EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 24.8.2005 
COM(2005) 386 final 
2005/0162 (CNS)   
Proposal for a 
COUNCIL REGULATION 
concerning the common organisation of the market in hops 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
Council Regulation (EEC) No 1696/71 of 26 Ju ly 1971 on the common organisation of the 
market in hops has been substant ially amended several times. In vi ew of this, and in particular 
the amendments under Council Regulatio n (EC) No 1782/2003 of  29 September 2003 
establishing common rules for direct support schemes under the common agricultural policy 
and establishing certain support schemes for farmers, Regulation (EEC) No 1696/71 should 
be repealed and replaced by a new Regulat ion, for the sake of clarity and a proper 
understanding of Community legislation. Council Regulation (EEC) No 1037/72 of 
18 May 1972 laying down general rules for gran ting and financing aid for hop producers, the 
provisions of which are incorporated in Regulation (EC) No 1782/2003, should also be 
repealed. Council Regulation (EEC) No 1981/ 82 of 19 July 1982 drawing up the list of 
Community regions, in which pr oduction aid for hops is grante d only to recognised producer 
groups, and Council Regulation (EEC) No 87 9/73 of 26 March 1973 on the granting and 
reimbursement of aid accorded by the Member St ates to recognised producer groups in the 
hop sector have become obsolete following the adoption of Regul ation (EC) No 1782/2003 
and can also be repealed. 
The new Regulation will replace the various regulations incorporated in Regulation (EEC) 
No 1696/71, retaining and rearranging its conten ts. A number of articles have also been 
amended slightly to bring the Regulation up to date. In particular, account has been taken of the changed role of producer groups, who no longe r participate in the ma nagement of the aid. 
Although annual or multi-annual contracts continue to play a major role in the marketing of 
hops and helping to ensure market stability, a nd the mutual exchange of information between 
the Member States and the Commission has been re tained, the official re gistration of contracts 
is no longer necessary. The rule s on trade with third countri es have also been updated. 
This proposal has been drawn up on the basis of a consolidatio n of the text of Regulation 
(EEC) No 1696/71 in all the official languages and the acts amending it. 
Where articles have been renumbered, the co ncordance between the previous and new 
numbering is set out in the correla tion table annexed to the Regulation. 
 
EN 3   EN 2005/0162 (CNS) 
Proposal for a 
COUNCIL REGULATION 
concerning the common organisation of the market in hops 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Article 36 and the third subparagr aph of Article 37(2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of  the European Parliament, 
Having regard to the opinion of the Eu ropean Economic and Social Committee, 
Whereas: (1) Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common  organisation of 
the market in hops
1 has been substantially amended several times, in particular by 
Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural pol icy and establishing 
certain support schemes for farmers a nd amending Regulations (EEC) No 2019/93, 
(EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) 
No 2529/2001
2. For the sake of clarity, Regul ation (EEC) No 1696/71 should be 
repealed and replaced. Council Regulati on (EEC) No 1037/72 of 18 May 1972 laying 
down general rules for granting a nd financing aid for hop producers3, Council 
Regulation (EEC) No 1981/82 of 19 July 1982 drawing up the list of Community 
regions, in which production aid for hops is  granted only to recognised producer 
groups4, and Council Regulation (EEC) No 879/73 of 26 March 1973 on the granting 
and reimbursement of aid accorded by the Member States to recognised producer 
groups in the hop sector5, which have become obsolet e following the adoption of 
Regulation (EC) No 1782/2003, should also be repealed. However, since Slovenia does 
not plan to apply the single payment sc heme until 1 January 2007, provision should be 
                                                 
1 OJ L 175, 4.8.1971, p. 1. Regulation as last amended by Regulation (EC) No 2320/2003 (OJ L 345, 
31.12.2003, p. 18). 
2 OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 118/2005 
(OJ L 24, 27.1.2005, p. 15). 
3 OJ L 118, 20.5.1972, p. 19. Regulation as last amended by Regulation (EEC) No 1604/91 (OJ L 149, 
14.6.1991, p. 13). 
4 OJ L 215, 23.7.1982, p. 3. Regulation as last amended by the 2003 Act of Accession. 
5 OJ L 86, 31.3.1973, p. 26. Regulation as last amended by Regulation (EEC) No 2254/77 (OJ L 261, 
14.10.1977, p. 3). 
 
