The Common Agricultural Policy (Market Measures, Notifications and Direct Payments) (Miscellaneous Amendments) (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 2.00 p.m. on 14th October 2019

Laid before Parliament: at 5.00 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 Implementing Regulation (EU) No 543/2011

2

In Commission Implementing Regulation (EU) No 543/2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sectors, in Title 3, in Chapter 1, omit Section 4 (Producer groups).

Amendment of Commission Delegated Regulation (EU) 2017/891

3

(n) ‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be; (o) ‘public funds’ means moneys provided by Parliament, the Welsh Assembly, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom; (p) ‘relevant authority’ means: (i) in relation to England, the Secretary of State; (ii) in relation to Wales, the Welsh Ministers; (iii) in relation to Scotland, the Scottish Ministers; (iv) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs; (q) ‘third country’ means any country or territory other than: (i) the United Kingdom; (ii) the Bailiwick of Jersey; (iii) the Bailiwick of Guernsey; (iv) the Isle of Man.

(1) For the purposes of this Regulation, ‘appropriate authority’ means: (a) in relation to England, the Secretary of State; (b) in relation to Wales, the Welsh Ministers; (c) in relation to Scotland, the Scottish Ministers; (d) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs. (2) But the appropriate authority is the Secretary of State: (a) in relation to Scotland, at any time that the Secretary of State and the Scottish Ministers so agree; (b) in relation to Northern Ireland, at any time that the Secretary of State and the Department of Agriculture, Environment and Rural Affairs so agree. (3) The relevant authorities for Scotland and Northern Ireland must ensure that a statement identifying the appropriate authority for their constituent nation is published on websites maintained by them on or on their behalf.

(1) The head office of a producer organisation must be located in the constituent nation in which the organisation achieves the majority of the value of marketed production calculated in accordance with Articles 22 and23. But the head office may be established in the constituent nation where the majority of producer members are located, if both the appropriate authority for that constituent nation and the appropriate authority for the constituent nation referred to in the first subparagraph consent. (2) Notwithstanding paragraph 1, where the producer organisation implements an operational programme, the head office: (a) must be maintained in the same constituent nation until the end of the implementation of the operational programme; and (b) may be maintained in the same constituent nation for as long as the appropriate authority for that constituent nation and the appropriate authorities referred to in paragraph 1 consent. (3) The appropriate authority for the constituent nation in which the head office of the producer organisation is located: (a) may: (i) subject to paragraph 4, approve the producer organisation’s operational programme; (ii) grant financial assistance in accordance with Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013; (b) must: (i) organise checks on the producer organisation and apply any administrative penalties in accordance with Article 34A of Regulation (EU) 2017/892; and (ii) provide, on the request of the appropriate authority for a constituent nation in which members are located, all relevant documentation. (4) Notwithstanding paragraph 3(a)(i), where the producer organisation implements an operational programme at the time of applying for a new operational programme, the appropriate authority that may approve the new programme is the appropriate authority for the constituent nation in which the producer organisation will have its head office at the time that the new programme will be implemented, to be determined in accordance with paragraphs 1 and 2.

(1) The head office of an association of producer organisations must be located in the constituent nation in which the member producer organisations achieve the majority of the value of marketed production. But the head office may be established in the constituent nation where the majority of member producer organisations are located, if both the appropriate authority for that constituent nation and the appropriate authority for the constituent nation referred to in the first subparagraph consent. (2) Notwithstanding paragraph 1, where the association of producer organisations implements an operational programme, the head office: (a) must be maintained in the same constituent nation until the end of the implementation of the operational programme; and (b) may be maintained in the same constituent nation for as long as the appropriate authority for that constituent nation and the appropriate authorities referred to in paragraph 1 consent. (3) The appropriate authority for the constituent nation in which the head office of the association of producer organisations is located: (a) may: (i) subject to paragraph 4, approve the association’s operational programme; (ii) grant financial assistance in accordance with Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013; (b) must: (i) organise checks on the association of producer organisations and apply any administrative penalties in accordance with Article 34B of Regulation (EU) 2017/892; and (ii) provide, on the request of the appropriate authority for a constituent nation in which members are located, all relevant documentation. (4) Notwithstanding paragraph 3(a)(i), where the association of producer organisations implements an operational programme at the time of applying for a new operational programme, the appropriate authority that may approve the new programme is the appropriate authority for the constituent nation in which the association will have its head office at the time that the new programme will be implemented, to be determined in accordance with paragraphs 1 and 2.

