Commission Regulation (EC) No 245/2001 of 5 February 2001 laying down detailed rules for the application of Council Regulation (EC) No 1673/2000 on the common organisation of the markets in flax and hemp grown for fibre
Date: 2001-02-05
Institutions: European Commission
Subjects: common organisation of markets, flax, hemp, textile fibre

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COMMISSION REGULATION (EC) No 245/2001

of 5 February 2001

laying down detailed rules for the application of Council Regulation (EC) No 1673/2000 on the
common organisation of the markets in flax and hemp grown for fibre

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1673/2000 of 27
July 2000 on the common organisation of the markets in flax
and hemp grown for fibre (1), and in particular Article 9
thereof,

Having regard to Council Regulation (EC) No 2799/98 of 15
December 1998 establishing agrimonetary arrangements for
the euro (2), and in particular Article 3 thereof,

Whereas:

(1)

(2)

(3)

(4)

Regulation (EC) No 1673/2000 provides inter alia for
measures relating to the internal market in flax and
hemp grown for fibre, comprising aid to authorised
primary processors of
flax and hemp straw and to
farmers who have straw processed on their own
account, the detailed implementing rules for which must
be laid down.

The conditions governing authorisation of primary
processors and the obligations to be met by farmers
who have straw processed on their own account must
be laid down. The information that must be shown in
sale/purchase contracts, processing commitments and
processing contracts covering straw as referred to in
Article 2(1) of Regulation (EC) No 1673/2000 must also
be specified.

Some primary processors of flax straw mainly produce
long flax fibre, together, as a sideline, with short flax
fibre containing a high percentage of impurities and
shives. Where they do not have suitable facilities for
cleaning such secondary products, they may have the
short fibre cleaned under contract by another operator.
fibre under
In such circumstances,
contract should be regarded as an operation carried out
by the primary processor authorised in respect of short
flax fibre. The conditions to be met by the operators
concerned, in particular with a view to controls, should
accordingly be laid down.

the cleaning of

flax or hemp grown for

To ensure the eligibility of these products for aid, areas
under
fibre from which
processed straw comes must be able to be identified
using the system for identifying agricultural parcels
provided for in Council Regulation (EEC) No 3508/92 of

(1) OJ L 193, 29.7.2000, p. 16.
(2) OJ L 349, 24.12.1998, p. 1.

27 November 1992 establishing an integrated adminis-
tration and control system for certain Community aid
schemes (3), as last amended by Regulation (EC) No
1593/2000 (4). To that end, a link must be established
between straw eligible for processing aid and the areas
for which ‘area’ aid applications as provided for in
Article 4 of 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 (5), as last
amended by Regulation (EC) No 2721/2000 (6), have
the marketing year
been submitted in respect of
concerned.

(5) With a view to ensuring sound administrative manage-
ment while adapting to the special conditions applying
on the markets for flax and hemp, the period during
which flax and hemp straw grown for fibre can be
processed and, where applicable, marketed should be
determined.

(6) Where Member States decide to grant aid on short flax
fibre or hemp fibre containing more than 7,5 % impuri-
ties and shives, a method of calculation allowing the
quantity produced to be expressed in terms of an
equivalent quantity with a 7,5 % impurities and shives
content should be laid down.

(7) With a view to helping to ensure that the stabiliser
mechanism functions properly, provision should be
made to limit the quantities of fibre on which processing
aid can be granted in respect of a marketing year to the
quantity arrived at by multiplying the number of
hectares covered by contracts or processing commit-
ments by a unit quantity per hectare. That unit quantity
is to be determined by the Member State on the basis of
the national guaranteed quantities established and of the
hectares cultivated.

(8)

Given the variations in the national guaranteed quant-
ities that may result from the flexibility introduced by
Article 3 of Regulation (EC) No 1673/2000, detailed
rules should be laid down for establishing such national
guaranteed quantities for each marketing year, taking
account of any adjustments that may prove necessary
with a view to apportioning the national guaranteed
the
quantities
processing aid.

suitably among the beneficiaries of

(3) OJ L 355, 5.12.1992, p. 1.
(4) OJ L 182, 21.7.2000, p. 4.
(5) OJ L 391, 31.12.1992, p. 36.
(6) OJ L 314, 14.12.2000, p. 8.

