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Commission Delegated Regulation (EU) 2017/891

of 13 March 2017

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the fruit and vegetables and processed fruit and vegetables sectors and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to penalties to be applied in those sectors and amending Commission Implementing Regulation (EU) No 543/2011

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007(1), and in particular Article 37(a)(i), (ii), (iii) and (vi), (b), (c), (d)(i), (iii) to (vi), (viii), (x), (xi) and (xii) and (e)(i), Article 173(1)(b), (c), (d) and (f) to (j), Article 181(2), Article 223(2)(a) and Article 231(1) thereof,

Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008(2), and in particular Articles 62(1) and 64(6)(a) thereof,

Whereas:

(1)Regulation (EU) No 1308/2013 has replaced Council Regulation (EC) No 1234/2007(3) and lays down new rules concerning the fruit and vegetables and processed fruit and vegetables sectors. It also empowers the Commission to adopt delegated and implementing acts in that respect. Those acts should replace the corresponding provisions of Commission Implementing Regulation (EU) No 543/2011(4).

(2)In order to strengthen the bargaining power of fruit and vegetables producers and to foster a fairer distribution of added value along the supply chain, the recognition of producer organisations and their associations should be encouraged. This has to be achieved while respecting national legal and administrative structures.

(3)Provisions for the recognition of producer organisations in respect of the products they request should be laid down. Where the recognition is requested for products intended solely for processing, it should be ensured that they are indeed delivered for processing. Producer organisations should have at their disposal the structures necessary to ensure their functioning. Moreover, to implement an operational programme, producer organisations should be required to achieve a minimum value of marketed production, which should be laid down by the Member State in order to ensure efficiency of the support received and thereby help strengthen the bargaining power of the fruit and vegetable producers.

(4)In order to help achieve the goals of the fruit and vegetables regime and to ensure that producer organisations carry out their work in a sustainable and effective way, there needs to be stability within producer organisations. Membership of producer organisation should therefore be for a minimum period. It should be left to Member States to lay down the notice periods and the dates on which resignation from membership can take effect.

(5)Where a producer organisation is recognised for a product for which the provision of technical means is required, it should be allowed to provide those means through its members, through subsidiaries, through an association of producer organisations of which it is a member or by outsourcing.

(6)The main and essential activities of a producer organisation should relate to the concentration of supply and the placing on the market of their products so that the bargaining power of fruit and vegetables produces is strengthened and a fairer distribution of the resulting benefits along the supply chain is achieved. However, producer organisations should be allowed to engage in other activities, whether or not of a commercial nature. Cooperation between producer organisations should be encouraged and in that regard producer organisations should be allowed to market fruit and vegetables bought exclusively from another recognised producer organisation provided the value of this produce is left out of the calculations of value of the marketed production both for the purposes of the main activity and for other activities.

(7)Although the main activity of a producer organisation is the concentration of supply and the placing on the market of the products of its members for which it is recognised, in some cases the producer members should be allowed to sell a certain percentage of their production outside the producer organisation where the producer organisation so authorises and where this is in compliance with the terms and conditions of the Member State and the producer organisation. The total percentage of sales outside the producer organisation should not exceed a maximum threshold.

(8)Provisions regarding outsourcing where the activities are outsourced to entities closely related to the producer organisations should be further specified.

(9)In order to facilitate the concentration of supply, the merger of existing producer organisations to form new ones should be encouraged by providing rules for the merger of the operational programmes of the merged organisations.

(10)While respecting the principles whereby a producer organisation must be formed on the initiative of producers themselves and scrutinised by the producers, it should be left to Member States to lay down the conditions under which other natural or legal persons may be accepted as members of a producer organisation or an association of producer organisations.

(11)In order to ensure that producer organisations genuinely represent a minimum number of producers, Member States should take measures to ensure that a minority of members who may account for the bulk of production or the shares or capital in the producer organisation do not unduly dominate its management and operation. Democratic accountability is already ensured where entities have a legal form requiring it under national legislation before they are recognised as a producer organisation. In other cases, Member States should set a maximum percentage of voting rights or shareholdings and carry out relevant checks.

(12)Rules should be laid down on the recognition and functioning of associations of producer organisations, transnational producer organisations and transnational associations of producer organisations. For the sake of consistency, they should, as far as possible, reflect the rules laid down for producer organisations.

(13)To facilitate the use of the scheme of support to operational programmes, the value of marketed production of producer organisations should be clearly defined, including rules on which products may be taken into account and the marketing stage at which the value of production is to be calculated. For control purposes and for the sake of simplification, it is appropriate to use a flat rate for the purpose of calculating the value of fruit and vegetables intended for processing. This flat rate should be calculated on the basis of the value of the basic product, namely the fruit and vegetables intended for processing, to which is added the value of only those activities which are not genuine processing activities. Since the volumes of fruit and vegetables needed for the production of processed fruit and vegetables differ largely between groups of products, those differences should be reflected in the applicable flat rates. In the case of fruit and vegetables intended for processing that are transformed into processed aromatic herbs and paprika powder, it is also appropriate to introduce a flat rate for the purpose of calculating the value of fruit and vegetables intended for processing, which represents the value of the basic product only. The method of calculation of the value of marketed production should attenuate yearly fluctuations or insufficient data and avoid double counting, in particular in the case of transnational producer organisations and their associations. To prevent misuse of the scheme, producer organisations should not be permitted in general to change the methodology for fixing the reference period within the duration of a programme.

(14)Producer organisations may hold shares or capital in subsidiaries which help to increase the added value of the production of their members. Rules should be fixed for calculating the value of such marketed production. The main activities of such subsidiaries should be the same as those of the producer organisation.

(15)To ensure the correct use of aid, rules should be laid down for the management and bookkeeping of operational funds and members' financial contributions, allowing for as much flexibility as possible on condition that all producers may take advantage of the operational fund and may democratically participate in decisions on its use.

(16)Provisions should be laid down establishing the scope and structure of the national strategy for sustainable operational programmes and the national framework for environmental actions. The aim should be to optimise the allocation of financial resources and to improve the quality of the strategy. Provisions should also be laid down to avoid double funding of the same action by other support schemes such as rural development or promotion programmes.

(17)For reasons of financial security and legal certainty, a list of operations and expenditure which may not be covered and a non-exhaustive list of operations which may be covered by operational programmes should be drawn up. Provisions regarding eligible expenditure, the use of flat-rates and scales of unit costs as well as investments should be laid down. Article 33 of Regulation (EU) No 1308/2013 establishes a number of objectives for operational programmes including objectives concerning the products produced both in fresh and in processed form. With a view to ensuring that those objectives are achieved, it is appropriate that the conditions under which actions related to the transformation of fruit and vegetables into processed fruit and vegetables may be eligible for support should be laid down. In respect of investments implemented on individual holdings, provisions for the recovery of the residual value should be laid down for cases where a member resigns from the producer organisation.

(18)Although operational programmes of associations of producer organisations are to be subject to the same rules as operational programmes of producer organisations, some requirements should be applied at the level of the member producer organisations.

(19)In order to allow appropriate evaluation of the information by the competent authorities and measures and actions to be included in, or excluded from, the programmes, procedures for the presentation and approval of operational programmes, including deadlines, should be laid down. Since the programmes are managed on an annual basis, it should be provided that programmes not approved before a given date are postponed for a year.

(20)There should be a procedure for the amendment of operational programmes for subsequent years, so that they can be adjusted to take account of any new conditions which could not have been foreseen when they were initially presented. In addition, it should be possible for measures and amounts of the operational fund to be changed during the year of execution of a programme. To ensure that the approved programmes maintain their overall objectives, all such changes should be subject to certain limits and conditions to be defined by Member States and to obligatory notification of changes to the competent authorities.

(21)To prevent cash-flow difficulties, a system of advance payments accompanied by appropriate securities should be available to producer organisations. In case of a cessation of an operational programme or of withdrawal of recognition, be it voluntary or compulsory, or of dissolution of a producer organisation, it has to be ensured that the aims for which aid has been paid have been attained, otherwise the aid paid should be reimbursed to the European Agricultural Guarantee Fund.

(22)The production of fruit and vegetables is unpredictable and the products are perishable. Surplus on the market, even if it is not too large, can significantly disturb the market. Rules on the scope and application of crisis management and prevention measures in respect of the products referred to in Article 1(2)(i) of Regulation (EU) No 1308/2013 should therefore be laid down. As far as possible, those rules should provide for flexibility and for rapid application in crises and therefore should allow decisions to be taken by Member States and producer organisations themselves. Nevertheless, those rules should guard against abuse of Union financial assistance and should therefore provide for limits on the use of certain measures, including in financial terms. They should also ensure that phytosanitary and environmental requirements are duly respected.

(23)As regards withdrawals from the market, rules should be adopted taking into account the potential importance of that measure. In particular, rules should be laid down providing for a system of increased support for fruit and vegetables withdrawn from the market which are distributed free of charge as humanitarian aid by charitable organisations and certain other establishments and institutions. In order to facilitate free distribution, it is appropriate to provide for the possibility which allows charitable organisations and institutions to request a symbolic contribution from the final recipients of the withdrawn products. In addition, maximum levels of support for market withdrawals should be fixed in order to ensure that withdrawals do not become a permanent alternative outlet for products compared to placing them on the market. In this context, it is appropriate to continue using common levels of support for the main products. For other products, where experience has not yet shown any risk of excessive withdrawals, it is appropriate to fix maximum levels of support as a percentage of the average of recorded prices in each Member State. In all cases, however, for similar reasons, it is appropriate to set a quantitative limit of withdrawals per product per producer organisation.

(24)On the basis of past experience, the provisions on green harvesting and non-harvesting should be further elaborated. Similarly, the provisions on support for the administrative costs of setting up mutual funds and replanting of orchards following mandatory grubbing-up should be simplified.

(25)Rules should be adopted concerning the national financial assistance that Member States may grant in regions of the Union where the degree of organisation of producers is particularly low, including rules on how the degree of organisation is calculated and a low degree of organisation is confirmed. Those rules should reflect those currently applicable.

(26)Support to producer groups has become part of the rural development policy under Regulation (EU) No 1305/2013 of the European Parliament and of the Council(5), but rules on notifications regarding producer groups formed pursuant to Article 125e of Regulation (EC) No 1234/2007 that are necessary to implement the provisions of the aid scheme should be maintained in this Regulation.

(27)Provisions concerning the type, format and means of notifications necessary to implement this Regulation should be laid down. Those provisions should include notifications from producers and producer organisations to the Member States and from the Member States to the Commission. Past experience regarding the data recorded allows for some simplification on the number and frequency of the data requested.

(28)Provision should be made for appropriate monitoring and evaluation of ongoing programmes and schemes in order to assess their effectiveness and efficiency by both producer organisations and Member States. It is possible to reduce the number and detail of the current requirements without affecting the quality of the assessment.

(29)Measures should be laid down as regards the appropriate administrative penalties applicable where irregularities are found. Those measures should involve both specific checks and administrative penalties laid down at Union level as well as additional national checks and administrative penalties.

(30)Procedural provisions should be adopted concerning the conditions under which the rules issued by producer organisations, associations of producer organisations and interbranch organisations in the fruit and vegetables sector may be extended to all operators established in a specific economic area. In respect of produce sold on the tree it should be made clear which rules are to be extended to the producers and the buyers, respectively.

(31)Rules concerning the entry price system for fruit and vegetables should be adopted. The fact that most of the perishable fruit and vegetables concerned are supplied on consignment creates special difficulties for determining their value. The possible methods for the calculation of the entry price on the basis of which imported products are classified in the common customs tariff should be set. There should also be rules for the provision of a guarantee in certain circumstances to ensure that the system is correctly applied.

(32)Provisions concerning notification of prices and quantities of products imported need to be laid down to ensure that the necessary information reaches the Commission in a timely and coherent manner. Rules on the notification of cases of force majeure need to be provided for to address to address the consequences of such situations.

(33)For reasons of clarity and legal certainty, the provisions of Implementing Regulation (EU) No 543/2011 that are replaced by this Delegated Regulation and Commission Implementing Regulation (EU) 2017/892(6) should be deleted. The provisions of Implementing Regulation (EU) No 543/2011 on marketing standards should be maintained until they are replaced. Provisions concerning producer groups formed pursuant to Article 125e of Regulation (EC) No 1234/2007 directly should be maintained, while some other Articles concerning them indirectly should continue to apply until the end of the implementation of their recognition plan and their recognition as producer organisation.

(34)Transitional provisions should be laid down in order to ensure a smooth transition from the former requirements to the new ones. Producer organisations should have the possibility to finalise the ongoing operational programmes under the previous rules.

(35)This Regulation should enter into force on and apply from the seventh day following that of its publication in the Official Journal of the European Union,

HAS ADOPTED THIS REGULATION:

Modifications etc. (not altering text)

C1Regulation: power to modify conferred (E.) (11.11.2020 for specified purposes, 11.1.2021 in so far as not already in force) by Agriculture Act 2020 (c. 21), ss. 15, 57(1)(b)(c)(6)

TITLE IU.K. INTRODUCTORY PROVISIONS

Article 1U.K.Subject matter and scope

This Regulation supplements Regulation (EU) No 1308/2013 as regards the fruit and vegetables and processed fruit and vegetables sectors as referred to in Article 1(2)(i) and (j) of that Regulation, with the exception of marketing standards, and supplements Regulation (EU) No 1306/2013 as regards penalties to be applied in those sectors.

