7.6.2014

EN

Official Journal of the European Union

L 168/1

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COUNCIL DECISION

of 19 May 2014

on the signing, on behalf of the European Union, and provisional application of the Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe

(2014/334/EU)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43, in conjunction with Article 218(5) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)	On 23 July 2007, the Council approved the Fisheries Partnership Agreement between the Democratic Republic of São Tomé and Príncipe and the European Community (the ‘Partnership Agreement’) by adopting Regulation (EC) No 894/2007 (1).

(2)	The application of the latest Protocol (2) setting out the fishing opportunities and financial contribution provided for in the Partnership Agreement expired on 12 May 2014.

(3)

The Union negotiated with São Tomé and Príncipe a new Protocol, for a period of four years, granting Union vessels fishing opportunities in the waters over which the Democratic Republic of São Tomé and Príncipe has sovereignty or jurisdiction in respect of fisheries. At the end of those negotiations, a new Protocol was initialled on 19 December 2013.

(4)

In order to guarantee the continuity of fishing activities by Union vessels, provision is made for the new Protocol to apply provisionally, pending completion of the procedures necessary for its conclusion. This provisional application will take effect from the date of its signature, but not before the date of expiry of the latest Protocol.

(5)	The new Protocol should be signed,

HAS ADOPTED THIS DECISION:

Article 1

The signing, on behalf of the Union, of the Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe (the ‘Protocol’) is hereby authorised, subject to the conclusion of the Protocol.

The text of the Protocol is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) empowered to sign the Protocol on behalf of the Union.

Article 3

The Protocol shall be applied provisionally, in accordance with Article 14 thereof, from the date of its signature (3), and from 13 May 2014 at the earliest, pending completion of the procedures necessary for its conclusion.

Article 4

This Decision shall enter into force on the date of its adoption.

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(1)  Council Regulation (EC) No 894/2007 of 23 July 2007 on the conclusion of a Fisheries Partnership Agreement between the Democratic Republic of São Tomé and Príncipe and the European Community (OJ L 205, 7.8.2007, p. 35).

(2)  Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe (OJ L 136, 24.5.2011, p. 5).

(3)  The date of signature of the Protocol will be published in the Official Journal of the European Union by the General Secretariat of the Council.

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7.6.2014

EN

Official Journal of the European Union

L 168/3

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PROTOCOL

setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe

Article 1

Period of application and fishing opportunities

1.   The fishing opportunities granted to European Union vessels under Article 5 of the Fisheries Partnership Agreement shall be set out, for a period of four (4) years from the date of provisional application, to allow the highly migratory species listed in Annex 1 to the United Nations Convention on the Law of the Sea (1982) to be caught, with the exception of species protected or prohibited by ICCAT.

2.   The fishing opportunities are awarded to:

(a)	28 tuna seiners;

(b)	6 surface longliners.

3.   Paragraph 1 shall apply subject to Articles 5, 6, 7 and 8 of this Protocol.

4.   In accordance with Article 6 of the Agreement, fishing vessels flying the flag of a Member State of the European Union may fish in São Toméan waters only if they are in possession of a fishing authorisation (fishing licence) issued under this Protocol.

Article 2

Financial contribution — Methods of payment

1.   For the period referred to in Article 1, the financial contribution referred to in Article 7 of the Fisheries Partnership Agreement shall be EUR 2 805 000.

2.   The financial contribution comprises:

(a)	an annual amount for access to the EEZ of São Tomé and Príncipe of EUR 385 000 for the first three years and EUR 350 000 for the fourth year, equivalent to a reference tonnage of 7 000 tonnes per year, and

(b)	a specific amount of EUR 325 000 per year for four years to support the implementation of the sectoral fisheries policy of São Tomé and Príncipe.

3.   Paragraph 1 shall apply subject to Articles 3, 4, 5, 7 and 8 of this Protocol and Articles 12 and 13 of the Fisheries Partnership Agreement.

4.   The European Union shall pay the financial contribution referred to in paragraph 1 at the rate of EUR 710 000 per year during the first three years and EUR 675 000 for the fourth year, corresponding to the total of the annual amounts referred to in paragraph 2(a) and (b).

5.   If the overall annual quantity of catches by European Union vessels in São Toméan waters exceeds the annual reference tonnage referred to in paragraph 2, the total amount of the annual financial contribution shall be increased by EUR 55 for the first three years and by EUR 50 for the fourth year for each additional tonne caught. However, the total annual amount paid by the European Union shall not be more than twice the amount indicated in paragraph 2(a). Where the quantities caught by European Union vessels exceed quantities corresponding to twice the total annual amount, the amount due for the quantity exceeding that limit shall be paid the following year.

6.   Payment shall be made no later than ninety (90) days after the provisional entry into force of the Protocol for the first year, and no later than the Protocol's anniversary date for the following years.

7.   The São Toméan authorities shall have full discretion regarding the use to which the financial contribution referred to in paragraph 2(a) is put.

8.   The financial contribution referred to in paragraph 2 of this Article shall be paid into a Public Treasury account opened with the National Bank of São Tomé and Príncipe, with the financial contribution referred to in paragraph 2(b) of this Article assigned to sectoral aid being made available to the Directorate for Fisheries. The São Toméan authorities shall notify the European Commission of the relevant bank account numbers on an annual basis.

Article 3

Promotion of responsible and sustainable fishing in São Toméan waters

1.   No later than three (3) months after the entry into force of this Protocol, the parties shall agree, within the Joint Committee provided for in Article 9 of the Fisheries Partnership Agreement, on a multiannual sectoral programme and detailed rules for its implementation, in particular:

(a)	annual and multiannual guidelines for using the financial contribution referred to in Article 2(2)(b);

(b)

the objectives, both annual and multiannual, to be achieved with a view to introducing, over time, responsible and sustainable fishing, taking account of the priorities expressed by São Tomé and Príncipe in its national fisheries policy or other policies relating to or having an impact on the introduction of responsible and sustainable fishing, particularly with regard to small-scale fishing and the monitoring, control and combating of illegal, unreported and unregulated (IUU) fishing;

(c)	criteria and procedures for evaluating the results obtained each year.

2.   Any proposed amendments to the multiannual sectoral programme must be approved by both parties within the Joint Committee.

3.   Each year, the the authorities of São Tomé and Príncipe may decide to allocate an additional amount over and above the share of the financial contribution referred to in Article 2(2)(b) with a view to implementing the multiannual programme. This allocation shall be communicated to the European Union no later than two (2) months before the anniversary date of this Protocol.

4.   Each year, the two parties shall carry out an evaluation of the progress made in implementing the multiannual sectoral programme. Where this evaluation indicates that the objectives financed directly by the part of the financial contribution referred to in Article 2(2)(b) of this Protocol have not been satisfactorily achieved, the European Commission reserves the right to reduce that part of the financial contribution with a view to aligning the amount allocated to the implementation of the programme with the results.

Article 4

Scientific cooperation on responsible fishing

1.   The two parties hereby undertake to promote responsible fishing in São Toméan waters based on the principle of non-discrimination between the different fleets operating in those waters.

2.   During the period covered by this Protocol, the European Union and São Tomé and Príncipe shall undertake to cooperate to monitor the state of fishery resources in the São Toméan fishing zone.

3.   With regard to the region of Central Africa, the two parties undertake to promote cooperation as regards responsible fishing. The two parties undertake to comply with all recommendations and resolutions issued by the International Commission for the Conservation of Atlantic Tunas (ICCAT).

4.   In accordance with Article 4 of the Fisheries Partnership Agreement, on the basis of the recommendations and resolutions adopted within ICCAT and in the light of the best scientific advice available, the parties shall consult each other within the Joint Committee provided for in Article 9 of the Fisheries Partnership Agreement to take measures to ensure sustainable management of the fish species covered by this Protocol as far as the activities of European Union vessels are concerned.

Article 5

Review of fishing opportunities and technical measures by mutual agreement

1.   The fishing opportunities referred to in Article 1 may be amended by mutual agreement insofar as the recommendations and resolutions adopted by ICCAT confirm that this amendment guarantees the sustainable management of the fish species covered by this Protocol. In this case, the financial contribution referred to in Article 2(2)(a) shall be amended proportionately and pro rata temporis. However, the total annual amount of the financial contribution paid by the European Union shall not be more than twice the amount referred to in Article 2(2)(a).

2.   Where necessary, the Joint Committee may examine and adapt, by mutual agreement, the provisions governing the pursuit of fishing activities and the rules for implementing this Protocol and the Annex hereto.

Article 6

New fishing opportunities

1.   As regards the operation of fisheries not covered by this Protocol, the authorities of São Tomé and Príncipe may call on the European Union to consider the possibility of such fisheries, on the basis of the results of a scientific campaign taking account of best scientific advice endorsed by scientific experts representing both parties.

2.   Depending on these results, and if the European Union expresses an interest in these fisheries, the two parties shall consult each other in the Joint Committee before the granting of an authorisation by the São Toméan authorities. Where appropriate, the parties shall agree on the conditions applicable to these new fishing opportunities and, if necessary, make amendments to this Protocol and to the Annex hereto.

Article 7

Suspension and review of the payment of the financial contribution

1.   The financial contribution, as referred to in Article 2(2)(a) and (b), may be revised or suspended if one or more of the following conditions apply:

(a)	where unusual circumstances, as defined in Article 2(h) of the Fisheries Partnership Agreement, prevent fishing activities in the São Toméan EEZ;

(b)	where, following significant changes in the definition and implementation of the fishery policy guidelines which led to the conclusion of this Protocol, one of the two parties requests a review of its provisions with a view to a possible amendment;

(c)	if a violation of the essential and fundamental human rights laid down in Article 9 of the Cotonou Agreement is noted following the procedure provided for in Articles 8 and 96 of that Agreement.

2.   The European Union reserves the right to suspend, partially or totally, payment of the specific financial contribution provided for in Article 2(2)(b) of this Protocol:

(a)	if the results obtained are inconsistent with the programming, following an evaluation carried out by the Joint Committee;

(b)	in the event of failure to implement this financial contribution.

3.   Payment of the financial contribution shall resume after consultation and agreement by the two parties, as soon as the situation existing prior to the events mentioned in paragraph 1 has been re-established and/or if the results of the financial implementation referred to in paragraph 2 so warrant. Nevertheless, the specific financial contribution provided for in Article 2(2)(b) may not be paid out beyond a period of six (6) months after the Protocol expires.

Article 8

Suspension of the Protocol's implementation

1.   The implementation of this Protocol may be suspended at the initiative of one of the two parties if one or more of the following conditions apply:

(a)	where unusual circumstances, as defined in Article 2(h) of the Fisheries Partnership Agreement, prevent fishing activities in the São Toméan EEZ;

(b)	where, following significant changes in the definition and implementation of the fishery policy guidelines which led to the conclusion of this Protocol, one of the two parties requests a review of its provisions with a view to a possible amendment;

(c)	where one of the two parties notes that there has been a violation of the essential and fundamental human rights laid down in Article 9 of the Cotonou Agreement and following the procedure provided for in Articles 8 and 96 of that Agreement;

(d)	in the event of failure to pay the financial contribution provided for in Article 2(2)(a) by the European Union, for reasons other than those provided for in this Article;

(e)	where there is a dispute between the two parties concerning the application or interpretation of this Protocol.

2.   Implementation of the Protocol may be suspended at the initiative of one party if it has not been possible to settle the dispute between the parties in consultations held within the Joint Committee.

3.   Suspension of application of the Protocol shall require the interested party to notify its intention in writing at least three (3) months before the date on which suspension is due to take effect.

4.   In the event of suspension, the parties shall continue to consult each other with a view to finding an amicable settlement to their dispute. Where such settlement is reached, application of the Protocol shall resume and the amount of the financial contribution shall be reduced proportionately and pro rata temporis to the period during which application of the Protocol was suspended.

Article 9

Applicable provisions of national law

1.   The activities of European Union fishing vessels operating in São Toméan waters shall be governed by the applicable law in São Tomé and Príncipe, unless otherwise provided for in the Fisheries Partnership Agreement, this Protocol and the Annex and appendices hereto.

2.   The São Toméan authorities shall inform the European Commission of any change or any new legislation relating to the fishing sector.

3.   The European Commission shall inform the authorities of São Tomé and Príncipe of any change or any new legislation relating to the fishing activities of the European Union distant-water fleet.

Article 10

Electronic communication

1.   São Tomé and Príncipe and the European Union undertake to install as soon as possible the computer systems required for the electronic exchange of all the information and documents relating to the implementation of the Agreement.

