Council Regulation (EC) No 1673/2000 of 27 July 2000 on the common organisation of the markets in flax and hemp grown for fibre
Date: 2000-07-27
Institutions: Council of the European Union
Subjects: common organisation of markets, flax, hemp, textile fibre

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COUNCIL REGULATION (EC) No 1673/2000

of 27 July 2000

on the common organisation of the markets in flax and hemp grown for fibre

THE COUNCIL OF THE EUROPEAN UNION,

advantage that does not conform to the objectives of the
support scheme for straw processing.

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 (1),

(5)

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Economic and Social
Committee (3),

Having regard to the opinion of
Regions (4),

the Committee of

the

Whereas:

(1)

(2)

(3)

(4)

The operation and development of the common market
for agricultural products must be accompanied by the
establishment of a common agricultural policy. Such a
policy must include,
in particular, a common organ-
isation of agricultural markets which may take various
forms, depending on the product.

The aim of the common agricultural policy is to attain
the objectives set out in the Treaty. In the case of flax
and hemp grown for fibre, 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 (5), measures are
needed to govern the internal market, including aid to
primary processors of flax and hemp straw or to farmers
who have the straw processed at their own expense.

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. Likewise, in order to
counter any possible abuse, aid for processing will be
granted only on the basis of the processing of the straw,
or on the basis of the use of the fibres on the market if
the farmer has the straw processed on his behalf.

In order to prevent improper use of Community funds,
no aid should be granted to primary processors or
farmers who are found to have artificially created the
conditions for receiving the aid, thereby enjoying an

(1) OJ C 56 E, 29.2.2000, p. 19.
(2) Opinion delivered on 6 July 2000 (not yet published in the Official

Journal).

(3) OJ C 140, 18.5.2000, p. 3.
(4) Opinion delivered on 14 June 2000 (not yet published in the Offi-

cial Journal).

(6)

(7)

(8)

in flax and hemp (6),

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
production of long flax fibre in conditions similar to
those provided for in Council Regulation (EEC) No
1308/70 of 4 July 1970 on the common organisation of
the aid should be
the market
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 should be fixed at a level that will give new prod-
ucts and their potential outlets the time to reach equilib-
rium. In order to promote only the production of high
quality short flax fibre and hemp fibre, provision should
be made for a maximum percentage of impurities and
shives, together with transitional provisions to enable
the processing industry to adapt to this requirement.

In order to take account of the special status of tradi-
tional flax in certain areas of the Netherlands, Belgium
and France, additional transitional aid must be granted
to the primary processors of straw in respect of the
areas concerned.

In order to prevent any fraudulent
increases in the
quantities eligible for aid, the Member States should fix
maximum quantities on the basis of the areas whose
straw is the subject of processing contracts or commit-
ments.

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

(5) OJ L 160, 26.6.1999, p. 1. Regulation as last amended by Regula-

(6) OJ L 146, 4.7.1970, p. 1. Regulation last amended by Regulation

tion (EC) No 1672/2000 (see p 13 of this Official Journal).

(EC) No 2702/1999 (OJ L 327, 14.12.1999, p. 7.).

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guaranteed quantities will apply to processing aid and
will not affect the system introduced by Regulation (EC)
No 1251/1999. The national guaranteed quantities
should be fixed taking account in particular of the most
recent average areas under fibre flax and hemp, adjusted
where necessary to reflect the areas actually in produc-
tion, multiplied by average fibre yields. With regard to
Member States whose current production is low, provi-
sion should be made for a common quantity to be
apportioned each marketing year in order to enable
them to adapt and develop their production.

(9)

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

(10)

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

(11)

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,
to leave the Community market without
so as not
defence against disturbances which may ensue,
the
Community should be able to take all necessary meas-
ures without delay. All such measures must comply with
the obligations arising from the World Trade Organ-
isation agreements on agriculture (1).

(12)

In order to prevent 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 offer
certain guarantees with regard to the tetrahydrocanna-
imports of hemp seeds
binol content.

In addition,

(1) OJ L 336, 23.12.1994, p. 22.

intended for uses other than sowing must be subjected
to a control system which makes provision for a system
for authorising the importers concerned.

(13) As the market

in flax and hemp grown for

fibre
develops over time, Member States and the Commission
must exchange all the information needed for this Regu-
lation to be applied.

(14)

(15)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (2).

