The Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2019

Type Statutory-Instrument
Publication 2019-10-14
State In force
Department King's Printer of Acts of Parliament
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articles Not indexed
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Made: at 2.05 p.m. on 14th October 2019

Laid before Parliament: at 4.30 p.m. on 14th October 2019

Coming into force in accordance with regulation 1

The Secretary of State is of the opinion that, by reason of urgency, it is necessary to make these Regulations without a draft of the instrument being laid before, and approved by a resolution of, each House of Parliament.

PART 1 — Introductory

Citation and commencement

1

PART 2 — Amendment of retained direct EU legislation

Amendment of Commission Delegated Regulation (EU) No880/2012

2

Amendment of Regulation (EU) No 1308/2013 of the European Parliament and of the Council

3

(4) Paragraph 3 does not apply to products imported from the European Union until the end of the period of 9 months beginning on the day after that on which exit day falls provided that: (a) the products comply with paragraph 1; (b) the products are accompanied by documentation which provides: (i) evidence of the alcohol content; and (ii) details of the amount of wine in the consignment; and (c) where the Secretary of State has published a statement under paragraph 5 in respect of those products, the products are imported before the date on which the statement is published. (5) Where the Secretary of State considers that products referred to in paragraph 1 that are imported from the European Union do not meet the standards required in order to be marketed in the United Kingdom, the Secretary of State must publish a statement to that effect.

(3) Where the Secretary of State considers that the conditions laid down in this Subsection are met, the Secretary of State must publish the single document referred to in point (d) of Article 94(1) and the product specification. (4) Where the Secretary of State considers that the conditions laid down in this Subsection are not met, the Secretary of State must decide to reject the application and: (a) inform the applicant and any interested parties of the decision and the reasons for that decision; and (b) publish the decision and the reasons.

Where an application has been submitted to the Commission under Article 96 before exit day and, as at exit day, the Commission has not adopted an implementing act in respect of the application under Article 99, the Secretary of State must publish the single document referred to in point (d) of Article 94(1) and the product specification as soon as reasonably practicable. The publication of the single document initiates the objection procedure under Article 98 in respect of that application.

(1) On the basis of the information available to the Secretary of State upon completion of the objection procedure referred to in Article 98, the Secretary of State must decide to: (a) reject the application if the Secretary of State considers that the conditions laid down in this Subsection are not met; or (b) approve the application and update the register provided for in Article 104 accordingly. (2) Where the Secretary of State decides to reject an application under point (a) of the first paragraph, the Secretary of State must: (a) inform the applicant and any interested parties of the decision and the reasons for that decision; and (b) publish the decision and the reasons.

Either on the Secretary of State’s own initiative or following a request, the Secretary of State may decide, in accordance with Commission Delegated Regulation (EU) 2019/33 and Commission Implementing Regulation (EU) 2019/34, to cancel the protection of a designation of origin or a geographical indication where the Secretary of State considers that compliance with the corresponding product specification is no longer ensured. Where the Secretary of State makes a decision to cancel under the first paragraph, the Secretary of State must: (a) inform any interested party of the decision and the reasons for that decision; (b) publish the decision and reasons; and (c) update the register provided for in Article 104 accordingly.

(1) The Secretary of State must enter the names of established protected designations of origin and established protected geographical indications in the register provided for in Article 104 of this Regulation. (2) For the purposes of paragraph 1, a protected designation of origin or a protected geographical indication is established where it: (a) is shown as a United Kingdom designation of origin or geographical indication on the register maintained by the Commission pursuant to Article 104 as the register stands immediately before exit day; (b) arises out of an international agreement in force on exit day between the United Kingdom and a third country.

(g) rights to appeal any decision made: (i) under Article 99 to reject or approve an application for the protection of a designation of origin or of a geographical indication; (ii) to reject or approve an application submitted under Article 105 to amend the product specification of a protected designation of origin or of a protected geographical indication; (iii) under Article 106, either to reject or approve an application to cancel a protected designation of origin or a protected geographical indication, or to cancel such protection on the Secretary of State’s own initiative, including the parties who may bring an appeal, the grounds and form of appeal, appeals procedure, and the identity and powers of the appeal body.

(h) the circumstances in which an interested party may appeal any decision to: (i) reject or approve an application for the protection of a traditional term; (ii) reject or approve an application for the modification of the protection of a traditional term; (iii) either reject or approve an application for the cancellation of the protection of a traditional term, or to cancel such protection on the Secretary of State’s own initiative.

