Legal provisions of COM(2000)791-1 - Specific measures for certain agricultural products for the French overseas departments - Main contents

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dossier	COM(2000)791-1 - Specific measures for certain agricultural products for the French overseas departments.
document	COM(2000)791
date	June 28, 2001

Article 1

This Regulation lays down specific measures to remedy the difficulties caused by the remoteness, outermost location and insular nature of the French overseas departments (FOD) in respect of certain agricultural products.

TITLE I - SPECIFIC SUPPLY ARRANGEMENTS

Article 2

1. Specific supply arrangements are hereby introduced for the agricultural products listed in Annex I to this Regulation, which are essential for human consumption, for processing and as agricultural inputs in the FOD.

2. A forecast supply balance shall be drawn up stating the quantity of the agricultural products listed in Annex I needed to meet supply requirements each year. A separate forecast balance shall be drawn up for the requirements of industries processing and packaging products intended for the local market, for export under certain conditions to third countries or for traditional consignment to the rest of the Community.

Article 3

1. No duties shall apply to direct imports into the FOD of products covered by the specific supply arrangements from third countries, within the limit of the quantities determined in the supply balance.

2. To ensure coverage of the requirements established in accordance with Article 2 in terms of quantity, price and quality, while taking care to maintain the Community's share in supplies, aid shall be granted to supply the FOD with Community products held in public intervention storage or available on the Community market.

Such aid shall be fixed to take account of the additional cost of transport to the FOD and the prices applied to exports to third countries and, in the case of agricultural inputs and products intended for processing, the additional costs of insularity and outermost location.

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

- the specific requirements of the FOD and, in the case of products intended for processing and agricultural inputs, the specific quality requirements,

- trade flows with the rest of the Community,

- the economic aspect of the proposed aid.

4. Entitlement under the specific supply arrangements shall be subject to the condition that the economic advantage derived either from exemption from import duties or from aid in the case of supply from the rest of the Community is actually passed on to the end user.

5. Products covered by the specific supply arrangements may not be re-exported to third countries or re-dispatched to the rest of the Community. This prohibition shall not apply to trade flows between the FOD.

Where the products concerned are processed in the FOD, the aforesaid prohibition shall not apply to exports to third countries nor to traditional shipments of the processed products to the rest of the Community, in compliance with the conditions laid down by the Commission under the procedure referred to in Article 19(2).

No export refund shall be granted.

6. Detailed rules for applying this Title shall be adopted in accordance with the procedure referred to in Article 23(2). These shall include, in particular:

- the fixing of aid for supply from the rest of the Community,

- provisions to ensure that the advantages granted are actually passed on to the end user,

- introduction if necessary of a system of import or delivery licences.

The Commission shall draw up supply balances in accordance with Article 23(2). It may revise those balances, and the list of products in Annex I, in accordance with the same procedure, in the light of changes in FOD requirements.

Article 4

Within the limit of an annual quantity of 8000 tonnes, the levy set in implementation of Articles 10 and 11 of Regulation (EC) No 1766/92(9) shall not be applied to the import into Réunion of wheat bran covered by CN code 2302 30 originating in the ACP States.

TITLE II - MEASURES TO ASSIST LOCAL PRODUCTS

CHAPTER I - RICE

Article 5

1. Community aid shall be granted for the conclusion of annual contracts concerning the disposal and marketing in Guadeloupe, Martinique and the rest of the Community of rice harvested in French Guiana, within the limit of an annual volume of 12000 tonnes of wholly milled rice equivalent. As regards disposal and marketing in the rest of the Community, aid shall be granted for a maximum of 4000 tonnes.

The contracts shall be concluded between producers in French Guiana and natural or legal persons established in Guadeloupe, Martinique or the rest of the Community.

The amount of the aid shall be 10 % of the value of the marketed produce sold in Guadeloupe, Martinique or the rest of the Community, for merchandise delivered at the first port of unloading. This percentage shall be raised to 13 % where the contractor for the producers is a group or association of producers.

