Commission Regulation (EC) No 2848/98 of 22 December 1998 laying down detailed rules for the application of Council Regulation (EEC) No 2075/92 as regards the premium scheme, production quotas and the specific aid to be granted to producer groups in the raw tobacco sector
Date: 1998-12-22
Institutions: European Commission
Subjects: common organisation of markets, producer organisation, production aid, production quota, restriction on competition, tobacco

31. 12. 98

EN

Official Journal of the European Communities

L 358/17

COMMISSION REGULATION (EC) No 2848/98

of 22 December 1998

laying down detailed rules for the application of Council Regulation (EEC)
No 2075/92 as regards the premium scheme, production quotas and the specific
aid to be granted to producer groups in the raw tobacco sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EEC) No 2075/92
of 30 June 1992 on the common organisation of the
market in raw tobacco (1), as last amended by Regulation
(EC) No 1636/98 (2), and in particular Articles 7, 9(5), 11,
14a and 17(5) and 27 thereof,

Whereas Regulation (EC) No 1636/98 introduced a
fundamental reform of the raw tobacco sector to improve
its economic position; whereas this reform entailed a
variation of Community aid in line with product quality,
greater flexibility and simplicity in the quota system,
stricter control procedures and improved observance of
public health and environmental protection requirements;

Whereas, detailed implementing rules must be adopted
following this reform; whereas, in order to simplify agri-
cultural legislation, Commission Regulations (EEC) No
3478/92 (3), as last amended by Regulation (EC) No 1578/
98 (4), (EEC) No 84/93 (5), as last amended by Regulation
(EC) No 621/96 (6) and (EC) No 1066/95 (7), as
last
amended by Regulation (EC) No 1578/98, should be
replaced by a single Regulation;

Whereas, with regard to the conditions for recognition of
producer groups, the minimum size should be fixed as a
percentage, representing the relationship between the
quantities in the quota statements and the Member State’s
guarantee threshold; whereas, for the purpose of recog-
nising producer groups, Member States should be able to
increase the percentage of quota statements in their ter-
ritory and lay down minimum recognition conditions
concerning the number of producers;

Whereas the requirements for the recognition of producer
groups should be laid down in order that they may qualify
for that specific aid;

(1) OJ L 215, 30. 7. 1992, p. 70.
(2) OJ L 210, 20. 7. 1998, p. 23.
(3) OJ L 351, 2. 12. 1992, p. 17.
(4) OJ L 206, 23. 7. 1998, p. 19.
(5) OJ L 12, 20. 1. 1993, p. 5.
(6) OJ L 89, 10. 4. 1996, p. 8.
(7) OJ L 108, 13. 5. 1995, p. 5.

Whereas, in order to respect market structures, it should
be laid down that a producer may be a member of one
group only; whereas, to facilitate the transition, producers
who are members of more than one group should be
given the opportunity of withdrawing from memberships
by 31 January 1999;

in line with the intentions of Article 12 of
Whereas,
Regulation (EEC) No 2075/92 and in particular
to
prevent distortion of competition and monitoring diffi-
culties, producer groups
should be debarred from
engaging in first processing;

Whereas to ensure uniformity of administrative proced-
ures, rules should be laid down on applications for and
the grant
recognition and the
and withdrawal of
monitoring of the recognition requirements;

Whereas a mechanism should be introduced for the
approval of processing undertakings authorised to sign
cultivation contracts, such approval should be withdrawn
where the rules are not observed and the special condi-
tions governing the processing of tobacco in a Member
State should be laid down;

Whereas the recognised production areas should be fixed
for each group of varieties of tobacco on the basis of the
traditional production areas for the purposes of granting
the premium; whereas, in view of the relatively small area
of French communes, those areas should be based on
cantons
in France; whereas
Member States should be permitted to limit production
areas in order, in particular, to improve quality;

than communes

rather

Whereas the main points which must be included in
cultivation contracts must be specified; whereas contracts
must be limited to one harvest so that account can be
taken of future changes in the market; whereas suffi-
ciently early final dates for the conclusion and registration
of contracts should be fixed to enable them to guarantee,
from the very beginning of the year of harvest, both stable
outlets to producers for the coming harvest and regular
supplies to processors;

L 358/18

EN

Official Journal of the European Communities

31. 12. 98

Whereas, when a cultivation contract is concluded with a
producer group, the essential details of each individual
producer must also be notified to permit effective
management and control;

Whereas an optional auction system for cultivation
contracts should be established for use by the Member
States so that contract prices can reflect market condi-
tions;

Whereas raw tobacco eligible for the premium must be of
sound and fair merchantable quality and free of certain
characteristics which prevent normal marketing;

Whereas the premium comprises a fixed part, a variable
part and a specific aid and the relation between the
different parts of the premium may vary according to
variety and producer Member State; whereas the fixed part
must be paid for the quantity of leaf tobacco delivered by
producers to first processors irrespective of variations in
quality, provided that the minimum quality requirements
are fulfilled; whereas, to encourage improvement of the
quality and value of Community production, the variable
part of the premium should be paid by the producer
group to its members after comparing the market prices
obtained for each batch delivered by individual members
of the group; whereas, to ensure that this system is effect-
ive, a variable premium equal to zero should be attributed
to batches sold for a price between the minimum price
and the minimum price plus 50 % for each group of
varieties;

Whereas the premium should be adjusted where the
moisture content of tobacco delivered differs by up to
4 % from the moisture content fixed for each group of
varieties on the basis of reasonable quality requirements
and in order to simplify checks on delivery, sampling
levels and frequency together with the method for calcu-
lating the adjusted weight for determining the moisture
content should be fixed;

Whereas the period of delivery of the tobacco to proces-
sors should be limited (but vary as necessary by group of
varieties) in order to prevent fraudulent carry-over from
one harvest to another;

Whereas
the conditions governing the payment of
premiums and purchase prices should be laid down in
order to prevent fraud; whereas, however, it is the re-
sponsibility of the Member States to determine further
management
to
Article 17(1) of Regulation (EEC) No 2075/92;

arrangements pursuant

and control

Whereas premiums may be paid only after a check on
deliveries,
the operations concerned
have actually been carried out and that the quota arrange-
ments have been complied with; whereas, however, the

to guarantee that

to producers of 50 % of

payment of advances
the
premium due should be provided for on condition that an
adequate security is lodged; whereas, to make it possible
for advances to be paid to groups which cannot bear the
costs of lodging securities, it should be permitted to use
the specific aid to cover those costs;

for
Whereas Regulation (EEC) No 2075/92 provides
Member States to pay the premium direct to producers
and that producers may carry over their surplus produc-
tion to the next harvest, up to a maximum of 10 % of the
quota allocated to them;

Whereas Article 9 of Regulation (EEC) No 2075/92
introduces a quota system for the different groups of
varieties of tobacco; whereas the time limits for allocation
of quotas must be fixed early enough to enable producers
to take the greatest possible account
thereof when
producing tobacco;

9(3)

Whereas under Article
of Regulation (EEC)
No 2075/92, production quotas are to be assigned to
producers
in proportion to the average quantity of
tobacco delivered for processing over the three years
preceding that of the most recent harvest and the quotas
thus assigned are to be valid for three years; whereas
allocation of a certain quantity, giving entitlement to the
premium for a given harvest, does not imply acquisition
of any right in subsequent years;

Whereas national quota reserves should be set up in each
Member State in order to increase the flexibility of the
quota allocation arrangements, to encourage producers to
switch to other crops and to facilitate the restructuring of
agricultural holdings in the Member States; whereas these
national reserves should be made up of quotas released by
a linear reduction in all the quotas allocated to producers
and by Member States being able to apply a linear reduc-
tion to the quantities entered on production quota state-
ments that have been transferred permanently, together
with quotas that have not been covered by cultivation
including quantities entered on
contracts concluded,
production quota statements that have been transferred
temporarily;

Whereas a procedure should be laid down for calculating
the quota for producers who have started growing tobacco
or who have increased their quota;

Whereas provisions are needed to take account of cases
where tobacco is processed in Member States other than
the Member State in which it has been produced; whereas
in such cases the quantity of raw tobacco in question
should be taken over in the Member State where it was
produced, for the benefit of producers in that Member
State;

31. 12. 98

EN

Official Journal of the European Communities

L 358/19

Whereas production quota statements should be issued to
producers on the basis of their tobacco deliveries from the
harvests in the reference years; whereas Member States
must be able to increase the quantities to be taken into
account for certain producers operating in special circum-
stances;

processor, payments to producer groups and payment of
the purchase price to producers by first processors must
be made solely by bank or postal transfer to a single
account linked to payment of the individual producers,
and the production quota allocated to each producer must
be made public;

Whereas the threshold quantities applicable for a harvest
may exceed those fixed for the previous harvest for certain
groups of varieties while falling short of those fixed for
others; whereas
should be
distributed among the parties concerned on the basis of
objective criteria, taking account of certain priorities to be
determined by the Member States in the light of their
situation;

the additional quantities

Whereas the transfer of production quotas within a single
group of varieties, on either an annual or a permanent
basis, should be permitted and a right of priority should
be established between producers
to encourage the
transfer of quotas between producers who are members of
the same producer group; whereas account should not be
taken when calculating the quota of each producer of
quantities delivered as part of an annual transfer;

Whereas account should be taken of
that a
production unit can be jointly exploited by members of
one family, particularly with regard to minimum quant-
ities per production quota statement and fraud preven-
tion;

the fact

Whereas voluntary exchanges of production quotas
between producers can facilitate rationalisation of produc-
tion;

Whereas provision should be made for any disputes to be
resolved through joint committees;