(2) In addition to the elements referred to in Article 36(2) of Regulation (EU) No 1308/2013, the strategy must integrate all the decisions taken and provisions adopted for the purposes of Articles 152 to 163 of that Regulation that apply in the constituent nation concerned

(1) The relevant authority must carry out an analysis of the initial situation as part of the process of drawing up the strategy.

A producer organisation applying for an advance payment must demonstrate to the satisfaction of the appropriate authority, and the appropriate authority must verify, that: (a) financial contributions to the producer organisation’s operational fund have been levied in accordance with Articles 24 and 25; (b) the corresponding producer organisation contribution has actually been spent; and (c) any previous advance payments received by the producer organisation have actually been spent.

(4) In this Article ‘quarter’ means a period of three months ending with the last day of March, June, September or December.

(1) A producer organisation may apply for support for the administrative cost of setting up mutual funds.

(1) Harvest insurance actions must be managed by the producer organisation. Harvest insurance actions do not have to cover all of the members of the producer organisation, and can be targeted at specific producer members. Harvest insurance actions are not permitted to cover contracts of insurance that are not effected and carried out as principal by an authorised person in accordance with the Financial Services and Markets Act 2000[^f00006].

(4) Regulations under Article 35(1) of Regulation (EU) No 1308/2013 must specify the regions to which they apply. The regions must be a distinct part of the territory of the constituent nation concerned and data must be available in order to calculate the degree of organisation of producers in the fruit and vegetables sector in those regions. The appropriate authority must determine the regions where the degree of organisation of producers in the fruit and vegetables sector is particularly low on the basis of objective and non-discriminatory criteria, such as those regions’— (a) agronomic and economic characteristics; (b) agricultural and fruit and vegetable potential; and (c) institutional or administrative structure.

The appropriate authorities must ensure that the following information and documents are published on websites maintained by them or on their behalf: (a) by 31 January each year: (i) the total amount of the operational funds approved that year for operational programmes; (ii) the total amount of financial assistance granted under Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013 for that year; (iii) the allocations of the amounts referred to in points (i) and (ii) between: (aa) crisis prevention and management measures; (bb) other measures; (b) by 15 November each year, an annual report on producer organisations and associations of producer organisations, and operational funds and operational programmes in operation during the previous year. This annual report must contain the information set out in Annex 5 to this Regulation. Where the appropriate authorities agree, the annual report may be a single annual report in respect of the United Kingdom as a whole.

In this paragraph, the ‘responsible authority’ is the appropriate authority for the constituent nation in which the producer organisation has its head office.

(1A) In paragraph 1, “Bank of England base rate” for any particular day means— (a) except where point (b) applies, the rate as last announced at a meeting of the Monetary Policy Committee of the Bank of England held prior to that day as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets; or (b) if an order under section 19 (reserve powers) of the Bank of England Act 1998[^f00010] is in force, any equivalent rate determined by the Treasury under that section.

(1) Aid recovered under this Regulation, together with any interest payable thereon in accordance with this Regulation, must be apportioned between the relevant authorities in accordance with the proportion of that aid that was provided by each authority. (2) For the purpose of paragraph 1 and Articles 31(6), 36(2)(b) and 36(3), aid provided from European Union funds is deemed to have been provided by the relevant authority for the constituent nation in which the head office of the producer organisation was located when the aid was paid. (3) Penalties imposed under this Regulation must be paid to the relevant authority for the constituent nation in which the head office of the producer organisation was located during the period to which the penalty relates.

