16.12.2006   

EN

Official Journal of the European Union

L 358/1

(1)

Regulation (EC) No 3223/94 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in the Annex thereto.

(2)

In compliance with the above criteria, the standard import values must be fixed at the levels set out in the Annex to this Regulation,

16.12.2006   

EN

Official Journal of the European Union

L 358/3

(1)

Regulation (EC) No 994/98 empowers the Commission to declare, in accordance with Article 87 of the Treaty, that, under certain conditions, aid to small and medium-sized enterprises is compatible with the common market and not subject to the notification requirement of Article 88(3) of the Treaty.

(2)

Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (2) does not apply to activities linked to the production, processing or marketing of products listed in Annex I to the Treaty.

(3)

The Commission has applied Articles 87 and 88 of the Treaty to small and medium-sized enterprises active in the production, processing and marketing of agricultural products in numerous decisions and has also stated its policy, most recently in the Community guidelines for State aid in the agriculture sector (3). In the light of the Commission's considerable experience in applying those Articles to small and medium-sized enterprises active in the production of agricultural products, it is appropriate, with a view to ensuring efficient supervision and simplifying administration without weakening Commission monitoring, that the Commission should also make use of the powers conferred by Regulation (EC) No 994/98 for small and medium-sized enterprises active in the production of agricultural products, insofar as Article 89 of the Treaty has been declared applicable to such products.

(4)

Over the coming years, agriculture will have to adapt to new realities and further changes in terms of market evolution, market policy and trade rules, consumer demand and preferences and the enlargement of the Community. These changes will affect not only agricultural markets but also local economies in rural areas in general. Rural development policy should aim at restoring and enhancing the competitiveness of rural areas and, therefore, contribute to the maintenance and creation of employment in those areas.

(5)

Small and medium-sized enterprises play a decisive role in job creation and, more generally, act as a factor of social stability and economic drive. However, their development may be limited by market imperfections. They often have difficulties in obtaining capital or credit, given the risk-shy nature of certain financial markets and the limited guarantees that they may be able to offer. Their limited resources may also restrict their access to information, notably regarding new technology and potential markets. Having regard to those considerations, the purpose of the aid exempted by this Regulation should be to facilitate the development of the economic activities of small and medium-sized enterprises, provided that such aid does not adversely affect trading conditions to an extent contrary to the common interest. These developments should be encouraged and supported by simplification of the existing rules, as far as they apply to small and medium-sized enterprises.

(6)

The production, processing and marketing of agricultural products in the Community is largely dominated by small and medium-sized enterprises. However, there are considerable differences between the structure of primary production, on the one hand, and processing and marketing of agricultural products, on the other hand. The processing and marketing of agricultural products would often appear similar to that of industrial products. Therefore, it would appear more appropriate to have a different approach for processing and marketing of agricultural products and include those activities in the rules for industrial products. Consequently, and contrary to the approach taken in Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products (4), it appears useful to set up an exemption regulation targeted at the specific needs of primary agricultural production.

(7)

Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (5) and Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (6) have introduced specific State aid rules for certain rural development measures receiving Member State support without any Community financing.

(8)

This Regulation should exempt any aid that meets all the requirements it lays down, and any aid scheme, provided that any aid that could be granted under such scheme meets all the requirements of this Regulation. With a view to ensuring efficient supervision and simplifying administration without weakening Commission monitoring, aid schemes and individual grants outside any aid scheme should contain an express reference to this Regulation.

(9)

In view of the need to strike the appropriate balance between minimising distortions of competition in the aided sector and the objectives of this Regulation, it should not exempt individual grants which exceed a fixed maximum amount, whether or not made under an aid scheme exempted by this Regulation.

(10)

This Regulation should not exempt export aid or aid contingent upon the use of domestic over imported products. Such aid may be incompatible with the Community's international obligations. Aid towards the costs of participation in trade fairs or of studies or consultancy services needed for the launch of a new or existing product on a new market should not normally constitute export aid.

(11)

In order to eliminate differences that might give rise to distortions of competition, to facilitate coordination between different Community and national initiatives concerning small and medium-sized enterprises and for reasons of administrative clarity and legal certainty, the definition of ‘small and medium-sized enterprises’ used in this Regulation should be that set out in Annex I to Regulation (EC) No 70/2001.

(12)

In accordance with established practice of the Commission, and with a view to ensuring that aid is proportionate and limited to the amount necessary, thresholds should normally be expressed in terms of aid intensities in relation to a set of eligible costs, rather than in terms of maximum aid amounts.

(13)

In order to determine whether or not aid is compatible with the common market pursuant to this Regulation, it is necessary to take into consideration the aid intensity and thus the aid amount expressed as a grant equivalent. The calculation of the grant equivalent of aid payable in several instalments requires the use of market interest rates prevailing at the time of grant. With a view to a uniform, transparent, and simple application of the State aid rules, the market rates for the purposes of this Regulation should be deemed to be the reference rates periodically fixed by the Commission on the basis of objective criteria and published in the Official Journal of the European Union and on the Internet.

