Input:
19.1.2013
EN
Official Journal of the European Union
L 17/13
REGULATION (EU) No 20/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 15 January 2013
implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Acting in accordance with the ordinary legislative procedure (1),
Whereas:
(1)
On 23 April 2007 the Council authorised the Commission to open negotiations with certain countries of Central America (‘Central America’) for an Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (‘the Agreement’) on behalf of the Union and its Member States.
(2)
Those negotiations have been concluded and the Agreement was signed on 29 June 2012, received the consent of the European Parliament on 11 December 2012 and is to apply as provided for in Article 353 of the Agreement.
(3)
It is necessary to lay down the most appropriate procedures to guarantee the effective application of certain provisions of the Agreement which concern the bilateral safeguard clause and for applying the stabilisation mechanism for bananas that has been agreed with Central America.
(4)
It is also necessary to create appropriate safeguard mechanisms to prevent serious harm to the Union banana growing sector which is of great importance to the agricultural producers of many of the outermost regions of the Union. The limited ability of those regions to diversify, owing to their natural characteristics, makes the banana sector particularly vulnerable. It is therefore essential to create effective mechanisms to address preferential imports from third countries concerned, in order to guarantee that Union banana production is maintained under the best possible conditions, as it is a crucial employment sector in certain areas, especially in the outermost regions.
(5)
The terms ‘serious injury’, ‘threat of serious injury’ and ‘transition period’ as referred to in Articles 104 and 105 of the Agreement should be defined.
(6)
Safeguard measures should be considered only if the product in question is imported into the Union in such increased quantities, in absolute terms or relative to Union production, and under such conditions as to cause, or threaten to cause, serious injury to Union producers of like or directly competitive products as laid down in Article 104 of the Agreement.
(7)
Specific safeguard provisions should be available in case the product in question is imported in such increased quantities and under such conditions as to cause or threaten to cause serious deterioration in the economic situation of any of the outermost regions as referred to in Article 349 of the Treaty on the Functioning of the European Union (TFEU).
(8)
Safeguard measures should take one of the forms referred to in Article 104(2) of the Agreement.
(9)
The tasks of following up and reviewing the Agreement, carrying out investigations and, if necessary, imposing safeguard measures should be carried out in the most transparent manner possible.
(10)
The Commission should submit an annual report to the European Parliament and to the Council on the implementation of the Agreement and the application of the safeguard measures and the stabilisation mechanism for bananas.
(11)
The challenges in Central America as regards human, social, labour and environmental rights in connection with products from that region require a close dialogue between the Commission and Union civil society organisations.
(12)
The importance of complying with the international labour standards drawn up and supervised by the International Labour Organisation should be stressed.
(13)
The Commission should monitor the observance by Central America of the social and environmental standards laid down in Title VIII of Part IV of the Agreement.
(14)
There should be detailed provisions on the initiation of proceedings. The Commission should receive information including available evidence from the Member States of any trends in imports which might call for the application of safeguard measures.
(15)
The reliability of statistics on all imports from Central America to the Union is therefore crucial to determining whether the conditions to apply safeguard measures are met.
(16)
In some cases, an increase of imports concentrated in one or several of the Union's outermost regions or Member States may cause, or threaten to cause, serious deterioration or serious injury in their economic situation. In the event that there is an increase of imports concentrated in one or several of the Union's outermost regions or Member States, the Commission should be able to introduce prior surveillance measures.
(17)
If there is sufficient prima facie evidence to justify the initiation of a proceeding, the Commission should publish a notice as provided for in Article 111(3) of the Agreement in the Official Journal of the European Union.
(18)
There should be detailed provisions on the initiation of investigations, access to and inspections by interested parties of the information gathered, hearings for the interested parties involved and the opportunities for those parties to submit their views as provided for in Article 111(3) of the Agreement.
(19)
The Commission should notify Central America in writing of the initiation of an investigation and notify the results of the investigations to the Association Committee as provided for in Article 116 of the Agreement.
(20)
It is also necessary, pursuant to Article 112 of the Agreement, to set time limits for the initiation of an investigation and for determinations as to whether or not safeguard measures are appropriate, with a view to ensuring that such determinations are made quickly, in order to increase legal certainty for the economic operators concerned.
(21)
An investigation should precede the application of any safeguard measure, subject to the Commission being allowed to apply provisional safeguard measures in critical circumstances as referred to in Article 106 of the Agreement.
(22)
Close monitoring should facilitate a timely decision concerning the possible initiation of an investigation or imposition of measures. Therefore the Commission should regularly monitor imports of bananas from the date of application of the Agreement. Monitoring should be extended to other sectors upon a duly justified request.
(23)
There should be a possibility to suspend swiftly for a maximum period of three months the preferential customs duties when imports exceed a defined annual trigger import volume. The decision whether or not to apply the stabilisation mechanism for bananas should take into account the stability of the Union market for bananas.
(24)
Safeguard measures should be applied only to the extent, and for such time, as may be necessary to prevent serious injury and to facilitate adjustment. The maximum duration of safeguard measures should be determined and specific provisions regarding extension and review of such measures should be laid down, as referred to in Article 105 of the Agreement.
(25)
The Commission should enter into consultations with the Central American country affected by measures.
(26)
The implementation of the bilateral safeguard clause and the stabilisation mechanism for bananas provided for in the Agreement requires uniform conditions for the adoption of provisional and definitive safeguard measures, for the imposition of prior surveillance measures, for the termination of an investigation without measures and for suspending temporarily the preferential customs duty established under the stabilisation mechanism for bananas that has been agreed with Central America. In order to ensure uniform conditions for the implementation of this Regulation, those measures should be adopted by the Commission in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers (2).
(27)
The advisory procedure should be used for the adoption of surveillance and provisional safeguard measures given the effects of those measures and their sequential logic in relation to the adoption of definitive safeguard measures. Where a delay in the imposition of provisional safeguard measures would cause damage which would be difficult to repair, the Commission should adopt immediately applicable implementing acts.
(28)
Given the nature and the relatively short duration of the measures foreseen under the stabilisation mechanism for bananas, and in order to prevent a negative impact on the situation of the Union market for bananas, the Commission should also adopt immediately applicable implementing acts for the temporary suspension of the preferential customs duty established under the stabilisation mechanism for bananas, or to determine that such temporary suspension is not appropriate. Where such immediately applicable implementing acts are applied, the advisory procedure should be used.
(29)
The Commission should make diligent and effective use of the stabilisation mechanism for bananas in order to avoid a threat of serious deterioration or a serious deterioration for producers in the outermost regions in the Union. From 1 January 2020, the general bilateral safeguard mechanism, including the special provisions for outermost regions, remains applicable.
(30)
For purposes of adopting the necessary implementing rules for the application of the rules contained in Appendix 2A of Annex II (Concerning the definition of the concept of ‧originating products‧ and methods of administrative co-operation) and Appendix 2 of Annex I (Elimination of Customs Duties) to the Agreement, Article 247a of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (3) should be applied.
(31)
This Regulation should apply only to products originating in the Union or in Central America,
HAVE ADOPTED THIS REGULATION:
CHAPTER I
SAFEGUARD PROVISIONS
Article 1
Definitions
For the purposes of this Regulation:
(a)
‘product’ means a good originating in the Union or in a Central American country. A product subject to an investigation may cover one or several tariff lines or a sub-segment thereof depending on the specific market circumstances, or any product segmentation commonly applied in the Union industry;
(b)
‘interested parties’ means parties affected by the imports of the product in question;
(c)
‘Union industry’ means the Union producers as a whole of the like or directly competitive products, operating within the territory of the Union, Union producers whose collective output of the like or directly competitive products constitutes a major proportion of the total Union production of those products, or, where a like or a directly competitive product is only one of several products that are made by the Union producers, the specific operations that are involved in the production of the like or directly competitive product;
(d)
‘serious injury’ means a significant overall impairment;
(e)
‘threat of serious injury’ means serious injury that is clearly imminent;
(f)
‘serious deterioration’ means significant disturbances in a sector or in Union industry;
(g)
‘threat of serious deterioration’ means significant disturbances that are clearly imminent;
(h)
‘transitional period’ means ten years from the date of application of the Agreement, for a product for which the Schedule of the EU Party, as set out in Annex I (Elimination of Customs Duties) to the Agreement (‘Tariff Elimination Schedule’) provides for a tariff elimination period of less than ten years, or the tariff elimination period plus three years for a product for which the Tariff Elimination Schedule provides for a tariff elimination period of ten or more years;
(i)
‘Central American country’ means Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua or Panama.
