CELEX: 51995PC0434(01)
Language: en
Date: 1995-11-10
Title: Proposal for a Council Regulation (EC) on the common organization of the market in fruit and vegetables

Avis juridique important

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51995PC0434(01)

Proposal for a Council Regulation (EC) on the common organization of the market in fruit and vegetables  /* COM/95/0434 FINAL - CNS 95/0247 */  

Official Journal C 052 , 21/02/1996 P. 0001

Proposal for a Council  Regulation (EC) on the common organization of the market in fruit and vegetables(96/C  52/01)COM(95) 434 final - 95/0247 (CNS)(Submitted by the Commission on 10 November  1995)THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 42 and  43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of the Economic and Social Committee, Whereas at the present time various changes are placing the fruit and vegetable sector in a new  situation to which producers must adjust; whereas, accordingly, a reorientation of the basic rules  of the market organization for the sector is warranted; whereas, in view of the numerous amendments  made to Council Regulation (EEC) No 1035/72 of 18 May 1972 on the common organization of the market  in fruit and vegetables (1), as last amended by Commission Regulation (EC) No 1363/95 (2), a new  regulation should, for reasons of clarity, be adopted; Whereas it is desirable to insert in that new regulation the main provisions of Council Regulation  (EEC) No 3285/83 of 14 November 1983 laying down general rules for the extension of certains rules  issued by producers' organizations in the fruit and vegetables sector (3), as last amended by  Regulation (EEC) No 220/92 (4), of Council Regulation (EEC) No 1319/85 of 23 May 1985 on the  reinforcement of supervision of the application of Community rules on fruit and vegetables (5), as  last amended by Regulation (EEC) No 404/93 (6), of Council Regulation (EEC) No 2240/88 of 19 July  1988 fixing, for peaches, lemons and oranges, the rules for applying Article 16b of Regulation  (EEC) No 1035/72 on the common organization of the market in fruit and vegetables (7), as last  amended by Regulation (EC) No 1327/95 (8), of Council Regulation (EEC) No 1121/89 of 27 April 1989  on the introduction of an intervention threshold for apples and cauliflowers (9), as last amended  by Regulation (EC) No 1327/95, and of Council Regulation (EEC) No 1198/90 of 7 May 1990  establishing a Community register of citrus cultivation (10); whereas these Regulations should  therefore be repealed; Whereas classification using common obligatory standards of fruit and vegetables both marketed  within the Community and exported to third countries provides a reference framework that encourages  fair trading and market transparency and also eliminates products of unsatisfactory quality from  the market; whereas compliance with these standards thus also helps to improve the profitability of  production; Whereas it would be desirable, for reasons of simplicity, to adopt as the standards applicable  under the Community's market organization those adopted by the United Nations Economic Commission  for Europe in respect of products covered by that organization; whereas it is necessary to set the  terms on which these international standards can be adjusted to the specific requirements of the  Community; Whereas standardization cannot be fully effective unless it is applied at all marketing stages and  on departure from the production region; whereas exemption may, nevertheless, be provided for in  the case of certain operations which either are very marginal and specific or take place at the  start of the distribution chain, or in the case of products intended for processing; whereas  account should also be taken of the possibility of shortages; whereas consumer requirements as  regards the characteristics of fruit and vegetables mean that the origin of products should be  included in the labelling up to and including the final retail stage; Whereas the production and marketing of fruit and vegetables should take full account of  environmental concerns, including cultivation practices, the management of waste materials and the  destruction of products withdrawn from the market, in particular as regards the protection of water  quality, the maintenance of biodiversity and the upkeep of the countryside; Whereas producer organizations are the basic elements in the market organization, the decentralized  operation of which they ensure at their level; whereas, in the face of ever greater concentration  of demand, the grouping of supply through these organizations is more than ever an economic  necessity in order to strengthen the position of producers in the market; whereas such grouping  must be effected on a voluntary basis and must prove its utility by the scope and efficiency of the  services offered by producer organizations to their members; Whereas a producer organization cannot be recognized by its Member State as able to contribute to  achievement of the objectives of the common market organization unless its articles of association  impose certain requirements on it and its members; whereas producer groups wishing to acquire the  status of producer organizations in accordance with this Regulation should be allowed the benefit  of a transitional period during which national and Community financial support can be given against  certain commitments by the group; Whereas a transitional period should be allowed to producer organizations already recognized  pursuant to Regulation (EEC) No 1035/72 which cannot immediately meet the requirements of this  Regulation for recognition; whereas such organizations must be able to show themselves able to make  the necessary changes; Whereas in order to give producer organizations greater responsibility for their financial  decisions in particular and to gear the public resources assigned to them towards future  requirements, terms should be set for the use of these resources; whereas joint financing of  operational funds set up by producer organizations presents itself as an appropriate solution; Whereas the establishment and proper functioning of operational funds requires that producer  organizations should take charge of the whole of the fruit and vegetable production of their  members; Whereas, in order to further boost the impact of producer organizations and associations thereof  and ensure the market as much stability as is desirable, Member States should be allowed on certain  conditions to extend to non-member producers in their region the rules, particularly on production,  marketing and environmental protection, adopted for its members by the organization or association  for the region concerned; whereas, where proper justification is given, certain costs arising from  this extension of the rules can be charged to the producers concerned since they will benefit from  the extension; Whereas interbranch organizations set up on the initiative of individual or already grouped  operators can, if they account for a significant proportion of the members of the various  occupational categories of the fruit and vegetable sector, contribute to behaviour taking closer  account of market realities and facilitate a commercial approach that will improve production  reporting, that is to say the organization of production, product presentation and marketing;  whereas since the work of these organizations is able to contribute in general to attaining the  objectives of Article 39 of the Treaty and in particular to those of the market organization for  fruit and vegetables it should, once the relevant forms of action are defined, be possible to grant  specific recognition to those organizations which provide proof of a certain degree of  representativeness and carry out practical action in regard to the abovementioned objectives;  whereas the provisions on extending the rules adopted by producer organizations and their  associations and on sharing the costs resulting from such extension should, given the similarity of  the objectives pursued, also apply to interbranch organizations; Whereas to stabilize prices it is desirable that producer organizations should be able to intervene  on the market, in particular by deciding not to put up for sale particular quantities at particular  periods; whereas these withdrawal operations must not be regarded as an alternative outlet to the  market itself; whereas Community financing of withdrawals should therefore be restricted to a set  percentage of production and the Community compensation granted at a reduced level, though use of  the operational funds for this purpose should be permitted; whereas for simplicity Community  compensation should be at a single flat rate for each product; whereas, to achieve a comparable  reduction for all products, certain differentiations are required; Whereas intervention can be fully effective only if the products withdrawn from the market are not  reintroduced into the normal marketing channel again; whereas various alternative uses to which  they may be put should be specified so that their destruction is avoided wherever possible; Whereas this new way of managing withdrawals will allow the provisions in force on the implications  of threshold overruns to be repealed immediately; whereas it is, however, reasonable to retain the  underlying principle of those provisions for a transitional period and to give the Commission  authority to take action on the basis of that principle if the need arises; Whereas by Regulation (EC) No 3290/94 (11) the Council has adopted the adjustments and transitional  arrangements required in the agricultural sector in order to implement the agreements concluded in  the context of the Uruguay Round of multilateral trade negotiations, in particular the new trading  arrangements with third countries in the fruit and vegetable sector; whereas the provisions of  Regulation (EEC) No 1035/72, as amended by Annex XIII to Regulation (EC) No 3290/94 should be  inserted in this Regulation; whereas, however, where products are imported into the Community for  industrial processing, they