1971R1696 — EN — 12.02.1979 — 003.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B REGULATION (EEC)No 1696/71 OF THE COUNCIL
of 26 July 1971
on the common organisation of the market in hops
(OJ L 175, 4.8.1971, p. 1)
Amended by:
Official Journal
No page date
►M1 Council Regulation (EEC) No 1170/77 of 17 May 1977 L 137 7 3.6.1977
►M2 Council Regulation (EEC) No 235/79 of 5 February 1979 L 34 4 9.2.1979
Amended by:
►A1 Act of Accession of Denmark, Ireland and the United Kingdom of Great
Britain and Northern Ireland L 73 14 27.3.1972
(adapted by Council Decision of 1 January 1973) L 2 1 1.1.1973
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REGULATION (EEC)No 1696/71 OF THE COUNCIL
of 26 July 1971
on the common organisation of the market in hops
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Articles 42, 43, 113 and 235 thereof;
Having regard to the proposal from the Commission;Having regard to the Opinion of the European Parliament (
1);
Having regard to the Opinion of the Economic and Social Committee;
Whereas the operation and development of the common market in
agricultural products must be accompanied by the establishment of a
common agricultural policy and whereas the latter must include in
particular a common organisation of agricultural markets, which maytake various forms depending on the product concerned;
Whereas Community production of hops is of especial interest for the
economy of certain regions of the Community; whereas, for certain
farmers in these regions, hop production represents a major part of their
income;
Whereas, since vegetable saps and extracts of hops are not listed in
Annex II to the Treaty, they are excluded from application of the
provisions therein concerning agriculture, whilst hops are subject
thereto; whereas, however, since the products in question are broadlyspeaking interchangeable, this situation is liable to prejudice the effectof the common agricultural policy in hops; whereas measures adoptedfor hops in respect of trade with third countries pursuant to Article 113
and the marketing rules adopted for hops pursuant to Article 235 should
be extended to vegetable saps and extracts of hops;
Whereas international trade has traditionally held great importance for
producers and users of hops within the Community; whereas in the mainthe best return on Community production has up to now been obtained
through its competitiveness on the world market and through flexible
adjustment of quality and quantity of production to marketing outlets;whereas the common organisation of the markets should not make anybasic changes in this situation but should contribute by appropriatemeasures to the improvement of the quality of the products and protect
the producers from any lowering of their present standards of living;
Whereas a quality policy should be followed throughout the Community
by implementing provisions concerning certification of the designationof origin together with rules prohibiting, as a general rule, the marketing
of products for which the certificate has not been issued or, in the case of
imported products, those which do not comply with equivalent minimumquality characteristics; whereas provision should be made for thedefinition of a standard quality constituting a basis for reference incommercial transactions and ensuring satisfactory alignment of themarket;
Whereas adequate information is needed about the present state of the
market within the Community and the prospects for its development;whereas, in this respect, the fact that a large part of the output ismarketed under contracts concluded before the harvest and even for
several years may facilitate forward planning for the development of the
market; whereas provision should therefore be made for the registrationof all contracts to supply hops produced within the Community;whereas, however, this information should be kept secret in order toassure the persons concerned that it will be used entirely for statisticalpurposes and in order thus to obtain entirely objective information;1971R1696 — EN — 12.02.1979 — 003.001 — 2
(1) OJ No C 66, 1.7.1971, p. 28.
