Council Regulation (EU) No 1370/2013

of 16 December 2013

determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(3) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)
The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future’ sets out potential challenges, objectives and orientations for the Common Agricultural Policy (‘the CAP’) after 2013. In the light of the debate on that Communication, the CAP should be reformed with effect from 1 January 2014. That reform should cover all the main instruments of the CAP, including Council Regulation (EC) No 1234/20071. In the context of the reformed regulatory framework, measures on fixing prices, levies, aid and quantitative limitations should be taken.
(2)
For the sake of clarity and transparency, the provisions on public intervention should be made subject to a common structure, whilst maintaining the policy pursued in each sector. For that purpose, it is appropriate to distinguish between reference thresholds laid down in Regulation (EU) No 1308/2013 of the European Parliament and of the Council2 on the one hand and intervention prices on the other hand, and to define the latter. Only intervention prices for public intervention correspond to the applied administered prices referred to in the first sentence of paragraph 8 of Annex 3 to the WTO Agreement on Agriculture (i.e. market price support). In this context, it should be understood that market intervention can take the form of public intervention as well as other forms of intervention that do not use ex ante established price indications.
(3)

The level of the public intervention price at which buying-in is carried out at a fixed price or under a tendering procedure should be provided for, including the cases for which an adjustment of the public intervention prices may be necessary. Equally, measures on quantitative limitations for carrying out the buying-in at a fixed price need to be taken. In both cases, the prices and quantitative limitation should reflect the practice and experience acquired under previous common market organisations.

(4)

Regulation (EU) No 1308/2013 provides for the granting of aid for private storage as a market intervention measure. Measures on the fixing of the aid amounts need to be provided for. In view of the practice and experience acquired under previous common market organisations, it is appropriate to provide for the fixing of the aid amounts both in advance and by a tendering procedure, and for certain elements to be taken into account when the aid is fixed in advance.

(5)

In order to ensure a sound budgetary management of the school fruit and vegetables scheme, a fixed ceiling of Union aid and maximum co-financing rates should be provided for. In order to allow all Member States to implement a cost-effective school fruit and vegetables scheme, a specified minimum amount of Union aid should be set.

(6)

To ensure the proper functioning of the aid for the supply of milk and milk products to children in educational establishments and to ensure flexibility in the administration of such a scheme, a maximum quantity of milk eligible for aid, as well as the amount of Union aid, should be fixed.

(7)

Pursuant to Regulation (EU) No 1308/2013, several measures in the sugar sector will expire at the end of the 2016/2017 marketing year for sugar when the system of quotas is abolished.

(8)

Measures on the fixing of the production charge to be levied on the sugar quota, isoglucose quota and inulin syrup quota provided for in the sugar sector should be provided for in this Regulation in line with the prolongation of the quota system until 30 September 2017.

(9)

To ensure an efficient production refund system for certain products of the sugar sector, appropriate conditions should be laid down to fix the amount of the production refund.

(10)

A minimum price should be fixed for quota beet corresponding to a standard quality which should be defined, in order to ensure a fair standard of living for the Union growers of sugar beet and sugar cane.

(11)

To avoid a threat to the sugar market situation due to the accumulation of quantities of sugar, isoglucose and inulin syrup for which the applicable conditions are not met, provision should be made for a surplus levy.

(12)

A mechanism to ensure a sufficient and balanced supply of sugar to the Union markets has been set up in Regulation (EU) No 1308/2013, allowing the Commission to take the appropriate measures to achieve this. As the market management instruments putting this mechanism into practice are the temporary adjustments of the import duty payable on imported raw sugar as well as the temporary application of a levy on out of quota production released onto the internal market for the purposes of adjusting supply to demand, a specific provision enabling the Commission to apply such a levy and to fix its amount should be included in this Regulation.

(13)

To ensure the proper functioning of the export refund system, appropriate measures should be provided for to fix the amount of the refunds. In addition, in the cereals and rice sectors, appropriate measures should be set to fix the corrective amounts and to provide for the adjustment of the refund amount in line with any changes in the level of the intervention price.

