***** 
-A- T* COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 06.05.1998 
COM(1998) 280 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 619/71 laying down general rules for granting aid for 
flax and hemp 
(presented by the Commission) 

VI/2561/98E (PHOPT\EN\0053.doc) 
EXPLANATORY MEMORANDUM 
Introduction 
1. At the Council meeting in June 1997 on the adoption of the 1997/98 prices package 
the Council asked the Commission to examine the possibility of introducing 
compulsory contracts between producers and the processing industry in the hemp 
sector. 
2. As part of the 1998/99 prices package, the Commission proposed a reduction of 
25% of the per hectare aid because of the significant and constant growth in land 
sown to hemp over the past few marketing years. 
3. To slow down that not insignificant increase in land sown to hemp and to provide 
better guarantees as to the reliability of controls, it is necessary to "take the 
appropriate additional measures by amending the Regulation laying down the 
general rules for the grant of aid. 
Proposed measures 
4. It is necessary to ensure that aid cannot be granted for land which is not actually 
used. The key to solving that problem lies in the introduction of compulsory 
contracts between producers and processors approved by the Member State and of 
an undertaking to process. Contracts are already provided for in the current rules but 
they are not compulsory. The compulsory approval of primary processors will be the 
duty of the competent authorities of the Member States and not the Commission, in 
line with the principle of subsidiarity. 
5. To reduce still further the risk of the arrangements being used improperly, in 
addition to the abovementioned measures, we also propose to reduce the maximum 
authorised THC limit, to confirm the requirement of harvesting after seed formation 
and to introduce additional measures for supervision of the crop. 
6. It is likely that contracts will already have been signed by some producers before 
this proposal is adopted so the Commission must be able to take transitional 
measures for the first marketing year of application. 
Z 
VI/2561/98T (PHOPT\EN\0052.doc) 
Proposal for a 
Council Regulation (EC) No „„„„ 
of 
amending Regulation (EEC) No 619/71 laying down general rules for granting aid for 
flax and hemp 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EEC) No 1308/70 of 29 June 1970 on the common 
organisation of the market in flax and hemp1, as last amended by Regulation (EC) 
No 3290/942, and in particular Article 4(4) thereof, 
Having regard to the proposal from the Commission, 
Whereas the second subparagraph of Article 4(1) of Regulation (EEC) No 1308/70 
stipulates that aid is granted only for hemp grown from seed of varieties providing certain 
safeguards to be determined in respect of the content of intoxicating substances in the 
harvested product; whereas Article 3(1) of Regulation (EEC) No 619/71 laying down 
general rules for granting aid for flax and hemp3, as last amended by Regulation (EC) 
No 154/974, lays down a maximum limit for the average content of tetrahydrocannabinol 
(THC) to determine the varieties of seeds which can be accepted; whereas in order to 
strengthen the measures ensuring that land eligible for production aid cannot be used for 
illegal cultivation the maximum limit currently laid down should be reduced; whereas, 
for the same purpose, the grant of aid should be made conditional upon harvesting after 
seed formation; 
1 OJ L 146,4.7.1970, p. 1. 
2 OJL 349,31.12.1994, p. 105. 
3 OJL 72, 26.3.1971, p. 2. 
4 OJ L 27, 30.1.1997, p. 1. 3 
VI/2561/98T (PHOPT\EN\0052.doc) 
Whereas Article 3(2) of Regulation (EEC) No 619/71 lays down, for the grant of aid for 
fibre flax, a system of compulsory contracts between producers and primary processors 
containing a processing undertaking; whereas a similar system of compulsory contracts 
should be introduced in the hemp sector so as to improve control of the final use of the 
crop and to guarantee that the crop is actually processed; 
Whereas Article 4 of Regulation (EEC) No 619/71 provides for a system of 
administrative supervision guaranteeing that the product for which aid has been requested 
qualifies for that aid; whereas that supervision system should be strengthened in the 
hemp sector by the introduction of prior administrative authorisation for sowing; 
Whereas the measures provided for in this Regulation must be implemented under the 
best possible conditions; whereas, therefore, transitional measures may be needed to 
facilitate the changeover to the new system, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 619/71 is hereby amended as follows: 
1. Article 3(1) is replaced by the following: 
"1. For hemp, aid shall be granted only to growers who have concluded, before a 
date to be specified, a contract with a primary processor approved by the competent 
authority in the Member State on whose territory his establishments are situated, 
under which the primary processor obtains ownership of the hemp and undertakes to 
process it. 
