Where the situation on the Community market for one or more of the products listed in the Annex and its foreseeable development do not ensure producers a fair income, aid may be granted for the production of basic seed or certified seed.

F3This aid, which shall be uniform throughout the Community for each species or group of varieties, shall be fixed every two years before 1 August for the marketing year beginning in the following year and for the subsequent marketing year. However, the aid for the 1978/79 and 1979/80 marketing years shall be fixed before 1 July 1978. If, for the two-year period for which aid has been fixed, the stability of the market in the Community appears to be seriously threatened, the Council, acting by a qualified majority on a proposal from the Commission, may order the aid for the second year of the period in question to be modified. F4This modification must be made before the start of the marketing year concerned and in good time to allow action as regards production.

The amount of aid shall be fixed in accordance with the procedure laid down in Article 43 (2) of the Treaty.

The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall adopt general rules for the granting of aid and decide, where appropriate, on amendments to the Annex.

The maximum quantity of seed on which the aid is payable in the Community shall be fixed in accordance with the procedure referred to in paragraph 5. That quantity shall be apportioned among the producer Member States.

X1The maximum quantity of seed other than rice seed on which the aid is payable shall be equal to the sum of the quantities relating to each Member State which are established on the basis of the average of the harvested quantities taken into account for the 1996/97 to 2000/01 marketing years, excluding the two extremes, plus 5 %.

Where the quantity established for a Member State pursuant to the second subparagraph does not exceed 800 tonnes, an additional quantity of 300 tonnes shall be granted to that Member State.

If, for seed other than rice seed, the sum total of the quantities for which aid is applied for in producer Member States exceeds the maximum quantity set for the Community, the aid shall be reduced for the following marketing year in each Member State concerned in proportion to the overrun of its national quantity taking into account the quantities not used by Member States. In this case the Commission shall set the reduction percentages applicable for each producer Member State.

Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 11.

The varieties of Cannabis sativa L. on which the aid provided for in this Articles is payable shall be determined in accordance with the procedure laid down in Article 11.

For certain species, with effect from 1 February 1979 all seed multiplication contracts concluded between a seed undertaking or grower in the Community and a seed producer established in a third country may be made subject to compulsory registration with the bodies appointed for that purpose by each Member State.

Member States shall communicate periodically to the Commission statistical data concerning the registration of multiplication contracts.

The data relating to the registration of multiplication contracts may be utilized only for the purposes of application of this Regulation.

The detailed rules of application for this Article, and in particular the definition of the seed multiplication contract and the list of species referred to in paragraph 1, shall be adopted in accordance with the procedure laid down in Article 11

Imports into the Community of any of the products listed in Article 1 may be made conditional on the submission of an import licence issued by Member States to any applicant irrespective of the place of his establishment in the Community.

This licence shall be valid for imports effected within the Community.

With the exception of imports effected under duly registered contracts for growing in third countries, the issue of such licences shall be conditional on the lodging of a deposit guaranteeing that importation is effected during the period of validity of the licence; the deposit shall be forfeited in whole or in part if the transaction is not effected, or is only partially effected, within that period.

The list of products for which import licences are required shall be determined in accordance with the procedure laid down in Article 11.

The period of validity of licences and other detailed rules for the application of this Article shall be determined in accordance with the same procedure.

Unless this Regulation provides otherwise, the rates of duty in the Common Customs Tariff shall apply to the products listed in Article 1.

The general rules for the interpretation of the combined nomenclature and the special rules for its application shall apply to the classification of products covered by this Regulation; the tariff nomenclature resulting from the application of this Regulation shall be incorporated in the Common Customs Tariff.

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 jeopardize the achievement of the objectives set out in Article 39 of the Treaty, appropriate measures may be applied in trade with third countries until such disturbance or threat of disturbance has ceased.

The Council, acting on a proposal from the Commission in accordance with the voting procedure laid down in Article 43 (2) of the Treaty, shall adopt the general rules for the application of this paragraph and shall define in what cases and within what limits Member States may take protective measures.

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, is (SIC! it) shall take a decision thereon within three working days following receipt of the request.

Measures decided upon by the Commission may be referred to the Council by any Member State within three working days of the day on which they were notified. The Council shall meet without delay. It may, acting by a qualified majority, amend or annul the measure in question.

This Article shall be applied having regard to the obligations arising from agreements concluded in accordance with Article 228 (2) of the Treaty.

The Commission shall be assisted by a Management Committee for Seeds (hereinafter referred to as ‘the Committee’).

Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month.

The Committee shall adopt its rules of procedure.