
CHAPTER 1
Article 1 

1. This Regulation shall apply to transparent aid granted to small and medium-sized enterprises (SMEs) active in the production, processing or marketing of fisheries products.
2. This Regulation shall not apply to:
(a) aid the amount of which is fixed on the basis of price or quantity of products put on the market;
(b) aid to export-related activities, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity;
(c) aid contingent upon the use of domestic over imported goods;
(d) aid granted to undertakings in difficulty;
(e) aid schemes which do not explicitly exclude the payment of individual aid in favour of an undertaking which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the common market;
(f) ad-hoc aid in favour of an undertaking which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the common market.
3. This Regulation shall not apply to aid for individual projects with eligible expenses in excess of EUR 2 million, or where the amount of aid exceeds EUR 1 million per beneficiary per year.
Article 2 
For the purpose of this Regulation the following definitions shall apply:

((a)) ‘aid’ means any measure fulfilling all the criteria laid down in Article 87(1) of the Treaty;
((b)) ‘aid scheme’ means any act on the basis of which, without further implementing measures being required, individual aid awards may be made to undertakings defined within the act in a general and abstract manner and any act on the basis of which aid which is not linked to a specific project may be awarded to one or several undertakings for an indefinite period of time and/or for an indefinite amount;
((c)) ‘individual aid’ means ad-hoc aid and notifiable awards of aid on the basis of an aid scheme;
((d)) ‘ad-hoc aid’ means individual aid not awarded on the basis of an aid scheme;
((e)) ‘aid intensity’ means the aid amount expressed as a percentage of the eligible costs;
((f)) ‘fisheries product’ means both products caught at sea or in inland waters and the products of aquaculture listed in Article 1 of Regulation (EC) No 104/2000;
((g)) ‘small and medium-sized enterprises’ (‘SMEs’) means small and medium-sized enterprises as defined in Article 2 (7) of Commission Regulation (EC) No …/2008 of 2 July 2008 on the application of Articles 87 and 88 of the Treaty declaring certain categories of aid compatible with the common market;
((h)) ‘transparent aid’ means aid in respect of which it is possible to calculate precisely the gross grant equivalent ex ante without need to undertake a risk assessment;
((i)) ‘undertaking in difficulty’ means an undertaking fulfilling the following conditions:

— in the case of a limited liability company, where more than half of its registered capital has disappeared and more than one-quarter of that capital has been lost over the preceding 12 months, or
— in the case of a company where at least some members have unlimited liability for the debt of the company, where more than half of its capital as shown in the company accounts has disappeared and more than one quarter of that capital has been lost over the preceding 12 months, or
— whatever the type of company concerned, where it fulfils the criteria under its domestic law for being the subject of collective insolvency proceedings.
Article 3 

1. Ad-hoc aid, fulfilling all the conditions of this Regulation, shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that the summary information provided for in Article 25(1) has been submitted and that the aid contains an express reference to this Regulation, by citing its title and publication reference in the Official Journal of the European Union.
2. Aid schemes fulfilling all the conditions set out in this Regulation shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that the summary information provided for in Article 25(1) has been submitted, that any individual aid that could be awarded under such scheme fulfils all the conditions of this Regulation, and that the scheme contains an express reference to this Regulation, by citing its title and publication reference in the Official Journal of the European Union.
3. Individual aid granted under a scheme referred to in paragraph 2 shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that the aid granted directly fulfils all the conditions of this Regulation that the summary information provided for in Article 25(1) has been submitted and that the individual aid measure contains an express reference to this Regulation, by citing its title and publication reference in the Official Journal of the European Union.
4. Before granting any aid under this Regulation, Member States shall verify that the measures financed and their effects comply with Community law.
5. Aid measures shall only be exempted under this Regulation as far as they explicitly provide that, during the grant period the beneficiaries of the aid shall comply with the rules of the Common Fisheries Policy and that, if during this period it is found that the beneficiary does not comply with rules of the Common Fisheries Policy, the grant must be reimbursed in proportion to the gravity of the infringement.
Article 4 

