Advanced Search

The Procedures For Granting State Aid In The European Union And To Promote Investments In Agriculture And Development Of Material Base

Original Language Title: Kārtība, kādā piešķir valsts un Eiropas Savienības atbalstu investīciju veicināšanai lauksaimniecībā un materiālās bāzes pilnveidošanai

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Cabinet of Ministers Regulations No. 775 in 2012 (13 November. No 64 40) the procedures for granting state aid in the European Union for the promotion of investment in agriculture and the development of the base material Issued under the agricultural and rural development Act article 5, fourth paragraph i. General questions 1. determines the order in which the aid is granted, the award criteria and amount of support: 1.1. interest for partial deletion of agricultural primary producers, agricultural service cooperatives and agricultural products processing merchants; 1.2. research and laboratory analysis of the necessary material base development. 2. the objective is to develop agricultural production and rural economic space, promoting agricultural and rural development of the investment project implementation and improvement of material base. 3. support includes funding for the 9 000 000 lats, of which: 2.1.  4 397 708 late interest in part granted to delete primary agricultural producers; 3.2.517 860 dollars granted interest for partial deletion recognized agricultural service cooperatives; 3.3.1 911 614 dollars to delete part of the interest granted agricultural products processing merchants that meet the micro, small and medium company category in accordance with the Commission on 6 august 2008, Regulation (EC) No 800/2008, which recognize certain categories of aid compatible with the common market in application of articles 87 and 88. (General block exemption regulation) (Official Journal of the European Union, august 9, 2008, no L 214) The classification set out in annex I, and type the following in the statistical classification of economic activities (NACE Rev. 2) codes: 3.3.1 group 10.1-meat and meat products production, processing and preservation; 3.3.2. the group 10.3-fruit and vegetable processing and canning; 3.3.3. the group 10.5-manufacture of dairy products; 3.3.4. Group-grain milling 10.6 products, manufacture of starch and starch products; 3.3.5. the band 10.7-confectionery and flour products; 3.4.2 172 818 dollars granted research and laboratory analysis of the necessary material base development. 4. the rules referred to in paragraph 3, eligible legal or natural person who is registered to the State revenue service as a tax payer or agent of economic activity (hereinafter the applicant). 5. This provision 14, 23, 25, 33 and 43 of this application and accompanying documents submitted by the applicant in the form of a paper document (by adding or sending an electronic version) or an electronic document (if the document has been prepared according to the law on electronic document design). 6. The applicant in the form prescribed in these provisions shall provide support services in the field of formal business or a copy of the summary that indicates the provider name, transaction ID, the requested date, number and the amount paid. 7. Aid shall not be granted: 7.1 the ailing tenderer who: 7.1.1. judgment of the Court of Justice has declared insolvency or legal protection is implemented in the process, with the decision of the Court is an out-of-court redress process, the previous bankruptcy, or the restoration of a suitable composition or its economic activity is terminated; 7.1.2. the date of submission of the application the damage exceeds half of the share capital and the last 12 months – a quarter of the capital, and found the provisions of 7.1.4. signs referred to. This requirement does not apply to natural persons; 7.1.3. in accordance with the last two years, the financial statements and operational review for the last available for the project at the date of application are ailing economic analyst signs-damage increase, the reduction in turnover, declining cash flow, debt, interest payments rise, stock inventories, low liquidity, falling or zero value of assets – and found the provisions of 7.1.4. signs referred to; 7.1.4. no option to cover the losses from its own resources or with the funds it is able to obtain from its members, shareholders, members or creditors, and it could not stop losses, without which national authorities external intervention in the short or medium term will cause the merchant could not proceed; 7.2. the tenderer acting Commission of 15 December 2006, Regulation (EC) No 1998/2006 on 87 and 88 of the Treaty. application of article de minimis aid (Official Journal of the European Union, of 28 December, no L 379) (hereinafter referred to as Commission Regulation No 1998/2006) article 1, paragraph 1 of the sectors or take article 1, paragraph 1 specific activities; 7.3.3.3 of these regulations referred to in agricultural products processing merchants if they comply with the law "on enterprise income tax" in the third subparagraph of article 1, paragraph 3 of the related enterprise clarification. 