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(9)

Processing aid is to be granted subject to the conclusion
of a contract or commitment as referred to in Article 2
of Regulation (EC) No 1673/2000. In addition, transfers
between national guaranteed quantities and the unit
quantities per hectare must be fixed in good time by the
Member State on the basis of the areas covered by
contracts or commitments. Provision should be made
for
information in such contracts or
commitments to be forwarded by the operators to the
competent authorities of the Member State at the start of
processing operations. In order to permit some flexi-
bility in the trade concerned, the possibilities for trans-
ferring contracts among authorised primary processors
should be subject to a limit.

the relevant

of long flax fibre produced per hectare covered by a
contract or a commitment should accordingly be estab-
lished so that the circumstances under which that condi-
tion is met can be determined.

(14) A system of administrative and on-the-spot checks is
vital for the proper conduct of the operations. The items
that must be checked and the minimum number of
on-the-spot checks to be carried out per marketing year
must be specified.

(10) With a view to sound management of the aid scheme,
the information that must be forwarded by the operators
to the competent authorities of the Member State and
the notifications to be made to the Commission by the
Member States must be stipulated.

(15)

The consequences of any irregularities observed must be
laid down. They must be sufficiently severe as to
discourage any unlawful use of Community aid while
complying with the principle of proportionality.

(11)

In order to manage a scheme based on aid granted on
the basis of the quantities of
fibre produced over a
period of 22 months, provision should be made for the
lodging, at the start of processing operations for a given
marketing year, of aid applications covering fibre to be
obtained, the quantities of which are to be indicated
periodically thereafter.

(12) On account of the possible adjustments to the national
guaranteed quantities and the unit quantities per hectare,
the total quantities of fibre on which the aid can be
granted are known only after processing is completed.
Provision must accordingly be made for advances on the
aid to be paid to authorised primary processors on the
basis of the quantities of fibre obtained periodically. In
order to ensure that amounts due where irregularities are
observed are actually paid, such advance payments
should be made subject to the lodging of a security.
Such securities must comply with certain provisions of
Commission Regulation (EEC) No 2220/85 of 22 July
the
1985 laying down common detailed rules for
application of the system of securities for agricultural
products (1), as last amended by Regulation (EC) No
1932/1999 (2).

(13) Additional aid as provided for in Article 4 of Regulation
(EC) No 1673/2000 is to be granted only in respect of
areas the straw produced from which has qualified for
aid for processing into long flax fibre. A minimum yield

(16)

In order to bring the time when the fibre is obtained
sufficiently close to the operative event for the exchange
rate for advance payments and processing aid, that event
must take place on the last day of each period for the
notification of the quantities of fibre obtained.

(17) With a view to a smooth switchover to the new arrange-
ments, transitional provisions must be laid down in the
2001/02 marketing year as regards the granting of
authorisation to primary processors. The competent
authorities must in particular know the exact quantities
in storage at the time of application of the new aid
scheme in order to prevent abuses and provision must
therefore be made for a specific notification to that end
to be made by the operators concerned.

(18)

Regulation (EC) No 1673/2000 introduces a new
common organisation of the markets in flax and hemp
grown for fibre from the 2001/02 marketing year and
repeals, as from 1 July 2001, the Council Regulations on
the common organisation of the marker in force in that
sector until the 2000/01 marketing year. As from the
2001/02 marketing year, Commission Regulations (EEC)
No 1215/71 of 10 June 1971 on detailed rules
concerning the outline provisions for contracts for the
sale of flax and hemp straw (3), (EEC) No 1523/71 of 16
July 1971 on communications between Member States
and the Commission on flax and hemp (4), (EEC) No
1524/71 of 16 July 1971 laying down detailed rules
flax and hemp
concerning private storage aid for
fibres (5), (EEC) No 1164/89 of 28 April 1989 laying

(1) OJ L 205, 3.8.1985, p. 5.
(2) OJ L 240, 10.9.1999, p. 11.

(3) OJ L 127, 11.6.1971, p. 22.
(4) OJ L 160, 17.7.1971, p. 14.
(5) OJ L 160, 17.7.1971, p. 16.

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down detailed rules concerning the aid for fibre flax and
hemp (1), (EEC) No 1784/93 of 30 June 1993 fixing the
adjustment coefficients for aid for fibre flax (2) and (EC)
No 452/1999 of 1 March 1999 fixing the minimum
yields for the granting of aid for the production of fibre
flax and hemp (3) should accordingly be repealed.

(19)

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

HAS ADOPTED THIS REGULATION:

Article 1

Purpose

The detailed rules for the application of the common organ-
isation of the markets in flax and hemp grown for fibre estab-
lished by Regulation (EC) No 1673/2000 shall be as laid down
herein.