EN 4   EN made for Article 7 of Re gulation (EEC) No 1696/71 an d Regulations (EEC) Nos 
1037/72 and 1981/82 to continue  to apply in Slovenia for the 2006 harvest. 
(2) Hops and vegetable saps and extracts of hops are products which are generally 
interchangeable. To enable the objectives of Article 33 of the Treaty to be achieved and 
ensure that the common agricultural polic y has full effect in the hops sector, the 
measures on trade with third countries and the marketing rules adopted for hops should 
be extended to vegetable saps and extracts of hops . 
(3) To ensure a fair standard of living fo r producers, Regulation (EC) No 1782/2003 lays 
down aid schemes for certain sectors, including hops. 
(4) A quality policy should be followed throughout the Commun ity by implementing 
provisions concerning certifi cation together with rules pr ohibiting, as a general rule, 
the marketing of products for which a certific ate has not been issued  or, in the case of 
imported products, those which do not co mply with equivalent minimum quality 
characteristics. 
(5) To stabilise markets and ensure reas onable prices for supplies to consumers, 
centralisation of supply and the joint adap tation by growers of their produce to the 
requirements of the market should be encouraged. 
(6) To that end the grouping of growers in bodies which require their members to comply 
with certain common rules should furthe r the achievement of the objectives of 
Article 33 of the Treaty.  
(7) To avoid any discrimination between producers and to ensure the unity and 
effectiveness of any action undertaken, conditions should be  laid down, for the whole 
of the Community, with which producer group s must comply in order to be recognised 
by the Member States. To obtain effective cen tralisation of supply it is necessary in 
particular that the gr oups should be of an economically vi able size and th at the entire 
output of producers should be marketed e ither directly by the group or by the 
producers, according to common rules. 
(8) The measures envisaged should enable an  import scheme to be provided for based 
solely on application of the common customs tariff. 
(9) These measures make it possible to waive a ll quantitative restrictions at the external 
frontiers of the Community. This procedur e may, however, in exceptional cases, be 
found to be inadequate. In such cases, in order not to leave the Community market defenceless against any disturbances arising therefrom, the Community should be empowered to take all necessary measures  quickly. These measures should be in 
accordance with the Community’s  international obligations. 
(10) The proper functioning of the single mark et would be compromised by the grant of 
national aid. As a result, th e provisions of the Treaty gov erning state aid should apply 
to the products covered by this  common market organisation. 
(11) The experience gained in  the application of Regulati on (EEC) No 1696/71 has revealed 
the need for instruments enabling preventiv e action to be taken where a risk of 
structural surpluses or market disturbance arises.  
 
EN 5   EN (12) The measures required for implementi ng this Regulation must be adopted in 
accordance with Council Decision 1999/468/ EC of 28 June 1999 laying down the 
procedures for the exercise of impl ementing powers conferred on the Commission6. 
(13) The transition from Regu lation (EEC) No 1696/71 to this Regulation is likely to create 
difficulties not envisaged in this Regulation. In  order to deal with those difficulties, the 
Commission should be authorised to adopt transitional measures, 
HAS ADOPTED THIS REGULATION: 
CHAPTER  I 
INTRODUCTORY PROVISONS  
Article 1 
1. A common organisation of the market in  hops, including rules on marketing, producer 
groups and trade with third countries, is hereby established, c overing the following 
products: 
CN code Description of goods 
1210 Hop cones, fresh or dried, whether or not ground, powdered or in the form of 
pellets; lupulin 
2. The rules of this Regulation on marketing and trade with third countries shall also 
apply to the following products: 
CN code Description of goods 
1302 13 00 Vegetable saps and extracts of hops 
Article 2 
For the purposes of this Regulation: 
(a) “hops” means the dried inflorescenses, also known as cones, of the (female) climbing 
hop plant ( Humulus lupulus ); these inflorescenses, whic h are greenish yellow and of 
an ovoid shape, have a flower stalk and thei r 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 conten t” means the product obtained by milling the 
hops after mechanical removal of a part of the leaves, st alks, bracts and rachides; 
(d) “extract of hops” means the concentrated products obtained by the action of a solvent 
on the hops or on the hop powder; 
(e) “mixed hop products” means a mixture of tw o or more of the pr oducts referred to in 
points (a) to (d). 
                                                 