(14)

In order to ensure transparency and effective monitoring, this Regulation should apply only to aid measures which are transparent. These are aid measures in which it is possible to calculate precisely the gross grant equivalent as a percentage of eligible expenditure ex ante without a need to undertake a risk assessment (for example, grants, interest rate subsidies and capped fiscal measures). Public loans should be considered to be transparent provided that they are backed by normal security and do not involve abnormal risk and are therefore not considered to contain a State guarantee element. In principle, aid measures involving State guarantees or public loans with a State guarantee element should not be considered as transparent. However, such aid measures should be considered as transparent if, before the implementation of the measure, the methodology used to calculate the aid intensity of the State guarantee has been accepted by the Commission following notification to the Commission after adoption of this Regulation. The methodology will be assessed by the Commission in line with the Notice on the application of Article 87 and 88 of the EC Treaty to State aid in the Forms of Guarantees (7). Public participation and aid comprised in risk capital measures should not be considered as transparent aid. Aid measures which are not transparent should always be notified to the Commission. Notifications of non-transparent aid measures will be assessed by the Commission in particular in the light of the criteria set out in the Community guidelines for State aid in the agriculture and forestry sector 2007-2013.

(15)

In accordance with established practice of the Commission for the evaluation of State aid in the agricultural sector, no differentiation between small enterprises and medium-sized enterprises is necessary. For certain types of aid, the establishment of maximum amounts of aid which a beneficiary may receive is appropriate.

(16)

Aid ceilings should be fixed, in the light of the Commission's experience, at a level that strikes the appropriate balance between minimising distortions of competition in the aided sector and the objective of facilitating the development of the economic activities of small and medium-sized enterprises in the agriculture sector. In the interests of coherence with Community-financed support measures, the ceilings should be harmonised with those fixed in Regulation (EC) No 1257/1999 and in Regulation (EC) No 1698/2005.

(17)

It is appropriate to establish further conditions that should be fulfilled by any aid scheme or individual aid exempted by this Regulation. Any restrictions on production or limitations of Community support under the common market organisations should be taken into account. Having regard to Article 87(3)(c) of the Treaty, aid should not have the sole effect of continuously or periodically reducing the operating costs which the beneficiary would normally have to bear, and should be proportionate to the handicaps that have to be overcome in order to secure the socio-economic benefits deemed to be in the Community interest. Unilateral State aid measures which simply seek to improve the financial situation of producers but which in no way contribute to the development of the sector, and in particular aids which are granted solely on the basis of price, quantity, unit of production or unit of the means of production are considered to constitute operating aids which are incompatible with the common market. Furthermore, such aids are also likely to interfere with the mechanisms of the common organisations of the markets. It is therefore appropriate to limit the scope of this Regulation to certain types of aid.

(18)

This Regulation should exempt aid to small and medium-sized agricultural holdings (farms) regardless of location. Investment and job creation can contribute to the economic development of less favoured regions and areas as referred to in Article 36(a)(i), (ii) and (iii) of Regulation (EC) No 1698/2005. Small and medium-sized agricultural holdings (farms) in those areas suffer from both the structural disadvantage of the location and the difficulties deriving from their size. It is therefore appropriate that small and medium-sized enterprises in such areas should benefit from higher ceilings.

(19)

Because of the risk of distortions resulting from targeted investment aid and in order to offer farmers freedom to decide about products invested in, investment aid exempted under this Regulation should not be limited to specific agricultural products. This condition should not prevent a Member State from excluding certain agricultural products from such aid or aid schemes, notably where no normal market outlets can be found. Also, certain types of investment should per se be excluded from this Regulation.

(20)

Where aid is granted to adapt to newly introduced standards at Community level, Member States should not be able to lengthen the adaptation period for farmers by delaying implementation of such rules. Therefore, the date from which new legislation can no longer be considered new should be clearly set out.

(21)

Certain Council Regulations in the field of agriculture provide for specific authorisations for the payment of aid by Member States, often in combination with or in addition to Community financing. However, those provisions usually do not provide for an exemption from the duty to notify under Article 88 of the Treaty, insofar as such aid fulfils the conditions of Article 87(1) of the Treaty. Since the conditions for such aids are clearly specified in those Regulations, and/or there is a duty to communicate such measures to the Commission under the special provisions of those Regulations, no further and separate notification under Article 88(3) of the Treaty is necessary in order to allow for an assessment of these measures by the Commission. For reasons of legal certainty, a reference to those provisions should be included in this Regulation, and therefore notification of those measures under Article 88 of the Treaty should not be necessary, insofar as it can be ascertained in advance that such aid is exclusively granted to small and medium-sized enterprises.

(22)

In order to ensure that the aid is necessary and acts as an incentive to develop certain activities, this Regulation should not exempt aid for activities in which the beneficiary would already engage under market conditions alone. No aid should be granted retroactively in respect of activities which have already been undertaken by the beneficiary.

(23)

This Regulation should not exempt aid cumulated with other State aid, including aid granted by national, regional or local authorities, with public support granted within the framework of Regulation (EC) No 1698/2005 or with Community assistance, in relation to the same eligible costs, when such cumulation exceeds the thresholds fixed in this Regulation. Aid exempted under this Regulation should not be cumulated with de minimis support within the meaning of Commission Regulation (EC) No 1860/2004 of 6 October 2004 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid in the agriculture and fisheries sectors (8) in respect of the same eligible expenditure or investment project, if such cumulation would result in an aid intensity exceeding that fixed by this Regulation.

(24)

In order to ensure transparency and effective monitoring, in accordance with Article 3 of Regulation (EC) No 994/98, it is appropriate to establish a standard format in which Member States should provide the Commission with summary information whenever, in accordance with this Regulation, an aid scheme is implemented or individual aid is granted outside such a scheme, with a view to publication in the Official Journal of the European Union. For the same reasons, it is appropriate to establish rules concerning the records that Member States should keep regarding the aid exempted by this Regulation. For the purposes of the annual report to be submitted to the Commission by Member States, it is appropriate for the Commission to establish its specific requirements. In view of the wide availability of the necessary technology, the summary information and the annual report should be in computerised form.

(25)

Failure by a Member State to comply with the reporting obligations established in this Regulation may make it impossible for the Commission to perform its monitoring task under Article 88(1) of the Treaty and, in particular, to assess whether the cumulative economic effect of the aids exempted under this Regulation is such as to adversely affect trading conditions to an extent contrary to the common interest. The need to evaluate the cumulative effect of State aid is particularly high where the same beneficiary may receive aid granted by several sources, as is increasingly the case in the field of agriculture. It is therefore of primary importance that the Member State rapidly submits appropriate information before implementing aid under this Regulation.

(26)

Aid to companies active in the processing and marketing of agricultural products should be covered by the rules governing aid to small and medium-sized enterprises in other sectors laid down in Regulation (EC) No 70/2001. Regulation (EC) No 70/2001 should therefore be amended accordingly.

(27)

State aid exempted under Regulation (EC) No 1/2004 should continue to be exempted if it fulfils all the conditions of this Regulation.

(28)

It is appropriate to lay down transitional provisions for aid which was granted before the entry into force of this Regulation and was not notified in breach of the obligation in Article 88(3) of the Treaty.

(29)

This Regulation is without prejudice to the possibility for Member States to notify aid to small and medium-sized enterprises active in the production of agricultural products. Such notifications will be assessed by the Commission in the light of this Regulation and on the basis of the Community guidelines for State aid in the agriculture and forestry sector 2007-2013. Notifications pending on the date of entry into force of this Regulation should be assessed first in the light of this Regulation and, if the conditions it lays down are not fulfilled, then on the basis of the Community guidelines for State aid in the agriculture and forestry sector 2007-2013.

(30)

In the light of the Commission's experience in this area, and in particular the frequency with which it is generally necessary to revise State aid policy, it is appropriate to limit the period of application of this Regulation. Should this Regulation expire without being extended, aid schemes already exempted by this Regulation should continue to be exempt for a further period of six months, in order to give Member States time to adapt,

(a)

aid to export-related activities, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity;

(b)

aid contingent upon the use of domestic over imported goods.

1.

‘aid’ means any measure fulfilling all the criteria laid down in Article 87(1) of the Treaty;

2.

‘agricultural product’ means:

3.

‘processing of agricultural products’ means any operation on an agricultural product resulting in a product which is also an agricultural product, except on farm activities necessary for preparing an animal or plant product for the first sale;

4.

‘marketing of agricultural products’ means holding or display with a view to sale, offering for sale, delivery or any other manner of placing on the market, except the first sale by a primary producer to resellers or processors and any activity preparing a product for such first sale; a sale by a primary producer to final consumers shall be considered as marketing if it takes place in separate premises reserved for that purpose;

5.

‘small and medium-sized enterprises’ (SME) means small and medium-sized enterprises as defined in Annex I to Regulation (EC) No 70/2001;

6.

‘gross aid intensity’ means the aid amount expressed as a percentage of the project's eligible costs. All figures used shall be taken before any deduction for direct taxation. Where aid is awarded in a form other than a grant, the aid amount shall be the grant equivalent of the aid. Aid payable in several instalments shall be discounted to its value at the moment of granting. The interest rate to be used for discounting purposes and for calculating the aid amount in a soft loan shall be the reference rate applicable at the time of grant;

7.

‘quality product’ is a product fulfilling the criteria to be defined pursuant to Article 32 of Regulation (EC) No 1698/2005;

8.

‘adverse climatic event which can be assimilated to a natural disaster’ means weather conditions such as frost, hail, ice, rain or drought which destroy more than 30 % of the average of annual production of a given farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry;

9.

‘less favoured areas’ means areas as defined by Member States on the basis of Article 17 of Regulation (EC) No 1257/1999;

10.

‘investment made to comply with newly introduced minimum standards’ means:

11.

‘young farmers’ means producers of agricultural products fulfilling the criteria laid down in Article 22 of Regulation (EC) No 1698/2005;

12.

‘producer group’ means a group which is set up for the purpose of jointly adapting, within the objectives of the common market organisations, the production and output of its members to market requirements, in particular by concentrating supply;

13.

‘producer association’ means an association which consists of recognised producer groups and pursues the same objectives on a larger scale;

14.

‘fallen stock’ means animals which have been killed by euthanasia with or without definite diagnosis or have died (including stillborn and unborn animals) on a farm or any premise or during transport, but have not been slaughtered for human consumption;

15.

‘TSE and BSE test costs’ means all costs, including those for test kits, taking, transporting, testing, storing and destruction of samples necessary for tests undertaken in accordance with Annex X, Chapter C to Regulation (EC) No 999/2001 of the European Parliament and of the Council (11);

16.

‘enterprises in difficulty’ means enterprises considered in difficulty within the meaning of the Community guidelines on State aid for rescuing and restructuring firms in difficulty (12);

17.

‘replacement investment’ means an investment that simply replaces an existing building or machine, or parts of it, by a new up-to date building or machine, without expanding the production capacity by at least 25 % or without fundamentally changing the nature of production or the technology involved. Neither the complete demolition of a farm building at least 30 years old and replacement by an up-to date building, nor the fundamental renovation of a farm building, are considered as replacement investments. Renovation is considered as fundamental when its cost amounts to at least 50 % of the value of the new building.

18.

