VII-1. Exempt framework scheme No SA. 46706 on aid for international co-development and international co-production of cinematographic or audiovisual works, adopted on the basis of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty
(Article 711-3)
The French authorities have informed the Commission of the implementation of this notification-exempt framework scheme relating to aid for international co-development and international co-production of cinematographic or audiovisual works based on General Block Exemption Regulation No 651/2014 of 17 June 2014 (GBER) and in particular Article 54 thereof. This aid scheme has been registered by the Commission under reference SA. 46706.
Article 1
Purpose of the scheme.
This framework scheme on aid for international co-development and international co-production of cinematographic or audiovisual works provides a framework, in accordance with European regulations, for aid schemes established by an intergovernmental agreement, the management and financing of which are entrusted to the Centre national du cinéma et de l’image animée (CNC) or by an administrative partnership agreement concluded between the CNC and other public authorities of the European Union and third States. These schemes are listed in Book VII, Title 1, Chapter 1 of the CNC’s General Financial Aid Regulations.
This framework scheme takes up and specifies the conditions of the GECR applicable to aid schemes for co-development and international co-production.
Aid schemes instituted on the basis of this framework regime must comply with all its conditions and refer to it, in particular:
For an intergovernmental or administrative agreement instituting an aid scheme (or other equivalent document):
Aid scheme taken in application of exempted framework regime no. SA. 46706, on aid for international co-development and international co-production of cinematographic or audiovisual works, adopted on the basis of Commission Regulation No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
For any legal act awarding aid:
Aid awarded on the basis of [specify the title of the aid scheme concerned] taken pursuant to exempted framework scheme no. SA. 46706, relating to aid for international co-development and international co-production of cinematographic or audiovisual works, adopted on the basis of Commission Regulation No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
Article 2
Duration.
This framework scheme enters into force the day after the publication in the Journal officiel de la République Française of the deliberation of the CNC’s Board of Directors of 24 November 2016 and is applicable until 31 December 2020, the date on which the GBER expires, or, where applicable, until a later date if the European Commission has taken a decision authorising its extension.
Article 3
Notification threshold.
This framework scheme covers the aid schemes for international co-development and international co-production of cinematographic or audiovisual works insofar as the CNC’s financial contribution to each scheme is less than 50 million euros per year.
In cases where this financial contribution exceeds €50 million per year, notification of the aid scheme concerned will be required.
Article 4
Scope of application.
4.1. Scope of application.
This framework applies to financial contributions made by the CNC under aid schemes for international co-development and co-production of cinematographic or audiovisual works.
4.2 Exclusions.
This framework scheme does not apply to the following aids:
– aid reserved for specific production activities or for individual links in the production value chain;
– aid for studio infrastructure;
– aid for a company which is subject to an outstanding recovery order following a Commission decision declaring aid illegal and incompatible with the internal market;
– aid which, by itself, by the terms on which it is granted or by the way in which it is financed, leads indissociably to a breach of Union law, in particular:
1. Aid measures the granting of which is subject to the obligation for the beneficiary to have its registered office in the Member State concerned or to be principally established in that Member State. However, it is permitted to require that the beneficiary has an establishment or a branch in the Member State granting the aid at the time the aid is paid;
2. Aid reserved exclusively for nationals;
3. Aid measures the granting of which is subject to an obligation on the part of the beneficiary to use goods produced on national territory or to have recourse to services provided from national territory, to an extent greater than that authorised by Article 54 of the GBER;
– aid granted to firms in difficulty, as defined by Article 2 (18) of the GBER;
– aid which favours activities linked to exports to third countries or a Member State, i.e. aid directly linked to the quantities exported;
– aid which finances the establishment and operation of a distribution network or other current expenditure linked to the export activity.
Article 5
Transparency of aid.
Aid granted on the basis of aid schemes adopted pursuant to this framework scheme must be “transparent”, i.e. it must be possible to calculate precisely and in advance the gross grant equivalent of the aid, without the need to carry out a risk analysis.