Article 2

Definitions

For the purposes of this Regulation:

— ‘persons treated as processors’ means farmers who,

in
accordance with Article 2(1)(b) of Regulation (EC) No
1673/2000, have concluded contracts with an authorised
primary processor
to have straw belonging to them
processed into fibre,

— there are three types of fibre as follows:

(a) ‘long flax fibre’ means flax fibres obtained by complete
separation of the fibres and the woody parts of the
stalk that are at least 50 cm long on average after
in
scutching and are arranged in parallel
bundles, sheets or slivers;

strands

(b) ‘short flax fibre’ means flax fibres other than as referred
to in (a) that are obtained by at least partial separation
of the fibres and the woody parts of the stalk;

(c) ‘hemp fibre’ means hemp fibres obtained by at least
partial separation of the fibres and the woody parts of
the stalk.

Article 3

Authorisation of primary processors

Primary processors must submit applications for author-

1.
isation to the competent authorities including at least:

(a) a description of the undertaking and of the full range of
products obtained by processing flax and hemp straw;

(1) OJ L 121, 29.4.1989, p. 4.
(2) OJ L 163, 6.7.1993, p. 7.
(3) OJ L 54, 2.3.1999, p. 11.

(b) a description of the processing plant and equipment, giving
specifications

location and technical

their

details of
covering:

— energy consumption and the maximum quantities of
flax and hemp straw that can be processed per hour
and per year,

— the maximum quantities of long flax fibre, short flax
fibre and hemp fibre that can be obtained per hour and
per year,

— the indicative quantities of

flax and hemp straw
required to obtain 100 kg of each product referred to
in (a);

(c) a description of the storage facilities, giving details of their
location and capacity in tonnes of flax and hemp straw and
fibre.

The Member State may waive the requirement on primary
processors approved for the 2000/01 marketing year under
Article 3 of Council Regulation (EEC) No 619/71 (4) to submit
information that is already available, provided that the primary
processors in question declare that there has been no change in
the situation.

Applications for authorisation shall

2.
taking applying from the date of submission to:

include an under-

— store separately by marketing year of harvest of the straw
concerned and by Member State of harvest, flax straw,
hemp straw, long flax fibre, short flax fibre and hemp fibre:

(a) covered by all sale/purchase contracts and processing

commitments combined,

(b) covered by each processing contract concluded with

persons treated as processors,

(c) from all other suppliers combined and, where applic-
able, corresponding to batches of fibre obtained from
straw falling within (a) but not to be covered by an aid
application,

— keep daily records of stocks, linked regularly to financial
accounts, and of the information specified in paragraph 4,
together with supporting documents as specified by the
Member State for the purpose of controls,

— notify the competent authority of any changes in the infor-

mation covered by paragraph 1,

— undergo any checks

required under

the aid scheme

provided for in Regulation (EC) No 1673/2000.

After an on-the-spot inspection to check that the infor-
3.
mation covered by paragraph 1 tallies with the facts,
the
competent authority shall grant primary processors author-
isation covering the types of fibre meeting the conditions for
eligibility for the aid which they may produce and shall allocate
an authorisation number to each.

(4) OJ L 72, 26.3.1971, p. 2.

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Authorisation shall be granted within two months of submis-
sion of applications.

Where there is a change in one or more items of information
covered by paragraph 1, the competent authority shall confirm
or adjust authorisations, where necessary after an on-the-spot
check,
the
change. However, any adjustment affecting the types of fibre
covered by authorisations granted may take effect only from
the following marketing year.

in the month following that of notification of

4.
In connection with the authorisation of primary proces-
sors in respect of long flax fibre and simultaneously in respect
of short flax fibre, the Member States may allow short flax fibre
to be cleaned under the conditions laid down in this paragraph
and if it considers the control arrangements to be satisfactory,
so that the fibre complies with the impurity and shive limits
laid down in Article 2(3)(b) of Regulation (EC) No 1673/2000.

In such cases primary processors shall state their intention to
make use of the provisions of this paragraph in their applica-
tions for authorisation as provided for in paragraph 1.

Only one cleaner of short flax fibre may be granted author-
isation per authorised primary processor per marketing year
concerned.

Before 1 February in respect of each marketing year, authorised
primary processors shall present
the competent authorities
with a contract for the cleaning of short flax fibre, including at
least:

(a) the quantities entering the undertaking and covered by each
contract or commitment as referred to in Article 5 and,
where applicable, from each other supplier;

(b) the quantities of straw processed and the quantities of fibre

obtained;

(c) the estimated losses and the quantities destroyed, with justi-

fications;

(d) the quantities leaving the undertaking, broken down by

consignee;

(e) the quantities in each store.

