Council Regulation (EC) No 1673/2000 (repealed)Show full title

Council Regulation (EC) No 1673/2000

of 27 July 2000

on the common organisation of the markets in flax and hemp grown for fibre (repealed)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof;

Having regard to the proposal from the Commission(1),

Having regard to the opinion of the European Parliament(2),

Having regard to the opinion of the Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Whereas:

(1) The operation and development of the common market for agricultural products must be accompanied by the establishment of a common agricultural policy. Such a policy must include, in particular, a common organisation of agricultural markets which may take various forms, depending on the product.

(2) The aim of the common agricultural policy is to attain the objectives set out in the Treaty. In the case of flax and hemp grown for fibre, in addition to the provisions on area payments in Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a support system for producers of certain arable crops(5), measures are needed to govern the internal market, including aid to primary processors of flax and hemp straw or to farmers who have the straw processed at their own expense.

(3) In order to ensure that flax and hemp straw is actually processed, grant of the aid should be subject to certain conditions, in particular the authorisation of primary processors and the requirement that such processors purchase the straw under contract. Likewise, in order to counter any possible abuse, aid for processing will be granted only on the basis of the processing of the straw, or on the basis of the use of the fibres on the market if the farmer has the straw processed on his behalf.

(4) In order to prevent improper use of Community funds, no aid should be granted to primary processors or farmers who are found to have artificially created the conditions for receiving the aid, thereby enjoying an advantage that does not conform to the objectives of the support scheme for straw processing.

(5) In view of the differences between the market for long flax fibre and the market for short flax fibre and hemp fibre, the aid should be differentiated according to which of the two types of fibre is obtained. In order to ensure that overall support is sufficient to maintain traditional production of long flax fibre in conditions similar to those provided for in Council Regulation (EEC) No 1308/70 of 4 July 1970 on the common organisation of the market in flax and hemp(6), the aid should be gradually increased to offset the gradual reduction in the aid per hectare paid to growers under Regulation (EC) No 1251/1999 and, ultimately, the abolition of the aid for short flax fibre. The aid for short flax fibre and hemp fibre should be fixed at a level that will give new products and their potential outlets the time to reach equilibrium. In order to promote only the production of high quality short flax fibre and hemp fibre, provision should be made for a maximum percentage of impurities and shives, together with transitional provisions to enable the processing industry to adapt to this requirement.

(6) In order to take account of the special status of traditional flax in certain areas of the Netherlands, Belgium and France, additional transitional aid must be granted to the primary processors of straw in respect of the areas concerned.

(7) In order to prevent any fraudulent increases in the quantities eligible for aid, the Member States should fix maximum quantities on the basis of the areas whose straw is the subject of processing contracts or commitments.

(8) In order to keep down the expenditure incurred in applying this Regulation, a stabiliser mechanism should be introduced for both types of fibre obtained, i.e. long flax fibre and short flax fibre and hemp fibre. In order to ensure reasonable production levels in each Member State, a maximum guaranteed quantity should be set for both types of fibre, to be distributed among the Member States as national guaranteed quantities. However, national guaranteed quantities will be fixed for short flax fibre and hemp fibre only for the time needed to allow the new products to adjust to the market. The national guaranteed quantities will apply to processing aid and will not affect the system introduced by Regulation (EC) No 1251/1999. The national guaranteed quantities should be fixed taking account in particular of the most recent average areas under fibre flax and hemp, adjusted where necessary to reflect the areas actually in production, multiplied by average fibre yields. With regard to Member States whose current production is low, provision should be made for a common quantity to be apportioned each marketing year in order to enable them to adapt and develop their production.

(9) To enable the Member States to make adjustments between the quantities thus obtained, conditions should be laid down governing transfers between the national guaranteed quantities allocated to each. Any such transfers should be carried out on the basis of a coefficient to ensure budgetary equivalence.

(10) The producer Member States must take the steps needed to ensure that the arrangements for granting the aid operate smoothly. Furthermore, because of the time needed to process all the straw harvested in one marketing year, provision should be made for advance payments as a verification measure.

(11) Taken as a whole, the regime governing trade with third countries should make it possible to dispense with all quantitative restrictions and taxes levied at the Community's external borders. However, this mechanism may in exceptional circumstances prove defective. In such cases, so as not to leave the Community market without defence against disturbances which may ensue, the Community should be able to take all necessary measures without delay. All such measures must comply with the obligations arising from the World Trade Organisation agreements on agriculture(7).