8. the rural support service: 8. on its website information on the award and the costs of the aid arrangements; 8.2. in accordance with the laws and regulations on the procedures for granting state aid in the European Union for the development of the rural and fisheries shall assess the compliance of the applicant's application, the requirements in these rules and in the month following receipt of the application, shall take a decision on the approval or rejection of the application; 8.3. random checks for no less than one percent of beneficiaries in each event, including national institutions and corporations in the State, if those rules do not specify other control arrangements; 8.4. the cost of the aid to the applicant in non-cash form of payment, not exceeding the provision referred to in paragraph 3, aid funding. If the demand exceeds the allocated funding for rural support service to take account, in proportion to the reduced amount of aid payable; 8.5. the provision in paragraph 18.2., as well as 30 and 37. aid for the costs referred to in paragraph 1, shall not exceed the Commission Regulation No 1998/2006, article 2, paragraph 2, the amount of aid laid down; 8.6. in the month following the detection of the offence according to the laws and regulations on the procedures administered by the European agricultural guarantee fund, European agricultural fund for rural development and the European Fisheries Fund, as well as national and European Union support for agriculture, rural development and fisheries, demanding repayment of the aid, if the applicant provided false information or violated the requirements in these rules. II. Support for the deletion of the partial interest primary agricultural producers

9. The objective of the aid is to promote the rational and efficient agricultural production, reducing the cost of production and the introduction of modern production technologies. 10. The applicant engaged in the primary production of agricultural products and have shown this provision as referred to in point 7.1.1 signs, can receive support to cover part of the long-term loan actually paid in or capital lease amount of annual interest on long-term (longer than 12 months from the conclusion of the contract) the lending or financial leasing of investment for new agricultural production structures of the construction and renovation of existing buildings, the operation of the necessary equipment and technological equipment (including software) and for the purchase of agricultural land purchase , which is used for the production of agricultural products. 11. The provisions of paragraph 10 of that aid is not granted for: 11.1 implements, trailers and agricultural technological implements acquisition; 11.2. the separate facilities and technological equipment, if it is not linked to agricultural production, construction or reconstruction of buildings; 11.3. the loans issued by State joint stock company "Latvian mortgage and land bank": 11.3.1.  in relation to long-term investment in agriculture lending program; 11.3.2. in relation to agricultural land acquisition lending program; 11.4. the loans issued by State joint stock company "rural development" in accordance with the legislation on State aid procedure for acquisition of agricultural land for agricultural production; 11.5. loans granted by the lenders, which do not have the financial and capital market Commission or consumer protection Center issued a permit (license) lending services; 11.6. loan transactions conducted up to January 1, 2002, the acquisition of agricultural land; 7.3. the loan taken for the purchase of the privatisation certificates to redeem the agricultural land; 11.8. short-term loans (no longer than 12 months), in which the duration is extended every year. 12. The amount of aid is the amount, not exceeding the loan annual interest rate of four percent, or effective rate, if the interest rate is less than four percent. The maximum amount of aid per applicant, during the year does not exceed 40 000 lats. 13. The provisions referred to in paragraph 10 of the total long-term investment aid intensity did not exceed 40 percent of the investment amount of eligible expenses and 50 percent if the economic operator is located in a less-favoured area in accordance with a Council of 20 September 2005 Regulation (EC) No 1698/2005 on support for rural development by the European agricultural fund for rural development (EAFRD) (Official Journal of the European Union, 2005 21 October, no L 277) (hereinafter referred to as Commission Regulation No 1698/2005). The aid intensity is increased by 10 percent, if an investment implements new farmers who comply with the laws and regulations of the country and the European Union support the procedure for payment of refunds in the form of event "young farmers" to that explanation. 14. for the provision of support referred to in paragraph 10, the tenderer until 2012 30 November for the period from January 1, 2012 to September 30 and up to 2013 20 October for the period from 1 October 2012 to 2013 September 30 field service regional agricultural administration submitted: 14.1. submission (annex 1); 14.2. the credit or financial lease a copy of the contract; 14.3. the amended credit agreement or financial lease a copy of the contract, if there is a change in credit or financial leasing agreement; 14.4. a credit institution or a financial lessor's inquiries about the assistance period the interest actually paid for in dollars. If one credit or financial leasing contracts issued loan more objects in the certificate separately for each object of interest actually paid support period in LCY, if technically possible. If you specified a variable interest rate, the certificate shall state the support period average interest rate; 14.5. credit or financial leasing transactions-copies of documents proving the purchase or merchant (construction contract) contract and related documents of payment (if purchase is made or service provided without a written contract, submit proof of payment); 14.6. property rights, copies of the supporting documents relating to structures, if they are put into service within a period of 24 months from the commencement of the construction, as well as the land on which the building, and agricultural land; 14.7. the applicant's evidence that the technological facilities and equipment at the date of application is the applicant's property, long-term lease a copy of the contract or a copy of the financial leasing agreement, which provides that after financial leasing payment technological machinery and equipment remain the property of the applicant. Applicant application request can be added to the field in support of said copies of documents obtained from the responsible authorities; 14.8. the adoption of the legislation on building commissioning (if construction is not complete – planning permission) or simplified reconstruction-receipt card and job transfer and acceptance report. 