However, Title II of this Regulation shall only apply to products of the fruit and vegetables sector as referred to in Article 1(2)(i) of Regulation (EU) No 1308/2013 and to such products intended for processing.

TITLE IIU.K. PRODUCER ORGANISATIONS

CHAPTER I U.K. Requirements and recognition

Section 1U.K.Definitions

Article 2U.K.Definitions

For the purposes of this Title the following definitions shall apply:

(a)

‘producer’ means a farmer within the meaning of [F1Article 4(1)(a) of Regulation (EU) No 1307/2013 of the European Parliament and of the Council] [F1Article 2(1)(a) of Regulation (EU) No 1306/2013] producing fruit and vegetables as referred to in Article 1(2)(i) of Regulation (EU) No 1308/2013 and such products intended solely for processing;

(b)

‘producer member’ means a producer or legal entity constituted by producers that is a member of a producer organisation or association of producer organisations;

(c)

‘subsidiary’ means a company in which one or more producer organisations or associations of producer organisations have taken shares or constituted capital and which contributes to the objectives of those organisations or associations;

(d)

F2...

(e)

F3...

(f)

‘measure’ means one of the following:

(i)

actions aimed at the planning of production, including investments in physical assets;

(ii)

actions aimed at improving or maintaining product quality, whether in a fresh or processed form, including investments in physical assets;

(iii)

actions aimed at boosting the commercial value of products and improving marketing, including investments in physical assets, as well as promotion of the products, whether in a fresh or processed form, and communication activities other than promotion and communication activities falling under point (vi);

(iv)

research and experimental production actions, including investments in physical assets;

(v)

training and exchange of best practices actions, other than training falling under point (vi), and actions aimed at promoting access to advisory services and technical assistance;

(vi)

any of the crisis prevention and management actions listed in the first subparagraph of Article 33(3) of Regulation (EU) No 1308/2013;

(vii)

environmental actions as referred to in Article 33(5) of Regulation (EU) No 1308/2013, including investments in physical assets;

(viii)

other actions, including investments in physical assets, other than those falling under points (i) to (vii) which fulfil one or more of the objectives referred to or set out in Article 33(1) of Regulation (EU) No 1308/2013;

(g)

‘action’ means a specific activity or instrument aimed at contributing to one or more of the objectives referred to or set out in Article 33(1) of Regulation (EU) No 1308/2013;

(h)

‘investment in physical assets’ means the acquisition of tangible assets aimed at contributing to one or more of the objectives referred to or set out in Article 33(1) of Regulation (EU) No 1308/2013;

(i)

‘by-product’ means a product which results from preparation of a fruit or vegetable product which has a positive economic value but is not the main intended product;

(j)

‘preparation’ means preparatory activities such as cleaning, cutting, peeling, trimming and drying of fruit and vegetables, without transforming them into processed fruit and vegetables;

(k)

‘interbranch basis’ as referred to in Article 34(3)(b) of Regulation (EU) No 1308/2013 means activities pursuing one or more of the objectives listed in Article 157(1)(c) of that Regulation approved by the [F4appropriate authority] and managed jointly by a producer organisation or an association of producer organisations and at least one other actor in the food processing or distribution chain;

(l)

‘baseline indicator’ means any indicator reflecting a state or trend existing at the start of a programming period which may provide information useful:

(i)

in the analysis of the initial situation, in order to establish a F5... strategy for sustainable operational programmes [F6as referred to in Article 36(2) of Regulation (EU) No 1308/2013] or an operational programme;

(ii)

as a reference against which the results and impact of a [F7strategy as referred to in Article 36(2) of Regulation (EU) No 1308/2013] or an operational programme may be assessed; or

(iii)

in interpreting the results and impact of a [F8strategy as referred to in Article 36(2) of Regulation (EU) No 1308/2013] or an operational programme;

(m)

‘specific costs’ means the additional costs, calculated as the difference between the conventional costs and the costs actually incurred, and income foregone resulting from an action, excluding additional income and costs savings;

(n)

[F9‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be;

(o)

‘public funds’ means moneys provided by Parliament, Senedd Cymru, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom. References to ‘public funding’ are to be construed accordingly;

(p)

‘relevant authority’ means:

(i)

in relation to England, the Secretary of State;

(ii)

in relation to Wales, the Welsh Ministers;

(iii)

in relation to Scotland, the Scottish Ministers;

(iv)

in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs;

(q)

‘third country’ means any country or territory other than:

(i)

the United Kingdom;

(ii)

the Bailiwick of Jersey;

(iii)

the Bailiwick of Guernsey;

(iv)

the Isle of Man;

(r)

‘existing non-UK member’ means an ex-transnational producer organisation member:

(i)

who was, immediately before IP completion day, a producer member of a transnational producer organisation within the meaning of Articles 2(b) and 2(d) (as they had effect immediately before IP completion day); and

(ii)

at least one of whose holdings is situated in a European Union Member State;

(s)

‘ex-transnational producer organisation’ means a producer organisation that was, immediately before IP completion day, recognised in the United Kingdom as a transnational producer organisation within the meaning of Article 2(d) (as it had effect immediately before IP completion day).]

Textual Amendments

[F10Article 2AU.K.Definition of appropriate authority

1. For the purposes of this Regulation, ‘appropriate authority’ means:

(a)in relation to England, the Secretary of State;

(b)in relation to Wales, the Welsh Ministers;

(c)in relation to Scotland, the Scottish Ministers;

(d)in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs.

2. But the appropriate authority is the Secretary of State:

(a)in relation to Scotland, at any time that the Secretary of State and the Scottish Ministers so agree;

(b)in relation to Northern Ireland, at any time that the Secretary of State and the Department of Agriculture, Environment and Rural Affairs so agree.

3. The relevant authorities for Scotland and Northern Ireland must each ensure that a statement identifying the appropriate authority for their constituent nation is published on a website maintained by them on or on their behalf.]

Section 2U.K.Recognition criteria and other requirements

Article 3U.K.Legal status of producer organisations

F11... F11... [F12Nothing in this Regulation prevents the Secretary of State from adopting] complementary rules on recognition of producer [F13organisations, including rules concerning] legal entities which may apply for recognition as producer organisations.

Article 4U.K.Product coverage

1.[F14 The Secretary of State] shall recognise producer organisations in respect of the product or the group of products specified in the application for recognition.

2.[F15 The Secretary of State] shall recognise producer organisations in respect of the product or the group of products solely intended for processing where the producer organisations are able to ensure that such products are delivered for processing, whether through a system of supply contracts or otherwise.

Article 5U.K.Minimum number of members

For the purposes of Article 154(1)(b) of Regulation (EU) No 1308/2013, [F16producer organisations must have at least five producer members, all of whom are separate legal entities.]

F17. . .

Article 6U.K.Minimum length of membership

1.The minimum membership period of a producer shall not be less than one year.

2.Resignation from membership shall be notified to the producer organisation in writing. [F18Subject to paragraph 3, resignation from membership will take effect:

(a)if notice of resignation is received by the producer organisation on or before 30 September of a given calendar year (or such earlier date as may be set in the producer organisation's membership agreement in accordance with paragraph 3), on 1 January of the following year;

(b)if notice of resignation is received by the producer organisation after 30 September of a given calendar year (or such earlier date as may be set in the producer organisation's membership agreement in accordance with paragraph 3), on 1 January of the year after the following year.]

[F193.The membership agreement of a producer organisation may require notice of resignation to be given before 30 September (but no earlier than 30 June) of the year before that in which resignation is intended to take effect.]

Article 7U.K.Structures and activities of producer organisations

[F20The Secretary of State] shall verify that producer organisations have at their disposal the staff, infrastructure and equipment necessary to fulfil the requirements laid down in Articles 152, 154 and 160 of Regulation (EU) No 1308/2013 and to ensure their essential functioning, in particular as regards:

(a)

the knowledge of their members' production;

(b)

the technical means for collecting, sorting, storing and packaging the production of their members;

(c)

marketing the production of their members;

(d)

commercial and budgetary management; and

(e)

centralised cost-based accounting and a system of invoicing according to [F21applicable] law.

Article 8U.K.Value or volume of marketable production

1.For the purposes of Article 154(1)(b) of Regulation (EU) No 1308/2013, the value or volume of marketable production shall be calculated on the same basis as the value of marketed production set out in Articles 22 and 23 of this Regulation.

2.In circumstances when the historical data on marketed production of a member for the application of paragraph 1 is not sufficient, the value of the marketable production shall be equal to the actual value of marketed production during a period of 12 consecutive months. Those 12 months shall fall within the three years preceding the year in which the application for recognition is submitted.

[F22Article 9U.K.Minimum value of marketed production

For the purposes of Article 154(1)(b) of Regulation (EU) No 1308/2013, the minimum value of marketed production is:

(a)[euro]250,000 for producer organisations recognised for mushrooms or nuts;

(b)[euro]1 million for producer organisations recognised in respect of any other product or group of products.]

Article 10U.K.Provision of technical means

For the purposes of Article 154(1)(c) of Regulation (EU) No 1308/2013 and Article 7(b) of this Regulation, a producer organisation which is recognised for a product for which the provision of technical means is necessary, shall be considered to fulfil its obligation in that regard, where it provides an adequate level of technical means itself or through its members, or through subsidiaries, or through an association of producer organisations of which it is a member or by outsourcing.

Article 11U.K.Producer organisations' main activities

1.The main activity of a producer organisation shall relate to the concentration of supply and the placing on the market of the products of its members for which it is recognised.

The placing on the market referred to in the first subparagraph shall be carried out by the producer organisation, or under the control of the producer organisation in the case of outsourcing as set out in Article 13. Placing on the market shall include among others the decision on the product to be sold, the way of selling and unless the sale is by means of auction, the negotiation of its quantity and price.

Producer organisations shall keep records, including accounting documents, for at least five years, which demonstrate that the producer organisation concentrated supply and placed on the market members' products for which it is recognised.

2.A producer organisation may sell products from producers that are not a member of a producer organisation or of an association of producer organisations, where it is recognised in respect of those products and provided that the economic value of that activity is below the value of its marketed production calculated in accordance with Article 22.

3.The marketing of fruit and vegetables that are bought directly from another producer organisation and of products for which the producer organisation is not recognised shall not be considered as forming part of the producer organisation's activities.

4.Where Article 22(8) applies, paragraph 2 of this Article shall apply mutatis mutandis to the subsidiaries concerned.

[F23Article 12U.K. Marketing of the production outside the producer organisation

1.Where the producer organisation so authorises in its statutes and where this is in compliance with the terms and conditions laid down by the [F24Secretary of State] and the producer organisation, the producer members may:

(a)sell products directly or outside their holdings to consumers for their personal needs;

(b)market by themselves or through another producer organisation designated by their own producer organisation, quantities of products which, in terms of volume or value, are marginal compared to the volume or value of marketable production of their organisation of the products concerned;

(c)market by themselves or through another producer organisation designated by their own producer organisation, products which because of their characteristics or because of the limited production in volume or in value of the producer members, are normally not covered by the commercial activities of the producer organisation.

2.The percentage of the production that the producer members market outside the producer organisation, as referred to in paragraph 1 shall not exceed 25 % in volume or in value of the marketable production of each producer member.

However, [F25nothing in this Regulation prevents the Secretary of State from setting] a lower percentage of the production that the producer members may market outside the producer organisation than the one set out in the first subparagraph. [F26Nothing in this Regulation prevents the Secretary of State from increasing] that percentage up to 40 % in case of products covered by Council Regulation (EC) No 834/2007(7) or where producer members market their production through another producer organisation designated by their own producer organisation.]

Article 13U.K.Outsourcing

1.The activities that [F27the Secretary of State] may permit to be outsourced in accordance with Article 155 of Regulation (EU) No 1308/2013 shall relate to the objectives as set out in Article 152(1)(c) of that Regulation and may include, among others, collecting, storing, packaging and marketing the product of the members of the producer organisation.

2.A producer organisation outsourcing an activity shall enter into a written commercial arrangement by way of a contract, agreement or protocol with another entity, including one or several of its members or a subsidiary, for the purpose of carrying out of the activity concerned. The producer organisation shall remain responsible for ensuring the carrying out of the outsourced activity and overall management control and supervision of the commercial arrangement for the carrying out of the activity.

However, the activity shall be considered as carried out by the producer organisation if it is carried out by an association of producer organisations or a cooperative whose members are themselves cooperatives where the producer organisation is a member thereof or by a subsidiary complying with the 90 % requirement referred to in Article 22(8).

3.The overall management control and supervision referred to in the first subparagraph of paragraph 2 shall be effective and require that the outsourcing contract, agreement or protocol:

(a)enables the producer organisation to issue binding instructions and includes provisions enabling the producer organisation to terminate the contract, agreement or protocol if the service provider does not meet the terms and conditions of the outsourcing contract;

(b)lays down detailed terms and conditions, including regular reporting obligations and deadlines which enable the producer organisation to exercise effective control over the outsourced activities.

Outsourcing contracts, agreements or protocols as well as the reports referred to in point (b) of the first subparagraph shall be kept by the producer organisation for at least 5 years for the purpose of ex-post checks and be accessible to all members on request.

[F28Article 14U.K.Ex-transnational producer organisations

1.An ex-transnational producer organisation retains recognition as a producer organisation pursuant to Article 152 of Regulation (EU) No 1308/2013 provided that it fulfils the criteria and requirements for recognition set out in Regulation (EU) No 1308/2013, this Regulation and Regulation (EU) 2017/892.