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

(16) Although the common organisation of the market in
flax and hemp as defined in Regulation (EEC) No 1308/
70 has been amended a number of times, it nevertheless
no longer reflects the deep changes that the sector has
undergone. This being so, Regulation (EEC) No 1308/70
and Council Regulation (EEC) No 619/71 of 22 March
1971 laying down general rules for granting aid for flax
and hemp (4) should be repealed. 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 Regula-
tion (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) and Council Regulation (EEC) No 2059/84
of 16 July 1984 laying down general rules relating to
the import restrictions on hemp and hemp seed and
amending Regulation (EEC) No 619/71 in respect of
hemp (8), which are based on Regulations (EEC) No
1308/70 and (EEC) No 619/71, should be repealed and
replaced by the new provisions in this Regulation.

(17)

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 Regula-
tion. In order to deal with that eventuality, provision
should be made for the Commission to adopt the neces-
sary transitional measures. The Commission should also
be authorised to solve specific practical problems.

(2) OJ L 184, 17.7.1999, p. 23.
(3) OJ L 160, 26.6.1999, p. 103.
(4) OJ L 72, 26.3.1971, p. 2. Regulation as 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 as 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 as last amended by Regula-

tion (EC) No 3290/94 (OJ L 349, 31.12.1994, p. 105).

(8) OJ L 191, 19.7.1984, p. 6. Regulation as last amended by Regula-

tion (EC) No 3290/94.

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the

(18) Having regard to the date on which this Regulation
enters into force, provision needs to be made for special
measures for the 2000/2001 marketing year. To that
end,
system in force during the 1999/2000
marketing year should remain applicable until 30 June
2001. However, the amounts of aid should be fixed by
the Commission on the basis of the budget balances as
soon as the areas concerned have been reliably assessed,
and the amount withheld for the financing of measures
promoting the use of flax fibre should be set at zero.

(19)

In order to evaluate the effects of the new measures, the
Commission will submit to the European Parliament and
the Council reports concerning, on the one hand,
in
and the
2003 the national guaranteed quantities
maximum level of impurities and skives in short flax
fibre and hemp fibre, and, on the other hand, in 2005
the impact of processing aid and supplementary aid on
producers and markets,

HAS ADOPTED THIS REGULATION:

Article 1

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

NC code

Description

5301

5302

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)

2.

For the purposes of this Regulation:

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
for which a sale/purchase contract has been concluded with a
farmer.

However:

(a) in cases where the authorised primary processor and the
farmer are one and the same person, the sale/purchase
contract shall be replaced by a commitment by the party
concerned to carry out the processing himself;

(b) in cases where the farmer retains ownership of the straw
which he is having processed under contract by an author-
ised primary processor and proves that he has placed the
fibres obtained on the market, the aid shall be granted to
the farmer.

No aid shall be paid to authorised primary processors or
2.
farmers who are found to have artificially created the condi-
tions 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

3.
fixed as follows:

(a) for long flax fibre:

— EUR 100 for the 2001/2002 marketing year,

— EUR 160 for the 2002/2003, 2003/2004, 2004/2005

and 2005/2006 marketing years,

— EUR 200 from the 2006/2007 marketing

year

onwards.

(a) ‘farmer’ shall mean 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) for short flax fibre and hemp fibre containing not more
than 7,5 % impurities and skives: EUR 90 for the 2001/
2002 to 2005/2006 marketing years.

its legal status under national

(b) ‘authorised primary processor’ shall mean a natural or legal
person or a group of natural or legal persons, irrespective
of
its
members,
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.

law, or that of

This Regulation shall apply without prejudice to the

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

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

However,
for the 2001/2002 to 2003/2004 marketing
years, the Member State may, with reference to traditional
outlets, also decide to grant aid:

— for short flax fibre containing a percentage of impuri-

ties and skives of between 7,5 % and 15 %,

— for hemp fibre containing a percentage of impurities

and skives of between 7,5 % and 25 %.

In such cases, the Member State shall grant the aid in respect of
a quantity which amounts to not more than the quantity
produced, on the basis of 7,5 % of impurities and skives.

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The quantities of fibre eligible for aid shall be limited on
4.
the basis of the areas which were the subject of one of the
contracts or commitments referred to in paragraph 1.

The limits referred to in the first subparagraph shall be fixed by
the Member States so as to comply with the national guaran-
teed quantities referred to in Article 3.

At

5.
the request of authorised primary processors, an
advance shall be paid on the aid on the basis of the quantity of
fibre obtained.

Article 3

1.
A maximum guaranteed quantity of 75 250 tonnes per
marketing year shall be established for long flax fibre and
apportioned among all the Member States as national guaran-
teed quantities. That quantity shall be apportioned as follows:

— 13 800 tonnes for Belgium,

— 300 tonnes for Germany,

— 50 tonnes for Spain,

— 55 800 tonnes for France,

— 4 800 tonnes for the Netherlands,

— 150 tonnes for Austria,

— 50 tonnes for Portugal,

— 200 tonnes for Finland,

— 50 tonnes for Sweden,

graph 5 of this Article, shall cease to apply from the 2006/
2007 marketing year.