(12) In order to prevent illicit crops from disturbing the common organisation of the market in hemp for fibre, provision should be made for checks on imports of hemp and hemp seed to ensure that such products offer certain guarantees with regard to the tetrahydrocannabinol content. In addition, imports of hemp seeds intended for uses other than sowing must be subjected to a control system which makes provision for a system for authorising the importers concerned.

(13) As the market in flax and hemp grown for fibre develops over time, Member States and the Commission must exchange all the information needed for this Regulation to be applied.

(14) The measures necessary for the implementation of this Regulation should 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 Commission(8).

(15) Expenditure incurred by the Member States as a result of the obligations arising out of the application of this Regulation should be financed by the Community in accordance with Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy(9).

(16) Although the common organisation of the market in flax and hemp as defined in Regulation (EEC) No 1308/70 has been amended a number of times, it nevertheless no longer reflects the deep changes that the sector has undergone. This being so, Regulation (EEC) No 1308/70 and Council Regulation (EEC) No 619/71 of 22 March 1971 laying down general rules for granting aid for flax and hemp(10) should be repealed. Council Regulation (EEC) No 620/71 of 22 March 1971 laying down outline provisions for contracts for the sale of flax and hemp straw(11), Council Regulation (EEC) No 1172/71 of 3 June 1971 laying down general rules on private storage aid for flax and hemp fibre(12), Council Regulation (EEC) No 1430/82 of 18 May 1982 providing for restrictions on the importation of hemp and hemp seed and amending Regulation (EEC) No 1308/70 in respect of hemp(13) and Council Regulation (EEC) No 2059/84 of 16 July 1984 laying down general rules relating to the import restrictions on hemp and hemp seed and amending Regulation (EEC) No 619/71 in respect of hemp(14), which are based on Regulations (EEC) No 1308/70 and (EEC) No 619/71, should be repealed and replaced by the new provisions in this Regulation.

(17) The change from the arrangements in Regulation (EEC) No 1308/70 to those in this Regulation could give rise to difficulties which are not dealt with in this Regulation. In order to deal with that eventuality, provision should be made for the Commission to adopt the necessary transitional measures. The Commission should also be authorised to solve specific practical problems.

(18) Having regard to the date on which this Regulation enters into force, provision needs to be made for special measures for the 2000/2001 marketing year. To that end, the system in force during the 1999/2000 marketing year should remain applicable until 30 June 2001. However, the amounts of aid should be fixed by the Commission on the basis of the budget balances as soon as the areas concerned have been reliably assessed, and the amount withheld for the financing of measures promoting the use of flax fibre should be set at zero.

(19) In order to evaluate the effects of the new measures, the Commission will submit to the European Parliament and the Council reports concerning, on the one hand, in 2003 the national guaranteed quantities and the maximum level of impurities and skives in short flax fibre and hemp fibre, and, on the other hand, in 2005 the impact of processing aid and supplementary aid on producers and markets,

HAS ADOPTED THIS REGULATION:

(1)

OJ C 56 E, 29.2.2000, p. 19.

(2)

Opinion delivered on 6 July 2000 (not yet published in the Official Journal).

(3)

OJ C 140, 18.5.2000, p. 3.

(4)

Opinion delivered on 14 June 2000 (not yet published in the Official Journal).

(5)

OJ L 160, 26.6.1999, p. 1. Regulation as last amended by Regulation (EC) No 1672/2000 (see p 13 of this Official Journal).

(6)

OJ L 146, 4.7.1970, p. 1. Regulation last amended by Regulation (EC) No 2702/1999 (OJ L 327, 14.12.1999, p. 7.).

(7)

OJ L 336, 23.12.1994, p. 22.

(8)

OJ L 184, 17.7.1999, p. 23.

(9)

OJ L 160, 26.6.1999, p. 103.

(10)

OJ L 72, 26.3.1971, p. 2. Regulation as last amended by Regulation (EC) No 1420/98 (OJ L 19, 4.7.1998, p. 7).

(11)

OJ L 72, 26.3.1971, p. 4. Regulation as last amended by Regulation (EC) No 713/95 (OJ L 73, 1.4.1995, p. 16).

(12)

OJ L 123, 5.6.1971, p. 7.

(13)

OJ L 162, 12.6.1982, p. 27. Regulation as last amended by Regulation (EC) No 3290/94 (OJ L 349, 31.12.1994, p. 105).

(14)

OJ L 191, 19.7.1984, p. 6. Regulation as last amended by Regulation (EC) No 3290/94.