Aid awarded in the form of grants is considered transparent. Aid granted in the form of repayable advances shall be considered transparent provided that the total amount does not exceed the thresholds and aid intensities applicable under this scheme.
Article 6
Incentive effect of aid.
Aid granted on the basis of aid schemes under this scheme must have an incentive effect.
Aid shall be deemed to have an incentive effect if the beneficiary has submitted a written aid application to the body granting the aid before work on the project or activity in question has begun. The request for assistance shall contain at least the following information:
a) the name and size of the company;
b) a description of the project, including start and end dates;
c) the location of the project;
d) a list of eligible costs;
e) the type of assistance requested (grant, interest subsidy, repayable advance, loan, guarantee);
f) the estimated amount of assistance requested.
If the incentive effect is not demonstrated, the aid will not be granted.
Article 7
Eligible projects.
Aid granted on the basis of the aid schemes adopted in application of this framework scheme must be intended to support the international co-development or co-production of cinematographic or audiovisual works constituting a cultural product. This cultural aspect will be established in accordance with the procedures established for this purpose.
Article 8
Eligible costs.
Eligible costs shall be as follows:
For development aid: preparation costs, covering scriptwriting and other development expenses;
For production aid: production costs, covering overall production costs, including costs to improve accessibility for disabled people.
Article 9
Territorialisation.
Aid schemes implemented under this framework scheme may provide that the aid granted is subject to obligations to territorialise expenditure.
Territorialisation obligations are obligations imposed on aid recipients to spend a minimum amount and/or carry out a minimum production activity in a given territory. These obligations may :
– require up to 160% of the aid granted for a given work to be spent on the territory of the Member State granting the aid; or
– calculate the aid granted for a given work as a percentage of expenditure on development and production activities in the Member State granting the aid.
In both cases, the maximum expenditure subject to territorialisation obligations shall in no case exceed 80% of the overall production budget.
Aid schemes under this framework scheme may also make the eligibility of a project for aid conditional on a minimum level of development and production activity in the territory concerned, provided that this level does not exceed 50% of the overall budget.
Article 10
Aid intensity.
Aid intensity is the gross amount of aid expressed as a percentage of eligible costs, before tax or other levies.
Development aid intensity shall not exceed 100% of eligible costs. If the script or project results in a cinematographic or audiovisual work, the development costs are included in the overall budget and taken into account when calculating the aid intensity.
Production aid intensity does not exceed 50% of eligible costs.
It may be increased :
– 60% of eligible costs for cross-border cinematographic or audiovisual works financed by more than one Member State and involving producers from more than one Member State;
– to 100% of eligible costs for difficult cinematographic or audiovisual works (1) and co-productions involving countries on the OECD Development Assistance Committee (DAC) list (2).
Eligible costs shall be supported by clear, specific and contemporaneous documentary evidence.
Article 11
Cumulation of aid.
In order to ensure that the maximum aid intensities are respected, the total amount of public aid granted for the project in question must be taken into account, whether this aid comes from local, regional, national or European sources.
Aid for co-development and co-production of cinematographic or audiovisual works granted on the basis of an aid scheme established on the basis of this framework scheme may be combined with :
– any other State aid, as long as such aid relates to different identifiable eligible costs;
– any other State aid, whether partly or wholly overlapping, if such cumulation results in an aid intensity or amount less than or equal to the maximum ceiling applicable to such aid under the General Block Exemption Regulation;
– aid for disabled workers provided for under the GBER relating to the same eligible costs and thus exceeding the highest applicable threshold provided for in that Regulation, provided that such cumulation does not lead to an aid intensity exceeding 100% of the corresponding costs over any period during which the workers concerned are employed.
Aid granted on the basis of an aid scheme adopted pursuant to this framework scheme may be cumulated with de minimis aid provided for in Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, concerning the same eligible costs, unless such cumulation leads to an aid intensity exceeding those laid down in Article 10 of this scheme.
Union financing managed at central level by the institutions, agencies, joint undertakings or other Union bodies and controlled neither directly nor indirectly by the Member State shall not be taken into account in determining whether the maximum aid intensities or amounts are complied with.
Article 12
Publication.
The following shall be published on a national website
– the information contained in the SANI form sent to the Commission pursuant to the GBER;
– the full text of the aid schemes adopted pursuant to this framework scheme;
– information on individual grants of €500,000 or more. This information concerns :
Name of the beneficiary;
Identifier of the beneficiary: SIREN number – 9 digits;
Type of enterprise at the time the aid is granted: SME or large enterprise;
Region of the beneficiary;
Amount of aid;
Aid instrument;
Date of grant;
Objective of aid;
Granting authority;
Number of the aid measure.
Article 13
Annual reporting.
This framework scheme will be the subject of an annual report, in electronic form, sent to the European Commission by the French authorities in accordance with Commission Regulation (EC) No 794/2004 of 21 April 2004 concerning the implementation of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty. This report shall contain information on the scheme for each full year or part of a year during which the Regulation applies.
Article 14
Retention of documents.
Detailed records containing the information and supporting documents necessary to establish whether all the conditions laid down in this framework scheme are fulfilled must be kept for ten years from the date on which the ad hoc aid was granted or the last aid was granted under the scheme concerned.
VII-2. Selective financial support for world cinema
VII-2.1. Supporting documents to be attached to an application for aid complementary to an application for aid to world cinemas
(Articles 712-2 et seq.)
1° The co-production contract, unless it has already been provided as part of the application for world cinema support, in which case any amendments made since then;
2° The agreement between the parties to the co-production designating the company receiving the additional support if it is not designated in the co-production contract;
3° Any official document attesting to the existence of the company designated as the beneficiary of the additional aid;
4° A joint note from the company designated as the beneficiary of the additional aid and the company established in France that has applied for the allocation of aid to Cinémas du Monde justifying the amount of additional aid requested;
5° Proof of financing acquired in the African, Caribbean and Pacific zone.
VII-2.2. List of States considered to be located in the African, Caribbean and Pacific zone taken into account for the allocation of supplementary grants to support world cinema
(Article 712-3)
1° Africa :
South Africa ;
Angola ;
Benin ;
Botswana ;
Burkina Faso ;
Burundi ;
Cameroon ;
Cape Verde ;
Comoros ;
Congo ;
Ivory Coast ;
Djibouti ;
Eritrea ;
Ethiopia;
Gabon;
Gambia;
Ghana;
Guinea;
Guinea-Bissau;
Equatorial Guinea;
Kenya;
Lesotho;
Liberia;
Madagascar;
Malawi;
Mali;
Mauritius;
Mauritania;
Mozambique;
Namibia;
Niger;
Nigeria;
Uganda;
Central African Republic;
Democratic Republic of Congo;
Rwanda;
Sao Tome and Principe;
Senegal;
Seychelles;
Sierra Leone;
Somalia;
Sudan;
Swaziland;
Tanzania;
Chad;
Togo;
Zambia;
Zimbabwe;
2° Caribbean:
Antigua and Barbuda;
Bahamas;
Barbados;
Belize;
Dominica;
Grenada;
Guyana;
Haiti;
Jamaica;
Dominican Republic;
Saint Kitts and Nevis;
Saint Lucia;
Saint Vincent and the Grenadines;
Suriname;
Trinidad and Tobago;
3° Pacific:
Fiji;
Cook Islands;
Marshall Islands;
Solomon Islands;
Kiribati;
Micronesia;
Nauru;
Niue;
Palau;
Papua New Guinea;
Samoa;
Timor-Leste;
Tonga;
Tuvalu;
Vanuatu.
VII-3. Automatic financial assistance for the promotion abroad of cinematographic works
VII-3.1. Supporting documents to be attached to an application for an investment grant
(Articles 721-1 et seq.)
Investment authorisation:
1° For the promotion abroad of specified cinematographic works :
a) A note detailing the canvassing strategy put in place for the cinematographic work;
b) Where the investment is made under article 721-23, a copy of the contract for the acquisition of the foreign exploitation rights if this has not yet been entered in the cinema and audiovisual register, stating the amount of the sums due in return for the acquisition;
c) Where applicable, when the investment is made under Article 721-23, any document proving payment of the sums due in return for acquisition of the foreign exploitation rights;
d) A list of the territories for which the rights have been acquired and the corresponding amounts;
e) Where applicable, a note detailing the nature of the special operation put in place, how it was carried out and the results obtained;
f) A list of the promotional material produced and the promotional activities undertaken, with details of their respective costs;
g) A list of the markets and events at which the work was presented;
h) A copy of the letter of allocation of CNC aid for the digitisation of heritage works;
i) Detailed invoices corresponding to all eligible costs;
j) In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used;
k) A copy of each promotional medium produced;
2° For the promotion of a catalogue abroad:
a) A note detailing the canvassing strategy implemented during the reference year and the place reserved for French cinematographic works;
b) A note describing the other promotional materials and actions carried out;
c) Detailed invoices corresponding to all costs incurred;
d) A copy of each promotional material produced;
e) In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used.
VII-3.2. List of countries and territories taken into account for the calculation of sums entered in the automatic foreign promotion account
(Article 721-12)
South Africa;
Germany;
Argentina;
Australia;
Austria;
Bolivia;
Bosnia-Herzegovina;
Brazil;
Bulgaria;
Canada (excluding Quebec);
Chile;
China;
Colombia;
South Korea;
Costa Rica;
Croatia;
Denmark;
United Arab Emirates;
Ecuador;
Spain;
Estonia;
United States;
Finland;
Greece;
Guatemala;
Honduras;
Hong Kong ;
Hungary;
Iraq;
Iceland;
Italy;
Japan;
Kuwait;
Latvia;
Lebanon;
Lithuania;
Malaysia;
Morocco;
Mexico;
Nicaragua;
Norway;
New Zealand;
Oman;
Panama;
Paraguay;
Netherlands;
Peru;
Poland;
Portugal;
Quebec;
Czech Republic;
Romania;
United Kingdom;
Russia;
El Salvador;
Serbia;
Singapore;
Slovakia;
Slovenia;
Sweden;
German-speaking Switzerland;
Italian-speaking Switzerland;
Taiwan;
Thailand;
Turkey;
Ukraine;
Uruguay;
Venezuela;
Vietnam.
VII-3.3. List of festivals taken into account for the calculation of sums entered in the automatic account for promotion abroad due to festival selection of cinematographic works
(article 721-17)
– ACID ;
– Annecy ;
– Bafici ;
– Berlinale ;
– BFI ;
– Busan ;
– Cannes-Officiel ;
– Cannes – Directors’ Fortnight ;
– Cannes – Critics’ Week;
– CPH;
– Golden-horse Taipei;
– Göteborg;
– Hong Kong;
– IDFA;
– Istanbul;
– Karlovy Vary;
– Locarno;
– Melbourne ;
– Morelia ;
– Mostra de Venise ;
– Munich ;
– New York – New directors New films ;
– Rio de Janeiro ;
– Rotterdam ;
– San Sebastian ;
– Sitges ;
– Sundance ;
– Tallinn ;
– Talluride ;
– TIFF ;
– Tokyo ;
– Tribeca ;
– Venice Days ;
– Venice – Critics’ Week ;
– Zurich.
VII-4. Automatic financial assistance for the promotion of audiovisual works abroad
VII-4.1. Supporting documents to be attached to an application for a direct grant
(Articles 722-9 et seq.)