The aid shall be paid to the purchaser who markets the products under the annual contracts.

2. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2). In accordance with the same procedure the Commission may review the annual volume limit of 12000 tonnes referred to in the first subparagraph of paragraph 1.

CHAPTER II - LIVESTOCK AND MILK PRODUCTS

Article 6

1. In the livestock sector, aid shall be granted for the supply to the FOD of pure-bred animals, animals of commercial breeds and livestock products, originating in the Community.

2. The terms for granting aid shall be laid down taking account, in particular, of the supply requirements of the FOD for starting up production and genetic improvement of livestock and the need for the breeds best suited to local conditions. The aid shall be paid for the delivery of goods which fulfil the requirements specified in Community rules.

3. The following shall be taken into account when aid is being fixed:

- the conditions and in particular the costs of supply to the FOD resulting from their geographical situation,

- the price of products on the Community market and on the world market,

- whether or not duties are charged on imports from third countries,

- the economic aspect of the proposed aid.

4. Article 3(4) and (5) shall apply to goods qualifying for aid under paragraph 1 of this Article.

5. The list of products, the level of the aid referred to in paragraph 1 and the detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2).

Article 7

1. Until the local numbers of young male bovines reach a level sufficient to ensure the development of local beef production, and within the limit referred to in Article 9, the possibility shall be introduced of importing, without applying the customs duties referred to in Article 30 of Regulation (EC) No 1254/1999(10), bovine animals from third countries for on-site fattening and consumption in the FOD.

Article 3(4) and (5) shall apply to animals qualifying for the exemption referred to in the first subparagraph of this paragraph.

2. The numbers of animals qualifying for the exemption referred to in paragraph 1 shall be determined when the need to import is justified, taking account of the development of local production. These numbers, and detailed rules for applying this Article, including in particular the minimum duration of the fattening period, shall be fixed in accordance with the procedure referred to in Article 23(2). Priority for such animals shall be given to producers holding animals for fattening at least 50 % of which are of local origin.

Article 8

In Directive 72/462/EEC(11), the following Article shall be inserted: "Article 31a

Notwithstanding Article 13 of Directive 91/496/EEC(12) and Article 18 of Directive 97/78/EC(13), the Commission may, according to the procedure laid down in Article 29 of this Directive, derogate from its provisions with regard to imports into French overseas departments.

When the decisions referred to in the first paragraph are adopted, the rules applicable following importation shall be determined according to the same procedure."

Article 9

1. The aid provided for in (a) and (b) of the second subparagraph shall be granted to assist traditional activities connected with beef and veal production and measures to improve product quality, within the limits of the consumption needs of the FOD as assessed in the context of a periodic supply balance.

The balance shall also take account of animals supplied under Articles 6 and 7.

(a) A supplement to the suckler cow premium provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 50 per suckler cow held by the producer on the day on which the application is submitted.

(b) A supplement to the slaughter premium provided for in Article 11 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of the supplement shall be EUR 25 per head.

2. The provisions relating to:

(a) the regional ceiling laid down by Article 4 of Regulation (EC) No 1254/1999 as regards the special premium;

(b) the individual ceiling for animals kept on the holding as laid down in Article 6 of Regulation (EEC) No 1254/1999, as regards the basic suckler cow premium;

(c) the national ceiling laid down under Article 11 of Regulation (EC) No 1254/1999 as regards the basic slaughter premium;

(d) the stocking density of animals kept on the farm, laid down in Article 12 of Regulation (EC) No 1254/1999;

shall not apply in the FOD in the case of the special premium, the basic suckler cow premium, the basic slaughter premium or the supplementary premiums referred to in paragraph 1(a) and (b) of this Article.

3. The basic and supplementary premiums referred to in paragraphs 1 and 2 shall be granted each year for a maximum of 10000 male bovine animals, 35000 suckler cows and 20000 slaughtered animals, respectively.

4. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2). They shall cover drawing up the balances referred to in paragraph 1 of this Article and any reviews to take account of changing requirements and,

(a) as regards the special premium for male bovine animals, they shall provide for:

- the 'freezing', within the regional ceiling set in Article 4 of Regulation (EC) No 1254/1999, of the number of animals for which the special premium was granted in the FOD for 1994,

- the grant of premiums within the limit of 90 animals per age group, per calendar year and per holding;

(b) as regards the suckler cow premium, these detailed rules:

- shall include provisions to guarantee, to the extent necessary, the rights of producers to whom a premium has been granted under Article 6 of Regulation (EC) No 1254/1999,

- may provide for the establishment of a specific reserve for the FOD and special conditions for allocating or reallocating rights, taking into account the objectives pursued in the livestock farming sector; the size of the reserve shall be determined on the basis of the ceiling set in paragraph 3 and the number of premiums granted for the year 1994;

(c) as regards the slaughter premium, they shall provide for:

- the 'freezing', within the national ceiling set in Article 38(1) of Regulation (EC) No 2342/1999(14), of the number of animals for which the slaughter premium was granted for 2000.

The detailed implementing rules may include additional conditions for granting supplementary premiums.

The Commission may review the ceilings fixed in paragraph 3 in accordance with the same procedure.

Article 10

1. Aid shall be granted to increase the production of cow's milk, within the limit of the local requirements in the FOD of milk products for human consumption, such requirements being determined each marketing year in a supply balance. The quantities of milk used for the manufacture of skimmed milk intended for animal feed shall not be eligible for aid.

The aid shall be granted to producers and producer groups for the quantities delivered to dairies. It shall be paid through the dairies.

The aid shall amount to EUR 8,45 per 100 kg of whole milk.

Aid shall be paid each year within the limits of a maximum quantity of 40000 tonnes of milk.

2. The additional levy scheme applicable to producers of cow's milk provided for in Regulation (EEC) No 3950/92 shall not apply in the FOD.

3. The Commission shall adopt detailed rules for applying this Article and the balance referred to in paragraph 1 thereof in accordance with the procedure referred to in Article 23(2).

The Commission may review the maximum quantity referred to in the fourth subparagraph of paragraph 1 in accordance with the same procedure.

Article 11

1. In the period 2001-2006, aid shall be granted to implement in both Martinique and Réunion comprehensive programmes to support the production and marketing of local produce in the livestock and milk products sectors. For 2001, aid shall be granted for annual transition programmes. The duration of the comprehensive programmes shall be five years during the period 2002-2006.

These programme may include measures to encourage improved quality and hygiene, marketing, sector structuring, the rationalisation of production and marketing structures, local communication relating to quality products and the provision of technical assistance. The programmes may not include the grant of aid in addition to the premiums paid under Articles 9 and 10.

The programmes shall be prepared and implemented by the competent authorities designated by the Member State, working in close collaboration with the existing inter-branch organisations recognised as most representative in the sectors concerned.

2. Detailed rules for applying this Article shall be adopted in accordance with the procedure set out in Article 23(2). Draft programmes, to run for no more than five years, shall be presented to the Commission by the competent authorities. The Commission shall approve them in accordance with the procedure referred to in Article 23(2). In accordance with the same procedure, the Commission may extend the scope of this Article to cover the departments of Guadeloupe and French Guiana, provided inter-branch organisations are established in those departments.

3. Each year the French authorities shall present a report on implementation of the programmes. Before the end of 2005, the Commission shall submit to the European Parliament and to the Council an evaluation report on the application of the measure referred to in this Article, accompanied if applicable by appropriate proposals.

