L 72/54 Official Journal of the European Union 11.3.2004 COMMISSION REGULATION (EC) No 444/2004 of 10 March 2004 amending Regulation (EC) No 1535/2003 laying down detailed rules for applying Council Regu- lation (EC) No 2201/96 as regards the aid scheme for products processed from fruit and vegetables THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 2201/96 of 28 October 1996 on the common organisation of the markets in processed fruit and vegetable products ("), and in particular Articles 6, 25 and 27(1) thereof, Whereas: (1) Since publication of Commission Regulation (EC) No 1535/2003 (%), the Member States and the Commission have identified a number of ways of improving the provisions on the management of contracts between producers and processors. (2)  Checks should be made more operational, in particular as regards the checks to be carried out to verify the yield of raw materials processed into the finished product obtained. (3)  The conditions governing interest rates for the reduction of the aid in case of discrepancy between the aid applied for and the amount due should be brought into line with Article 49(3) of Commission Regulation (EC) No 2419/2001 of 11 December 2001 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes established by Council Regulation (EEC) No 3508/92 (%). (4)  To ensure the smooth operation of the system, the disposal of the production of producers participating in the system should be ensured in cases where processors are not in a position to comply with their contractual obligations. (5)  Notification procedures should be improved in the case of processing in another Member State, to make them more flexible and adapt them to the specific circum- stances, without compromising checking requirements under any circumstances. (6)  In order to comply with the principle of proportionality, the provisions on the penalties to be applied to proces- sors who do not pay the contract price to producers of raw materials should be clarified. (7)  Regulation (EC) No 1535/2003 should therefore be amended accordingly. () OJ L 297, 21.11.1996, p. 29. Regulation last amended by Commis- sion Regulation (EC) No 453/2002 (O] L 72, 14.3.2002, p. 9). () OJ L 218, 30.8.2003, p. 14. () OJ L 327, 12.12.2001, p. 11. Regulation last amended by Regu- lation (EC) No 118/2004 (OJ L 17, 24.1.2004, p. 7). (8)  In order to respect the legitimate expectations of the operators concerned, this Regulation should apply from the 2004/05 marketing year. (9)  However, since contracts between tomato producers and processors for the 2004/05 marketing year have already been signed, the application of certain provisions on contracts should be postponed until the 2005/06 marketing year in the case of tomatoes. (10)  The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Products Processed from Fruit and Vege- tables, HAS ADOPTED THIS REGULATION: Atrticle 1 Regulation (EC) No 1535/2003 is amended as follows: 1. Article 7 is amended as follows: (a) paragraph 1 is replaced by the following: ‘1. Contracts must specify, in particular: (a) the name and address of the signatory producer organisation; (b) the name and address of the processor; (c) the quantities of raw materials to be delivered for processing; (d) the period covered and the provisional schedule of deliveries to processors; () an undertaking by the processors to process the quantities delivered under the contract in question; (f) the price to be paid to the producer organisation for the raw materials, which may vary by variety and/or quality and/or delivery period and shall be paid only by bank or post office transfer; (2) the compensation payable should either party fail to fulfil its contractual obligations, in particular as regards the payment in full of the price specified in the contract, the respect of time limits for payment, and the obligation to deliver and accept the quantities covered by the contract.