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Agriculture Act 2020

Contents

Part 5: Marketing Standards, Organic Products and Carcass Classification

Section 37: Marketing standards

Box 5: Marketing Standards

EU marketing standards establish detailed rules with regard to the quality of agricultural products and providing product information to consumers. Overall, they are beneficial to producers, traders and consumers. They encourage high-quality production, improve profitability and transparency and protect consumer interests. A number of EU marketing standards are based on international standards, for example the United Nations Economic Commission for Europe, the International Organisation of Vine and Wine, and hence their adoption can also facilitate trade with third countries that adhere to the same standards.

At present certain agricultural products marketed in the EU have to conform to marketing standards at all marketing stages including at import and export stage. The current EU legislation pertaining to marketing standards will become retained EU legislation in section 6 of the EU (Withdrawal) Act 2018. The relevant body of EU law is as follows:

Council Regulations:

· 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

· 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)

· 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

· REGULATION (EC) No 1760/2000 of the European Parliament and of the Council of 17 July 2000 establishing a system for the identification and registration of bovine animal and regarding the labelling of beef and beef products and repealing Council Regulation (EC) No 820/97

Commission Delegated and Implementing Acts:

· COMMISSION REGULATION (EC) No 1825/2000 of 25 August 2000 laying down detailed rules for the application of Regulation (EC) No 1760/2000 of the European Parliament and of the Council as regards the labelling of beef and beef products

· COMMISSION REGULATION (EC) No 566/2008 of 18 June 2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing of the meat of bovine animals aged 12 months or less

· COMMISSION REGULATION (EC) No 589/2008 of 23 June 2008 laying down detailed rules for implementing Council Regulation (EC) No 1234/2007 as regards marketing standards for eggs

· COMMISSION REGULATION (EC) No 617/2008 of 27 June 2008 laying down the detailed rules for implementing Regulation (EC) No 1234/2007 as regards marketing standards for eggs for hatching and farmyard poultry chicks

· 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

· COMMISSION IMPLEMENTING REGULATION (EU) NO 1333/2011 OF 19 December 2011 laying down marketing standards for bananas, rules on the verification of compliance with those marketing standards and requirements for notifications in the banana sector

· COMMISSION REGULATION (EC) No 1850/2006 of 14 December 2006 laying down detailed rules for the certification of hops and hop products

· COMMISSION REGULATION (EC) No 1295/2008 of 18 December 2008 on the importation of hops from third countries

· COMMISSION REGULATION (EC) No 445/2007 of 23 April 2007 laying down certain detailed rules for the application of Council Regulation (EC) No 2991/94 laying down standards for spreadable fats and of Council Regulation (EEC) No 1898/87 on the protection of designations used in the marketing of milk and milk products

· COMMISSION REGULATION (EEC) No 2568/91 of 11 July 1991 on the characteristics of olive oil and olive-residue oil and on the relevant methods of analysis

· COMMISSION IMPLEMENTING REGULATION (EU) No 29/2012 of 13 January 2012 on marketing standards for Olive Oil

· COMMISSION REGULATION (EC) No 543/2008 of 16 June 2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for Poultrymeat

· COMMISSION DELEGATED REGULATION (EU) 2018/273 of 11 December 2017 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, the vineyard register, accompanying documents and certification, the inward and outward register, compulsory declarations, notifications and publication of notified information, and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks and penalties, amending Commission Regulations (EC) No 555/2008, (EC) No 606/2009 and (EC) No 607/2009 and repealing Commission Regulation (EC) No 436/2009 and Commission Delegated Regulation (EU) 2015/560

· COMMISSION IMPLEMENTING REGULATION (EU) 2018/274 of 11 December 2017 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, certification, the inward and outward register, compulsory declarations and notifications, and of Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks, and repealing Commission Implementing Regulation (EU) 2015/561

· COMMISSION DELEGATED REGULATION (EU) 2019/33 of 17 October 2018 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards applications for protection of designations of origin, geographical indications and traditional terms in the wine sector, the objection procedure, restrictions of use, amendments to product specifications, cancellation of protection, and labelling and presentation

· COMMISSION IMPLEMENTING REGULATION (EU) 2019/34 of 17 October 2018 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards applications for protection of designations of origin, geographical indications and traditional terms in the wine sector, the objection procedure, amendments to product specifications, the register of protected names, cancellation of protection and use of symbols, and of Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards an appropriate system of checks

· COMMISSION DELEGATED REGULATION (EU) 2019/934 of 12 March 2019 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards wine-growing areas where the alcoholic strength may be increased, authorised oenological practices and restrictions applicable to the production and conservation of grapevine products, the minimum percentage of alcohol for by-products and their disposal, and publication of OIV files.