are not sold on consignment; whereas verification of the entry price  can therefore be made on other bases than a flat rate value; whereas the relevant provisions should  therefore be supplemented in this regard; Whereas the rules of the market organization should be complied with by all operators to whom they  apply, otherwise their impact will be distorted with all the resulting consequences in terms of  both the use of public resources and the interplay of competition; whereas a special corps of  Community inspectors should be set up for this sector; whereas for both budget reasons and  effectiveness the corps should consist of both Commission and national officials; Whereas one of the indispensable elements for the proper management of the common organization of  the market is detailed knowledge of the market; whereas measures should therefore be provided for  to this end; Whereas the granting of certain aid would compromise the functioning of the internal market;  whereas, therefore, the provisions of the Treaty enabling aid granted by Member States to be  examined and enabling aid which is incompatible with the common market to be prohibited, should be  extended to cover the fruit and vegetable sector; Whereas the common organization of the market in fruit and vegetables must take proper and  simultaneous account of the objectives set out in Articles 39 and 110 of the Treaty; Whereas, to facilitate the implementation of the proposed measures, a procedure for close  cooperation between the Member States and the Commission by means of a management committee should  be set up, HAS ADOPTED THIS REGULATION: Article 11. This Regulation sets up a common organization of the market in  fruit and vegetables. 2. The organization shall cover the following products: >TABLE>3. The marketing years for the products listed in paragraph 2 shall be determined  in accordance with the procedure laid down in Article 45. TITLE I CLASSIFICATION OF PRODUCTS Article 21. Products to be delivered fresh to the  consumer may be classified by reference to a set of standards. 2. The UN/ECE standards for fresh fruit and vegetables recommended by the Economic Commission for  Europe's Working Party on Perishable Product Standardization and Quality Improvement that exist on  the date of entry into force of this Regulation shall be adopted in accordance with the procedure  laid down in Article 45 for the purpose of implementing the market organization in the products  listed in Annex I hereto. Until these standards are adopted, the standards defined under Article 2  of Regulation (EEC) No 1035/72 shall continue to apply. 3. Derogations from the standards adopted pursuant to paragraph 2 which prove necessary in order to  meet requirements specific to the market organization shall be adopted in accordance with the  procedure laid down in Article 45. Article 31. Products covered by the quality standards adopted may not be displayed or offered  for sale, sold, delivered or marketed in any other manner within the Community than in conformity  with those standards. However, Member States may exempt the following from the requirement of complying with the quality  standards or with some of their provisions: (a) products displayed or offered for sale, sold, delivered or marketed in any other manner by the  grower on wholesale markets, in particular on producer markets, situated in the production area; (b) products shipped from those wholesale markets to preparation and packing stations and storage  facilities situated in the same production area. Where the second subparagraph is applied, the Member State concerned shall inform the Commission  and shall notify it of the measures taken. 2. The following shall not be required to conform to the quality standards within a given  production area: (a) products sold or delivered by the grower to preparation and packing stations or storage  facilities, or shipped from his holding to such stations; (b) products shipped from storage facilities to preparation and packaging stations. 3. The following shall not be required to conform to the quality standards: (a) products shipped to processing plants, unless minimum quality criteria for products intended  for industrial processing are set in accordance with the procedure laid down in Article 45. Evidence must be supplied that such products fulfil the conditions laid down, in particular with  regard to their intended use; (b) products transferred by the producer on his holding to consumers for their personal use or sold  retail in a particular region as products traditionally consumed locally. 4. Detailed rules for the application of this shall be adopted in accordance with the procedure  laid down in Article 45. Article 4Where the supply of products conforming to the quality standards is insufficient to  meet consumer demand, measures derogating from their application for a limited period shall be  adopted in accordance with the procedure laid down in Article 45. Article 51. The information particulars required by the quality standards must be shown legibly  in an obvious position on one side of the packaging, either indelibly printed directly onto the  package or on a label firmly affixed to the package. 2. For goods shipped in bulk and loaded directly onto a means of transport, the particulars  referred to in paragraph 1 shall be given in a document accompanying the goods or shown on a notice  placed in an obvious position inside the means of transport. Article 6At the retail stage, where products are put up in packages or prepackaging within the  meaning of Council Directive 79/112/EEC (12), the information particulars required shall be legible  and conspicuous. Products may be presented unpackaged, provided that the retailer displays with the goods offered  for sale a card showing prominently and legibly the information particulars specified in the  quality standards relating to: - variety, - origin of the product, - quality class. Article 7To establish whether products covered by quality standards conform to the provisions of  Articles 3 to 6, checks shall be made by sampling at all marketing stages and during transport by  the authorities appointed by each Member State in accordance with Title VI. These checks shall preferably be made prior to dispatch from production areas when the products are  being packed or loaded. Member States shall communicate to the other Member States and to the Commission the names of the  authorities which they have appointed to be responsible for checking. Article 81. Products covered by quality standards shall be accepted for importation from third  countries only if they conform to the quality standards or to standards at least equivalent to  them. 2. Articles 3 to 7 shall apply to products imported into the Community, after completion of the  import formalities in accordance with current Community rules. Article 91. Products covered by quality standards shall be accepted for export to third  countries only if they conform to the quality standards. Derogations may, however, be granted in accordance with the procedure laid down in Article 45 to  suit the requirements of the intended markets. 2. Products for export to third countries shall be subject to a quality control before they leave  the customs territory of the Community. Article 10Measures to ensure uniform application of the provisions of this Title shall be  adopted in accordance with the procedure laid down in Article 45. For products intended to be imported into the Community, such measures may consist in approval of  the official inspection authorities of the exporting third country. TITLE II PRODUCER ORGANIZATIONS Article 111. For the purposes of this Regulation, 'producer  organization' means any legal entity: (a) which is formed on the own initiative of growers of the fruit and/or vegetables listed in  Article 1 (2) in order, in particular: (1) to ensure that production is planned and adjusted to demand, particularly in terms of quality  and quantity; (2) to promote concentration of supply by placing on the market the products produced by its  members; (3) to reduce production costs and stabilize prices; (4) to promote the use of cultivation practices, production techniques and waste-management  practices that are environmentally sound, in particular to protect the quality of water, soil and  landscape and encourage biodiversity; (b) whose rules of association require its producer members, in particular: (1) to apply the rules adopted by the producer organization relating to production reporting,  production itself, marketing and protection of the environment; (2) to belong to only one producer organization in respect of a given holding; (3) to market their entire production through the producer organization. However, where the  producer organization so authorizes and in compliance with the terms and conditions it lays down,  the producer members may: - sell not more than 10 % of their production directly on their holding to consumers for their  personal needs, and furthermore: - market themselves or through another producer organization designated by their own organization,  quantities of products which are marginal in relation to the volumes marketable by their  organization, - market through another producer organization designated by their own organization products which,  because of their characteristics, are not normally covered by the commercial activities of the  organization concerned; (4) to provide the information requested by the producer organization for statistical purposes, in  particular on growing areas, quantities cropped, yields, and direct sales; (5) to pay the contributions provided for in its rules of association for the establishment and  replenishment of the operational guidance fund provided for in Article 15; (c) whose rules of association provide for: (1) procedures for determining, adopting and amending the rules referred to in point 1 of (b); (2) the contributions needed to finance the producer organization; (3) rules enabling the producer members democratically to scrutinize their organization and its  decisions; (4) penalties for infringement of obligations under the rules of association, particularly  non-payment of contributions, and of the rules laid down by the producer organization; (5) rules on the admission of new members, particularly a minimum membership period; (d) which has been recognized by the Member State concerned pursuant to paragraph 2. 