Authorised primary processors must be in possession of certi-
ficates of delivery or take-over from the supplier or consignee
concerned or other equivalent document accepted by the
Member State covering all consignments of straw and fibre
entering or leaving the undertaking and not covered by a
contract or commitment as referred to in Article 5. Authorised
primary processors shall keep a record of the names or busi-
ness names and addresses of all suppliers and consignees.

Article 4

Obligations of persons treated as processors

Persons treated as processors must:

(a) be in possession of a contract with an authorised primary
processor for the processing of straw into long flax fibre,
short flax fibre and/or hemp fibre;

(a) the date of conclusion of the contract and the marketing
year corresponding to the harvest of the straw from which
the fibre concerned has been obtained;

(b) keep a register showing the following from the beginning
of the marketing year in question in respect of each day
concerned:

(b) the primary processor's authorisation number and, in the
case of cleaners of short flax fibre, their names, business
names and addresses and the location of the plant;

(c) a statement to the effect that the cleaner of short flax fibre

undertakes to:

(i) store cleaned and uncleaned short flax fibre separately

by cleaning contract,

(ii) keep separately by cleaning contract, daily records of
the quantities of uncleaned short flax fibre entering the
undertaking, the quantities of cleaned short flax fibre
obtained, and the quantities of each in storage,

(iii) keep supporting documents as

specified by the
Member State for
the purposes of controls and
undergo any checks required under this Regulation.

Cleaners' undertakings as referred to in point
(c) shall be
deemed to be undertakings of primary processors under their
authorisations.

— the quantities of flax and hemp straw grown for fibre
obtained and delivered under each processing contract,

— the quantities of long flax fibre, short flax fibre and/or

hemp fibre obtained,

— the quantities of long flax fibre, short flax fibre and/or
hemp fibre sold or transferred, with the names and
addresses of the consignees;

(c) keep the supporting documents stipulated by the Member

State for the purpose of controls; and

(d) agree to undergo any checks provided for under this aid

scheme.

Article 5

Contracts

Sale/purchase

straw, processing
1.
commitments and processing contracts as referred to in Article
2(1) of Regulation (EC) No 1673/2000 shall stipulate at least:

contracts

covering

5.
Stock records of authorised primary processors shall
specify, by day and by category of straw or type of fibre stored
separately:

(a) the date of conclusion of the contract and the marketing

year corresponding to the harvest concerned;

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(b) the primary processor's authorisation number, the farmer's
identification number under the integrated administration
and control system provided for in Regulation (EEC) No
3508/92 and their names and addresses;

(c) details identifying the agricultural parcel(s) concerned in
accordance with the system for identifying agricultural
parcels provided for under the integrated administration
and control system;

In respect of the first six months of the marketing year
2.
and each four-month period thereafter, authorised primary
processors and persons treated as processors shall declare the
following to the competent authorities by the end of
the
following month as regards each category of products stored
separately:

(a) the quantities of fibre produced and covered by aid applica-

tions;

(d) the areas under flax grown for fibre and those under hemp

(b) the quantities of other fibres produced;

grown for fibre.

2.
Before 1 January of the marketing year concerned, sale/
purchase or processing contracts covering straw may be trans-
ferred to an authorised primary processor other than the one
who originally concluded the contract, with the signed agree-
ment of the farmer and of the authorised primary processors
transferring the contract between them.

After 1 January of the marketing year concerned, transfers of
contracts as provided for in the first subparagraph may take
place only under exceptional circumstances, backed up by duly
justified supporting evidence and with the authorisation of the
Member State.

Article 6

Information to be provided by operators

the latest

Before the date set by the Member State and by 20
1.
September at
the
marketing year in question, authorised primary processors and
persons treated as processors shall provide the competent
authorities with:

following the beginning of

— a list of all sale/purchase contracts, processing commit-
ments and processing contracts as referred to in Article 5
for that marketing year, broken down into flax and hemp
and mentioning the farmer's identification number under
the integrated administration and control system and the
parcels concerned, and

— a declaration of the total areas under flax and the total areas
under hemp covered by sale/purchase contracts, processing
commitments and processing contracts.

However, the Member State may require a copy of all docu-
ments concerned instead of the list referred to in the first
indent of the first subparagraph.