15. If the rules referred to in paragraph 14, the supporting documents are submitted in support of the regional agricultural administration, the applicant failed to submit them again. 16. If submissions specified the amount of aid payable above this rule 3.1. funding under the rural support service shall be reduced on a pro rata basis to the State aid to be paid to the applicant that portion of the current year more than 40 000 lats. III. Support for the deletion of the partial interest recognized agricultural service cooperatives

17. The objective of the aid is to promote agricultural service cooperatives development of rational and efficient, reducing production costs and introduce modern production technologies. 18. According to the legislation on agricultural service cooperatives recognised conformity assessment for agricultural service cooperative society (hereinafter referred to as the appropriate agricultural service cooperative society) the aid granted: 18.1. long-term loans (more than 12 months from the date of conclusion of the contract) or financial leasing investments in new and compensated for the agricultural production structure construction, the operation of the necessary equipment and technological equipment (including software) acquisition interest part of the deletion; 18.2. short term loan (no more than 12 months) and factoring interest for partial deletion in accordance with Commission Regulation No 1998/2006 19. aid to cover part of the long-term loan actually paid or financial leasing, as well as short term loan or interest year factoring. The amount of aid is the amount, not exceeding the loan annual interest rate of four percent, or effective rate, if the interest rate is less than four percent. Subject to this provision 7.2 and 8.5. the requirements referred to in subparagraph, the maximum short-term loan or factoring the amount of aid per applicant, during the year does not exceed 130 000 lats. 20. The provisions referred to in paragraph 18. aid shall not be granted for: 20.1. implements, trailers and agricultural technological implements acquisition; 20.2. the separate facilities and technological equipment, if it is not linked to agricultural production, construction or reconstruction of buildings; 20.3. loans granted by the lenders, which do not have the financial and capital market Commission or consumer protection Center issued a permit (license) lending services; 20.4. short-term loans (no longer than 12 months), in which the duration is extended every year. 21. in Support of long-term loans (more than 12 months from the date of conclusion of the contract) or financial leasing interest part can receive appropriate for deletion agricultural service cooperative society, which has received long-term loans or financial leasing of investment for new agricultural construction and renovation of the structure, the operation of the necessary equipment and technological equipment (including software). 22. The provisions referred to in point 18.1. long-term investment total aid intensity does not exceed 40 percent of the investment amount of eligible expenses and 50 percent if the economic operator is located in a less-favoured area, in accordance with Council Regulation No 1698/2005.23. for this rule 18.1. aid referred to appropriate agricultural service cooperative society until 2012 30 November for the period from January 1, 2012 to September 30 and up to 2013 20 October for the period from 1 October 2012 to 2013. September 30, Field support services, submit: 23.1. submission (annex 2); 23.2. the credit or financial lease a copy of the contract; 23.3. the amended credit agreement or financial lease a copy of the contract, if there is a change in credit or financial leasing agreement; 23.4. a credit institution or a financial lessor's inquiries about the assistance period the interest actually paid for in dollars. If one credit or financial leasing contracts issued loan more objects in the certificate separately for each object of interest actually paid support period in LCY, if technically possible. If you specified a variable interest rate, the certificate shall state the support period average interest rate; 14.6. credit or financial leasing business identity document (2. part 3 of the annex), purchase or merchant agreement (construction contract) and the associated payment document summary (if purchase is made or services delivered without a written contract, submit evidence of payments Summary); 14.7. property rights, copies of the supporting documents relating to structures, if they are put into service within a period of 24 months from the commencement of the construction, as well as the land on which the building, and agricultural land; 23.7. the applicant's evidence that the technological facilities and equipment at the date of application is the applicant's property, long-term lease a copy of the contract or a copy of the financial leasing agreement, which provides that after financial leasing payment technological machinery and equipment remain the property of the applicant. Applicant application request can be added to the field in support of said copies of documents obtained from the responsible authorities; 14.8. the adoption of the legislation on building commissioning (if construction is not complete – planning permission) or simplified reconstruction-receipt card and job transfer and acceptance report. 