Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 2075/92 on the common organization of the market in raw tobacco
Date: 1995-01-05
Institutions: European Commission
Subjects: agricultural guidance, agricultural production, common organisation of markets, product quality, production quota, tobacco

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(94) 555 final 
Brussels, 05.01.1995 

95/0001  (CNS) 

Proposal for a 

COUNCIL REGULATION  (EC) 

amending Regulation  (EEC) No 2075/92 on the common 
organization of the market in raw tobacco 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

It  is  proposed  that  the  Council  adopt  this  proposal  for  a  Regulation 
amending Council Regulation  (EEC) No 2075/92 on the common organization of 
the market in raw tobacco. 

In the light of experience gained during the first years of application of 
the new arrangements for raw tobacco, certain amendments are called for. 

Firstly,  the  Member  states  now  have  accurate  data  of  production  of  all 
producers  for the  three harvests  preceding  the year  of  the  last harvest, 
broken down by variety and quantities produced and deliverd to processors. 
As  from the  1994-95 harvest  it will therefore  be  possible  to  introduce a 
single production quota system. 

Secondly, the Member  states which  so wish  should  be  able to pay  premiums 
directly to the producers. 

Lastly,  there  should  also  be  some  flexibility  in  the  administration  of 
quotas with  the Member States  being  given the right to  set up  a national 
reserve and with producers having the possibility  of carrying over to the 
following harvest, for each category  of varieties, the  surplus  production 
from one harvest corresponding to up to 10% of their quotas. 

The amendments in question will apply as from the 19 9 5 harvest, except for 
the possibility  of paying  premiums  directly  to the  producers, which  will 
apply from the 1994 harvest. 

This proposal has no financial impact on the budget of the European Union. 

3 

Proposal for a 

COUNCIL REGULATION  (EC) No 

/.. 

of 

amending Regulation (EEC) No 2075/92 on the common!organization 
of the market in raw tobacco 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in 

•particular Articles 42 and 43 thereof, 

Having regard to the proposal from the Commission^), 

Having regard to the opinion of the European Parliament^)_t 

Having regard to the opinion of the Economic and Social committee(?), 

Whereas  Council  Regulation  (EEC) No  2075/92  of  30 June  1992  on  the  common 

organization  of  the  market  in  raw  tobacco(^)  lays  down  measures  to 

orientate  and  limit  production;  whereas,  in  view  of  experience  gained, 

provision  should  be  made  for  several  amendments  with  a  view  to  better 

production orientation; 

Whereas  the  whole  premium  must  ultimately  be  paid  to  the  growers  or 

producer  groups;  whereas  it  seems  possible  that  some  Member  States  can 

henceforward  pay  the  premiums  directly  to  the  growers  or  recognized 

producer groups; 

(1) OJ Mo C 
(2) OJ No C 
(3) OJ No C 
(4) OJ No L 215, 30.7.1992, p. 70. 

Whereas  the quantities  produced  and  qualifying  for the  premium  must be 

determined in respect of each producer or recognized producer group; whereas 

the Member  States  should  divide  up the quotas  among the growers  concerned, 

subject to the guarantee  thresholds  fixed, the aim of the community  rules 

laid  down  for the purpose  being to ensure  fair  allocation  on the basis of 

quantities  delivered  in the past, unusually  high or low production  figures 

being disregarded; 

Whereas tobacco produced by growers or recognized  producer  groups in excess 

of their quotas cannot  grant entitlement to the premium; whereas, however, 

account  should be taken of the possibility of unintentional  overproduction; 

whereas  the  parties  concerned  should  be  permitted  to  carry  over  those 

surpluses,  within  certain  limits, to the  following  harvest,  provided the 

combined quotas for the two harvests are not exceeded; 

Whereas the Member States able to do so should be permitted to pay premiums 

directly to growers as from the 1994 harvest, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation  (EEC) No 2075/92 is hereby amended as follows: 

1.  Article 6 is replaced by the following: 

"Article 

6 

1. 

Cultivation 

contracts 

shall 

include: 

an  undertaking 

by 

the 

first 

processor 

to  pay 

the  grower 

the 

purchase  price  and,  where  the  competent  body  of 

the  Member  state 

does  not  pay 

the  premium to  the  grower  directly, 

a  sum  equal 

to 

the 

premium 

for 

the 

quantity 

under 

contract 

and 

actually 

delivered, 

an  undertaking 

by 

the  grower 

to  deliver 

raw  tobacco  meeting 

the 

quality 

requirements 

laid  down  in 

the  contract 

to 

the  premises 

of 

the 

first 

processor. 

2. 

The  competent  body  of 

the  Member  State 

shall 

pay 

the  premium 

to 

the  grower  or  shall 

reimburse 

the  premium 

to 

the 

first 

processor 

where 

the 

latter 

has  paid 

the  producer  a  sum  equal 

to 

the 

premium,  against 

presentation 

of  proof  of  delivery 

of 

the 

tobacco 

by  the  grower  and  payment  of 

the  sum  referred 

to  in  paragraph  J." 

2. 

In Article 7: 

the fourth indent is replaced by the following: 

"- 

the 

possible 

obligation 

on 

first 

processors 

or  growers 

to 

provide 

a  security 

and  the  conditions 

governing 

the 

lodging 

and 

release 

of 

securities 

in 

the 

event 

of  an  application 

for 

an 

advance,". 

