Proposal for a Council Regulation on the common organisation of the market in flax and hemp grown for fibre
Date: 1999-11-10
Institutions: European Commission
Subjects: agro-industry, aid per hectare, flax, hemp, support policy

29.2.2000

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Official Journal of the European Communities

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Proposal for a Council Regulation (EC) on the common organisation of the market in flax and
hemp grown for fibre

(2000/C 56 E/07)

COM(1999) 576 final (cid:151) 1999/0237(CNS)

(Submitted by the Commission on 15 November 1999)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 thereof;

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

Having regard to the opinion of the Committee of the Regions,

Whereas:

(1) The operation and development of the common market
for agricultural products must be accompanied by the
establishment of
common agricultural policy to
in particular, a common organisation of agri-
include,
cultural markets which may
forms
depending on the product.

various

take

a

flax and hemp grown for fibre,

(2) The aim of the common agricultural policy is to attain the
objectives set out in Article 33 of the Treaty. In the case
of
in addition to the
provisions on area payments in Council Regulation (EC)
No 1251/1999 of 17 May 1999 establishing a support
system for producers of certain arable crops (1), rules
are needed to govern the internal market, including aid
to primary processors of flax and hemp straw.

(3) In order to ensure that flax and hemp straw is actually
processed, grant of the aid should be subject to certain
in particular the authorisation of primary
conditions,
processors and the requirement
that such processors
purchase the straw under contract.

(4) In order to prevent improper use of Community funds,
no aid should be granted to primary processors who are
found to have artificially created the conditions
for
thereby enjoying an advantage that
receiving the aid,
does not conform to the objectives of
the support
scheme for straw processing.

(1) OJ L 160, 26.6.1999, p. 1.

(5) In view of the differences between the market for long
flax fibre and the market for short flax fibre and hemp
fibre, the aid should be differentiated according to which
of the two types of fibre is obtained. In order to ensure
that overall support is sufficient to maintain traditional
long flax fibre in conditions similar to
production of
those provided for
in Council Regulation (EEC) No
1308/70 of 4 July 1970 on the common organisation
of the market in flax and hemp (2), the aid granted to
primary processors
should be gradually increased to
offset the gradual reduction in the aid per hectare paid
to growers under Regulation (EC) No 1251/1999 and,
ultimately, the abolition of the aid for short flax fibre.
The aid for short flax fibre and hemp fibre granted to
primary processors should be fixed at a level that will give
new products and their potential outlets the time to reach
equilibrium.

(6) In order to prevent any fraudulent increases in the quan-
tities eligible for aid,
should fix
maximum quantities on the basis of the areas covered
by straw purchase contracts.

the Member States

(7) In order

to keep down the expenditure incurred in
applying this Regulation, a stabiliser mechanism should
be introduced for both types of fibre obtained, i.e. long
flax fibre and short flax fibre and hemp fibre. In order to
ensure reasonable production levels in each Member State,
a maximum guaranteed quantity should be set for both
types of fibre, to be distributed among the Member States
as national guaranteed quantities. However, national
guaranteed quantities will be fixed for short flax fibre
and hemp fibre only for the time needed to allow the
new products to adjust
to the market. The national
guaranteed quantities should be fixed taking account of
the most recent average areas under fibre flax and hemp,
adjusted where necessary to reflect the areas actually in
production, multiplied by average fibre yields.

(8) To enable the Member States

to make adjustments
between the quantities thus obtained, conditions should
be laid down governing transfers between the two
national guaranteed quantities allocated to each. Any
such transfers should be carried out on the basis of a
coefficient to ensure budgetary equivalence.

(2) OJ L 146, 4.7.1970, p. 1. Regulation last amended by the Act of
Accession of Austria, Finland and Sweden and by Regulation (EC)
No 3290/94 (OJ L 349, 31.12.1994, p. 105).

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(9) The producer Member States must take the steps needed
the arrangements for granting the aid
to ensure that
the time
operate smoothly. Furthermore, because of
needed to process all
the straw harvested in one
marketing year, provision should be made for advance
payments as a verification measure.

(10) Taken as a whole, the regime governing trade with third
countries should make it possible to dispense with all
quantitative restrictions and taxes levied at the Commu-
nity’s external borders. However, this mechanism may in
exceptional circumstances prove defective. In such cases,
so as not to leave the Community market without defence
against disturbances which may ensue, the Community
should be able to take all necessary measures without
delay. All such measures must comply with the obli-
gations arising from the World Trade Organisation
agreements on agriculture (1).

times,

(EEC) No

it nevertheless no
been amended a number of
the sector has
longer reflects the deep changes that
undergone. Regulation
1308/70 should
therefore be repealed. Council Regulation (EEC) No
619/71 of 22 March 1971 laying down general rules for
granting aid for flax and hemp (4), Council Regulation
(EEC) No 620/71 of 22 March 1971 laying down
outline provisions for contracts for the sale of flax and
hemp straw (5), Council Regulation (EEC) No 1172/71 of 3
June 1971 laying down general rules on private storage
aid for flax and hemp fibre (6), Council Regulation (EEC)
No 1430/82 of 18 May 1982 providing for restrictions on
the importation of hemp and hemp seed and amending
Regulation (EEC) No 1308/70 in respect of hemp (7),
Council Regulation (EEC) No 2059/84 of 16 July 1984
laying down general
import
restrictions on hemp and hemp seed and amending Regu-
lation (EEC) No 619/71 in respect of hemp (8), which are
based on Regulation (EEC) No 1308/70 and Regulation
(EEC) No 619/71, are replaced by the new provisions in
this Regulation and repealed.

relating to the

rules

(11)

to prevent

In order
illicit crops from disturbing the
common organisation of the market in hemp for fibre,
provision should be made for checks on imports of hemp
and hemp seed to ensure that such products have a low
tetrahydrocannabinol content.
In addition, hemp seeds
intended for uses other than sowing may be imported
only if
they have been denatured and can no longer
germinate.

(16) The change from the arrangements in Regulation (EEC)
No 1308/70 to those in this Regulation could give rise to
difficulties which are not dealt with in this Regulation. In
order to deal with that eventuality, provision should be
made for the Commission to adopt the necessary transi-
tional measures. The Commission should also be auth-
orised to solve specific practical problems,

(12) As the market in flax and hemp grown for fibre develops
over time, the Member States and the Commission must
exchange with each other all the information needed for
the application of this Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

(13) Since the measures required for the implementation of
this Regulation are management measures within the
meaning of Article 2 of Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the
conferred on the
exercise of
Commission (2),
the
adopted
should
management procedure laid down in Article 4 of that
Decision.

implementing powers
be

they

by

(14) Expenditure incurred by the Member States as a result of
the obligations arising out of the application of this Regu-
lation should be
in
accordance with Council Regulation (EC) No 1258/1999
of 17 May 1999 on the financing of the common agri-
cultural policy (3).

financed by the Community

(15) Although the common organisation of the market in flax
and hemp as defined in Regulation (EEC) No 1308/70 has

(1) OJ L 336, 23.12.1994, p. 22.
(2) OJ L 184, 17.7.1999, p. 23.
(3) OJ L 160, 26.6.1999, p. 103.

The common organisation of

1.
in flax and
hemp grown for fibre shall comprise arrangements governing
It shall
the internal market and trade with third countries.
apply to the following products:

the market

CN code

5301

5302

Description

Flax, raw or processed but not spun; flax tow and
waste (including yarn waste and garnetted stock)

True hemp (Cannabis sativa L.), raw or processed but
not spun; tow and waste of true hemp (including yarn
waste and garnetted stock)

(4) OJ L 72, 26.3.1971, p. 2. Regulation last amended by Regulation

(EC) No 1420/98 (OJ L 19, 4.7.1998, p. 7).

(5) OJ L 72, 26.3.1971, p. 4. Regulation last amended by Regulation

(EC) No 713/95 (OJ L 73, 1.4.1995, p. 16).

(6) OJ L 123, 5.6.1971, p. 7.
(7) OJ L 162, 12.6.1982, p. 27. Regulation last amended by the Act of
Accession of Austria, Finland and Sweden and by Regulation (EC)
No 3290/94.

(8) OJ L 191, 19.7.1984, p. 6. Regulation last amended by the Act of
Accession of Austria, Finland and Sweden and by Regulation (EC)
No 3290/94.

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2.

For the purposes of this Regulation:

(a) (cid:145)farmer(cid:146): means farmers as defined in Article 10(a) of
Council Regulation (EC) No 1259/1999 of 17 May 1999
establishing common rules for direct support schemes
under the common agricultural policy (1);

(b) (cid:145)authorised primary processor(cid:146): means a natural or legal
person or a group of natural or legal persons, irrespective
of the legal status conferred on the group and its members
by national law, that has been authorised by the competent
authority of the Member State in the territory of which are
located his or its facilities for producing flax or hemp fibre
or for processing other hemp products not used in human
nutrition.