Amendment of Commission Implementing Regulation (EU) 2017/892

4

For the purposes of this Regulation, the following definitions apply: (a) ‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be; (b) ‘public funds’ means moneys provided by Parliament, the Welsh Assembly, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom; (c) ‘relevant authority’ means: (i) in relation to England, the Secretary of State; (ii) in relation to Wales, the Welsh Ministers; (iii) in relation to Scotland, the Scottish Ministers; (iv) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs; (d) ‘third country’ means any country or territory other than: (i) the United Kingdom; (ii) the Bailiwick of Jersey; (iii) the Bailiwick of Guernsey; (iv) the Isle of Man. (1) For the purposes of this Regulation, ‘appropriate authority’ means: (a) in relation to England, the Secretary of State; (b) in relation to Wales, the Welsh Ministers; (c) in relation to Scotland, the Scottish Ministers; (d) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs. (2) But the appropriate authority is the Secretary of State: (a) in relation to Scotland, at any time that the Secretary of State and the Scottish Ministers so agree; (b) in relation to Northern Ireland, at any time that the Secretary of State and the Department of Agriculture, Environment and Rural Affairs so agree. (3) The relevant authorities for Scotland and Northern Ireland must ensure that a statement identifying the appropriate authority for their constituent nation is published on websites maintained by them on or on their behalf.

(j) an annual report on the execution of the operational programme.

(5A) An application for aid by an association of producer organisations must relate to actions implemented at the level of the association and must be submitted to the appropriate authority for the constituent nation where that association has its head office. The appropriate authorities must ensure that there is no double funding risk.

Training measures and exchanges of better practices cannot constitute crisis prevention and management measures unless they are additional to any ongoing training actions not related to crisis prevention and management being applied by the producer organisation concerned in its operational programme.

(1) Promotion and communication measures implemented by producer organisations in relation to crisis prevention or crisis management, including actions and activities aimed at diversification and consolidation on the fruit and vegetable markets, may be applied rapidly when required.

Without prejudice to Articles 9, 24 and 25, the procedures for the submission of aid applications, requests for approval of operational programmes, and payment claims are those published from time to time by the appropriate authority.

.[^f00014]

(a) all eligibility criteria established by applicable legislation or by the strategy and framework of the constituent nation in which the producer organisation or association of producer organisations (as the case may be) has its head office can be checked;

(1) The appropriate authority for the constituent nation in which a producer organisation has its head office must: (a) organise checks on that organisation in respect of the operational programme and operational fund; and (b) apply administrative penalties in accordance with Section 3 of Chapter 5 of Title 2 of Regulation (EU) 2017/891 where such checks demonstrate that the relevant obligations have not been met. (2) The appropriate authorities for the other constituent nations in which the producer organisation’s members are located must, within any reasonable period provided by the appropriate authority in which the producer organisation has its head office: (a) provide such administrative assistance and carry out such administrative and on–the-spot checks as are required by that authority; and (b) report the results of those checks to that authority. (3) In respect of environmental and phytosanitary measures and crisis prevention and management measures, a producer organisation must comply with the rules of the constituent nation where the respective actions take place. In respect of all other matters in relation to the producer organisation and the operational programme and operational fund, the producer organisation must comply with the rules applicable in the constituent nation in which its head office is located (1) The appropriate authority for the constituent nation in which a producer organisation which is a member of an association has its head office must: (a) organise checks in respect of actions of the operational programme implemented in that constituent nation and of the operational fund; (b) apply administrative penalties in accordance with Section 3 of Chapter 5 of Title 2 of Regulation (EU) 2017/891 where such checks demonstrate that the relevant obligations have not been met; (c) provide such administrative assistance as is requested by the appropriate authority for the constituent nation in which the association of producer organisations has its head office; and (d) notify the results of checks it has carried out and administrative penalties it has applied without delay to the appropriate authority for the constituent nation in which the association of producer organisations has its head office. (2) The appropriate authority for the constituent nation in which the association of producer organisations has its head office must: (a) organise checks in respect of actions of the operational programme implemented at the level of the association and of the operational fund of the association; (b) apply administrative penalties in accordance with Section 3 of Chapter 5 of Title 2 of Regulation (EU) 2017/891 where such checks demonstrate that the relevant obligations have not been met; and (c) co-ordinate checks and payments in respect of the actions of the operational programme of the association implemented outside the constituent nation where its head office is located. (3) The actions of the operational programmes must comply with the rules and strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013 of the constituent nation where, in accordance with Article 9(6), the application for aid is submitted. But environmental and phytosanitary measures and crisis prevention and management measures must comply with the rules of the constituent nation where these measures and actions are actually carried out.

