1990R3597 — EN — 01.10.1997 — 001.001 — 1
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►B COMMISSIONREGULATION(EEC)No3597/90
of12December 1990
on the accounting rules for intervention measures involving the buying-in, storage and sale of
agricultural productsbyinterventionagencies
(OJ L 350, 14.12.1990, p. 43)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EEC) No 2136/93 of 28 July 1993 L 191 89 31.7.1993
►M2Commission Regulation (EC) No 895/94 of 22 April 1994 L 104 16 23.4.1994
►M3Commission Regulation (EC) No 1392/97 of 18 July 1997 L 190 22 19.7.1997
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COMMISSIONREGULATION(EEC)No3597/90
of12December 1990
on the accounting rules for intervention measures involving the
buying-in,storageandsaleofagriculturalproductsbyintervention
agencies
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European EconomicCommunity,
Having regard to Council Regulation (EEC) No 3492/90 of 27
November 1990 laying down the factors to be taken into considerationin the annual accounts for the financing of intervention measures in theform of public storage by the European Agricultural Guidance and
Guarantee Fund, Guarantee Section(
1), and in particular Article 8
thereof,
Whereas certain movements of funds take place after the physical stock
operations which gave rise to them; whereas it is not possible to deter-
minea priori the amounts to be entered in the accounts; whereas,
therefore, it is necessary to make provision for accounting at a differentmoment from the physical operation in order to avoid a posteriori
corrections to accounts which have already been closed;
Whereas rules should be laid down for evaluating missing quantities
exceeding the tolerances for preservation or processing, losses duringtransfers or identifiable causes and deteriorated or destroyed quantities;
Whereas operations excluded from the calculation of entry or removal
costs should be specified;
Whereas in the case of the non-application of the tolerance limits, the
Member States should stand guarantee for the total quantities of theproduct taken over, whereas this option must cover the entire financial
year;
Whereas, in order to avoid retroactive corrections to the accounts,
accounting rules must be laid down for cases where it is found that
quantities taken into storage do not meet the conditions laid down for
storage;
Whereas it is necessary to provide simple accounting rules to apply in
case of changes during a month in the factors used for calculation;
Whereas the measures provided for in this Regulation are in accor-
dance with the opinion of the EAGGF Committee,
HAS ADOPTED THIS REGULATION:
Article 1
Pursuant to the measures provided for in Article 1 (2) of Regulation
(EEC) No 3492/90:
1. costs not covered by standard amounts may be entered in the
accounts of public storage as material operations of the month of
actual payment;
2. amounts collected or recovered in accordance withArticle 6 of
Regulation (EEC) No 3492/90 shall be entered in the accounts ofpublic storage as material operations of the month of actual collec-tion;
3. the payments and collection provided for in points 1 and 2 shall be
considered to have been done at the time provided for in
►
M3Article 7 (2) (c) of Commission Regulation (EC) No 296/
96(2);◄1990R3597 — EN — 01.10.1997 — 001.001 — 2
(1) OJ No L 337, 4. 12. 1990, p. 3.
(2) OJ No L 39, 17. 2. 1996, p. 5.
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4. the financing costs to the end of the financial year as provided for in
Article 2 (3) and (4) of Commission Regulation (EEC) No 411/88(1)
shall be entered in the accounts for that financial year for the
number of days to be considered until that date and the remainder
shall be entered under the following year.
The calculation of those financial costs must be subdivided
according to the validity periods of the interest rates.
Article 2
1. Unless special provisions in the Annex provide otherwise, the
value of missing quantities:
— exceeding the tolerance for preservations and processing,
or
— due to theft or other identifiable causes,
shall be calculated by multiplying these quantities by the basic inter-
vention price in force for the standard quality on the first day of the
current financial year, increased by 5 %.
However, for the 1994 financial year in the cereals sector, the basic
intervention price to be used is that in force on 1 October 1992.
However, if, on the day the loss is ascertained, the average market
price for the standard quality in the Member State where the storagetakes place is higher than 105 % of the basic intervention price, thecontractors shall reimburse to the intervention agencies the marketprice recorded by the Member State, increased by 5 %. For the marketprice, the Member State shall base itself on the communications made
regularly to the Commission.
The differences between the amounts collected due to the application
of the market price and the amounts booked to the EAGGF byapplying the intervention price, shall be credited to the EAGGF at theend of the financial year among the other elements of credit.
2. Where no specific value has been fixed by Community regula-
tions, the value of missing quantities due to transfer or transport shallbe determined in accordance withparagraph1.
