Article 35 Optional transitional periodF1

The Member States which apply an optional transitional period in accordance with Article 71 of Regulation (EC) No 1782/2003 shall pay the processing undertakings, for subsequent transfer to producers, the aid referred to in the second subparagraph of Article 71(2) of Regulation (EC) No 1782/2003, based on the eligible quantities in the 2005/06 marketing year.

This aid shall be fixed on the basis of the potentially eligible quantities and subject to the ceiling in Annex IV to Commission Regulation (EC) No 118/2005 ^f1 .

‘ Potentially eligible quantities ’ means the sum of the quantities recognised as eligible for the aid provided for in Article 4 of Regulation (EC) No 1786/2003 during the 2005/06 marketing year and the quantities produced during the 2005/06 marketing year which have been the subject of an application for that aid for the 2005/06 marketing year in the 2006/07 marketing year, and, where appropriate, the aid referred to in the second subparagraph of Article 71(2) of Regulation (EC) No 1782/2003, in accordance with Article 34a. These potentially eligible quantities shall not include the quantities referred to in Article 34.

Where the processing undertaking is supplied with fodder from another Member State, the aid referred to in the second subparagraph of Article 71(2) of Regulation (EC) No 1782/2003 shall be paid to the processing undertakings for transfer to the producer only if that producer is based in a Member State which applies the optional transitional period.

The aid referred to in the second subparagraph of Article 71(2) of Regulation (EC) No 1782/2003 shall be fixed in accordance with the procedure referred to in Article 18(2) of Regulation (EC) No 1786/2003.

The aid shall be paid to the processing undertakings within 30 working days of the date on which the Commission publishes the amounts thereof in the Official Journal of the European Union . For the quantities recognised as eligible for the aid after this publication date, payment shall be made within 30 working days of the date of recognition of eligibility for the aid.

Processing undertakings shall transfer the aid to the producers within 15 working days of its payment by the Member State.