The administrative activity of promoting the agro-food and forestry industry sectors is a proven way of improving the conditions for the processing and marketing of this kind of products. This form of public intervention, which is implemented through grants to investments in these sectors, is currently one of the most appropriate means of improving the competitiveness and added value of products.

This Royal Decree sets out these objectives, as well as the priorities which, within the framework of the Community legislation, must make it possible to use public funds to make better use of public funds, taking into account the budget and making it possible to make the sector's resources more profitable.

The new Community rules, which have recently come into force, make changes to the system of aid co-financed by the EAGGF in order to improve the conditions for the processing and marketing of agricultural products. agricultural, forestry and food products.

In particular, with regard to structural aid for the processing and marketing of agricultural and forestry products, Council Regulation (EC) No 1257/1999 of 17 May 1999 on aid for rural development in charge of the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations, devotes Chapter VII of its Title II to the improvement of the processing and marketing of agricultural products and the Chapter VIII of the same title, to forestry.

In development of the previous one, Commission Regulation (EC) 1750/1999 of 23 July laying down detailed rules for the application of Regulation (EC) No 1257/1999, as amended by Regulation (EC) No 2075/2000, September, it devotes Section 7.a of its Chapter II to the improvement of the processing and marketing of the agricultural products and the Commission Regulation (EC) 2603/1999 of 9 December lays down transitional provisions for the aid to the rural development provided for by Regulation (EC) 1257/1999.

For their part, they also apply to all actions and aid from the various structural funds, because of their general nature and their importance in the regulation of these aids, the Regulation (EC) Council Regulation (EC) No 1260/1999 of 21 June laying down general provisions on the Structural Funds and Commission Regulation (EC) No 1159/2000 of 30 May 2000 on information and publicity activities to be carried out by the European Community the Member States in relation to the interventions of the Structural Funds.

All of this recent Community legislation requires the replacement of the national provisions which do not comply with it, in particular the Royal Decree 633/1995 of 21 April, which regulates the management system. of Community aid for the improvement of the conditions for the marketing and processing of agricultural and forestry products covered by Regulations (EEC) 866/90 and 867/90 and Royal Decree 2666/1998 of 11 December 1998 on the that the selection criteria for the promotion of the improvement of the conditions of the processing and marketing of agricultural products, fisheries, aquaculture and food products.

This Royal Decree establishes the new necessary regulatory framework for public aid co-financed by the EAGGF to investments in the processing and marketing of agricultural, forestry and forestry products. food. The Spanish legislation is adapted to the Community as regards the determination of investments and eligible expenditure and the investments to be financed as a priority are determined for reasons of general economic policy, as well as adequacy of the budget appropriations.

Chapter I is intended for the purpose and beneficiaries of structural aid. In Chapter II, the requirements for investments eligible for structural aid co-financed by the EAGGF and the Spanish public authorities are laid down. Chapter III sets out the basic principles of the procedure.

Finally, the Royal Decree contains five additional provisions, a derogation provision, a transitional provision and two final provisions.

The Royal Decree provides for State co-financing and, where appropriate, the autonomy of investments co-financed by the EAGGF, determining the minimum subjective, objective and procedural requirements for such aid, seeks to ensure a fair distribution of public resources for investments made in these sectors and to promote the effectiveness of aid throughout the national territory. The basic equality of all employers in the sector is ensured by the regulatory framework established, although the exclusive powers of the Autonomous Communities in agriculture and livestock farming, as well as their financial autonomy, allow for (i) to introduce the logical modulations in this scheme, since they have the capacity to opt for a higher or lower level of co-financing for aid financed by the EAGGF and the General Administration of the State, as well as to determine the priorities they are of their own, respecting those of a general nature.

In relation to the granting of the aid, this Royal Decree determines the basic principles of the procedure, which each Autonomous Community may develop in a normal way. These basic principles are imposed on the one hand by the requirements of competition and advertising which impose equal treatment for all employers and on all investment projects which are presented and, on the other, by the Commission. need to adjust to the available budget in each case.