A determination of the existence of a threat of serious injury within the meaning of point (e) of the first paragraph shall be based on verifiable facts and not merely on an allegation, a conjecture or a remote possibility. In order to determine the existence of a threat of serious injury, forecasts, estimations and analyses made on the basis of factors referred to in Article 5(5), shall, inter alia, be taken into account.
Article 2
Principles
1.   A safeguard measure may be imposed in accordance with this Regulation where a product originating in a Central American country is, as a result of the reduction or the elimination of the customs duties on that product, imported into the Union in such increased quantities, in absolute terms or relative to Union production, and under such conditions as to cause or threaten to cause serious injury to the Union industry.
2.   A safeguard measure may take one of the following forms:
(a)
a suspension of a further reduction of the rate of customs duty on the product concerned provided for in the Tariff Elimination Schedule;
(b)
an increase in the rate of customs duty on the product concerned to a level which does not exceed the lesser of:
—
the most-favoured-nation (‘MFN’) applied rate of customs duty on the product in effect at the time the measure is taken; or
—
the MFN applied rate of customs duty on the product in effect on the day immediately preceding the date of entry into force of the Agreement.
3.   A safeguard measure shall not be applied within the limits of the preferential duty free tariff quotas granted by the Agreement.
Article 3
Monitoring
1.   The Commission shall monitor the evolution of import statistics of bananas from Central American countries. For that purpose, it shall cooperate and exchange data on a regular basis with Member States and the Union industry.
2.   Upon a duly justified request by the industries concerned, the Commission may consider extending the scope of the monitoring to other sectors.
3.   The Commission shall present an annual monitoring report to the European Parliament and to the Council on updated statistics on imports from Central American countries of bananas and those sectors to which monitoring has been extended.
4.   The Commission shall monitor the observance by Central American countries of the social and environmental standards laid down in Title VIII of Part IV of the Agreement.
Article 4
Initiation of proceedings
1.   A proceeding shall be initiated upon request by a Member State, by any legal person or any association not having legal personality acting on behalf of the Union industry, or on the Commission's own initiative if it is apparent to the Commission that there is sufficient prima facie evidence, as determined on the basis of factors referred to in Article 5(5), to justify such initiation.
2.   The request to initiate a proceeding shall contain evidence that the conditions for imposing the safeguard measure set out in Article 2(1) are met. The request shall generally contain the following information: the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports and changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment.
3.   A proceeding may also be initiated in the event that there is a surge of imports concentrated in one or several Member States, or outermost regions, provided that there is sufficient prima facie evidence that the conditions for initiation are met, in accordance with Article 5(5).
4.   A Member State shall inform the Commission if trends in imports from a Central American country appear to call for safeguard measures. That information shall include the evidence available in accordance with Article 5(5).
5.   The Commission shall provide that information to the Member States when it receives a request to initiate a proceeding or when it considers initiation of a proceeding to be appropriate on its own initiative pursuant to paragraph 1.
6.   Where it is apparent that there is sufficient prima facie evidence in accordance with Article 5(5) to justify the initiation of a proceeding the Commission shall initiate proceedings and shall publish a notice thereof in the Official Journal of the European Union. Initiation shall take place within one month of receipt by the Commission of the request or information pursuant to paragraph 1.
7.   The notice referred to in paragraph 6 shall:
(a)
give a summary of the information received, and require that all relevant information be communicated to the Commission;
(b)
state the period within which interested parties may make known their views in writing and submit information, if such views and information are to be taken into account during the proceeding;
(c)
state the period within which interested parties may apply to be heard orally by the Commission in accordance with Article 5(9).
Article 5
Investigations
1.   Following the initiation of the proceeding, the Commission shall commence an investigation. The period as set out in paragraph 3 shall start on the day the decision to initiate the investigation is published in the Official Journal of the European Union.
2.   The Commission may request Member States to supply information and Member States shall take whatever steps are necessary in order to give effect to any such request. If that information is of general interest and is not confidential within the meaning of Article 12, it shall be added to the non-confidential files as provided for in paragraph 8 of this Article.
3.   The investigation shall, where possible, be concluded within six months of its initiation. That time limit may be extended by a further period of three months in exceptional circumstances such as the involvement of an unusually high number of interested parties or complex market situations. The Commission shall notify all interested parties of any such extension and explain the reasons therefor.
4.   The Commission shall seek all information it considers necessary to make a determination with regard to the conditions set out in Article 2(1), and, shall, where appropriate, endeavour to verify that information.
5.   In the investigation the Commission shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of the Union industry, in particular, the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports and changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment. This list is not exhaustive and other relevant factors may also be taken into consideration by the Commission for its determination of the existence of serious injury or threat of serious injury, such as stocks, prices, return on capital employed, cash flow, and other factors which are causing or may have caused serious injury, or threaten to cause serious injury to the Union industry.
6.   Interested parties who have submitted information pursuant to Article 4(7)(b) and representatives of the Central American country concerned may, upon written request, inspect all information made available to the Commission in connection with the investigation other than internal documents prepared by the Union authorities or those of the Member States, provided that that information is relevant to the presentation of their case and not confidential within the meaning of Article 12 and that it is used by the Commission in the investigation. Interested parties who have submitted information may communicate their views on the information to the Commission. Where there is sufficient prima facie evidence in support of those views, the Commission shall take them into consideration.
7.   The Commission shall ensure that all data and statistics which are used for the investigation are available, comprehensible, transparent and verifiable.
8.   The Commission shall, as soon as the necessary technical framework is in place, ensure password-protected online access to the non-confidential file, which it shall manage and through which all information which is relevant and is not confidential within the meaning of Article 12 shall be disseminated. Interested parties, Member States and the European Parliament shall be granted access to that online platform.
9.   The Commission shall hear interested parties, in particular where they have made a written application within the period laid down in the notice published in the Official Journal of the European Union, showing that they are actually likely to be affected by the outcome of the investigation and that there are special reasons for them to be heard orally.
The Commission shall hear interested parties on further occasions if there are special reasons therefor.
10.   Where information is not supplied within the time limits set by the Commission, or where the investigation is significantly impeded, the Commission may make findings on the basis of the facts available. Where the Commission finds that any interested party or any third party has supplied it with false or misleading information, it shall disregard that information and may make use of the facts available.
11.   The Commission shall notify the Central American country concerned in writing of the initiation of an investigation.
Article 6
Prior surveillance measures
1.   The Commission may adopt prior surveillance measures in regard to imports from a Central American country where:
(a)
the trend in imports of a product is such that it could lead to one of the situations referred to in Articles 2 and 4; or
(b)
there is a surge of imports of bananas concentrated in one or several Member States, or in one or several of the Union's outermost regions.
2.   The Commission shall adopt prior surveillance measures in accordance with the advisory procedure referred to in Article 14(2).
3.   Prior surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid at the end of the second six-month period following the first six months after their introduction.