2. Member States shall recognize as producer organizations for the purposes of this Regulation all  producer groups applying for such recognition, on condition that: (a) they meet the requirements laid down in paragraph 1 and provide the relevant evidence,  including proof that they have a minimum number of members and cover a minimum volume of marketable  production, to be determined in accordance with the procedure laid down in Article 45; (b) there is sufficient evidence that they can carry out their activities properly, both over time  and in terms of effectiveness; (c) they actually provide their producer members with technical assistance in using environmentally  sound cultivation practices and for storing, packaging and marketing their produce and, in  discharging their allotted tasks, ensure proper commercial management of their activities,  including keeping appropriate accounts. Article 121. Member States shall: (a) decide whether to grant recognition to a producer organization within three months of the  lodging of an application with all relevant supporting documents; (b) decide, where necessary, to withdraw recognition on the basis of checks which they must carry  out at frequent intervals to ascertain that producer organizations meet the terms and conditions  for recognition, and shall adopt the penalties to apply to such organizations in the event of their  recognition being withdrawn; (c) notify the Commission, within two months, of every decision to grant, refuse or withdraw  recognition. 2. The terms and conditions on which the Member States are to report to the Commission on the  activities of producer organizations shall be drawn up in accordance with the procedure laid down  in Article 45. The Commission shall check that Article 11 is complied with by carrying out checks in accordance  with Title VI and shall, where appropriate, call on Member States to withdraw recognition. Article 131. Producer organizations recognized pursuant to Articles 13 and 13a of Regulation  (EEC) No 1035/72 up to 30 June 1995 which are unable to qualify for recognition pursuant to Article  11 of this Regulation without a transitional period may continue to operate under the provisions of  Title IV for two years after its entry into force, provided they remain in compliance with the  requirements of the said Articles of Regulation (EEC) No 1035/72. 2. The period of two years referred to in paragraph 1 may be extended to four years provided the  organization concerned: (a) by a set date falling before the end of the two-year period referred to in paragraph 1,  presents to the relevant Member State, which must either accept or reject it, a plan of action with  a view to attaining recognition pursuant to Article 11 (2); (b) can show, when presenting its plan, that it has set up the operational fund referred to in  Article 15; (c) undertakes, on pain of a penalty to be determined by the Member State, to complete the  implementation of its action plan before the end of the four-year period. 3. Producer organizations which no longer meet the conditions laid down in paragraph 2, whatever  the reason and at whatever moment, shall lose their status as such on the terms set out in Article  12 (1) (b). However, the first subparagraph shall apply without prejudice to any individual rights which the  producer organization may have acquired in accordance with Regulation (EEC) No 1035/72. Article 141. New producer organizations not recognized pursuant Regulation (EEC) No 1035/72 may  be allowed a transitional period of no more than four years in which to meet the condistions for  recognition laid down in Article 11. In order to qualify, they shall present a phased plan of action to the relevant Member State,  acceptance of which shall signal the start of the four-year period referred to in the first  subparagraph and shall constitute a preliminary recognition. 2. During the four years following the date of preliminary recognition, Member States may grant to  the producer organizations referred to in paragraph 1: (a) aid to encourage their formation and facilitate their administrative operation; (b) aid, provided either directly or through credit institutions in the form of special loans, to  cover part of the investments required to attain recognition and set out in the plan referred to in  the second subparagraph of paragraph 1. 3. The aid referred to in paragraph 2 shall be reimbursed by the Commission in accordance with  Article 51 (2). 4. Before granting preliminary recognition, Member States shall inform the Commission of their  intentions and the financial implications. 5. Presentation of a recognition plan by a producer organization to a Member State shall entail a  commitment by the organization to submit to national and Community checks in accordance with Title  VI, in particular with regard to proper management of public funds. 6. Member States shall adopt the penalties to apply to producer organizations which do not fulfil  their undertakings. Article 151. Financial assistance shall be granted on the terms set out in this Article to  producer organizations setting up an operational fund maintained by levies on their member  producers directly proportional to the quantities of fruit and vegetables actually marketed by  them. This financial assistance shall be additional to be operational fund. 2. Operational funds as indicated in paragraph 1 shall be used: (a) to finance both market withdrawals and processing of citrus fruit on the terms set out in  paragraph 3; (b) to finance an operational programme submitted to the competent national authorities and  approved by them under paragraph 6. Such funds may also be used in whole or in part to finance an action plan submitted by a producer  organization as referred to in Article 13. 3. Use of the operational fund to finance withdrawals and/or the processing of citrus fruit shall  be permissible only if an operational programme has been approved by the competent national  authorities. Financing shall take one of the following forms: (a) withdrawal compensation for products not listed in Annex II; (b) a supplement to the Community withdrawal compensation; (c) a supplement to the minimum price to be paid to producers for citrus fruit delivered for  processing pursuant to Council Regulations (EEC) No 1035/77 (13) and (EC) No 3119/93 (14). Member States may set a maximum level to the compensation or supplements so decided, but not  exceeding the maximum level of withdrawal prices applying in the 1995/96 marketing year in  accordance with Article 16 (3a), Article 16a, Article 16b and the first indent of Article 18 (1)  (a) of Regulation (EEC) No 1035/72. The proportion of the operational fund which may be used to finance withdrawals may not exceed 40 %  in the first year, 35 % in the second, 30 % in the third, 20 % in the fourth and 10 % from the  fifth year onwards, commencing from the date of approval by the competent national authorities of  the first operational programme submitted by the producer organization and approved by them. 4. Operational programmes as indicated in paragraph 2 (b) shall: (a) have as their objectives the improvement of product quality, boosting products' commercial  value, promotion of the products targeted on consumers and creation of organic product lines; (b) include action to develop the use of environmentally sound techniques by the producer members  with regard to both cultivation practices and the management of waste materials; (c) make financial provision for the technical and human resources required to ensure compliance  with plant-health standards and rules, and maximum permitted levels of residues. 'Environmentally sound techniques' shall mean, in particular, those which help to achieve the aims  of Article 1 (a), (b) and (c) of Council Regulation (EEC) No 2078/92 (15). 5. The financial assistance referred to in paragraph 1 shall be equal to the amount of the levies  indicated in that paragraph as actually paid but limited to 50 % of the actual expenditure incurred  under paragraph 2. This percentage shall be 60 % where an operational programme or part of an  operational programme is submitted: (a) either by several Community producer organizations operating in different Member States on  transnational schemes, except for operations as referred to in paragraph 2 (a); (b) or by one or more producer organizations engaged in schemes operated on an interbranch basis. 6. The assistance referred to in paragraph 5 shall be financed as to 20 % by the Member States and  as to 80 % by the Community. However, financing shall be as to 10 % by the Member States and as to 90 % by the Community in the  case of producer organizations operating in 'Objective 1' regions within the meaning of Council  Regulation (EEC) No 2052/88 (16). Article 161. Operational programmes as referred to in Article 15 (2) (b) shall be submitted to  the competent national authorities, who shall approve or reject them or request their modification  in line with the provisions of this Regulation. Member States shall establish a national framework for drawing up the general conditions relating  to the measures referred to in Article 15 (4) (b). They shall submit their proposed framework to  the Commission which may request modifications within three months if it finds that the proposal  does not enable the aims set out in Article 130r of the Treaty and in the Community programme of  policy and action in relation to the environment and sustainable development to be attained. 2. By 31 January at the latest each year, producer organizations shall notify the volume of their  operational fund to the Member State. The Member State shall in turn notify the organization of the  amount of financial assistance in line with the limits set out in Article 15 (5). 3. An association of producer organizations recognized by a Member State may replace its members  for the purposes of managing their operational fund within the meaning of Article 15 (1) and for  establishing, implementing and submitting operational programmes as referred to in Article 15 (2)  (b). In such cases the association shall receive the financial assistance and make the notification  referred to in paragraph 2 of this Article. 4. Operational programmes and their private and public financing shall have a minimum duration of  three and a maximum duration of five years. 5. Submission of an operational programme to a Member State by a producer organization or, if the  option indicated in paragraph 3 is taken up, an association of producer organizations, shall imply  a commitment by the organization or association to submit to national and Community checks in  accordance with Title VI, in particular as regards proper management of public resources. Article 17Should the general instruments of the common organization of the market prove  inadequate or inappropriate with regard to the products listed in Article 1 which are of major  local or regional importance in economic or ecological terms and which face strong international  competition, specific measures to improve the competitiveness of these products and to promote them  may be taken in accordance with the procedure laid down in Article 45. These measures may, in particular, include measures of the kind referred to in Article 19 (1) (c). Article 181. In cases where a producer organization or an association of producer organizations  which have adopted the same rules, which operates in a specific economic area is considered, in  respect of a specific product, to be representative of production and producers in that area, the  Member State concerned may, at the request of the organization or association, make the following  rules binding on producers established in the area who do not belong to one of the organizations  referred to above. (a) the rules referred to in Article 11 (1) (b) (1); (b) the rules adopted by the organization or association relating to market withdrawals; on condition that the rules: - have been in force for at least one year, - are included in the exhaustive list in Annex III, - are made binding for no more than three marketing years. 2. For the purposes of this Article, 'economic area' means a zone made up of adjoining or  neighbouring production regions in which production and marketing conditions are homogeneous. 3. A producer organization or association of organizations shall be deemed representative within  the meaning of paragraph 1 where its members account for at least two-thirds of the producers in  the economic area in which it operates and it covers at least two-thirds of the production of that  area. 4. The rules which are made binding on all producers in a specific economic area: (a) must not cause any harm to other producers in the Member State or in the Community; (b) shall not apply, unless they expressly cover them, to products delivered for processing under a  contract signed before the beginning of the marketing year, with the exception of the rules on  reporting production referred to in paragraph 1 (a); (c) must not clash with Community rules in force. 5. Member States shall notify the Commission forthwith of the rules which they have made binding on  all producers in a specific economic area. The Commission shall decide that a Member State must repeal an extension of the rules decided on by  that Member State: (a) if it finds that the extension to other producers excludes competition in a substantial part of  the internal market or jeopardizes free trade, or that the objectives of Article 39 of the Treaty  are endangered, (b) if it finds that Article 85 (1) of the Treaty applies to the agreement, decision or practice  which it has been decided to extend to other producers. The Commission's decision with regard to  that agreement, decision or practice shall apply only from the date of such a finding, (c) where, following ex-post checks under Title VI, it finds that this Article has not been  complied with. 6. Where paragraph 1 is applied, the Member State concerned may decide, on scrutiny of evidence  presented, that non-member producers shall be liable to the organization, or where appropriate the  association, for the part of the membership fees paid by the producer members, in so far as these  are used to cover: (a) administrative costs resulting from applying the rules referred to in paragraph 1, (b) the cost of research, market studies and sales promotion undertaken by the orgnaization or  association and benefiting all producers in the area. 7. Member States shall notify a list of economic areas as referred to in paragraph 2 to the  Commission. Within one month of notification, the Commission shall approve the list or shall, after  consultation with the Member State concerned, decide on the amendments which the latter must make  to it. TITLE III INTERBRANCH ORGANIZATIONS AND AGREEMENTS Article 191. For the purposes of this  Regulation, 'recognized interbranch organizations', hereinafter referred to as 'interbranch  organizations', means legal entities which: (a) are made up of representatives of economic activities linked to the production and processing  of and trade in the products referred to in Article 1 (2); (b) are established at the initiative of all or some of the organizations or associations which  constitute them; (c) carry out several of the following measures in one or more regions of the Community, taking  account, where relevant, of the interests of consumers: - improving knowledge and the transparency of production and the market, - helping to coordinate better the way fruit and vegetables are placed on the market, in particular  by means of research and market studies, - drawing up standard forms of contract compatible with Community rules, - exploiting the value of the fruit and vegetables produced, - providing the information and carrying out the research necessary to adjust production towards  products more suited to market requirements and consumer tastes and expectations, in particular  with regard to product quality and protection of the environment,- seeking ways of restricting the use of plant-health products and other inputs and ensuring  product quality and soil and water conservation, - developing methods and instruments for improving product quality, - exploiting the potential of and protecting organic farming as well as designations of origin,  quality labels and geographical denominations, - laying down rules, as regards the production and marketing rules set out in Annex III, which are  stricter than Community or national rules; (d) have been recognized by the Member State concerned on the terms set out in paragraph 2. 2. Member States shall recognize as interbranch organizations all organizations established on  their territory which make an appropriate application, on condition that: (a) they carry out their activity in one or more regions in that territory; (b) they represent a significant share of the production and processing of and, where relevant, the  trade in fruit and vegetables and products processed from fruit and vegetables in the region or  regions in question and, where more than one region is involved, they can demonstrate a minimum  level of representativity in each region for each of the branches that they group; (c) they carry out several of the measures referred to in paragraph 1 (c); (d) they are not themselves engaged in the production or processing of, or trade in, fruit and  vegetables or products processed from fruit and vegetables. 3. Before granting recognition Member States shall notify the Commission of the interbranch  organizations which have applied for recognition, providing all relevant information about their  representativity and their various activities, together with all other information needed for an  assessment. The Commission may object to recognition within a time limit of 60 days after notification. 4. Member States shall(a) decide whether to grant recognition within three months of the lodging  of an application, with all relevant supporting documents; (b) decide, where necessary, to withdraw recognition on the basis of checks which they must carry  out at frequent intervals to ascertain that interbranch organizations meet the terms and conditions  for recognition, and shall adopt the penalties to apply to such organizations in the event of their  recognition being withdrawn; (c) notify the Commission, within two months, of any decision to grant, refuse or withdraw  recognition. 5. The terms and conditions on which the Member States are to report to the Commission on the  activities of interbranch organizations shall be drawn up in accordance with the procedure laid  down in Article 45. The Commission shall check that paragraph 2 is complied with by carrying out checks in accordance  with Title VI and may, as a result of these checks, ask a Member State to withdraw recognition. 6. Recognition shall constitute an authorization to carry out the measures listed in paragraph 1  (c), consistent with the terms of this Regulation. Article 201. In cases where an interbranch organization operating in a specific region or  regions is considered to be representative of the production and processing of and, where relevant,  trade in a given product, the Member State concerned may, at the request of the organization, make  some of the decisions or agreements agreed on within that organization binding for a limited period  on other operators in the region or regions in question, whether individuals or groups, who do not  belong to the organization. 2. An interbranch organization shall be deemed representative within the meaning of paragraph 1  where it accounts for at least two-thirds of the production or processing of, or trade in, fruit  and vegetables in the region or regions concerned. Where the application for extension of its rules  to other operators covers more than one region, the organization must demonstrate a minimum level  of representativity for each of the branches it groups in each of the regions concerned. 3. The rules for which extension to other operators may be requested: (a) must concern one of the following aims: - production and market reporting, - stricter production rules than any laid down in Community or national rules, - rules on marketing, - rules on protecting the environment, - measures to promote and exploit the value of products, - measures to protect organic farmings as well as designations of origin, quality labels and  geographical denominations. The rules referred to in the second, third and fourth indents must not be other than those which  appear in Annex III; (b) must have been in force for at least one year; (c) may be made binding for no more than three years; (d) must not cause any harm to other operators in the Member State or the Community. Article 211. Member States shall notify the Commission forthwith of the rules which they have  made binding on all operators in one or more specific regions. The Commission shall decide that a Member State must repeal an extension of the rules decided on by  that Member State in the cases referred to in the second subparagraph of Article 18 (5). 2. Where rules are made binding pursuant to this Article on operators who do ot belong to an  interbranch organization, the Member State concerned may decide, on scrutiny of evidence presented,  that operators, whether or not individuals, who are not members shall be liable to the organization  for all or part of the membership fees paid by the members. TITLE IV INTERVENTION ARRANGEMENTS Article 221. Producer organizations and their  associations may choose not to put up for sale products listed in Article 1 (2) contributed by  their members, both in quantities and for periods which they consider appropriate. 2. The destination of products withdrawn from the market pursuant to paragraph 1 must be fixed by  the producer organization or association in such a way as not to disturb the normal disposal of the  products in question and must respect the environment, particularly as regards water and landscape  quality. 3. Where paragraph 1 is applied to any one of the products listed in Annex II which meet the  relevant standards, producer organizations and their associations shall pay their producer members  the Community withdrawal compensation fixed pursuant to Article 25, up to a ceiling of 10 % of  marketed production. The 10 % limit set in the first subparagraph shall apply to the marketed production of only the  members of the producer organization concerned, or of another organization in cases of application  of the second and third indents of Article 11 (1) (b) (3) withdrawals pursuant to Article 23  excluded. 4. The 10 % ceiling referred to in paragraph 3 shall apply from the fifth marketing year following  the date of entry into force of this Regulation. Withdrawals carried out during the transitional  period covering the four previous marketing years may not exceed the following percentages of  marketed production as defined in accordance with the procedure laid down in Article 45: 50 % in  the first marketing year, 40 % in the second, 30 % in the third and 20 % in the fourth. However, in the case of citrus fruit these percentages shall be: 30 % in the first marketing year,  25 % in the second, 20 % in the third and 15 % in the fourth. The second subparagraph of paragraph 3 shall apply to this paragraph. Article 23In connection with products listed in Annex II, producer organizations shall allow the  benefits of Article 22 to growers who are not members of any of the collective structures provided  for in this Regulation, if they so request. However, the Community withdrawal compensation shall be reduced by 10 %. In addition, the amount  paid shall take account, on scrutiny of the evidence, of the overall withdrawal costs borne by the  members. The compensation may not be granted on a volume greater than 10 % of the grower's marketed  production. Article 24Producer organizations and their associations shall notify full details concerning the  implementation of Articles 22 and 23, and in particular the measures taken to ensure  environmentally sound practice in connection with withdrawals, to their national authorities, which  shall forward the information to the Commission. The information to be notified shall be determined, as necessary, in accordance with the procedure  laid down in Article 45. Member States shall establish a national framework for drawing up the general conditions relating  to the measures referred to in Article 15 (4) (b). They shall submit their proposed framework to  the Commission which may request modifications within three months if it finds that the proposal  does not enable the aims set out in Article 130r of the Treaty and in the Community programme of  policy and action in relation to the environment and sustainable development to be attained. Article 251. For the first marketing year following the entry into force of this Regulation, the  Community withdrawal compensation shall, for each product listed in Annex II other than citrus  fruit, be equal to the average monthly withdrawal price applicable for the 1995/96 marketing year  pursuant to Articles 16 (3a), 16a, 16b and the first indent of Article 18 (1) (a) of Regulation  (EEC) No 1035/72. From the fifth marketing year following the entry into force of this Regulation, the Community  withdrawal compensation shall be equal, for each of the products in question, to 85 % of the  compensation fixed pursuant to the first subparagraph. The difference between the compensation referred to in the first subparagraph and that referred to  in the second shall be absorbed in equal instalments from the second to the fifth marketing years  following the entry into force of this Regulation. 2. In the case of citrus fruit, the Community withdrawal compensation shall, for the first  marketing year following the entry into force of this Regulation and for each product, except  satsumas, be equal to the lowest withdrawal price applicable for the 1995/96 marketing year  pursuant to Articles 16a, 16b and the first indent of Article 18 (1) (a) of Regulation (EEC) No  1035/72, and for satsumas to the highest withdrawal price. From the fifth marketing year following the entry into force of this Regulation, the Community  withdrawal compensation shall be equal, for all products, to the lowest withdrawal price for  clementines determined in accordance with the first subparagraph. The difference between the compensation referred to in the first subparagraph and that referred to  in the second shall be absorbed in equal instalments from the second to the fifth marketing years  following the entry into force of this Regulation. 3. The Community withdrawal compensation shall be a single amount valid throughout the Community. 4. The amounts referred to in this Article shall be set, where required, at the beginning of each  of the marketing years referred to in paragraphs 1 and 2, in accordance with the procedure laid  down in Article 45. Article 261. If the market in a product listed in Annex II is suffering or at risk of suffering  from widespread structural imbalances giving or liable to give rise to too large a volume of the  withdrawals referred to in Article 22, an intervention threshold shall be set before the beginning  of the marketing year for that product in accordance with the procedure laid down in Article 45 and  the consequences of any overrun, assessed for the product on the basis of withdrawals made during a  marketing year or an equivalent period or of the average of the volume of intervention over several  marketing years, shall be borne financially by the producers. An overrun of the intervention threshold shall give rise to a reduction in the Community withdrawal  compensation in the following marketing year. This reduction shall not be carried over to  subsequent marketing years. 2. The following shall be determined in accordance with the procedure laid down in Article 45: (a) the implications for each product of an overrun of the threshold; (b) where necessary, the reduced Community withdrawal compensation and measures for the application  of this Article. 3. This Article shall apply during the first four marketing years following entry into force of  this Regulation. Article 271. Member States shall notify the Commission on each marketing day during each of the  relevant marketing years of the prices recorded on their representative producer markets for  certain products of defined commercial characteristics such as variety or type, quality class, size  and packaging. 2. A list of the markets and products referred to in paragraph 1 shall be drawn up in accordance  with the procedure laid down in Article 45. Markets in Member States on which a substantial part of the national output of a given product is  marketed throughout the marketing year or during one of the periods into which the year is divided  shall be regarded as representative within the meaning of paragraph 1. Article 281. Member States shall pay the Community withdrawal compensation fixed in Article 25  to producer organizations or their associations which have carried out withdrawals under the terms  of Articles 22 and 23 and are required to pay the compensation to their members or to non-member  growers. Payments and advances therof shall be made in a manner to be determined in accordance with the  procedure laid down in Article 45. 2. The Communtiy withdrawal compensation shall be paid without prejudice to the financial  implications resulting from any overrun of an intervention threshold. The compensation shall, in addition, be reduced by the net receipts earned by producer  organizations and their associations from the products withdrawn from the market. 3. Where producer organizations and their associations are unable to direct products to one of the  destinations referred to in Article 29 (1), the Community withdrawal compensation shall be granted  only if the products are used in accordance with the instructions issued by the Member State  pursuant to Article 29 (2), (3) and (4). Article 291. Products withdrawn from the market pursuant to Article 22 (3) which remain unsold  shall be disposed of as follows: (a) all products: - free distribution to charitable organizations and foundations, approved to that effect by the  Member States, for use in their activities to assist persons whose right to public assistance is  recognized in national law, in particular because they lack the necessary means of subsistence, - free distribution to penal institutions and to children's holiday camps as well as to hospitals  and old-peole's homes designated by the Member States, which shall take all necessary steps to  ensure that the quantities thus distributed are additional to the quantities normally bought in by  such establishments, - free distribution outside the Community, through charitable organizations approved to that effect  by the Member States, to the populations of third countries in need, and, secondarily, - use for non-foods purposes, - use in animal feed, either fresh or after processing by the feedingstuffs industry, (b) fruit: free distribution to school children, other than as part of the meals served in school  canteens; (c) apples, pears, peaches and nectarines: processing into alcohol of a strength of more than 80°  by direct distillation of the product; (d) all products: disposal of certain classes of product to the processing industry on condition  that there is no resulting distortion of competition for the industries concerned within the  Community or for imported products. The implementation of this provision shall be decided in  accordance with the procedure laid down in Article 45. 2. It shall be the responsibility of Member States to organize the free distribution provided for  in the first, second and third indents of paragraph 1 (a) and in paragraph 1 (b). However, with regard to the free distribution of fruit to school children, the Commission may take  the initiative of and responsibility for implementing local pilot projects within the framework of  research and promotion measures. 3. Member States shall organize the contacts between producer organizations and charitable  organizations and other bodies which may be interested in using products withdrawn from the market  within their territory, with a view to one of the forms of free distribution referred to in  paragraph 1 (a) and (b). 4. The disposal of products to the feedingstuffs industry shall be carried out by tendering  procedure by an agency designated by the member State concerned. The distillation referred to in paragraph 1 (c) shall be carried out by distilleries either on  their own account or on behalf of a body designated by the Member State concerned. In the first  case this body shall dispose of the products to distilleries by tendering procedure. In the second  case it shall award distilling operations by tendering procedure. 5. The Community shall defray, on terms and conditions to be determined in accordance with the  procedure laid down in Article 13 of Council Regulation (EEC) No 729/70 (17), transport costs in  connection with free distribution as provided for in paragraph I (a) and sorting and packaging  costs in connection with free distribution of apples and citrus fruit where the latter is staggered  under contractual agreements concluded between producer organizations and charitable organizations  or establishments referred to in paragraph 3. 6. Detailed rules for the application of this Article, particularly the criteria applying to  tendering procedures, shall be adopted in accordance with the procedure lais down in Article 45. TITLE V TRADE WITH THIRD COUNTRIES Article 301. Imports into the Community, or exports  therefrom, of any of the products listed in Article 1 (2) may be subject to presentation of an  import or export licence. Licences shall be issued by Member States to any applicant, irrespective of his place of  establishment in the Community and without prejudice to measures taken for the application of  Articles 35 and 36. Import and export licences shall be valid throughout the Community. The issue of such licences may  be subject to the lodging of a security guaranteeing that the products are imported or exported  during the term of validity of the licence; except in cases of force majeure, the security shall be  forfeited in whole or in part if import or export is not carried out, or is carried out only  partially, within that period. 2. The term of validity of licences and other detailed rules for the application of this Article  shall be adopted in accordance with the procedure laid down in Article 45. Article 311. Save as otherwise provided for in this Regulation, the rates of duty in the common  customs tariff shall apply to the products listed in Article 1 (2). 2. Should application of the common customs tariff duty rate depend on the entry price of the  imported consignment, the veracity of this price shall be checked using a flat-rate import value  calculated by the Commission, by product and by origin, on the basis of the weighted average of  prices for the product on Member States' representative import markets or on other markets, where  appropriate. Specific provisions may, however, be adopted for verifying the entry price of products  imported primarily for processing, in accordance with the procedure laid down in Article 45. 3. Where the declared entry price of the consignment in question is higher than the flat-rate  import value, increased by a margin set in accordance with paragraph 5 which may not exceed the  flat-rate value by more than 10 %, the lodging of a security equal to the import duty determined on  the basis of the flat-rate import value shall be required. 4. If the entry price of the consignment in question is not declared at the time of customs  clearance, the common customs tariff duty rate applied shall depend on the flat-rate import value  or be arrived at by application of the relevant customs legislation provisions under conditions to  be determined in accordance with paragraph 5. 5. Detailed rules for the application of this Article shall be adopted in accordance with the  procedure laid down in Article 45. Article 321. In order to prevent or counteract adverse effects on the market in the Community  which may result from imports of certain products listed in Article 1 (2), imports of one or more  of such products at the rate of duty laid down in the common customs tariff shall be subject to  payment of an additional import duty if the conditions set out in Article 5 of the Agreement on  Agriculture concluded in accordance with Article 228 of the Treaty in the framework of the Uruguay  Round of multilateral trade negotiations have been fulfilled, unless the imports are unlikely to  disturb the Community market, or the effects would be disproportionate to the intended objective. 2. The trigger prices below which an additional duty may be imposed shall be those notified by the  Community to the World Trade Organization. The trigger volumes to be exceeded in order to have the additional import duty imposed shall be  determined in particular on the basis of imports into the Community in the three years preceding  the year in which the adverse effects referred to in paragraph 1 arise or are likely to arise. 3. The import prices to be taken into consideration for imposing an additional import duty shall be  determined on the basis of the cif import prices of the consignment concerned. The cif import prices shall be verified for this purpose on the basis of representative prices for  the product in question on the world market or on the Community import market for the product. 4. Detailed rules for the application of this Article shall be adopted in accordance with the  procedure laid down in Article 45. Such detailed rules shall specify in particular: (a) the products to which additional import duties may be applied pursuant to Article 5 of the  Agreement on Agriculture; (b) the other criteria necessary for application of paragraph 1 in accordance with Article 5 of the  Agreement on Agriculture. Article 331. Tariff quotas for the products listed in Article 1 (2) resulting from agreements  concluded in the framework of the Uruguay Round of multilateral trade negotiations shall be opened  and administered in accordance with detailed rules adopted in accordance with the procedure laid  down in Article 45. 2. Quotas may be administered by applying one of the following methods or a combination thereof: (a) a method based on the chronological order in which applications are lodged ('first come, first  served' basis); (b) a method of allocating quotas in proportion to quantities requested when applications are  lodged (using the 'simultaneous examination' method); (c) a method based on taking traditional trade flows into account (using the 'traditional  importers/new arrivals' method). Other appropriate methods may be adopted. They must avoid any discrimination between the operators concerned.3. The method of administration adopted shall, where appropriate, take account of the supply needs  of the Community market and the need to safeguard the equilibrium of that market, whilst at the  same time drawing on methods applied in the past to quotas corresponding to those referred to in  paragraph 1, without prejudice to rights arising from agreements concluded in the framework of the  Uruguay Round of trade negotiations. 4. The detailed rules referred to in paragraph 1 shall provide for annual quotas, suitably phased  over the year, shall determine the administrative method to be used and, where appropriate, shall  include: (a) guarantees covering the nature, provenance and origin of the product; (b) recognition of the document used for verifying the guarantees referred to in (a); and(c) the  conditions under which import licences are issued and their term of validity. Article 341. To the extent necessary to enable economically significant quantities of the  products listed in Article 1 (2) to be exported on the basis of the prices of these products in  international trade but within the limits resulting from agreements concluded in accordance with  Article 228 of the Treaty, the difference between those prices and prices in the Community may be  covered by export refunds. 