Accordingly, the aid applications submitted before the date to be determined by the Autonomous Community, which may in no case be later than 30 June of each year, shall be settled all at the same time as is determined. In this way, it will be possible to prioritise according to objective criteria in a procedure characterized by concurrency and advertising, assigning the corresponding quantity with knowledge of all the applications submitted and the credit existing budget, ensuring efficient and efficient allocation of resources.

This Royal Decree is issued under Article 149.1.13.a of the Constitution, which attributes to the State exclusive competence on the basis and coordination of the general planning of economic activity, and in its The affected sectors and the Autonomous Communities have been consulted.

In its virtue, on the proposal of the Minister of Agriculture, Fisheries and Food, with the prior approval of the Minister of Public Administrations, in agreement with the Council of State and after deliberation of the Council of Ministers in its Meeting of the day 9 February 2001,

D I S P O N G O:

CHAPTER I

General rules

Article 1. Object.

This Royal Decree sets out the priorities, the basic criteria for the selection of investments, the limits of the state contribution and the basic principles of the procedure for granting structural aid. co-financed by the European Agricultural Guidance and Guarantee Fund (EAGGF) and the Spanish public authorities for investments in the processing and marketing of agricultural, forestry and food products, referred to in Regulations (EC) 1257/1999, 1260/1999, 1750/1999, 2603/1999 and 2075/2000.

Article 2. Beneficiaries.

The natural or legal persons on whom the financial burden of the investments and expenses deemed eligible, which carry out the activity, may benefit from the aid covered by this Royal Decree. for which the aid is granted and for such activity to be maintained for a period of not less than five years from the date on which it was initiated.

CHAPTER II

Requirements for investments eligible for structural aid for the processing and marketing of agricultural, forestry and food products co-financed by the EAGGF and public administrations Spanish

Article 3. Requirements and objectives of the aid.

1. Structural aid to the EAGGF to improve the conditions for the processing and marketing of agricultural, forestry and food products shall comply with the provisions laid down in the Community Regulations referred to in Article 1 (2) of the Treaty. 1 of this Royal Decree, as well as the programming documents relating to the location of the investments.

2. In addition, such aid must, in general, contribute to the achievement of one of the following objectives:

a) Production guidance in accordance with market trends that are expected or encouraged to open new market outlets for agricultural products.

b) Improving or streamlining the marketing channels or processing procedures.

c) Improvement of the packaging and presentation of products or to encourage better use or disposal of by-products or waste.

d) Application of new technologies.

e) Promoting innovative investments.

f) Improvement and quality control.

g) Improving and controlling health conditions.

h) Environmental protection.

Article 4. Investments and eligible expenditure.

1. Eligible investments, through the aid covered by this Royal Decree, are considered to be eligible investments for the improvement and rationalisation of productive activities, as well as increasing competitiveness and added value. of the products, in accordance with the provisions set out in the following paragraphs.

2. In order to be eligible, the investments must be made by undertakings which demonstrate their economic viability and which comply with the minimum standards for the environment, hygiene and, where appropriate, animal welfare.

Also, you need to credit:

(a) That investments contribute to improving the situation of the corresponding basic agricultural production sector.

b) That investments are beneficial for producers of agricultural raw materials.

c) There are normal market outlets for the products that are the object of the same.

(d) Which are in accordance with the restrictions of production or the limitations of Community aid under the common market organisations.

3. The following investments may not be supported in accordance with the above Community Regulations:

(a) Those for the processing or marketing of products from third countries.

b) Investments in the retail sector.

(c) Investments not using products listed in Annex I to the Treaty establishing the European Community.

(d) Those falling within the scope of the aid schemes of the common market organisations, with the exceptions justified by the objective criteria proposed in the programming documents approved by the European Commission.

4. The following expenditure is considered eligible, in accordance with the provisions of the Community Regulations

:

(a) Those relating to the construction and acquisition of immovable property, with the exception of the acquisition of land.

(b) For the purchase of new machinery and equipment, including software.

(c) General expenses, such as fees of architects, engineers and consultants, feasibility studies, acquisition of patents and licenses, to be added to the expenditure referred to in paragraphs (a) and (b) above, up to a limit of 12 per cent of such expenditure.

