Commission Delegated Regulation (EU) 2016/1149 of 15 April 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the national support programmes in the wine sector and amending Commission Regulation (EC) No 555/2008

COMMISSION DELEGATED REGULATION (EU) 2016/1149

of 15 April 2016

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the national support programmes in the wine sector and amending Commission Regulation (EC) No 555/2008

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Scope and use of terms

This Regulation shall not affect the application of:

(a) specific provisions governing relations between Member States in combating fraud in the wine sector in so far as they are such as to facilitate the application of this Regulation;

(b) rules relating to: (i) criminal proceedings or mutual assistance among Member States at judicial level in criminal matters; (ii) the administrative penalties procedure

Article 2

Responsibility for expenditure

Member States shall bear the responsibility for any expenditure effected under their support programme or any changes to that programme submitted to the Commission in accordance with Articles 1 and 2 of Implementing Regulation (EU) 2016/1150 in case they do not become applicable in accordance with Article 41(4) or (5) of Regulation (EU) No 1308/2013.

CHAPTER II

PROVISIONS ON SPECIFIC SUPPORT MEASURES

SECTION 1

Promotion

Sub-section 1

Common Provisions

Article 3

Beneficiaries

The beneficiaries of the support referred to in Article 45 of Regulation (EU) No 1308/2013 shall be professional organisations, wine producer organisations, associations of wine producer organisations, temporary or permanent associations of two or more producers, inter-branch organisations or, where a Member State decides so, bodies governed by public law within the meaning of Article 1(9) of Directive 2004/18/EC of the European Parliament and of the Council (¹).

Private companies may be beneficiaries of the measure referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013.

Member States shall not make a body governed by public law the sole beneficiary of the support.

Article 4

Duration of the support

The support for each information and promotion operation shall last no longer than three years for a given beneficiary in a given Member State for the measure referred to in point (a) of Article 45(1) of Regulation (EU) No 1308/2013 and for a given beneficiary in a given third country or third-country market for the measure referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013.

However, if justified in view of the effects of the operation, the support for an operation may be extended once for a maximum of two years or twice for a maximum of one year for each extension.

Article 5

Eligible costs and reimbursement rules for information and promotion operations

Subject to Article 45 of Regulation (EU) No 1308/2013 and Articles 6 and 9 of this Regulation, Member States shall lay down rules setting out the eligible actions and their respective eligible costs. Those rules shall be designed to ensure that the objectives of the schemes as laid down in Article 45 of Regulation (EU) No 1308/2013 are met.

Those rules shall provide in particular for the payment either on the basis of standard scales of unit costs calculated in accordance with Article 24 of Implementing Regulation (EU) 2016/1150 or on the basis of supporting documents to be submitted by the beneficiaries.

Sub-section 2

Information in the Member States

Article 6

Eligible operations

Article 7

Eligibility criteria

Member States shall examine an application against the following criteria:

(a) the operations and their underlying actions are clearly defined, describing the information activities and including the estimated cost;

(b) assurances that the proposed costs of the operation are not in excess of the normal market rates;

(c) assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively;

(d) the consistency with the strategies proposed and the objectives set and the likely impact and success in raising consumer's awareness about responsible consumption of wine and the risk associated with harmful alcohol consumption or about the Union system of protected designation of origin and protected geographical indications.

Article 8

Priority criteria

Having examined the applications, Member States shall give preference to operations:

(a) concerning both the responsible consumption of wine and the Union systems covering protected designations of origin and protected geographical indications;

(b) concerning several Member States;

(c) concerning several administrative or wine regions;

(d) concerning several protected designations of origin or protected geographical indications of the Union.

Sub-section 3

Promotion in third countries

Article 9

Eligible operations

The operations and their underlying actions for which the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 is applied shall consist in promotion of Union wines on third-country markets provided that:

(a) the products are intended for direct consumption and export opportunities or potential new market outlets in the targeted third countries exist for them;

(b) the origin of the product is indicated as part of an information or promotion operation in the case of wine with a protected designation of origin or a protected geographical indication;

(c) the operation supported is clearly defined, including the specification of which products may be taken into account, the marketing actions and the estimated cost;

(d) the information or promotion messages are based on the intrinsic qualities of the wine, and comply with the legislation applicable in the third countries at which they are targeted.

