
Article 1 
Regulation (EC) No 1973/2004 is amended as follows:

1.. Article 3(c) is replaced by the following:
'
((c)) by 31 July of the following year at the latest, after, where applicable, the deduction of the reductions in area provided for in Chapter I of Title IV of Regulation (EC) No 796/2004, the final data corresponding to the following:

((i)) the areas or quantities referred to in point (a) for which the aid has actually been paid for the year concerned;
((ii)) the quantities expressed in starch equivalent in the case of the aid for starch potato provided for in Article 93 of Regulation (EC) No 1782/2003 for which the aid has actually been paid for the year concerned;
((iii)) the quantities of sugar under quota obtained from sugar beet or cane delivered under contract in the case of aid for sugar beet and cane producers provided for in Chapter 10f of Title IV of Regulation (EC) No 1782/2003, for which aid has actually been paid for the year concerned.';
2.. in Article 23, the following point is added:
'
((c)) “collector” means any person concluding a contract with an applicant as referred to in Article 26, who purchases on his own account raw materials referred to in Article 24 and intended for the uses provided for in the second paragraph of Article 88 of Regulation (EC) No 1782/2003.';
3.. Article 24 is amended as follows:

((a)) in paragraph 1, the first subparagraph is replaced by the following:
'Any agricultural raw material may be grown on the areas covered by the aid provided for in Article 88 of Regulation (EC) No 1782/2003 provided that they are intended primarily for use in the production of the energy products referred to in the second paragraph of that Article.';
((b)) paragraph 3 is amended as follows:

((i)) the first subparagraph is replaced by the following:
'Applicants shall deliver all raw materials harvested to a collector or first processor who shall take delivery of them and ensure that an equivalent quantity of such raw materials is used within the Community for the manufacture of one or more energy products as referred to in the second paragraph of Article 88 of Regulation (EC) No 1782/2003.';
((ii)) the third subparagraph is replaced by the following:
'In the case referred to in the second subparagraph, or where the collector sells an equivalent quantity of the raw material harvested, the first processor or the collector shall so inform the competent authority with whom the security is lodged. Where such equivalent quantity is used in a Member State other than that in which the raw material is harvested, the competent authorities of the Member States concerned shall inform each other of the details of such transaction.';
((c)) paragraph 4 is replaced by the following:
'
4. In accordance with the national provisions governing contractual relations, the first processor may delegate to a third party the collection of the raw material from the farmer applying for the aid. The processor remains solely responsible with regard to the obligations laid down by this Chapter.';
4.. Article 26 is amended as follows:

((a)) paragraph 1 is replaced by the following:
'
1. In support of their aid applications, applicants shall submit to their competent authorities the contracts they have concluded with a collector or first processor.However, Member States may decide that the contract may only be concluded between an applicant and a first processor.';
((b)) paragraph 3 is replaced by the following:
'
3. Applicants shall ensure that the contracts are concluded in time to allow collectors or first processors to deposit a copy with their competent authorities within the time-limits laid down in Article 34(1).';
5.. Article 29 is amended as follows:

((a)) the first paragraph is replaced by the following:
'Without prejudice to Article 27, collectors or first processors may alter the intended primary end uses of raw materials, as referred to in Article 26(2)(f), once the raw materials under contract have been delivered to them and once the conditions laid down in Article 31(1) and in the first subparagraph of Article 34(3) have been fulfilled.';
((b)) the third paragraph is replaced by the following:
'The collectors or first processors shall give prior notice to their competent authorities with a view to the requisite controls.';
6.. in Article 31(2), the first subparagraph is replaced by the following:
'The actual quantities to be delivered by the applicants to the collectors or first processors shall at least correspond to the representative yield.';
7.. in Article 32, paragraph 1 is amended as follows:

((a)) the introductory terms are replaced by the following:
'The aid may be paid to applicants before the raw material is processed. However, such payments shall be made only where the requisite quantities of raw materials pursuant to this Chapter have been delivered to the collector or first processor and where:';
((b)) point (b) is replaced by the following:
'
((b)) a copy of the contract has been deposited with the collector’s or first processor's competent authority in accordance with Article 34(1) and the conditions provided for in Article 24(1) have been fulfilled;'
8.. in Chapter 8, the heading of Section 6 is replaced by the following:
'
SECTION 6'
9.. Article 33 is replaced by the following:
'
Article 33 
Energy products shall be obtained at the most by a third successive processor';
10.. Article 34 is amended as follows:

