S.L. 146.4 Art. 17Penalties for discrepancies between quantities accepted for processing and quantities actually processed.

(1) Except in cases of force majeure, where it is found that the full quantity of tomatoes accepted for processing under contract has not been processed into one of the products listed in the First

Schedule to the 2003 Regulations, the processor shall pay the Director an amount equal to twice the unit amount of the aid multiplied by the quantity of the raw material concerned which has not been processed, plus interest calculated in accordance with regulation 18. In addition, except in cases duly justified to the satisfaction of the Director, the processor’s approval as provided for in regulation 3(6) of the 2003 Regulations shall be suspended:

(a) for the marketing year following the finding, if the difference found between the quantity accepted for processing and the quantity actually processed is more than 10% but no more than 20% of the quantity accepted for processing;

(b) for two marketing years following the finding, if the difference is more than 20% of the quantity accepted for processing. For the purposes of applying paragraphs (a) and (b), any quantities of tomatoes used in the manufacture of finished products not complying with the minimum quality requirements, in excess of an 8% tolerance, shall be treated as quantities not processed.

(2) Where the conditions for applying subregulation (1) are met, the Director shall provide that such approval as referred to in regulation 3(6) of the 2003 Regulations is to be withdrawn from processors in the following cases:

(a) where the individual producer or producer organisation makes false declarations with the collaboration of the processor;

(b) where the processor fails to pay the price referred to in regulation 7(6)(e) of the 2003 Regulations;

(c) where the processor fails to pay the penalties provided for in subregulation (1);

(d) where the processor repeatedly fails to pay the penalties as provided for in subregulation (1);

(e) where the processor fails to comply with the obligations referred to in regulation 17 of the 2003 Regulations.

The duration of the exclusion of the processor from the aid scheme shall not be for less than one marketing year and such duration shall be determined by the Director having regard to the seriousness of the failure.