(14)
To ensure an efficient day-to-day management of the CAP, the measures on fixing aid, refunds and prices set out in this Regulation should be limited to the broad conditions allowing concrete amounts to be laid down in the specific circumstances of each case. In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to lay down those amounts. Those implementing powers should be exercised with the assistance of the Committee for the Common Organisation of the Agricultural Markets and in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council3. Furthermore, to ensure a swift response to fast changing market situations, the Commission should be empowered to fix new refund levels and, in the cereals and rice sectors, to adapt the corrective amount without applying Regulation (EU) No 182/2011,

HAS ADOPTED THIS REGULATION:

Article 1Scope F1and definitions

X1This Regulation provides for measures on fixing prices, levies, aid and quantitative limitations related to the common organisation of agricultural markets established by Regulation (EU) No 1308/2013.

F2In this Regulation:

(a)

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

(b)

‘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;

F3(c)

‘appropriate authority’ means:

(i)

the relevant authority, or

F4(ii)

the Secretary of State:

(aa)

in relation to Wales, other than in relation to Article 5, if consent is given by the Welsh Ministers;

(bb)

in relation to Scotland, if consent is given by the Scottish Ministers;

(cc)

in relation to Northern Ireland, if consent is given by the Department of Agriculture, Environment and Rural Affairs.

F5Article 1aReference thresholds

1.

The following reference thresholds are fixed:

(a)

for the cereals sector: EUR 101,31/tonne, related to the wholesale stage for goods delivered to the warehouse, before unloading;

(b)

for paddy rice: EUR 150/tonne for the standard quality as defined in point A of Annex III to Regulation (EU) No 1308/2013, related to the wholesale stage for goods delivered to the warehouse, before unloading;

(c)

for sugar of standard quality as defined in point B of Annex III to Regulation (EU) No 1308/2013, related to unpacked sugar, ex-factory:

  1. (i)

    for white sugar: EUR 404,4/tonne;

  2. (ii)

    for raw sugar: EUR 335,2/tonne;

(d)

for the beef and veal sector: EUR 2 224/tonne for carcasses of male bovine animals of conformation/fat cover class R3 as laid down in the F6... scale for the classification of carcasses of bovine animals aged eight months or more referred to in point A of Annex IV to Regulation (EU) No 1308/2013;

(e)

for the milk and milk products sector:

  1. (i)

    EUR 246,39 per 100 kg for butter;

  2. (ii)

    EUR 169,80 per 100 kg for skimmed milk powder;

(f)

for pigmeat: EUR 1 509,39/tonne for pig carcasses of a standard quality defined in terms of weight and lean meat content as laid down in the F7... scale for the classification of pig carcasses referred to in point B of Annex IV to Regulation (EU) No 1308/2013, as follows:

  1. (i)

    carcasses weighing from 60 to less than 120 kg: class E;

  2. (ii)

    carcasses weighing from 120 to 180 kg: class R;

(g)

for the olive oil sector:

  1. (i)

    EUR 1 779/tonne for extra virgin olive oil;

  2. (ii)

    EUR 1 710/tonne for virgin olive oil;

  3. (iii)

    EUR 1 524/tonne for lampante olive oil with two degrees of free acidity; this amount shall be reduced by EUR 36,70/tonne for each additional degree of acidity.

2.

The reference thresholds provided for in paragraph 1 shall be kept under review by the F8appropriate authority, taking account of objective criteria, in particular developments in production, costs of production (particularly inputs) and market trends. F9When necessary, in the light of developments in production and markets, the appropriate authority may make regulations amending the reference thresholds.

3.

References to reference thresholds in Regulation (EU) No 1308/2013 shall be construed as references to the thresholds fixed in paragraph 1 of this Article.

F10(4.

This Article does not apply in relation to public intervention schemes in England, otherwise than in connection with exceptional market conditions which are the subject of a declaration under section 20 of the Agriculture Act 2020.

F11(5.