2.   The electronic form of a document will be considered equivalent to the paper version in every respect.

3.   São Tomé and Príncipe and the European Union shall inform each other without delay of any malfunction of a computer system. The information and documents relating to the implementation of the Agreement shall then be automatically replaced by their paper version.

Article 11

Confidentiality of data

1.   São Tomé and Príncipe and the European Union undertake that all nominative data relating to EU vessels and their fishing activities obtained within the framework of the Agreement will, at all times, be processed strictly in accordance with the principles of confidentiality and data protection.

2.   The two parties shall ensure that only aggregate data on fishing activities in São Toméan waters are made publicly available, in line with the relevant ICCAT provisions. Data which may be considered confidential must be used by the competent authorities exclusively for the purposes of implementing the Agreement and for fishery management, controls and monitoring.

Article 12

Duration

This Protocol and the Annex hereto shall apply for a period of four (4) years from their provisional application in accordance with Articles 14 and 15, unless notice of termination is given in accordance with Article 13.

Article 13

Termination

1.   In the event of termination of this Protocol, the party concerned shall notify the other party in writing of its intention to terminate the Protocol at least six (6) months before the date on which such termination would take effect.

2.   Dispatch of the notification, as referred to in the previous paragraph, shall open consultations between the parties.

Article 14

Provisional application

This Protocol shall be applied provisionally from the date of its signature but no earlier than 13 May 2014.

Article 15

Entry into force

This Protocol with its Annex shall enter into force on the date on which the parties notify each other of the completion of the procedures necessary for that purpose.

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7.6.2014

EN

Official Journal of the European Union

L 168/27

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COUNCIL REGULATION (EU) No 607/2014

of 19 mai 2014

on the allocation of fishing opportunities under the Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe

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)	On 23 July 2007, the Council approved the Fisheries Partnership Agreement between the Democratic Republic of São Tomé and Príncipe and the European Community (the ‘Partnership Agreement’) by adopting Regulation (EC) No 894/2007 (1).

(2)

The Union and the Democratic Republic of São Tomé and Príncipe negotiated and initialled, on 19 December 2013, a new Protocol to the Partnership Agreement granting Union vessels fishing opportunities in the waters over which the Democratic Republic of São Tomé and Príncipe has sovereignty or jurisdiction in respect of fisheries.

(3)	On 19 mai 2014, the Council adopted Decision 2014/334/EU (2) on the signing and provisional application of the new Protocol.

(4)	The method for allocating the fishing opportunities among the Member States should be defined for the period of application of the new Protocol.

(5)

If it appears that the fishing authorisations or opportunities allocated to the Union by virtue of the new Protocol are not fully exhausted, the Commission will inform the Member States thereof in accordance with Council Regulation (EC) No 1006/2008 (3). If no reply is received within a time limit to be set by the Council, this will be considered as confirmation that the vessels of the Member State concerned are not making full use of their fishing opportunities during the period in question. That time limit should be set.

(6)	To ensure the continuity of the fishing activities of Union vessels, the new Protocol provides for its application by the parties on a provisional basis from the date of its signature. This Regulation should therefore apply from the date of signature of the new Protocol,

HAS ADOPTED THIS REGULATION:

Article 1

1.   The fishing opportunities set out in the Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries PartnershipAgreement between the European Union and the Democratic Republic of São Tomé and Príncipe (the ‘Protocol’) shall be allocated among the Member States as follows:

(a)	tuna seiners: Spain 16 vessels France 12 vessels

(b)	surface longliners: — for the first two years of validity of the Protocol: Spain 4 vessels Portugal 2 vessels — for the last two years of validity of the Protocol: Spain 5 vessels Portugal 1 vessel

2.   Regulation (EC) No 1006/2008 shall apply without prejudice to the Partnership Agreement.

3.   If applications for fishing authorisations from the Member States referred to in paragraph 1 do not exhaust the fishing opportunities set out in the Protocol, the Commission shall consider applications for fishing authorisations from any other Member State in accordance with Article 10 of Regulation (EC) No 1006/2008.

4.   The time limit within which the Member States must confirm that they are not making full use of the fishing opportunities granted to them, as provided by Article 10(1) of Regulation (EC) No 1006/2008, is set at ten working days from the date on which the Commission informs them that the fishing opportunities are not being fully utilised.

Article 2

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

It shall apply from the date of signature of the Protocol.

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(1)  Council Regulation (EC) No 894/2007 of 23 July 2007 on the conclusion of a Fisheries Partnership Agreement between the Democratic Republic of São Tomé and Príncipe and the European Community (OJ L 205, 7.8.2007, p. 35).

(2)  Council Decision 2014/334/EU of 19 May 2014 on the signing, on behalf of the European Union, and provisional application of the Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries Partnership Agreement between the European Union and the Democratic Republic of São Tomé and Príncipe (see page 1 of this Official Journal).

(3)  Council Regulation (EC) No 1006/2008 of 29 September 2008 concerning authorisations for fishing activities of Community fishing vessels outside Community waters, amending Regulations (EEC) No 2847/93 and (EC) No 1627/94 and repealing Regulation (EC) No 3317/94 (OJ L 286, 29.10.2008, p. 33).

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7.6.2014

EN

Official Journal of the European Union

L 168/29

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COUNCIL REGULATION (EU, Euratom) No 608/2014

of 26 May 2014

laying down implementing measures for the system of own resources of the European Union

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the fourth paragraph of Article 311 thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

Having regard to Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union (1), and in particular Article 9 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the consent of the European Parliament,

Acting in accordance with a special legislative procedure,

Whereas:

(1)

The transparency of the Union's own resources system should be ensured by the supply of adequate information to the budgetary authority. Therefore, the Member States should keep at the disposal of the Commission, and where necessary forward to it, the documents and information needed to allow it to exercise the power conferred upon it as regards the Union's own resources.

(2)	The arrangements whereby the Member States responsible for collecting own resources report to the Commission, should make it possible for the Commission to monitor their action to recover own resources, in particular in cases of fraud and irregularities.

(3)	In order to ensure a balanced budget, any surplus of the Union's revenue over total actual expenditure during a financial year should be carried over to the following financial year. Therefore, the balance to be carried over should be defined.

(4)	Member States should conduct checks and enquiries relating to establishing and making available the Union's own resources. In order to facilitate application of the financial rules relating to own resources, it is necessary to ensure collaboration between Member States and the Commission.

(5)

For the sake of consistency and clarity, provisions should be laid down covering the powers and obligations of agents authorised by the Commission to carry out inspections in relation to the Union's own resources, taking into account the specific nature of each own resource. The conditions under which authorised agents carry out their tasks should be set out, and in particular the rules which all Union officials, other servants and seconded national experts have to observe with regard to professional confidentiality and the protection of personal data should be laid down. It is necessary to establish the status of seconded national experts and the possibility for the Member State concerned to object to the presence, at an inspection, of officials of other Member States.

(6)

For reasons of coherence, certain provisions of Council Regulation (EC, Euratom) No 1150/2000 (2) should be included in this Regulation. Those provisions concern the calculation and budgeting of the balance, control and supervision of own resources and relevant reporting requirements, as well as the Advisory Committee on Own Resources.

(7)	In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (3).

(8)

The advisory procedure should be used for the adoption of implementing acts in order to establish detailed rules on reporting fraud and irregularities affecting entitlements to traditional own resources and Member States' annual reports on their inspections given the technical nature of those acts required for reporting purposes.

(9)	Appropriate parliamentary oversight, as set out in the Treaties, is required for provisions of a general nature applicable to all types of own resources and covering control and supervision of revenues including relevant reporting requirements.

(10)	Council Regulation (EC, Euratom) No 1026/1999 (4) should be repealed.

(11)	The European Court of Auditors and the European Economic and Social Committee were consulted and have adopted opinions (5).

(12)	For reasons of consistency and taking account of Article 11 of Decision 2014/335/EU, Euratom, this Regulation should enter into force on the same day as that Decision and should apply from 1 January 2014,

HAS ADOPTED THIS REGULATION:

CHAPTER I

DETERMINING OWN RESOURCES

Article 1

Calculation and budgeting of the balance

1.   For the purpose of applying Article 7 of Decision 2014/335/EU, Euratom the balance of a given financial year shall consist of the difference between all the revenue collected in respect of that financial year and the amount of payments made against appropriations for that financial year increased by the amount of the appropriations for the same financial year carried over pursuant to Article 13 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (6) (‘the Financial Regulation’).

That difference shall be increased or decreased by the net amount of appropriations carried over from previous financial years which have been cancelled. By way of derogation from Article 8(1) of the Financial Regulation, the difference shall also be increased or decreased by the following:

(a)	payments made in excess of non-differentiated appropriations carried over from the previous financial year under Article 13(1) and (4) of the Financial Regulation as a result of changes in euro rates;

(b)	the balance resulting from exchange gains and losses during the financial year.

2.   The Commission shall, before the end of October in each financial year, make an estimate of the own resources collected for the entire year, on the basis of the data at its disposal at that time. Any appreciable differences in relation to original estimates may give rise to a letter of amendment to the draft budget for the following financial year or an amending budget for the current financial year.

CHAPTER II

PROVISIONS CONCERNING CONTROL AND SUPERVISION, INCLUDING RELEVANT REPORTING REQUIREMENTS

Article 2

Control and supervision measures

1.   The own resources referred to in Article 2(1) of Decision 2014/335/EU, Euratom shall be inspected as specified in this Regulation, without prejudice to Council Regulation (EEC, Euratom) No 1553/89 (7) and Council Regulation (EC, Euratom) No 1287/2003 (8).

2.   Member States shall take all measures that are necessary to ensure that the own resources referred to in Article 2(1) of Decision 2014/335/EU, Euratom are made available to the Commission.

3.   Where control and supervision measures concern the traditional own resources referred to in Article 2(1)(a) of Decision 2014/335/EU, Euratom:

(a)	Member States shall conduct the checks and enquiries concerning the establishment and the making available of those own resources.

(b)	Member States shall carry out additional inspection measures at the Commission's request. In its request the Commission shall state the reasons for the additional inspection. The Commission may also request that certain documents be forwarded to it.

(c)

Member States shall, if the Commission so requests, associate it with the inspections which they carry out. Where the Commission is associated with an inspection, the Commission shall have access, in so far as the application of this Regulation so requires, to the supporting documents concerning establishing and making available own resources, and to any other appropriate document related to those supporting documents.

(d)	The Commission may itself carry out inspections on the spot. The agents authorised by the Commission for such inspections shall have access to documents as set out for the inspections referred to in point (c). Member States shall facilitate those inspections.

(e)

The inspections referred to in points (a) to (d) shall be without prejudice to the following: (i) the inspections carried out by Member States in accordance with their national laws, regulations or administrative provisions; (ii) the measures provided for in Articles 287 and 319 of the Treaty on the Functioning of European Union (TFEU); (iii) the inspection arrangements made pursuant to Article 322(1)(b) TFEU.

4.   Where control and supervision measures concern the own resource based on value added tax (VAT) referred to in Article 2(1)(b) of Decision 2014/335/EU, Euratom, they shall be carried out in accordance with Article 11 of Regulation (EEC, Euratom) No 1553/89.

5.   Where control and supervision measures concern the own resource based on gross national income (GNI) referred to in Article 2(1)(c) of Decision 2014/335/EU, Euratom:

(a)

The Commission shall each year inspect, together with the Member State concerned, the aggregates provided for errors in compilation, especially in cases notified by the GNI committee established by Regulation (EC, Euratom) No 1287/2003. In doing so it may, in individual cases, also examine calculations and statistical bases, except the information about individual companies or persons, where no proper assessment would otherwise be possible.

(b)	The Commission shall have access to the documents relating to the statistical procedures and basic statistics referred to in Article 3 of Regulation (EC, Euratom) No 1287/2003.

6.   For the purposes of the control and supervision measures under paragraphs 3, 4 and 5 of this Article, the Commission may request the Member States to forward to it relevant documents or reports relating to the systems used to collect own resources or to make them available to the Commission.

Article 3

Powers and obligations of the authorised agents of the Commission

1.   The Commission shall specifically appoint for the purpose of making the inspections referred to in Article 2 certain of its officials or other servants (‘authorised agents’).

For each inspection, the Commission shall provide the authorised agents with written terms of reference stating their identity and official capacity.

Persons placed at the disposal of the Commission by the Member States as national experts on secondment may participate in the inspections.

With the explicit and prior agreement of the Member State concerned, the Commission may seek the assistance of officials from other Member States as observers. The Commission shall ensure that those officials comply with paragraph 3 of this Article.

