Commission Regulation (EC) No 43/2003 of 23 December 2002 laying down detailed rules for applying Council Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No 1454/2001 as regards aid for the local production of crop products in the outermost regions of the European Union

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1452/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the French overseas departments, amending Directive 72/462/EEC and repealing Regulations (EEC) No 525/77 and (EEC) No 3763/91 (Poseidom)⁽¹⁾, and in particular Article 5(2), Article 12(4), Article 13(4), Article 15(7) and Article 18 thereof,

Having regard to Council Regulation (EC) No 1453/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (Poseima)⁽²⁾, and in particular Article 5(3), Article 6(5), Article 7(2), Article 9(3), Article 16(2), Article 19, Article 20(7), Article 21(3), the third paragraph of Article 27, Article 28(3), Article 30(5) and Article 31 thereof,

Having regard to Council Regulation (EC) No 1454/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Canary Islands and repealing Regulation (EEC) No 1601/92 (Poseican)⁽³⁾, as last amended by Commission Regulation (EC) No 1922/2002⁽⁴⁾, and in particular Article 9(2), Article 10(5), Article 11(2), Article 13 and Article 14(3) thereof,

Having regard to Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables⁽⁵⁾, as last amended by Regulation (EC) No 1881/2002⁽⁶⁾, and in particular Article 11(2)(a) and Article 48 thereof,

Whereas:

1. In the interests of legislative simplification, the provisions adopted by Regulations (EEC) No 980/92⁽⁷⁾, (EEC) No 2165/92⁽⁸⁾, (EEC) No 2311/92⁽⁹⁾, (EEC) No 3491/92⁽¹⁰⁾, (EEC) No 3518/92⁽¹¹⁾, (EC) No 1524/98⁽¹²⁾, (EC) No 2477/2001⁽¹³⁾, (EC) No 396/2002⁽¹⁴⁾, (EC) No 738/2002⁽¹⁵⁾, (EC) No 1410/2002⁽¹⁶⁾ and (EC) No 1491/2002⁽¹⁷⁾ should be incorporated into this Regulation, those Regulations should be repealed and detailed rules should be adopted for the area aid granted to growers of vines used to produce quality wines psr, potatoes for human consumption, sugar cane and wicker in Madeira and to growers of sugarbeet, seed potatoes, chicory and tea in the Azores as provided for in Regulation (EC) No 1453/2001, to growers of potatoes for human consumption under Regulation (EC) No 1454/2001 and to aid for local marketing of bananas produced in French Guiana and Réunion. Detailed rules for granting this aid should be laid down to reflect the distinctive cultural and climatic features of the outermost regions.

2. In view of the specific features of producing quality wines psr, specific rules should be laid down for the per-hectare aid in that sector.

3. Article 27 of Regulation (EEC) No 1453/2001 provides for aid to be granted for the production of up to 2 000 tonnes of fresh pineapples per year. Detailed rules should be laid down for applying that aid scheme.

4. As regards the aid for the production of green vanilla and the aid for the production of essential geranium and vetiver oils, these schemes can be applied satisfactorily within the existing market structures if arrangements are introduced for approving processors of dried vanilla or vanilla extracts and local bodies engaged in collecting and marketing the essential oils, which undertake in particular to pay the aid in full to the beneficiary producers and meet the control requirements. The quantities fixed in Article 12(2) and (3) of Regulation (EC) No 1452/2001 are ceilings which, according to the estimates communicated by the French authorities, are not expected to be reached in the medium term.

5. Article 16 of Regulation (EC) No 1452/2001 provides for aid for the transport of cane from the fields where it is harvested to the reception centres. The aid is to be determined on the basis of distance and other objective criteria relating to transport and may not exceed half the transport costs per tonne fixed on a flat-rate basis by the French authorities in each department. The aid is to apply to cane intended for processing into both sugar and rum.

6. Transport costs vary considerably in the French overseas departments. Maximum flat-rate aid amounts should therefore be fixed which comply with an average amount of aid for each department and which do not exceed half the transport costs per tonne, up to maximum amounts fixed on a flat-rate basis. The French authorities are to determine the unit amounts granted to producers in the light of objective criteria established by them. Such amounts may vary in particular according to the tonnage transported.

7. Aid applications must be supported by evidence of transport. Given the specific features of the scheme, France should be allowed to adopt all additional measures necessary for the purposes of applying it.

8. Under Article 13 of Regulation (EC) No 1452/2001, firstly a list should be drawn up of products eligible for the aid, within the limits of annual quantities established for each category and in line with the scope for the development of local production and processing, and the aid amounts fixed and, secondly, special detailed rules should be adopted to ensure that the system is monitored and that the conditions for granting the aid are met, in particular as regards contracts and the minimum price guaranteed to producers. To that end certain provisions of Commission Regulation (EC) No 449/2001 of 2 March 2001 laying down detailed rules for the application of Council Regulation (EC) No 2201/96 as regards the system of production aid for products processed from fruit and vegetables⁽¹⁸⁾, as last amended by Regulation (EC) No 1426/2002⁽¹⁹⁾, should be incorporated into this Regulation.