Amendment of Commission Implementing Regulation (EU) 2017/1185

5

Economic operators must provide the relevant authorities with such information at their disposal and specified in Annexes 1, 2 or 3 as the relevant authorities request. The relevant authorities may specify the manner in which, and the period within which, such information is to be provided. If no such period is specified, the information must be provided within a reasonable time.

In this Regulation: (a) ‘relevant authority’ means: (i) in relation to England, the Secretary of State; (ii) in relation to Wales, the Welsh Ministers; (iii) in relation to Scotland, the Scottish Ministers; (iv) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs; (b) ‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be.

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

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

6

(vi) any of the crisis prevention and management measures listed in Article 33(3) of Regulation (EU) No 1308/2013;

(m) ‘appropriate authority’ has the same meaning as in Article 2A of Regulation (EU) 2017/891; (n) ‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be; (o) ‘public funds’ means moneys provided by Parliament, the Welsh Assembly, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom; (p) ‘relevant authority’ means: (i) in relation to England, the Secretary of State; (ii) in relation to Wales, the Welsh Ministers; (iii) in relation to Scotland, the Scottish Ministers; (iv) in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs.

(1) Where a producer organisation implements an operational programme to which this Regulation applies, the head office of that producer organisation must be maintained in the same constituent nation until the end of the implementation of that programme. (2) If at the end of the implementation of that operational programme, the majority of the value of marketed production is achieved or the majority of the producer organisation’s members are located in a constituent nation other than that where the head office is currently located, the head office must be transferred to that other constituent nation, unless the appropriate authorities for both constituent nations agree that the location of the head office will not be changed. (3) The appropriate authority for the constituent nation in which the head office of the producer organisation is located: (a) may: (i) approve amendments to the producer organisation’s operational programme; (ii) grant financial assistance in accordance with Articles 32(1)(b) and 34 of Regulation (EU) No 1308/2013; (b) must: (i) organise checks on the producer organisation and apply any administrative penalties in accordance with Article 143A; and (ii) provide, on the request of the appropriate authority for a constituent nation in which members are located, all relevant documentation.

(2) Environmental actions selected under an operational programme must fulfil the requirements on complementarity, consistency and conformity set out in the relevant section of the framework referred to in Article 36(1) of Regulation (EU) No 1308/2013 for the constituent nation concerned. A non-exhaustive list of environmental actions, the conditions they must meet for the purposes of Article 33(5) of Regulation (EU) No 1308/2013 and the specific commitment or commitments they entail is as set out in the framework.

(2) Where support under the relevant authority’s rural development programme or programmes has been granted to measures which would be potentially eligible under this Regulation, the appropriate authority for the constituent nation concerned must ensure that a beneficiary may receive support for a given action only under one scheme.

(1) The appropriate authority must notify producer organisations of the approved amount of aid by 15 December of the year preceding the year for which aid is requested.

(g) compliance with Article 33(3), the first subparagraph of Article 33(5) and Article 34 of Regulation (EU) No 1308/2013; and

A producer organisation applying for an advance payment must demonstrate to the satisfaction of the appropriate authority, and the appropriate authority must verify, that: (a) financial contributions to the producer organisation’s operational fund have been levied in accordance with Articles 52 and 53; (b) the corresponding producer organisation contribution has actually been spent; and (c) any previous advance payments received by the producer organisation have actually been spent.

(7) In this Article ‘quarter’ means a period of three months ending with the last day of March, June, September or December.

(1) Promotion and communication measures implemented by producer organisations in relation to crisis prevention or crisis management may be applied rapidly when required.

