21. 11. 96 Official Journal of the European Communities No L 297/49 COUNCIL REGULATION (EC) No 2202/96 of 28 October 1996 introducing a Community aid scheme for producers of certain citrus fruits THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission('), Having regard to the opinion of the European Parliament (2), Having regard to the opinion of the Economic and Social Committee (), Whereas the present situation in the citrus fruit sector continues to be marked by serious difficulties in the disposal of Community production; whereas these difficulties are attributable mainly to the varietal aspects of production, production surpluses and marketing conditions for fresh and processed citrus fruit; Whereas the Community supply of lemons, grapefruit, oranges and mandarins continues to keep pace with demand on the market in fresh fruit products for some varieties of products; whereas production of clementines has increased considerably in recent years to the extent that surpluses are being created; whereas satsumas, which are being replaced by clementines on the market in fresh fruit products, are also in surplus; whereas a system of support for producers should therefore provide an incentive for the disposal of the citrus fruit concerned with a view to their processing into juice and segments; Whereas it seems appropriate to implement this system by means of contracts concluded between processors and producer organizations in order to ensure, firstly, regular supplies for processing industries and, secondly, effective checks on the products to be delivered and on the fact that they have actually been processed by the industry; whereas the system should guarantee supplies to consumers at reasonable prices and quality; Whereas this new system must be able to function with a sufficient number of producer organizations from the outset; whereas, to that end, ‘producer organizations granted preliminary recognition’ within the meaning of this Regulation means not only the producer organizations referred to in Article 14 of Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organization of the market in fruit and (") O] No C 191, 2. 7. 1996, p. 7. () O] No C 277, 23. 9. 199. ') O] No C 212, 22. 7. 1996, p. 88. vegetables (*), but also those referred to in Article 13 of that Regulation; Whereas, in order to encourage producers to present their products for processing rather than withdrawal, provision should be made for the grant of an aid to producer organizations which deliver citrus fruit to the processing industries; whereas the amounts of the aid should be established for a transitional period of six years after which they should be a fixed sum; whereas those amounts are to be calculated on the basis of the ratio existing in  1995/96 between the financial compensation and the minimum price and be subject to an annual gradual reduction over the transitional period, except in the case of clementines and satsumas, in order to meet the general objectives of the common organization of the market in fresh products; whereas in the case of grapefruit, the aid to be applied is that established for lemons; Whereas the production of citrus fruit features structural shortcomings in terms of marketing which are demonstrated by the excessive dispersal of supply; whereas therefore individual producers who deliver all their citrus fruit for processing through producer organizations should qualify under the system established by this Regulation; whereas for that reason and in order to ensure equality of treatment with the fresh products sector, provision should be made for the amount of the aid to be reduced; whereas, for the same structural reasons, it would be justified to grant an increase in the aid for producer organizations which conclude a contract for more than one year and in respect of minimum quantities; ‘ Whereas the quantities that may be withdrawn from the market are limited by Regulation (EC) No 2200/96; whereas in cases where production is rising steps should be taken to prevent systematic recourse to processing as an alternative outlet; whereas the fixing of a threshold for processing, the overrunning of which, calculated on the basis of an average over three marketing years, would entail a reduction in aid in the current marketing year, would seem to be an appropriate measure to that end; whereas fixed thresholds should be laid down, based on the average quantity eligible for financial compensation during a reference period; whereas, provision should be made for introducing a system of advances, as aid may be reduced at the end of a marketing year as a result of overrunning of the threshold for processing; Whereas the provisions of Regulation (EC) No 2200/96 should be applied to the processed citrus fruit sector to avoid duplication of rules and control bodies; whereas provision should also be made for penalties to guarantee uniform application of the new scheme throughout the Community, (*) See page | of this Official Journal.