(a)

In Article 66, the following paragraph is inserted:

‘4a.   For Croatia a special restructuring reserve shall be established as set out in point 2 of Annex IX. This reserve shall be released as of 1 April of the first quota year after accession to the extent that the on-farm consumption of milk and milk products in Croatia has decreased in the period 2008-2012.

The decision on releasing the reserve and of its distribution to the deliveries and direct sales quota shall be taken by the Commission in accordance with the procedure referred to in Article 195(2) on the basis of an assessment of a report to be submitted by Croatia by 31 December 2013. That report shall detail the results and trends of the actual restructuring process in Croatia's dairy sector, and in particular the shift from production for on-farm consumption to production for the market.’.

(b)

In Article 103k(1), the following subparagraph is added:

‘This paragraph shall not apply to Croatia for the financial year 2013. Croatia shall submit to the Commission a draft five-year support programme for the 2014-2018 programme period.’.

(c)

In Annex III, Part II, point 13 is replaced by the following:

(d)

Annex VI is replaced by the following:

(e)

In Annex IX, point 1, the following is inserted after the entry for France:

(f)

In Annex IX, point 2, the table is replaced by the following:

(g)

In Annex X, the following is inserted after the entry for France:

(h)

In Annex Xb, the following table is added:

(i)

In paragraph 2 of the Appendix to Annex XIb, the following point is added:

(j)

In paragraph 3 of the Appendix to Annex XIb, the following point is added:

(k)

In paragraph 4 of the Appendix to Annex XIb, the following point is added:

(a)

In Article 20, the following paragraph is added:

‘4.   The deadline referred to in paragraph 1 for submission of technical files shall also apply to the geographical indications of Croatia listed in Annex III.’.

(b)

In Annex III, point 9, the following geographical indications are added:

(c)

In Annex III, point 32, the following geographical indication is added:

(d)

In Annex III, the following point is inserted:

(e)

In Annex III, under product category ‘Other spirit drinks’, the following geographical indication is added:

(a)

Article 2(g) is replaced by the following:

(b)

In Article 6(2), the first subparagraph is replaced by the following:

‘2.   The Member States other than the new Member States shall ensure that land which was under permanent pasture at the date provided for the area aid applications for 2003 is maintained under permanent pasture. The new Member States other than Bulgaria, Croatia and Romania shall ensure that land which was under permanent pasture on 1 May 2004 is maintained under permanent pasture. Bulgaria and Romania shall ensure that land which was under permanent pasture on 1 January 2007 is maintained under permanent pasture. Croatia shall ensure that land which was under permanent pasture on 1 July 2013 is maintained under permanent pasture.’.

(c)

Article 33(1)(b)(iv) is replaced by the following:

(d)

In Article 51(1), the following subparagraph is added:

‘Croatia may decide to make use of the options provided for in Article 52 and Article 53(1) of this Regulation. That decision shall be notified to the Commission by 15 July 2013.’.

(e)

In Article 51(2), the following subparagraph is added:

‘By way of derogation from the second subparagraph, in the case of Croatia, this ceiling is determined on the basis of the national ceilings set out in Articles 104(4) and 112(5) as regards respectively sheepmeat and goatmeat payments and beef and veal payments referred to in Articles 52 and 53, taking into account the schedule of introduction of direct payments laid down in Article 121.’.

(f)

In Article 52, the following paragraph is inserted after the first paragraph:

‘By way of derogation from the first paragraph, Croatia may retain up to 50 % of the amount resulting from the ceiling referred to in the third subparagraph of Article 51(2) of this Regulation in order to make, on a yearly basis, an additional payment to farmers.’.

(g)

In Article 53(1), the following subparagraph is inserted after the first subparagraph:

‘By way of derogation from the first subparagraph, Croatia may retain all or part of the amount resulting from the ceiling referred to in the third subparagraph of Article 51(2) of this Regulation in order to make, on a yearly basis, an additional payment to farmers.’.

(h)

The title of Chapter 3 of Title III is replaced by the following:

(i)

The title of Article 55 is replaced by the following:

‘Introduction of the single payment scheme in the Member States having applied the single area payment scheme and in Croatia’.

(j)

In Article 55(1), the first subparagraph is replaced by the following:

‘1.   Save as otherwise provided for in this Chapter, this Title shall apply to the new Member States having applied the single area payment scheme provided for in Chapter 2 of Title V and to Croatia.’.

(k)

In Article 57(1), the following sentence is added:

‘For Croatia this reduction shall not be higher than 20 % of the annual ceiling as indicated in table 3 of Annex VIII.’.

