Rural Development Programme for Malta 2014-2020

Part financed by the European Union Co-financing Rate:

75% European Union; 25% Government of Malta

The European Agricultural Fund for Rural Development: Europe investing in rural areas

Guidance Notes for Applications for Funding under Measure 3.1 of the Rural

Development Programme 2014-2020 – ‘Support for New Participation in

Quality Schemes’

Version No: 1.3 – 14/08/2018

MANAGING AUTHORITY (EAFRD)

Funds and Programmes Division, Triq il-Kukkanja,

Santa Venera (Malta), SVR 1411

Telephone: (+)356 2200 1108

Email: rdd.meae@gov.mt

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Contents Definitions ................................................................................................................................... 6

1.0 Introduction ........................................................................................................................... 8

1.1 Authorities ....................................................................................................................... 8

1.2 Objectives......................................................................................................................... 8

1.3 Contribution to cross-cutting objectives, focus areas and needs ......................................... 9

Contribution to Cross-Cutting Objectives ....................................................................................... 9

Contribution to Focus Areas ........................................................................................................... 9

Contribution to the Needs of the Rural Development Programme ............................................. 10

1.4 Scope ............................................................................................................................. 10

1.5 Investment Priorities ....................................................................................................... 11

1.6 Complementarity and demarcation with other measures ................................................. 11

1.7 Duration ......................................................................................................................... 11

1.8 Budget ............................................................................................................................ 12

1.9 Maximum Grant Value and Aid Intensity ......................................................................... 12

1.10 Implementation .............................................................................................................. 12

1.11 Calls Procedure ............................................................................................................... 12

1.12 Regulatory Framework .................................................................................................... 13

2.0 Eligibility .............................................................................................................................. 14

2.1 Eligible Actions ............................................................................................................... 14

2.2 Eligible Applicants ........................................................................................................... 14

2.3 Ineligible Applicants ........................................................................................................ 14

2.4 Eligible Expenditure ........................................................................................................ 14

2.5 Ineligible Expenditure ..................................................................................................... 14

2.6 General Provisions .......................................................................................................... 15

3.0 Applications ....................................................................................................................... 16

3.1 Application Process ......................................................................................................... 16

3.2 Submission of Applications.............................................................................................. 16

3.3 Documents to be submitted with the Application ............................................................ 16

3.3.1 Supporting documentation concerning the applicant/application .............................. 17

3.3.2 Supporting documentation concerning the proposed eligible expenditure ................ 21

3.3.3 List of Contact Points ................................................................................................... 23

3.4 Receipt of Applications ................................................................................................... 23

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3.5 Acknowledgement .......................................................................................................... 23

4.0 Assessment and selection ................................................................................................... 24

4.1 Validation of applications ................................................................................................ 24

4.2 Assessment of Applications ............................................................................................. 24

4.3 Eligibility Criteria............................................................................................................. 25

4.3.1 General Eligibility Criteria ............................................................................................. 25

4.3.2 Measure-Specific Eligibility Criteria (Measure 3.1) ....................................................... 25

4.4 Selection of Proposed Investments .................................................................................. 26

4.4.1 General Selection Criteria ............................................................................................. 26

4.4.2 Measure-specific Selection Criteria (Measure 3.1) ....................................................... 27

4.5 Unsuccessful applicants .................................................................................................. 28

4.6 Appeals .......................................................................................................................... 28

4.7 Letter of Acceptance ....................................................................................................... 28

4.8 Grant Agreement ............................................................................................................ 28

4.9 Changes .......................................................................................................................... 28

5.0 Contractual Obligations ...................................................................................................... 30

5.1 Documentation ............................................................................................................... 30

5.2 Public procurement......................................................................................................... 30

5.3 Controls and Penalties .................................................................................................... 30

5.3.1 Administrative checks on support applications ............................................................ 31

5.3.2 Administrative checks on payment claims .................................................................... 31

5.3.3 In situ visits .................................................................................................................... 33

5.3.4 On-the-spot checks ....................................................................................................... 33

5.3.5 Timing of on-the-spot checks ........................................................................................ 34

5.3.6 Ex-post checks ............................................................................................................... 34

5.4 Provision of interim payments......................................................................................... 34

5.5 Publicity Obligations ....................................................................................................... 35

5.6 Force majeure ................................................................................................................. 35

6.0 Compliance with Community Policy .................................................................................... 36

6.1 General Principles ........................................................................................................... 36

6.2 Public Procurement ......................................................................................................... 36

6.3 Equal Opportunities and Non-discrimination ..................................................................... 36

6.4 Sustainable Development ................................................................................................ 36

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7.0 Data Policy ......................................................................................................................... 37

7.1 Data Protection .............................................................................................................. 37

7.2 Transparency .................................................................................................................. 37

7.3 Monitoring, Evaluation and Promotion ............................................................................ 37

8.0 Contact Details ................................................................................................................... 38

Annex 1: The Products of Quality National Scheme Workflow Measure 3.1.............................. 39

Annex 2: Products of Quality National Scheme Detailed Methodology ........................................ 40

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The Managing Authority reserves the right, in particular on the basis of approval

or direction by the European Commission, to amend from time to time certain

provisions established by this guidance document.

Such amendments may become applicable and enforced retrospectively.

In case of any conflicts between these guidelines and the text of the Rural

Development Programme (RDP) 2014-2020 and other legislative text, the

interpretation given by the RDP and relevant legislation will be given priority.

The English version will be the legally binding text.

The Managing Authority also reserves the right to request additional

information not included in this Guidance Document, in order to proceed with

check and evaluation of the application throughout the process.

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Definitions

Agriculture and Rural Paying Agency (ARPA): The Agriculture and Rural Payments Agency

within the Ministry for the Environment, Sustainable Development and Climate Change is the

Paying Agency.

Checks and controls: Provide a means of verification that the investment operation complies

with, and is in conformity to, the relevant rules and regulations.

Competent Authority: An authority responsible for the administration and control system of a

quality scheme identified in the Rural Development Programme.

Control Body: An independent third party or a public administrative organisation to which the

Competent Authority has delegated certain control tasks and/or certification.

Cost-effectiveness analysis: Compares the costs and effects of an intervention to assess the

extent to which it can be regarded as providing value for money.

EAFRD: European Agricultural Fund for Rural Development.

EAFRD regulation: Regulation (EU) No 1305/2013 of 17 December 2013 on support for rural

development by the EAFRD.

Evaluation: A periodic collection and analysis of evidence to form conclusions on the

effectiveness and efficiency of interventions.

Fixed Costs: Costs incurred for (arising from) entering a supported quality scheme and the annual

contribution for participating in that scheme, including, where necessary, expenditure on checks

required to verify compliance with the specifications of the scheme

Grant Agreement: An agreement signed between the MA and the selected applicant (beneficiary)

containing provisions and conditions related to the particular support.

Managing Authority: A national or regional body designated by a Member State to manage a

rural development programme.

Maximum Amount per Holding: The limit per holding is €3,000 per year for a maximum of 5

years. In cases of a group of farmers, the group can present a common application for its

members. The limitation of €3,000 is per holding, therefore, should the group present an

application for several members the support will be multiplied by the n° of eligible holdings.

Measure: An aid scheme for implementing a policy. Each measure sets out specific rules to be

complied with by the projects or actions that can be financed.

Monitoring: Regular examination of the resources, outputs and results of interventions.

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National Quality Scheme: Quality Schemes established in accordance with Article 16(1)(b) of

Regulation 1305/2013 of the European Parliament and of the Council and listed in the Rural

Development Programme for Malta.