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Whereas, in order to stabilise markets and to ensure a fair standard of
living for the agricultural community and reasonable prices for suppliesto consumers, centralisation of the supply and the joint adaptation by
growers of their produce to the requirements of the market should be
encouraged;
Whereas to this end the grouping of growers in bodies which require
their members to comply with common rules is likely to further the
achievement of the objectives of Article 39 of the Treaty; whereas these
objectives may be pursued, in particular, not only by the grouping ofgrowers within producer groups but also by the formation of unions ofthese groups;
Whereas in order to avoid any discrimination between producers and to
ensure the unity and effectiveness of any action undertaken, conditionsshould be fixed, for the whole of the Community, with which producers'groups and unions of groups must comply in order to be recognised bythe Member States; whereas in order to obtain effective centralisation ofsupply it is necessary in particular that the groups and unions should be
of an economically viable size and that the entire output of member
producers of groups should be marketed either directly by the group orby the union or by the producers, according to common rules;
Whereas provision should be made for measures calculated to facilitate
the setting up and functioning of these groups; whereas, to this end,
Member States should be allowed to grant them aid to be financed inpart by the Community; whereas, however, the amount of such aidshould be limited and should be designated as temporary and degressiveso that the financial responsibility of the producers will progressivelyincrease;
Whereas some Community hop gardens need to be adapted in respect
both of the varieties produced and of the possibility of rationalisingcultivation and harvesting operations; whereas, for a certain number ofyears, conversion of the hop gardens to different varieties and their
reorganisation should be facilitated by granting specific aid to producers'
groups undertaking such activities;
Whereas, in order to ensure a fair standard of living for producers, a
system of aid should be provided; whereas the Commission must present
a report to the Council annually after marketing the harvest so that it
may be decided whether such aid should be fixed; whereas the aid maybe granted if examination of this report reveals that the average returnper hectare has been insufficient taking into account the present stateand foreseeable trend of the market;
Whereas the proposed measures must enable a system of importation to
be provided for which includes no measures other than the implementa-tion of the Common Customs Tariff; whereas that tariff appliesautomatically under the Treaty from 1 January 1970;
Whereas these measures make it possible to waive all quantitative
restriction at the external frontiers of the Community; whereas thisprocedure may, however, in exceptional cases, be found to beineffective; whereas, in such cases, in order not to leave the Communitymarket defenceless against disturbances liable to arise therefrom oncepreviously existing obstacles to imports have been abolished, the
Community must be empowered to take all necessary measures quickly;
Whereas, in internal Community trade, the levying of any customs duty
or charges having an equivalent effect and the application of anyquantitative restriction or any measure having an equivalent effect are
automatically prohibited from 1 January 1970 under the provisions of
the Treaty; whereas, finally, in the absence of minimum prices on 31December 1969, recourse to Article 44 of the Treaty is automaticallyexcluded from 1 January 1970;
Whereas the effectiveness of all the measures governing the common
organisation of the market in hops would be prejudiced by the grantingof certain aids on the part of the Member States; whereas the provisionsof the Treaty enabling aids granted by the Member States to beevaluated and aids which are incompatible with the common market tobe prohibited should be applied to the market in hops; whereas,1971R1696 — EN — 12.02.1979 — 003.001 — 3
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however, provision should be made for a temporary system for national
aid granted for contracts lasting several years made before the entry intoforce of the common organisation of the market;
Whereas the Community should be made financially responsible for
expenditure incurred by the Member States as a result of obligations
arising from the implementation of this Regulation, in accordance withthe provisions of the regulations on the financing of the commonagricultural policy;
Whereas the transition from the system in force in the Member States to
that set up by this Regulation must be carried out under the best possible
conditions; whereas, for this reason, temporary measures may prove to
be necessary;
Whereas the common organisation of the market in hops must take
account, at the same time and in an appropriate manner, of theobjectives laid down in Articles 39 and 110 of the Treaty;
Whereas in order to facilitate the implementation of the proposed
provisions, a procedure should be laid down establishing close co-operation between the Member States and the Commission within a
Management Committee;
HAS ADOPTED THIS REGULATION:
Article 1
1. A common organisation of the market in hops shall be established,
covering the following products:
CCT heading
NoDescription of goods
12.06 Hop cones and lupulin
2. The rules concerning marketing and trade with third countries shall
also apply to the following products:
CCT heading
NoDescription of goods
13.03 A VI Vegetable saps and extracts of hops
3. For the purpose of this Regulation,
(a) ‘hops’ means the dried inflorescenses, also known as cones, of the
(female) climbing hop plant (humuluslupulus) ; these inflorescenses,
which are greenish yellow and of an ovoid shape, have a flower stalkand their longest dimension generally varies from 2 to 5 cm;
(b) ‘hop powder’ means the product obtained by milling the hops,
containing all the natural elements thereof;
(c) ‘hop powder with higher lupulin content’ means the product
obtained by milling the hops after mechanical removal of theleaves, stalks, bracts and rachides;
(d) ‘extract of hops’ means the concentrated products obtained by the
action of a solvent on the hops;
(e) ‘mixed hop products’ means a mixture of two or more of the
products referred to above.
