1999R2771 — EN — 03.03.2003 — 005.001 — 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
►M5Commission Regulation (EC) No 359/2003 of 27 February 2003 L 53 17 28.2.2003
Corrected by:
►C1Corrigendum, OJ L 43, 14.2.2001, p. 40 (2771/1999)
▼B
COMMISSIONREGULATION(EC)No2771/1999
of16December 1999
laying down detailed rules for the application of Council Regula-
tion (EC) No 1255/1999 as regards intervention on the market in
butterandcream
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 and
skimmed-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 governing inter-vention on the market in butter and cream. In the interests ofclarity, 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 through invi-tation to tender and under which buying-in is to be suspended. Itis necessary, firstly, to specify the cases in which buying-in is tobe 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’should be defined and arrangements set up for recording thoseprices at national level. For practical reasons, the Belgo-Luxem-
bourg Economic Union should be considered a single Member
State.
(3)The intervention agencies may only buy in butter which meetsthe requirements laid down in Article 6 of Regulation (EC) No1255/1999 as well as the conditions of quality and presentation,
which need to be defined. The methods of analysis and detailed
rules governing quality control should also be specified and, ifthe situation so requires, provision should be made for checksof the radioactivity in butter, the maximum levels of whichneed to be established, where appropriate, by Community legis-
lation. However, it should be possible for Member States to1999R2771 — EN — 03.03.2003 — 005.001 — 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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authorise a system of self checking, subject to certain conditions.
For practical reasons, the period during which butter offered forintervention is produced should be extensible when the interval
between 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 ofmanufacturing undertakings and verification of compliancetherewith. To ensure that the arrangements are effective, provi-sion should be made for action to be taken if these conditions
are not complied with. Since butter may be bought in by an
intervention agency belonging to a Member State other thanthat on whose territory it was produced, the intervention agencywhich does the buying-in should in such cases be able to verifythat the conditions relating to quality and presentation arecomplied with.
(5)Regulation (EC) No 1255/1999 stipulates that buying-in is to be
carried out by tendering procedure. To ensure that all interested
parties in the Community are treated equally, invitations totender should be advertised in the Official Journal of the
European Communities . The details of the tender, particularly
the minimum quantity, deadlines for submission and themaximum buying-in price should be defined. To ensure compli-
ance with the requirements as to the quality and presentation of
the butter at the time when the tender is submitted, and after itsentry into storage, tenderers should be required to submit awritten undertaking to that effect together with their tender.Tenders should also be accompanied by a security, in order to
guarantee that the tender will be maintained after the closing
date for submission of tenders and that the butter will be deliv-ered within time limits to be laid down.
(6)It should be possible to guarantee the quality of the butter, andthe terms of buying-in by means of checks at different stagesduring storage. Failure to comply with the requirements shouldnot impose an additional burden on the Community budget.
Provision should therefore be made for sub-standard butter to
be taken back by the operator, who should be obliged to bearthe 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 parti-
cular, that stocks be accessible, that batches be identified and
that butter in storage be insured against risks. In order to ensurea uniform frequency and level of checks, it is necessary tospecify the nature and number of inspections of storage premisesto be performed by the national authorities.
(8)Proper management of intervention stock requires the butter tobe resold 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 priceshould be fixed having regard to the market situation. Conditionsfor sale, entailing the lodging of a performance bond should belaid down, particularly as regards the taking-over of the butter
and the time limits for payment. In order to monitor the situation
of stocks, Member States should inform the Commission of thequantities of butter sold.
(9)Article 6(3) of Regulation (EC) No 1255/1999 provides for aidto be granted for the private storage of butter and cream. Toensure that the arrangements can be monitored properly, provi-sion should 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, accountingand the frequency of checks and inspection procedures, particu-larly in respect of the requirements laid down in Article 6(3). Tofacilitate checks on the presence of products stored under privatestorage contracts, there should be provision for them to be1999R2771 — EN — 03.03.2003 — 005.001 — 3
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removed from 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 storageperiod, the amount of the aid, the dates of entry into storage
and the dates on which storers may remove from storage all or
part of the quantities comprised in the contracts. Such dates,storage periods and aid amounts may be changed to take accountof the market situation.
