CELEX: 52005PC0386
Language: en
Date: 2005-08-24
Title: Proposal for a Council Regulation concerning the common organisation of the market in hops

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       Brussels, 24.8.2005
                                       COM(2005) 386 final
                                       2005/0162 (CNS)
                          Proposal for a
                  COUNCIL REGULATION
   concerning the common organisation of the market in hops
                 (presented by the Commission)
EN                                                          EN
 ---pagebreak---                                EXPLANATORY MEMORANDUM
   Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organisation of the
   market in hops has been substantially amended several times. In view of this, and in particular
   the amendments under Council Regulation (EC) No 1782/2003 of 29 September 2003
   establishing common rules for direct support schemes under the common agricultural policy
   and establishing certain support schemes for farmers, Regulation (EEC) No 1696/71 should
   be repealed and replaced by a new Regulation, for the sake of clarity and a proper
   understanding of Community legislation. Council Regulation (EEC) No 1037/72 of
   18 May 1972 laying down general rules for granting and financing aid for hop producers, the
   provisions of which are incorporated in Regulation (EC) No 1782/2003, should also be
   repealed. Council Regulation (EEC) No 1981/82 of 19 July 1982 drawing up the list of
   Community regions, in which production aid for hops is granted only to recognised producer
   groups, and Council Regulation (EEC) No 879/73 of 26 March 1973 on the granting and
   reimbursement of aid accorded by the Member States to recognised producer groups in the
   hop sector have become obsolete following the adoption of Regulation (EC) No 1782/2003
   and can also be repealed.
   The new Regulation will replace the various regulations incorporated in Regulation (EEC)
   No 1696/71, retaining and rearranging its contents. A number of articles have also been
   amended slightly to bring the Regulation up to date. In particular, account has been taken of
   the changed role of producer groups, who no longer participate in the management of the aid.
   Although annual or multi-annual contracts continue to play a major role in the marketing of
   hops and helping to ensure market stability, and the mutual exchange of information between
   the Member States and the Commission has been retained, the official registration of contracts
   is no longer necessary. The rules on trade with third countries have also been updated.
   This proposal has been drawn up on the basis of a consolidation of the text of Regulation
   (EEC) No 1696/71 in all the official languages and the acts amending it.
   Where articles have been renumbered, the concordance between the previous and new
   numbering is set out in the correlation table annexed to the Regulation.
EN                                                 2                                               EN
 ---pagebreak---                                                                  2005/0162 (CNS)
                                                  Proposal for a
                                         COUNCIL REGULATION
                     concerning the common organisation of the market in hops
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular
   Article 36 and the third subparagraph of Article 37(2) thereof,
   Having regard to the proposal from the Commission,
   Having regard to the opinion of the European Parliament,
   Having regard to the opinion of the European Economic and Social Committee,
   Whereas:
   (1)     Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organisation of
           the market in hops1 has been substantially amended several times, in particular by
           Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common
           rules for direct support schemes under the common agricultural policy and establishing
           certain support schemes for farmers and amending Regulations (EEC) No 2019/93,
           (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC)
           No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC)
           No 2529/20012. For the sake of clarity, Regulation (EEC) No 1696/71 should be
           repealed and replaced. Council Regulation (EEC) No 1037/72 of 18 May 1972 laying
           down general rules for granting and financing aid for hop producers3, Council
           Regulation (EEC) No 1981/82 of 19 July 1982 drawing up the list of Community
           regions, in which production aid for hops is granted only to recognised producer
           groups4, and Council Regulation (EEC) No 879/73 of 26 March 1973 on the granting
           and reimbursement of aid accorded by the Member States to recognised producer
           groups in the hop sector5, which have become obsolete following the adoption of
           Regulation (EC) No 1782/2003, should also be repealed. However, since Slovenia does
           not plan to apply the single payment scheme until 1 January 2007, provision should be
   1
           OJ L 175, 4.8.1971, p. 1. Regulation as last amended by Regulation (EC) No 2320/2003 (OJ L 345,
           31.12.2003, p. 18).
   2
           OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 118/2005
           (OJ L 24, 27.1.2005, p. 15).
   3
           OJ L 118, 20.5.1972, p. 19. Regulation as last amended by Regulation (EEC) No 1604/91 (OJ L 149,
           14.6.1991, p. 13).
   4
           OJ L 215, 23.7.1982, p. 3. Regulation as last amended by the 2003 Act of Accession.
   5
           OJ L 86, 31.3.1973, p. 26. Regulation as last amended by Regulation (EEC) No 2254/77 (OJ L 261,
           14.10.1977, p. 3).
EN                                                        3                                                 EN
 ---pagebreak---         made for Article 7 of Regulation (EEC) No 1696/71 and Regulations (EEC) Nos
        1037/72 and 1981/82 to continue to apply in Slovenia for the 2006 harvest.
   (2)  Hops and vegetable saps and extracts of hops are products which are generally
        interchangeable. To enable the objectives of Article 33 of the Treaty to be achieved and
        ensure that the common agricultural policy has full effect in the hops sector, the
        measures on trade with third countries and the marketing rules adopted for hops should
        be extended to vegetable saps and extracts of hops.
   (3)  To ensure a fair standard of living for producers, Regulation (EC) No 1782/2003 lays
        down aid schemes for certain sectors, including hops.
   (4)  A quality policy should be followed throughout the Community by implementing
        provisions concerning certification together with rules prohibiting, as a general rule,
        the marketing of products for which a certificate has not been issued or, in the case of
        imported products, those which do not comply with equivalent minimum quality
        characteristics.
   (5)  To stabilise markets and ensure reasonable prices for supplies to consumers,
        centralisation of supply and the joint adaptation by growers of their produce to the
        requirements of the market should be encouraged.
   (6)  To that end the grouping of growers in bodies which require their members to comply
        with certain common rules should further the achievement of the objectives of
        Article 33 of the Treaty.
   (7)  To avoid any discrimination between producers and to ensure the unity and
        effectiveness of any action undertaken, conditions should be laid down, for the whole
        of the Community, with which producer groups must comply in order to be recognised
        by the Member States. To obtain effective centralisation of supply it is necessary in
        particular that the groups should be of an economically viable size and that the entire
        output of producers should be marketed either directly by the group or by the
        producers, according to common rules.
   (8)  The measures envisaged should enable an import scheme to be provided for based
        solely on application of the common customs tariff.
   (9)  These measures make it possible to waive all quantitative restrictions at the external
        frontiers of the Community. This procedure may, however, in exceptional cases, be
        found to be inadequate. In such cases, in order not to leave the Community market
        defenceless against any disturbances arising therefrom, the Community should be
        empowered to take all necessary measures quickly. These measures should be in
        accordance with the Community’s international obligations.
   (10) The proper functioning of the single market would be compromised by the grant of
        national aid. As a result, the provisions of the Treaty governing state aid should apply
        to the products covered by this common market organisation.
   (11) The experience gained in the application of Regulation (EEC) No 1696/71 has revealed
        the need for instruments enabling preventive action to be taken where a risk of
        structural surpluses or market disturbance arises.
EN                                              4                                                EN
 ---pagebreak---    (12)   The measures required for implementing this Regulation must be adopted in
          accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the
          procedures for the exercise of implementing powers conferred on the Commission6.
   (13)   The transition from Regulation (EEC) No 1696/71 to this Regulation is likely to create
          difficulties not envisaged in this Regulation. In order to deal with those difficulties, the
          Commission should be authorised to adopt transitional measures,
   HAS ADOPTED THIS REGULATION:
                                               CHAPTER I
                                       INTRODUCTORY PROVISONS
                                                   Article 1
   1.       A common organisation of the market in hops, including rules on marketing, producer
            groups and trade with third countries, is hereby established, covering the following
            products:
               CN code                                    Description of goods
             1210             Hop cones, fresh or dried, whether or not ground, powdered or in the form of
                              pellets; lupulin
   2.       The rules of this Regulation on marketing and trade with third countries shall also
            apply to the following products:
               CN code                                    Description of goods
             1302 13 00       Vegetable saps and extracts of hops
                                                   Article 2
   For the purposes of this Regulation:
   (a)      “hops” means the dried inflorescenses, also known as cones, of the (female) climbing
            hop plant (Humulus lupulus); these inflorescenses, which are greenish yellow and of
            an ovoid shape, have a flower stalk and their longest dimension generally varies from
            2 to 5 cm;
   (b)      “hop powder” means the product obtained by milling the hops, containing all the
            natural elements thereof;
   (c)      “hop powder with higher lupulin content” means the product obtained by milling the
            hops after mechanical removal of a part of the leaves, stalks, bracts and rachides;
   (d)      “extract of hops” means the concentrated products obtained by the action of a solvent
            on the hops or on the hop powder;
   (e)      “mixed hop products” means a mixture of two or more of the products referred to in
            points (a) to (d).
   6
           OJ L 184, 17.7.1999, p. 23.
EN                                                     5                                                   EN
 ---pagebreak---                                                  Article 3
   This Regulation shall apply without prejudice to the measures provided for in Regulation (EC)
   No 1782/2003.
                                             CHAPTER II
                                              MARKETING
                                                 Article 4
   1.      The products referred to in Article 1, harvested within the Community or prepared
           from hops harvested within the Community, shall be subject to a certification
           procedure.
   2.      The certificate may be issued only for products having the minimum quality
           characteristics appropriate to a specific stage of marketing. In the case of hop powder,
           hop powder with higher lupulin content, extract of hops and mixed hop products, the
           certificate may only be issued if the alpha acid content of these products is not lower
           than that of the hops from which they have been prepared.
   3.      The certificate shall indicate at least:
           (a)    the place(s) of production of the hops;
           (b)    the year(s) of harvesting;
           (c)    the variety or varieties.
                                                 Article 5
   1.      The products referred to in Article 1 may be marketed or exported only if the
           certificate referred to in Article 4 has been issued.
           In the case of imported products, the attestation provided for in Article 9(2) shall be
           deemed to be the certificate.
   2.      Measures derogating from paragraph 1 may be adopted in accordance with the
           procedure referred to in Article 15(2):
           (a)    in order to satisfy the trade requirements of certain third countries; or
           (b)    for products intended for special uses.
           The measures provided for in the first subparagraph must:
           (a)    not prejudice the normal marketing of products for which the certificate has
                  been issued;
           (b)    be accompanied by guarantees intended to avoid any confusion with those
                  products.
EN                                                  6                                               EN
 ---pagebreak---                                             CHAPTER III
                                         PRODUCER GROUPS
                                                 Article 6
   For the purposes of this Regulation, “producer group” means a group consisting exclusively
   or, where national legislation allows, mainly of hop producers recognised by a Member State
   under Article 7 and formed on the initiative of the producers for the purpose of achieving one
   or more of the following objectives:
   (a)     concentrating supply and helping to stabilise the market by marketing all the produce
           of the members or, if necessary, by purchasing hops at a higher price in accordance
           with Article 7(4)(a);
   (b)     adapting such production jointly to the requirements of the market and improving the
           product, in particular by converting to other varieties, reorganising hop gardens,
           carrying out promotion, and conducting research into production, marketing and
           integrated protection;
   (c)     promoting the rationalisation and mechanisation of cultivation and harvesting
           operations in order to render production more profitable and better protect the
           environment;
   (d)     deciding what varieties of hops may be grown by its members and adopting common
           rules on production.
                                                 Article 7
   1.      The authority competent to recognise producer groups shall be the Member State
           within whose territory the producer group has its registered office.
   2.      Member States shall recognise producer groups which request recognition and fulfil
           the following general conditions:
           (a)    They have legal personality or sufficient legal capacity to be subject, under
                  national legislation, to rights and obligations.
           (b)    They apply common rules for production and placing on the market (first stage
                  of marketing).
           (c)    Their statutes include an obligation on producers who are members of groups
                  to:
                  (i)   comply with the common rules on production and decisions on the
                        varieties to be grown,
                  (ii)  market all their produce through the group.
           (d)    They provide proof of economically viable activity.
           (e)    They exclude throughout their field of activity any discrimination between
                  Community producers or groups in respect of, in particular, their nationality or
                  place of establishment.
EN                                                  7                                              EN
 ---pagebreak---            (f)    They guarantee all producers who undertake to comply with the statutes,
                  without discrimination, the right to belong to a group.
           (g)    Their statutes include provisions aimed at ensuring that the members of a group
                  who wish to give up their membership may do so after having been a member
                  for at least three years and provided that they inform the group of their intention
                  at least one year before they leave, without prejudice to the national laws or
                  regulations designed to protect, in specific cases, the group or creditors thereof
                  against the financial consequences which might arise from a member leaving,
                  or to prevent a member from leaving during the financial year.
           (h)    Their statutes include the obligation to keep separate accounts for the activities
                  in respect of which they have been recognised.
           (i)    They do not hold a dominant position in the Community.
   3.      The obligation provided for in paragraph 2(c) shall not apply to products covered by
           sales contracts concluded by producers before they joined the producer group,
           provided that the latter was informed of and approved such contracts.
   4.      Notwithstanding paragraph 2(c)(ii), where the producer group so authorises and under
           the conditions it lays down, members of a producer group may:
           (a)    replace the obligation to have all their production marketed by the producer
                  group provided for in paragraph 2(c)(ii) with marketing in accordance with
                  common rules incorporated in the statutes to ensure that the producer group has
                  the right to monitor selling prices, which it must approve, failure to do so
                  requiring the group to buy back the hops concerned at a higher price;
           (b)    market, through the offices of another producer group chosen by their own
                  group, products which by virtue of their characteristics are not necessarily
                  covered by the commercial activities of the latter.
                                            CHAPTER IV
                                  TRADE WITH THIRD COUNTRIES
                                                 Article 8
   Save as otherwise provided for in this Regulation, the rates of import duty in the common
   customs tariff shall apply to the products listed in Article 1.
                                                 Article 9
   1.      The products referred to in Article 1 coming from third countries may be imported
           only if their quality standards are at least equivalent to those adopted for like products
           harvested within the Community or made from such products.
   2.      The products referred to in Article 1 shall be considered as being of the standard
           referred to in paragraph 1 of this Article if they are accompanied by an attestation
           issued by the authorities of the country of origin and recognised as equivalent to the
           certificate referred to in Article 4.
EN                                                  8                                                 EN
 ---pagebreak---       In the case of hop powder, hop powder with higher lupulin content, extract of hops
      and mixed hop products, the attestation may only be recognised as being equivalent to
      the certificate if the alpha acid content of these products is not lower than that of the
      hops from which they have been prepared.
      The equivalence of these attestations shall be verified according to the procedure
      referred to in Article 15(2).
                                          Article 10
   1. The general rules for the interpretation of the Combined Nomenclature and the
      special rules for its application shall apply to the tariff classification of products
      referred to in Article 1. The tariff nomenclature resulting from the application of this
      Regulation shall be incorporated in the common customs tariff.
   2. Save as otherwise provided for in this Regulation or in provisions adopted under it,
      the following shall be prohibited in trade with third countries:
      (a)    the levying of any charge having equivalent effect to a customs duty;
      (b)    the application of any quantitative restriction or measure having equivalent
             effect.
                                          Article 11
   1. If, by reason of imports or exports, the Community market in one or more of the
      products listed in Article 1 is affected by, or is threatened with, serious disturbance
      likely to jeopardise the achievement of the objectives set out in Article 33 of the
      Treaty, appropriate measures may be applied in trade with non-member countries of
      the World Trade Organisation until such disturbance or threat of it has ceased.
   2. If the situation referred to in paragraph 1 arises, the Commission shall, at the request
      of a Member State or on its own initiative, decide upon the necessary measures. The
      Member States shall be notified of such measures, which shall be immediately
      applicable. If the Commission receives a request from a Member State, it shall take a
      decision thereon within three working days of receipt of the request.
   3. The measures referred to in paragraph 2 may be referred to the Council by any
      Member State within three working days of the day on which they are notified. The
      Council shall meet immediately. It may, acting by a qualified majority, amend or
      repeal the measures in question within one month of the day on which they were
      referred to the Council.
   4. Measures adopted under this Article shall be applied having regard to the obligations
      arising from agreements concluded in accordance with Article 300(2) of the Treaty.
EN                                            9                                                 EN
 ---pagebreak---                                              CHAPTER V
                                        GENERAL PROVISIONS
                                                Article 12
   Save as otherwise provided for in this Regulation, Articles 87, 88 and 89 of the Treaty shall
   apply to production of and trade in the products referred to in Article 1(1) of this Regulation.
                                                Article 13
   In cases where there is a danger of creating surpluses or of a disturbance in the supply
   structure of the market, the Council, acting by a qualified majority on a proposal from the
   Commission, may take appropriate measures to prevent market imbalance. Such measures
   may, for instance, take the form of action affecting:
   (a)      the production potential;
   (b)      the volume of supply;
   (c)      the marketing conditions.
                                                Article 14
   The Member States and the Commission shall send each other such information as is
   necessary for the implementation of this Regulation.
                                                Article 15
   1.       The Commission shall be assisted by the Management Committee for Hops
            (hereinafter ‘the Committee’).
   2.       Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC
            shall apply.
            The period referred to in Article 4(3) of Decision 1999/468/EC shall be one month.
   3.       The Committee shall adopt its rules of procedure.
                                                Article 16
   The rules for applying this Regulation shall be adopted in accordance with the procedure
   referred to in Article 15(2), in particular:
   –        the minimum quality characteristics referred to in Article 4(2),
   –        the definition of placing on the market referred to in Article 7(2)(b),
   –        the provisions laid down in Article 7(2)(g),
   –        the rules for sending the information referred to in Article 14.
EN                                                 10                                               EN
 ---pagebreak---                                            CHAPTER VI
                             TRANSITIONAL AND FINAL PROVISIONS
                                               Article 17
   1.        Regulation (EEC) No 1696/71 is hereby repealed with effect from 1 January 2006.
             However, in the case of Slovenia, Article 7 shall continue to apply up to and
             including the 2006 harvest.
             References to Regulation (EEC) No 1696/71 shall be construed as references to this
             Regulation and shall be read in accordance with the correlation table in the Annex.
   2.        Regulations (EEC) Nos 1037/72, 1981/82 and 879/73 are hereby repealed with effect
             from 1 January 2006. However, in the case of Slovenia, Regulations (EEC)
             Nos 1037/72 and 1981/82 shall continue to apply up to and including the 2006
             harvest.
                                               Article 18
   1.        Producer groups recognised under Regulation (EEC) No 1696/71 shall be deemed to
             be recognised under this Regulation.
   2.        Transitional measures to facilitate the transition from Regulation (EEC) No 1696/71
             to this Regulation may be adopted in accordance with the procedure referred to in
             Article 15(2).
                                               Article 19
   This Regulation shall enter into force on the seventh day following that of its publication in
   the Official Journal of the European Union.
   It shall apply from 1 January 2006.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels,
                                                 For the Council
                                                 The President
EN                                                 11                                             EN
 ---pagebreak---                                                      ANNEX
                                                 Correlation table
                Regulation (EEC) No 1696/71                                   This Regulation
   Article 1(1) and (2)                                       Article 1
   Article 1(3)                                               Article 2
   Article 1(4)                                               –
   –                                                          Article 3
   Article 2(1), (2) and (3)                                  Article 4
   Article 2(4)                                               –
   Article 2(5)                                               Article 16
   Article 3                                                  Article 5
   Article 4                                                  –
   Article 5(1) and (2)                                       Article 9
   Article 5(3)                                               Article 16
   Article 6                                                  –
   Article 7(1)(a), (b), (c) and (d)                          Article 6
   Article 7(1)(e)                                            –
   Article 7(1a) and (2)                                      –
   Article 7(3)(a)                                            Article 7(2(b)
   Article 7(3)(b), first subparagraph                        Article 7(2(c)
   Article 7(3)(b), second subparagraph                       Article 7(3)
   Article 7(3)(b), third subparagraph                        Article 7(4)
   Article 7(3)(c) to (f)                                     Article 7(2)(d) to (g)
   Article 7(3)(g)                                            Article 7(2)(a)
   Article 7(3)(h) and (i)                                    Article 7(2)(h) and (i)
   Article 7(4)                                               Article 7(1)
   Article 7(5)                                               Article 11
   Article 12                                                 –
   Article 13                                                 –
   Article 14                                                 Article 8
   Article 15                                                 Article 10
   Article 15a(1), first subparagraph                         Article 11(1)
   Article 15a(1), second subparagraph                        –
   Article 15a(2), (3) and (4)                                Article 11(2), (3) and (4)
   Article 16                                                 Article 12
   Article 16a                                                Article 13
   Article 17                                                 –
   Article 18, first subparagraph, first sentence             Article 14
   Article 18, first subparagraph, second sentence            Article 16
   Article 18, second subparagraph                            –
   Article 20                                                 Article 15
   Article 21                                                 –
   Article 22                                                 –
   –                                                          Article 17
   –                                                          Article 18(1)
   Article 23, first paragraph                                Article 18(2)
   Article 23, second paragraph                               –
   Article 24                                                 Article 19
EN                                                     12                                     EN
 ---pagebreak---                FINANCIAL STATEMENT
                                                                                        DATE:
   1.    BUDGET HEADING:                                                                APPROPRIATIONS:
         05 02 11 03                                                                    13 Mio €
   2.    TITLE:
         Proposal for a Council Regulation on the common organisation of the market in hops
   3.    LEGAL BASIS:
         Article 37 of the Treaty
   4.    AIMS:
         Repealing and modifying Regulation (EEC) n° 1696/71 following adoption of Regulation (EC) n°
         1782/2003
   5.    FINANCIAL IMPLICATIONS                         12 MONTH             CURRENT          FOLLOWING
                                                          PERIOD            FINANCIAL          FINANCIAL
                                                                                YEAR              YEAR
                                                                                 2005              2006
                                                       (EUR million)       (EUR million)      (EUR million)
   5.0   EXPENDITURE                                           -                   -                 -
         -        CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)
         -        NATIONAL AUTHORITIES
         -        OTHER
   5.1   REVENUE                                               -                   -                 -
         -        OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
         -        NATIONAL
                                                           2007              2008        2009          2010
   5.0.1 ESTIMATED EXPENDITURE                               -                 -            -            -
   5.1.1 ESTIMATED REVENUE                                   -                 -            -            -
   5.2   METHOD OF CALCULATION:
   6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
         RELEVANT CHAPTER OF THE CURRENT BUDGET?                                                    YES NO
   6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
         THE CURRENT BUDGET?                                                                        YES NO
   6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                  YES NO
   6.3   WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?                                  YES NO
   OBSERVATIONS:
EN                                                    13                                                    EN