(c) the aggregate total quantity of straw that has entered the

undertaking;

(d) the quantities in storage;

(e) where appropriate, a list drawn up in accordance with the
first
indent of paragraph 1 of sale/purchase contracts
covering straw that have been transferred in accordance
with the first subparagraph of Article 5(2), giving the
names of transferees and of transferors.

For each period concerned, together with their declarations as
provided for in the first subparagraph persons treated as
processors shall submit supporting evidence concerning quant-
ities of fibre placed on the market and covered by aid applica-
tions. Such supporting evidence shall be specified by the
Member State and shall include at least copies of sales invoices
covering flax and hemp fibre and an attestation from the
authorised primary processor who has processed the straw
certifying the quantities and types of fibre obtained.

After notifying the Member State, authorised primary proces-
sors and persons treated as processors may stop sending the
declarations as provided for in this paragraph concerning
quantities entering and leaving the undertaking and quantities
processed where such operations have ceased definitively for
the marketing year concerned.

Before 1 May following the marketing year in question,
3.
authorised primary processors shall
inform the competent
authorities of the main ways in which the fibre and other
products obtained have been used.

Article 7

Entitlement to aid

1.
Aid for processing flax and hemp straw as provided for in
Article 2 of Regulation (EC) No 1673/2000 shall be payable on
flax and hemp fibre only where it:

Where certain processing contracts or processing commitments
relate to areas located in a Member State other than that in
which the primary processor is authorised, the information
specified in the first
subparagraph relating to the areas
concerned shall also be supplied by the party concerned to the
Member State in which harvest takes place.

— comes from straw covered by sale/purchase contracts,
processing commitments or processing contracts as referred
to in Article 5 covering parcels under flax or hemp grown
for fibre and by ‘area’ aid applications as referred to in
Article 4 of Regulation (EEC) No 3887/92 submitted in
respect of the marketing year concerned, and

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— is obtained before l May following the end of the marketing
year in question by an authorised primary processor and, in
the case of persons treated as processors, is placed on the
market before that date.

2. Where the Member State decides to grant aid on short
flax fibre or hemp fibre containing more than 7,5 % impurities
and shives,
in accordance with Article 2(3)(b) of Regulation
(EC) No 1673/2000 the quantity ‘Q’ on which the aid is
granted shall be calculated by applying the formula:

Q = P * [(100 – x)/(100 – 7,5)]

where ‘P’ stands for the quantity of eligible fibre obtained with
not more than the authorised percentage ‘x’ of impurities and
shives.

Article 8

National guaranteed quantities

The 5 000 tonnes of short flax fibre and hemp fibre for
1.
apportioning as national guaranteed quantities in accordance
with Article 3(2)(b) of Regulation (EC) No 1673/2000 shall be
allocated before 16 November for the marketing year in
progress on the basis of information forwarded to the Commis-
sion by the Member States concerned before 16 October and
covering:

— the areas covered by sale/purchase contracts, processing
submitted in

and processing contracts

commitments
accordance with Article 6, and

— the estimated flax and hemp straw and fibre yields.

In order to establish the national quantities on which
2.
processing aid may be granted in respect of a given marketing
year, before 1 January of the marketing year in question the
Member States shall determine the transfers of national guaran-
teed quantities made in accordance with Article 3(5) of Regula-
tion (EC) No 1673/2000.

However, for the purposes of applying paragraph 4 of this
Article, before 1 August following the time limit laid down in
the second indent of Article 7(1) the Member State may adjust
the quantities transferred.

3.
For the purposes of applying Article 2(4) of Regulation
(EC) No 1673/2000, the quantity of long flax fibre, short flax
fibre and hemp fibre on which processing aid may be granted
in respect of a marketing year to an authorised primary
processor or a person treated as a processor shall be limited to
the number of hectares of parcels covered by a sale/purchase
contract or a processing commitment or, as the case may be, a
processing contract, multiplied by a unit quantity to be deter-
mined.

subparagraph for the whole of its territory for each of the three
types of fibre concerned.

4. Where the quantities of fibre on which aid is payable to
certain authorised primary processors or certain persons
treated as processors are below the limits applicable to them
pursuant to paragraph 3, the Member State may, after receiving
all declarations as provided for in Article 6(2)(a) in respect of
the marketing year concerned, increase the unit quantities as
referred to in paragraph 3 so as to reallocate the quantities
available to the other authorised primary processors or persons
treated as processors whose eligible quantities exceed the limits
applicable to them.