(11)In the case of aid for cream, in order to take account of the valueof the product and for practical reasons, the amount of aidshould be fixed in butter equivalent and according to fat content.It is also justified to require that fat content be checked system-atically. To that end, storers should be required to undertake to
comply witha minimum fat content, fixed in advance, for th e
entire storage period. Experience has shown that in some casesit is desirable to ease the administrative burden by providingfor checks by sampling. However, since it is impossible to verifyexactly the fat content of cream after freezing, where the above-
mentioned undertaking is not complied withno aid sh ould be
paid for any of the lots placed in storage after the most recentsatisfactory check.
(12)The third subparagraph of Article 6(3) of Regulation (EC) No1255/1999 provides that the amount of the aid may be increasedif changes on the market so warrants. The conditions deter-mining this adjustment, and its scope, should therefore bedefined.
(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 Regulationuntil 30 June 2000 should be specified.
(14)The measures provided for in this Regulation are in accordancewith the opinion of the Management Committee for milk andmilk products,
HAS ADOPTED THIS REGULATION:
CHAPTERI
Scope
Article 1
1. This Regulation lays down the detailed rules for applying inter-
vention measures in the milk and milk products sector as provided for
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 than92 % of the intervention price, for two weeks in succession, theCommission shall commence buying-in under a tendering procedure inthe Member State concerned, in accordance with Article 6(1) of Regu-lation (EC) No 1255/1999.1999R2771 — EN — 03.03.2003 — 005.001 — 4
▼M4
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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 orhigher than 92 % of the intervention price, for two weeks in succes-
sion, the Commission shall suspend buying-in under a tendering
procedure in the Member State concerned, in accordance with Article6(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 Regu-
lation (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 samplestaken in accordance withth e rules set out in Annex IV. ◄However,
Member States may, if the Commission agrees, set up a system of self
checking under their own supervision in respect of certain quality
requirements 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 moni-
tored only if the situation so requires, and during the requisite period.
Where necessary, the duration and scope of checks shall be determinedin accordance withth e 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 islonger than 21 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 andremoval from 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.1999R2771 — EN — 03.03.2003 — 005.001 — 5
▼B
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Member States may waive the obligation to show the date of entry into
storage on the packaging, provided that the store manager undertakesto keep a register in which the particulars referred to in the second
subparagraphare recorded on th e date of entry into storage.
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 withArticle 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 eachproduction batchintended forpublic intervention;
(c) agree to submit their production of butter to a specific official
inspection and, where applicable, to meet the requirements for the
national 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 to
produce butter for public intervention. However, the Member State
may set a shorter time limit.
2. To ensure compliance with this Regulation, the competent agen-
cies shall carry out unannounced on-the-spot inspections, on the basisof the intervention butter production schedule of the undertakingsconcerned.
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
records referred to in paragraph1(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
paragraph1(a) are no longer satisfied. Approval may be regranted at
the request of the enterprise concerned after a period of at least sixmonths, 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 betweenone 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
of serious negligence and it is of minor importance withregard to th eeffectiveness 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 and3 within one month of their adoption.1999R2771 — EN — 03.03.2003 — 005.001 — 6
(1) OJ L 268, 14.9.1992, p. 1.
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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
the presentation of a certificate supplied not later than 45 days after the
closing date for submission of tenders by the competent agency of theMember State of production.
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 resultsof those checks and confirm that the product concerned is butter withinthe meaning of the first subparagraph of Article 6(2) of Regulation
(EC) No 1255/1999. In that case, the packaging referred to in Article
4(6) must be sealed by means of a numbered label issued by thecompetent agency of the Member State of production. The numbermust 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 within
21 days, exclusive of national taxes and charges, of fresh buttermeeting the conditions set out in the first subparagraph of Article 6(2)of Regulation (EC) No 1255/1999, packaged in blocks of at least 25kilograms 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 to
deliver 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 quan-
tity of butter are equally represented or, as the case may be, thesystem 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 tobe deemed representative, the criteria for establishing the ratio
between the prices for butter for which there have been enough
transactions and 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 withparagraph1.1999R2771 — EN — 03.03.2003 — 005.001 — 7
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4. On each Thursday the Commission shall record the level of
market prices in eachMember State in comparison withth e interven-tion price.
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 agencyconcerned shall buy in butter in accordance with this Section.
A notice of invitation to tender shall be published in the Official
Journal of the European Communities .