5. Structural aid, co-financed by the EAGGF and the General Administration of the State, may not be used for the investments detailed in Annex I to this Royal Decree or for the expenditure referred to in Annex II thereto.

Article 5. Distribution and transfer of appropriations.

1. The territorial distribution of the appropriations for the present structural aid and entered in the general budget of the State in charge of the Directorate-General for Food, of the Ministry of Agriculture, Fisheries and Food, is In accordance with Article 153 of the recast text of the General Budget Law, adopted by Royal Decree-Law No 1091/1988 of 23 September, the objective criteria for distribution, as well as the resulting distribution.

2. This distribution will take into account the budgetary programming of the Ministry of Agriculture, Fisheries and Food for the period 2000-2006, as well as the proposals for priority investments by the Autonomous Communities for the period 2000 to 2006. the corresponding exercise.

For these purposes the Autonomous Communities shall forward their proposals to the Ministry of Agriculture, Fisheries and Food by 30 September each year.

3. The transfer of appropriations from EAGGF Guidance to the Autonomous Communities for the payment of aid for investments made shall be carried out on the basis of the booklets made by this Fund and the needs of such funds. Territorial administrations, after documentary justification thereof.

Article 6. Priority investments.

1. In the context of the eligible investments provided for in Article 4 of this Royal Decree, the State contribution to structural aid co-financed by the EAGGF will be allocated by the Autonomous Communities in the first and most This is the first time that the Commission has adopted a proposal for a Council directive on the implementation of Community law on the environment and the development of the European Community in the field of energy. processing and marketing of agricultural, forestry and food products.

2. As a general rule, the following investments are declared priorities throughout the national territory:

(a) Investments made by small and medium-sized agri-food enterprises (SMEs) which, in the financial year in which they submit their application for aid, and in the preceding financial year, have at most 50 employees fixed or with the number of jobs in question equivalent to 50 fixed, and fulfil one of the following characteristics:

1. To be used for the production of products with protected quality names: designation of origin (OJ), geographical indication (GI), traditional speciality guaranteed (TSG) and similar.

2. To apply innovative technologies.

3. That they present an increase in their business dimension as a result of some industrial concentration process.

b) Investments made by agricultural associative entities, as long as they contribute to the improvement of the income of the producers, promoting rural development.

c) Investments in municipalities below 10,000 inhabitants or less-favoured areas.

(d) Environmental investments that have any of the following purposes:

1. The prevention of pollution from discharges or waste, as well as its recovery and disposal in non-environmental conditions.

2. The saving of water and energy.

3. The use of by-products.

4.a move of industries for environmental reasons, provided that they are installed on industrial estates or on qualified soil as suitable for such facilities by urban regulations.

e) Investments that encourage the creation of net employment, especially of women or young workers.

(f) Investments arising from sectoral restructuring plans, duly approved by the competent authorities.

g) Investments aimed at promoting the improvement of food safety and quality.

(h) Investments which, in compliance with the constraints established, involve a comprehensive project covering the entire food chain, from the handling of raw materials to the production of the final product, controlling the traceability and homogeneity of the product.

i) Investments in eligible horizontal actions carried out through agri-food associative entities.

(j) Investments in industries which have as their sole purpose the transformation of specified risk material for further destruction.

3. The Autonomous Communities, in the corresponding public calls for aid, shall establish the criteria for the selection of investment projects, ensuring, in any event, the preferential nature of the priority investments referred to in the the previous paragraph in order to be co-financed by the Ministry of Agriculture, Fisheries and Food.

4. The priority of investments co-financed exclusively by the EAGGF and the respective Autonomous Community shall be determined by the Autonomous Community itself.

Article 7. Establishment of the percentages corresponding to the total of the aid, to the contribution of the EAGGF, the Ministry of Agriculture, Fisheries and Food and the beneficiaries.

1. The total of the public aid granted, taking into account the sum of the contributions from the EAGGF and the various public administrations, may not exceed the following amounts and percentages of the total eligible investment cost:

a) 50 per 100 in Objective 1 regions and in the Autonomous Community of Cantabria.

b) 40 per 100 in regions not included in objective 1.