CHAPTER III - FRUIT, VEGETABLES, PLANTS AND FLOWERS

Article 12

1. Aid shall be granted in respect of the fruits, vegetables, flowers and live plants listed in Chapters 6, 7 and 8 of the Combined Nomenclature, the peppers and fruits of the genus Capsicum and of the genus Pimenta falling within CN code 0904 and the spices falling within CN code 0910 harvested in the FOD and intended to supply their domestic market. In Martinique and Guadeloupe the aid shall not be granted for bananas other than plantains falling within CN code 0803 00 11.

The aid shall be granted for products which conform to common standards fixed by Community legislation or, where no such standards exist, to specifications written into the supply contracts.

Grant of the aid shall be subject to the conclusion of supply contracts lasting one or more years between individual producers or producer groups, or producer organisations as referred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96(15) and distributors, restaurants and the like or local authorities.

The aid shall be paid out to the abovementioned individual producers, producer groups or producer organisations within the limits of annual quantities established for each product category.

The amount of the aid shall be fixed on a flat-rate basis for each of the product categories to be determined, based on the average value of the products covered. The amount of aid shall be differentiated according to whether or not the beneficiary is one of the producer organisations referred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96.

2. Aid amounting to EUR 6,04 per kilogram shall be paid out for the production of green vanilla falling within CN code ex 0905 00 00 and used to produce dried (black) vanilla or vanilla extracts.

The aid shall be paid out up to an annual maximum quantity of 75 tonnes.

3. Aid amounting to EUR 44,68 per kilogram shall be paid out for the production of essential geranium and vetiver oils, falling within CN codes 3301 21 and 3301 26 respectively.

The aid shall be paid up to an annual maximum of 30 tonnes in the case of geranium oil and 5 tonnes in the case of vetiver oil.

4. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2). The same procedure shall be used to fix the product categories and the amounts of aid referred to in paragraph 1 of this Article, and to review, where necessary, the maximum quantities referred to in paragraphs 2 and 3 thereof.

Article 13

1. Aid shall be granted for the production of processed fruits and vegetables obtained from products harvested in the FOD.

The production aid shall be paid to processors who have paid producers for their raw materials a price not less than the minimum price under contracts between producers or recognised producer organisations within the meaning of Regulation (EC) No 2200/96 and processors or their legally constituted organisations or associations. The Member State shall fix the minimum price for the raw materials on the basis of the production costs involved.

2. The amount of aid shall be fixed on a flat-rate basis for each of the product categories to be determined, by reference to the prices of the local raw materials used and the import prices for the same raw materials.

3. The aid shall be paid out within the limits of annual quantities established for each product category.

4. The list of processed products for which aid is granted and detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2). The same procedure shall be used to fix the product categories and the amounts of aid referred to in paragraph 2 of this Article and the maximum quantities referred to in paragraph 3 thereof.

Article 14

1. The French authorities shall present a programme to the Commission to support the pineapple sector in Martinique.

This programme shall include incentives to improve the conditions in which pineapple is produced, marketed and processed, to restructure and improve the competitiveness of the sector, and to ensure the survival of small farms. Pineapple produced in Martinique shall not qualify for aid granted under Article 13.

2. The French authorities shall present draft programmes to the Commission, to run for no more than five years, accompanied by a report on the implementation of the previous programme. The Commission shall approve them in accordance with the procedure laid down in Article 23(2).

Article 15

1. Aid shall be granted for the conclusion of annual contracts concerning the disposal and marketing of the products specified in Article 12(1). This aid shall be paid up to a limit of a volume of trade of 3000 tonnes per product per year and per department.

The contracts shall be concluded between individual producers or producer organisations as referred to in Articles 11, 13 and 14 of Regulation (EC) No 2200/96 and natural or legal persons established in the rest of the Community.

2. The amount of the aid shall be 10 % of the value of the production marketed, free at destination.

3. The aid shall be granted to purchasers who undertake to market the overseas department products under the contracts referred to in paragraph 1.