Article 10
The closing date for submission of tenders for each individual invita-
tion to tender shall fall on every second and fourth Tuesday of themonthat noon (Brussels time), except th e second Tuesday in August
and the fourth Tuesday in December. If the Tuesday is a public
holiday, the closing date shall be the last preceding working day atnoon (Brussels time).
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 any
written means of telecommunication withproof 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 thecold 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 withArticles 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 datefor submission 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 thetenderer or 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 totender concerned.1999R2771 — EN — 03.03.2003 — 005.001 — 8
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Article 12
Maintenance of the tender after the closing date for submission of
tenders, and delivery of the butter to the depot designated by the inter-vention agency within the time limit laid down in Article 15(3), shallconstitute primary requirements within the meaning of Article 20 of
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 tothe intervention prices applicable, in accordance with the procedurelaid down in Article 42 of Regulation (EC) No 1255/1999.
3. A decision may be taken not to proceed withth e 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 tendering
procedure 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 thecold store. 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 thetime 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 shallthe security provided for in Article 11(3)(c) be forfeit in proportion tothe quantities not delivered, but buying-in shall also be cancelled in
respect 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 th e 45thand 65thday after taking over, provided th at compli-ance with the provisions of Articles 3 and 4 has been confirmed.1999R2771 — EN — 03.03.2003 — 005.001 — 9
(1) OJ L 205, 3.8.1985, p. 5.
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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 referred
to in Article 15(2) was issued.
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 that
the butter does not meet the provisions of Articles 3 and 4, or where, atthe end of the trial storage period, the minimum organoleptic quality 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 fromstorage.
The storage costs to be paid shall be determined on the basis of the
standard amounts for entry, removal and storage costs laid down
pursuant 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) ofRegulation (EC) No 1255/1999 and shall take any other measuresneeded to ensure that the butter is properly conserved. The relevantrisks shall be covered by insurance in the form of either a contractual
obligation on storers or a comprehensive coverage of the liability borne
by the intervention agency; the Member States may also act as theirown insurers.
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 andreadily accessible lots.
3. The competent agency responsible for checks shall perform unan-
nounced checks on the presence of the butter in store, in accordancewithArticle 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.1999R2771 — EN — 03.03.2003 — 005.001 — 10
(1) OJ L 216, 5.8.1978, p. 1.
(2) OJ L 288, 9.11.1996, p. 6.▼M1
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Beyond that distance, the additional transport costs borne by the inter-
vention 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 maximumdistance referred to in the first subparagraph, of the distance betweenthe store of the vendor and the border of the Member State of thepurchasing 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
not exceed 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 atthe store'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 depal-letising 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 inter-
vention price fixed in Article 4(1)(a) of Regulation (EC) No 1255/1999and applying on the day on which the sale contract is concluded, plusEUR 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 sale shall 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 ofthe contract of sale, in order to ensure that the primary requirementswithin the meaning of Article 20 of Regulation (EEC) No 2220/85 arefulfilled 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 total avail-able quantity or, as the case may be, the quantity available in the storeor 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 than
five 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 quan-tity being 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 nottaken delivery within the period specified in paragraph 1.1999R2771 — EN — 03.03.2003 — 005.001 — 11
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4. The security provided for in Article 22(2) shall be forfeit in
respect of any quantities for which the contract of sale is terminatedin accordance withparagraph3. It sh all 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 circum-
stances invoked.
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) No1255/1999 shall be concluded between the intervention agency of theMember 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) of Regula-tion (EC) No 1255/1999.
Butter must have been produced in an undertaking approved in accor-
dance with Article 5(1)(a), (b) and (c) of this Regulation during the 28days preceding the day of commencement of contractual storage. Itshall correspond to the national quality class of the Member State ofproduction referred to in Annex V and its radioactivity level shall notexceed 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); subse-
quent placing under those arrangements shall be regarded asending the contractual storage period.1999R2771 — EN — 03.03.2003 — 005.001 — 12
(1) OJ L 62, 7.3.1980, p. 5.
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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;
(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
the subject of specifications drawn up by the intervention agency of the
Member State of storage. The storage contract shall refer to thesespecifications.
3. The specifications shall provide that the packaging of the butter is
to show at least the following particulars, which may be encoded,
where appropriate:
(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 first subpara-graphare entered on th e date of entry into store.
Article 29
1. Entry into store may take place only between 15 Marchand 15
August of the same year. Removal from store may take place only as
from 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 withth e 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 registertheir date of receipt.