‘transparent aid’ means aid measures in which it is possible to calculate precisely the gross grant equivalent as a percentage of eligible expenditure ex ante without need to undertake a risk assessment (for example measures which use grants, interest rate subsidies, capped fiscal measures).

(a)

any aid that could be awarded under such scheme fulfils all the conditions set out in this Regulation;

(b)

the scheme contains an express reference to this Regulation, citing its title and publication reference in the Official Journal of the European Union;

(c)

the summary information provided for in Article 20(1) has been submitted.

(a)

50 % of eligible investments in less favoured areas or in areas referred to in Article 36(a)(i), (ii) and (iii) of Regulation (EC) No 1698/2005, as designated by Member States in accordance with Articles 50 and 94 of that Regulation;

(b)

40 % of eligible investments in other regions;

(c)

60 % of eligible investments in less-favoured areas or in areas referred to in Article 36(a)(i), (ii) and (iii) of Regulation (EC) No 1698/2005, as designated by Member States in accordance with Articles 50 and 94 of that Regulation, and 50 % in other regions, in the case of investments made by young farmers within five years of setting up;

(d)

75 % of eligible investments in the outermost regions and the small Aegean Islands within the meaning of Council Regulation (EEC) No 2019/93 (13);

(e)

75 % of eligible investments in regions referred to in point (a) and 60 % in other regions where investments result in extra costs relating to the protection and improvement of the environment, the improvement of hygiene conditions of livestock enterprises or the welfare of farm animals. This increase may only be granted for investments which go beyond the minimum Community requirements in force, or for investments made to comply with newly introduced minimum standards. The increase must be limited to the extra eligible costs necessary and must not apply in the case of investments which result in an increase in production capacity.

(a)

reduction of production costs;

(b)

improvement and re-deployment of production;

(c)

improvement in quality;

(d)

preservation and improvement of the natural environment, or the improvement of hygiene conditions or animal welfare standards.

(a)

the construction, acquisition or improvement of immovable property;

(b)

the purchase or lease-purchase of machinery and equipment, including computer software up to the market value of the asset;

(c)

general costs linked to expenditure under points (a) and (b), such as architects, engineers and consultation fees, feasibility studies, the acquisition of patents and licences.

(a)

the purchase of production rights, animals and annual plants;

(b)

the planting of annual plants;

(c)

drainage works or irrigation equipment and irrigation works, unless such investment leads to a reduction of previous water use of at least 25 %;

(d)

simple replacement investments.

(a)

the criteria set out in Article 23 of Regulation (EC) No 1698/2005 and any rules adopted by the Commission to implement that Article must be fulfilled;

(b)

the cessation of commercial farming activities must be permanent and definitive.

(a)

producer groups or producer associations involved in the production of agricultural products; and/or

(b)

associations of producers responsible for the supervision of the use of geographical indications and designations of origin or quality marks in conformity with Community law.

(a)

the gross aid intensity must not exceed 100 %;

(b)

the aid shall be granted in kind by means of subsidised services and must not involve direct payments of money to producers.

(a)

compensation must be calculated only in relation to:

(b)

the gross aid intensity must not exceed 100 %;

(c)

the aid must be limited to losses caused by diseases for which an outbreak has been formally recognised by public authorities.

(a)

any amount received under insurance schemes; and

(b)

costs not incurred because of the disease, which would otherwise have been incurred.

(a)

the result of multiplying the quantity of product produced in the year of the adverse climatic event by the average selling price obtained during that year;

(b)

the result of multiplying the average annual quantity produced in the preceding three-year period (or a three-year average based on the preceding five-year period, excluding the highest and lowest entry) by the average selling price obtained.

(a)

any amount received under insurance schemes; and

(b)

costs not incurred because of the adverse climatic event.

(a)

80 % of the cost of insurance premiums, where the policy specifies that it provides cover only against losses caused by adverse climatic events which can be assimilated to natural disasters;

(b)

50 % of the cost of insurance premiums, where the policy specifies that it provides cover against:

(a)

up to 100 % of the costs of market research activities, product conception and design, including aid granted for the preparation of applications for recognition of geographical indications and designations of origin or certificates of specific character in accordance with the relevant Community regulations;

(b)

up to 100 % of the costs of the introduction of quality assurance schemes such as ISO 9000 or 14000 series, systems based on hazard analysis and critical control points (HACCP), traceability systems, systems to assure respect of authenticity and marketing norms or environmental audit systems;

(c)

up to 100 % of the costs of training personnel to apply schemes and systems as referred to in point (b);

(d)

up to 100 % of the costs of the charges levied by recognised certifying bodies for the initial certification of quality assurance and similar systems;

(e)

up to 100 % of the costs of compulsory control measures undertaken pursuant to Community or national legislation by or on behalf of the competent authorities, unless Community legislation requires enterprises to bear such costs;

(f)

up to the amounts laid down in the Annex to Regulation (EC) No 1698/2005 for support concerning measures referred to in Article 32 of that Regulation.

(a)

concerning education and training of farmers and farm workers:

(b)

concerning farm replacement services, the actual costs of the replacement of a farmer, the farmer's partner, or a farm worker, during illness and holidays;

(c)

concerning consultancy services provided by third parties, the fees for services which do not constitute a continuous or periodic activity nor relate to the enterprise's usual operating expenditure, such as routine tax consultancy services, regular legal services, or advertising;

(d)

concerning the organisation of and participation in forums to share knowledge between businesses, competitions, exhibitions and fairs:

(e)

provided that individual companies, brands or origin are not named:

Aid may also be granted to cover the costs referred to in point (e) if the origin of products covered by Council Regulation (EC) No 510/2006 (16) and by Articles 54 to 58 of Council Regulation (EC) No 1493/1999 (17) is indicated, provided that the references to the origin correspond exactly to those references which have been registered by the Community.

