.CONFERENCE. ON ACCESSION Brussels, 25 November 2002 TO THE EUROPEAN UNION -POLAND-
CONF-PL 96/02
Document provided by Poland Subject: Additional information Chapter 7 - Agriculture
20915/02 CONF-PL 96/02 1 EN
Warsaw, 20 November 2002
POLAND'S REPLY
TO THE COMMMON POSITION OF THE EUROPEAN UNION
OF 31 OCTOBER 2002 (CONF-PL 81/02)
Chapter 7: Agriculture
1. The negotiating position taken by Poland, similarly to the position of the European Union, is subject to the negotiating principles adopted in the course of the Conference on the Accession of Poland, and in particular to the two following rules:
Any and all opinions declared by either Party on a given negotiating chapter shall in no way be deemed to reflect the position which that Party may in the future take on the other chapters;
Any and all Agreements reached during the course of the negotiations on individual chapters, as examined in succession, may not be deemed to be those that are final until the overall agreement has been reached.
2. Poland undertakes the efforts aiming at the creation, as soon as possible, and in any case prior to the Accession, of the conditions enabling the full adoption of the acquis communautaire in the area ofagriculture. Such efforts include, inter alia, the creation of an appropriate administrative infrastructure, which is to serve as the basis for the implementation of the Common Agricultural Policy (CAP) on the individual agricultural markets and structural policy in agriculture and rural areas. Poland attaches great significance to the achievement of full compliance with the acquis in the area of food safety and consumer protection, which will be ensured by the appropriate administrative structures being currently created and appropriate procedures being currently laid down. Poland wishes to inform, that by 31 December 2003 it will complete the process of the implementation of the regulations and institutional arrangements enabling the application of all the instruments of the CAP in Poland, as of the day of the Accession.
3. The readiness to adopt, by the day of the Accession, all the regulations concerning common organisation of agricultural markets, as declared by the Government of the Republic of Poland, is based on the assumption that Polish agriculture will be guaranteed full access to all the instruments available under the CAP, including directs payments. This approach is based on the principle of equal rights and obligations, which in turn forms the basis of the negotiating positions adopted by Poland.
4. Direct payments constitute that element of the acquis, which is directly linked with the volume of the production limits and the control of supply (e.g. the set-aside of agricultural land). Therefore, such payments are of great importance for the maintenance of the conditions of competition and proper functioning of many important sectors of the Polish agriculture, such as, for example, cereals, oilseeds, and beef sector, and in the near future their application is bound to have appreciable effect on the situation in the milk sector.
20915/02 CONF-PL 96/02 2 EN 5. Cohesion of the CAP is ensured by the complex nature of its instruments. The exclusion or limitation of any instrument thereof, and in particular of the system of direct payments, which guarantees equal conditions of competition on the Single Market, would deprive the CAP this very cohesion.
6. The full coverage of the agricultural sector in Poland by the CAP and the inclusion of Poland into the Single Market are both of vital importance for the process of the negotiations and the situation after the Accession of Poland to the European Union. Therefore, Poland fully supports the opinion delivered by the European Union (paragraph vi of CONF- PL 81/02) according to which: "transitional measures are exceptional and limited in the time-frame and scope of their application, and accompanied by a clearly defined schedule for the implementation of the acquis". The very same principles ought to apply to direct payments.
7. Poland reasserts its view, that direct payments constitute significant element of the acquis and are of fundamental importance for the ensuring of equal conditions of competition. The guarantee of such conditions forms the basis of the common organisation of agricultural markets and the Single Market (Articles 34 and art. 87 of the EC Treaty). The differentiation within the Community of the support proposed for the agricultural sector (i.e. the phasing-in) does not satisfy that condition. Direct payments have lost their original character of payments that where to compensate the drops in prices and have become a permanent, agricultural production and income support measure. The data presented in the previous negotiating positions indicates that in· Poland, prices of basic agricultural products, such as cereals, pigmeat, or poultrymeat, are higher than those in the EU. Similar, or higher prices on the Polish market, as compared to the prices in the EU, result, in conjunction with the high cost of the adjustment to the acquis, in the income situation of producers of such products not being improved following the Accession.
8. The position, which will be adopted by Poland on the instruments of the quantitative reduction in production, such as production quota limits, ceilings for premium entitlements, base areas, or reference yields, will depend on the extent to which the Community support for the Polish agriculture will ensure equal conditions of competition for the Polish farmers. Poland underlines the existence of direct link between the supply control and direct income support.
9. Poland reasserts its position that the production quota limits to be fixed ought to take into account the natural potential for the agricultural production, which is environmentally friendly, and the need to ensure the stable sources of income for agricultural population. Poland considers that the production quota limits should not be fixed, generally, on the bases of the production levels attained during the period 1995 - 1999. During that period, the agricultural production in Poland has seen regress associated with the economic transformation and restructuring of agriculture. The transformation has also caused a very serious deterioration in the relative prices in agriculture. Furthermore, considerable volume of imports into Poland of subsidised agri-food products has had the negative impact and caused the fall in production levels attained, as it has impaired competitive capacity of the Polish products. Consequently, the ability of Polish farmers to increase their production has been stifled. Additionally, the reduction in the agricultural production in Poland during that period has been caused by the distortions on the main export markets (i.e. East European markets) and the placement on these markets of the highly subsidised agri-food products, and even products provided in the form of aid, cost-free. Unfavourable weather conditions, such as extreme droughts and floods, have also had material adverse effect on the production levels attained during the period 1995 - 1999. Thus, quantitative reference levels based on the data for the years 1995 - 1999 are not at all representative for the Polish agriculture.
20915/02 CONF-PL 96/02 3 EN 10. Poland wishes to bring attention to the specific conditions of the production in Poland of, inter alia, milk, potato starch, sugar, isoglucose, and dried fodder. In the case of the production of milk, considerable quantities of milk produced are consumed, unlike in the Member Sates, directly by households of the producers therefore they are not placed on the market. Consequently, such quantities are not covered by the quota rules, as applied in the EU. Poland considers that the on-going structural changes in the Polish agriculture ought to find their reflection in the volumes of the production quota limits, to be fixed for Poland.
11. The EU Position (CONF-PL 81/02) on the gradual introduction of full direct payments (phasing-in), which assumes differentiated support for the agricultural sector in the enlarged Community, infringes the principle of equal conditions of competition. This is so, in particular, for the sectors such as cereals, rape-seeds, tobacco, and hops, in the case of which conditions of competition will have to be equalised. In turn, this occasions the necessity for Poland to request the implementation, during transitional, post-accession period, of measures aiming at the mitigation of the effects of the unequal conditions of competition. Such measures shall take into account:
I. The more effective use of the instruments available under the CAP, by the change in the initial proportions between the I and II Pillar of the CAP offered to Poland;
11. The use, during the transitional, post-accession period, of instruments offering selective protection of the Polish market in some of the agri-food products imported from the EU, should the first solution not provide for the sufficient remedy of the effects of distortion of competition.
The scope of application of the measures proposed, in terms of the products to be covered and the time-frame to be laid down for their application will depend on the decisions reached in the course of the negotiations, i.e. the decisions on the initial level fixed for the direct payments and the time-frame laid down for reaching their full application.
Poland considers that the possible transitional period for achieving full direct payments should be limited as close as possible to the current financial perspective.
Poland stresses that it considers reaching, in the course of the negotiations, an agreement concerning conditions for the immediate and effective use of the structural funds for the development of agricultural areas to be its priority.
The capacity for the allocation of additional moneys from the national Budged, with a view to raising the levels of direct payments will be extremely poor. Such capacity will be directly linked to the amount of the Polish contribution to the EU Budget, as payable during the first years of its membership.
12. Having analysed the economic situation of agricultural holdings during the pre-accession period, and the forecast concerning their situation after the Accession, Poland considers the application of additional measures aiming at the stabilisation of their economic situation via the maintenance of the V AT rates currently applicable in the agricultural sector and the exemption of eco-components for fuels from excise tax necessary. Poland submits relevant requests within the framework of the negotiations concerning Chapter 10 - Taxes.
20915/02 CONF-PL 96/02 4 EN 13. Poland decided to adopt the simplified system of direct payments. Poland considers the application, under the Rural Development Plan (RDP), of the measure aiming at the softening of the negative impact of the adoption of the simplified system on the select production holdings, conditions of operation of which have deteriorated due to the adoption of the simplified system, necessary during the transitional period following the Accession. The measure proposed aims at granting production holdings a compensation for direct payments lower than those, which would have been granted to them under the standard system.
14. Poland reserves itself the right to re-examine at a later stage of negotiations any and all issues, including those which are not explicitly raised in the present position, in the light of additional information, which may be supplied by the EU, as well as the evolution of the acquis. This clause applies also to these aspects of the Common Agricultural Policy, which might become the subject of amendments introduced at the later date.
15. Unless otherwise provided in this position, Poland reasserts its previous negotiating position (CONF-PL 79/02). The present position presents in Annexes I (the List of the Programmes to be implemented after the Accession) and II (the List of the Programmes to be implemented during the transitional, post-accession period) the list of the State aids to be granted after the Accession. Poland decided to choose the simplified system of direct payments. The present paper contains several supplementations to the arguments put forward in connection with the previous requests. In the present paper, Poland considers also the new proposals contained in the Common Position of the EU (CONF-PL 81/02). In particular, Poland examines the latest proposal concerning reduced direct payments, production quota limits, and other measures aiming at the regulation of the production for the individual markets, which would be applicable during the transitional, post-accession period, as well as the one concerning support for farmers restructuring their holdings with a view to comply with certain EU requirements. Furthermore, Poland clarifies its proposal concerning more effective application of the measures available under the CAP, by the change in the initial proportions between the I and II Pillars of the CAP. In addition, Poland reasserts its position concerning measures aiming at rural development, proposed by EU, such as, for example, the aid for semi-subsistence farms undergoing restructuring. Due to the need to bring closer the date for the commencement of the use of the funds available under the II Pillar of the CAP, Poland requests the introduction of certain procedural changes in respect of the RDP. The changes requested concern the date for submission to the Commission of the draft of the Plan, the time-frame for the negotiations concerning provisions thereof, the possibility of partial acceptance of the Plan by the Commission, and the application of advance payments for structural measures to be implemented under the Plan.
20915/02 CONF-PL 96/02 5 EN HORIZONTAL ISSUES
A.2. Adaptation ofthe Act ofAccession following changes to EU agricultural legislation
Poland suggests that the last sentence should be supplemented to read as follows:
,Furthermore, it should also be foreseen that such adaptations, approved also by Poland according to the Polish internal procedure, may be made already before accession ".
4. Import safeguard clause (or agricultural and food products
Poland maintains its position (CONF-PL 43/02 and CONF-PL 79/02) on the incorporation into the Act of Accession of entries permitting the application of safeguard measures during a transition period in the imports of agricultural produce from other Member States whenever such imports would cause or threaten to cause serious market distortions.
Poland suggests to establish a transition period equal to the transition period for the implementation of full direct payments, in which the safeguard clause could be applied.
Poland requests that the list of goods indicated in its position Ref. No CONF-PL 79/02, covered by the provisions on the monitoring of imports and an option of applying safeguard measures, is supplemented with spirit and spirit products (CN 2207 and 2208), in relation to the modification of Poland's position on the Issue No 39.
Grounds for requesting the safeguard clause are provided by the arrangement incorporated into the Acts of Accession of Austria, Finland and Sweden under Articles 147 and 149 as well as Declaration No 14.
A danger of serious market distortions in some agricultural markets after Poland's accession to the EU results from: a) the fact that prices of basic agricultural products such as e.g. cereals, pork meat, poultry meat, rapeseed are higher in Poland than in EU (statistical data on this issue were passed in the Poland's position Ref. Nos. CONF-PL 43/02 and CONF-PL 79/02),
In Poland producer prices of soft wheat and barley are higher than in EU, which is shown by the data in table presented below. In the 1995-2001 period, only in 1995 and 1999 EU wheat prices were higher than Polish prices. With regard to barley EU prices were higher only in 1995, 1998 and 1999.
In Poland, intervention prices of wheat are also higher than in EU. In 1995-2002, only in 1995 and 1999 EU prices were higher than Polish prices.
20915/02 CONF-PL 96/02 6 EN Comf2.arison o{_Producer Cereals Prices in EU and Poland In 1995-2001 ECU;EUR/t 1995 1996 1997 1998 1999 2000 2001 Soft wheat EU (average) 139.4 140.1 128.3 115.8 116.7 118.2 120.4 Poland 110.4 169.3 137.1 119.3 101.7 126.7 129.4 Barley EU (average) 131.4 129.2 119.9 107.3 111.3 107.8 NIA Poland 100.6 139.6 121.8 95.9 90.9 124.9 132.3 Note: Polish prices were converted into ECUIEUR according to annual average exchange rate ofNBP. Source: Calculations based on Agriculture in the European Union. Statistical and Economic Information and Polish Central Statistical Office. b) the fact that Poland is not fully covered by the provisions of Articles 87 and 34 of the Treaty when mutual trade has been fully liberalised, c) considerable reduction of customs protection due to the adoption of Common Customs Tariff for the imports of many agricultural products from third countries. This applies, among others, to such products as tobacco and tobacco products, malt, hops extract, rapeseed, starch and spirit products (the specification of the Polish customs protection levels and those under the Common Customs Tariff in the imports of selected agricultural and processed agricultural products is attached in Table below).
To recapitulate Poland applies for adding to paragraphs on the safeguard clause the provisions on current monitoring of importing into Poland from other Member States of goods the production of which is supported in the EU by direct payments and which are crucial for profitability of farms in Poland and goods the production of which is driven primarily by the profitability of cereals cultivation. These goods include: cereals (CN 1001 90, 1002 00, 1003 00 90, 1004 00, 1005 90), tobacco (CN 2401, 2402, 2403), rapeseed (CN 1205), pork meat (CN 0203), milk (CN 0401, 0402), poultry meat (CN 0207), hops (CN 1210, 1302 13 00), flour (CN 1101, 1102), malt (CN 1107), starch (CN 1108), spirit and spirit products (CN 2207, 2208). Imports would be monitored through import concessions. In the event of excessive imports leading to or threatening to cause serious market distortions, pursuant to an application filed by Poland, the European Commission could take a decision on the application of safeguard measures such as the limitation or holding back the issuance of import concessions. A possible limitation or holding back the issuance of import concessions could be performed only if the total imports have exceeded a certain import volume determined on the basis of the average imports in the last three years.
Poland emphasises that the suggested monitoring system, with an option to apply safeguard measures, was ready for effective implementation starting from 1st January 1995, in the relations between Norway and other Member States under the Commission Regulation No 2754/94 and Regulation of the Minister of Agriculture of the Kingdom of Norway dated 22nd November 1994. The monitoring of agricultural produce imports, with an option to apply safeguard measures, was also laid down in the Act on the Administration of Foreign Trade and Monitoring and Safeguard Measures in the Republic of Finland, dated 29th December 1994 and under the Decision of the Minister of Agriculture and Forest Economy of the Republic of Finland on the surveillance of imports of some agricultural products, dated 31st December 1994.
Poland emphasises that the suggested monitoring system, with an option to apply safeguard measures does not have to imply the maintaining of control on the borders, so it does not violate the rules of the Single Market. A lack of inconsistency with the Single Market rules is confirmed by the Finish legislation, scheduled for implementation Commission Regulation on establishing a system in trade with Norway and EU proposal of introducing general safeguard clause presented in the Common Position Ref. No CONF-PL 93/02.
20915/02 CONF-PL 96/02 7 EN Comparison o"r the Polish customs tariff levels with those under the Common Customs Tariff for selected products essential for profitability o(farm holdings in Poland CN code Description Polish EU MFN rate preferential to MFNrate 0603 Cut flowers 35% to 0,8 O%to 10% Euro/pcs. 0701 Potato 15% to 50% 0% to 13.4% ex0810 Berry fruits - fresh 20%to40% O%to 9.6% ex0811 Bef!Y fruits - frozen without sugar 25%to 30% 0% to 14.4% 1107 Malt 0,16 Eurolkg to 0% to 177 Euro/t 6,4% +max 0.18 Euro/kg 1108 13 00 Potato starch 30% min 0.29 0% to 166 Euro/t Euro/kg 1205 Rape and colza seeds 15% to 27% 0% 1302 13 00 Hops extract 20Euro/kg O%to 3.2% 1514 Rapeseed oil 86% O%to 9.6% 2203 Beer 30% min 0.25 0% Euro/hl 2208 Alcoholic beverages 268% min 6 Euro 0% (except rum %/hl 0.6 Euro %/hl) 2401 Non-processed tobacco 105% mm 2,17 0% to 18.4% min Euro!kg 22 Euro/1 OOkg, max 24 EurollOOkg 2402 Cigarettes, cigars and cigarillos 173% mm 19 0% to 57.6%/1000 Euro/1 000 pes. pes 2403 Other processed tobacco 230% O%to 74.9% 5301 Flax 15% 0% 5. Oualitv Policy (Council Regulation (EEC) No 2081/92 on the protection of geographical indications and designations of origin and Council Regulation (EEC) No 2082192 on certificates ofspecial character for agricultural products and foodstuffs)
Poland submits additional explanations concerning the implementation of acquis communitaire in the area of registration system for geographical indications.
By virtue of Law on the industrial property rights the national system for registration of geographical indications and names of origin was implemented for all product types, with an option to file protest against registration and cancellation of registration entry.
Upon Poland joining the EU the registration system in question will be operated alternatively with the EU system, with the entitled persons enjoying freedom to choose between national protection and protection in the EU territory.
20915/02 CONF-PL 96/02 8 EN After the accession Poland intends to retain the provisions of the Law on the industrial property rights pertaining to the protection of geographical indications, with a view to both wider than EU scope of goods covered by protection (it also covers goods other than agricultural produce, foodstuffs, wines and spirit drinks) and possible needs of business entities that could be interested in the acquisition of rights to the protection of product labelling against imitation only in domestic market. Under similar principles the EU trademark protection system is operated under which the trademarks may be protected under national system (in the territory of one country) or under the EU system as EU trademarks.
It can be inferred from Art. 17(3) of the Regulation 2081/92/EC that national systems for the protection of geographical indications that are not subject to protection (were not registered) are allowed. Under such principle the Polish regulation would provide for the situation that after the accession none of the geographical indications protected by the EU system may not be protected in parallel under the national legislation.
If such a protection were established earlier then it would be deleted the moment the protection rights are obtained at the Community level. In this way the protection of marking registered under the provision of Regulation No 2081/92/EC would be subject completely and exclusively to the provisions laid down in this Regulation and none of the separate domestic provisions would be applied to such protection. The EU position that such national system would be inconsistent with acquis communitaire is, in the light of the above, vague and requires more comprehensive explanations from EU.
