AID TO PRODUCERS OF TOMATOES FOR PROCESSING REGULATIONS

SUBSIDIARY LEGISLATION 146.04

AID TO PRODUCERS OF TOMATOES FOR

PROCESSING REGULATIONS

10th September, 2004

LEGAL NOTICE 405 of 2004, as amended by Legal Notice 426 of 2012.

PART I

Preliminary

(1) The title of these regulations is the Aid to Producers of

Tomatoes for Processing Regulations.

(2) The scope of these regulations is to establish the conditions

concerning applications for financial aid and relevant controls in

the tomato processing sector.

L.N. 426 of 2012.

(Regulation 3)

Application No. ..........................................

Reg (EC) 1535/2003

Date ...........................................................

Processed agricultural products

Application submitted by .....................................................................................

Legally valid identification document number ......................................................

as an individual producer

or as a producer organisation

Product: Tomatoes for processing

Other

Application for

advance payment

payment of balance

(Advance Payment Application No. .................)

final payment

A. Applicant’s details

A1. Producer Organisation

Name of PO .........................................................................................................

VAT No. ..............................................................................................................

Address ...............................................................................................................

Legal Representative

Surname ...............................................

First Name ........................................

Date of birth .........................................

Legally valid identification document

no. ..................................

Address ...............................................................................................................

Tel. ..................................................

AID TO PRODUCERS

OF TOMATOES FOR PROCESSING

A2. Individual Producer

Producer’s Name .................................................................................................

VAT No. ................ Legally Valid Identification Document No. ...........................

Address ...............................................................................................................

Tel. No. ...................................................................

B. Method of Payment

By cheque

Bank Account

Bank ............................. Account No. .....................

C. Total quantities for which aid is being requested

IACS Contract

Processor

Contracted

Consigned

Consigned Total quantity

Average

No

quantity

up to 15/9

after 15/9 (kg) consigned

(kg)

(kg)

(kg)

TOTALS

D. Application Summary

D1 Application for Advance Payment

Total quantity consigned before 15/9 ............kg

Average price ................... /kg

D2 Application for payment of balance or full payment

Total quantity consigned ..............................kg

Average price ................... /kg

E. Declarations

I, the undersigned,

According to European Union Regulations and the Laws of Malta hereby declare

I recognise and understand that penalties and sanctions are applicable if

my application contains information which is incorrect or false, even if

this entails loss of my right to aid given under national or community

schemes.

I understand all Regulations which regulate the aid measures for fruit

and vegetables, as well as the conditions stipulated in Reg (EC) 1535/

2003. I am in possession of all documentation required by community and

national regulations.

that the Producer Organisation is officially recognised by authorisation

No. ........... dated ......................... .

that I have submitted an application for advance payment for the

current market year ?

I undertake to

permit the competent authority to carry out any necessary checks and

controls.

pay back any aid received, with due interest, if I fail to observe the

required conditions.

I am also submitting

a photocopy of my I.D. Card

a Bank Guarantee (only in the case of an application for advance

payment)

Applicant’s signature

Signature and Stamp of official

( a n d S t a m p i n t h e c a s e o f L e g a l responsible for verification of signature

representative)

Date ...................................................

Unless the context otherwise requires, words and phrases

used in these regulations shall have the same meaning as is

assigned to them in regulation 2 of the 2003 Regulations, and "the

2003 Regulations" means the Approval of Processors in the Product

Processing Sector Regulations.

PART II

Aid Applications

Individual producers or producer organisations intending

to benefit from financial assistance for the processing of tomatoes

shall submit an aid application to the Director on the appropriate

form as reproduced in the Schedule.

(1) During each marketing year as established in

regulation 6 of the 2003 Regulations, hereinafter in these

regulations referred to as "the marketing year", only one aid

application may be submitted by each individual producer or

producer organisation.

(2) Aid applications must reach the Director by not later than

the 30th November of the marketing year concerned; however the

Director may, at his discretion, postpone the date for receipt of aid

applications to the 15th December of the same year.

(3) An application for advance payment of the aid may be

submitted by each individual producer or producer organisation

under the conditions laid down in regulation 7.

If an aid application is received by the Director after the

applicable dates referred to in regulation 4(2), the aid payable to

such individual producer or producer organisation shall be reduced

by 1% for each day of delay after the applicable date, and no aid

shall be granted if the application is received by the Director more

than fifteen days after the applicable dates referred to in regulation

4(2)

Provided that in exceptional and duly justified cases, the

Director may, at his discretion, accept aid applications after the

applicable dates referred to in regulation 4(2), but only if this does

not hinder effective checks on the production aid scheme. In the

case provided for in this proviso, the reductions referred to in this

regulation shall not apply.

