52000PC0855

Proposal for a COUNCIL REGULATION amending Regulations No 136/66/EEC and (EC) No 1638/98 as regards the extension of the period of validity of the aid scheme and the quality strategy for olive oil

(presented by the Commission)

EXPLANATORY MEMORANDUM

This proposal is presented pursuant to Article 3(2) of Council Regulation (EC) No 1638/98 [1].

[1] OJ L 210, 28.7.1998, p. 32.

1. Background

In February 1997 the Commission put forward an options paper [2] examining the problems encountered in the olives and olive oil sector. The document, which was then discussed in detail, in particular by Parliament and the Council, referred to an increase in production which might not be matched by demand, to the existence of a multiplicity of complex aid schemes which were difficult to control in spite of the resources allocated for checking, and to major gaps in terms of production statistics.

[2] COM(1997) 57 final.

In the case of producer aid the two major options suggested were: improving the existing scheme, which was based on aid per tonne of olive oil or, alternatively, devising a new scheme centred on aid per olive tree and based on historical yields in the areas concerned. Either way, measures were needed to put an end to mechanisms that were ineffective and a target for fraud, or to improve control over production and the market concerned.

An advantage of the first option was that it helped producers on the basis of their actual output and, therefore, that it encouraged the activity of the olive oil sector by means of a tried and tested system. Verifying the quantities of olive oil eligible for aid per tonne is no mean task, however, because the oil tends to move about between the operators involved in production, processing or marketing, operators whose structures and practices differ depending on the Community region concerned.

The second option appeared to be simpler to control and manage and was likely to result in greater respect for the environment since it did not encourage intensification. This would soften the present problems of over-utilisation of irrigation water and soil erosion. On the other hand, a flat-rate aid system is likely to result in the cessation of olive-growing, in particular in less productive years and in marginal areas where few if any alternative forms of production exist.

In March 1998 the Commission noted that opinion was converging on a reform possibly geared towards a dynamic market balance, a stabilisation of incomes, the safeguarding and improving of quality and the organisation and control of the sector. It also noted that opinion differed on the options with regard to production aid. The Commission underlined the need to produce a more accurate picture of production and the constituent factors of that production, in particular yields and the number of olive trees. Pending the availability of more accurate information, it proposed deferring a decision on the reform but adopting for the next three marketing years measures which would avoid the risk of major difficulties for operators and the Community budget [3].

[3] COM(1998) 171 final.

The Council's decision, in the shape of Regulation (EC) No 1638/98, provides that, subject to the changes outlined below, the period of validity of the scheme previously in force should be extended by three marketing years until 2000/01:

- the amount of aid per tonne of oil actually produced to be the same for both small and large producers,

- an increase, from 1 350 000 tonnes to 1 777 261 tonnes, in the maximum guaranteed quantity to be allocated to Member States as national guaranteed quantities, and a concomitant reduction, from EUR 142,20/100 kg to EUR 132,25/100 kg, in the amount of the aid,

- the possibility of using part of the national guaranteed quantities for granting aid in the table olives sector,

- consumption aid and public buying-in to be discontinued.

In addition, during the transitional period from 1998/99 to 2000/01, the Council Regulation:

- focuses the work in connection with the olive-growing register on a Geographic Information System (olive cultivation GIS) whereby information given by producers can be crosschecked by means of aerial photographs,

- states that, as a rule, additional olive trees planted after 1 May 1998 will not be eligible for production aid after November 2001,

- repeals all the regulatory provisions relating to aid and internal market measures with effect from 1 November 2001 and provides that, on the basis of a Commission proposal, a decision is to be taken in 2000 on the market organisation for oils and fats with effect from 2001/02.

Moreover, in the process of adopting Regulation (EC) No 1638/98, the Council itself undertook, jointly with the Commission, to pay particular attention to a close scrutiny of the strategy for improving quality. It also took note of the Commission's declarations regarding the reorientation of controls, mainly towards production aid, and to draw up a report on the situation with regard to table olives.

Since the agreement reached within the Council in July 1998 the Commission has, in the space of two years, implemented all the measures specified. This entailed:

- revising the production statistics for the last few years, conducting a statistical evaluation of the surface areas and the number of olive trees, and introducing a common method for estimating yields,

- reorienting the work on the register of olive growing towards an olive cultivation GIS based on new crop declarations and the computerised processing of aerial photographs,

- organising the registration of new plantings and determining those which, in the context of authorised programmes, might where applicable receive aid after 1 November 2001,

- revising and supplementing the control obligations and procedures, in particular at mill level,

- determining the requirements and detailed arrangements for aid for table olives, aid which is now being granted by every producer Member State,

- laying down the requirements and detailed rules for the granting of private storage aid,

- holding wide-ranging consultations and detailed discussions with representatives of the sector and numerous experts on the various aspects of the quality strategy.