Article 7
Imposition of provisional safeguard measures
1.   Provisional safeguard measures shall be applied in critical circumstances where a delay would cause damage which would be difficult to repair, pursuant to a preliminary determination on the basis of the factors referred to in Article 5(5) that there is sufficient prima facie evidence that imports of a product originating in a Central American country have increased as a result of the reduction or elimination of a customs duty in accordance with the Tariff Elimination Schedule, and such imports cause serious injury, or threat thereof, to the Union industry.
The Commission shall adopt provisional safeguard measures in accordance with the advisory procedure referred to in Article 14(2). In cases of imperative grounds of urgency, including the case referred to in paragraph 2 of this Article, the Commission shall adopt immediately applicable provisional safeguard measures in accordance with the procedure referred to in Article 14(4).
2.   Where a Member State requests immediate intervention by the Commission and where the conditions set out in paragraph 1 are met, the Commission shall take a decision within five working days of receiving the request.
3.   Provisional safeguard measures shall not apply for more than 200 calendar days.
4.   Should the provisional safeguard measures be repealed because the investigation shows that the conditions set out in Article 2(1) are not met, any customs duty collected as a result of those provisional safeguard measures shall be refunded automatically.
5.   Provisional safeguard measures shall apply to every product which is put into free circulation after the date of entry into force of those measures. However, such measures shall not prevent the release for free circulation of products already on their way to the Union where the destination of such products cannot be changed.
Article 8
Termination of investigations and proceedings without measures
1.   Where the facts as finally established show that the conditions set out in Article 2(1) are not met, the Commission shall adopt a decision terminating the investigation and proceeding in accordance with the examination procedure referred to in Article 14(3).
2.   The Commission shall make public, with due regard to the protection of confidential information within the meaning of Article 12, a report setting out its findings and reasoned conclusions reached on all pertinent issues of fact and law.
Article 9
Imposition of definitive safeguard measures
1.   Where the facts as finally established show that the conditions set out in Article 2(1) are met, the Commission shall refer the matter to the Association Committee for examination in accordance with Article 116 of the Agreement. Where no recommendation has been made by the Association Committee or no other satisfactory solution has been reached within 30 days of the referral, the Commission may adopt a decision imposing definitive safeguard measures in accordance with the examination procedure referred to in Article 14(3).
2.   The Commission shall make public, with due regard to the protection of confidential information within the meaning of Article 12, a report containing a summary of the material facts and considerations relevant to the determination.
Article 10
Duration and review of safeguard measures
1.   A safeguard measure shall remain in force only for such period of time as may be necessary to prevent or remedy the serious injury to Union industry and to facilitate adjustment. That period shall not exceed two years, unless it is extended under paragraph 3.
2.   A safeguard measure shall remain in force, pending the outcome of the review under paragraph 3, during any extension period.
3.   The initial period of duration of a safeguard measure may exceptionally be extended by up to two years provided that the safeguard measure continues to be necessary to prevent or remedy serious injury to Union industry and that there is evidence that the Union industry is adjusting.
4.   Any extension pursuant to paragraph 3 of this Article shall be preceded by an investigation upon a request by a Member State, by any legal person or any association not having legal personality acting on behalf of the Union industry, or on the Commission's own initiative if there is sufficient prima facie evidence that the conditions laid down in paragraph 3 of this Article are met, on the basis of factors referred to in Article 5(5).
5.   The initiation of an investigation shall be published in accordance with Article 4(6) and (7). The investigation and any decision regarding an extension pursuant to paragraph 3 of this Article shall be made in accordance with Articles 5, 8 and 9.
6.   The total duration of a safeguard measure shall not exceed four years, including any provisional safeguard measure.
7.   A safeguard measure shall not be applied beyond the expiry of the transitional period, except with the consent of the Central American country concerned.
8.   No safeguard measure shall be applied to the import of a product that has previously been subject to such a measure, unless a period of time equal to half of that during which the safeguard measure was applied for the immediately preceding period has elapsed.
Article 11
Outermost regions of the Union
Where any product originating in a Central American country is being imported in such increased quantities and under such conditions as to cause or threaten to cause serious deterioration in the economic situation of one or several of the Union's outermost regions, as referred to in Article 349 TFEU, a safeguard measure may be imposed, in accordance with this Chapter.
Article 12
Confidentiality
1.   Information received pursuant to this Regulation shall be used only for the purpose for which it was requested.
2.   Neither information of a confidential nature nor any information provided on a confidential basis received pursuant to this Regulation shall be disclosed without the express consent of the supplier of such information.
3.   Each request for confidentiality shall state the reasons why the information is confidential. However, if the supplier of the information requests that the information is not made public or disclosed, in full or in summary form, and if that request is unjustified, the information concerned may be disregarded.
4.   Information shall in any case be considered to be confidential if its disclosure is likely to have a significantly adverse effect upon the supplier or the source of such information.
5.   Paragraphs 1 to 4 shall not preclude reference by the Union authorities to general information and in particular to reasons on which decisions taken pursuant to this Regulation are based. Those authorities shall, however, take into account the legitimate interest of natural and legal persons concerned that their business secrets should not be divulged.
Article 13
Report
1.   The Commission shall submit an annual report to the European Parliament and to the Council on the application, implementation and fulfilment of obligations of Part IV of the Agreement and of this Regulation.
2.   The report shall include information about the application of provisional and definitive measures, prior surveillance measures, regional surveillance and safeguard measures and the termination of investigations and proceedings without measures.
3.   The report shall include information on the activities of the various bodies responsible for monitoring the implementation of the Agreement, including on fulfilment of obligations under Title VIII of Part IV of the Agreement and on activities with civil society advisory groups.
4.   The report shall set out a summary of the statistics and the evolution of trade with Central American countries and shall include up-to-date statistics on banana imports from Central American countries.
5.   The European Parliament may, within one month of submission of the Commission's report, invite the Commission to an ad hoc meeting of its responsible committee to present and explain any issues related to the implementation of this Regulation.
6.   No later than three months after submitting its report to the European Parliament and to the Council, the Commission shall make it public.
Article 14
Committee procedure
1.   The Commission shall be assisted by the Committee established by Article 4(1) of Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports (4) (‘the Committee’). The Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2.   Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.
3.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
4.   Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof, shall apply.
5.   The Committee may examine matters relating to the application of this Regulation, raised by the Commission or at the request of a Member State. Member States may request information and may exchange views in the Committee or directly with the Commission.
CHAPTER II
STABILISATION MECHANISM FOR BANANAS
Article 15
Stabilisation mechanism for bananas
1.   For bananas originating in Central America falling under heading 0803 00 19 of the Combined Nomenclature (fresh Bananas, excluding plantains) and listed under category ‘ST’ in the Tariff Elimination Schedule, a stabilisation mechanism shall apply until 31 December 2019.
2.   A separate annual trigger import volume is set for imports of products referred to in paragraph 1, as indicated in the table in the Annex. The importation of the products referred to in paragraph 1 at the preferential customs duty rate shall, in addition to the proof of origin established under Annex II (Concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation) to the Agreement, be subject to the presentation of an export certificate issued by the competent authority of the Republic of the Central American country from which the products are exported. Once the trigger volume for a Central American country is met during the corresponding calendar year, the Commission shall, in accordance with the urgency procedure referred to in Article 14(4), adopt an implementing act by which it may either temporarily suspend the preferential customs duty applied to products of the corresponding origin during that same year for a period of time not exceeding three months, and not going beyond the end of the calendar year or determine that such suspension is not appropriate.
3.   When deciding whether measures should be applied pursuant to paragraph 2, the Commission shall take into consideration the impact of the imports concerned on the situation of the Union market for bananas. That examination shall include factors such as: effect of the imports concerned on the Union price level, development of imports from other sources, overall stability of the Union market.
4.   Where the Commission decides to suspend the preferential customs duty applicable, it shall apply the lesser of the base rate of customs duty or the MFN rate of duty that in application at the time such action is taken.