At the same time it should be emphasised that the moment Poland has jointed the European Union Poland will also use the EU system, while the Patent Office of the Republic of Poland will accept applications for international registration and will pass them for making an entry into the European Commission register under the procedure laid down in the Regulation No 2081/92/EC.
Given the above the Polish side believes that there are no grounds to raise concerns that such a system could be incompatible with the Community system.
Additionally Poland assumes that the moment Poland joins the EU the protection of all geographical indications and names of origin, registered at the Community level will extend to cover the territory of Poland effective from the accession date. Such marks, effective from accession date, will be considered during processing of new applications for trademarks and geographical indications by the Patent Office of the Republic of Poland.
At the same time Poland emphasises that the protection of such indications may not have any impact on the validity of rights acquired in bona fide in Poland prior to the accession date, including also rights to acquire protection in Poland based on the applications made in bona fide prior to the accession date. Poland expects the EU to confirm this position.
Poland also passes additional information on the control system of agri-food products protected by geographical indications.
20915/02 CONF-PL 96/02 9 EN 1. Confrrmation of data contained in the registration application
Data contained in the application filed with the Patent Office of the Republic of Poland pertaining to the product specification referred to in Art. 4, para 2 ·of the Regulation No 2081/92/WE and in Art. 6, para 2 of the Regulation No 2082/92/EC will be confirmed by the trade quality certificate issued by the Agricultural and Food Quality Inspection. The mode and principles of issuing trade quality certificates are laid down by the Law on the commercial quality of agricultural and food products.
2. Post-registration Inspection
With reference to the statements contained in CONF-PL-79/02 pertaining to post-registration inspection Poland draws attention that it is necessary to delete in this document the information on the inspection at the exporter's carried out by the Voivodship Agricultural and Food Quality Inspectorates.
8a. Stocks ofagricultural products in new Member States
Poland accepts the EU position on the take-over on the day of accession of the intervention stocks accumulated under the state intervention policy according to the valuation of intervention stocks under Art. 8 ofthe Commission Regulation No 1883/78.
In parallel Poland maintains its request for information to be provided by EU on envisaged procedure for determining normal carry-over stocks. 9, 9a. State aids Pursuant to the European Union position presented in the document Re£ No CONF-PL 81/02 Poland submits detailed information concerning aid currently applied and aid it intends to provide continuously after the accession date (Annex 1), at the levels defined each year in a budget bill for a given year.
In relation to the expected launch of support mechanisms for the agricultural sector after the accession under Rural Development Plan and sectoral operational programme and also in relation to the reduction of interest rates, Poland plans to phase out some forms of aid currently applied. Specific information on such aid forms are defined in Annex No 2.
At the same time Poland informs that the application for maintaining currently applied V AT tax rates in agricultural sector and application for total or partial exemption from excise tax of biofuel and biocomponents will be submitted in the amendment to the negotiation position within the area of Taxes.
20915/02 CONF-PL 96/02 10 EN ------
C COMMON MARKET ORGANISATIONS
1 Oa. Direct payments
Having regard to:
• Provisions of Article 87 and 34 of the Treaty
• EU Common Position in point vi CONF-PL 81/02, providing for exceptional char:acter of transitional periods, and stating that these may not infringe the EU rules and policies or rules of competition
And having regard to the following facts:
• Higher level of prices on the Polish market and intervention prices in Poland than those applicable in the EU in relation to some products essential for farms' income, and particularly to cereals
• Higher level of Polish market customs protection than that under the Common Customs Tariff in relation to the number of essential products, such as, among the others, rape, hops, tobacco (the comparison of the Polish and EU customs protection level for the chosen products is presented with problem no. 4)
Poland applies to cover Polish agriculture with the full-scale public aid, resulting from the Common Agricultural Policy rules.
Where, due to limitations of the present EU budget, it would be necessary to apply phase-in approach for direct payments for the Polish agricultural sector during transitional period, Poland requests that transitional period for achieving full direct payments should be limited as close as possible to the current financial perspective. At the same time, Poland applies for admission to employ the following instruments, which would enable Polish agriculture to operate on the Single Market during the above mentioned transitional period:
I. More effective utilization of funds through the correction of proportions within the framework of the CAP first and second pillar.
II. Transitional application of selective market protection for the Polish import of some agricultural and processed articles from the EU, in case where the first solution can not appropriately to alleviate unequal conditions of competition.
Possibilities of supplementary funding of direct payments from the national budget shall be very limited and shall depend directly on the amount of Polish contribution to the EU budget.
Ad I
Proposal on how to utilize make use of the total financial offer under Pillar I and II of CAP
In connection with the EU Common Position on agriculture (CONF-PL 81102) of31 October 2002, providing for gradual phasing in of direct payments for Polish agricultural producers, Poland applies for a change in the proportion of utilization of funds under CAP pillar I and II to as one of the methods to alleviate unequal conditions of competition. The proposed solution is in line with the stipulations of Agenda 2000.
20915/02 CONF-PL 96/02 11 EN The scope, scale and ·time of application of the proposed arrangement will depend on the final negotiation decisions, i.e. the initial level of direct payments and the period of phasing in to reach the full amount. Poland applies to allocate the amount of euro 1100 million, presently planned for implementation of the pillar II measures in 2004 - 2006, for increasing of the initial level of direct payments.
The Polish side proposal is of a transitional character and will concern first years after accession only. It maintains a higher share of rural development funds than in the EU-15 in the total amount envisaged for CAP.
The Polish side attaches great significance to rural development instruments and appreciates their importance for strategic objectives facing Polish agriculture. The Polish side proposal will not undermine the possibility of achieving the objectives of rural development policy pursed on the basis of pillar II funds.
Within first years of accession it will be particularly necessary for Polish agricultural holdings to incur high costs of adaptation to the Single Market requirements. Adaptation processes, however, might be undermined due to unequal competition conditions on the Single Market. In such situation, the priority for the Polish side is the strive towards full and effective utilization of all the funds offered by the EU for agriculture and rural development within the budgetary framework 2004- 2006.
The hitherto EU experience indicates that, as opposed to pillar I, the effective utilisation of pillar II funds faces many difficulties resulting from, inter alia: (i) complicated implementation procedures, (ii) schedules of programmes co-ordination, (iii) time-lag in the effective payment of funds under certain instruments, in particular agri-environmerital and afforestation measures (from the time of approving rural development plans). Candidate countries' experience with regard to preparation and implementation of SAPARD eo-financed, similarly as pillar II measures, by EAGGF Guarantee Section confirms fears of the fast and effective absorption of these financial resources.
According to the current EU proposal for 2004-2006, pillar II funds in Poland would account for more than 50% of all funds allocated for agriculture, whereas they account for only 10% in EU-15. The Polish side suggests a correction and reduction of this proportion to ea 30%, in order to arrive at more efficient use of these funds to support agriculture, especially within the first two years following accession.
Adii
Maintenance ofselective protection ofthe market
In case, the previous solution can not ensure satisfactory mitigation of unequal conditions of competition resulting from phasing-in of direct payments, Poland shall apply for transitional maintenance of selective protection of the market in Polish import of some agricultural and processed agricultural products from the EU.
Maintenance of protection of the market may take place pursuant to the provisions of Article 38 of the Treaty, which provides for protection of the market in exchange between the Member States in case where rules affecting competitive position of a product in relation to similar products in other Member States exist.
20915/02 CONF-PL 96/02 12 EN Maintenance of protection of the market would be applied only to the most sensitive products of significant importance for incomes of agricultural holdings, which are covered by direct payments or those produced on the basis of such products, including inter alia: cereals, cereal preparations, rapeseed, rapeseed oil, hops, tobacco and tobacco products.
Gradual liberalisation of trade between Poland and other Member States would take place within the framework of quotas increasing on annual basis, where the level thereof would be fixed on the basis of the quotas applicable in import from the EU on the day before accession or on the basis of average imports in the last years. Apart from the quota, the applicable rates would be those valid for import from the EU on the day before accession or rates resulting from adapting of the Polish external tariff to the Common Customs Tariff, provided they are lower than rates applicable for import from the EU on the day of accession.
Poland is aware of many negative effects resulting from maintenance of selective market protection and its inconsistency- similarly to partial support for farmers from new Member States within CAP - with the Single Market mechanisms.
Simplified system ofdirect payments
Foil owing the fact that decision on the choice between standard and simplified system:
affects positions in relation to other negotiation problems;
entails consequences for the state budget (distribution of costs of IACS system development over a period of time and reduction of IACS system operation costs within the period of the system validity shall take place in simplified system);
is important for operation of agricultural holdings (decoupling the support from production decisions);
is important for the operators involved in system development (contractors to individual components of the IACS system);
is important for the level of absorption of the EU funds;
it was recognised that the decision on the system should be taken before the end of the negotiation process.
Poland decided in favour of the simplified system.
Poland would like to cover agricultural holdings of 1 ha and more of agricultural lands with the system. Within the period of application of the simplified IACS system, the land plot identification system (LPIS) shall be based on the alphanumeric part of land and building register and digital maps.
Poland requests possibilities for the use of the entire financial envelope in the year in question. Where the amount of direct payments approved on the basis of payment applications under simplified system is lower than the annual financial envelope for Poland, Poland should be authorised to proportionally increase the rate of payment for 1 ha of agricultural land, to the amount enabling it to fully use the financial envelope.
20915/02 CONF-PL 96/02 13 EN On the basis of applications submitted before 15 of May on direct income suport, the unused amount under the national envelope would be calculated and on such basis rate of payment per 1 ha would be increased for those farmers, who submitted applications approved for payment. Such possibility exists as direct subsidy payments are effected after 15 of October.
In the end of the transitional period, Poland shall implement system of direct payments in the form applicable in that period in the EU.
ARABLE CROPS
CEREALS, OILSEEDS AND HIGH PROTEIN CROPS
Common Market Organisation of cereals (Council Regulation (EEC) No 1766192)
11. Cereals in storage bought-in under Poland's own intervention policy
Poland accept EU position in relation to this point.
12a. Minimum intervention batch
Taking account of the difficulties in application of the EU minimum intervention batch of cereals, caused by unsatisfactory level of grain producer organisations, Poland requests to introduce the three years' adaptation period, where minimum part for Poland shall amount to 40 tonnes.
Pursuant to Article 1 of the Commission Regulation 824/2000, each holder of homogenous batch of no less than 80 tonnes of common wheat, rye, barley, maize or sorghum, or 10 toms of durum wheat, harvested in the Community, is entitled to offer such batch to intervention agency.
Adoption of the solution proposed by Poland shall prevent difficulties to gather the minimum homogenous batch in some regions of the country with dispersed agricultural structure. It shall allow for sale of cereals for intervention and stimulate stabilisation on cereal market and dependent markets.
At the same time, Poland stresses that, during that period, regions with dispersed agricultural structure shall be assisted by structural measures aimed at improving structure of the farms involved in cereal production.
Area payment scheme for arable crops (Council Regulation (EC) No 125111999) 13. Determination ofthe base area ofarable crops (Cereals, oilseeds,protein crops) under Article 2(2) and Annex 11 of Council Regulation (EC) No 125111999 of the average cereal yield provided for under Article 3(5) of Council Regulation (BC) No 125111999
Determination ofbase area
Poland maintains its request to establish base area on the basis of the data for the years 1989, 1990, 1991. In the previous negotiation positions, both in the EU Common Position and in Polish negotiation position, fodder maize has not been considered in base area calculations, despite the fact that the date in its production is registered and presented in the Central Statistical Office (CSO) and is transferred to EUROSTAT. Available data cover the period from 1986 to 2000. The fact that the EU took account of the area of fodder maize crops in calculating base area justifies taking account of the area of maize crops in calculating the base area for Poland. 20915/02 CONF-PL 96/02 14 EN GSO data shows that in the years 1989-1991, the average area of fodder maize was 302.3 thousand ha. Base area proposed by Poland, after taking account of area of fodder maize crops shall amount to 9 565.3 thousand ha.
Seed and fodder maize area and yields Years Seed maize Area of fodder maize Area (1000 ha) Yield (tlha) (1000 ha)
1986 22 5,07 305 1987 32 4,6 332 1988 40 5,11 317 1989 51 4,78 331 1990 59 4,91 325 1991 70 4,85 251 1992 56 3,67 185 1993 55 5,32 178 1994 50 3,75 151 1995 48 4,96 133 1996 69 5,05 154 1997 77 5,4 148 1998 85 5,83 145 1999 104 5,75 146 2000 152 6,06 162 2001 224 6,07 179 Source: CSO Determination of reference yield
Poland maintains its position on adoption of reference yield of cereals as average calculated on the basis of the reference period 1986/87 -1990/91, increased by 15% i.e. 3.66tlha.
Detailed justification was included in the Polish response to the EU Common Position of 11.10.2002 (CONF-PL 79/02). Due to the need of including the area of fodder maize to the base area, Poland takes account of the area of fodder maize and yields of seed maize, in the reference yield calculation.
Years Cereal yields Cereal yields with fodder maize (tons/ha) (tons/ha) 1986/87 3,05 3,11 1987/88 3,12 3,17 1988/89 2,92 2,98 1989/90 3,24 3,28 1990/91 3,29 3,34 Avera_ge** 3,14 3,18 **Average is calculated for the five years' period with no account taken of the years of the highest and lowest yields in the basis of the CSO data. It is noteworthy that in recent years, the share of maize being the high-yield plant has increased within the structure of crops and yields.
20915/02 CONF-PL 96/02 15 EN 14. Inclusion o(beans (or dry grain into the list o(high-protein crops (Annex No 1 to the Council Regulation No 1251/99)
Poland withdraws the proposition to include beans for dry grain into the list of high-protein crops (Annex No 1 to the Council Regulation No 1251/99).
15A. Determination of the maximum guaranteed area (or grain legumes (Article 3 of Council Regulation (BC) No 1577196)
Poland maintains its position on determination of the maximum guaranteed area for grain legumes in amount of 17.2 thousand ha (for vetch), calculated as the average area from 1989-1991 reference period. (Detailed justification has been included in CONF-PL 79/02).
NON-FOOD (INDUSTRIAL SET-ASIDE), PROCESSED CEREALS, POTATO STARCH, CEREAL SUBSTITUTES (MANIOC ETC.), ANIMAL COMPOUNDS, RICE AND DRIED FODDER
16. Production quota ofpotato starch (Council Regulation (EC) No 1868194 amended hv Council Regulation (BC) No 1252/1999)
Poland maintains its position presented in Polish Negotiation Position CONF-PL 43/02 and CONF PL 79/02, and other documents submitted under Accession Conference, on determining the potato starch production quota for Poland in amount of242 thousand tonnes. 17. Dried fodder (Council Regulation (BC) No 603195) Poland changes its Position Paper in reference to the determination of the volume of the production quota of dried fodder and applies to establish the guaranteed dried fodder production quota in the amount of 30,000 tonnes. The EU proposition to grant guaranteed dried fodder production quota of 13 538 tonnes to Poland was calculated in the basis of the average dried fodder production in the years 1998-1999. Adoption those years as the reference period for dried fodder production is extremely disadvantageous for Poland. Average dried fodder production for years from 1995- Difference Difference 1999 period in tonnes (tonnes) (tonnes) 1998-1999 between the between the 1995-1999 1996-1999 1997- (period proposed average average 1999 by the EU) production of production of dried fodder in: dried fodder in 1997-1999 1998-1999 and 1998-1999 and in 1997 14.969,66 15.102,21 16.855,94 13.536,69 3.319,25 9.957,76 Dried fodder production in 1995-1999 (tonnes) 1995 11996 1997 11998 11999 14.439,50 19.841,00 23.494,45 114.860,31 112.213,06 In analysing the volumes presented in the above table, it has to be explained that the data from the years 1995-1996 are not representative for dried fodder production in the period from 1995 to 1999. In result of economical and political transformation that took place in Poland in the 1990's, part of establishments producing dried fodder were wound up. Following the above-mentioned facts, the data for the years 1995-1996 is incomplete.
20915/02 CONF-PL 96/02 16 EN The 1998-1999 period can not be adopted as representative either, as coincidence of the two unfavourable factors took place in that time - increase in prices of means of energy related to the so called Russian crisis and drought affecting the regions where green forage/dried fodder is produced. Therefore the most representative period for dried fodder production in 1995-1997 is 1997.
In 1997, the agri-climatic conditions in dried fodder production regions: the strip of north-eastern, northern, central and western Poland were favourable to green forage cultivation and the flood that took place in southern Poland did not affect these regions.
Considering the above-mentioned facts, the most adequate data to represent conditions of green forage and dried fodder production in Poland is that from 1997.
In addition, it has to be noted that the above mentioned table data does not include dried fodder production obtained from services provision (obtained from processing of rawmaterials supplied by recipient of dried fodder) . Therefore, the data from the most representative period (1997) should be increased by estimated amounts of dried fodder obtained from services provision.
17A. Establishment of zero-tariff quota (or imports of semi-milled rice and whollv milled rice, whether or not polished or glazed (Council Regulation (EC) No 3072195
Poland maintains its position (CONF-PL 43/02) on determination for Poland as of the day of accession, the duty-free quota for import oflong wholly or partly whitened rice (CN 1006 30) in the annual volume of 82 000 tonnes. The duty-free quota may be determined for imports from any third country or import from developing countries (DEV).
Polish application for determination of duty-free quota for Polish importers if rice is not inconsistent with acquis communautaire, having been based on a similar solution adopted for Spanish and Portuguese imports of maize and sorghum.
The above tariff quotas are published annually in the regulations laying down the Common Customs Tariff. Therefore, they for a part of acquis.
Apart from the justification presented within the position CONF-PL 43/02, the additional argument for determining the duty-free quota for rice is the fact that severe worsening of the Polish market access to export of rice from third countries shall have to be compensated, pursuant to Article XXIV of GATT, by additional concessions (additional duty reductions) for other products. It may mean that the increase of duties for rice shall be compensated by reduction of customs protection for import of goods produced in Poland, whereas their import may threaten the production in Poland.
19. Sugar quota and isoglucose quota (Council Regulation (EC) No 1260/2001, Articles 10-21)
1)SUGAR
Following the adoption of methodology for determining quotas A and B and reference period proposed by the EU, Poland changes its position presented in CONF-PL 45/02.
Poland applies for the total quota of 1 712 533 tonnes (quota A- 1 599 533 tonnes, quota B- 113 000 tonnes).
20915/02 CONF-PL 96/02 17 EN Poland informs that the volume of quota A, calculated according to the method proposed by the EU on the basis of the reference period 1995-1999 should amount to 1 599 533 tonnes (average consumption - 1 629 849 tonnes minus net export of sugar contained in processed articles - 30 316 tonnes equals- I 599 533 tonnes), not 1 590 533 tonnes proposed by the EU in its position CONF PL 8I/02.