European Quality Schemes: Produced Designation of Origin, Protected Geographic Indication,

Traditional Speciality Guarantee and Organic Farming:

Protected Designation of Origin (P.D.O.): Products that are produced, processed and

prepared in a specific geographical area, using the recognised know-how of local producers

and ingredients from the region concerned. These are products whose characteristics are

linked to their geographical origin;

Protected Geographical Indication (P.G.I.): Products whose quality or reputation is linked to

the place or region where it is produced, processed or prepared, although the ingredients

used need not necessarily come from that geographical area;

Traditional Speciality Guaranteed (T.S.G.): Products of a traditional character, either in the

composition or means of production, without a specific link to a particular geographical area;

Organic Farming: Organic production is an overall system of farm management and food

production that combines best environmental practices, a high level of biodiversity, the

preservation of natural resources, the application of high animal welfare standards and a

production method in line with the preference of certain consumers for products produced

using natural substances and processes;

New Participation: Beneficiaries who will participate for the first time in a particular quality scheme

after their application for support has been approved (a farmer that has participated in a different

quality scheme in the past is still considered ‘new participation’ for the new scheme he/she is applying

for). Beneficiaries who would have already participated in the same quality scheme at the moment of

their application would not be eligible for support.

Project Selection Committee (PSC): An independent Committee that assesses and ranks applications.

Project Selection Appeals Board (PSAB): An independent Committee that assesses any submissions

of appeals.

Results: The direct effects or changes that arise due to the intervention.

Rural development programme (RDP): A document prepared by a Member State or region, and

approved by the Commission, to plan and monitor the implementation of the rural development

policy.

Young Farmer: As per Regulation (EU) 1305/2013, a young farmer is defined as ‘a person who is no

more than 40 years of age at the moment of submitting the application’.

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1.0 Introduction

These Guidance Notes are intended to assist Applicants understand the requirements for requesting

and receiving funding support under the Measure 3 – Quality Schemes for Agricultural Products and

Foodstuffs, Sub-Measure 3.1 – Support for New Participation in Quality Schemes (hereafter referred

to as the Quality Schemes Measure).

Applicants are advised to familiarise themselves with these Guidance Notes prior to filling in and

preparation of the Application. The Guidance Notes, Application Form and all Annexes and other

documentation are available at http://www.eufunds.gov.mt

Applicants are reminded to check that they referred to the latest guidance notes as available on the

website, and that they have filled in the latest available version of the application form that is available

for download from the website. Only the latest version available at the time of application will be

accepted.

1.1 Authorities

The Funds and Programmes Division (FPD) within the Ministry for European Affairs and Equality

(MEAE) is the Managing Authority (MA) responsible for managing the measures of the European

Agricultural Fund for Rural Development Fund (EAFRD) in accordance with the Rural Development

Programme (RDP) for Malta for the 2014 – 2020 programming period.

The Paying Agency (PA) is the Agriculture and Rural Payments Agency (ARPA) within the Ministry for

the Environment, Sustainable Development and Climate Change (MESDC).

A Competent Authority (CA) is an authority responsible for the administration and control system of

a quality scheme identified in the Rural Development Programme.

A Control Body is an independent third party or a public administrative organisation to which the

Competent Authority has delegated certain control tasks and/or certification.

1.2 Objectives

The participation of farmers in quality schemes is not fully remunerated by the market, especially at

the moment of entering such schemes and in the early years of participation, when additional

obligations and additional costs are imposed. Accordingly, this measure supports all new participation

to Union and National quality schemes.

Support under this Measure shall therefore contribute to the achievement of a number of important

cross-cutting objectives, focus areas, and needs as established in the Malta Rural Development

Programme (RDP), as explained in the following sections.

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1.3 Contribution to cross-cutting objectives, focus areas and needs

Applications for support will be considered on the basis of their contribution to one or more of the

following cross cutting objectives, focus areas and needs1.

Contribution to Cross-Cutting Objectives

Project proposals under the Investment in Holdings Measure are expected to contribute to one or

more of the following cross-cutting objectives:

1. Climate Change: The development of shorter supply chains and supporting wider use of local

products (which will reduce the need for imports) will contribute indirectly to mitigating

emissions of GHGs through reduction of fossil fuel used in transport. Features of the schemes

may also contribute to environment and climate actions.

2. Innovation: Farmers and rural businesses will be encouraged to develop new processes, adopt

new production techniques and technology, and where appropriate, develop new products

that can take advantage of quality assurance labels. Innovations may be relatively

straightforward, based on simple improvements in product quality (e.g. packaging,

distribution systems, product mix), or more long-term and complex requiring additional

processing and promotional activities.

Engagement with best practice quality assurance systems in other parts of the EU

will also encourage cooperation and build support for obtaining information on new

techniques and processes, and links to training and external expertise (where needed) to help

farmers and others in the supply chain to innovate and adopt new methods.

Contribution to Focus Areas

Project proposals under the Quality Schemes Measure are expected to contribute to following focus

area2:

1. Focus Area 3A: Better integrating primary producers into the food chain through quality

schemes, promotion in local markets and short supply circuits, producer groups and inter-

branch organisations.

1 For further details on the Focus areas and cross-cutting objectives, please refer to chapter 8 of the RDP 2014-2020 ‘Quality Schemes for Agricultural Products and Foodstuffs’, section 8.2.3.2 ‘General description of the measure including its intervention logic and contribution to focus areas and cross-cutting objectives’. 2 Certain aspects of these focus areas shall not be applicable for the purpose of this call, according to the actions that are eligible. More details on eligibility of actions are provided in subsequent sections.

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Contribution to the Needs of the Rural Development Programme

Applicants are also required to demonstrate how their proposed projects shall result in the

achievement of certain targets by clearly outlining the proposed project’s contribution to one or more

of the following needs that have been identified in the Malta Rural Development Programme (RDP)3:

1. Maltese Quality Produce and;

2. Sustainable Livestock.

Support for entering a new quality scheme will provide an incentive for beneficiaries to participate in

such quality schemes, thereby ameliorating the quality of their products.

1.4 Scope

The aim of this Measure is to support new participation in both local and EU-wide established quality

schemes included in the RDP. These include:

Malta Quality Schemes:

o The Malta National Scheme – launched in 2014 and regulated by Subsidiary

Legislation 427.90 on the Establishment of the ‘Products of Quality’ National Scheme

Regulations;

o Existing or new PDO- or PGI-labelled products for Malta;

Established EU Quality Schemes (in accordance with Article 16(1) of Regulation (EU) No.

1305/2013):

o Regulation (EU) No. 1151/2012 of the European Parliament and of the Council –

quality schemes for agricultural products and foodstuffs;

o Council Regulation (EC) No. 834/2007 – organic production and labelling of organic

products;

o Regulation (EC) No. 110/2008 of the European Parliament and of the Council –

definition, description, presentation, labelling and the protection of geographical

indications of spirit drinks;

o Council Regulation (EEC) No. 1601/91 – laying down general rules on the definition,

description and presentation of aromatized wines, aromatized wine-based drinks and

aromatized wine-product cocktails;

o Part II, Title II, Chapter I, Section 2 of Council Regulation (EU) No. 1308/2013 – as

concerns wine.

Support for joining these schemes is relevant to a wide range of farm produce and processed products

from seasonal and permanent crops, and from livestock (e.g. olive oil, tomato and vegetable-based

products, dairy products, cheeses, yoghurt, meat cuts and processed meat products).

This measure will support both European and National Quality Schemes established as of the date of

publication of this call and guidelines, and also other European and National Quality Schemes that

3 Certain aspects of these needs shall not be applicable for the purpose of this call, according to the actions that are eligible. More details on eligibility of actions are provided in subsequent sections.

