(1)

Article 2 of Council Regulation (EC) No 1673/2000 of 27 July 2000 on the common organisation of the markets in flax and hemp grown for fibre (1) provides for processing aid for flax and hemp straw. This aid is granted to authorised primary processors.

(2)

Under Article 7(1) of Commission Regulation (EC) No 245/2001 of 5 February 2001 laying down detailed rules for the application of Council Regulation (EC) No 1673/2000 on the common organisation of the markets in flax and hemp grown for fibre (2), aid for processing flax and hemp straw is payable on flax and hemp fibre only where it comes from straw covered by sale/purchase contracts, processing commitments or processing contracts for which a single aid application as foreseen in Part II, Title II, Chapter I of Commission Regulation (EC) No 796/2004 (3) was submitted in respect of the marketing year concerned.

(3)

As a result, in Bulgaria and Romania (hereinafter referred to as the new producer Member States), flax and hemp fibre obtained from straw produced before the 2007/2008 marketing year is not eligible for aid. Transitional measures should therefore be taken to enable Bulgarian and Romanian processors to qualify for this measure.

(4)

These measures must include appropriate monitoring mechanisms to ensure compliance with Article 7(1) of Regulation (EC) No 245/2001. Therefore provision should be made for authorised primary processors in the new producer Member States, and primary processors who have submitted an application for authorisation for which the competent authority has not yet granted authorisation, to inform the national inspection bodies of the quantities of flax and hemp straw and fibre held by them at the beginning of the 2007/2008 marketing year. Provision should also be made for checks to be carried out by the inspection bodies and for the introduction of a penalty system.

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Natural Fibres,