Taking account of the above, Poland applies for granting of the quota A in amount of I 599 533 tonnes.
Poland applies for granting of the quota B in amount of average export covered by subsidies within the reference period, i.e. Il3 000 tonnes. The proposed volume of the quota B is significantly lower than, both Polish net export of sugar in the reference period and WTO subsidy limit to sugar export (with account taken oflimit to subsidy to export of sugar contained in incorporated products).
Poland applies for relinquishment of reduction coefficient for sugar quotas A and B (Article 10 of Council Regulation (EC) No 1260/2001) on account of the fact that within the period of I995- 2001, Poland never exceeded the WTO obligations related sugar export subsidies (in value and quantity), and the reason for their application is to prevent exceeding ofWTO limits.
PorIS h fioreil!n · tra dem . s112ar m processed artic . Ies * Specification 1995 1996 1997 1998 1999 A \er age Export (tonnes) 88923 107858 129281 99161 68264 98697 Import (tonnes) 49617 62828 67762 77927 83771 68381 Balance (tonnes) 39306 45030 61519 21234 -15508 30316 * calculated on the basis of GSO, CIHZ and calculating tables provided by the Commission after the technical treeting on 29.07.2002.
Sugar consumption in Poland after correcting l\ith the balance of foreign trade in sugar in nrocessed articles (tonnes}* Specification 1995 1996 1997 1998 1999 A \er age INational consumption {UU:S) 1638853 1533439 1725321 1610710 1640924 1629849 Balance offoreign trade in sugar 39306 45030 61519 21234 -15508 30316 In processed goods Corrected consumption 1599547 1488409 1663802 1589476 1656432 1599533 *calculated on the basiS ofGSO, CIHZ and calculating tables provided by the Commission after the technical meeting on 29.07.2002. 2) ISOGLUCOSE
Poland maintains its position (CONF-PL 45/02) on the volume of isoglucose quota of 62.2 thousand tonnes (quota A- 60 thousand tonnes, quota B- 2,2 thousand tonnes).
Poland confirms that in the years 1995-1999, it was the net importer of isoglucose. Import of isoglucose and isoglucose syrups in the reference period amounted in total to 2761.01 tonnes, and export 194.39 tonnes.
209I5/02 CONF-PL 96/02 18 EN Poland informs that in 2001, production of isoglucose (converted into 100 %of dry substance in 42% fructose solution) amounted to 27684.7 tonnes. Polish side presents attached data on foreign trade in the years 1995-2001 and on isoglucose balance in 2001. This data was also presented in the framework of Accession Conference. Moreover, Poland confirms that according to the manufacturer's information, annual production capacity resulting from irreversible investments, which took place in the years 1998-1999 amount to 120 thousand tonnes.
Poland applies for relinquishment of reduction coefficient for isoglucose quotas A and B. The justification for the above request is analogous to the one given in case of sugar.
20915/02 CONF-PL 96/02 19 EN Table 1 Polisch foreign trade in isoglucose syrups in the years 1995 - 2001
Product Export(US $) Export(tonnes) 1995 1996 1997 1998 1999 2000 2001 1995 1996 1997 1998 1999 Isoglucose 170230100 0,00 0,00 0,00 0,00 0,00 0,00 2,68 0,00 0,00 0,00 0,00 0,00 170240100 0,00 0,00 0,00 0,00 0,13 0,00 0,00 0,00 0,00 0,00 0,00 100,00 170260100 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 170290300 0,00 0,00 0,00 9,73 0,00 0,00 0,00 0,00 0,00 0,00 22,62 0,00 Total 0,00 0,00 0,00 9,73 0,13 0,00 2,68 0,00 0,00 0,00 22,62 100,00
Isoglucose syrup 2106 90 30 112,37 246,72 3,34 8,73 36,26 23,99 65,48 14,32 29,23 3,55 14,63 10,04
Produkt ~larachan lmport(US $) Import( tonnes) 1995 1996 1997 1998 1999 2000 2001 1995 1996 1997 1998 1999 lsoglucose 170230100 101,56 136,67 211,88 30,23 1,57 2,41 4,31 330,79 376,34 33,35 50,48 12,80 170240100 0,00 343,07 42,06 0,37 0,00 0,00 0,00 0,00 1300,11 285,83 1,50 0,00 170260100 0,00 15,20 7,19 0,00 20,57 3,97 560,42 0,00 46,74 5,61 0,00 23,17 170290300 0,00 0,00 0,06 0,94 28,45 15,83 39,18 0,00 0,00 0,00 0,02 21,34 Total 101,56 494,93 70,50 31,54 50,59 22,21 603,91 330,79 1723,19 324,79 52,00 45,79
lsoglucose syrup 2106 90 30 1,99 151,88 252,06 50,88 0,00 5,81 0,18 0,57 127,61 135,56 20,71 0,00
20915/02 CONF-PL 96/02 20 EN TABLE2
Isoglucose balance (t)
2001
1 Initial stock 1065,0
2 Production 27584,7
3 Total import 4126,4
4 Total supply (1 +2+3) 32776,1
5 Consumption 31663,0
6 Total export 48,1
7 End stock 1065,0
8 Total demand ( 5+6+ 7) ( = 4) 32776,1
Source: CSO data
Data for isoglucose exports and imports (point 3, 6) related to CN codes 17023010, 21069030, 17026010, 17029030, were calculated into 100% of dry substance in 42% of fructose solution.
In order to calculate the volume of isoglucose exports and imports converted into 100% dry substance in 42% of fructose solution, the following calculations were applied: export: 170230100 - 6.1 t (20%) 20/42 X 6.1 t = 2.9t 210690300 - 27.1 t (max to 70 %) 70/42 X 27.1 t = 45.2 t
total 48.1 t
import: 170230100 4.5 t (20 %) 20/42 X 4.5 t = 2.1 t 170260100 - 2264.2 t (75 %) 75/42 X 2264.2 t = 4043.2 t 170290300 68.1 t (50%) 50/42 X 68.1 t = 81.1t total 4126.4 t FffiRECROPS Issue 21a. National guaranteed quantity for textile flax and hemp The Polish side maintains its position on granting maximum guarantied quantity of long fibre of flax at 8800 tonnes and the maximum guaranteed quantity of short fibre of flax and hemp at 5500 tonnes (Detailed justification has been included in Poland's Reply to Common Position CONF-PL 43/02). The reference period proposed by the EU (1997-1999) would cause a substantial decrease in the production quota oflong fibre of flax for Poland (784 t) and short fibre of flax and hemp (452 t).
20915/02 CONF-PL 96/02 21 EN As compared to Poland's negotiation position on setting the maximum guaranteed quantity of long fibre of flax and the maximum guaranteed quantity of short fibre of flax and hemp, as average figures from 1989-1991 (CONF-PL 43/02), the EU position implies 11 and 12-times respectively decrease in production quotas of these fibres. Granting Poland such a low guaranteed quantity of flax and hemp fibres would result in the decrease of the area under flax and hemp and in consequence would lead to reduction in the production of fibres from these raw materials. Entry of Polish processors on the Single European Market would lead to increased costs of fibre and hemp production (a rise in prices of certain agricultural inputs, increased investment outlays on harmonisation with EU technical and quality standards). A lack of support for Polish processors of flax and hemp straw will significantly exacerbate the conditions of competition and may even result in the loss of their competitive capacity vis-a-vis UE processors who benefit from the support instrument on this market, i.e. payments to flax and hemp fibre processing. The biggest concentration of flax and hemp cultivation and processing can be found in eastern regions of Poland (Lublin voivodship ). The area under flax and hemp in this region represents ea 75% of the total area under these crops in Poland. Climatic conditions existing in the region, long-lasting traditions and farmers' skills related to cultivation techniques and first stage processing are favourable to flax cultivation in this region. There are about 7000 farmers in the Lublin region growing flax and hemp, associated inter alia in the Association of Domestic Producers of Natural Fibre, being at the same time processors of flax and hemp straw. In addition, processing of flax and hemp takes place in four plants located in south-western Poland employing 100 people. In total about 8,5 thousand people are employed in flax and hemp production and processing. Granting to Poland such a low production quota of long fibre of flax and short fibre of flax and hemp may result in undesirable social consequences such as the loss of a source of income by many farmers and processors in the Lublin region, which even at present is affected by a high unemployment rate.
FRUIT AND VEGETABLES
Fresh fruit and vegetables 23. Marketing standards for fruit and vegetables (Council Regulation (EC) No 2200196 as amended bv Council Regulation (BC) No. 269912000) Poland notes that implementing regulations for the Act of 21 December 2000 on of the Law on the commercial quality of agricultural and food products were published in September 2002 in Dziennik Ustaw (Official Journal), including the resolution of the Minister of Agriculture and Rural Development of 5 September 2002 on granting the status of the Main Commercial Quality Inspector (Dz.U. No 154, item 1280) and the resolution of the Minister of Agriculture and Rural Development of 5 September 2002 on detailed rules of the organization of the Agricultural and Food Quality Inspection (Dz.U. No 154, item 1279). The aforementioned regulations determine the organizational structure of the new Inspection both in the central and regional level.
20915/02 CONF-PL 96/02 22 EN The training shall accompany the implementation of the aforementioned law:
-of employees of the Agricultural and Food Quality Inspection in the field of the overall application of procedures during the conducted controls pursuant to provisions of the EU regulation 1148/2001,
- of producers in the field of the preparation of fruit and vegetables and their introduction into the trade according to commercial quality requirements.
The effective force of the Law of 21 December 2000 on 1 January 2003 shall facilitate an implementation and enforcement of commercial quality requirements of the European Union for fruit and vegetables as on the accession day.
24. Minimum requirements for the recognition of producer organizations (Council Regulation (BC) 2200196, amended bv Council Regulation (BC) No 2699/2000; Commission Regulation (BC) 412197).
Poland maintains its position presented in CONF-PL 45/02 on the request to accept the minimum requirements for fruit and vegetables producer groups to be recognised:
- the minimum number of members - 5,
the minimum marketable production value for the members of one producer organisation - EUR 100,000.
There is a possibility to increase the level of marketed production up to not more than Euro 200,000 in the field of minimum requirements foraproval of fruit and vegetables producers groups for some regions of the country, including the following voivodships: zachodniopomorskie, warminsko mazurskie, pomorskie i wielkopolskie.
Basic reasons of a hindrance in the creation of producers groups in Poland included a sudden deterioration of the profitability of the fruit and vegetables production in 2000 and 2001.
Minimum requirements of 5 members and EURO 100,000 in some regions of Poland of a fragmented agricultural structure are generally criticized as too high especially in reference to the value of the production.
Processed fruit and vegetables 27. Extension o(the product coverage o(the CMO for processed fruit and vegetables (Council Regulation (BC) No 2201/96 as amended bv Council Regulation (BC) No. 269912000)
Poland maintains its position presented in CONG-PL 43/02 on strawberries for freezing, raspberries for freezing, blackcurrants and red currants for freezing, sour cherries for freezing, and apples for the juice concentrate production as products for which the producer organisations may receive financial aid after meeting requirements laid down in Council Regulations (EC) No 2201/96 and 2699/2000.
20915/02 CONF-PL 96/02 23 EN 28. Aid to improve the quality of soft fruit, sour cherries, and some vegetables for processing (Council Regulation No 2201196. Article 10 as amended bv Council Regulation No 269912000)
Poland acknowledges that the issue should be addressed under the appropriate procedure (Management Committee procedure) at the appropriate moment and it does not require any further negotiations.
28A. National thresholds for processing aid (Council Regulation (BC) No 2201196 as amended bv Council Regulation (BC) No. 2699/2000)
Poland maintains its position on the volume of the threshold for tomatoes for processing- 194,639 tonnes.
Poland informs that after adoption of the methodology of calculating the threshold for tomatoes for processing as indicated in the Common Position of the EU (CONF-PL 45/02), the threshold for Poland amounts to 194,639.
According to the EU methodology, assumed calculations of the last three marketing years for which statistical data is available.
Poland in its position CONF-PL 43/02 and CONF-PL 79/02, namely 1998/99, 1999/00, 2000/01 presented data referring to consumption of tomatoes in the processing industry for the last three marketing years. The average consumption of tomatoes in the processing industry amounted to 189,393 tonnes in that period, which gives the threshold of 194,639 tonnes with coefficient 102.77%. WINE AND ALCOHOL WINE
30. Management of the Common market organisation for wine (Council Regulation (EEC) No 822187 as amended by Council Regulation (BC) No 1493/1999
Poland acknowledges information presented by the EU. Poland also informs that the problem does not require further negotiations.
31-33 Identification of regions for cultivation of particular vine varieties, registration and examination of wine varieties and classification of wine varieties (Council Regulation (BC) No 149311999)
Taking into account earlier explanations of the Polish side on the present state of vine regions classification, scale of wine production and current system of registration of vine varieties in our country, Poland accepts the UE proposal for the derogation from the Regulation (EC) No 149311999:
to postpone the classification of Poland to zone A in Annex Ill of Regulation (EC) No 1493/1999 until upon accession.
Furthermore, Poland accepts the UE proposed derogation to postpone until upon accession the obligation for Poland to register and classify the vine varieties on the basis of Regulation (EC) No 1493/1999.
20915/02 CONF-PL 96/02 24 EN 35. Quality standards for spirits and protection of spirits bearing a geographical identification ·(Council Regulation (EEC) No 1576189 and Commission Regulation No 1014190)
Poland acknowledges information presented by the EU. Poland also informs that the problem does not require further negotiations.
37. Labelling of Polish fruit wines (Council Regulation (EEC) No 2389192 and Commission Regulation No 3201190)
Poland notes that the EU accepts the application for the designation "Polskie wino owocowe I Polish fruit wine".
Poland maintains its position about placing the additional designation "Polskie wino/Polish wine" on labels of wines produced in Poland of imported grape raw materials.
Poland informs that due to a lack of national grapes that could be used for production of wine, Polish enterprises import the necessary raw material from abroad. Most of the raw material is imported form the territory of the EU. Due to the above, Poland presented a necessity to cover Polish producers with provisions of, among others, the Commission Regulation (EEC) No 2598/88.
Poland stresses that if British and Irish wines are currently made of raw materials coming from third countries (CONF PL 81/02), therefore the condition is also met by "Polskie wino" made of imported raw materials. It results from the information contained in CONF PL 81/02 that British and Irish wines are not sold on other markets of the European Union than the producer's country market. This condition is met by "Polskie wino".
Poland stresses that it applies to cover Polish producers only and solely with the same legal regulations which apply in the EU for producers of British and Irish wines. Hence the definition of the beverage contained in the Act of25 July 2001 on the production and bottling wine products and trade with them, which entered into force on 10 October 2002, was worked out on the basis of definitions ofBritish wines.
38. Designation of spirits drinks (Council Regulation (EEC) No 1576189 and Commission Regulation No 1014190)
Poland acknowledges that the EU accepts the protection of the designation "Polska W6dka!Polish Vodka" for Polish vodkas made of Polish raw materials with the application of Polish traditional recipes, and meeting requirements provided in Council Regulation (EEC) No 1576/89.
Poland notes that the EU has acknowledged the resignation of Poland from the application to protect the following brand names: Krupnik, Roso/is, Zubrowka, Wodka Wyborowa, Wodka Luksusowa and the resignation of Poland from the applying for adding two new Polish categories of spirit drinks: Starka and Winiak to Council Regulation (EEC) No 1576/89. Poland confirms that the aforementioned problem does not constitute a subject matter of negotiations.
Poland notes the possibility to place the name "Wisni6wka!Polish Cherry" in spirits drinks category in Annex II of Council Regulation (EEC) No 1576/89. However, Poland informs that due to changes in the field of the property rights for names of individual Polish spirits drinks (like it was the case of spirits drinks including, e.g., Zubr6wka, Wyborowa, W6dka Luksusowa), the name "Wisni6wka" cannot be added to Annex II of Council Regulation (EEC) No 1576/89.
20915/02 CONF-PL 96/02 25 EN Due to the above, ·Poland maintains its position on the introduction of a protection for the designation of the category of spirit drinks "Polish Cherry" by means of placing the name of this category of spirit drinks in Annex II to Council Regulation (EEC) No 1576/89. Poland stresses that the similarity of the name of Polish "Polish Cherry" with Spanish "Sherry" as indicated in the Common Position of the EU (CONF-PL 81/02) shall not pose problems with a distinction of these two products, because:
I. Pursuant to the information provided in the Common Position of the EU (CONF-PL 81/02), the Spanish Sherry is a liqueur wine. On the other hand, "Polish Cherry" is a spirit drink - a liqueur made of sour cherries.
2. The name of the Polish spirit drink shall be preceded by the name of the country, i.e., ,,Polish". This part of the designation indicates the place of origin of the product and it clearly differentiates it from other products. The name of the Spanish liqueur wine called Sherry is not preceded by the country's name, which guarantees a differentiation of both products.
3. The second part of the designation of the Polish product used in English (Cherry) clearly indicates that the drinks is made of sour cherries, which shall not mislead consumers in reference to the character of the drink, which is also recommended by the Directive 2000/13.
Poland informs that the definition of the category of spirits drinks for which there can be applied the designation Polish Cherry is contained in the Act of 13 September 2002 on Spirit Drinks (art. 4, item 12, letter B). The definition is the following: "Polish cherry" is a spirits drink of the ethyl alcohol content not less than 24% vol., made on the territory of the Republic of Poland of an appropriately prepared raw sour cherry juice and a macerate of the cherries with a small addition of raw juices of other berry fruits and a natural almond oil, of the extract content not smaller than 340 grams per 1 litre of the drink, of characteristic organo-leptic features coming from sour cherries grown within the territory of the Republic of Poland.
Poland maintains its position on the introduction of the protection of the designation of the spirits drinks' category "Herbal vodka flavoured with bison grass extract" by means of placing this name of the category of spirits drinks in Annex II to the Council Regulation No. 1576/89. The definition of the category of spirits drinks, pursuant to the Act of 7 October 2002 on Spirit Drinks (Dz. U. No 166, item 1362) is the following:
''Herbal vodka flavoured with bison grass extract" is a spirits drink:
I. of the ethyl alcohol content not less than 40% Vol.;
2. obtained only through the aromatisation of the agricultural ethyl alcohol of the alcohol content not less than 96.5% VOL, with a macerate of the wisent grass (Hierohloe odorata and Hierohloe australis) growing in the Bialowieta Forest.
3. of the sugar content not higher than 4.5 g/1 per inverted sugar,
4. made in the territory of the Republic of Poland in the region of the Northern Podlasie Lowland,
5. made of Polish raw materials.
20915/02 CONF-PL 96/02 26 EN Spirit drinks m·ade of the raw juice of the bison grass have been made in Poland since the end of the 19th century. Due to specific features of the bison grass, growing wildly in the Bialowieza Forest, no other grass had been ever used for the production of those spirit drinks.