(2) The Secretary of State may: (a) approve or reject an application for protection of a traditional term; (b) approve or reject an application for modification of a protected traditional term; (c) approve or reject an application to cancel the protection of a traditional term; (d) cancel the protection of a traditional term on the Secretary of State’s own initiative. Where the Secretary of State makes a decision under the first subparagraph of this paragraph, the Secretary of State must: (a) inform such parties as the Secretary of State considers to have an interest in the decision and, in the case of a decision to reject an application under points (a), (b) or (c) of the first subparagraph, the reasons for the rejection; and (b) publish the decision and, in the case of a decision to reject an application under points (a), (b) or (c) of the first subparagraph, the reasons for the rejection.

(b) in exceptional and duly justified circumstances specified in regulations made by the Secretary of State in order to ensure compliance with existing labelling practices;

The Secretary of State may, pursuant to international obligations, make regulations setting out derogations from point 5 of Section B or Section C of Part 2 of Annex 8 for imported products.

Amendment of Commission Delegated Regulation (EU) 2016/232

4

In Commission Delegated Regulation (EU) 2016/232 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to certain aspects of producer cooperation, omit Articles 2 and 4.

Amendment of Commission Delegated Regulation (EU) 2017/891

5

(r) ‘existing non-UK member’ means an ex-transnational producer organisation member: (i) who was, immediately before exit day, a producer member of such organisation within the meaning of Article 2(b) (as it had effect immediately before exit day); and (ii) at least one of whose holdings is situated in a member State; (s) ‘ex-transnational producer organisation’ means a producer organisation that was, immediately before exit day, recognised in the United Kingdom as a transnational producer organisation within the meaning of Article 2(d) (as it had effect immediately before exit day).

Subject to paragraph 3, resignation from membership will take effect: (a) if notice of resignation is received by the producer organisation on or before 30 September (or such earlier date as may be set in the producer organisation’s membership agreement in accordance with paragraph 3), on 1 January of the following year; (b) if notice of resignation is received by the producer organisation after 30 September (or such earlier date as may be set in the producer organisation’s membership agreement in accordance with paragraph 3), on 1 January of the year after the following year.

(3) The membership agreement of a producer organisation may require notice of resignation to be given before 30 September (but no earlier than 30 June) of the year before that in which resignation takes effect.

For the purposes of Article 154(1)(b) of Regulation (EU) No 1308/2013, the minimum value of marketed production is: (a) €250,000 for producer organisations recognised for mushrooms or nuts; (b) €1 million for producer organisations recognised in respect of any other product or group of products.

(1) An ex-transnational producer organisation retains recognition as a producer organisation pursuant to Article 152 of Regulation (EU) No 1308/2013 provided that it fulfils the criteria and requirements for recognition set out in Regulation (EU) No 1308/2013, this Regulation and Regulation (EU) 2017/892. (2) Any person that: (a) was a member of an ex-transnational producer organisation immediately before exit day; and (b) is not a producer within the meaning of Article 2(a), is a non-producer member of such producer organisation within the meaning of Article 16, whether or not such person was a producer member of such organisation before exit day.

Restrictions on the natural or legal persons’ right to vote on decisions relating to operational funds are set out in Annex 8 to this Regulation.

(4) By way of derogation from paragraph 3(b), an existing non-UK member of an ex-transnational producer organisation may continue to benefit directly from measures financed from public funds, where: (a) those measures are contained in an operational programme that was implemented by that organisation before exit day; and (b) that member was entitled to benefit from those measures immediately before exit day.

(2) The maximum percentage of voting rights and shares or capital which any natural or legal person may hold in any producer organisation that does not fall within paragraph 1 is set out in Annex 8 to this Regulation.

Restrictions on those members’ right to vote on decisions relating to operational programmes are set out in Annex 8 to this Regulation.

(2A) For ex-transnational producer organisations in the year in which exit day falls, the ceiling on financial assistance referred to in Article 34(2) of Regulation (EU) No 1308/2013 is to be calculated, and compliance with Article 154(1)(b) of Regulation (EU) No 1308/2013 is to be assessed, on the basis of the value of marketed production calculated as follows: $$A×C E + B×D E$ Where A is the value of the marketed production during the reference period of producers within the meaning of Article 2(a) (as it had effect immediately before exit day) who were members of the organisation on 1 January of the year in which exit day falls, calculated in accordance with Article 22 (as it had effect immediately before exit day); B is the value of the marketed production during the reference period of producers within the meaning of Article 2(a) (as it has effect on exit day) who were members of the organisation on 1 January of the year in which exit day falls, calculated in accordance with Article 22 (as it has effect on exit day); C is: where exit day falls at midnight, the number of full days in the year in which exit day falls that fall before exit day; or where exit day falls at any other time, one plus the number of full days in the year in which exit day falls that fall before exit day; D is the number of full days in the year in which exit day falls that fall after exit day; and E is the total number of full days in the year concerned.$ (2B) For ex-transnational producer organisations in any year after the year in which exit day falls, the ceiling on financial assistance referred to in Article 34(2) of Regulation (EU) No 1308/2013 is to be calculated, and compliance with Article 154(1)(b) of Regulation (EU) No 1308/2013 is to be assessed, on the basis of the value of the marketed production during the reference period of producers who are producer members of the organisation on 1 January of the year for which aid is requested, calculated in accordance with Article 22.