Aid shall be granted only for hemp harvested after seed formation and grown from 
certified seed of varieties contained in a list to be drawn up in accordance with the 
procedure laid down in Article 12 of Regulation (EEC) No 1308/70. This list shall 
include only varieties for which a Member State has found by analysis that the 
weight of THC (tetrahydrocannabinol) in the weight of a sample maintained at 
constant weight is no more than 0.15%. 
7 
VI/2561/98T (PHOPT\EN\0052.doc) 
The sample referred to above shall consist of the upper third of a representative 
number of plants selected at random at the end of their flowering period and with 
stalks and seeds removed." 
2. In Article 4(1), the following subparagraph is added: 
"For hemp, Member States shall introduce administrative arrangements for crop 
supervision comprising a system for the prior authorisation of sowing on land 
eligible for aid for the production of hemp. The criteria and rules relating to the 
system shall be adopted in accordance with the procedure laid down in Article 12 of 
Regulation (EEC) No 1308/70." 
3. Article 6a is replaced by the following: 
"Article 6a 
Should transitional measures be strictly necessary to facilitate the implementation of 
the adjustments to the arrangements laid down in Regulation (EC) No ..../98 with 
effect from the 1998/99 marketing year, such measures shall be adopted in 
accordance with the procedure laid down in Article 12 of Regulation (EEC) 
No 1308/70. They shall apply until the end of the 1999/2000 marketing year at the 
latest." 
Article 2 
This Regulation shall enter into force on the seventh day following its publication in the 
Official Journal of the European Communities. 
It shall apply from the 1998/99 marketing ye;ir. However, Article 1(3) shall apply from 
the entry into force of the Regulation. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at 
For the Council 
INANCIAL STATEMENT VI/2561/98F (PHOPT\EN\0051 .doc) 
Date: 
BUDGET HEADING: B1-1402 APPROPRIATIONS: 
ECU 16 million 
TITLE: : 
Proposal for a Council Regulation amending Regulation (EEC) No 619/71 laying down general rules for granting aid for 
flax and hemp 
LEGAL BASIS: 
Article 4(4) of Regulation (EEC) No 1308/70 
AIMS: 
To introduce new provisions to provide better guarantees that the hemp for which aid is requested is grown for real and 
legitimate uses. 
FINANCIAL IMPLICATIONS PERIOD OF 12 
MONTHS 
(ECU million) CURRENT 
FINANCIAL 
YEAR 
(98) 
(ECU million) FOLLOWING 
FINANCIAL 
YEAR 
(99) 
(ECU million) 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL AUTHORITIES 
- OTHER 0) (1) 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 2000 
(1) 2001 
(1) 2002 
(1) 2003 
(1) 
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? VUK/NJQ 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? VfiS/NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO 
OBSERVATIONS: 
(1) The proposed measure has no direct impact on the budget. However, the obligation to conclude contracts and to have the 
hemp processed by approved processors along with the new conditions regarding the harvesting of seed and the 
introduction of an administrative supervision system could result in a decrease in land eligible for aid. Any savings 
resulting from such a decrease are difficult to calculate. 
^r^r^i*rr,"".tE^3rsi.. : 
ISSN 0254-1475 
COM(98) 280 final 
DOCUMENTS 
EN 03 15 10 01 
Catalogue number : CB-CO-98-290-EN-C 
ISBN 92-78-35539-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
4