Due to the above, in order to precise the previous position (CONF-PL 79/02), Poland suggests a supplementation of the previously presented name by means of an exact specification of the place of origin of the product and providing the designation of the product category as: "Herbal vodka from the North Podlasie Lowland aromatised with an extract ofthe bison grass".
Poland proposes the inclusion in Council Regulation (EEC) No 1576/89 of the term "Herbal vodka from the North Podlasie Lowland aromatised with an extract ofthe bison grass" to differentiate this category of Polish spirits drinks from other similar drinks, which are or will be produced with addition of grass in other countries or due to a similar method of their description or presentation.
In connection with the information contained in the Common Position of the EU (CONF-PL 81/02) stating that similar spirit drinks are produced in the territory of the European Union, Poland asks to provide information about their definitions, places of production, and places of obtaining the grass for the production of such drinks.
39. Ensuring appropriate economic conditions to continue the traditional use of cereals and potatoes (or spirit production ·
Having carried out additional analyses, Poland withdraws the application to maintain a customs protection in the import of spirit and spirit products from other Member States (CONF-PL 43/02).
The withdrawal of the application does not solve the problem of unequal rules and level of the public aid applied in Member States for the production of spirit. Poland applies to cover spirit and spirit products (CN 2207 and 2208) with a system of monitoring of the import from other Member States after the accession, according to the position presented for problem No 4. The monitoring is necessary to evaluate the current situation in the market and possible threats caused by unequal competition conditions and a possible application of necessary means on the basis of art. 38 of the Treaty.
BANANAS
41. Tariffquota in the import o(bananas (Council Regulation (EEC) No 404/93, Commission Regulation No 89612001)
Poland maintains the position (CONF-PL 43/02) on granting Polish importers the possibility to import bananas at 0% customs rate at the amount of the traditional import, i.e., 310,000 tonnes.
Poland's application on establishing a customs-free contingent for Polish importers of bananas is not contrary to the acquis communautaire. It is based on a similar solution adopted in reference to the import of corn and sorghum to Spain and Portugal.
The aforementioned tariff containers are published annually in regulations establishing the Common Customs Tariff of the EC. Thus they constitute part of the acquis.
In the case of a lack of the approval of the aforementioned application of Poland, not only consumers of bananas, but also enterprises engaged in the import and processing of bananas will suffer losses.
20915/02 CONF-PL 96/02 27 EN Moreover, a serious deterioration of conditions of an access to the Polish market for the export of bananas from third countries will have to be compensated on the basis of art. XXIV of GATT and additional licenses (an additional reduction in customs duties) for other products. It may entail that an increase in the customs duties on bananas will be compensated with a reduction in the customs protection in the field of the import of goods produced in Poland, whose production the increased import may pose a threat against.
TOBACCO
42. National production quota for tobacco (Council Regulation (EEC) No 2075192, Article 9(2))
Poland maintains its position presented in CONF-PL 79/02 on the determination of the guaranteed threshold (production quota) for raw tobacco at the level of 55,000 tonnes per year, including for individual groups of tobacco varieties: Virginia (flue-cured) - 30,500 tonnes, Burley (light air cured)- 20,800 tonnes, dark air-cured- 2,700 tonnes, and fire-cured- 1,000 tonnes. The production quota does not include oriental tobacco the growing of which is impossible in Poland due to inadequate climatic and soil conditions.
42a. Premium svstem for tobacco (Council Regulation (EEC) No 2075192, Art. 3 (2))
Poland maintains its position presented in CONF-PL 79/02 on the coverage of Polish producers of raw tobacco with a special regulation in the field of the additional payments adopted on the basis of art. 3, item 2 of the Council Regulation (EEC) No 2075/92 for Austria, Belgium, France, and Germany.
Climatic conditions influencing the profitability of the tobacco growing are a justification to cover Polish producers of raw tobacco with the regulation.
The argumentation provided in the Council Regulation (EC) No 2444/96 of 17 December 1996, on the basis of which Austria was granted additional direct payments, was limited to the statement that tobacco growing conditions in Austria are similar to those in Germany.
The climatic conditions in Austria, Belgium, German, and even France are less advantageous than they are in states that are the biggest producers of the raw tobacco in the Community, namely Greece and Italy, as well as Spain and Portugal.
Climatic conditions during the tobacco vegetation in Poland can be considered to be advantageous for the growing of the plant, however, the temperatures during the production of the seedlings and drying of tobacco leaves force out the application of production technologies consuming more power than, e.g., in France and Germany, and thus leading to an increase in production costs.
The reduction of guaranteed thresholds of the production of the raw tobacco in the European Union was a consequence of a reduction in the production of the raw material, which resulted, among others, from a decrease in the demand for it.
The guaranteed thresholds for the production of raw tobacco established for Belgium, Germany, France, and Portugal for 1993 were higher than the average production achieved by these Member States during the 3 years preceding the introduction of the thresholds.
20915/02 CONF-PL 96/02 28 EN In the case ·of Austria, the guaranteed threshold granted in the Council Regulation (EC) No 415/96 of 4 March 1996, was almost twice as high as the average production of the raw tobacco in the country in the years 1993-1995.
A limitation in the production of the raw tobacco , which took place in the EU Member States, also took place in Poland, where it was an effect of the privatisation of tobacco plants and changes in the production technology of tobacco products connected with it.
During the 1980s Poland produced on the average ea. 94.2 thousand tonnes of the raw tobacco per year, and in 1990-95 the production amounted to ea. 46.7 thousand tonnes per year, while in 1996-99 (after the privatisation) it was ea. 38.0 thousand tonnes. Moreover, just like it was the case in EU Member States, there took place a change in variety structure (a considerable increase of light tobacco varieties in the total production) and the restructuring of processing equipments (changes in the technology of the production, harvesting, and drying of the leaves). Statistical data rendering changes in the production resulting from the change in variety structure are presented in Table 1 (data for the period 1997-99 have become a basis for the EU to determine the guaranteed threshold for the production of raw tobacco for Poland).
Table 1. Tobacco production in Poland, breakdown into variety groups in the years 1995-1999 (in tonnes). Variety group 1995 1996 1997 1998 1999 Flue-cured 17,200 22,700 20,000 21,000 25,600 Light air-cured 6,500 7,600 9,400 13,500 15,000 Dark air-cured 9,500 4,900 1,700 2,200 1,700 Fire-cured 6,500 3,000 1,300 1,000 1,400 Total 39,700 38,200 32,400 37,700 43,700 Source: CSO, National Union of Tobacco Planters Taking into account the fact that:
additional direct payments were granted only to Austria, Belgium, France, and Germany, i.e., countries where climatic conditions cause higher production costs,
the established thresholds guaranteed for Belgium, France, and Germany, and then for Austria, were higher than the average raw tobacco production in the last few years in those countries, so the additional payments did not constitute a compensation for the reduction in the production, which is indicated in the EU Common Position CONF-PL 81/02.
Poland maintains its position on the coverage of Polish producers of raw tobacco with a special regulation in the field of the additional payments adopted on the basis of art. 3, item 2 of the Council Regulation (EEC) No 2075/92, 43. Minimum volume of raw tobacco (or recognition of producer groups (Commission Regulation (BC) No 2848/98, Annex 1) Poland accepts the position of the European Union CONF-PL 81/02 and agrees that the problem does not require any further negotiations.
20915/02 CONF-PL 96/02 29 EN ANIMAL PRODUCTION
MILK AND MILK PRODUCTS
48a. Mechanisms for a market support in the milk and milk products market
As a results of Poland's application in the area "Agriculture - veterinary matters", items 82-85 Council Directive 92146, concerning a separation of milk meeting and not meeting of EU standards and a determination of a list of plants with rights to separate it, Poland assumes that the plants included in the aforementioned list shall be authorised after the accession to participate in market support mechanisms for the milk and milk products market. It refers to instruments including, e.g.: intervention purchases, private storage programmes, export refunds, mechanisms supporting the consumption of milk products) in reference to the products made of milk meeting the requirements of Enclosure I, Annex I, Chapter IV, A, 1 of the Directive No 92/46/EEC. 49. Specific reference quantity (milk quota) (Council Regulation (EEC) No 3950192 as amended by Council Regulation (EC) No 1256/1999)
Poland maintains its position (CONF-PL 79/02) in reference to the volume of the milk quota.
Poland applies for a application of a revision clause facilitating a revision of the milk quota after four, eight, and twelve years after the accession. The quota revision would facilitate its increase in the situation of an increase in the milk and its products' consumption in Poland or a change of the structure of the total milk quota (proportion: wholesale quota and direct sale quota). The necessity to introduce the revision clause results from deep changes undergoing both in the level and in the structure of the consumption and production of milk. For example the whole sale of milk was higher by 6.7% in 2001 in comparison to 2000. The whole-sale of milk indicates a growing tendency in 2002 in comparison to the previous year as well.
In the case of approving such a solution (the revision clause), Poland suggests to adopt the milk quota for Poland constituting an average of the following years to replace the proposal for individual years 2004-2008: wholesale quota 12,273 thousand tonnes, direct sales quota 623 thousand tonnes, total milk quota 12,896 thousand tonnes.
Years Wholesales quota Direct sales quota Total milk quota
2004 11 183 662 11 845
2005 11 880 645 12 525
2006 12 360 639 12 999
2007 12 765 605 13 370
2008 13 176 564 13 740 Average 12 273 623 12 896 2004-2008
20915/02 CONF-PL 96/02 30 EN BEEFMEAT ·
57. Special beefpremium (Council Regulation (EC) No 1254199)
While adopting the year 1998 as the reference year, Poland applies for the ceiling of the special beef premium - 1,505 thousand tonnes.
Poland adopts the year 1998 as the reference year for the special beef premium. It is also expected to take into consideration the fact that the tendency to slaughter calves at a young age occurring in Poland is a phenomenon closely connected with the economic situation of the sector (low prices of beef and a lack of a direct support). The coverage of the Polish beef market with the Common Agricultural Policy will result in a change of the tendency .. This is why Poland applies to take into consideration during the determination of the special beef premium limit, the part of calves (males), which has been slaughtered or exported so far, and it expects granting a limit for the special beef premium amounting to 1 505 thousand heads. Year No. of male cattle No of calves (males) slaughtered Total number of male cattle at the age of over 9 or exported** that can be bred for months* ('OOOhead) fattening after the ('000 head) introduction of the bonus system ('000 head) 1998 926 579 1505 *) the expertise performed by independent experts **) it has been assumed that small bulls constitute 50% of the total number of slaughtered or exported calves (on the basis ofdata obtained from the Central Statistical Office, CSO) The tendency to increase the standards of animal welfare leads to a limitation of the animals' transport at big distances. This is why more and more calves will be fattened up to higher weights and slaughtered in the country of origin to limit their transport.
Poland has preserved a considerable potential for the production of fodder based on permanent pastures and meadows. A lack of an appropriate support for an low-intgensity beef production will cause a degradation of considerable areas of meadows and pasture-land, which shall become waste land. Limits of additional payments for the beef cattle shall simultaneously decide about the profitability of an low-intensity system for the cattle breeding. Without support this type of beef production will not be profitable and the production of beef will be more and more intensive to the detriment of the natural environment and the animal welfare.
58. Suckler cow premium (Council Regulation (EC) No 1254199)
Poland accepts the proposal of the EU concerning the limit of rights to the suckler cow premium - 325,581 heads.
59. Eligibilitv o(animals for suckler cow premium (Commission Regulation (EC) No 234211999)
Poland maintains its position rmaintains its request for the granting of the suckler cow premium in respect of cows belonging to breeds listed in Annex I of Regulation (EC) No 2342/1999 provided they have been served by a beef bull, such derogation applying for a period of 8 years as of the day of accession in order to complete the process of meat specialisation.
20915/02 CONF-PL 96/02 31 EN The Polish application results from the specific character of the cattle breeding in Poland. It entails the fact that both beef and milk are obtained from the same breeds of cattle. The adoption of rules applicable in the Community would cause a necessity of a very quick replacement of the herd. The consideration of the national black and red-and-white cattle to be appropriate to receive the suckler cow premium during the transitory period facilitates a .,smooth., transformation of the production profile from two-directional (beef and milk) to typically meat-oriented. Otherwise, due to the model of the two-directional utilization of the cattle popular in Poland, the utilization of the suckler cow premium by farmers will continue to depend on the replacement of the herd of cows, which is connected with high costs that go beyond financial possibilities in most farms.
60. Slaughter premium (Council Regulation (EC) No 125411999, Article 11(3))
Poland applies for a ceiling of the slaughter premium for calves at the age of 1-7 months - 83 9,518 heads and for the cattle over 8 months of age- 1,949,040 heads.
Poland accepts the year 1998 suggested by the EU as the reference year and approves the ceiling of the calves slaughter premium amounting to 839,518 heads. However, it simultaneously applies for a slaughter premium for for bulls, steers, cows and heifers at the amount of 1,949,040 heads on the basis of the possessed data and the following calculations: Year Total slaughter and export of Export to Import Balance adult cattle (cows, heifers, candidate bulls kept for breeding, countries and the earlings) EU
A c A-B+C B 1998 1962000 18073 5113 1949040 Estimated data on the basis of CSO data
61. Additional pavments (Council Regulation (EC) No 125411999)
Poland accepts the position of the European Union about the sum of the additional payments at the amount of Euro 27,300,000. 65. Overall ceiling (or the granting o(the ewe premium (Council Regulation (EC) No 246711998, replaced by Council Regulation (EC) 2529/2001) Poland accepts the position of the EU on the limit of rights to the ewe premium at the amount of 335,880 heads.
65A. Additional payments (Council Regulation (EC) No 252912001)
Poland claims that the sum of the additional payments should be calculated on the basis of a limit of rights to premiums specified in the negotiation aspect No. 65 according to rules adopted for other Member States. The present position of the EU does not offer the possibility to refer to the suggested volume because it contains only a reference to item 65. Poland claims that the omission of the problem is probably a technical error.
20915/02 CONF-PL 96/02 32 EN The total sum· of additional payments contained in the European Union Common Position (CONF-PL 45/2) has been determined on the basis of the suggested limit of rights to premiums for Poland amounting to 335,880 ewes and the index calculated on the basis of proportions between the limit of rights to the premium and the volume of additional payments established for the 15 Member States. The global volume of additional payments for Poland calculated in such a way amounted to Euro 355,000.
D. RURAL DEVELOPMENT AND FORESTRY
69 Programming, administrative structure for implementation, control and monitoring, strategy (Reg. No. 1260/1999 and 125711999)
Poland confirms that experience gained while implementing SAP ARD is used in the work on programming documents and in preparations to implement structural support measures, related to rural development and agriculture, which are eo-financed from EAGGF- Guarantee an~ EAGGF Guidance Section.
The Draft Sectoral Operational Programme: Restructuring and Modernisation of Food Sector and Rural Development, following consultation and agreements, was submitted for ex-ante assessment and was the subject of initial consultations with the European Commission services. Also, the work on the preparation of Programme Complement is under way.
The Draft Rural Development Plan, currently subject to internal consultation and agreement, has also been prepared.
Due to the needs, for the advancement of the deadline for the commencement of financial resources contracting and payments, within the framework of the 2nd pillar of CAP Poland hereby applies for:
- setting up of a formal basis for the official submission of a Draft Rural Development Plan to the European Commission within the period preceding the accession date, so it will be possible for the Plan to be approved by the EU and for its implementation may realisticly occur at the moment of Poland obtaining membership
- shortening of the statutory programme negotiation period from 6 to 4 months from the date of submitting the programme to the European Commission.
Poland declares a will to intensify technical consultations on RDP measures with the EC services, which will enable to provide all the necessary additions and to formally submit the document for negotiations in July 2003.
Moreover, in the case of technical obstacles, which might delay the date of approval of certain measures planned within the framework ofRDP, Poland is applying to the EU for early approval of the remaining measures covered by RDP, and for the commencement of the measures' implementation the moment Poland is given the status of a Member State of the EU.
Poland is applying for the possibillity to provide advance payments to beneficiaries from resources payed in advance by the EU (e.g. agri-environmental programmes, afforestation of agricultural land).
20915/02 · CONF-PL 96/02 33 EN These presented solutions are extremely important to avoid any possible delays in the commencement of RDP implementation and they shall contribute to the increased effectiveness of the use of agricultural support measures in the first period following accession of Poland to the EU.
70 Rural development measures eligible for Community support (Reg. No. 125711999)
I. Full and comprehensive use of rural and agricultural support measures through the implementation of instruments provided for in the Council Regulation No. 1257/1999 is a matter of great importance for Poland.
II. Poland considers it necessary to introduce a principle allowing for the use ofEAGGF Guarantee measures earmarked for rural development within 3 years (n+2), similar as it was in the case of SAP ARD and as it has been settled for structural funds. Thus, referring to the proposal included in the Common Position (CONF-PL 81/02) Poland shall apply the decommitment rule (n+2 years) with respect to all measures covered by Rural Development Plan.
Ill. Poland positively views the proposal of the EU to increase, from 75 to 80%, the level of EAGGF - Guarantee eo-financing rural development instruments.
IV. Poland welcomes the interesting proposal which was included in Common Position (CONF-PL 81/02) to introduce new measures within the framework of Rural Development Plan, namely support for semi-subsistence farms undergoing restructuring, support to assist farmers in meeting EU standards, support for setting-up producer groups and technical assistance.
Within the framework of work on Rural Development, Plan Poland applies for the approval of the following rules of implementation for particular measures.
1. Support for semi-subsistence farms
Due to the present structure of Polish agriculture this measure might provide for an important element of supporting its development. Poland is interested in a broad implementation of this measure with the aim to strengthen investment possibilities of farms which can potentially become economically viable.
Poland applies for the maximum annual payment per farm to be increased to EUR 1500.
At the same time Poland underlines that simplifying the rules for granting support is a precondition ofbroad application of this measure for the revival of important but rather small-scale restructuring activities.
Poland applies for the requirement formulated in the Common Position (CONF-PL 81/02), for the farmer applying for this kind of support to submit a business plan similar to plans required for those applying for investment support, not to be applied.
Besides, Poland applies for the requirement to analyse the proportion of output currently marketed not to be introduced within the rules of the new measure operation.
Poland suggest the following:
- to base the definition of semi-subsistence farms on the estiniated calculation units of economic size of a farm, set out based on standard gross margin,
20915/02 CONF-PL 96/02 34 EN -to define the future farm economic viability in the same way,
- to grant support based on a farm development plan including a description of current and target farm resources (including labour force) together with planned investments, the description of current and planned agricultural production.
Poland intends to implement semi-subsistence farm support measure as a only measure or in combination with the additional support in the form of a grant within the framework of measures eo-financed from EAGGF Guidance Section.
