Commission Regulation (EC) No 507/2008 of 6 June 2008 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 (Codified version)
Date: 2008-06-06
Institutions: European Commission
Subjects: common organisation of markets, flax, hemp, textile fibre

L 149/38

EN

Official Journal of the European Union

7.6.2008

COMMISSION REGULATION (EC) No 507/2008

of 6 June 2008

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

(Codified version)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

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)

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 (3) has been substantially amended several times (4).
In the interests of clarity and rationality the said Regu-
lation should be codified.

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

the detailed implementing rules

(3)

The conditions governing the authorisation of primary
processors and the obligations to be met by farmers
who have straw processed on their own account must

(1) OJ L 193, 29.7.2000, p. 16. Regulation as last amended by Regu-
lation (EC) No 953/2006 (OJ L 175, 29.6.2006, p. 1). Regulation
(EC) No 1673/2000 will be replaced by Regulation (EC) No
1234/2007 (OJ L 299, 16.11.2007, p. 1) as from 1 July 2008.

(2) OJ L 349, 24.12.1998, p. 1.
(3) OJ L 35, 6.2.2001, p. 18. Regulation as last amended by Regulation

(EC) No 1913/2006 (OJ L 365, 21.12.2006, p. 52).

(4) See Annex II.

(4)

(5)

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

a

as

single

To ensure the eligibility of the products concerned for
aid, there must be introduced, for the marketing year
concerned,
referred to in
application,
Chapter I of Title II of Part II of Commission Regulation
(EC) No 796/2004 of 21 April 2004 laying down
cross-
detailed
compliance, modulation and the integrated administra-
tion and control system provided for in Council Regu-
lation (EC) No 1782/2003 establishing common rules for
direct support schemes under the common agricultural
policy and establishing certain support
for
farmers (5).

implementation

schemes

rules

the

for

of

(6) With

a

sound

view to

administrative
ensuring
management 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.

(7) Where Member States decide to grant aid on short flax
fibre or hemp fibre containing more than 7,5 % impu-
rities 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.

(5) OJ L 141, 30.4.2004, p. 18. Regulation as last amended by Regu-

lation (EC) No 319/2008 (OJ L 95, 8.4.2008, p. 63).

7.6.2008

EN

Official Journal of the European Union

L 149/39

(8) 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 commitments 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.

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
1985 laying down common detailed rules for the appli-
cation of
for agricultural
products (1).

system of

securities

the

(9)

(10)

should be

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

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
or
the
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 flexibility
in the trade concerned, the possibilities for transferring
contracts among authorised primary processors should
be subject to a limit.

information

contracts

relevant

such

in

(11) 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.

(12)

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
for a given
marketing year, of aid applications covering fibre to be
the quantities of which are to be indicated
obtained,
periodically thereafter.

the start of processing operations

(14) 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
of long flax fibre produced per hectare covered by a
contract or a commitment should accordingly be estab-
the circumstances under which that
lished so that
condition is met can be determined.

for the proper conduct of

(15) A system of administrative and on-the-spot checks is
vital
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.

(16)

(17)

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.

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.

(18)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Natural Fibres,

HAS ADOPTED THIS REGULATION:

Article 1

Purpose and marketing year

The detailed rules for the application of

the common
1.
organisation of the markets in flax and hemp grown for fibre,
established by Regulation (EC) No 1673/2000, shall be as laid
down herein.

(13) 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

2.

The marketing year shall run from 1 July to 30 June.

(1) OJ L 205, 3.8.1985, p. 5. Regulation as last amended by Regulation

(EC) No 1913/2006.

L 149/40

EN

Official Journal of the European Union

7.6.2008

Article 2

Definitions

For the purposes of this Regulation:

(a)

‘persons treated as processors’ shall mean farmers who, in
accordance with Article 2(1), third subparagraph, point (b)
concluded
of Regulation (EC) No 1673/2000, have
contracts with an authorised primary processor to have
straw belonging to them processed into fibre;

(b) ‘long flax fibre’ shall mean 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 scutching and
are arranged in parallel strands in bundles, sheets or slivers;

(c)

‘short flax fibre’ shall mean flax fibres other than as referred
to in point
least partial
separation of the fibres and the woody parts of the stalk;

that are obtained by at

(b)

(d) ‘hemp fibre’ shall mean 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 autho-

1.
risation to the competent authorities including at least:

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

2.
Applications for authorisation shall
taking applying from the date of submission to:

include an under-

(a) 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:

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

commitments combined;

(ii) covered by each processing contract concluded with

persons treated as processors;

(iii) from all other

suppliers

and, where
applicable, corresponding to batches of fibre obtained
from straw referred to in point (i) but not to be covered
by an aid application;

combined

(b) keep daily records of stocks or records by lot,

regularly to financial accounts, and of
in paragraph 5,
specified
documents as
purpose of controls;

specified by the Member State for

linked
the information
together with supporting
the

(c) notify the competent authority of any changes in the infor-

mation covered by paragraph 1;

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

(d) undergo any checks required under the aid scheme provided

for in Regulation (EC) No 1673/2000.

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

location and technical

their

details of
covering:

(i) energy consumption and the maximum quantities of
flax and hemp straw that can be processed per hour
and per year;

(ii) the maximum quantities of long flax fibre, short flax
fibre and hemp fibre that can be obtained per hour and
per year;

(iii) the indicative quantities of

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

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 authoris-
ation 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.

Authorisation shall be
submission of applications.

granted within two months of

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

7.6.2008

EN

Official Journal of the European Union

L 149/41

In connection with the

authorisation of primary
4.
processors 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.

(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;

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

(c)

the estimated losses and the quantities destroyed, with justi-
fications;

A maximum of two cleaners of short flax fibre may be granted
authorisation per authorised primary processor per marketing
year concerned.

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

consignee;

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 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) 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:

(e)

the quantities in each store.

Authorised primary processors must be in possession of cer-
tificates of delivery or takeover 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 business
names and addresses of all suppliers and consignees.

6.
A lot shall be a determined quantity of flax or hemp straw
numbered on entry into the processing plants or storage
facilities referred to in paragraph 1.

(i) store cleaned and uncleaned short flax fibre separately

by cleaning contract;

A lot may relate to only one sale/purchase contract covering
straw, processing commitment or processing contract
as
referred to in Article 5.

(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;

Article 4

Obligations of persons treated as processors

Persons treated as processors must:

(iii) keep supporting documents as specified by the Member
State for the purposes of controls and undergo any
checks required under this Regulation.

(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;

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

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

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

(i) the quantities of flax and hemp straw grown for fibre
obtained and delivered under each processing contract;

L 149/42

EN

Official Journal of the European Union

7.6.2008

(ii) the quantities of long flax fibre, short flax fibre and/or

hemp fibre obtained;

Article 6

Information to be provided by operators

(iii) 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;

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

scheme.

Article 5

Contracts

contracts

Sale/purchase

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

covering

straw,

the

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

following the beginning of

latest

(a) a list of all sale/purchase contracts, processing commitments
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;

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

(a)

the date of conclusion of the contract and the marketing
year corresponding to the harvest concerned;

the Member State may require a copy of all
However,
documents concerned instead of the list referred to in point
(a) of the first subparagraph.

(b) the primary processor’s authorisation number, the farmer’s
identification number under the integrated administration
and control system provided for in Council Regulation
(EC) No 1782/2003 (1) 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;

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

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
signed
agreement of
the authorised primary
the farmer and of
processors transferring the contract between them.

contract, with the

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.

Where certain processing contracts or processing commitments
relate to areas located in a Member State other than that in
the information
which the primary processor is authorised,
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.

2.
In respect of the first six months of the marketing year
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
applications;

fibre produced and covered by aid

(b) the quantities of other fibres produced;

(1) OJ L 270, 21.10.2003, p. 1.

(c)

the aggregate total quantity of straw that has entered the
undertaking;

7.6.2008

EN

Official Journal of the European Union

L 149/43

(d) the quantities in storage;

1673/2000 the quantity ‘Q’ on which the aid is granted shall be
calculated by applying the formula:

(e) where appropriate, a list drawn up in accordance with point
(a) of paragraph 1 of sale/purchase contracts covering straw
and processing contracts 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 quan-
tities of fibre placed on the market and covered by aid appli-
cations. Such supporting evidence shall be specified by the
Member State and shall
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.

least copies of

include at

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

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

Article 7

Entitlement to aid

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

(a) comes

commitments

or processing

from straw covered by sale/purchase contracts,
processing
as
referred to in Article 5 covering parcels under flax or
hemp grown for fibre and by the single application as
referred to in Chapter I of Title II of Part II of Commission
Regulation (EC) No 796/2004, submitted in respect of the
year in which the marketing year begins;

contracts

(b) 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.

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

1.
The 5 000 tonnes of short flax fibre and hemp fibre for
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
Commission by the Member States concerned before 16
October and covering:

(a)

the areas covered by sale/purchase contracts, processing
submitted in
commitments
accordance with Article 6 of this Regulation;

and processing

contracts

(b) the estimated flax and hemp straw and fibre yields.

2.
In order to establish the national quantities on which
processing aid may be granted in respect of
a given
the marketing year in
marketing year, before 1 January of
question the Member States shall determine the transfers of
national guaranteed quantities made
in accordance with
Article 3(5) of Regulation (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
Article 7(1)(b) of this Regulation, the Member State may adjust
the quantities transferred.

For the purposes of applying Article 2(4) of Regulation
3.
(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
determined.

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

Before 1 January of the marketing year in progress the Member
State shall determine the unit quantity referred to in the first
subparagraph for the whole of its territory for each of the three
types of fibre concerned.

L 149/44

EN

Official Journal of the European Union

7.6.2008

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 of this Article so as to reallocate
the quantities
authorised primary
processors or persons treated as processors whose eligible quan-
tities exceed the limits applicable to them.

to the other

available

Article 10

Advances on the aid

as

of

fibre

provided

for advances are submitted with
1. Where applications
in
obtained
declarations
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 declaration, provided that an aid appli-
cation has been submitted in accordance with Article 9.
laid down in Article 8(3),
Without prejudice to the limit
advances shall be equal to 80 % of the aid corresponding to
the quantities of fibre declared.

for

Article 9

Aid applications

1.
Authorised primary processors shall submit applications
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 Article 7(1)(b). Such appli-
cations shall be submitted by the date laid down in Article 6(1)
at the latest.

Where the fibre is obtained partly from straw produced in a
Member State other than that in which the primary 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.

Advances shall be paid only where no irregularity has
2.
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 has been
lodged.

Except as regards the relevant securities where short flax fibre is
cleaned under contract, for each authorised primary processor
and each type of fibre, the security shall be 35 % of the amount
of the aid corresponding to the quantities of fibre resulting from
the multiplication referred to in the first subparagraph of
Article 8(3).

However, Member States may provide that the amount of the
security be based on estimate production. In this case:

2.
Persons treated as processors shall submit applications 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 and placed on
the market before the time limit laid down in Article 7(1)(b).
Such applications shall be submitted by the date laid down in
Article 6(1) at the latest.

(a)

the security may not be released either in part or in full
before the granting of the aid;

(b) notwithstanding the fifth subparagraph,

in relation to the
total amount of advances paid the amount of the security
may not be less than:

3.

Aid applications shall include at least:

— 110 % up to 30 April of the marketing year in question,

(a)

the applicants’ names, addresses and signatures and, where
applicable, the authorisation numbers of primary processors
or the identification numbers under the integrated adminis-
tration and control system of persons treated as processors;

(b) 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).

For the purposes of granting the aid, declarations as provided
for
form an integral part of aid
applications.

in Article 6(2)(a)

shall

— 75 % between 1 May of the marketing year in question

and 31 August following,

— 50 % between 1 September following the marketing
the

in question and the date of payment of

year
balance of the aid.

Where short flax fibre is cleaned under contract, the relevant
security shall be equal to 110 %:

— of the amount of aid corresponding to the quantities of
fibres resulting from the multiplication referred to in the
first subparagraph of Article 8(3), or

7.6.2008

EN

Official Journal of the European Union

L 149/45

— where the Member State applies the third subparagraph of
this paragraph, the total amount of advances paid for the
marketing year in question.

(b) comparing information on agricultural parcels referred to in
and
sale/purchase
processing contracts to see whether it
tallies with that
determined in accordance with Regulation (EC) No
1782/2003;

contracts, processing

commitments

The security shall be released in full 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.

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

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
the marketing year concerned,
and obtained in respect of
divided by a yield of 680 kg of long flax fibre per hectare.

Article 12

Payment of aid

1.
Processing aid and, where appropriate, additional aid shall
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 15 October following the time limit laid down in
Article 7(1)(b), processing aid and, where appropriate, 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:

Checks of authorised primary processors carried out by the
the
competent
fibre
processing of all
produced in the Community.

flax and hemp straw grown for

authorities of Member States

cover

shall

On-the-spot inspections conducted for the purposes of
2.
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

(a) plant, stocks and fibre obtained;

(b) stock records and financial accounts;

(c)

the energy consumed by the various means of production
and documents relating to labour employed;

(d) any commercial documents relevant to controls.

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
the relevant characteristics. Where applicable and
out of
depending on the circumstances,
the Member State shall
determine the quantities that are not eligible among those
covered by aid applications.

(a) checking compliance with the conditions for authorising
primary processors and fulfilment of their obligations by
persons treated as processors;

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.

L 149/46

EN

Official Journal of the European Union

7.6.2008

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
specifications
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.

shown in his

authorisation,

the

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.

(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)

for each marketing year, a summary statement of the quan-
tities 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.

By 31 January at the latest and in respect of the marketing
the
in progress,

the Member

shall notify

States

2.
year
Commission of:

(a)

transfers of national
in
accordance with Article 3(5) of Regulation (EC) No
1673/2000
quantities
national
and
resulting from such transfers;

guaranteed quantities made

guaranteed

the

(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)

unit

the
Article 8(3) of this Regulation;

quantities

determined

in accordance with

force majeure,

Except

in cases of

in the event of

4.
late
submission of aid applications as provided for in Article 9 or
of late submission or late declaration 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 as provided
for in Article 6(1) submitted more than 25 days late shall be
inadmissible.

(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.

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.

3.
By 15 December of each year at the latest, the Member
States shall send the Commission the following information
relating to the next-to-last marketing year:

Article 15

Notifications

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

fibre, short
applications:

1.
In the second month following the end of each period as
referred to in the first subparagraph of Article 6(2), the Member
States shall notify the Commission of:

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

7.6.2008

EN

Official Journal of the European Union

L 149/47

(ii) which are not recognised as eligible for processing aid,
specifying the quantities not qualifying for the aid as a
result of an overrun in the national guaranteed quan-
tities determined pursuant
this
Regulation;

to Article 8 of

(iii) for which the securities provided for in Article 10 of

this Regulation have been forfeited;

(b) the total quantities of short flax fibre and hemp fibre that
are not eligible because they contain a percentage of im-
purities 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 additional
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)
of this Regulation;

(e)

the number of penalties as provided for in Article 14(1), (2)
and (3) of this Regulation 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)
this Regulation and on the controls and quantities

of
concerned.

4. Where the Member State decides pursuant to the second
subparagraph of Article 2(3)(b) of Regulation (EC) No
flax fibre or hemp fibre
1673/2000 to grant aid on short
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
paragraph 1(a) of this Article, 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

converting the advance and the processing aid for the quantity
concerned shall be that referred to in Article 2(6) of Regulation
(EC) No 1913/2006.

Article 17

Imported hemp

The licence referred to in the first

subparagraph of
1.
Article 5(2) of Regulation (EC) No 1673/2000 shall be drawn
up in accordance with the model given in Annex I hereto. The
licence shall be issued only where it has been proven to the
satisfaction of the importer Member State that all the conditions
laid down have been fulfilled.

Without prejudice to paragraph 2 of this Article, the Member
States concerned shall lay down the conditions to be fulfilled by
the licence application and the issue and use of the licence.
However, boxes 1, 2, 4, 14, 15, 16, 17, 18, 20, 24 and 25
of the licence form must be filled in.

Licences may be issued and used using computerised systems in
accordance with detailed rules laid down by the competent
authorities. The content of those licences must be identical to
that of licences on paper referred to in first and second sub-
paragraphs. In Member States where such computerised systems
are not available, the importer can only use the paper form of
the licence.

The system of checks referred to in the second subparagraph of
Article 5(2) of Regulation (EC) No 1673/2000 shall be estab-
lished by each Member State concerned.

2.
For the purposes of the third indent of Article 5(2) of
Regulation (EC) No 1673/2000, the Member States concerned
shall establish arrangements for the authorisation of importers
of hemp seed other than for sowing. Those arrangements shall
include the definition of the conditions for authorisation, checks
and the penalties to be applied in cases of irregularity.

In the case of imports of hemp seed as referred to in the first
subparagraph, the licence referred to in paragraph 1 of this
Article shall be issued only where the authorised importer
undertakes that the competent authorities will be presented,
within the time limits and under the conditions defined by
the Member State, with documents attesting that
the hemp
seed covered by the licence has undergone, within a period of
less than 12 months from the date on which the licence is
issued, one of the following operations:

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

(a) placing in a condition that excludes use for sowing;

L 149/48

EN

Official Journal of the European Union

7.6.2008

(b) mixing with seed other than hemp seed for the purposes of
animal nutrition, with hemp seed accounting for
a
maximum of 15 % of the total mixture and, in exceptional
cases, a maximum of 25 % at the request of the authorised
importer accompanied by justification,

(c) re-export to a third country.

However, if part of the hemp seed covered by the licence has
not undergone one of the operations referred to in the second
subparagraph within the time limit of 12 months, the Member
State may, at
the authorised importer ac-
companied by justification, extend that time limit by one or
two periods of six months.

the request of

The attestations referred to in the second subparagraph shall be
drawn up by the operators who have carried out the operations
and shall comprise at least the following information:

(a)

the name, full address, Member State and signature of the
operator;

(b) a description of

the operation carried out meeting the
conditions laid down in the second subparagraph and the
date on which it was carried out;

(c)

the quantity in kilograms of hemp seed to which the
operation related.

3.
On the basis of a risk analysis, each Member State
concerned shall carry out checks on the accuracy of the at-
testations relating to the operations referred to in the second
subparagraph of paragraph 2 carried out on their territory.

Where appropriate, the importer Member State shall send the
Member State concerned copies of the attestations concerning
the operations carried out on the latter’s territory and submitted
by authorised importers. Where irregularities are discovered
during the checks referred to in the first subparagraph, the
Member State concerned shall inform the competent authority
of the importer Member State.

4. Member States
the
provisions adopted for the application of paragraphs 1 and 2.

shall notify the Commission of

No later than 31 January each year the Member States shall
the penalties imposed or steps
notify the Commission of
irregularities discovered during the
taken as a result of
preceding marketing year.

The Member States shall send the Commission, which shall
forward them to the other Member States,
the names and
the authorities responsible for issuing licences
addresses of
and for the checks referred to in this Article.

Article 18

Regulation (EC) No 245/2001 is repealed.

References to the repealed Regulation shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table in Annex III.

Article 19

This Regulation shall enter into force on the 20th day following
the European
that of
Union.

its publication in the Official

Journal of

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

Done at Brussels, 6 June 2008.

For the Commission
The President

José Manuel BARROSO

7.6.2008

EN

Official Journal of the European Union

L 149/49

ANNEX I

L 149/50

EN

Official Journal of the European Union

7.6.2008

7.6.2008

EN

Official Journal of the European Union

L 149/51

ANNEX II

Repealed Regulation with list of its successive amendments

Commission Regulation (EC) No 245/2001
(OJ L 35, 6.2.2001, p. 18)

Commission Regulation (EC) No 1093/2001
(OJ L 150, 6.6.2001, p. 17)

Commission Regulation (EC) No 52/2002
(OJ L 10, 12.1.2002, p. 10)

Commission Regulation (EC) No 651/2002
(OJ L 101, 17.4.2002, p. 3)

Commission Regulation (EC) No 1401/2003
(OJ L 199, 7.8.2003, p. 3)

Commission Regulation (EC) No 873/2005
(OJ L 146, 10.6.2005, p. 3)

Commission Regulation (EC) No 1913/2006
(OJ L 365, 21.12.2006, p. 52)

Article 1(2) only

Article 24 only

L 149/52

EN

Official Journal of the European Union

7.6.2008

ANNEX III

Correlation table

Regulation (EC) No 245/2001

This Regulation

Article 1

Article 1

Article 2, introductory phrase

Article 2, introductory phrase

Article 2, first indent

Article 2, second indent, introductory phrase

Article 2, second indent, point (a)

Article 2, second indent, point (b)

Article 2, second indent, point (c)

Article 2, point (a)

—

Article 2, point (b)

Article 2, point (c)

Article 2, point (d)

Article 3(1), first subparagraph, introductory phrase

Article 3(1), introductory phrase

Article 3(1), first subparagraph, point (a)

Article 3(1)(a)

Article 3(1), first subparagraph, point (b), first indent

Article 3(1)(b)(i)

Article 3(1), first subparagraph, point (b), second indent

Article 3(1)(b)(ii)

Article 3(1), first subparagraph, point (b), third indent

Article 3(1)(b)(iii)

Article 3(1), first subparagraph, point (c)

Article 3(1)(c)

Article 3(1), second subparagraph

—

Article 3(2), introductory phrase

Article 3(2), introductory phrase

Article 3(2), first indent

Article 3(2), first indent, point (a)

Article 3(2), first indent, point (b)

Article 3(2), first indent, point (c)

Article 3(2), second indent

Article 3(2), third indent

Article 3(2), fourth indent

Article 3(3) to (6)

Article 3(2)(a)

Article 3(2)(a)(i)

Article 3(2)(a)(ii)

Article 3(2)(a)(iii)

Article 3(2)(b)

Article 3(2)(c)

Article 3(2)(d)

Article 3(3) to (6)

Article 4, introductory phrase, point (a)

Article 4, introductory phrase

Article 4, point (a)

Article 4, point (b), first indent

Article 4, point (b), second indent

Article 4, point (b), third indent

Article 4, point (a)

Article 4, point (b)(i)

Article 4, point (b)(ii)

Article 4, point (b)(iii)

Article 4, points (c) and (d)

Article 4, points (c) and (d)

Article 5

Article 5

Article 6(1), first subparagraph, introductory phrase

Article 6(1) first subparagraph, introductory phrase

Article 6(1), first subparagraph, first indent

Article 6(1), first subparagraph, point (a)

Article 6(1), first subparagraph, second indent

Article 6(1), first subparagraph, point (b)

Article 6(1), second subparagraph

Article 6(1), second subparagraph

Article 6(1), third subparagraph

Article 6(1), third subparagraph

Article 6(2) and (3)

Article 6(2) and (3)

7.6.2008

EN

Official Journal of the European Union

L 149/53

Regulation (EC) No 245/2001

This Regulation

Article 7(1), introductory phrase

Article 7(1), introductory phrase

Article 7(1), first indent

Article 7(1), second indent

Article 7(2)

Article 7(1)(a)

Article 7(1)(b)

Article 7(2)

Article 8(1), introductory phrase

Article 8(1), introductory phrase

Article 8(1), first indent

Article 8(1), second indent

Article 8(2), (3) and (4)

Article 9(1) and (2)

Article 8(1)(a)

Article 8(1)(b)

Article 8(2), (3) and (4)

Article 9(1) and (2)

Article 9(3) first subparagraph, introductory phrase

Article 9(3), first subparagraph, introductory phrase

Article 9(3), first subparagraph, first indent

Article 9(3), first subparagraph, point (a)

Article 9(3), first subparagraph, second indent

Article 9(3), first subparagraph, point (b)

Article 9(3), second subparagraph

Article 9(3), second subparagraph

Articles 10, 11 and 12

Articles 10, 11 and 12

Article 13(3), first subparagraph, introductory phrase

Article 13(3), first subparagraph, introductory phrase

Article 13(1), first subparagraph, first indent

Article 13(1), first subparagraph, point (a)

Article 13(1), first subparagraph, second indent

Article 13(1), first subparagraph, point (b)

Article 13(1), first subparagraph, third indent

Article 13(1), first subparagraph, point (c)

Article 13(1), second subparagraph

Article 13(1), second subparagraph

Article 13(2)

Article 13(2)

Article 13(3), first subparagraph, introductory phrase

Article 13(3), first subparagraph, introductory phrase

Article 13(3), first subparagraph, first indent

Article 13(3), first subparagraph, point (a)

Article 13(3), first subparagraph, second indent

Article 13(3), first subparagraph, point (b)

Article 13(3), first subparagraph, third indent

Article 13(3), first subparagraph, point (c)

Article 13(3), first subparagraph, fourth indent

Article 13(3), first subparagraph, point (d)

Article 13(3), second and third subparagraphs

Article 13(3), second and third subparagraphs

Article 14

Article 15(1) and (2)

Article 14

Article 15(1) and (2)

Article 15(3), introductory phrase

Article 15(3), introductory phrase

Article 15(3)(a)(1)

Article 15(3)(a)(2)

Article 15(3)(a)(3)

Article 15(3)(b) to (f)

Article 15(4)

Article 16

Article 17

Article 17a(1)

Article 15(3)(a)(i)

Article 15(3)(a)(ii)

Article 15(3)(a)(iii)

Article 15(3)(b) to (f)

Article 15(4)

Article 16

—

Article 17(1)

Article 17a(2), first subparagraph

Article 17(2), first subparagraph

Article 17a(2), second subparagraph, introductory phrase

Article 17(2), second subparagraph, introductory phrase

L 149/54

EN

Official Journal of the European Union

7.6.2008

Regulation (EC) No 245/2001

This Regulation

Article 17a(2), second subparagraph, second indent

Article 17(2), second subparagraph, point (b)

Article 17a(2), second subparagraph, third indent

Article 17(2), second subparagraph, point (c)

Article 17a(2), second subparagraph, third indent

Article 17(2), third subparagraph,

Article 17a(2), third subparagraph

Article 17(2), third subparagraph

Article 17a(2), fourth subparagraph, introductory phrase

Article 17(2), fourth subparagraph, introductory phrase

Article 17a(2) fourth subparagraph, first indent

Article 17(2), fourth subparagraph, point (a)

Article 17a(2) fourth subparagraph, second indent

Article 17(2), fourth subparagraph, point (b)

Article 17a(2), fourth subparagraph, third indent

Article 17(2), fourth subparagraph, point (c)

Article 17a(3) and (4)

Article 17(3) and (4)

Article 18

—

Article 19, first subparagraph

Article 19, second and third subparagraphs

Annex

—

—

Article 18

Article 19

—

Annex I

Annex II and III