small-scale manufacture of cigars. Spain should therefore be authorised 
to  continue  to  grant  aid,  in  addition  to  EU  aid,  so  that  this  traditional  crop  can  be 
maintained  with  a  view  to  supporting  the  artisanal  activity  associated  with  it.  In 
addition,  to  maintain  the  manufacture  of  tobacco  products,  imports  into  the  Canary 
Islands  of  raw  and  semi-manufactured  tobacco  should  continue  to  be  exempt  from 
customs  duty,  up  to  an  annual  limit  of  20 000  tonnes  of  stripped  raw  tobacco 
equivalent. 

(35) 

Implementation  of  this  Regulation  must  not  jeopardise  the  level  of  special  support 
from which the outermost regions have benefited up to now. For that reason, so that 
they can implement the appropriate measures, the Member States should have at their 
disposal  sums  equivalent  to  the  support  already  granted  by  the  Community  under 
Regulation (EC) No 247/2006. 

(36)  Since  2006,  requirements  in  essential  products  have  increased  in  some  outermost 
regions, particularly in the Azores and in the French overseas departments, as a result 
of  the  increasing  livestock  population  and  demographic  pressure.  The  proportion  of 
the budget which Member States may use for the specific supply arrangements for the 
regions concerned should therefore be increased. 

(37)  The Commission should therefore be able to adopt delegated acts in accordance with 
Article  290  of  the  Treaty,  in  order  to  supplement  or  modify  certain  non-essential 
elements of the present Regulation. The areas with regard to which this ability can be 
exercised, and the conditions to which this delegation should be subject should be set 
out. 

8 

OJ L 30, 31.1.2009, p. 16. 

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(38) 

In order to ensure that the POSEI programme is implemented in the Member States in 
a  uniform  manner  and  to  avoid  unfair  competition  or  discrimination  between 
operators,  the  Commission  should  be  able  to  adopt  implementing  acts  in  accordance 
with  Article  291(2)  of  the  Treaty.  The  Commission  should  therefore  be  granted 
implementing  powers  under  that  provision,  specifically  vis-à-vis  the  uniform 
conditions  under  which  products  affected  by  the  special  supply  arrangements  enter, 
leave and move within the outermost regions, the uniform conditions for implementing 
programmes  and  the  minimum  characteristics  for  checks  which  Member  States  must 
apply. 

(39) 

[Recital concerning control of implementing measures. To be completed following the 
adoption of the regulation on control mechanisms, as referred to in Article 291(2) of 
the  TFEU,  currently  the  subject  of  discussion  by  the  European  Parliament  and  the 
Council], 

HAVE ADOPTED THIS REGULATION:  

CHAPTER I 

SCOPE 

Article 1 

Subject 

This Regulation lays down specific measures for agriculture to mitigate the difficulties caused 
by  extreme  remoteness,  specifically  remoteness,  isolation,  small  surface  areas,  terrain, 
difficult climate and economic dependence on a limited number of products of the regions of 
the  Union  referred  to  in  Article  349  of  the  Treaty,  hereinafter  referred  to  as  ‘outermost 
regions’. 

Article 2 

Objectives 

1. 

The  specific  measures  referred  to  in  Article  1  shall  help  to  meet  the  following 
objectives: 

a) 

b) 

guaranteed  supply  to  the  outermost  regions  of  products  essential  for  human 
consumption  or  for  processing  and  as  agricultural  inputs  by  mitigating  the 
additional costs due to extreme remoteness; 

preservation  and  development  of  agricultural  activities  in  the  outermost 
regions, including the production, processing and the sale of local products. 

2. 

The objectives set out in paragraph 1 shall be implemented by means of the measures 
referred to in Chapters III, IV and V. 

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CHAPTER II 

POSEI PROGRAMMES 

Article 3 

Establishing the POSEI programmes 

1. 

2. 

3. 

1. 

2. 

The  measures  provided  for  in  Article  1  are  defined  for  each  outermost  region  by  a 
Programme of Options Specifically Relating to Remoteness and Insularity (POSEI), 
hereinafter referred to as the ‘POSEI programme’, which shall comprise: 

a) 

b) 

specific supply arrangements as provided for in Chapter III, and  

specific  measures  to  assist  local  agricultural  production  as  provided  for  in 
Chapter IV. 

The  POSEI  programme  shall  be  established  at  the  geographical  level  which  the 
Member  State  concerned  deems  most  appropriate.  It  shall  be  prepared  by  the 
competent authorities designated by the said Member State, which shall submit it to 
the  Commission  for  approval  in  accordance  with  Article  6  after  the  competent 
authorities and organisations at the appropriate regional level have been consulted. 

A single POSEI programme may be submitted for each Member State in respect of 
its outermost regions. 

Article 4 

Compatibility and consistency 

Measures  taken  under  POSEI  programmes  must  comply  with  European  Union  law 
and  be  consistent  with  other  EU  policies  and  with  the  measures  taken  under  such 
policies. 