2. Support for setting-up producer groups.
Poland regards it necessary to support the establishment of producer groups and welcomes the proposal included in the Common Position (CONF-PL- 81102).
3. Support to assist farmers in meeting EU standards
Poland declares the need to implement a new measure proposed in the Common Position (CONF PL- 81102).
Poland applies for the measure to be accessible for farmers to meet costs related to compliance with EU standards linked with possible transition periods as well as in the all other cases when such costs (in the form of additional investments required, additional workload or income foregone due to changes in husbandry practise) are necessary to comply with EU environmental, hygiene, animal welfare, food safety and occupational safety standards. Poland applies for the extension of the suggested period of application of the new measure so that it can be applied in farms introducing adjustment investments after 2006 within the transition period related to animal welfare standards in poultry production, i.e. till the year 2009, and with respect to investments concerning the construction of animal waste storage facilities till the year 2008.
4. Technical assistance
Poland is interested in using the possibility to cover technical assistance within RDP, which shall enable, among other, to support the establishment of a complex system of monitoring and appraisal of the programme operation as well as to reinforce the potential for implementation.
V. Support for the introduction of a simplified payments scheme and decoupled payments scheme
Due to choosing a simplified direct payments scheme Poland applies for extension of the scope of rural development measures to include a new optional measure serving to alleviate negative effects of simplified scheme application in a selected types of agricultural holdings.
Analysis to-date shows that beside a lot of desirable effects which make the case for its implementation, the simplified scheme shall also have a significant effect of support redistribution among agricultural production types. For the majority of farms this effect shall be eased by means of diversified production structure, however some farms would experience a dramatic fall of support not only in relation to the standard scheme, but also in relation to the pre-accession period. Worse conditions of competition for these farms could be reinforced in a situation where the level of support of Polish farms in the first years after accession is lower in relation to similar farms in the remaining Member States (both the existing as well as new ones). In order to avoid such a phenomenon in this situation it will be necessary to apply a mechanism compensating distorted competition to these farms.
20915/02 CONF-PL 96/02 35 EN The suggested measure would have a form of a temporary payment, paid for a ha of crops, the amount of which could compensate for the negative effects of competition resulting from the introduction of a simplified scheme of payments in Poland. Analyses to-date suggest that compensatory payments should be necessary, among others, in the case of farms specialising in tobacco and hops production. A final range of products (as well as the rate of payment) shall be specified at a later stage, when the level of direct support in Poland in the first years after accession is known.
VI. Changes in acquis do-date
1. Investment in farm holdings (Chapter I of Council Regulation (EC) No 1257/99)
Poland welcomes the proposal of the EU to modify the existing provision of Art. 5 of Council Regulation No. 1257/1999 concerning the treatment of economic farm viability condition not as an initial condition but as a target one (following the implementation of planned investment).
Taking as its base the provisions of Council Regulation No. 445/2002 Poland accepts minimum standards concerning animal welfare, hygiene and environment protection as newly introduced, meaning that they should be fulfilled by a farm following the investment implementation, and not at the moment of applying for support. Poland welcomes the proposal to increase the level of farm support up to the amount suggested in the Common Position (CONF-PL- 81/02).
2. Investments in marketing and processing
Poland welcomes the proposal contained in the Common Position (CONF-PL- 81102) involving a transitional permission to invest in those enterprises which, at the moment of applying for support, do not fulfil hygiene, welfare and environmental standards in their entire scope, but shall fulfil them within a defined transition period or following the investment implementation.
This proposal fully reflects Polish proposals included in its negotiation position CONF-PL 79/02.
3. Support for the provision of advisory and extension services
Poland shall include the new measure, suggested in the Common Position (CONF-PL- 81/02) within the scope of Sectoral Operational Programme: Restructuring and Modernisation of Food Sector and Rural Development and fully recognises its importance for the streamlining of the implementation of rural and agricultural measures.
VII. Poland notes the arguments for resignation, between 2004 - 2006, from the implementation of LEADER Community Initiative.
While acknowledging the importance of LEADER initiative for the activation of local rural communities, Poland shall include the solutions suggested in the Common Position (CONF-PL- 81/02) to the main line of structural programmes.
70A Protection o(the Community's forest against tire (Council Regulation (EEC) No 2158192) Poland acknowledges information presented by the EU. Due to the fact that the EU prepares new legal solutions in this field, Poland will closely follow the undergoing changes. Having studied them, Poland will consider the possibility to construct appropriate organisational and control structures in this area.
20915/02 CONF-PL 96/-02 36 EN VETERINARY MATTERS
81A. Public health protection
Poland declares an implementation of the national plan for achieving a full compliance with the EU requirements in reference to public health conditions for plants making products of animal origin.
Poland wishes to note that due to a big number of plants that have declared the adjustment until the accession day (over 2300 plants in the following sectors: meat, milk, and fish) there may occur certain delays in some cases beyond control of the given plants. Poland applies in such cases, within procedures referring to the Committee for the Alimentation Chain and the Animal Health, to grant the possibility to apply exceptional solutions facilitating the realization of the lacking adjustments in strictly specified time frames.
Poland supports the application for a transitory permit to export milk products coming from plants covered by the transitory period to third countries. Such an export will comply with the provisions of Article 12 of Regulation (EC) No 178/2002 which determine the rules for export to third countries in relation to EU food law
82-86 Milk sector
82-85 Council Directive 92146/EEC
Poland supports the application presented during the Accession Conference- document CONF-PL 58/02 ADD 3 - concerning the possibility of milk plants approved according to art. 10 or 11 of the Council Directive 92/46/EEC to process both milk meeting requirements of the said Directive and milk not meeting them after the ~ccession.
88. Export of meat and meat products coming from plants covered bv the transitory period to third countries
Poland supports the application for a transitory permit to export meat and meat products coming from plants covered by the transitory period to third countries. Such an export will comply with the provisions of Article 12 of Regulation (EC) No 178/2002 which determine the rules for export to third countries in relation to EU food law.
94. Requirements concerning the protection o(hens laving eggs (Council Directive 1999174/EC)
Poland supports its position concerning the granting of the transitory period to all 95 fanns breeding hens laying eggs in bacterial boxes covered by the list presented to Accession Conference (CONF PL 64/02 ADD 8) ti1131 December 2009.
PHYTOSANITARY MATTERS
100. Varieties o(potato immune to the potato wart disease
Poland acknowledges the EU approval of the application concerning the establishment of a 10-year long transitory period starting on the accession day of Poland to the European Union, during which it will be possible to grow potato varieties resistant to potato wart disease in the territory of Poland. However, it is noted that additional provisions referring to the registration of all potato producers have been included in the EU document (CONF-PL 81102) as well. Poland claims that the fulfilment of the requirement will not be possible due to the following reasons.
20915/02 CONF-PL 96/02 37 EN According to statistical data (The Agricultural Statistical Yearbook 2001), only 45.9% (ea. 865 thousand) agricultural holdings in Poland carry out the agricultural production mainly for the needs of the market, while the remaining farms produce crops only or mainly for their own needs. The potato production is carried out in 82.5% agricultural holdings altogether, including 77% of them on the area below 2 ha, respectively: 61.7% below 1 ha and 15.3% on the area of 1-2 ha. It can be assumed that the agricultural holdings do not carry out any commercial trade with the produced potatoes or sale them at a small scale, mainly to direct recipients in the nearby area. Farms producing potatoes in an area over 2 ha constitute 5.5% (ea. 85.5 thousand) all farms in this production, including 0.3% ofthem in the area exceeding 5 ha (ea. 46.6 thousand). Bearing in mind the potato production structure, as well as organizational and personnel capabilities of the plant protection and seeds services, Poland is requesting to apply mandatory official registration of the following entities: • all producers of seed-potatoes, • producers of ware potatoes engaged in the production on the area exceeding 5 ha, • storage warehouses and centres packing potatoes, • potato exporters and importers. *****
20915/02 CONF-PL 96/02 38 EN
ANNEX I List of programmes to be implemented after accession
I. SUBSIDISED INTEREST FOR INVESTMENT CREDIT IN AGRICULTURE, AGRI FOOD PROCESSING AND AGRICULTURAL SERVICES.
1. Aid for the repayment of investment loans in agriculture, agri-food processing and agricultural services sectors.
2. Legal basis for granting aid Act of 29.12.1993 for the establishment of the Agency for the Restructuring and Modernising of Agriculture (J. o L., 1994, No 1, item 2 as amended later). Council ofMinisters' Regulation of the 30.01.1996 on the detailed activities to be performed by the Agency for the Restructuring and Modernising of Agriculture (J. o L., No 16, item 82 as amended later). 3. Purpose of aid Aid is to support new investments or the creation of new jobs as a result of the investments in question. 4. Forms of aid Subsidies for interest on credit. 5. Eligibility criteria for aid The amount of soft term loan must not exceed 80 % of the total outlay of a farm holding and 70 % of the total outlay of agri-food processing, agricultural services and special agricultural production enterprises. Moreover, in real terms, it must not exceed: PLN 2 million for an entity granted a loan to finance activities on a farm holding or holdings; PLN 4 million for an entity granted a loan to finance activities in special agricultural production enterprises, agricultural services and non-fanning business activities; PLN 8 million for an entity granted a loan to finance agri-food processing except for those businesses with on-going investment projects financed under the restructuring programme for the meat processing sector, where a loan amount can total up PLN 16 million. A loan interest subsidy can be granted provided that, inter alia, the borrower submits, particularly, a business plan which has received a positive opinion of an agricultural extension centre geographically appropriate for the location of the given investment project to be implemented. 6. Cost items eligible for aid Credit can be used as follows: to purchase, modernise, re-furbish, construct or expand farm holdings, agri-food processing establishments as well as those providing agricultural services; to complete an investment project underway; to purchase agricultural properties with or without buildings; to purchase and install machinery, equipment and tools; to purchase stock animals; to purchase assets from the stocks of the State Treasure Agricultural Property;
20915/02 CONF-PL 96/02 39 (ANNEX I) EN to purchase the .perpetual usufruct right for an agricultural land plot or plots; to purchase, construct, re-furbish and modernise facilities for the sorting, storing, cool storing, chilling or freezing of fruit and vegetables on farm holdings or at fruit and vegetables processing plants; to convert or renovate farm dwellings, houses or livestock ·buildings in order to provide agri tourism services; to modernise dwellings in order to provide agri-tourism services; to establish camping sites; to purchase trucks or goods delivery vehicles, or other special vehicles as required in specialist agricultural production enterprises.
7. Conditions of granting aid for operations · The credit may be up to 30% of the total inputs cost and can be utilised to purchase production inputs needed to launch the first production cycle.
8. Amount of aid The annual spending of the Agency for the Restructuring and Modernising of Agriculture for the credit interest subsidies totals about PLN 700 million.
9. Aid duration period Subsidies for the interest on bank credit are granted for the following periods: - 15 years - loans for young farmers and to purchase farmland, - 8 years - for other types of credit.
10. Aid Beneficiaries
Farmers, businesses running agri-food processing plants or providing agricultural services
11. Aid granting institutions
Agency for the Restructuring and Modernising of Agriculture
12. Cumulating of aid After investment project completion, agricultural producers paying agricultural tax are eligible for: Investment allowance for agricultural tax amounting to 25% of the total investment outlays confirmed by invoices. The investments in question include those for livestock buildings or construction in connection with environmental protection, the purchase and installation of sprinklers, land melioration equipment or water supply facilities, or purchase of equipment with a view to utilising renewable energy sources for production purposes (wind, bio-gas, solar energy, water flow on slopes); agricultural tax exemption for 5 years in case of land purchase or the acquisition of perpetual usufruct right in order to establish a new farm holding or expand an existing holding up to an area of 100 hectares.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 40 (ANNEX I) EN 11. PROVIDING GUARANTEES AND COLLATERAL FOR INVESTMENT CREDIT IN AGRICULTURE AND AGRI-FOOD PROCESSING
1. Aid in the form of loan repayment guarantees and collateral for investment credits in agriculture and agri-food processing
2. Legal basis for granting aid
Act of 29.12.1993 for the establishment of the Agency for the Restructuring and Modernising of Agriculture (J. o L., 1994, No 1, item 2 as amended later). Council of Ministers Regulation of the 30.01.1996 on the detailed activities to be performed by the Agency for the Restructuring and Modernising of Agriculture (J. o L., No 16, item 82 as amended later).
3. Purpose of aid Aid is to support new investments or creation of new jobs resulting from this investment.
4. Forms of aid Guarantees and collateral for investment loans.
5. Eligibility criteria for aid
The Agency may provide a guarantee up to PLN 1 million, or collateral amounting up to 60 % of the utilised part of the total credit amount that has been covered by the collateral, up to PLN 1 million. In respect of the guarantee or collateral it provides, the Agency collects a single fee, i.e. 1% of the total credit amount secured with collateral, and 2% of that secured with a guarantee. The Agency secures its relevant liabilities in the same way as banks do, but the securities are valued at a clearly lower level. The conditions to apply for credit repayment collateral are as follows: submission of an application via a bank; submission of a business plan with a positive opinion from an agricultural extension centre geographically appropriate for the investment location; conclusion of a provisional loan agreement with a bank; submission of certificates on the showing no outstanding taxes and social insurance contributions; submission of documents to confirm the legal status and financial situation of the business applying for collateral.
6 .. Cost items eligible for aid
Guarantees and collaterals for investment loans
20915/02 CONF-PL 96/02 41 (ANNEX I) EN 7. Conditions· of granting aid for operations none are envisaged.
8. Amount of aid Annually, the Agency provides loan collateral totalling about PLN 3 million and guarantees to a total of about PLN 2 million.
9. Aid duration period Collateral or guarantee covers the whole period of investment credit repayment: - 15 years for young farmers and to purchase land for agricultural use, - 8 years for the other credit types.
10. Aid beneficiaries
Farmers, businesses running agri-food processing plants or providing agricultural services
11. Aid granting institutions Agency for the Restructuring and Modernising of Agriculture
12. Cumulating of aid
Guarantee or collateral can address also those preference terms loans subsidised via the Agency for the Restructuring and Modernising of Agriculture
13. Territorial coverage of aid
National
20915/02 CONF-PL 96/02 42 (ANNEX I) EN Ill. SUBSIDIES TO 'PROMOTE GENETIC PROGRESS IN ANIMAL PRODUCTION.
1. Aid in the form of a subsidy to promote genetic progress in animal production.
2. Legal basis for granting aid Art. 72 item 5 of the act of 26.11.1998 on Public Finance (J. o L. No 155, item 1014 as amended later). Budget Law for a year in question specifies the subsidy amount and purpose. Regulation of the Minister of Agriculture and Rural Development of22.05.2002 on set-purpose subsidies for entities executing tasks for agriculture (J. o L. No 65, item 595).
3. Purpose of aid According to breeding programmes, the subsidv is provided for those programmes in connection with the breeding of: cattle, pigs, sheep, horses, poultry. honey bees, fur animals and fish.
4. Forms of aid Supplementary financing of the implementation cost of animal breeding programmes.
5. Eligibility criteria for aid
§ 8 - 29 of Regulation of the Minister of Agriculture and Rural Development of 22.05.2002 on the rates of set-purpose subsidies for certain entities performing tasks for agriculture (J. o L. No 65, · item 595). Submission of an application supported by relevant documentation is a basic condition to be met when applying for this subsidy.
6. Cost items eligible for aid
Depending on the type of entity granted with a subsidy, it can eo-finance the following cost items: purchase ofbreeding animals or fish re-stocking material, animal husbandry, performance of sample testing, evaluation of animal breeding values or animal performance for cattle, horses, sheep, poultry, fur animals and bees, animal tagging and records keeping, animal husbandry supervision over herd maintenance, fish re-stocking, fish catches, and selection maintenance of populations to be protected as genetic resources of farm animals and fish, keeping animals in nucleus herds constituting the genetic reserves and gene pool herds. acquisition and storage of genetic material from populations covered by programmes of genetic resources protection, purchase of imported genetic materials to implement breeding programmes, the maintenance and making of entries in herd books of cattle, pigs, horses and poultry, or registers of horses and beef cattle breeds,
20915/02 CONF-PL 96/02 43 (ANNEX I) EN the keeping of bulls under bull selection and evaluation programmes, the keeping of boars or storing semen under the programmes of boar selection and evaluation, laboratory testing, other costs involved in animal breeding. 7. Conditions of granting aid for operations Set-purpose subsidies must not be used for investment.
8. Amount of aid
about PLN 150 million per year.
9. Aid duration period Minister of Agriculture and Rural Development sets the amounts of set-purpose subsidies annually in a relevant regulation.
10. Aid beneficiaries
Entities involved in animal breeding to achieve genetic progress.
11. Aid granting institutions
Minister of Agriculture and Rural Development.
12. Cumulating of aid This set-purpose subsidy does not exclude an entity from applying for other aid forms, for e.g. the subsidies for investment loans in connection with investments in the keeping of breeding animals.
13. Territorial coverage National
20915/02 CONF-PL 96/02 44 (ANNEX I) EN IV. SUBSIDIES FOR PLANT PROTECTION.
1. Subsidies for plant protection
2. Legal basis for granting aid
Art. 72 item 5 of the act of 26.11.1998 on Public Finance (J. o L. No 155, item 1014 as amended later). Budget law for a year in question specifies the subsidy amount and purpose. Regulation of the Minister of Agriculture and Rural Development of 22.05.2002 on set-purpose subsidies for entities executing tasks on behalf of agriculture (J. o L. No 65, item 595).
3. Purpose of aid Subsidy is to eo-finance i.a. the combating of pestilent outbreaks, the cost of research on pests subject to official control, the cost of soil and plant testing for the presence of harmful organisms, the forecasting and signalling of the dates of plant protection activities to control plant diseases and pests, quality inspection of plant protection products, research on the techniques of applying plant protection products, testing for the residues of plant protection chemicals in agricultural produce as well as the cost of soil and plant testing to for the presence of pests in potatoes (Council Directives Nos. 2000/29/EC, 69/464 EEC and 93/85 EEC).
4. Forms of aid eo-financing the performance of plant protection tasks.
5. Eligibility criteria for aid
The subsidy is paid basing on a decision of a Chief Inspector for Plant Protection and Seed Production after an eligible entity has submitted an application. The subsidy is paid based on a decision taken by the Minister of Agriculture and Rural Development only if a relevant application has been submitted by an entity providing services in connection with the classification of plant protection chemicals in terms of their toxicity for people, bees and aquatic species.