Whereas a quota buy-back scheme should be set up with
a corresponding reduction of the guarantee thresholds in
order to facilitate the voluntary departure from the sector
of individual producers; whereas the amounts to which
producers whose quotas are bought back will be entitled
should be fixed, without prejudice to future amendments;
whereas, in order to maintain production as far as possible
in the same production sector, a right of priority should
be established between producers for the purchase of
quotas offered under the buy-back scheme;

Whereas Article 4a(5) of Regulation (EEC) No 2075/92
provides for specific aid not exceeding 2 % of the total
premium to be paid to producer groups and that
maximum percentage should be maintained in order to
ensure that producer groups correctly carry out the tasks
entrusted to them, particularly the measures to improve
respect for the environment;

Whereas, pursuant to Article 17(1) of Regulation (EEC)
No 2075/92, Member States must decide on the measures
needed to ensure compliance with the Community provi-
sions on raw tobacco; whereas, however, the control meas-
ures must satisfy certain requirements to ensure that their
application is broadly uniform in all Member States, based
on the integrated administration and control system
provided for in Council Regulation (EEC) No 3508/92 of
27 November 1992 establishing an integrated administra-
tion and control system for certain Community aid
schemes (1), as last amended by Regulation (EC) No 820/
97 (2), and Commission Regulation (EEC) No 3887/92 of
23 December 1992 laying down detailed rules
for
applying the integrated administration and control system
for certain Community aid schemes (3), as last amended
by Regulation (EC) No 1078/98 (4);

Whereas in several Member States checks are carried out
at the place to which tobacco is delivered rather than that
where it is processed; whereas such checks are considered
to be inadequate; whereas the places to which tobacco
must be delivered and the checks to be carried out should
be specified;

Whereas compliance with the provisions on Community
aid must be effectively monitored; whereas,
in this
connection, detailed criteria and technical rules should be
laid down for carrying out administrative and on-the-spot
checks; whereas, in the light of the experience gained in
carrying out on-the-spot checks, the minimum inspection
rates should be determined using risk analysis and the
factors to be taken into consideration should be specified;

the grant of

Whereas, in accordance with points (a) and (c) of Article 5
of Regulation (EEC) No 2075/92,
the
premium is subject to the condition that the leaf tobacco
comes from a specified production area and is delivered
on the basis of a cultivation contract; whereas these condi-
tions may be easily circumvented if there is no check to
verify that the area declared on the contract has actually
been cultivated with the variety indicated; whereas a
minimum number of checks by the Member States on
cultivated areas and the consequences when irregularities
are discovered both need to be established; whereas, while
complying with the principle of proportionality, those
consequences must be sufficiently dissuasive to prevent
false declarations;

Whereas, for the purposes of sound management, trans-
parency and verification, producers who are not members
of a producer group must deliver all tobacco of a given
to a single
group of varieties from the same harvest

(1) OJ L 355, 5. 12. 1992, p. 1.
(2) OJ L 117, 7. 5. 1997, p. 1.
(3) OJ L 391, 31. 12. 1992, p. 36.
(4) OJ L 212, 30. 7. 1998, p. 23.

L 358/20

EN

Official Journal of the European Communities

31. 12. 98

Whereas, with a view to the prevention of fraud, the leaf
tobacco must be placed under supervision the moment
the producer delivers it to the first-processing under-
taking; whereas the tobacco must remain under supervi-
sion until processing and market preparation have taken
place; whereas it
is also necessary to check any leaf
tobacco imported from third countries that undergoes
first processing and market preparation in an undertaking
also processing leaf tobacco of Community origin;

Whereas the data and documents of processors and
producers must be accessible in a usable form for the
checks to be carried out;

Whereas the consequences of any irregularities found
should be determined; whereas such consequences must
be sufficiently deterrent to prevent any illegal use of
Community aid, while complying with the principle of
proportionality;

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

HAS ADOPTED THIS REGULATION:

TITLE I

Definitions

Article 1

For the purposes of this Regulation:

— ‘delivery' means any operation taking place on a given
day which involves a producer handing over raw
tobacco to a processing undertaking under a cultiva-
tion contract,

— ‘producer group' means a producer group recognised

in accordance with Article 4,

— ‘temporary transfer' means the transfer of the quant-
ities entered on production quota statements for a
maximum period of one year which may not be
renewed during the three-year quota allocation period,
— ‘permanent transfer' means the transfer of the quant-
ities entered on production quota statements for a
period of more than one year during the three-year
quota allocation period,

— ‘first purchaser' means the undertaking responsible for
first processing that first signs the cultivation contract,
— ‘batch' means part or all of the tobacco of which a
delivery has been made by a producer, divided to form
one or more distinct parts by quality grade, whether in
fact handed over separately or not, having a well-
defined weight and moisture content and numbered
to identify the purchase price paid and the individual
producer,

— ‘control certificate' means the document issued by the
competent control body certifying that the quantity of
tobacco concerned has been taken over by the first
processor, that this quantity has been delivered under
the quota statements allocated to the producers and
that the operations have been carried out in accord-
ance with the rules.

TITLE II

Producer groups

CHAPTER I

R e c o g n i t i o n

Article 2

1. Member States shall recognise producer groups on
application from them.

Producer groups may not carry out first processing of

2.
tobacco.

Tobacco producers may not belong to more than one

3.
group.

Article 3

Producer groups must satisfy the following require-

1.
ments:

(a)

(b)

(c)

they shall be set up on the initiative of
members;

their

they shall be set up with the aim of adapting collect-
ively the production of the producer members to
meet the requirements of the market;

they shall adopt, and shall ensure that their members
apply, common rules for the production and the
placing of their products on the market, in particular
as regards product quality and the use of cultivation
practices, and, where appropriate, shall purchase seed,
fertilisers and other means of production;

(d)

their operation shall be regulated by articles of asso-
ciation restricting their activities exclusively to raw
tobacco. Under the articles of association, producer
members shall be at least obliged:

— to market

the entire production intended for

marketing through the group,

— to comply with the common production rules;

(e)

they must have quota statements relating to a quantity
to or greater than the
expressed in tonnes equal
percentage specified in Annex I of
the guarantee
threshold for the Member State in which the group is
established.

Member States may fix a higher percentage and lay
down minimum conditions regarding the number of
producers;

31. 12. 98

EN

Official Journal of the European Communities

L 358/21

(f)

their articles of association shall contain provisions to
ensure that the members of the group who wish to
withdraw from membership may do so:

— the conclusion by the group in its own name and on
its behalf of cultivation contracts for the whole of the
production of the members of the group,

— after they have been members of the group for a
minimum of one year following its recognition,

— the supply of the whole of the production of the
members of the group, prepared in accordance with
common standards for delivery to the processors.

and

— on condition that they notify the group in writing
by 31 October at the latest of their withdrawal
from the following harvest. These
with effect
provisions
to
apply without prejudice
shall
national laws or regulations designed to protect
in specified cases,
the group or
against any financial consequences which might
result from the withdrawal of a member or to
preclude withdrawal of a member in the course of
the financial year;

its creditors,

(g) both the form in which they are set up and the entire
range of their activities shall preclude any discrim-
ination which runs counter to the operation of the
common market and the attainment of the general
objectives of
in particular, any
discrimination connected with the nationality or
place of establishment:

the Treaty and,

— of producers or groups liable to become members

of groups,

or

— of their economic partners;

(h) they shall have legal personality or sufficient legal
capacity to exercise rights and be subject to obliga-
tions in accordance with national law;

(i)

(j)

(k)

they shall keep accounts enabling the competent
authority to make a full inspection of the use made by
the group of the specific aid;

they shall not hold a dominant position in the
Community unless this is necessary for the pursuit of
the objectives laid down in Article 38 of the Treaty;

their articles of association shall in addition make it
compulsory for their members to comply with the
conditions laid down in subparagraphs (c) and (d) at
the latest from the date:

— on which recognition takes effect

or

— on which they become members if this is later

than the date of recognition.

Article 4

1.
The Member States shall be competent to recognise
producer groups which have a registered headquarters on
their territory.

2.
The Member State concerned shall decide on
applications for recognition within 60 days of the date of
submission of an application on condition that
the
requirements of Article 3 are met.

3.
The Member State shall determine the date on which
recognition takes effect. This may not precede the date on
which the group actually begins to operate.

Article 5

Each producer group shall update the information
1.
relevant to recognition annually before 15 November and
shall notify the Member State of any change made since
the previous period.

Producer groups meeting the conditions for recogni-
2.
tion on 15 November may continue to be recognised in
respect of the following year’s harvest.

Producer groups which no longer meet the condi-
3.
tions for recognition on 15 November may, before the
final date for the conclusion of cultivation contracts
referred to in Article 10(1), apply for recognition in
accordance with Article 4 in order to continue to be
recognised in respect of that year’s harvest.

CHAPTER II

W i t h d r a w a l o f

r e c o g n i t i o n

Article 6

1. Recognition of a producer group shall be withdrawn
by the Member State concerned:

(a)

if the specific aid is used for purposes other than
those laid down in Article 40(2);

(b) if

the conditions

for

recognition are no longer

fulfilled;

2. Marketing through the group within the meaning of
paragraph 1(d) shall cover at least the following opera-
tions:

(c)

if recognition is based on erroneous information;

(d) if the group obtained recognition by improper means;

L 358/22

EN

Official Journal of the European Communities

31. 12. 98

(e)

if the Commission decides that Article 85(1) of the
Treaty applies
to the agreements, decisions and
concerted practices.

(f)

if the provisions of Article 51 are found to be applic-
able.

2. Recognition shall be withdrawn by the Member State
with effect from the date on which the conditions for
recognition are no longer met, without prejudice to
Article 5(2) and (3).