This Article ceases to apply in relation to public intervention schemes in Scotland, otherwise than in connection with public intervention measures which the appropriate authority takes under Article 219(1) of Regulation (EU) No 1308/2013, for a period of five years beginning on 1 July 2023.

F126.

 This Article does not apply in relation to public intervention schemes in Wales.

F13Article 2Public intervention prices

1.

The level of the public intervention price:

(a)

for common wheat, durum wheat, barley, maize, paddy rice and skimmed milk powder shall be equal to the respective reference threshold set out in Article 1a in the case of buying-in at a fixed price and shall not exceed the respective reference threshold in the case of buying-in by tendering;

(b)

for butter shall be equal to 90 % of the reference threshold set out in Article 1a in the case of buying-in at a fixed price and shall not exceed 90 % of that reference threshold in the case of buying-in by tendering;

(c)

for beef and veal shall not exceed 85 % of the reference threshold set out in Article 1a.

2.

The public intervention prices for common wheat, durum wheat, barley, maize and paddy rice referred to in paragraph 1 shall be adjusted by price increases or reductions to those prices based on the main quality criteria for the products.

3.

The F14appropriate authority may make regulations determining the increases or reductions to the public intervention prices of the products referred to in paragraph 2 of this Article under the conditions laid down therein. F15...

F16(4.

This Article does not apply in relation to public intervention schemes in England, otherwise than in connection with exceptional market conditions which are the subject of a declaration under section 20 of the Agriculture Act 2020.

F17(5.

This Article ceases to apply in relation to public intervention schemes in Scotland, otherwise than in connection with public intervention measures which the appropriate authority takes under Article 219(1) of Regulation (EU) No 1308/2013, for a period of five years beginning on 1 July 2023.

F186.

 This Article does not apply in relation to public intervention schemes in Wales.

Article 3Buying-in prices and applicable quantitative limitations

1.

Where public intervention is open pursuant to F19... Article 13(1) of Regulation (EU) No 1308/2013, buying-in shall be carried out at the fixed price referred to in Article 2 of this Regulation and shall not exceed the following quantitative limitations F20(applicable to the United Kingdom as a whole) for each period referred to in Article 12 of Regulation (EU) No 1308/2013 respectively:

(a)

for common wheat, F21300,000 tonnes;

(b)

for butter, F225,000 tonnes;

(c)

for skimmed milk powder, F2311,000 tonnes.

F24...

F24...

F25By way of derogation from the first subparagraph, the quantitative limitation for buying-in skimmed milk powder at a fixed price shall be 0 tonnes for the year 2019.

2.

Where public intervention is open pursuant to F26Article 13 of Regulation (EU) No 1308/2013:

(a)

for common wheat, butter and skimmed milk powder beyond the quantitative limitations referred to in paragraph 1 of this Article; and

(b)

for durum wheat, barley, maize, paddy rice and beef and veal,

buying-in shall be carried out by way of a tendering procedure to determine the maximum buying-in price.

The maximum buying-in price shall not exceed the relevant level referred to in Article 2(1) of this Regulation F27....

F283.

In special and duly justified circumstances:

(a)

where public intervention is carried out by way of tendering, the relevant authority may restrict tendering procedures to a particular region or regions; and

(b)

where buying-in is carried out at a fixed price, the appropriate authority may make regulations, subject to Article 2(1), determining the buying-in prices subject to public intervention in the constituent nation or in a region of the constituent nation on the basis of recorded average market prices.

4.

The buying-in prices referred to in paragraphs 2 and 3 for common wheat, durum wheat, barley, maize and paddy rice shall be adjusted by increases or reductions to those prices based on the main quality criteria for those products.

F29The appropriate authority may make regulations determining such increases or reductions.

F30(4A.

This Article does not apply in relation to public intervention schemes in England, otherwise than in connection with exceptional market conditions which are the subject of a declaration under section 20 of the Agriculture Act 2020.

F31(4B.

This Article ceases to apply in relation to public intervention schemes in Scotland, otherwise than in connection with public intervention measures which the appropriate authority takes under Article 219(1) of Regulation (EU) No 1308/2013, for a period of five years beginning on 1 July 2023.