6 OJ L 184, 17.7.1999, p. 23. 
 
EN 6   EN Article 3 
This Regulation shall ap ply without prejudice to the measur es provided for in Regulation (EC) 
No 1782/2003. 
CHAPTER  II 
MARKETING  
Article 4 
1. The products referred to in  Article 1, harveste d within the Community or prepared 
from hops harvested within the Communit y, 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 stag e of marketing. In the case of hop powder, 
hop powder with higher lupulin content, ex tract of hops and mixed hop products, the 
certificate may only be issued if the alpha acid content of these products is not lower 
than that of the hops from which they have been prepared. 
3. The certificate shall indicate at least: 
(a) the place(s) of production of the hops; (b) the year(s) of harvesting; (c) the variety or varieties. 
Article 5 
1. The products referred to in Article 1 ma y be marketed or exported only if the 
certificate referred to in Ar ticle 4 has been issued. 
In the case of imported produc ts, the attestation provided fo r in Article 9(2) shall be 
deemed to be the certificate. 
2. Measures derogating from paragraph 1 may be adopted in accordance with the 
procedure referred to in Article 15(2): 
(a) in order to satisfy the trade require ments of certain third countries; or 
(b) for products intended for special uses. 
The measures provided for in the first subparagraph must: 
(a) not prejudice the normal marketing of  products for which the certificate has 
been issued; 
(b) be accompanied by guarantees intended to avoid any confusion with those 
products. 
 
EN 7   EN CHAPTER  III 
PRODUCER GROUPS  
Article 6 
For the purposes of this Regulation, “producer  group” means a group consisting exclusively 
or, where national legislation allows, mainly of hop producers recognised by a Member State 
under Article 7 and formed on the initiative of  the producers for the purpose of achieving one 
or more of the following objectives: 
(a) concentrating supply and he lping to stabilise the market  by marketing all the produce 
of the members or, if necessary, by purch asing hops at a higher price in accordance 
with Article 7(4)(a); 
(b) adapting such production jointly to the re quirements of the market and improving the 
product, in particular by converting to ot her varieties, reorganising hop gardens, 
carrying out promotion, and conducting re search into production, marketing and 
integrated protection; 
(c) promoting the rationalisation and mechan isation of cultivation and harvesting 
operations in order to render production more profitable and better protect the 
environment; 
(d) deciding what varieties of hops may be grown by its members and adopting common 
rules on production. 
Article 7 
1. The authority competent to recognise pr oducer groups shall be  the Member State 
within whose territory the producer  group has its registered office. 
2. Member States shall recognise producer groups which request r ecognition and fulfil 
the following general conditions: 
(a) They have legal personality or suffi cient legal capacity to  be subject, under 
national legislation, to rights and obligations. 
(b) They apply common rules for producti on and placing on the market (first stage 
of marketing). 
(c) Their statutes include an obligatio n on producers who are members of groups 
to: 
(i) comply with the common rules on production and decisions on the 
varieties to be grown, 
(ii) market all their produce through the group. 
(d) They provide proof of economically viable activity. 
(e) They exclude throughout their field of activity any discrimination between 
Community producers or groups in respect of , in particular, their nationality or 
place of establishment. 
 
EN 8   EN (f) They guarantee all producers who unde rtake to comply with the statutes, 
without discrimination, the right to belong to a group. 
(g) Their statutes include provisions aimed at ensuring that the members of a group 
who wish to give up their membership may do so after having been a member for at least three years and provided that they inform the group of their intention 
at least one year before th ey leave, without prejudice  to the national laws or 
regulations designed to protect, in speci fic cases, the group or creditors thereof 
against the financial consequences which might arise from a member leaving, 
or to prevent a member from leaving during the financial year. 
(h) Their statutes include the obligation to  keep separate accounts for the activities 
in respect of which they have been recognised. 
(i) They do not hold a dominan t position in the Community. 
3. The obligation provided for in paragraph 2( c) shall not apply to  products covered by 
sales contracts concluded by producers befo re they joined the producer group, 
provided that the latter was informed  of and approved such contracts. 
4. Notwithstanding paragraph 2(c) (ii), where the producer grou p so authorises and under 
the conditions it lays down, me mbers of a producer group may: 
(a) replace the obligation to have all their production marketed by the producer 
group provided for in paragraph 2(c)(ii)  with marketing in accordance with 
common rules incorporated in the statutes  to ensure that the producer group has 
the right to monitor selling prices, whic h it must approve, failure to do so 
requiring the group to buy back the hops  concerned at a higher price; 
(b) market, through the offices of another producer group chosen by their own 
group, products which by virtue of thei r characteristics ar e not necessarily 
covered by the commercial activities of the latter. 
CHAPTER  IV 
TRADE WITH THIRD COUNTRIES  
Article 8 
Save as otherwise provided for in this Regul ation, the rates of im port duty in the common 
customs tariff shall apply to the products listed in Article 1. 
Article 9 
1. The products referred to in Article 1 co ming from third countries may be imported 
only if their quality st andards are at least equivalent to those adopted for like products 
harvested within the Community or made from such products. 
2. The products referred to in Article 1 shall be considered as being of the standard 
referred to in paragraph 1 of this Articl e if they are accompanied by an attestation 
issued by the authorities of the country of origin and rec ognised as equivalent to the 
certificate referred to in Article 4. 
 