5.   Where the Commission applies the actions referred to in paragraphs 2 and 4, it shall immediately enter into consultations with the affected Central American country or countries to analyse and evaluate the situation on the basis of available factual data.
6.   The application of the stabilisation mechanism for bananas set out in this Chapter is without prejudice to the application of any measures defined in Chapter I. Measures taken pursuant to the provisions of both chapters shall not, however, be applied simultaneously.
7.   The measures referred to in paragraphs 2 and 4 shall be applicable only during the period ending on 31 December 2019.
CHAPTER III
IMPLEMENTING RULES
Article 16
Implementing rules
The applicable provision for the purposes of adopting the necessary implementing rules for the application of the rules contained in Appendix 2A of Annex II (Concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation) and Appendix 2 of Annex I (Elimination of Customs Duties) to the Agreement shall be Article 247a of Regulation (EEC) No 2913/92.
CHAPTER IV
FINAL PROVISIONS
Article 17
Entry into force
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
It shall apply from the date of application of the Agreement as provided for in Article 353 thereof. A notice shall be published in the Official Journal of the European Union specifying the date of application of the Agreement.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Strasbourg, 15 January 2013.
For the European Parliament
The President
M. SCHULZ
For the Council
The President
L. CREIGHTON
(1)  Position of the European Parliament of 11 December 2012 (not yet published in the Official Journal) and decision of the Council of 20 December 2012.
(2)  OJ L 55, 28.2.2011, p. 13.
(3)  OJ L 302, 19.10.1992, p. 1.
(4)  OJ L 84, 31.3.2009, p. 1.
ANNEX
Table regarding trigger import volumes for the application of the stabilisation mechanism for bananas provided for in Appendix 3 of Annex I to the Agreement
Year
Trigger import volume, in tonnes
Costa Rica
Panama
Honduras
Guatemala
Nicaragua
El Salvador
Until 31 December 2010
1 025 000
375 000
50 000
50 000
10 000
2 000
1.1-31.12.2011
1 076 250
393 750
52 500
52 500
10 500
2 100
1.1-31.12.2012
1 127 500
412 500
55 000
55 000
11 000
2 200
1.1-31.12.2013
1 178 750
431 250
57 500
57 500
11 500
2 300
1.1-31.12.2014
1 230 000
450 000
60 000
60 000
12 000
2 400
1.1-31.12.2015
1 281 250
468 750
62 500
62 500
12 500
2 500
1.1-31.12.2016
1 332 500
487 500
65 000
65 000
13 000
2 600
1.1-31.12.2017
1 383 750
506 250
67 500
67 500
13 500
2 700
1.1-31.12.2018
1 435 000
525 000
70 000
70 000
14 000
2 800
1.1-31.12.2019
1 486 250
543 750
72 500
72 500
14 500
2 900
1.1.2020 and after
not applicable
not applicable
not applicable
not applicable
not applicable
not applicable
COMMISSION STATEMENT
The Commission welcomes the first reading agreement between the European Parliament and the Council on Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (1).
As envisaged in Regulation (EU) No 20/2013, the Commission will submit an annual report to the European Parliament and to the Council on the implementation of Part IV of the Agreement and will be ready to discuss with the responsible committee of the European Parliament any issues arising from the implementation of Part IV of the Agreement.
The Commission will attach particular importance to the effective implementation of commitments on trade and sustainable development in the Agreement, taking into account the specific information provided by the relevant monitoring bodies of the fundamental Conventions of the International Labour Organisation and the multilateral environmental agreements listed in Title VIII of Part IV of the Agreement. In this context, the Commission will also seek the views of the relevant civil society advisory groups.
After the expiry of the Banana Stabilisation Mechanism on 31 December 2019, the Commission will assess the situation of the Union market for bananas and the state of Union banana producers. The Commission will report its findings to the European Parliament and the Council and would include a preliminary assessment of the functioning of the ‘Programme d'Options Spécifiques à l'Éloignement et l'Insularité’ (POSEI) in preserving the banana production in the Union.
(1)  See page 13 of this Official Journal.
JOINT DECLARATION
The European Parliament and the Commission agree on the importance of close cooperation in monitoring the implementation of Part IV of the Agreement and Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (1). To that end they agree on the following:
—
Upon request by the responsible committee of the European Parliament, the Commission shall report to it on any specific concerns relating to the implementation by Central American countries of their commitments on trade and sustainable development.
—
If the European Parliament adopts a recommendation to initiate a safeguard investigation, the Commission will carefully examine whether the conditions under Regulation (EU) No 20/2013 for ex-officio initiation are fulfilled. If the Commission considers that the conditions are not fulfilled, it will present a report to the responsible committee of the European Parliament including an explanation of all the factors relevant to the initiation of such an investigation.
(1)  See page 13 of this Official Journal.

Output:
Association Agreement between the EU and Central America
Association Agreement between the EU and Central America
SUMMARY OF:
Agreement establishing an Association between the EU and Central America
Decision 2012/734/EU — signing, on behalf of the EU, the Agreement establishing an Association between the EU and Central America
Decision No 5/2014 of the EU-Central America Association Council — on the geographical indications to be included in Annex XVIII of the Agreement
Regulation (EU) No 20/2013 — implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the EU and Central America
WHAT IS THE AIM OF THE AGREEMENT, DECISIONS AND REGULATION?

The aims of the agreement include to:
strengthen and consolidate the relations between the parties through an association based on three interdependent and fundamental parts;
develop a privileged political partnership based on values, principles and common objectives, in particular the respect for and the promotion of democracy and human rights, sustainable development, good governance and the rule of law;
enhance bi-regional cooperation between the EU and Central America in all areas of common interest;
expand and diversify the parties’ bi-regional trade relation in conformity with the World Trade Organisation (WTO) agreement and this agreement;
strengthen and deepen regional integration in areas of common interest;
reinforce good neighbourly relations and the principle of peaceful resolution of disputes;
maintain and develop the level of good governance, social, labour and environmental standards;
foster increased trade and investment among the parties.
The Council decision concludes the agreement on behalf of the EU.
Decision No 5/2014 establishes the geographical indications of products originating from the 2 parties.
The regulation creates safeguard mechanisms to prevent serious harm to the EU banana-growing sector in the EU’s outermost regions.
KEY POINTS

The agreement consists of three strands:
1. Political dialogue
The objectives of the political dialogue between the 2 parties are to:
establish a privileged political partnership;
defend common values, principles and objectives by promoting them at international level, in particular at the United Nations (UN);
strengthen the UN as the core of the multilateral system, in order to enable it to tackle global challenges effectively;
enable a broad exchange of views, positions and information leading to joint initiatives at international level;
cooperate in the field of foreign and security policy, with the objective of coordinating their positions and taking joint initiatives of mutual interest in the relevant international forums.
Such dialogue can cover all aspects of mutual interest at international or regional level, however, a number of specific issues are mentioned including:
disarmament;
the fight against terrorism;
migration;
the environment.
2. Cooperation
The agreement gives priority to cooperation aimed at achieving the following objectives:
strengthening peace and security;
reinforcing democratic institutions, good governance and full applicability of the rule of law, gender equality, all forms of non-discrimination, cultural diversity, pluralism, promotion and respect for human rights, fundamental freedoms, transparency and citizen participation;
contributing to social cohesion;
promoting economic growth with a view to furthering sustainable development;
deepening the process of regional integration in Central America;
reinforcing production and management capacities and enhancing competitiveness.
3. Trade
The objectives of this strand include:
expanding and diversifying trade in goods;
facilitating trade in goods;
liberalising trade in services, in conformity with Article V of the General Agreement on Trade in Services (GATS);
promoting economic regional integration in the area of customs procedures, technical regulations and sanitary and phytosanitary measures;
developing a climate conducive to increased investment;
the effective, reciprocal and gradual opening of government procurement markets;
adequately and effectively protecting intellectual property rights;
promoting free and undistorted competition in the economic and trade relations;
establishing an effective, fair and predictable dispute-settlement mechanism;
promoting international trade and investment between the parties.
