PART IVCOMPETITION RULES

CHAPTER IRules applying to undertakings

Article 178Binding effect of agreements and concerted practices on non-members in the tobacco sector

1

Interbranch organisations in the tobacco sector may request that certain of their agreements or concerted practices be made binding for a limited period on individuals and groups in the economic sector concerned which are not members of the trade branches which they represent, in the areas in which the branches operate.

In order for their rules to be extended, interbranch organisations shall represent at least two thirds of the production and/or the trade concerned. Where the proposed extension of the rules is of inter-regional scope, the interbranch organisations shall prove they possess a minimum degree of representativeness, in respect of each of the grouped branches, in each region covered.

2

The rules for which an extension of scope is requested shall have been in force for at least one year and shall relate to one of the following objectives:

a

knowledge of production and the market;

b

definition of minimum qualities;

c

use of cultivation methods compatible with the protection of the environment;

d

definition of minimum standards of packing and presentation;

e

use of certified seed and monitoring of product quality.

3

Extension of the rules shall be subject to approval by the Commission.