3.
In cases where the fibre obtained in one Member State
originates from straw produced in another Member State, the
quantities of fibre concerned shall be offset against the national
guaranteed quantity of the Member State in which the straw
was harvested. The aid shall be paid by the Member State
against whose national guaranteed quantity such an offset is
made.

4. Member States which wish to do so may transfer between
themselves, on a one-off basis and before 30 June 2001, part
of their national guaranteed quantities referred to in paragraphs
1 or 2, adjusted if necessary in accordance with paragraph 5. In
such cases,
inform the Commission, which will
notify the other Member States accordingly

they shall

Each Member State may transfer part of

5.
its national
guaranteed quantity as referred to in paragraph 1 to its national
guaranteed quantity as referred to in paragraph 2 and vice
versa.

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 2,2 tonnes of short flax fibre and hemp fibre.

Processing aid shall be granted 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
and paragraph 4.

— 50 tonnes for the United Kingdom.

Article 4

2.
A maximum guaranteed quantity of 135 900 tonnes per
marketing year shall be established for short flax fibre and
hemp fibre in respect of which aid may be granted. That
quantity shall be apportioned in the form of:

Until the 2005/2006 marketing year, additional aid shall be
granted to the authorised primary processor in respect of areas
under flax in zones I and II as described in the Annex and the
straw production of which has been the subject of:

— a sale/purchase contract or a commitment as referred to in

(a) national guaranteed quantities for the following Member

Article 2(1) and

States:

— 10 350 tonnes for Belgium,

— 12 800 tonnes for Germany,

— 20 000 tonnes for Spain,

— 61 350 tonnes for France,

— 5 550 tonnes for the Netherlands,

— 2 500 tonnes for Austria,

— 1 750 tonnes for Portugal,

— 2 250 tonnes for Finland,

— 2 250 tonnes for Sweden,

— aid for processing into long fibre.

The amount of additional aid shall be EUR 120 per hectare in
zone I and EUR 50 per hectare in zone II.

TITLE II

Trade with third countries

Article 5

— 12 100 tonnes for the United Kingdom.

(b) 5 000 tonnes to be apportioned in national guaranteed
for each marketing year among Denmark,
quantities
Greece,
Italy and Luxembourg. Such apportion-
ment shall be determined on the basis of the areas which
were the subject of one of the contracts or commitments
referred to in Article 2(1).

Ireland,

The national guaranteed quantities for short flax fibre and
hemp fibre, reduced where applicable in accordance with para-

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

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

— raw true hemp falling within CN code 5302 10 00 must
meet the conditions laid down in Article 5a of Regulation
(EC) No 1251/1999,

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— seeds of varieties of hemp falling within CN code
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,

— hemp seeds other than for sowing, falling within CN code
1207 99 91 may be imported only by importers authorised
by the Member State in order to ensure that such seeds are
not intended for sowing.

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 6

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

— the levying of any charge having equivalent effect to a

customs duty,

— the application of any quantitative restriction or measure

having equivalent effect.

Article 7

If, by reason of

imports or exports,

1.
the Community
market in one or more of the products listed in Article 1(1) is
affected by, or is threatened with, serious disturbance likely to
jeopardise the achievement of the objectives set out in Article
33 of the Treaty, appropriate measures may be applied in trade
with third countries until such disturbance or threat thereof has
ceased.

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.

2.
If the situation mentioned in paragraph 1 arises, the
Commission shall, at the request of a Member State or on its
own initiative, decide upon the necessary measures, which shall
be communicated to the Member States and shall be imme-
diately 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.

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 obliga-
tions arising from agreements concluded in accordance with
Article 300(2) of the Treaty.

TITLE III

General provisions

Article 8

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) of this Regulation.

Article 9

The measures necessary for the implementation of this Regula-
tion relating to the matters referred to below shall be adopted
in accordance with the management procedure referred to in
include,
Article 10(2). These shall

in particular:

— the conditions for authorisation of primary processors,
— the conditions to be met by approved primary processors
as regards the sale/purchase contracts and commitments
referred to in Article 2(1),

— the requirements to be complied with by farmers in the

case referred to in Article 2(1)(b),

— the criteria to be met,

firstly, by long flax fibre and,

secondly, by short flax fibre and hemp fibre,

— the methods for calculating the quantities eligible for aid in
the cases referred to in the second subparagraph of Article
2(3)(b),

— the conditions for

the grant of aid and the advance
payment, and in particular proof of the processing of straw,
— the conditions to be met for fixing the limits referred to in

Article 2(4),

— the apportionment of the quantity of 5 000 tonnes referred

to in Article 3(2)(b),

— the conditions for transfer between the national guaranteed

quantities referred to in Article 3(5),

— the conditions for the granting of additional aid referred to

in Article 4.