2. The method to be adopted for allocation of the quantities which may be exported with a refund  shall be the method which: (a) is most suited to the nature of the product and the situation on the market in question, allows  the most efficient possible use of the resources available and takes due account of the efficiency  and structure of Community exports, without, however, creating discrimination between large and  small operators; (b) is least cumbersome administratively for operators, administration requirements taken into  account; (c) avoids any discrimination between the operators concerned. 3. Refunds shall be the same for the whole Community. Where the international trade situation or the specific requirements of certain markets make this  necessary, the refund for a given product may vary according to the destination of the product. Refunds shall be fixed in accordance with the procedure laid down in Article 45. Refunds shall be  fixed periodically. Refunds fixed periodically may, where necessary, be adjusted in the interval by the Commission at  the request of a Member State or on its own initiative. 4. The following shall be taken into account when refunds are being fixed: (a) the existing situation and likely trends with regard to: - prices and availability of fruit and vegetables on the Community market, - prices for fruit and vegetables in international trade; (b) marketing costs and minimum transport charges from Community markets to ports and other  Community export points, and forwarding costs to the country of destination; (c) the economic aspect of the proposed exports; (d) the limits resulting from agreements concluded in accordance with Article 228 of the Treaty. 5. The Community market prices referred to in paragraph 1 shall be determined using the prices  which are most favourable from the exportation point of view. The world market prices referred to in paragraph 1 shall be determined using: (a) prices recorded on third-country markets; (b) the most favourable prices in third countries for imports from other third countries; (c) producer prices recorded in exporting third countries; (d) free-at-Community-frontier offer prices. 6. Refunds shall be granted only on application and on presentation of the relevant export  licence. 7. The refund applicable to exports of products listed in Article 1 (2) shall be that applicable on  the day of aplication for the licence and, in the case of a differentiated refund, that applicable  on the same day: (a) for the destination indicated on the licence; or(b) for the actual destination if it differs  from the destination indicated on the licence. In that case, the amount applicable may not exceed  the amount applicable for the destination indicated on the licence. Appropriate measures may be taken to prevent abuse of the flexibility provided for in this  paragraph. 8. Paragraphs 6 and 7 may be waived in the case of products listed in Article 1 (2) on which  refunds are paid under food-aid operations, in accordance with the procedure laid down in Article  45. 9. The refund shall be paid upon proof: - that the products have been exported from the Community, - are of Community origin, and- in the case of a differentiated refund, have reached the  destination indicated on the licence or another destination for which a refund was fixed, without  prejudice to paragraph 7 (b). Exceptions may be made to this rule in accordance with the procedure  laid down in Article 45, provided conditions are laid down which offer equivalent guarantees. 10. Compliance with the limits on volumes arising from agreements concluded in accordance with  Article 228 of the Treaty shall be ensured on the basis of the export certificates issued for the  reference periods provided for therein and applicable to the products concerned. With regard to  compliance with the obligations arising under the Agreement on Agriculture concluded in the Uruguay  Round trade negotiations, the ending of a reference period shall not affect the validity of export  licences. 11. Detailed rules for the application of this Article, including provisions for the redistribution  of unallocated or unused exportable quantities, shall be adopted in accordance with the procedure  laid down in Article 45. Article 351. Save as otherwise provided for in this Regulation or in provisions adopted pursuant  thereto, the following shall be prohibited when importing products listed in Article 1 (2) from  third countries: - the levying of any charge having equivalent effect to a customs duty, - the application of any quantitative restriction or measure having equivalent effect. 2. The general rules for the interpretation of the combined nomenclature and the special rules for  its application shall apply to the classification of products covered by this Regulation; the  tariff nomenclature resulting from the application of this Regulation shall be incorporated in the  common customs tariff. Article 361. Appropriate measures may be taken when trading with third countries if, by reason  of imports or exports, the Community market in one or more of the products listed in Article 1 (2)  is affected by, or is threatened with, serious disturbance likely to jeopardize achievement of the  objectives set out in Article 39 of the Treaty. Such measures may be applied only until, depending on the case, the disturbance or threat of  disturbance has ceased or the quantities withdrawn or bought in have diminished appreciably. The Council, acting on a proposal from the Commission in accordance with the voting procedure laid  down in Article 43 (2) of the Treaty, shall adopt general rules for application of this paragraph  and shall define in what cases and within what limits Member States may take protective measures. 2. If the situation referred to in paragraph 1 arises, the Commission shall, at the request of a  Member State or on its own initiative, decide upon the necessary measures; the Member States shall  be notified of these and they shall be immediately applicable. If the Commission receives a request  from a Member State, it shall take a decision thereon within three working days following receipt  of the request. 3. Measures decided upon by the Commission may be referred to the Council by any Member State  within three working days of the day on which they were notified. The Council shall meet without  delay. It may, acting by a qualified majority, amend or annual the measure in question. 4. This Article shall be applied having regard to the obligations arising from international  agreements concluded in accordance with Article 228 (2) of the Treaty. TITLE VI NATIONAL AND COMMUNITY CHECKS Article 371. Member States shall take the necessary  measures to ensure compliance with Community rules in the fruit and vegetables sector, particularly  in the fields referred to in Annex IV. 2. Checks shall be carried out either systematically or by sampling. In the case of sampling,  Member States shall ensure, by their nature and frequency and on the basis of risk analysis, that  the checks are appropriate to the measure concerned both in terms of their territory as a whole and  in terms of the volume of fruit and vegetable sector products marketed or held with a view to  marketing. The utilization of public funds must be systematically checked, without prejudice to the  implementation of systematic checks in other fields. 3. Member States shall ensure that the competent authorities have a sufficient number of suitably  qualified and experienced staff to carry out the checks effectively, particularly in the fields  referred to in Annex IV. Article 381. Without prejudice to the checks carried out by the national authorities pursuant to  Article 37, the Commission shall, in collaboration with the competent authorities of the Member  State concerned, carry out on-the-spot checks or cause them to be carried out in order to ensure  uniform application of Community rules in the fruit and vegetable sector, particularly in the  fields referred to in Annex IV. 2. The Commission shall inform the relevant Member State in advance and in writing about the  subject, purpose and location of the checks it envisages, the date on which they are to commence  and the identity and status of its inspectors. Article 391. The Commission shall establish a special corps of inspectors in the fruit and  vegetable sector consisting partly of Commission inspectors with suitable qualifications, technical  knowledge and experience and partly of Member States' staff as indicated in Article 37 (3). 2. The special corps of inspectors shall, under the Commission's direction, discharge the following  tasks: (a) collaborate on the checks planned and carried out by the competent authorities of the Member  States; (b) carry out checks at the Commission's initiative, in which the officials of the Member State may  participate; (c) assess the national verification arrangements set up, the procedures followed and the results  obtained; (d) ascertain the measures, legal and otherwise, taken by the competent authorities to improve  compliance with Community rules in the fruit and vegetable sector; (e) develop collaboration and the exchange of information between the competent bodies of the  Member States in order to contribute to the uniform application of the rules in the fruit and  vegetable sector and facilitate free movement of the products of the sector. 3. With regard to the checks to be carried out under paragraph 2 (b), the Commission shall, in good  time before the start of operations, inform the competent authority of the Member State on whose  territory these operations are to take place. 