2.   During the inspections of traditional own resources and of the VAT-based own resource, referred to in Article 2(3) and (4) respectively, the authorised agents shall act in a manner compatible with the rules applicable to the officials of the Member State concerned. They shall be bound by professional secrecy, under the conditions laid down in paragraph 3 of this Article.

For the purposes of the inspections of the GNI-based own resource referred to in Article 2(5), the Commission shall respect national rules on the confidentiality of statistics.

An authorised agent may, if necessary, contact debtors, but only in the context of the inspections of traditional own resources, and only through the competent authorities whose own resources collection procedures are the subject of the inspection.

3.   Information communicated or obtained under this Regulation, in whatever form, shall be subject to professional secrecy and receive the protection granted to similar information under the national law of the Member State in which it was gathered and under the corresponding provisions applicable to the institutions of the Union.

That information shall not be communicated to persons other than those within the institutions of the Union or the Member States whose duty it is to know nor shall it be used for purposes other than those laid down in this Regulation without the prior consent of the Member State in which it was gathered.

The first and second subparagraphs shall apply to the officials and other servants of the Union, and national experts on secondment.

4.   The Commission shall ensure that authorised agents and other persons acting under its authority comply with Directive 95/46/EC of the European Parliament and of the Council (9) and Regulation (EC) No 45/2001 of the European Parliament and of the Council (10) and other Union and national rules concerning the protection of personal data.

Article 4

Preparation and management of inspections

1.   In a duly substantiated communication, the Commission shall give notice of an inspection in good time to the Member State in which the inspection is to take place. Agents of the Member State concerned may participate in such inspection.

2.   For inspections of traditional own resources where the Commission is associated under Article 2(3), and of the VAT-based own resource under Article 2(4), the organisation of the work and relations with the departments involved in the inspection shall be ensured by the department designated by the Member State concerned.

3.   On-the-spot inspections of traditional own resources referred to in Article 2(3)(d) shall be carried out by the authorised agents. For the purposes of the organisation of the work and relations with the departments, and where appropriate the debtors involved in the inspection, those agents shall, prior to any on-the-spot inspections, establish the necessary contacts with the officials designated by the Member State concerned. For this type of inspection the terms of reference shall be accompanied by a document indicating the aim and purpose of the inspection.

4.   Inspections concerning the GNI-based own resource referred to in Article 2(5) shall be carried out by the authorised agents. For the purposes of the organisation of the work, those agents shall establish the necessary contacts with the competent administrations in the Member States.

5.   The Member States shall ensure that the departments or agencies responsible for establishing, collecting and making available the own resources, and the authorities which they have instructed to carry out the inspections thereon, provide the authorised agents with the assistance necessary for carrying out their duties.

For the purposes of on-the-spot inspections of traditional own resources referred to in Article 2(3)(d), Member States concerned shall inform the Commission in good time of the identity and capacity of the persons appointed to take part in these inspections and to afford the authorised agents every assistance necessary for carrying out their duties.

6.   The results of the controls and inspections referred to in Article 2, except the inspections carried out by the Member States referred to in Article 2(3)(a) and (b), shall be brought to the attention of the Member State concerned through the appropriate channels within a period of three months. The Member State shall submit its observations within the three months following receipt of the report. However, for duly substantiated reasons, the Commission may request the Member State concerned to submit observations on specific points within a period of one month following receipt of the report. The Member State concerned may decline to respond by means of a communication stating the reasons which prevent it from responding to the Commission's request.

Thereafter the results and observations referred to in the first subparagraph, together with the summary report prepared in connection with controls on the VAT-based own resource, shall be brought to the attention of all Member States.

Where the on-the-spot or associated inspections of traditional own resources identify the need for amendment or correction of data in the statements or declarations sent to the Commission regarding own resources and the resultant corrections are to be made via a current statement or declaration then the relevant changes shall be identified, in the statement or declaration so used, by means of appropriate notes.

Article 5

Reporting fraud and irregularities affecting entitlements to traditional own resources

1.   In the two months following the end of each quarter, Member States shall send the Commission a description of cases of fraud and irregularities detected involving entitlements of over EUR 10 000 concerning the traditional own resources referred to Article 2(1)(a) of Decision 2014/335/EU, Euratom.

Within the period referred to in the first subparagraph, each Member State shall give details of the position concerning cases of fraud and irregularities already reported to the Commission whose recovery, cancellation or non-recovery was not indicated earlier.

2.   The Commission shall adopt implementing acts establishing details of the descriptions referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 7(2).

3.   A summary of the notifications referred to in paragraph 1 of this Article shall be included in the Commission report referred to in Article 325(5) TFEU.

Article 6

Reporting by Member States of their inspections of traditional own resources

1.   Member States shall submit detailed annual reports to the Commission on their inspections relating to traditional own resources and the results of those inspections, the overall data and any questions of principle concerning the most important problems arising out of the application of the relevant regulations implementing Decision 2014/335/EU, Euratom and, in particular, matters in dispute. The reports shall be sent to the Commission by 1 March of the year following the financial year concerned. On the basis of those reports, the Commission shall prepare a summary report, which shall be brought to the attention of all Member States.

2.   The Commission shall adopt implementing acts establishing a form for the Member States' annual reports mentioned in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 7(2).

3.   The Commission shall report every three years to the European Parliament and to the Council on the functioning of the inspection arrangements for traditional own resources referred to in Article 2(3).

CHAPTER III

COMMITTEE AND FINAL PROVISIONS

Article 7

Committee procedure

1.   The Commission shall be assisted by the Advisory Committee on Own Resources (ACOR). That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.   Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Article 8

Final provisions

Regulation (EC, Euratom) No 1026/1999 is repealed.

References to the repealed Regulation and to the provisions of Regulation (EC, Euratom) No 1150/2000 repealed by Council Regulation (EU, Euratom) No 609/2014 (11), which are referred to in the correlation table set out in the Annex to this Regulation, shall be construed as references to this Regulation and shall be read in accordance with that correlation table.

Article 9

Entry into force

This Regulation shall enter into force on the day of entry into force of Decision 2014/335/EU, Euratom.

It shall apply from 1 January 2014.

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(1)  See page 105 of this Official Journal.

(2)  Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 2007/436/EC, Euratom on the system of the European Communities own resources (OJ L 130, 31.5.2000, p. 1).

(3)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

(4)  Council Regulation (EC, Euratom) No 1026/1999 of 10 May 1999 determining the powers and obligations of agents authorised by the Commission to carry out controls and inspections of the Communities' own resources (OJ L 126, 20.5.1999, p. 1).

(5)  Opinion No 2/2012 of the European Court of Auditors of 20 March 2012 (OJ C 112, 18.4.2012, p. 1) and Opinion of the European Economic and Social Committee of 29 March 2012 (OJ C 181, 21.6.2012, p. 45).

(6)  Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

(7)  Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform arrangements for the collection of own resources accruing from value added tax (OJ L 155, 7.6.1989, p. 9).

(8)  Council Regulation (EC, Euratom) No 1287/2003 of 15 July 2003 on the harmonisation of gross national income at market prices (GNI Regulation) (OJ L 181, 19.7.2003, p. 1).

(9)  Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (OJ L 281, 23.11.1995, p. 31).

(10)  Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1).

(11)  Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements (see page 39 of this Official Journal).

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7.6.2014

EN

Official Journal of the European Union

L 168/39

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COUNCIL REGULATION (EU, Euratom) No 609/2014

of 26 May 2014

on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements

(Recast)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 322(2) thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the European Court of Auditors (1),

Whereas:

(1)	Council Regulation (EC, Euratom) No 1150/2000 (2) has been substantially amended several times. Since further amendments are to be made, it should be recast in the interests of clarity.

(2)

Certain provisions of Regulation (EC, Euratom) No 1150/2000 have been included in Council Regulation (EU, Euratom) No 608/2014 (3) and are not covered by this Regulation. Those provisions concern the calculation and budgeting of the balance, control and supervision of own resources and relevant reporting requirements, as well as the Advisory Committee on Own Resources (ACOR).

(3)

The Union must have the own resources referred to in Article 2 of Council Decision 2014/335/EU, Euratom (4) available in the best possible conditions and accordingly rules should be laid down for the Member States to provide the Commission with those own resources. This Regulation takes over the rules on making available the traditional own resources referred to in Article 2(1)(a) of Decision 2014/335/EU, Euratom, the own resources based on value added tax (VAT) referred to in Article 2(1)(b) of that Decision (‘VAT-based own resource’) and own resources based on gross national income (GNI) referred to in Article 2(1)(c) of that Decision (‘GNI-based own resource’), previously included in Regulation (EC, Euratom) No 1150/2000.

(4)	The concept of establishment should be defined in respect of the own resources and detailed rules should be laid down for satisfying the obligation to establish the traditional own resources referred to in Article 2(1)(a) of Decision 2014/335/EU, Euratom.

(5)

For own resources deriving from sugar levies, which need to be recovered in the budget year corresponding to the marketing year to which the expenditure relates, provision should be made for the Member States to make such levies available to the Commission during the budget year in which they are established.

(6)	The Member States should keep at the disposal of the Commission and, where necessary, forward to it the documents and information needed to allow it to exercise the power conferred upon it as regards the own resources of the Union.

(7)	The national authorities responsible for the collection of own resources should be able to produce to the Commission at all times the documents substantiating the own resources collected.

(8)

Separate accounts should be kept for entitlements which have not been recovered. These accounts and the submission of a quarterly statement of such accounts should enable the Commission to monitor more closely the action taken by Member States to collect own resources, and particularly those compromised by fraud or irregularities.

(9)	A time-limit should be laid down for relations between Member States and the Commission, given that new entitlements established by Member States in respect of earlier years are deemed to be establishments for the current year.

(10)

In order to ensure that the budget of the Union will be financed in all circumstances, a procedure should be laid down, as regards the VAT-based own resource and the GNI-based own resource created in accordance with Council Regulation (EC, Euratom) No 1287/2003 (5), for Member States to make available to the Union, in the form of constant monthly twelfths, the own resources entered in the budget and subsequently to adjust the amounts made available in accordance with the actual base of the VAT-based own resource and the relevant changes to GNI as soon as they are fully known.

(11)	The impact of modifications in the GNI data made after the end of each financial year on the financing of gross reductions should be clarified.

(12)

The own resources must be made available in the form of an entry of the amounts due in an account opened for this purpose in the name of the Commission with the Treasury or with the body appointed by each Member State. In order to restrict the movements of funds to that which is necessary for the implementation of the budget, the Union must confine itself to drawing on those accounts solely to cover the Commission's cash requirements.

(13)

The Commission must have sufficient cash resources to comply with the regulatory requirements for payments concentrated in the opening months of the year, in particular for the specific needs of paying expenditure of the European Agricultural Guarantee Fund (EAGF) pursuant to Council Regulation (EC) No 73/2009 (6).

(14)	In accordance with the principle of sound financial management, care should be taken that the cost of recovery of interest due on own resources made available belatedly should not exceed the amount of the interest payable.

(15)	The reporting of write-off cases concerning established entitlements declared or deemed irrecoverable should be harmonised.

(16)	Close collaboration between Member States and the Commission will facilitate proper application of the financial rules relating to own resources.

(17)	In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (7).

(18)

The advisory procedure should be used for the adoption of implementing acts in order to establish detailed rules for the monthly statements of the accounts for the entitlements to traditional own resources and the quarterly statements of the separate accounts, as well as for the cases concerning irrecoverable amounts exceeding EUR 50 000, given the technical nature of those acts required for reporting purposes.

(19)	Regulation (EC, Euratom) No 1150/2000 should be repealed.

(20)	For reasons of consistency and taking account of Article 11 of Decision 2014/335/EU, Euratom, this Regulation should enter into force on the same day as that Decision and should apply from 1 January 2014,

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation lays down rules on making available to the Commission the own resources of the Union referred to in Article 2(1)(a), (b) and (c) of Decision 2014/335/EU, Euratom.

Article 2

Date of establishment of traditional own resources

1.   For the purpose of applying this Regulation, the Union's entitlement to the traditional own resources referred to in Article 2(1)(a) of Decision 2014/335/EU, Euratom shall be established as soon as the conditions provided for by the customs regulations have been met concerning the entry of the entitlement in the accounts and the notification of the debtor.

2.   The date of the establishment referred to in paragraph 1 shall be the date of entry in the accounting ledgers provided for by the customs regulations.

As regards the levies and other charges connected with the common organisation of the sugar market, the date of the establishment referred to in paragraph 1 shall be the date of notification under the sugar regulations.

Where that notification is not explicitly provided for, the date shall be the date of establishment by the Member States of the amounts due by the debtors, where necessary by way of advance payment or payment of balance.

3.   In disputed cases, the competent administrative authorities shall be deemed, for the purposes of the establishment referred to in paragraph 1, to be in a position to calculate the amount of the entitlement not later than when the first administrative decision is taken notifying the debtor of the debt or when judicial proceedings are brought if this occurs first.

The date of the establishment referred to in paragraph 1 shall be the date of the decision or of the calculation to be made following the initiation of those judicial proceedings.

4.   Paragraph 1 shall apply when a notification must be corrected.

Article 3

Conservation of supporting documents

Member States shall take all appropriate measures to ensure that the supporting documents concerning the establishment and making available of own resources are kept for at least three calendar years, counting from the end of the year to which these supporting documents refer.

The supporting documents relating to the statistical procedures and bases referred to in Article 3 of Regulation (EC, Euratom) No 1287/2003 shall be kept by the Member States until 30 September of the fourth year following the financial year in question. The supporting documents relating to the VAT-based own resource base shall be kept for the same period.

If verification pursuant to Article 2(3) of Regulation (EU, Euratom) No 608/2014 or Article 11 of Council Regulation (EEC, Euratom) No 1553/89 (8) of the supporting documents referred to in the first and second paragraphs shows that a correction is required, they shall be kept beyond the time limit provided for in the first paragraph for a sufficient period to permit the correction to be made and monitored.

Where a dispute between a Member State and the Commission concerning the obligation to make available a certain amount of own resources is settled by mutual agreement or by a decision of the Court of Justice of the European Union, the Member State shall transmit the supporting documents necessary for the financial follow-up to the Commission within two months after that settlement.

Article 4

Administrative cooperation

1.   Each Member State shall inform the Commission of the following:

(a)	the names of the departments or agencies responsible for establishing, collecting, making available and controlling own resources and the basic provisions relating to the role and operation of those departments and agencies;

(b)	the general provisions laid down by law, regulation or administrative action and those relating to accounting procedure concerning the establishment, collection, making available and control by the Commission of own resources;

(c)	the precise title of all administrative and accounting records in which are entered the established entitlements as specified in Article 2, in particular those used for drawing up the accounts provided for in Article 6.

The Commission shall be informed immediately of any change in these names or provisions.

2.   The Commission shall, at the request of a Member State, transmit to all Member States the information referred to in paragraph 1.

Article 5

Applicable rates

The uniform rate referred to in Article 2(1)(c) of Decision 2014/335/EU, Euratom shall be set in the course of the budgetary procedure and shall be calculated as a percentage of the sum of the forecast of the gross national income (GNI) of the Member States in such a manner that it fully covers that part of the budget not financed from the revenue referred to in Article 2(1)(a) and (b) of Decision 2014/335/EU, Euratom, from financial contributions to supplementary research and technological development programmes and other revenue.

That rate shall be expressed in the budget by a figure containing as many decimal places as is necessary to fully divide the GNI-based own resource among the Member States.

CHAPTER II

ACCOUNTS FOR OWN RESOURCES

Article 6

Entry in the accounts and reporting

1.   Accounts for own resources shall be kept by the Treasury of each Member State or by the body appointed by each Member State and broken down by type of resources.

2.   For own-resources accounting purposes, the month shall end no earlier than 1 p.m. on the last working day of the month during which establishment took place.

3.   Entitlements established in accordance with Article 2 shall, subject to the second subparagraph of this paragraph, be entered in the accounts at the latest on the first working day after the nineteenth day of the second month following the month during which the entitlement was established.

Established entitlements not entered in the accounts referred to in the first subparagraph, because they have not yet been recovered and no security has been provided, shall be shown in separate accounts within the period laid down in the first subparagraph. Member States may adopt this procedure where established entitlements for which security has been provided have been challenged and might, upon settlement of the disputes which have arisen, be subject to change.

The VAT-based own resource and the GNI-based own resource, taking into account the effect on these resources of the correction granted to the United Kingdom for budgetary imbalances and the gross reduction granted to Denmark, the Netherlands, Austria and Sweden, shall, however, be recorded in the accounts as specified in the first subparagraph as follows:

—	the twelfths referred to in Article 10(3) shall be recorded on the first working day of each month,

—

the balances referred to in Article 10(4) and (6) and the adjustments referred to in Article 10(5) and (7) shall be recorded annually, except for the particular adjustments referred to in the first indent of Article 10(5), which shall be recorded in the accounts on the first working day of the month following agreement between the Member State concerned and the Commission.

Established entitlements relating to levies and other charges connected with the common organisation of the sugar market shall be entered in the accounts referred to in the first subparagraph. If those entitlements are not then recovered within the time-limits set, the Member States may correct the entry and, by way of exception, enter the entitlements in the separate accounts.

4.   Each Member State shall send the Commission, within the time limits specified in paragraph 3:

(a)	a monthly statement of its accounts for the entitlements referred to in the first subparagraph of paragraph 3;

(b)	a quarterly statement of the separate accounts referred to in the second subparagraph of paragraph 3.

Together with those monthly statements the Member States concerned shall provide details or statements of deductions from own resources based on provisions relating to special-status territories.

Together with the final quarterly statement for a given year, Member States shall forward an estimate of the total amount of entitlements contained in the separate account at 31 December of that year for which recovery has become unlikely.

The Commission shall adopt implementing acts establishing detailed rules for the monthly and quarterly statements. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in paragraph 2 of Article 16.

Article 7

Accounting corrections

After 31 December of the third year following a given year, no further corrections shall be made to the sum of the monthly statements communicated by Member States under the first subparagraph of Article 6(4) for the year in question, except on points notified before this date either by the Commission or by the Member State concerned.

Article 8

Corrections of establishments

Corrections carried out under Article 2(4) shall be added to or subtracted from the total amount of established entitlements. They shall be recorded in the accounts referred to in the first and second subparagraph of Article 6(3) and in the statements referred to in Article 6(4) in accordance with the date of those corrections.

CHAPTER III

MAKING AVAILABLE OWN RESOURCES

Article 9

Treasury and accounting arrangements

1.   In accordance with the procedure laid down in Article 10, each Member State shall credit own resources to the account opened in the name of the Commission with its Treasury or the body it has appointed.

This account shall be kept in national currency and is free of charge.

2.   Member States or the bodies appointed by them shall transmit to the Commission, by electronic means:

(a)	on the working day on which the own resources are credited to the account of the Commission, a statement of account or a credit advice showing the entry of the own resources;

(b)	without prejudice to point (a), at the latest on the second working day following the crediting of the account, a statement of account showing the entry of the own resources.

3.   The amounts credited shall be accounted for in euro in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (9) (‘Financial Regulation’) and Commission Delegated Regulation (EU) No 1268/2012 (10).

Article 10

Determining amounts, timing for making available, adjustments

1.   After deduction of collection costs in accordance with Article 2(3) and Article 10(3) of Decision 2014/335/EU, Euratom, entry of the traditional own resources referred to in Article 2(1)(a) of that Decision shall be made at the latest on the first working day following the nineteenth day of the second month following the month during which the entitlement was established in accordance with Article 2 of this Regulation.

However, for entitlements shown in separate accounts under the second subparagraph of Article 6(3) of this Regulation, the entry must be made at the latest on the first working day following the nineteenth day of the second month following the month in which the entitlements were recovered.

2.   If necessary, Member States may be invited by the Commission to bring forward by one month the entry of resources other than the VAT-based own resource and the GNI-based own resource on the basis of the information available to them on the fifteenth of the same month.

Each entry brought forward shall be adjusted the following month when the entry mentioned in paragraph 1 is made. This adjustment shall entail the negative entry of an amount equal to that given in the entry brought forward.

3.   The VAT-based own resource and the GNI-based own resource, taking into account the effect on these resources of the correction granted to the United Kingdom for budgetary imbalances and of the gross reduction granted to Denmark, the Netherlands, Austria and Sweden, shall be credited on the first working day of each month, the amounts being one-twelfth of the relevant totals in the budget, converted into national currencies at the rates of exchange of the last day of quotation of the calendar year preceding the budget year, as published in the Official Journal of the European Union, C Series.

For the specific needs of paying expenditure of the EAGF pursuant to Regulation (EC) No 73/2009, and depending on the Union's cash position, Member States may be invited by the Commission to bring forward by one or two months in the first quarter of the financial year the entry of one-twelfth or a fraction of one-twelfth of the amounts in the budget for the VAT-based own resource and the GNI-based own resource, taking into account the effect on these resources of the correction granted to the United Kingdom for budgetary imbalances and of the gross reduction granted to Denmark, the Netherlands, Austria and Sweden.

After the first quarter, the monthly entry requested may not exceed one-twelfth of the VAT and GNI-based own resources, while remaining within the limit of the amounts entered in the budget for that purpose.

The Commission shall notify the Member States thereof in advance, no later than two weeks before the entry requested.

The eighth subparagraph concerning the amount to be entered in January each year and the ninth subparagraph applicable if the budget has not been finally adopted before the beginning of the financial year shall apply to these advance entries.

Any change in the uniform rate of the VAT-based own resource, in the rate of the GNI-based own resource, in the correction granted to the United Kingdom for budgetary imbalances and in its financing referred to in Article 4 and 5 of Decision 2014/335/EU, Euratom, and in the financing of the gross reduction granted to Denmark, the Netherlands, Austria and Sweden shall require the final adoption of an amending budget and shall give rise to readjustments of the twelfths which have been entered since the beginning of the financial year.

These readjustments shall be carried out when the first entry is made following the final adoption of the amending budget if it is adopted before the sixteenth of the month. Otherwise they shall be carried out when the second entry following final adoption is made. By way of derogation from Article 11 of the Financial Regulation, these readjustments shall be entered in the accounts in respect of the financial year of the amending budget in question.

Calculation of the twelfths for January of each financial year shall be based on the amounts provided for in the draft budget, referred to in Article 314(2) of the Treaty on the Functioning of European Union (TFEU) and converted into national currencies at the rates of exchange of the first day of quotation following 15 December of the calendar year preceding the budget year; the adjustment shall be made with the entry for the following month.

If the budget has not been finally adopted at the latest two weeks before the entry for January of the following financial year, the Member States shall enter on the first working day of each month, including January, one-twelfth of the amount of the VAT-based own resource, and the GNI-based own resource, taking into account the effect on these resources of the correction granted to the United Kingdom for budgetary imbalances and of the gross reduction granted to Denmark, the Netherlands, Austria and Sweden, entered in the last budget finally adopted; the adjustment shall be made on the first due date following final adoption of the budget if it is adopted before the sixteenth of the month. Otherwise, the adjustment shall be made on the second due date following final adoption of the budget.

4.   Each Member State shall, on the basis of the annual statement on the VAT-based own resource base provided for in Article 7(1) of Regulation (EEC, Euratom) No 1553/89, be debited with an amount calculated from the information contained in that statement by applying the uniform rate adopted for the previous financial year and credited with the 12 payments made during that financial year. However, each Member State's VAT-based own resource base to which that rate is applied may not exceed the percentage determined by Article 2(1)(b) of Decision 2014/335/EU, Euratom of its GNI, as referred to in the first subparagraph of Article 2(7) of that Decision. The Commission shall calculate the balance and shall inform the Member States in time for them to enter it in the account referred to in Article 9(1) of this Regulation on the first working day of December of the same year.

5.   Any corrections to the VAT-based own resource base under Article 9(1) of Regulation (EEC, Euratom) No 1553/89 shall give rise for each Member State concerned whose base, allowing for those corrections, does not exceed the percentages determined by Articles 2(1)(b) and 10(2) of Decision 2014/335/EU, Euratom to the following adjustments to the balance referred to in paragraph 4 of this Article:

—

the corrections under the first subparagraph of Article 9(1) of Regulation (EEC, Euratom) No 1553/89 made by 31 July shall give rise to a general adjustment to be entered in the account referred to in Article 9(1) of this Regulation on the first working day of December of the same year. However, a particular adjustment may be entered before that date if the Member State concerned and the Commission are in agreement;

—

where the measures which the Commission takes under the second subparagraph of Article 9(1) of Regulation (EEC, Euratom) No 1553/89 to correct the base lead to an adjustment of the entries in the account referred to in Article 9(1) of this Regulation, that adjustment shall be made on the date specified by the Commission pursuant to those measures.

The changes to GNI referred to in paragraph 7 of this Article shall also give rise to an adjustment of the balance of any Member State whose base, allowing for the corrections referred to in the first subparagraph of this paragraph, is capped at the percentages determined by Articles 2(1)(b) and 10(2) of Decision 2014/335/EU, Euratom.

The Commission shall inform the Member States of these adjustments in time for them to enter them in the account referred to in Article 9(1) on the first working day of December of the same year.

However, a particular adjustment may be entered at any time if the Member State concerned and the Commission are in agreement.

6.   On the basis of figures for aggregate GNI at market prices and its components from the preceding year, supplied by the Member States in accordance with Article 2(2) of Regulation (EC, Euratom) No 1287/2003, each Member State shall be debited with an amount calculated by applying to GNI the rate adopted for the previous financial year and credited with the payments made during that previous financial year. The Commission shall work out the balance and shall inform the Member States in time for them to enter it in the account referred to in Article 9(1) of this Regulation on the first working day of December of the same year.

7.   Any changes to the GNI of previous financial years pursuant to Article 2(2) of Regulation (EC, Euratom) No 1287/2003, subject to Article 5 thereof, shall give rise for each Member State concerned to an adjustment to the balance established pursuant to paragraph 6 of this Article. This adjustment shall be established in the manner laid down in the first subparagraph of paragraph 5 of this Article. The Commission shall inform the Member States of these adjustments so that they can enter them in the account referred to in Article 9(1) of this Regulation on the first working day of December of the same year. After 30 September of the fourth year following a given financial year, any changes to GNI shall no longer be taken into account, except on points notified within this time limit either by the Commission or by the Member State.

8.   The operations referred to in paragraphs 4 to 7 constitute modifications to revenue in respect of the financial year in which they occur.

The amount of revenue set out in the budget for the current financial year may be increased or reduced, by means of an amending budget, by the amount resulting from those operations in accordance with Article 1(2) of Regulation (EU, Euratom) No 608/2014.

9.   There shall be no subsequent revision of the financing of the gross reductions granted to Denmark, the Netherlands, Austria and Sweden in the event of modifications of the GNI data pursuant to Article 2(2) of Regulation (EC, Euratom) No 1287/2003.

Article 11

Opt-out adjustment

1.   Where, pursuant to the TFEU and its Protocols 21 and 22, a Member State does not take part in the financing of a specific Union action or policy, it shall be entitled to an adjustment, calculated in accordance with paragraph 2 of this Article, of the amount it has paid in own resources in respect of each year in which it has not taken part.

2.   The Commission shall calculate the adjustment during the year following the financial year concerned, at the same time as it determines the GNI balances provided for in Article 10 of this Regulation.

The calculation shall be made on the basis of the figures relating to the relevant financial year:

(a)	aggregate GNI at market prices and its components,

(b)	the budgetary outturn of operational expenditure corresponding to the measure or policy in question.

The adjustment shall be equal to the product of multiplying the total amount of the expenditure in question, with the exception of that financed by participating third countries, by the percentage that the GNI of the Member State entitled to the adjustment represents of the GNI of all Member States. The adjustment shall be financed by the participating Member States according to a scale determined by dividing their respective GNI by the GNI of all the participating Member States. For the purposes of calculating the adjustment, amounts shall be converted between the national currency and the euro at the exchange rate on the last day of quotation of the calendar year preceding the budget year concerned.

The adjustment for each relevant year shall be made only once and it shall be final in the event of subsequent modification of the GNI figure.

3.   The Commission shall inform the Member States in good time of the amount of the adjustment so that they can credit it to the account referred to in Article 9(1) of this Regulation on the first working day of December.

Article 12

Interest on amounts made available belatedly

1.   Any delay in making the entry in the account referred to in Article 9(1) shall give rise to the payment of interest by the Member State concerned.

However, recovery of amounts of interest below EUR 500 shall be waived.

2.   In the case of Member States belonging to the Economic and Monetary Union, the interest rate shall be equal to the rate as published in the Official Journal of the European Union, C series which the European Central Bank applied to its main refinancing operations, on the first day of the month in which the due date fell, increased by two percentage points.

This rate shall be increased by 0,25 of a percentage point for each month of delay. The increased rate shall be applied to the entire period of delay.

3.   In the case of Member States not belonging to the Economic and Monetary Union, the rate shall be equal to the rate applied on the first day of the month in question by the Central Banks for their main refinancing operations, increased by two percentage points, or, for the Member States for which the Central Bank rate is not available, the most equivalent rate applied on the first day of the month in question on the Member State's money market, increased by two percentage points.

This rate shall be increased by 0,25 of a percentage point for each month of delay. The increased rate shall be applied to the entire period of delay.

4.   For the payment of interest referred to in paragraph 1, Article 9(2) and (3) shall apply mutatis mutandis.

Article 13

Irrecoverable amounts

1.   Member States shall take all requisite measures to ensure that the amounts corresponding to the entitlements established under Article 2 are made available to the Commission as specified in this Regulation.

2.   Member States shall be released from the obligation to place at the disposal of the Commission the amounts corresponding to entitlements established under Article 2 which prove irrecoverable for either of the following reasons:

(a)	for reasons of force majeure;

(b)	for other reasons which cannot be attributed to them.

Amounts of established entitlements shall be declared irrecoverable by a decision of the competent administrative authority finding that they cannot be recovered.

Amounts of established entitlements shall be deemed irrecoverable, at the latest, after a period of five years from the date on which the amount has been established in accordance with Article 2 or, in the event of an administrative or judicial appeal, the final decision has been given, notified or published.

If part payment or payments have been received, the period of five years at maximum shall start from the date of the last payment made, where this does not clear the debt.

Amounts declared or deemed irrecoverable shall be definitively removed from the separate accounts referred to in the second subparagraph of Article 6(3). They shall be shown in an annex to the quarterly statement referred to in the first subparagraph of Article 6(4) and, where applicable, in the quarterly descriptions referred to in Article 5 of Regulation (EU, Euratom) No 608/2014.

3.   Within three months of the administrative decision mentioned in paragraph 2 of this Article or in accordance with the time limits referred to in that paragraph, Member States shall provide a report to the Commission with information on those cases where paragraph 2 of this Article has been applied provided the established entitlements involved exceed EUR 50 000.

That report shall include all the facts necessary for a full examination of the reasons referred to in paragraph 2(a) and (b) of this Article, which prevented the Member State concerned from making available the amounts in question, and the recovery measures the Member State took in the case or cases in question.

That report shall be made on a form established by the Commission. For that purpose the Commission shall adopt implementing acts. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in paragraph 2 of Article 16.

4.   The Commission shall, within six months from the receipt of the report provided for in paragraph 3, communicate its comments to the Member State concerned.

Where the Commission finds it necessary to request additional information, the six-month time-limit shall run from the date of receipt of the requested supplementary information.

CHAPTER IV

MANAGEMENT OF CASH RESOURCES

Article 14

Requirements on management of cash resources

1.   The Commission shall draw on the sums credited to the accounts referred to in Article 9(1) to the extent necessary to cover its cash resource requirements arising out of the implementation of the budget.

2.   If the cash resource requirements are in excess of the assets of the accounts, the Commission may draw in excess of the total of these assets subject to the availability of appropriations in the budget and within the limit of the own resources entered in the budget. In this event, it shall inform the Member States in advance of any foreseeable excess requirements.

3.   In the sole case of default under a loan contracted or guaranteed pursuant to Council regulations and decisions, in circumstances in which the Commission cannot activate other measures provided for by the financial arrangements applying to these loans in time to ensure compliance with the Union's legal obligations to the lenders, paragraphs 2 and 4 may provisionally be applied, irrespective of the conditions in paragraph 2, in order to service the Union's debts.

4.   The difference between the overall assets and the cash resource requirements shall be divided among the Member States, as far as possible, in proportion to the estimated budget revenue from each of them.

Article 15

Execution of payment orders

1.   The Member States, or the bodies appointed by them, shall execute the Commission's payment orders following the Commission's instructions and within not more than three working days of receipt. However, in the case of cash movement transaction, the Member States shall execute the orders within the period requested by the Commission.

2.   The Member States, or the bodies appointed by them, shall send to the Commission, by electronic means and on the second working day following the completion of each transaction at the latest, a statement of account showing the related movements.

CHAPTER V

FINAL PROVISIONS

Article 16

Committee procedure

1.   The Commission shall be assisted by the Advisory Committee on Own Resources referred to in Article 7 of Regulation (EU, Euratom) No 608/2014. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.   Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Article 17

Transitional provision on interest rate

The rate provided for in Article 11 of Regulation (EC, Euratom) No 1150/2000 in its version before the entry into force of Council Regulation (EC, Euratom) No 2028/2004 (11) shall continue to apply for the calculation of interest for late payment where the due date falls before 1 December 2004.

Article 18

Repeal

1.   Regulation (EC, Euratom) No 1150/2000 is repealed.

2.   References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex II.

Article 19

Entry into force

This Regulation shall enter into force on the day of entry into force of Decision 2014/335/EU, Euratom.

It shall apply from 1 January 2014.

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(1)  Opinion No 2/2012 of 20 March 2012 (OJ C 112, 18.4.2012, p. 1).

(2)  Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 2007/436/EC, Euratom on the system of the European Communities own resources (OJ L 130, 31.5.2000, p. 1).

(3)  Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union (see page 29 of this Official Journal).

(4)  Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union (see page 105 of this Official Journal).

(5)  Council Regulation (EC, Euratom) No 1287/2003 of 15 July 2003 on the harmonisation of gross national income at market prices (OJ L 181, 19.7.2003, p. 1).

(6)  Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 (OJ L 30, 31.1.2009, p. 16).

(7)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

(8)  Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform arrangements for the collection of own resources accruing from value added tax (OJ L 155, 7.6.1989, p. 9).

(9)  Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union (OJ L 298, 26.10.2012, p. 1).

(10)  Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1).

(11)  Council Regulation (EC, Euratom) No 2028/2004 of 16 November 2004 amending Regulation (EC, Euratom) No 1150/2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources (OJ L 352, 27.11.2004, p. 1).

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7.6.2014

EN

Official Journal of the European Union

L 168/53

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COMMISSION DELEGATED REGULATION (EU) No 610/2014

of 14 February 2014

on establishing a derogation from Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the rules for participation and dissemination in ‘Horizon 2020 — the Framework Programme for Research and Innovation (2014-2020)’ with regard to the ECSEL Joint Undertaking

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

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

Having regard to Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013 laying down the rules for participation and dissemination in ‘Horizon 2020 — the Framework Programme for Research and Innovation (2014-2020)’ (1), and in particular Article 1(3)(d) thereof,

Whereas:

(1)

Regulation (EU) No 1291/2013 of the European Parliament and of the Council (2) establishes the Framework Programme for Research and Innovation (2014-2020) (Horizon 2020) and provides for involvement of the Union in public-private partnerships, including in joint undertakings, in key areas where research and innovation may contribute to Union's wider competitiveness goals and help tackle societal challenges.

(2)

Participation in indirect actions under Horizon 2020 should comply with Regulation (EU) No 1290/2013. However, in order to take into account the specific operating needs of joint undertakings established pursuant to Article 187 of the Treaty in the area of electronic components and systems, the power to adopt acts in accordance with Article 290 of the Treaty was delegated to the Commission for the duration of Horizon 2020 with a view to allowing funding bodies in that area to apply different reimbursement rates for the Union-provided funding in cases where one or more Member States co-fund a participant or an action.

(3)	The ECSEL Joint Undertaking has been set up by Council Regulation (EC) No 561/2014 (3) for a period up to 31 December 2024 in order to implement a Joint Technology Initiative in the field of Electronic Components and Systems.

(4)	Specific operating needs have been identified as regards the co-funding by Member States and the applicability of national funding rules.

(5)

In view of those operating needs, a derogation from the single reimbursement rates referred to in Article 28(3) of Regulation (EU) No 1290/2013 in cases where one or more Member States co-fund a participant or an action is necessary in order to allow a reimbursement rate of Union funding by type of participant and type of action. The reimbursement rate should be dependent on the type of participant and the type of action in order to facilitate cross-border cooperation in particular with small and medium-sized enterprises and non-profit legal entities, whilst achieving the optimal level of leverage effect on private investment,

HAS ADOPTED THIS REGULATION:

Article 1

By way of derogation from Article 28(3) of Regulation (EU) No 1290/2013, the ECSEL Joint Undertaking may apply different reimbursement rates for the Union funding within an action dependent upon the type of the participant and the type of activity in actions where one or more Member States co-fund a participant or the action.

Article 2

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

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(1)  OJ L 347, 20.12.2013, p. 81.

(2)  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 — the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

(3)  Council Regulation (EU) No 561/2014 of 6 May 2014 establishing the ECSEL Joint Undertaking (OJ L 169, 7.6.2014, p. 152).

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7.6.2014

EN

Official Journal of the European Union

L 168/55

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COMMISSION DELEGATED REGULATION (EU) No 611/2014

of 11 March 2014

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the support programmes for the olive-oil and table-olives sector

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 30 thereof,

Whereas:

(1)

Article 29 of Regulation (EU) No 1308/2013 lays down rules relating to the work programmes to support the olive-oil and table-olives sector. Those rules should be supplemented in order to guarantee that Union aid is utilised efficiently and effectively. The new rules should replace those laid down by Commission Regulation (EC) No 867/2008 (2), which should be repealed as a result.

(2)

So that the work programmes can be implemented effectively, it should be laid down that Union funding will be allocated in proportion to their duration, while ensuring that the annual expenditure for implementing approved work programmes does not exceed the amount laid down in Article 29(2) of Regulation (EU) No 1308/2013.

(3)

In order to ensure the overall consistency of the activities of recognised producer organisations, recognised associations of producer organisations and recognised interbranch organisations (hereinafter ‘the recipient organisations’), the types of measure eligible for Union funding and the types of activity not eligible should be specified. The procedure for submitting the work programmes and the criteria for selecting them should also be specified. The Member States concerned should be allowed to lay down additional eligibility requirements so that the measures can be better adapted to national conditions in the olive sector.

(4)

In the light of experience, the Union funding thresholds should be set at least for the areas of improving the environmental impact of olive cultivation, improving the competitiveness of olive cultivation through modernisation and traceability, certification and protection of the quality of olive oil and table olives by means of, in particular, quality control of the olive oils sold to end consumers, so as to ensure that at least a minimum number of measures are implemented in sensitive priority areas.

(5)

In order to ensure that the work programmes are implemented in accordance with Article 29 of Regulation (EU) No 1308/2013 and that the system of support for the recipient organisations is subject to effective administrative management, procedures should be laid down for processing approval applications and selecting and approving work programmes.

(6)

Article 231 of Regulation (EU) No 1308/2013 stipulates that all multiannual programmes adopted before 1 January 2014 must continue to be governed by the relevant provisions of Council Regulation (EC) No 1234/2007 (3) until those programmes come to an end. It should therefore be laid down that Regulation (EC) No 867/2008 will continue to apply to the work programmes which are ongoing when this Regulation enters into force,

HAS ADOPTED THIS REGULATION:

Article 1

Scope

This Regulation lays down rules supplementing Regulation (EU) No 1308/2013 as regards the measures eligible for Union funding, the minimum allocation by the Member States of Union funding to specific areas and the criteria and procedures for approving work programmes in the olive-oil and table-olives sector.

Article 2

Union funding

The Member States shall ensure that the Union funding provided for in Article 29 of Regulation (EU) No 1308/2013 is allocated in proportion to the work programmes' duration provided for in that Article, while ensuring that the annual expenditure on implementing the approved work programmes does not exceed the amount stipulated in paragraph 2 of that Article.

Article 3

Measures eligible for Union funding

1.   The measures eligible for the Union funding provided for in Article 29(1) of Regulation (EU) No 1308/2013 shall be the following:

(a)

in the area of market follow-up and management in the olive-oil and table-olives sector: (i) collecting data on the sector and the market, in accordance with the specifications relating to method, geographical representativeness and accuracy laid down by the competent national authority; (ii) carrying out studies on subjects related to the other measures provided for in the work programmes of the recipient organisations concerned;

(b)

in the area of improving the environmental impact of olive cultivation: (i) collective operations to maintain olive groves which are of high environmental value and risk being abandoned, in accordance with the requirements laid down on the basis of objective criteria by the competent national authority, in particular as regards the regional areas which may be eligible and the area and minimum number of olive producers who must be involved in order to make the operations in question effective; (ii) developing good agricultural practices for olive cultivation, based on environmental criteria adapted to local conditions, as well as disseminating those practices among olive growers and following up their practical application; (iii) practical demonstrations of alternatives to chemical products for combating olive fly, as well as seasonal measures to monitor its development; (iv) practical demonstrations of olive cultivation techniques aimed at protecting the environment and maintaining the landscape, such as organic farming, low-input farming, protecting the soils by limiting erosion, and integrated farming; (v) measures to protect rustic and endangered varieties;

(c)

in the area of improving the competitiveness of olive cultivation through modernisation: (i) improving irrigation systems and cultivation techniques; (ii) replacing unproductive olive trees by new olive trees; (iii) training producers in new cultivation techniques; (iv) training and communication measures;

(d)

in the area of improving the production quality of olive oil and table olives: (i) improving conditions for growing, harvesting, delivering and storing olives prior to processing, in accordance with the technical specifications laid down by the competent national authority; (ii) varietal improvement of olive groves on individual holdings, provided that they contribute to the objectives of the work programmes; (iii) improving conditions for storing olive oil and table olives, use of the residues from olive-oil and table-olive production and improving conditions for bottling olive oil; (iv) technical assistance for production, the olive-processing industry, businesses producing table olives, mills and packaging relating to aspects linked to product quality; (v) setting up and improving laboratories for the analysis of virgin olive oils; (vi) training panels of tasters to carry out organoleptic assessments of virgin olive oils and table olives;

(e)

in the area of traceability, certification and protection of the quality of olive oil and table olives by means of, in particular, quality control of the olive oils sold to end consumers: (i) setting up and managing systems which make it possible to trace products from the olive grower through to packaging and labelling, in accordance with the specifications laid down by the competent national authority; (ii) setting up and managing quality certification systems, based on a system of risk analysis and checks on critical points, the specification for which satisfies the technical criteria adopted by the competent national authority; (iii) setting up and managing systems to monitor compliance with standards regarding the authenticity, quality and marketing of the olive oil and table olives placed on the market, in accordance with the technical specifications laid down by the competent national authority;

(f)

in the area of disseminating information on the measures carried out by recipient organisations to improve the quality of olive oil and table olives: (i) disseminating information on the measures carried out by recipient organisations in the areas referred to in points (a) to (e); (ii) setting up and maintaining a website on the measures carried out by recipient organisations in the areas referred to in points (a) to (e).

2.   As regards the measures provided for in paragraph 1 points (c)(ii) and (d)(ii), Member States shall ensure that appropriate steps are taken to recover the investment or its residual value if the member who owns the specific holding leaves the producer organisation.

3.   Member States may adopt additional conditions specifying the eligible measures, provided that these do not render their presentation or implementation impossible.

4.   Outsourcing the measures of a producer organisation or an association of producer organisations in accordance with Article 155 of Regulation (EU) No 1308/2013 may be authorised for the measures referred to in paragraph 1 points (b), (c) and (d), subject to the following conditions:

(a)

the conclusion of a written contract between the producer organisation or the association of producer organisations and another entity for carrying out the measure concerned. The producer organisation or the association of producer organisations shall nevertheless remain responsible for the carrying-out of that measure, as well as for the overall managerial control and general supervision of the said written contract;

(b)

in order to enable effective managerial control and supervision, the contract referred to at point (a): (i) shall allow the producer organisation or the association of producer organisations to issue binding instructions and shall contain provisions allowing the organisation or association to terminate the contract if the service provider does not comply with the terms and conditions of the said contract; (ii) shall lay down detailed terms and conditions, including the declaration requirements and the time limits which enable the producer organisation or the association of producer organisations to evaluate and properly monitor the outsourced measures.

Article 4

Activities and costs not eligible for Union funding

1.   The following activities shall not be eligible for Union funding under Article 29 of Regulation (EU) No 1308/2013:

(a)	activities which are receiving Union funding other than that provided for in Article 29 of Regulation (EU) No 1308/2013;

(b)	activities aimed directly at increasing production and enhancing storage or processing capacity;

(c)	activities related to the purchase or storage of olive oil or table olives or having an impact on their prices;

(d)	activities related to the commercial promotion of olive oil or table olives;

(e)	activities related to scientific research, except for the dissemination of research results to olive businesses;

(f)	activities that could distort competition in the other economic activities of the recipient organisations;

(g)	activities related to combating olive fly, except for the measures provided for in Article 3(1) point (b)(iii).

2.   In order to ensure compliance with the rule laid down in paragraph 1 point (a), recipient organisations shall undertake in writing, on their own behalf and that of their members, to forgo any funding under another Union support scheme for measures which are in fact funded under Article 29 of Regulation (EU) No 1308/2013.

3.   In carrying out the measures referred to in Article 3, costs arising from the following shall not be eligible for Union funding:

(a)	repayments of loans, in particular in the form of annual instalments, taken out for a measure carried out in full or in part before the beginning of the work programme;

(b)	payments to recipient organisations participating in meetings and training programmes to compensate for loss of income;

(c)	expenditure on administrative and staff costs borne by Member States and organisations receiving EAGF support under Regulation (EU) No 1306/2013 of the European Parliament and of the Council (4);

(d)	the purchase of land which has not been built on;

(e)	the purchase of second-hand equipment;

(f)	expenditure related to leasing contracts, including taxes, interest and insurance costs;

(g)	rental where this is preferred to purchase and the operating costs of the assets rented.

4.   Member States may lay down further conditions specifying the ineligible activities and costs referred to in paragraphs 1 and 3.

Article 5

Allocation of Union funding

1.   In each Member State at least 20 % of the Union funding available under Article 29 of Regulation (EU) No 1308/2013 shall be allocated to the area referred to in Article 3(1)(b), at least 15 % of the said Union funding shall be allocated to the area referred to in Article 3(1)(c) and at least 10 % of the said Union funding shall be allocated to the area referred to in Article 3(1)(e).

2.   If the minimum percentage laid down in paragraph 1 is not fully used up in the areas referred to therein, the amounts not used up may not be allocated to other areas but shall be returned to the Union budget.

Article 6

Selection and eligibility criteria for work programmes

1.   Member States shall select the work programmes referred to in Article 29(1) of Regulation (EU) No 1308/2013 on the basis of the following criteria:

(a)	the overall quality of the programme and its consistency with the guiding principles and priorities of the olive sector in the regional area concerned, as laid down by the Member State;

(b)	the financial credibility and the sufficiency of the financial resources of the recipient organisations for implementing the proposed measures;

(c)	the size of the regional area concerned by the work programme;

(d)	the diversity of the economic conditions in the regional area concerned which have been taken into account by the work programme;

(e)	the existence of several areas and the size of the financial contribution from the recipient organisations;

(f)	the quantitative and qualitative efficiency indicators enabling evaluation during implementation and ex-post evaluation of the programme drawn up by the Member State;

(g)	the evaluation of programmes which may have been carried out previously by the recipient organisations within the framework of Commission Regulation (EC) No 1334/2002 (5), Commission Regulation (EC) No 2080/2005 (6) or Regulation (EC) No 867/2008.

Member States shall take account of the distribution of applications among the different types of recipient organisations in each regional area.

2.   Member States shall reject work programmes which are incomplete or contain inaccurate information or include any of the ineligible activities specified in Article 4.

Article 7

Start and approval of work programmes

1.   The first three-year work programme period referred to in Article 29(1) of Regulation (EU) No 1308/2013 shall start on 1 April 2015. The following periods shall start every three years on 1 April.

2.   Each recipient organisation accredited under Regulation (EU) No 1308/2013 may submit an approval application for one single work programme by a date to be laid down by the Member State but no later than 15 February of each year.

3.   The approval application shall contain the following information:

(a)	details of the recipient organisation concerned;

(b)	information relating to the selection criteria laid down in Article 6(1);

(c)	a description of and the justification and implementation timetable for each proposed measure;

(d)	the expenditure plan, broken down by measure and area as referred to in Article 3(1), with details for each 12-month period from the date of approval of the work programme, distinguishing between the overheads, which must not exceed 5 % of the total, and the other main types of costs;

(e)

the funding plan for each area referred to in Article 3(1), with details for each 12-month period at most from the date of approval of the work programme, indicating in particular the Union funding applied for and, where applicable, the financial contributions from recipient organisations and the contribution from the Member State;

(f)	a description of the quantitative and qualitative efficiency indicators enabling evaluation during implementation and ex-post evaluation of the programme on the basis of the general principles laid down by the Member State;

(g)	proof that a security has been provided in accordance with Commission Implementing Regulation (EU) No 282/2012 (7);

(h)	an application for an advance;

(i)	the declaration stipulated in Article 4(2);

(j)	for recipient organisations, details of the recipient organisations responsible for actually carrying out the subcontracted activities contained in their programmes;

(k)	a declaration that the measures provided for in the recipient organisations' programmes do not form the subject of another application for Union funding under this Regulation.

4.   Final approval of a work programme may be subject to the incorporation of amendments deemed necessary by the Member State. In that case, the recipient organisation concerned shall communicate its agreement within 15 days of the amendments being notified.

Member States shall ensure that the Union funding is allocated within each category of recipients, taking into account the value of the olive oil produced or marketed by the members of the recipient organisations.