3. In cases of deterioration or destruction of the product as a result
of:
(a) accidents, unless special provisions in the Annex provide other-
wise, the value of quantities affected shall be calculated by
multiplying the quantities in question by the basic interventionprice in force for the standard quality on the first day of the currentfinancial year, reduced by 5 %;
(b) natural disasters, the value of the affected quantities shall be
subject to a specific decision;
(c) bad conservation conditions especially due to unsuitable storage
methods, the value of the product shall be accounted for in accor-dance withparagraph1;
(d) too long a period of storage, the value of the product shall be deter-
mined at the time of the immediate sale of the product in
accordance withth e procedure laid down in ►
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Council Regulation (EEC) No 1766/92(2)◄or, as appropriate, in
accordance with the procedure laid down in the correspondingArticle of the other Regulations establishing common organizations
of agricultural markets; in which case the receipts from sales shall
be taken into account for the month during which removal occured(SIC! occurred).1990R3597 — EN — 01.10.1997 — 001.001 — 3
(1) OJ No L 40, 13. 2. 1988, p. 25.
(2) OJ No L 181, 1. 7. 1992, p. 21.▼M1
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4. Member States shall inform the Commission without delay of
cases where prolongation of the storage period for a product is likelyto result in the deterioration of that product.
The decision on the sale of the product shall be taken in accordance
with the Regulations applicable to the product in question.
5. For the purpose of fixing the value of the quantities referred to in
paragraphs 1, 2 and 3 (a) and (c):
— any increases, premiums, reductions, percentages and coefficients
applicable to the intervention price at the time of purchase shallnot be taken into consideration,
— for the quantities referred to in the first indent of paragraph 1 and in
paragraph 3 (a), the conversion rate applicable is the agriculturalrate in force on the first day of the financial year.
— for the quantities referred to in the second indent of paragraph 1, in
paragraph2 and in paragraph3 (c), th e conversion rate applicable is
the agricultural rate in force on the first day of each quarter;however for the first application of this quarterly rate, the rateapplicable is that in force on August 1993.
With effect from the 1994 financial year the starting date of the
first quarter is that of the start of the financial year.
Article 3
1. For the missing or deteriorated quantities referred to in Article 2,
removal costs shall be taken into account only where products havebeen sold in accordance with paragraphs (d) and 4 of that Article.
2. Quantities lost during transfer from one Member State to another
shall not be deemed to have entered storage and therefore do notqualify for standard entry costs.
3. Where a product is transported or transferred, entry and removal
costs, established at fixed rates for this purpose, shall be entered in theaccounts if these costs do not rank as an integral part of transport costsunder Community rules.
Article 4
The standard amounts may be increased provided that the Member
State, in respect of the whole period involved and for the whole stockof the product in question, submits a declaration that it will not applythe tolerance and will stand guarantee for the quantity.
This declaration shall be addressed to the Commission and should be
forwarded before receipt by the Commission of the first monthlydeclaration of the financial year concerned or, if the product in ques-tion is not in intervention storage at the beginning of the financial
year, not later than the month following that in which the product first
enters storage.
Article 5
Any transport costs paid or levied in accordance withCommunity rules
at the time of buying in of the products shall be entered in the accountsas technical costs, separate from the buying-in price.
Article 6
1. Samples other than those taken by the purchasers shall be valued
in accordance withArticle 2 (3) (a).
2. If, following the visual inspection in the framework of the annual
inventory, or at the control after the take over into intervention, it is1990R3597 — EN — 01.10.1997 — 001.001 — 4
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not possible to re-pack the product, the intervention organization may
sell the remaining quantity by private contract. This quantity shall beaccounted for, as a removal, on the day of the taking of samples and
the receipts realized shall be credited to the EAGGF for the same
month.
Article 7
1. Quantities entering storage which are found not to meet the
conditions laid down for storage, shall be entered in the accounts atthe time of removal from storage as a sale at the price at which theywere purchased.
However, if at the time of physical removal of a product, the condi-
tions exist for the application of the penultimate and final
subparagraphs of Article 2 (1), the removal of the goods shall be thesubject of a prior consultation of the Commission.
2. Unless special provisions in the Community rules provide other-
wise, entry, removal, storage and financing costs already entered in theaccounts in respect of each of the rejected quantities shall be deducted
and taken into account separately.
(a) The entry and removal costs to be deducted shall be calculated by
multiplying the rejected quantities by the sum of the respectivestandard amounts and by the conversion rate applicable to the stan-dard amounts for the month of removal.
(b) Storage costs to be deducted shall be calculated by multiplying the
rejected quantities by the number of months which elapse betweenentry and removal, by the standard amount and by the conversionrate applicable to the standard amounts for the month of removal.
(c) Financing costs to be deducted shall be calculated by multiplying
the rejected quantities by the number of months which elapsebetween entry and removal after deduction of the number ofmonths of delay in payment applicable at the time of entry, by therate of financing applicable during the month of removal dividedby 12 and by the average book value of the stocks carried over at
the beginning of the accounting year or of the stocks of the first
month of declaration in the case where an average book value ofstocks carried over does not exists.
3. The costs referred to in paragraph 2 shall be booked under the
physical operations in the month of removal.
4. In the case of special provisions, the conversion rate applicable to
the entry into the accounts of the costs referred to in paragraphs 2 (a)
and (b) is that of the first day of the month in which the specifically
defined operative event occurs.
Article 8
Where there is a change in ►
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amounts, the payment terms, the interest rates or other factors usedfor calculation after the first of the month, the new factors shall applystarting at the material operations of the following month.
Article 9
The value of the quantities bought in and sold shall be equal to the sum
of the payments (buying in) and receipts (sales) made or to be made foroperations relevant to the financial year in question.1990R3597 — EN — 01.10.1997 — 001.001 — 5
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Article 10
Any surplus quantities which may be established shall be booked as
negative amounts in the stock records with the missing quantities in
the month when they were recorded. These quantities shall be added
to the determination of the quantities passing the limit of tolerance.
Article 11
For the purposes of this Regulation, the financial year shall be defined
in accordance with ►M3Article 3 (7) and 5 (2) of Regulation (EC)
No 296/96. ◄
Article 12
This Regulation shall enter into force on the day of its publication in
theOfficial Journal of the European Communities .
It shall apply with effect from 1 October 1990.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.1990R3597 — EN — 01.10.1997 — 001.001 — 6
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ANNEX
DETAILS REGARDINGTHE DIFFERENT PRODUCTS,CONCERNING
EXPENDITUREANDREVENUEITEMS (1)
I. CEREALS
DryingThe additional cost of drying designed to lower the moisture content below
that fixed for the standard quality shall be entered in the accounts,
provided that this operation has been shown to have been necessary in
accordance withth e procedure laid down in Article 26 of Regulation
(EEC) No 2727/75.
Quantity losses due to drying shall not be included when calculating the
tolerance for preservation.
II. SUGAR
1.Reimbursementofstoragecosts
Reimbursement of storage costs under Article 8 of Regulation (EEC)
No 1785/81 and received by the intervention agencies shall be entered
on the credit side of the accounts.
2.Levies
When sugar is sold, the levy referred to in Article 8 of Regulation
(EEC) No 1785/81 shall be included in the price paid by the buyer; it
must be declared separately.
III. ETHYL ALCOHOL OF VINOUS ORIGIN
1.Valueofquantitiesboughtin
In the case of alcohol bought in under Article 40 of Regulation (EEC)
No 822/87, an amount equal to the aid to the distiller shall be deducted
from the buying-in price of the alcohol by intervention agencies and
entered in the accounts under the budget item for distillation. The value
of the alcohol bought in, after deduction of the aid, shall be booked
under the heading designated for the taking over of alcohol. The aid to
be deducted shall be that applying to the quality of alcohol sent for
intervention.
2. For the purposes of Article 2 (1), (2) and (3) (a) and (c), the price to be
used shall be the price payable to the distiller after deduction of the aid
referred to in paragraph1 instead of th e intervention price.
IV. TOBACCO
1.Valueofquantitiesboughtin
For quantities bought in, the amount of the premium included in the
amount paid shall be deducted from the amount paid at the time of
buying in and booked under the budget item for this premium. The
amount paid, less the premium, shall be entered in the accounts. For
this purpose, where baled tobacco is bought in, the amount of the
premium, expressed in terms of leaf tobacco, shall be multiplied by the
processing coefficient to be fixed in accordance withth e procedure laid
down in Article 17 of Regulation (EEC) No 727/70.
2. For the purposes of Article 2 (1), (2) and (3) (a) and (c), the interven-
tion price to be used shall be the intervention price for Variety No 7 in
the case of leaf tobacco and the derived intervention price for the same
variety in the case of processed and baled tobacco, without deduction of
the premium in either case.
V. SHEEPMEAT
For the purposes of Article 2 (1), (2) and (3) (a) and (c), the intervention
price to be used shall not be seasonally adjusted nor derived.1990R3597 — EN — 01.10.1997 — 001.001 — 7
(1) For products not specifically mentioned in this Annex, the general rule applies.
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VI. PIGMEAT
For the purposes of Article 2 (1), (2) and (3) (a) and (c), the basic price,
multiplied by the coefficient 0,92, shall be used, rather than the interven-
tion price.
VII. BEEF
For the application of the rules in Article 2 paragraphs 1, 2 and 3 points (a)
and (c), the basic price to be used, for boneless beef, is the intervention
price modified by the coefficient of 1,47.1990R3597 — EN — 01.10.1997 — 001.001 — 8
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