Commission Regulation (EC) No 1664/98 of 28 July 1998 amending Regulation (EEC) No 1201/89 laying down rules implementing the system of aid for cotton
Date: 1998-07-28
Institutions: European Commission
Subjects: aid system, cotton, production aid

29. 7. 98

EN

Official Journal of the European Communities

L 211/9

COMMISSION REGULATION (EC) No 1664/98

of 28 July 1998

amending Regulation (EEC) No 1201/89 laying down rules implementing the
system of aid for cotton

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

HAS ADOPTED THIS REGULATION:

Having regard to the Treaty establishing the European
Community,

Article 1

Having regard to the Act of Accession of Greece, and in
particular Protocol 4 on cotton, as last amended by
Council Regulation (EC) No 1553/95 (1),

Regulation (EEC) No 1201/89 is hereby amended as
follows:

1. Article 5(2) is replaced by the following:

Having regard to Council Regulation (EEC) No 1964/87
of 2 July 1987 adjusting the system of aid for cotton
introduced by Protocol 4 annexed to the Act of Accession
of Greece (2), as last amended by Regulation (EC) No
1553/95, and in particular Article 2(4) thereof,

Having regard to Council Regulation (EC) No 1554/95 of
29 June 1995 laying down the general rules for the
system of aid for cotton and repealing Regulation (EEC)
No 2169/81 (3), as last amended by Regulation (EC) No
1419/98 (4), and in particular Article 11(1) thereof,

Whereas, as a result of adjustments to the system of aid
for cotton introduced by Regulation (EC) No 1419/98, the
corresponding amendments must be made to Commis-
sion Regulation (EEC) No 1201/89 of 3 May 1989 laying
down rules implementing the system of aid for cotton (5),
as last amended by Regulation (EC) No 1740/97 (6);

Whereas Regulation (EC) No 1419/98 introduces a
revising production estimates before 1
procedure for
December so that an advance payment closer to the final
aid amount can be made; whereas Regulation (EEC) No
1201/89 should accordingly be amended with a view to
applying this mechanism;

Whereas the adjustments to the system of aid provide for
the possibility of cotton being ginned on behalf of
producer groups; whereas the rules for administering the
aid and the conditions that the group must fulfil so the
aid can be passed on should be specified for such cases;

Whereas the measures provided for in this Regulation are
in accordance with the opinion of
the Management
Committee for Flax and Hemp,

(1) OJ L 148, 30. 6. 1995, p. 45.
(2) OJ L 184, 3. 7. 1987, p. 14.
(3) OJ L 148, 30. 6. 1995, p. 48.
(4) OJ L 190, 4. 7. 1998, p. 4.
(5) OJ L 123, 4. 5. 1989, p. 23.
(6) OJ L 244, 6. 9. 1997, p. 1.

‘2. On the same date as the world market price for
unginned cotton as referred to in Article 1(1) is fixed
and for the same period, the Commission shall fix:

(cid:190) from 1 September, the advance referred to in the
first subparagraph of Article 5(3a) of Council Regu-
lation (EC) No 1554/95 (*),

(cid:190) from 16 December, the advance referred to in the
second subparagraph of Article 5(3a) of Regulation
(EC) No 1554/95.

On application by the parties concerned, advances
paid before 16 December shall be increased to take
account of the amount referred to in the second indent
of the first subparagraph, except where the difference
between the two amounts is less than ECU 1/100 kg.
Such applications shall be accompanied by proof that
an additional security designed to ensure that Article
9(8) is complied with has been lodged.

(*) OJ L 148, 30. 6. 1995, p. 48.';

2. Article 10(3) is replaced by the following:

‘3.
The following provisions shall apply where the
cotton is to be ginned on behalf of an individual
producer or a producer group as referred to in Article
7(2) of Regulation (EC) No 1554/95.

(a) No later than 10 days before the date of

first
placing in supervised storage, the ginning under-
taking concerned shall submit a declaration to the
agency referred to in Article 7(1) to the effect that
the cotton is to be ginned on behalf of an indi-
vidual producer or, as the case may be, of a
producer group.

In addition, such declarations, to be signed by both
parties concerned, shall specify:

(i) the way the ginning undertaking is to admin-
ister applications
supervised storage as
for
provided for in Article 9 and aid applications
as provided for in Article 7;

L 211/10

EN

Official Journal of the European Communities

29. 7. 98

(ii) the way individual producers or producer
groups are to prove they have fulfilled their
obligations regarding entitlement to the aid to
the ginning undertaking;

(iii) an undertaking that the aid will be passed on
to the individual producer or the producer
group.

(b) Where ginning is carried out on behalf of a
the undertaking
fulfilment of
producer group,
provided for in point (a)(iii) shall imply provision
by the group of proof of the undertaking to pay
each member the minimum price, adjusted in
accordance with paragraph 2(g). To that end, the
group shall in particular supply the price at which
the producers deliver
the unginned cotton, as
determined in accordance with paragraph 2(f).

(c) Paragraph 2(h)

shall apply mutatis mutandis
where the cotton is ginned on behalf of an indi-
vidual producer or a producer group.

(d) Without prejudice to Articles 7 and 9, applications
for supervised storage and aid applications shall
include a reference to the declaration provided for
in (a).

(e) At the request of the individual producer or the
producer group concerned, the documents referred
to in Articles 7 and 9 concerning applications for
supervised storage and aid applications may be sent
to them by the competent agency.';

3. in Article 12(1)(e) and in the introductory part of
Article 13, ‘Article 7(2)' is replaced by ‘Article 7(1) and
(2)';

4. the second subparagraph of Article 12(3) is replaced by

the following:

‘Prior authorisation may be granted in particular for
quantities ginned on behalf of an individual producer
or of a producer group.';

5. in Article 14(1)(e), ‘Article 5(3)' is replaced by ‘the first

subparagraph of Article 5(3a)';

6. the following point is added to Article 14(1):

‘(f) by 25 November at the latest each year, the most
recent figures on quantities placed in supervised
storage and the revised production estimate for
unginned cotton as referred to in the second
subparagraph of Article 5(3a) of Regulation (EC)
No 1554/95.';

7. in the second subparagraph of Article 14(1), ‘the third
indent of (d)' is replaced by ‘the second indent of (d)'.

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 1 September 1998.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 28 July 1998.

For the Commission

Franz FISCHLER

Member of the Commission