31.12.98 Official Journal of the European Communities L 358/17 COMMISSION REGULATION (EC) No 2848/98 of 22 December 1998 laying down detailed rules for the application of Council Regulation (EEC) No 2075/92 as regards the premium scheme, production quotas and the specific aid to be granted to producer groups in the raw tobacco sector THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco ('), as last amended by Regulation (EC) No 1636/98 (%), and in particular Articles 7, 9(5), 11, 14a and 17(5) and 27 thereof, Whereas Regulation (EC) No 1636/98 introduced a fundamental reform of the raw tobacco sector to improve its economic position; whereas this reform entailed a variation of Community aid in line with product quality, greater flexibility and simplicity in the quota system, stricter control procedures and improved observance of public health and environmental protection requirements; Whereas, detailed implementing rules must be adopted following this reform; whereas, in order to simplify agri- cultural legislation, Commission Regulations (EEC) No 3478/92 (%), as last amended by Regulation (EC) No 1578/ 98 (%), (BEC) No 84/93 (%), as last amended by Regulation (EC) No 621/96(°) and (EC) No 1066/95(), as last amended by Regulation (EC) No 1578/98, should be replaced by a single Regulation; Whereas, with regard to the conditions for recognition of producer groups, the minimum size should be fixed as a percentage, representing the relationship between the quantities in the quota statements and the Member State’s guarantee threshold; whereas, for the purpose of recog- nising producer groups, Member States should be able to increase the percentage of quota statements in their ter- ritory and lay down minimum recognition conditions concerning the number of producers; Whereas the requirements for the recognition of producer groups should be laid down in order that they may qualify for that specific aid; NS SN NN N < 215, 30. 7. 1992, p. 70. 210, 20. 7. 1998, p. 23. 351, 2. 12. 1992, p. 17. 206, 23. 7. 1998, p. 19. 12, 20. 1. 1993, p. S. 89, 10. 4. 1996, p. 8. 108, 13. 5. 1995, p. S. SN 35 ASASASASASASAS: | onll ol ol ol ol ol o8 Whereas, in order to respect market structures, it should be laid down that a producer may be a member of one group only; whereas, to facilitate the transition, producers who are members of more than one group should be given the opportunity of withdrawing from memberships by 31 January 1999; Whereas, in line with the intentions of Article 12 of Regulation (EEC) No 2075/92 and in particular to prevent distortion of competition and monitoring diffi- culties, producer groups should be debarred from engaging in first processing; Whereas to ensure uniformity of administrative proced- ures, rules should be laid down on applications for and the grant and withdrawal of recognition and the monitoring of the recognition requirements; Whereas a mechanism should be introduced for the approval of processing undertakings authorised to sign cultivation contracts, such approval should be withdrawn where the rules are not observed and the special condi- tions governing the processing of tobacco in a Member State should be laid down; Whereas the recognised production areas should be fixed for each group of varieties of tobacco on the basis of the traditional production areas for the purposes of granting the premium; whereas, in view of the relatively small area of French communes, those areas should be based on cantons rather than communes in France; whereas Member States should be permitted to limit production areas in order, in particular, to improve quality; Whereas the main points which must be included in cultivation contracts must be specified; whereas contracts must be limited to one harvest so that account can be taken of future changes in the market; whereas suffi- ciently early final dates for the conclusion and registration of contracts should be fixed to enable them to guarantee, from the very beginning of the year of harvest, both stable outlets to producers for the coming harvest and regular supplies to processors;