Aid paid after that date shall be recovered, together with
interest from the date of the payment of the aid to the
date of its recovery. The interest rate to be applied shall
be that in force for analogous recovery operations under
national law.

3.
In cases where recognition has been withdrawn
because of serious infringements, the aid to be recovered
shall be increased by 30 %.

In such cases, and in cases where Article 51 has been
applied,
recognition may not be restored within 12
months of the date of withdrawal.

4. After recognition has been withdrawn, the producer
group must reapply for recognition.

TITLE III

First processors

Article 7

1.
The Member State in whose territory the first
processor is based shall be responsible for approving first
processors authorised to sign cultivation contracts.

The Member State concerned shall decide on the
2.
application for approval, in accordance with Article 6(2) of
Regulation (EEC) No 2075/92 and other conditions
which it has itself laid down, within 60 days of the date of
submission of the application and shall fix the date from
which approval takes effect if the application is accepted.
Approval of a first processor may not predate the date of
submission of the application.

3. Approval of a first processor shall be withdrawn by
the Member State with effect from the following harvest
from the date on which one or more of the terms of
approval are no longer met, or in the case provided for in
Article 53.

TITLE IV

Premium scheme

CHAPTER I

P r o d u c t i o n a r e a s

Article 8

Member States may specify more restricted production
areas, especially in the interests of quality. Restricted
production areas may not exceed the area of the adminis-
trative unit or, in France, the canton.

CHAPTER II

C u l t i v a t i o n c o n t r a c t s

Article 9

1. Cultivation contracts as referred to in Article 5(c) of
Regulation (EEC) No 2075/92 shall be concluded
between a first processor, on the one hand, and a
producer group or individual producer who does not
belong to a group, on the other.

2. Cultivation contracts shall be concluded by group of
varieties. They shall commit the first processor to taking
delivery of the quantity of leaf tobacco provided for in the
contract and the individual producer who is not a
member of a group or the producer group to deliver that
quantity to the first processor, to the extent that their
actual production so allows.

3. Cultivation contracts must
following details:

include at

least

the

(a)

the parties to the contract;

(b)

the reference to the quota statement of the producer;

(c)

the group of varieties of
contract
tobacco;

and, where appropriate,

tobacco covered by the
the variety of

(d)

the maximum quantity to be delivered;

(e)

(f)

(g)

the exact location where the tobacco is produced (the
production area as referred to in Article 1, province,
municipality, identification of the parcel under the
integrated control system referred to in Article 43);

the area of the parcel concerned, excluding service
roads and enclosures;

the purchase price according to quality grade,
excluding the premium, any service charges and taxes;

(h) the minimum quality requirements agreed per quality
grade, with a minimum of three grades, and an under-
taking by the grower to deliver to the processor raw
tobacco meeting at least these quality requirements;

For each group of varieties, the production areas referred
to in Article 5(a) of Regulation (EEC) No 2075/92 shall be
as laid down in Annex II hereto.

(i)

a commitment by the first processor to pay the
producer the purchase price according to quality
grade;

31. 12. 98

EN

Official Journal of the European Communities

L 358/23

(j)

the time limit for payment of the purchase price,
which may not exceed 30 days from the date of
delivery;

of the Member State in which processing is to take place
shall immediately send a copy of the registered contract
to the competent body of the producer Member State.

(k) a clause providing for contracts to be auctioned if the
Member State concerned decides to apply Article 12.

If the Member State has decided to pay premiums to
producers through the first processors in accordance with
the second indent of Article 6(4) of Regulation (EEC)
No 2075/92, the cultivation contract must also include
an undertaking by the processor to pay the producer, in
addition to the price, an amount equal to the premium
for the quantity covered by the contract and actually
delivered.

4. Contracts shall be valid for one harvest only.

5. Under Article 10(2) of Regulation (EEC) No 2075/
92, the parties to a cultivation contract may, by means of
a written amendment,
increase the quantities initially
specified in the contract, where the following conditions
are met:

(a)

specifies

the producer’s

the amendment
surplus
production for each group of varieties at the places
and from the harvest covered by the contract, up to a
the quota allocated to the
maximum of 10 % of
producer for that harvest;

(b) the amendment is submitted for registration to the
later than the tenth day
competent authority not
following the date laid down in Article 16(1) of this
Regulation.

The amendment referred to in the first subparagraph shall
be registered by the competent authority once it has been
verified that the producer did not carry over surpluses in
the previous harvest.

Article 10

1. Cultivation contracts shall be concluded, except in
cases of force majeure, by 30 May of the harvest year.

Except

in cases of

2.
cultivation
contracts once concluded must be submitted for registra-
tion to the competent body no later than 10 days after the
deadline laid down for concluding them.

force majeure,

3.
If the period for the conclusion of contracts provided
for in paragraph 1 or for the submission of cultivation
contracts provided for in paragraph 2 is exceeded by a
maximum of 15 days, the premium to be reimbursed
shall be reduced by 20 %.

The competent body shall be that of the Member
4.
State in which processing is
to take place. Where
processing is to take place in a Member State other than
that in which the tobacco was grown, the competent body

that body does not

If
itself carry out checks on the
premium system, it shall send a copy of the registered
contract to the control agency.

Article 11

is concluded between a
Where a cultivation contract
processor and a producer group, it shall be accompanied
by a
the producers
concerned,
respective areas in accordance with
Article 9(3)(e) and (f) and details of their quotas.

list containing the names of

their

Article 12

1.
The Member States shall decide, before 31 January
of the year of harvest, whether to apply a cultivation
contract auction scheme covering all
such contracts
signed in their territory.

2.
The auction scheme for cultivation contracts shall
require a clause to be included in contracts as referred to
in Article 9(1) under which producers may replace the
first purchaser with another first processor not later than
20 days before the date on which delivery of the tobacco
commences.

Such replacement may occur where a first processor that
has declared itself able to fully take over a contract makes
one or more formal offers. The new prices, excluding the
premium, any service charges and taxes, must be at least
10 % higher than the prices indicated in the contract.

3.
Producers who have received formal offers shall
inform the first purchaser by registered letter of the new
prices, excluding the premium, any service charges and
taxes.

4.
First purchasers shall not be replaced in the contract
where they inform the producer within seven days of
receiving the registered letter referred to in paragraph 3
that they accept the new prices arising from the auction
procedure. First buyers who do not accept the new prices
or who fail to respond within the time limit laid down
shall be replaced in the contract by the first processor that
formally offered the highest price to the producer.

5.
Producers shall inform the first purchaser and the
Member State of this replacement before the date on
which delivery of the tobacco is to commence by sending
the latter an updated copy of the original contract coun-
tersigned by the parties concerned.

L 358/24

EN

Official Journal of the European Communities

31. 12. 98

6. Where tobacco produced in a Member State is
processed in another Member State,
the cultivation
contract auction scheme shall apply on the basis of the
provisions adopted by the producer’s Member State.

CHAPTER III

M i n i m u m q u a l i t y r e q u i r e m e n t s

Article 13

Tobacco delivered to processors must be of sound, fair
and merchantable quality and free from any of the char-
acteristics given in Annex III. The contracting parties
may agree on stricter quality requirements.

Article 14

The Member States may provide that disputes concerning
the quality of tobacco delivered to the first processor shall
be submitted to an arbitration body. The Member States
shall lay down the rules governing the membership and
the decision-making procedures of such bodies; the latter
must include one or more representatives of producers
and processors, in equal numbers.

CHAPTER IV

P a y m e n t o f p r e m i u m s a n d a d v a n c e s

Article 15

The detailed rules for breakdown of the premium
1.
referred to in Article 4a(1) of Regulation (EEC) No 2075/
92, the minimum relation between the variable part and
the premium and the method for calculating the variable
part of the premium shall be as laid down in Annex V to
this Regulation. The Member States may increase the
relation between the variable part and the premium up to
a maximum of 45 %.

2.
The fixed part of the premium to be paid either to
producer groups for distribution in full to each member
of the group or to individual producers who are not
members of a group and the quantity to be set off against
the production quota statement of the party concerned
shall be calculated on the basis of the weight of leaf
tobacco of the group of varieties concerned corresponding
to the minimum quality required and taken over by the
first processor.

The methods

3.
for determining moisture content,
sampling levels and frequency and the method for calcu-
lating the adjusted weight shall be as set out in Annex VI.

The variable part of the premium to be paid to
4.
producer groups for redistribution in full to each member
shall be calculated for each batch delivered on the basis of
the purchase price paid for
that batch by the first
processor.

Article 16

1.
Except in cases of force majeure, producers must
deliver their entire production to the first processor by 30
April of the year following the year of harvest for the
groups of varieties VI, VII and VIII and by 15 April of the
year following the year of harvest for the other groups of
varieties, failing which they shall lose their entitlement to
the premium.

The delivery must be made either directly to the place
where the tobacco will be processed or, if the Member
State so authorises, to an approved purchasing centre. The
competent control body shall approve such purchasing
centres, which must have the appropriate facilities,
weighing scales and premises.

2.
Each producer shall notify the competent control
body in writing by 10 May for the groups of varieties VI,
VII and VIII and by 25 April for other groups of varieties
of all quantities of leaf tobacco not delivered to a first
processor by the dates specified in paragraph 1, indicating
the place where the tobacco is stored. The competent
body shall take the necessary steps to ensure that any
tobacco not delivered to a first processor by the dates
specified in paragraph 1 is not then declared as part of the
subsequent harvest.

Article 17

Individual producers who are not members of a group
may deliver tobacco from a given group of varieties from
the same harvest to a single processor only.

Article 18

1.