Consistency  of  the  measures  taken  under  POSEI  programmes  with  measures 
implemented  under  other  instruments  of  the  common  agricultural  policy,  and  in 
particular the common organisations of markets, rural development, product quality, 
animal welfare and protection of the environment, must be ensured. 

In particular, no measure under this Regulation may be financed as: 

a) 

additional support for premium or aid  schemes  under  a  common  organisation 
of the market save in exceptional cases justified by objective criteria; 

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12 

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b) 

support  for  research  projects,  measures  to  support  research  projects  or 
measures  eligible  for  European  Union  financing  under  Council  Decision 
2009/470/EC9; 

c) 

support for measures within the scope of Regulation (EC) No 1698/2005. 

Article 5 

Content of programmes 

A POSEI programme shall comprise: 

a) 

b) 

c) 

d) 

a  schedule  for  the  implementation  of  the  measures  and  a  general  annual  indicative 
financing table showing the resources to be deployed; 

proof  of  the  compatibility  and  consistency  between  the  various  measures  under  the 
programmes and the criteria and quantitative indicators to be used for monitoring and 
evaluation; 

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. 

the designation of the competent authorities and bodies responsible for implementing 
the  programme  and  the  designation  at  the  appropriate  levels  of  authorities  or 
associated bodies and socio-economic partners, and the results of consultations held. 

Article 6 

Approval and amendments of programmes 

1. 

Member States shall submit a draft POSEI programme to the Commission in the light 
of the financial allocation referred to in Article 29(2) and (3). 

The  draft  programme  shall  comprise  a  draft  forecast  supply  balance  indicating  the 
products,  the  quantities  thereof  and  the  amount  of  aid  for  supply  from  the  Union 
together with a draft programme of support for local production. 

The Commission shall evaluate the POSEI programme proposed and decide whether 
or not to approve it by means of an implementing act. 

2. 

Depending on the annual evaluation of the implementation of measures included in 
the  POSEI  programmes,  the  Member  States  may  submit  to  the  Commission 
proposals  for  amendments  thereto  within  the  context  of  the  financial  allocation 
referred  to  in  Article  29(2)  and  (3),  to  bring  them  more  into  line  with  the 
requirements  of  the  outermost  regions  and  the  strategy  proposed.  The  Commission 
shall  adopt  by  means  of  an  implementing  act  the  uniform  measures  for  the 
submission of proposals for amendments to the programme. 

9 

OJ L 155, 18.6.2009, p. 30. 

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3. 

In  order  to  take  into  account  the  different  types  of  amendments  proposed  and  the 
time frame within which they must be implemented, the Commission shall determine 
by delegated act the procedure for approving amendments. 

Article 7 

Monitoring and follow-up 

The  Member  States  shall  conduct  verifications  by  means  of  administrative  and  on-the-spot 
checks. In order to ensure uniform application, the Commission shall adopt by implementing 
act the minimum characteristics of the checks to be carried out by the Member States. 

By  the  same  type  of  act,  the  Commission  shall  adopt  the  procedures  and  physical  and 
financial indicators in order to ensure that the implementation of the programmes is monitored 
in an effective manner. 

CHAPTER III 

SPECIFIC SUPPLY ARRANGEMENTS 

Article 8 

Forecast supply balance 

1. 

2. 

Specific  supply  arrangements  are  hereby  established  for  the  agricultural  products 
listed  in  Annex  I  to  the  Treaty,  which  are  essential  in  the  outermost  regions  for 
human consumption, for the manufacture of other products or as agricultural inputs. 

The  Member  State  concerned  shall  establish,  at  the  geographical  level  which  it 
deems  most  appropriate,  a  forecast  supply  balance  so  as  to  quantify  the  annual 
supply requirements for each outermost region with regard to the products listed in 
Annex I to the Treaty. 

A  separate  forecast  balance  may  be  drawn  up  for  the  requirements  of  undertakings 
packaging  and  processing  products  intended  for  the  local  market  for  traditional 
consignment  to  the  rest  of  the  EU  or  for  export  as  part  of  regional  trade,  in 
accordance with Article 13(3), or within the context of traditional trade flows. 

Article 9 

Operation of the arrangements 

1. 

Within the limit of the quantities determined in the forecast supply balance, no duties 
shall  apply  to  direct  imports  from  third  countries  into  the  outermost  regions  of 
products covered by the specific supply arrangements. 

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Products which have entered the Union’s customs territory under inward processing 
or  customs  warehousing  arrangements  shall  be  considered  as  direct  imports  from 
third countries for the purposes of this chapter. 

In  order  to  ensure  coverage  of  the  requirements  established  in  accordance  with 
Article 8(2) in terms of price and quality, while taking care to maintain the Union’s 
share  in  supplies,  aid  shall  be  granted  to  supply  the  outermost  regions  with  EU 
products held in public intervention storage or available on the EU market. 