3.  Article 9 is replaced by the following: 

"Article  9 

1. 

To  ensure 

observance 

of 

the  guarantee 

thresholds, 

a  system 

of 

production 

quotas 

shall 

apply 

for 

the 

1995, 

1996  and  1997 

harvests. 

2. 

In  accordance  with 

the  procedure 

laid  down  in  Article 

43(2)  of 

the  Treaty, 

the  Council 

shall 

allocate 

the  quantities 

available 

in 

each  group  of  varieties 

for  each  harvest 

among- the 

producer 

Member 

States. 

e? 

3. 

On  the  basis  of 

the  quantities 

allocated 

pursuant 

to  paragraph  2 

and  without 

prejudice 

to 

the  application 

of  paragraph  4, 

the 

Member  States 

shall  divide,  up  production 

quotas  among  the  growers 

or 

recognized 

producer 

groups 

in  proportion 

to 

the 

average 

quantities 

delivered 

for  processing 

in 

the 

three 

years 

preceding 

the  year  of 

the 

last  harvest, 

broken  down  by  group  of 

varieties. 

However,  production 

in  1992  and  deliveries 

from 

that 

harvest 

shall 

not  be 

taken 

into 

account. 

The  procedure 

for 

allocating 

production 

quotas 

for 

subsequent 

harvests 

shall 

not  be 

affected 

by  this 

distribution. 

4. 

when  quotas  are  divided 

up  as  provided 

for 

in  paragraph 

3,  no 

account 

shall 

be 

taken 

in  particular, 

when  calculating 

the 

reference 

production, 

of  quantities 

of  raw 

tobacco  produced 

in 

excess 

of 

the  maximum  guaranteed 

quantities 

applicable 

pursuant 

to  Regulation 

(EEC)  No  727/70. 

Where  appropriate, 

only  production  within 

the  quotas  allocated 

during 

the  years 

taken 

into  consideration 

shall  be  taken 

into 

account. 

Article  10 is replaced by the following: 

"Article 

10 

1. 

Without 

prejudice 

to  paragraph 

2,  no  premium  may  be  paid 

in 

respect 

of  quantities 

produced 

in  excess  of 

the  quota 

allocated 

to 

the 

grower. 

2. 

However,  growers  may  deliver 

surplus  production 

corresponding 

to 

up 

to  10%  of 

their 

quotas 

for 

each  group  of  varieties, 

that 

surplus 

being  eligible 

for 

the  premium  granted 

in  respect 

of 

the 

following 

harvest 

on  condition 

that, 

during 

the 

latter 

harvest, 

the  party 

concerned 

reduces 

his  production 

by  a 

corresponding 

amount 

so 

that 

the 

combined  quotas 

for 

the 

two  harvests 

in 

question 

are  not 

exceeded." 

5.  Article 11 is replaced by the following: 

"Article 

11 

Detailed 

rules 

for 

the  application 

of 

this  Title 

shall 

be  adopted 

in 

accordance  with 

the  procedure 

laid 

down 

in  Article 

23.  They 

shall 

include 

in  particular 

the  adjustments 

to 

the  method 

for  dividing 

up 

the  quotas  provided 

for  Article 

9(4)." 

Article  2 

This Regulation shall enter into force on the day following  its publication 

in the  Official 

Journal  of 

the  European 

Communities. 

It shall  apply  from the 1995 harvest, except for Article  1(1), which  shall 

apply from the 1994 harvest. 

This Regulation shall be binding  in its entirety  and directly applicable in 

all Member states. 

Done at Brussels, 

For the Council 

y 
3MENT 

1. BUDGET HEADING: Expenditure Bl - 171 

APPROPRIATIONS: ECU 1.025 million 

2. TITLE: Proposal for a Council Regulation amending Regulation  (EEC) No 2075/92 on the common organization 

of the market in raw tobacco 

3. LEGAL BASIS: Articles 42 and 43 of the Treaty 

4. AIMS OF PROJECT: To improve product quality through a modification of the premiums with the necessary 

adjustments to Council Regulation  (EEC) No 2075/92 

5. FINANCIAL IMPLICATIONS 

PERIOD OF 12 MONTHS 

(ECU million] 

CURRENT FINANCIAL 
YEAR  (1995) 
(ECU million) 

FOLLOWING FINANCIAL 
YEAR  (1996) 
(ECU million) 

5.0. EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(INTERVENTIONS) 

•5.1. 

5.0.1. ESTIMATED EXPENDITURE 

5.2. METHOD OF CALCULATION: 

1997 

1998 

1999 

2000 

6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES 

YES 

NO 

COMMENTS: 
The measure has no budgetary consequences, assuming that all production is carried out by producer associations, 

» 

The possibility of transferring  10% of the quota to the following harvest reduces the risk of any underuse of 
the quota and could reduce the potential risk of an underuse of appropriations, since the proposal encourages 
the full use of the quota. It is, however, impossible to place a figure on this. 

3 

ISSN 0254-1475 

COM (94) 555 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-94-581-EN-C 

ISBN 92-77-83097-2 

Office for Official Publications of the European Communities 

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