2. The contribution from the EAGGF shall not exceed the following percentages:

(a) In Objective 1 regions, and in the Autonomous Community of Cantabria, in which this contribution is made by the EAGGF Guidance Section, 35 per 100 of the total eligible investment cost.

(b) In the regions not covered by Objective 1, in which this contribution is made under the EAGGF Guarantee Section, the total eligible investment cost is 15 per 100.

3. In the case of small and medium-sized enterprises, the levels referred to in the preceding paragraph relating to the EAGGF contribution, in accordance with Article 29 of Regulation (EC) No 1260/1999, may be subject to an increase for forms of financing different from direct aid, without this increase being able to exceed 10 per 100 of the total eligible cost.

4. The contribution of the Ministry of Agriculture, Fisheries and Food, taking into account its budgetary resources, shall be as follows:

(a) 3.5 per 100 of eligible investment in Objective 1 regions. However, where the investments or part of the investments meet some or more of the priority criteria laid down in Article 6 of this Royal Decree, the contribution shall be increased by 2,5 per 100 of the amount of the investment considered as a priority.

b) 2.5 per 100 of eligible investment in regions not covered by Objective 1. However, where the investments or part of the investments meet some or more of the priority criteria laid down in Article 6 of this Royal Decree, the contribution shall be increased by 2,5 per 100 of the amount of the investment considered as a priority.

5. The percentages referred to in paragraph 4 may be higher in the Autonomous Community of Cantabria because of their situation arising from the application of the transitional support scheme for the Structural Funds, established by Regulation (EC) No 1260/1999.

6. The beneficiary's contribution shall not be less than 50 per 100 of the total eligible investment cost in the Objective 1 regions and in Cantabria, and not less than 60 per 100 of the total eligible investment in the other regions.

CHAPTER III

Basic procedural principles

Article 8. Basic principles of the procedure for granting aid.

1. The procedure for granting the aid referred to in this Royal Decree shall be initiated on its own initiative, by means of the public notice given by each of the Autonomous Communities competent for their processing and resolution. The call shall establish the selection criteria and the closing date for the submission of aid applications for each financial year, which may not be later than 30 June of each year.

2. The aid applications shall be addressed to the competent authority of the Autonomous Community where the investment is to be carried out, which shall process them and give a reasoned decision, which shall be published within a period to be determined not exceeding six months from the date of the application. the date of the relevant call. The resolution shall take account of the budgetary resources available from the European Agricultural Guidance and Guarantee Fund (EAGGF) and those of the public authorities involved in the financing of the aid in each case. in question. The payment shall be made within the time limit determined by the Autonomous Community, which shall be as short as possible in accordance with the Community Regulations.

3. Applications shall be submitted prior to the start of the corresponding investments.

4. Each of the decisions given by the competent bodies of the Autonomous Communities may not grant aid which exceeds, as a whole, the amounts of aid to be financed by the funds provided by the Commission. General Government of the State, the amounts approved for each Autonomous Community in the Sectoral Conferences of Agriculture and Rural Development.

5. The remaining funds resulting from the end of each financial year held by the Autonomous Communities will continue to maintain the specific destination for which they were transferred and will be used in the following financial year. as a cash-flow situation at the source for the granting of new grants.

6. The judgment given by each Autonomous Community shall establish individually for each application the percentages and amounts corresponding to the aid granted from the EAGGF and each participating public administration.

7. Applications which have been rejected for lack of budgetary credit may be submitted in the following immediate year, even if the works have been initiated after the first application.

Article 9. Duty of information.

The competent bodies of the Autonomous Communities shall forward to the Ministry of Agriculture, Fisheries and Food, the Directorate-General for Food, the information relating to the estimated applications and the payment of each aid. They shall also forward information on the fulfilment of the objectives and priorities set out in this Royal Decree.

For such purposes, and as soon as the system of interconnection of its computer systems with those of the Ministry of Agriculture, Fisheries and Food, in accordance with the protocols established in the agreements of collaboration, which, where appropriate, are signed to that effect, is not fully operational, the Autonomous Communities shall forward such information in accordance with the existing means.

