The Common Organisation of the Markets in Agricultural Products (Fruit and Vegetable Producer Organisations, Tariff Quotas and Wine) (Amendment etc.) Regulations 2021

Type Statutory-Instrument
Publication 2021-06-24
State In force
Department King's Printer of Acts of Parliament
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Made: 24th June 2021

Coming into force: 25th June 2021

In accordance with paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018, a draft of this instrument has been laid before Parliament 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

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[^f00002], in Title 3, in Chapter 1, omit Section 4 (Producer groups).

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

3

(1) Tariff quotas for imports of United Kingdom agricultural products into another country, which are to be partly or fully administered by the United Kingdom, resulting from international agreements to which the United Kingdom is a party, may be opened or administered by the Secretary of State by means of regulations made pursuant to Article 186 or Article 187 of this Regulation.

  • An established protected designation of origin within the meaning given by point (a) of Article 107(2) or an established protected geographical indication within the meaning given by point (b) of Article 107(2).

Commission Delegated Regulation (EU) 2017/891

4

(n) ‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be; (o) ‘public funds’ means moneys provided by Parliament, Senedd Cymru, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom. References to ‘public funding’ are to be construed accordingly; (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; (r) ‘existing non-UK member’ means an ex-transnational producer organisation member: (i) who was, immediately before IP completion day, a producer member of a transnational producer organisation within the meaning of Articles 2(b) and 2(d) (as they had effect immediately before IP completion day); and (ii) at least one of whose holdings is situated in a European Union Member State; (s) ‘ex-transnational producer organisation’ means a producer organisation that was, immediately before IP completion day, recognised in the United Kingdom as a transnational producer organisation within the meaning of Article 2(d) (as it had effect immediately before IP completion day).

(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 each ensure that a statement identifying the appropriate authority for their constituent nation is published on a website maintained by them or on their behalf.

(3) By way of derogation from paragraph 2, an existing non-UK member[^f00008] of an ex-transnational producer organisation continues to be a producer member of such organisation until the end of the implementation of an ongoing operational programme that was being implemented by that organisation before IP completion day.

(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, the head office: (a) may not move to another constituent nation until the end of the implementation of an ongoing operational programme; and (b) may be maintained in a particular 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 is implementing 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 on the basis of the new operational programme.

(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 calculated in accordance with Articles 22 and 23 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, the head office: (a) may not move to another constituent nation until the end of the implementation of an ongoing operational programme; and (b) may be maintained in a particular 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 is implementing 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 on the basis of the new operational programme.

(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

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

The obligations to recover any aid paid from public funds under the fourth subparagraph do not apply to investments that are financed under an operational programme implemented by an ex-transnational producer organisation, provided that: (a) the investment was financed under an operational programme that was being implemented by the ex-transnational producer organisation immediately before IP completion day; and (b) the investment was carried over to a subsequent operational programme because the fiscal depreciation period of the investment exceeded the length of the operational programme being implemented immediately before IP completion day.

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 and paid 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.

  • Any aid paid from public funds for multiannual commitments, such as environmental actions, where their long term objectives and expected benefits cannot be realised because of the interruption of the measure shall be recovered by or on behalf of the relevant authority or authorities that provided the aid.

(1) A producer organisation may apply for support for the administrative cost of setting up mutual funds and the replenishment of mutual funds, as referred to in point (d) of the first subparagraph of Article 33(3) of Regulation (EU) No 1308/2013.

(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[^f00013].

(4) Regulations under Article 35(1) of Regulation (EU) No 1308/2013 must specify the regions to which the regulations 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.

Each appropriate authority must each ensure that the following information and documents are published on a website maintained by them or on their behalf, starting in 2022: (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 V to this Regulation. Where the appropriate authorities agree, the information and documents may instead be published 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 in respect of actions under point (b), and the Secretary of State in respect of actions under points (a) and (c).

(b) at the following rates— (i) if the undue payment was made from European Union funds, at the rate applied by the European Central Bank to its main refinancing operations published in the ‘C’ series of the Official Journal of the European Union and in force on the date on which the undue payment is made, plus three percentage points; (ii) if the undue payment was made from public funds, at the Bank of England base rate in force on the date on which the undue payment is made, plus three percentage points.

(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[^f00016] is in force, any equivalent rate determined by the Treasury under that section.

(2) Payments recovered, and interest and penalties imposed in relation to aid paid from European Union funds must be paid to the EAGF. Payments recovered, and interest and penalties imposed in relation to aid paid from public funds must be paid to the relevant authority that provided the aid.

(1) Aid paid from public funds that is 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) Penalties imposed under this Regulation in relation to aid paid from public funds 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.

(b) the total share of the voting rights exercisable by non-producer members must be no more than 20%.

Commission Implementing Regulation (EU) 2017/892

5

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, Senedd Cymru, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom. References to ‘public funding’ are to be construed accordingly; (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; (e) ‘existing non-UK member’ means an ex-transnational producer organisation member: (i) who was, immediately before IP completion day, a producer member of a transnational producer organisation within the meaning of Articles 2(b) and 2(d) of Regulation (EU) 2017/891 (as they had effect immediately before IP completion day); and (ii) at least one of whose holdings is situated in a European Union Member State; (f) ‘ex-transnational producer organisation’ means a producer organisation that was, immediately before IP completion 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 IP completion day). (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 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, and the procedures for the submission of requests for recognition are those published from time to time by the Secretary of State.