2.Any person that:

(a)immediately before IP completion day, was a member of a transnational producer organisation which is an ex-transnational producer organisation; and

(b)is not a producer within the meaning of Article 2(a),

is a non-producer member of the ex-transnational producer organisation within the meaning of Article 16, whether or not such person was a producer member of such organisation before IP completion day.

[F293.By way of derogation from paragraph 2, an existing non-UK member of an ex-transnational producer organisation continues to be a producer member of such organisation until the end of the implementation of an ongoing operational programme that was being implemented by that organisation before IP completion day.]]

[F30Article 14AU.K.Head office of a producer organisation

1.The head office of a producer organisation must be located in the constituent nation in which the organisation achieves the majority of the value of marketed production calculated in accordance with Articles 22 and 23.

But the head office may be established in the constituent nation where the majority of producer members are located, if both the appropriate authority for that constituent nation and the appropriate authority for the constituent nation referred to in the first subparagraph consent.

2.Notwithstanding paragraph 1, the head office:

(a)may not move to another constituent nation until the end of the implementation of an ongoing operational programme; and

(b)may be maintained in a particular constituent nation for as long as the appropriate authority for that constituent nation and the appropriate authorities referred to in paragraph 1 consent.

3.The appropriate authority for the constituent nation in which the head office of the producer organisation is located:

(a)may:

(i)subject to paragraph 4, approve the producer organisation's operational programme;

(ii)grant financial assistance in accordance with Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013;

(b)must:

(i)organise checks on the producer organisation and apply any administrative penalties in accordance with Article 34A of Regulation (EU) 2017/892; and

(ii)provide, on the request of the appropriate authority for a constituent nation in which members are located, all relevant documentation.

4.Notwithstanding paragraph 3(a)(i), where the producer organisation is implementing an operational programme at the time of applying for a new operational programme, the appropriate authority that may approve the new programme is the appropriate authority for the constituent nation in which the producer organisation will have its head office at the time that the new programme will be implemented, to be determined in accordance with paragraphs 1 and 2 on the basis of the new operational programme.]

Article 15U.K.Mergers of producer organisations

1.Where producer organisations merge, the producer organisation resulting from the merger shall assume the rights and obligations of the individual producer organisations that merged. The [F31Secretary of State] shall ensure that the new producer organisation complies with all recognition criteria and shall assign to it a new number for the purposes of the unique identification system as referred to in Article 22 of Implementing Regulation (EU) 2017/892.

The producer organisation resulting from the merger may either operate the programmes in parallel and separately until 1 January of the year following the merger, or merge the operational programmes from the moment of the merger.

Article 34 of this Regulation shall apply to operational programmes that are merged.

2.By way of derogation from the second subparagraph of paragraph 1, [F32the appropriate authority or authorities (as the case may be)] may authorise on the basis of a duly substantiated request, operational programmes to continue to be implemented in parallel until they reach their natural conclusion.

Article 16U.K.Non-producer members

1.[F33Any] natural or legal person who is not a producer may be accepted as a member of a producer organisation [F34if and for so long as there is no conflict of interest between that person and the producer organisation].

F352.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.The natural or legal persons referred to in paragraph 1 shall not:

(a)be taken into account for the recognition criteria;

(b)benefit directly from the measures financed [F36from public funds].

[F37Restrictions on the right of a natural or legal person to vote on decisions relating to operational funds are set out in Annex VIII to this Regulation.]

[F384.By way of derogation from paragraph 3(b), an existing non-UK member of an ex-transnational producer organisation may continue to benefit directly from measures financed from public funds, where:

(a)those measures are contained in an [F39ongoing] operational programme that was [F40being] implemented by that organisation before IP completion day; and

(b)that member was entitled to benefit from those measures immediately before IP completion day.]

Textual Amendments

Article 17U.K.Democratic accountability of producer organisations

1.Where a producer organisation has a legal structure requiring democratic accountability under the applicable F41... legislation, it shall be considered to fulfill this requirement for the purposes of this Regulation unless the [F42Secretary of State] decides otherwise.

[F432.The maximum percentage of voting rights and shares or capital which any natural or legal person may hold in any producer organisation that does not fall within paragraph 1 is set out in Annex VIII to this Regulation.]

3.[F44The Secretary of State] shall carry out checks, based on a risk analysis, on voting rights and shareholdings. Where the members of the producer organisation are legal persons themselves, these checks shall include the identities of the natural or legal persons that hold shares or capital of the members.

F454.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3U.K.Associations of producer organisations

Article 18U.K.Rules on producer organisations applicable to associations of producer organisations

Articles 3, 6, 11(3), 13, 15 and 17 [F46(save as provided otherwise in this Article and Annex VIII)] shall apply mutatis mutandis to associations of producer organisations. Where the association of producer organisations sells the products of its member producer organisations, Article 11(2) shall apply mutatis mutandis. [F47Restrictions on voting rights in associations of producer organisations are set out in Annex VIII to this Regulation.]

Article 19U.K.Recognition of associations of producer organisations

1.[F48The Secretary of State] may recognise associations of producer organisations under Article 156 of Regulation (EU) No 1308/2013 in respect of the activity or activities concerning the product or the group of products specified in the application for recognition where the association of producer organisations is capable of carrying out effectively those activities.

2.An association of producer organisations recognised under Article 156 of Regulation (EU) No 1308/2013 may carry out any of the activities or functions of a producer organisation, even when the marketing of the products concerned continues to be carried out by its members.

3.For a given product or group of products and activity, a producer organisation shall be a member only of one association of producer organisations that implements an operational programme.

4.[F49Nothing in this Regulation prevents the Secretary of State from adopting] complementary rules on recognition of associations of producer organisations.

Article 20U.K.Members of associations of producer organisations who are not producer organisations

1.[F50Natural] or legal persons other than a recognised producer organisation may be a member of an association of producer organisations [F51if and for so long as there is no conflict of interest between those persons and the association of producer organisations].

2.Members of a recognised association of producer organisations who are not recognised producer organisations shall not:

(a)be taken into account for the recognition criteria;

(b)benefit directly from the measures financed [F52from public funds].

[F53Restrictions on those members' right to vote on decisions relating to operational programmes are set out in Annex VIII to this Regulation.]

F54Article 21U.K.Transnational association of producer organisations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F55Article 21AU.K.Head office of an association of producer organisations

1.The head office of an association of producer organisations must be located in the constituent nation in which the member producer organisations achieve the majority of the value of marketed production calculated in accordance with Articles 22 and 23.

But the head office may be established in the constituent nation where the majority of member producer organisations are located, if both the appropriate authority for that constituent nation and the appropriate authority for the constituent nation referred to in the first subparagraph consent.

2.Notwithstanding paragraph 1, the head office:

(a)may not move to another constituent nation until the end of the implementation of an ongoing operational programme; and

(b)may be maintained in a particular constituent nation for as long as the appropriate authority for that constituent nation and the appropriate authorities referred to in paragraph 1 consent.

3.The appropriate authority for the constituent nation in which the head office of the association of producer organisations is located:

(a)may:

(i)subject to paragraph 4, approve the association's operational programme;

(ii)grant financial assistance in accordance with Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013;

(b)must:

(i)organise checks on the association of producer organisations and apply any administrative penalties in accordance with Article 34B of Regulation (EU) 2017/892; and

(ii)provide, on the request of the appropriate authority for a constituent nation in which members are located, all relevant documentation.

4.Notwithstanding paragraph 3(a)(i), where the association of producer organisations is implementing an operational programme at the time of applying for a new operational programme, the appropriate authority that may approve the new programme is the appropriate authority for the constituent nation in which the association will have its head office at the time that the new programme will be implemented, to be determined in accordance with paragraphs 1 and 2 on the basis of the new operational programme.]

CHAPTER IIU.K.Operational funds and operational programmes

Section 1U.K.Value of marketed production

Article 22U.K.Basis for calculation

1.[F56Except to the extent that this Article and Article 23 provide otherwise, the] value of marketed production for a producer organisation shall be calculated on the basis of the production of the producer organisation itself and its producer members, and shall only include the production of those fruit and vegetables for which the producer organisation is recognised. The value of marketed production may include fruit and vegetables that are not required to conform to the marketing standards, where those standards do not apply.

[F57Except to the extent that this Article and Article 23 provide otherwise, the] value of marketed production for an association of producer organisations shall be calculated on the basis of the production marketed by the association of producer organisations itself and by its member producer organisations, and shall only include the production of those fruit and vegetables for which the association of producer organisations is recognised. In making this calculation duplicate counting shall be avoided.

2.The value of the marketed production shall not include the value of processed fruit and vegetables or any other product that is not a product of the fruit and vegetables sector.

However, the value of the marketed production of fruit and vegetables intended for processing, which have been transformed into one of the processed fruit and vegetable products listed in Part X of Annex I to Regulation (EU) No 1308/2013 or any other processed product referred to in this Article and described further in Annex I to this Regulation, by either a producer organisation, an association of producer organisations or their producer members or subsidiaries complying with the 90 % requirement referred to in paragraph 8 of this Article, either by themselves or through outsourcing, shall be calculated as a flat rate in percentage applied to the invoiced value of those processed products. That flat rate shall be:

(a)53 % for fruit juices;

(b)73 % for concentrated juices;

(c)77 % for tomato concentrate;

(d)62 % for frozen fruit and vegetables;

(e)48 % for canned fruit and vegetables;

(f)70 % for canned mushrooms of the genus Agaricus;

(g)81 % for fruits provisionally preserved in brine;

(h)81 % for dried fruits;

(i)27 % for processed fruit and vegetables other than those referred to in points (a) to (h);

(j)12 % for processed aromatic herbs;

(k)41 % for paprika powder.

3.[F58The Secretary of State] may allow producer organisations to include the value of the by-products in the value of marketed production.

F594.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.[F60Except to the extent that this Article and Article 23 provide otherwise, only] the production of the producer organisation and its producer members which is marketed by that producer organisation shall be counted in the value of marketed production. The production of the producer members of the producer organisation marketed by another producer organisation designated by their own organisation shall be counted in the value of marketed production of the second producer organisation. Duplicate counting shall be avoided.

6.Except where paragraph 8 applies, the marketed production of fruit and vegetables shall be invoiced at the ‘ex-producer organisation’ stage as a product listed in Part IX of Annex I to Regulation (EU) No 1308/2013 that is prepared and packaged, excluding:

(a)VAT;

(b)costs of transport internal to the producer organisation, for the distance between the centralised collection or packing points of the producer organisation and the point of distribution of the producer organisation which exceeds 300 km.

7.The value of marketed production may also be calculated at the ‘ex-association of producer organisation’ stage and on the same basis as set out in paragraph 6.

8.The value of marketed production may also be calculated at the ‘ex-subsidiary’ stage, on the same basis as set out in paragraph 6, provided that at least 90 % of the shares or capital of the subsidiary is owned:

(a)by one or more producer organisations or associations of producer organisations; or

(b)subject to [F61approval by the Secretary of State], by producer members of the producer organisations or associations of producer organisations, if doing so contributes to the objectives listed in Article 152(1)(c) of Regulation (EU) No 1308/2013.

9.In case of outsourcing, the value of marketed production shall be calculated at the ‘ex-producer organisation’ stage and shall include the added economic value of the activity that has been outsourced by the producer organisation to its members, third parties or to another subsidiary than the one referred to in paragraph 8.

[F2310.Where a reduction in production occurs due to a natural disaster, climatic event, animal or plant diseases or pest infestations, any insurance indemnification received in respect of harvest insurance actions covered by Section 7 of Chapter III, or equivalent actions managed by the producer organisation or its producer members, due to those causes may be included in the value of marketed production.]

Textual Amendments

Article 23U.K.Reference period and ceiling on F62... financial assistance

1.[F63The appropriate authority] shall determine for each producer organisation a 12-month reference period, starting no earlier than 1 January of the year that is three years prior to the year for which the aid is requested and ending no later than 31 December of the year preceding the year for which the aid is requested.

The 12-month reference period shall be the accounting period of the producer organisation concerned.

The methodology for fixing the reference period shall not vary during an operational programme except in duly justified situations.

2.[F64Except where paragraph 2A applies, the] ceiling on F65... financial assistance referred to in Article 34(2) of Regulation (EU) No 1308/2013 shall be calculated each year on the basis of the value of the marketed production during the reference period of the producers who are members of the producer organisation or association of producer organisations on 1 January of the year for which the aid is requested.

[F662A.For ex-transnational producer organisations, the ceiling on financial assistance referred to in Article 34(2) of Regulation (EU) No 1308/2013 is to be calculated, and compliance with Article 154(1)(b) of Regulation (EU) No 1308/2013 is to be assessed, on the basis of the value of the marketed production during the reference period of producers who are producer members of the organisation on 1 January of the year for which aid is requested, calculated in accordance with Article 22.]

F673.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F684.Where a reduction of at least 35 % in the value of a product has occurred due to reasons falling outside the responsibility and control of the producer organisation, the value of marketed production of that product shall be deemed to represent 65 % of its value in the previous reference period. The producer organisation shall prove to the [F69appropriate authority] that those reasons were falling outside its responsibility and control.

Where a reduction of at least 35 % in the value of a product has occurred due to plant diseases or pest infestations falling outside the responsibility and control of the producer organisation, the value of marketed production of that product shall be deemed to represent 85 % of its value in the previous reference period. The producer organisation shall prove to the [F70appropriate authority and the Secretary of State (when the Secretary of State is not the appropriate authority)] that it has taken the necessary preventive measures against the plant disease or pest infestation concerned.