Article 10. Advertising of the aid.

The Autonomous Communities shall notify or publish the judgment given in the procedure for granting the aid provided for in this Royal Decree, in accordance with the provisions of Articles 59 and 60 of Law 30/1992, (a) of 26 November, of a legal system of public administrations and of the common administrative procedure, without prejudice to the use of other forms of advertising which they deem appropriate.

In the advertising of aid granted or paid in accordance with this Royal Decree, the financial contribution of each public administration must be indicated. Regulation (EC) No 1159/2000 will also be complied with in respect of the advertising activities to be carried out by the Member States in relation to assistance from the Structural Funds.

Article 11. National Coordination and Monitoring Committee.

The National Coordination and Monitoring Committee is hereby established on the monitoring of the structural aid covered by this Royal Decree, attached to the Secretariat of the Ministry of Agriculture, Fisheries and Food and assisted by an Executive Committee.

Article 12. Functions.

1. It is the role of the National Committee to know about the monitoring of the management of the structural aids regulated in this Royal Decree, as well as of the means and measures that it undertakes to adopt each Administration for the correct application of the same, without prejudice to Article 18.2 of the recast text of the General Budget Law, approved by Royal Decree No 1091/1988 of 23 September 1988.

2. It is also up to him to propose possible improvements and, where appropriate, reorientation and reprogramming for the efficient correction of objectives.

3. The National Coordination and Monitoring Committee shall send to the Sectoral Conference on Agriculture and Rural Development an annual report on the monitoring of the management of the aid, as well as a management report for the period 2000-2003. present in the first quarter of 2004.

Article 13. Composition.

The National Coordination and Monitoring Committee shall be composed of the following members:

A) President, the Undersecretary of the Ministry of Agriculture, Fisheries and Food.

B) First Vice President, the Director General of Food.

C) Second Vice President, a representative of the Autonomous Communities, appointed at the Sectoral Conference on Agriculture and Rural Development.

D) Vocals:

a) Eight vowels representing the Autonomous Communities designated by the Sectoral Conference.

b) Three vowels appointed by the Ministry of Agriculture, Fisheries and Food, with a minimum rank of Subdirector-General.

c) A vowel designated by the Ministry of Science and Technology, with a minimum rank of Subdirector general.

d) A vowel designated by the Ministry of the Environment, with a minimum rank of Subdirector general.

e) A vowel designated by the Ministry of Economy, with a minimum rank of Subdirector general.

f) A vowel designated by the Ministry of Finance, with a minimum rank of Subdirector general.

g) A vowel designated by the Ministry of Health and Consumer Affairs, with a minimum rank of Subdirector general.

h) A vocal representative of the agricultural cooperatives, proposed by the respective organizations of origin.

i) A vocal representative of the agricultural professional organizations (OPAS), proposed by them.

j) Two vocal representatives of the business organizations, proposed by them.

E) A Secretary, to be appointed by the President, from among the officials of the Ministry of Agriculture, Fisheries and Food, with a voice but without a vote.

In case of illness, absence or vacancy the President shall be replaced by the First Vice-President.

Article 14. Operation.

1. The National Coordination and Monitoring Committee shall meet on an ordinary basis, at least once a year and, on an extraordinary basis, at the request of the President, on his own initiative or at the request of at least the majority of its members.

It is up to the President to convene meetings with at least ten days in advance and to set the agenda.

The time limit for the call may be reduced by a reasoned request, up to a minimum of 48 hours in advance, to the time when the relevant session is to be initiated.

2. The National Coordination and Monitoring Committee may set up committees or working groups for the study of specific topics of interest related to the purpose of the Committee and agree on the participation of the organisations in the agricultural, industrial and social agents which it considers relevant in each case.

It may also be possible to agree on the assistance of technical experts deemed necessary for the working groups or to propose the hiring of consultancy works for the assessment of the performance of the objectives set out in the this Royal Decree.

3. The National Coordination and Monitoring Committee shall establish its own rules of operation.

As not provided for in this Royal Decree and in its operating rules, the provisions of Chapter II of Title II of Law 30/1992 of 26 December 1992 shall apply.

Article 15. Executive Committee.

1. The National Coordination and Monitoring Committee shall be assisted by an Executive Committee, which shall be composed of three members representing the General Administration of the State and three representatives of the Autonomous Communities, elected from among the Member of the National Coordination and Monitoring Committee. It will be chaired by the first Vice-President of the National Coordination and Monitoring Committee.

2. The Executive Committee is responsible for the preparation of the work and reports of the National Coordination and Monitoring Committee, collecting information on monitoring the management of aid for analysis, evaluation and subsequent evaluation. elevation to that, and any other function assigned to it by the National Committee related to the aid covered by this Royal Decree.

Article 16. Funding.

The costs arising from the operation of the National Coordination and Monitoring Committee and its Executive Committee, as well as those arising from the preparation of studies and reports, will in no case increase expenditure. public and will be financed from the expenditure budget of the Ministry of Agriculture, Fisheries and Food.

Additional disposition first. Derogation for the Autonomous Community of the Canary Islands.

In the Canary Islands, aid may be granted for investments in the processing and marketing of the agricultural and forestry sectors, and those for food from these sectors, which come from third countries. countries, provided that the processed products are destined for the market in this Autonomous Community, the aid being limited to the processing capacity corresponding to their needs, provided that this processing capacity is not higher to the needs of the region.

In addition, aid in the Canary Islands may benefit from Community rules of application on the basis of the special characteristics of the Autonomous Community and in particular the Council Decision of the European Union. 91 /314/EEC of 26 June and of the derogations approved by the Commission, based on that Decision, which are reflected in the relevant operational programmes.

Additional provision second. Incompatibility with other aid from the Ministry of Agriculture, Fisheries and Food.

The contribution of aid from the Ministry of Agriculture, Fisheries and Food through this Royal Decree is incompatible with other aid from this Ministry for the same purposes.

Additional provision third. Other aid from the General Administration of the State.

The indications that are made in the Royal Decrees of delimitation of the zones of economic promotion and of the promotable zone, provided for in Law 50/1985, of 27 December, of Regional Incentives for the correction of Interterritorial economic imbalances, as regards the sectoral criteria for establishing which agri-food industries can be considered as promotable, should be understood as referring to what is established in the present Real Decree, for aid applications submitted from the entry into force of the decree.

In addition, for the various aid from the State Administration for the processing and marketing of agricultural and forestry products, the provisions of Regulation (EC) 1257/1999 shall apply in its Title IV "State aid" and the guidelines on State aid to the agricultural sector (2000/C 28/02), as well as the provisions of Article 2 (2) and Article 4 (1), (2), (3) and (4) and Annexes I and II of the present Royal Decree, as regards the list of investments and expenditure in question eligible.

In relation to aid for the processing and marketing of fishery and aquaculture products from the General Administration of the State, it will be applicable to these activities in the Articles 50 and 51 of Royal Decree 3448/2000 of 22 December 2000 laying down the basic rules for structural aid in the fisheries sector and the guidelines for the examination of State aid in the fisheries and fisheries sector aquaculture in force.

Additional provision fourth. Competency enablement.

This Royal Decree is issued under Article 149.1.13.a of the Constitution, which attributes to the State exclusive competence on the basis and coordination of the general planning of economic activity.

Additional provision fifth. Processing of applications already submitted.

Applications for aid submitted before the entry into force of this Royal Decree will be dealt with and resolved in accordance with the regulations in force at the time of filing.

However, the interested parties who submitted their application after 1 January 1999 may choose to make use of the provisions of this Royal Decree, provided that the project is in a Community For Objective 1, the aid application would have been submitted before the start of the work and meets the requirements laid down in this Royal Decree.

Single repeal provision. Repeal of regulations.

The Royal Decree 633/1995 of 21 April 1995 governing the system for the management of Community aid for the improvement of the conditions for the marketing and processing of agricultural products is repealed. In the case of silviculture referred to in Regulations (EEC) 866/90 and 867/90 and Royal Decree 2666/1998 of 11 December 1998 laying down the selection criteria for the promotion of the improvement of the conditions for the processing and marketing of agricultural products, fisheries, aquaculture and food, as well as the provisions of the the same or lower rank is contrary to the provisions of this Royal Decree.