No later than 15 March each year, each Member State shall inform the recipient organisations of the work programmes which have been approved and, where applicable, of the work programmes to which it is granting the corresponding national funding.

If a proposed work programme is not selected, the Member State shall immediately release the security referred to in paragraph 3 point (g).

Article 8

Repeal

Regulation (EC) No 867/2008 is hereby repealed. It shall, however, continue to apply to work programmes which are ongoing when this Regulation enters into force.

Article 9

Entry into force

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

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(1)  OJ L 347, 20.12.2013, p. 671.

(2)  Commission Regulation (EC) No 867/2008 of 3 September 2008 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards operators' organisations in the olive sector, their work programmes and the financing thereof (OJ L 237, 4.9.2008, p. 5).

(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)  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 (OJ L 347, 20.12.2013, p. 549).

(5)  Commission Regulation (EC) No 1334/2002 of 23 July 2002 laying down detailed rules for the application of Council Regulation (EC) No 1638/98 as regards the work programmes of operators organisations in the olive sector for the marketing years 2004/2005 (OJ L 195, 24.7.2002, p. 16).

(6)  Commission Regulation (EC) No 2080/2005 of 19 December 2005 laying down detailed rules for the application of Council Regulation (EC) No 865/2004 as regards operators' organisations in the olive sector, their work programmes and the financing thereof (OJ L 333, 20.12.2005, p. 8).

(7)  Commission Implementing Regulation (EU) No 282/2012 of 28 March 2012 laying down common detailed rules for the application of the system of securities for agricultural products (OJ L 92, 30.3.2012, p. 4).

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7.6.2014

EN

Official Journal of the European Union

L 168/62

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COMMISSION DELEGATED REGULATION (EU) No 612/2014

of 11 March 2014

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council by amending Commission Regulation (EC) No 555/2008 as regards new measures under the national support programmes in the wine sector

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 points (b), (c), (e), (f) and (h) of Article 53 thereof,

Whereas:

(1)

Regulation (EU) No 1308/2013 has repealed and replaced Council Regulation (EC) No 1234/2007 (2) and contains, in Section 4 of Chapter II of Part II of Title I, rules on national support programmes in the wine sector. While most of the rules laid down in that Section ensure the continuation of the rules applicable to the national support programmes in the wine sector under Regulation (EC) No 1234/2007, certain new rules were also laid down. Those new rules introduce three new elements, namely the promotion of wine in Member States as a parallel sub-measure to the existing promotion on wine on third country markets, a measure of innovation in the wine sector, as well as an extension of the measure on the restructuring and conversion of vineyards to cover the replanting of vineyards following mandatory grubbing-up for health or phytosanitary reasons. The rules need to be established concerning the content of those new elements.

(2)

Commission Regulation (EC) No 555/2008 (3) lays down rules as regards the national support programmes in the wine sector provided for in Regulation (EC) No 1234/2007. In order to supplement the new rules laid down in Regulation (EU) No 1308/2013, the appropriate provisions should be introduced in Regulation (EC) No 555/2008.

(3)

Article 45(1)(a) of Regulation (EU) No 1308/2013 provides for specific support for the promotion of wine in Member States. It is necessary to establish eligibility criteria under this new sub-measure so that it may be included in the national support programmes. Such criteria should be consistent with similar measures in other schemes, and in particular those on information and the promotion of agricultural products on the internal market provided for in Council Regulation (EC) No 3/2008 (4).

(4)	In order to ensure the implication of the wine sector which has the necessary structure and expertise, it is necessary to specify that a public body cannot be the only beneficiary of the sub-measure of for the promotion of wine in the Member States.

(5)	The promotion of wine in the Member States must comply with Union competition rules. Therefore, it should be specified that the information conveyed through the sub-measure for the promotion of wine may not be brand-oriented or encourage the consumption of any specific wines.

(6)

In order to inform and protect consumers, it should be specified that any information for consumers as regards the impact on health of a product promoted in the Member States needs to have a recognised scientific basis and need to be accepted by the competent national authorities responsible for public health in the Member State where the operations are carried out.

(7)	The duration of the operations carried out in the Member States in Member States should also be laid down and it should be in line with the duration of the information and promotion programmes financed under Regulation (EC) No 3/2008.

(8)

Taking into account the specific nature of the measure for the promotion of wine in the Member States and in the light of the experience gained during the implementation of the promotion of wine in third countries under the national support programmes and of the scheme for the information and promotion of agricultural products on the internal market, rules for the eligibility of personnel costs and overheads incurred by the beneficiary in the execution of such measures should be established.

(9)

In order to facilitate the implementation of operations supported under the sub-measure for the promotion of wine in the Member States and taking into account the duration of those operations, it should be possible for payments to be made in advance of an execution of an entire operation or a part of it, provided that a security is lodged to ensure that the operation is executed.

(10)

In order to avoid the double funding of operations eligible under Article 45 of Regulation (EU) No 1308/2013, paragraphs 1 and 2 of Article 2 of Regulation (EC) No 3/2008 and the promotion measures funded under Article 16 of Regulation (EU) No 1305/2013 of the European Parliament and the Council (5), Member States should introduce clear demarcation criteria in the national support programmes.

(11)

Point (c) of Article 46(3) of Regulation (EU) No 1308/2013 provides for the extension of support measure relating to the restructuring and conversion of vineyards to the replanting of vineyards following mandatory grubbing-up for health or phytosanitary reasons. It is therefore necessary to provide for rules to enable the inclusion of such activity in the national support programmes and to fix a ceiling for expenditure. In order to ensure consistency with Union phytosanitary legislation, support should only be possible where such measures comply with Council Directive 2000/29/EC (6). Furthermore, the expenditure for the replanting of vineyards should be limited to 15 % of the total annual expenditure in each Member State in order to ensure that most of the funds spent for the measure of restructuring and conversion are used to improve the competitiveness of wine producers.

(12)

In order to avoid the double funding of operations of replanting of vineyards for health or phytosanitary reasons eligible under Article 46(3)(c) of Regulation (EU) No 1308/2013 the operation supported under Article 22, 23 and 24 of Directive 2000/29/EC and under Article 18(1) of Regulation (EU) No 1305/2013 Member States should introduce clear demarcation criteria in the national support programmes.

(13)

Article 51 of Regulation (EU) No 1308/2013 provides for the specific support measure for innovation in the wine sector in order to encourage the development of new products, processes and technologies concerning the products referred to in Part II of Annex VII to that Regulation and to increase the marketability and competitiveness of Union grapevine products. It is necessary to establish rules concerning the eligible operations under that new measure so that it may be included in the national support programmes.

(14)	To ensure the quality of the presented projects and the transfer of knowledge from the research to the wine sector, research and development centres should participate to the project supported by the beneficiaries of innovation measure.

(15)

The types of eligible investments under the innovation measure should also be set out. In particular it should be specified that simple replacement investments shall not be eligible expenditure so as to make sure that the aim of the measure, i.e. the development of new products, processes and technologies, is met by these supports.

(16)

In order to avoid the double financing of operations eligible under Article 51 of Regulation (EU) No 1308/2013, Articles 36, 61, 62 and 63 of Regulation (EU) No 1305/2013 and Regulation (EU) No 1291/2013 of the European Parliament and the Council (7) Member States should introduce clear demarcation criteria in the national support programmes.

(17)	Regulation (EC) No 555/2008 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 555/2008 is amended as follows:

(1)

In Title II, Chapter II is amended as follows: (a) Section 1 is amended as follows: (i) the Title of the Section is replaced by the following: ‘Section 1 Promotion’; (ii) the following heading is inserted before Article 4: ‘Sub-section 1 Promotion in third countries’; (iii) Article 5a is deleted; (iv) the following sub-sections 2 and 3 are added: ‘Sub-section 2 Promotion in the Member States Article 5b Eligible operations 1.   The sub-measure of the promotion of Union wines referred to in Article 45(1)(a) of Regulation (EU) No 1308/2013 shall consist of information for consumers as regards: (a) responsible consumption of wine and the risk associated with alcohol consumption; (b) the Union scheme of protected designations of origin and protected geographical indications, in particular conditions and effects, in relation to the specific quality, reputation or other characteristics of wine due to its particular geographical environment or origin. 2.   The information activities referred to in paragraph 1 may be carried out through information campaigns and through participation in events, fairs and exhibitions of national or Union importance. 3.   Operations shall be eligible under the promotion measure provided that: (a) they are clearly defined, describing the information activities and including the estimated cost; (b) they comply with the legislation applicable in the Member State where they are carried out; (c) the beneficiaries have resources to ensure that the measure is implemented effectively. 4.   The beneficiaries shall be professional organisations, producer organisations, association of producer organisations, inter-branch organisations or public bodies. However, a public body shall not be the sole beneficiary of a promotion measure. Article 5c Characteristics of the information 1.   The information referred to in Article 5b(1) shall be based on the intrinsic qualities of wine or its characteristics and shall not be brand-oriented or encourage the consumption of wine on the grounds of its specific origin. However, where information is disseminated for the purpose of Article 5b(1)(b), the origin of a wine may be indicated as part of the information operation. 2.   All information concerning the effects of wine consumption on health and behaviour shall be based on generally accepted scientific data and shall be accepted by the national authority responsible for public health in the Member State where the operations are carried out. Article 5d Duration of the support The support for promotion operations shall last no longer than three years. Article 5e Advance payments Member States may provide for support to be advanced before any operation has been implemented, provided that the beneficiary has lodged a security. Article 5f Demarcation with rural development and promotion of agricultural products Member States shall introduce clear demarcation criteria in their national support programmes to ensure that no support is granted under Article 45(1)(a) of Regulation (EU) No 1308/2013 for the operations supported under other Union instruments. Sub-section 3 Common rules Article 5g Eligible costs 1.   Personnel costs of the beneficiary referred to in Articles 4 and 5b shall be considered eligible if they are incurred in relation to the preparation, implementation or follow-up of the particular supported promotion project, including the evaluation. This includes the costs of the personnel contracted by the beneficiary specifically on the occasion of the promotion project and the costs corresponding to the share of the working hours invested in the promotion project by permanent staff of the beneficiary. Member States shall only accept personnel costs as eligible if the beneficiaries provide supporting documents setting out the details of the work actually carried out in relation to the particular supported promotion project. 2.   Overheads incurred by the beneficiary shall be considered eligible if: (a) they are related to the preparation, implementation or follow-up of the project, and; (b) they do not exceed 4 % of the actual costs of implementing the projects. Member States may decide whether those overheads are eligible on the basis of a flat rate or on the basis of the presentation of supporting documents. In the latter case, the calculation of those costs shall be based on the accounting principles, rules and methods used in the beneficiary's country where the beneficiary is established.’ (b) The following Article 6a is inserted: ‘Article 6a Replanting for health or phytosanitary reasons 1.   Replanting of a vineyard following a mandatory grubbing-up for health or phytosanitary reasons on the instruction of a competent authority of a Member State referred to in Article 46(3)(c) of Regulation (EU) No 1308/2013 shall be eligible provided that the Member State: (a) provides for that possibility in its national support programme; (b) communicates to the Commission in the framework of the submission of the national support programme or its modification the list of harmful organisms covered by that measure as well as a summary of a related strategic plan established by the competent authority of the Member State concerned; (c) complies with Council Directive 2000/29/EC (8). 2.   The expenditure for replanting for health or phytosanitary reasons shall not exceed 15 % of the total annual expenditure on restructuring and conversion of vineyards in the Member State concerned. 3.   Member States shall introduce clear demarcation criteria in their national support programmes to ensure that no support is granted under Article 46(3)(c) of Regulation (EU) No 1308/2013 for operations supported under other Union instruments. (8)  Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community (OJ L 169, 10.7.2000, p. 1).’." (c) The following Section 6a is inserted: ‘Section 6a Innovation Article 20a Eligible operations 1.   The innovation in the wine sector referred to in Article 51 of Regulation (EU) No 1308/2013 shall consist of the development of the following: (a) new products related to the wine sector or by-products of wine, (b) new processes and technologies necessary for the development of grape wine products. 2.   The eligible costs shall concern tangible and intangible investments for knowledge-transfer, preparatory operations and pilot studies. 3.   The beneficiaries of support for innovation shall be producers of the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013 and wine producer organisations. Research and development centres shall participate in the project supported by the beneficiaries. Interbranch organisations may be associated to the project. 4.   Beneficiaries of support for innovation may request the payment of an advance from the paying agencies where that option is included in the national support programme. The payment of the advance shall be subject to a requirement to lodge a security. 5.   Simple replacement investments shall not be eligible expenditure. Article 20b Demarcation with rural development and other legal regimes and financial instruments Member States shall introduce clear demarcation criteria in their national support programmes to ensure that no support is granted under Article 51 of Regulation (EU) No 1308/2013 for operations supported under other Union instruments.’