Training measures and exchanges of better practices cannot constitute crisis prevention and management measures unless they are additional to any ongoing training actions not related to crisis prevention and management being applied by the producer organisation concerned in its operational programme.

(1) Harvest insurance actions must be managed by the producer organisation. Harvest insurance actions do not have to cover all of the members of the producer organisation, and can be targeted at specific producer members. Harvest insurance actions are not permitted to cover contracts of insurance that are not effected and carried out as principal by an authorised person. In this Article, “contracts of insurance”, “effected and carried out as principal” and “authorised person” have the same meanings as in the Financial Services and Markets Act 2000.

(1) A producer organisation may apply for support for the administrative cost of setting up mutual funds.

Without prejudice to specific provisions of this Regulation, the procedures for the submission of aid applications, requests for approval of operational programmes, and payment claims are those published from time to time by the appropriate authority.

Where recognition of a producer organisation is withdrawn in accordance with Article 59(3) of Regulation (EU) No 2017/891: (a) no aid is to be paid in relation to the period starting from the moment on which the failure described in paragraph 1 is established; and (b) any unduly paid aid in relation to such period must be recovered.

(1) Where a producer organisation is found to have committed fraud in respect of aid covered by this Regulation and Regulation (EU) No 1308/2013, the responsible authority must, without prejudice to any other sanctions or penalties applicable in law:

In this paragraph, the ‘responsible authority’ is the appropriate authority for the constituent nation in which the producer organisation has its head office.

(2) The appropriate authority may suspend payments to a producer organisation that is suspected of having committed fraud in respect of aid covered by this Regulation and Regulation (EU) No 1308/2013.

(1A) In paragraph (1), “Bank of England base rate” for any particular day means— (a) except where point (b) applies, the rate as last announced at a meeting of the Monetary Policy Committee of the Bank of England held prior to that day as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets; or (b) if an order under section 19 (reserve powers) of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section.

(1) Aid recovered under this Regulation, together with any interest payable thereon in accordance with this Regulation, must be apportioned between the relevant authorities in accordance with the proportion of that aid that was provided by each authority. (2) For the purpose of paragraph 1, aid provided from European Union funds is deemed to have been provided by the relevant authority for the constituent nation in which the head office of the producer organisation was located when the aid was paid. (3) Penalties imposed under this Regulation must be paid to the relevant authority for the constituent nation in which the head office of the producer organisation was located during the period to which the penalty relates.

(1) Without prejudice to specific provisions of this Regulation or other retained EU law, the appropriate authority must conduct checks and take measures in so far as they are necessary to ensure the proper application of Regulation (EU) No 1308/2013 and this Regulation. Those checks and measures must be effective, proportionate and dissuasive in order to ensure proper management of public funds. (2) In particular, they must ensure that: (a) all eligibility criteria established by applicable legislation or the strategy and framework referred to in Article 36 of Regulation (EU) No 1308/2013 of the constituent nation concerned can be checked; (b) they have a sufficient number of suitably qualified and experienced staff to carry out the checks effectively; and (c) provision is made for checks to avoid irregular duplicated financing of measures under this Regulation and other schemes funded in whole or in part by European Union or public funds.

(1) The appropriate authority for the constituent nation in which a producer organisation has its head office must: (a) organise checks on that organisation in respect of the operational programme and operational fund; and (b) apply administrative penalties where such checks demonstrate that the relevant obligations have not been met. (2) The appropriate authorities for the other constituent nations in which the producer organisation’s members are located must, within any reasonable period provided by the appropriate authority in which the producer organisation has its head office: (a) provide such administrative assistance and carry out such administrative and on–the-spot checks as are required by that authority; and (b) report the results of those checks to that authority. (3) In respect of environmental and phytosanitary questions and crisis prevention and management measures, a producer organisation must comply with the rules of the constituent nation where the respective actions take place. In respect of all other matters in relation to the producer organisation and the operational programme and operational fund, the producer organisation must comply with the rules applicable in the constituent nation in which its head office is located

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