Aid applications must be signed by the individual

producers or by the legal representatives of producer organisations

applying for aid, and shall contain at least the following

information

(a) the name and address of the individual producer or

producer organisation;

(b) the IACS identification number assigned to the

contract for supply between the individual producer or

producer organisation and the processor, as provided

for by regulation 7(3) of the 2003 Regulations;

(c) a photocopy of a legally valid identification document

of the producer in the case of an application submitted

by an individual producer;

(d) the quantity of tomatoes under contract to be covered

by the aid application, provided that such quantity,

broken down by contract, may not exceed the quantity

accepted for processing, after deduction of any

reduction rates applied;

(e) the average selling price for the quantity of tomatoes

delivered under contract;

(f)

the quantity of tomatoes delivered during the same

period other than under contract, and the average

selling price thereof

Provided that the Director may, at his discretion, request

additional information to be submitted together with aid

applications.

PART III

Payment of Aid

(1) The Director may decide that applications for advance

payment of aid may be submitted by the individual producer or

producer organisation to reach the Director by not later than the

30th September of the marketing year concerned, covering the total

quantity of tomatoes delivered for processing up to the 15th

September of the same year.

(2) Applications for advance payment of aid as referred to in

subregulation (1) shall include the information referred to in

paragraphs (a) and (b), and where applicable paragraph (c) of

regulation 6.

(3) The Director shall pay the amount due in advance payment

of aid as provided for in this regulation to the individual producer

or the producer organisation between the 16th and 31st October of

the same year in which the application for advance payment of aid

was submitted, after checking the application and, in particular,

taking into consideration the delivery certificates referred to in

regulation 15 of the 2003 Regulations.

(4) The aid due under this regulation shall be paid in advance

provided a security in the form of a bank guarantee equal to 110%

of the aid is lodged with the Director. The bank guarantee must be

valid for a period of six months and the Director may, at his

discretion, request the extension or termination of the bank

guarantee.

(5) Where it is found that the amount of advance payment of

aid applied for exceeds the amount due, an amount equal to double

the excess amount shall be forfeited from the security provided for

in subregulation (4).

(6) Without prejudice to subregulation (5), the security

provided for in subregulation (4) shall be released when the

Director pays the aid, based on the application referred to in

regulation 4(1).

(7) When an application for advance payment of the aid is

submitted, the quantities referred to in regulation 6(d) and (f) shall

be broken down into two periods, namely up to the 15th September

and from the 16th September of the same year.

(1) The aid shall be paid by the Director to the individual

producer or producer organisation signing the contract as soon as

the aid application has been checked and it is established that the

tomatoes covered by such application have been delivered and

accepted for processing, on the basis, in particular, of the checks

provided for in regulation 12(1)(a) and in regulation 13.

(2) Where aid is paid to a producer organisation, such producer

organisation shall pay in full the amounts received, by cheque or

bank transfer, to its members within fifteen working days following

receipt of such aid.

(3) Where a producer organisation is wholly or partly made up

of m emb ers whi ch are t hem selv es organ isati ons wit h legal

personality made up of individual members, payments as provided

for in subregulation (2) shall be paid by such member organisations

to the individual members within fifteen working days.

(4) No aid shall be granted on quantities in respect of which the

necessary checks on entitlement to the aid have not been

conducted.

(5) Where applicable, the aid shall be paid to individual

producers or producer organisations by not later than sixty days

after the date on which the application, including all the

information required under regulation 6, is received and approved

by the Director.

PART IV

Control Measures

The Director shall take the necessary steps to

AID TO PRODUCERS

OF TOMATOES FOR PROCESSING

(a) ensure that these regulations are complied with;

(b) prevent and prosecute irregularities and apply the

penalties provided for in regulation 18(2) of the 2003

Regulations;

(c) recover sums lost as a result of irregularities or

negligence;

(d) verify the records provided for in regulations 10 and

11;

(e) carry out unannounced checks as referred to in

regulations 12 and 13;

(f)

after sowing, carry out checks on areas sown to

tomatoes as referred to in regulation 12(1) and in

regulation 13;

(g) refer to the relevant authorities cases where fraud is

reasonably suspected.