The Member State’s competent body shall pay:

— the fixed part of the premium to the producer group
or to the individual producer who is not a member of
a group,

— the variable part of the premium and the specific aid

to the producer group,

Where the moisture content differs from the level laid
down in Annex IV for the variety concerned, the weight
shall be adjusted for each percentage point of difference,
up to a maximum of 4 % moisture.

on the basis of a control certificate issued by the
competent control body certifying that the tobacco has
been delivered and proof that the purchase price referred
to in Article 9(3)(i) has been paid.

31. 12. 98

EN

Official Journal of the European Communities

L 358/25

2. Member States must pay the fixed part of
the
premium and the specific aid to producers within 30 days
of the date of submission of the documents provided in
paragraph 1.

4.
The statement referred to in paragraph 2 shall be
issued by the control body once the documents referred
to in paragraph 3 are verified and the written declaration
supplied by the producer is substantiated.

The variable part of the premium must be paid to the
producer group within 30 days following the date of
submission of the documents referred to in paragraph 1
and of a declaration issued by the group concerned certi-
fying that deliveries of each group of varieties have been
completed.

Producer groups shall pay the fixed and variable
3.
parts of the premium to their members by bank or postal
transfer within 30 days of the date on which they receive
the amount in question.

4.
Payment to producer groups of the amounts referred
to in paragraphs 1 and 2, and payment of the purchase
price to producers by processors may be made only by
bank or postal transfer, to a single account, which in the
case of a producer group must be linked to the payments
to individual members of the group.

5. Notwithstanding paragraph 1, proof of payment of
the purchase price referred to in Article 9(3)(i) shall not be
required where it is proven that the first processor who
signed the contract is the subject of bankruptcy or similar
proceedings or has been legally declared bankrupt.

Article 19

1. Member States shall apply a system of advances on
premiums for producers in accordance with paragraphs 2
to 8.

2.
The advance referred to in paragraph 1 shall be paid,
on application by the producer, on the basis of a state-
ment of eligibility for the advance, prepared by the
competent control body.

3.
The following documents must accompany applica-
tions for an advance save where a Member State provides
otherwise on the grounds that they are already in its
possession:

(a) a copy of the cultivation contract concluded by the

producer issued in his name;

(b) a copy of the quota statement issued to the producer

and covered by the said cultivation contract;

(c) a written declaration from the producer concerned
specifying the quantities of tobacco he is in a position
to deliver during the current harvest.

5.
Payment of the advance, the maximum amount of
which shall be 50 % of the premium payable to the
producer, shall be subject to the lodging of a security
equal to the amount of the advance plus 15 %.

The advance shall be paid from 16 October of the year of
the harvest and must be paid within 30 days of submis-
sion of the application referred to in paragraph 2 and of
proof that the security has been lodged save where the
application is submitted before 16 September, in which
case the period shall be increased to 60 days.

6. Where the advance is granted to a producer group
but has not been paid to the members entitled or reim-
bursed to the Member State within 30 days of receipt,
interest shall be payable on the amount still available at a
rate to be determined by the Member State. The interest
shall be calculated from the date the advance was received
and booked to the European Agricultural Guidance and
Guarantee Fund (EAGGF).

The advance paid shall be deducted from the
7.
amount of the premium payable to the producer under
Article 18(1), starting from the first delivery made.

The security lodged shall be released on presentation of
the control certificate for the quantity of tobacco in ques-
tion and of proof that the amount equal to the premium
has been paid to the producers entitled thereto. Member
States shall establish any further conditions, particularly
the tobacco delivery periods or the minimum quantities
for which a control certificate may be drawn up. Once
50 % of the premium due has been paid, 50 % of the
security shall be released. The security lodged shall be
released when the entire advance paid has been deducted
from the premiums payable.

fail

(except

in cases of

8. Where producers
force
majeure) to make the deliveries enabling full deduction of
the advance paid from the premiums payable within the
time limit laid down in Article 16(1), the security lodged
by them shall be forfeited at a rate equal to the amount of
the advance not recovered.

9. Member States shall determine any further condi-
tions governing the grant of advances, and in particular
the final date for lodging applications. Producers may not
lodge an application for an advance once they have begun
making deliveries.

L 358/26

EN

Official Journal of the European Communities

31. 12. 98

Article 20

1.
For the 1999 and 2000 harvests, Member States may
pay the premium to producers through the first proces-
sors. In such cases, the Member State’s competent body
shall pay to processors:

— the fixed part of the premium for the producer groups
and individual producers who are not members of a
group,

— the variable part of the premium and the specific aid

for the producer groups,

on the basis of the control certificate and proof that the
purchase price referred to in Article 9(3)(i) has been paid.

The Member State shall pay the premium to the first

2.
processor within the following time limits:

(a)

the fixed part of the premium and the specific aid,
within 30 days of the date of submission of the docu-
ments provided for in paragraph 1.

(b) the variable part of the premium, within 30 days of
the date of submission of a declaration issued by the
producer group concerned and the documents
provided for in paragraph 1.

3.
The first processor shall pay the fixed part of the
premium and, where applicable, the variable part of the
premium and the specific aid, to the producer concerned
within 10 days of the date on which they receive the
amounts in question.

4.
Payment of the amounts referred to in paragraph 1
may be made only by bank or postal transfer to a single
account, which must, in the case of producer groups, be
linked to the payment to individual members of the
producer group.

Article 21

1.
Premiums shall be paid or advanced by the Member
State in which the tobacco was produced. They shall be
paid to the producer in the currency of the Member State
in which the tobacco was produced.

2. Where tobacco is processed in a Member State other
than that
the processing
in which it was produced,
the necessary
Member State shall, after carrying out
checks, provide the producer Member State with all the
information needed to enable it to pay the premium or
release the security.

TITLE V

Production quotas

CHAPTER I

A l l o c a t i o n o f q u o t a s

Article 22

1. Member States shall allocate production quotas for
each group of varieties for three consecutive harvests,
within the limit of the guarantee thresholds fixed under
Article 9(2) of Regulation (EEC) No 2075/92, to indi-
vidual producers who are not members of a producer
group and to producer groups,
in proportion to the
average quantity of tobacco delivered for processing by
each individual producer or each producer group over the
three years preceding that of the most recent harvest.

2. Member States may either allocate the production
quotas directly among individual producers who are not
members of a producer group and producer groups, or
require individual producers who are not members of a
producer group and producer groups to submit applica-
tions for a production quota.

3. Member States shall issue quota statements to indi-
vidual producers who are not members of a producer
group and to producer groups not later than 31 January
of the year of harvest.

Article 23

Allocation of a production quota shall not prejudice the
allocation of quotas for subsequent years.

Article 24

1.
The quotas for each producer shall be equal to the
average quantity each produces as a percentage of the
total of the average quantities calculated in accordance
with Article 9 of Regulation (EEC) No 2075/92 and
Articles 22 and 25 of this Regulation, such percentage
being applied to the specific guarantee threshold of the
Member State for the group of varieties in question.

In the case of producer groups, any members leaving
2.
a group shall maintain entitlement to their own quota as
calculated under paragraph 1.

3.
The production quotas of producers who have newly
begun to grow tobacco or who have increased their quota
under Article 29(3) must be calculated as follows:

— for the harvests following the allocation under Article
29(3), and until the next distribution of three-yearly
production quotas, the amended quotas shall remain
unchanged,

— when quotas are allocated, producers shall obtain a

production quota in line with paragraph 1.

31. 12. 98

EN

Official Journal of the European Communities

L 358/27

4.
Producers who have increased their quota as the
result of a temporary transfer shall, when quotas are al-
located, obtain a production quota in proportion to the
average quantity of
tobacco delivered, excluding the
production quotas affected by the transfer.

5.
Producers who have increased their quota as the
result of a permanent transfer shall, when quotas are
distributed, obtain a production quota in proportion to
the average quantity of tobacco delivered, including the
production quotas affected by the transfer.

6.
Producers’ percentages shall be expressed to at least
four decimal places. Quotas shall be fixed in kilograms.

Article 25

For the purposes of calculating the average quantities
1.
delivered for processing, all the tobacco from a harvest
shall be deemed to be delivered during the calendar year
of the harvest in question. However, the quantities of
tobacco delivered for processing on the basis of Article
9(5) shall be deemed to be delivered during the year of
the harvest in which they were entitled to the premium.
Only tobacco actually delivered and giving rise to entitle-
ment to the premium shall be taken into account.

2. Quantities of tobacco delivered by producers located
outside the production areas recognised in accordance
with Article 5(a) of Regulation (EEC) No 2075/92 shall
not be taken into account in the calculation referred to in
paragraph 1.

Article 26

1. Where tobacco produced in one Member State is
processed in another, the quotas shall be allocated in
accordance with paragraphs 2, 3 and 4.

the quantities of

2.
The processing Member State shall notify the
producer Member State, for each producer and group of
varieties, of
raw tobacco from the
producer Member State delivered for processing during
the reference years to be used for calculating the produc-
tion quotas under Article 9(3) of Regulation (EEC)
No 2075/92.

3.
This information shall be forwarded not later than 15
November of the year preceding the harvest in question.

The producer Member State shall allocate the corres-
4.
ponding quantity of
specific guarantee threshold
quantity to producers who delivered tobacco to processors
located in another Member State during the reference
years referred to in paragraph 2.

its

When the production quotas are allocated, producers who
located in another
delivered tobacco to processors
Member State during the reference years shall be treated
in the same way as producers who delivered their produc-
tion to a processor located in their Member State.

CHAPTER II

Q u o t a s t a t e m e n t s

Article 27

1. Member States shall issue production quota state-
ments for each group of varieties, within the limit of their
guarantee thresholds, to producers located in a production
area recognised in accordance with Article 5(a) of Regula-
tion (EEC) No 2075/92.

The production quota statements shall indicate in par-
ticular the holder of the certificate, the group of varieties
and the quantity of tobacco for which they are valid.

The Member States shall lay down the procedure for
2.
issuing production quota statements and shall adopt
measures to prevent fraud in accordance with Article 17
of Regulation (EEC) No 2075/92.

3. Member States may lay down minimum quantities
for
the issue of production quota statements. Those
quantities may not exceed 500 kilograms.

the request of

4. Where producers can prove that, as a result of excep-
tional circumstances, one of their harvests in the refer-
ence period was abnormally low, the Member State shall,
at
the party concerned, determine the
quantity to be taken into account for that harvest when
making out the quota statement; the quantity thus deter-
mined may not exceed the quantities entered in the quota
statements allocated to the producer for the harvest in
question.

CHAPTER III

A m e n d m e n t o f

t h e g u a r a n t e e t h r e s h o l d

Article 28

1. Where the guarantee threshold fixed for a group of
varieties for a particular harvest and a particular Member
State is higher than the guarantee threshold for the
previous harvest, the quantity exceeding that guarantee
threshold shall be distributed following objective and
consistent criteria to be adopted and published by the
Member State.

Member States may, in particular, stipulate that the addi-
tional quantities are to be allocated, as a priority,
to
producers:

(a)

for whom the quantity covered by their quota state-
ment has been reduced in relation to the previous
harvest for another group of varieties;

(b) who can significantly rationalise their production of
tobacco of the group of varieties in question if they
receive the additional quantity.

L 358/28

EN

Official Journal of the European Communities

31. 12. 98

2. Where the guarantee threshold fixed for a group of
varieties for a harvest and a Member State is lower than
the guarantee threshold applicable to the previous harvest,
that
in
reduction shall be shared among producers
proportion to the average quantity of tobacco delivered
for processing by each individual producer over the three
years preceding that of the most recent harvest, without
prejudice to the introduction of a quota buy-back
programme as provided for in Article 14 of Regulation
(EEC) No 2075/92.

CHAPTER IV

N a t i o n a l q u o t a r e s e r v e s

Article 29

1.
In order to encourage producers to switch to other
crops and to restructure their holdings, the Member States
shall set up a national quota reserve for each group of
varieties for each harvest.

2.
This reserve shall be made up of quotas released by a
linear reduction in all the quotas allocated to individual
producers and producer groups to be set by the Member
States at between 0,5 % and 2 % of
the guarantee
threshold fixed each year for the same group of varieties.

In addition, the Member States may make use of the
following:

— a linear reduction to be set by each Member State at
up to 2 % of the quantities entered on the statements
of production quotas
that have been transferred
permanently,
and/or

— production quotas that have not been covered by a
cultivation contract by the closing date for conclusion
of such contracts.

The national reserve shall be distributed, in accord-
3.
ance with Chapter I of this Title and the production areas
recognised in accordance with Article 5(a) of Regulation
(EEC) No 2075/92, among producers, or those who wish
to become producers, on the basis of objective criteria
determined by each Member State.

CHAPTER V

T r a n s f e r o f q u o t a s

Article 30

Quotas may be transferred temporarily or permanently.

Article 31

1. Where a tobacco-producing holding is transferred to
a third party for any reason whatsoever, the new incum-
bent shall be entitled to the production quota statement

from the date of transfer for the entire reference period,
unless a valid contract stipulates otherwise.

2. Where part only of a tobacco-producing holding is
transferred to a third party, the new incumbent shall be
entitled to the production quota statement in proportion
to the agricultural area taken over. However, the parties
concerned may agree that full entitlement should be held
by the person formerly or newly entitled.

3. Without prejudice to paragraph l, producers who
lease the areas they farm shall maintain their entitlement
to the quota when their lease terminates.

4.
Several members of one family who jointly farm or
have farmed a tobacco-producing holding must apply for
a single production quota statement to be issued on the
basis of the aggregate quantities to which they are en-
titled.

Article 32

Subject

1.
to authorisation by the Member State
concerned, producers may exchange among themselves
their rights to a production quota statement for a group of
varieties against a statement for a different group of vari-
eties.

2.
Exchange of rights to a production quota statement
in accordance with paragraph 1 shall be considered a
permanent transfer between the producers concerned of
the reference quantities on the basis of which the state-
ment was established.

Article 33

1. Within a single Member State, individual producers
may transfer between themselves, either temporarily or
permanently, all or part of the quantities in the produc-
tion quota statements allocated to them, provided the
following conditions are met:

(a)

the quota statement concerned has not yet been
covered by a cultivation contract;

(b) the transferee already has a production quota for the

group of varieties in question;

(c) the transfer has been the subject of a written agree-
ment between the parties concerned, referring to the
statement relating to the production quota, all or part
of which is to be transferred;

31. 12. 98

EN

Official Journal of the European Communities

L 358/29

(d) the agreement referred to at (c) has been submitted to
the competent authority for registration within 30
days of the date referred to in Article 22(3);

(e) the original of

the production quota statement of
which all or part of the quantities are to be transferred
must be returned to the competent authority when
the transfer agreement is submitted;

(f)

if the producer transferring a quota statement is a
member of a producer group, the transfer must be
authorised by the group where the transferee is not a
member of the same producer group. Authorisation
must be granted by the producer group where no
member of the group has expressed interest in using
the quantity covered by the transfer on the terms
offered. Where the transfer
takes place between
producers who are members of the same producer
group, the group must be notified of the transfer;

(g) permanent transfer shall apply solely to producers
furnishing proof that growing contracts have been
three years for the quotas
concluded in the last
involved in the transfer.

2.
The competent authority of the Member State shall
register agreements as referred to in paragraph l(c) within
20 days of their submission, after checking that the condi-
tions referred to in paragraph 1(a), (b), (d), (e), (f) and (g) are
met. On the same day, the competent authority of the
Member State shall issue:

— to transferees, an additional production quota state-
ment corresponding to the quantities of production
quota that have been transferred,

— to producers who have transferred only part of the
quantities covered by their quota statement, a replace-
ment production quota statement corresponding to
the quantities which have not been transferred.

3.
Transfers of production quotas as referred to in para-
graph 1 may not involve quantities of less than 100
kilograms.

CHAPTER VI

B u y - b a c k o f q u o t a s

guarantee thresholds referred to in Article 8 of Regulation
(EEC) No 2075/92 shall be introduced to facilitate the
voluntary departure from the sector of individual produ-
cers.

2.
The Commission shall determine, on the basis of
proposals from the Member States, to be submitted by 30
May of each harvest year, which sensitive production areas
and/or groups of high-quality varieties up to a maximum
of 25 % of each Member State’s guarantee threshold, are
to be exempt from application of the previous paragraph.

Paragraph 1 shall

to producers
solely
3.
furnishing proof
that growing contracts have been
concluded in the last three years for the quotas involved
in the buy-back programme.

apply

Article 35

1.
Producers who decide to leave the sector under
Article 34 must inform the competent authority of the
Member State and, in the case of individual producers
who are members of a producer group, their group, in
writing of their decision before 1 September of each
harvest year.

From 1 September to 31 December, the Member
2.
State shall make public the intention to sell so that other
producers may buy the quota before it is actually bought
back.

Individual producers belonging to the same group as the
producer who has decided to leave the sector and the
group concerned shall have priority, in that order, over
other producers if they wish to buy the quotas available
under the buy-back programme.

3. Once the four-month period is over, any quotas
which have not been bought by producers shall be
permanently bought back.

4.
From the harvest year following the date on which
the producer notifies the decision to leave the sector, the
guarantee threshold for the group of varieties concerned
shall be reduced by the quantity bought back.

Article 34

Article 36

1. Under Article 14(1) of Regulation (EEC) No 2075/92
and excluding sensitive production areas and/or groups of
high-quality varieties as defined in paragraph 2, a quota
buy-back programme with corresponding reduction of the

Producers whose quotas have been bought back for the
1999 harvest shall be entitled, when the premiums for the
2000, 2001 and 2002 harvest years are paid, to receive the
following amounts each year:

L 358/30

EN

Official Journal of the European Communities

31. 12. 98

— Group I quotas EUR 0,67741/kg,

— Group II quotas EUR 0,54187/kg,

— Group III quotas EUR 0,54187/kg,

— Group IV quotas EUR 0,59591/kg,

— Group V quotas EUR 0,54187/kg,

— Group VI quotas EUR 0,93854/kg,

— Group VII quotas EUR 0,79635/kg,

— Group VIII quotas EUR 0,56904/kg.

CHAPTER VII

O t h e r p r o v i s i o n s

Article 37

The Member States may provide that disputes concerning
the distribution or transfer of production quotas shall be
submitted to an arbitration body. The Member States shall
lay down the rules governing the membership and the
decision-making procedures of such bodies.

Article 38

1. Member States shall establish a computerised data-
base which shall contain, for each processor and each
producer and producer group,
information identifying
their establishments or their holdings, the quotas or the
quantities appearing on production quota statements al-
located to them and any other information which may be
useful for monitoring the quota system.

2. Member States shall ensure that:

— data in the computerised database are preserved,

— the database is used exclusively for the application

described in paragraph 1,

— measures are applied to safeguard the data, in partic-

ular against theft and interference,

— persons covered by the scheme have access to the files
relevant to themselves without excessive expense or
delay,

— persons covered by the scheme are able to have infor-
mation concerning them changed, where justified, and
in particular to have data which is no longer of
interest periodically deleted.

3.

Processors and producers:

— must not hinder in any way the establishment of the
computerised database by duly qualified officials,

4. Member States shall ensure that, subject to national
laws on the protection of data of a personal nature, the
quota of each individual producer used for the conclusion
of cultivation contracts or, where applicable, the quota of
each producer who is a member of a producer group, is
made public in such a way as to be known to all produ-
cers concerned in a restricted production area as defined
in Article 9 of this Regulation.

Article 39

Where a production quota covers a producer group which
is itself a producer, the Member State shall ensure that the
quantity in question is distributed fairly between all
members of the group. Member States must also have at
their disposal exact data on the production of all the
individual producers so that the production quotas may
be allocated to them if necessary.

In that case, Chapter I shall apply mutatis mutandis to
distribution among the members of the group; however,
with the agreement of all the members, the group may
undertake a different distribution with a view to improved
organisation of production.

TITLE VI

Specific aid

Article 40

1.
The specific aid referred to in Article 4a(5) of Regu-
lation (EC) No 2075/92 shall be 2 % of the premium.

2.
The specific aid may be used by producer groups up
to 30 June of the year following that of harvest in the case
of groups of varieties VI, VII and VIII and up to 15 June
of the year following that of harvest in the case of the
other groups of varieties and for the following purposes
only:

— the employment of technical staff to assist members
their production and

in improving the quality of
respect for the environment,

— the supply to members of certified seeds and seedlings
and of other means of production in order to improve
product quality,

— environmental protection measures,

— the implementation of

infrastructure measures for
enhancing the value of products supplied by the
members, in particular tobacco-grading facilities,

— the employment of administrative staff to administer
the premium and ensure that the group complies with
Community rules,

— must provide these officials with all the information

— the reimbursement of the costs incurred in lodging

required pursuant to this Regulation.

securities under Article 42.

31. 12. 98

EN

Official Journal of the European Communities

L 358/31

3.
The expenditure referred to in the first, second and
third indents of paragraph 2 shall be equivalent to not
less than 50 % of the total specific aid.

— Article 12 for the inspection report,

— Article 13 for the on-the-spot check,

— Article 15 for wrongly-made payments.

Article 41

Article 44

in which processing took place,

If the specific aid is paid by a Member State other than
that
the latter shall
forward to the Member State responsible for the payment
of the aid, at its request, the proofs and supporting docu-
ments referred to Article 18(1).

Article 42

1. On application,
the Member State shall pay the
producer group an advance on the specific aid. The size of
the advance shall be established on the basis of
the
quantity of tobacco which the group has delivered to the
processor at the time the application is submitted. The
Member State shall lay down the additional conditions for
payment of the advance.

1.
The Member States shall set up inspection arrange-
ments to ensure effective verification of compliance with
this Regulation and with Regulation (EEC) No 2075/92
and shall adopt all the additional measures necessary for
the application of those Regulations.

The arrangements shall comprise the following:

(a) administrative checks;

(b) on-the-spot checks;

(c) checks on deliveries of leaf tobacco;

(d) checks during first processing and market preparation

of the tobacco.

2.
Payment of the advance on the specific aid shall be
subject to the lodging of a security which shall be at least
equal to the advance, plus 15 %.

2. Member States shall provide mutual assistance where
necessary for the purposes of the checks provided for in
this Regulation and where trade in leaf tobacco takes
place between them.

3.
The security shall be released upon presentation of
the proof relating to the specific aid, as referred to in
Article 18(1) of this Regulation.

Article 45

TITLE VII

Checks and penalties

CHAPTER I

C h e c k s

Article 43

The administrative checks shall include cross-checks:

(a) on declared tobacco parcels against

the database
provided for
in Article 2 of Regulation (EEC)
No 3508/92 to prevent aid being wrongly paid twice
for the same harvest. All declared tobacco parcels
must be checked;

(b) to check compliance with Article 2(3) of this Regula-

tion.

For the 1999 harvest, these cross-checks may be carried
out on a sample.

Article 46

For the purpose of checking compliance with this Regu-
lation, the following Articles of Commission Regulation
(EEC) No 3887/92 shall apply:

— Article 6(1) for effective verification of compliance

with the conditions for granting aid,

— Article 11 for additional national penalties and cases

of force majeure,

1. On-the-spot checks shall be carried out after risk
analysis. Member States shall carry out unannounced
on-the-spot checks to verify:

(a)

the information given in the cultivation contracts and
in particular the area, the group of varieties cultivated
and the quantities of tobacco in store referred to in
Article 16(2).

L 358/32

EN

Official Journal of the European Communities

31. 12. 98

The area shall be determined by any appropriate
means prescribed by the competent authority and
ensuring accuracy of measurement equivalent at least
to that
required for official measurements under
national rules. The competent authority shall deter-
mine a level of tolerance, in the light in particular of
the measurement method applied, the precision of the
official documents available and the local situation
(for example, the slope or shape of plots).

For each processing undertaking,
the checks shall
cover at least 5 % of the individual producers covered
by the contracts registered for each group of varieties;
the sample to be inspected must be selected by the
competent authority on the basis, in particular, of a
risk analysis and ensure representative coverage of the
different volumes covered by contracts. Member States
may decide that all or part of the sample shall be
checked by remote sensing;

(b) compliance with Articles 40(2) and (3) and 18(3) and

(4) of this Regulation.

Such checks shall each year cover at least 30 % of
producer groups in each Member State. In selecting
the sample to be inspected, the competent authority
must ensure, in particular, representative coverage of
the different sizes of producer group.

2.

The risk analysis shall take account of:

— the quantities of raw tobacco covered by contracts in
relation to the areas declared as under tobacco,

— the results of the checks carried out in previous years,

and the quantities of tobacco transported in each separate
instance.

3. When the tobacco reaches the processing plant, the
the separate
competent control body shall verify that
quantities checked in the purchasing centres are those
actually delivered, in particular by weighing them.

The competent control body shall lay down any special
conditions it deems necessary for checking the opera-
tions.

Article 48

1. Checks during first processing and market prepara-
tion of the tobacco shall be carried out after risk analysis.
The Member States shall carry out unannounced checks
to verify compliance with Article 7, with the time limit
for payment of the purchase price provided for in Article
9(3)(j) and with the time limit for payment of the amount
provided for in Article 20(3).

2.
The checks carried out during first processing and
market preparation must enable verification of the quant-
ities of leaf tobacco in each undertaking being checked,
either produced in the Community or originating in or
coming from third countries, placed under supervision
and ensure that the tobacco subjected to this supervision
is not released therefrom before the first processing and
market preparation operations are completed and that no
tobacco is submitted more than once for checking. The
checks shall include:

(a) an unannounced check of the processing underta-

— other factors to be defined by the Member State.

king’s stocks;

3. Where on-the-spot checks disclose significant irreg-
ularities in a production zone or part of a production
zone, the competent authorities shall carry out additional
checks in the current year and increase the percentage of
checks the following year in that production zone or part
of a production zone.

Article 47

The competent control body must check all deliv-
1.
eries. Each delivery must be authorised by the competent
control body, which must be informed in advance so that
it can determine the date of delivery. During a check, the
competent control body must verify that it has authorised
the delivery in advance.

2.
If delivery is being made to an approved purchasing
centre as provided for in the second subparagraph of
Article 16(1), unprocessed tobacco, once checked, may
leave the purchasing centre solely for the purpose of
being transferred to the processing plant. After the checks
have been made,
the tobacco must be assembled in
distinct quantities. The transfer of these quantities to the
processing plant must be authorised in writing by the
competent control body, which must be informed in
advance so that it can accurately identify the means of
transport used, the route, the time of departure and arrival

(b) a check when the tobacco leaves the place in which it
first

supervision, having undergone

was under
processing and market preparation;

(c) all additional control measures that Member States
deem necessary,
to ensure that no
in particular
premium is paid for raw tobacco originating in or
coming from third countries.

3. Checks during first processing and market prepara-
tion shall cover at least 5 % of first processors; the sample
to be inspected must be selected by the competent
authority on the basis, in particular, of a risk analysis and
ensure representative coverage of the different sizes of
undertaking.

4.

The risk analysis shall take account of:

— the results of the checks carried out in previous years,
— change compared with the previous year,
— other factors to be defined by the Member State.

the undertakings

The checks referred to in paragraph 2 must be under-
taken in the place where the leaf tobacco is processed.
Within a time limit to be determined by the Member
State,
involved shall notify their
the places where
in writing, of
competent bodies,
processing will take place. Member States may stipulate,
to that end, the information to be provided by the first-
processing undertakings to the competent bodies.

31. 12. 98

EN

Official Journal of the European Communities

L 358/33

CHAPTER II

P e n a l t i e s

Article 49

The provisions of this chapter shall not apply in cases of
force majeure.

Article 50

1. Where individual producers do not grow tobacco,
they shall lose all entitlement to the premium for the
the
current harvest and to a production quota for
following harvest.

2.
If the area actually cultivated falls short of the area
declared by more than 10 %, the premium to be paid to
the producer in question for the current harvest and any
quota to be allocated to that same producer for the subse-
quent harvest shall be reduced by double the discrepancy
found.

3. Where the penalties referred to in paragraphs l and 2
are applied and the individual producer is a member of a
producer group, the production quotas entered on the
quota statement shall be reduced by the exact quantities
covered by the penalty relating to the production quota of
the producer to be penalised for the harvest in question,
with no possibility of a different allocation between the
members of the producer group.

4.
If the checks cannot be carried out for reasons attri-
butable to the producer, the area shall be considered
uncultivated.

The penalties laid down in paragraphs l and 2 shall not
apply to producers or processors who notify the
competent bodies in writing of these discrepancies before
the checks are undertaken or if farmers can show that
their determination of the area of the parcel concerned,
excluding service roads and enclosures, was accurately
based on information recognised by the competent
authority.

If the competent control body establishes the pres-
5.
ence of tobacco not notified in accordance with Article
16(2), the quantity to be covered by the quota statement
to which the producer is entitled for the following harvest
shall be reduced by twice the quantity not declared.

breach again after a second check shall have their recog-
nition withdrawn.