· COMMISSION IMPLEMENTING REGULATION (EU) 2019/935 of 16 April 2019 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards analysis methods for determining the physical, chemical and organoleptic characteristics of grapevine products and notifications of Member States decisions concerning increases in natural alcoholic strength

Commission Decision:

· 2010/791/EU: COMMISSION DECISION of 20 December 2010 listing the products referred to in the second subparagraph of point III(1) of Annex XII to Council Regulation (EC) No 1234/2007 (notified under document C(2010) 8434)

Marketing standards apply differently to each product. For example, the dairy regulations covering milk, milk products and spreadable fats set out the required ingredients and composition standards for these products, whereas the beef and veal regulations cover traceability between the animal and the meat and the labelling of the meat.

The CMO Regulation grants powers to the Commission to amend marketing standards under certain constraints as set out in section 1 of chapter 1 of title 2.

  1. Section 37gives the Secretary of State a power to make provision relating to marketing standards for agricultural products marketed in England through regulations. This includes the ability to amend or revoke the current marketing standards as set out in retained EU legislation and in domestic legislation, as well as the flexibility to introduce new standards that will be tailored to suit the domestic agricultural sectors.
  2. Subsection (1) gives the Secretary of State the power to make provision concerning marketing standards through regulations.
  3. Subsection (1)(a) states that Schedule 4 contains the list of agricultural products for which marketing standards may be made.
  4. Subsection (1)(b) states that this power applies to products which are marketed in England.
  5. Subsection (2) outlines what matters the regulations made under subsection (1) may concern, for example, the matter of restrictions as regards the use of certain substances and practices, or classification criteria such as grading into classes, weight, sizing and age. The list is non-exhaustive but currently covers the remits of all existing EU marketing standards that will be retained via the EU (Withdrawal) Act 2018.
  6. Subsection (3) states that regulations made under subsection (1) may include provisions about enforcement. It also outlines what matters these enforcement regulations may concern, for example, conferring powers of entry, creating summary offences punishable with a fine and imposing monetary penalties. This list is non-exhaustive. This allows for the current marketing standards enforcement requirements to be replicated for any new standards which may be introduced, and for existing enforcement requirements to be amended as necessary.
  7. Subsection (4) states that regulations made under subsection (1) may not authorise entry to a private dwelling, without a warrant issued by a justice of the peace. "Private dwelling" is defined at section 51.
  8. Subsection (5) gives the Secretary of State the power to make regulations to amend section 37 or Schedule 4 for the reasons specified.
  9. Subsection (5)(a) gives the Secretary of State the power to add or remove products from the list in Schedule 4.
  10. Subsection (5)(b) gives the Secretary of State the power to alter the description of a product listed in Schedule 4.
  11. Subsection (6) states that regulations made under this section are subject to the affirmative resolution procedure.

Section 38: Organic products

  1. Section 38 provides the Secretary of State, and where applicable, the Devolved Ministers, with the powers to make provision relating to organic certification, the import and export of organic products and the enforcement of organic regulation. It allows the Secretary of State to make new organics regulations and amend the existing regime.
  2. Subsection (1) confers powers on the Secretary of State to make regulation in relation to organic certification, which is the principle means of regulating organics. Certification can be certification of organic products, of activities relating to organic production, including preparation, processing, distribution and marketing, and of persons carrying out activities relating to organic products.
  3. Subsections (2), (3) and (4) expand on subsection (1). Subsection (2)(a) allows the Secretary of State to make provision relating to "certification authorities". This allows certification activities to be delegated, for example by the Competent Authority to private Control Bodies, as in the current organics regime. Subsection (3) sets out a non-exhaustive list of purposes for which provisions may be made on the objectives, principles and standards of organic production in relation to organic certification. Subsection (4) expands on the provisions that may be made under subsection (1) in relation to labelling, marketing and sale of organic products.
  4. Subsection (5) confers a power on the Secretary of State to make provision in relation to the import of organic products into the United Kingdom. Subsection (6) expands on subsection (5) to set out the circumstances within which restrictions or prohibitions on the import of organic products may be made. These circumstances include where imports are recognised as compliant or equivalent with organic standards applicable in the United Kingdom, or where a trade agreement is in place.
  5. Subsection (7) confers power on the Secretary of State to make provision in relation to the export of organic products from the United Kingdom to overseas countries, including export procedures.
  6. Subsection (8)(a) confers a general power to prohibit marketing, sales or other organic production activities in cases of non-compliance, and subsection (8)(b) confers a power to make provision for the charging of fees in respect to functions relating to organic certification.
  7. Subsections (8)(c), (9) and (10) relate to enforcement, which is consistent with other enforcement sections in this Act.
  8. Subsections (11) and (12) define the terms "marketing", "organic production" and "organic product". Subsection (13) specifies the types of products that qualify for organic certification.

Section 39: Organic products: supplementary

  1. Section 39 explains who can make the regulations under section 38 and other technical issues related to their making.
  2. Under subsection (1) the Secretary of State can exercise the power across the UK, including in relation to devolved matters. Scottish Ministers, Welsh Ministers and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland can regulate organics in their areas as far as they can exercise powers within their devolved competences.
  3. Subsection (2) states that the Secretary of State may only make regulations under section 38 containing provision which could be made by an authority in subsection (1)(b) to (d) with the consent of that authority.
  4. Subsections (3) and (4) relate to the parliamentary procedure to be used for making provisions. The affirmative resolution procedure is to be used where the powers relate to the objectives, principles and standards of organic production as referred to in section 38(3) or where section 50 (5) applies. Otherwise the affirmative resolution procedure will apply on first use and the negative procedure thereafter.

Section 40: Carcass classification

Box 6: Carcass classification

Carcass classification, which takes place in slaughterhouses within a prescribed time after the point of slaughter, was originally introduced as a basis for market support, but is now mainly used to calculate the payment due to producers from slaughterhouses.

The carcass classification scales define the characteristics and the quality of the carcass as presented, and as such they can also be seen as equivalent to a marketing standard which makes the market in meat more transparent, helping both buyers and producers.

The current EU legislation pertaining to carcass classification will become retained EU legislation under section 6 of the EU (Withdrawal) Act 2018. The relevant legislation is:

Council Regulations:

· 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

Commission Delegated and Implementing Acts:

· COMMISSION DELEGATED REGULATION (EU) 2017/1182 of 20 April 2017 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the Union scales for the classification of beef, pig and sheep carcasses and as regards the reporting of market prices of certain categories of carcasses and live animals.

· COMMISSION IMPLEMENTING REGULATION (EU) 2017/1184 of 20 April 2017 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the Union scales for the classification of beef, pig and sheep carcasses and as regards the reporting of market prices of certain categories of carcasses and live animals

The Commission’s carcass classification powers are currently set out in section 1 (article 10) and section 4 (articles 19-21) of chapter 1 of title 1 of the CMO regulation.

  1. Section 40 gives the Secretary of State the power to make provision relating to carcass classification by slaughterhouses in England, through regulations. This will include the ability to amend or revoke the current carcass classification rules as set out in retained EU legislation and in domestic legislation, as well as the flexibility to introduce new standards and rules that will be tailored to suit the domestic agricultural sectors.
  2. Subsection (1) gives the Secretary of State the power to make regulations regarding the classification, identification and presentation of bovine, pig and sheep carcasses by slaughterhouses in England.
  3. Subsection (2) states that regulations made under subsection (1) may include provision about enforcement. It also outlines what matters these enforcement regulations may concern, for example, conferring powers of entry, creating offences and imposing monetary penalties. This list is non-exhaustive. This will allow for the current carcass classification enforcement requirements to be replicated for any new standards which may be introduced, and for existing enforcement requirements to be amended as necessary.
  4. Subsection (3) states that regulations made under subsection (1) may not authorise entry to a private dwelling, without a warrant issued by a justice of the peace. "Private dwelling" is defined at section 51.
  5. Subsection (4) states that regulations made under this section are subject to the affirmative resolution procedure.

Section 41: Power to reproduce modifications under section 37 for wine sector

  1. Section 41 gives the Secretary of State the power to make provisions relating to marketing standards for products marketed in or exported from England through regulations. This also covers the ability to amend or revoke the current marketing standards, as set out in retained EU legislation. This includes Annex 7 of the CMO Regulation, which outlines the definitions, designations, and sales descriptions of the marketing standards of specific products.
  2. Annex 7 is referenced in various articles which appear in section 2 of chapter 1 of title 2 of the CMO Regulation. This area of law is reserved. This section is required for technical reasons in order to ensure that changes made to Annex 7 using the power in Section 37 (to add new products for example) feed through to the relevant articles in section 2 of Chapter 1 of Title 2.
  3. Section 41(1) gives the Secretary of State the power to make modifications, through regulations, to Annex 7 of the CMO Regulation. This power will only apply for the purposes of replicating any modifications made to Annex 7 under section 41(1) so that these are reflected in section 2 of Chapter 1 of Title 2 of CMO Regulation.
  4. Subsection (2) states that regulations made under this section are subject to the negative resolution procedure, unless section 49(5) applies, in which case the procedure is affirmative.

Section 42: Reports relating to free trade agreements

  1. Section 42 requires the Secretary of State to report to Parliament on whether, or to what extent, provisions in free trade agreements (FTAs) that relate to agricultural products are consistent with the maintenance of UK statutory levels of protection in relation to human, animal and plant life or health; animal welfare; and the environment. Subsection (1) states that the Secretary of State must lay such a report before Parliament before any FTA may be laid before Parliament under Part 2 of the Constitutional Reform and Governance Act 2010 (CRaG). Subsection (5) states that copies of the report must be provided to the Devolved Administrations and relevant Parliamentary Committees that appear to the Secretary of State to have an interest in the report.
  2. The structure of each individual report will be tailored to the country in question and cover relevant aspects as required. Subsection (4) states that the Secretary of State may seek independent, expert advice when preparing each report.
  3. Subsection (6) sets out exceptions for the EU future relationship and certain FTAs negotiated with parties to existing FTAs. This section does not apply to a UK FTA if each other party is the EU or a Member State of the EU. Nor does it apply to UK FTAs negotiated before the second anniversary of IP completion if each other party and the EU were parties to an FTA that was in effect before Exit day.

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