No L 78/14 Official Journal of the European Communities 20. 3. 97 COMMISSION REGULATION (EC) No 504/97 of 19 March 1997 laying down detailed rules for the application of Council Regulation (EC) No 2201/96 as regards the system of production aid for products processed from fruit and vegetables THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 2201/96 of 28 October 1996 on the common organization of the markets in processed fruit and vegetable products ('), and in particular Articles 1 (3), 4 (9) and 6 (5), 25, 26 and 27 (1) thereof, Whereas Regulation (EC) No 2201/96 introduces a system of production aid for the products listed in Annex 1 thereto and obtained from fruit and vegetables harvested in the Community; Whereas the products on which the aid is payable, and their marketing years, should be defined with a view to ensuring a uniform application of the arrangements; Whereas, with a view to facilitating the way the arrange- ments operate, the authorities should be apprised of each processor wishing to qualify under the system; whereas processors should also notify the authorities of the infor- mation needed to ensure that the system operates correctly; Whereas the new system must be capable of operating from the outset with a sufficient number of producer organizations; whereas, in accordance and by analogy with Council Regulation (EC) No 2202/96 of 28 October 1996 introducing a Community aid scheme for producers of certain citrus fruits (%), the term ‘producer organizations ... provisionally authorized’ in the first subparagraph of Article 2 (2) of Regulation (EC) No 2201/96 must be interpreted as covering not only producer organizations provisionally recognized by virtue of Article 14 of Regula- tion (EC) No 2200/96 of 28 October 1996 on the common organization of the market in fruit and veget- ables (¥) but also producer organizations as referred to in Article 13 of that Regulation; Whereas the production aid system is based on contracts between producer organizations recognized or provi- sionally recognized pursuant to Regulation (EC) No 2200/96 or individual producers during the period referred to in the second subparagraph of Article 2 (2) of o L 297, 21. 11. 1996, p. 29. o L 297, 21. 11. 1996, p. 49. o L 297, 21. 11. 1996, p. 1. ZZ2Z Regulation (EC) No 2201/96, on the one hand, and processors, on the other hand; whereas, producers and producer organizations may also act as processors in certain circumstances; whereas the types of contracts and the particulars to be included therein should be specified with a view to the application of the aid system; Whereas, such contracts must be concluded before the beginning of each marketing year; whereas the parties thereto should nevertheless be authorized to increase, by way of amendments thereto and within a definite ceiling, the quantities originally stipulated therein, so that the system may be as efficient as possible; Whereas the tomato harvest depends on the area planted during the year in question and may accordingly vary substantially from year to year; whereas the quantities available for processing are consequently subject to fluctu- ations; whereas, in order to encourage producers to take account of the real needs of the processing industry and to adjust their areas planted in consequence, provision should be made for a system of preliminary contracts; whereas such contracts should be concluded before the planting period, in such a way that any planted area will produce only such quantities as can later be disposed of for processing; Whereas the number of aid applications to be submitted by processors must be determined in line with processing; whereas aid applications must include all particulars necessary for calculating the aid to be paid to processors; Whereas, the system of production aid set up by Regula- tion (EC) No 2201/96 is based essentially on direct rela- tions between producer organizations and processors and on the obligation as to the minimum price; whereas it should be provided that a price at least equal to the minimum price for the raw material is to be paid direct by the processor to the producer organization by bank or postal transfer; whereas, in order to administer the system rationally and to facilitate controls, that obligation should be deemed to have been discharged once the processor has made the abovementioned transfer; Whereas, in return for the obligations imposed on proces- sors of processed tomato products, provision should be made for the possibility of provisional payment of part of the production aid; whereas such provisional payments must be subject to the lodging of a security guaranteeing reimbursement in cases where the conditions for re- ceiving provisional production aid are not observed;