(1) Individual producers and producer organisations shall

keep records for tomatoes delivered for processing, containing at

least the following information

(a) in the case of quantities of tomatoes delivered under

contract

(i)

the number of consignments delivered each day,

and the identification number of the contract to

which the consignments relate;

(ii) the quantity of each consignment delivered, the

quantity accepted for processing, after deduction

of any reduction, and the identification number

of the relevant delivery certificate;

(b) in the case of quantities of tomatoes delivered other

than under contract

(i)

the number of consignments delivered each day,

and the identity of the processor concerned;

(ii) the quantity of each consignment delivered and

accepted for processing;

(c) the quantities sold on the fresh market, those

withdrawn from the market and stocks of the products

concerned.

(2) Individual producers and producer organisations shall keep

available for the national inspection authorities all the information

needed for ensuring that this regulation is complied with. This

information must make it possible to identify for each producer, the

link between the areas, the quantities delivered, the delivery

certificates, and payment of the aid and prices.

(3) The financial records, books of accounts or any related

documents required under national law may be used for the

purposes of this regulation, provided they contain all the

information referred to in subregulation (1).

(4)

Individual producers and producer organisations shall

submit to all inspections and checks deemed necessary by the

Director and shall keep all additional records required by the

Director for the purposes of the said necessary checks.

(1) The Director may decide that the records referred to in

regulation 17(1) and (2) of the 2003 Regulations are to be certified

in the same way as records or accounting documents required under

national law.

(2) The records or accounting documents required under

national law may be used for the purposes of this regulation,

provided they contain all the information referred to in regulation

17(1) and (2) of the 2003 Regulations.

(1) For each producer organisation delivering tomatoes for

processing, the following checks shall be conducted by the

competent authority for each marketing year

(a) physical checks on

(i)

at least 5% of areas planted with tomatoes

intended for processing,

(ii) at least 7% of quantities of tomatoes delivered

for processing, in order to check that they tally

with the certificates referred to in regulation 15

of the 2003 Regulations and comply with the

minimum quality requirements as indicated in

Article 19 of Regulation (EC) 1535/2003;

(b) administrative and accounting checks on at least 5% of

producer members covered by contracts, in order to

check that the details for each producer, in particular

the areas, the total harvest, the quantity marketed by

the producer organisation, the quantity delivered for

processing and the quantity indicated in the delivery

certificates, are consistent with the prices paid and the

aid paid as provided for in regulation 8;

(c) administrative and accounting checks to verify that the

total quantities of products delivered to the producer

organisation by producer members as referred to in

regulation 12 of the 2003 Regulations, the total

quantities delivered for processing, all the delivery

certificates referred to in regulation 15 of the 2003

Regulations and the total quantities stated in the aid

application, tally with the prices paid and the aid paid

as provided for in regulation 8;

(d) checks on all aid applications and supporting

documents and crosschecks on all declared parcels.

(2) In the case of processors, the following checks shall be

conducted by the competent autho rity for each factory and

marketing year

(a) checks on at least 5% of finished products to verify

that the applicable minimum quality standards have

been complied with;

(b) physical and accounting checks on at least 5% of

finished products to verify the yield of raw materials

processed into the finished product obtained under

contract and otherwise than under contract;

(c) administrative and accounting checks to verify, on the

basis of the invoices issued and received and on the

basis of the accounting data, that the quantity of

finished product obtained from the raw materials

received and the quantities of finished products

purchased tally with the quantities of finished products

sold;

(d) physical and accounting checks on all stocks of

finished products at least once each year, to ensure that

they tally with the finished products manufactured,

purchased and sold

Provided that in the case of newly approved undertakings,

such checks shall be conducted at least twice in the first year; and

(e) administrative and accounting checks on at least 10%

of payments of the prices paid.

For individual producers delivering tomatoes for

processing, the following physical checks shall be conducted by the

competent authority for each marketing year

(a) at least 5% of areas planted with tomatoes intended for

processing,

(b) at least 7% of quantities delivered for processing, in

order to check that they tally with the certificates

referred to in regulation 15 of the 2003 Regulations,

and comply with the minimum quality requirements as

indicated in Article 19 of Regulation (EC) 1535/2003.

PART V

Penalties and Aid Reductions

(1) Where it is ascertained that the aid applied for in

respect of any marketing year exceeds the amount due, then that

amount shall be reduced, unless the difference is, to the satisfaction

of the Director, clearly due to error. This reduction in aid shall be

equal to the difference between the aid applied for and the amount

due. If the aid has already been paid, the beneficiary shall pay back

to the Director twice the difference between the aid applied for and

the amount due, plus interest calculated in accordance with

regulation 18.

(2) If the difference referred to in subregulation (1) is more

than 20% of the amount of aid applied for, the beneficiary shall

lose entitlement to the aid and, if the aid has already been paid to

such beneficiary, shall reimburse the total aid plus interest

calculated in accordance with terms provided for in subregulation

(1). If the difference referred to in subregulation (1) is more than

30% of the amount of aid applied for, the beneficiary shall also

forfeit any entitlement to aid for the product concerned for the

following three marketing years.