24. If the rules referred to in paragraph 23 the supporting documents are submitted to the rural support service, the applicant failed to submit them again. 25. for this rule 18.2. aid referred to appropriate agricultural service cooperatives by 2012 November 30, for the period from May 1, 2012 to September 30 and up to 2013 20 October for the period from 1 October 2012 to 2013 September 30 in the rural support service: 25.1. submission (annex 3); 25.2. the credit agreement or a copy of the contract of factoring; 25.3. credit or factoring's statement of support for the period of interest actually paid for in dollars. If you specified a variable interest rate, the certificate shall state the support period average interest rate; 25.4. services of appropriate agricultural cooperatives Board statement of purpose of use of credit; 25.5. form of de minimis aid received in accordance with the laws and regulations on de minimis aid tracking and allocation procedure and de minimis aid in the form of samples. 26. the rural support service, based on the provisions referred to in paragraph 25 of the document, assess the applicant's application in the amount of the aid specified in the short-term credit or factoring in interest for deletion and, if necessary, updated. 27. If submissions specified the amount of aid payable exceed this provision in point 3.2 of the funds, the rural support service shall be reduced on a pro rata basis to the State aid to be paid to the applicant that portion of the current year more than 40 000 lats. IV. Support for the deletion of the partial interest agricultural products processing merchants

28. The objective of the aid is to promote the rational and efficient development of agricultural products processing, reducing the cost of production and upgrading manufacturing technology. 29. support can be obtained from the processing of agricultural products trader (trader), which has assigned a long term (longer than 12 months from the date of conclusion of the contract) the lending or financial leasing investments in new agricultural products processing structures for construction and reconstruction, as well as the economic operator's economic activity and technological equipment required equipment (including software). 30. Support long-term loan or financial leasing interest granted for deletion in accordance with Commission Regulation No 1998/2006.31. This provision, paragraph 29, aid shall be granted for: 31.1. vehicles, trailers, semi-trailers and the purchase of equipment; 31.2. loans granted by lenders, which do not have the financial and capital market Commission or consumer protection Center issued a permit (license) lending services; 31.3. short-term loans (no longer than 12 months), in which the duration is extended every year. 32. aid to cover part of the long-term loan actually paid in or capital lease amount of annual interest. The amount of aid is the amount, not exceeding the loan annual interest rate of four percent, or effective rate, if the interest rate is less than four percent. Subject to this provision 7.2 and 8.5. referred to requirements, the maximum amount of aid per applicant, during the year does not exceed 130 000 lats. 33. for this provision in paragraph 29 above, the applicant to support the 2012 30 November for the period from January 1, 2012 to September 30 and up to 2013 20 October for the period from 1 October 2012 to 2013 September 30 in the rural support service: 33.1. submission (annex 4); 33.2. credit or financial lease a copy of the contract; 33.3. the amended credit agreement or financial lease a copy of the contract, if there is a change in credit or financial leasing agreement; 33.4. a credit institution or a financial lessor's inquiries about the assistance period the interest actually paid for in dollars. If one credit or financial leasing contracts issued loan more objects in the certificate separately for each object of interest actually paid support period in LCY, if technically possible. If you specified a variable interest rate, the certificate shall state the support period average interest rate; 33.5. credit or financial leasing business identity document (annex 4, part 3) – a purchase or contract of the economic operator (construction contract) and the associated payment document summary (if purchase is made or services delivered without a written contract, submit evidence of payments Summary); 20.9. property rights, copies of the supporting documents relating to structures, if they are put into operation in the 24 months after the commencement of the construction, as well as the land on which the building, and agricultural land; 20.9. the applicant's evidence that the technological facilities and equipment at the date of application is the applicant's property, long-term lease a copy of the contract or a copy of the financial leasing agreement, which provided that after financial leasing payment technological machinery and equipment remain the property of the applicant. Applicant application request can be added to the field in support of said copies of documents obtained from the responsible authorities; 33.8. adoption of legislation on building commissioning (if construction is not complete – planning permission) or simplified reconstruction-receipt card and job transfer and adoption of legislation; 21.1. form of de minimis aid received in accordance with the laws and regulations on de minimis aid tracking and allocation procedure and de minimis aid in the form of samples. 