((a)) paragraph 1 is replaced by the following:
'
1. Collectors or first processors shall deposit a copy of the contract with their competent authorities under a timetable to be established by the Member State concerned and no later than the closing date for the submission of aid applications for the year in question in the Member State concerned.Where applicants and collectors or first processors amend or terminate contracts prior to the date referred to in Article 27 in a given year, the collectors or first processors shall deposit with their competent authorities a copy of the amended or terminated contract, no later than that date.'
((b)) paragraph 3 is replaced by the following:
'
3. Collectors or first processors who have taken over the raw materials from applicants shall inform their competent authorities of the quantities of raw materials received, specifying the species, the name and address of the party to the contract who delivered the raw materials, the place of delivery and the contract reference, within a time-limit to be set by the Member States that allows the payments to be made within the period specified in Article 28 of Regulation (EC) No 1782/2003.Where the Member State of the collector or first processor is not the same Member State in which the raw materials have been grown, the competent authorities concerned shall inform the competent authority of the applicant of the total quantities of raw materials delivered, within 40 working days of receipt of the information referred to in the first subparagraph.';
11.. Article 35 is amended as follows:

((a)) the title is replaced by the following:
'Article 35 Collectors and first processors';
((b)) paragraphs 1 and 2 are replaced by the following:
'
1. Collectors or first processors shall lodge a full security as provided for in paragraph 2 with their competent authorities by the closing date for submission of payment applications for the year in question in the Member State concerned.
2. The securities to be lodged in respect of each raw material shall be calculated by multiplying the sum of all areas covered by a contract signed by the collector or first processor concerned and used to produce that raw material, by the rate of EUR 60 per hectare.';
((c)) paragraph 4 is replaced by the following:
'
4. A percentage of the security shall be released for each raw material on condition that the competent authority of the collector or first processor concerned is in possession of proof that the quantity of raw material in question has been processed in compliance with the requirement laid down in Article 26(2)(f), account being taken, where necessary, of any changes pursuant to the Article 29.';
((d)) the following paragraph is added:
'
5. Without prejudice to paragraph 4, where the security has been lodged by the collector, it shall be released once the raw material in question has been delivered to the first processor, provided that the collector's competent authority has proof that the first processor has lodged an equivalent security with their competent authority.';
12.. in Article 36(2), the introductory terms are replaced by the following:
'The following obligations, incumbent on collectors or first processors, shall constitute subordinate requirements within the meaning of Article 20 of Regulation (EEC) No 2220/85:';
13.. in Article 37, the first paragraph is replaced by the following:
'Where first processors sell or transfer to second or third processors in other Member States intermediate products covered by contracts as provided for in Article 26, the products shall be accompanied by T5 control copies issued in accordance with Regulation (EEC) No 2454/93.Where collectors sell or transfer to first processors established in other Member States raw materials covered by contracts, the first paragraph shall apply.';
14.. Article 38 is amended as follows:

((a)) the introductory terms are replaced by the following:
'If the T5 control copy is not returned to the office of departure of the body responsible for control in the Member State in which the collector or first processor is established two months after expiry of the deadline for the processing of raw materials provided for in Article 36(1)(a), as a result of circumstances for which the first processor is not responsible, the following documents may be accepted as alternatives to the T5 control copy:';
((b)) points (b) and (c) are replaced by the following:
'
((b)) statements by the second and third processors verifying the final processing of the raw materials into energy products as referred to in Article 88 of Regulation (EC) No 1782/2003;
((c)) certified photocopies from the second and third processors of accounting documents providing that processing has been carried out.';
15.. Article 39 is amended as follows:

((a)) paragraph 1 is amended as follows:

((i)) the first subparagraph is replaced by the following:
'The competent authority of the Member State shall specify the records to be kept by collectors or processors and the frequency thereof, which shall be at least monthly.';
((ii)) in the second subparagraph, the introductory sentence is replaced by the following:
'In the case of processors, such records shall comprise at least the following information:';
((iii)) the following subparagraph is added:
'In the case of collectors, such records shall comprise at least the following information:
((a)) the quantities of all raw materials purchased and sold for processing under this scheme;
((b)) the names and addresses of the first processors.';
((b)) paragraph 2 is replaced by the following:
'
2. The competent authority of the collector or first processor shall check that the contract submitted complies with the conditions laid down in Article 24(1). Where those conditions are not met, the applicants' competent authorities shall be notified.';
16.. Article 40(1) is replaced by the following:
'
1. The competent authorities of the Member States in which collectors are located shall carry out checks on the premises of at least 25 % of the collectors established in their territory, selected on the basis of a risk analysis. Such checks shall comprise physical checks and inspections of commercial documents, with a view to verifying consistency between the purchases of raw materials and the corresponding deliveries.
1a. The competent authorities of the Member States in which processing takes place shall check compliance with Article 24(1) at the premises of at least 25 % of the processors located in their territory, selected on the basis of a risk analysis. Such checks shall involve at least:
(a) a comparison of the sum of the values of all the energy products with the sum of the values of all other products intended for other uses and obtained from the same processing operation;
(b) analysis of the processor's production system, comprising physical checks and inspections of commercial documents, with a view to verifying, in the case of processors, that deliveries of raw materials, end products, co-products and by-products tally.For the purpose of the checks referred to in point (b) of the first subparagraph, the competent authorities shall base themselves in particular on the technical processing coefficients for the raw materials concerned. Where such coefficients exist for exports in Community legislation, they shall be applied. Where they do not, but other coefficients do exist in Community legislation, they shall be applied. In all other cases, inspection shall rely mainly on the coefficients generally accepted by the processing industry.';
17.. the following Chapter is inserted after Article 142:
'
CHAPTER 15a
Article 142a 
As regards the separate sugar payment established in Article 143ba of Regulation (EC) No 1782/2003, Articles 5, 10, 18 to 22, 65, 66, 67, 70, 71a, 72 and 73 of Regulation (EC) No 796/2004 shall apply.';
18.. in Article 143, paragraph 2 is replaced by the following:
'
2. Sugarbeet, Jerusalem artichokes or chicory roots may be grown on set-aside land provided that:
(a) the sugarbeet does not serve for the production of sugar, as defined by Commission Regulation (EC) No 314/2002, either as an intermediate product, co-product or by-product;
(b) the chicory roots and Jerusalem artichokes do not undergo the process of hydrolysis as referred to in Regulation (EC) No 314/2002, either in their natural state or as an intermediate product such as inuline, or as a co-product such as oligofructose, or as any by-products.';
19.. in Article 171cm(5), the last sentence is deleted;
20.. in Article 172(3), the following sentence is added:
'It shall also continue to apply in Slovenia to applications for payments in respect of the 2006 harvest with regard to Regulation (EEC) No 1696/71 and until 31 December 2006 with regard to Council Regulation (EC) No 1098/98.'
21.. Annex IX is amended as follows:

((a)) the paragraph relating to line 23 is deleted;
((b)) in the table, line 23 is deleted.
22.. in Annex X, point 3 is replaced by the following text:
'
3. Spain: the autonomous regions of Andalusia, Aragon, Balearic Islands, Castile-La-Mancha, Castile-Leon, Catalonia, Extremadura, Galicia (excluding those areas in the provinces of A Coruña and Lugo that are not considered as less-favoured areas pursuant to Regulation (EC) No 1257/1999), Madrid, Murcia, La Rioja and Comunidad Valenciana and the Canary Islands, and all mountain areas within the meaning of Article 18 of Regulation (EC) No 1257/1999 situated outside these regions.
';
23.. Annex XXI is amended as follows:

((a)) the figure for Lithuania is replaced by ‘2 574’;
((b)) the figure for Poland is replaced by ‘14 337’;
((c)) the figure for Slovakia is replaced by ‘1 955’.
24.. in Annex XXIII, the last indent is replaced by the following text:
'
— all products referred to in Council Regulation (EC) No 318/2006 on condition that they are not obtained from sugar beet cultivated on land set aside, and that they do not contain products derived from sugar beet cultivated on land set aside.'
25.. Annex XXV is replaced by the text in the Annex to this Regulation.
Article 2 
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply to aid applications relating to marketing years starting from 1 January 2006. However, Article 1(23)(b) and (c) shall apply to aid applications relating to marketing years starting from 1 January 2005.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 27 April 2006.
For the Commission
Mariann FISCHER BOEL
Member of the Commission
ANNEX


ANNEX XXV  CLASSIFICATION OF TOBACCO VARIETIES  I. 

 Virginia
 Virginia D and hybrids thereof
 Bright
 Wiślica
 Virginia SCR IUN
 Wiktoria
 Wiecha
 Wika
 Wala
 Wisła
 Wilia
 Waleria
 Watra
 Wanda
 Weneda
 Wenus
 DH 16
 DH 17
 Winta
 Weronika
 II. 

 Burley
 Badischer Burley and hybrids thereof
 Maryland
 Bursan
 Bachus
 Bożek
 Boruta
 Tennessee 90
 Baca
 Bocheński
 Bonus
 NC 3
 Tennessee 86
 Tennessee 97
 Bazyl
 Bms 3
 III. 

 Badischer Geudertheimer, Pereg, Korso
 Paraguay and hybrids thereof
 Dragon Vert and hybrids thereof
 Philippin
 Petit Grammont (Flobecq)
 Semois
 Appelterre
 Nijkerk
 Misionero and hybrids thereof
 Rio Grande and hybrids thereof
 Forchheimer Havanna IIc
 Nostrano del Brenta
 Resistente 142
 Goyano
 Hybrids of Geudertheimer
 Beneventano
 Brasile Selvaggio and similar varieties
 Fermented Burley
 Havanna
 Prezydent
 Mieszko
 Milenium
 Małopolanin
 Makar
 Mega
 IV. 

 Kentucky and hybrids
 Moro di Cori
 Salento
 Kosmos
 V. 

 Xanthi-Yaka
 Perustitza
 Samsun
 Erzegovina and similar varieties
 Myrodata Smyrnis, Trapezous and Phi I
 Kaba Koulak (non-classic)
 Tsebelia
 Mavra
 VI.  VII.  VIII. 

 Elassona
 Myrodata Agrinion
 Zichnomyrodata