4. The Commission shall itself determine the most appropriate places for the checks to be carried  out and shall determine the practical arrangements pertaining to them. Article 401. In carrying out their duties the Commission's corps of inspectors shall, without  prejudice to the limits imposed by the Member States on their own officials in carrying out the  checks concerned, have the following rights and powers: (a) access to all premises, warehouses, land, installations and means of transport which may be  connected with the checks; (b) the right to call on any operator concerned to provide an explanation of any matter; (c) access to all legal and accounting data or documents and other documents relevant to the checks  and the right to take copies or extracts. The Commission's inspectors shall, in the course of checks, adopt an attitude compatible with the  rules and professional practices which officials of the Member State must follow. They shall  observe professional confidentiality. 2. The Commission shall establish appropriate links with the competent authorities of the Member  States in order to draw up joint control programmes. Member States shall cooperate with the  Commission to facilitate its accomplishment of this task. 3. The Commission shall communicate the results of the visits made by its inspectors to the  competent authority of the Member State concerned as soon as possible. That communication shall  record any difficulties encountered and infringements noted of the rules in force. 4. The Member State concerned shall inform the Commission as soon as possible of the steps it has  taken to put an end to the difficulties or infringements in question. Article 41Findings reported to a Member State pursuant to Article 40 (3) may be treated as those  referred to in Article 5 of Regulation (EEC) No 729/70. TITLE VII GENERAL PROVISIONS Article 42Save as otherwise provided in this Regulation,  Articles 92, 93 and 94 of the Treaty shall apply to the production of and trade in the products  referred to in Article 1. Article 431. Member States and the Commission shall communicate to each other the information  necessary for applying this Regulation. The data to be communicated shall be determined in  accordance with the procedure laid down in Article 45. Rules for the communication and distribution  of such information shall be adopted in accordance with the same procedure. 2. Without prejudice to Articles 11 and 19, the information on cultivated areas and quantities  harvested, marketed or not put on sale pursuant to Article 20 which producer organizations shall  collect from their members, and also the terms and conditions on which this information shall be  collected by one or more producer organizations designated by the Member State in question from  individual producers who do not belong to any of the collective structures provided for in this  Regulation, shall be determined in accordance with the procedure laid down in Article 45. 3. Member States shall ensure the statistical processing of the data referred to in paragraph 2.  They shall adopt all the control measures needed to verify the accuracy of the data. They shall  inform the Commission of those measures. Article 44A Management Committee for Fresh Fruit and Vegetables, hereinafter referred to as 'the  Committee', shall be set up, consisting of representatives of the Member States and charied by a  representative of the Commission. Article 451. Where reference is made to the procedure laid down in this Article, the chairman  shall refer the matter to the Committee either on his/her own initiative or at the request of the  representative of a Member State. 2. The representative of the Commission shall submit to the Committee a draft of the measures to be  taken. The Committee shall deliver its opinion on the draft within a time limit which the chariman  may lay down according to the urgency of the matter. The opinion shall be delivered by the majority  laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required  to adopt on a proposal from the Commission. The votes of the representatives of the Member States  within the Committee shall be weighted in the manner set out in that Article. The chairman shall  not vote. 3. The Commission shall adopt measures which shall apply immediately. However, if these measures  are not in accordance with the opinion of the Committee, they shall be communicated by the  Commission to the Council forthwith. In that event the Commission may defer application of the  measures which it has decided for a period of not more than one month from the date of such  communication. The Council, acting by qualified majority, may take a different decision within one month. Article 46The Committee may consider any other question referred to it by its chairman either on  his/her own initiative or at the request of the representative of a Member State. Article 47The rules for the application of this Regulation, and in particular of Titles II, III  and VI, shall be adopted in accordance with the procedure laid down in Article 45. Article 48This Regulation shall be so applied that appropriate account is simultaneously taken  of the objectives set out in Articles 39 and 110 of the Treaty. Article 49Member States shall take all appropriate measures to penalize infringements of the  provisions of this Regulation and to forestall and bring to an end any fraud. Article 50The laws, regulations and administrative provisions adopted by Member States for the  application or in application of this Regulation shall be communicated to the Commission no later  than one month after their adoption. The same shall apply to any modification of the said  provisions. Article 511. Expenditure relating to the payment of the Community withdrawal compensation and to  Community financing of the operational fund, the specific measures referred to in Article 17 and  the checks referred to in Articles 38 and 39 shall be deemed to be intervention to stabilize the  agricultural markets within the meaning of Article 1 (2) (b) of Regulation (EEC) No 729/70. 2. The aid granted by the Member States in accordance with Article 14 shall be considered a common  measure within the meaning of Article 2 (1) of Council Regulation (EEC) No 4256/88 (18). It shall  be covered by the annual expenditure forecasts referred to in Article 31 (1) of Council Regulation  (EEC) No 2328/91 (19). Article 1 (3) of Regulation (EEC) No 2328/91 shall apply to the aid provided for in this  paragraph. 3. Aid shall be paid in accordance with Article 21 of Council Regulation (EEC) No 4253/88 (20).  However, payment of the balance or reimbursement shall, in addition to the requirements specified  in paragraph 4 of that Article, be based on: (a) a declaration of the expenditure incurred by the Member States during the calendar year,  and(b) a report on the application of the measures during the calendar year concerned, drawn up in  accordance with Article 25 (4) of that Regulation, to be presented to the Commission before 1 July  of the following year. 4. The Commission shall adopt rules for the application of paragraphs 2 and 3 of this Article after  consulting the committee referred to in Article 29 of Regulation (EEC) No 4253/88. 5. The provisions of Title VI shall apply without prejudice to application of Council Regulation  (EEC) No 4045/89 (21). Article 52By 31 December 2000 the Commission shall send the Council a report on the operation of  this Regulation, accompanied by any proposals that may be required. Article 53Regulations (EEC) No 1035/72, (EEC) No 3285/83, (EEC) No 1319/85, (EEC) No 2240/88,  (EEC) No 1121/89 and (EEC) No 1198/90 are hereby repealed. References to those Regulations shall be understood as references to this Regulation and are to be  read in conjunction with the correspondence tables in Annex V. Article 54This Regulation shall enter into force on 1 January 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. (1) OJ No L 118, 20. 5. 1972, p. 1. (2) OJ No L 132, 16. 6. 1995, p. 8. (3) OJ No L 325, 22. 11. 1983, p. 8. (4) OJ No L 24, 1. 2. 1992, p. 7. (5) OJ No L 137, 27. 5. 1985, p. 39. (6) OJ No L 47, 25. 2. 1993, p. 1. (7) OJ No L 198, 26. 7. 1988, p. 9. (8) OJ No L 128, 13. 6. 1995, p. 8. (9) OJ No L 118, 29. 4. 1989, p. 21. (10) OJ No L 119, 11. 5. 1990, p. 59. (11) OJ No L 349, 31. 12. 1994, p. 105. (12) OJ No L 33, 8. 2. 1979, p. 1. (13) OJ No L 125, 19. 5. 1977, p. 3. (14) OJ No L 279, 12. 11. 1993, p. 17. (15) OJ No L 215, 30. 7. 1992, p. 85. (16) OJ No L 185, 15. 7. 1988, p. 9. (17) OJ No L 94, 28. 4. 1970, p. 13. (18) OJ No L 374, 31. 12. 1988, p. 25. (19) OJ No L 218, 6. 8. 1991, p. 1. (20) OJ No L 374, 31. 12. 1988, p. 1. (21) OJ No L 388, 30. 12. 1989, p. 18.  ANNEX I >TABLE> ANNEX II List of products eligible for Community withdrawal compensation pursuant to  Article 20 (2) CauliflowersTomatoesAuberginesApricotsPeachesNectarinesLemonsPears (other  than perry pears)Table grapesApples (other than cider  apples)SatsumasMandarinsClementinesOranges ANNEX III Exhaustive list of rules applied by producer organizations that may be  extended to non-member producers (Article 18 (1)) 1. Rules on production information(a)  Notification of growing intentions, by product and, where appropriate, variety(b) Notification of  sowings and plantings(c) Notification of total areas grown, by product and, if possible,  variety(d) Notification of anticipated tonnages and probable cropping dates by product and, if  possible, variety(e) Periodic notification of quantities cropped and available stocks, by  variety(f) Information on storage capacities2. Production rules(a) Choice of seed to be used  according to intended destination (fresh market/industrial processing)(b) Thinning in orchards3.  Marketing rules(a) Specified dates for commencement of cropping; staggering of marketing(b)  Minimum quality and size requirements(c) Preparation, presentation, packaging and marking at first  marketing stage(d) Indication of product origin4. Protection of environment(a) Use of fertilizer  and manure(b) Use of plant-health products and other crop protection methods(c) Maximum residue  content in fruit and vegetables of plant-health products and fertilizers(d) Rules on disposal of  by-products and used material(e) Rules on destruction of products withdrawn from the market5.  WithdrawalsRules adopted pursuant to Article 20 in accordance with the terms of Article  22 ANNEX IV >TABLE> ANNEX V Correspondence tables