Single transient arrangement. Priority investments for the financial year 2001.

The Autonomous Communities will submit their investment proposals to be made in 2001 within one month of the entry into force of this Royal Decree.

Final disposition first. Faculty of development.

The Minister of Agriculture, Fisheries and Food, within the scope of his powers, is empowered to lay down the rules and adopt the necessary measures for the implementation and application of this Royal Decree.

Final disposition second. Entry into force.

This Royal Decree shall enter into force on the day following that of its publication in the "Official Gazette of the State".

Given in Madrid on February 9, 2001.

JOHN CARLOS R.

The Minister of Agriculture, Fisheries and Food,

MIGUEL ARIAS CANETE

ANNEX I

Investments aimed at improving the conditions for the processing and marketing of products from the agricultural, forestry and food sectors from these sectors which cannot be assisted by means of the general budget of the State

The following investments are excluded:

1. Investments in replacement or mere replacement of equipment and machinery, unless the new acquisition corresponds to equipment or machinery other than the above, either by the technology used or by its performance.

2. Those relating to cold stores for frozen or deep-frozen products, except where their storage capacity is proportionate to the production capacity of the processing plants to which they are linked and which is intended exclusively for the storage of the products of such installations.

3. In the case of cow's milk and its derived products, the following investments:

(a) Those involving an increase in capacity, unless equivalent capacities are abandoned, and those exceeding the aggregate of the individual reference quantities at their disposal within the system of levies (a) additional regulators, producers who deliver their products to the processing unit.

(b) Those for the manufacture or marketing of the following products: Butter, whey powder, milk powder, butteroil, lactose, casein and caseinates.

However, investments for the protection and defence of the environment, in which they are obtained as serum by-products, will not be affected by this exclusion.

4. In the meat and egg sector, the following investments:

(a) Those which involve an increase in the calibration and packaging capacity of chicken eggs.

(b) Those related to the slaughter of pigs, cattle, sheep and chickens and chickens which lead to an increase in production capacity.

5. In the field of animal nutrition: All those that lead to an increase in production, except where equivalent capacity abandonment is justified in the same undertaking or in certain other undertakings.

6. In the cereals sector (excluding seeds):

(a) Cereals (except rice): Those involving an increase in storage and processing capacity, except for non-food uses.

b) Rice: Those that result in increased storage capacity.

7. In the fruit and vegetable sector: The investments of the fruit and vegetable producer organisations, which are eligible for the aid scheme of the Common Market Organisation (CMO) for fruit and vegetables with the exceptions laid down in the programmes approved for each Autonomous Community by the Commission of the European Union.

8. In the field of fodder plants: All those involving an increase in processing capacity.

9. In the oilseed and protein sectors (except seeds): All investments, except those for products intended for new non-food uses and those for which they are intended:

a) Use for energy uses.

b) The replacement of discontinuous systems with continuous, no increase in production capacity.

c) The drying of oil grains and their storage.

d) Your use by a group of companies.

10. In the potato sector: The starch and the products derived therefrom, except those for products intended for new non-food uses (with the exception of the hydrogenated products derived from starch).

11. In the olive oil sector, the following:

a) The refined olive oil.

(b) The production of oil by means of the oil in the mill itself, in respect of the olive-pomace from another mill or outside the mill, except in the latter case, investments directed at transport, storage and drying and those forming part of the use of by-products of by-products in integral options for the treatment and use thereof, provided that they are not intended for human consumption.

12. In the tobacco sector, all investments, other than those of their first processing, which do not entail an increase in the capacity for processing.

13. In the wine and alcohol sector:

(a) In the case of table wines, without a geographical indication, which means an increase in the processing capacity.

(b) Those intended for the improvement of the process of obtaining wine alcohols, except if they are accompanied by a 25 per 100 reduction in their capacity.

(c) Those relating to spirit drinks derived from wine or wine alcohols, except for those drinks which are regulated by wine alcohol.