(a) all eligibility criteria established by applicable legislation or by the strategy and framework referred to in Article 36 of Regulation (EU) No 1308/2013 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 V of Title II of Regulation (EU) 2017/891 where such checks demonstrate that the relevant obligations have not been met. (2) The appropriate authorities for any 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 measures and 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 V of Title II 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 V of Title II 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.

Commission Implementing Regulation (EU) 2017/1185

6

Economic operators must provide the relevant authorities with such information at their disposal and specified in Annexes I, II or III 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 — Revocations

Revocations

7

The following are revoked—

Signed

Victoria Prentis — Minister of State — Department for Environment, Food and Rural Affairs — 24th June 2021

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) and 8(9) of the 2018 Act) arising from the withdrawal of the United Kingdom from the European Union.

Regulations 2, 4 and 5 make amendments to Commission Implementing Regulation (EU) No 543/2011, Commission Delegated Regulation (EU) 2017/891 and Commission Implementing Regulation (EU) 2017/892 concerning producer groups, producer organisations and notifications in the fruit and vegetables and processed fruit and vegetables sectors.

Regulation 3 makes amendments to Regulation (EU) No 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products (EUR 2013/1308). Articles 184 and 188 are amended to remove provision for the administration of tariff quotas for imported agricultural products and to provide for the administration of export tariff quotas for United Kingdom agricultural products by the Secretary of State. An entry in the table in Part 3 of Annex 9A to the Regulation is corrected.

Regulation 6 amends provisions of Commission Implementing Regulation (EU) 2017/1185 relating to notifications of agricultural market information to domestic authorities.

Regulation 7 revokes Part 4 of the Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020. There is doubt as to whether the amendments made by Part 4 of those Regulations came into force, as intended, on IP completion day, due to an error in the commencement provisions of those Regulations. To put this matter beyond doubt and ensure that the retained EU legislation is amended as intended, provisions of regulations 2 and 4 to 6 of these Regulations remake the amendments in Part 4 of those Regulations. Regulation 7 also revokes provisions of the Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 that may not have taken effect because the provisions purported to amend text in retained EU legislation that may not have existed due to the error in the commencement provision relating to Part 4 of the Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020. The revoked provisions have been remade in regulations 4 and 5.

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. Section 8 was amended by section 27 of the European Union (Withdrawal Agreement) Act 2020 (c.1), and paragraph 21 of Schedule 7 was amended by paragraph 53 of Schedule 5 to that Act.

[^f00002]: EUR 2011/543, to which there are amendments not relevant to these Regulations.

[^f00003]: EUR 2013/1308; relevant amending instruments are S.I. 2019/821, 828, 831, 2020/1637, 2021/279.

[^f00004]: Article 188 was amended by S.I. 2019/828.

[^f00005]: EUR 2017/891, amended by S.I. 2020/1446. Under Article 138 of the withdrawal agreement (as defined in s39(1) of the European Union (Withdrawal Agreement) Act 2020 (c. 1)) and s7A of the European Union (Withdrawal) Act 2018 (c. 16) certain common organisation of the markets measures committed under the multiannual financial framework 2014-20 and previous financial perspectives continue to be governed by directly applicable EU law.

[^f00006]: Article 2 was amended by S.I. 2020/1446.

[^f00007]: Article 14 was amended by S.I. 2020/1446.

[^f00008]: A definition of “existing non-UK member” is inserted in Article 2(r) by regulation 4(2)(c).

[^f00009]: Article 16 was amended by S.I. 2020/1446.

[^f00010]: Article 23 was amended by S.I. 2020/1446.

[^f00011]: Article 31 was amended by S.I. 2020/1446.

[^f00012]: Article 36(6) was inserted by S.I. 2020/1446.

[^f00013]: 2000 c. 8.

[^f00014]: Article 59(1) was amended by S.I. 2020/1446.

[^f00015]: Article 60(1) was amended by S.I. 2020/1446.

[^f00016]: 1998 c. 11.

[^f00017]: Part A of Annex V was amended by S.I. 2020/1446.

[^f00018]: Annex VIII was inserted by S.I. 2020/1446.

[^f00019]: EUR 2017/892, amended by S.I. 2020/1446. Under Article 138 of the withdrawal agreement (as defined in s39(1) of the European Union (Withdrawal Agreement) Act 2020 (c. 1)) and s7A of the European Union (Withdrawal) Act 2018 (c. 16) certain common organisation of the markets measures committed under the multiannual financial framework 2014-20 and previous financial perspectives continue to be governed by directly applicable EU law.

[^f00020]: Article 9(6) was amended by S.I. 2020/1446.

[^f00021]: Article 21 was amended by S.I. 2020/1446.

[^f00022]: Article 34 was amended by S.I. 2020/1446.

[^f00023]: Annex II was amended by S.I. 2020/1446.

[^f00024]: EUR 2017/1185.

[^f00025]: S.I. 2020/1445.

[^f00026]: S.I. 2020/1446.

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