Where clerical errors are found, the specific aid for the
current harvest shall be reduced. Member States shall fix
this reduction at between 1 % and 20 % according to the
seriousness of the error. The producer group must rectify
the consequences of any errors found.

2.
If the producer group does not comply with the rules
referred to in Article 40(2) and (3), the specific aid shall be
reduced by 20 % to 50 %, according to the seriousness of
the infringement. Producer groups found to be commit-
ting a further infringement shall have their recognition
withdrawn.

If producer members of a producer group are not paid the
full amount of the fixed part and the variable part of the
premium within 30 days of the deadline referred to in
Article 18(3), the specific aid shall be reduced by 20 %.
The specific aid shall be reduced by an additional 20 %
for each additional period of 30 days, up to a maximum
of 150 days.

3.
Producer group administrators responsible deliber-
ately or by serious negligence for the withdrawal of recog-
nition in accordance with paragraphs 1 and 2 may not
administer another producer group or submit an applica-
tion for recognition during the year of application of the
penalty.

4. Recognition shall be withdrawn in accordance with
Article 6.

Article 52

If the unprocessed tobacco has not been delivered to the
places provided for in the second subparagraph of Article
16(1) or the transporter conveying distinct quantities of
tobacco as referred to in Article 47(2) from the purchasing
centre to the processing plant does not have authorisation
the processing undertaking which
to effect
received the tobacco concerned must pay the Member
State a sum of money equal to the premiums for the
quantity of tobacco in question. This amount shall be
booked to the European Agricultural Guidance and Guar-
antee Fund (EAGGF).

transport,

Article 53

Article 51

If the producer group has not complied with the
1.
rules for granting premiums as provided for in Annex V,
it shall lose its entitlement to receive any specific aid for
the current harvest. Producer groups found to be in

If the time limit for payment of the purchase price
1.
provided for in Article 9(3)(j) and the time limit
for
payment of the amount provided for in Article 20(3) are
exceeded by 30 days, the first processor’s approval shall be
withdrawn for one year. Approval shall be withdrawn for a
further year up to a maximum of three years for every
additional period of 30 days.

L 358/34

EN

Official Journal of the European Communities

31. 12. 98

Following a period of withdrawal, first processors

2.
must submit a new application for approval.

3.
First processors’ administrators responsible deliber-
ately or by serious negligence for withdrawal of approval
may not administer another approved first processor or
submit an application for approval during the first year in
which the penalty is applied.

TITLE VIII

Notifications to the Commission

Article 54

Each Member State concerned shall immediately notify
the Commission of:

(a) application of

the second subparagraph of Article

3(1)(f);

(b) refusal or withdrawal of recognition of a producer
group, giving its reasons for refusing or withdrawing
recognition;

(c)

the names and addresses of the bodies responsible for
the registration of cultivation contracts and of the
first-processing undertakings
each
Member State. The Commission shall publish a list of
those bodies and approved first-processing undertak-
ings in the ‘C' series of the Official Journal of the
European Communities;
(d) application of Article 12(1);

approved by

(e) application of Article 20(1);

(f)

the decisions it intends to take under Article 27(4);

(g)

the measures taken under Article 28(1);

(h) the rules for making up the national reserve and the
objective criteria for distributing the national reserve
adopted under Article 29(2) and (3);

(i)

(j)

the quantities permanently transferred by group of
varieties under Article 33;

the quantities which have been the subject of a quota
buy-back application and the quantities bought back
by group of varieties under Article 35;

(k)

the national measures taken to apply this Regulation;

(l) other information needed by the Commission for

proper administration of the arrangements.

The computer database established under the integrated
administration and control system shall be used for noti-
fying the information specified in this Article.

TITLE IX

Transitional and final provisions

Article 55

For the 1999 harvest, by derogation from the second
indent of Article 3(1)(f), producers who are members of
more than one producer group may notify a group in
writing of their withdrawal from membership up to 31
January 1999.

Article 56

Regulations (EEC) No 3478/92,
(EEC) No 84/93 and
(EC) No 1066/95 are hereby repealed with effect from
the date of entry into application of this Regulation.

Article 57

This Regulation shall enter into force on the seventh day
following its publication in the Official Journal of the
European Communities.

It shall apply with effect from the 1999 harvest.

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

Done at Brussels, 22 December 1998.

For the Commission
Franz FISCHLER

Member of the Commission

31. 12. 98

EN

Official Journal of the European Communities

L 358/35

ANNEX I

PERCENTAGES OF THE GUARANTEE THRESHOLD PER MEMBER STATE OR SPECIFIC
REGIONS FOR THE RECOGNITION OF PRODUCER GROUPS

Member State of specific region of establishment of the producer group

Percentage

Germany, Spain (except Castile-Leon, Navarre and the Campezo zone in the
Basque Country), France (except Nord-Pas-de-Calais and Picardy), Italy, Portugal
(except the Autonomous Region of the Azores), Belgium, Austria

2 %

Greece (except Epirus), Autonomous Region of
Nord-Pas-de-Calais and Picardy (France)

the Azores

(Portugal),

1 %

Castile-Leon (Spain), Navarre (Spain), Campezo zone in the Basque Country
(Spain), Epirus (Greece)

0,4 %

L 358/36

EN

Official Journal of the European Communities

31. 12. 98

ANNEX II

RECOGNISED PRODUCTION AREAS

Group of varieties in accordance
with the Annex to Regulation
(EEC) No 2075/92

Member
State

I.

Flue-cured

Germany

Greece

France

Italy

Spain

Portugal

Production areas

Schleswig-Holstein, Lower Saxony, Bavaria, Rheinland-
Pfalz, Baden-Württemberg, Hessen, Saarland, Branden-
burg, Mecklenburg-Western Pomerania, Saxony, Saxony-
Anhalt, Thuringia

Thrace, Eastern Macedonia, Central Macedonia, Western
Macedonia, Thessaly, Epirus, Eastern Sterea Hellas,
Western Sterea Hellas, Peloponnese

Aquitaine, Midi-Pyrénées, Auvergne-Limousin, Cham-
pagne-Ardennes, Alsace-Lorraine, Rhône-Alpes, Franche-
Comté, Provence-Alpes-Côte
d’Azur, Loire Region,
Centre, Poitou-Charente, Brittany, Languedoc-Roussillon,
Normandy, Burgundy, Nord-Pas-de-Calais,
Picardy,
Île-de-France

Friuli, Veneto, Lombardy, Piedmont, Tuscany, Marche,
Umbria, Lazio, Abruzzi, Molise, Campania, Basilicata,
Apulia, Calabria

Extremadura, Andalusia, Castile-Leon, Castile-La Mancha

Beira Interior, Ribatejo Oeste, Alentejo, Autonomous
Region of the Azores

Austria

Burgenland, Lower Austria, Upper Austria, Styria

II.

Light air-cured

Belgium

Flanders, Hainaut, Namur, Luxembourg

Germany

Greece

France

Italy

Spain

Portugal

Bavaria, Rheinland-Pfalz, Baden-Württemberg, Hessen,
Saarland, Brandenburg, Mecklenburg-Western Pomerania,
Saxony, Saxony-Anhalt, Thuringia

Eastern Macedonia, Central Macedonia, Western Mace-
donia, Thessaly

Aquitaine, Midi-Pyrénées, Auvergne-Limousin, Alsace-
Lorraine, Rhône-Alpes, Franche-Comté, Loire Region,
Centre, Poitou-Charente, Brittany, Burgundy, Languedoc-
Roussillon, Champagne-Ardenne, Ile-de-France

Veneto, Lombardy, Piedmont, Umbria, Emilia-Romagna,
Lazio, Abruzzi, Molise, Campania, Basilicata, Apulia,
Sicily, Friuli, Tuscany, Marche

Extremadura, Andalusia, Castile-Leon, Castile-La Mancha

Beiras, Ribatejo Oeste, Entre Douro e Minho, Trás-os-
Montes, Autonomous Region of the Azores

Austria

Burgenland, Lower Austria, Upper Austria, Styria

III. Dark air-cured

Belgium

Flanders, Hainaut, Namur, Luxembourg

Germany

Rheinland-Pfalz, Baden-Württemberg, Hessen, Saarland,
Bavaria, Brandenburg, Mecklenburg-Western Pomerania,
Saxony, Saxony-Anhalt, Thuringia

31. 12. 98

EN

Official Journal of the European Communities

L 358/37

Group of varieties in accordance
with the Annex to Regulation
(EEC) No 2075/92

Member
State

Production areas

France

Italy

Spain

Midi-Pyrénées,

Aquitaine,
Languedoc-Roussillon,
Auvergne-Limousin, Poitou-Charente, Brittany, Loire
Region, Centre, Rhône-Alpes,
Provence-Alpes-Côte
d’Azur, Franche-Comté, Alsace-Lorraine, Champagne-
Picardy, Nord-Pas-de-Calais, Normandy,
Ardenne,
Burgundy, Réunion

Friuli, Trentino, Veneto, Tuscany,
Campania, Apulia, Sicily

Lazio, Molise,

Extremadura, Andalusia, Castile-Leon, Castile-La Mancha,
Valencia (Autonomous Community), Navarre, Rioja, Catal-
onia, Madrid, Galicia, Asturias, Cantabria,
area of
Compezo in the Basque Country, La Palma (Canary
Islands)

Austria

Burgenland, Lower Austria, Upper Austria, Styria

IV.

Fire-cured

V.

