S.L. 146.2 Art. 7Approved contracts.

(1) In order to participate in the aid scheme the processor shall first have entered into a written contract with one or more producers for the processing of the products to be supplied to the processor by the producers, hereinafter referred to as the contract, which shall take one of the following forms:

(a) a contract between an individual producer or a producer organisation and a processor for the processing of tomatoes;

(b) a contract between a producer organisation and a processor for the processing of peaches, pears, prunes and dried figs;

(c) a commitment to supply, where the producer also acts as a processor.

(2) In order to participate in the aid scheme the processor must submit the contract to the competent authority for its approval.

(3) When the competent authority approves a contract, giving due consideration to the conditions imposed in relation to contracts in this regulation, the competent authority shall assign to it an identification number to be inserted on the IACS System.

(4) Only one contract may be signed each calendar year:

(a) between an individual producer or a producer organisation and a processor in respect of tomatoes; and

(b) between a producer organisation and a processor in respect of tomatoes, peaches, pears, prunes and dried figs.

(5) In order that a contract may be submitted to the competent authority for its approval such contract shall be signed by not later than:

(a) the 15th July and at least ten days before deliveries are to commence in the 2004/2005 marketing year, and the 15th July in subsequent years in respect of tomatoes;

(b) the 15th July, or seven working days before deliveries are to commence, in respect of the processing of peaches;

(c) the 31st July, or seven working days before deliveries are to commence, in respect of the processing of pears;

(d) before the start of the marketing year, in respect of prunes and dried figs.

(6) In order that a contract may be submitted to the competent authority for approval, such contract shall contain the following minimum requirements:

(a) (i) in the case of processing of tomatoes, the name and address of the individual producer or the name and address of the producer organisation;

(ii) in the case of processing of peaches, pears, prunes and, or dried figs, the name and address of the producer organisation;

(b) the name and address of the processor;

(c) the quantities of the raw materials to be delivered for processing;

(d) a declaration obliging the processor to process the quantities delivered under the contract concerned into one of the products and to meet the standards laid down in accordance with regulation 11;

(e) the price to be paid by the processor to the producer for the raw materials which may vary depending on variety and, or quality and, or the delivery period;

(f) the compensation payable if either the processor or the producer fails to fulfil their contractual obligations, in particular as regards payment deadlines and the obligation to deliver and accept the quantities covered by the contract: Provided that in the case of tomatoes, peaches and pears, the contract shall also indicate the delivery stage to which the price referred to in paragraph (e) applies and the terms of payment. Nevertheless any payment deadline shall not exceed two months from the end of the delivery period as outlined in regulation 6(2): Provided that only in the case of prunes and dried figs, the price referred to in paragraph (e), having due regard to the amendments to the contract provided for in regulation 8, shall not include, in particular but not limited to, costs connected with packing, loading, transport, unloading and the payment of taxes, which shall, where applicable, be indicated separately.

(7) Contracts shall specify the minimum price set by the European Commission for prunes and dried figs.

(8) The competent authority may adopt additional requirements in relation to contracts:

Provided that such requirements shall be communicated to the stakeholders by no later than the end of December of the preceding year of each marketing year.