I. – For the promotion abroad of a specific audiovisual work :
1° A copy of the prior or definitive authorisation where this has been issued;
2° The distribution contract where the application is submitted by a distributor;
3° The acceptance, duly completed and certified, of the work by the publisher or publishers of television services responsible for broadcasting it or by the publisher or publishers of services responsible for making it available to the public, or the pre-purchase contract, stating the title and duration of the work;
4° Where applicable, the sales contract for dubbing, subtitling, voice-over and reformatting costs;
5° For the derogation provided for in article 722-13, the firm offer to acquire the rights to exploit the work and, where applicable, proof of the amount of exploitation revenue;
6° The contract to acquire the rights to exploit the work abroad for the derogation provided for in 1° of article 722-6;
7° Detailed invoices issued by the technical service provider for each work;
8° A copy of each promotional medium produced;
9° In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used.
II. – For the promotion of a company’s catalogue abroad:
1° Detailed invoices from the technical service provider;
2° A copy of each promotional material produced;
3° In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used.
VII-5. Selective financial aid for the promotion of audiovisual works abroad
VII-5.1. Supporting documents to be attached to an application for aid for the promotion abroad of a specific audiovisual work or the catalogue of a company
(Articles 722-18 et seq.)
I. – For the foreign promotion of a specific audiovisual work :
1° A synopsis of the work;
2° A copy of the prior or definitive authorisation where this has been issued;
3° The distribution contract where the application is submitted by a distributor;
4° Duly completed and certified acceptance of the work by the television service publisher(s) responsible for broadcasting it or by the service publisher(s) responsible for making it available to the public, stating the title and duration of the work;
5° Detailed invoices corresponding to all costs incurred;
6° A copy of each promotional medium produced;
7° In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used;
8° Where applicable, a note detailing the strategy behind the special promotional operation, the methods used to carry it out and the results obtained.
II. – For the promotion of a company’s catalogue abroad:
1° Detailed invoices from the technical service provider;
2° A copy of each promotional material produced;
3° In the case of internal costs, a detailed statement of these costs certified by a chartered accountant or auditor specifying the valuation method used.
VII-6. Selective financial aid for the distribution abroad of works representative of world cinema
VII-6.1. Supporting documents to be attached to an application for aid for the foreign distribution of works representative of world cinema
(Articles 723-1 et seq.)
I. – Allocation of aid :
1° Planned release plan and distribution strategy;
2° Estimates and financing plan for each of the planned modes of exploitation;
3° Contracts for the transfer of rights proving that the applicant has the necessary rights to market the work abroad;
4° Contracts for the transfer of rights or marketing mandates or any contractual document attesting to the intention to enter into such transfers or mandates with partners;
5° Decisions to award grants or applications submitted to other international co-production funds (examples: Hubert Bals, World Cinema Fund, Idfa, Torina Film Lab).
II. – Payment of the balance of the grant:
1° List of works actually exhibited in each territory;
2° Quantitative and qualitative report on the distribution project;
3° Activity report;
4° Detailed invoices;
5° Summary statement of costs.
VII-6.2. List of countries taken into account for the qualification of difficult work
(Article 723-8)
Antigua and Barbuda;
Armenia;
Azerbaijan;
Belize;
Belarus;
Bolivia;
Chile;
Colombia;
North Korea;
Costa Rica;
Dominica;
Egypt;
Ecuador;
Fiji;
Grenada;
Guatemala;
Guyana;
Honduras;
Iraq;
Iran;
Jamaica;
Jordan;
Kazakhstan;
Kyrgyzstan;
Kosovo;
Libya;
Maldives;
Micronesia;
Nauru;
Moldova;
Mongolia;
Montenegro;
Nicaragua;
Uzbekistan;
Pakistan;
Palau;
Papua New Guinea;
Paraguay;
Peru;
Philippines;
Saint Kitts and Nevis;
Saint Vincent and the Grenadines;
Saint Lucia;
El Salvador;
Sri Lanka;
Syria;
Tajikistan;
Thailand;
Tonga;
Turkmenistan;
Uruguay;
Venezuela.