13. 7. 93 Official Journal of the European Communities No L 170/§ COMMISSION REGULATION (EEC) No 1858/93 of 9 July 1993 laying down detailed rules for applying Council Regulation (EEC) No 404/93 as regards the aid scheme to compensate for loss of income from marketing in the banana sector THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organization of the market in bananas ('), and in particular Articles 12 (4) and (8), 14 and 30 thereof; Having regard to Council Regulation (EEC) No 3813/92 of 28 December 1992 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (3), and in particular Article 6 (2) thereof, Whereas, in order to ensure that Commmunity produc- tion is maintained and in order not to put producers in a situation which is less favourable than their current one, Regulation (EEC) No 404/93 provides for compensatory aid in order to cover the loss of income, likley to result from the application of the new scheme; Whereas in order to be eligible for the compensatory aid the bananas must comply with Community quality stan- dards ; whereas, however, pending the entry into force of these standards, provision should be made for the bananas to be graded, packed and removed from the packing shed so that they may be marketed ; Whereas, for determining the ‘flat-rate reference income’, account should be taken of the mot recent years for which complete data are available ; whereas this flat-rate reference income must be calculated for the ex packing shed stage and must correspond to the average of the prices at the delivered at first port of unloading in the rest of the Community stage for bananas produced in the most representative regions on the Community, less the average costs of transport and delivery FOB ; Whereas the ‘average production income’ must be calcu- lated for each year for the same ex-packing shed stage on the basis of the information to be provided by the Member States ; ' Whereas the mechanism for reducing, by region and producer, the quantities of bananas marketed for which ) OJ No L 47, 25. 2. 1993, p. 1. O] No L 387, 31. 12. 1992, p. 1. aid is granted should be determined, to provide for the situation where the volumes indicated in applications exceed the quantities laid down pursuant to Article 12 of Regulation (EEC) No 404/93; whereas this mechanism must make possible some offsetting between the various production regions within the overall quantity laid down in Regulation (EEC) No 404/93 and operate in proportion to the quantities marketed, in the case of both the production regions and indivual producers ; Whereas detailed rules on the submission of applications and the payment of the compensatory aid should be laid down ; whereas, in view of the fact that the compensatory aid for a given year cannot be determined and paid until the beginning of the following year, it is necessar to grant advances in order to maintain normal disposal of Community produce and achieve the measures objective ; whereas, however, these advances must be paid subject to a security to cover the possibility of the aid eventually paid being less than the total of the advances; Whereas Regulation (EEC) No 404/93 lays down that the compensatory aid is to be granted to producers who are members of a recognized producers’ organization within the meaning of Article 5 of that Regulation; whereas, pending the creation of these organizations and their recognition, it is necessary to make provision for aid applications to be submitted by individual producers; Whereas the economic objective of the aid is attained when the bananas are marketed ; whereas, however, to take account of the market organization system, the agri- cultural conversion rate applicable at the beginning of each quarterly marketing period should be used to convert the aid and advances into national currency; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Bananas, HAS ADOPTED THIS REGULATION : Article 1 The compensatory aid provided for in Article 12 of Regu- lation (EEC) No 404/93 shall be granted for the marke- ting of fresh bananas falling within CN code ex 0803, excluding plantains, which comply with the quality stan- dards laid down pursuant to Title I of that Regulation.