6. Cost items eligible for aid 1) cost of actions ordered by the Voivodship Inspector for Plant Protection and Seed Production, 2) compensation for the actual damage caused by the application of a decision on pest control by the Voivodship Inspector for Plant Protection and Seed Production, 3) in administrative application procedures, covering the cost of pest controlling activities as a result of a decision on pest control ordered by the Voivodship Inspector for Plant Protection and Seed Production, 4) providing for the cost of expert studies to determine the cost of said activities and the actual damage,
20915/02 CONF-PL 96/02 45 (ANNEX I) EN 5) if pest is subject to official control or is a pest of international significance, providing for the cost of laboratory testing with a view to justifying including them on the list of officially controlled harmful organisms, 6) providing for the cost oflaboratory testing for the presence of pests subject to official control, 7) costs of forecasting and signalling the dates of operations to control crop plants pests and diseases, 8) costs of controlling the quality of plant protection products, 9) costs of laboratory testing for plant protection chemicals residues in agricultural produce, 10) costs of research on techniques of applying plant protection products, 11) service costs of dressing of non-certified winter wheat seeds and the value of plant protection product used if: 1) the seeds are intended for sowing on holdings located in the risk zones exposed to smut that have been identified by the Voivodship Inspector for Plant Protection and Seed Production, 2) if plant protection product recommended for controlling smut has been used for seed dressing performed in line with the label requirements , i.e. the instruction on the product application method.
7. Conditions of granting aid for operations
Only tangible asset expense
8. Amount of aid
about PLN 15 million a year.
14. Aid duration period
Minister of Agriculture and Rural Development sets the amounts of set-purpose subsidies annually in a relevant regulation.
15. Aid beneficiaries
Entities performing plant protection activities.
16. Aid granting institutions
Minister of Agriculture and Rural Development and Chief Inspector for Plant Protection and Seed Production (from funds the Minister of Agriculture has allocated for that purpose)
17. Cumulating of aid This set-purpose subsidy does not exclude an entity from applying for other aid forms, for e.g. the subsidies for investment loans in connection with investment in the development of plant protection services. 18. Territorial coverage National
20915/02 CONF-PL 96/02 46 (ANNEX I) EN V. SUBSIDIES FOR AGRICULTURAL HOLDINGS APPLYING ECOLOGICAL FARMING METHODS IN AGRICULTURAL PRODUCTION
1. Subsidies for agricultural holdings applying ecological farming methods in agricultural production 2. Legal basis for granting aid
Art. 72 item 5 of the Act of 26.11.1998 on Public Finance (J. o L. No 155, item 1014 as amended later). Budget Law for a year in question specifies the subsidy amount and purpose. Regulation of the Minister of Agriculture and Rural Development of22.05.2002 on set-purpose subsidies for entities executing tasks for agriculture (J. o L. No 65, item 595). Art. 15 of the Act of 16.03.2001 on ecological agriculture (J. o L. No 38, item 452). 3. Purpose of aid eo-financing the cost of a programme to convert a farm holding into one applying ecological production methods, and the cost of using ecological production methods to obtain produce provided with a compliance certificate.
4. Forms of aid eo-financing the cost of ecological production.
5. Eligibility criteria for aid
Submission of an application including as follows: the number and date of a report of the given ecological farm inspection or a certificate issued by an authorised certifying authority, type and hectarage of ecological crops inspected, date of the on-the-spot inspection of a certifying unit on the holding in question.
6. Cost items eligible for aid Implementation cost of a programme to adapt a farm holding for ecological production and the costs of ecological production.
7. Conditions of granting aid for operations Subsidy covers operating costs.
8. Amount of aid
about PLN 10 million a year.
9. Aid duration period In a relevant regulation, the Minister of Agriculture and Rural Development sets the subsidy rate per 1 ha of ecological crop production.
20915/02 eONF-PL 96/02 47 (ANNEX I) EN 10. Aid beneficiaries Entities implementing a programme to convert a farm holding to ecological production methods and to produce ecological products provided with a compliance certificate.
11. Aid granting institutions
The Director of Agri-chemical Station grants the aid from the funds allocated by the Minister of Agriculture.
12. Cumulating of aid
Obtaining aid per ha of ecological crops does not exclude an entity from applying for other aid forms, for e.g. the subsidies for investment loans in connection with investment in ecological production.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 48 (ANNEX I) EN ' ' VI. AID FOR THE CONTROLLING OF CONTAGIOUS ANIMAL DISEASES
1. Aid for the controlling of contagious animal diseases
2. Legal basis for granting aid
Art. 72 item 5 of the act of 26.11.1998 on Public Finance (J. o L. No 155, item 1014 as amended later). Budget Law for a year in question specifies the subsidy amount and purpose. Regulation of the Minister of Agriculture and Rural Development of 22.05.2002 on set-purpose subsidies for entities executing tasks for agriculture (J. o L. No 65, item 595).
3. Purpose of aid
The aid is to eo-finance the cost of controlling contagious diseases of animals, the monitoring testing for chemical and biological residues in animal tissues and products of animal origin, in tissues and body fluids of slaughter animals, including those activities to protect against the risk ofBovine Spongiform Encephalopathy (BSE)
4. Forms of aid Co-financing the costs of implementation with a view to control contagious diseases of animals, to perform monitoring testing for chemical and biological residues in animal tissues and products of animal origin, in tissues and body fluids of slaughter animals.
5. Criteria of eligibility for aid Submission of an application to obtain aid for activity eo-financing.
6. Cost items eligible for aid Cost items subject to eo-financing: rabies vaccinating of foxes living at large, veterinary activities, testing for animal diseases subject to official control, control testing for chemical and biological residues in tissues and body fluids of slaughter animals as well as products of animal origin, testing for the presence of dioxins in animal feeding stuffs, animal tissues, products derived from animals and those of animal origin, after laboratory testing of animal waste for the presence of contagious diseases, rendering the waste harmless by specialised· entities, and the performance of animal euthanasia as ordered by authorised veterinary officers, disinfecting the locations of contagious disease outbreaks, costs of transportation to the location of a contagious disease outbreak to be eliminated, costs of taking samples for monitoring testing, and delivering them to testing laboratories, delivery and slaughter of animals or sanitary slaughter, disinfecting abattoirs after sanitary slaughtering, application of appropriate meat processing technologies, rendering of dead animals and post-slaughter waste as ordered by authorised veterinary officers, fees of experts.
20915/02 CONF-PL 96/02 49 (ANNEX I) EN 7. Conditions· of granting aid for operations
Subsidy covers operating expenses.
8. Amount of aid
about PLN 100 million a year.
9. Aid duration period
Minister of Agriculture and Rural Development specifies the rates of set-purpose subsidy in a relevant regulation.
10. Aid beneficiaries
Entities implementing activities to control contagious diseases of animals.
11. Aid granting institutions
Voivodship Veterinary Officer.
12. Cumulating of aid
The aid must not be used for the eo-financing of the above mentioned tasks if executed by veterinary inspection services or their laboratories.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 50 (ANNEX I) EN VII. SUBSIDIES FOR INTEREST ON LOANS TO ELIMINATE THE CONSEQUENSES OF NATURAL DISASTER.
1. Subsidies for interest on loans to eliminate consequences of natural disasters.
2. Legal basis for granting aid
Act of29.12.1993 on the establishment of the Agency for the Restructuring and Modernising of Agriculture (J. o L., 1994, No 1, item 2 as amended later). Council of Ministers Regulation of the 30.01.1996 on the detailed activities to be performed by the Agency for the Restructuring and Modernising of Agriculture (J. o L., No 16, item 82 as amended later).
3. Purpose of aid
Preference terms loans granted for the implementation of activities to restart agricultural production on farm holdings and special agricultural production enterprises located in areas that have been affected by natural disasters.
4. Forms of aid Subsidy of interest on bank credit.
5. Criteria of eligibility for aid Credit line is launched only if approved by the Minister of Agriculture and Rural Development at the request of the Voivod (Regional State appointed Administrator) within two months from the disaster date. The Voivod can submit a request provided that a commission he/she appointed for this purpose has evaluated the damage within 30 days from the date of occurrence of the natural disaster.
6. Cost items eligible for aid 1) the costs of restoring the functional roles of: damaged or destroyed livestock buildings, warehouses and storage facilities, glass houses and other production buildings and constructions or dwelling houses, incurred because of reconstruction or as indispensable major repairs, damaged tractors, farming machinery and equipment requiring major repairs; costs of purchasing tractors, farming machinery and equipment as well as trucks, and special transport vehicles, as needed, exclusively for the purposes of specialist agricultural production enterprises in replacement of destroyed machinery or equipment; 2) the costs of restoring production capacity incurred fro the purchase of: certified nursery material to replant an orchard, restocking of breeding animals, certified seed and nursery material, mineral fertilisers, plant protection chemicals, fuel for farming purposes, livestock, queen bees, feed concentrates and compound feeds for livestock,
20915/02 CONF-PL 96/02 51 (ANNEX I) EN fuel to heat glass houses and tunnels.
7. Conditions of granting aid for operations
As appointed by the Voivod, the commission must confirm the scale of damages of working and capital assets due to the natural disaster.
8. Amount of aid
about PLN 100 million a year.
9. Aid duration period - working capital credit is granted for 24 months, investment credits are extended over 8 years, excluding loans to purchase certified nursery material to restore orchards and restocking of breeding animals, where the credit is extended over 5 years, and except for loans to counteract flooding, which are granted over 12 years.
10. Aid beneficiaries
Legal persons running business in the following sectors: crop farming, vegetables growing and horticulture, animal keeping and breeding, special agricultural production enterprises, sea and inland water fisheries.
11. Aid granting institutions
Agency for the Restructuring and Modernising of Agriculture
12. Cumulating of aid
13. Territorial coverage National
20915/02 CONF-PL 96/02 52 (ANNEX I) EN VIII. AID FOR THE. MAINTENANCE OF LAND RECLAMATION FACILITIES.
1. Aid for the maintenance of land reclamation facilities.
2. Legal basis for granting aid
Budget Law for the year in question.
3. Purpose of aid
eo-financing the maintenance cost ofland reclamation facilities.
4. Forms of aid Aid to eo-finance:
land reclamation facilities,
implementation cost of land reclamation activities performed by water management companies.
5. Criteria of eligibility for aid Those tasks related to the maintenance and operating of basic land reclamation facilities can be ordered only in a competitive bidding procedure. Only those tasks to eliminate the consequences of flooding can be ordered following negotiations with just one entity. The Voivod grants subsidies to water management companies providing maintenance service to specific land reclamation facilities based on applications approved by those authorities supervising water companies activities. As for the water management companies in charge of maintaining hydromelioration facilities, they obtain their subsidies after the submission of an application accompanied by an opinion on the irrigation services provided the year before.
6. Cost items eligible for aid
Expenses incurred to: maintain and operate basic land reclamation facilities; remove flood damage; to maintain specific land reclamation facilities, to elaborate designs and documentation of constructions and water facilities ordered by Voivodship boards for land reclamation and water management facilities, which are to be provided to water management companies free of charge.
7. Conditions of granting aid for operations Aid includes the eo-financing of current expenses,
8. Amount of aid
about PLN 74 million a year
9. Aid duration period
Aid is granted each year as specified in budget law for that year.
20915/02 CONF-PL 96/02 53 (ANNEX I) EN 10. Aid beneficiaries
Water management companies and entities executing tasks related to the maintenance and operating of basic land reclamation facilities and the elaboration of designs and documentation of constructions and water facilities.
11. Aid granting institutions
Voivod.
12. Cumulating of aid
This set-purpose subsidy does not exclude the possibility of benefiting from the other aid forms.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 54 (ANNEX I) EN IX. AID TO PROMOTE AGRICULTURAL PRODUCTION.
1. Aid to promote agricultural production. 2. Legal basis for granting aid
Budget Law for a year in question specifies the subsidy amount and purpose. Art. 72 item 5 of the act of 26.11.1998 on Public Finance (J. o L. No 155, item 1014 as amended later). Regulation of the Minister of Agriculture and Rural Development of22.05.2002 on set-purpose subsidies for entities executing tasks for agriculture (J. o L. No 65, item 595).
3. Purpose of aid
Co-financing the cost of animal breeding competitions and agricultural exhibitions, and other food promoting programmes and events.
4. Forms of aid
Subsidy
5. Criteria of eligibility for aid
An application by an entity organising an exhibition, a competition or a food promoting programme.
6. Cost items eligible for aid
Cost of arranging exhibitions, competitions, programme implementation, including for example, announcements in the mass media.
7. Conditions of granting aid for operations
eo-financing of current expense only in accordance with an approved cost as specificed.
8. Amount of aid
Over PLN 1 million a year
9. Aid duration period
In line with programmes approved annually lO.Aid beneficiaries
Breeders, and entities involved in agri-food processing
20915/02 CONF-PL 96/02 55 (ANNEX I) EN 11. Aid granting institutions
Minister of Agriculture and Rural Development
12. Cumulating of aid
13 Territorial coverage National.
20915/02 CONF-PL 96/02 56 (ANNEX I) EN X. AID TO SUPPORT SCIENTIFIC RESEARCH AND ITS IMPLEMENTATION IN AGRICULTURE AND AGRI-FOOD PROCESSING.
1. Aid to support scientific research and implementation and its implementation in agriculture and agri-food processing.
2. Legal basis for granting aid
Act of 12.01.1991 on Scientific Research Committee (J. o L. No 33 of2001, item 389) Regulation of the Chairman ofthe Scientific Research Committee of30 November 2001 on the eligibility criteria and procedures, and the accounting for funds allocated for science in the state budget (J. o L. of 19 December 2001)
3. Purpose of aid
eo-financing operating the costs of research and development units, including research institutes performing activities related to agriculture and the environment.
4. Forms of aid a subsidy
5. Criteria of eligibility for aid
Funds to finance or eo-finance are provided as: a subsidy for an entity to perform statutory research and development activities, set-purpose subsidies to cover the cost of investment required in scientific or development work, including the tasks resulting from multi annual programmes, in accordance with case-by-case decisions, aid to finance membership fees in international organisations and ministers' activities to support research, according to agreements - subsidies for: a) research projects, b) set-purpose projects, c) research supporting activities. Funds are allocated based on an application submitted to a Committee which evaluates if all the relevant requirements have been met. Prior to granting a subsidy for a research development unit in question, the Committee can ask a competent Minister for an opinion.
6. Cost items eligible for aid
Costs of: statutory activities in specific research units, implementing investment projects as required in scientific research and development work including those activities resulting from multi annual programmes, research projects, including those resulting from multi annual programmes,
20915/02 CONF-PL 96/02 57 (ANNEX I) EN implementing set-purpose project, scientific and technical co-operation with foreign partners in line with the provisions of inter-governmental agreements and · programmes or regulations implementing the agreements, research supporting activities.
7. Conditions of granting aid for operations According to cost calculation included in the application.
8. Amount of aid About PLN 220 million a year.
9. Aid duration period The Scientific Research Committee specifies the aid amounts annually.
10. Aid beneficiaries
Research and development units, including research institutes involved in agriculture and its related environment.
11. Aid granting institutions
The Scientific Research Committee
12. Cumulating of aid
Research and development entities can perform additional research tasks for which they may obtain fees according to contracts they conclude.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 58 (ANNEX I) EN XI. COMPENSATION FOR DAMAGE BY WILD ANIMALS
1. Compensation for damage by wild animals.
2. Legal basis for granting aid Act of 13.10.1995 on Hunting Law (J. o L. No 42, item 372 as amended later).
3.Purpose of aid Compensations for damages by wild animals protected all the year round (for e.g. elk).
4. Forms of aid A subsidy.
5. Criteria of eligibility for aid compensation is not payable to: 1) persons who granted farmland plots owned by the State Treasury and where they are located in designated forestry areas. 2) Owners of crops or agricultural produce that were damaged because they were harvested from fields within 14 days of the guideline harvest completion date set by a Voivod for each specific crop and region. 3) Owners of crops or agricultural produce that were damaged because they did not permit the hunting district lease holders or managers to construct facilities or perform operations that would have prevented this damage. 4) For the damages equivalent up 100 kg rye worth per 1 hectare under crop, 5) For damages to agricultural produce stored in piles, lofts or clamps adjoining woodland. 6) For crop damage where crop cultivation was conducted in a clear breach of agri-technical normal practices. 6. Cost items eligible for aid Damages to crops and agricultural produce. Excluding poultry and damage caused to farm animals by wolves.
7. Conditions of granting aid for operations
8. Amount of aid about PLN 100,000 per annum. 9. Aid duration period When the damage has been caused.
20915/02 CONF-PL 96/02 59 (ANNEX I) EN 10. Aid beneficiaries Farmers whose field crops or livestock (excluding poultry) were damaged by [wild] animals.
11. Aid granting institutions Hunting district lease holders or managers, The State Treasury, State Forestry Holdings, state forests companies, the Voivod.
12. Cumulating of aid Compensations for damage caused by wild animals do not exclude farm holdings from applying for other aid forms.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 60 (ANNEX I) EN XII. COMPENSATION FOR DAMAGE CAUSED BY PROTECTED SPECIES OF ANIMALS
1. Compensation for damage caused by protected species of animals
2. Legal basis for granting aid Act of 16.10.1991 on nature conservation (J. o L. No 114, item 492 as amended later). Regulation of Council of Ministers of 10 September, 1997 on the protected species of animals causing damage for which the State Treasury assumes liability (J. o L. of 1997, No 109, item 706).
3.Purpose of aid Compensation for damage caused by European bison, bears, beavers and wolves. Liability dos not include opportunity cost.
4. Forms of aid A subsidy
5. Criteria of eligibility for aid Damage caused to livestock, cultivated crops, orchards, fish ponds and forest.
6. Cost items eligible for aid Damage caused to livestock, cultivated crops, orchards, fish ponds and forest.
7. Conditions of granting aid for operations
8. Amount of aid About PLN 500,000 per annum.
9. Aid duration period When the damage has been caused.
10. Aid beneficiaries Owners of livestock, crop fields, orchards, fish ponds and forest where the damage was caused.
20915/02 CONF-PL 96/02 61 (ANNEX I) EN 11. Aid granting institutions Voivod competent in the area where the damage was caused. Compensations for damage caused by wild animals in an animal protection zone are financed from the funds of a national park.
12. Cumulating of aid Compensations for damages caused by animals under species protection do not exclude farm holdings from applying for other aid forms.
13. Territorial coverage National
20915/02 CONF-PL 96/02 62 (ANNEX I) EN XIII. AID FOR FARMLAND INCLUDED IN THE NATURE 2000 EUROPEAN ECOLOGICAL NETWORK 1. Aid for farmland included in the Nature 2000 European Ecological Network
2. Legal basis for granting aid EU regulations 3. Purpose of aid Compensation for the loss of farmers' income on grassland covered by the Nature 2000 European Ecological Network
4. Forms of aid A subsidy
5. Criteria of eligibility for aid
6. Cost items eligible for aid
7. Conditions of granting aid for operations
8. Amount of aid about PLN 10 million a year
9. Aid duration period Duration period of the Nature 2000 European Ecological Network programme.
10. Aid beneficiaries Farmers owning farmland included in Nature 2000 European Ecological Network programme.
11. Aid granting institutions
12. Cumulating of aid
13. Territorial coverage Areas covered by the Nature 2000 European Ecological Network.
20915/02 CONF-PL 96/02 63 (ANNEX I) EN XIV. SUBSIDIES FOR DIESEL
1. Aid for diesel fuel in the form of fuel coupons
2. Legal basis for granting aid
Art. 40 a- 40i of the Act of 8 January, 1993 on the value added and the excise tax (J. o L. No 11 z 1993 r., item 50 as amended later) and implementing regulations for that act.