An ex-transnational producer organisation is not required to recover an investment (or its residual value) that was implemented on the holdings or premises of an existing non-UK member that leaves the organisation.

(6) The obligations to recover financial assistance under the sentence at the end of paragraph 2(b) and paragraph 3 do not apply to investments that are financed under an operational programme implemented on exit day by an ex-transnational producer organisation.

United Kingdom. However, operations or costs relating to the quantities produced by the members of the producer organisation within the European Union are not ineligible under this paragraph until the year after that in which exit day falls.

(1) In this Annex: (a) ‘voting right’ means a right to vote in relation to a relevant decision; (b) ‘relevant decision’ means any decision affecting the producer organisation or association of producer organisations (as the case may be) and its members (in their capacity as such), including the election of the producer organisation’s or association of producer organisations’ (as the case may be) directors or board members. (2) A producer organisation must provide in its members’ agreements and statutes for each producer member to have one voting right. (3) By way of derogation from point 1, a producer organisation that has more than ten members may, with the agreement of the Secretary of State, provide for individual producer members to exercise up to 10% each of the voting rights. The remaining voting rights (other than voting rights held by non-producer members, insofar as permitted by the Secretary of State and the producer organisation) must be shared between the remaining producer members. A producer organisation that implements this option must adopt measures to prevent abuses of power by its members. (4) A producer organisation may provide in its members’ agreements and statutes for non-producer members to have voting rights, provided that: (a) a non-producer member must not be permitted to hold more than one voting right; (b) the total share of the voting rights exercisable by non-producer members must be: (i) in relation to decisions concerning an operational programme implemented by an ex-transnational producer organisation on exit day, less than a majority of the total number of voting rights exercisable in respect of such decisions; (ii) in relation to any other relevant decisions, no more than 20%. (5) A natural or legal person must not hold more than: (a) 20% of the total number of shares or amount of capital in a producer organisation directly; or (b) 49% of the total number of shares or amount of capital in a producer organisation in total, directly or indirectly. (6) For the purpose of point 4, a person holds a share or capital “indirectly” if the person has a majority stake in another person and that other person: (a) holds the share or capital in question; or (b) is part of a chain of persons: (i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain; and (ii) the last of whom holds the share or capital. (7) An association of producer organisations must provide in its members’ agreements and statutes for each member that is a producer organisation to have one voting right. (8) An association of producer organisations may provide in its members’ agreements and statutes for producer members that are not producer organisations to have voting rights, provided that: (a) such members must not be permitted to hold more than one voting right each; (b) the total share of the voting rights exercisable by such members must be less than a majority of the total number of voting rights exercisable in respect of each relevant decision.

Amendment of Commission Implementing Regulation (EU) 2017/892

6

(e) ‘existing non-UK member’ means an ex-transnational producer organisation member: (i) who was, immediately before exit day, a producer member of such organisation within the meaning of Article 2(b) of Regulation (EU) 2017/891 (as it had effect immediately before exit day); and (ii) at least one of whose holdings is situated in a member State; (f) ‘ex-transnational producer organisation’ means a producer organisation that was, immediately before exit day, recognised in the United Kingdom as a transnational producer organisation within the meaning of Article 2(d) of Regulation (EU) 2017/891 (as it had effect immediately before exit day).

The Secretary of State must ensure that a unique identification system applies to producer organisations and associations of producer organisations with regard to their aid applications.

(3) If the check reveals any non-compliance with the recognition criteria, the producer organisation or association of producer organisations concerned must send a copy of the report to the Secretary of State within 28 days of the date on which the final version of the report is sent to the producer organisation or association of producer organisations.

If a check reveals any non-compliance with the recognition criteria, a detailed report must be made and sent to the Secretary of State in accordance with Article 28.

PART 3 — Interpretation of legacy provisions of retained direct EU legislation

Interpretation of Commission Implementing Regulation (EU) No 543/2011

7

(b) subject to the Secretary of State’s approval, by producer members of the producer organisation, if doing so contributes to the objectives listed in Article 152(1)(c) of Regulation (EU) No 1308/2013.

(5) Without prejudice to specific provisions in this Regulation, where the Secretary of State becomes aware that a producer organisation has failed to notify the appropriate authority or the Secretary of State as required under this Regulation, or where the notification appears incorrect in the light of objective facts in the Secretary of State’s possession, the Secretary of State must suspend the recognition of the producer organisation until the notification is correctly made.