This paragraph shall also apply for the purpose of determining compliance with the minimum value of marketed production as provided for in Article 9.]

5.Where historical data on marketed production for newly recognised producer organisations is insufficient for the purpose of the application of paragraph 1, the value of marketed production shall be the value of marketable production provided by the producer organisation for the purposes of recognition.

Textual Amendments

Article 24U.K.Accounting

[F71The appropriate authority for the constituent nation in which a producer organisation has its head office must ensure that the producer organisation complies] with the [F72standards of cost-based accounting applicable in the constituent nation concerned] that allow independent auditors to promptly identify, check and certify their expenditure and revenue.

Section 2U.K.Operational funds

Article 25U.K.Financing of operational funds

1.The financial contributions to the operational fund referred to in Article 32(1)(a) of Regulation (EU) No 1308/2013 shall be determined by the producer organisation or association of producer organisations.

2.All producer members or member organisations shall have the opportunity to benefit from the operational fund and to participate democratically in decisions concerning the use of the operational fund of the producer organisation or association of producer organisations and of the financial contributions to the operational fund.

3.The statutes of a producer organisation or rules of association of an association of producer organisations shall require its producer members or member organisations to pay the financial contributions in accordance with its statutes or rules of association for the establishment and replenishment of the operational fund provided for in Article 32 of Regulation (EU) No 1308/2013.

Article 26U.K.Notification of estimated amount

1.Producer organisations and associations of producer organisations shall notify the [F73appropriate authority for the constituent nation in which their head office is located] of the estimated amounts of F74... financial assistance [F75referred to in Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013] and of the contribution, of its members and of the producer organisation or association itself, to the operational funds for the following year, by 15 September at the latest, together with the operational programmes or any request for approval of amendments to an existing operational programme.

However, [F76nothing in this Regulation prevents the appropriate authority from setting] a later date than 15 September.

2.The calculation of the estimated amount of operational funds shall be based on the operational programmes and the value of marketed production. The calculation shall be split between expenditure for crisis prevention and management measures and other measures.

Section 3U.K.Operational programmes

Article 27U.K.[F77Strategy]

1.The F78... strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013, including the F78... framework referred to in Article 36(1) of that Regulation shall be established prior to the annual submission of the draft operational programmes. The F78... framework shall be integrated into the F78... strategy F79...

The F78... strategy may be subdivided into regional elements.

[F802.In addition to the elements referred to in Article 36(2) of Regulation (EU) No 1308/2013, the strategy must integrate all the decisions taken and provisions adopted for the purposes of Articles 152 to 163 of that Regulation that apply in the constituent nation concerned.]

3.[F81The relevant authority must carry out an analysis of the initial situation as part of the process of drawing up the strategy.]

[F82This analysis] shall identify and assess the priority needs, the objectives, the results expected and the quantified targets against the initial situation.

[F82This analysis] shall also lay down the instruments and actions to attain those objectives.

4.[F83The relevant authority] shall monitor and evaluate the F84... strategy and its implementation through operational programmes.

The F84... strategy may be amended prior to the annual submission of the draft operational programmes.

5.[F85The relevant authority] shall set out in the F86... strategy the maximum percentages of the operational fund which may be spent on any individual measure or type of action in order to ensure a balance between different measures.

Textual Amendments

F87Article 28U.K.National framework for environmental actions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 29U.K.Complementary F88... rules

[F89Nothing in this Regulation prevents the appropriate authority from adopting] rules complementing Regulation (EU) No 1308/2013, this Regulation and Implementing Regulation (EU) 2017/892 concerning the eligibility of measures, actions or expenditure under operational programmes.

Article 30U.K.Relationship with rural development, State aid and promotion programmes

1.Where support under the [F90relevant authority’s] rural development programme or programmes has been granted to operations which are identical to actions that would be potentially eligible under Regulation (EU) No 1308/2013, [F91the appropriate authority for the constituent nation concerned] shall ensure that a beneficiary may receive support for a given action only under one scheme.

Where [F92the relevant authority] includes such operations in its rural development programme or programmes, it shall ensure that the [F93strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013] indicates the safeguards, provisions and checks put in place to avoid double funding of the same action or operation.

[F232.Producer organisations or associations of producer organisations which have been granted the support provided in Article 27 of Regulation (EU) No 1305/2013 or Article 19 of Commission Regulation (EU) No 702/2014(8) may implement an operational programme in the same period provided that the [F94appropriate authority] ensures that the beneficiaries receive support for any given action only under one scheme.]

3.Where applicable, and without prejudice to Article 34(1) and (3) and Article 35 of Regulation (EU) No 1308/2013, the level of support for measures covered by that Regulation shall not exceed the level applicable for the measures under the rural development programme.

4.Support for environmental actions that are identical to agri-environment-climate or organic farming commitments as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013 respectively, shall be limited to the maximum amounts laid down in Annex II to that Regulation for agri-environment-climate payments or for organic farming payments. Those amounts may be increased in duly substantiated cases taking account of specific circumstances to be justified in the [F95strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013] and in the operational programmes of the producer organisations.

5.Paragraph 4 shall not apply to environmental actions which do not relate directly or indirectly to a particular parcel.

6.Where producer organisations, associations of producer organisations or interbranch organisations benefit from promotion programmes approved under Regulation (EU) No 1144/2014 of the European Parliament and of the Council(9), [F96the appropriate authorities] shall ensure that a beneficiary may receive support for a given action only under one scheme.

Textual Amendments

Article 31U.K.Eligibility of actions under operational programmes

1.Operational programmes shall not include actions or expenditure listed in Annex II. A non-exhaustive list of eligible actions is set out in Annex III.

2.Expenditure under operational programmes eligible for aid shall be restricted to the actual costs incurred. F97...

F983.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In order for an action to be eligible, products for which the producer organisation is recognised shall account for more than 50 % of the value of the products covered by that action. In addition, the products concerned shall come from the producer organisation's members or producer members of another producer organisation or association of producer organisations. Articles 22 and 23 shall apply mutatis mutandis to the calculation of the value.

5.Investments in physical assets shall entail the following commitments:

(a)without prejudice to paragraph 4, the physical assets acquired shall be used in accordance with their intended use, as described in the approved operational programme concerned;

(b)without prejudice to the third and fourth subparagraphs of paragraph 6, the physical assets acquired shall remain both in the property and possession of the beneficiary until either the end of the fiscal depreciation period of the physical asset or for 10 years, whichever period is shorter. The beneficiary shall also ensure the maintenance of the physical asset during that period. However, where the investment is made on ground rented under particular [F99property rules as they apply in the relevant constituent nation] , the requirement of being in the property of the beneficiary may not apply provided that the investments have been in the possession of the beneficiary at least for the period required in the first sentence of this point;

(c)where the producer organisation is the owner and the member of the producer organisation is the holder of the physical asset to which the investment relates, the producer organisation shall have access rights to that asset for the duration of the fiscal depreciation period.

However, for the purposes of point (b) of the first subparagraph, [F100the appropriate authority] may provide that a period different to that of the fiscal depreciation period shall apply. Such period shall be indicated and duly justified in [F101the strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013] and cover at least the period referred to in Article 71(1) of Regulation (EU) No 1303/2013 of the European Parliament and of the Council(10).

6.[F23Investments, including those under leasing contracts, may be financed through the operational fund in one amount or in instalments that were approved in the operational programme.][F102The appropriate authority] may approve amendments to the operational programme providing for a new distribution of the instalments in duly justified cases.

If the fiscal depreciation period of an investment exceeds the length of the operational programme, it may be carried over to a subsequent operational programme.

Where investments are replaced, the residual value of the investments replaced shall be:

(a)added to the operational fund of the producer organisation; or

(b)subtracted from the cost of the replacement.

If the investment is sold before the end of the period referred to in paragraph 5 but it is not replaced, [F103any European Union] aid paid to finance the investment shall be recovered and reimbursed to the European Agricultural Guarantee Fund (EAGF) [F104and any aid paid to finance the investment from public funds shall be recovered by or on behalf of the relevant authority or authorities that provided the aid, in both cases] in proportion to the number of full years that remain until the end of the depreciation period referred to in point (b) of the first subparagraph of paragraph 5.

[F105The obligations to recover any aid paid from public funds under the fourth subparagraph do not apply to investments that are financed under an operational programme implemented by an ex-transnational producer organisation, provided that:

(a)the investment was financed under an operational programme that was being implemented by the ex-transnational producer organisation immediately before IP completion day; and

(b)the investment was carried over to a subsequent operational programme because the fiscal depreciation period of the investment exceeded the length of the operational programme being implemented immediately before IP completion day.]

7.Actions, including investments, may be implemented on individual holdings or premises of producer members of the producer organisation, association of producer organisations or their subsidiaries complying with the 90 % requirement as referred to in Article 22(8), including where the actions are outsourced to members of the producer organisation or association of producer organisations, provided that they contribute to the objectives of the operational programme.

If the F106... member leaves the producer organisation, [F107the appropriate authority] shall ensure that the investment or its residual value is recovered by the producer organisation and in the latter case, added to the operational fund.

However, in duly justified circumstances, [F107the appropriate authority] may provide that the producer organisation shall not be required to recover the investment or its residual value.

8.Actions, including investments, related to the transformation of fruit and vegetables into processed fruit and vegetables may be eligible for support where such actions and investments pursue the objectives set out in Article 33(1) of Regulation (EU) No 1308/2013, including those referred to in Article 160 of that Regulation, and provided that they are identified in the F108... strategy referred to in Article 36 of Regulation (EU) No 1308/2013.

9.Investments in intangible assets may be eligible for support where such investments pursue the objectives set out in Article 33(1) of Regulation (EU) No 1308/2013, including those referred to in Article 160 of that Regulation, and provided that they are identified in the F109... strategy referred to in Article 36 of Regulation (EU) No 1308/2013.

Textual Amendments

Article 32U.K.Operational programmes of associations of producer organisations

1.[F110Associations of producer organisations may make provision in their members’ agreements and statutes for producer members] which are not producer organisations, but which are members of such associations pursuant to Article 20, [F111to] finance the measures implemented by the association of producer organisations in proportion to the contribution of member producer organisations.

2.Articles 30, 31, 33 and 34 of this Regulation and Articles 4 to 7 of Implementing Regulation (EU) 2017/892 shall apply mutatis mutandis to operational programmes of associations of producer organisations. However, a balance between the activities referred to in Article 4(1)(b) of Implementing Regulation (EU) 2017/892 shall not be required in respect of partial operational programmes of associations of producer organisations.

3.The ceiling for the crisis management and prevention expenditure, referred to in the fourth subparagraph of Article 33(3) of Regulation (EU) No 1308/2013, under the operational programmes of associations of producer organisations shall be calculated at the level of each member producer organisation.

Article 33U.K.Decision

1.[F112The appropriate authority] shall:

(a)approve amounts of operational funds and operational programmes which meet the requirements of Regulation (EU) No 1308/2013 and those of this Chapter;

(b)approve the operational programmes, on condition that certain amendments are accepted by the producer organisation; or

(c)reject the operational programmes or parts thereof.

2.[F113The appropriate authority] shall take decisions on operational programmes and operational funds by 15 December of the year in which they are submitted.

[F113The appropriate authority] shall notify the producer organisations of those decisions by 15 December.

However, for duly justified reasons, such decisions may be taken after that date, but no later than 20 January following the date of submission. The approval decision may provide that expenditure is eligible from 1 January of the year following the submission.

Article 34U.K.Amendments to operational programmes

1.Producer organisations may request amendments to operational programmes, including their duration, for subsequent years. [F114The appropriate authority] shall set deadlines for the submission and approval of such requests so that the approved amendments apply as from 1 January of the following year.

For duly justified reasons, such requests may be approved after the deadlines set by [F115the appropriate authority], but no later than 20 January following the year of the request. The approval decision may provide that expenditure is eligible from 1 January following the year of the request.

2.[F116The appropriate authority] may authorise amendments to operational programmes during the year, under conditions to be determined by [F117the appropriate authority]. The decisions on those amendments shall be taken by 20 January of the year following the year on which amendments are requested.

Producer organisations may be authorised by [F118the appropriate authority], during the year to:

(a)implement their operational programmes in part only;

(b)change the content of the operational programmes;

(c)increase the amount of the operational fund by a maximum of 25 %, and decrease it by a [F119maximum of 25%], of the amount initially approved, provided that the overall objectives of the operational programme are maintained;

(d)add [F120additional] financial assistance to the operational fund in case of application of Article 53.

[F121The appropriate authority] shall determine the conditions under which operational programmes may be amended during the year without prior approval by [F122that appropriate] authority F123... Those amendments shall only be eligible for aid if they are notified by the producer organisation to [F122that appropriate] authority without delay.

[F124The appropriate authority] may modify the percentages referred to in point (c) of the second subparagraph in case of mergers of producer organisations as referred to in Article 15(1).

3.Requests for amendments shall be accompanied by supporting documents giving the reason, nature and implications of the changes.

Textual Amendments

Section 4U.K.Aid

Article 35U.K.Advance payments

1.[F125A producer organisation may apply to the appropriate authority for the constituent nation in which the producer organisation has its head office] for an advance payment of a part of the aid. That advance payment shall correspond to the forecast expenditure resulting from the operational programme during the [F126quarter] starting in the month in which the application for an advance payment is submitted.