(l)

In Article 57(3), the following sentences are added:

‘In Croatia, the use of the national reserve shall be subject to authorisation by the Commission by means of an implementing act without the assistance of the Committee referred to in Article 141. The Commission shall examine, in particular, the establishment of any national direct payment scheme applicable prior to the date of accession and the conditions under which it applied. The request to authorise the national reserve shall be sent by Croatia to the Commission by 15 July 2013.’.

(m)

The following Article is inserted:

‘Article 57a

Special national de-mining reserve in Croatia

1.   Croatia shall create a special national de-mining reserve which shall be used for the purpose of allocating, during a period of ten years after accession and in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions, payment entitlements to farmers with de-mined land returning to use for agricultural activities.

2.   Land eligible for allocation of payment entitlements under this Article shall not be eligible for allocation of payment entitlements under Articles 59 and 61.

3.   The value of the payment entitlements established under this Article shall not be higher than the value of the payment entitlements established in accordance with Articles 59 and 61, respectively.

4.   The maximum amount allocated to the special national de-mining reserve shall be EUR 9 600 000 and shall be subject to the schedule of introduction of direct payments set out in Article 121. The maximum amounts per year shall be as follows:

5.   In the first year of implementation of the single payment scheme, Croatia shall allocate payment entitlements to the farmers on the basis of the land which has been de-mined and declared by farmers in the aid applications submitted in the first year of implementation of the single payment scheme and returned to use for agricultural activities between 1 January 2005 and 31 December 2012.

6.   For the years 2013 to 2022, payment entitlements shall be allocated to farmers on the basis of the de-mined land declared by the farmers in the year in question on condition that such land was returned to use for agricultural activities during the previous calendar year, and which has been notified to the Commission in accordance with paragraph 9.

7.   In order to ensure an appropriate use of Union funds, the Commission shall, in accordance with the procedure referred to in Article 141(2), modify the ceiling in table 3 of Annex VIII in order to add thereto the amounts from the special national de-mining reserve which have been allocated by 31 December 2022.

8.   All land declared for the purpose of this Article shall comply with the definition of eligible hectare provided for in Article 34(2).

9.   By 15 July 2013, Croatia shall notify the Commission of the area of land eligible according to paragraph 5, indicating both land eligible for the support levels according to Article 59, and land eligible for the support levels according to Article 61. This notification shall also include information on the corresponding budgetary envelopes and the unused amounts. From 2014 onwards, a communication with the same information shall be sent to the Commission no later than 31 January every year and shall cover the previous calendar year, specifying the areas returned to use for agricultural activities and the corresponding budgetary envelopes.

10.   By 31 December 2012, all mined and de-mined land on which farmers might receive payment entitlement from this special national de-mining reserve shall be identified in the integrated administration and control system established in accordance with Chapter 4 of Title II.’.

(n)

In Article 59, the following paragraph is added:

‘4.   The Commission shall, in accordance with the procedure referred to in Article 141(2), adopt rules on the initial allocation of payment entitlements in Croatia.’.

(o)

In Article 61, the following paragraph is added:

‘For Croatia, the dates referred to in points (a) and (b) of the first paragraph shall be 30 June 2011.’.

(p)

In Article 69(1), the following is added to the first subparagraph:

‘Croatia may decide, by the date of accession, to use from the first year of implementation of the single payment scheme as provided for in Article 59(2) up to 10 % of the national ceiling referred to in Article 40 as indicated in table 3 of Annex VIII.’.

(q)

In Article 69(9), first subparagraph, the following point is inserted after point (a):

(r)

Article 104(4) is replaced by the following:

‘4.   The following national ceilings shall apply:

(s)

In Article 112(5), the following is inserted after the entry for France:

(t)

Article 121 is replaced by the following:

‘Article 121

Introduction of direct payments

In the new Member States other than Bulgaria, Croatia and Romania, direct payments shall be introduced in accordance with the following schedule of increments expressed as a percentage of the then applicable level of such payments in the Member States other than the new Member States:

In Bulgaria and Romania, direct payments shall be introduced in accordance with the following schedule of increments expressed as a percentage of the then applicable level of such payments in the Member States other than the new Member States:

In Croatia, direct payments shall be introduced in accordance with the following schedule of increments expressed as a percentage of the then applicable level of such payments in the Member States other than the new Member States:

(u)

In Article 132(2), the following subparagraph is inserted after the second subparagraph:

‘By way of derogation from points (a) and (b) of the first subparagraph, Croatia shall have the possibility to complement direct payments up to 100 % of the level applicable in Member States other than the new Member States.’.

(v)

In Annex VII, the following is inserted after the entry for France:

(w)

In Annex VIII, the following table is added:

‘Table 3  (1)