4. Where the measures provided for in paragraph 1 are undertaken by joint ventures constituted, with the aim of marketing products harvested in the FOD, by producers or producer groups or associations in those departments and natural or legal persons established in the rest of the Community, and where the partners undertake to pool the knowledge and know-how required to achieve the objective of the joint venture over a minimum period of three years, the amount of the aid specified in paragraph 2 shall be increased to 13 % of the value of the annual production marketed jointly.

5. The aid provided for in this Article shall also be paid, on the terms laid down in paragraphs 1 to 4, in respect of:

- products processed from fruit or vegetables harvested in the FOD,

- essential geranium and vetiver oils falling within CN codes 3301 21 and 3301 26 respectively,

- dried (black) vanilla falling within CN code ex 0905 00 00 and vanilla extracts falling within CN code 3301 90 90,

for which annual disposal and marketing contracts have been concluded.

6. However, in respect of melons falling within CN code ex 0807 19 00 and pineapples falling within CN code ex 0804 30 00, aid may be granted in a department for a quantity exceeding 3000 tonnes provided that the total volume eligible for aid for all the FOD is not exceeded.

7. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 23(2).

CHAPTER IV - SUGAR AND THE CANE-SUGAR-RUM SECTOR

Article 16

1. Aid for the transport of cane from the fields where it is harvested to the reception centres shall be granted to producers for whom the competent bodies to be determined by the Member State have drawn up a delivery note to the processing industry.

2. The amount of the aid shall be determined on the basis of distance and other objective criteria relating to transport. It may not exceed half of the transport costs per tonne fixed on a flat-rate basis by the French authorities in each department.

Article 17

1. Aid shall be granted for the direct processing of sugar cane produced in the FOD into sugar syrup or agricultural rum as defined in Article 1(4)(a)(2) of Regulation (EEC) No 1576/89(16).

The aid shall be paid to the manufacturer of sugar syrup or to the distiller on condition that they pay the sugar cane producer a minimum price, to be determined.

2. The aid shall be paid:

- in the case of sugar syrup, up to a limit of an annual quantity of 250 tonnes,

- in the case of agricultural rum, up to a limit of an overall quantity of 75600 hectolitres of pure alcohol.

Article 18

Detailed rules for applying this Chapter shall be adopted and the amount of aid and the minimum price referred to in Article 17(1) shall be fixed in accordance with the procedure referred to in Article 23(2).

CHAPTER V - GRAPHIC SYMBOL

Article 19

1. The conditions for using the graphic symbol introduced with a view to ensuring greater awareness and consumption of quality agricultural products, whether natural or processed, specific to the FOD as outermost regions, shall be proposed by the professional organisations. The French authorities shall forward such proposals, with their opinion, to the Commission for approval.

Use of the symbol shall be monitored by an official authority or a body approved by the competent French authorities.

2. Detailed rules for applying this Article shall be adopted as necessary in accordance with the procedure referred to in Article 23(2).

TITLE III - PLANT-HEALTH MEASURES

Article 20

1. The French authorities shall submit programmes to the Commission for the control of organisms harmful to plants or plant products. 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 protective measures for bananas.

2. The Community shall contribute to the financing of such programmes on the basis of a technical analysis of the regional situation.

3. The financial participation of the Community and the amount of the aid shall be decided in accordance with the procedure laid down Article 23(2). The measures eligible for Community financing shall be defined in accordance with the same procedure.

4. Such participation may cover up to 60 % of the eligible expenditure. Payment shall be made on the basis of documentation supplied by the French authorities. If necessary, investigations may be organised by the Commission and conducted on its behalf by experts as referred to in Article 21 of Directive 2000/29/EC(17).

TITLE IV - STRUCTURAL DEROGATIONS

Article 21

1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999 of 17 May 1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75 % for investments intended in particular to encourage diversification, restructuring or a shift towards sustainable agriculture on agricultural holdings of small economic size to be defined in the programming complement referred to in Article 19(4) of Regulation (EC) No 1260/1999.

2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 65 % for investments in enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in sectors to be defined in the programming complement referred to in Article 19(4) of Regulation (EC) No 1260/1999. The total value of the aid for small and medium-sized enterprises, under the same conditions, shall not exceed 75 %.

