COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 04.12.1996 
COM(96)629 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) 

EXPLANATORY MEMORANDUM 
Under the 1996/97 price proposals the Commission proposed that the Council amend 
Regulation (EEC) No 1308/70 on the common organization of the market in flax and 
hemp. That proposal provides for the application, from the 1997/98 marketing year, of a 
maximum guaranteed area for fibre flax. 
The said proposal also provides for the introduction of a cut in the aid where harvesting 
is done other than by the traditional method of pulling the whole plant, thereby reducing 
production costs. The reduction is to take the place of the present system of coefficients 
based on the average seed yield for an area with a reduction in the aid for non-deseeded 
retted flax. 
The current system has one notable weakness: the reason for the relatively high rate of 
aid was the constraint of the growing methods (dense seeding, harvesting by pulling the 
whole plant using special equipment, retting involving a risk of loss), which were made 
necessary by the quality requirements of the primary processing industry. Now, 
however, growers, on increasingly large areas of land, are adopting simplified growing 
methods and producing flax in order to receive the Community aid, while having no real 
outlet for their production. 
To put an end to these practices, which have led to a substantial increase in the areas 
sown with fibre flax, appropriate measures need to be taken, by amending the Regulation 
laying down the general rules for granting aid. 
z 
Measures proposed 
5. It must be ensured that the aid cannot be paid for areas which have not been fully 
utilised. The key is to establish compulsory contracts between growers and processors 
approved by the Member State, together with a processing commitment. Primary 
processors will be approved by the competent authorities of the Member States, not by 
the Commission, having regard to the principle of subsidiarity. Contracts are already 
provided for under the current legislation, but they are not compulsory since, in the 
absence of a contract, 100% of the aid is paid to the grower. 
Given that in some cases the grower processes the flax straw himself or has the 
processing done on his behalf, and cannot tlierefore conclude a contract of this kind with 
a processor, provision should also be made for a processing commitment and for 
approval in such cases. 
7. In the case of "growing contracts" whereby the grower is someone who has entered into 
a special contract with the owner or user of the land, there is a similar need for a 
processing commitment and approval. 
The Member States should also be obliged to check not only the accuracy of area 
declarations and aid applications (and on this point the use of certain elements of the 
integrated administration and control system is appropriate) but also the proper execution 
of contracts and processing commitments, as well as fulfilment of conditions of 
approval. 
To prevent abuse, to qualify for aid, land must have undergone normal cultivation, and 
the Commission should be able to lay down provisions on the matter. 
10. Since it is likely that contracts will already have been concluded by some growers before 
this proposal is adopted, the Commission must be able to adopt transitional provisions 
for the first marketing year of application. 
11. Should the proposal not be adopted before sowing starts (mid-March), its entry into force 
would have to be postponed until the following marketing year. 
'3 
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 
1 2 
organization of the market in flax and hemp , as last amended by Regulation (EC) No , and 
in particular Article 4(4) thereof, 
Having regard to the proposal from the Commission, 
Whereas the first subparagraph of Article 3(2) of Regulation (EEC) No 619/71 laying down 
general rules for granting aid for flax and hemp, as last amended by Regulation (EC) No 
1989/93 , lays down that three quarters of the aid for flax is to be granted to any natural or legal 
person who has concluded with the grower, before a date to be detennined, a contract 
transferring ownership of the flax straw; whereas to ensure that the flax is actually processed, 
provision should be made for payment of the aid to the primary processor to be subject to an 
explicit commitment on his part to undertake processing and also to an approval procedure; 
Whereas the second subparagraph of Article 3(2) of the said Regulation lays down that growers 
may under certain conditions qualify for all the aid; whereas in those cases a processing 
obligation and a system of approval of primary processors should be established; 