Where one of the parties to the contracts referred to in

Articles 3 and 6A of Regulation (EC) 2201/96 is not in a position to

comply with its contractual obligations due to the fault of the other

party, the party concerned may be authorized by the Director to

cancel such contracts or to transfer them, unchanged, to another

approved processor in the case of an individual producer or a

producer organisation, or to another producer organisation in the

case of processors.

(1) If the area checks referred to in regulation 12(1)(a)

and in regulation 13 reveal that the area declared is larger than that

actually determined, at the level of the total area checked, the aid

payable shall be reduced as follows, unless the difference is, to the

satisfaction of the Director, clearly due to error

(a) by the percentage of the discrepancy established, if it

is more than 5% but no more than 20% of the area

determined,

(b) by 30% if the discrepancy is more than 20% of the area

determined

Provided that where the area declared is less than the area

actually determined, and the discrepancy is more than 10% of the

area determined, the aid payable shall be reduced by half the

percentage of the discrepancy established.

(2) The reductions provided for in subregulation (1) shall not

apply where the individual producer or producer organisation has

submitted factually correct information or can prove, to the

satisfaction of the Director, that it is not at fault

Provided that the reductions provided for in subregulation

(1) shall not apply to data which the individual producer, producer

organisation or its members inform the competent authority in

writing are incorrect or have become incorrect since the

information referred to in regulation 12(1) of the 2003 Regulations

w a s s e n t , p r o v i d e d t h a t t h e i n d i v i d u a l p r o d u c e r, p r o d u c e r

organisation or its members were not informed of the Director’s

intention to carry out an on-the-spot check and that they were not

informed by the Director of any irregularity found.

(3) Where a producer organisation commits a repeated

infringement, the Director shall withdraw that organisation’s

recognition, or preliminary recognition in the case of a producer

group granted preliminary recognition.

(1) Except in cases of force majeure, where it is found that

the full quantity of tomatoes accepted for processing under contract

has not been processed into one of the products listed in the First

Schedule to the 2003 Regulations, the processor shall pay the

Director an amount equal to twice the unit amount of the aid

multiplied by the quantity of the raw material concerned which has

not been processed, plus interest calculated in accordance with

regulation 18. In addition, except in cases duly justified to the

satisfaction of the Director, the processor’s approval as provided

for in regulation 3(6) of the 2003 Regulations shall be suspended

(a) for the marketing year following the finding, if the

difference found between the quantity accepted for

processing and the quantity actually processed is more

than 10% but no more than 20% of the quantity

accepted for processing;

(b) for two marketing years following the finding, if the

difference is more than 20% of the quantity accepted

for processing.

For the purposes of applying paragraphs (a) and (b), any

quantities of tomatoes used in the manufacture of finished products

not complying with the minimum quality requirements, in excess of

an 8% tolerance, shall be treated as quantities not processed.

(2) Where the conditions for applying subregulation (1) are

met, the Director shall provide that such approval as referred to in

regulation 3(6) of the 2003 Regulations is to be withdrawn from

processors in the following cases

(a) where the individual producer or producer

organisation makes false declarations with the

collaboration of the processor;

(b) where the processor fails to pay the price referred to in

regulation 7(6)(e) of the 2003 Regulations;

(c) where the processor fails to pay the penalties provided

for in subregulation (1);

(d) where the processor repeatedly fails to pay the

penalties as provided for in subregulation (1);

(e) where the processor fails to comply with the

obligations referred to in regulation 17 of the 2003

Regulations.

The duration of the exclusion of the processor from the aid

scheme shall not be for less than one marketing year and such

duration shall be determined by the Director having regard to the

seriousness of the failure.

(1) Amounts recovered and interest due pursuant to these

regulations shall be paid to the Director and deducted from

expenditure financed by the European Agricultural Guidance and

Guarantee Fund.

(2) The interest rate to be applied shall be calculated in

accordance with Maltese law, and shall not be lower than the

interest rate generally applicable to recovery under Maltese law.

(1) The Director shall take appropriate measures to ensure

the correctness of both prices paid to producers and aid paid in

accordance with regulation 8.

(2) The Director shall also provide in particular for penalties to

be imposed on the officers of a producer organisation

AID TO PRODUCERS

OF TOMATOES FOR PROCESSING

commensurate with the seriousness of any irregularity.

AID TO PRODUCERS

OF TOMATOES FOR PROCESSING

Amended by