[F127A producer organisation applying for an advance payment must demonstrate to the satisfaction of the appropriate authority, and the appropriate authority must verify, that:

(a)financial contributions to the producer organisation’s operational fund have been levied and paid in accordance with Articles 24 and 25;

(b)the corresponding producer organisation contribution has actually been spent; and

(c)any previous advance payments received by the producer organisation have actually been spent.]

2.Applications for the release of securities may be submitted during the current programme year and shall be accompanied by supporting documents, such as invoices and documents proving that payment has been made.

Securities shall be released in respect of up to 80 % of advances paid.

3.In the event of failure to comply with the operational programmes or of serious failure to meet the obligations provided for in Article 5(b) and (c) of Implementing Regulation (EU) 2017/892 the security shall be forfeited, without prejudice to other administrative penalties to be applied in accordance with Section 3 of Chapter V of this Title.

In the event of failure to comply with other requirements, the security shall be forfeited in proportion to the gravity of the irregularity that has been established.

[F1284.In this Article ‘quarter’ means a period of three months ending with the last day of March, June, September or December.]

Article 36U.K.Cessation of an operational programme and discontinuity of recognition

1.If a producer organisation or association of producer organisations ceases to implement its operational programme before the end of its scheduled duration, no further payments shall be made to that organisation or association for actions implemented after the date of cessation.

2.Aid received for eligible actions carried out before the cessation of the operational programme shall not be recovered, provided that:

(a)the producer organisation or association of producer organisations complied with the recognition criteria and the objectives of the actions laid down in the operational programme have been fulfilled at the moment of cessation; and

(b)the investments financed with support from the operational fund are maintained in the possession of and used by the producer organisation, association of producer organisations or its subsidiaries complying with the 90 % requirement referred to in Article 22(8) or its members at least until the end of their depreciation period as referred to in Article 31(5). Otherwise, the [F129European Union] financial assistance paid to finance those investments shall be recovered and reimbursed to the EAGF [F130and any aid paid to finance those investments from public funds shall be recovered by or on behalf of the relevant authority or authorities that provided the aid].

3.[F131European Union] financial assistance for multiannual commitments, such as environmental actions, where their long term objectives and expected benefits cannot be realised because of the interruption of the measure shall be recovered and reimbursed to the EAGF.

[F132Any aid paid from public funds for multiannual commitments, such as environmental actions, where their long term objectives and expected benefits cannot be realised because of the interruption of the measure shall be recovered by or on behalf of the relevant authority or authorities that provided the aid.]

4.This Article shall apply mutatis mutandis in case of voluntary discontinuity of recognition, withdrawal of recognition or dissolution of the producer organisation or association of producer organisations.

5.Unduly paid aid shall be recovered in accordance with Article 67.

F1336.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER IIIU.K.Crisis prevention and management measures

Section 1U.K.General provisions

F134Article 37U.K.Selection of crisis prevention and management measures

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Article 38U.K.Loans to finance crisis prevention and management measures

Loans taken out to finance crisis prevention and management measures pursuant to the fifth subparagraph of Article 33(3) of Regulation (EU) No 1308/2013 may, on duly justified economic grounds, be carried over to a subsequent operational programme, if their repayment period exceeds the length of the operational programme.

F135Section 2U.K.Investments making the management of the volumes placed on the market more efficient

F135Article 39U.K.Investments related to the management of volumes

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[F23Section 3 U.K. Support related to mutual funds

Article 40U.K. Support related to mutual funds

1.[F136A producer organisation may apply for support for the administrative cost of setting up mutual funds and the replenishment of mutual funds, as referred to in point (d) of the first subparagraph of Article 33(3) of Regulation (EU) No 1308/2013.]

2.The support for the administrative cost of setting up mutual funds F137... shall comprise both the F138... financial assistance [F139referred to in Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013] and the contribution from the producer organisation. The total amount of that support shall not exceed 5 %, 4 % or 2 % of the contribution of the producer organisation to the mutual fund in the first, second and third year of its operation, respectively.

3.A producer organisation may receive the support for the administrative cost of setting up mutual funds F140..., only once and only within the three first years of the operation of the mutual fund. Where a producer organisation only asks for that support in the second or the third year of operation of the mutual funds, the support shall be 4 % or 2 % of the contribution of the producer organisation to the mutual fund in the second and third year of its operation, respectively.

4.[F141Nothing in this Regulation prevents the appropriate authority from fixing] ceilings for the amounts that may be received by a producer organisation as a support related to mutual funds.]

Textual Amendments

F142Section 4U.K.Replanting of orchards following mandatory grubbing-up

F142Article 41U.K.Replanting of orchards

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F142Section 5U.K.Market withdrawals

F142Article 42U.K.Scope

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F142Article 43U.K.Three-year average for market withdrawals for free distribution

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F142Article 44U.K.Prior notification of withdrawal operations

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F142Article 45U.K.Support

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F142Article 46U.K.Destinations for withdrawn products

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F142Article 47U.K.Conditions for the recipients of withdrawn products

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F142Section 6U.K.Green harvesting and non-harvesting

F142Article 48U.K.Conditions for the application of green harvesting and non-harvesting

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F142Article 49U.K.Obligations of the Member States

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Section 7U.K.Harvest insurance

Article 50U.K.Objective of harvest insurance actions

Actions relating to harvest insurance as referred to in point (h) of the first subparagraph of Article 33(3) of Regulation (EU) No 1308/2013 shall contribute to safeguarding producers' incomes and to covering market losses incurred by the producer organisation or its members where they are affected by natural disasters, climatic events and, where applicable, diseases or pest infestations.

Article 51U.K.Implementation of harvest insurance actions

[F1431.Harvest insurance actions must be managed by the producer organisation. Harvest insurance actions do not have to cover all of the members of the producer organisation, and can be targeted at specific producer members.

Harvest insurance actions are not permitted to cover contracts of insurance that are not effected and carried out as principal by an authorised person in accordance with the Financial Services and Markets Act 2000.]

2.[F144The appropriate authority for the constituent nation in which the producer organisation has its head office] may grant additional F145... financing to support harvest insurance actions which are benefiting from the operational fund. However, total public support for harvest insurance shall not exceed:

(a)80 % of the cost of the insurance premiums paid for by producers for insurance against losses as a result of adverse climatic events which can be assimilated to natural disasters;

(b)50 % of the cost of the insurance premiums paid for by producers for insurance against:

(i)

losses referred to in point (a) and against other losses caused by adverse climatic events; and

(ii)

losses caused by animal or plant diseases or pest infestations.

The limit set out in point (b) of the first subparagraph shall apply even in cases where the operational fund is otherwise eligible for 60 % F146... financial assistance pursuant to Article 34(3) of Regulation (EU) No 1308/2013.

3.Harvest insurance actions shall not cover insurance payments which compensate producers for more than 100 % of the income loss suffered, taking into account any compensation the producers obtain from other support schemes related to the insured risk.

F147 Section 8 U.K. Support related to coaching

F147Article 51aU.K. Implementation of coaching measures

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CHAPTER IVU.K. [F148Additional] financial assistance

[F23Article 52U.K. Conditions for the application of [F149additional] financial assistance

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F1512.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.Only fruit and vegetables produced in the [F152regions] referred to in paragraph 4 shall benefit from [F153additional financial assistance referred to in Article 35 of Regulation (EU) No 1308/2013].

4.[F154Regulations under Article 35(1) of Regulation (EU) No 1308/2013 must specify the regions to which the regulations apply.

The regions must be a distinct part of the territory of the constituent nation concerned and data must be available in order to calculate the degree of organisation of producers in the fruit and vegetables sector in those regions.

The appropriate authority must determine the regions where the degree of organisation of producers in the fruit and vegetables sector is particularly low on the basis of objective and non-discriminatory criteria, such as those regions’—

(a)agronomic and economic characteristics;

(b)agricultural and fruit and vegetable potential; and

(c)institutional or administrative structure.]

The regions [F155specified] by [F156such regulations] shall not be amended at least for five years unless such amendment is objectively justified, in particular for reasons that are not related to the calculation of the degree of organisation of producers in the region or regions concerned.

F1575.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

Article 53U.K.Amendments to the operational programme

A producer organisation wishing to apply for [F158additional] financial assistance shall, if necessary, amend its operational programme pursuant to Article 34.

CHAPTER VU.K.General provisions

Section 1U.K.Notifications and reports

[F159Article 54U.K.Publications concerning producer organisations and associations of producer organisations

Each appropriate authority must each ensure that the following information and documents are published on a website maintained by them or on their behalf, starting in 2022:

(a)

by 31 January each year:

(i)

the total amount of the operational funds approved that year for operational programmes;

(ii)

the total amount of financial assistance granted under Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013 for that year;

(iii)

the allocations of the amounts referred to in points (i) and (ii) between:

(aa)

crisis prevention and management measures;

(bb)

other measures;

(b)

by 15 November each year, an annual report on producer organisations and associations of producer organisations, and operational funds and operational programmes in operation during the previous year. This annual report must contain the information set out in Annex V to this Regulation.

Where the appropriate authorities agree, the information and documents may instead be published in respect of the United Kingdom as a whole.]

Article 55U.K.Member States' notifications concerning producer prices of fruit and vegetables on the internal market

1.Member States shall notify the Commission, by 12.00 hours (Brussels time) each Wednesday of the weighted average recorded prices for fruit and vegetables listed in Annex VI during the previous week, where data are available.

For fruit and vegetables covered by the general marketing standard set out in Part A of Annex I to Implementing Regulation (EU) No 543/2011, only prices of products meeting that standard shall be notified, whereas prices for products covered by a specific marketing standard set out in Part B of that Annex shall only concern products of class I.

Member States shall notify a single weighted average price corresponding to the types and varieties of products, sizes and presentations specified in Annex VI to this Regulation. Where recorded prices concern other types, varieties, sizes or presentations than those specified in that Annex, Member States shall notify the Commission of the types, varieties, sizes and presentations of the products to which prices correspond.

Notified prices shall be ex-packaging station, sorted, packaged and, where applicable, on pallets, expressed in euro per 100 kilograms net weight.

2.Member States shall identify representative markets in the production area of the fruit and vegetables concerned. Member States shall notify the Commission of the representative markets and their weight in the average with the first notification or when they modify them. Member States may notify other prices on a voluntary basis.

Section 2U.K.Monitoring and evaluation of operational programmes and of F160... strategies

[F23Article 56U.K. Indicators

1.The operational programmes and the [F161strategies referred to in Article 36(2) of Regulation (EU) No 1308/2013] shall be subject to monitoring and evaluation aimed at assessing the progress made in achieving the objectives set in the operational programmes, as well as their efficiency and the effectiveness in relation to those objectives.

2.Progress, efficiency and effectiveness referred to in paragraph 1 shall be assessed throughout the implementation of the operational programme on the basis of indicators, set out in Section 4 of Annex II to Implementing Regulation (EU) 2017/892, relating to actions and measures implemented by recognised producer organisations [F162and associations of producer organisations] during the operational programmes.]

Article 57U.K.Monitoring and evaluation procedures in relation to operational programmes

1.Producer organisations and associations of producer organisations shall establish a system to collect, record and maintain information for the compilation of the applicable indicators for the monitoring and evaluation of the operational programmes.

2.The monitoring exercise shall be carried out in such a way that its results:

(a)verify the quality of programme implementation;

(b)identify any need for adjustments or review of the operational programme;

[F23(c)provide information for reporting requirements.]

3.Evaluation shall take the form of a report [F163to be sent by the producer organisation or association of producer organisations concerned to the appropriate authority] in the last but one year of the implementation of the operational programme F164...

[F23The evaluation exercise shall examine the progress made in relation to the overall objectives of the programme, based on indicators set out in Section 4 of Annex II to Implementing Regulation (EU) 2017/892.]

Where applicable, the evaluation exercise shall include a qualitative assessment of the results and the impact of the environmental actions aimed at:

(a)the prevention of soil erosion;

(b)a reduction in the use or better management of plant protection products;

(c)the protection of habitats and biodiversity; and

(d)landscape conservation.

The results of the exercise shall be used to:

(a)improve the quality of the operational programme;

(b)identify any need for substantive change of the operational programme; and

(c)draw lessons useful in improving future operational programmes.

[F23The evaluation report shall be attached to the corresponding annual report referred to in [F165Article 9(2)(j)] of the Implementing Regulation (EU) 2017/892.]

Article 58U.K.Monitoring and evaluation procedures in relation to the F166... strategy

1.[F167Each appropriate authority] shall establish a system to collect, record and maintain information in electronic form adequate for the purpose of compiling the indicators referred to in Article 56. To this end, [F168each appropriate authority] shall use the information transmitted by the producer organisations and associations of producer organisations in relation to the monitoring and the evaluation of their operational programmes. [F169Where the appropriate authorities agree, the system may be a single system in respect of the United Kingdom as a whole.]

2.Monitoring shall be ongoing in order to assess the progress made towards achieving the objectives of the operational programmes. For this purpose, use shall be made of the information provided in the annual reports transmitted by the producer organisations and associations of producer organisations. The monitoring exercise shall be carried out in such a way that its results:

(a)verify the quality of the implementation of the operational programmes;

(b)identify any need for adjustments or review of the F166... strategy aimed at achieving the goals set for the strategy or at improving the management of the strategy implementation, including the financial management of the operational programmes.

3.Evaluation shall be aimed at assessing the progress made towards the overall objectives of the strategy. For this purpose, use shall be made of the results of the monitoring and evaluation of the operational programmes as indicated in the annual and last but one annual reports transmitted by the producer organisations. The results of the evaluation exercise shall be used to:

(a)improve the quality of the strategy;

(b)identify any need for substantive change of the strategy.