34. If the rules referred to in paragraph 33 the supporting documents are submitted to the rural support service, the applicant failed to submit them again, except that rule 21.1. referred to. 35. If submissions specified the amount of aid payable exceed this provision under section 3.3 of the funds, the rural support service shall be reduced on a pro rata basis to the State aid to be paid to the applicant that portion of the current year more than 40 000 lats. V. support for investment in research and laboratory analysis of the necessary material base development 36. Objective of the aid is to improve the material resources to ensure the performance of studies necessary for the development of sectoral policies and development, as well as a laboratory for analysis, in order to protect the interests of consumers. 37. the support shall be granted for investment in the development of the base material, as well as research and laboratory analysis to the following measures: refurbishment of buildings and 37.1. overhaul; 37.2. the purchase of facilities and equipment. 38. the applicant may receive the aid that meets one of the following requirements: 23.7. is registered to scientific institutions and provides students training according to accredited higher education national programmes in the agricultural sector; 38.2. laboratory and diagnostic examinations in relation to the national monitoring and control of the food chain, animal health, animal feed and the movement of veterinary medicinal products; 23.8. provides analysis of milk and feed not less than 60 percent milk producers that are registered in the register of the producers of the milk; 23.9. provide students practical training, advisory activities and scientific research in accordance with the higher education national programmes in the agricultural sector. 39. This rule 38.3. the tenderer referred to in the aid granted under Commission Regulation (EC) No 1998/2006.40. This rule 38.1 38.2 23.9., and the applicant referred to projects not related to economic activity. 41. the meaning of these provisions with the unrelated economic activities is a project that meets the following criteria: 41.1. the project scientific institution, regardless of its legal status (public law or private law entity) or the type of financing according to its governing documents (statutes, regulations or Constitution) take such basic steps as a scientific activity and scientific activities dissemination of knowledge and technology transfer; 41.2. the revenue accruing from the implementation of this rule 41.1. basic steps referred to repeatedly invest in core business; 41.3. the applicant does not distinguish between economic activity and related financial flows of economic actions. 42. no aid shall be granted for the construction of new buildings, implements, their Assembly and the acquisition of the means of transport. 43. for investment aid, the applicant until 30 November 2012 to field support service shall submit the application (annex 5). The application shall be accompanied by: 43.1. expenditure; 43.2. information on the scientific staff of the laboratory and certification level for investment in scientific laboratories; 43.3. this rule 38.3. the tenderer referred to in-form of de minimis aid received in accordance with the laws and regulations on de minimis aid tracking and allocation procedure and de minimis aid in the form of samples. 44. paragraph 37 of these provisions of the measures referred to in the eligible expenses include value added tax, if it is not recoverable from the State budget. 45. the rural support service contract to the tenderer which provides for an advance payment to the laws on procedures for granting national and European Union support for the development of the rural and fisheries, as well as set the billing arrangements. Vi. Closing questions 46. Field support service to 2012 December 20 after the entry into force of these provisions in chapters II, III and IV above, applicants and support cost calculation, the difference between the aid paid in 2012 (in accordance with the legislation on State aid to agriculture and its procedure) partial interest and to delete this provision 12, 19 and 32 of the aid set out in the rate. 47. for this provision 14, 23 and 33. aid referred to in paragraph 1 for the period from January 1, 2012 to September 30, the applicant this provision 14, 23 and 33. documents listed can also be submitted until 30 September 2013. Prime Minister, the Defense Minister a. Minister Pabriks farming L. Annex 1 of the rapidity of the Cabinet of 13 November 2012 rules no 775 application support interest to delete the partial primary agricultural producers agricultural Minister l. Rapidity annex 2 to the Cabinet of Ministers of 13 November 2012 rules no 775 Submissions to support long-term interest to delete part of agricultural service cooperatives agricultural Minister l. Rapidity of annex 3 of the Cabinet of Ministers of 13 November 2012 rules no 775 application support short (not more than 12 months) interest delete the corresponding agricultural service cooperatives agricultural Minister l. Rapidity of

  4. Annex Cabinet gada13 November 2012. Regulation No 775 Submissions to support long-term interest to delete part of the agricultural products processing Agriculture Minister merchants l. Speed of annex 5 of the Cabinet of Ministers of 13 November 2012 rules no. 775 support application for the material base for scientific research and development laboratory for the analysis of Agriculture Minister l. Rapidity of