# Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008, Article 106: Exchange rate and operative event

Extent: E+W+S+N.I.

1. Where the prices or amounts referred to in Article 105(2) are expressed in euro, they shall be converted into sterling by means of an exchange rate.
2. The operative event for the exchange rate shall be:
(a) the completion of customs import or export formalities in the case of amounts collected or granted in trade with third countries;
(b) the event whereby the economic objective of the operation is attained in all other cases.
3. Where a direct payment as provided for in Regulation (EU) No 1307/2013 is made to a beneficiary in sterling, the relevant authority shall convert the amount of aid expressed in euro into sterling on the basis of the average of the exchange rates set by the European Central Bank during the month prior to 1 October 2019..
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4. As regards direct payment supportCMO support, when drawing up their declarations of expenditure, the relevant authority shall apply the same exchange rate as that which they used to make payments to beneficiaries or receive revenue, in accordance with the provisions of this Chapter.
5. In order to specify the operative event referred to in paragraph 2 or to fix it for reasons peculiar to the market organisation or the amount in question, the appropriate authority may make regulations, containing rules on those operative events and the exchange rate to be used. The specific operative event shall be determined taking account of the following criteria:
(a) actual applicability as soon as possible of adjustments to the exchange rate;
(b) similarity of the operative events for analogous operations carried out under the market organisation;
(c) coherence in the operative events for the various prices and amounts relating to the market organisation;
(d) practicability and effectiveness of checks on the application of suitable exchange rates.
6. In order to avoid the application ... of different exchange rates in accounts of revenue received or aid paid to beneficiaries in a currency other than the euro, on the one hand, and in the establishment of the declaration of expenditure drawn up by the paying agency, on the other, the appropriate authority may make regulations laying down rules on the exchange rate applicable when declarations of expenditure are drawn up and when public storage operations are recorded in the accounts of the paying agency.

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Source: https://www.legislation.gov.uk/eur/2013/1306/article/106 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-1306/article-106
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.