NoL79/30 OfficialJournaloftheEuropeanCommunities 23.3.78
COMMISSION REGULATION (EEC)No586/78
of22March1978
openinganinvitationtotenderforthemobilizationofhuskedlonggrainriceas
foodaidfortheSocialistRepublicofVietnam
Whereasprovisionshouldbemadeforsecuritytobe
giventoguaranteefulfilmentoftheobligationsarising
byvirtueofparticipationintheinvitationtotender;
WhereastheItalianinterventionagencyshouldbe
maderesponsibleforthetenderingprocedure ;
WhereastheCommissionmustbeinformedquickly
ofthetenderssubmittedinresponsetotheinvitation
andofthoseacceptedbytheinterventionagency;
WhereastheMonetaryCommitteewillbeconsulted;
whereas,inviewoftheurgency,themeasuresenvis­
agedshouldbeadoptedinaccordancewiththecondi­
tionslaiddowninArticle3(2)ofCouncilRegulation
No129onthevalueoftheunitofaccountandthe
exchangeratestobeappliedforthepurposesofthe
commonagriculturalpolicy(4),aslastamendedby
Regulation (EEC)No2543/73(5),andinparticular
Article3thereof;
WhereasthemeasuresprovidedforinthisRegulation
areinaccordancewiththeopinionoftheManage­
mentCommitteeforCereals,THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation (EEC)No
1418/76of21June1976onthecommonorganiza­
tionofthemarketinrice(J),asamendedbyRegula­
tion(EEC)No1158/77(2),
HavingregardtoCouncilRegulation (EEC)No
2750/75of29October1975layingdownthecondi­
tionsforthemobilizationofcerealsasfoodaid(3),and
inparticularArticle6thereof,
Whereason30January1978theCounciloftheEuro­
peanCommunities declaredthatitproposed,byway
ofCommunityaction,togrant40000tonnesof
huskedlonggrainricetotheSocialistRepublicof
Vietnamunderits1977/78food-aidprogramme ;
WhereaspursuanttoArticle3(3)ofCouncilRegula­
tion(EEC)No2750/75thegoodsmaybepurchased
anywhereontheCommunitymarket;
Whereastheproposedinvitationtotendershouldbe
forsupplyoftheproductsdeliveredHaiphong,thatis
atthemomentwhenthegoodsareactuallyplacedon
thedockorinthelighterwhereapplicable ;
Whereasinviewofthedifferentmonetarycircum­
stancesintheMemberStates,theobservationofthese
conditionsisnotguaranteedbytheapplicationof
exchangeratesapplicableintheframeworkofthe
commonagriculturalpolicysincemonetarycompensa­
toryamountsdonotapplyinthericesector;whereas
itisadvisabletotakeaccountofthemonetarysitua­
tionasregardsdifferentoffers;
Whereastheawardundertheinvitationtotender
mustbemadetothetendererofferingthebestterms;
Whereas,shouldforcemajeuremakeitimpossibleto
completetheoperationinquestionwithinthetime
limitsspecified,itmustbemadeclearwhoistobear
theliabilityforanyresultingcosts;HASADOPTED THISREGULATION :
Article1
1.Tendersareherebyinvitedforthesupplytothe
SocialistRepublicofVietnambywayofCommunity
food-aidaction,of40000tonnesofhuskedlonggrain
rice.
2.ThetenderingprocedureshalltakeplaceinItaly
infourlotsof10000tonneseach.
TheproductsshallbemobilizedontheCommunity
market.
ShipmentshallbefromaCommunityport.
3.Theinvitationtotenderprovidedforinpara­
graph1isforsupplyofproductsdeliveredHaiphong,
thatisatthemomentwhenthegoodsareactually
placedonthedockorinthelighterwhereapplicable.
(')OJNoL166,25.6.1976,p.1.
(2)OJNoL136,2.6.1977,p.13.
3)OJNoL281,1.11.1975,p.89.(4)OJNo106,30.10.1962,p.2553/62.
(5)OJNoL263,19.9.1973,p.1.

23.3.78 OfficialJournaloftheEuropeanCommunities NoL79/31
4.Thesuccessfultenderershalldelivertheproduct
specifiedinparagraph 1innewjutesacksofanet
capacityof50kilograms.
Minimumweightofthesacksshallbe600grams.The
followingshallbeprintedonthesacks:
'Rizdécortiqué/DondelaCommunautééconomique
européenneauViêt-nam/Àdistribuergratuitement'.Article5
1.Thesuccessfultenderershallgivesecurityofa
valueof10unitsofaccountpertonne;thesecurityis
intendedtoguaranteethattheoperationsspecifiedin
Article1aredulycompleted .Thesecurityshallbe
forfeitifthoseoperationsarenotcarriedoutwithin
theprescribedtimelimit,saveasregardsquantities
notdeliveredowingtoforcemajeure.
2.Thesecurityprovidedforinparagraph 1maybe
givenintheformofacashdepositorofaguarantee
issuedbyacreditinstitutionconformingtothe
criterialaiddownbytheMemberState.