The agreement includes a number of measures to achieve these objectives, in particular it:
provides substantially improved market access for EU exports to Central America through: eliminating tariffs on manufactured goods, fisheries and agriculture;addressing obstacles to trade in goods;improving market access to government procurement, services and investment;
establishes a level playing field through common rules in areas such as: intellectual property and geographical indications;competition and state aid;dispute settlement;
reinforces regional integration by introducing measures such as: a single administrative document for customs declarations;a single import duty for the region;
sets out an agreement for sustainable development designed to: further economic development through trade;address the interrelation between trade and social and environmental policies;encourage and promote trade and marketing schemes based on sustainability criteria.
WHEN DID THE AGREEMENT, DECISIONS AND REGULATION ENTER INTO FORCE?
The trade part of the agreement has provisionally applied since: 1 August 2013 with Honduras, Nicaragua and Panama;1 October 2013 with Costa Rica and El Salvador; and1 December 2013 with Guatemala.
The Council decision entered into force on 25 June 2012, the regulation on 22 January 2013 and Decision No 5/2014 on 5 August 2015.
BACKGROUND

For more information, see:
Central America (European Commission).
MAIN DOCUMENTS

Council Decision 2012/734/EU of 25 June 2012 on the signing, on behalf of the European Union, of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other, and the provisional application of Part IV thereof concerning trade matters (OJ L 346, 15.12.2012, pp. 1-2)
Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (OJ L 346, 15.12.2012, pp. 3-2621)
Decision No 5/2014 of the EU-Central America Association Council of 7 November 2014 on the geographical indications to be included in Annex XVIII of the Agreement [2015/1219] (OJ L 196, 24.7.2015, pp. 59-66)
Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (OJ L 17, 19.1.2013, pp. 13-24)
Successive amendments to Regulation (EU) No 20/2013 have been incorporated into the original act. This consolidated version is of documentary value only.
RELATED DOCUMENTS

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Guatemala) (OJ L 315, 26.11.2013, p. 1)
Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Costa Rica) (OJ L 257, 28.9.2013, p. 1)
Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (El Salvador) (OJ L 257, 28.9.2013, p. 1)
Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Nicaragua) (OJ L 204, 31.7.2013, p. 1)
Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Panama) (OJ L 204, 31.7.2013, p. 1)
Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Honduras) (OJ L 204, 31.7.2013, p. 1)
last update 02.10.2019


Input:
20.3.2013
EN
Official Journal of the European Union
L 78/41
REGULATION (EU) No 229/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 13 March 2013
laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first paragraph of Article 42 and Article 43(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
Acting in accordance with the ordinary legislative procedure (2),
Whereas:
(1)
Specific measures in the agricultural sector to remedy the difficulties caused by the particular geographical situation of the smaller Aegean islands have been established by Council Regulation (EC) No 1405/2006 (3). Those measures have been implemented by means of a support programme, which constitutes an essential tool for supplying those islands with agricultural products and for supporting local agricultural production. In view of the need to update the current measures, including as a result of the entry into force of the Treaty of Lisbon, it is necessary to repeal Regulation (EC) No 1405/2006 and replace it with a new regulation.
(2)
The fundamental objectives which the scheme promoting the smaller Aegean islands will help to achieve need to be specified.
(3)
It is also necessary to specify the content of the support programme for the smaller Aegean islands (‘support programme’), which, in accordance with the principle of subsidiarity, should be established by Greece at the most appropriate geographical level and submitted by Greece to the Commission for approval.
(4)
In order to more effectively achieve the objectives of the scheme promoting the smaller Aegean islands, the support programme should include measures which ensure the supply of agricultural products and the preservation and development of local agricultural production. The level of programming needs to be harmonised and the policy of partnership between the Commission and Greece needs to become systematic. The Commission should adopt procedures and indicators to ensure the smooth implementation and adequate monitoring of the programme.
(5)
In keeping with the principle of subsidiarity and in order to ensure flexibility, the two principles which form the basis of the programming approach adopted for the scheme promoting the smaller Aegean islands, the authorities appointed by Greece may propose amendments to the programme to bring it into line with the reality of the situation on those islands. To that end, more significant involvement on the part of the competent local and regional authorities and other stakeholders should be encouraged. Also in keeping with this approach, the procedure for amending the programme should be adapted to reflect the level of relevance of each type of amendment.
(6)
The particular geographical situation of some of the smaller Aegean islands imposes additional transport costs in supplying products which are essential for human consumption, for processing or as agricultural inputs. In addition, other objective factors arising as a result of insularity and distance from markets impose further constraints on economic operators and producers in those Aegean islands that severely handicap their activities. In certain cases, operators and producers suffer from ‘double insularity’, consisting of the fact that supplies are brought by way of other islands. Those handicaps can be alleviated by lowering the price of those essential products. It is therefore appropriate to introduce specific supply arrangements to guarantee supply to the smaller Aegean islands and compensate for the additional costs arising from their insularity, small size and distance from markets.
(7)
The problems experienced by the smaller Aegean islands are accentuated by the islands' small size. In order to guarantee the effectiveness of the measures envisaged, such measures should apply to all Aegean islands except Crete and Evia.
(8)
In order to achieve the goal of lowering prices in the smaller Aegean islands, mitigating the additional costs of their insularity, small size and distance from markets while maintaining the competitiveness of Union products, aid should be granted for the supply of Union products to the smaller Aegean islands. Such aid should take account of the additional cost of transport to the smaller Aegean islands and, in the case of agricultural inputs and products intended for processing, the additional costs of insularity, small size and distance from markets.
(9)
In order to avoid speculation which would be harmful to end-users in the smaller Aegean islands, it is important to specify that the specific supply arrangements may only apply to products of sound, fair and marketable quality.
(10)
Since the quantities covered by the specific supply arrangements are limited to the supply requirements of the smaller Aegean islands, those arrangements should not impair the proper functioning of the internal market. Nor should the economic advantages of the specific supply arrangements lead to diversions of trade in the products concerned. The dispatch or export of those products from the smaller Aegean islands should therefore be prohibited. However, dispatch or exportation of those products should be authorised where the advantage resulting from the specific supply arrangements is reimbursed.
(11)
With regard to processed products, trade between the smaller Aegean islands should be authorised and transport costs in respect of those products should be reduced, in order to allow commerce between those islands. Account should also be taken of trade flows within the context of regional commerce and traditional exports and dispatching with the rest of the Union or third countries and exports of processed products corresponding to traditional trade for all those regions should be authorised.
(12)
In order to achieve the objectives of the specific supply arrangements, the economic advantages of those arrangements should be reflected in production costs and should reduce prices up to the end-user stage. They should therefore be granted only on condition that they are actually passed on, and appropriate checks should be carried out.
(13)
Rules should be established concerning the operation of the scheme, particularly those relating to the creation of a register of operators and a system of certificates, based on the certificates referred to in Article 161 of Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (4).
(14)
Union policy to assist local production in the smaller Aegean islands, as established by Regulation (EC) No 1405/2006, has involved a multitude of products and measures for their production, marketing or processing. Those measures have proved effective and have ensured that agricultural activities have been maintained and developed. The Union should continue to support that production, which is a key factor in the environmental, social and economic equilibrium of the smaller Aegean islands. Experience has shown that, as in the case of rural development policy, closer partnership with the local authorities can help to address in a more targeted way the particular issues affecting the islands concerned. Support for local production should thus continue to be granted through the support programme, established for the first time by Regulation (EC) No 1405/2006. In that regard, emphasis should be placed on preserving the traditional agricultural heritage and the traditional characteristics of production methods and of local and organic products.