4. Within the meaning of Article 12 (5):
(a) hops at the first stage of preparation are hops which have passed the
first drying treatment, and are packed and ready for sale;
(b) areas in full production:
areas in full production from the third year of production.1971R1696 — EN — 12.02.1979 — 003.001 — 4
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TITLE I
Marketing
Article 2
1. The products referred to in Article 1, harvested within the
Community or prepared from hops harvested within the Communityor imported from third countries shall be subject to a certification
procedure.
2. The certificate may be issued only for products having the
minimum quality characteristics appropriate to a specific stage ofmarketing.
3. The certificate must show at least:
(a) the place(s) of production of the hops;
(b) the year(s) of harvesting;
(c) the variety or varieties.
4. The Council, acting by qualified majority on a proposal from the
Commission, shall adopt, for each product, general rules for theapplication of this Article and the date from which it shall be applied.
5. Detailed rules for the application of this Article shall be adopted in
accordance with the procedure provided for in Article 20.
Article 3
1. Where products referred to in Article 1 are subject to a certification
procedure ►
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exported if the certificate has been issued.
2. Measures derogating from the provision laid down in paragraph 1
may be decided upon according to the procedure provided for in Article
20:
(a) in order to satisfy the trade requirements of certain third countries;
or
(b) for products intended for special uses.
The measures provided for in the preceding subparagraph must:
— not prejudice the normal marketing of products for which the
►M1 ◄certificate has been issued,
— and be accompanied by guarantees intended to avoid any confusion
with those products.
Article 5
1. The products referred to in Article 1 coming from third countries
may be imported only if their quality standards are at least equivalent to
the minimum limits for marketing adopted for like products, harvestedwithin the Community, or their derivatives.
2. The products referred to in Article 1 shall be considered as being
of the standard referred to in paragraph 1 if they are accompanied by anattestation issued by the authorities of the country of origin and
recognized as equivalent to the certificate referred to in Article 2. The
equivalence of these attestations shall be verified ►
M2 ◄
according to the procedure provided for in Article 20.
3. Rules for the application of this Article shall be adopted in
accordance with the procedure provided for in Article 20.1971R1696 — EN — 12.02.1979 — 003.001 — 5
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TITLE II
Supply contracts
Article 6
1. Any contract to supply hops produced within the Community
concluded between a producer or an association of producers and abuyer shall be registered by the bodies designated for that purpose byeach producer Member State.
2. Contracts relating to the supply of specific quantities at agreed
prices for a period covering one or more harvests and concluded before1 August of the year of the first harvest concerned shall be known as
‘contracts concluded in advance’. They shall be registered separately.
3. Member States shall periodically provide the Commission with
statistical information on the registration of contracts.
4. The data on which registration is based may be used only for the
purposes of this Regulation.
5. Rules for the application of this Article shall be adopted in
accordance with the procedure provided for in Article 20.
TITLE III
Producer groups
Article 7
1. For the purposes of this Regulation, ‘producer group’ means a
group consisting exclusively or, when national legislation allows, mainlyof hop producers formed on the initiative of the producers for the
purpose of, in particular:
(a) concentrating supply and stabilizing the market by marketing all the
produce of the members;
(b) adapting such production jointly to the requirements of the market
and improving the product by converting to other varieties and byreorganizing hop gardens;
(c) promoting the rationalization and mechanization of cultivation and
harvesting operations in order to render production more profitable;
(d) adopting common rules for production;
(e) managing the aid system provided for in Article 12:
— by allocating to each member of the group his share of aid in
proportion to area cultivated,
— by taking measures which will permit the attainment of the aims
described in (a),
and recognized by a Member State under the provisions of paragraph 3.2. For the purposes of this Regulation, ‘union’ means a union of
recognized producer groups pursuing the same objectives as thesegroups and recognized by a Member State under the provisions of
paragraph 3.
3. Member States shall recognize the producer groups and unions
thereof which request recognition and fulfil the following general
conditions:
(a) apply common rules for production and placing on the market (first
stage of marketing);
(b) include in their statutes the obligation for producers who are
members of groups and for recognized groups which are members ofunions:
— to comply with the common rules for production,
— to sell all their produce through the group or the union.1971R1696 — EN — 12.02.1979 — 003.001 — 6
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That obligation shall not apply, however, to products for which the
producers had concluded sales contracts before joining the group,provided that the group was informed of, and approved, those
contracts.
However, such approval shall not be required until 31 December
1980.
It shall be possible for a group or union to authorize its members to
market a part of their produce themselves in accordance with rules
laid down and supervised by the group or union;
(c) provide proof of an economically viable activity;
(d) exclude throughout their field of activity any discrimination between
Community producers or groups in respect of, in particular, their
nationality or place of establishment;
(e) guarantee all producers who undertake to comply with the statutes,
without discrimination, the right to belong to a group;
(f) include in their statutes provisions aimed at ensuring that the
members of a group or union who wish to give up their membership
may do so after a period of membership of at least three years andprovided that they inform the group or union at least one year beforethey leave of their intention of doing so.
Those provisions shall apply without prejudice to the national laws
or regulations designed to protect, in specific cases, the group orunion or creditors thereof against the financial consequences which
might arise from a member leaving, or to prevent a member from
leaving during the budgetary year;
(g) have the legal personality or sufficient legal capacity to be subject,
under the provisions of national legislation, to rights and obligations;
(h) include in their statutes the obligation to keep separate accounts for
the activities in respect of which they have been recognized;
(i) do not hold a dominant position in the Community.
4. The authority competent to recognize producer groups and unions
thereof shall be the Member State within whose territory the producergroup or union has its registered office.
5. Rules for the application of this Article, and in particular the
management of the aid system laid down in paragraph 1 (e), thedefinition of ‘placing on the market’ for the purposes of paragraph 3 (a),and rules concerning the provisions laid down in paragraph 3 (f), shallbe adopted in accordance with the procedure provided for in Article 20.
Article 8
1. Member States may grant aid to recognized producer groups for
three years following the date of their recognition as laid down in Article7 (3), to encourage their formation and to facilitate their operation. For
the first, second and third years respectively, the amount of such aid may
not exceed 3, 2 and 1 % of the value of the products to which therecognition refers that are placed on the market. The aid must not,however, exceed during the first year 60 %, during the second year 40 %and during the third year 20 % of the administrative costs of theproducer group.
The value of products marketed shall be calculated, for each year, on the
basis of:
— the average output marketed by member producers during the three
calendar years preceding their joining,
— the average producer prices obtained by those producers during the
same period.
2. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules for the application of this Article.
Detailed rules for the application of this Article shall be laid down in
accordance with the procedure provided for in Article 20.1971R1696 — EN — 12.02.1979 — 003.001 — 7
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Article 9
1. Any increase in the area under hops shall be prohibited from 1 July
1977 until 31 December 1979.
For the purposes of this paragraph, Member States may consider a
recognized producer group as a single producer.
2. Member States shall take any measures necessary to verify the
application of the prohibition referred to in paragraph 1.
3. Member States may grant to recognized producer groups aid not
exceeding 1 800 units of account per hectare for conversion to other
varieties and the reorganization of hop gardens as referred to in Article 7
(1) (b), provided that such operations are carried out before 1 July 1979and entail a reduction of at least 40 % in the area concerned.
4. The Council, acting by a qualified majority on a proposal from the
Commission, may extend the period of application of the measures
referred to in this Article.
Article 10
1. The Council, acting in accordance with the voting procedure laid
down in Article 43 (2) of the Treaty, on a proposal from theCommission, shall adopt general rules for the application of Articles 8and 9.
2. Detailed rules for the application of Articles 8 and 9 shall be laid
down in accordance with the procedure provided for in Article 20.
TITLE IV
Aid to producers
Article 11
Each year before 30 April the Commission shall submit a report to the
Council on the situation regarding the production and marketing of hops.
The report shall take account, in particular, of price trends and the
developments in hop gardens, production and requirements.
Article 12
1. A system of aid shall be instituted for hops produced in the
Community.
2. Aid may be granted to producers to enable a fair income to be
realized.
3. In those Community regions in which recognized producer groups
are able to ensure a fair income for their members and to achieve
rational management of supply, the aid shall be granted to such producer
groups alone.
In the other regions, aid shall be granted to individual producers.4. The Council, acting on a proposal from the Commission based on
the information communicated to it by the Member States, shall adopt in
good time by a qualified majority the list of the regions which arereferred to in the first subparagraph of paragraph 3.
5. (a) The amount of this aid per hectare, which will differ according to
groups of varieties, shall be fixed taking into account, in
particular:
— for each group of varieties, the average return obtained by
producer groups at the first stage of preparation of hops, andcalculated at this stage, for areas in full production incomparison with the average returns for previous harvests,
— the current position and foreseeable trend of the market in the
Community,1971R1696 — EN — 12.02.1979 — 003.001 — 8
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— external market trends and world market prices,
— costs trends.
(b) The different groups of hop varieties shall be the following:
— Group 1: aromatic hops,
— Group 2: bitter hops,— Group 3: others.
6. Where the report referred to in Article 11 shows that there is a risk
of creating structural surpluses or a disturbance in the supply structure ofthe Community hop market:
(a) the granting of aid may be limited to part of the area under hops
registered for the year in question;
(b) those areas under hops which are in their first and/or second year of
production may be declared ineligible for aid.
When the development of the area under hops in relation to the progress
made in the marketing of the products, as measured in particular bycontracts, the level of prices and the state of stocks, has been examined,a decision shall be taken to apply the measures described under (a) and
(b) to all groups of varieties or to one or more groups of varieties only.
7. The amount of aid applicable to areas under hops in respect of the
harvest of the preceding calendar year shall be fixed in the two monthsfollowing the submission of the report referred to in Article 11 and
before 30 June, in accordance with the procedure laid down in Article 43
(2) of the Treaty.
8. The arrangements for implementing this Article shall be adopted in
accordance with the procedure laid down in Article 20.
Article 13
1. Subject to Article 12 (6), aid shall be granted for registered areas
on which the crop has been harvested.
Member States shall designate the bodies which are competent to
register, for each producer, the areas under hops, and which areresponsible for control and maintenance of the register.
2. For the purposes of this Article, Member States may consider a
recognised producer group as a single producer.
3. The Council, acting in accordance with the voting procedure laid
down in Article 43 (2) of the Treaty on a proposal from the Commission,shall adopt general rules for the application of this Article.
4. Detailed rules for the application of this Article shall be laid down
in accordance with the procedure provided for in Article 20.
TITLE V
System of trade with third countries
Article 14
Save as otherwise provided in this Regulation or where derogation
therefrom is decided upon by the Council, acting in accordance with the
voting procedure provided for in Article 43 (2) of the Treaty on a
proposal from the Commission, the following shall be prohibited in tradewith third countries:
(a) the levying of any charge having an effect equivalent to a customs
duty;
(b) the application of any quantitative restriction or any measures
having an equivalent effect.1971R1696 — EN — 12.02.1979 — 003.001 — 9
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Article 15
1. If, by reason of imports or exports, the Community market in the
products listed in Article 1 experiences or is threatened with seriousdisturbances which may endanger the objectives of Article 39 of theTreaty, appropriate measures may be applied in trade with thirdcountries until such disturbance or threat of disturbance has ceased.
The Council, acting in accordance with the voting procedure laid down
in Article 43 (2) of the Treaty on a proposal from the Commission, shalladopt detailed rules for the application of this paragraph and define the
cases in which and the limits within which Member States may take
protective measures.
2. If the situation mentioned in paragraph 1 arises, the Commission
shall, at the request of a Member State or on its own initiative, decide
upon the necessary measures; the measures shall be communicated tothe Member States and shall be immediately applicable. If theCommission receives a request from a Member State, it shall take adecision within twenty-four hours following receipt of the request.
3. The measures decided upon by the Commission may be referred to
the Council by any Member State within three working days followingthe day on which they were communicated. The Council shall meetwithout delay. It may amend or repeat the measures in question in
accordance with the voting procedure laid down in Article 43 (2) of the
Treaty.
TITLE VI
General provision
Article 16
Save as otherwise provided in this Regulation, Articles 92, 93 and 94 of
the Treaty shall apply to the production of and trade in the productslisted in Article 1 (1).
However, aid granted by a Member State to hop producers may be
maintained during the period of validity of contracts entered into beforethe date of entry into force of this Regulation, in so far as this aid
exceeds the amount of Community aid provided for in Article 12. The
time for this aid may not be extended.
Article 16a
In cases where there is a danger of creating surpluses or of a disturbance
in the supply structure of the market, the Council, acting by a qualifiedmajority on a proposal from the Commission, may take appropriatemeasures to prevent market imbalance. Such measures may, forinstance, take the form of action affecting:
— the production potential,
— the volume of supply,
— the marketing conditions.
Article 17
1. The provisions laid down by the regulations on the financing of the
common agricultural policy shall apply to the market in the productslisted in Article 1 (1) from the date of implementation of the systemprovided for by this Regulation.
2. The measures provided for in Articles 8 and 9 shall constitute
common measures within the meaning of Article 6 (1) of CouncilRegulation (EEC) No 729/70 (
1) of 21 April 1970 on the financing of the
common agricultural policy.1971R1696 — EN — 12.02.1979 — 003.001 — 10
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3. The Guidance Section of the EAGGF shall reimburse Member
States with 25% of the eligible expenditure which they incur in respectof the action provided for in Article 8 and with 50% of the eligible
expenditure incurred in respect of the action provided for in Article 9.
4. Requests for reimbursement shall relate to expenditure incurred
during the course of one calendar year and shall be submitted to theCommission before 30 June of the following year.
5. The estimated total cost of the common measures to the EAGGF is
two million units of account.
6. The time for carrying out the action referred to in Article 8 shall be
limited to a period of ten years from the date of entry into force of this
Regulation.
7. Detailed rules for the application of paragraph 3 shall be adopted
in accordance with the procedure laid down in Article 13 of Regulation(EEC) No 729/70.
Article 18
Member States and the Commission shall communicate to each other the
information necessary for implementing this Regulation. Rules for thecommunication and distribution of such information shall be adopted in
accordance with the procedure laid down in Article 20.
Article 19
1. A Management Committee for Hops (hereinafter called the
‘Committee’) shall be established, consisting of representatives of
Member States under the chairmanship of a representative of the
Commission.
2. Within the Committee, the votes of Member States shall be
weighted in accordance with Article 148 (2) of the Treaty. TheChairman shall not vote.
Article 20
1. Where the procedure laid down in this Article is to be followed,
the Chairman shall refer the matter to the Committee either on his owninitiative or at the request of the representative of a Member State.
2. The representative of the Commission shall submit a draft of the
measures to be taken. The Committee shall deliver its Opinion on suchmeasures within a time limit to be set by the Chairman according to theurgency of the questions under consideration. An Opinion shall beadopted by a majority of ►
A1forty-one ◄votes.
3. The Commission shall adopt measures which shall apply
immediately. However, if these measures are not in accordance withthe Opinion of the Committee, they shall forthwith be communicated bythe Commission to the Council. In that event the Commission may defer
application of the measures for not more than one month from the date
of such communication.
The Council, acting in accordance with the voting procedure laid down
in Article 43 (2) of the Treaty may take a different decision within onemonth.
Article 21
The Committee may consider any other question referred to it by its
Chairman, acting either on his own initiative or at the request of therepresentative of a Member State.1971R1696 — EN — 12.02.1979 — 003.001 — 11
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Article 22
This Regulation shall be so applied that appropriate account is taken, at
the same time, of the objectives set out in Articles 39 and 110 of the
Treaty.
Article 23
Should transitional measures be necessary to facilitate the transition to
the system, as amended by Regulation (EEC) No 1170/77, in particularif the introduction of the amended system on the date laid down meetswith substantial difficulties, such measures shall be adopted inaccordance with the procedure laid down in Article 20. They shallremain applicable until 31 December 1980 at the latest.
Until this date the United Kingdom shall be authorized to pay producers
the amount of production aid through the intermediary of a body it shall
appoint.
Article 24
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
The provisions of Articles 11, 12 and 13 shall apply, for the first time, to
the 1971 harvest.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1971R1696 — EN — 12.02.1979 — 003.001 — 12
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