Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Scope
Support for the measure referred to in Article 7(1)(b) of Regulation (EC) No 637/2008 shall be granted for tangible or intangible investments which improve the overall performance of the enterprise and concern: (a) the processing and/or marketing of cotton; and/or (b) the development of new processes and technologies linked to cotton.
Eligible expenditure
1. The supported investments shall respect the Community standards applicable to the investment concerned. 2. Eligible expenditure shall be: (a) the improvement of immovable property; (b) the purchase or lease purchase of new machinery and equipment, including computer software up to the market value of the asset, and excluding other costs connected with the leasing contract, such as lessor’s margin, interest refinancing costs, overheads and insurance charges; (c) general costs linked to expenditure referred to in points (a) and (b), such as fees of architects and engineers and consultation fees, feasibility studies, the acquisition of patent rights and licences. 3. Costs for the development of new processes and technologies as referred to in Article 12 shall concern preparatory operations, such as design, process or technology development and tests and tangible and/or intangible investments related to them, before the use of the newly developed processes and technologies for commercial purposes. 4. Simple replacement investments shall not be eligible expenditure.
Community contribution
1. The Community contribution for support referred to in Article 12 shall be limited to the following maximum aid rates: (a) 50 % in regions classified as convergence regions in accordance with Council Regulation (EC) No 1083/2006 ( 7 ) ; (b) 40 % in regions other than convergence regions. 2. Support shall not be granted to the firms in difficulty within the meaning of Section 2.1 of the Community guidelines on State aid for rescuing and restructuring firms in difficulty ( 8 ) . 3. Article 72 of Council Regulation (EC) No 1698/2005 ( 9 ) shall apply mutatis mutandis to support referred to in Article 12.
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