EN 9   EN In the case of hop powder, hop powder with higher lupuli n content, extract of hops 
and mixed hop products, the attestation may onl y be recognised as being equivalent to 
the certificate if the alpha acid content of th ese products is not lower than that of the 
hops from which they have been prepared. 
The equivalence of these attestations shal l be verified accord ing to the procedure 
referred to in Article 15(2). 
Article 10 
1. The general rules for the interpretation of the Combined Nomenclature and the 
special rules for its applica tion shall apply to the tari ff classification of products 
referred to in Article 1. The tariff nomenclatu re resulting from the application of this 
Regulation shall be incorporated  in the common customs tariff. 
2. Save as otherwise provided for in this Re gulation or in provis ions adopted under it, 
the following shall be prohibited in trade with third countries: 
(a) the levying of any charge having eq uivalent effect to a customs duty; 
(b) the application of any quantitative re striction or measure having equivalent 
effect. 
Article 11 
1. If, by reason of imports or exports, the Community market in one or more of the 
products listed in Article 1 is affected by, or  is threatened wit h, serious disturbance 
likely to jeopardise the achievement of the objectives set out in Article 33 of the Treaty, appropriate measures may be applie d in trade with non-member countries of 
the World Trade Organisation until such disturbance or threat of it has ceased. 
2. If the situation refe rred to in paragraph 1 arises, th e Commission shall, at the request 
of a Member State or on its own initiative, decide upon the necessary measures. The Member States shall be notified of such  measures, which shall be immediately 
applicable. If the Commission receives a reque st from a Member State, it shall take a 
decision thereon within three working days of receipt of the request. 
3. The measures referred to in paragraph 2 may be referred to the Council by any 
Member State within three working days of the day on which th ey are notified. The 
Council shall meet immediately. It may, ac ting by a qualified majority, amend or 
repeal the measures in que stion within one month of the day on which they were 
referred to the Council. 
4. Measures adopted under this Article shall be  applied having regard  to the obligations 
arising from agreements concluded in acco rdance with Article 300(2) of the Treaty. 
 
EN 10   EN CHAPTER  V 
GENERAL PROVISIONS  
Article 12 
Save as otherwise provided for in this Regul ation, Articles 87, 88 and 89 of the Treaty shall 
apply to production of and trade in the products referred to in Article 1(1) of this Regulation. 
Article 13 
In cases where there is a dange r of creating surpluses or of  a disturbance in the supply 
structure of the market, the Council, acting by a qualified majority on a proposal from the 
Commission, may take appropriate  measures to prevent market  imbalance. Such measures 
may, for instance, take the form of action affecting: 
(a) the production potential; (b) the volume of supply; (c) the marketing conditions. 
Article 14 
The Member States and the Commission shall send each other such information as is 
necessary for the implementation of this Regulation.  
Article 15 
1. The Commission shall be assisted by the Management Committee for Hops 
(hereinafter ‘the Committee’). 
2. Where reference is made to this paragr aph, Articles 4 and 7 of Decision 1999/468/EC 
shall apply. 
The period referred to in Article 4(3) of Decision 1999/468/EC shall be one month. 
3. The Committee shall adopt its rules of procedure. 
Article 16 
The rules for applying this Regulation shall be adopted in accordance with the procedure 
referred to in Article 15(2), in particular: 
– the minimum quality characteristics referred to in Article 4(2), 
– the definition of placing on the market referred to in Article 7(2)(b), 
– the provisions laid down in Article 7(2)(g), 
– the rules for sending the informa tion referred to in Article 14. 
 