F170...

Section 3U.K.Administrative penalties

Article 59U.K.Non-respect of recognition criteria

1.If [F171the Secretary of State] has established that a producer organisation fails to respect one of the recognition criteria linked to the requirements of Articles 5 and 7, Article 11(1) and (2) and Article 17, [F172the Secretary of State] shall send to the producer organisation in question no later than two months after the failure has been identified, by registered delivery, a warning letter stating the failure identified, the corrective measures required and the time periods within which these measures have to be taken, which shall not exceed four months. As from the moment a failure is established, [F173the appropriate authority] shall suspend payments of aid until the corrective measures are taken to [F174the Secretary of State's] satisfaction.

2.A failure to take the corrective measures referred to in paragraph 1 within the time period fixed by the [F175Secretary of State] shall lead to the suspension of the recognition of the producer organisation. The [F175Secretary of State] shall notify the producer organisation of the period of suspension, which shall start immediately after the expiry of the time period fixed for taking those corrective measures and shall not exceed 12 months from the date of the receipt of the warning letter by the producer organisation. This is without prejudice to the application of F176... legislation which may provide for the suspension of such an action following the commencement of connected legal proceedings.

During the suspension of the recognition, the producer organisation may continue its activity, but aid payments shall be withheld until the suspension of the recognition is lifted. The yearly aid amount shall be reduced by 2 % for each calendar month or part thereof during which recognition is suspended.

The suspension shall end on the day of the check which confirms that the recognition criteria in question have been fulfilled.

3.If the criteria are not fulfilled by the end of the period of suspension set by the [F177Secretary of State], the [F178Secretary of State] shall withdraw the recognition with effect from the date from which the conditions for recognition were not fulfilled, or, if it is not possible to identify that date, from the date when the failure was established. This is without prejudice to the application of F179... legislation which may provide for the suspension of recognition following the commencement of connected legal proceedings. Outstanding aid concerning the period during which the failure has been identified shall not be paid and unduly paid aid shall be recovered.

4.If [F180the Secretary of State] has established that a producer organisation fails to respect any of the recognition criteria laid down in Article 154 of Regulation (EU) No 1308/2013 other than those mentioned in paragraph 1, [F181the Secretary of State] shall send to the producer organisation in question, no later than two months after the failure has been established, by registered delivery, a warning letter stating the failure identified, the corrective measures required and the time periods within which these measures have to be taken, which shall not exceed four months.

5.A failure to take the corrective measures referred to in paragraph 4 within the time period fixed by the [F182Secretary of State] shall lead to a suspension of payments and a reduction of the yearly aid amount by 1 % for each calendar month, or part thereof, following the expiry of that time period. This is without prejudice to the application of F183... legislation which may provide for the suspension of such an action following the commencement of connected legal proceedings.

6.[F184 The Secretary of State] shall withdraw recognition if the producer organisation does not prove compliance with the minimum volume or value of marketed production criteria as required by Article 154(1)(b) of Regulation (EU) No 1308/2013 by 15 October of the second year following the year in which those criteria were not complied with. Withdrawal shall take effect from the date from which the conditions for recognition were not fulfilled, or, if it is not possible to identify that date, from the date when the failure was established. Outstanding aid concerning the period during which the failure has been identified shall not be paid and unduly paid aid shall be recovered.

However, when a producer organisation delivers to the [F185Secretary of State] proof that due to natural disasters, adverse climatic events, diseases or pest infestations, despite having undertaken the risk prevention measures it is not able to respect the recognition criteria laid down in Article 154(1)(b) of Regulation (EU) No 1308/2013 in respect of the minimum volume or value of marketable production laid down by [F186the Secretary of State] , the [F185Secretary of State] may, for the year in question, derogate from the minimum volume or value of marketable production for this producer organisation.

7.In cases where paragraphs 1, 2, 4 and 5 apply, [F187the appropriate authorities] may make payments after the deadline set out in Article 10 of Implementing Regulation (EU) 2017/892. However, these payments shall not be made later than 15 October of the second year following the year of implementation of the programme.

8.Paragraphs 1 to 5 shall apply mutatis mutandis in cases of failure by a producer organisation to provide the [F188appropriate authority] with the information required under Article 21 of Implementing Regulation (EU) 2017/892.

Textual Amendments

Article 60U.K.Fraud

1.[F189The appropriate authority] shall suspend payments to and [F190the Secretary of State shall suspend] the recognition of a producer organisation or an association of producer organisations, which are under investigation by a [F191public authority within the United Kingdom] in connection with a charge of fraud in respect of aid covered by Regulation (EU) No 1308/2013, until the charge has been determined.

2.Where a producer organisation or an association of producer organisations has committed fraud in respect of aid covered by Regulation (EU) No 1308/2013, [F192the responsible authority] shall, without prejudice to any other penalties applicable [F193in law] :

(a)withdraw the recognition of that organisation or association;

(b)exclude the actions concerned from support under the operational programme concerned and recover any aid already paid with respect to those actions; and

(c)exclude that organisation or association from recognition during the following year.

[F194In this paragraph, the ‘responsible authority’ is the appropriate authority for the constituent nation in which the producer organisation has its head office in respect of actions under point (b), and the Secretary of State in respect of actions under points (a) and (c).]

Textual Amendments

Article 61U.K.Penalty for ineligible amounts

1.Payments shall be calculated on the basis of eligible actions.

2.The [F195appropriate authority] shall examine the aid application, and establish the amounts that are eligible for support. It shall establish the amount that:

(a)would be payable to the beneficiary based solely on the application;

(b)is payable to the beneficiary after an examination of the eligibility of the application.

3.If the amount established pursuant to paragraph 2(a) exceeds the amount established pursuant to paragraph 2(b) by more than 3 %, a penalty shall be applied. The amount of the penalty shall be the difference between the amounts calculated pursuant to paragraph 2(a) and (b). However, no penalty shall be applied if the producer organisation is able to demonstrate that it is not responsible for the inclusion of the ineligible amount.

4.Paragraphs 2 and 3 shall apply mutatis mutandis to ineligible expenditure identified during on-the-spot or subsequent checks.

5.If the value of marketed production is declared and checked before the application for aid, the declared and approved values shall be used when establishing the amounts pursuant to paragraph 2(a) and (b), respectively.

6.Where at the end of the operational programme, the conditions referred to in Article 33(5)(b) of Regulation (EU) No 1308/2013 have not been complied with, the total amount of support for the last year of the operational programme shall be reduced in proportion to the amount of expenditure not incurred on environmental actions.

F196Article 62U.K.Administrative penalties following first-level checks on withdrawal operations

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F196Article 63U.K.Administrative penalty applicable to producer organisations regarding withdrawal operations

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F196Article 64U.K.Administrative penalties applicable to recipients of products withdrawn from the market

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F196Article 65U.K.Administrative penalties in relation to green harvesting and non-harvesting

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Article 66U.K.Preventing an on-the-spot check

A request for recognition, approval of an operational programme or an aid application shall be rejected for the item or the part of expenditure concerned, if a producer organisation, including its members or relevant representatives, prevents an on-the-spot check from being carried out.

Article 67U.K.Payment of recovered aid and penalties

1.Producer organisations and associations of producer organisations or other operators concerned shall reimburse unduly paid aid with interest and pay the penalties provided for in this Section.

The interest shall be calculated:

(a)on the basis of the period elapsing between receipt of undue payment and its reimbursement by the beneficiary;

[F197(b)at the following rates—

(i)if the undue payment was made from European Union funds, at the rate applied by the European Central Bank to its main refinancing operations published in the ‘C’ series of the Official Journal of the European Union and in force on the date on which the undue payment is made, plus three percentage points;

(ii)if the undue payment was made from public funds, at the Bank of England base rate in force on the date on which the undue payment is made, plus three percentage points.]

[F1981A.In paragraph 1, “Bank of England base rate” for any particular day means—

(a)except where point (b) applies, the rate as last announced at a meeting of the Monetary Policy Committee of the Bank of England held prior to that day as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets; or

(b)if an order under section 19 (reserve powers) of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section.]

[F1992.Payments recovered, and interest and penalties imposed in relation to aid paid from European Union funds must be paid to the EAGF. Payments recovered, and interest and penalties imposed in relation to aid paid from public funds must be paid to the relevant authority that provided the aid.]

[F200Article 67AU.K.Apportionment of recovered aid, interest and penalties

1.Aid paid from public funds that is recovered under this Regulation, together with any interest payable thereon in accordance with this Regulation, must be apportioned between the relevant authorities in accordance with the proportion of that aid that was provided by each authority.

2.Penalties imposed under this Regulation in relation to aid paid from public funds must be paid to the relevant authority for the constituent nation in which the head office of the producer organisation was located during the period to which the penalty relates.]

CHAPTER VIU.K.Extension of rules

F201Article 68U.K.Conditions for the extension of rules

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F201Article 69U.K.National rules

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F201Article 70U.K.Notification of extension of rules and economic areas

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F201Article 71U.K.Repeal of extension of rules

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Article 72U.K.Buyers of produce sold on the tree

1.In cases where producers not belonging to a producer organisation sell their produce on the tree, the buyer shall, for the purposes of compliance with the rules regarding production reporting and marketing, be considered as having produced that produce.

F2022.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE IIIU.K. TRADE WITH THIRD COUNTRIES ENTRY PRICE SYSTEM

Article 73U.K.Definitions

For the purposes of this Chapter:

(a)

‘lot’ means the goods presented under a declaration of release for free circulation, covering only goods of the same origin falling within one single CN code; and

(b)

‘importer’ means the declarant within the meaning of Article 5(15) of Regulation (EU) No 952/2013 of the European Parliament and of the Council(11).

Article 74U.K.Notification of prices and quantities of products imported

1.For each product and for the periods set out in Part A of Annex VII, for each market day and origin, Member States shall notify the Commission, by 12.00 noon (Brussels time) the following working day, of:

(a)the average representative prices of the products imported from third countries sold on Member States' import markets; and

(b)the total quantities relating to the prices referred to in point (a).

For the purposes of point (a) of the first subparagraph, Member States shall notify the Commission of the import markets they consider representative and which shall include London, Milan, Perpignan and Rungis.

Where the total quantities referred to in point (b) of the first subparagraph are less than 10 tonnes, the corresponding prices shall not be notified to the Commission.

2.The prices referred to in point (a) of the first subparagraph of paragraph 1 shall be recorded:

(a)for each of the products listed in Part A of Annex VII;

(b)for all of the available varieties and sizes; and

(c)at the importer/wholesaler stage or the wholesaler/retailer stage where no prices at the importer/wholesaler stage are available.

They shall be reduced by the following amounts:

(a)a marketing margin of 15 % for the marketing centres of London, Milan and Rungis and of 8 % for other marketing centres; and

(b)costs of transport and insurance within the customs territory of the Union.

For the costs of transport and insurance to be deducted pursuant to the second subparagraph, Member States may fix standard amounts for deduction. Such standard amounts and the methods for calculating them shall be notified to the Commission immediately.

3.The prices recorded in accordance with paragraph 2 shall, where they are established at the wholesale/retail stage, be reduced by:

(a)an amount equal to 9 % to take in respect of the wholesaler's trade margin, and

(b)an amount equal to EUR 0,7245 per 100 kilograms in respect of the costs of handling and market taxes and charges.

4.For products listed in Part A of Annex VII covered by a specific marketing standard, the following prices shall be deemed to be representative:

(a)prices of Class I products where the quantities in that class account for at least 50 % of the total quantities marketed;

(b)prices of Class I and Class II products where the quantities in those classes account for at least 50 % of the total quantities marketed;

(c)prices of Class II products, where Class I products are not available, unless it is decided to apply an adjustment coefficient to them if, as a result of their quality characteristics, those products are not normally marketed in Class I.

The adjustment coefficient referred to in point (c) of the first subparagraph shall be applied after deduction of the amounts referred to in paragraph 2.

For products listed in Part A of Annex VII that are not covered by a specific marketing standard, prices of products complying with the general marketing standard shall be deemed to be representative.

Article 75U.K.Entry price basis

1.For the purposes of Article 181(1) of Regulation (EU) No 1308/2013, the products of the fruit and vegetables and processed fruit and vegetables sectors referred to in that Article shall be those listed in Annex VII to this Regulation.

2.When the customs value of the products listed in Part A of Annex VII is determined in accordance with the transaction value referred to in Article 70 of Regulation (EU) No 952/2013 and that customs value is higher by more than 8 % than the flat-rate calculated by the Commission as a standard import value at the time the declaration of release of the products for free circulation is made, the importer must provide a guarantee as referred to in Article 148 of Commission Implementing Regulation (EU) 2015/2447(12). For this purpose, the amount of import duty for which the products listed in Part A of Annex VII to this Regulation may be liable, shall be the amount of the duty due if the product in question had been classified on the basis of the standard import value concerned.

The first subparagraph shall not apply when the standard import value is higher than the entry prices listed in Annex 2 of Section I of Part Three of Annex I to Council Regulation (EEC) No 2658/87(13), or where the declarant requests the immediate entry in the accounts of the amount of duties to which the goods may ultimately be liable instead of providing a guarantee.

3.When the customs value of the products listed in Part A of Annex VII is calculated in accordance with Article 74(2)(c) of Regulation (EU) No 952/2013, the duty shall be deducted as provided for in Article 38(1) of Implementing Regulation (EU) 2017/892. In that case, the importer shall provide a guarantee equal to the amount of duty which he would have paid if the classification of the products had been made on the basis of the standard import value applicable.