Article6
ThehuskedlonggrainricereferredtoinArticle1to
besuppliedtotheSocialistRepublicofVietnammust
meetthefollowingrequirements :
(a)rice,freeofodour,ofasoundandfairmarketable
quality;
(b)moisturecontent:15%;
(c)percentageofricegrainswhicharenotofunim­
pairedquality:
—paddygrains:1%,
—brokenrice:5%,
—greengrainsorgrainsshowingnaturalmalfor­
mation5%(includingupto0-5%ofred
grains);
(d)toleranceofextraneousmatter,consistingof:
—mineralorvegetableinediblesubstances
providedthattheyarenottoxic0-01%,
—extraneousgrainsorpartsthereof,edible
0-10%;
(e)whenwhollymilled,percentageofwhollymilled
ricegrainswhicharenotofunimpairedquality:
—chalkygrains:5%,
—spottedgrains:1-5%,
—yellowgrains:0-05%,
—stainedgrains:maximum 1%,
—ambergrains:0-20%.
Ricenotmeetingtheserequirementsshallberefused.
Article7
1.TheItalianinterventionagencyshallberespon­
siblefortheoperationsrelatingtotheinvitationto
tenderprovidedforbythisRegulation .
2.Itshallforthwithcommunicate totheCommis­
sionthelistoffirmswhichhaverespondedtotheinvi­
tationtotender,specifyingthetermsofeachtender,
togetherwiththenameandbusinessnameofthe
successfultenderer.Toallowforthepossibilityofre-bagging,the
successfultenderershallsupply2%ofnewempty
sacks,ofthesamequalityasthosecontainingthe
goodsbutwiththeprintingfollowedbyacapital
letter'R\
Article2
1.Thedecisionontendersreceivedinresponseto
theinvitationprovidedforinArticle1shallbetaken
on10April1978.
2.Theclosingdateforthesubmissionoftenders
shallbe10April1978at12noon.
3.Thenoticeofinvitationtotendershallbe
publishedintheOfficialJournaloftheEuropean
Communities ,notlessthanninedaysbeforethe
closingdateforthesubmissionoftenders.
Article3
1.Thepricesofferedmustbeexpressedinthe
currencyoftheMemberStateinwhichtheinvitation
totenderwasissued.
2.Forthepurposeofrenderingthetenderscompar­
able,thepricesshall,whereappropriate,becorrected
bytheaccessioncompensatoryamountapplicableon
theclosingdateforsubmissionoftenderstoexports
fromtheMemberStatementionedinthetender.
3.Theratesusedforconvertingintounitsof
accountthoseoffersmadeinnationalcurrenciesshall
be:
—thecentralrateincaseswheretherelevant
currencyisheldatanygivenmomentwithina
bandof2-25%,
—inothercases,theaveragespotexchangerate
duringtheperiodfromWednesdayofoneweekto
Tuesdayofthefollowingweekandwhichimmedi­
atelyprecedesthetimelimitforthesubmissionof
offers.
Article4
Thecontractshallbeawardedtothetendereroffering
thebestterms.
However,ifthetenderssubmitteddonotappearto
correspondtonormalmarketpricesandcosts,the
interventionagencymaycanceltheinvitationto
tender.

NoL79/32 OfficialJournaloftheEuropeanCommunities 23.3.78
3.Wherethecustomsexportformalitiesforthe
mobilizedproductarecompletedinaMemberState
otherthanthatinwhichtheinvitationtotenderis
issued,theinterventionagencyofthelatterMember
Stateshallberesponsiblefortheoperationsfollowing
tendering,includingpaymenttothesuccessful
tenderer.
Insuchcase,theinterventionagencychoosingthe
successfultenderershallimmediatelyinformtheinter­
ventionagencyoftheMemberStateconcernedand
shallsupplyitwithalltheinformationwhichitmay
require.
Furthermore ,theamountofthesuccessfultender
shallbepaidafterithasbeenconvertedusingthe
averageofthespotratesreferredtointhesecond
subparagraph ofArticle3(3)tothetendererinthe
currencyoftheMemberStateinwhichtheoperations
relatingtothetenderingarecompleted .
4.Theinterventionagencyshallaskthatthe
tendererspecifiesthefollowinginformation :
(a)aftereachshipment,astatementgivingdetailsof
thequantitiesloaded,thequalityoftheproducts
andtheirpackaging;
(b)thedateofthedepartureoftheships;the
expecteddateofarrivaloftheproductsattheir
destination :(c)allpossiblecontingencies whichmightoccur
duringtransportation oftheproducts.
Theinterventionagencyshalltransmittheinforma­
tionprovidedfortotheCommission assoonasitis
received.
5.Whentheinterventionagencyresponsiblefor
theoperationsrelatingtotenderingisnottheinterven­
tionagencywhichappointsthesuccessfultenderer,it
shallsendassoonaspossibletothelattertheinforma­
tionnecessaryforreleasingthesecurity.
Article8
Asregardsthistender,theinterventionagencyisauth­
orizedtomakeaninitialpaymentof80%ofthe
valueofthequantitygiveninthebilloflading,on
presentationofthatdocumentandsubjecttothe
takingofasecurityforanamountequaltotheinitial
payment.
Article9
ThisRegulationshallenterintoforceonthedayofits
publicationintheOfficialJournaloftheEuropean
Communities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,22March1978.
FortheCommission
FinnGUNDELACH
Vice-President