If the application reaches the intervention agency within 10 working
days following the deadline, the storage contract may still be concludedbut 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 in1999R2771 — EN — 03.03.2003 — 005.001 — 13
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Article 30 shall be subject to presentation of a certificate supplied by
the competent agency of the Member State of production within 50days of the 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) of Regula-tion (EC) No 1255/1999.
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 ofthe application.
SECTION 2
Checks
Article 32
1. The Member State shall ensure that all the conditions for entitle-
ment 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 make
available to the competent agency responsible for inspection any docu-
mentation permitting verification of the following particulars ofproducts 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 eachcontract, 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 andending 28 days after the date of registration of the application forconclusion 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 quantitiesplaced in storage to ensure that, as regards sufficiently inter alia ,t he
weight, identification and nature of the products, the storage lots intheir entirety physically 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.1999R2771 — EN — 03.03.2003 — 005.001 — 14
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3. At the end of the contractual storage period, the competent
agency shall, by sampling, verify weight and identification. However,where the butter is still in storage after expiry of the maximum contrac-
tual storage period, that check may be made when the butter is
removed from storage.
For the purposes of the check referred to in the first subparagraph, the
contractor shall inform the competent agency, indicating the storage
lots involved, 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
responsible for the store, and must be included in the payment dossier.
5. In the event of irregularities affecting at least 5 % of the quanti-
ties of products checked, the check shall be extended to a larger sampleto be determined 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 onlywhere 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 onlyin respect of the period for which the contractor supplies satisfactoryproof to the competent agency that the butter or cream has remainedin contractual storage.
2. Without prejudice to Article 38, the Commission shall determine
eachyear in accordance withth e procedure laid down in Article 42 ofRegulation (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 have
been met.
However, if an administrative enquiry into entitlement to the aid is
under way, payment shall not be made until entitlement has beenrecognised.
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 asecurity equal to the advance payment plus 10 %. This advance shallbe calculated on the basis of a storage period of 90 days. The securityshall be released as soon as the balance of the aid referred to in para-graph3 h as been paid.1999R2771 — EN — 03.03.2003 — 005.001 — 15
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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 is
normal in store, contractors may be authorised, once per storage lot,
to replace the defective quantity, at their own expense, with an equalquantity of butter or cream as specified in the first subparagraph ofArticle 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 afat content of 82 % by multiplying the fat content of the cream by1,20.
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 currentyear, 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
withArticle 36(3) by random sampling in th e course of frequent unan-nounced 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 contractualstorage 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 of
the 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 maximumlengthof storage may be altered during th e year in respect of contractsyet to be concluded.1999R2771 — EN — 03.03.2003 — 005.001 — 16
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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 — 03.03.2003 — 005.001 — 17
(1) OJ L 164, 30.6.1999, p. 10.▼B
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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 compe-
tent 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 — 03.03.2003 — 005.001 — 18
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ANNEX IV
SAMPLING FORCHEMICAL AND MICR OBIOLOGICAL 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≤10000 4
> 10000 ≤15000 5
> 15000 ≤20000 6
> 20000 ≤25000 7
> 25000 7 + 1 per 25000 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 desig-
nated 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 homogeneous
fluid 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
1000≤5000 2
> 5 000≤25000 3
> 25000 3 + 1 per 25000 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.
Eachsample must be assessed individually in accordance ►M3withAnnex
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 eachsh owing 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 parameter1999R2771 — EN — 03.03.2003 — 005.001 — 19
▼B
in question. Where neither sample meets the specification, the quan-
tity of butter 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 eachpart th ereof;
(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 micro-
biological defect, the whole quantity is to be rejected.1999R2771 — EN — 03.03.2003 — 005.001 — 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 Danishbutter,
— ‘Markenbutter’ as regards German butter,— ‘pasteurisé A’ as regards Frenchbutter,— ‘Irishcreamery butter’ as regards Irishbutter,
— ‘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 Dutchbutter,— ‘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
Spanishbutter,
— ‘produced exclusively from pasteurized cow's milk or cream’ as regards
Portuguese butter,
— ‘Teebutter’ as regards Austrian butter,— ‘perinteinen meijerivoi — traditionellt mejerismör’ as regards Finnishbutter,
— ‘svenskt smör’ as regards Swedishbutter,1999R2771 — EN — 03.03.2003 — 005.001 — 21
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