1. For the purpose of calculating aid intensity, all figures used shall be taken before any deduction of tax or other charge. Where aid is awarded in a form other than a grant, the aid amount shall be the grant equivalent of the aid. Aid payable in several instalments shall be discounted to its value at the moment of granting. The interest rate to be used for discounting purposes shall be the reference rate applicable at the time of grant. In cases where aid is awarded by means of tax exemptions or reductions in future taxes due, subject to respect of a certain aid intensity defined in gross grant equivalent, discounting of aid tranches takes place on the basis of the reference rates applicable at the various times the tax advantages become effective.
2. The eligible costs shall comply with the requirements of Article 55, paragraphs (2) and (5), of Regulation (EC) No 1198/2006 and Article 26 of Regulation (EC) No 498/2007 and be supported by documentary evidence which shall be clear and itemised.
Article 5 

1. This Regulation shall apply only to transparent aid. In particular, the following types of aid shall be considered to be transparent:
(a) direct grants and interest rate subsidies;
(b) aid comprised in loans where the gross grant equivalent has been calculated on the basis of the reference rates prevailing at the time of the grant and taking into account the existence of normal security and/or abnormal risk associated with the loan;
(c) aid comprised in guarantee schemes:
— where the methodology to calculate the gross grant equivalent has been accepted following notification of this methodology to the Commission and the approved methodology explicitly addresses the type of guarantees and the type of underlying transactions at stake in the context of the application of this Regulation, or
— where the gross grant equivalent has been calculated on the basis of the safe-harbour premiums laid down in the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees;
(d) aid comprised in fiscal measures shall be considered as transparent when the measures provides for a cap ensuring that the applicable ceiling is not exceeded.
2. The following types of aid shall not be considered to be transparent:
(a) aid comprised in capital injections;
(b) aid comprised in risk capital measures.
3. Aid in the form of repayable advances shall only be considered to be transparent aid if the total amount of repayable advance does not exceed the applicable threshold under this Regulation. If the threshold is expressed in terms of aid intensity, the total amount of the repayable advance, expressed as a percentage of the eligible costs, shall not exceed the applicable aid intensity.
Article 6 

1. In determining whether the individual notification thresholds laid down in Article 1(3) and the maximum aid intensities laid down in Chapter 2 are respected, the total amount of public support measures for the aided activity or project shall be taken into account, regardless of whether that support is financed from local, regional, national or Community sources.
2. Aid exempted under this Regulation may be cumulated with any other aid exempted under this Regulation as long as those aid measures concern different identifiable eligible costs.
3. Aid exempted under this Regulation shall not be cumulated with any other aid exempted under this Regulation or de minimis aid fulfilling the conditions laid down in Commission Regulation (EC) No 875/2007 or with other Community funding in relation to the same — partly or fully overlapping — eligible costs if such cumulation would result in exceeding the highest aid intensity or aid amount applicable to that aid under this Regulation.
Article 7 