3.Purpose of aid
To reduce purchase price of diesel used for agricultural production
4. Forms of aid
A subsidy in the form of diesel coupon
5. Criteria of eligibility for aid The farmers paying agricultural tax and with farming operations are eligible for the aid. Furthermore, they: have to own a least one agricultural tractor, do not have any outstanding agricultural tax to be paid.
6. Cost items eligible for aid
7. Conditions of granting aid for operations
The diesel coupon can be used to purchase diesel only for farming purposes.
8. Amount of aid
PLN 630 million
9. Aid duration period Aid is granted semi-annually in the periods 31st January and 31st July in any given year.
10. Aid beneficiaries
Those farmers paying agricultural tax and running farming operations, who: own a least one agricultural tractor, do not have any outstanding agricultural tax to be paid.
20915/02 CONF-PL 96/02 64 (ANNEX I) EN 11. Aid granting institutions Coupons are issued by co-operative banks according to certificates drawn up by village leaders, mayors (presidents).
12. Cumulating of aid
Benefiting from receiving fuel coupons does not exclude agricultural tax payers from applying for other state aid.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 65 (ANNEX I) EN XV. INVESTMENT ALLOWANCES AND AGRICULTURAL TAX EXEMPTIONS
1. Investment allowances and agricultural tax exemptions
2. Legal basis for granting aid Act of 15th November, 1984 on agricultural tax (J. o L. No 94 of 1993, item 431, as amended later)
3. Purpose of aid Reduction of fiscal charges for agricultural holdings. The first group includes those where specific investment projects have been completed, which will result in a temporary exemption from agricultural tax. The second group includes farm holdings fulfilling some other condition to benefit from statutory tax exemptions or allowances.
4. Forms of aid 1) Investment allowances in virtue of completed investment in livestock buildings and certain farm facilities, 2) Exemption from agricultural tax: 1) farmland classified as being V, VI and Viz grade, 2) land adjoining/bordering the road belt, 3) arable land, grassland and pastures where land reclamation work was conducted and crops destroyed due to work on drainage systems, 4) land with ownership or perpetual usufruct rights purchased with a view to establish a new farm holding or extend the existing one up to the hectarage of 100 ha. The same holds valid for land acquired for permanent management from State Land Fund and the Stock of Agricultural Property of the State Treasury to establish a new farm holding or extend the existing one up to the hectarage of 100 ha, 5) farmland recovered through the cultivation of scrub(idle) lands. Exemption is granted for 5 years from the first year following the cultivation completion, 6) land received following plots exchange or consolidation. Exemption is granted for a year following the one in which the plots exchange or consolidation occurred, 7) farmland where farming operations were terminated. Exemption is granted for up to 20% of arable land area on a given holding, but not more than 10 ha and the period up to 3 years, 3) Agricultural tax allowances are granted in mountainous and sub-mountainous areas, for the farm owners enrolled for regular or semi-military service and those farms owned by their family members.
20915/02 CONF-PL 96/02 66 (ANNEX I) EN 5. Criteria of eligibility for aid The tax payer is not entitled to deduct the investment allowance amount that has not been utilised should the buildings, constructions or facilities, for which the tax allowance was granted, be sold or be assigned some other use. If farmland is purchased from private farm owners, no exemption applies ifbuyer is the seller's spouse, relative in direct line, a step son or a step daughter, a son or a daughter in law. Tax allowance in virtue of land purchased from State Land Fund and the Stock of Agricultural Property of the State Treasury is not applicable if a buyer acquired the land in question under permanent management prior to the purchase.
6. Cost items eligible for aid
Payers of agricultural tax are entitled to investment allowance for the following expenses: 1) construction or refurbishment of livestock buildings and facilities to protect the environment, 2) the purchase and installation of: a) sprinklers, b) land reclamation and water supply facilities on the farm holding, c) equipment and facilities to use renewable energy sources for production purposes (wind, bio-gas, solar energy, water flow on slopes).
7. Conditions of granting aid for operations Agricultural tax is a fiscal charge.
8. Amount of aid Investment allowance are for the deduction of 25% of total investment outlays confirmed by invoices from the agricultural tax amount payable on the agricultural land located in the gmina (local administrative unit) of the investment location. As for agricultural tax payable by farm-owning soldiers in an active or semi-military service, a tax allowance of 60% applies. Tax allowance of 40% applies for those farms owned by soldiers' family members. Agricultural tax in mountainous and sub-mountainous areas is reduced 30% for land class I, 11, Ilia and Illb, and 60% for the land class IV a, IV and IVb. Should natural disaster occur and cause damage to buildings, agricultural produce, livestock, trees or other tangible assets of the farm holding, agricultural tax payers can obtain the agricultural tax allowance for a part or whole tax amount due, which can be neither calculated nor collected, depending on the scale of damages to the given farm holding.
20915/02 CONF-PL 96/02 67 (ANNEX I) EN The revenues of lqcal self-government authorities are reduced by about PLN 450 million in virtue of agricultural tax allowances and exemptions.
9. Aid duration period 1) Investment allowance is granted after investment completion. Tax allowance for an investment project can apply within a period up to 15 years. 2) Agricultural tax exemption is granted for: a) 5 years from the date of land purchase and permanent lease. Exemption periods begins on the first day of the month following that of land sales or permanent lease agreement conclusion, or that of acquiring land for permanent management. After the exemption period is over, agricultural tax allowance of 75% applies in the first year and, in the second year, a 50% tax allowance. b) 5 years from first cultivation completion if the farmland has been acquired thanks to the recultivation of idle land, c) for 1 year after the year when land consolidation or plots exchange occurred, d) up to 3 years if farming operations were terminated. Then no agricultural tax is payable for up to 20% of total farmland area on a given farm holding, (but not more than 10 ha). e) exemption is permanent for farmland class V and VI. 3) For farm-owning soldiers in active or semi-military service and the farms owned by their family members, tax allowances, apply from the first day of the month following one of their enrolling in active military service. The allowance applies until the end of the month of their release from military service. 4) In case of a natural disaster, tax allowance is granted for the year it occurred. If the tax was paid before the disaster occurred, the allowance is applicable in the next fiscal year.
10. Aid beneficiaries Agricultural tax payers.
11. Aid granting institutions Village leader, mayor (president of a town).
12. Cumulating of aid Agricultural tax allowances or exemptions do not exclude those tax payers from applying for other state aid.
13. Territorial coverage National
20915/02 CONF-PL 96/02 68 (ANNEX I) EN XVI. EXEMPTIONS FROM REALPROPERTY TAX
1. Exemptions from real property tax.
2. Legal basis for granting aid Act of 15th November, 1984 on agricultural tax (J. o L. No 94 of 1993, item 431, as amended later)
3. Purpose of aid Reduced fiscal charges for farm holdings and agricultural producer groups.
4. Forms of aid Exemptions from real property tax apply to: 1) livestock buildings or their parts used for forestry operations, or those used for specialist agricultural production enterprises, as well as farm buildings on a farm holding (as defined by relevant law provisions on agricultural tax), if involved in agricultural production, 2) if built from new or refurbished, buildings and constructions used for business operations by a group of producers performing statutory activities after the groups' registration- for 5 years from the date of entering a producer group in the register, 3) part (up to 5 rooms) of a residential property located in a rural area that is used for the accommodation of holiday makers on a commercial basis. The Gmina Board may decide on some other real property tax exemptions (for e.g. a farmer's dwelling house.
5. Criteria of eligibility for aid Exemption based on relevant law, provisions or decisions of the Gmina Board.
6. Cost items eligible for aid
7. Conditions of granting aid for operations Real property tax is a fiscal charge.
8. Amount of aid The revenues of local self-government authorities are reduced by about PLN 400 million in virtue of real property tax allowances and exemptions.
20915/02 CONF-PL 96/02 69 (ANNEX I) EN 9. Aid duration period Statutory exemption is permanent, Decisions of gmina board apply for a fiscal year in question.
10. Aid beneficiaries Farmers and agricultural producer groups.
11. Aid granting institutions Village leader, mayor (president).
12. Cumulating of aid Real property tax allowances or exemptions do not exclude the tax payers from applying for other state aid.
13. Territorial coverage National.
20915/02 CONF-PL 96/02 70 (ANNEX I) EN ANNEXII
LIST OF PROGRAMMES TO BE IMPLEMENTED FOLLOWING ACCESSION IN THE TRANSITIONAL PERIOD
I. PAYMENTS OF INTEREST ON CREDITS FOR THE PURCHASE OF AGRICULTURAL INPUTS AND FOR THE PROCUREMENT AND STORAGE OF AGRICULTURAL PRODUCE
1. Payments of interest on credits for the purchase of agricultural inputs.
2. Legal basis for granting aid
Law of 5 January1995 on payments to interest rate on certain bank credits (Dz.U. [OJ] No13, item 60 as amended subsequently), Regulation of the Council of Ministers of 21 February 1995 laying down detailed rules, the scope and mode of granting payments to interest on credits for agricultural purposes, (Dz.U. No19, item 92 as amended subsequently) Regulation of the Council ofMinisters of30 Jan. 1996laying down detailed activities of the Agency for Restructuring and Modernisation of Agriculture and ways of their pursuance (Dz.U. No 16, item 82 as amended subsequently)
3. Purpose of aid
To reduce the costs of servicing credit for the purchase of agricultural inputs.
4. Aid forms Payment of interest on bank credits.
5. Eligibility criteria for aid Farmers are eligible for one-year working capital credit (to purchase mineral fertilisers, plant protection substances, fuel, certified seed, breeding animals) on the condition that: 1) they provide documentation within two months from obtaining funds from a bank accompanied by V AT invoices, simplified bills relating to purchases or other sale-purchase receipts showing that they used at least 80% of the credit value, 2) they present the order to pay agricultural tax, specifying the agricultural area utilised on a farm or a certificate from the gmina [commune] office appropriate for the collection of agricultural tax specifying the hectares of utilised agricultural area on a farm and a borrower's declaration that the utilised agricultural area mentioned in the order or in the certificate has not and will not be leased in the period for which the payment will be granted, 3) they present their lease contract for a period of at least 10 months, including 8 months in the period for which the payment will be granted in the case of land lease and in case of utilisation ofland without a regulated ownership status.- a relevant attestation from the gmina office,
20915/02 CONF-PL 96/02 71 (ANNEXII) EN 4) borroWers make a declaration of the amount of credit, subject to aid, taken from other banks, 5) payments of credit for environmental purposes are provided for domestic establishments which are involved in agricultural production and which have conformity certificates or attestation that they use organic methods of production, issued by the Association of Food Producers by Organic Methods, EKOLAND.
6. Cost items eligible for aid:
1) purchases of mineral fertilisers, plant protection agents and animal feeds, 2) purchases of certified seed of cereals, rapeseed, maize, flax, pulse crops: fine-grained and coarse-grained, winter turnip-like rape, mustard, grasses, sugar beets and fodder beets, seed potatoes, vegetable seeds and new nursery material for new plantings and renovation, 3) purchases of breeding heifers, gilts, ewes, female goats and semen sires of; bulls, boars, rams, goats and stallions excluding purchases for export, 4) purchase of bee queens for use and reproduction purposes, 5) purchase of working capital goods for the production of organic food and farm adaptation to such production, 6) fuel purchases for agricultural purposes.
7. Conditions of granting aid for operations Payments relate exclusively to credit for purchases of agricultural inputs. The provided credit does not exceed per hectare the equivalent procurement price of 1 tonne of rye.
8. 8. Amount of aid Ca: 200 million PLN of aid annually.
9. Aid durati~n period Credits will be granted until the end of 2004. The Financial obligations of credits granted by the end of 2004 will be realised by the end of 2005.
10. Aid beneficiaries Establishments involved in agricultural production.
11. Aid granting institutions
Agency for Restructuring and Modernisation of Agriculture (from funds transferred to this end by the Minister competent for agricultural matters and supplemented by Agency's own funds as necessary)
12. Accumulation of aid
The granting of payments of interest on credits for purchases of agricultural inputs does not exclude agricultural producers from benefiting from other forms of aid.
13. Territorial coverage of aid
National
20915/02 CONF-PL 96/02 72 (ANNEXII) EN 11. PAYMENTS OF INTEREST ON CREDITS FOR THE PROCUREMENT AND STORAGE OF AGRICULTURAL PRODUCE
1. Payments to interest rate on credits for the procurement and storage of agricultural produce.
2. Legal basis for granting aid
Law of 5 January1995 on payments to interest rate on certain banking credit (Dz.U. [OJ] No13, item 60 as amended subsequently), Regulation of the Council of Ministers of 21 February 1995 laying down detailed rules, the scope and mode of granting payments to interest on credits for agricultural purposes, (Dz.U. No19, item 92 as amended subsequently) Regulation of the Council ofMinisters of30 Jan. 1996laying down detailed activities of the Agency for Restructuring and Modernisation of Agriculture and ways of their pursuance (Dz.U. No 16, item 82 as amended subsequently)
3. Purpose of aid To reduce the costs of servicing credit for procurement and storage of agricultural produce.
4. Aid forms Payment of interest on bank credit.
5. Eligibility criteria for aid Payments of interest are granted on credits contracted by establishments involved in: 1) procurement from domestic producers and storage of domestically produced seed on the condition that: a) they are authorised to reproduce or market seed and seed potatoes and b) they perform tasks related to technological preparation of seed and seed potatoes; 2) buying-in and storage on condition that: a) they are involved in food or pharmaceutical processing of agricultural produce procured and used in processing ofbast fibres or b) they are engaged in storage of procured agricultural produce for food or pharmaceutical processing purposes and have, for cereals and rapeseed, storage facilities certified by the Inspection of Agricultural Products Purchase and Processing. Where an establishment complies with one of the above mentioned conditions and does not have its own procurement, processing or storage capacity to perform business operations it is involved in, it may commission another establishment with appropriate capacity to perform such activities. Only the commissioning establishment is eligible for payment. The above mentioned establishments may benefit from aid on condition that: 1) they offer, in case they procure agricultural produce for which a mlllliD.um price is determined by the Council of Ministers, a price not lower than such minimum price, 2) they pay amounts due to suppliers on dates specified in contracts with suppliers or within a period not exceeding 14 days from the day of product receipt from a supplier.
20915/02 CONF-PL 96/02 73 (ANNEX H) EN 6. Cost items eligible for aid: 1) costs of procurement and storage of seeds of cereals, rapeseed, maize, flax, pulse crops: fine-grained and coarse-grained, winter turnip-like rape, mustard, grasses, sugar beets and fodder beets, seed potatoes and vegetable seeds 2) costs of procurement and storage of cereals, rapeseed, sugar beets and sugar, potatoes, natural and processed potato starch, dried potatoes, starch and dextrin potato glues, herbs and dried herbs, fruit and vegetables, semi-finished and processed fruit and vegetable products, straw and bast fibres and seeds of flax and root chicory, dried chicory, mustard, excluding alcohol products and raw materials for production of alcohol products.
7. Conditions of granting aid for operations Payments relate exclusively to credit for current expenses.
8. Amount of aid Ca 250 million PLN.
9. Aid duration period Credits will be subsidised until the end of 2004 (payments of interest on credits granted in 2004 will have to be continued in 2005).
10. Aid beneficiaries Establishments involved in the procurement and storage of agricultural produce or in processing for food and pharmaceutical purposes of agricultural produce bought in and in processing of bast fibres.
11. Aid granting institutions
Agency for Restructuring and Modernisation of Agriculture (from funds transferred to this end by the Minister competent for agricultural matters and supplemented by Agency's own funds as necessary)
12. Accumulation of aid The granting of payments of interest on credits for procurement and storage of agricultural produce does not exclude agricultural producers from benefiting from other forms of aid
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 74 (ANNEX H) EN Ill. PAYMENTS OF INTEREST ON CREDIT FOR THE PURCHASE AND STORAGE OF SEASONAL SURPLUSES
1. Payments of interest on credits for purchase and storage of seasonal surpluses
2. Legal basis for grpnting aid
Law of5 January 1995 on payments to interest on certain banking credits (Dz.U. [OJ] No13, item 60 as amended subsequently), Regulation of the Council of Ministers of 21 February 1995 laying down detailed rules, the scope and mode of granting payments to interest on credits for agricultural purposes, (Dz.U. Nol9, item 92 as amended subsequently)
3. Purpose of aid To reduce costs of servicing credit for the purchase and storage of seasonal surpluses.
4.Aid forms Payment of interest rate on bank credits.
5. Eligibility criteria for aid Payments to interest are granted for credits taken by establishments after consulting the Agricultural Market Agency.
6. Cost items eligible for aid: Storage costs or purchase and storage of seasonal surpluses of milk powder, butter, hard cheeses, pig half-carcasses and honey produced domestically.
7. Conditions of granting aid for operations Credit relates exclusively to current expenses.
8. Amount of aid Ca 2 million PLN annually.
9. Aid duration period Credits will be granted until the date of accession. In the first year following accession payments of credits granted to the accession date will be continued.
10. Aid beneficiaries Establishments involved in the production of milk powder, butter, hard cheeses, pig half carcasses and honey.