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may be launched in the future. In the case of National Quality Schemes, the below is the eligible

product under this call:

Products of Quality National Scheme – Fresh Milk

Further information on the ‘Products of Quality’ National Scheme (PQNS) is available on:

https://agriculture.gov.mt/en/ikeltakwalita/Pages/PQNS/pqns.aspx

1.5 Investment Priorities

Applications for support under the Quality Schemes Measure will be considered on the basis of their

contribution to the needs identified in Malta’s Rural Development Programme 2014-2020, expressed

as cross-cutting objectives and focus areas.

In addition to the general principles for the selection criteria, under this measure, proposals in which

the applicant or at least one of the farmers forming part of the PO/PG/Farmer Group applying for

funding falls within the definition of young farmer as stipulated by Regulation (EU) No. 1305/2013,

will be preferred. The principles for selection will take into account the number of producers/farmers

forming part of the PO/PG/Farmer group submitting the application, the type of promotional activities

to be implemented as well as the design of information actions and/or demonstration activities.

Proposals which include information on the dissemination of the results achieved by the project and

the promotion of EU funding will also be given preference.

1.6 Complementarity and demarcation with other measures

The Quality Schemes Measure complements other actions undertaken in the framework of rural

development measures supporting the facilitation of learning (Measure 1), investments in physical

assets (Measure 4) and conversion to organic farming practices (Measure 11).

It is understood that, farmers may need to make investments in order to change the farming practices

to be in line with quality scheme requirements. Since this would represent modernisation of the

enterprise, farmers should apply for support under Measure 4. Hence, a clear demarcation between

expenses covered under Measure 3 (fixed costs related to the participation to the quality scheme) and

Measure 4 (investments) is required.

On the other hand, vis-à-vis Measure 11 (Organic Farming), Measure 3 can cover the new participation

in organic food quality schemes whilst Measure 11 will cover income forgone, additional costs and

transaction costs for farmers converting or maintaining organic farming practices and methods.

1.7 Duration

The Quality Schemes Measure will remain open until 31st December 2020, subject to availability of

funds and/or notifications by the MA informing otherwise.

Each supported farmer will be granted annual support for 5 years.

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1.8 Budget

The budget available for the Investments in Holdings Measure is €4.14 million in total (public

expenditure). The MA reserves the right to amend the budget allocated.

1.9 Maximum Grant Value and Aid Intensity

The maximum annual value of grant support provided per scheme and per participant under this

Measure is set at €3,000 per holding which consist of 100% public contribution. The capping of €3,000

was maintained as per Annex II of Regulation (EU) 1305/2013 and also in line with the maximum

amount listed in the RDP since this Measure will be supporting new Quality Schemes which may

involve new checks, tests and practices. However, in order to ensure reasonableness of cost

beneficiaries will be required to follow Public Procurement procedures. The capping may be revised

in due course in which case the Measure will be closed and re-opened with a new capping.

In the case of group of farmers, the maximum annual support of €3,000 will be maintained for each

farmer. If groups include ineligible farmers, then the latter will not be entitled for support, even

though they may form part of the group.

1.10 Implementation

For the new participation in the quality schemes, support shall be granted as an annual incentive

payment, the level of which shall be determined according to the level of the “fixed costs”4 arising

from participation in supported schemes, for 5 years.

1.11 Calls Procedure

The call for applications will open on Monday 26th June, 2017 and shall remain open until the entire

budgetary allocation under the Quality Schemes Measure is utilised, or until the MA notifies

otherwise.

For the purpose of this call, the MA will be adopting an Open Block Calls Procedure. This means that

a batch of applications received within a respective time block will be assessed separately from

applications received in subsequent batches. The time blocks will be defined by the MA and published

on the MA website: www.eufunds.gov.mt

The call shall close either once the allocated budget has been committed or should the call be

withdrawn through a notification by the MA. The MA may re-issue the call in a similar or different

format. The MA may also issue clarifications and amendments during the time period of the open call

for applications without necessarily closing and re-opening the call.

4 Article 16 of Regulation (EU) No 1305/2013 of the European Parliament and the Council stipulates that fixed costs constitute “the costs incurred for entering a supported quality scheme and the annual contribution for participating in that scheme, including, where necessary, expenditure on checks required to verify compliance with the specifications of the scheme”

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1.12 Regulatory Framework

The following is the relevant legal basis for the Quality Schemes Measure:

a) Article 16 of Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005;

b) Commission Delegated Regulation (EU) No 807/2014 supplementing Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and introducing transitional provisions;

c) Commission Implementing Regulation (EU) No 808/2014 laying down rules for the application of Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD);

d) Commission Implementing Regulation (EU) No 809/2014 of 17 July 2014 laying down rules for the application of Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system, rural development measures and cross compliance;

e) Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006;

f) Malta’s Partnership Agreement 2014-2020; g) Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of

organic products and repealing Regulation (EEC) No 2092/91; h) Article 30 of Regulation (EU) No 1151/2012 of the European Parliament and of the Council -

quality schemes for agricultural products and foodstuffs; i) Regulation (EC) No 110/2008 of the European Parliament and of the Council - definition,

description, presentation, labelling and the protection of geographical indications of spirit drinks;

j) Council Regulation (EEC) No 1601/91 - laying down general rules on the definition, description and presentation of aromatized wines, aromatized wine- based drinks and aromatized wine-product cocktails;

k) Part II, Title II, Chapter I, Section 2 of Council Regulation (EU) No 1308/2013 - as concerns wine;

l) Subsidiary Legislation 427.90 on the Establishment of the ‘Products of Quality’ National Scheme Regulations;

Any current and future regulations emanating from the National Legal Frameworks. All above may be amended.

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2.0 Eligibility

2.1 Eligible Actions The Quality Schemes Measure shall support applicants through the provision of grants for new

participation by farmers in one of the quality schemes supported under this Measure. Support will be

granted to those activities concerning products covered by the quality schemes receiving support in

accordance with Article 16(1) of Regulation (EU) No. 1305/2013.

2.2 Eligible Applicants

Support under the Quality Schemes Measure is available to farmers or groups of farmers for the new

participation in the quality schemes. The beneficiaries of this Measure must be active farmers within

the meaning of Article 9 of Regulation (EU) No. 1307/2013.

2.3 Ineligible Applicants

Beneficiaries who have previously participated in the same Quality Scheme are not eligible.

2.4 Eligible Expenditure

In line with Article 16(3) of Regulation 1305/2013, eligible expenditure under this Measure shall

include5:

1. Costs of certification – which comprises charges related to professional analyses and

administrative fees;

2. Annual contribution consisting of:

a. expenditure on checks required for verifying compliance with the specifications of the

scheme, and;

b. the annual fee paid to a Competent Authority and Control Body;

c. other fixed costs incurred for entering in a Quality Scheme.

2.5 Ineligible Expenditure The following actions shall not be eligible for support under the Quality Schemes Measure:

Additional testing expenses incurred as a result of failed testing or re-testing shall not be

eligible.

5 Support will only be provided on the basis of the beneficiary providing evidence of valid certification under the relevant quality scheme.

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DISCLAIMER: It is important to note that beneficiaries may only claim reimbursement for eligible

expenses incurred as from the date of signing of the contract (grant agreement) with the Managing

Authority.

2.6 General Provisions

The following conditions will apply:

Active farmers’ new participation to the listed schemes;

EU Protected Geographical Indications, Protected Designations of Origin and Traditional

Specialities Guaranteed, can only be granted in respect of products registered in one of the

EU registers;

National schemes are eligible for support when they comply with the criteria laid down in

Article 16(1)(b) Regulation (EU) No 1305/2013;

The Products of Quality National Scheme set in accordance with the criteria laid down in

Article 16(1)(b). The Scheme has been established by SL 427.90 and provides for the

establishment of specific standards. This scheme has been communicated through the TRIS

notification procedure;

Organic products support is granted for products complying with the conditions of Council

Regulation (EC) No 834/2007;

For spirit drinks bearing a geographical indication according to Regulation (EC) No 110/2008,

support can only be granted in respect of products registered in the EU register.

