De minimis agriculture


Agricultural de minimis (Regulation (EU) No 1408/2013) allows limited amounts of aid to be given for activities related to the production of agricultural products (e.g. live animals, meat, fruit, vegetables, etc). It does not apply to the processing and/or marketing of these products.


What are the limits of de minimis agricultural subsidies?

These supports are subject to limits: de minimis minimal supports are allowed (generally 5% of agricultural production for developed countries, 10% for developing countries); 32 WTO members that had larger subsidies than the de minimis levels at the beginning of the post-Uruguay Round reform period are committed to reduce these subsidies.

What is the de minimis rule?

This information is part of “A Basic Guide to Exporting”, provided by the U.S. Commercial Service, to assist companies in exporting. In general, the De Minimis Rule allows up to 10 percent (7 percent for NAFTA) of the selling price to be non-qualifying material even though the nonoriginating good may not meet the TS test.

What is de minimis domestic support?

De minimis All domestic support measures in favour of agricultural producers that do not fit into any of the above exempt categories are subject to reduction commitments. This domestic support category captures policies, such as market price support measures, direct production subsidies or input subsidies.

Can de minimis be used to ignore non-originating materials?

However, through the application of de minimis, we can disregard a very small percentage of non-originating materials that do not meet the TCR. (In most cases, these materials may not exceed seven percent of the transaction value of the good adjusted to an FOB basis.)


What does de minimis state mean?

‘DE MINIMIS’ STATE AID EXPLAINED. Page 1. ‘DE MINIMIS’ STATE AID EXPLAINED. Any public money given in the form of grant or other subsidy to a business that exports or is intending to export is counted by the European Commission as a State Aid.

What is de minimis regulation?

The de minimis regulation requires that public authorities keep records of all de minimis aid paid out for 10 years from the last payment. Beneficiaries must keep records of de minimis aid for 3 years. Records must also be kept to show that all conditions of the de minimis regulation has been met.

What is a de minimis payment?

From a tax standpoint, a de minimis benefit is a small amount of employee compensation, and Internal Revenue Code section 132(a)(4) states that these small amounts are not subject to taxation. They’re not worth the time and effort it would take to account for them.

What is EU de minimis?

De minimis aid indeed refers to small amounts of State aid to undertakings (companies) that do not have to be notified to the European Commission by the EU Member States.

What is the de minimis limit?

De minimis definition The de minimis limit is the threshold below which the exempt input tax is regarded as insignificant. The main test for the de minimis limit is supplemented by two simplified tests; if either simplified test is passed, there is no need to apply the main test.

What are examples of de minimis benefits?

What is a De Minimis Benefits Example?Meals, meal vouchers, or meal money provided to employees working overtime.Refreshments purchased for staff meetings or to boost team spirit in the office.Award luncheons or dinners for employees.Personal use of company-owned resources, such as printers and copiers.More items…

How is de minimis calculated?

To calculate the de minimis percentage you divide the dollar value of the U.S.-origin controlled content by the dollar value of the non-U.S.-made item and then multiply by 100. You may not use a discounted value that is given to special customers.

How are de minimis benefits calculated?

How to Calculate De Minimis. To determine whether a municipal bond is subject to the capital gains tax or ordinary income tax using the de minimis tax rule, multiply the face value by 0.25%, and multiply the result by the number of full years between the discounted bond’s purchase date and the maturity date.

What is the draft de minimis?

It is a mere mathematical reflex of the formulas that were used when the amounts were fixed in these Regulations for all the Member States.

How to submit a contribution?

How to submit your contribution 1 If you are answering this consultation as a citizen, please click here to submit your contribution. 2 If you are answering this consultation on behalf of an organisation, please click here to submit your contribution. 3 If you are answering this consultation on behalf of a public authority, please click here to submit your contribution.

When was the de minimis rule proposed?

To address this, APHIS published a proposed rule on July 9, 2018 inviting public comments on two options for a de minimis exception to the declaration requirement for products that contain less than a certain amount of plant material. The first option would adopt an exception for products containing plant material that constitutes no more …

When does the de minimis exception go into effect?

The rule went into effect on April 1, 2020. Filers can begin using the de minimis exception once the disclaimer code is established in the U.S. Customs and Border Protection’s (CBP) Automated Commercial Environment (ACE). APHIS will notify stakeholders when the exception is available in ACE.

What is the exception to the Lacey Act?

The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) established an exception to the Lacey Act import declaration requirements for products containing a minimal, or “de minimis,” amount of plant material.

Does the Lacey Act require a declaration of plant material?

However, the Lacey Act does not address whether declaration requirements are necessary for otherwise non-plant products that contain a minimal amount of plant material, such as wooden buttons on a shirt.

Amber box

Nearly all domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box, which is defined in Article 6 of the Agriculture Agreement as all domestic supports except those in the blue and green boxes.

Blue box

This is the “amber box with conditions” — conditions designed to reduce distortion. Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit production (details set out in Paragraph 5 of Article 6 of the Agriculture Agreement).

Development Box

Article 6.2 of the Agriculture Agreement allows developing countries additional flexibilities in providing domestic support.

What is de minimis?

De minimis. All domestic support measures in favour of agricultural producers that do not fit into any of the above exempt categories are subject to reduction commitments. This domestic support category captures policies, such as market price support measures, direct production subsidies or input subsidies.

What are the present rules and commitments on agriculture called?

The present rules and commitments on agriculture are often called the “Uruguay Round reform programme” — they were negotiated in the Uruguay Round and they include reductions in subsidies and protection as well as other disciplines on the trade.

What is agricultural aid?

Agricultural aid supports the production of agricultural products and related activities. An agricultural product is one listed in Annex 1 to the treaty establishing the European Communities.

What is Defra responsible for?

Defra is responsible for state aid rules in the UK’s agricultural and fisheries sector. When a Member State provides financial aid to selected companies and organisations it may provide them with an advantage which distorts or interferes with the smooth running of the internal market.

Is Annex 1 agricultural?

Activities carried out on farms which are not related to the production, processing or marketing of an Annex 1 product (eg bed and breakfast accommodation , conversion of redundant farm buildings into office space) are not agricultural.

Does Defra count towards de minimis?

For other sectors please contact: Added guidance to clarify that funding under Defra schemes does not count towards de minimis state aid allowance.

What is de minimis aid?

1. Where an undertaking is active in the primary production of agricultural products and is also active in one or more of the sectors or has other activities falling within the scope of Regulation (EU) No 1407/2013, de minimis aid granted for activities in the sector of agricultural production in accordance with this Regulation may be cumulated with de minimis aid granted in respect of the latter sector (s) or activities up to the relevant ceiling laid down in Article 3 (2) of Regulation (EU) No 1407/2013, provided that the Member State concerned ensures, by appropriate means such as separation of activities or distinction of costs, that the primary production of agricultural products does not benefit from de minimis aid granted in accordance with Regulation (EU) No 1407/2013.

What is agricultural product?

For the purposes of this Regulation, ‘agricultural products’ means products listed in Annex I to the Treaty, with the exception of fishery and aquaculture products covered by Council Regulation (EC) No 104/2000 ( 17).

Do all Member States apply the same method of calculation for de minimis?

For the purposes of transparency, equal treatment and the correct application of the de minimis ceiling, all Member States should apply the same method of calculation. In order to facilitate such calculation, aid amounts not taking the form of a cash grant should be converted into their gross grant equivalent.

Is de minimis aid subject to notification?

On that basis, de minimis aid, being aid granted to a single undertaking over a given period of time that does not exceed a certain fixed amount, is deemed not to meet all the criteria laid down in Article 107 (1) of the Treaty and is therefore not subject to the notification procedure. (2)

Definizione dell’importo totale degli aiuti de minimis concessi alle imprese e ripartizione tra Stato e regioni

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