2. Market and aid scheme

In many respects the market and aid scheme results cannot yet be seen in the right perspective. The introduction of the new measures coincided with, at the earliest, the start of the 1998/99 marketing year, and the controls and aid payments for that year cover the period up to October 2000. The second marketing year concerned, 1999/2000, also ends in October 2000, without the definitive production figures being known, while the period laid down for the presentation of this proposal is coming to an end.

The evaluations of production and potential need to be confirmed because there is still a good deal of uncertainty. The evaluations are fairly precise in the case of Member States with a large olive-growing area but, because of the marked variability of the data to be gathered, statistical estimates and the level of precision are still poor in the other producer Member States and at regional level.

The number of trees and the size of the olive-growing area of each producer will not be known until the national olive cultivation GISs have been completed. No olive cultivation GIS has yet been finalised, however, and there has been only limited progress on some of them. The new method for estimating yields has been applied for 1999/2000 only and conclusions have yet to be drawn regarding that experiment. It could well be that such statistical estimates are useful only at the level of the major producer Member States and that their accuracy at regional and local level is poor.

Early results for the new measures adopted with effect from 1998/99 suggest that checks on production qualifying for aid continue to pose major problems in some Member States. As a result of the National Guaranteed Quantities, shortcomings in the control systems of Member States is limited for the Community budget, but they do give rise to discontent and difficulties that can affect the market in the long run and jeopardise the Community scheme for the industry as a whole. Special Report No 11/2000 of the Court of Auditors [4] and the analysis of the early results of the implementation of the new control measures show that the Commission should make some adjustments and introduce some supplementary measures as from the 2000/01 marketing year. It would deal especially with the scheme of penalties that has to be easier to apply and the scheme of advances on aid to avoid reimbursements.

[4] OJ C 215, 23.7.2000, p. 1.

Monitoring the activity of mills is essential to controlling the aid per tonne of oil produced, but it must always be accompanied by a crosschecking of mill results against, on the one hand, the olive-growing potential of the producers concerned and, on the other, the stocks of olive oil held by operators who received their supplies from the mills.

The relative importance of the three types of checks - namely those focusing on mills, on olive groves and on the destination of the oil - depends on how big the mill is and the extent to which it is involved in the marketing of the oil produced. At all events, knowing the number of olive trees involved in the production concerned is at least very useful. Precise and reliable figures of this type can be obtained only by means of the olive cultivation GIS.

With regard to the olive oil market, production in 1998/99 and 1999/2000 was high, at close to 1 900 000 tonnes, including 8% of olive-pomace oil, with Spain and Italy having recorded in turn a low harvest and an average or high harvest. Although below the all-time record of 1997/98, Community production could well show a further rise as a result of continued intensification and the maturing of new trees. Aided by promotion efforts, consumption was sustained in the Community and sharply up in non-member countries, resulting in a record for exports without a refund.

After an exceptionally high harvest in 1997/98, prices at first eased then, in the autumn of 1999, began to drift down following higher-than-expected harvests. At the end of 1999/2000, the prospects of a bumper 2000/01 harvest in Spain brought prices down to the low levels recorded in 1997/98. The level at which aid for private storage might be activated was reached for a short time only, however, obviating the need for such support.

In 1998/99, the only marketing year for which there are definitive results, production aid per 100 kg of olive oil was - after taking the National Guaranteed Quantity mechanism into account and despite production being buoyant - higher than in the two preceding marketing years. The average for the Member States as a whole was the highest recorded in the last ten marketing years with the exception of 1994/95 and 1995/96, which were marked by drought.

In the case of table olives all the producer Member States gradually decided that the amount of aid laid down for olive oil should be granted to the equivalent quantity of processed table olives. In 1998/99 such aid was granted by Spain, Greece and Portugal, but its impact cannot yet be gauged, especially as regards producer incomes and investment in the industry. France began granting that aid in 1999/2000 and Italy in 2000/01. A longer period of observation is therefore needed before the analytical report the Commission has undertaken to present can be drawn up.