NB. For National Quality Schemes, support for the new participation to the quality schemes will be

granted once the scheme is introduced in the RDP, confirming that the scheme fulfils criteria of Article

16(1)(b) of Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17

December 2013.

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3.0 Applications

3.1 Application Process

The MA shall publicise the calls through various media and will collaborate with stakeholders

particularly representatives of the target groups and other Government Entities to publicise the

Quality Schemes Measure to ensure the widest visibility possible.

3.2 Submission of Applications

Applicants must submit an application; it is strongly advisable that prior to the preparation and

submission of the application, prospective applicants read these Guidance Notes together with the

Manual of Procedures (MoP) as accessible on: https://eufunds.gov.mt.

All applications must be completed, signed and dated by the Applicant; Applicants shall refer to the Application Form for further details.

In case where an applicant is submitting an application for funding on behalf of an organisation, the

applicant should submit evidence to show that he/she forms part of the organisation and has the

necessary authority to apply.

Applicants should submit the following:

One signed, original, bound copy of the filled Application Form;

Soft copies of the filled in application form as follows, on CD or pen drive:

o in Word format;

o signed copy in PDF format;

o all relevant, supporting documentation.

Only upon submission of both versions will the application be accepted. All copies must include all

supporting documentation attached to the original Application Form, as explained in the following

section.

3.3 Documents to be submitted with the Application

A checklist of documents to be submitted with the Application is attached to the Application Form.

For the application to be considered complete, all documents that are marked as obligatory are to be

submitted with the Application Form.

The following is a list of the documents that need to be submitted as part of the Application, and is

divided into two parts: (1) supporting documents that concern the applicant, and (2) supporting

documents that concern the proposed investment.

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3.3.1 Supporting documentation concerning the applicant/application

The following is a list of supporting documentation that concerns the applicant/applications.

Applicants are advised to note whether the submission of relevant documents:

Is obligatory or required at application stage6, and also whether;

It is compulsory for all applicants, or as applicable for a specific applicant7, as indicated in the

list below:

Original Signed Project Application. Applicant is to also submit a

CD or pen drive containing a soft copy of application a) in word

and b) a signed copy of application in PDF format (scanned copy)

as well as all necessary supporting documentation (including

pictures/site plans if any).

(Obligatory at application stage)

Compulsory for all

Applicants

Copy of ID Card of Applicant

In case of Group of Farmers, copy of ID Card of each eligible

farmer

(Obligatory at application stage)

Compulsory for all

Applicants

Certificate from Job Plus showing farmers as part time or full time. (Obligatory at application stage)

If applicable

In case of an application by a Producer Organisation/Producer Group/Farmer Group, evidence and list of the members of the group allowing the organisation to apply on his/her behalf as part of the group (Annex II of Application Form). (Obligatory at application stage)

Compulsory for all

Applicants in case of

PO/PG/Farmer Group

6 An obligatory document is one that MUST be submitted at application stage. Without such document, the application shall not be accepted. A required document is one that NEEDS to be submitted at application stage, but, if it is missing from the application, the applicant shall be notified to submit the missing document within the stipulated period. 7 A compulsory document is one that must be submitted by ALL applicants. A non-compulsory document is one that has to be submitted by an applicant, if applicable.

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VAT Declaration Form (Annex 1 of the Application Form).

In case of ‘N/A’, the applicant shall be automatically declaring that

he/she will not be seeking refund for VAT.

(Obligatory at application stage, where applicable)

If applicable

Copy of VAT Registration Certificate – applicable only to individuals and Self-Employed (Required at application stage where applicable)

If applicable

VAT Compliance Certificate – certificates issued not earlier than three months from the date of the application, by the VAT Department confirming that the Applicant has no liabilities in respect of VAT or is otherwise honouring an agreement for settling any outstanding amounts. (Required at application stage where applicable)

Compulsory for all

applicants

Last year tax return and annexed income statement submitted – applicable only to individuals and Self-Employed (Required at application stage where applicable)

If applicable

Audited financial statements of years n-1 and n-2 but if n-1 year audited accounts are not available, management accounts are requested (where n is current year) – applicable only for private companies. (Required at application stage where applicable)

If applicable

Income Tax Compliance Certificate – a certificate issued not earlier

than three months from the date of the application, by the Inland

Revenue Department confirming that the Applicant has no liabilities in

respect of Income Tax or is otherwise honouring an agreement for

settling any outstanding amounts.

(Required at application stage where applicable)

Compulsory for all

applicants

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Final Settlement and of Social Security Contributions Compliance

Certificate – a certificate issued by the Inland Revenue Department

confirming that the Applicant has no liabilities in respect of the Final

Settlement System (FSS) and of Social Security Contributions (SSC) or is

honouring an agreement for settling any outstanding amounts. The

certification should have been issued in the three months preceding

the submission of the application.

(Required at application stage where applicable)

Compulsory for all

applicants

Declaration by accountant/ lawyer attesting that funds are available to

match the private financing.

(Required at application stage)

Compulsory for all

applicants

Current Memorandum of Association (not required in case of natural individuals). (Required at application stage where applicable)

If applicable

If private part is to be financed by a loan, bank sanction letter is to be provided. (Required at application stage where applicable)

If applicable

In case of livestock farmers, certification showing total number of

livestock, covering the period from 1st January 2014 up to 31st

December 2016 (for applications submitted in 2017)8. This certificate is

to be provided by the Veterinary and Phyto-sanitary Regulation

Department (VPRD).

(Required at application stage where applicable)

If applicable

Certification indicating total agricultural holding/land. To be collected from the Front Office, Agriculture and Rural Payments Agency, Pitkali Markets, Ta’ Qali, L/O Attard, Malta. (Required at application stage where applicable. Not applicable for livestock farmers)

If applicable

8 For applications submitted in 2018, the period would cover from 1st January 2015 to 31st December 2017, etc.

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Section 6 of the Application – Declaration

(Obligatory at application stage)

Compulsory for all

Applicants

All Sections of the Application have been filled in.

(Obligatory at application stage)

Compulsory for all

Applicants

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3.3.2 Supporting documentation concerning the proposed eligible expenditure

The following is a list of supporting documentation that concerns the proposed eligible expenditure.

Applicants are advised to note whether the submission of relevant documents is obligatory or

required, as indicated in the list below.

One9 quotation10 covering the entire 5 year period for the following costs:

1. Costs of certification – which comprises charges related to

professional analyses and administrative fees;

2. Annual contribution consisting of:

a. expenditure on checks required for verifying

compliance with the specifications of the scheme, and;

b. the annual fee paid to a Competent Authority and

Control Body;

c. other fixed costs incurred for entering in a Quality

Scheme.

The most favourable quote/s for the entire 5 year period will be

considered for contract and payment purposes. The farmer/group of

farmers can choose the more expensive Control Body, however, ARPA

will only pay up to the cheaper global quote11, included in the Grant

Agreement.