11. Aid granting institutions
Agency for Restructuring and Modernisation of Agriculture (from funds transferred to this end by the Minister competent for agricultural matters). 20915/02 CONF-PL 96/02 75 (ANNEXII) EN 12. Accumulation of aid The granting of payments of interest on credits for purchase and storage of seasonal surpluses does not exclude agricultural producers from benefiting from other forms of aid.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 76 (ANNEXII) EN IV. SUBSIDIES FOR THE ADVANCEMENT OF PLANT PRODUCTION
1. Subsidies for the advancement of plant production.
2. Legal basis for granting aid
Article 72, item 5 of the Law of26 November1998 on public finance (Dz.U. No155, item 1014 as amended subsequently), the budget bill for a given year laying down amounts and object of subsidy, Regulation of the Minister of Agriculture and Rural Development of 22 May 2002 laying down subsidies for particular establishments performing these tasks for the agricultural sector (Dz.U. No 65, item 595)
3. Purpose of aid To reduce costs of technological advancement in plant production.
4. Aid forms eo-financing the costs of activities related to plant breeding.
5. Eligibility criteria for aid 1) The subsidy to eo-finance activities related to arable and horticultural crops breeding may be granted to an establishment: that presents a plant breeding programme for particular plant species, whose plant breeding programme obtains the largest number of convertible points. 2) The subsidy to eo-finance these activities related to the production of the initial material for plant breeding may be granted to an establishment that produces the such initial material for plant breeding after this activity is approved by the Minister competent for agricultural matters. On approving the activity, the needs of breeders involved in creative breeding and the opinion of breeders' representatives are taken into account. 3) The subsidy to eo-finance the costs of keeping seed orchards, elite orchards and plantations may be granted to an establishment which will document that the seed orchard, the elite orchard and where the plantation will have obtained a certification attestation from the Voivodship Inspectorate of Plant Protection and Seed Inspection appropriate for establishment location. 4) The subsidy to eo-finance the costs of obtaining and keeping nursery initial material of fruit trees, free and in the process of being freed of viral diseases, may be granted to establishments obtaining and keeping nursery material free of viral diseases after confirmation by biological tests. 5) The subsidy to eo-finance the costs of plant gene resources protection may be granted to an establishment that is engaged in gene protection, confirmed by the Institute of Plant Breeding and Acclimatisation. To obtain the subsidy, it is necessary to submit an application to the Minister competent for agricultural matters.
20915/02 CONF-PL 96/02 77 (ANNEX H) EN 6. Cost items eligible for aid: Costs of for the advancement of plant production, constituting an additional payment to the services calculated according to unit rates.
7. Conditions of granting aid for operations The eo-financing covers running costs only.
8. Amount of aid Ca 40 million PLN annually.
9. Aid duration period It is envisaged that subsidies will be paid to establishments performing those activities related to plant breeding until Poland obtains direct payments at a level of 100%.
10. Aid beneficiaries Establishments performing activities related to: 1) arable and horticultural crop breeding, 2) production of basic material for plant breeding, 3) cultivation of seed orchards, elite orchards and plantations, 4) obtaining and keeping nursery basic material of fruit trees free and in the process of being freed of viral diseases, 5) protection of plant gene resources
11. Aid granting institutions Minister of Agriculture and Rural Development.
12. Accumulation of aid
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 78 (ANNEX H) EN V. SUBSIDIES FOR CERTIFIED SEED
1. Subsidies for certified seed.
2. Legal basis for granting aid
Article 72, item 5 of the Law of26 November 1998 on public finance (Dz.U. No155, item 1014 as amended subsequently), the budget bill for a given year laying down amounts and the object of subsidy, Regulation of the Minister of Agriculture and Rural Development of 22 May 2002 laying down subsidies for particular establishments performing tasks for the agricultural sector (Dz.U. No 65, item 595)
3. Purpose of aid To lower the price of: 1) sale of certified seed used for sowing or planting on a farm owned by the buyer, 2) sale of certified seed for further propagation of this seed, 3) purchase of certified seeds intended for further propagation of this seed on the farm owned, if: a) the purchase price has not been reduced by the subsidy referred to under paragraph 2, b) untreated seed material was purchased and it was subject to treatment before sowing.
4. Aid forms A discount price for purchases of certified seed.
5. Eligibility criteria for aid Where an establishment gives up the reproduction of seed or the plantation is withdrawn from official certification, the discount is subject to reimbursement. The discount can be granted to the produced seed of Polish and foreign varieties entered in the cultivar register, excluding Polish varieties intended for growing abroad only. The discount may be granted on condition that its amount is listed on the invoice or bills made out for the purchaser. The discount cannot be given for certified seed for sowing or planting sold between companies in which the same persons have shares or stock or between the companies or persons, where the material for sowing or planting was produced by these companies or persons, and for the seed material sold to the producer from whom it was purchased earlier. The discount is granted based on the application for discount, including the copy of seed sale receipt or a Xerox copy of the invoice or bill certified by an authorised officer of the Voivodship Inspectorate of Plant Protection and Seed Inspection that it is in conformity with the original document. Applications for discounts are drawn up separately for each plant species with the breakdown of seed material intended for sowing or planting and for reproduction.
20915/02 CONF-PL 96/02 79 (ANNEX H) EN 6. Cost items eligible for aid The discount is granted according to the rates determined annually by the Minister of Agriculture and Rural Development by way of a regulation.
7. Conditions of granting aid for operations The eo-financing covers running costs only.
8. Amount of aid Ca 40 million PLN annually.
9. Aid duration period It is envisaged that discount prices for the purchase of certified seed will be applied until Poland obtains direct payments at a level of 100%.
10. Aid beneficiaries Establishments authorised to market seed material.
11. Aid granting institutions
Chief Inspector of Plant Protection and Seeds from funds transferred by the Minister competent for agricultural matters.
12. Accumulation of aid
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 80 (ANNEX Il) EN VI. PAYMENTS TO PROCUREMENT PRICES OF EXTRA GRADE MILK
1. Payments to procurement prices of extra grade milk
2. Legal basis for granting aid Law of 6 September 2001 on the market in milk and milk products (Dz.U. No129, item 1446 as amended subsequently).
3. Purpose of aid To increase the profitability of extra grade milk production.
4. Aid forms Payments added to extra grade milk price sold to collection centres.
5. Eligibility criteria for aid Payments are granted on condition that: - the sold extra grade milk is of the standard quality compliant with the Polish Norm, - the collection centre transmits the list of wholesale suppliers to the Agency for Restructuring and Modernisation of Agriculture within two weeks after the lapse of the month for which payments are eligible.
6. Cost items eligible for aid not applicable
7. Conditions of granting aid for operations not applicable
8. Amount of aid 420 million PLN annually.
9. Aid duration period Payments will be made until mid-2005 at rates determined annually by the Council of Ministers by way of a regulation.
10. Aid beneficiaries Milk producers.
11. Aid granting institutions Agency for Restructuring and Modernisation of Agriculture
12. Accumulation of aid The granting of payments for procurement prices of milk does not exclude agricultural producers from benefiting from other forms of aid.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 81 (ANNEX H) EN VII. EARLY RETIREMENT FOR FARMERS
1. Early retirement for farmers
2. Legal basis for granting aid
Law of26 April2001 on early retirement in agriculture (Dz.U. No 52, item 596 as amended subsequently).
3. Purpose of aid To accelerate the transformations of the agrarian structure.
4. Aid forms Early retirement pensions.
5. Eligibility criteria for aid A farmer has the right to early retirement, if he complies with all the following conditions: 1) he has completed 55 years of age for women or has completed 60 years, but is still below 65 years of age for a man, 2) has been covered by an old age/disability insurance as provided for in the regulations on farmers' social insurance throughout the period required to obtain an agricultural pension on completion 55 years of age for a woman or 60 years for a man, 3) has been continuously involved in farming throughout the period of 10 years directly preceding the submission of an application for an early retirement pension and farming was the only or main source of income, 4) ceased farming.
6. Cost items eligible for aid: not applicable
7. Conditions of granting aid for operations not applicable
8. Amount of aid 40 million PLN annually
9. Aid duration period Following accession, early retirement pensions will be paid solely to those who acquired the right prior to the accession date.
10. Aid beneficiaries Farmers who have acquired the right to early retirement.
20915/02 CONF-PL 96/02 82 (ANNEXII) EN 11. Aid granting institutions Agricultural Social Insurance Fund.
12. Accumulation of aid Farmers receiving early retirement pensions do not benefit from other forms of aid envisaged in agriculture.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 83 (ANNEX H) EN IX. AFFORESTATION OF AGRICULTURAL LAND OF QUALITY CLASS 5 AND 6
1. Afforestation of agricultural land of quality class 5 and 6.
2. Legal basis for granting aid
Law of8 June 2001 on setting aside agricultural land for afforestation (Dz.U. No 73, item 764),
3. Purpose of aid
To enhance afforestation of the country and to exclude land oflow quality class from agricultural production.
4. Aid forms An equivalent for excluding land from agricultural production and for forestry.
5. Eligibility criteria for aid Agricultural land which forms part or the whole of an agricultural holding may be set aside for afforestation, if it complies with at least one ofthe following conditions: 1) land of quality class 5 or 6, 2) land situated on the slope with an average inclination over 15%, 3) periodically flooded land, 4) degraded land. The total area of land set aside for afforestation cannot be less than 0.4 ha and cannot be more than 30 ha, the minimum area being at least 0.1 ha. In addition, the total area of land set aside for afforestation includes land that belongs to the maximum of three agricultural holdings on condition that there is a common border between the two parcels, constituting the land set aside for afforestation, which are owned by separate agricultural holdings. The land owner can submit an application in writing to the starosta, [county administrator] appropriate for the land location, to obtain consent to utilise agricultural land for afforestation purposes, containing: 1) a list of the area of land, including quality classes, 2) excerpts from the land register along with maps containing plot numbers and location thereof, 3) envisaged dates of afforestation commencement and completion.
6. Cost items eligible for aid not applicable
7. Conditions of granting aid for operations not applicable
8. Amount of aid 26 million PLN annually
20915/02 CONF-PL 96/02 84 (ANNEXII) EN 9. Aid duration period Following accession, payments will be only made to those who acquired the right prior to accession for the eligible period, i.e. 20 years.
10. Aid beneficiaries Fanners who have acquired the right for payments for excluding land from agricultural production and growing forest.
11. Aid granting institutions Agency for Restructuring and Modernisation of Agriculture.
12. Accumulation of aid Fanners that receive the payments may benefit from other forms of aid envisaged for agriculture if they grow other crops or raise and breed animals.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 85 (ANNEX Il) EN X. AID FOR AGRICULTURAL PRODUCERS GROUPS
1. Aid for agricultural producer groups.
2. Legal basis for granting aid
Law of 15 September 2000 on agricultural producers' groups and associations thereof and amending other laws (Dz.U. No 88, item 983), Law of 29 November 2000 on the organisation of the market in fruit and vegetables, the hops market, the tobacco market and the dried fodder market (Dz.U. of2001 No 3, item 19).
3. Purpose of aid To support operations.
4. Aid forms Grants to set up and support administrative activities of agricultural producer groups within the first five years from the date of the issuing of an administrative decision with regard to the group's compliance with the conditions to obtain such aid. Groups of fruit and vegetable producers entered in the register of initially recognised producers' groups may obtain aid to fmance those expenditures related to the registration and equipment of the groups with technical facilities. Groups of fruit and vegetable producers entered in the register of recognised producers' groups can apply for aid to create an operational fund and for compensation for losses due to non-marketing of products by the group.
5. Eligibility criteria for aid The financial aid is granted on the basis of the group's application. The group submits the application to the Agency for Restructuring and Modernisation of Agriculture. The following documents are attached to the application: 1) an administrative decision, 2) an extract from the court register, 3) an action plan for the given year, conforming to the plan, 4) a groups' declaration of the planned sales of products produced on members' farms, 5) a groups' declaration of the planned costs of setting up the group and of its administrative activities. The financial aid from public funds granted to groups is subject to reimbursement in whole or in part in the event of each misuse of such aid.
6. Cost items eligible for aid Costs of setting up a group, expenses related to its registration and its equiping with technical facilities, costs of administration activities, costs related to non-marketing of products by the group and the creation of an operational fund.
7. Conditions of granting aid for operations
20915/02 CONF-PL 96/02 86 (ANNEX H) EN 8. Amount of aid 10 million PLN annually
9. Aid duration period Up to five years.
10. Aid beneficiaries Registered agricultural producers' groups, groups of fruit and vegetable producers.
11. Aid granting institutions Agency for Restructuring and Modernisation of Agriculture
12. Accumulation of aid Agricultural producers' groups may simultaneously benefit from the aid in the form of payments of interest on investment credits and exemption from the property tax on newly constructed or modernised buildings and constructions.
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 87 (ANNEX H) EN XI. PAYMENTS OF INTEREST ON CREDITS THAT CREATE NEW JOBS FOR INHABITANTS OF RURAL AREAS
1. Payments of interest on credit that create new jobs for inhabitants of rural areas.
2. Legal basis for granting aid
Law of 29 December 1993 establishing the Agency for Restructuring and Modernisation of Agriculture (Dz.U. of 1994 Nol, item 2 as amended subsequently), Regulation of the Council of Ministers of30 January 1996laying down detailed activities of the Agency for Restructuring and Modernisation of Agriculture and ways of their pursuance (Dz.U. No 16, item 82 as amended subsequently)
3. Purpose of aid The aid is aimed at supporting the creation of new jobs for inhabitants of rural areas.
4. Aid forms Payment of interest on bank credits.
5. Eligibility criteria for aid The amount of the preferential credit cannot exceed 60% of investment outlays on undertakings, no more than 4 million PLN and no more than 25000 PLN per one new job. The condition to obtain payments of interest on credits is, in particular, the borrower's presentation of the undertakings' plan having received a favourable opinion from one of the agricultural advisory services centres appropriately located in the relevant region.
6. Cost items eligible for aid: Credit may be allocated for use in: the purchase, modernisation, adaptation, construction and extension of establishments involved in off-farm activities, the completion of a started investment, purchase of agricultural property with or without buildings, purchase and assembly of machinery, equipment and tools, purchase of means of transport, excluding motor-cars.
7. Conditions of granting aid for operations Credit pertains to investment expenditure only.
8. Amount of aid The Agency for Restructuring and Modernisation of Agriculture spends about 25 million PLN annually on payments to interest on credits to create new jobs for inhabitants of rural areas.
20915/02 CONF-PL 96/02 88 (ANNEX H) EN 9. Aid duration peri.od Payments of interest on bank credits are granted for the maximum period of 6 years. Credit will be provided until the accession date. Following accession, payments to previously granted preferential credits will be continued.
10. Aid beneficiaries Individuals embarking m1 or running off-farm businesses on the territory of rural and rural urban gminas.
11. Aid granting institutions Agency for Restructuring and Modernisation of Agriculture
12. Accumulation of aid
13. Territorial coverage of aid National
20915/02 CONF-PL 96/02 89 (ANNEX H) EN XII. PAYMENTS OF INTEREST ON CREDIT TO START OR INCREASE PRODUCTION IN ALREADY OWNED PRODUCTION FACILITIES
1. Payments of interest on credits for undertakings in agriculture and on specialist agricultural enterprises aimed at utilising the existing production facilities of agricultural holdings and specialist agricultural enterprises by starting or increasing production on these farms and on specialist agricultural enterprises.
2. Legal basis for granting aid
Law of 29 December 1993 establishing the Agency for Restructuring and Modernisation of Agriculture (Dz.U. of 1994 No 1, item 2 as amended subsequently), Regulation of the Council of Ministers of 3 0 Jan. 1996 laying down detailed activities of the Agency for Restructuring and Modernisation of Agriculture and ways of their pursuance (Dz.U. No 16, item 82 as amended subsequently)
3. Purpose of aid The aid aimed at utilising production facilities owned for production purposes.
4. Aid forms Payment of interest on bank credits
5. Eligibility criteria for aid The amount of the preferential credit cannot exceed 80% of the investment outlays on undertakings in agricultural holdings, no more than 2 million PLN and no more than 70% of outlays, and 4 million PLN in special agricultural enterprises. The condition to obtain preferential interest on credit is, in particular, the borrower's presentation of the undertakings'' plan having received a favourable opinion of an agricultural advisory services centre appropriate to the location.
6. Cost items eligible for aid: Credit may be allocated for use for: purchase of machinery, equipment and tools including assembly, technical equipment of buildings and constructions used in specialist agricultural enterprises and for the purchase of the initial stock, purchase of farm animals, feed concentrates, certified seeds, fuel for crops grown in glasshouses and plastic covered greenhouses and other production outlays.
7. Conditions of granting aid for operations The value of indispensable material outlays to launch the first production cycle cannot be more than 50% of the credit amount.
8. Amount of aid The Agency for Restructuring and Modernisation of Agriculture spends ea 0.5 million PLN annually on payments to interest on credits to start or increase production in existing owned production facilities.
20915/02 CONF-PL 96/02 90 (ANNEX H) EN 9. Aid duration period Payments to interest on bank credit are provided for a period of 3 years, except for credits to start or increase milk production for which a maximum credit period is 4 years. Credit will be provided until the accession date. Following accession, payments to previously granted preferential credits will continue to be applied.
10. Aid beneficiaries Individuals embarking on or involved in farming.
11. Aid granting institutions Agency for Restructuring and Modernisation of Agriculture.
12. Accumulation of aid Borrowers - agricultural producers may benefit from other forms of state aid.
13. Territorial coverage of aid National.
20915/02 CONF-PL 96/02 91 (ANNEXII) EN Xlll. SUBSIDISIED INTEREST FOR BANK LOANS FOR THE BUYING-IN AND .STORING OF THE SEA FISH STOCK
1. Subsidised interest for bank loans for the buying-in and storing of the sea fish stock
2. Legal basis for granting aid
Act of5.01.1995 on subsidising interest on some bank credits (J. o L. No 13, item 60 as amended later), Council of Ministers Regulation of the 21 March, 1995 on the detailed rules concerning the scope and procedure for granting interest subsidies on loans for the buying -in and storing of sea fish stock. (J. o L., No 34, item 167 as amended later).
3. Purpose of aid Reducing the cost of servicing a loan for the buying-in and storing of the sea fish stock.
4. Forms of aid Subsidies for the interest on bank credit.
5. Eligibility criteria for aid
Subsidies for the interest on credit are granted to entrepreneurs residing or having their registered business seats in Poland. The subsidies are granted for the buying-in or storing of the sea fish catch/stock purchased in the sea by the ship owners residing or having their principal business seats in Poland. As specified above, the entrepreneurs are eligible to obtain subsidies for interest on loans provided that a borrower furnishes a document: 1) Proving that the fish was transferred onto a cargo carrying ship, or 2) Fish was purchased, or 3) To prove that the fish transferred as cargo was the applicant's own catch.
6. Cost items eligible for aid
Cost ofbuying-in and storing the sea fish.
7. Conditions of granting aid for operations
Subsidies can be granted for working capital credit only.
8. Amount of aid
About PLN 1,5 million
20915/02 CONF-PL 96/02 92 (ANNEX H) EN 9. Aid duration period
Loans are going to be granted till the end of 2004 (interest subsidies on loans granted in 2004 will have to be provided still in 2005).
10. Aid beneficiaries
Entrepreneurs residing or having their registered business seats in Poland who deal in the purchasing and storing of the sea fish they caught or bought in the sea, as well as the ship owners residing or having their principal business seats in Poland.
11. Aid granting institutions
Agency for the Restructuring and Modernising of Agriculture (from funds earmarked for that purpose by the Minister of Agriculture).
12. Cumulating of aid Entrepreneurs who have been granted subsidies for interest on loans for the buying-in and storing of sea fish stock are still eligible for other aid forms.
13. Territorial coverage of aid Whole country
20915/02 CONF-PL 96/02 93 (ANNEX H) EN