Some inescapable conclusions of the circumstances described above can be drawn. The measures laid down by the Council in 1998 have improved the situation in the sector but have not resolved every single problem. The same two options for a future aid scheme remain, but it is not, at this stage, possible to make a fully informed choice. More specifically, granting aid per tonne of olive oil produced requires checks on actual production which are not yet satisfactory throughout the Community; flat-rate aid per olive tree in production or per hectare of olive grove requires precise knowledge of the trees and surface areas belonging to each grower, i.e. information which is not yet available.

In effect, the olive cultivation GIS will be a key factor whichever aid scheme option is chosen: it would prove at least useful as a supplementary control if aid is paid per tonne of olive oil produced, and will constitute an indispensable tool in connection with a flat-rate aid scheme. Moreover the SIG is needed for an efficient check of olive trees planted after 1 March 1998, that, as already decided, will not receive an aid.

The Commission accordingly feels that, for both the market and the aid scheme, the closer checks and the investigations undertaken in 1998 should continue and that the sectoral analyses should be supplemented whenever fresh data or findings are obtained. It will allow to weigh advantages of the options for the aid scheme, taking account of realistic, quick and efficient new disposals to improve substantially the control. This would also enable to tackle in depth the environmental impact of olive oil production.

The Commission proposes that the Council extend the period of validity of the current scheme by two marketing years. Repeal of the aid and measures relating to the internal market would thus be postponed from 1 November 2001 until 1 November 2003. Following a proposal from the Commission, the Council would, in 2002, decide on the market organisation for oils and fats applicable from 1 November 2003.

That being said and without prejudice to the actual aid scheme chosen, the Commission is proposing that the Council should specify as of now that the future aid scheme will be controlled by means of an olive cultivation GIS that is fully operational. With effect from 1 November 2003, aid would thus be granted only for olive trees or olive oil from olive groves that are covered by an olive cultivation GIS certified as having been completed.

3. Quality Strategy

Work carried out on a quality strategy for olive oil has helped to pinpoint the numerous and often interlinked factors and problems involved in olive and olive oil production and the packing and presentation of the marketed products. The problems concern the classification of olive oils, rules on labelling, checks and the organisation of measures to improve quality including environmental impact. The market situation is affected by these difficulties because the price ranges for the different types of olive oil are very wide and overlap, often without any obvious connection with the qualities consumers expect.

The measures to be considered are to a large extent independent of the aid scheme chosen, and often feature fairly specialised technical aspects. They must be seen in the context of a multiannual strategy and programme, since the decisions and results are often conditioned by each other, in particular in the light of the disposal of stocks and adjustments to agro-industrial processes meeting earlier requirements, or changes affecting organisation in the sector, techniques and research work. They involve Council and Commission regulations, plus measures or action at the level of the IOOC (International Olive Oil Council), research bodies and organisations representing operators belonging to the sector.

The general approach, bringing cohesion to the strategy as a whole, must be carefully thought out and seen in its entirety. In this respect, the Commission is transmitting, together with this proposal for a Council Regulation, a report to the Council and Parliament on the quality strategy for olive oil. The report covers the results of the analysis carried out and suggested guidelines for the various levels of decision or action. In the case of the Council regulations the proposed provisions concern, on the one hand, the classification of olive oils and, on the other, the way in which operators are organised and function.

The classification of olive oils is set out in an Annex to Regulation No 136/66/EEC entitled "Descriptions and definitions of the olive oils and olive-residue oils referred to in Article 35". The guidelines for the quality strategy for olive oil which are contained in the report suggest changes in classification: they concern two principal aspects and a number of more technical aspects.

One of the principal aspects refers to technical progress, thanks to which it is now possible to obtain an ever-increasing proportion of low-acidity olive oil. In the past, "virgin" and "extra virgin" olive oil with less than 2o of acidity accounted for barely 50% of the oil obtained direct from olives, but now the figure is close to 70% of total production. Low acidity is not an absolute criterion of quality, but it is certainly, for any given type of olive oil or variety of olives, a sign of quality the market recognises. It is proposed that the changes that have taken place be taken into account via an adjustment to the acidity limits for the various types of olive oil and olive-pomace oil.

The second principal aspect is the current use of generic designations for specific types of olive oil. The biggest problem in this respect is the mandatory use of the designation "olive oil" for blends of refined olive oil and certain virgin olive oils. Consumers are to some extent misled by a mixture which guides them to one sort of olive oil, to the detriment of virgin olive oils. The type of oil concerned should be described accurately, without detracting from its merits, in particular those of a nutritional nature. Moreover the current designation "virgin olive oil" refers both to a specific type of oil, which must be marketed under that designation, and to a group which includes any type of olive oil obtained direct from olives. It is suggested that, in the regulations and in wholesale trade, "crude olive oil" be used for that group. There would be no change as far as the consumer is concerned.

The other suggestions concerning the classification of olive oils include banning the use of oil-extraction adjuvants that have a chemical or biochemical effect, and including in the definition of "crude pomace oil" certain oils obtained from olives by mechanical means.

To encourage operators to organise themselves with a view to improving and safeguarding the quality of the products they supply, it is suggested that the Community contribute to programmes of activities presented by approved organisations. EAGGF payments would count against aid earmarked for producers in the light of options chosen by the producer Member States. They would concern improving, certifying and safeguarding the quality of olive oil, but would also include part of the current activities of producer organisations in relation with the olive oil sector and market management.

The time required for drawing up detailed rules for such a scheme, in particular the conditions under which operators' organisations may be approved and the eligibility requirements for the activities proposed, is in addition to the time required by operators to organise themselves and draw up their programmes and by Member States to evaluate and select the tenders. All told, a period of close on two years is needed between deciding on the underlying principles of the approach in question and carrying out the first activities. Consequently the Commission is proposing, with regard to the quality strategy, that the Council decide as of now on the necessary adjustments to the classification of olive oil and olive-pomace oil and on the principles of the encouragement scheme which needs to be introduced for operators' organisations carrying out certain programmes of activities.

The Council decisions are a precondition for the drawing up of detailed rules by the Commission and for concerted action or measures throughout the sector, but require a period of about two years before they can become fully operational. For operators' organisations, the Council should therefore indicate as of now that it has decided that Member States are to be allowed to earmark part of the funding allocated to the aid which may applicable from 1 November 2003 for financing, in part at least, some of their activities.

The measures proposed all concern the 2003 and 2004 budgets and entail no additional expenditure. They are aimed at achieving the general objective of uniform application of the common agricultural policy and fall within the exclusive competence of the Community. Since they entail amendments to existing Council regulations a new regulation needs to be adopted by the Council.

2000/0358(CNS)

Proposal for a COUNCIL REGULATION amending Regulations No 136/66/EEC and (EC) No 1638/98 as regards the extension of the period of validity of the aid scheme and the quality strategy for olive oil

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof,

Having regard to the proposal from the Commission [5],

[5] OJ C, p.

Having regard to the opinion of the European Parliament [6],

[6] OJ C, p.

Having regard to the opinion of the Economic and Social Committee [7],

[7] OJ C, p.

Having regard to the opinion of the Committee of the Regions [8],

[8] OJ C, p.

Whereas:

(1) In July 1998 Council Regulation (EC) No 1638/98 of 20 July 1998 amending Regulation No 136/66/EEC on the establishment of a common market organisation in oils and fats [9] introduced measures applicable for three marketing years, namely 1998/99, 1999/2000 and 2000/01. This three-year period was intended to give the Commission time to gather and analyse the information required with a view to elaborate, in 2000, a proposal to the Council for a reform of the above-mentioned common market organisation. While the measures introduced by this Regulation have permitted a number of improvements to the common organisation of the market, the information gathered and the experience gained during those first two marketing years are neither complete nor sufficient to enable the Commission to draw substantial and definitive conclusions regarding the common market organisation in oils and fats to be implemented from 1 November 2001.

[9] OJ L 210, 28.7.1998, p. 32.

(2) In order to obtain all the results of the measures implemented from the 1998/99 marketing year onwards and to permit more detailed information to be gathered on the sector and more detailed analyses to be carried out, it is necessary to extend until the end of the 2002/03 marketing year the period of validity of the provisions currently in force, in particular those laid down in Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organisation of the market in oils and fats [10].

[10] OJ 172, 30.9.1966, p. 3025/66. Regulation as last amended by Regulation (EC) No 2702/1999 (OJ L 327, 21.12.1999, p. 7).

(3) The arrangements for checks on the aid paid to producers depend to a great extent on the existence and smooth operation of the geographic information system (GIS) referred to in Regulation (EC) No 1638/98. The GIS is essential for some of the options to be examined for the future and, at the very least, useful for the others. It should therefore be stipulated now that, where appropriate and whatever form the future aid scheme takes, it will, from 1 November 2003, cover only olive trees included in a GIS verified as being complete.

(4) Developments on the olive oil market indicate the need for a concerted strategy aimed at improving the quality of the product, including environmental impacts, and comprising, inter alia, incentives to promote the organisation and activities of the operators concerned and adjustments to the classification of olive oils and olive-pomace oils.

(5) In order to improve the operation of the sector, a scheme should be introduced to encourage approved operators' organisations to implement quality improvement and certification programmes and to improve the olive oil sector and market management. Around two years would appear necessary for the establishment of the detailed rules concerning certain items of the future scheme, for instance the creation of the organisations concerned and the drafting, and evaluation of programmes and their approval by the Member States. In order to permit the implementation of concrete measures as soon as possible, the bases of the scheme that will be decided to be introduced from 1 November 2003 should be laid down now.

(6) The descriptions and definitions of olive oils and olive-pomace oils are in certain cases unsatisfactory and could lead to confusion among both consumers and operators. Such problems cause disruption on the market and, in order to avoid them, new descriptions and definitions should replace those laid down in the Annex to Regulation No 136/66/EEC.

(7) The description "virgin olive oil" covers all oils obtained direct from the fruit of the olive tree, as referred to at point 1 of the Annex to Regulation No 136/66/EEC, and the category described at point 1(b). In order to avoid any confusion, all categories of oil referred to at point 1 should be known as "crude olive oil" and the description "virgin olive oil" should be reserved for olive oil actually referred to in point 1(b). As the description of "crude olive oil" is not used in the retail trade, the change will not affect consumers.

(8) In order to preserve the natural characteristics of crude olive oils, the use of oil- extraction adjuvants having a chemical or biochemical action should be excluded.

(9) The progress achieved by producers and millers has led to an increase in the production of virgin and extra virgin olive oils and a reduction in that of ordinary oils and lampante oils. To enable this market development to be taken into account in the classification of olive oils and to permit consumers to benefit from it, the maximum acidity of extra virgin olive oil should be reduced and "ordinary virgin olive oil" should be removed from the list of types of olive oil, the oils concerned being included under lampante olive oil.

(10) The generic name "olive oil" is currently used to designate the type referred to at point 3 of the Annex to Regulation No 136/66/EEC, namely a blend of refined olive oil and virgin olive oil other than lampante oil. This gives rise to confusion that could mislead consumers who are not sufficiently aware and could disrupt the market. Blends should therefore be identified in a specific way without, however, detracting from the qualities of the type of oil concerned, which are appreciated by a large sector of the market.

(11) Thanks to the progress achieved by refiners it is possible to adapt the definition of refined olive oil by reducing the percentage of maximal acidity.

(12) The definition of crude olive pomace oil should include oils obtained by mechanical means and correspond, with the exception of certain specific characteristics, to those for lampante olive oils, since some of them have characteristics that are typical of traditional crude olive pomace oils.

(13) In order to give the sector time to adjust, the use of the new descriptions and definitions should be made compulsory only after two years.

(14) Since the measures necessary for the implementation of Regulation No 136/66/EEC are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [11], they should be adopted by use of the management procedure provided for in Article 4 of that Decision,

[11] OJ L 184, 17.7.1999, p. 23.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation No 136/66/EEC is amended as follows:

1. In Article 4(2), " 1998/99 to 2000/01 marketing years" is replaced by " 1998/99 to 2002/03 marketing years".

2. Article 5 is amended as follows :

a) in paragraph 2, " 1998/99 to 2000/01 marketing years" is replaced by " 1998/99 to 2002/03 marketing years",

b) in the second subparagraph of paragraph 9, " 1998/99 to 2000/01 marketing years" is replaced by " 1998/99 to 2002/03 marketing years".

3. In the second subparagraph of Article 20d(1), "the 1998/99 to 2000/01 marketing years" is replaced by "the 1998/99 to 2002/03 marketing years".

4. Article 37 is repealed.

5. Article 38 is replaced by the following text:

"Article 38

1. The Commission shall be assisted by a committee, management committee for oils and fats, composed of representatives of the Member States and chaired by the representative of the Commission.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) thereof.

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month. "

6) The Annex is replaced by the Annex hereto.

Article 2

Regulation (EC) No 1638/98 is amended as follows:

1) Article 2 is amended as follows :

a) in the first subparagraph of paragraph 1, "the 1998/99 to 2000/01 marketing years" is replaced by "the 1998/99 to 2002/03 marketing years",

b) in the second subparagraph of paragraph 2, "the three marketing years from 1998/99 to 2000/01" is replaced by "the five marketing years from 1998/99 to 2002/03", and

c) in paragraph 4, "the 1998/99 to 2000/01 marketing years" is replaced by "the 1998/99 to 2002/03 marketing years".

2) The following Article 2 A is added:

"Article 2 A

Olive trees and corresponding areas whose presence is not attested by a geographic information system in accordance with Article 2 of this Regulation or of olive oil produced therefrom cannot constitute a basis for an aid to be paid to olive producers under the common market organisation in oils and fats from 1 November 2003."

3) In Article 3(2), "2000" is replaced by "2002" and "1 November 2001" is replaced by "1 November 2003".

4) The following Article 4 A is inserted :

"Article 4 A

1. Under the common organisation of the market in oils and fats, in force as from 1 November 2003, Member States producing olive oil may withhold within certain limits fixed by the Commission in conformity with the management procedure laid down in Article 4 of Decision 1999/468/EC, a portion of aid, where appropriate intended for olive oil producers, to ensure Community finance of work programmes drawn up by approved operators' organisations or their associations in the following areas:

(a) the olive oil sector and market management;

(b) the improvement of product quality and environmental impacts;

(c) the certification and protection of olive-oil quality.

2. Within the fixed limits, the maximum Community funding for the work programmes referred to in paragraph 1 shall be equal to the part of the aids reserved by the Member States. This funding shall be of maximum 100% for the eligible cost of the programmes referred to in (a), 75% for the programmes referred to in (b) and 50% for the programmes referred to in (c). Complementary financing will be ensured by the Member State concerned taking into account a financial contribution from operators that shall be compulsory for the programmes referred to under paragraph 1(b) and (c) and in the latter case shall be at least 25%.

3. In accordance with the procedure provided for in Article 38 of Regulation No 136/66/EEC, the Commission shall specify:

(a) conditions for the approval of operators' organisations and their unions;

(b) the types of activities eligible under programmes in the three areas referred to in paragraph 1;

(c) the procedures for the approval of programmes by the Member States;

(d) the measures concerning the control and the sanctions;

(e) any other detailed rules that might be necessary for the rapid implementation, from 1 November 2003, of the programmes concerned."

5) In the first paragraph of Article 5, "1 November 2001" is replaced by "1 November 2003".

Article 3

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

It shall apply from 1 November 2001. However, Article 1(6) shall apply from 1 November 2003.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

ANNEX « ANNEX DESCRIPTIONS AND DEFINITIONS OF OLIVE OILS AND OLIVE-POMACE OILS REFERRED TO IN ARTICLE 35

1. Crude olive oils

Oils obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions that do not lead to alteration in the oil, which have not undergone any treatment other than washing, decantation, centrifugation or filtration, to the exclusion of oils obtained using solvents or using adjuvants having a chemical or biochemical action, or by re-esterification process and any mixture with oils of other kinds.

Virgin olive oils are exclusively classified and described as follows:

(a) Extra virgin olive oil Crude olive oil having a maximum free acidity, in terms of oleic acid, of 0,8 g per 100 g, the other characteristics of which comply with those laid down for this category.

(b) Virgin olive oil Crude olive oil having a maximum free acidity, in terms of oleic acid, of 2 g per 100 g, the other characteristics of which comply with those laid down for this category.

(c) Lampante olive oil Crude olive oil having a free acidity, in terms of oleic acid, of more than 2 g per 100 g, and/or the other characteristics of which comply with those laid down for this category.

2. Refined olive oil

Olive oil obtained by refining crude olive oil, having a free acidity content expressed as oleic acid, of not more than 0,3 g per 100 g, and the other characteristics which comply with those laid down for this category.

3. Standard olive oil

Olive oil obtained by blending refined olive oil and crude olive oil other than lampante oil, having a free acidity content expressed as oleic acid, of not more than 1 g per 100 g, and the other characteristics which comply with those laid down for this category.

4. Crude olive-pomace oil

Oil obtained by treating olive pomace with solvents or oil corresponding to lampante olive oil, except of certain specified characteristics, excluding oil obtained by means of re-esterification and mixtures with other types of oils, and the other characteristics which comply with those laid down for this category.

5. Refined olive-pomace oil

Oil obtained by refining crude olive-pomace oil, having a free acidity content expressed as oleic acid, of not more than 0,3 g per 100 g, and the other characteristics which comply with those laid down for this category.

6. Olive-pomace oil

Oil obtained by blending refined olive-pomace oil and crude olive oil other than lampante oil, having a free acidity content expressed as oleic acid, of not more than 1 g per 100 g, and the other characteristics which comply with those laid down for this category."

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