4.The customs value of the goods imported on consignment shall be directly determined in accordance with Article 74(2)(c) of Regulation (EU) No 952/2013, and for this purpose, the standard import value calculated in accordance with Article 38 of Implementing Regulation (EU) 2017/892 shall apply during the periods in force.

5.The importer shall have one month from the sale of the products in question, subject to a limit of four months from the date of acceptance of the declaration of release for free circulation, to prove that the lot was disposed of under the conditions confirming the correctness of the prices referred to in Article 70 of Regulation (EU) No 952/2013, or to determine the customs value referred to in Article 74(2)(c) of that Regulation.

Failure to meet one of these deadlines shall entail the loss of the guarantee provided, without prejudice to the application of paragraph 6.

The guarantee provided shall be released to the extent that proof of the conditions of disposal is provided to the satisfaction of the customs authorities. Otherwise the guarantee shall be forfeit by way of payment of the import duties.

In order to prove that the lot was disposed of under the conditions set out in the first subparagraph, the importer shall make available, in addition to the invoice, all documents needed for the carrying out of the relevant customs controls in relation to the sale and disposal of each product of the lot in question, including documents relating to the transport, insurance, handling and storage of the lot.

Where the marketing standards referred to in Article 3 of Implementing Regulation (EU) No 543/2011 require the product variety or the type of the fruit and vegetables to be indicated on the packaging, the product variety or the type of the fruit and vegetables that form part of the lot shall be indicated on documents related to transport, invoices and the delivery order.

6.The time limit of four months referred to in the first subparagraph of paragraph 5 may be extended by the competent authorities of the Member State by a maximum of three months at the request of the importer, which must be duly justified.

If on verification, the competent authorities of the Member States establish that the requirements of this Article have not been met, they shall recover the duty due in accordance with Article 105 of Regulation (EU) No 952/2013. The amount of the duty to be recovered or remaining to be recovered shall include interest from the date the goods were released for free circulation up to the date of recovery. The interest rate applied shall be that in force for recovery operations under national law.

TITLE IVU.K. GENERAL, TRANSITIONAL AND FINAL PROVISIONS

F203Article 76U.K.National penalties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F204Article 77U.K.Notifications

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 78U.K.Notification of force majeure

For the purposes of Articles 59(7) and 64(2)(a) of Regulation (EU) No 1306/2013, any case of force majeure shall be notified to the [F205appropriate authority], with relevant evidence to the satisfaction of that authority, within 30 working days of the date on which the case of force majeure took place.

Article 79U.K.Amendment of Implementing Regulation (EU) No 543/2011

Implementing Regulation (EU) No 543/2011 is amended as follows:

(1)

Article 2 is deleted;

(2)

Articles 19 to 35 are deleted;

(3)

Articles 50 to 148 are deleted;

(4)

Annexes VI to XVIII are deleted.

F206Article 80U.K.Transitional provisions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 81U.K.Entry into force and application

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

F207...

ANNEX IU.K.Processed products referred to in Article 22(2)

CategoryCN codeDescription
Fruit juicesex 2009

Fruit juices, excluding grape juice and grape must of subheadings 2009 61 and 2009 69, banana juice of subheading ex 2009 80 and concentrated juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter.

Concentrated fruit juices are fruit juices coming under heading ex 2009 obtained by the physical removal of at least 50 % of the water content, in packings of a net content of not less than 200 kg.

Tomato concentrate

ex 2002 90 31

ex 2002 90 91

Tomato concentrate with a dry weight content of not less than 28 % in immediate packings of a net content of not less than 200 kg.
Frozen fruit and vegetablesex 0710Vegetables (uncooked or cooked by steaming or boiling in water) frozen, excluding sweetcorn of subheading 0710 40 00, olives of subheading 0710 80 10 and fruits of the genus Capsicum or of the genus Pimenta of subheading 0710 80 59.
ex 0811Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, not containing added sugar or other sweetening matter, excluding frozen bananas falling within subheading ex 0811 90 95.
ex 2004Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than the products of heading 2006, excluding sweetcorn (Zea mays var. saccharata) of subheading ex 2004 90 10, olives of subheading ex 2004 90 30 and potatoes prepared or preserved in the form of flour, meal or flakes of subheading 2004 10 91.
Canned fruit and vegetablesex 2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid, excluding:

  • fruit of the genus Capsicum other than sweet peppers or pimentos of subheading 2001 90 20

  • sweetcorn (Zea mays var. saccharata) of subheading 2001 90 30

  • yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight of starch of subheading 2001 90 40

  • palm hearts of subheading 2001 90 60

  • olives of subheading 2001 90 65

  • vine leaves, hop shoots and other similar edible parts of plants falling within subheading ex 2001 90 97.

ex 2002Tomatoes prepared or preserved otherwise than by vinegar or acetic acid excluding tomato concentrate of subheadings ex 2002 90 31 and ex 2002 90 91 described above.
ex 2005Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006 excluding olives of subheading 2005 70, sweetcorn (Zea mays var. saccharata) of subheading 2005 80 00 and fruit of the genus Capsicum, other than sweet peppers or pimentos of subheading 2005 99 10 and potatoes prepared or preserved in the form of flour, meal or flakes of subheading 2005 20 10.
ex 2008

Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding:

  • peanut butter of subheading 2008 11 10

  • other nuts, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included, of subheading ex 2008 19

  • palm hearts of subheading 2008 91 00

  • maize of subheading 2008 99 85

  • yams, sweet potatoes and similar edible parts of plants, containing 5 % or more by weight of starch of subheading 2008 99 91

  • vine leaves, hop shoots and other similar edible parts of plants falling within subheading ex 2008 99 99

  • mixtures of banana otherwise prepared or preserved of subheadings ex 2008 92 59, ex 2008 92 78, ex 2008 92 93 and ex 2008 92 98

  • bananas otherwise prepared or preserved of subheadings ex 2008 99 49, ex 2008 99 67 and ex 2008 99 99.

Canned mushrooms2003 10Mushrooms of the genus Agaricus prepared or preserved otherwise than by vinegar or acetic acid.
Fruits provisionally preserved in brineex 0812Fruit and nuts, provisionally preserved in brine, but unsuitable in that state for immediate consumption, excluding bananas provisionally preserved falling within subheading ex 0812 90 98.
Dried fruits

ex 0813

0804 20 90

0806 20

ex 2008 19

Fruit, dried, other than that of headings 0801 to 0806.

Dried figs.

Dried grapes.

Other nuts, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included, excluding tropical nuts and their mixtures.

Other processed fruit and vegetableProcessed fruit and vegetables listed in Part X of Annex I of Regulation (EU) No 1308/2013, different from the products listed in the categories above.
Processed aromatic herbs

ex 0910

ex 1211

Dried thyme.

Basil, melissa, mint, Origanum vulgare (oregano/wild marjoram), rosemary, sage, dried, whether or not cut, crushed or powdered.

Paprika powderex 0904Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta, excluding sweet peppers falling within subheading 0904 20 10.

ANNEX IIU.K.List of actions and expenditure not eligible under operational programmes referred to in Article 31(1)

1.

General production costs and, in particular, costs for (even certified) mycelium, seeds and non-perennial plants; plant protection products (including integrated control materials); fertilisers and other inputs; costs of collection or transport (internal or external); storage costs; packaging costs (including use and management of packaging), even as part of new processes; operating costs (in particular electricity, fuel and maintenance).

2.

Administrative and personnel costs with the exception of expenditure relating to the implementation of operational funds and operational programmes.

3.

Income or price supplements outside crisis prevention and management.

4.

Insurance costs outside the harvest insurance measures referred to in Section 7 of Chapter III of Title II.

5.

Reimbursement of loans taken out for an operation carried out before the beginning of the operational programme other than those referred to in Article 38.

6.

Purchase of land not built on costing more than 10 % of all the eligible expenditure on the operation concerned.

7.

Costs of meetings and training programmes not related to the operational programme.

8.

Operations or costs relating to the quantities produced by the members of the producer organisation outside the [F208United Kingdom].

9.

Operations that could distort competition in the other economic activities of the producer organisation.

10.

Investments in means of transport to be used for marketing or distribution by the producer organisation.

11.

Operating costs of goods hired.

12.

Expenditure linked to leasing contracts (taxes, interest, insurance costs, etc.) and operating costs.

13.

Subcontracting or outsourcing contracts relating to the operations or expenditure mentioned as not eligible in this list.

14.

Value added tax (VAT) except where it is non-recoverable under [F209applicable] VAT legislation.

15.

Any F210...taxes or fiscal levies.

16.

Interest on debt except where the contribution is made in a form other than a non-repayable direct assistance.

17.

Investments in shares or capital of companies if the investment represents a financial investment.

18.

Costs incurred by parties other than the producer organisation or its members and associations of producer organisations or their producer members or subsidiaries in the situation referred to in Article 22(8).

19.

Investments or similar types of actions not on the holdings and/or premises of the producer organisation, association of producer organisations, or their producer members or a subsidiary in the situation referred to in Article 22(8).

20.

[F23Measures outsourced by the producer organisation or their associations outside the [F211 United Kingdom], except where a promotion is implemented outside the [F211 United Kingdom] according to Article 14 of Implementing Regulation (EU) 2017/892.]

21.

[F212Export credit linked to actions and activities aimed at diversification and consolidation on the fruit and vegetable markets, whether for prevention or during a crisis period.]

ANNEX IIIU.K.Non-exhaustive list of actions and expenditure eligible under operational programmes referred to in Article 31(1)

1.

Specific costs for:

  • quality improvement measures;

  • biological plant protection materials (such as pheromones and predators) whether used in organic, integrated or conventional production;

  • environmental actions referred to in Article 33(5) of Regulation (EU) No 1308/2013;

  • organic, integrated or experimental production, including specific costs for organic seeds and seedlings;

  • monitoring of compliance with the standards referred to in Title II of Implementing Regulation (EU) No 543/2011, with plant-health rules and with maximum level of residues.

Specific costs shall mean the additional costs, calculated as the difference between the conventional costs and the costs actually incurred, and income foregone resulting from an action excluding additional income and costs savings.

F213...

2.

Administrative and personnel costs relating to the implementation of operational funds and operational programmes which shall include:

(a)

overheads specifically related to the operational fund or operational programme, including management and personnel costs, reports and evaluation studies, and the costs of keeping accounts and the management of accounts, by means of the payment of a standard flat rate up to a maximum of 2 % of the operational fund as approved in accordance with Article 33 and up to a maximum of EUR 180 000, comprising both the [F214financial assistance referred to in Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013] and the producer organisation contribution.

In the case of operational programmes submitted by recognised associations of producer organisations, overheads shall be calculated as the addition of the overheads of each producer organisation as provided for in the first paragraph but limited to a maximum of EUR 1 250 000 per association of producer organisations.

[F215Nothing in this Regulation prevents the appropriate authority from restricting] funding to the real costs, in which case [F216it] should define the eligible costs;

(b)

personnel costs including legally compulsory charges linked to wages and salaries, if these are directly borne by the producer organisation, association of producer organisation or subsidiaries in the situation referred to in Article 22(8) subject to [F217approval by the appropriate authority], by cooperatives which are a member of the producer organisation, resulting from measures:

(i)

to improve or maintain a high level of quality or environmental protection;

(ii)

to improve the level of marketing.

The implementation of these measures shall essentially involve the use of qualified personnel. If, in such cases, the producer organisation uses its own employees or producer members, the time worked shall be documented.

F218...

F218...

(c)

legal and administrative costs of mergers of producer organisations F219...; feasibility studies and proposals commissioned by producer organisations in this respect.

3.

Costs of meetings and training programmes where they are related to the operational programme, including daily allowances, transport and accommodation costs F220...

4.

Promotion of:

  • brands/trademarks of producer organisation, associations of producer organisations and subsidiaries in the situation referred to in Article 22(8),

  • generic promotion and promotion of quality labels,

  • costs for promotional printing on packaging or on labels under any of the first and second indents on the condition that it is provided for in the operational programme.

Geographical names are allowed only if:

(a)

they are a protected designation of origin or a protected geographical indication, covered by Regulation (EU) No 1151/2012 of the European Parliament and of the Council(14); or

(b)

in all cases where point (a) does not apply, these geographical names are secondary to the principal message.

F221...

5.

F222...

6.

Purchase of land not built on where purchase is necessary to carry out an investment included in the operational programme provided it costs less than 10 % of all the eligible expenditure on the operation concerned; in exceptional and duly justified cases, a higher percentage can be fixed for operations concerning environmental conservation.

7.

Purchase of equipment, including second hand equipment provided it has not been purchased with [F223support from European Union or public funds] in a period of seven years preceding the purchase.

8.

Investments in means of transport where the producer organisation duly justifies to the [F224appropriate authority] that the means of transport shall only be used for transport internal to the producer organisation; and investments in additional on-the-truck facilities for cold-storage or controlled atmosphere transport.

9.

Leasing, including of second hand equipment which has not received [F225support from European Union or public funds] in a period of seven years preceding the leasing, within the limits of the net market value of the item.

10.

Hire of equipment or other items where economically justified as an alternative to purchase, at the approval of the [F226appropriate authority] .

11.

Investments in shares or capital of companies contributing directly to the achievement of the goals of the operational programme.

12.

F227...

13.