Article 10

Eligibility criteria

Member States shall examine an application against the following criteria:

(a) the operations and their underlying actions are clearly defined, describing the promotion activities and including the estimated cost;

(b) assurances that the proposed costs of the operation are not in excess of the normal market rates;

(c) assurances that beneficiaries have access to enough technical capacity to face the specific constraints of trade with third countries and have sufficient resources to ensure that the operation is implemented as effectively as possible;

(d) evidence submitted by beneficiaries that enough products in terms of quality and quantity will be available to ensure answering the market demand in the long run after the promotion operation;

(e) the consistency between the strategies proposed and the objectives set and the likely impact and success in increasing demand for the products concerned.

Article 11

Priority criteria

Having examined the applications, Member States shall give preference to:

(a) new beneficiaries who did not receive the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 in the past;

(b) beneficiaries targeting a new third country or a new third-country market for which they did not receive the support referred to in point (b) of Article 45(1) of Regulation (EU) No 1308/2013 in the past.

SECTION 2

Restructuring and conversion of vineyards

Article 12

Beneficiaries

The beneficiaries of the support referred to in Article 46 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Commission Regulation (EC) No 436/2009 (²).

Article 13

Eligibility criteria

Member States shall examine an application against the following criteria:

(a) the detailed description of the proposed actions and the proposed deadlines for their implementation;

(b) the actions to be implemented in each financial year, and the area concerned by each operation.

Article 14

Ineligible costs

The costs of the following actions shall not be eligible:

(a) day-to-day management of a vineyard;

(b) protection against damage by game, birds or hail;

(c) construction of windbreaks and wind protection walls;

(d) driveways and elevators;

(e) purchase of farm vehicles.

Article 15

Replanting for health or phytosanitary reasons

Replanting of a vineyard following a mandatory grubbing-up for health or phytosanitary reasons on the instruction of a competent authority of a Member State referred to in point (c) of the first subparagraph of Article 46(3) of Regulation (EU) No 1308/2013 shall be eligible for support provided that the Member State:

(a) communicates to the Commission, in the framework of the submission of the national support programme or any modification of that support programme, the list of harmful organisms covered by that activity as well as a summary of a related strategic plan established by the competent authority of the Member State concerned;

(b) complies with Council Directive 2000/29/EC (³).

Article 16

Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 3

Green harvesting

Article 17

Beneficiaries

The beneficiaries of the support referred to in Article 47 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Regulation (EC) No 436/2009.

Article 18

Conditions for the proper functioning

For the purposes of Article 47 of Regulation (EU) No 1308/2013, Member States shall adopt rules to ensure that the areas concerned will be kept in good vegetative conditions and that no negative impact on the environment nor any negative phytosanitary consequences result from the application of the measure referred to in that Article and to ensure that it is possible to check that the operations and actions are carried out correctly.

In relation to those objectives, Member States may apply restrictions to the measure based on objective and non-discriminatory criteria, including timing of different varieties, environmental or phytosanitary risks or the method to be used to carry out the measure.

Member States may adopt other conditions for the proper functioning of the measure referred to in Article 47 of Regulation (EU) No 1308/2013.

Article 19

Eligibility criteria

Member States shall examine an application on the basis of the details given on the area concerned, the average yield, the green harvesting method to be used as well as the grape variety and the type of wine produced from it.

Article 20

Ineligible actions

Article 21

Green harvesting in parcels for producing wines with geographical indications

The area of any parcel supported for green harvesting shall not be taken into consideration when calculating the yield limits set in the technical specifications of wines with a protected designation of origin or a protected geographical indication.

Article 22

Duration of the support

In order to be eligible for support, green harvesting shall not be applied on the same parcel for two consecutive years.

Article 23

Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 4

Mutual funds

Article 24

Beneficiaries

The beneficiaries of the support referred to in Article 48 of Regulation (EU) No 1308/2013 shall be wine growers as defined in point (a) of Article 2 of Regulation (EC) No 436/2009 or producers of the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013.

Article 25

Conditions for support

Article 26

Duration of the support

The support period shall not exceed three years.

SECTION 5

Harvest insurance

Article 27

Beneficiaries

Article 28

Payments to beneficiaries

Member States may decide to pay the support referred to in Article 49(1) of Regulation (EU) No 1308/2013 through insurance companies as intermediaries provided that:

(a) the conditions laid down in Article 49(4) of Regulation (EU) No 1308/2013 are respected;

(b) the amount of the support is transferred in full to the producer;

(c) the insurance company pays the support to the producer either in advance, through a reduction of the insurance premium, or through a bank or a postal transfer within 15 days after receiving the payment from the Member State.