5.
The Commission shall publish the information forwarded
by the Member States pursuant to Article 15 concerning the
quantities referred to in paragraph 2 and the unit quantities as
referred to in paragraphs 3 and 4 in the ‘C’ series of the Official
Journal of the European Communities.

Article 9

Aid applications

Authorised primary processors shall submit applications
1.
for aid for processing straw to the competent authorities in
respect of long flax fibre, short flax fibre and hemp fibre to be
obtained from straw from the marketing year concerned before
the time limit laid down in the second indent of Article 7(1).
Such applications shall be submitted by the date laid down in
Article 6(1) at the latest.

Where the fibre is to be obtained partly from straw produced
in which the primary
in a Member State other than that
processor is authorised, the aid applications shall be submitted
to the competent authority in the Member State where the
straw is harvested and a copy shall be forwarded to the
Member State where the primary processor is authorised.

long flax fibre, short

2.
Persons treated as processors shall submit applications for
aid for processing straw to the competent authorities in respect
of
flax fibre and hemp fibre to be
obtained from straw from the marketing year concerned and
placed on the market before the time limit laid down in the
second indent of Article 7(1). Such applications shall be
submitted by the date laid down in Article 6(1) at the latest.

3.

Aid applications shall

include at least:

— the applicants' names, addresses and signatures and, where
applicable, the authorisation numbers of primary proces-
sors or the identification numbers under the integrated
administration and control system of persons treated as
processors,

— a statement that the quantities of long flax fibre, short flax
fibre and hemp fibre covered by the application will be
covered by declarations as provided for in Article 6(2)(a).

Before 1 January of the marketing year in progress the Member
State shall determine the unit quantity referred to in the first

For the purposes of granting the aid, declarations as provided
for in Article 6(2)(a) shall form an integral part of aid applica-
tions.

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Article 10

Advances on the aid

Article 12

Payment of aid

1. Where applications for advances are submitted with
declarations of fibre obtained as provided for in Article 6(2)(a),
the advances shall be paid to the authorised primary processors
by the end of the month following that of submission of the
an aid application has been
declaration, provided that
submitted in accordance with Article 9. Without prejudice to
the limit laid down in Article 8(3), advances shall be equal to
80 % of
fibre
declared.

the aid corresponding to the quantities of

2.
Advances shall be paid only where no irregularity has
been found to have been committed by the applicant in respect
of the marketing year concerned under the controls provided
for in Article 13 and where a security equal to 110 % of the
advance has been lodged.

Securities shall be released as follows:

— 75 % of the security shall be released six months after the

advance is paid, and

— the security shall be released in full between the first and
the 10th day following that of granting of the aid.

However:

— where short flax fibre is cleaned under contract, the rele-
vant security shall be released between the first and the
10th day following that of granting of the aid in proportion
to the quantities on which the Member State has granted
the processing aid,

— where irregularities are observed, the total securities avail-
the authorised primary processor
able in respect of
concerned and the marketing year in question shall be
released between the first and the 10th day following that
of granting of the aid in proportion to the total quantities
on which the Member State has granted processing aid.

3.
Article 3 and Titles II, III and VI of Regulation (EEC) No
2220/85 shall apply to securities as referred to in this Article.

Article 11

Additional aid

Additional aid as provided for in Article 4 of Regulation (EC)
No 1673/2000 shall be granted to primary processors of long
flax fibre who are authorised in respect of areas located in the
zones listed in the Annex to that Regulation and covered by
sale/purchase contracts and processing commitments submitted
in accordance with Article 6(1) of this Regulation.

However, the area in respect of which additional aid is granted
shall not exceed that corresponding to the quantity of long flax
fibre meeting the conditions for eligibility for the processing
aid and obtained in respect of the marketing year concerned,
divided by a yield of 680 kg of long flax fibre per hectare.

Processing aid and, where appropriate, additional aid shall
1.
be granted once all the checks laid down have been performed
and after the definitive quantities of fibre eligible for the aid
have been determined in respect of
the marketing year
concerned.

2.
Before 1 August following the time limit laid down in the
second indent of Article 7(1), processing aid and, where appro-
priate, additional aid shall be paid by the Member State on
whose territory the flax or hemp straw has been harvested.