14. In the sugar and isoglucose sector.

15. In the forestry products sector, the following:

(a) Those which, due to the use of unsuitable materials, cause serious damage to nature (such as the deterioration of forest roads, compacted soils and degradation of vegetation).

(b) Those relating to the collection and marketing of Christmas trees or intended for other ornamental purposes.

ANNEX II

Expenditure for the improvement of the processing and marketing of agricultural, forestry and food products not eligible for the general budget of the State.

1. The costs of constitution and first establishment of a company.

2. Purchase of land and related expenses (notary fees, taxes and the like).

3. The purchase of buildings that will be knocked down. If the purchase of a building is the subject of assistance from the EAGGF, the value of the land constructed and the value of the building, valued by a competent technician, is not considered eligible.

4. The purchase of premises if they have been subsidised for the last ten years. This shall be accompanied by a statement of the grants awarded to the building during the last ten years.

5. Provisional work not directly related to the implementation of the project (e.g. construction of hangars to accommodate machinery with a view to ensuring continuity of production).

However, certain provisional works may be eligible for aid in so far as they allow for a reduction in construction costs (temporary access or dock, works house and the like).

6. Work or investments started prior to the submission of the application, with the exception of the following:

(a) Technical fees, costs of studies of economic viability, of soils, of market and similar, acquisition of patents and licenses, expenses related to permits and construction insurance.

b) Ascope of building materials and purchase of machinery, even supply, but not assembly, installation and testing.

c) The preparation of the land to build on it and the realization of foundations, before the submission of the application would not be helpful, but they would not make the project inadmissible.

(d) Project members, which constitute a separable part of the project and which can be easily valued, for which no grant is requested.

7. Beautification works and recreational equipment (gardening, bar, tennis court and the like). However, the expenditure envisaged for pedagogical or commercial purposes (projection room, television sets, videos and the like) is bankable.

8. Office furniture. Telephone, fax, photocopier and computer systems are not included in this consideration. The acquisition of laboratory equipment and conference rooms is supported.

9. Purchase of normally depreciable material in one year (bottles, packaging, laboratory fungible material and the like). It is considered that the pallets, box-pallets and field boxes have a life span of more than one year and are therefore eligible, provided that this is a first acquisition or an additional acquisition, proportional to a planned enlargement, and that they are not sold with the goods (a specific account for these materials, with inputs and outputs, must exist). Nor shall those investments which are included in the accounts as expenditure be eligible.

10. Purchase and equipment of secondhand machinery and equipment.

11. Costs relating to the transfer of existing machinery to the site or site where the project is to be carried out.

12. Repairs and maintenance works. Operations performed on installed machinery to expand capacity or improve performance are not considered for repairs.

13. Value added tax (VAT) or any other tax recoverable by the beneficiary.

14. The costs of renting equipment and investments financed by leasing (leasing). However, investments financed by leasing may be eligible if there is a commitment to acquire the good within the time limit and rules laid down by the managing authority and always before the end of the period laid down for the perception of the aid. Other costs linked to the leasing contract, such as taxes, lessor's margin, refinancing costs, overheads or insurance, shall not be eligible.

Also, acquisitions of goods within the framework of a retroactive lease system will not be eligible.

15. The workforce of its own, nor the materials of the same origin.

16. The purchase of vehicles, with the exception of transport vehicles which are special and carred and which are linked to the productive activity of the undertaking, the destination of which is the processing and marketing of agricultural, forestry and forestry products. power.

Likewise, fleet replacement, not the single purchase of the base vehicle will not be supported. The amount of such equipment shall not exceed 40 per 100 of the total investment in each project.

17. Salaries and social expenditure of staff, paid by the beneficiary, provided that one of these conditions is not met:

(a) That the staff has been specially and exclusively hired to work on the project.

b) That the staff be dismissed upon completion of the works.

c) That the national legislation on social security be respected.

18. In addition to the limitations set out in the previous paragraphs, the provisions of Commission Regulation (EC) No 1685/2000 of 28 July 2000 laying down detailed rules for the application of the Regulation should be taken into account. 1260/1999 as regards the financing of the expenditure on operations co-financed by the Structural Funds.