(15)
The minimum elements which should be provided under the support programme in order to establish the measures supporting local agricultural production, specifically the description of the location, of the strategy proposed, of the objectives and of the measures, should be established. The principles underlying the consistency of those measures with other Union policies should also be stated, in order to avoid any incompatibility and overlapping of aid.
(16)
For the purposes of applying this Regulation, it should also be possible for the support programme to contain measures for financing studies, demonstration projects, training and technical assistance.
(17)
Farmers on the smaller Aegean islands should be encouraged to supply quality products, and the marketing of such products should be assisted.
(18)
A derogation may be granted from the Commission's consistent policy of not authorising State operating aid for the production, processing, marketing and transportation of agricultural products listed in Annex I to the Treaty on the Functioning of the European Union (‘the Treaty’) in order to mitigate the specific constraints on farming in the smaller Aegean islands as a result of their insularity, small size, mountainous terrain and climate, their economic dependency on a small number of products and their distance from markets.
(19)
Implementation of this Regulation should not jeopardise the level of special support from which the smaller Aegean islands have benefited up to now. In order to be able to carry out the appropriate measures, Greece should continue to have at its disposal sums equivalent to the Union support already granted under Regulation (EC) No 1405/2006.
(20)
Since 2007, requirements in essential products have increased in the smaller Aegean islands as a result of an increasing livestock population and demographic pressure. The proportion of the budget which Greece should be able to use for the specific supply arrangements for the smaller Aegean islands should therefore be increased.
(21)
In order to allow Greece to evaluate all the elements concerning the implementation of the support programme for the previous year and make it possible to submit to the Commission a complete annual evaluation report, the submission date of that report should be postponed from 30 June to 30 September of the year following the reference year.
(22)
The Commission should be required to submit to the European Parliament and to the Council, by 31 December 2016 at the latest and thereafter every five years, a general report on the impact of measures taken to implement this Regulation accompanied, where appropriate, by suitable recommendations.
(23)
In order to ensure the proper functioning of the regime introduced by this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission, in respect of supplementing or modifying certain non-essential elements of this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
(24)
In order to ensure uniform conditions for the implementation of the programme in the smaller Aegean islands in relation to other similar schemes and to avoid unfair competition or discrimination between operators, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (5).
(25)
In order to allow for the prompt application of the measures envisaged, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,
HAVE ADOPTED THIS REGULATION:
CHAPTER I
SUBJECT MATTER AND OBJECTIVES
Article 1
Subject matter
1.   This Regulation lays down specific measures for agriculture to mitigate the difficulties caused by the insularity, small size and distance from markets of the smaller Aegean islands (‘the smaller islands’).
2.   For the purposes of this Regulation ‘the smaller islands’ means any islands in the Aegean Sea except the islands of Crete and Evia.
Article 2
Objectives
1.   The specific measures provided for in Article 1 shall help to meet the following objectives:
(a)
guaranteed supply to the smaller islands of products essential for human consumption or for processing and as agricultural inputs by mitigating the additional costs incurred due to their insularity, small size and distance from markets;
(b)
the preservation and development of agricultural activities in the smaller islands, including the production, processing, marketing and transport of local raw and processed products.
2.   The objectives set out in paragraph 1 shall be implemented by means of the measures referred to in Chapters III, IV and V.
CHAPTER II
SUPPORT PROGRAMME
Article 3
Establishing the support programme
1.   The measures provided for in Article 1 shall be defined by a support programme comprising:
(a)
specific supply arrangements as provided for in Chapter III; and
(b)
specific measures to assist local agricultural production as provided for in Chapter IV.
2.   The support programme shall be established at the geographical level which Greece deems to be the most appropriate. It shall be prepared by the competent local and regional authorities designated by Greece, which shall submit it to the Commission for approval in accordance with Article 6 after the competent authorities and organisations at the appropriate regional level have been consulted.
Article 4
Compatibility and consistency
1.   Measures taken under the support programme shall comply with Union law. Such measures shall be consistent with other Union policies and with the measures taken under such policies.
2.   Consistency of the measures taken under the support programme with measures implemented under other instruments of the common agricultural policy, and in particular the common organisations of markets, rural development, product quality, animal welfare and the protection of the environment, shall be ensured.
In particular, no measure under this Regulation shall be financed as:
(a)
additional support for premium or aid schemes under a common organisation of the market, save in exceptional cases, justified by objective criteria;
(b)
support for research projects, measures to support research projects or measures eligible for Union financing under Council Decision 2009/470/EC of 25 May 2009 on expenditure in the veterinary field (6);
(c)
support for measures within the scope of Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (7).
Article 5
Content of the support programme
The support programme shall comprise:
(a)
a schedule for the implementation of the measures and a general annual indicative financing table showing the resources to be deployed;
(b)
proof of the compatibility and consistency between the various measures under the programme and with the criteria and quantitative indicators to be used for monitoring and evaluation;
(c)
the steps taken to ensure that the programme is implemented effectively and appropriately, including the arrangements for publicity, monitoring and evaluation, and a specified set of quantified indicators for use in programme evaluation;
(d)
the designation of the competent authorities and bodies responsible for implementing the programme and the designation at the appropriate levels of authorities or associated bodies and socio-economic partners, and the results of consultations held.
Article 6
Approval and amendments of the programme
1.   The support programme is established under Regulation (EC) No 1405/2006 and is financed under the financial allocation referred to in Article 18(2) and (3).
The programme comprises a forecast supply balance indicating the products, the quantities thereof and the amount of aid for supply from the Union together with a draft programme of support for local production.
2.   Depending on the annual evaluation of the implementation of measures included in the support programme, Greece may submit to the Commission duly substantiated proposals for amendments to those measures within the context of the financial allocation referred to in Article 18(2) and (3), to bring them more into line with the requirements of the smaller islands and the strategy proposed. The Commission shall adopt implementing acts laying down the procedures for assessing whether the amendments proposed comply with Union law and for deciding whether to approve them. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
3.   The procedures laid down by the implementing acts referred to in paragraph 2 may take account of the following elements: the importance of the modifications proposed by Greece with reference to the introduction of new measures, whether the changes to the budget allocated to the measures are substantial, changes in the quantities and in the level of aid for products in the forecast supply balances and any amendments to codes and descriptions laid down in Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (8).
4.   The implementing acts referred to in paragraph 2 shall also determine, for each procedure, the frequency with which requests for amendments are to be made, as well as the time frames within which the approved amendments are to be implemented.
Article 7
Monitoring and follow-up
Greece shall conduct verifications by means of administrative and on-the-spot checks. The Commission shall adopt implementing acts regarding the minimum characteristics of the checks to be carried out by Greece.
The Commission shall also adopt implementing acts regarding the procedures and physical and financial indicators in order to ensure that the implementation of the programmes is monitored in an effective manner.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
CHAPTER III
SPECIFIC SUPPLY ARRANGEMENTS
Article 8
Forecast supply balance
1.   Specific supply arrangements are hereby established for the Union's agricultural products listed in Annex I to the Treaty (‘the agricultural products’) which are essential in the smaller islands for human consumption, for the manufacture of other products or as agricultural inputs.
2.   Greece shall establish, at the geographical level which it deems most appropriate, a forecast supply balance so as to quantify the annual supply requirements for the smaller islands with regard to the agricultural products.
A separate forecast balance may be drawn up for the requirements of undertakings packaging and processing products intended for the local market, for consignment to the rest of the Union or for export to third countries as part of regional trade, in accordance with Article 13(2) and (3), or within the context of traditional trade flows.
Article 9
Operation of the specific supply arrangements
1.   Aid shall be granted to supply the smaller islands with agricultural products.
The amount of the aid shall be determined for each product concerned, taking account of the additional costs of marketing products in the smaller islands, calculated from the usual ports of shipment in mainland Greece, and from the ports of islands of transit or of loading for the islands of final destination. In the case of agricultural inputs and products intended for processing, such aid should take account of the additional costs associated with insularity, small size and distance from markets.