(Obligatory at application stage)

Compulsory for all

Applicants

Copy of request for quotation issued and given to suppliers/service providers. (Obligatory at application stage)

Compulsory for all

Applicants

9 In cases where the Competent Authority has approved fewer than 3 Control Bodies, the applicant shall submit a quote from each of the accredited Control Bodies. The Competent Authority shall notify the Managing Authority and Paying Agency on the number of approved Control Bodies. 10 Quotations can also be sought by a group of farmers (on behalf of the eligible farmers). 11 The Contracting Authority (Managing Authority, FPD) and the Paying Agency shall not be held responsible for the agreement between the farmer/applicant and the Control Body, in cases where the MA or PA cancel/withhold the agreement/payments.

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In case of the ‘Products of Quality’ National Scheme, a report of conformity issued by the Competent Authority (Department of Agriculture) following initial checks carried out by the Competent Authority (based on the PQNS e-Form Application). This report shall confirm or otherwise whether the applicant (in case of a PO/PG/Farmer Group the report shall refer to all eligible member) has the potential to fulfil the requirements of the Scheme. (Obligatory at application stage)

Compulsory for all

Applicants (if

applicable)

In case of ‘Organic Farming’, a letter issued by the Control Authority/Control Body attesting to the farmer’s organic application process. This is letter shall give a level of re-assurance that the applicant has submitted his/her application with the Control Authority/Body and is deemed eligible for the Organic Quality Scheme. (Obligatory at application stage)

Compulsory for all

Applicants (if

applicable)

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3.3.3 List of Contact Points

The Contact Point for the ‘Product of Quality’ National Scheme is the Agricultural Directorate, MESDC:

Name: Marco Dimech

Tel: 2292 4234

E-mail: ikeltakwalita.msdec@gov.mt

The Contact Point for the Organic Quality Mark, Protected Designation of Origin (P.D.O.) and Protected

Geographical Indication (P.G.I.) and Traditional Speciality Guarantee is the Malta Competition and

Consumer Affairs Authority (M.C.C.A.A.):

Name – Mr Robert Grima

Tel. No. – 2395 2413

Email – certification.mccaa@mccaa.org.mt

3.4 Receipt of Applications Applications are received on Wednesday:

Between 8:30am and 3:00pm from 1st October to 15th June, and;

Between 8:30am and 12:00pm from 16th June to 30th September. Applications are to be submitted at the following office: Director General Funds and Programmes Division Parliamentary Secretariat for European Funds and Social Dialogue Ministry for European Affairs and Equality Triq il-Kukkanja Santa Venera

3.5 Acknowledgement

An acknowledgement shall be issued by the receiving officer upon submission of a completely filled-

in application form, as per instructions in the section above.

Disclaimer: The person receiving the application is not responsible for the administrative

compliance of the application form. This issuance of this acknowledgement letter would not imply

that the applicant has submitted all the necessary documentation. The application may be refused

and returned to the applicant following the issuance of the acknowledgement letter.

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4.0 Assessment and selection

4.1 Validation of applications

The MA will undertake a validity check of all applications that are received.

There are two types of documents that need to be submitted along with the application:

(1) Compulsory at application stage – application will be refused if these documents are

missing, and;

(2) Required but non-compulsory at application stage.

Should any documentation that is required (non-obligatory) be missing from the Application Form,

the MA shall notify the Applicant through a notification letter. Any required non-obligatory documents

that were missing from the Application Form are to be submitted within not more than 5 (five)

working days from the date of the notification letter.

Only complete, applications will be considered by the Project Selection Committee. Applications that

remain incomplete after the 5 (five)-working day notice period has elapsed will be rejected.

Should the applicant wish to re-submit an application, the process is considered a new one. In such

cases, the effective application date would be that of the new submission.

4.2 Assessment of Applications

Applications for support that pass the admissibility check will proceed to the next step and shall be

assessed according to the eligibility and selection criteria (sections 4.3 and 4.4 below are intended to

provide guidance, however, applicants are advised to refer to the official document on the criteria,

available at:

https://eufunds.gov.mt/en/EU%20Funds%20Programmes/European%20Agricultural%20Fund/Docu

ments/MC/Eligibility%20and%20Selection%20Criteria%202014-2020.pdf).

Also refer to Section 4.4 of this document.

The Project Selection Committee (PSC) will award marks according to the criteria and rank projects

according to the marks obtained. In order to qualify for selection, the proposal needs to obtain at least

50% of the total marks of the general and measure-specific selection criteria.

For those eligible projects going through the assessment stage, the PSC will seek clearance from the

State Aid Monitoring Board (SAMB). State Aid clearance will be requested on the basis of Commission

Regulation (EU) No 702/2014 of 25th June 2014 declaring certain categories of aid in the agricultural

and forestry sector and in rural areas compatible with the internal market in application of Articles 107

and 108 of the Treaty on the Functioning of the European Union, OJ L 193.1 and repealing Commission

Regulation (EC) 1857/2006.

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During the assessment and selection process, checks will also be carried out to assess the

reasonableness of the cost were applicable. Grants will be awarded ensuring the cost-effective and

value-for-money principles.

The selection of projects may be limited by the available budget, in which case the highest-ranking

projects will be offered a grant.

4.3 Eligibility Criteria

All valid applications shall be assessed against the eligibility criteria that have been established for the

RDP 2014-2020. Eligibility criteria consist of two sets: general eligibility criteria and measure-specific

eligibility criteria.

It is important to note that all applications need to conform to/fulfil ALL general and measure-specific

eligibility criteria in order to be considered for ranking and selection.

The MA reserves the right to revise the eligibility criteria applicable to the Measure, subject to pre-

notification.

4.3.1 General Eligibility Criteria

The following are the general eligibility criteria to which the application must conform:

a. Submitted application is fully completed/filled-in;

b. Applicant demonstrates that he/she forms part of (or is the legal representative) the

beneficiary/applicant organisation;

c. The proposed project will be implemented within the eligible territory;

d. Evidence of sufficient financial capacity required to cover the private financial component

(where applicable) is provided;

e. The proposed project contributes to the targets and objectives of the relevant

measure/s;

f. The proposed project contributes to at least one indicator target.

4.3.2 Measure-Specific Eligibility Criteria (Measure 3.1)

The following are the measure-specific eligibility criteria to which the application must conform:

a. Farmers and/or groups of farmers, producer groups;

b. New participation of at least one farmer in producer group;

c. Eligible National Scheme regulated by Legal Notice 467 of 2014 (S.L. 427.90 – Establishment

of Products of Quality);

d. Support for organic products provided for products which conform with the conditions

stipulated in Regulation (EC) No. 834/2007;

e. Spirit drinks bearing geographical indication as per Regulation (EU) No. 100/2008;

f. EU PGI, PDO, TSG only granted in respect of products in one of EU registers;

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g. Information and promotion activities must be within internal market (supported under

Measure 3.2).

4.4 Selection of Proposed Investments

Selection criteria are designed to assess the fit and contribution of project proposals with the RDP

strategy, its target group and its objectives. These criteria are divided in two groups: those that reply

on a quantitative assessment and those that require a qualitative assessment. The evaluation will

combine both data (quantitative and qualitative) in order to have a comprehensive understanding of

the proposal.

For a project to be considered for funding, it has to obtain at least 50% of the marks available in total

(both general and measure-specific criteria). Projects will be ranked according to marks and funds

allocated to those projects which obtain the highest marks. In cases of over-demand for funding, other

projects which obtain the pass mark but which are not funded/selected will be placed on a reserve list

according to marks obtained and funding offered if and when funds become available.

The voting members shall decide how the project proposal addresses each of the criteria and assign

points according to the following guide:

Excellent 81 to 100% of points;

Very good 76 to 80% of points;

Satisfactory 50 to 75% of points;

Very poor 26 to 49% of points;

Unacceptable 01 to 25% of points.

For the purpose of project selection, the Quality Scheme Measure carries a total maximum scoring of

140 marks. The general selection criteria carry a maximum of 100 marks, while the measure-specific

criteria carry a maximum of 40 marks.