Such measures may also concern all the necessary inspection
measures to protect the Community's financial interests against
fraud and other irregularities.

Article 10

The Commission shall be assisted by the Management
1.
Committee for Natural Fibres (hereinafter called the ‘Commit-
tee’).

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

3.
The Committee may examine any question raised by its
Chairman, either on the tatter's initiative or at the request of
the representative of a Member State.

4.

The Committee shall adopt its rules of procedure.

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Article 11

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

TITLE IV

Transitional and final provisions

Article 12

1.
For the 2000/2001 marketing year, the amounts of aid
for flax and hemp produced in the Community shall be fixed
not later than 31 October 2000 in accordance with the proce-
dure laid down in Article 10(2).

These amounts shall be determined by applying to the amounts
in force for the 1999/2000 marketing year a coefficient equal
to the ratio between

— average expenditure per hectare corresponding to EUR 88
million for all areas resulting from crop declarations, and
— average expenditure of EUR 721 per hectare estimated for

the 1999/2000 marketing year.

However, the amounts of aid for the 2000/2001 marketing
year may not exceed those fixed for the 1999/2000 marketing
year.

2.
For the 2000/2001 marketing year, the amount to be
withheld from the aid for flax for the financing of the measures
promoting the use of flax fibre shall be fixed at EUR 0 per
hectare.

The 2000/2001 marketing year shall end on 30 June

3.
2001.

Article 13

Regulations (EEC) No 1308/70, (EEC) No 619/71, (EEC) No
620/71, (EEC) No 1172/71, (EEC) No 1430/82 and (EEC) No
2059/84 shall be repealed on 1 July 2001.

— the measures required to resolve specific practical prob-
lems. Such measures, if duly justified, may derogate from
certain parts of this Regulation.

Article 15

1.
Not later than 31 December 2003, the Commission shall
submit a report to the European Parliament and the Council, if
necessary accompanied by proposals, on production trends in
the various Member States and the impact of the reform of the
the market on the outlets and
common organisation of
economic viability of the sector.
It shall also examine the
maximum content of impurities and shives applicable to short
flax fibre and hemp fibre.

Should the need arise, the report shall serve as a basis for a
re-apportionment of, and possible increase in, the national
guaranteed quantities. In particular, the Commission shall take
account of the level of production, processing capacity and
outlets on the market.

In 2005 the Commission shall submit a report to the
if

2.
European Parliament and the Council on processing aid,
necessary accompanied by proposals.

The report shall
processing aid,

in particular on

include an assessment of

the impact of

— the position of producers as regards areas sown and prices

paid to them,

— market trends for textile fibres and the development of new

products,

— the processing industry.

The report shall indicate, in the light of alternative production,
whether the industry is able to function with the guidelines laid
down. It shall also examine the possibility of putting on to a
permanent footing, beyond the 2005/2006 marketing year,
processing aid per tonne of short flax fibre and hemp fibre and
additional aid per hectare of flax, as referred to in Article 4.

Article 16

Article 14

The Commission shall adopt, in accordance with the procedure
referred to in Article 10(2):

— the measures required to facilitate the transition from the
arrangements laid down in Regulations (EEC) No 1308/70
and (EEC) No 619/71 to those established by this Regula-
tion,

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

Articles 1 to 11 shall apply from the 2001/2002 marketing
year onwards.

Regulations (EEC) No 1308/70 and (EEC) No 619/71 shall
continue to be applied in relation to the 1998/1999, 1999/
2000 and 2000/2001 marketing years.

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

Done at Brussels, 27 July 2000.

For the Council

The President

H. VÉDRINE

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ANNEX

ZONES ELIGIBLE FOR THE AID REFERRED TO IN ARTICLE 4

ZONE I

1. The territory of the Netherlands,

2. The following Belgian communes: Assenede, Beveren-Waas, Blankenberge, Bredene, Brugge, Damme, De Haan, De
Panne, Diksmuide (except Vladslo and Woumen), Gistel, Jabbeke, Knokke-Heist, Koksijde, Lo-Reninge, Middelkerke,
Nieuwport, Oostende, Oudenburg, Sint-Gillis-Waas (Meerdonk only), Sint-Laureins, Veurne and Zuienkerke.

ZONE II

1. Areas of Belgium other than those included in Zone I.

2. The following areas of France:

— the department of Nord,
— the districts of Béthune, Lens, Calais, Saint-Omer and the canton of Marquise in the department of Pas-de-Calais,
— the districts of Saint-Quentin and Vervins in the department of Aisne,
— the district of Charleville-Mézières in the department of Ardennes.