1. This Regulation shall only exempt aid which has an incentive effect.
2. Aid shall be considered to have an incentive effect if it enables the beneficiary to carry out activities or projects which it would not have carried out as such in the absence of the aid.This condition shall be considered to have been fulfilled if, before work on the project or activity has started, the beneficiary has submitted an application for the aid to the Member State concerned.
3. The condition laid down in paragraph 2 shall not apply as regards fiscal measures establishing a legal right to aid in accordance with objective criteria and without further exercise of discretion by the Member State if those fiscal measures have been adopted before work on the aided project or activity has started.
4. If the conditions of paragraphs 1 to 3 are not fulfilled, the entire aid measure will not be exempted under this Regulation.
CHAPTER 2
Article 8 
Aid for the permanent cessation of fishing activities of fishing vessels shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Article 23 of Regulation (EC) No 1198/2006 and Article 4 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 9 
Aid for temporary cessation of fishing activities for fishers and owners of fishing vessels shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Article 24 of Regulation (EC) No 1198/2006; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 10 
Aid for the financing of socioeconomic measures shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 26(3) and 27 of Regulation (EC) No 1198/2006 and Article 8 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 11 
Aid for productive investments in aquaculture shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 28 and 29 of Regulation (EC) No 1198/2006 and Articles 9 and 10 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 12 
Aid for compensation for the use of aquaculture production methods helping to protect and improve the environment and conserve nature shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 28 and 30 of Regulation (EC) No 1198/2006 and Article 11 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 13 
Aid for compensation to mollusc farmers for the temporary suspension of harvesting of farmed mollusc shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 28 and 31 of Regulation (EC) No 1198/2006; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 14 
Aid for animal health measures shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 28 and 32 of Regulation (EC) No 1198/2006 and Article 12 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 15 
Aid for inland fishing shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Article 33 of Regulation (EC) No 1198/2006 and Article 13 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 16 
Aid for processing and marketing of fisheries products shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Article 34 and 35 of Regulation (EC) No 1198/2006 and Article 14 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 17 
Aid for measures of common interest which are implemented with the active support of operators themselves or by organisations acting on behalf of producers or other organisation recognised by the Member States shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 37 of Regulation (EC) No 1198/2006 and Article 15 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 18 
Aid for measures of common interest intended to protect and develop aquatic fauna and flora while enhancing the aquatic environment shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 38 of Regulation (EC) No 1198/2006 and Article 16 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 19 
Aid for investments in public or private fishing ports, landing sites and fishing shelters shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 39 of Regulation (EC) No 1198/2006 and Article 17 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 20 
Aid for measures of common interest intended to implement a policy of quality and value enhancement, development of new markets or promotional campaigns for fisheries and aquaculture products shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 40 of Regulation (EC) No 1198/2006 and Article 18 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 21 
Aid for pilot projects shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 41 of Regulation (EC) No 1198/2006 and Article 19 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 22 
Aid for modification for reassignment of fishing vessels, under the flag of a Member State and registered in the Community for training or research purposes inside the fisheries sector or for other activities outside fishing shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Articles 36 and 42 of Regulation (EC) No 1198/2006 and Article 20 of Regulation (EC) No 498/2007; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 23 
Aid for technical assistance shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty provided that:

((a)) the aid fulfils the conditions of Article 46(2) and (3) of Regulation (EC) No 1198/2006; and
((b)) the amount of the aid does not exceed, in grant equivalent, the total rate of public contributions fixed by Annex II to Regulation (EC) No 1198/2006.
Article 24 

1. Tax exemptions applicable to the whole fishing sector which Member States introduce pursuant to and in accordance with Article 14 of Directive 2003/96/EC shall, to the extent that they constitute State aid, be compatible with the common market and exempt from the notification requirement of Article 88(3) of the Treaty.
2. Environmental aid in the form of tax exemptions or reductions applicable to inland fishing and piscicultural works which Member States introduce pursuant to Article 15 of Directive 2003/96/EC shall be compatible with the common market and exempt from the notification requirement of Article 88(3) of the Treaty, provided that it shall not be granted for periods longer than 10 years. After this 10-year period, Member States shall re-evaluate the appropriateness of the aid measures concerned.The beneficiary of the tax reduction shall pay at least the Community minimum tax level set by that Directive.
CHAPTER 3
Article 25 