4.4.1 General Selection Criteria

The following is a list, together with maximum scoring, of general selection criteria applicable to the

Investments in Holdings Measure. The maximum total marks that can be obtained by fulfilling these

general selection criteria is 100.

Project proposal targeting multiple indicators – max marks 20

Applicants are awarded points on the basis of how well their project proposal targets more than one

indicator, and how well the proposal fits within the relevant RDP/LDS priorities.

Preparedness / Readiness – max marks 10

Applicants are awarded points according to the level of preparedness with regard to permits, drafting

of tenders, CBAs, etc. as and where applicable.

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Organisational capacity – max marks 2012

Points awarded according to the administrative capacity, competence and technical resources

available to the organization, and how well the project demonstrates long term sustainability.

Consideration will be made of how the project will continue to benefit the business/sector/rural area

after RDP funding comes to an end. Application should demonstrate evidence of applicant’s financial

viability.

Cost effectiveness – max marks 2013

Points awarded according to evidenced added value, effectiveness and reasonableness of costs

proposed. Consideration will be made as to whether the applicant considered other forms of funding

and set out clearly the impact the funding will make on the business and/or the surrounding market.

The outputs and outcomes of the proposal should be proportionate to the level of funding offered.

Project deliverability will also be assessed on the basis of whether competitive quotes have been

sought, clear rationale in cases where the lowest valid offer is not chosen, whether the costs are

realistic and whether the application shows how the project will be successful at the end of the

contract.

Complementarity – max marks 10

Points awarded according to the potential of the proposed project to lead to funding opportunities

under other measures/funds.

Horizontal Priorities (Social Criterion) – max marks 20

Points awarded on the basis that the proposed intervention/s contribute towards the promotion of

equal opportunities, equality, non-discrimination and improved accessibility whilst targeting

sustainable development in the areas of economic growth, social cohesion and environmental

protection. Consideration will be made of whether the applicant has an appropriate policy on equality

and diversity (e.g. as an employer), access requirements have been taken into account (e.g. for

buildings, websites), and whether any jobs created are open to a diverse range of applicants.

4.4.2 Measure-specific Selection Criteria (Measure 3.1)

The following are the measure-specific selection criteria and relevant scores for the Quality Schemes

Measure:

Dissemination – max marks 10

Points awarded according to the adequateness and strategy for result dissemination, including a

strategy for promotion of EU funding which goes over and above the minimum obligations established

by applicable legislation.

12 Applicants will be required to obtain a minimum of 10 marks from this selection criterion. 13 Applicants will be required to obtain a minimum of 10 marks from this selection criterion.

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Partnership – max marks 20

Points awarded according to the number of producers/farmers forming part of the PO/PG/Farmer

group submitting the application

Young Farmers – max marks 10

Points awarded if the applicant or at least one of the farmers forming part of the PO/PG/Farmer Group

applying falls within the definition of young farmer stipulated by Regulation (EU) No. 1305/2013.

The MA reserves the right to update and change the selection criteria as deemed necessary, respecting

the appropriate legal provisions. Any updates would be reflected in the version of the criteria and the

Guidance Notes for the Quality Schemes Measure uploaded online.

4.5 Unsuccessful applicants

The MA will inform all applicants about the outcome of the selection process.

4.6 Appeals

Applicants who feel aggrieved by the outcome of the procedure have the right of appeal within five

(5) working days from the date of the letter of rejection by the PSC.

4.7 Letter of Acceptance

The MA will proceed to write to the successful applicants informing them of the decision of acceptance

of their project. Scanned copies of the letter shall also be submitted through email. Letters of

acceptance may include conditions which have been raised by the PSC.

4.8 Grant Agreement

Applicants whose proposals have been selected in accordance to the procedure described above, in

terms of being eligible and having obtained the necessary scoring for selection, and furthermore, could

be allocated the requisite budget for funding, shall be invited to enter into an agreement with the MA

by signing the Grant Agreement. More details on the generic provisions applicable in the Grant

Agreement and the contractual obligations of the Beneficiary are provided in the subsequent sections.

Although support will be granted for 5 years, the applicant shall submit an annual claim for support.

Failure to submit such request may result in the termination of the contract or withdrawal of support

linked to that specific farmer.

4.9 Changes

In cases where amendments to the Grant Agreement need to be made by the beneficiary, the

beneficiary must submit a written request to the Managing Authority prior to the changes being

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actually implemented (a priori). The Managing Authority will review the request and notify the

beneficiary accordingly.

If a request for changes to the Grant Agreement is submitted after these changes have actually taken

place (ex-post), the expenditure related to these changes may be subject to applicable penalties.

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5.0 Contractual Obligations

Upon signing the Grant Agreement, the Beneficiary becomes legally bound by certain provisions. The

following sections provide information on some aspects of the contractual obligations of the

Beneficiary.

The Agriculture and Rural Paying Agency (ARPA) may, from time to time, issue further information and guidance.

5.1 Documentation

Beneficiaries are obliged to retain all supporting documentation for a two (2)-year period from 31

December following the submission of the accounts in which the final expenditure linked to the

agreement is included.

5.2 Public procurement

Beneficiaries of Grant Support are to be aware that they are bound by the principles of good

governance, sound financial management and relevant EU or National Legislation.

Checks in relation to public procurement will verify that Union public procurement rules and related

national rules are complied with and that the basic principles of transparency, objectivity, non-

discrimination and appropriate disclosure have been respected throughout the entire process.

In cases of non-compliances with the rules of public procurement, the financial corrections towards

the service provider beneficiary will be determined by the Paying Agency on the basis of the guidelines

C (2013)9527 final of 19.12.2013.

5.3 Controls and Penalties

Beneficiaries must note that by signing the Grant Agreement they are agreeing to undertake an

obligation for the relevant checks and controls by the respective Authorities including the following:

a. The Paying Agency (PA) – Agriculture and Rural Payments Agency (ARPA), Ministry for the

Environment, Sustainable Development and Climate Change (MESDC);

b. The Certifying Body (CB) – Internal Audit and Investigations Department (IAID), Office of the

Prime Minister (OPM);

c. The National Audit Office (NAO) in view of the fact that public funds are being utilised for the

implementation of the investment;

d. The Audit Services of the European Commission (EC) and the European Court of Auditors (ECA)

in view of the fact the investment is benefitting from European Union (EU) funds;

e. The VAT Department to ensure that VAT Regulations are respected.

The following sections are intended as a guide on applicable checks and controls.

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5.3.1 Administrative checks on support applications

Administrative checks on applications for support will be performed by ARPA and shall ensure the

compliance of the operation with applicable obligations established by Union or national law or by the

rural development programme, including those of public procurement, State aid and other obligatory

standards and requirements. The checks shall in particular include verification of:

the eligibility of the beneficiary;

the eligibility criteria, commitments and other obligations of the operation for which support

is requested;

compliance with the selection criteria;

the eligibility of the costs of the operation, including compliance with the category of costs or

calculation method to be used when the operation or part of it falls under Article 67(1)(b), (c)

and (d) of Regulation (EU) No 1303/201314;

for costs referred to in Article 67(1)(a) of Regulation (EU) No 1303/2013, excluding

contributions in kind and depreciation, a verification of the reasonableness of the costs

submitted. The costs shall be evaluated using a suitable evaluation system, such as reference

costs, a comparison of different offers or an evaluation committee."15

5.3.2 Administrative checks on payment claims

Administrative checks on payment claims shall include in particular, and where appropriate for the

claim in question, verification of:

the completed operation compared with the operation for which the application for support

was submitted and granted;

the costs incurred and the payments made16.