Article 29

Conditions for the proper functioning

Member States shall fix ceilings for the amounts of support that may be received in order to respect the conditions laid down in Article 49(3) of Regulation (EU) No 1308/2013. Member States may fix the level on the basis of normal market rates and standard assumptions of income loss. Member States shall ensure that the calculations:

(a) contain only elements that are verifiable;

(b) are based on figures established by appropriate expertise;

(c) indicate clearly the source of the figures;

(d) take into account regional or local site conditions as appropriate.

Article 30

Use of terms

For the purposes of Article 49 of Regulation (EU) No 1308/2013, ‘natural disasters’ means natural disasters as defined in Article 2(9) of Regulation (EU) No 702/2014 and ‘adverse climatic events which can be assimilated to a natural disaster’ means adverse climatic events that can be assimilated to a natural disaster as defined in Article 2(16) of that Regulation.

Article 31

Priority criteria

Member States may establish priority criteria by indicating them in the support programme. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.

SECTION 6

Investments

Article 32

Beneficiaries

The beneficiaries of the support referred to in Article 50 of Regulation (EU) No 1308/2013 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to that Regulation, wine producer organisations, associations of two or more producers or interbranch organisations.

Article 33

Eligible actions and eligible costs

Only the costs of the following actions shall be eligible for support:

(a) the construction, acquisition, leasing, or improvement of immovable property;

(b) the purchase or lease-purchase of new machinery and equipment up to the market value of the asset;

(c) general costs linked to expenditure referred to in points (a), and (b), in particular architect, engineer and consultation fees as well as feasibility studies;

(d) the acquisition or development of computer software and acquisition of patents, licences and copyrights and the registration of collective marks.

The feasibility studies referred to in point (c) of the first subparagraph shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) of that subparagraph is made.

Article 34

Compatibility and consistency

No support under Article 50 of Regulation (EU) No 1308/2013 shall be granted for operations which received support under Article 45 of that Regulation.

Article 35

Eligibility criteria

Member States shall examine an application against the following criteria:

(a) the operations and their underlying actions are clearly defined, describing the investment actions and including the estimated cost;

(b) assurances that the costs of the proposed operation are not in excess of the normal market rates;

(c) assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively and that the applying enterprise is not in difficulty as referred to in the third subparagraph of Article 50(2) of Regulation (EU) No 1308/2013;

(d) the consistency between the strategies proposed and the objectives set and the likely impact and success in improving the overall performance of the processing or marketing facilities and their adaptation to market demands, as well as increasing their competitiveness.

Article 36

Priority criteria

SECTION 7

Innovation in the wine sector

Article 37

Beneficiaries

Article 38

Eligible actions and eligible costs

The operations and their underlying actions for which the support referred to in Article 51 of Regulation (EU) No 1308/2013 is applied shall consist of tangible and intangible investments including for knowledge-transfer for the development of the following:

(a) new products related to the wine sector or by-products of wine;

(b) new processes and technologies necessary for the development of grapevine products;

(c) other investments adding value at any stage of the supply chain.

Article 39

Eligibility criteria

Member States shall examine an application against the following criteria:

(a) the operations and their underlying actions are clearly defined, describing the investment actions and including the estimated cost;

(b) assurances that the costs of the proposed operation are not in excess of the normal market rates;

(c) assurances that beneficiaries have access to sufficient technical and financial resources to ensure that the operation is implemented effectively;

(d) the consistency between the strategies proposed and the objectives set and the likely impact and success in improving the overall performance of the processing or marketing facilities and their adaptation to market demands, as well as increasing their competitiveness.

Article 40

Priority criteria

Having examined the applications, Member States shall give preference to operations which:

(a) are likely to have positive effects in terms of energy savings, global energy efficiency and environmentally sustainable processes;

(b) include an element of knowledge transfer;

(c) ensure the participation of research and development centres.

SECTION 8

By-product distillation

Article 41

Beneficiaries

The beneficiaries of the support referred to in Article 52 of Regulation (EU) No 1308/2013 shall be distillers of by-products of wine-making.

The relevant Member States may introduce a system of voluntary certification of distillers according to a procedure that they lay down.

Article 42

Purpose of the support