EN 11   EN CHAPTER  VI 
TRANSITIONAL AND FINAL PROVISIONS  
Article 17 
1. Regulation (EEC) No 1696/71 is hereby repe aled with effect from 1 January 2006. 
However, in the case of Slovenia, Artic le 7 shall continue to apply up to and 
including the 2006 harvest. 
References to Regulation (EEC) No 1696/71 sha ll be construed as re ferences to this 
Regulation and shall be read in accordance with the correlation table in the Annex. 
2. Regulations (EEC) Nos 1037/72, 1981/82 and 879/ 73 are hereby repealed with effect 
from 1 January 2006. However, in the case of Slovenia, Regulations (EEC) 
Nos 1037/72 and 1981/82 shall continue to  apply up to and including the 2006 
harvest. 
Article 18 
1. Producer groups recognised under Regulatio n (EEC) No 1696/71 shall be deemed to 
be recognised under this Regulation.  
2. Transitional measures to f acilitate the transition from  Regulation (EEC) No 1696/71 
to this Regulation may be adopted in acco rdance with the procedure referred to in 
Article 15(2). 
Article 19 
This Regulation shall enter into force on the se venth day following that of its publication in 
the Official Journal of  the European Union . 
It shall apply from 1 January 2006. 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels,  
 For the Council 
 The President 
 
EN 12   EN ANNEX  
Correlation table 
Regulation (EEC) No 1696/71 This Regulation 
Article 1(1) and (2) Article 1  
Article 1(3) Article 2 
Article 1(4) – 
– Article 3 
Article 2(1), (2) and (3) Article 4 
Article 2(4)  
Article 2(5) –  
Article 16 
Article 3 Article 5 
Article 4  – 
Article 5(1) and (2) Article 9 
Article 5(3) Article 16 
Article 6 – 
Article 7(1)(a), (b), (c) and (d) Article 6 
Article 7(1)(e) – 
Article 7(1a) and (2) – 
Article 7(3)(a) Article 7(2(b) 
Article 7(3)(b), first subparagraph Article 7(2(c) 
Article 7(3)(b), second subparagraph Article 7(3) 
Article 7(3)(b), third subparagraph Article 7(4) 
Article 7(3)(c) to (f) Ar ticle 7(2)(d) to (g) 
Article 7(3)(g) Article 7(2)(a) 
Article 7(3)(h) and (i) Article 7(2)(h) and (i) 
Article 7(4) Article 7(1) 
Article 7(5) Article 11 
Article 12 – 
Article 13 – 
Article 14 Article 8 
Article 15 Article 10 
Article 15a(1), first subparagraph Article 11(1) 
Article 15a(1), second subparagraph – 
Article 15a(2), (3) and (4) Article 11(2), (3) and (4) 
Article 16 Article 12 
Article 16a Article 13 
Article 17 – 
Article 18, first subparagraph, first sentence Article 14 
Article 18, first subparagraph, second sentence  
Article 18, second subparagraph Article 16  
– 
Article 20 Article 15 
Article 21 – 
Article 22 – 
– Article 17 
– Article 18(1) 
Article 23, first paragraph  Article 23, second paragraph Article 18(2)  
– 
Article 24 Article 19 
 
 
EN 13   EN FINANCIAL STATEMENT  
 DATE: 
1. BUDGET HEADING: 
05 02 11 03 APPROPRIATIONS: 
13 Mio € 
2. TITLE: 
Proposal for a Council Regulation on the common organisation of the market in hops 
3. LEGAL BASIS: 
Article 37 of the Treaty 
4. AIMS: 
Repealing and modifying Regulation (EEC) n° 1696/71 following adoption of Regulation (EC) n° 1782/2003 
5. FINANCIAL IMPLICATIONS 12 MONTH 
PERIOD 
  
(EUR million) CURRENT 
FINANCIAL 
YEAR 
2005 
(EUR million) FOLLOWING 
FINANCIAL 
YEAR 
2006 
(EUR million) 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL AUTHORITIES 
- OTHER - - - 
5.1 REVENUE 
- OWN RESOURCES OF THE EC  (LEVIES/CUSTOMS DUTIES) 
- NATIONAL - - - 
  2007 2008 2009 2010 
5.0.1 ESTIMATED EXPENDITURE - - - - 
5.1.1 ESTIMATED REVENUE - - - - 
5.2 METHOD OF CALCULATION: 
 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET?  
YES NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 
THE CURRENT BUDGET?  
YES NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? YES NO 
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? YES NO 
OBSERVATIONS: