1999R2771 — EN — 15.08.2001 — 004.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No2771/1999
of16December 1999
layingdowndetailedrulesfortheapplicationofCouncilRegulation(EC)No1255/1999asregards
interventiononthemarketinbutterandcream
(OJ L 333, 24.12.1999, p. 11)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 1560/2000 of 17 July 2000 L 179 10 18.7.2000
►M2Commission Regulation (EC) No 2099/2000 of 3 October 2000 L 249 20 4.10.2000
►M3Commission Regulation (EC) No 213/2001 of 9 January 2001 L 37 1 7.2.2001
►M4Commission Regulation (EC) No 1614/2001 of 7 August 2001 L 214 20 8.8.2001
Corrected by:
►C1Corrigendum, OJ L 43, 14.2.2001, p. 40 (2771/1999)
▼B
COMMISSIONREGULATION(EC)No2771/1999
of16December 1999
layingdowndetailedrulesfortheapplicationofCouncilRegulation
(EC)No1255/1999asregardsinterventiononthemarketinbutter
andcream
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 1255/1999 of 17 May
1999 on the common organisation of the market in milk and milkproducts(
1), and in particular Articles 10 and 40 thereof,
Whereas:
(1)Regulation EC) No 1255/1999 replaced Council Regulation
(EEC) No 804/68(2), as last amended by Regulation (EC) No
1587/96(3), and also inter alia , Council Regulation (EEC) No
777/87(4), as last amended by Regulation (EEC) No 1634/91(5),
concerning the intervention arrangements for butter andskimmed-milk powder. In view of those new arrangements and
in the light of the experience gained, it is appropriate to amend
and, where necessary simplify the detailed rules governingintervention on the market in butter and cream. In the interestsof clarity, therefore, the recasting of the specific Regulationsgoverning the various aspects of intervention, namely Commis-
sion Regulations (EEC) No 2315/76(
6), as last amended by
Regulation (EC) No 1824/97(7), (EEC) No 1547/87(8), as last
amended by Regulation (EC) No 1802/95(9), (EEC) No 1589/
87(10), as last amended by Regulation (EC) No 124/1999(11), and
(EC) No 454/95(12), as last amended by Regulation (EC) No 390/
1999(13), should be undertaken.
(2)Article 6(1) of Regulation (EC) No 1255/1999 lays down criteriaunder which the intervention agencies buy in butter throughinvitation to tender and under which buying-in is to be suspended.It is necessary, firstly, to specify the cases in which buying-in isto be opened or suspended in the Member State concerned and,
secondly, to fix the representative period during which the level
of market prices for butter in relation to the intervention pricemust be recorded. To that end, the ‘market price for butter’ shouldbe defined and arrangements set up for recording those prices atnational level. For practical reasons, the Belgo-Luxembourg
Economic Union should be considered a single Member State.
(3)The intervention agencies may only buy in butter which meets the
requirements laid down in Article 6 of Regulation (EC) No 1255/1999 as well as the conditions of quality and presentation, whichneed to be defined. The methods of analysis and detailed rules
governing quality control should also be specified and, if the
situation so requires, provision should be made for checks of theradioactivity in butter, the maximum levels of which need to beestablished, where appropriate, by Community legislation.However, it should be possible for Member States to authorise
a system of self checking, subject to certain conditions. For1999R2771 — EN — 15.08.2001 — 004.001 — 2
(1) OJ L 160, 26.6.1999, p. 48.
(2) OJ L 148, 28.6.1968, p. 13.
(3) OJ L 206, 16.8.1996, p. 21.
(4) OJ L 78, 20.3.1987, p. 10.
(5) OJ L 150, 15.6.1991, p. 26.
(6) OJ L 261, 25.9.1976, p. 12.
(7) OJ L 260, 23.9.1997, p. 8.
(8) OJ L 144, 4.6.1987, p. 12.
(9) OJ L 174, 26.7.1995, p. 27.
(10) OJ L 146, 6.6.1987, p. 27.
(11) OJ L 16, 21.1.1999, p. 19.
(12) OJ L 46, 1.3.1995, p. 1.
(13) OJ L 48, 24.2.1999, p. 3.
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practical reasons, the period during which butter offered for
intervention is produced should be extensible when the intervalbetween two invitations to tender is longer than 21 days.
(4)To ensure that the intervention arrangements function smoothly, it
is necessary to specify the conditions for the approval of
manufacturing undertakings and verification of compliancetherewith. To ensure that the arrangements are effective,provision should be made for action to be taken if theseconditions are not complied with. Since butter may be bought
in by an intervention agency belonging to a Member State other
than that on whose territory it was produced, the interventionagency which does the buying-in should in such cases be able toverify that the conditions relating to quality and presentation arecomplied with.
(5)Regulation (EC) No 1255/1999 stipulates that buying-in is to becarried out by tendering procedure. To ensure that all interested
parties in the Community are treated equally, invitations to tender
should be advertised in the Official Journal of the European
Communities . The details of the tender, particularly the minimum
quantity, deadlines for submission and the maximum buying-inprice should be defined. To ensure compliance with the
requirements as to the quality and presentation of the butter at
the time when the tender is submitted, and after its entry intostorage, tenderers should be required to submit a writtenundertaking to that effect together with their tender. Tendersshould also be accompanied by a security, in order to guaranteethat the tender will be maintained after the closing date for
submission of tenders and that the butter will be delivered within
time limits to be laid down.
(6)It should be possible to guarantee the quality of the butter, and theterms of buying-in by means of checks at different stages duringstorage. Failure to comply with the requirements should notimpose an additional burden on the Community budget. Provisionshould therefore be made for sub-standard butter to be taken back
by the operator, who should be obliged to bear the storage costs
incurred.
(7)The Member States' obligations should be specified with a viewto the proper management of stocks in storage, by stipulating amaximum distance for the place of storage and the costs to beborne when that distance is exceeded, and requiring, in particular,
that stocks be accessible, that batches be identified and that butter
in storage be insured against risks. In order to ensure a uniformfrequency and level of checks, it is necessary to specify the natureand number of inspections of storage premises to be performed bythe national authorities.
(8)Proper management of intervention stock requires the butter to beresold as soon as outlets become available. To ensure equal access
to butter for sale, all interested parties should be able to buy. In
order not to destabilise the market, the selling price should befixed having regard to the market situation. Conditions for sale,entailing the lodging of a performance bond should be laid down,particularly as regards the taking-over of the butter and the timelimits for payment. In order to monitor the situation of stocks,
Member States should inform the Commission of the quantities of
butter sold.
(9)Article 6(3) of Regulation (EC) No 1255/1999 provides for aid tobe granted for the private storage of butter and cream. To ensurethat the arrangements can be monitored properly, provisionshould be made for a contract and a set of specifications regarding
storage conditions. For the same reason, detailed rules should also
be laid down regarding documentation, accounting and thefrequency of checks and inspection procedures, particularly inrespect of the requirements laid down in Article 6(3). To facilitatechecks on the presence of products stored under private storagecontracts, there should be provision for them to be removed from1999R2771 — EN — 15.08.2001 — 004.001 — 3
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storage in lots unless the Member State authorises removal of a
smaller quantity.
(10)To ensure that the private storage scheme is properly managed, it
is appropriate to fix annually, on the basis of the storage period,
the amount of the aid, the dates of entry into storage and the dateson which storers may remove from storage all or part of thequantities comprised in the contracts. Such dates, storage periodsand aid amounts may be changed to take account of the marketsituation.
(11)In the case of aid for cream, in order to take account of the value
of the product and for practical reasons, the amount of aid should
be fixed in butter equivalent and according to fat content. It isalso justified to require that fat content be checked systematically.To that end, storers should be required to undertake to complywith a minimum fat content, fixed in advance, for the entirestorage period. Experience has shown that in some cases it is
desirable to ease the administrative burden by providing for
checks by sampling. However, since it is impossible to verifyexactly the fat content of cream after freezing, where theabovementioned undertaking is not complied with no aid shouldbe paid for any of the lots placed in storage after the most recent
satisfactory check.
(12)The third subparagraph of Article 6(3) of Regulation (EC) No
1255/1999 provides that the amount of the aid may be increased ifchanges on the market so warrants. The conditions determiningthis adjustment, and its scope, should therefore be defined.
(13)Since Regulation (EC) No 1255/1999 fixes the intervention pricefrom 1 July 2000, in the interests of clarity the intervention priceapplicable from the date of entry into force of this Regulation
until 30 June 2000 should be specified.
(14)The measures provided for in this Regulation are in accordance
with the opinion of the Management Committee for milk and milkproducts,
HAS ADOPTED THIS REGULATION:
CHAPTERI
Scope
Article 1
1. This Regulation lays down the detailed rules for applying
intervention measures in the milk and milk products sector as providedfor in Article 6 of Regulation (EC) No 1255/1999.
2. For the purposes of this Regulation, the Belgo-Luxembourg
Economic Union shall be considered a single Member State.
CHAPTERII
Public storage
SECTION 1
Conditions for buying in butter
Article 2
1. Once it has observed, in accordance with Article 8(4) of this
Regulation, that the market price in a Member State is lower than 92 %of the intervention price, for two weeks in succession, the Commissionshall commence buying-in under a tendering procedure in the MemberState concerned, in accordance with Article 6(1) of Regulation (EC) No1255/1999.1999R2771 — EN — 15.08.2001 — 004.001 — 4
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2. Once it has observed, in accordance with Article 8(4) of this
Regulation, that the market price in a Member State is equal to or higherthan 92 % of the intervention price, for two weeks in succession, the
Commission shall suspend buying-in under a tendering procedure in the
Member State concerned, in accordance with Article 6(1) of Regulation(EC) No 1255/1999.
Article 3
The intervention agencies shall buy in only butter which meets the
provisions contained in the first subparagraph of Article 6(2) of
Regulation (EC) No 1255/1999 and in Article 4 of this Regulation.
Article 4
1.►
M3The competent authorities shall check the quality of butter
using the methods described in Annex I and on the basis of samples
taken in accordance with the rules set out in Annex IV. ◄However,
Member States may, if the Commission agrees, set up a system of selfchecking under their own supervision in respect of certain qualityrequirements and in the case of certain approved undertakings.
2. Levels of radioactivity in the butter may not exceed the maximum
levels permitted, where applicable, under Community rules.
The level of radioactive contamination of the product shall be monitored
only if the situation so requires, and during the requisite period. Where
necessary, the duration and scope of checks shall be determined inaccordance with the procedure laid down in Article 42 of Regulation(EC) No 1255/1999.
3. The butter shall have been made during the 23 days preceding the
closing date for submission of tenders as referred to in Article 10. Where
the interval between two consecutive invitations to tender is longer than21 days, the butter may have been made during that period.
4. The minimum quantity of butter offered shall be 10 tonnes.
Member States may require butter to be offered by the full tonne only.
5. The butter shall be packaged and delivered in blocks of at least 25
kilograms net.
6. The butter shall be packed in new, strong material in such a way as
to ensure it is protected throughout transportation, storage and removalfrom storage. The packaging shall show at least the followingparticulars, where appropriate in code:
(a) the approval number identifying the factory and the Member State of
production;
(b) the date of production;
(c) the date of entry into storage;
(d) the production batch number and the package number; the package
number may be replaced by a pallet number marked on the pallet;
(e) the words ‘sweet cream’ if the aqueous phase of the butter has the
corresponding pH;
(f) the national quality class referred to in Annex V, where this is
required by the Member State of production.
Member States may waive the obligation to show the date of entry into
storage on the packaging, provided that the store manager undertakes tokeep a register in which the particulars referred to in the secondsubparagraph are recorded on the date of entry into storage.1999R2771 — EN — 15.08.2001 — 004.001 — 5
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Article 5
1. Undertakings as referred to in Article 6(2) of Regulation (EC) No
1255/1999 shall be approved only if they:
(a) are approved in accordance with Article 10 of Council Directive 92/
46/EEC(1), and have the appropriate technical equipment;
(b) undertake to keep permanent records in the form determined by the
competent agency of each Member State, listing the origin of the
raw materials, the quantities of butter obtained and the packaging,identification and exit date of each production batch intended forpublicintervention;
(c) agree to submit their production of butter to a specific official
inspection and, where applicable, to meet the requirements for thenational quality class referred to in Annex V;
(d) undertake to inform the competent agency responsible for inspec-
tion, at least two working days in advance, of their intention toproduce butter for public intervention. However, the Member Statemay set a shorter time limit.
2. To ensure compliance with this Regulation, the competent
agencies shall carry out unannounced on-the-spot inspections, on the
basis of the intervention butter production schedule of the undertakings
concerned.
They shall carry out at least:
(a) one inspection per period of 28 days of production for intervention
with at least one inspection every six months, to examine the recordsreferred to in paragraph 1(b);
(b) one inspection every six months, to verify compliance with the other
conditions for approval referred to in paragraph 1.
3. Approval shall be withdrawn if the preconditions laid down in
paragraph 1(a) are no longer satisfied. Approval may be regranted at the
request of the enterprise concerned after a period of at least six months,following a thorough inspection.
Except in cases of force majeure , where an enterprise is found not to
have complied with one of its undertakings as referred to in paragraph1(b), (c) and (d), approval shall be suspended for a period of between
one and 12 months depending on the seriousness of the irregularity.
The Member State shall not impose the said suspension where it is found
that the irregularity was not committed deliberately or as a result ofserious negligence and it is of minor importance with regard to theeffectiveness of the inspections provided for in paragraph 2.
4. A report shall be drawn up on the inspections carried out pursuant
to paragraphs 2 and 3, specifying:
(a) the date of the inspection;
(b) its duration;
(c) the operations carried out.
The report shall be signed by the inspector responsible.5. Member States shall inform the Commission of the measures taken
with regard to the inspections provided for in paragraphs 2 and 3 within
one month of their adoption.
Article 6
1. Where the butter is offered to intervention in a Member State other
than that in which it was produced, buying-in shall be subject to thepresentation of a certificate supplied not later than 45 days after theclosing date for submission of tenders by the competent agency of theMember State of production.1999R2771 — EN — 15.08.2001 — 004.001 — 6
(1) OJ L 268, 14.9.1992, p. 1.
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The certificate shall contain the information referred to in Article
4(6)(a), (b), (d) and, where applicable, (f), and a confirmation that thebutter has been produced directly and exclusively from pasteurised
cream, within the meaning of the second indent of Article 6(6) of
Regulation (EC) No 1255/1999, in an approved undertaking in theCommunity.
2. Where the Member State of production has performed the checks
referred to in Article 4(1), the certificate shall also contain the results of
those checks and confirm that the product concerned is butter within the
meaning of the first subparagraph of Article 6(2) of Regulation (EC) No1255/1999. In that case, the packaging referred to in Article 4(6) must besealed by means of a numbered label issued by the competent agency ofthe Member State of production. The number must be entered on the
certificate referred to in paragraph 1.
SECTION 2
Price recording
Article 7
The market prices of butter as referred to in Article 6(1) of Regulation
(EC) No 1255/1999 shall be the prices ex-factory with payment within21 days, exclusive of national taxes and charges, of fresh butter meetingthe conditions set out in the first subparagraph of Article 6(2) ofRegulation (EC) No 1255/1999, packaged in blocks of at least 25
kilograms net.
The ex-factory prices shall be raised by a flat-rate amount of EUR 2,5
per 100 kilograms to take account of the transport costs necessary todeliver the butter to a cold storage plant.
Article 8
1. Market prices at national level shall be recorded each week, either
by prices boards or on the representative markets.
The weekly recording of prices shall relate to prices as provided for in
Article 7, recorded during the preceding week.
Prices shall be expressed in euro, rounded to two decimal places, per
100 kilograms.
2. Member States shall determine:
(a) the membership of prices boards, in such a way as to ensure that
buyers and sellers engaged in transactions involving a large quantity
of butter are equally represented or, as the case may be, the system
for recording prices on the representative markets;
(b) the provisions needed to check the data on which the price recording
is based;
(c) in cases where transactions relating to butter of the quality referred
to in the first paragraph of Article 7 are insufficient in volume to be
deemed representative, the criteria for establishing the ratio between
the prices for butter for which there have been enough transactionsand those for butter as referred to in Article 7.
The Member States shall provide the Commission with a description of
the arrangements set up in accordance with the first subparagraph.
3. Not later than 12 noon (Brussels time) of each Wednesday,
Member States shall inform the Commission of the prices recorded inaccordance with paragraph 1.
4. On each Thursday the Commission shall record the level of market
prices in each Member State in comparison with the intervention price.1999R2771 — EN — 15.08.2001 — 004.001 — 7
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SECTION 3
Tendering procedure
Article 9
Once the Commission has noted that the condition referred to in Article
2(1) is fulfilled in a Member State, the intervention agency concernedshall buy in butter in accordance with this Section.
A notice of invitation to tender shall be published in the OfficialJournal
of the European Communities .
Article 10
The closing date for submission of tenders for each individual invitation
to tender shall fall on every second and fourth Tuesday of the month at
noon (Brussels time), except the second Tuesday in August and the
fourth Tuesday in December. If the Tuesday is a public holiday, theclosing date shall be the last preceding working day at noon (Brusselstime).
Article 11
1. Interested parties shall participate in the tendering procedure
announced by the intervention agency of a Member State either bysubmitting a written tender against issuance of a receipt, or by anywritten means of telecommunication with proof of receipt.
2. Tenders shall contain:
(a) the name and address of the tenderer;
(b) the quantity offered, the minimum fat content;
(c) the proposed price per 100 kilograms of butter, exclusive of national
taxes and charges, delivered to the loading bay of the cold store,
expressed in euro to no more than two decimal places;
(d) the place where the butter is held.
3. Tenders shall be valid only if:
(a) they relate to a quantity of butter meeting the requirements of
Article 4(4);
(b) they are accompanied by a written undertaking by the tenderer to
comply with Articles 4(3) and 17(2);
(c) proof is furnished that the tenderer has lodged a security of EUR 5
per 100 kg for the invitation to tender concerned, in the MemberState in which the tender was submitted, before the closing date forsubmission of tenders.
4. The undertaking provided for in paragraph 3(b), if forwarded
initially to the intervention agency, shall be deemed to be tacitlyrenewed for subsequent tenders until explicitly cancelled by the tendereror the intervention agency, provided that:
(a) the original tender stipulates that the tenderer intends to avail
himself of this provision,
(b) subsequent tenders refer to this provision (Article 11 (4)) and to the
date of the original tender.
5. The intervention agency shall record the day on which the tender
was received, the quantities involved and their respective dates ofmanufacture and the place where the butter offered is stored.
6. Tenders may not be withdrawn after the closing date referred to in
Article 10 for the submission of tenders relating to the invitation to
tender concerned.
Article 12
Maintenance of the tender after the closing date for submission of
tenders, and delivery of the butter to the depot designated by the1999R2771 — EN — 15.08.2001 — 004.001 — 8
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intervention agency within the time limit laid down in Article 15(3),
shall constitute primary requirements within the meaning of Article 20of Commission Regulation (EEC) No 2220/85(
1).
Article 13
1. The Member States shall inform the Commission of the quantities
and prices offered by tenderers, no later than 9.00 a.m. (Brussels time)on the day after the closing date referred to in Article 10.
2. In the light of the tenders received for each invitation to tender, the
Commission shall fix a maximum buying-in price, by reference to theintervention prices applicable, in accordance with the procedure laid
down in Article 42 of Regulation (EC) No 1255/1999.
3. A decision may be taken not to proceed with the invitation to
tender.
Article 14
1. Tenders shall be refused if the price proposes higher than the
maximum price referred to in Article 13(2), applying to the tenderingprocedure concerned.
2. The rights and obligations resulting from the tendering procedure
shall not be transferable.
Article 15
1. Tenderers shall be informed immediately by the intervention
agency of the outcome of their participation in the tendering procedure.
Where tenders have been unsuccessful, the securities referred to in
Article 11(3)(c) shall be released immediately.
2. The intervention agency shall immediately issue to the successful
tenderer a dated and numbered delivery order indicating:
(a) the quantity to be delivered;
(b) the final date for delivery of the butter;
(c) the cold storage depot to which it must be delivered.
3. Within 21 days of the closing date for submission of tenders, the
successful tenderer shall deliver the butter to the loading bay of the coldstore. Delivery may be in several consignments.
Any costs incurred in unloading the butter at the loading bay of the cold
store shall be borne by the successful tenderer.
4. The security shall be released as soon as the successful tenderer
has delivered the quantity indicated on the delivery order within the time
limit laid down.
5. Except in cases of force majeure , where the successful tenderer
fails to deliver the butter within the time limit laid down, not only shall
the security provided for in Article 11(3)(c) be forfeit in proportion tothe quantities not delivered, but buying-in shall also be cancelled inrespect of the remaining quantities.
Article 16
1. The intervention agency shall pay the successful tenderer the price
indicated in the tender for each quantity of butter taken over, between
the 45th and 65th day after taking over, provided that compliance withthe provisions of Articles 3 and 4 has been confirmed.
2. The day of the taking-over shall mean the day on which the butter
enters the cold store designated by the intervention agency, but noearlier than the day following that on which the delivery order referredto in Article 15(2) was issued.1999R2771 — EN — 15.08.2001 — 004.001 — 9
(1) OJ L 205, 3.8.1985, p. 5.
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Article 17
1. The butter shall be put through a trial storage period. This period
shall be fixed at 30 days starting from the day of taking over.
2. By their tenders, sellers shall undertake that, where the inspection
on entry into the store designated by the intervention agency shows thatthe butter does not meet the provisions of Articles 3 and 4, or where, atthe end of the trial storage period, the minimum organolepticquality ofthe butter proves to be below that set in Annex I:
(a) they will take back the butter in question; and
(b) they will pay the storage costs of the butter concerned from the day
on which it was taken over until the date of its removal from storage.
The storage costs to be paid shall be determined on the basis of the
standard amounts for entry, removal and storage costs laid downpursuant to Article 6 of Council Regulation (EEC) No 1883/78(
1).
SECTION 4
Entry into and removal from storage
Article 18
1. The Member States shall lay down technical standards, providing
in particular for a storage temperature of not lower than -15 ºC, for thecold stores referred to in the third subparagraph of Article 6(2) of
Regulation (EC) No 1255/1999 and shall take any other measures
needed to ensure that the butter is properly conserved. The relevant risksshall be covered by insurance in the form of either a contractualobligation on storers or a comprehensive coverage of the liability borneby the intervention agency; the Member States may also act as their owninsurers.
2. The intervention agencies shall require that butter be delivered to
the loading bay of the cold store, and be taken into storage and keptthere, on pallets, in such a way as to create easily identifiable and readily
accessible lots.
3. The competent agency responsible for checks shall perform
unannounced checks on the presence of the butter in store, in accordance
with Article 4 of Commission Regulation (EC) No 2148/96(
2).
Article 19
1. The intervention agency shall choose the available cold store
nearest to the place where the butter is stored.
However, provided that the choice of another cold store does not result
in additional storage costs, it may choose another store situated withinthe distance referred to in paragraph 2.
It may choose a cold store situated beyond that distance if the resulting
expenditure, inclusive of storage and transport costs, is lower. In thiscase the intervention agency shall notify the Commission of its choiceforthwith.
2. The maximum distance referred to in the third subparagraph of
Article 6(2) of Regulation (EC) No 1255/1999 shall be 350 kilometres.Beyond that distance, the additional transport costs borne by the
intervention agency shall be EUR 0,065 per tonne and per kilometre.
However, where the intervention agency buying in the butter is in a
Member State other than the one in whose territory the offered butter is
stored, no account shall be taken, in calculating the maximum distancereferred to in the first subparagraph, of the distance between the store of1999R2771 — EN — 15.08.2001 — 004.001 — 10
(1) OJ L 216, 5.8.1978, p. 1.
(2) OJ L 288, 9.11.1996, p. 6.▼M1
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the vendor and the border of the Member State of the purchasing
intervention agency.
3. The additional charges referred to in paragraph 2 shall be borne by
the intervention agency only if the temperature of the butter does notexceed 6 ºC on arrival at the cold store.
Article 20
At the time of removal from store the intervention agency shall, in the
case of delivery ex-cold store, make the butter available on pallets at thestore's loadingbay, loaded, where appropriate, onto the means oftransport where this is a lorry or a railway wagon. The costs involvedshall be borne be the intervention agency and any stowage and
depalletising costs shall be borne by the purchaser of the butter.
SECTION 5
Sale of butter
Article 21
Intervention agencies in the Member States shall sell to any interested
party butter which they hold and which entered storage before ►M21
September 1999 ◄.
Article 22
1. Butter shall be sold ex-storage depot at a price equal to the
intervention price fixed in Article 4(1)(a) of Regulation (EC) No 1255/
1999 and applying on the day on which the sale contract is concluded,
plus EUR 1 per 100 kg.
It shall be sold in quantities of not less than five tonnes. However, where
the quantity remaining in a storage depot is less than five tonnes, the saleshall relate to that smaller quantity.
2. The intervention agency shall sell the butter only if a security equal
to EUR 10 per 100 kg is lodged, no later than the conclusion of thecontract of sale, in order to ensure that the primary requirements withinthe meaning of Article 20 of Regulation (EEC) No 2220/85 are fulfilled
as regards the taking-over of the butter within the time limit laid down in
the first subparagraph of Article 23(1) of this Regulation.
3. The intervention agency shall sell the butter according to the date
when it was placed in storage, starting with the oldest of the totalavailable quantity or, as the case may be, the quantity available in the
store or stores designated by the purchaser.
Article 23
1. The purchaser shall take delivery of the butter within one month
from the date on which the sale contract was concluded.
Delivery may be taken in instalments of not less than five tonnes each.
However, where the quantity remaining in a storage depot is less thanfive tonnes, that smaller quantity may be delivered.
2. Before taking delivery of each quantity of butter, the purchaser
shall pay the intervention agency the price corresponding to the quantitybeing delivered.
3. Except in the event of force majeure , the sales contract shall be
terminated in respect of any quantities of which the purchaser has not
taken delivery within the period specified in paragraph 1.
4. The security provided for in Article 22(2) shall be forfeit in respect
of any quantities for which the contract of sale is terminated inaccordance with paragraph 3. It shall be released immediately in respect
of quantities of which delivery is taken within the prescribed period.
5. In the event of force majeure , the intervention agency shall take
such action as it considers necessary having regard to the circumstancesinvoked.1999R2771 — EN — 15.08.2001 — 004.001 — 11
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Article 24
Member States shall inform the Commission not later than Tuesday of
each week of the quantities of butter which, during the preceding week:
(a) have been the subject of a sale contract;
(b) have been taken over.
CHAPTERIII
Private storageofbutterorcream
SECTION 1
Contract and storage conditions
Article 25
For the purposes of this Chapter:
— ‘storage lot’ means a quantity weighing at least one tonne and of
homogeneous composition and quality, originating in a single
factory, taken into storage in a single warehouse on a single day;
— ‘day of commencement of contractual storage’ means the day
following that of entry into store;
— ‘last day of contractual storage’ means the day preceding that of
removal from storage.
Article 26
Contracts relating to the private storage of butter or cream as referred to
in the fourth subparagraph of Article 6(3) of Regulation (EC) No 1255/1999 shall be concluded between the intervention agency of the Member
State on whose territory the butter and cream are stored and natural or
legal persons, hereinafter called ‘contractors’.
Article 27
1. A private storage contract may be concluded only for butter or
cream as referred to in the first subparagraph of Article 6(3) ofRegulation (EC) No 1255/1999.
Butter must have been produced in an undertaking approved in
accordance with Article 5(1)(a), (b) and (c) of this Regulation duringthe 28 days preceding the day of commencement of contractual storage.It shall correspond to the national quality class of the Member State ofproduction referred to in Annex V and its radioactivity level shall not
exceed the maximum permitted levels referred to in Article 4(2).
2. A storage contract may not be concluded for butter or cream:
(a) in respect of which an application for direct consumption aid has
been made under other Community provisions;
(b) which has been placed under the arrangements referred to in Article
5(1) of Council Regulation (EEC) No 565/80(
1); subsequent placing
under those arrangements shall be regarded as ending the contractualstorage period.
Article 28
1. Storage contracts shall be concluded in writing for one or more
storage lots and shall include, in particular, provisions concerning:
(a) the quantity of butter or cream to which the contract applies;
(b) the amount of the aid, without prejudice to Article 38;
(c) the dates relating to the execution of the contract, without prejudice
to the fifth subparagraph of Article 6(3) of Regulation (EC) No1255/1999;1999R2771 — EN — 15.08.2001 — 004.001 — 12
(1) OJ L 62, 7.3.1980, p. 5.
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(d) the identity of the cold stores.
2. The control measures, particularly those referred to in Article 33,
and the information referred to in paragraph 3 of this Article shall be thesubject of specifications drawn up by the intervention agency of the
Member State of storage. The storage contract shall refer to these
specifications.
3. The specifications shall provide that the packaging of the butter is
to show at least the following particulars, which may be encoded, whereappropriate:
(a) the number identifying the factory and the Member State of
production;
(b) the date of production;
(c) the date of entry into storage;
(d) the number of the manufacturing batch;
(e) the word ‘salted’ in the case of butter as referred to in the third
indent of the first subparagraph of Article 6(3) of Regulation (EC)No 1255/1999;
(f) the national quality class referred to in Annex V;
(g) the net weight.
Member States may waive the obligation to indicate the date of entry
into store on the packaging provided the store manager undertakes tokeep a register in which the particulars referred to in the firstsubparagraph are entered on the date of entry into store.
Article 29
1. Entry into store may take place only between 15 March and 15
August of the same year. Removal from store may take place only asfrom 16 August of the year of storage.
2. Removal from store shall be in whole storage lots or, if the
competent agency so authorises, in smaller quantities. However, in thecircumstances referred to in Article 33(2)(a) only a sealed quantity maybe removed from store.
Article 30
1. Applications to conclude a contract with the intervention agency
may relate only to lots of butter or cream which have been fully takeninto storage.
Applications must reach intervention agencies within no more than 30
days of the date of entry into store. Intervention agencies shall register
their date of receipt.
If the application reaches the intervention agency within 10 working
days following the deadline, the storage contract may still be concluded
but the aid shall be reduced by 30 %.
2. Storage contracts shall be concluded within no more than 30 days
of the date of registration of the application.
Article 31
Where the butter is stored in a Member State other than the Member
State of production, conclusion of the storage contract referred to in
Article 30 shall be subject to presentation of a certificate supplied by the
competent agency of the Member State of production within 50 days ofthe date of the butter's entry into storage.
The certificate shall contain the information specified in Article
28(3)(a), (b) and (d) and confirm that the product concerned is butterwithin the meaning of the first subparagraph of Article 6(3) ofRegulation (EC) No 1255/1999.1999R2771 — EN — 15.08.2001 — 004.001 — 13
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In the case referred to in the first paragraph, storage contracts shall be
concluded within no more than 60 days of the date of registration of theapplication.
SECTION 2
Checks
Article 32
1. The Member State shall ensure that all the conditions for
entitlement to payment of the aid are fulfilled.
2. The contractor or, at the request of the Member State or with its
authorisation, the person responsible for the storage depot shall makeavailable to the competent agency responsible for inspection anydocumentation permitting verification of the following particulars of
products placed in private storage:
(a) the approval number identifying the factory and the Member State of
production,
(b) the date of production;
(c) the date of entry into storage;
(d) the storage lot number;
(e) presence in the store and the address of the store;
(f) the date of removal from storage.
3. The contractor or, where applicable, the person responsible for the
store shall keep stock records available at the store for each contract,
covering:
(a) the storage lot number of the products placed in private storage;
(b) the dates of entry into and removal from storage;
(c) the quantity of butter or cream, indicated per storage lot;
(d) the location of the products in the store.
4. Products stored must be easily identifiable, easily accessible and
identified individually by contract.
Article 33
1. On entry into storage the competent agency shall conduct checks
within the period beginning on the date of entry into the store and
ending 28 days after the date of registration of the application for
conclusion of a contract referred to in Article 30.
To ensure that the products stored are eligible for aid, the checks shall be
made on a representative sample of at least 5 % of the quantities placed
in storage to ensure that, as regards sufficiently inter alia , the weight,
identification and nature of the products, the storage lots in their entiretyphysically conform to the application for conclusion of a contract.
2. The competent agency shall:
(a) either seal the products by contract, storage lot or smaller quantity at
the time of the check provided for in paragraph 1;
(b) or make an unannounced check, by sampling, to ensure that the
products are present in the store. The sample concerned must berepresentative and must correspond to at least 10 % of the totalquantity under contract for a private storage aid measure.
3. At the end of the contractual storage period, the competent agency
shall, by sampling, verify weight and identification. However, where thebutter is still in storage after expiry of the maximum contractual storageperiod, that check may be made when the butter is removed fromstorage.1999R2771 — EN — 15.08.2001 — 004.001 — 14
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For the purposes of the check referred to in the first subparagraph, the
contractor shall inform the competent agency, indicating the storage lotsinvolved, at least five working days before:
(i) the end of the maximum contractual storage period of 210 days, or
(ii) before the start of the removal operations where products are
removed during or after the 210-day period.
The Member State may accept a shorter time limit than five working
days.
4. A report shall be drawn up on the checks carried out pursuant to
paragraphs 1, 2 and 3, specifying:
(a) the date of the check;
(b) its duration;
(c) the operations carried out.
The report must be signed by the inspector responsible and counter-
signed by the contractor or, as the case may be, the person responsiblefor the store, and must be included in the payment dossier.
5. In the event of irregularities affecting at least 5 % of the quantities
of products checked, the check shall be extended to a larger sample to bedetermined by the competent agency.
The Member States shall notify such cases to the Commission within
four weeks.
SECTION 3
Storage aid
Article 34
1. Aid for private storage as provided for in the first subparagraph of
Article 6(3) of Regulation (EC) No 1255/1999 may be granted only
where the contractual storage period is between 90 and 210 days.
Where the contractor fails to comply with the time limit referred to in
Article 33(3), the aid shall be reduced by 15 % and shall be paid only in
respect of the period for which the contractor supplies satisfactory proof
to the competent agency that the butter or cream has remained incontractual storage.
2. Without prejudice to Article 38, the Commission shall determine
each year in accordance with the procedure laid down in Article 42 of
Regulation (EC) No 1255/1999, the amount of the aid referred to in thethird subparagraph of Article 6(3) of that Regulation for private storagecontracts commencing during the year in question.
3. The aid shall be paid on application by the contractor, at the end of
the contractual storage period, within 120 days of receipt of theapplication, provided that the checks referred to in Article 33(3) havebeen carried out and that the conditions for entitlement to the aid havebeen met.
However, if an administrative enquiry into entitlement to the aid is under
way, payment shall not be made until entitlement has been recognised.
4. After 60 days of contractual storage a single advance payment of
the aid may be made at the contractor's request, provided he lodges a
security equal to the advance payment plus 10 %. This advance shall becalculated on the basis of a storage period of 90 days. The security shallbe released as soon as the balance of the aid referred to in paragraph 3has been paid.
Article 35
1. Where, at the end of the first 60 days of contractual storage, the
deterioration in the quality of the butter or cream is greater than isnormal in store, contractors may be authorised, once per storage lot, toreplace the defective quantity, at their own expense, with an equal1999R2771 — EN — 15.08.2001 — 004.001 — 15
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quantity of butter or cream as specified in the first subparagraph of
Article 6(3) of Regulation (EC) No 1255/1999.
If checks during storage or on removal reveal defective quantities, no aid
may be paid for those quantities. In addition, the remainder of the
storage lot which is still eligible for aid may not be less than one tonne.The same rule shall apply where part of a lot is removed before 16August or before expiry of the minimum storage period.
2. For the purpose of calculating the aid in the case referred to in the
first subparagraph of paragraph 1, the first day of contractual storage
shall be the day of commencement of contractual storage.
Article 36
1. Aid for the storage of cream may be granted only for pasteurised
cream with a fat content of not less than 35 % and not more than 80 %.
2. For the purpose of calculating the aid, the quantities of cream shall
be converted into butter equivalent by reference to butter with a fat
content of 82 % by multiplying the fat content of the cream by 1,20.
3. The fat content specified in paragraph 1 shall be checked by a
laboratory approved by the competent agency before the cream isfrozen.
Article 37
1. Member States may permit contractors to undertake voluntarily,
for all storage lots under all contracts concluded during the current year,
to observe a single minimum fat content fixed in advance within the
limits specified in Article 36(1).
2. Where paragraph 1 is applied, the aid shall be granted on the basis
of the minimum fat content fixed in advance.
In such cases Member States shall check the fat content in accordance
with Article 36(3) by random sampling in the course of frequent
unannounced visits.
If such checks reveal that the fat content is lower than the minimum
content fixed in advance, no aid shall be paid for the storage lots takeninto store since the last satisfactory check, and paragraph 1 shall nolonger apply to the contractor concerned for the rest of the contractual
storage period.
However, if the fat content is found to be less than 2 % lower than the
minimum content fixed in advance, the aid shall be paid on the basis ofthe fat content found, minus 10 %.
Article 38
1. If the market situation so requires, the amount of the aid, the
periods of entry into and removal from storage and the maximum length
of storage may be altered during the year in respect of contracts yet to be
concluded.
2. Where the maximum buying-in price fixed by invitation to tender
in accordance with Article 13(2), expressed in euro or, for the countriesnot participating in the single currency, in national currency, andapplying on the day of commencement of contractual storage, is higher
than that applying on the last day of contractual storage, the aid
determined in accordance with Article 34(2) shall be increased by anamount equal to any reduction in the maximum buying-in price inexcess of 2 % of the price applying on the day of commencement ofcontractual storage.
Should that price be lower than the price applying on the last day of
contractual storage, the aid determined in accordance with Article 34(2)shall be reduced by an amount equal to any increase in the maximumbuying-in price in excess of 2 % of the price applying on the day ofcommencement of contractual storage. However, the reduction in the aidmay not exceed the total amount of the aid.1999R2771 — EN — 15.08.2001 — 004.001 — 16
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3. The aid adjustment referred to in paragraph 2 shall apply only if,
during the contractual storage period, a maximum buying-in price hasbeen fixed in accordance with Article 13(2) and if, on the last day of
contractual storage, buying-in has commenced in more than eight
Member States.
If a maximum buying-in price has not been fixed in the 21 days
immediately preceding the start of the contractual storage period, themaximum buying-in price deemed to apply on the first day ofcontractual storage shall be equal to 90 % of the intervention price in
force.
CHAPTERIV
Transitionalandfinalprovision
Article 39
Regulations (EEC) Nos 2315/76, 1547/87, 1589/87 and (EC) No 454/95
are hereby repealed.
Regulation (EC) No 454/95 shall continue to apply to private storage
contracts concluded before 1 January 2000.
References to the repealed Regulations shall be construed as references
to this Regulation.
Article 40
The intervention price for butter applying from 1 January 2000 to 30
June 2000 shall be that fixed in Council Regulation (EC) No 1400/1999(
1).
Article 41
This Regulation shall enter into force on 1 January 2000.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R2771 — EN — 15.08.2001 — 004.001 — 17
(1) OJ L 164, 30.6.1999, p. 10.
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ANNEX I
COMPOSITIONALREQUIREMENTS,QUALITYCHARACTERISTICSANDANALYTICAL
METHODS
Butter is a solid emulsion, mainly of the water-in-oil type, with the following compositional and quality
characteristics.
Parameters Content and quality characteristics Reference method
Fat Minimum 82 % (2)
Water Maximum 16 % (2)
Non-fat solids Maximum 2 % (2)
Free fatty acids (1) Maximum 1,2 mmole/100 g
fat(2)
Peroxide value Maximum 0,3 meq oxygen/
1 000 g fat(2)
Coliformes Not detectable in 1 g (2)
Non-milk fat Not detectable by triglyceride
analysis(2)
Tracers (1)
— sterols (2)
— vanillin (2)
— ethyl ester of carotenic
acid (2)
— triglycerides of enanthic
acid (2)Not detectable (2)
Other tracers (1) Not detectable Methods approved by competent
authority
Sensory characteristics At least four out of five points
for appearance, flavour and
consistency(2)
Water dispersion At least four points (2)
(1) Tracers approved under Regulations (EEC) No 3143/85 (OJ L 298, 12.11.1985, p. 9) and No 429/90 (OJ L 45,
21.2.1990, p. 8) and (EC) No 2571/97 (OJ L 350, 20.12.1997, p. 3).
(2)►M3See Annex I to Regulation (EC) No 213/2001. ◄1999R2771 — EN — 15.08.2001 — 004.001 — 18
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ANNEX IV
SAMPLING FOR CHEMICAL AND MICROBIOLOGICAL ANALYSIS
ANDSENSORYEVALUATION
1. Chemical and microbiological analysis
Quantity of butter
(kg)Minimum number of samples (> 100 g)
≤1 000 2
> 1 000≤5 000 3
> 5 000≤10 000 4
> 10 000 ≤15 000 5
> 15 000 ≤20 000 6
> 20 000 ≤25 000 7
> 25 000 7 + 1 per 25 000 kg or part thereof
Sampling for microbiological analysis must be carried out aseptically.
Up to five samples of 100 g may be combined into one sample for analysis
after thorough mixing.
The samples must be taken randomly from different parts of the offered
quantity and tested before or at the time of entry into the cold store designated
by the intervention agency.
Preparation of composite butter sample (chemical analysis):
(a) using a clean, dry butter trier or similar suitable instrument, extract a core
of butter of at least 30 g and place in a sample container. The composite
sample must then be sealed and forwarded to the laboratory for analysis;
(b) at the laboratory the composite sample is to be warmed in the original
unopened container to 30 ºC and shaken frequently until a homogeneousfluid emulsion free of unsoftened pieces is obtained. The container should
be one half to two thirds full.
Two samples per year per producer offering butter for intervention must be
analysed for non-milk fat and one sample for tracers.
2. Sensory evaluation
Quantity of butter
(kg)Minimum number of samples
1 000≤5 000 2
> 5 000≤25 000 3
> 25 000 3 + 1 per 25 000 kg or part thereof
The samples are to be taken randomly from different parts of the offered
quantity between the 30th and the 45th day following take-over of the butter
and graded.
Each sample must be assessed individually in accordance ►M3with Annex
VII to Regulation (EC) No 213/2001 ◄. No resampling or re-evaluation is
allowed.
3. Guidelines to be followed where samples show defects:
(a) chemical and microbiological analysis:
— where individual samples are analysed, one sample showing a single
defect out of five to 10 samples or two samples each showing a single
defect out of 11 to 15 samples may be allowed. Where a sample shows
a defect, two new samples must be taken from either side of the
sample showing the defect and checked for the parameter in question.
Where neither sample meets the specification, the quantity of butter1999R2771 — EN — 15.08.2001 — 004.001 — 19
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between the original two samples on either side of the sample showing
the defect must be rejected from the quantity offered.
Quantity to be rejected where the new sample shows a defect:
— where composite samples are analysed and found to show defects in
respect of one parameter, the quantity represented by the composite
sample concerned is to be rejected from the quantity offered. The
quantity represented by one composite sample may be determined by
subdividing the quantity offered before samples are taken randomly
from each part thereof;
(b) sensory evaluation:
where a sample fails the sensory evaluation, the quantity of butter between
two neighbouring samples on either side of the sample failing is to be
rejected from the quantity offered;
(c) where samples show a sensory defect and either a chemical or a
microbiological defect, the whole quantity is to be rejected.1999R2771 — EN — 15.08.2001 — 004.001 — 20
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ANNEX V
NATIONALQUALITYCLASS
— ‘beurre de laiterie; qualité extra; melkerijboter, extra kwaliteit’ as regards
Belgian butter,
— ‘smør of første kvalitet’ as regards Danish butter,
— ‘Markenbutter’ as regards German butter,— ‘pasteurisé A’ as regards French butter,— ‘Irish creamery butter’ as regards Irish butter,
— ‘produced exclusively from cream which has been subjected to centrifugal
and pasteurizing treatment’ as regards Italian butter,
— ‘Marque Rose’ or ‘Beurre de première qualité’ as regards Luxembourg butter,— ‘Extra kwaliteit’ as regards Dutch butter,— ‘Extra selected’ as regards Great Britain butter and ‘premium’ as regards
Northern Ireland butter,
— ‘produced exclusively from cream which has been subjected to centrifugal
and pasteurizing treatment’ as regards Greek butter,
— ‘produced exclusively from pasteurized cow's milk or cream’ as regards
Spanish butter,
— ‘produced exclusively from pasteurized cow's milk or cream’ as regards
Portuguese butter,
— ‘Teebutter’ as regards Austrian butter,— ‘perinteinen meijerivoi — traditionellt mejerismör’ as regards Finnish butter,
— ‘svenskt smör’ as regards Swedish butter,1999R2771 — EN — 15.08.2001 — 004.001 — 21
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