Such aid shall be determined for each type of product concerned to take account of 
the  additional  cost  of  transport  to  the  outermost  regions  and  the  prices  applied  to 
exports  to  third  countries  and,  in  the  case  of  products  intended  for  processing  or 
agricultural  inputs,  other  additional  costs  of  extreme  remoteness,  specifically 
insularity and small surface areas. 

No aid shall be granted for the supply of products which have already benefited from 
the specific supply arrangements in another outermost region. 

Only  products  of  sound,  fair  and  marketable  quality  may  benefit  from  the  specific 
supply arrangements. 

2. 

3. 

4. 

Article 10 

Implementation 

In implementing the specific supply arrangements, account shall be taken, in particular, of the 
following: 

a) 

the specific requirements of the outermost regions and, in the case of products 
intended for processing and agricultural inputs, the quality requirements; 

b) 

trade flows with the rest of the Union; 

c) 

the economic aspect of the proposed aid; 

d)  where  applicable,  the  need  not  to  obstruct  the  potential  development  of  local 

products. 

Article 11 

Certificates 

1. 

Exemption from import duties or access to aid within the framework of the specific 
supply arrangements is granted upon the presentation of a certificate. 

Certificates  shall  be  issued  only  to  operators  entered  in  a  register  held  by  the 
competent authorities. 

Licences and certificates shall not be transferable. 

EN 

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2. 

3. 

1. 

2. 

1. 

In  order  to  ensure  that  operators  fully  exercise  their  rights  to  participate  in  the 
specific supply arrangements, the Commission shall determine, by delegated act, the 
conditions  for  recording  operators  in  the  register  and,  if  necessary,  shall  make  it 
compulsory to establish a security for the issuing of certificates. 

The  Commission  shall  adopt  by  means  of  an  implementing  act  all  measures 
necessary  to  ensure  the  uniform  application  by  the  Member  States  of  this  Article, 
specifically relating to the introduction of the system of certificates, not including the 
establishment  of  the  security  certificates,  and  the  commitment  of  operators  at  the 
time of registration. 

Article 12 

Impact of advantage 

Benefiting  from  the  specific  supply  arrangements  resulting  from  the  exemption  of 
import duty or the awarding of aid shall be subject to the condition that the impact of 
the economic advantage is passed on up to the end user who, as appropriate, may be 
the consumer in the case of products meant for direct consumption, the end processor 
or packager in the case of products meant for the processing or packaging industries, 
or farmers in the case of products used for animal feed or as agricultural inputs. 

In  order  to  ensure  that  paragraph  1  above  is  applied  in  a  uniform  manner,  the 
Commission  shall  adopt  by  means  of  an  implementing  act  detailed  rules  for  its 
application  and  more  specifically  conditions  for  governing  monitoring  by  Member 
States that the advantage has in fact been passed on up to the end user. 

Article 13 

Export to third countries and dispatch to the rest of the European Union 

Products  covered  by  the  specific  supply  arrangements  may  be  exported  to  third 
countries  or  dispatched  to  the  rest  of  the  Union  only  under  uniform  conditions 
established  by  the  Commission  by  means  of  an  implementing  act,  which  shall 
include  the  payment  of  import  duty  or  the  reimbursement  of  the  aid  received,  as 
indicated in Article 9. 

Exports  to  third  countries  of  products  covered  by  the  specific  supply  arrangements 
shall not be subject to the presentation of a certificate. 

The first subparagraph above shall not apply to trade flows between French overseas 
departments. 

2. 

The first subparagraph of paragraph 1 above shall not apply to products processed in 
the  outermost  regions  from  products  having  benefited  from  the  specific  supply 
arrangements which are: 

a) 

exported  to  third  countries  or  dispatched  to  the  rest  of  the  Union  within  the 
limits  of  traditional  exports  and  traditional  dispatches.  These  amounts  are 

EN 

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established by the Commission by means of an implementing act on the basis 
of dispatches or export average figures during 1989, 1990 and 1991; 

b) 

exported  to  third  countries  as  part  of  regional  trade  in  accordance  with  the 
destinations  and  conditions  determined  by  the  Commission  by  means  of  an 
implementing act; 

c) 

dispatched from the Azores to Madeira or vice versa; 

d) 

dispatched from Madeira to the Canary Islands or vice versa; 

e) 

dispatched between French overseas departments. 

No refunds shall be granted in respect of products exported as referred to in the first 
subparagraph, points a) and b). 

Exports to third countries of products referred to in the first subparagraph, points a) 
and b) shall not be subject to the presentation of a certificate. 

For the purposes of this chapter, ‘regional trade’shall be understood as trade, for each 
French  overseas  department,  with  the  Azores  and  Madeira  and  the  Canary  Islands, 
with  third  countries  established  by  the  Commission  by  means  of  an  implementing 
act. 

