{
  "url": "https://openlegislation.uk/eu-decision-2006-901/division-5/1",
  "json_url": "https://openlegislation.uk/eu-decision-2006-901/division-5/1.json",
  "legislation": "eudn/2006/901",
  "legislation_title": "Commission Decision of 20 October 2005 relating to a proceeding under Article 81(1) of the EC Treaty (Case COMP/C.38.281/B.2 — Raw tobacco Italy) (notified under document number C(2005) 4012) (Only the English and Italian texts are authentic) (2006/901/EC)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2006-901",
  "path": "division/5/1",
  "kind": "division",
  "number": "5.1",
  "heading": "The CMO for raw tobacco",
  "text": "The CMO in the raw tobacco sector provides for (i) a production quota system and (ii) support of producers’ income through a premium system for the production of raw tobacco.\nPremium is only granted in respect of tobacco produced within the quota (with certain adjustments). Since 1998, the payment of part of the Community premium (so-called variable part) has been linked to the quality of the tobacco produced which is reflected in the price. The payment of the variable part of the premium is entrusted to the producers’ groups.\nThe CMO requires each producer or producers’ group and each first processor to enter into so-called ‘cultivation contracts’ at the start of each year's campaign (around March-May, when tobacco seedlings are transplanted) where they agree on ‘contract prices’ for each quality grade for each individual variety. At this stage, prices are often expressed as minimum prices or a price range. To note, however, that the final price (or ‘delivery price’) can only be determined when the harvest takes place (i.e. between October and January) and can vary significantly from the ‘cultivation contract price’, depending on quality, quantities and further bargaining.\nCommunity law favours the creation of inter-branch organisations within which producers and processors should co-operate for the efficient operation of the market. Prices and quota fixing are however expressly forbidden. None of the associations involved in this case is an inter-branch organisation within the meaning of Community law.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Council Regulation (EEC) No 727/70 of 21 April 1970 on the common organisation of the market in raw tobacco, hereinafter ‘Regulation 727/70’ (OJ L 94, 28.4.1970, p. 1) as amended by Council Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco, hereinafter ‘Regulation 2075/92’ (OJ L 215, 30.7.1992, p. 70) (last amended by Council Regulation (EC) No 864/2004 of 29 April 2004 (OJ L 161, 30.4.2004, p. 48)). See also Council Regulation (EC) No 1636/98, of 20 July 1998 amending Regulation 2075/92, hereinafter ‘Regulation 1636/98’ (OJ L 210, 28.7.1998, p. 23) and Commission Regulation (EC) No 2848/98 of 22 December 1998 laying down detailed rules for the application of Council Regulation 2075/92 as regards the premium scheme, production quotas and the specific aid to be granted to producer groups in the raw tobacco sector, hereinafter ‘Regulation 2848/98’ (OJ L 358, 31.12.1998, p. 17), as last amended by Commission Regulation (EC) No 1983/2002 of 7 November 2002 (OJ L 306, 8.11.2002, p. 8)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2006/901/division/5/1",
    "retrieved_at": "2026-11-01T15:17:22.538172+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}