(2A) If an on-the-spot check reveals any non-compliance with the recognition criteria, the producer organisation concerned must send a copy of the report to the Secretary of State within 28 days of the date on which the final version of the report is sent to the producer organisation.

The Secretary of State may suspend the recognition of a producer organisation that is suspected of having committed fraud in respect of aid covered by this Regulation and Regulation (EU) No 1308/2013.

(3) If a check reveals any non-compliance with the recognition criteria, a detailed report must be made and sent to the Secretary of State in accordance with Article 103.

Any notification, claim or request made to the Secretary of State under this Regulation may be adjusted at any time after its submission in cases of obvious errors recognised by the Secretary of State.

PART 4 — Amendment of domestic regulations

8

PART 5 — Revocations

Revocation of certain implementing acts relating to EU wine designations of origin, geographical indications, and traditional terms

9

Any implementing act adopted under the following provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council prior to exit day and forming part of domestic law by virtue of section 3(1) of the European Union (Withdrawal) Act 2018 is revoked—

Signed

George Eustice — Minister of State — Department for Environment, Food and Rural Affairs — At 2.05 p.m. on 14th October 2019

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations are made in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 (c. 16) in order to address failures of retained EU law to operate effectively and other deficiencies (in particular under section 8(2)(a), (b), (c), (d) and (g)) arising from the withdrawal of the United Kingdom from the European Union.

Part 2 of these Regulations makes amendments to Commission Delegated Regulation (EU) No880/2012 and Commission Delegated Regulation (EU) 2016/232 concerning transnational cooperation.

It also amends provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council in relation to protected geographical indications, protected designations of origin and traditional terms in the wine sector.

It also makes amendments to Commission Delegated Regulation (EU) 2017/891 and Commission Implementing Regulation (EU) 2017/892 concerning producer organisations and notifications in the fruit and vegetables and processed fruit and vegetables sectors.

Part 3 amends provisions of Commission Implementing Regulation (EU) No 543/2011 which have been repealed but which continue to operate by virtue of savings provisions in Commission Delegated Regulation (EU) 2017/891.

Part 4 amends the Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019 to insert a time limit of 9 months for the transitional period during which wine imports can be accompanied by EU documentation and to revoke a provision which is replaced by this instrument.

Part 5 revokes certain implementing acts relating to EU wine designations of origin, geographical indications, and traditional terms.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

Footnotes

[^f00001]: 2018 c. 16.

[^f00002]: OJ No L 31, 1.2.2002, p.1, as last amended by Commission Regulation (EU) 2017/228 (OJ No L 35, 10.2.2017, p. 10).

[^f00003]: Other amendments to Regulation (EU) No 1308/2013 are made by S.I. 2019/821, 828, 831, the Agriculture (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) and the Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments etc.) (EU Exit) (No.2) Regulations 2019 (S.I. 2019/XXX).

[^f00004]: Article 2 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00005]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) insert points (n) to (q) into Article 2.

[^f00006]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) insert a definition of “public funds” into Article 2 of Regulation (EU) 2017/891.

[^f00007]: Article 23 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00008]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) amend Article 23(4) to replace the reference to the “competent authority of the Member State concerned” with “appropriate authority”.

[^f00009]: Article 31(7) is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00010]: Article 59(1) is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00011]: Article 60(1) is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00012]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) insert words after point (c) in Article 60(2) of Regulation (EU) 2017/891.

[^f00013]: Part A of Annex 5 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00014]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) insert Article 1A into Regulation (EU) 2017/892.

[^f00015]: Article 23 is replaced by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX), which make provision for the procedures for the submission of aid applications, requests for approval of operational programmes, as well as payment claims.

[^f00016]: Article 26(4) is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00017]: Article 34 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00018]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) amend Article 35 to replace references to the “competent authority of the Member State” and “Member State” (in the second place it occurs) with “appropriate authority”.

[^f00019]: Annex 2 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00020]: Articles 2, 19 to 35 and 50 to 148 of, and Annexes 6 to 18 to, Commission Implementing Regulation (EU) No 543/2011 were deleted by Article 79 of Commission Delegated Regulation (EU) 2017/891, but under Article 80 of Regulation (EU) 2017/891 a producer organisation or association of producer organisations may request that an operational programme approved under Regulation (EU) No 543/2011 continue to operate until its end under the conditions applicable under that Regulation.

[^f00021]: Article 19 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00022]: The second subparagraph of Article 96(5) is omitted by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00023]: Article 114 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00024]: Article 115(1) is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00025]: The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX) insert words after point (c) in Article 115(1).

[^f00026]: Article 115(2) is replaced by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00027]: Article 143 is replaced by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00028]: Article 147 is also amended by the Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/XXX).

[^f00029]: S.I. 2019/828.

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