1. On the entry into force of an aid scheme or the awarding of an ad-hoc aid, which has been exempted pursuant to this Regulation, the Member State shall forward to the Commission a summary of the information regarding such aid measure. This information shall be provided in electronic form via the established Commission IT application, in the form laid down in Annex I.The Commission shall acknowledge the receipt of the above summary without delay.The summaries provided by the Member States pursuant to paragraph 1 shall be published in the Official Journal of the European Union and on the Commission’s website.
2. Upon the entry into force of an aid scheme or the awarding of an ad-hoc aid, which has been exempted pursuant to this Regulation, the Member State concerned shall publish on the Internet the full text of such aid measure, indicating the criteria and conditions under which such aid is granted and the identity of the granting authority. The Member State concerned shall ensure that the full text of the aid measure is accessible on the Internet as long as the aid measure concerned is in force. The summary information provided by the Member State concerned pursuant to paragraph 1 shall specify an Internet address leading directly to the full text of the aid measure. This Internet address shall also be contained in the annual report submitted pursuant to paragraph 4.
3. When granting individual aid exempted pursuant to this Regulation, with the exception of aid taking the form of fiscal measures, the aid granting act shall contain an explicit reference to the specific provisions of this Regulation concerned by this act, to the national law which ensures respect of the relevant provisions of this Regulation and to the Internet address referred to in paragraph 2.
4. In accordance with Chapter III of Commission Regulation (EC) No 794/2004, Member States shall compile a report in electronic form on the application of this Regulation in respect of each whole year or each part of the year during which this Regulation applies.
5. Member States shall maintain detailed records regarding any ad-hoc aid or individual aid granted under an aid scheme exempted under this Regulation. Such records shall contain all information necessary to establish that the conditions laid down in this Regulation, are fulfilled, including information on the status of any undertaking whose entitlement to aid or a bonus depends on its status as an SME, information on the incentive effect of aid and information making it possible to establish the precise amount of eligible costs for the purpose of applying this Regulation.
6. Records regarding individual aid shall be maintained for 10 years from the date on which the aid was granted. Records regarding an aid scheme shall be maintained for 10 years from the date on which the last aid was granted under such scheme.
7. The Commission shall regularly monitor aid measures of which it has been informed pursuant to paragraph 1.
8. On written request, the Member State concerned shall provide the Commission within the period fixed in the request, with all the information which the Commission considers necessary to monitor the application of this Regulation.If such information is not provided within that period or a commonly agreed period, the Commission shall send a reminder setting a new deadline for the submission of the information. If, despite such reminder, the Member State concerned does not provide the information requested, the Commission may, after having provided the Member State concerned with the possibility to make its views known, adopt a decision stating that all future individual aid measures adopted on the basis of the scheme are to be notified to the Commission.
Article 26 

1. Notifications pending at the time of entry into force of this Regulation shall be assessed in accordance with its provisions. Where the conditions of this Regulation are not fulfilled, the Commission shall examine such pending notifications under the Community guidelines for State aid in the fisheries sector.Aid notified before the entry into force of this Regulation or granted before that date in the absence of a Commission authorisation and in breach of the notification requirement of Article 88(3) of the Treaty, shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt if it fulfils the conditions laid down in Article 3 of this Regulation, except the requirement of citing the Regulation and the Commission identification number. Any aid which does not fulfil those conditions shall be assessed by the Commission in accordance with the relevant frameworks, guidelines, communications and notices.
2. Aid schemes exempted under this Regulation shall remain exempt during an adjustment period of six months following the date provided for in the second paragraph of Article 27.
Article 27 
This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.
It shall apply until 31 December 2013.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 22 July 2008.
For the Commission
Joe BORG
Member of the Commission
ANNEX I


1.. Member State:
2.. Region/Authority granting the aid:
3.. Title of aid scheme/name of company receiving an ad-hoc aid:
4.. Legal basis:
5.. Annual expenditure planned under the scheme or amount of ad-hoc aid granted:
6.. Maximum aid intensity:
7.. Date of entry into force:
8.. Duration of the scheme or individual aid award (not later than 30. June 2014); indicate:

— under the scheme: the date until which aid may be granted:
— in the case of an ad-hoc aid: the expected date of the last instalment to be paid:
9.. Objective of aid:
10.. Indicate which of Articles 8 to 24 is used:
11.. Activity concerned:
12.. Name and address of the granting authority:
13.. Web address where the full text of the scheme or the criteria and conditions under which ad-hoc aid is granted outside of an aid scheme can be found:
14.. Motivation: indicate why a State aid scheme has been established instead of assistance under the European Fisheries Fund:

ANNEX II

For their reporting obligations to the Commission under group exemption regulations adopted on the basis of Council Regulation (EC) No 994/98, Member States shall provide the information mentioned below concerning all aid measures covered by this Regulation, in computerised form, in the format communicated by the Commission to the Member States.

1.. Member State:
2.. Title:
3.. Aid number:
4.. Year of expiry:
5.. Objective of the aid:
6.. Number of beneficiaries:
7.. Category of aid (e.g. direct grant, loan with reduced interest rate, etc.):
8.. Total annual expenditure:
9.. Remarks:
