Taking into account the amendments made to Royal Decree 1535/1987 of 11 December 1987, on the one hand, by Royal Decree 302/1993 of 26 February 1993, in order to adapt it to the control and monitoring of incentives The Court of Justice has held that the Court of Justice of the European Communities, the Court of Justice and the Court of Justice of the European Communities, has the right to apply the rules on aid and public subsidies, as amended by Law 31/1990 of 27 December 1993, and, moreover, by Royal Decree 2315/1993 of 29 December 1993. of December, it is now necessary to make the modification of the rules of procedure contained in the Order of 17 January 1989 of the Ministry of Economy and Finance, incorporating at the same time the technical improvements which the experience gained since the implementation of the regional incentive scheme has been.

On the basis of the final provision of Royal Decree 1535/1987, as amended by Royal Decree 2315/1993, already mentioned, which empowers the Ministry of Economy and Finance to dictate how many provisions the application and implementation of In order to make it easier for entrepreneurs to access the regional incentives provided for in the various Royal Decrees of Delimitation of Promotional Zones, the Ministry of Economy and Finance considers it necessary to regulate the the same, so that they orient the petitioners and channel the requests according to norms of common management for all areas, approving standard forms of printed forms, which should lead to greater efficiency and agility in management and an increase in transparency and objectivity in decisions.

In its virtue, this Ministry has had to dispose:

First. Applications for the granting of regional incentives and their processing. The procedure for granting regional incentives shall be initiated at the request of the undertakings concerned. Applications to be submitted must be submitted to the competent authority of the Autonomous Community where the project is to be carried out, prior to the initiation of the investments.

2. The request for incentives shall be made up of the following documents:

(a) Instance addressed to the Minister for Economic Affairs and Finance, in accordance with the model set out in Annex I to this Order, accompanied by a summary of the company's and the project's basic data, adjusted to the standard form established by the Directorate-General for Regional Economic Incentives.

(b) Supporting documentation of the personal circumstances of the applicant or of the registrants, if it is a constituted company, and if it is in the form of a constitution, draft statutes as well as data of the promoter.

c) Memory of the investment project, as established by the Directorate General of Regional Economic Incentives.

d) Justification of the company's compliance with its tax obligations and in the face of social security at the filing date of the application.

3. If, in accordance with the above, the Autonomous Community considers the application to be incomplete, it shall require the petitioner to remedy the deficiencies, stating which are the deficiencies and, in accordance with Article 71.1 of Law 30/1992, The Legal System of the Public Administrations and the Common Administrative Procedure, will grant you for this a period of ten days, with indication that, if you do not do so, you will be given a withdrawal of your request, which will be archived without further delay. procedure.

4. Verified by the Autonomous Community that the application is duly completed, it will be forwarded to the Directorate-General for Regional Economic Incentives, accompanied by its own report.

5. In its report, the Autonomous Community shall act on the following circumstances:

Failure to initiate investments at the date of receipt of the application, as provided for in Article 25 of Royal Decree 1535/1987, on which the competent authority of the Autonomous Community will issue certification.

Adequacy of the project to the principles set out in the corresponding Royal Decree of delimitation of the promotable zone in which it is located.

Analysis of technical, economic and financial feasibility of the project.

Concurrence of other aid requested or granted to the same project, of which the autonomic administration may have knowledge.

Any other end of interest for the resolution of the case.

6. Where the Royal Decree for the delimitation of the zone is to be promoted, and in the case of projects whose investment in fixed assets is less than the amount which, for these purposes, is established in the same, the Autonomous Community carry out a proposal for the assessment of the project which will be forwarded to the Directorate-General for Regional Economic Incentives. The proposal will indicate the aid to be granted to the project, expressed in percentage terms on the eligible investment, with the breakdown of the project. If deductions have been made, considering that some of the investments are not eligible, the nature and amount of such deductions shall be indicated.

7. Under the terms of the General Directorate of Regional Economic Incentives, the latter may ask the petitioner to provide additional data and internal or external expert reports from the company to form adjusted criteria for the circumstances that are present in the project whose application for incentives is analysed. These requirements must be completed within a period of two months, indicating to the applicant that, after that period without reply, the applicant will be entitled to the corresponding procedure.

8. Once the documentation described in the previous paragraphs has been completed, the Directorate-General for Regional Economic Incentives shall send copies of the document referred to in point 1 (a) to all the members of the Governing Council or of the working group to which the assessment of the project corresponds, with a minimum of seven days ' notice to the date of the conclusion of its working meeting. It may also send copies of the document referred to in point (c) to the members of the assessment body in particular affected by the sectoral specification.

Second. Preparation of proposals and the granting of regional incentives. -1. The body to which the project assessment corresponds will examine the applications and make the proposal as appropriate. The basic criteria for the qualification of the projects will be those set out in the corresponding Royal Decree of delimitation of the promotable zone where the investment is located.

2. Formulated the proposals in accordance with the provisions of the previous paragraph, the Government of the Government for Economic Affairs or the Minister of Economy and Finance, in accordance with the provisions of Article 27 of Royal Decree 1535/1987, The Commission will be able to resolve the application files for these aid. The maximum time limit for the application of regional incentives for the granting of regional incentives shall be eight months from the date of receipt of the application. This period shall be extended in accordance with the provisions of the Law on the Legal Regime of Public Administrations and the Common Administrative Procedure. Where the initial period has elapsed and, where appropriate, the extension, without any resolution, the request for the granting of the incentives shall be rejected. The decision, whether expressed or presumed, ends the administrative route, without any ordinary administrative appeal against it.

3. The Directorate-General for Regional Economic Incentives shall notify the persons concerned, through the competent authority of the Autonomous Community, of the individual resolution for each project. Such a resolution shall incorporate the rights and obligations affecting the development of the same, among which special commitments may be included with the Administration, related to the objectives of Law 50/1985. If the decision is not expressly accepted by the person concerned within a maximum of 15 working days, the concession shall be without effect, in accordance with the provisions of Article 28 of Royal Decree 1535/1987.

4. Where the benefits are granted to a Company in formation, the individual resolution shall be given a period of four months for the beneficiary to present the evidence of the Company's registration circumstances. That period may be extended by the Autonomous Community, either on its own initiative or at the request of the person concerned, for a similar period. After the deadline without having submitted the documentation, the Autonomous Community shall communicate it to the Directorate-General for Regional Economic Incentives to proceed in accordance with the provisions of Article 29 of the Regulation. development of Law 50/1985 of 27 December.

5. The individual resolution shall set the date of expiry of the grant of incentives which determines the end of the period to comply with all the conditions laid down in the individual resolution itself. Compliance with these conditions shall be maintained at that date of expiry. The justification for such compliance with the competent authority of the Autonomous Community shall be made by the person concerned within four months of the end of the period of validity.

The individual resolution may set partial deadlines for the beneficiary to credit the execution, at least, of a certain percentage of the subsidised investment, or the fulfilment of other conditions. In the event that the same is not true, the Directorate-General for Regional Economic Incentives may grant an extension or, where appropriate, declare the beneficiary to be entitled to the right, with the result that the loss of the grant and file of the file.

Third. Incidents following the granting of incentives and modifications to the project. -1. In accordance with Article 32.1 of Royal Decree 1535/1987, the Directorate-General for Regional Economic Incentives will resolve the incidents relating to the file for the granting of regional incentives to be produced after the and, in particular, the assumptions of: changes in ownership, changes of location, changes in the activity, extensions for the execution of the project and for the fulfilment of the particular conditions of the concession, as well as the changes to the initial project, provided that they do not change the incentives granted, the amount of the investment approved or the number of jobs to be created, which exceeds the limits laid down in the regional incentive agreement.

The General Directorate of Regional Economic Incentives must resolve within the maximum period of eight months, computed from the initiation of the procedure.

Where the procedure has been requested by a person concerned, the period of the unresolved period may be understood to determine the dismissal of the request.

In the case of procedures which are initiated on an ex officio basis which are not capable of producing favourable acts for the parties concerned, the period of the unresolved period shall result in their expiry, which shall be laid down within 30 days of the date on which the the expiry of the eight-month period to be resolved. If the cessation of the proceedings is attributable to the person concerned, the time limit for resolving the proceedings shall be interrupted until the cause of the cessation of the proceedings has remained.

Against the resolution that puts an end to the procedure, it is only possible, on an administrative basis, for ordinary recourse to the Minister of Economy and Finance.

2. Changes to the initial project involving changes in the incentives, the amount of investment approved or the number of jobs to be created shall be subject to the formalities laid down for the assessment and approval of a new (a) a project, where these amendments exceed the permitted limits which would have been laid down in the initial agreement for the granting of regional incentives, without application in this case the requirement not to initiate investment in the time to make the changes. The competent body shall, within the time limit laid down in Article 28 (1) of Royal Decree 1535/1987, decide which, without resolving, the request for amendment may be deemed to be rejected. If the procedure for the amendment has been initiated on its own initiative, the fourth subparagraph of Article 32 (1) of that Royal Decree shall apply.

3. By way of derogation from the above paragraphs, the Autonomous Community may accept amendments to the various chapters of the approved investment, with the double condition that the oscillation, in more or less, does not exceed 10 per 100 of each chapter and that, as a whole, the total investment approved will not vary. The Directorate-General for Regional Economic Incentives will be informed of these decisions.

Fourth. Justification for the fulfilment of the conditions. The justification for the fulfilment of the conditions shall be made by filing with the competent authority of the Autonomous Community, and within the period of four months referred to in Article 2.5 of this Regulation. this Order, of the following documents:

1. Tax obligations-compliance with the tax obligations will be credited by the provision of the documentation provided for in the Order of the Ministry of Economy and Finance of 28 April 1986 on the justification of compliance with the tax obligations for beneficiaries of grants awarded from the General Budget of the State.

2. Social security obligations-The fulfilment of the obligations towards social security will be accredited by the provision of the documentation provided for in the Order of the Ministry of Economy and Finance of 25 November 1987, on the grounds of compliance with the obligations of social security by beneficiaries of grants awarded to the general budget of the State.

3. Jobs.-The fulfilment of the condition relating to the setting up and maintenance, to a certain date, of the posts shall be credited by the appropriate certificate of the competent labour agency.

4. Level of self-financing. The level of self-financing required will be specified in the company's own funds, in accordance with the definitions laid down in the General Accounting Plan, approved by Royal Decree 1643/1990, of 20 In December, the existence of such a situation, which must be achieved in a certain period of time, as well as its maintenance until the end of the term of validity, will be justified by the provision of the appropriate balance sheets.

5. Investments made. -Investments made in land acquisition will be credited through the public deed of sale, duly cleared of their corresponding taxes. The other investments shall be credited with the contribution of the contracts in which the goods acquired or the services provided are described and identified, their prices and conditions of payment in each case, as well as the justification under the commercial practice of payments made and their accounting.

Where there is a link, in accordance with the provisions of the Corporate Tax Act, between the aid beneficiary and the person providing the services or delivering the goods constituting the eligible investment, the transactions shall be valued according to the prices that would be agreed under normal market conditions between independent companies.

Fifth. Settlement of grants to fund lost. -1. Within the period of validity, the beneficiary may apply to the Autonomous Community for the full recovery of the grant, crediting the completion of the entire approved investment, or partial charges, as the aid is justified. implementation of such investment. In both cases, compliance with those conditions must be established, the time limit for which has expired prior to the filing of the application for recovery and the corresponding guarantee in the terms indicated below. Even if the total amount of the subsidy has been received before the end of the term of validity, the beneficiary must, within the time limit laid down in point 2 5 of this Order, prove that, at the date of the expiry of the grant, they have been the conditions set out in the individual resolution are met and this compliance is maintained.

After the expiry of the term of validity, the beneficiary may only request the total settlement of the grant.

2. The application for the recovery of a lost fund shall be in accordance with the model attached as Annex II and, in accordance with Article 30 of Royal Decree 1535/1987, shall be accompanied by the following documents:

(a) Justification to the date of filing of the request for recovery of the company's compliance with its tax obligations and in the face of social security.

(b) Accrediting evidence of the investments made corresponding to the settlement and linked to the approved investment, in accordance with the provisions of point 4 (5) of this Order and a list of such investments supporting documents.

However, in order to speed up the processing and as an alternative to the supporting documents, the Autonomous Community will be able to accept audits of audits, which, if they are considered to be in conformity, will provide a basis for the issuance of the the reasoned investment accreditation referred to in point 6 (1) of this Order. Such reviews shall contain at least the information necessary for the Autonomous Community to extend such accreditation.

In any case, the competent authority of the Autonomous Community may obtain the necessary documentation and expertise to clarify the extremes concerning the justification of investments. All this, without prejudice to the control and inspection powers recognized both to the Directorate General of Regional Economic Incentives and to the General Intervention of the State Administration, as provided for in Articles 33, 34 and 35 of the implementing regulation of Law 50/1985.

c) Accreditation of compliance with other conditions set out in the individual resolution and which should be justified at that time.

(d) The corresponding guarantee, in the cases referred to in the following paragraph 3 of this point.

3. In the case of payments requested within the period of validity, it will be necessary, in order for the settlement file to be processed, that the beneficiary will provide guarantees in favor of the State, which must be previously authorized by the Directorate-General for Regional Economic Incentives, being able to adopt any of these modalities:

(a) Banking Aval, in which it must be specifically stated that it cannot be cancelled until the Administration authorizes it and that it can be performed without more than the guarantor is required by the Administration to do so. It may be granted by credit institutions, registered in the corresponding Registers of the Banco de España, and shall be attached to the model attached as Annex III to this Order.

b) Mortgage guarantee, in the form of a first mortgage on land and facilities owned by the company, which must be accepted by the Administration and valued, both materially, by any of the Mortgage market admitted under the legislation in force, as legally, by the Administration itself.

They may be used in addition, if any, both forms of guarantee. The Directorate-General for Regional Economic Incentives may also authorise the replacement of one of them, previously constituted, on the other.

4. The security shall be established in any of its forms by a sufficient amount to ensure the reimbursement of the amount whose liquidation is requested, plus the legal interests that correspond to it increased by 20 per 100, in anticipation of fluctuations in the interest rate and other possible additional charges.

For the calculation of the interest, the period between the date of establishment of the guarantee and the end of the term of validity indicated in the individual decision to grant increased incentives shall be used. six months. If that period of validity is extended, a supplementary guarantee, which shall be established by the Directorate-General for Regional Economic Incentives, shall be provided to cover the interest of the extension granted.

The interest rate to be used will be the legal interest of the money set in the General Budget Law of the State in force at the time the guarantee is established.

5. The following criteria shall also be taken into account in the presentation and processing of the lost fund grant settlements:

(a) In no case shall the amount of the incentives be paid before the company is constituted and registered in the corresponding Register and that its social organs have accepted the terms of the concession, as provided for in the in point 1 of Article 29 of Royal Decree 1535/1987. No incentive shall be paid before the presentation of the grant of incentives and their conditions has been credited to that Register for the purposes of their entry into their registration sheet by means of a marginal note.

(b) The individual resolution may establish the number and amount of settlements that may be submitted for each project. In any case, partial payments may not be less than 5,000,000 pesetas.

(c) Where a period has been set for the beneficiary to prove that a given percentage of the investment is to be implemented, the first partial payment of the subsidy may not be paid without the compliance with that condition has been established.

(d) No grant payment may be paid if the corresponding guarantee has not been provided, where applicable.

e) In accordance with the provisions of Article 10.2 of Royal Decree 1535/1987, investments approved in the individual resolution of a project may also be made by means of deferred payment or lease financial. In the first case, they shall be admitted as paid for the purposes of liquidation of the grant, if the beneficiary justifies the acceptance of letters of exchange, which are provided by the sellers in the context of the contracts relating to the goods. acquired. In the second case, the subsidy corresponding to those investments shall be paid in so far as the payment of the periodic quotas is justified.

In both cases, the investment thus made must become the property of the company before the end of the term of validity established in each individual resolution.

Sixth. -Controls and accreditations of the Autonomous Community. -1. The Autonomous Community, having examined the documents submitted by the beneficiary and carrying out the checks it considers appropriate, shall, if it does so, issue the positive report provided for in Article 23.1 (g) of the Implementing Regulation. of Law 50/1985, where it will be established that the investments have been made in accordance with the approved project and that the conditions required up to that moment have been met. All without prejudice to the powers of control and inspection recognized both to the Directorate-General for Regional Economic Incentives and to the General Intervention of the State Administration, as provided for in Articles 33, 34 and 35 of the implementing regulation of Law 50/1985.

2. The investment accreditation report, which shall be issued by the competent authority of the Autonomous Community or by a person to whom it is formally delegated, shall be accommodated in the format attached as Annex IV (obverse) to this Order and include the proposal for the partial or total liquidation of the grant.

This settlement may be satisfied to the beneficiary or to a financial institution by completing the model set out in Annex IV (reverse).

Seventh. Credit provisions and payment of grants. -1. In order to continue the process of managing the collection of grants, the Autonomous Community will send the following documents to the Directorate-General for Regional Economic Incentives:

Application for recovery (Annex II made by the person concerned, which shall include a timetable for the provision of successive collection applications, where appropriate, and the undertaking's declaration of the obligations which it has fulfilled up to that date. time, within those indicated in the respective individual resolution.

The credit report of the implementation of investments issued by the Autonomous Community, as provided for in paragraph 1 of point 6.

Justies of the company's compliance with its tax obligations and the social security system, at the date of application for recovery, as provided for in point 4, numbers 1 and 2.

The corresponding warranty, if applicable.

2. The expenditure file for each project shall be proposed by the Directorate-General for Regional Economic Incentives, in accordance with the available budgetary resources, when the first liquidation of the grant is processed, making provisions credit for the exercises that come from. In addition, in the case of grants which may be co-financed by a Community Structural Fund, the conditions required by the legislation applicable to the payment shall be met by the person concerned, where they are communicated to him.

3. The provisions of credit, which shall be based on the updated schedules of investment justification proposed by the parties concerned, may be amended by the Directorate-General for Regional Economic Incentives if it has received other claims for recovery that could not be met with the credit available at that time.

Eighth. Compliance with the conditions of the individual resolution. -1. After the execution of the project and the expiry of the period of validity, the Autonomous Community, as provided for in Article 23.1 (g) of Royal Decree 1535/1987, shall, on its own initiative or at the request of the person concerned, verify that it has implemented in accordance with the conditions set out in the individual decision to grant regional incentives. If this is the case, it shall issue a positive report on the implementation of the project in accordance with the conditions laid down, in accordance with the model attached as Annex V to this Order, referring it to the Directorate-General for Regional Economic Incentives, to which it is appropriate to order the release of the guarantees which it would have established, in accordance with the provisions of Article 35 (2) of Royal Decree 1535/1987.

2. The Autonomous Community shall send a report on the development of the projects to the Directorate-General for Regional Economic Incentives to enable it to monitor the proper implementation of the regional incentives and to ensure that provide the Governing Council with regular information on the aid.

Ninth. Verification and procedure for non-compliance. -1. If, as a result of the report of the Autonomous Community, provided for in point 6, or the performance of inspection or inspection measures, it is established that the project has not been implemented in accordance with the conditions laid down, will proceed, on the part of the Directorate General of Regional Economic Incentives, to analyse the causes and the extent of the non-compliance, being able to grant an extension for the complete implementation of the project or, if necessary, to initiate the procedure of failure.

2. Where it is established that the non-compliance is not of a large entity, is not attributable to the beneficiary undertaking, or circumstances of public interest so advise, the Directorate-General for Regional Economic Incentives may choose to initiate the procedure for amending the initial project.

3. The infringement procedure shall be initiated by means of the communication to the beneficiary, by the Directorate-General of Regional Economic Incentives, of the determining causes thereof. The interested parties may, at any time in the proceedings, prior to the hearing procedure, submit claims and provide documents or other evidence. In those procedures where, due to the complexity and size of the investment, it is considered necessary, a report from the Rector Council will be requested.

4. Having instructed the procedure, the Directorate-General for Regional Economic Incentives will put the proposal for a resolution of the opinion to the interested parties, who will have a period of 15 days to allege and to present the documents and justifications that estimates relevant.

5. If the arguments have been submitted or after the deadline of 15 days without reply from the beneficiary, the actions, together with the proposal of the Directorate-General for Regional Economic Incentives, shall be forwarded to the holder of the Ministry of Economy and Finance or the Government's Delegate Committee for Economic Affairs, in line with their respective powers, to adopt the resolution that proceeds. The motion for a resolution shall give an opinion on the obligation to reinstate, where appropriate, in accordance with Article 37 of Royal Decree 1535/1987.

6. The maximum time limit for resolving the default procedures will be six months, computed from the initiation agreement. Where the period of 30 days from the expiry of the six-month period has elapsed without a decision being taken, the procedure shall be deemed to have expired, thus declaring, either on its own initiative or at the request of the person concerned. If the cessation of the proceedings is attributable to the person concerned, the time limit for resolving the proceedings shall be interrupted until the cause of the cessation of the proceedings has remained.

10th. The Commission will also take into account the fact that the Commission is not in a position to take the necessary measures to ensure that the Commission is not in a position to take the necessary measures. Chapter VIII of the Regulation adopted by Royal Decree 1535/1987.

11th. Recovery of the subsidies and the regime of infringements and penalties.-The reimbursement of subsidies and the regime of infringements and penalties will be accommodated in the provisions of Chapter IX of the Regulation approved by Royal Decree 1535/1987, amended by the Royal Decrees 302/1993 and 2315/1993.

Repeal provision.

The Order of the Ministry of Economy and Finance of 17 January 1989, of complementary rules for the processing and management of regional economic incentives, is hereby repealed.

Final disposition.

This Order shall enter into force on the day following its publication in the Official Journal of the State.

Madrid, 23 May 1994.

SOLBES MIRA

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