1 OJNoL 146,4.7.1970, p. 1. 
2 OJNoL 
3 OJNoL72,26.3.1971,p. 2. 
4 OJNoL 182,24.7.1993,p. 6. 
<f 
Whereas the checks referred to in Article 5 of the said Regulation should also cover fulfilment of 
the processing obligation and the conditions of approval; whereas the effectiveness of those 
checks can be increased by using certain elements of the integrated administration and control 
system and whereas, therefore, provision should be made for that possibility; 
Whereas Article 6 of the said Regulation lays down that the amount of the aid is to be calculated 
in relation to the area sown and harvested; whereas, to prevent abuse, the said area must have 
undergone normal cultivation and whereas the Commission should be able to lay down criteria 
on the matter; 
Whereas the measures provided for in this Regulation must be properly implemented; whereas 
transitional measures may therefore be required to facilitate the introduction of the new 
arrangements, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 619/71 is hereby amended as follows: 
1. Article 3(2) is replaced by the following: 
"2. For the flax grown mainly for the production of fibre, one quarter of the aid shall be 
granted to the grower and three quarters to the primary processor approved by the 
competent authority of the Member State on whose territory his establishment is 
situated, who has concluded with the grower, before a date to be determined, a contract 
transferring ownership of the flax straw and who undertakes to process it. 
However, the entire amount of the aid shall be granted to the grower where: 
y 
a) the grower within the meaning of Article 3a(a) undertakes to process the flax 
straw and is approved for that purpose by the competent authority, or 
b) the grower within the meaning of Article 3a(a) undertakes to have the flax straw 
processed on his behalf by an approved primary processor, or 
c) the grower within the meaning of Article 3a(b) undertakes to process the flax 
straw and is approved for that purpose by the competent authority, or 
d) the grower within the meaning of Article 3a(b) undertakes to have the flax straw 
processed on his behalf by an approved primary processor." 
2. The following shall be added to Article 4(2): 
"and shall establish a system of approval of primary processors and, where appropriate, 
of growers who undertake processing." 
3. Article 5 is replaced by the following and is renumbered paragraph 1 : 
"1.Member States shall verify the accuracy of the declarations of areas sown and 
harvested and applications for aid submitted by the producers and also the execution of 
contracts and fulfilment of processing obligations and of conditions of approval by 
means of spot checks." 
4. The following paragraph 2 is added to Article 5: 
2. Detailed rules for the application of checks shall be adopted in accordance with 
the procedure laid down in Article 12 of Regulation (EEC) No 1308/70, such 
measures being able to provide for the use of certain elements of the integrated 
administration and control system." 
5. The following is added to Article 6: 
"on which normal cultivation work has been carried out. 
The Commission may, in accordance with the procedure laid down in Article 12 of 
Regulation (EEC) No 1308/70, lay down criteria regarding normal cultivation work, in 
particular by setting a minimum yield to be respected." 
6. The following Article 6a is added: 
"Article 6a 
Should transitional measures be required to facilitate the implementation of the 
adjustments to the arrangements laid down in Regulation (EC) No with effect from 
the 1997/98 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 1997/98 marketing year at the latest." 
Arjticje_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 1997/98 marketing year. However, point 6 shall apply from the entry into 
force of this Regulation. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at..., For the Council 
} 
FINANCIAL STATEMENT 
BUDGET HEADING: Bl-1400 APPROPRIATIONS: ECU 91 million 
TITLE: 
Proposal for a Council Regulation amending Regulation (EEC) No 619/71 laying down general rules for granting aid for flax 
and hemp. 
3. LEGAL BASIS: Article 43 of the Treaty 
AIMS OF MEASURE: 
To amend the rules governing the granting of aid for flax by introducing compulsory contracts between growers and processors 
approved by the Member State. 
FINANCIAL IMPLICATIONS PERIOD OF 
12 MONTHS 
million ecu CURRENT 
FINANCIAL YEAR 
(96) 
million ecu FOLLOWING 
FINANCIAL YEAR 
(97) 
million ecu 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
-NATIONAL 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE 1998 1999 2000 2001 
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. IS A SUPPLEMENTARY BUDGET NECESSARY? YES/NO 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO 
OBSERVATIONS: 
The proposed Regulation has no financial impact, it might even enable payment of aid for areas not fully utilised 
to be avoided. 
ISSN 0254-1475 
COM(96) 629 final 
DOCUMENTS 
EN 03 01 
Catalogue number : CB-C0-96-629-EN-C 
ISBN 92-78-12877-5 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
5