9. Article 17 of Regulation (EC) No 1452/2001 and Article 18 of Regulation (EC) No 1453/2001 provide for Community aid to be granted for the direct processing of sugar cane produced in the French overseas departments and Madeira into sugar syrup, sucrose syrup or agricultural rum.

10. This aid is paid on condition that the sugar-cane producers are paid a minimum price, up to maximum annual quantities fixed in the abovementioned Articles. The aid is calculated so that the ratio between the two aid amounts takes account of the quantities of raw material used. In the interests of clarity the amounts for rum should be expressed as pure alcohol.

11. A minimum price should be fixed for sugar cane intended for the manufacture of sugar syrup or rum which takes account of the consultations held by the competent authorities with sugar-cane producers and the businesses processing the cane into syrup and rum.

12. Article 20 of Regulation (EC) No 1453/2001 provides for aid to be granted to purchase rectified concentrated musts and wine alcohol for the preparation of Madeira liqueur wine. The maximum volume of the above products to be brought to Madeira should be fixed having regard to the methods traditionally used to produce Madeira wine. The amount of the aid should be fixed taking account of the costs of supply to Madeira resulting from its geographical situation and the price of products in the Community and on the world market. Experience has shown that aid of EUR 12,08/hectolitre is sufficient to compensate for these additional costs.

13. Under Articles 20 and 31 of Regulation (EC) No 1453/2001 aid may be granted for the ageing of Madeira liqueur wines and Azores ‘verdelho’ wine. The detailed rules for granting that aid should be laid down taking account of the specific features of the products concerned.

14. Article 12 of Regulation (EC) No 1452/2001, Article 5 of Regulation (EC) No 1453/2001 and Article 9 of Regulation (EC) No 1454/2001 provide for the grant of aid for the marketing of the products referred to in those Articles on the local markets of the outermost regions. The aid must be fixed on a flat-rate basis in the light of the average value of each of the products to be determined, within the limits of annual quantities established for each product category. So that this provision can be implemented, a list should be drawn up of the products eligible for the aid based on the supply requirements of the regional markets, the product categories should be established on the basis of the average value of the products covered, a maximum quantity should be fixed for all the outermost regions and detailed rules should be laid down for granting the aid.

15. Specific rules should be laid down for monitoring the quantities fixed and ensuring that the conditions set for granting the aid are met. To that end, the local marketing scheme can be administered satisfactorily if arrangements are introduced for approving operators in the distribution and catering sectors, local authority facilities and food processing who undertake to meet certain requirements.

16. Under Article 20 of Regulation (EC) No 1453/2001, aid may be granted for the shipment of Madeira wine and marketing it on the Community market. The transitional period during which the aid is to be granted should be fixed and the detailed rules for granting it should be laid down. In view of the scheme's objectives, the aid should be granted for a long enough period to permit commercial outlets and production to be consolidated.

17. For the purposes of granting the different aid amounts, a distinction should be made between the producer organisations referred to in Regulation (EC) No 2200/96 and other producers.

18. As regards the aid for marketing in the rest of the Community under annual contracts as referred to in Articles 5 and 15 of Regulation (EC) No 1452/2001, Article 6 of Regulation (EC) No 1453/2001 and Article 10 of Regulation (EC) No 1454/2001, it is necessary to define the nature of the annual contract and specify the base to be used for calculating the amount of aid, fixed at 10 % of the value of the production marketed, free at destination, and 13 % where Article 15(4) of Regulation (EC) No 1452/2001, Article 6(4) of Regulation (EC) No 1453/2001 and Article 10(4) of Regulation (EC) No 1454/2001 are applied, respectively. Lastly, arrangements should be made for allocating the quantities qualifying for aid where the limits are overrun.

19. Commission Regulation (EC) No 412/97 of 3 March 1997 laying down detailed rules for the application of Council Regulation (EC) No 2200/96 as regards the recognition of producer organisations⁽²⁰⁾, as last amended by Regulation (EC) No 1120/2001⁽²¹⁾, fixes the minimum number of producers and minimum volume of marketable production required for creation of a producer organisation. In the case of France, no distinctions are provided for to take account of the specific production conditions in the French overseas departments. Such a distinction should however be made so that different production situations can be duly taken into account. To that end, the table in the Annex to Regulation (EC) No 412/97 should be amended to include the French overseas departments in the category of regions for which specific conditions are laid down.

20. General provisions applicable to these measures as a whole, especially those concerning aid applications, notification, monitoring and the consequences of undue payments, should be set out in a separate title.

21. The coverage of aid applications and the documents to be attached with a view to assessing their justification should be specified for each aid scheme.

22. Where aid applications contain obvious errors, they should be adjustable at any time.

23. The deadlines for submitting and amending aid applications must be complied with to enable the national authorities to programme and subsequently carry out effective checks on the correctness of the aid applications. Time limits should therefore be fixed beyond which late submissions can no longer be accepted. Moreover, a reduction should be applied to encourage growers to respect the time limits.

24. Growers should be allowed to withdraw their aid applications or parts thereof at any time provided that the competent authority has not yet informed the grower of any errors contained in the aid application or announced an on-the-spot check which reveals errors in the part concerned by the withdrawal.

25. Compliance with the rules on aid schemes managed under the integrated administration and control system should be effectively monitored. To this end, and to achieve a harmonised level of monitoring in all Member States, the criteria and technical procedures for carrying out administrative and on-the-spot checks should be set out in detail. Where appropriate, the Member States should strive to combine the various checks under this Regulation with those provided for under other Community provisions.

26. The minimum number of growers to undergo on-the-spot checks under the various aid schemes should be determined.

27. The sample for the minimum rate of on-the-spot checks should be drawn partly on the basis of a risk analysis and partly at random. The main factors to be taken into consideration for the risk analysis should be specified.

28. Where significant irregularities are found, the level of the on-the-spot checks should be increased during the current and the following year in order to attain an acceptable level of assurance that the aid applications concerned are correct.

29. For on-the-spot checks to be effective, it is important that the inspectors be informed of the reasons why the growers concerned have been selected for an on-the-spot check. The Member States should keep records of such information.

30. In order to enable the national authorities and any competent Community authority to follow up on-the-spot checks carried out, the details of checks should be recorded in an inspection report. Growers or their representatives should be given the opportunity to sign the report. However, in the case of remote-sensing checks, the Member States should be allowed to provide for this right only in cases where the check reveals irregularities. Moreover, irrespective of the kind of on-the-spot check carried out, the grower should receive a copy of the report if irregularities are found.

31. To protect the Community's financial interests effectively, adequate measures should be adopted to combat irregularities and fraud.

32. Reductions and exclusions should be determined having regard to the principle of proportionality and the special problems arising in cases of force majeure, exceptional circumstances and natural disasters. Such reductions and exclusions should be graded according to the gravity of the irregularity committed and should go as far as the total exclusion from one or several aid schemes for a specified period.

33. As a general rule, reductions and exclusions should not be applied where growers have submitted factually correct information or can show otherwise that they are not at fault.

34. Growers who notify the competent national authorities at any time of incorrect aid applications should not be subject to reductions or exclusions irrespective of the reason for the incorrectness, provided the grower concerned has not been informed of the competent authority's intention to carry out an on-the-spot check and provided the authority has not already informed the grower of any irregularity in the application. The same should apply to incorrect data contained in the computerised database.

35. Where various reductions are to be applied to the same grower, they should be applied independently from each other and individually. Moreover, the reductions and exclusions provided for under this Regulation should be applied without prejudice to additional penalties under any other provisions of Community or national law.

36. The administration of small amounts is a burdensome task for the competent authorities of the Member States. They should therefore be authorised not to pay amounts of aid that are below a certain minimum limit and not to request reimbursement of incorrectly paid amounts when the sums involved are negligible.

37. Growers who are unable to fulfil the obligations provided for under the sectoral rules as a consequence of force majeure or exceptional circumstances should not lose their entitlement to the aid. It should be specified which cases, in particular, may be recognised by the competent authorities as cases of exceptional circumstances.

38. In order to ensure uniform application of the principle of good faith throughout the Community, where unduly paid amounts are recovered, the conditions under which that principle may be invoked should be laid down without prejudice to the treatment of the expenditure concerned in the context of the clearance of accounts under Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy⁽²²⁾.

39. As a general rule, the Member States should take any further measures necessary to ensure that this Regulation is properly implemented.

40. Where appropriate, the Commission should be informed of any measures taken by the Member States to implement the aid schemes provided for in this Regulation. In order to enable the Commission to monitor effectively, the Member States should regularly send it certain statistics on the aid schemes.

41. To ensure the application of the new area aid schemes introduced by the Council in certain sectors, the aid schemes referred to in Article 1(b), (c), (f) and (g) and the aid for local marketing of bananas other than plantains produced in French Guiana and Réunion should apply from 1 January 2002.

42. To enable operators to complete the performance of annual contracts they have already concluded, the provision governing the marketing periods or years should not be applied to current contracts.

43. The measures provided for in this Regulation are in accordance with the opinion of the joint Management Committee for Cereals, Fresh Fruit and Vegetables, Processed Fruit and Vegetables, Wine, Hops, Live Plants, and Sugar,

HAS ADOPTED THIS REGULATION: