CELEX: 51998PC0280
Language: en
Date: 1998-05-06
Title: Proposal for a Council Regulation (EC) amending Regulation (EEC) No 619/71 laying down general rules for granting aid for flax and hemp

COMMISSION OF THE EUROPEAN COMMUNITIES
 *****
-A-   T*
                                               Brussels, 06.05.1998
                                               COM(1998) 280 final
                                Proposal for a
                      COUNCIL REGULATION (EC)
amending Regulation (EEC) No 619/71 laying down general rules for granting aid for
                                 flax and hemp
                       (presented by the Commission)
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                          EXPLANATORY MEMORANDUM
Introduction
1.   At the Council meeting in June 1997 on the adoption of the 1997/98 prices package
     the Council asked the Commission to examine the possibility of introducing
     compulsory contracts between producers and the processing industry in the hemp
     sector.
2.   As part of the 1998/99 prices package, the Commission proposed a reduction of
     25% of the per hectare aid because of the significant and constant growth in land
     sown to hemp over the past few marketing years.
3.   To slow down that not insignificant increase in land sown to hemp and to provide
     better guarantees as to the reliability of controls, it is necessary to "take the
     appropriate additional measures by amending the Regulation laying down the
     general rules for the grant of aid.
Proposed measures
4.   It is necessary to ensure that aid cannot be granted for land which is not actually
     used. The key to solving that problem lies in the introduction of compulsory
     contracts between producers and processors approved by the Member State and of
     an undertaking to process. Contracts are already provided for in the current rules but
     they are not compulsory. The compulsory approval of primary processors will be the
     duty of the competent authorities of the Member States and not the Commission, in
     line with the principle of subsidiarity.
5.   To reduce still further the risk of the arrangements being used improperly, in
     addition to the abovementioned measures, we also propose to reduce the maximum
     authorised THC limit, to confirm the requirement of harvesting after seed formation
     and to introduce additional measures for supervision of the crop.
6.   It is likely that contracts will already have been signed by some producers before
     this proposal is adopted so the Commission must be able to take transitional
     measures for the first marketing year of application.
                                              Z
 ---pagebreak---                                                        VI/2561/98T (PHOPT\EN\0052.doc)
                                        Proposal for a
                               Council Regulation (EC) No „„„„
                                              of
   amending Regulation (EEC) No 619/71 laying down general rules for granting aid for
                                        flax and hemp
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 1308/70 of 29 June 1970 on the common
organisation of the market in flax and hemp1, as last amended by Regulation (EC)
No 3290/942, and in particular Article 4(4) thereof,
Having regard to the proposal from the Commission,
Whereas the second subparagraph of Article 4(1) of Regulation (EEC) No 1308/70
stipulates that aid is granted only for hemp grown from seed of varieties providing certain
safeguards to be determined in respect of the content of intoxicating substances in the
harvested product; whereas Article 3(1) of Regulation (EEC) No 619/71 laying down
general rules for granting aid for flax and hemp3, as last amended by Regulation (EC)
No 154/974, lays down a maximum limit for the average content of tetrahydrocannabinol
(THC) to determine the varieties of seeds which can be accepted; whereas in order to
strengthen the measures ensuring that land eligible for production aid cannot be used for
illegal cultivation the maximum limit currently laid down should be reduced; whereas,
for the same purpose, the grant of aid should be made conditional upon harvesting after
seed formation;
1
     OJ L 146,4.7.1970, p. 1.
2
     OJL 349,31.12.1994, p. 105.
3
     OJL 72, 26.3.1971, p. 2.
4
     OJ L 27, 30.1.1997, p. 1.
                                               3
 ---pagebreak---                                                         VI/2561/98T (PHOPT\EN\0052.doc)
Whereas Article 3(2) of Regulation (EEC) No 619/71 lays down, for the grant of aid for
fibre flax, a system of compulsory contracts between producers and primary processors
containing a processing undertaking; whereas a similar system of compulsory contracts
should be introduced in the hemp sector so as to improve control of the final use of the
crop and to guarantee that the crop is actually processed;
Whereas Article 4 of Regulation (EEC) No 619/71 provides for a system of
administrative supervision guaranteeing that the product for which aid has been requested
qualifies for that aid; whereas that supervision system should be strengthened in the
hemp sector by the introduction of prior administrative authorisation for sowing;
Whereas the measures provided for in this Regulation must be implemented under the
best possible conditions; whereas, therefore, transitional measures may be needed to
facilitate the changeover to the new system,
HAS ADOPTED THIS REGULATION:
                                           Article 1
Regulation (EEC) No 619/71 is hereby amended as follows:
1.    Article 3(1) is replaced by the following:
      "1. For hemp, aid shall be granted only to growers who have concluded, before a
      date to be specified, a contract with a primary processor approved by the competent
      authority in the Member State on whose territory his establishments are situated,
      under which the primary processor obtains ownership of the hemp and undertakes to
      process it.
      Aid shall be granted only for hemp harvested after seed formation and grown from
      certified seed of varieties contained in a list to be drawn up in accordance with the
      procedure laid down in Article 12 of Regulation (EEC) No 1308/70. This list shall
      include only varieties for which a Member State has found by analysis that the
      weight of THC (tetrahydrocannabinol) in the weight of a sample maintained at
      constant weight is no more than 0.15%.
                                                  7
 ---pagebreak---                                                      VI/2561/98T (PHOPT\EN\0052.doc)
     The sample referred to above shall consist of the upper third of a representative
     number of plants selected at random at the end of their flowering period and with
     stalks and seeds removed."
2.   In Article 4(1), the following subparagraph is added:
     "For hemp, Member States shall introduce administrative arrangements for crop
     supervision comprising a system for the prior authorisation of sowing on land
     eligible for aid for the production of hemp. The criteria and rules relating to the
     system shall be adopted in accordance with the procedure laid down in Article 12 of
     Regulation (EEC) No 1308/70."
3.   Article 6a is replaced by the following:
     "Article 6a
     Should transitional measures be strictly necessary to facilitate the implementation of
     the adjustments to the arrangements laid down in Regulation (EC) No ..../98 with
      effect from the 1998/99 marketing year, such measures shall be adopted in
      accordance with the procedure laid down in Article 12 of Regulation (EEC)
     No 1308/70. They shall apply until the end of the 1999/2000 marketing year at the
      latest."
                                          Article 2
This Regulation shall enter into force on the seventh day following its publication in the
Official Journal of the European Communities.
It shall apply from the 1998/99 marketing ye;ir. However, Article 1(3) shall apply from
the entry into force of the Regulation.
This Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at
                                                                      For the Council
 ---pagebreak---              INANCIAL STATEMENT                                                                     VI/2561/98F (PHOPT\EN\0051 .doc)
                                                                                                    Date:
      BUDGET HEADING: B1-1402                                                                       APPROPRIATIONS:
                                                                                                    ECU 16 million
      TITLE:                                                                                                                         :
      Proposal for a Council Regulation amending Regulation (EEC) No 619/71 laying down general rules for granting aid for
      flax and hemp
      LEGAL BASIS:
      Article 4(4) of Regulation (EEC) No 1308/70
      AIMS:
      To introduce new provisions to provide better guarantees that the hemp for which aid is requested is grown for real and
      legitimate uses.
      FINANCIAL IMPLICATIONS                                        PERIOD OF 12                           CURRENT         FOLLOWING
                                                                      MONTHS                              FINANCIAL         FINANCIAL
                                                                                                             YEAR              YEAR
                                                                                                              (98)              (99)
                                                                    (ECU million)                       (ECU million)      (ECU million)
5.0   EXPENDITURE
      - CHARGED TO THE EC BUDGET                                             0)                                                  (1)
           (REFUNDS/INTERVENTION)
      - NATIONAL AUTHORITIES
      - OTHER
5.1.  REVENUE
      - OWN RESOURCES OF THE EC
           (LEVIES/CUSTOMS DUTIES)
      - NATIONAL
                                                                       2000                          2001           2002           2003
5.0.1 ESTIMATED EXPENDITURE                                             (1)                           (1)            (1)            (1)
5.1.1 ESTIMATED REVENUE
5.2   METHOD OF CALCULATION:
6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE                                                                YES/NO
      RELEVANT CHAPTER OF THE CURRENT BUDGET?
6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE                                                               VUK/NJQ
      CURRENT BUDGET?
6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                                                     VfiS/NO
6.3   WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                                               YES/NO
OBSERVATIONS:
(1)    The proposed measure has no direct impact on the budget. However, the obligation to conclude contracts and to have the
       hemp processed by approved processors along with the new conditions regarding the harvesting of seed and the
       introduction of an administrative supervision system could result in a decrease in land eligible for aid. Any savings
       resulting from such a decrease are difficult to calculate.
                                                                       ^r^r^i*rr , "".tE^3rs i .. :
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(98) 280 final
                                              DOCUMENTS
EN                                                            03  15  10   01
                                    Catalogue number : CB-CO-98-290-EN-C
                                                             ISBN 92-78-35539-9
Office for Official Publications of the European Communities
L-2985 Luxembourg
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