2.   The specific supply arrangements shall only apply to products of sound, fair and marketable quality.
Article 10
Implementation
In implementing the specific supply arrangements, account shall be taken, in particular, of the following:
(a)
the specific needs of the smaller islands and the precise quality requirements;
(b)
traditional trade flows with ports in mainland Greece and between the islands in the Aegean Sea;
(c)
the economic aspect of the proposed aid;
(d)
where applicable, the need not to obstruct the development of local products.
Article 11
Certificates
1.   The aid provided for in Article 9(1) shall be granted on presentation of a certificate.
Certificates shall be issued only to operators entered in a register held by the competent authorities.
Those certificates shall not be transferable.
2.   No security shall be required when applying for a certificate. However, to the extent necessary to ensure the proper application of this Regulation, the competent authority may require a security to be lodged equal to the amount of the advantage as referred to in Article 12. In such cases, Article 34(1), (4), (5), (6), (7) and (8) of Commission Regulation (EC) No 376/2008 of 23 April 2008 laying down common detailed rules for the application of the system of import and export licences and advance fixing certificates for agricultural products (9) shall apply.
The Commission shall be empowered to adopt delegated acts, in accordance with Article 21, determining the conditions for recording operators in the register and providing for the full exercise by operators of their rights to participate in the specific supply arrangements.
3.   The Commission shall adopt implementing acts concerning the measures necessary to ensure the uniform application by Greece of this Article, specifically relating to the introduction of the system of certificates, and the commitment undertaken by operators at the time of registration. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
Article 12
Impact of advantage
1.   Benefiting from the specific supply arrangements resulting from the awarding of aid shall be subject to the condition that the impact of the economic advantage is passed on up to the end-user who, as appropriate, may be the consumer in the case of products meant for direct consumption, the end processor or packager in the case of products meant for the processing or packaging industries, or farmers in the case of products used for animal feed or as agricultural inputs.
The advantage referred to in the first subparagraph shall be equal to the amount of the aid.
2.   In order to ensure that paragraph 1 is applied in a uniform manner, the Commission shall adopt implementing acts regarding the application of the rules set out in paragraph 1 and more specifically regarding the conditions for the monitoring, by the Member State, that the advantage has in fact been passed on up to the end-user. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
Article 13
Export to third countries and dispatch to the rest of the Union
1.   The Commission shall adopt implementing acts establishing the requirements in accordance with which products covered by the specific supply arrangements may be exported to third countries or dispatched to the rest of the Union. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
Those requirements shall include in particular reimbursement of the aid received under the specific supply arrangements.
Exports to third countries of products covered by the specific supply arrangements shall not be subject to the presentation of a certificate.
2.   The first subparagraph of paragraph 1 shall not apply to products processed in the smaller islands from products that have benefited from the specific supply arrangements which are:
(a)
exported to third countries or dispatched to the rest of the Union within the limits of traditional exports and traditional dispatches;
(b)
exported to third countries as part of regional trade in accordance with the destinations and detailed provisions to be determined by the Commission;
(c)
dispatched between the smaller islands.
Exports to third countries of products referred to in points (a) and (b) of the first subparagraph shall not be subject to the presentation of a certificate.
No export refund shall be granted on the export of products referred to in points (a) and (b) of the first subparagraph.
The Commission shall adopt implementing acts establishing the limits of the quantities of products referred to in point (a) and the detailed provisions referred to in point (b). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
3.   Processing operations which may give rise to traditional trade exports or traditional dispatches shall fulfil, mutatis mutandis, the processing conditions applicable under customs control provided for in the relevant Union legislation, with the exception of all usual forms of handling.
Article 14
Controls and penalties
1.   The agricultural products which are the subject of the specific supply arrangements shall be subject to administrative checks at the time that they enter the smaller islands as well as when they are exported or dispatched.
The Commission shall adopt implementing acts concerning the minimum characteristics of the checks to be carried out by Greece. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
2.   Except in cases of force majeure or exceptional climatic conditions, if an operator, as referred to in Article 11, fails to comply with the commitments made in accordance with that Article, the competent authority, without prejudice to any penalties applicable under national law, shall:
(a)
recover the advantage granted to the operator;
(b)
temporarily suspend or revoke the operator's registration, depending on the seriousness of the non-compliance.
3.   Except in cases of force majeure or exceptional climatic conditions, where operators, as referred to in Article 11, do not carry out the planned entry, their entitlement to apply for certificates shall be suspended by the competent authority for a period of 60 days following expiry of that certificate. After the suspension period, the issue of subsequent certificates shall be subject to the lodging of a security equal to the amount of the advantage to be granted during a period to be determined by the competent authority.
The competent authority shall adopt the measures required to reutilise any quantities of products made available as a result of non-execution, partial execution or cancellation of the certificates issued or recovery of the advantage.
CHAPTER IV
MEASURES TO ASSIST LOCAL AGRICULTURAL PRODUCTS
Article 15
Measures
1.   The support programme contains the measures necessary in order to ensure continuity and development of local lines of agricultural production in the smaller islands under the scope of Part Three, Title III of the Treaty.
2.   The part of the programme which includes measures to assist local agricultural production shall comprise at least the following elements:
(a)
a quantified description of the current agricultural production situation, taking into account the results of available evaluations, showing disparities, gaps and potential for development and the financial resources deployed;
(b)
a description of the strategy proposed, the priorities selected, its quantified general and operational objectives, and an appraisal showing the expected economic, environmental and social impact, including employment effects;
(c)
a description of the measures envisaged, and in particular aid schemes for implementing them, and, where appropriate, information on the need for any studies, demonstration projects, training or technical assistance operations relating to the preparation, implementation or adaptation of the measures concerned;
(d)
a list of the aid constituting direct payments in accordance with Article 2(d) of Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers (10);
(e)
the aid amount established for each measure and the provisional amount for each action in order to achieve one or more objectives for the programme.
3.   The Commission shall adopt implementing acts concerning requirements for the provision of the aid described in paragraph 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
4.   The programme may include measures to support production, processing, marketing and transport of raw and processed agricultural products in the smaller islands.
Each measure may include a variety of actions. For each action, the programme shall define at least the following elements:
(a)
the beneficiaries;
(b)
the eligibility conditions;
(c)
the unit amount of aid.
The Commission shall adopt delegated acts in accordance with Article 21 concerning the conditions for establishing the amount of aid awarded in respect of the support for the marketing and transport of raw and processed products outside the region in which they are produced, and, where appropriate, concerning the conditions for establishing the quantities of products subject to that aid.
Article 16
Controls and wrongful payments
1.   Verification of measures provided for in this Chapter shall be conducted by administrative and on-the-spot checks.
2.   In the event of wrongful payments, the beneficiary concerned shall be required to reimburse the amounts in question. Article 80 of Commission Regulation (EC) No 1122/2009 of 30 November 2009 laying down detailed rules for the implementation of Council Regulation (EC) No 73/2009 as regards cross-compliance, modulation and the integrated administration and control system, under the direct support schemes for farmers provided for that Regulation, as well as for the implementation of Council Regulation (EC) No 1234/2007 as regards cross-compliance under the support scheme provided for the wine sector (11) shall apply mutatis mutandis.
CHAPTER V
ACCOMPANYING MEASURES
Article 17
State aid
1.   For the agricultural products covered by Annex I to the Treaty, to which Articles 107, 108 and 109 thereof apply, the Commission may authorise, in accordance with Article 108 of the Treaty, operating aid in the sectors producing, processing, marketing and transporting those products, with a view to alleviating the specific constraints on farming in the smaller islands as a result of their insularity, small size, mountainous terrain and climate, their economic dependency on a small number of products and their distance from markets.
