Proposal for a Council Regulation amending Regulation (EEC) No 2075/92 on the common organisation of the market in raw tobacco
Date: 2003-10-23
Institutions: European Commission
Subjects: common organisation of markets, tobacco

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 23.10.2003
COM(2003) 633 final

2003/251 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 2075/92 on the common organisation
of the market in raw tobacco

(presented by the Commission)

EXPLANATORY MEMORANDUM

The purpose of this proposal for a Council Regulation is to set the deduction from the 2004
harvest premium to finance the Community Tobacco Fund.

This  measure  is  being  proposed  transitionally  pending  entry  into  force  of  the  reform  of  the
common organisation of the market in raw tobacco.

Under these circumstances, the level chosen is the same as that set for the 2003 harvest – i.e. a
premium deduction of 3%.

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2003/251 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EEC) No 2075/92 on the common organisation
of the market in raw tobacco

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 37 thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the European Economic and Social Committee3,

Having regard to the opinion of the Committee of the Regions4,

Whereas:

(1)

(2)

(3)

Under  Article  13(1)  of  Council  Regulation  (EEC)  No  2075/925,  the  Community
Tobacco  Fund  is  to  be  financed  by  deductions  of  2%  and  3%  respectively  from  the
premiums for the 2002 and 2003 harvests.

The  reform  of  the  common  organisation  of  the  market  in  raw  tobacco,  which  also
covers the Community Tobacco Fund, is currently being drawn up. The new rules are
not due to take effect until 2005. A deduction percentage therefore needs to be set for
2004,  and  in  the  transitional  context  it  should  be  maintained  at  the  same  level  as  in
2003.

According to the conclusions of the  report  on  utilisation  of  the Community Tobacco
Fund6 presented  by the Commission to the Concil under Article  13(1)  of  Regulation
(EEC) No 2075/92, a 3% deduction will be sufficient to cover the fund's prospective
expenditure.

(4)

Regulation (EEC) No 2075/92 therefore needs to be amended,

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2

3

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6

OJ C …, …, p. …
OJ C …, …, p. …
OJ C …, …, p. …
OJ C …, …, p. …
OJ  L  215,  30.7.1992,  p.70.  Regulation  last  amended  by  Regulation  (EC)  No  806/2003  (OJ  L  122,
16.5.2003, p. 1).
COM(2003) XXXX.

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HAS ADOPTED THIS REGULATION:

Article 1

Article 13(1) of Regulation (EEC) No 2075/92 is replaced by the following:

"1.

A  Community  Tobacco  Fund  (hereafter  "Fund")  shall  be  set  up,  financed  by  a
deduction of:

– 

– 

2% from the premium for the 2002 harvest, and

3% from the premium for the 2003 and 2004 harvests."

Article 2

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

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

Done at Brussels,

For the Council
The President

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FINANCIAL STATEMENT

1.

2.

3.

4.

BUDGET HEADING:
05 02 1002 and 17 03 02

APPROPRIATIONS
(2004 PDB):
€28.8 million

TITLE:
Council  Regulation  amending  Regulation  (EEC)  No  2075/92  on  the  common  organisation  of  the
market in raw tobacco

LEGAL BASIS:
Article 37 of the Treaty

AIMS:
To set the deduction to finance the Community Tobacco Fund for the 2004 harvest at the same level as
for 2003.

5.

FINANCIAL IMPLICATIONS

5.0

5.1

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
-

NATIONAL

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

-

12 MONTH
PERIOD

(EUR million)
p.m.

CURRENT
FINANCIAL
YEAR 2003
(EUR million)
-

FOLLOWING
FINANCIAL
YEAR 2004
(EUR million)
-

-

-

-

2005
p.m.
-

2006
-
-

2007
-
-

2008
-
-

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN
THE RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS
OF THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?

YES / NO

YES / NO

YES / NO

6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?

YES / NO

OBSERVATIONS:

The Community Tobacco Fund is financed by a deduction from the premium paid to producers. This measure
does not therefore entail any additional expenditure for the budget.
For the 2004 harvest, i.e. the 2005 financial year, it is proposed to set the deduction at the same level as for
the 2003 harvest, i.e. 3%. This represents an  estimated  €28.8  million  for  the  15  existing  Member  States.  If
tobacco-producing  countries  among  the  new  Member  States  do  not  apply  the  simplified  system  for  the
payment of direct aid (SAPS), that amount could increase by €4.4 million.

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