F324C.

This Article does not apply in relation to public intervention schemes in Wales.

F335.

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

F346.

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

Article 4Aid for private storage

1.

To establish the amount of aid for private storage for the products listed in Article 17 of Regulation (EU) No 1308/2013, where aid is granted in accordance with Article 18(2) of that Regulation, either a tendering procedure shall be opened for a limited period or the aid shall be fixed in advance. The aid may be fixed per F35constituent nation.

2.

The F36appropriate authority must make regulations:

F37(a)

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

(b)

where the aid is fixed in advance, fixing the amount of aid based on the storage costs and/or other relevant market elements.

F38...

F393.

This Article does not apply in relation to private storage aid schemes in Wales.

F40Article 5Aid for the supply of school fruit and vegetables and of school milk, accompanying educational measures and related costs

1.

F41... Aid for the financing of accompanying educational measures as referred to in point (b) of Article 23(1) of Regulation (EU) No 1308/2013 shall not exceed 15 % of F42the aid granted by the relevant authority under Article 23 of that Regulation.

2.

F43... Aid for related costs as referred to in point (c) of Article 23(1) of Regulation (EU) No 1308/2013 shall in total not exceed 10 % of F44the aid granted by the relevant authority under Article 23.

F45The appropriate authority may make regulations fixing the maximum level of aid per category of such costs as a percentage of the aid granted by the relevant authority under Article 23 of Regulation (EU) No 1308/2013 or as a percentage of the costs of the products concerned.

F46...

3.

The amount of F47... aid for the milk component of the products referred to in Article 23(5) of Regulation (EU) No 1308/2013 shall not exceed EUR 27/100 kg.

F484.

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

F485.

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

F486.

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

F49Article 7Sugar sector production charge

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

F49Article 8Sugar sector production refund

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

F49Article 9Minimum beet price

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

F49Article 10Adjustment of the national sugar quotas

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

F49Article 11Surplus levy in the sugar sector

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

F49Article 12Temporary market management mechanism in the sugar sector

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

Article 13Fixing of export refunds

1.

Under the conditions laid down in Article 196 of Regulation (EU) No 1308/2013 and as provided for in Article 198 of that Regulation, the F50Secretary of State may make regulations fixing export refunds:

(a)

at regular intervals, for products from the list in Article 196(1) of Regulation (EU) No 1308/2013;

(b)

by tendering procedures for cereals, rice, sugar and milk and milk products.

F51...

2.

One or more of the following shall be taken into account when export refunds for a product are being fixed:

(a)

the existing situation and future trends with regard to:

  1. (i)

    prices and availabilities of that product on the F52market in the United Kingdom,

  2. (ii)

    prices of that product on the world market;

(b)

the F53need to ensure equilibrium and the natural development of prices and trade on F54the market in the United Kingdom;

(c)

the need to avoid disturbances likely to cause a prolonged imbalance between supply and demand on the F55market in the United Kingdom;

(d)

the economic aspect of the proposed exports;

(e)

the limits resulting from international agreements F56to which the United Kingdom is a party;

(f)

the need to establish a balance between the use of F57domestic basic products in the manufacture of processed goods for export to F58other countries and the use of F59products from other countries brought in under processing arrangements;

(g)

the most favourable marketing costs and transport costs F60from the market in the United Kingdom to places of export together with forwarding costs to the countries of destination;

(h)

demand on the F61market in the United Kingdom;

(i)

in respect of the pigmeat, eggs and poultrymeat sectors, the difference between prices within the F62United Kingdom and prices on the world market for the quantity of feed grain input required for the production in the F62United Kingdom of products of those sectors.

F633.

The Secretary of State may, where necessary to ensure a swift response to fast changing market situations, make regulations adjusting the amount of the refund.

Article 14Specific measures on export refunds for cereals and rice

1.

F64The Secretary of State may make regulations fixing corrective amounts applicable to the export refunds fixed in respect of the cereals and rice sectors.

F65...