Products  delivered  to  the  French  overseas  departments,  the  Azores,  Madeira  or  the 
Canary Islands which have benefited from the specific supply arrangements and are 
used to supply ships and aircraft shall be deemed to have been consumed locally. 

By way of derogation from paragraph 2, first subparagraph, point (a), the following 
maximum quantities of sugar (CN code 1701) may be dispatched annually from the 
Azores to the rest of the Union for a five-year period: 

–   

in 2011: 3 000 tonnes, 

–   

in 2012: 2 500 tonnes, 

–   

in 2013: 2 000 tonnes, 

–   

in 2014: 1 500 tonnes, 

–   

in 2015: 1 000 tonnes. 

In  order  to  target  the  benefit  resulting  from  the  application  of  the  specific  supply 
arrangements  to  regional  and  traditional  trade,  the  Commission  shall  establish  by 
means  of  delegated  act,  the  conditions  that  processing  operations  which  may  give 
rise to traditional exports or regional trade must comply with. 

3. 

4. 

5. 

6. 

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Article 14 

Sugar 

1. 

During the period established in Article 204(2) and (3) of Council Regulation (EC) 
No 1234/2007, the non-quota production referred to in Article 61 of that Regulation 
shall be exempt from import duties subject to the forecast supply balance referred to 
in Article 8 of this Regulation in respect of: 

a) 

b) 

sugar brought for consumption to Madeira or the Canary Islands in the form of 
white sugar falling within CN code 1701; 

sugar  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,  subject  to  the  limit  of  the  forecast  supply  balance,  by  raw 
sugar falling within code 1701 11 10 (raw cane sugar). 

When determining the Azores’ raw sugar requirements, 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. 

Article 15 

Skimmed milk powder 

By  way  of  derogation  from  Article  8  above,  the  Canary  Islands  may  continue  to  receive 
supplies of skimmed milk powder falling within CN code 1901 90 99 (skimmed milk powder 
containing vegetable fat) meant for industrial processing, subject to a limit of 800 tonnes per 
year. Aid granted for supplies of this product from the Union may not exceed EUR 210 per 
tonne and shall be included in the limit laid down in Article 29. This product shall be used for 
local consumption only. 

Article 16 

Imports of rice into Réunion 

No customs duties shall be charged in the French overseas department of Réunion on products 
falling within CN codes 1006 10, 1006 20 and 1006 40 00 imported for consumption there. 

Article 17 

Controls and penalties 

1. 

Products which are the subject of specific supply arrangements are to be subject to 
administrative checks at the time that they are imported into or enter the outermost 
regions, as well as when they are exported or leave. 

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In order to ensure uniform application of this provision, the Commission shall adopt 
by  means  of  an  implementing  act  the  minimum  characteristics  of  the  checks  to  be 
carried out by the Member States. 

2. 

in 

Unless 
the  event  of  force  majeure  or  exceptional  climatic  accident, 
non-compliance  by  the  operator  with  the  commitments  made  in  accordance  with 
Article  11,  the  advantage  granted  to  the  holder  of  the  certificate  shall  be  recovered 
and  its  registration  suspended  or  deleted  depending  on  the  severity  of  the  non-
compliance. 

In  order  to  ensure  that  the  operators  participating  in  the  scheme  comply  with  their 
obligations, the Commission shall establish by means of delegated act the conditions 
necessary for the implementation of the first subparagraph above and the processing 
of new applications for certificates by the operator. 

CHAPTER IV 

MEASURES TO ASSIST LOCAL AGRICULTURAL PRODUCTS 

Article 18 

Measures 

1. 

2. 

The  POSEI  programmes  consist  of  specific  measures  designed  to  promote  local 
agricultural production under the scope of Part 3, Title III of the Treaty, necessary in 
order  to  ensure  the  continuity  and  development  of  local  agricultural  production  in 
each outermost region. 

The  part  of  the  programme  which  includes  measures  to  assist  local  agricultural 
production shall comprise at least the following elements: 

a) 

b) 

c) 

a quantified description of the current situation of the agricultural production in 
question  taking  into  account  the  results  of  available  evaluations,  showing 
disparities,  gaps  and  potential  for  development,  the  financial  resources  that 
have been mobilised and the primary results of measures taken previously; 

a  description  of  the  strategy  proposed,  the  priorities  selected,  its  quantified 
general  and  operational  objectives,  and  an  appraisal  showing  the  expected 
economic, environmental and social impact, including employment effects; 

a  description  of  the  measures  envisaged,  and  in  particular  aid  schemes  for 
implementing  them,  and,  where  appropriate,  information  on  the  need  for  any 
studies,  demonstration  projects,  training  or  technical  assistance  operations 
relating  to  the  preparation,  implementation  or  adaptation  of  the  measures 
concerned; 

d) 

a list of the aid constituting direct payments in accordance with Article 2(d) of 
Regulation (EC) No 73/2009; 

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e) 

f) 

conditions for the granting of aid, the products and volumes concerned; 

the aid amount established for each measure or action in order to achieve one 
or more objectives for the programme. 