Article 13

Controls

Controls shall be performed to ensure compliance with
in particular

1.
the conditions for granting the aid and shall
involve:

— checking compliance with the conditions for authorising
primary processors and fulfilment of their obligations by
persons treated as processors,

— comparing information on agricultural parcels referred to
in sale/purchase contracts, processing commitments and
processing contracts to see whether it
tallies with that
determined in accordance with Regulation (EC) No 1251/
1999,

— checking information in support of quantities covered by
aid applications from authorised primary processors and
persons treated as processors.

Checks of authorised primary processors carried out by the
competent authorities of Member States
the
processing of all flax and hemp straw grown for fibre produced
in the Community.

shall cover

2.
On-the-spot inspections conducted for the purposes of
controls as provided for in paragraph 1 shall be decided by the
competent authorities,
in particular on the basis of a risk
analysis, with a view to checking at least 75 % of authorised
primary processors and 10 % of persons treated as processors
per marketing year. However, in no case may the number of
on-the-spot inspections conducted in any Member State be less
than the total number of hectares declared as under flax and
hemp in that Member State, divided by 750.

On-the-spot inspections shall also cover all cleaners of short
flax fibre who have concluded contracts with authorised
primary processors for the cleaning of fibre.

On-the-spot

3.
checking:

inspections

shall

in particular

involve

— plant, stocks and fibre obtained,

— stock records and financial accounts,

— the energy consumed by the various means of production

and documents relating to labour employed, and

— any commercial documents relevant to controls.

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In the event of doubt as to the eligibility of fibre, and in
particular as regards the impurities content of short flax fibre
or hemp fibre, a representative sample shall be taken from the
batches called into question and a precise determination carried
out of
the relevant characteristics. Where applicable and
depending on the circumstances, the Member State shall deter-
mine the quantities that are not eligible among those covered
by aid applications.

as provided for in Article 6(1) submitted more than 25 days
late shall be inadmissible.

5. Where applicable, the additional aid referred to in Article
11 shall be reduced by the same percentage as that applied to
the total processing aid granted in respect of the marketing
year concerned.

In cases as referred to in Article 3(3) of Regulation (EC) No
1673/2000, the Member State conducting the inspection shall
send the findings immediately to the Member State that is to
pay the aid.

Article 15

Notifications

Article 14

Penalties

1. Where checks show that undertakings entered into in
authorisation applications are not fulfilled, authorisation shall
be withdrawn immediately and, notwithstanding Article 3(3),
primary processors whose authorisation has been withdrawn
shall not be granted any further authorisation before the
second marketing year beginning after the date of the check or
the date on which any failure to fulfil such undertakings has
been established.

2. Where a false declaration is made deliberately or as a
result of serious negligence or where the primary processor has
signed sale/purchase contracts covering straw or has entered
into processing commitments covering a number of hectares
which would normally provide a significantly higher output
than can be processed in accordance with the technical specifi-
cations shown in his authorisation, the authorised primary
processor or person treated as a processor shall not qualify for
processing aid or, where applicable,
for additional aid as
provided for in Article 4 of Regulation (EC) No 1673/2000 in
respect of the marketing year concerned and the following
marketing year.

3. Where quantities of long flax fibre, short flax fibre or
hemp fibre covered by aid applications are found to exceed
those meeting the conditions for eligibility for the aid and
actually obtained in respect of a period as referred to in Article
6(2), the aid that may be granted on each type of fibre shall,
without prejudice to Article 8(3), be calculated on the basis of
the quantities actually eligible in respect of the marketing year
concerned, less twice the difference with those covered by aid
applications.

force majeure,

in the event of

Except in cases of

late submission or

4.
late
submission of aid applications as provided for in Article 9 or
of
information as
provided for in Article 6, the aid applied for and which the
party concerned would have been entitled to if the application
had been submitted or declared by the deadline shall be
reduced by 1 % per working day. Applications and information

late declaration of

In the second month following the end of each period as
the

1.
referred to in the first subparagraph of Article 6(2),
Member States shall notify the Commission of:

(a) the total quantities of long flax fibre, short flax fibre and
hemp fibre, adjusted, where applicable, in accordance with
Article 7(2),
for which aid applications have been
submitted in the period concerned;

(b) the quantities sold each month and the relevant prices that
may be recorded on the most important markets at the
production stage for the qualities of fibre of Community
origin that are most representative of the market;

(c) a summary statement of the quantities of long flax fibre,
short flax fibre and hemp fibre obtained from straw of
Community origin in storage at the end of the period
concerned, broken down by marketing year.