This Regulation shall apply without prejudice to the

3.
measures laid down in Regulation (EC) No 1251/1999.

TITLE I

INTERNAL MARKET

Article 2

Aid for processing the straw of flax and hemp grown for

1.
fibre shall be introduced.

The aid shall be granted to authorised primary processors on
the basis of the quantity of fibre actually obtained from straw
purchased under a contract concluded with a farmer.

No aid shall be paid to authorised primary processors who are
found to have artificially created the conditions for receiving
the aid, thereby enjoying an advantage that does not conform
to the objectives of this scheme.

The amount of processing aid per tonne of fibre shall be

2.
fixed as follows:

(a) for long flax fibre:

(cid:151) EUR 60 for the 2000/2001 marketing year,

The restrictions referred to in the first subparagraph shall be
fixed by the Member States so as to comply with the national
guaranteed quantities referred to in Article 3.

At

the request of authorised primary processors, an
4.
advance shall be paid on the aid on the basis of the quantity
of fibre obtained.

Article 3

1.
A maximum guaranteed quantity of 75 500 tonnes per
marketing year shall be established for long flax fibre. That
quantity shall be apportioned as follows among the Member
States as national guaranteed quantities:

(cid:151) 13 800 tonnes for Belgium,

(cid:151) 300 tonnes for Germany,

(cid:151) 55 800 tonnes for France,

(cid:151) 4 800 tonnes for the Netherlands,

(cid:151) 150 tonnes for Austria,

(cid:151) 200 tonnes for Finland,

(cid:151) 50 tonnes for each of the other Member States.

2.
A maximum guaranteed quantity of 119 250 tonnes per
marketing year shall be established for short flax fibre and
hemp fibre containing not more than 5 % impurities and
shives. That quantity shall be apportioned as follows among
the Member States as national guaranteed quantities:

(cid:151) 10 350 tonnes for Belgium,

(cid:151) 100 tonnes for Denmark,

(cid:151) 6 300 tonnes for Germany,

(cid:151) 18 700 tonnes for Spain,

(cid:151) 61 350 tonnes for France,

(cid:151) 100 tonnes for Italy,

(cid:151) EUR 120 for the 2001/2002 marketing year,

(cid:151) 5 550 tonnes for the Netherlands,

(cid:151) EUR 180

for
2004/2005 marketing years,

the

2002/2003,

2003/2004

and

(cid:151) 1 750 tonnes for Austria,

(cid:151) EUR 200 from the 2005/2006 marketing

year

onwards,

(b) for short flax fibre and hemp fibre containing not more
than 5 % impurities and shives: EUR 40 for the 2000/2001
to 2004/2005 marketing years.

The quantities of fibre eligible for aid shall be restricted
3.
on the basis of the areas for which a straw purchase contract
has been concluded.

(1) OJ L 160, 26.6.1999, p. 113.

(cid:151) 650 tonnes for Portugal,

(cid:151) 1 000 tonnes for Finland,

(cid:151) 1 150 tonnes for Sweden,

(cid:151) 12 100 tonnes for the United Kingdom,

(cid:151) 50 tonnes for each of the other Member States.

The national guaranteed quantities for short
flax fibre and
hemp fibre, reduced where applicable in accordance with
paragraph 3,
shall cease to apply from the 2005/2006
marketing year.

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Each Member State may transfer part of

its national
3.
guaranteed quantity as referred to in paragraph 1 to its
national guaranteed quantity as referred to in paragraph 2
and vice versa.

is affected by, or is threatened with, serious disturbance likely
to jeopardise the achievement of
in
Article 33 of
the Treaty, appropriate measures may be
applied in trade with third countries until such disturbance
or threat of disturbance has ceased.

the objectives set out

Transfers as referred to in the first subparagraph shall be
carried out on the basis of an equivalence of one tonne of
long flax fibre to five tonnes of short flax fibre and hemp fibre.

Processing aid shall be paid only in respect of the quantities
referred to in paragraphs 1 and 2, respectively, adjusted in
accordance with the first two subparagraphs of this paragraph.

TITLE II

TRADE WITH THIRD COUNTRIES

Article 4

1.
This Article shall apply without prejudice to more
restrictive provisions adopted by Member States in compliance
with the Treaty and the obligations arising from the World
Trade Organisation agreements on agriculture.

2.
All imports of hemp from third countries shall be subject
to the issue of a licence provided the following conditions are
met:

(cid:151) raw true hemp falling within CN code 5302 10 00 and
coming from third countries must meet
the conditions
laid down in Article 5a of Regulation (EC) No 1251/1999,

(cid:151) seeds of varieties of hemp falling within CN codes
1207 99 10 for sowing must be accompanied by proof
that the tetrahydrocannabinol
level does not exceed that
fixed in accordance with Article 5a of Regulation (EC) No
1251/1999,

(cid:151) hemp seeds other than for sowing, falling within CN code
1207 99 91, must have been denatured so they can no
longer germinate.

Imports into the Community of the products specified in the
first and second indents shall be subject to checks to determine
whether the terms of this Article have been complied with.

Article 5

Save as otherwise provided in this Regulation or in provisions
adopted pursuant thereto, the following shall be prohibited in
trade with third countries:

(cid:151) the levying of any charge having equivalent effect to a

customs duty,

The Council, acting by a qualified majority, on a proposal from
the Commission, shall adopt general rules for the application of
this paragraph and shall define the circumstances and limits
within which Member States may adopt protective measures.

If

the situation mentioned in paragraph 1 arises,

the
2.
Commission shall, at the request of a Member State or on its
own initiative, decide upon the necessary measures, which shall
be
and shall be
immediately applicable. If the Commission receives a request
from a Member State, it shall take a decision thereon within
three working days following receipt of the request.

communicated to the Member States

The Commission’s decision may be referred to the
3.
Council by any Member State within three working days of
the day on which it was notified. The Council shall meet
without delay. It may, acting by a qualified majority, amend
or repeal the measure in question within one month following
the day on which it was referred to the Council.

4.
This Article shall be applied having regard to the obli-
gations arising from agreements concluded in accordance with
Article 300(2) of the Treaty.

TITLE III

GENERAL PROVISIONS

Article 7

Save as otherwise provided in this Regulation, Articles 87, 88
and 89 of the Treaty shall apply to the production of, and trade
in, the products listed in Article 1(1).

Article 8

Measures for implementing this Regulation shall be adopted in
accordance with the procedure laid down in Article 9(2) of this
Regulation. These shall include, in particular:

(cid:151) the conditions for authorisation of primary processors,
specifically excluding processors of hemp products used
in human nutrition,

(cid:151) the application of any quantitative restriction or measure

(cid:151) the conditions to be met by approved primary processors

having equivalent effect.

as regards straw purchase contracts,

Article 6

If, by reason of

1.
the Community
market in one or more of the products listed in Article 1(1)

imports or exports,

(cid:151) the criteria to be met,

firstly, by long flax fibre and,
secondly, by short flax fibre and hemp fibre containing
not more than 5 % impurities and shives,

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(cid:151) the conditions
payment,

for

the grant of aid and the advance

TITLE IV

(cid:151) the conditions to be met for fixing the limits referred to in

Article 2(3),

TRANSITIONAL AND FINAL PROVISIONS

Article 11

Regulations (EEC) Nos 1308/70, 619/71, 620/71, 1172/71,
1430/82 and 2059/84 are hereby repealed.

(cid:151) the

conditions

the
guaranteed quantities referred to in Article 3(3).

transfers

between

for

national

Article 12

Such measures may also concern all the necessary inspection
financial
measures
interests against fraud and other irregularities.

the European Community’s

to protect

Article 9

A Management Committee for Flax and Hemp (here-

1.
inafter called the (cid:145)Committee(cid:146)) shall be set up.

2. Where this paragraph is referred to, the management
procedure laid down in Article 4 of Decision 1999/468/EC
shall apply.

The period as provided for
1999/468/EC shall be one month.

in Article 4(3) of Decision

3.
The Committee may consider any question referred to it
by its chairman either on his own initiative or at the request of
the representative of a Member State.

Article 10

The Commission shall adopt, in accordance with the procedure
referred to in Article 9(2):

(cid:151) the measures required to facilitate the transition from the
arrangements laid down in Regulations (EEC) Nos 1308/70
and 619/71 to those established by this Regulation,

(cid:151) the measures required to resolve specific practical problems.
if duly justified - may derogate from

Such measures -
certain parts of this Regulation.

Article 13

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

It shall apply from 1 July 2000.

Regulations (EEC) Nos 1308/70 and 619/71 shall continue to
be applied in relation to the 1998/1999 and 1999/2000
marketing years.

Regulation (EC) No 1258/1999 and the provisions adopted in
implementation thereof shall apply to the products listed in
Article 1.

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