Proposal for a Council Regulation (EC) amending Regulation (EEC) No 619/71 laying down general rules for granting aid for flax and hemp
Date: 1998-05-06
Institutions: European Commission
Subjects: agro-industry, economic support, flax, hemp, support policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

* * * ** 
-A- 

T* 

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) 

BUDGET HEADING: B1-1402 

Date: 
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 

5.0 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 

-  NATIONAL AUTHORITIES 
-  OTHER 

5.1. 

REVENUE 
-  OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1 
5.1.1 
5.2 

ESTIMATED  EXPENDITURE 
ESTIMATED REVENUE 
METHOD OF CALCULATION: 

PERIOD OF 12 
MONTHS 

(ECU million) 

0) 

CURRENT 
FINANCIAL 
YEAR 
(98) 
(ECU million) 

FOLLOWING 
FINANCIAL 
YEAR 
(99) 
(ECU million) 

(1) 

2000 
(1) 

2001 
(1) 

2002 
(1) 

2003 
(1) 

6.0 

6.1 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS  ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? 
CAN THE PROJECT BE FINANCED BY TRANSFER  BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? 
WILL A SUPPLEMENTARY  BUDGET BE NECESSARY? 
WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

6.2 
6.3 
OBSERVATIONS: 

YES/NO 

VUK/NJQ 

VfiS/NO 
YES/NO 

(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 

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4