By 31 January at

2.
the
marketing year in progress, the Member States shall notify the
Commission of:

the latest and in respect of

(a) transfers of national guaranteed quantities made in accord-
ance with Article 3(5) of Regulation (EC) No 1673/2000
and the national guaranteed quantities resulting from such
transfers;

(b) a summary statement of areas under flax and hemp grown
for fibre and covered by contracts or commitments as
referred to in Article 2(1) of Regulation (EC) No 1673/
2000;

(c) the unit quantities determined in accordance with Article

8(3);

(d) estimated production of flax and hemp straw and fibre;

(e) the number of authorised processing undertakings and
their total processing capacity in terms of the various types
of fibre in respect of the marketing year in progress;

(f) where applicable, the number of contract cleaners of short

flax fibre.

3.
By 30 September of each year at the latest, the Member
States shall send the Commission the following information
relating to the next-to-last marketing year:

(a) a summary statement of the total quantities of long flax
flax fibre and hemp fibre covered by aid

fibre, short
applications:

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1. and recognised as eligible for processing aid as provided
for in Article 2(1) of Regulation (EC) No 1673/2000;

converting the advance and the processing aid for the quantity
concerned shall take place on the last day of that period.

2. but not recognised as eligible for processing aid, speci-
fying the quantities not qualifying for the aid as a result
of an overrun in the national guaranteed quantities
determined pursuant to Article 8;

Article 17

3. for which the securities provided for in Article 10 have

Transitional measures

been forfeited;

(b) the total quantities of short flax fibre and hemp fibre that
are not eligible because they contain a percentage of impur-
ities in excess of the limit laid down in Article 2(3)(b) of
Regulation (EC) No 1673/2000 and that have been
obtained by authorised primary processors and persons
treated as processors;

(c) a summary statement of the number of hectares located
respectively in zones I and II as defined in the Annex to
Regulation (EC) No 1673/2000 and on which the addi-
tional aid provided for in Article 4 of that Regulation has
been granted;

(d) where applicable, the national guaranteed quantities and
unit amounts resulting from the adjustments provided for
in the second subparagraph of Article 8(2) and Article 8(4);

(e) the number of penalties as provided for in Article 14(1), (2)
and (3) that it has been decided to apply and those that are
under consideration;

(f) where applicable, a report on the application of Article 3(4)

and on the controls and quantities concerned.

4. Where the Member State decides pursuant to the second
subparagraph of Article 2(3)(b) of Regulation (EC) No 1673/
2000 to grant aid on short flax fibre or hemp fibre containing
more than 7,5 % impurities and shives,
it shall notify the
Commission by no later than 31 January of the marketing year
in progress, specifying the traditional outlets concerned.

In such cases, together with the information specified in para-
graph 1(a) the Member State shall include a breakdown of the
actual, unadjusted quantities of short flax fibre and hemp fibre
containing more than 7,5 % impurities and shives and covered
by aid applications.

Article 16

Operative event

The transitional measures covered by this Article shall

1.
apply for the 2001/02 marketing year.

2. Member States may grant authorisation within the
meaning of Article 1(2) of Regulation (EC) No 1673/2000 to
primary processors for flax and hemp fibre meeting the condi-
tions for eligibility for the aid which they may produce where:

— they are approved under Article 3 of Regulation (EEC) No

619/71 for the 2000/01 marketing year,

— no irregularity involving them has been observed during
the 1999/2000 and 2000/01 marketing years, and

— they have submitted an application for authorisation in
accordance with Article 3 of this Regulation before 30 June
2001.

3. With a view to qualifying for aid under Regulation (EC)
No 1673/2000, by 31 July 2001 at the latest, authorised
primary processors and persons treated as processors shall
declare the stocks of flax straw, hemp straw, long flax fibre,
short flax fibre and hemp fibre from harvests from before the
2001/02 marketing year that they hold at 30 June 2001.

Article 18

Regulations repealed

Regulations (EEC) No 1215/71, (EEC) No 1523/71, (EEC) No
1524/71, (EEC) No 1164/89 and (EEC) No 1784/93 and (EC)
No 452/1999 shall be repealed as from 1 July 2001.

Article 19

This Regulation shall enter
into force on the 20th day
following its publication in the Official Journal of the European
Communities.

It shall apply from the 2001/02 marketing year.

For each period as referred to in Article 6(2), the operative
event for the exchange rate for the euro for the purposes of

Regulation (EEC) No 1164/89 shall continue to apply for the
1998/99, 1999/2000 and 2000/01 marketing years.

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

Done at Brussels, 5 February 2001.

For the Commission

Franz FISCHLER

Member of the Commission