The  Commission  shall  adopt  by  means  of  an  implementing  act  the  uniform 
conditions for the provision of the aid described in paragraph 2. 

The  programme  may  include  measures  to support  production, processing  or  sale of 
agricultural products in the outermost regions. 

Each measure may include a variety of actions. For each action, the programme shall 
define at least the following elements:  

a) 

beneficiaries; 

b) 

eligibility conditions; 

c) 

individual aid; 

d) 

ceiling. 

In  order  to  support  the  marketing  of  products  outside  a  region  in  which  they  are 
produced, the Commission shall adopt by means of a delegated act the conditions for 
establishing  the  amount  of  aid  awarded  in  respect  of  such  marketing  and,  where 
appropriate, the maximum amounts which form the subject of this aid. 

Article 19 

Controls and wrongful payments 

Verification  of  measures  provided  for  in  this  chapter  shall  be  conducted  by 
administrative and on-the-spot checks. 

In  the  event  of  wrongful  payments,  the  beneficiary  concerned  shall  be  obliged  to 
reimburse  the  amounts  in  question.  Article  80  of  Commission  Regulation  (EC) 
No 1122/200910 shall apply mutatis mutandis. 

3. 

4. 

1. 

2. 

10 

OJ L 316, 2.12.2009, p. 65. 

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CHAPTER V 

ACCOMPANYING MEASURES 

Article 20 

Logo 

1. 

2. 

3. 

4. 

1. 

2. 

A logo shall be introduced with a view to improving awareness and the consumption 
of quality agricultural products, whether processed or not, specific to the outermost 
regions. 

The conditions for using the logo referred to in paragraph 1 shall be proposed by the 
trade organisations concerned. The national authorities shall forward such proposals, 
with their opinion, to the Commission. 

Use of  the symbol shall be monitored by  a public  authority or a body approved by 
the competent national authorities. 

In  order  to  improve  awareness  of  high-quality  agricultural  products  from  the 
outermost  regions  and  to  increase  the  consumption  thereof,  whether  processed  or 
non-processed,  the  Commission  shall  establish,  by  means  of  a  delegated  act,  the 
conditions for exercising the right to use the logo and for reproducing and using it. 

In order to ensure that this Article is applied in a uniform way, the Commission shall 
adopt, by means of a implementing act, the detailed rules concerning the use of the 
logo  and  the  minimum  characteristics  for  the  checks  and  monitoring  which  the 
Member States shall perform. 

Article 21 

Rural development 

Notwithstanding  Article  39(4)  of  Regulation  (EC)  No  1698/2005,  the  maximum 
annual  amounts  eligible  for  European  Union  aid,  as  set  out  in  Annex  I  to  that 
Regulation,  may  be  increased  up  to  twofold  in  the  case  of  the  measure  to  protect 
lakes in the Azores and the measure to preserve the landscape and traditional features 
of  agricultural  land  and  the  conservation  of  stone  walls  supporting  terraces  in 
Madeira. 

A  description  of  the  measures  planned  under  paragraph  1  of  this  Article  shall  be 
included,  where  appropriate,  in  the  programmes  for  these  regions  referred  to  in 
Article 16 of Regulation (EC) No 1698/2005. 

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Article 22 

State aid 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

For  the  agricultural  products  covered  by  Annex  I  to  the  Treaty,  to  which  Articles 
107, 108 and 109 thereof apply, the Commission may authorise, in accordance with 
Article  108  of  the  Treaty,  operating  aid  in  the  sectors  producing,  processing  and 
marketing  those  products,  with  a  view  to  mitigating  the  specific  constraints  on 
farming in the outermost regions as a result of their isolation, insularity and extreme 
remoteness. 

Member  States  may  agree  additional  financing  for  the  implementation  of  POSEI 
programmes. In such cases the State aid must be notified by the Member States to the 
Commission  and  approved  in  accordance  with  this  Regulation  as  part  of  those 
programmes.  Aid  thus  notified  shall  be  regarded  as  notified  within  the  meaning  of 
the first sentence of Article 108(3) of the Treaty. 

France  may  grant  the  sugar  sector  in  the  French  outermost  regions  aid  of  up  to 
EUR 90 million per marketing year. 

France  shall  inform  the  Commission  within  30  days  of  the  end  of  each  marketing 
year of the amount of aid actually granted. 

Without  prejudice  to  paragraphs  1  and  2  of  this  Article  and  by  way  of  derogation 
from  the  first  subparagraph  of  Article  180  of  Regulation  (EC)  No  1234/2007  and 
Article 3 of Council Regulation (EC) No 1184/200611, Articles 107, 108 and 109 of 
the  Treaty  shall  not  apply  to  payments  made  under  Title  IV,  paragraph  3  of  this 
Article  and  Articles  23  and  27  of  this  Regulation  by  Member  States  in  conformity 
with this Regulation. 

Article 23 

Plant health programmes 

France and Portugal shall submit programmes to the Commission for the control of 
organisms  harmful  to  plants  or  plant  products  in  the  French  overseas  departments 
and the Azores and Madeira respectively. The programmes shall specify in particular 
the objectives to be achieved, the measures to be carried out, their duration and their 
cost.  The  programmes  submitted  pursuant  to  this  Article  shall  not  concern  the 
protection of bananas. 

The  Union  shall  contribute  to  the  financing  of  the  programmes  provided  for  in 
paragraph 1 on the basis of a technical analysis of the regional situations. 

In order to implement these programmes, the Commission shall establish, by means 
of delegated act, the Union's financial participation as referred to in paragraph 2, the 
measures eligible for EU financing and the amount of the aid. 

11 

OJ L 214, 4.8.2006, p. 7. 

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Such  contribution  may  cover  up  to  60%  of  eligible  expenditure  in  the  French 
overseas  departments  and  up  to  75%  of  eligible  expenditure  in  the  Azores  and 
Madeira.  Payment  shall  be  made  on  the  basis  of  documentation  provided  by  the 
French  and  Portuguese  authorities.  If  necessary,  checks  may  be  organised  by  the 
Commission and conducted on its behalf by the experts referred to in Article 21 of 
Council Directive 2000/29/EC12. 

Article 24 

Wine 

1. 

2. 

Measures  referred  to  in  Articles  103v,  103w,  103x  and  182a  of  Regulation  (EC) 
No 1234/2007 shall not apply to the Azores and Madeira. 

Notwithstanding  the  second  subparagraph  of  Article  120a(2)  of  Regulation  (EC) 
No 1234/2007,  grapes  from  the  vine  varieties  referred  to  in  point  b)  of  that 
subparagraph,  and  harvested  in  the  Azores  and  Madeira,  may  be  used  for  the 
production of wine which must remain within those regions. 

Portugal shall gradually cease harvesting the parcels planted using the vine varieties 
referred  to  in  Article  120a(2),  second  subparagraph,  point  b)  of  Regulation  (EC) 
No 1234/2007  with,  if  necessary,  the  supports  provided  for  in  Article  103q  of  that 
Regulation. 

3. 

The  measures  referred  to  in  Articles  103v,  103w  and  103y  of  Regulation  (EC) 
No 1234/2007 shall not apply to the Canary Islands. 

Article 25 

Milk 

1. 

For  the  purposes  of  distributing  the  surplus  levy  referred  to  in  Article  79  of 
Regulation (EC) No 1234/2007, only producers who, within the meaning of Article 
65(c) of that Regulation, established and producing in the Azores, market quantities 
exceeding their reference quantity increased by the percentage referred to in the third 
subparagraph of this paragraph shall be deemed to have contributed to the overrun. 

The surplus levy shall be due on quantities exceeding the quota thus increased by the 
percentage  referred  to  in  the  third  subparagraph,  after  reallocation  of  the  unused 
quantities  within  the  margin  resulting  from  this  increase  among  all  the  producers 
within  the  meaning  of  Article  65(c)  of  Regulation  (EC)  No  1234/2007  established 
and producing in the Azores, and in proportion to the reference quantity available to 
each producer. 

The  percentage  referred  to  in  the  first  subparagraph  shall  be  equal  to  the  ratio 
between  the  quantity  of  23 000  tonnes  from  the  2005/2006  year  onwards  and  the 

12 

OJ L 4, 7.1.2000, p. 11. 

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2. 

3. 

4. 

1. 

2. 

total of the reference quantities available on each holding on 31 March 2010. It shall 
apply only to the quota available on 31 March 2010. 

The  quantities  of  milk  or  milk  equivalent  marketed  which  exceed  the  quota  but 
which comply with the percentage referred to in the third subparagraph of paragraph 
1,  after  the  reallocation  referred  to  in  that  same  paragraph,  shall  not  be  taken  into 
account  in  establishing  any  overrun  by  Portugal  as  calculated  in  accordance  with 
Article 66 of Regulation (EC) No 1234/2007. 

The surplus levy scheme applicable to producers of milk provided for in Regulation 
(EC) No 1234/2007 shall not apply in the French overseas departments or, within the 
limit of local production of 4 000 tonnes of milk, in Madeira. 

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

The  method  by  which  the  UHT  milk  thus  reconstituted  has  been  obtained  shall  be 
clearly indicated on the sales labelling. 

Article 26 

Cattle farming 

Until the local numbers of young male bovines reach a level sufficient to ensure the 
maintenance  and  development  of  local  beef  production  in  the  French  overseas 
departments  and  Madeira,  the  possibility  shall  be  introduced  of  importing  bovine 
animals  from  third  countries  for  fattening  and  consumption  in  the  French  overseas 
departments  and  Madeira,  without  applying  import  duties  under  the  Common 
Customs Tariff. The Commission shall adopt, by means of an implementing act, the 
measures necessary to implement this subparagraph and more specifically the means 
for  introducing  the  exemption  from  import  duties  in  respect  of  the  young  male 
bovines introduced into the French overseas departments and Madeira. 

Article 12 and 13(1) shall apply to animals qualifying for the exemption referred to 
in the first subparagraph of this paragraph. 

The numbers of animals qualifying for the exemption referred to in paragraph 1 shall 
be determined in the POSEI programmes, if the need to import is justified, in view of 
developments  in  local  production.  Priority  for  such  animals  shall  be  given  to 
producers keeping animals for fattening at least 50% of which are of local origin. 

In  order  to  take  into  account  the  specific  local  features  of  the  beef  sector  and 
industry, the Commission shall establish by means of a delegated act the conditions 
to which the exemption from import duties is subject. 

3. 

Where  Article  52  and  Article  53(1)  of  Regulation  (EC)  No  73/2009  are  applied, 
Portugal may reduce the national ceiling for sheep and goat payment and suckler cow 

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premium rights. In this case, by means of an implementing act by the Commission, 
the relevant amount shall be transferred from the ceilings established in accordance 
with  Article  52  and  Article  53(1)  of  Regulation  (EC)  No 73/2009  to  the  financial 
allocation referred to in the second indent of Article 29(2) of this Regulation. 

Article 27 

State aid for tobacco production 

Spain is authorised to award aid concerning the production of tobacco in the Canary Islands. 
The granting of this aid may not result in discrimination between producers in the islands. 

The amount of the aid may not exceed EUR 2 980.62 per tonne. The additional aid shall be 
granted for up to 10 tonnes each year. 

Article 28 

Exemption of tobacco from customs duties 

1. 

No customs duties shall be applied to direct imports into the Canary Islands of raw 
and semi-manufactured tobacco falling, respectively, within: 

(a)  CN code 2401; and 

(b) 

the following subheadings: 

– 

– 

– 

– 

– 

– 

– 

– 

2401 10 Tobacco, not stemmed/stripped, 

2401 20 Tobacco, partly or wholly stemmed/stripped, 

ex  2401  20  Outer  coverings  for  cigars  presented  on  supports,  in  reels 
for the manufacture of tobacco, 

2401 30 Tobacco waste, 

ex 2402 10 Unfinished cigars without wrapping, 

ex  2403  10  Cigarette  rag  (finished  mixtures  of  tobacco  for  the 
manufacture of cigarettes, cigars, cheroots and cigarillos), 

ex 2403 91 Homogenised or reconstituted tobacco, whether or not put 
up in sheets or strips, 

ex 2403 99 Expanded tobacco. 

The  exemption  provided  for  in  the  first  subparagraph  is  granted  by  means  of  the 
certificates referred to in Article 11. 

This exemption applies to the products referred to in the first subparagraph, meant to 
be processed in the Canary Islands in order to produce manufactured products ready 

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for  smoking,  subject  to  an  annual  import  limit  of  20 000  tonnes  of  raw  stripped 
tobacco equivalent. 

2. 

The  Commission  shall  adopt  by  means  of  an  implementing  act  the  measures 
necessary  to  implement  paragraph  1  and  more  specifically  the  measures  for 
introducing  the  exemption  from  import  duties  in  respect  of  tobacco  in  the  Canary 
Islands. 

CHAPTER VI 

FINANCIAL PROVISIONS 

Article 29 

Financial resources 

1. 

2. 

The measures provided for in this Regulation, with the exception of Article 21, shall 
constitute  intervention  intended  to  stabilise  the  agricultural  markets  within  the 
meaning of Article 3(1)(b) of Council Regulation (EC) No 1290/200513. 

In respect of each financial year, the Union shall finance the measures provided for 
in Chapters III and IV, up to an annual sum equivalent to: 

–  in the Overseas Departments of France: 

EUR 278.41 million 

–  Azores and Madeira: 

–  Canary Islands: 

EUR 106.21 million 

EUR 268.42 million 

3. 

The  sums  allocated  for  each  financial  year  to  finance  the  measures  provided  for  in 
Chapter III may not exceed the following amounts: 

–  in the Overseas Departments of France: 

EUR 24.8 million 

–  Azores and Madeira: 

–  Canary Islands: 

EUR 21.2 million 

EUR 72.7 million 

The  Commission  shall  establish  by  implementing  act  the  uniform  conditions  under 
which Member States may amend the allocation of resources allocated each year to 
the various products benefiting from the specific supply arrangements. 

4. 

In order to ensure a reasonable and proportional allocation of the finance measures 
with  regard  to  studies,  demonstration  projects,  training  and  technical  assistance 
measures,  the  Commission  shall  establish  by  delegated  act  an  annual  maximum 
amount which may be allocated to these measures. 

13 

OJ L 209, 11.8.2005, p. 1. 

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CHAPTER VII 

GENERAL AND FINAL PROVISIONS 

Article 30 

National measures 

Member States shall take the measures necessary to ensure compliance with this Regulation, 
particularly as regards checks and administrative penalties, and shall inform the Commission 
thereof. 

Article 31 

Communications and reports 

1. 

2. 

3. 

Member  States  shall  communicate  to  the  Commission  not  later  than  15  February 
each  year  the  appropriations  made  available to  them  which  they  intend  to  spend  in 
the  following  year  on  implementation  of  the  forecast  supply  balance  and  for  each 
measure promoting local agricultural production included in the POSEI programmes. 

Member  States shall submit to the Commission,  not later than  31 July each year, a 
report on the implementation of the measures provided for in this Regulation over the 
previous year. 

Not  later  than  30  June  2015,  and  thereafter every  five  years,  the  Commission  shall 
submit  a  general  report  to  the  European  Parliament  and  the  Council  showing  the 
impact  of  the  action  taken  under  this  Regulation,  including  in  the  banana  sector, 
accompanied if applicable by appropriate proposals. 

Article 32 

Commission powers 

When  powers  are  granted  to  the  Commission,  it  shall  act  in  accordance  with  the  procedure 
referred to in Article 33, in the case of delegated acts, and in accordance with the procedure 
referred to in Article 34, in the case of implementing acts. 

Article 33 

Delegated acts 

1. 

The  power  to  adopt  the  delegated  acts  referred  to  in  this  Regulation  shall  be 
conferred on the Commission for an indeterminate period of time. 

As  soon  as  it  adopts  a  delegated  act,  the  Commission  shall  provide  simultaneous 
notification thereof to the European Parliament and to the Council. 

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2. 

The delegation of power referred to in paragraph 1 may be revoked at any time by 
the European Parliament or by the Council. 

The institution which has commenced an internal procedure for deciding whether to 
revoke the delegation of power shall inform the other legislator and the Commission 
at the latest one month before the final decision is taken, stating the delegated powers 
which could be subject to revocation and the reasons for a revocation. 

The decision of revocation shall put an end to the delegation of the powers specified 
in that decision. It shall take effect immediately or at a later date specified therein. It 
shall  not  affect  the  validity  of  the  delegated  acts  already  in  force.  It  shall  be 
published in the Official Journal of the European Union. 

3. 

The European Parliament and the Council may object to the delegated act within a 
period of two months from the date of notification. At the initiative of the European 
Parliament or the Council this period shall be extended by one month. 

If,  on  expiry  of  that  period,  neither  the  European  Parliament  nor  the  Council  has 
objected to the delegated act, or if, before that date, the European Parliament and the 
Council  have  both  informed  the  Commission  that  they  have  decided  not  to  raise 
objections, the delegated act shall enter into force at the date stated in its provisions. 

If the European Parliament or the Council objects to a delegated act, it shall not enter 
into  force.  The  institution  which  objects  shall  state  the  reasons  for  objecting  to  the 
delegated act. 

Article 34 

Implementing acts - committee 

[To be completed following the adoption of the regulation on control mechanisms, as referred 
to  in  Article  291(2)  of  the  TFEU,  currently  the  subject  of  discussion  by  the  European 
Parliament and the Council]. 

Article 35 

Repeal 

Regulation (EC) No 247/2006 is hereby repealed. 

References  made  to  the  repealed  Regulation  shall  be  construed  as  being  made  to  this 
Regulation and shall be read in accordance with the correlation table set out in the Annex. 

Article 36 

Entry into force 

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

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[It shall apply from 1 January 2012.] 

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

Done at [ ], [date]  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX 

CORRELATION TABLE 

Regulation (EC) No 247/2006 

This Regulation 

Article 1 

Article 2 

Article 1 

Article 8 

Article 3(1) and (2) 

Article 9(1) and (2) 

Article 3(3) 

Article 3(4) 

Article 9(3) 

Article 9(4) 

Article 10 

Article 12 

Article 4(1) and (2) 

Article 13(1) and (2) 

Article 4(3) 

Article 5 

Article 6 

Article 7 

Article 8 last sentence 

Article 13(3) 

Article 13(4) 

Article 13(5) 

Article 14 

Article 15 

Article 16 

Article 11 

Article 9(1) and Article 10 

Article 18(1) 

Article 9(2) and (3) 

Article 11 

Article 3 

Article 4 

Article 12 (a), (b) and (c)  

Article 18(2)(a), (b) and (c) 

Article 12(d), (e), (f), (g) 

Article 13 

Article 14 

Article 15 

Article 16 

Article 17 

Article 18 

Article 19 

Article 20 

Article 21 

Article 22 

Article 23 

Article 5 

Article 7 

Article 20 

Article 21 

Article 22 

Article 23 

Article 24 

Article 25 

Article 26 

Article 27 

Article 28 

Article 29 

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Article 24 

Article 27 

Article 28 

Article 29 

Article 33 

Article 6 

Article 30 

Article 31 

Article 35 

Article 36 

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