The verifications shall cover in particular:

That expenditure relates to the eligible period and has been paid;

For simplified cost options: that conditions for payments defined in the grant agreement have been fulfilled17;

That the expenditure relates to an approved operation;

Compliance with national and Union eligibility rules;

14 Simplified costs option 15 Article 48(2) of Commission Implementing Regulation (EU) No 808/2014 16 Article 48(3) of Commission Implementing Regulation (EU) No 808/2014 17 Simplified cost option is being implemented. For the Estimation of Standard Costs in relation to Animal Nutrition Expertise in the Context of Participation in the National Quality Scheme for Drinking Milk, Malta has set a Simplified cost (SCO) rate of €1,700.

32

Delivery of the product/service in full compliance with the terms and conditions of the grant agreement.

Irregular double financing with other Union or national schemes and with the previous programming period18.

The documents to be submitted with each payment claim by beneficiaries shall be comprehensive

enough to enable the Paying Agency to verify the legality and regularity of the expenditure in

compliance with national and Union rules. Administrative checks shall thereby comprise, as far as

possible, a complete review of the supporting documents to each payment claim.

It is crucial that all necessary documentation is presented (if and when required) and that the payment

claims/invoices submitted are clear and valid as per the twelfth schedule of the Value-Added Tax Act

(Chapter 406 of the Laws of Malta), which stipulates what a tax invoice should include.

The Paying Agency retains the right to request original copies of invoices/VAT receipts/tax invoice if

this is not of sufficient quality or does not contain all the relevant details.

In general, a tax invoice should contain the following particulars:

1. The date of issue;

2. A sequential number which uniquely identifies the invoice;

3. The name, address and VAT number of the supplier;

4. The name, address and VAT number of the customer;

5. A description sufficient to identify the quantity and nature of the goods or the extent and nature of the goods or the extent and nature of the services applied;

6. The date on which the supply was made or complete or the date on which a payment on account of a supplier was made;

7. The taxable value per rate or exemption, the unit price exclusive of tax and any discounts or rebates if they are not included in the unit price:

8. The amount of tax chargeable, if any, at each rate so chargeable

9. The total amount of tax chargeable, if any.

All relevant supporting documentation (including, but not limited to, current active and valid

participation in the Quality Scheme, and evidence of payments made) is to be submitted by the

beneficiary together with the payment claim. This will allow for all documentary checks to be carried

out during the administrative checks, thus reducing the need to verify these documents on-the-spot.

The supporting documentation shall, as a minimum, include a schedule of the individual expenditure

items, totalled and showing the expenditure amount, the references of the related invoices, the date

18 Article 48(4) of Commission Implementing Regulation (EU) No 808/2014

33

of payment and the payment reference number and list of contracts signed. Moreover, electronic

invoices and payments or copies of invoices and proof of payment should be provided for all

expenditure items. The Paying Agency may from time to time issue guidelines on the submission of

payment claims including templates and any required supporting documentation. The Paying Agency

may also establish time frames for the submission of payment claims as well as procedures governing

the rejection of claims which do not comply with minimum standards.

Where the verification of payment claims will involve an inordinately large volume of documentation

being submitted by beneficiaries, an alternative approach may involve requesting only the supporting

documentation in respect of the sample of expenditure items selected for verification. This approach

has the advantage of reducing the volume of documentation to be submitted by beneficiaries.

However, as the selection of the required supporting documentation can only be made on receipt of

the beneficiary's payment claim, processing of the claim may be delayed pending receipt of the

requested documentation.

The terms of agreements for individual operations may include a requirement for beneficiaries to

provide an auditor's certificate with payment claims they submit. These certificates vary depending

upon the scope of the work carried out by the auditor but generally cover basic requirements such as

confirmation that the expenditure has been paid within the eligible period, that it relates to items

approved under the agreement, that the terms of the agreement for individual operation have been

complied with and that adequate supporting documentation, including accounting records, exists.

Although the administrative checks cannot rely solely by checks carried out by third parties (e.g.

auditors), auditors' certificates may justify limiting the administrative check to a sufficient sample

taking account of known risks, including the risk of a lack of independence of the body providing the

certificate. This should not be simply a one sentence certificate on the regularity of the beneficiary's

claim, but should describe the work carried out and the results.

The annually audited financial statement of a beneficiary cannot replace a specific auditor's certificate

for each payment claim made by that beneficiary.

5.3.3 In situ visits

The in-situ visits in the context of administrative checks are different in purpose from on-the spot

checks. In in situ visits, the aim is to check the points of the administrative check (primarily the correct

completion of the investment). In the second case, the aim is to supplement the administrative check

in order to carry out as exhaustive as possible a check of a sample of beneficiaries.

5.3.4 On-the-spot checks

On-the-spot checks, shall be carried out by the Paying Agency as required in order to ensure an

effective management of risks. Payment claims shall be rejected if the beneficiary or his representative

prevents an on-the-spot check from being carried out, except in cases of force majeure or exceptional

circumstances.

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The on-the-spot check shall verify the accuracy of the data declared by the beneficiary against

underlying documents. This includes a verification that the payment claims submitted by the

beneficiary are supported by accounting or other documents, including, where necessary, a check on

the accuracy of the data in the payment claim on the basis of data or commercial documents held by

third parties.

The on-the-spot check shall verify that the use or intended use of the operation is consistent with the

use described in the application for support and for which the support was granted. Except in

exceptional circumstances, duly recorded and explained by the competent authorities, on-the-spot

checks shall include a visit to the place where the operation is implemented or, if the operation is

intangible, to the operation promoter.

Where administrative checks are exhaustive and detailed, there are still some elements concerning

the legality and regularity of expenditure that cannot be verified through an administrative check. It

is therefore essential that on-the-spot checks are carried out in order to check in particular the reality

of the operation, delivery of the product/service in full compliance with the terms and conditions of

the grant agreement, physical progress, respect for Union rules on publicity etc. On-the-spot checks

can also be used to verify that the beneficiary is providing accurate information regarding the physical

and financial implementation of the operation.

5.3.5 Timing of on-the-spot checks

Beneficiaries will be given advance notification (Advance notification will not exceed 48 hours) of the

on-the-spot checks in order to ensure that the relevant staff (e.g. project manager, engineer,

accounting staff) and documentation (in particular, financial records including bank statements and

invoices) are made available by the beneficiary during the check.

Normally on-the-spot checks will be carried out before the final payment for the operation and after

receipt of the final payment claim. However, in some cases, where the reality of the project may be

impossible to determine after the project has been completed, it may be appropriate to carry out on-

the-spot checks during its implementation and without prior notice (e.g. training courses, where

timesheets for participants and teaching staff should also be verified). This applies especially in case

the operations are intangible in nature and where little or no physical evidence remains after their

completion (e.g. training courses, workshops, farm and forest visits, use of advisory services).

5.3.6 Ex-post checks

Ex-post checks shall be carried out on investment operations to verify the respect of commitments pursuant to Article 71 of Regulation (EU) No 1303/2013 or detailed in the rural development programme.

The MA or ARPA may apply financial corrections in the case where the investment project fails to

reach the proposed indicators.

5.4 Provision of interim payments

35

Where applicable, the beneficiary may opt to request an interim payment. These payments will be

carried out in lots. In total, these lots cannot exceed 80% of the total eligible grant amount and shall

be paid upon presentation of relative invoices and eligible proof of payment.