The F66Secretary of State may exercise the power in the first subparagraph in relation to products of the cereals and rice sectors that are exported in the form of processed goods in accordance with Council Regulation (EC) No 1216/20094.

2.

For the first three months of the marketing year, the refund applicable to exports of malt, either in storage at the end of the previous marketing year or made from barley in stock at that time, shall be that which would have applied in respect of the export licence in question to exports made during the last month of the preceding marketing year.

3.

The F67Secretary of State may make regulations adjusting the refund on products listed in points (a) and (b) of Part I of Annex I to Regulation (EU) No 1308/2013, established in accordance with Article 199(2) of that Regulation, F68... in line with any changes in the level of the intervention price.

The F69Secretary of State may exercise the power in the first subparagraph in relation to products listed in points (c) and (d) of Part I of Annex I to Regulation (EU) No 1308/2013 as well as to products listed in Part I of that Annex and exported in the form of processed goods in accordance with Regulation (EC) No 1216/2009. In that case, the F70Secretary of State must make regulations correcting the adjustment referred to in the first subparagraph of this paragraph by applying a coefficient expressing the ratio between the quantity of basic product and the quantity thereof contained in the processed product exported or used in the goods exported.

F71...

F72Article 15Regulations

(1.

Regulations made by the Secretary of State or the Welsh Ministers under this Regulation are to be made by statutory instrument.

(2.

For regulations made under this Regulation by the Scottish Ministers, see section 27 of the Interpretation and Legislative Reform (Scotland) Act 2010.

(3.

Any power of the Department of Agriculture, Environment and Rural Affairs to make regulations under this Regulation is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979.

(4.

A statutory instrument containing regulations made by the Secretary of State under this Regulation is subject to annulment in pursuance of a resolution of either House of Parliament.

(5.

A statutory instrument containing regulations made by the Welsh Ministers under this Regulation is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(6.

Regulations made by the Scottish Ministers under this Regulation are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010).

(7.

Regulations made by the Department of Agriculture, Environment and Rural Affairs under this Regulation are subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 as if they were a statutory instrument within the meaning of that Act.

(8.

Regulations under this Regulation may—

(a)

contain consequential, incidental, supplementary, transitional or saving provision (including provision amending, repealing or revoking enactments (which has the meaning given by section 20(1) of the European Union (Withdrawal) Act 2018));

(b)

make different provision for different purposes.

Article 16Correlation table

References to the relevant provisions of Regulation (EC) No 1234/2007 following its repeal by Regulation (EU) No 1308/2013 shall be construed as references to this Regulation and be read in accordance with the correlation table set out in the Annex to this Regulation.

F73Article 17Entry into force and application

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

F74...

F75ANNEX I INDICATIVE ALLOCATIONS for the period 1 August 2017 to 31 July 2023 (as referred to in the second subparagraph of Article 5(4))

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

F40ANNEX IICORRELATION TABLEreferred to in Article 16

Regulation (EC) No 1234/2007

This Regulation

Article 18(1) and (3)

Article 2

Article 18(2)(a)

Article 3(1)(a)

Article 13(1)(c)

Article 3(1)(b)

Article 13(1)(d)

Article 3(1)(c)

Article 18(2), first subparagraph

Article 3(2)

Article 18(2), second subparagraph

Article 3(3)

Article 18(4)

Article 3(4)

X1Article 43(aa)

Article 3(6)

Article 31(2)

Article 4

Article 103ga(4)

Article 5(1)

Article 103ga(5)

Article 5(2)

Article 102(4)

Article 6(1)

Article 102(3)

Article 6(2) and (3)

Article 51(2)

Article 7(1)

Article 51(3)

Article 7(2)

Article 51(4)

Article 7(3)

Article 97

Article 8

Article 49

Article 9

Article 64(2)

Article 11(1)

Article 64(3)

Article 11(2)

Article 164(2)

Article 13(1) and (3)

Article 164(3)

Article 13(2)

Article 164(4)

Article 14(1)

Article 165

Article 14(2)

Article 166

Article 14(3)