3. The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to tropical forests and wooded areas located in the territory of the FOD.

4. Notwithstanding the third indent of the second subparagraph of Article 47(2) of Regulation (EC) No 1257/1999, the Community contribution to the agri-environmental measures provided for in Articles 22, 23 and 24 of that Regulation shall amount to 85 %.

5. A summary description of the measures planned under this Article shall be included in single programming documents for the FOD, as referred to in Article 19 of Regulation (EC) No 1260/1999.

TITLE V - GENERAL AND FINAL PROVISIONS

Article 22

The measures necessary for the implementation of this Regulation shall be adopted in accordance with the management procedure referred to in Article 23(2).

Article 23

1. The Commission shall be assisted by the Management Committee for Cereals established by Article 22 of Regulation (EEC) No 1766/92, or by the management committees established by the other regulations on the common organisation of the market for the products concerned.

In the case of agricultural products covered by Regulation (EEC) No 827/68(18) and products not covered by a common organisation of the markets, the Commission shall be assisted by the Management Committee for Hops established by Article 20 of Regulation (EEC) No 1696/71(19).

In the case of the graphic symbol and other cases provided for in this Regulation, the Commission shall be assisted by the Management Committee for Fresh Fruit and Vegetables established by Regulation (EC) No 2200/96.

For the purposes of implementing Title III, the Commission shall be assisted by the Standing Committee on Plant Health established by Decision 76/894/EEC(20).

For the purposes of implementing Title IV, the Commission shall be assisted by the Committee for the Development and Conversion of Regions and by the Committee on Agricultural Structures and Rural Development, established by Article 48 and by Article 50 respectively of Regulation (EC) No 1260/1999.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

However, in the case of Title III, the procedure laid down in Article 18 of Directive 2000/29/EC shall apply.

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

3. The Committees shall adopt their rules of procedure.

Article 24

For the agricultural products covered by Annex I to the Treaty establishing the European Community, to which Articles 87, 88 and 89 thereof apply, the Commission may authorise operating aid in the sectors producing, processing and marketing those products, with a view to mitigating the specific constraints on farming in the FOD as a result of their remoteness, insularity and outermost location.

Article 25

The measures provided for in this Regulation, except for Article 21, shall constitute intervention intended to stabilise the agricultural markets within the meaning of Article 2(2) of Regulation (EC) No 1258/1999(21).

Article 26

The Member States shall take the measures necessary to ensure compliance with this Regulation, in particular as regards controls and administrative penalties, and shall inform the Commission thereof.

The detailed rules for applying this Article shall be adopted by the procedure provided for in Article 23(2).

Article 27

1. France shall present an annual report to the Commission on the implementation of the measures provided for in this Regulation.

2. No later than at the end of the fifth year of application of the system, the Commission shall submit a general report to Parliament and the Council showing the impact of the action taken under this Regulation, accompanied if applicable by appropriate proposals.

Article 28

Regulation (EEC) No 3763/91 is hereby repealed. References to Regulation (EEC) No 3763/91 shall be construed as references to this Regulation and should be read in accordance with the correlation table in Annex II.

Regulation (EEC) No 525/77 is hereby repealed as from the 2002/2003 marketing year.

The Commission may, in accordance with the procedure laid down in Article 23(2), adopt the necessary transitional measures to ensure a smooth passage from the system in force during the year 2000 or the 2000/2001 marketing year to the system resulting from the measures introduced by this Regulation. In the case of an extension to the existing measures, it shall ensure the necessary continuity.

Article 29

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

It shall apply from the date of its entry into force. However,

- Article 10 shall apply as from 1 January 2001;

- Article 11 shall apply as from 1 January 2001;

- Article 16 shall apply to cane harvested as from the 2001/2002 marketing year inclusive;

- Article 21 shall apply as from 1 January 2000.

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