Costs related to the negotiation and to implementation and management of third country phytosanitary protocols in the [F228United Kingdom] if borne by the producer organisation or association of producer organisations as a part of crisis prevention and management measures referred to in Article 33(3) F229... (c) of Regulation (EU) No 1308/2013, except for reimbursement of third country expenses.

14.

Costs related to promotion and communication measures referred to in Article 14 of Implementing Regulation (EU) 2017/892. Eligible costs under these measures shall be costs related to the organisation and participation in promotion and information events, including public relations work, promotion and information campaigns and may take the form of participation in events, fairs and exhibitions of national F230...and international importance. Costs related to technical advisory services are eligible if they are necessary for the organisation or participation of these events or for promotion and information campaigns.

Textual Amendments

F219Words in Annex 3 point 2(c) omitted (31.12.2020) by virtue of The Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1446), regs. 1(3), 5(29)(a), 7(a)

F228Words in Annex 3 point 13 substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1446), regs. 1(3), 5(29)(b)(i), 7(a)

F231ANNEX IV...U.K.Maximum amounts of support for market withdrawals as referred to in Article 45(1)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F23ANNEX VU.K. Information to be included in the annual report F232... as referred to in Article 54(b)

All information shall relate to the calendar year being reported on. It shall cover information on checks executed and administrative penalties applied in respect of that. As regards the information that varies during the year the annual report should reflect the state of play on 31 December of the year reported on.

PART A — INFORMATION FOR MARKET MANAGEMENTU.K.

1.F233... .U.K.

2. Information related to producer organisations [F234and associations] of producer organisations F235...F236...: U.K.

(a)

total number of recognised/suspended producer organisations [F234and associations] of producer organisations F235...F236... In addition:

(i)

for associations of producer organisations: number of producer organisations members;

(ii)

F237...

(b)

total number of producer organisations [F234and associations] of producer organisations F235...F236...for which recognition was withdrawn. F238...

(c)

total number of mergers between organisations (broken down between total, number of new organisation(s) and new ID number(s));

(d)

number of members (total and broken down between legal entities, natural persons and fruit and vegetables producers);

(e)

total number of organisations F239... with an operational programme F240... (broken down between recognised, suspended and subject to a merger);

(f)

part of the production of products intended for the fresh market (with the indication of their value and volume);

(g)

part of the production of products intended for processing (with the indication of their value and volume);

(h)

area under fruit and vegetable production.

3. Information related to expenditures: U.K.

(a)

expenditures related to producer organisations [F234and associations] of producer organisations F241... (broken down between operational fund, final operational fund and F242... financial assistance [F243referred to in Articles 32(1)(b), 34 and 35 of Regulation (EU) No 1308/2013]);

(b)

total actual expenditures of operational programmes for producer organisations [F234and associations] of producer organisations F241... (broken down between actions and measures linked to their objectives);

(c)

F244...

(d)

F245...

4. Information relating to monitoring of operational programmes F246...: U.K.

(a)

indicators as regards producer organisations [F234and associations] of producer organisations F247... (broken down between actions and measures linked to their objectives);

(b)

F248...

PART B — INFORMATION FOR THE CLEARANCE OF ACCOUNTSU.K.

Information on checks and administrative penalties:

(a)

checks carried out by the [F249appropriate authority]: details of bodies visited and dates of visiting;

(b)

checking rates;

(c)

results of checks;

(d)

administrative penalties applied.]

ANNEX VIU.K.Price notification referred to in Article 55(1)

ProductType/varietyPresentation/sizeRepresentative Markets
TomatoesRoundSize 57-100 mm, in bulk in packages of around 5-6 kg

Belgium

Greece

Spain

France

Italy

Hungary

The Netherlands

Poland

Portugal

Romania

Trussesin bulk in packages of around 3-6 kg
CherryTrays of around 250-500 g
ApricotsAll types and varieties

Size 45-50 mm

Trays or packages of around 6-10 kg

Bulgaria

Greece

Spain

France

Italy

Hungary

NectarinesWhite flesh

Size A/B

Trays or packages of around 6-10 kg

Greece

Spain

France

Italy

Yellow flesh

Size A/B

Trays or packages of around 6-10 kg

PeachesWhite flesh

Size A/B

Trays or packages of around 6-10 kg

Greece

Spain

France

Italy

Hungary

Portugal

Yellow flesh

Size A/B

Trays or packages of around 6-10 kg

Table grapesAll types and varieties with seedsTrays or packages of 1 kg

Greece

Spain

France

Italy

Hungary

Portugal

Trays or packages of 1 kg
All type and varieties seedless
PearsBlanquillaSize 55/60, packages of around 5-10 kg

Belgium

Greece

Spain

France

Italy

Hungary

The Netherlands

Poland

Portugal

ConferenceSize 60/65+, packages of around 5-10 kg
WilliamsSize 65+/75+, packages of around 5-10 kg
Rocha
Abbé FételSize 70/75, packages of around 5-10 kg
Kaiser
Doyenné du ComiceSize 75/90, packages of around 5-10 kg
ApplesGolden deliciousSize 70/80, packages of around 5-20 kg

Belgium

Czech Republic

Germany

Greece

Spain

France

Austria

Braeburn
Jonagold (or Jonagored)
Idared
Fuji
Shampion
Granny smith
Red delicious and other red varieties
Boskoop
GalaSize 70/80, packages of around 5-20 kg

France

Italy

Hungary

The Netherlands

Poland

Portugal

Romania

Elstar
Cox orange
SatsumasAll varietiesSizes 1-X -3, packages of around 10-20 kgSpain
LemonsAll varietiesSizes 3-4, packages of around 10-20 kg

Greece

Spain

Italy

ClementinesAll varietiesSizes 1-X -3, packages of around 10-20 kg

Greece

Spain

Italy

MandarinsAll varietiesSizes 1 – 2, packages of around 10-20 kg

Greece

Spain

Italy

Portugal

OrangesSalustianaSize 3-6, kg packages of around 10-20 kg

Greece

Spain

Italy

Portugal

Navelinas
Navelate
Lanelate
Valencia late
Tarocco
Navel
CourgettesAll varietiesSize 14-21, loose in the package

Greece

Spain

France

Italy

The Netherlands

CherriesAll sweet varietiesSizes 22 and over, loose in the package

Bulgaria

Czech Republic

Germany

Greece

Spain

France

Italy

Hungary

Poland

Portugal

Romania

CucumbersSmooth varietiesSizes 350-500 g, arranged in the package

Bulgaria

Greece

Spain

France

Italy

Hungary

The Netherlands

Poland

GarlicWhiteSize 50-60 mm, packages of around 2-5 kg

Greece

Spain

France

Italy

Hungary

VioletSize 45-55 mm, packages of around 2-5 kg
SpringSize 50-60 mm, packages of around 2-5 kg
PlumsAll types and varietiesSize 35 mm and over

Bulgaria

Germany

Spain

France

Italy

Hungary

Poland

Romania

Size 35 mm and over
Size 40 mm and over
Size 40 mm and over
Sweet peppersAll types and varietiesSize 70 mm and over

Bulgaria

Greece

Spain

Italy

Hungary

The Netherlands

Portugal

Size 50 mm and over
Size 40 mm and over
LettucesAll types and varietiesSize 400 g and over, packages of 8 – 12

Germany

Greece

Spain

France

Italy

The Netherlands

Portugal

United Kingdom

Size 400 g and over, packages of 8 – 12
StrawberriesAll varietiesPackages of 250/500 g

Belgium

Germany

Spain

France

Italy

The Netherlands

Poland

Portugal

United Kingdom

Cultivated mushroomsClosedMedium sized (30-65 mm)

Ireland

Spain

France

Hungary

The Netherlands

Poland

United Kingdom

KiwisHaywardSizes 105-125 g, packages of around 3-10 kg

Greece

France

Italy

Portugal

CauliflowersAll types and varietiesSize 16-20 mm

Germany

Spain

France

Italy

Poland

AsparagusAll types and varietiesSize 10-16/16+

Germany

Spain

France

The Netherlands

Poland

Eggplants (aubergines)All types and varietiesSize 40+/70+

Spain

Italy

Romania

CarrotsAll types and varietiesusual standards in the representative market

Germany

Spain

France

Italy

The Netherlands

Poland

United Kingdom

OnionsAll types and varietiesSize 40-80

Germany

Spain

France

Italy

The Netherlands

Poland

United Kingdom

BeansAll types and varietiesusual standards in the representative market

Belgium

Greece

Spain

France

Italy

Poland

LeeksAll types and varietiesusual standards in the representative market

Belgium

Germany

Spain

France

The Netherlands

Poland

Water melonsAll types and varietiesusual standards in the representative market

Greece

Spain

Italy

Hungary

Romania

MelonsAll types and varietiesusual standards in the representative market

Greece

Spain

France

Italy

CabbagesAll types and varietiesusual standards in the representative market

Germany

Greece

Spain

France

Poland

Romania

United Kingdom

ANNEX VIIU.K.List of products for the purposes of the entry price system set out in Title III

Without prejudice to the rules for the interpretation of the Combined Nomenclature, the description of the products is deemed to be indicative only. For the purposes of this Annex, the scope of the arrangements provided for in the Title III is determined by the scope of the CN codes as they exist at the time of adoption of this Regulation. Where ‘ex’ appears before the CN code, the scope of the additional duties is determined both by the scope of the CN code and that of the description of the products, and the corresponding period of application

PART AU.K.

CN codeDescriptionPeriod of application
ex 0702 00 00TomatoesFrom 1 January to 31 December
ex 0707 00 05Cucumbers (1)From 1 January to 31 December
ex 0709 90 80ArtichokesFrom 1 November to 30 June
0709 90 70CourgettesFrom 1 January to 31 December
ex 0805 10 20Sweet oranges, freshFrom 1 December to 31 May
ex 0805 20 10ClementinesFrom 1 November to end of February
ex 0805 20 30ex 0805 20 50ex 0805 20 70ex 0805 20 90Mandarins (including tangerines and satsumas); wilking and similar citrus hybridsFrom 1 November to end of February
ex 0805 50 10Lemons (Citrus limon, Citrus limonum)From 1 June to 31 May
ex 0806 10 10Table grapesFrom 21 July to 20 November
ex 0808 10 80ApplesFrom 1 July to 30 June
ex 0808 20 50PearsFrom 1 July to 30 April
ex 0809 10 00ApricotsFrom 1 June to 31 July
ex 0809 20 95Cherries, other than sour cherriesFrom 21 May to 10 August
ex 0809 30 10ex 0809 30 90Peaches, including nectarinesFrom 11 June to 30 September
ex 0809 40 05PlumsFrom 11 June to 30 September

PART BU.K.

CN codeDescriptionPeriod of application
ex 0707 00 05Cucumbers intended for processingFrom 1 May to 31 October
ex 0809 20 05Sour cherries (Prunus cerasus)From 21 May to 10 August

[F250Annex 8U.K.Restrictions on shareholding and voting rights in producer organisations and associations of producer organisations

1.

In this Annex:

(a)

‘voting right’ means a right to vote in relation to a relevant decision;

(b)

‘relevant decision’ means any decision affecting the producer organisation or association of producer organisations (as the case may be) and its members (in their capacity as such), including the election of the producer organisation's or association of producer organisations' (as the case may be) directors or board members.

2.

A producer organisation must provide in its members' agreements and statutes for each producer member to have one voting right.

3.

By way of derogation from point 1, a producer organisation that has more than ten members may, with the agreement of the Secretary of State, provide for individual producer members to exercise up to 10% each of the voting rights. The remaining voting rights (other than voting rights held by non-producer members, insofar as permitted by the Secretary of State and the producer organisation) must be shared between the remaining producer members. A producer organisation that implements this option must adopt measures to prevent abuses of power by its members.

4.

A producer organisation may provide in its members' agreements and statutes for non-producer members to have voting rights, provided that:

(a)

a non-producer member must not be permitted to hold more than one voting right;

(b)

[F251the total share of the voting rights exercisable by non-producer members must be no more than 20%.]

5.

A natural or legal person must not hold more than:

(a)

20% of the total number of shares or amount of capital in a producer organisation directly; or

(b)

49% of the total number of shares or amount of capital in a producer organisation in total, directly or indirectly.

6.

For the purpose of point 5, a person holds a share or capital “indirectly” if the person has a majority stake in another person and that other person:

(a)

holds the share or capital in question; or

(b)

is part of a chain of persons:

(i)

each of whom (other than the last) has a majority stake in the person immediately below it in the chain; and

(ii)

the last of whom holds the share or capital.

7.

An association of producer organisations must provide in its members' agreements and statutes for each member that is a producer organisation to have one voting right.

8.

An association of producer organisations may provide in its members' agreements and statutes for producer members that are not producer organisations to have voting rights, provided that:

(a)

such members must not be permitted to hold more than one voting right each;

(b)

the total share of the voting rights exercisable by such members must be less than a majority of the total number of voting rights exercisable in respect of each relevant decision.]

(3)

Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (OJ L 299, 16.11.2007, p. 1).

(4)

Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sectors (OJ L 157, 15.6.2011, p. 1).

(5)

Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p. 487).

(6)

Commission Implementing Regulation (EU) 2017/892 of 13 March 2017 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the fruit and vegetables and processed fruit and vegetables sectors (see p. 57 of this Official Journal).

(7)

[F23Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 ( OJ L 189, 20.7.2007, p. 1 ).]

(8)

[F23Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union ( OJ L 193, 1.7.2014, p. 1 ).]

(9)

Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (OJ L 317, 4.11.2014, p. 56).

(10)

Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320).

(11)

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

(12)

Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).

(13)

Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

(14)

Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1).