2.   Greece may grant additional financing for the implementation of the support programme. In such cases, Greece shall notify the Commission of the State aid and the Commission may approve it in accordance with this Regulation as part of the support programme. Aid thus notified shall be deemed to have been notified within the meaning of the first sentence of Article 108(3) of the Treaty.
3.   Without prejudice to paragraphs 1 and 2 of this Article and by way of derogation from Article 180 of Regulation (EC) No 1234/2007 and Article 3 of Council Regulation (EC) No 1184/2006 of 24 July 2006 applying certain rules of competition to the production of and trade in agricultural products (12), Articles 107, 108 and 109 of the Treaty shall not apply to payments made under Chapters III and IV of this Regulation by Greece in conformity with this Regulation.
CHAPTER VI
FINANCIAL PROVISIONS
Article 18
Financial resources
1.   The measures provided for in this Regulation shall constitute intervention intended to stabilise the agricultural markets within the meaning of Article 3(1)(b) of Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy (13).
2.   The Union shall finance the measures provided for in Chapters III and IV up to a maximum annual amount of EUR 23,93 million.
3.   The amount allocated annually to finance the specific supply arrangements referred to in Chapter III shall not exceed EUR 7,11 million.
The Commission shall adopt implementing acts establishing the requirements in accordance with which Greece may amend the allocation of resources allocated each year to the various products benefiting from the specific supply arrangements. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22(2).
4.   The Commission shall adopt delegated acts, in accordance with Article 21, concerning the conditions for determining the annual maximum amount which may be allocated to measures for financing studies, demonstration projects, training and technical assistance, provided that such allocation is reasonable and proportionate.
CHAPTER VII
GENERAL AND FINAL PROVISIONS
Article 19
National measures
Greece shall take the measures necessary to ensure compliance with this Regulation, in particular as regards checks and administrative penalties, and shall inform the Commission thereof.
Article 20
Communications and reports
1.   Greece shall communicate to the Commission not later than 15 February each year the appropriations made available to it which it intends to spend in the following year on implementation of the forecast supply balance and for each measure promoting local agricultural production included in the support programme.
2.   Greece shall submit to the Commission no later than 30 September each year a report on the implementation of the measures provided for in this Regulation over the previous year.
3.   By 31 December 2016, and thereafter every five years, the Commission shall submit a general report to the European Parliament and to the Council showing the impact of the action taken under this Regulation, accompanied, if applicable, by appropriate proposals.
Article 21
Exercise of the delegation
1.   The power to adopt delegated acts shall be conferred on the Commission subject to the conditions laid down in this Article.
2.   The power to adopt delegated acts referred to in Article 11(2), Article 15(4) and Article 18(4) shall be conferred on the Commission for a period of five years from 21 March 2013. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.
3.   The delegation of power referred to in Article 11(2), Article 15(4) and Article 18(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision to revoke in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
4.   As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
5.   The delegated acts adopted pursuant to Article 11(2), Article 15(4) and Article 18(4) shall enter into force only if no objection has been expressed by either the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they do not intend to raise any objections. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 22
Committee procedure
1.   The Commission shall be assisted by the Management Committee for Direct Payments established under Article 141 of Regulation (EC) No 73/2009. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 23
Repeal
Regulation (EC) No 1405/2006 is hereby repealed.
References made to the repealed Regulation shall be construed as being made to this Regulation and shall be read in accordance with the correlation table set out in the Annex.
Article 24
Entry into force
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Strasbourg, 13 March 2013.
For the European Parliament
The President
M. SCHULZ
For the Council
The President
L. CREIGHTON
(1)  OJ C 132, 3.5.2011, p. 82.
(2)  Position of the European Parliament of 5 February 2013 (not yet published in the Official Journal) and decision of the Council of 25 February 2013.
(3)  OJ L 265, 26.9.2006, p. 1.
(4)  OJ L 299, 16.11.2007, p. 1.
(5)  OJ L 55, 28.2.2011, p. 13.
(6)  OJ L 155, 18.6.2009, p. 30.
(7)  OJ L 277, 21.10.2005, p. 1.
(8)  OJ L 256, 7.9.1987, p. 1.
(9)  OJ L 114, 26.4.2008, p. 3.
(10)  OJ L 30, 31.1.2009, p. 16.
(11)  OJ L 316, 2.12.2009, p. 65.
(12)  OJ L 214, 4.8.2006, p. 7.
(13)  OJ L 209, 11.8.2005, p. 1.
ANNEX
Correlation table
Regulation (EC) No 1405/2006
This Regulation
Article 1
Article 1
Article 2
Article 3(1)
Article 3
Article 8
Article 4(1)
Article 9(1)
Article 4(2)
Article 10
Article 4(3)
Article 12(1)
Article 5
Article 13
Article 7(1)
Article 15(1)
Article 7(2)
Article 3(2)
Article 8
Article 4
Article 9(a) and (b)
Article 15(2)
Article 9(c), (d), (e) and (f)
Article 5
Article 10
Article 7 second paragraph
Article 11
Article 17
Article 12
Article 18
Article 13
Article 6(1)
Article 14(a)
Article 6(2) to (4)
Article 14(b)
Article 7 first paragraph, and Article 14(1) second subparagraph, (2) and (3)
Article 16
Article 19
Article 17
Article 20
Article 18
Article 23
Article 21
Article 24

Output:
Farmers in the Aegean islands - EU support
Farmers in the Aegean islands - EU support
The European Union has special rules to assist agriculture in the smaller Aegean islands that are affected by geographical and economic factors.
ACT

Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006.
SUMMARY
WHAT DOES THIS REGULATION DO?

It allows for special arrangements that aim to compensate these islands for the difficulties they face due to their remote location. It has two aims:
1.to guarantee the supply to these smaller islands of products that are essential for human consumption or processing, as well as agricultural inputs, at a cost that compensates for their isolation;
2.to ensure, in the longer term, the continuity and development of local production.
KEY POINTS
Management and budget
Greece decides on the appropriate geographical level at which to establish the programme and submits it to the Commission for approval. Each year, an amount of €23.93 million (of which no more than €7.11 million can be used to finance special supply arrangements) is available from the EU budget, as laid down in Article 18(2) and (3) of the regulation.
Specific supply arrangements
Where these are agreed, they are granted on condition that the impact of the economic advantage is passed on to the end-user who, as appropriate, may be the consumer in the case of products meant for direct consumption, the end processor or packager in the case of products meant for the processing or packaging industries or farmers in the case of products used for animal feed or as agricultural inputs.
The advantage is calculated as being equal to the amount of the aid. The managing authority may require a security to be lodged equal to the amount of the advantage.
Measures to assist local agricultural products
The programme may include measures to support the production, processing or sale of agricultural products in the outermost regions.
Each measure may include a variety of actions. For each action, the programme must define at least the beneficiaries, the eligibility conditions and the unit amount of aid allocated to that action.
Checks and penalties
Products that are the subject of specific supply arrangements are checked when they enter the smaller Aegean islands, as well as when they are exported or dispatched. Where the rules are not respected, the authorities may recover the advantage granted to operators (i.e. farmers and companies that own farms) and temporarily suspend/revoke their registration.
Measures to assist local agricultural products are verified by means of both administrative and on-the-spot checks. In the event of a wrongful payment, the beneficiary concerned is obliged to reimburse the amount in question.
WHEN DOES THIS REGULATION APPLY?

From 21 March 2013. Regulation (EU) No 229/2013 repeals Regulation (EC) No 1405/2006.
For further information, see the section on POSEI programmes and specific measures in favour of the smaller Aegean islands on the European Commission’s website.
REFERENCES
Act
Entry into force
Deadline for transposition in the Member States
Official Journal
Regulation (EU) No 229/2013
21.3.2013
-
OJ L 78, 20.3.2013, pp. 41-50
last update 16.03.2015