(1)

The COVID-19 pandemic and the extensive movement restrictions put in place in the Member States and in third countries in the form of national measures constitute an exceptional and unprecedented challenge for Member States and operators in relation to performing controls as specified in Regulation (EC) No 834/2007 and Commission Regulations (EC) No 889/2008 (2) and (EC) No 1235/2008 (3).

(2)

On the basis of the information received from Member States, it is necessary to derogate from certain provisions of Regulations (EC) No 889/2008 and (EC) No 1235/2008.

(3)

As regards official controls and other official activities within the scope of Regulation (EU) 2017/625 of the European Parliament and of the Council (4), Commission Implementing Regulation (EU) 2020/466 (5) allows Member States to apply temporary measures to contain risks to human, animal and plant health and animal welfare in the specific situation linked to COVID-19 until 1 August 2020.

(4)

In particular, a number of Member States and stakeholders have informed the Commission that their capacity to verify the integrity of organic products is hampered due to those restrictions and the resulting disruptions. Normally, in order to perform physical inspections for the purpose of official controls, the staff of the competent authorities, or where appropriate, the control authorities and control bodies need to visit operators and/or travel long distances. As travelling and carrying out physical inspections are currently not permitted or strongly restricted due to national measures, the competent authority, or where appropriate, the control authority or control body should have the possibility to base its controls on documentary checks and use any available means of distance communication instead during a certain period. In respect of low risk operators, as determined by the risk assessment procedure of the competent authority, or where appropriate, of the control authority or control body, as defined in Article 27(3) of Regulation (EC) No 834/2007, it is appropriate that physical inspections are substituted by such documentary checks. Moreover, the restrictions of movement have delayed the yearly control visits, making it difficult for competent authority or where appropriate, control authorities or control bodies, to fulfil their obligations to carry out additional random visits, unannounced inspections and sampling in respect of certain profile operators.

(5)

Operators should continue to have the possibility to adhere to the organic production scheme. However, pending the resumption of the normal control activities after the end of the national measures related to the COVID-19 pandemic, the competent authority or, where appropriate, the control authority or control body should be allowed to postpone physical inspections and rely on documentary checks, including checks carried out through available means of distance communication until the operations can be resumed.

(6)

It is of utmost importance to continue to carry out timely investigations on suspected infringements and irregularities relating to the organic production rules. Therefore, it is appropriate to provide that such investigations are to be carried out with any available means, while giving control authorities and control bodies the opportunity to carry out the necessary physical inspections at a later stage.

(7)

The restrictions of movement applied by Member States, due to the COVID‐19 pandemic, are currently preventing timely communication between Member States, between the control bodies and Member States and between Member States and the Commission on the investigations carried out to determine the origin of the irregularities or infringements found. Therefore, certain deadlines should be extended.

(8)

The restriction of movement currently applied by Member States, due to the COVID‐19 pandemic, can also affect the possibility of the competent authorities to carry out the annual inspection of the control bodies that have been delegated control tasks. It is necessary to clarify that a competent authority may temporarily apply supervision audits instead.

(9)

In addition, as a consequence of the measures introduced to protect human health, serious restrictions applied to transports affect the courier services that would deliver the printed and hand-signed paper version of the certificate of inspection required for imported consignments. For this reason, it is also necessary to derogate from the relevant provisions of Regulation (EC) No 1235/2008 as regards the obligation to have a paper version of the certificate of inspection.

(10)

This Regulation should apply until the end of September 2020. However, the documentary checks in respect of low risk operators, as determined by the risk assessment procedure of the competent authority, or where appropriate, of the control authority or control body, as defined in Article 27(3) of Regulation (EC) No 834/2007, should be allowed to replace the relevant physical inspections until the end of December 2020. In view of the information received from a number of Member States, it is appropriate to provide for a retroactive application of this Regulation from 1 March 2020. Moreover the number of the sampling, additional random visits and unannounced inspections shall be calculated over the year 2020. Therefore, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

(11)

After the outbreak of the COVID-19 pandemic in China, that country has imposed travel restrictions since the beginning of January 2020. For that reason, it is appropriate to provide for an earlier date of application for control activities that have occurred in China.

(12)

The measures provided for in this Regulation are in accordance with the opinion of the Committee on Organic Production,

(1)

The European Central Bank (ECB) is responsible for the effective and consistent functioning of the Single Supervisory Mechanism (SSM). It oversees the functioning of the system to ensure the consistent application of high supervisory standards and the consistency of supervisory outcomes across the participating Member States. The ECB may issue guidelines to national competent authorities (NCAs) in accordance with which supervisory tasks are to be performed and supervisory decisions are to be adopted by NCAs.

(2)

The ECB has to ensure the consistent application of prudential requirements for credit institutions within the participating Member States, as set out under Regulation (EU) No 1024/2013 and Regulation (EU) No 468/2014 of the European Central Bank (ECB/2014/17) (2).

(3)

As the authority competent to supervise significant credit institutions under Regulation (EU) No 1024/2013, the ECB has exercised the discretion conferred on it under Article 178(2)(d) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (3) by adopting Regulation (EU) 2018/1845 of the European Central Bank (ECB/2018/26) (4) which defines the threshold for assessing the materiality of credit obligations past due.

(4)

Although NCAs are primarily responsible for exercising the relevant options and discretions in relation to less significant institutions, the ECB’s overarching oversight role within the SSM enables it to promote the consistent exercise of options and discretions in relation to both significant and less significant institutions, where appropriate. This ensures that: (a) the prudential supervision of all credit institutions in the participating Member States is implemented in a coherent and effective manner; (b) the single rulebook for financial services is applied consistently to all credit institutions in the participating Member States; and (c) that all credit institutions are subject to supervision of the highest quality.

(5)

With the aim of balancing the need for the consistent application of supervisory standards between significant and less significant institutions on the one hand with the application of the principle of proportionality on the other hand, the ECB considers that the NCAs which supervise less significant institutions should exercise the discretion under Article 178(2)(d) of Regulation (EU) No 575/2013 and Commission Delegated Regulation (EU) 2018/171 (5) in the same way as exercised by the ECB in Regulation (EU) 2018/1845 (ECB/2018/26),