
Article 1 
This Regulation introduces a scheme for the period 2007 to 2013 to provide compensation for the additional costs incurred by the operators set out in Article 3 in the marketing of certain fishery products from the following outermost regions as a result of those regions’ specific handicaps (hereinafter referred to as the compensation):

— The Azores,
— Madeira,
— The Canary Islands,
— French Guiana, and
— Réunion.
Article 2 
For the purposes of this Regulation the definition of ‘fishery products’ set out in Article 1 of Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products shall apply.
Article 3 

1. The compensation shall be paid to the following operators who incur additional costs in the marketing of fishery products:
(a) the producers;
(b) the owners or operators of vessels registered in the ports of the regions referred to in Article 1 and operating therein or associations of such operators; and
(c) the operators in the processing and marketing sector or associations of such operators, who incur additional costs in marketing the products concerned.
2. The Member States concerned shall take steps to ensure the economic viability of operators receiving the compensation.
Article 4 

1. Each Member State concerned shall determine for its regions referred to in Article 1 the list of fishery products and the quantity of those products which are eligible for the compensation. The list of fishery products and the quantities may be differentiated for each of the regions belonging to one Member State.
2. When establishing the list and the quantities referred to in paragraph 1, Member States shall take into account all the relevant factors, in particular the need to ensure that the compensation does not result in an increased pressure on biologically sensitive stocks, the level of additional costs and qualitative and quantitative aspects of production and marketing.
3. Fishery products for which the compensation is granted must have been harvested and processed in accordance with the rules of the Common Fisheries Policy on:
(a) conservation and management;
(b) traceability;
(c) grading standards.
4. The compensation shall not be granted for fishery products:
(a) caught by third country vessels, with the exception of fishing vessels which fly the flag of Venezuela and operate in Community waters;
(b) caught by Community fishing vessels that are not registered in a port of one of the regions referred to in Article 1;
(c) imported from third countries;
(d) derived from illegal, unreported or unregulated fishing.Point (b) shall not apply if the raw material supplied according to the rules laid down in this Article is not sufficient to use the existing capacity of the processing industry in place in the outermost region concerned.
Article 5 

1. Each Member State concerned shall determine for its regions referred to in Article 1 the level of compensation for each fishery product in the list referred to in Article 4(1). That level may be differentiated for individual regions or between regions belonging to one Member State.
2. The compensation shall take into account:
(a) for each fishery product the additional costs resulting from the specific handicaps of the regions concerned, in particular the expenditure for the transport to continental Europe; and
(b) any other type of public intervention affecting the level of additional costs.
3. The compensation in respect of the additional costs shall be proportional to the additional costs it intends to off-set. The level of compensation in respect of the additional costs shall be duly justified in the compensation plan. However, in no case shall the compensation exceed 100 % of the expenditure incurred for the transport and other related costs of the Fishery products, which are intended for continental Europe.
4. The total amount of compensation per year shall not exceed:(a) The Azores and MadeiraEUR 4 283 992;(b) The Canary IslandsEUR 5 844 076;(c) French Guiana and RéunionEUR 4 868 700.
Article 6 
The Member States concerned may adjust the list and quantities of eligible fishery products referred to in Article 4(1) and the level of compensation referred to in Article 5(1) to take account of changing conditions provided that the total amounts referred to in Article 5(4) are respected.
Article 7 

1. By 6 November 2007, the Member States concerned shall submit to the Commission the list and quantities referred to in Article 4(1) and the level of compensation referred to in Article 5(1) (hereinafter jointly referred to as the compensation plan).
2. If the compensation plan does not meet the requirements set out in this Regulation, the Commission, within two months, shall ask the Member State to adapt the plan accordingly. In that event the Member State shall submit its adapted compensation plan to the Commission.
3. If the Commission fails to react within the period of two months after receiving the compensation plan referred to in paragraphs 1 and 2, the compensation plan shall be deemed to have been approved.
4. If a Member State makes adjustments pursuant to Article 6, it shall submit its amended compensation plan to the Commission and the procedure laid down in paragraph 2 and 3 shall apply mutatis mutandis. The amended plan shall be deemed to have been approved if the Commission fails to react within the period of four weeks after receiving the amended compensation plan.
Article 8 

1. Each Member State concerned shall draw up an annual report on the implementation of the compensation and submit it to the Commission by 30 June of each year.
2. By 31 December 2011, the Commission shall on the basis of an independent evaluation, report to the European Parliament, the Council and the European Economic and Social Committee on the implementation of the compensation, accompanied, where necessary, by legislative proposals.
Article 9 

1. Expenditure incurred by Member States in accordance with this Regulation shall be deemed to be expenditure referred to in Article 3(2)(f) of Regulation (EC) No 1290/2005.
2. For the implementation of paragraph 1 Regulation (EC) No 2003/2006 shall apply.
Article 10 
Member States shall adopt appropriate provisions to ensure compliance with the requirements set out in this Regulation and to ensure the regularity of operations.
Article 11 
Detailed rules for the application of this Regulation may be adopted in accordance with the procedure laid down in Article 12(2).
Article 12 

1. The Commission shall be assisted by the Management Committee for Fishery Products.
2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month.
Article 13 

1. If Member States have submitted to the Commission requests for adjustments pursuant to Article 8(1) and (2) of Regulation (EC) No 2328/2003 on which no decision has been taken by 31 December 2006, Article 8 of that Regulation shall continue to apply to those requests.
2. The provisions of Article 9 shall apply to expenditure incurred by Member States under Regulation (EC) No 2328/2003 and declared to the Commission after 15 October 2006.
Article 14 
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply from 1 January 2007 until 31 December 2013.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 21 May 2007.
For the Council
The President
M. GLOS