(f)

publications such as catalogues or websites presenting factual information about producers from a given region or producers of a given product, provided the information and presentation is neutral and that all producers concerned have equal opportunities to be represented in the publication.

(a)

aid at a rate of up to 100 % to cover the administrative costs of the establishment and maintenance of herd books;

(b)

aid at a rate of up to 70 % of the costs of tests performed by or on behalf of third parties, to determine the genetic quality or yield of livestock, with the exception of controls undertaken by the owner of the livestock and routine controls of milk quality;

(c)

until 31 December 2011, aid at a rate of up to 40 % for the introduction at farm level of innovative animal breeding techniques or practices, with the exception of costs relating to the introduction or performance of artificial insemination;

(d)

aid at a rate of up to 100 % of costs of removal of fallen stock, and 75 % of the costs of destruction of such carcasses; alternatively, aid up to an equivalent amount towards the costs of premiums paid by farmers for insurance covering the costs of removal and destruction of fallen stock;

(e)

aid at a rate of up to 100 % for costs of removal and destruction of carcasses where the aid is financed through fees or through compulsory contributions destined for the financing of the destruction of such carcasses, provided that such fees or contributions are limited to and directly imposed on the meat sector;

(f)

aid of 100 % for the costs of removal and destruction of fallen stock where there is an obligation to perform TSE tests on the fallen stock concerned;

(g)

aid at a rate of up to 100 % towards the costs of TSE tests.

(a)

aid granted by Member States fulfilling all the conditions laid down in Council Regulation (EC) No 1255/1999 (18), in particular Article 14(2) thereof;

(b)

aid granted by Member States fulfilling all the conditions laid down in Council Regulation (EC) No 1782/2003 (19), in particular Article 87, Article 107(3) and the first subparagraph of Article 125(5) thereof;

(c)

aid granted by Member States in accordance with Article 15(6) of Council Regulation (EC) No 2200/96 (20).

(a)

the aid scheme must have been set up and published in accordance with this Regulation;

(b)

an application for the aid must have been properly submitted to the competent authority concerned;

(c)

the application must have been accepted by the competent authority concerned in a manner which obliges that authority to grant the aid, clearly indicating the amount of aid to be granted or how this amount will be calculated; such acceptance by the competent authority may only be made if the budget available for the aid or aid scheme not exhausted.

1.

In Article 1(2), point (a) is replaced by the following:

2.

Article 2 is amended as follows:

the following points (k) to (n) are added:

3.

In Article 4, the following paragraph 7 is added:

‘7.   Where the investment concerns the processing and marketing of agricultural products listed in Annex I to the Treaty, the gross aid intensity may not exceed:

4.

In Annex II, the following is added after ‘Other manufacturing’, at the same level as ‘All manufacturing’:

‘ Processing and marketing of agricultural products (25)

16.12.2006   

EN

Official Journal of the European Union

L 358/22

(1)

Commission Regulation (EC) No 1623/2000 of 25 July 2000 laying down detailed rules for implementing Regulation (EC) No 1493/1999 on the common organisation of the market in wine with regard to market mechanisms (2), lays down, among other things, detailed rules for disposing of stocks of alcohol obtained from distillation under Articles 35, 36 and 39 of Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organisation of the market in wine (3) and referred to in Articles 27, 28 and 30 of Regulation (EC) No 1493/1999 and held by the intervention agencies.

(2)

A tendering procedure for the sale of wine alcohol for exclusive use as bioethanol in the fuel sector in the Community should be organised in accordance with Article 92 of Regulation (EC) No 1623/2000 with a view to reducing Community stocks of wine alcohol and ensuring the continuity of supplies to firms approved under that Article.

(3)

Since 1 January 1999, in accordance with Council Regulation (EC) No 2799/98 of 15 December 1998 establishing agrimonetary arrangements for the euro (4), the selling price and securities must be expressed, and payments made, in euro.

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine,

(a)

one lot with the number 82/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(b)

one lot with the number 83/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(c)

one lot with the number 84/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(d)

one lot with the number 85/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(e)

one lot with the number 86/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(f)

one lot with the number 87/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(g)

one lot with the number 88/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(h)

one lot with the number 89/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(i)

one lot with the number 90/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(j)

one lot with the number 91/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(k)

one lot with the number 92/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(l)

one lot with the number 93/2006 EC for a quantity of 50 000 hectolitres of alcohol at 100 % vol.;

(m)

one lot with the number 94/2006 EC for a quantity of 53 380,74 hectolitres of alcohol at 100 % vol.;

(n)

one lot with the number 95/2006 EC for a quantity of 32 182 hectolitres of alcohol at 100 % vol.

(a)

proof that a tendering security of EUR 4 per hectolitre of alcohol at 100 % vol. has been lodged with the intervention agency holding the alcohol concerned;

(b)

the name and address of the tenderer, the reference number of the notice of invitation to tender and the price proposed, expressed in euro per hectolitre of alcohol at 100 % vol.;

(c)

an undertaking by tenderers that they will comply with all the rules applicable to this tendering procedure;

(d)

a statement by tenderers to the effect that:

(a)

apply Article 102 of Regulation (EC) No 1623/2000 mutatis mutandis;

(b)

carry out checks on samples using nuclear magnetic resonance analysis to verify the nature of the alcohol at the time of end-use.

16.12.2006   

EN

Official Journal of the European Union

L 358/30

(1)

Article 5(1) of Regulation (EEC) No 1915/83 provides that a standard fee shall be paid by the Commission to the Member States for each duly completed farm returns forwarded to it within the period prescribed in Article 3 of that Regulation.

(2)

Commission Regulation (EC) No 118/2006 (3) fixed the amount of the standard fee for the 2006 accounting year at EUR 145 per farm return. The trend in costs and its effects on the costs of completing the farm return justify a revision of the fee.

(3)

The measures provided for in this Regulation are in accordance with the opinion of the Community Committee for the Farm Accountancy Data Network,

16.12.2006   

EN

Official Journal of the European Union

L 358/31

(1)

Annex I to Commission Regulation (EEC) No 1859/82 (2) fixes the number of returning holdings per division.

(2)

The number of returning holdings per division in Sweden should be adjusted so that the sample may better represent all the types of farm that are present in the field of observation.

(3)

Regulation (EEC) No 1859/82 should therefore be amended accordingly.

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Community Committee for the Farm Accountancy Data Network,

16.12.2006   

EN

Official Journal of the European Union

L 358/33

(1)

Commission Regulation (ECC) No 2237/77 of 23 September 1977 amending Regulation No 118/66/EEC on the form of farm return to be used for the purpose of determining incomes of agricultural holdings (2) lays down the type of accountancy data to be given in the farm return.

(2)

It is appropriate to adapt the contents of the farm return to the new provisions on the Structural Funds and on rural development, and to clarify, simplify or make more coherent some elements of the farm return.

(3)

The measures provided for in this Regulation are in accordance with the opinion of the Community Committee for the Farm Accountancy Data Network,

16.12.2006   

EN

Official Journal of the European Union

L 358/36

(1)

The Commission is required, by virtue of Regulation (EC) No 2320/2002, to adopt measures for the implementation of common basic standards for aviation security throughout the Community. Commission Regulation (EC) No 622/2003 of 4 April 2003 laying down measures for the implementation of the common basic standards on aviation security (2) was the first act laying down such measures.

(2)

There is a need for measures to make the common basic standards more precise.

(3)

As regards walk-through metal detection equipment (WTMD) performance requirements should be laid down in an act. The standards should, however, be reviewed on a regular basis and at least every 2 years to ensure that they continue to reflect technical developments.

(4)

The performance requirements for WTMD should be considered as a first step in the full harmonisation of technical specifications for such equipment. It should be complemented as swiftly as possible by harmonised procedures for the classification, including test conditions, of WTMD.

(5)

In accordance with Regulation (EC) No 2320/2002 and in order to prevent acts of unlawful interference, the measures laid down in the Annex to Regulation (EC) No 622/2003 should be secret and should not be published. The same rule necessarily applies to any amending act.

(6)

Regulation (EC) No 622/2003 should be amended accordingly.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Committee on Civil Aviation Security,

16.12.2006   

EN

Official Journal of the European Union

L 358/38

(1)

In accordance with Commission Regulation (EC) No 1898/2005 of 9 November 2005 laying down detailed rules for implementing Council Regulation (EC) No 1255/99 as regards measures for the disposal of cream, butter and concentrated butter on the Community market (2), the intervention agencies may sell by standing invitation to tender certain quantities of butter from intervention stocks that they hold and may grant aid for cream, butter and concentrated butter. Article 25 of that Regulation lays down that in the light of the tenders received in response to each individual invitation to tender a minimum selling price shall be fixed for butter and maximum aid shall be fixed for cream, butter and concentrated butter. It is further laid down that the price or aid may vary according to the intended use of the butter, its fat content and the incorporation procedure. The amount of the processing security as referred to in Article 28 of Regulation (EC) No 1898/2005 should be fixed accordingly.

(2)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,

16.12.2006   

EN

Official Journal of the European Union

L 358/40

(1)

In accordance with Commission Regulation (EC) No 1898/2005 of 9 November 2005 laying down detailed rules for implementing Council Regulation (EC) No 1255/99 as regards measures for the disposal of cream, butter and concentrated butter on the Community market (2), the intervention agencies may sell by standing invitation to tender certain quantities of butter of intervention stocks that they hold and may grant aid for cream, butter and concentrated butter. Article 25 of that Regulation lays down that in the light of the tenders received in response to each individual invitation to tender a minimum selling price shall be fixed for butter and maximum aid shall be fixed for cream, butter and concentrated butter. It is further laid down that the price or aid may vary according to the intended use of the butter, its fat content and the incorporation procedure. The amount of the processing security as referred to in Article 28 of Regulation (EC) No 1898/2005 should be fixed accordingly.

(2)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,

16.12.2006   

EN

Official Journal of the European Union

L 358/42

(1)

In accordance with Article 47 of Commission Regulation (EC) No 1898/2005 of 9 November 2005 laying down detailed rules for implementing Council Regulation (EC) No 1255/99 as regards measures for the disposal of cream, butter and concentrated butter on the Community market (2), the intervention agencies are opening a standing invitation to tender for the granting of aid for concentrated butter. Article 54 of that Regulation provides that in the light of the tenders received in response to each special invitation to tender, a maximum amount of aid is to be fixed for concentrated butter with a minimum fat content of 96 %.

(2)

An end-use security provided for in Article 53(4) of Regulation (EC) No 1898/2005 is to be lodged to ensure the taking over of the concentrated butter by the retail trade.