The applicant may only claim back expenditure that is incurred either as of the date when the call for

applications is launched by the Managing Authority, or as otherwise specifically stated in the guidance

notes for that specific measure. The final amount (remaining 20% of the eligible grant amount) shall

be issued by the Paying Agency only after the project is completed. The beneficiary may submit a

request for reimbursement once all project components have been completed, payments settled in

full and after the Control Unit has carried out the necessary on-the-spot checks confirming that the

project was completed according to the agreed terms and conditions of the contract (grant

agreement) in question.

N.B.: Invoices with values of less than €100 (excluding VAT) shall not be eligible for reimbursement.

5.5 Publicity Obligations

Publicity is an integral part of the project. The Beneficiary must be aware of the source of funding

through which he/she has been given the Grant. In addition, upon completion of the project, the

Beneficiary must ensure that the necessary EU publicity requirements are adhered to in accordance

to provisions laid down in Annex III of Commission Implementing Regulation (EU) No 808/2014, (e.g.

stickers indicating the source of co-financing are to be attached to all equipment procured through

the Grant). Where appropriate, the Beneficiary is obliged to install posters, explanatory plaques,

billboards and any other publicity material as may be required.

Beneficiaries will be advised to refer to the applicable Visual Identity Guidelines published by the

Managing Authority and to adhere to the applicable provisions.

Further guidance on publicity are available on the Managing Authority Website:

https://eufunds.gov.mt .

5.6 Force majeure

Force majeure is generally considered to imply an abnormal or unforeseeable circumstance beyond a

project holder’s control, the consequences of which could not be avoided by reasonable action. A

written request for applying the force majeure clause needs to be submitted to the PA within fifteen

(15) days from the date of occurrence of the circumstance. After consultation, the PA will decide

whether to accept or reject the application.

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6.0 Compliance with Community Policy

6.1 General Principles

It is the responsibility of the Beneficiary to ensure compliance with Community Policy, namely:

a. Public Procurement

b. Equal Opportunities

c. Sustainable development

6.2 Public Procurement

Beneficiaries should note that Grants awarded for actions under the Quality Schemes Measure are

public funds. In this regard, all Beneficiaries should ensure that any procurement undertaken for

cost items to be financed through this Measure is carried out in line with the principles of sound

financial management, good governance, transparency, and equality together with the provisions

of the Manual of Procedures issued by the relevant authorities together with these Guidance Notes.

6.3 Equal Opportunities and Non-discrimination

Beneficiaries are required to take a pro-active approach to Equal Opportunities and must ensure that

at all stages of the implementation of the action/s consideration is given to Equal Opportunities.

Equal Opportunities and non-discrimination are not meant to just address gender discrimination

but have a wider scope and include race, ethnicity, religion or belief, disability, age and sexual

orientation.

6.4 Sustainable Development

Beneficiaries must ensure that the operation is structured in such a manner that concrete positive

actions towards better sustainability and mainstreaming feature throughout. It is important that

environmental matters should also be taken into consideration at all stages of the design,

development and implementation of the action and the action should be structured to avoid any

related environmental damage.

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7.0 Data Policy

By submitting the application, the applicant is giving his/her consent to have personal and project

details published in line with the obligations in the relevant EU Regulations. Moreover, this

information will also be utilised for monitoring and evaluation purposes.

7.1 Data Protection

Whilst abiding to the provisions set in the Data Protection Act regarding the handling of personal data,

the Managing Authority and/or Paying Agency will retain the right to disclose, exchange or request

information about any applicant, application and agreement to or with other organisations or

consultants which the Managing Authority and/or Paying Agency consider appropriate for

administration, evaluation and monitoring purposes.

7.2 Transparency

Because projects implemented under Measure 3.1 involve expenditure of public money, there is

public interest in how the money is spent. In this respect the Managing Authority will ensure that the

principle of transparency is fully respected in the implementation of operations under Malta’s Rural

Development Programme 2014-2020.

Annually, and by no later than 30th May of each year, the Agriculture and Rural Payments Agency

(ARPA) is bound to publish a list of beneficiaries who received payment during the preceding financial

year (16th October to 15th October) in line with Regulation (EU) No 1306/2013 of the European

Parliament and of the Council. The list can be found on:

https://msdec.gov.mt/en/ARPA/Pages/Payments.aspx

7.3 Monitoring, Evaluation and Promotion

From time to time, the Managing Authority and/or the Paying Agency, as well as other National and/or

EU entities as may be identified by the Managing Authority, may conduct economic, environmental or

other evaluation of the measure which may involve the beneficiary in surveys/interviews of various

types. Managing Authority officials or consultants/evaluators engaged by the Managing Authority may

contact beneficiaries as necessary. In applying for support under this measure the beneficiary is

deemed automatically as agreeing to cooperate with or take part in such studies, which are important

for reviewing the effectiveness of the measure as well as evidencing implementation of projects. The

MA may also request cooperation from beneficiaries vis-à-vis promotion of the RDP, including use of

pictures/videos taken from projects under this measure.

38

8.0 Contact Details

For more information regarding the Quality Schemes Measure, kindly contact the Funds and

Programmes Division.

Address: Funds and Programmes Division,

Triq il-Kukkanja,

St. Venera SVR 1411

Telephone Number: +356 2200 1108

E-mail: rdd.meae@gov.mt

Website: www.eufunds.gov.mt

39

Annex 1: The Products of Quality National Scheme Workflow Measure 3.1

Application for Adhesion to the PQNS Application for refund

1. Applicant chooses Control Body I. Application for Measure 3

2. eForm Application II. Signing of Grant Agreement

3. Documentary Check III. Application for Refund

4. Control Body Inspection

5. Control Body Report Submission to Agriculture Directorate

6. Issue of certification to the Scheme if applicant is compliant

Application with Paying Agency for

Refund (for a five year period)

III

eForm Application by each

individual farmer (even in

cases of a PO application) 2

Documentary check by

DOA – provision of a

report by DOA to farmer 3

Applicant Chooses Control

Body (request for quotes) 1

CB report submission to

Agriculture Directorate 5

Control Body Inspection

4

Selection and Signing of

Grant Agreement II

Issue of certification to the

scheme if applicant is compliant 6

Application by

farmer/co-

operative,

including report

by DOA I

Rural Development Programme for Malta 2014-2020

Part financed by the European Union Co-financing Rate:

75% European Union; 25% Government of Malta

The European Agricultural Fund for Rural Development: Europe investing in rural areas

Annex 2: Products of Quality National Scheme Detailed Methodology

1. The applicant is to produce a quote from the two approved Control Bodies which will be

conducting the necessary inspections on the premises. The applicant will choose the most

advantageous offer.

2. Once the quotation as well as the necessary documentation (available on

https://agriculture.gov.mt/en/ikeltakwalita/Pages/PQNS/online-registration.aspx) is prepared,

the applicant can access the eForm and submit the application. The applicant may contact

representatives from the Agriculture Directorate to assist in the application process.

3. The DoA will be assisting the applicant to apply for the measure 3 as well as signing the Grant

Agreement which has to be done before the initial control.

4. The Agriculture Directorate will conduct the necessary documentary checks so as to ascertain that

the information submitted by the applicant is correct.

As to ensure that all expenses incurred are recoverable by the measure, the payment to the CB body

shall be made after the signing of the grant agreement.

5. Following a positive outcome from the documentary checks, the Agriculture Directorate will

request the selected Control Body (CB) to inspect the premises.

6. The CB conducts the inspection.

7. The CB drafts a findings report and submits it to the Agriculture Directorate

8. The Agriculture Directorate decides, basing its decision on the report submitted by the CD, to

grant or not the adhesion to the PQNS. Successful applicants will be issued a certificate as proof

that the applicant can operate within the scheme.

9. The applicant can then apply with ARPA for the refund. Following the CB, the applicant may

contact representatives from the Agriculture Directorate to assist in the application process.