Sun-cured

Italy

Spain

Greece

Veneto, Tuscany, Umbria, Lazio, Campania, Marche

Extremadura, Andalusia

Western Macedonia, Thessaly, Epirus, Eastern Sterea
Hellas, Western Sterea Hellas, Peloponnese, Thrace and
islands

Italy

Lazio, Abruzzi, Molise, Campania, Basilicata, Apulia, Sicily

VI.

Basmas

Greece

Thrace, Eastern Macedonia, Central Macedonia, Western
Macedonia, Thessaly, Western Sterea Hellas

VII. Katerini
varieties

and

similar

Greece

Eastern Macedonia, Central Macedonia, Western Mace-
donia, Thessaly, Epirus, Eastern Sterea Hellas, Western
Sterea Hellas

VIII. Kaba Koulak

classic,
Elassona, Myrodata de
Agrinion, Zichnomyro-
data

Greece

Eastern Macedonia, Central Macedonia, Western Mace-
donia, Thessaly, Epirus, Eastern Sterea Hellas, Western
Sterea Hellas, Peloponnese and islands, Thrace

L 358/38

EN

Official Journal of the European Communities

31. 12. 98

ANNEX III

Minimum quality requirements

Tobacco eligible for the premium referred to in Article 3 of Regulation (EEC) No 2075/92 must be of sound
and fair merchantable quality having regard to the typical characteristics of the variety concerned and must
not contain any of the following:

(a) pieces of leaf;

(b)

leaf badly worn by hail;

(c)

leaf with serious damage on more than one third of the surface;

(d)

leaf diseased or attacked by insects on more than 25 % of the surface;

(e)

leaves marked by pesticides;

(f)

leaf which is unripe or distinctly green in colour;

(g)

leaf damaged by frost;

(h) leaf attacked by mould or rot;

(i)

(j)

leaf with uncured veins, moist or attacked by rot or with pulpy or prominent stems;

leaf from suckers or side-shoots;

(k)

leaf having an unusual odour for the variety in question;

(l)

leaf with soil still adhering;

(m) leaf with a moisture content exceeding by more than four points the moisture content laid down in Annex

IV.

ANNEX IV

MOISTURE CONTENT REFERRED TO IN ARTICLE 15

Group of varieties

Moisture content (%)

I.

II.

Flue-cured

Light air-cured

Germany, France, Belgium, Austria, Portugal — Autonomous Region of the
Azores

Other Member States and other recognised production areas in Portugal

III. Dark air-cured

Belgium, Germany, France, Austria

Other Member States

IV.

Fire-cured

V.

Sun-cured

VI.

Basmas

VII. Katerini

VIII. Kaba Koulak classic, Elassona, Myrodata Agrinion, Zichnomyrodata

16

22

20

26

22

22

16

16

16

16

31. 12. 98

EN

Official Journal of the European Communities

L 358/39

ANNEX V

A. Rules for breakdown of the premium

1. The premium comprises:

— specific aid = 2 % of the premium,

— variable part of the premium = percentage of the premium adjusted by group of varieties and

Member State as shown at section B and in accordance with Article 15(1),

— fixed part of the premium = difference between the premium after deduction of the amount
withheld for financing the Fund and the sum of the specific aid and the variable part of the
premium.

2. The additional amount laid down in Article 3(2) of Regulation (EEC) 2075/92 is added to the fixed part

of the premium.

B. Relation between the variable part and the premium

1999

I
Flue-cured

II
Light
air-cured

III
Dark
air-cured

IV
Fire-cured

V
Sun-cured

Other

VI
Basmas

VII
Katerini

VIII
K. Koulak

20 %

20 %

20 %

20 %

25 %

20 %

20 %

25 %

15 %

15 %

15 %

20 %

20 %

20 %

20 %

20 %

20 %

20 %

20 %

20 %

Italy

Greece

Spain

Portugal

France

Germany

20 %

20 %

20 %

Belgium

Austria

20 %

20 %

20 %

20 %

20 %

2000

I
Flue-cured

II
Light
air-cured

III
Dark
air-cured

IV
Fire-cured

V
Sun-cured

Other

VI
Basmas

VII
Katerini

VIII
K. Koulak

25 %

25 %

25 %

25 %

35 %

25 %

25 %

35 %

20 %

20 %

20 %

25 %

25 %

25 %

25 %

25 %

25 %

25 %

25 %

25 %

Italy

Greece

Spain

Portugal

France

Germany

25 %

25 %

25 %

Belgium

Austria

25 %

25 %

25 %

25 %

25 %

L 358/40

EN

Official Journal of the European Communities

31. 12. 98

2001 and subsequent harvests

I
Flue-cured

II
Light
air-cured

III
Dark
air-cured

IV
Fire-cured

V
Sun-cured

Other

VI
Basmas

VII
Katerini

VIII
K. Koulak

Italy

Greece

Spain

Portugal

France

Germany

Belgium

Austria

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

35 %

40 %

32 %

40 %

32 %

45 %

45 %

30 %

30 %

30 %

40 %

40 %

40 %

40 %

C. Variable part of the premium

The variable part of the premium is equal to:

[A/sum (QL × PP)] × (QL × PP).

Where A is the total amount of the variable premium available to a producer group for a group of varieties,
QL is the quantity delivered by batch and PP is the purchase price for each batch of the producer group
member for the group concerned.

For each group of varieties, the producer group must divide the total available amount of the variable
premium for the group of varieties concerned by the sum of the quantities delivered by batch, multiplied
by the purchase price for each lot. The result of this division must be multiplied by the product of the
quantity of each batch multiplied by its purchase price. A variable premium equal to zero should be
attributed to batches sold for a price between the minimum price and the minimum price plus 40 % for
each group of varieties grown by the producer group.

31. 12. 98

EN

Official Journal of the European Communities

L 358/41

COMMUNITY METHODS FOR THE DETERMINATION OF THE MOISTURE CONTENT OF
RAW TOBACCO

ANNEX VI

I. METHODS TO BE USED

A. Beaudesson method

1. Apparatus

B e a u d e s s o n E M 1 0 d r y i n g o v e n

A warm air electric dryer in which the air is passed over the sample to be dried by forced
convection by means of a special ventilation fan. The moisture content is determined by
weighing before and after drying, the balance being calibrated in such a way that the reading
given by the 10 g quantity used corresponds directly to the moisture content value in %.

2. Procedure

A 10 g quantity is weighted out in a pan with a perforated base and then put into the drying
column, where it is supported by a spiral ring. The oven is turned on for five minutes, during
which time the warm air causes the sample to dry at a temperature of about 100 (cid:190)C. At the end of
five minutes, an automatic timer stops the process. The temperature of the air at the end of the
drying process is recorded from a built-in thermometer. The sample is weighed and its moisture
content is read directly and corrected if necessary by the addition or subtraction of 10 of a %
according to the temperature reading, using the scale provided with the apparatus.

B. Brabender method

1. Apparatus

B r a b e n d e r o v e n

An electric dryer consisting of a thermostated cylindrical chamber, ventilated by forced convec-
tion, into which are simultaneously placed 10 metal pans, each containing 10 g of tobacco. These
pans are put onto a table, which can be rotated by means of a central handwheel into 10 different
positions, allowing each of the pans, after drying, to be placed in a position where it can be
weighed within the apparatus: a system of levers allows each of the pans in turn to be placed on
the arm of a built-in balance, without having to remove the samples from the chamber. The
balance has an optical read-out scale, and gives a direct reading for the moisture content. A
second balance is attached to the apparatus, being used only to weigh out the initial quantities.

2. Procedure

The thermostat is set at 110 (cid:190)C.

The chamber is set to preheat: minimum period 15 minutes.

10 quantities of 10 g are weighed out.

The oven is filled.

The samples are dried for 50 minutes.

Weights for determination of the gross moisture content are read.

C. Other methods

Member States may use other methods of measurement, based in particular on the determination of
the electrical resistance or dielectric properties of the batch concerned, on condition that the results
are calibrated on the basis of an examination of a representative sample using one of the methods
referred to in A and B.

L 358/42

EN

Official Journal of the European Communities

31. 12. 98

II.

SAMPLING

The following is the procedure to be followed for the sampling of leaf tobacco for determination of its
moisture content using one of the methods referred to in I.A and B:

1. Selection of samples

Select from each bale a number of leaves proportional to its weight. The number of leaves selected
should be sufficient to be properly representative of the bale as a whole.

The sample must include equal quantities of leaf from the outside of the bale, leaf from the centre
and leaf from a position intermediate to these.

2. Homogenisation

All the leaves selected are mixed together in a plastic bag and several kilograms of them are chopped
up (cutting width 0,4 to 2 mm).

3. Sub-sampling

After chopping, mix the chopped leaves thoroughly and withdraw a representative sample.

4. Measurement

Measurement must be carried out on the whole of this reduced sample and precautions should be
taken to ensure that:

— no variations in moisture content occur (air- and water-tight bag or container),
— the homogeneity of the sample is not affected by settling of waste.

III. SAMPLING LEVELS AND FREQUENCY AND THE METHOD FOR CALCULATING THE

ADJUSTED WEIGHT

— the number of samples to be taken to determine the moisture content of the raw tobacco must be
equal to at least three per producer per delivery for each group of varieties. Producers and first
processors may request on delivery for the number of samples taken to be increased,

— the weight of the tobacco delivered per group of varieties in the course of the same day is to be
adjusted according to the average moisture content measured. If the average moisture content is less
than one point higher or lower than the reference moisture content, the weight of the tobacco eligible
for the premium is not to be adjusted,

— the adjusted weight is: the total net weight of the tobacco delivered per group of varieties in the
course of the same day x (100 – average moisture content)/(100 – reference moisture content for the
variety in question). The average moisture content must be a whole number given by rounding down
for decimals between 0,01 and 0,49 and rounding up for decimals between 0,50 and 0,99.