Article 2

Entry into force

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

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(1)  OJ L 347, 20.12.2013, p. 671.

(2)  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).

(3)  Commission Regulation (EC) No 555/2008 of 27 June 2008 laying down detailed rules for implementing Council Regulation (EC) No 479/2008 on the common organisation of the market in wine as regards support programmes, trade with third countries, production potential and on controls in the wine sector (OJ L 170, 30.6.2008, p. 1).

(4)  Council Regulation (EC) No 3/2008 of 17 December 2007 on information provision and promotion measures for agricultural products on the internal market and in third countries (OJ L 3, 5.1.2008, 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)  Council Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community (OJ L 169, 10.7.2000, p. 1).

(7)  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 — The Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

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7.6.2014

EN

Official Journal of the European Union

L 168/68

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COMMISSION IMPLEMENTING REGULATION (EU) No 613/2014

of 3 June 2014

approving a minor amendment to the specification for a name entered in the register of protected designations of origin and protected geographical indications [Pagnotta del Dittaino (PDO)]

THE EUROPEAN COMMISSION,

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

Having regard to 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 (1), and in particular the second subparagraph of Article 53(2) thereof,

Whereas:

(1)

Pursuant to the first subparagraph of Article 53(1) of Regulation (EU) No 1151/2012, the Commission has examined Italy's application for the approval of an amendment to the specification for the protected designation of origin ‘Pagnotta del Dittaino’, registered under Commission Regulation (EC) No 516/2009 (2).

(2)	The purpose of the application is to amend the specification by clarifying the method of production and to update the legal references.

(3)

The Commission has examined the amendment in question and concluded that it is justified. Since the amendment is minor within the meaning of the third subparagraph of Article 53(2) of Regulation (EC) No 1151/2012, the Commission may approve it without following the procedure set out in Articles 50 to 52 of the Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

The specification for the protected designation of origin ‘Pagnotta del Dittaino’ is hereby amended in accordance with Annex I to this Regulation.

Article 2

Annex II to this Regulation contains the consolidated Single Document setting out the main points of the specification.

Article 3

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

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(1)  OJ L 343, 14.12.2012, p. 1.

(2)  OJ L 155, 18.6.2009, p. 7.

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7.6.2014

EN

Official Journal of the European Union

L 168/73

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COMMISSION IMPLEMENTING REGULATION (EU) No 614/2014

of 6 June 2014

amending Regulation (EC) No 555/2008 as regards the application of certain support measures in the wine sector

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 points (a), (b), (c), (e) and (f) of Article 54 thereof,

Whereas:

(1)

Regulation (EU) No 1308/2013 has repealed and replaced Council Regulation (EC) No 1234/2007 (2) and contains, in Section 4 of Chapter II of Title I of Part II, rules on national support programmes in the wine sector. While most of the rules laid down in that Section ensure the continuation of the rules applicable to the national support programmes in the wine sector under Regulation (EC) No 1234/2007, some new rules are also included. Those rules introduce new elements, namely a sub-measure of the measure of promotion, concerning promotion of wine in Member States, a measure of innovation in the wine sector as well as an extension of the measure on restructuring and conversion of vineyards to cover replanting of vineyards following mandatory grubbing-up for health or phytosanitary reasons. Rules for the implementation of those elements should be laid down.

(2)

Commission Regulation (EC) No 555/2008 (3) lays down rules as regards national support programmes in the wine sector provided for in Regulation (EC) No 1234/2007. In order to implement the new rules laid down in Regulation (EU) No 1308/2013, the appropriate provisions should be introduced in Regulation (EC) No 555/2008.

(3)

Article 3(2) of Regulation (EC) No 555/2008 should allow Member States to modify their operational programmes and align them with the new elements introduced by Regulation (EU) No 1308/2013. For this purpose, Member States should be allowed to modify their operational programmes an additional time after 30 June 2014, taking into consideration the dates of adoption of the Commission Delegated Regulation (EU) No 612/2014 (4) and of this Regulation.

(4)

Rules should be laid down concerning the selection of information projects and regarding the preference to be granted, when selecting the projects on the internal market. The selection procedure for promotion of wines in the Member States should be coherent with the procedure for promotion of wines on third-country markets as laid down in Article 5 of Regulation (EC) No 555/2008, but it should also take into account the particular objectives and geographical scope of this sub-measure.

(5)

Article 19 of Regulation (EC) No 555/2008 provides for the financial management of the investments measure. Those rules should also apply to the measure of innovation in the wine sector. In particular, to allow for a better use of the funds, it should be possible to pay the support after the execution of only certain of the operations foreseen in the application concerned while making sure that all the remaining operations will be completed. Moreover, it is appropriate to fix the maximum ceiling for advance payments similar to the one established for investments.

(6)	Article 37b of Regulation (EC) No 555/2008 requests that the beneficiaries provide information related to the advances granted in accordance with certain provisions of that Regulation. This obligation should also apply to the measure of innovation introduced by Regulation (EU) No 1308/2013.

(7)

Annexes I to VIII, Annex VIIIa and VIIIc to Regulation (EC) No 555/2008 set out the forms to be filled in by the Member States concerning the national support programmes, in particular, for the purposes of the submission of the support programmes, their revision and the corresponding financial planning as well as for the submission of reports and evaluations. Those Annexes should be amended in order to reflect the introduction, in Section 4 of Chapter II of Title I of Part II of Regulation (EU) No 1308/2013, of new provisions concerning the content, evaluation, cost and control.

(8)	Regulation (EC) No 555/2008 should be amended accordingly.

(9)	The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for the Common Organisation of Agricultural Markets,

HAS ADOPTED THIS REGULATION:

Article 1

Amendment of Regulation (EC) No 555/2008

Regulation (EC) No 555/2008 is amended as follows:

(1)

in Article 3, paragraph 2 is replaced by the following: ‘2.   Modifications in respect of support programmes shall not be submitted more than twice per financial year, by 1 March and 30 June, except in cases of emergency measures due to natural disasters. The modified programmes shall be submitted to the Commission with, where appropriate: (a) updated versions of the support programme in the form set out in Annex I and of the financial table in the form set out in Annex IV; (b) the reasons for the proposed changes. By way of derogation from the first subparagraph, the deadlines set out in that subparagraph do not apply in 2014 where the modifications of the programme follow the new rules introduced by Regulation (EU) No 1308/2013 of the European Parliament and the Council (5). (5)  Regulation (EU) No 1308/2013 of the European Parliament and the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products (OJ L 347, 20.12.2013, p. 671).’;"

(2)

in subsection 2 of Section 1 of Chapter II of Title II the following Article is added: ‘Article 5fa Selection procedure 1.   Member States shall lay down the application procedure, which shall in particular provide rules on: (a) verification of compliance with the requirements and criteria set out in Articles 5b and 5c; (b) deadlines for the presentation of application and for the examination of the suitability of each proposed action; (c) conclusion of contracts including possible standard forms, provision of securities and arrangements for the payment of advances; (d) evaluating any given supported action including the appropriate indicators. 2.   Member States shall select the application in particular on the basis of the following criteria: (a) consistency between the strategies proposed and the objectives set; (b) the quality of the proposed measures; (c) their likely impact and success in raising consumers awareness about the Union system of protected designation of origin and protected geographical indications or about responsible consumption of wine and the risk associated with alcohol consumption; (d) assurances that any operator involved is effective and has access to the required technical capacity and that the cost of the measure which he plans to carry out himself is not in excess of the normal market rates. 3.   Having examined the applications, Member States shall select those offering the best value for money. Preference shall be given to operations: (a) concerning several Member States; (b) concerning several administrative or wine regions; (c) concerning several protected designations of origin or protected geographical indications. 4.   Two or more Member States may decide to select a joint promotion operation. They shall undertake to contribute to the financing and agree on administrative collaboration procedures to facilitate the monitoring, implementation and checking of the joint promotion operation. 5.   Where Member States grant national aids for promotion, they shall communicate them in the relevant part of Annexes I, V, VII, VIII and VIIIc to this Regulation.’;

(3)

in Section 6a, the following Article is added: ‘Article 20c Financial management 1.   Support shall be paid once it is ascertained that either a single operation or all the operations covered by the support application, according to the choice made by the Member State for the management of the measure, have been implemented and controlled on the spot. Where support is normally payable only after implementation of all the operations, by way of derogation from the first subparagraph, support shall be paid for single operations implemented if the remaining operations could not be carried out due to force majeure or exceptional circumstances as referred to in Article 2 of Regulation (EU) No 1306/2013 of the European Parliament and the Council (6). If checks show that an overall operation covered by the support application has not been fully implemented for reasons other than force majeure or exceptional circumstances as referred to in Article 2 of Regulation (EU) No 1306/2013 and where support has been paid after single operations which are part of the overall operation covered by the support application, Member States shall decide to recover the aid paid. 2.   Beneficiaries of support for innovation may request the payment of an advance from the competent paying agencies if this option is included in the national support programme. The amount of the advances shall not exceed 20 % of the public aid related to the investment in innovation, and its payment shall be subject to the establishment of a bank guarantee or an equivalent guarantee corresponding to 110 % of the amount of the advance. However, in the case of investments in innovation for which the individual decision to grant support is taken in the financial years 2014 or 2015, the amount of the advances may be increased up to 50 % of the public aid related to that investment. For the purposes of Commission Implementing Regulation (EU) No 282/2012 (7) the obligation shall be to spend the total amount advanced in the implementation of the operation concerned two years after its payment. The guarantee shall be released when the competent paying agency establishes that the amount of actual expenditure corresponding to the public aid related to the innovation exceeds the amount of the advance. (6)  Regulation (EU) No 1306/2013 of the European Parliament and the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy (the horizontal regulation) (OJ L 347, 20.12.2013, p. 549)." (7)  Commission Implementing Regulation (EU) No 282/2012 of 28 March 2012 laying down common detailed rules for the application of the system of securities for agricultural products (OJ L 92, 30.3.2012, p. 4).’;"

(4)

Article 37b is amended as follows: (a) paragraph 1 is replaced by the following: ‘1.   Where advances are granted in accordance with Articles 5(7), 5e, 9(2), 19(2), 20a(4) and 24(3), beneficiaries are requested to provide for each project annually to the paying agencies the following information: (a) costs statements justifying by measure the use of the advances until 15 October, and; (b) a confirmation by measure of the balance of unused advances remaining on 15 October. Member States shall define in their national rules the date of transmission of this information in order for it to be included in the current annual accounts of the paying agencies referred to in Article 6 of Regulation (EC) No 885/2006 within the deadline laid down in Article 7(2) of that Regulation.’; (b) paragraph 3 is replaced by the following: ‘3.   For the purposes of Article 18(2) of Implementing Regulation (EU) No 282/2012, the evidence of final entitlement to be produced shall be the last costs statement and a confirmation of the balance referred to in paragraph 1. Concerning advances under Articles 9(2), 19(2) and 20a(4)of this Regulation, the last costs statement and confirmation of the balancee referred to in paragraphs 1 and 2 shall be provided by the end of the second financial year after their payment.’;

(5)

in Article 77, paragraph 5 is replaced by the following: ‘5.   Article 24(1), (2), (3) and (6) and Article 26(1) and (2) of Commission Regulation (EC) No 65/2011 (8) shall apply mutatis mutandis to the measures provided for in Articles 50 and 51 of Regulation (EU) No 1308/2013. (8)  Commission Regulation (EU) No 65/2011 of 27 January 2011 laying down detailed rules for the implementation of Council Regulation (EC) No 1698/2005, as regards the implementation of control procedures as well as cross-compliance in respect of rural development support measures (OJ L 25, 28.1.2011, p. 8).’;"

(6)	Annexes I to VIIIa and Annex VIIIc are amended in accordance with the Annex to this Regulation.

Article 2

Entry into force

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

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(1)  OJ L 347, 20.12.2013, p. 671.

(2)  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).

(3)  Regulation (EC) No 555/2008 of 27 June 2008 laying down detailed rules for implementing Council Regulation (EC) No 479/2008 on the common organisation of the market in wine as regards support programmes, trade with third countries, production potential and on controls in the wine sector (OJ L 170, 30.6.2008, p. 1).

(4)  Commission Delegated Regulation (EU) No 612/2014 of 11 March 2014 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council by amending Commission Regulation (EC) No 555/2008 as regards new measures under the national support programmes in the wine sector (see page 62 of this Official Journal).

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