(3)

In the light of the tenders received, the maximum aid should be fixed at the appropriate level and the end-use security should be determined accordingly.

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,

16.12.2006   

EN

Official Journal of the European Union

L 358/43

(1)

Pursuant to Article 21 of Commission Regulation (EC) No 2771/1999 of 16 December 1999 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards intervention on the market in butter and cream (2), intervention agencies have put up for sale by standing invitation to tender certain quantities of butter held by them.

(2)

In the light of the tenders received in response to each individual invitation to tender a minimum selling price shall be fixed or a decision shall be taken to make no award, in accordance with Article 24a of Regulation (EC) No 2771/1999.

(3)

In the light of the tenders received, a minimum selling price should be fixed.

(4)

The Management Committee for Milk and Milk Products has not delivered an opinion within the time limit set by its chairman,

16.12.2006   

EN

Official Journal of the European Union

L 358/44

(1)

Article 10 of Regulation (EC) No 1784/2003 provides that the rates of duty in the Common Customs Tariff are to be charged on import of the products referred to in Article 1 of that Regulation. However, in the case of the products referred to in paragraph 2 of that Article, the import duty is to be equal to the intervention price valid for such products on importation and increased by 55 %, minus the cif import price applicable to the consignment in question. However, that duty may not exceed the rate of duty in the Common Customs Tariff.

(2)

Pursuant to Article 10(3) of Regulation (EC) No 1784/2003, the cif import prices are calculated on the basis of the representative prices for the product in question on the world market.

(3)

Regulation (EC) No 1249/96 lays down detailed rules for the application of Regulation (EC) No 1784/2003 as regards import duties in the cereals sector.

(4)

The import duties are applicable until new duties are fixed and enter into force.

(5)

In order to allow the import duty system to function normally, the representative market rates recorded during a reference period should be used for calculating the duties.

(6)

Application of Regulation (EC) No 1249/96 results in import duties being fixed as set out in Annex I to this Regulation,

16.12.2006   

EN

Official Journal of the European Union

L 358/47

(1)

Commission Regulation (EC) No 2247/2003 (2) opens, on a multi-annual basis for periods from 1 January to 31 December, a quota for the import of certain products in the beef and veal sector originating from the ACP States.

(2)

Commission Regulation (EC) No 1301/2006 of 31 August 2006 laying down common rules for the administration of import tariff quotas for agricultural products managed by a system of import licences (3) applies to import licences for import tariff quota periods starting from 1 January 2007. Regulation (EC) No 1301/2006 lays down in particular detailed provisions on applications for import licences, the status of applicants and the issue of licences. That Regulation limits the period of validity of licences to the last day of the import tariff quota period. The provisions of Regulation (EC) No 1301/2006 should apply to imports licences issued pursuant to Regulation (EC) No 2247/2003, without prejudice to additional conditions laid down in that Regulation. It is necessary to align the provisions of Regulation (EC) No 2247/2003 on Regulation (EC) No 1301/2006 where appropriate.

(3)

For the sake of clarity, Article 2(2) of Regulation (EC) No 2247/2003 should be deleted as this provision is merely a repetition of the provision in Article 50(1) of Commission Regulation (EC) No 1291/2000 of 9 June 2000 laying down common detailed rules for the application of the system of import and export licences and advance fixing certificates for agricultural products (4).

(4)

Regulation (EC) No 2247/2003 should therefore be amended accordingly.

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Beef and Veal,

1.

In Article 2, paragraph 2 is deleted.

2.

Article 3 is replaced by the following:

‘Article 3

Except as otherwise provided for in this Regulation, Regulations (EC) No 1445/95 and (EC) No 1291/2000 and Commission Regulation (EC) No 1301/2006 (5) shall apply.

3.

Article 4 is amended as follows:

4.

Article 5 is amended as follows:

5.

Article 7 is replaced by the following:

‘Article 7

The import licences issued in accordance with this Regulation shall be valid for 90 days from their actual date of issue within the meaning of Article 23(2) of Regulation (EC) No 1291/2000.’

16.12.2006   

EN

Official Journal of the European Union

L 358/49

(1)

Commission Regulation (EC) No 2172/2005 (2) opens, on a multi-annual basis for periods from 1 January to 31 December, a duty-free tariff quota for the import of 4 600 live bovine animals originating in Switzerland. In view of the accession of Bulgaria and Romania to the European Union on 1 January 2007, the deadline for the submission of applications for the import tariff quota period 1 January to 31 December 2007 was extended to 8 January 2007 by Commission Regulation (EC) No 1677/2006 of 14 November 2006 derogating from Regulation (EC) No 2172/2005, as regards the date of application for import rights for the tariff quota period 1 January to 31 December 2007 (3).

(2)

Commission Regulation (EC) No 1301/2006 of 31 August 2006 laying down common rules for the administration of import tariff quotas for agricultural products managed by a system of import licences (4) applies to import licences for import tariff quota periods starting from 1 January 2007. Regulation (EC) No 1301/2006 lays down in particular detailed provisions on applications for import licences, the status of applicants and the issue of licences. That Regulation provides that import tariff quotas shall be opened for a period of 12 consecutive months and limits the period of validity of licences to the last day of the import tariff quota period. The provisions of Regulation (EC) No 1301/2006 should apply to imports licences issued pursuant to Regulation (EC) No 2172/2005, without prejudice to additional conditions or derogations laid down in that Regulation. It is necessary to align the provisions of Regulation (EC) No 2172/2005 on Regulation (EC) No 1301/2006 where appropriate.

(3)

With a view to preventing speculation, the quantities available within the quota should be made accessible to operators able to show that they are genuinely engaged in trade of a significant scale with third countries. In consideration of this and in order to ensure efficient management, the traders concerned should be required to have imported a minimum of 50 animals during both reference periods referred to in Article 5 of Regulation (EC) No 1301/2006. Moreover, for administrative reasons, Member States should be allowed to accept certified copies of the documents proving the existence of trade with third countries.

(4)

In case the application of the allocation coefficient referred to in Article 7(2) of Regulation (EC) No 1301/2006 gives a figure of less than 50 head per application, the quantity available should be awarded by the Member States concerned by drawing lots for import rights covering 50 head each, in order to ensure a commercially viable number of animals per application.

(5)

Regulation (EC) No 2172/2005 should therefore be amended accordingly.

(6)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Beef and Veal,

1.

In Article 1(1), the first sub-paragraph is replaced by the following:

‘A duty-free Community import tariff quota is hereby opened every year for periods from 1 January to 31 December for the import of 4 600 live bovine animals originating in Switzerland weighing more than 160 kg, falling within CN codes 0102 90 41, 0102 90 49, 0102 90 51, 0102 90 59, 0102 90 61, 0102 90 69, 0102 90 71 or 0102 90 79.’

2.

Article 2 is amended as follows:

3.

Article 3 is amended as follows:

4.

In Article 4, paragraph 2 is replaced by the following:

‘2.   Where application of the allocation coefficient referred to in Article 7(2) of Regulation (EC) No 1301/2006 gives a figure of less than 50 head per application, the quantity available shall be awarded by the Member States concerned by drawing lots for import rights covering 50 head each. Where the remainder is less than 50 head, a single import right shall be awarded for that quantity.’

5.

In Article 6(4), point (a) is replaced by the following:

6.

Article 7 is amended as follows:

7.

Article 8 is replaced by the following:

‘Article 8

Regulations (EC) No 1445/95 and (EC) No 1291/2000 and Commission Regulation (EC) No 1301/2006 (5) shall apply, subject to this Regulation.

8.

Annex I is deleted.

16.12.2006   

EN

Official Journal of the European Union

L 358/51

(1)

Implementation of Protocol 3 on ACP Sugar attached to Annex V to the ACP-EC Partnership Agreement (1) and of the Agreement between the European Economic Community and the Republic of India on cane sugar (2) is carried out, in accordance with Article 1(2) of each, within the framework of the management of the common organisation of the sugar market.

(2)

It is appropriate to approve the Agreements in the form of an Exchange of Letters between the Community and, of the one part, the States referred to in the Protocol and, of the other part, the Republic of India on the guaranteed prices for cane sugar for the 2005/2006 delivery period,

16.12.2006   

EN

Official Journal of the European Union

L 358/60

(1)

The Council, in its Decision of 25 September 2006, approved the conclusion by the Commission of the Agreement on the Establishment of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project (‘the ITER Agreement’), of the Arrangement on Provisional Application of the Agreement on the Establishment of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project (‘the Arrangement on Provisional Application’) and of the Agreement on the Privileges and Immunities of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project.

(2)

Article 3 of the Arrangement on Provisional Application expresses the desire of the Signatories of the ITER Agreement (‘the Signatories’) to pursue co-operation as provided for in the ITER Agreement to the fullest possible extent, pending completion by each of them of all domestic actions required prior to ratification, acceptance or approval of the ITER Agreement.

(3)

Article 4 of the Arrangement on Provisional Application expresses the undertaking of the Signatories, to the fullest extent possible consistent with their domestic laws and regulations, to abide by the terms of the ITER Agreement until it enters into force.

(4)

Article 1 of the ITER Agreement provides that the Headquarters of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project (‘the ITER Organization’) shall be at St Paul-lez-Durance, Bouches-du-Rhône, France.

(5)

As the ITER Host Party, Euratom has special responsibilities for ensuring the timely implementation of the ITER Project.

(6)

Agreements concluded by the Community are binding on the institutions of the Community and on Member States.

(7)

In accordance with Article 192 of the Treaty, Member States shall facilitate the achievement of the Community's tasks.

(8)

The power to conclude international agreements is vested in the Commission under Article 101 of the Treaty, whereas it is also for the Commission to ensure the provisional application of such agreements in accordance with the approval given by Council,

(a)

enjoy the legal capacity it requires to (i) conclude contracts, in particular for hiring of staff, (ii) acquire, hold and dispose of property, (iii) obtain licenses and (iv) institute legal proceedings to the extent required to carry out necessary actions for a timely implementation of the ITER Project in anticipation of the formal establishment of the ITER Organization; noting that all rights and obligations assumed by the ITER Organization in a provisional capacity shall persist as those of the ITER Organization in accordance with the terms of the ITER Agreement upon the formal establishment of the ITER Organization;

(b)

enjoy, together with its staff and representatives of the Signatories, in the territories of the Member States, the privileges and immunities provided for under the Agreement on the Privileges and Immunities of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER Project, in particular with regard to taxation, immigration and registration, in anticipation of the formal establishment of the ITER Organization;

(c)

abide by the provisions of the ITER Agreement; and in particular to observe the applicable national laws and regulations of the Host State in the fields of public and occupational health and safety, nuclear safety, radiation protection, licensing, nuclear substances, environmental protection and protection from acts of malevolence.