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COMMISSION REGULATION (EC) No 690/2001
of 3 April 2001
on special market support measures in the beef sector
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Community,
Having regard to the Council Regulation (EC) No 1254/1999
of17May1999onthecommonorganisationofthemarketinbeef and veal(
1), and in particular Article 38(2),
Whereas:
(1)The Community beef market is currently going through
a deep crisis due to a lack of consumer confidence inbeef created by the appearance of new cases of bovinespongiform encephalopathy (BSE). Consumption as wellas production have recently fallen to unprecedentedlevels followed by substantial reduction of producerprices. It is estimated that the crisis is likely to continuestill for some time. Article 38(1) of Regulation (EC) No1254/1999 provides that when a substantial rise or fallinpricesisrecordedontheCommunitymarketandthissituation is likely to continue, thereby disturbing orthreatening to disturb the market, the necessary meas-ures may be taken.
(2)Such a measure was taken by Commission Regulation(EC) No 2777/2000 of 18 December 2000 adoptingexceptional support measures for the beef market(
2), as
amended by Regulation (EC) No 111/2001(3), which
provides for a purchase scheme for destruction ofanimals aged more than 30 months and primarilyanimals which at slaughter are not tested for BSE.
(3)Regulation (EC) No 2777/2000 is applicable until 30June 2001 at the latest. Commission Decision 2000/764/EC of 29 November 2000 on the testing of bovineanimals for the presence of bovine spongiform ence-phalopathy and amending Decision 98/272/EC on theepidemio-surveillance for transmissible sprongiformencephalopathies(
4) provides that Member States shall
ensure that all bovine animals over 30 months of agesubjecttonormalslaughterforhumanconsumptionareexamined by one of the approved rapid tests listed in
Annex IV(A) to Commission Decision 98/272/EC of 23April 1998 on epidemio-surveillance for transmissiblespongiform encephalopathies and amending Decision94/474/EC(
5), as last amended by Decision 2000/764/
EC, as of 1 July 2001 at the latest.
(4)Inthelightoftheforegoing,itisappropriatetoprovideforanewspecialpurchaseschemeformeatfromtestedanimalswhichwouldallowMemberStatestostoremeatas an alternative to destruction as of 1 July 2001 at thelatest but which would be applicable earlier in MemberStates which wish to apply it before that date or inMember States which are authorised to cease to applyRegulation (EC) No 2777/2000.
(5)In view of the extent of the BSE crisis and in particularofitsprobableduration,andconsequentlyofthemagni-tude of the efforts needed to support the market, itwould be appropriate for such efforts to be sharedbetween the Community and the Member States espe-ciallyinviewofthelargenumberofanimalsexpectedtobe purchased under the scheme as well as the limitednature of the budgetary resources available forCommunity financing.
(6)This Regulation need not apply in the United Kingdomsince Commission Regulation (EC) No 716/96 of 19April 1996 adopting exceptional support measures forthe beef market in the United Kingdom(
6), as last
amended by Regulation (EC) No 1176/2000(7), already
providesforaspecialschemeinthatMemberStatewithregard to animals over 30 months of age.
(7)Dispatches of meat from the United Kingdom andPortugal continue to be subject to Council Decision98/256/EC of 16 March 1998 concerning emergencymeasures to protect against bovine spongiform ence-phalopathy, amending Decision 94/474/EC andrepealing Decision 96/239/EC(
8), as last amended by
Commission Decision 98/692/EC(9), in the case of the
United Kingdom, and to Commission Decision 98/653/EC of 18 November 1998 concerning emergency meas-ures made necessary by the occurrence of bovine spon-giform encephalopathology in Portugal(
10), as last
amended by Decision 2000/104/EC(11).
(8)To guarantee a proper functioning of the scheme it isessential that speculative movements of meat andanimals are avoided. In this context, a retention periodfor the animals concerned should be determined.
(5) OJ L 122, 24.4.1998, p. 59.
(6) OJ L 99, 20.4.1996, p. 14.
(7) OJ L 131, 1.6.2000, p. 37.
(1) OJ L 160, 26.6.1999, p. 21. (8) OJ L 113, 15.4.1998, p. 32.
(2) OJ L 321, 19.12.2000, p. 47. (9) OJ L 328, 4.12.1998, p. 28.
(3) OJ L 19, 20.1.2001, p. 11. (10) OJ L 311, 20.11.1998, p. 23.
(4) OJ L 305, 6.12.2000, p. 35. (11) OJ L 29, 4.2.2000, p. 36.
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(9)Products bought in might be sold after 1 January 2002,
when the system of compulsory labelling based onorigin laid down by Regulation (EC) No 1760/2000 ofthe European Parliament and of the Council of 17 July2000 establishing a system for the identification andregistration of bovine animals and regarding the label-ling of beef and beef products and repealing CouncilRegulation (EC) No 820/97(
1), will apply. The labels of
the products should therefore be required to include anindication of the country or countries of birth andfattening of the animals concerned, in accordance withArticle 13(5) of Regulation (EC) No 1760/2000,togetherwiththeindicationslaiddowninArticle2(2)ofCommission Regulation (EC) No 1825/2000(
2) laying
down detailed rules for the application of Regulation(EC) No 1760/2000, as appropriate.
(10)In order to obtain the best result in terms of costefficiency, purchases should be limited to categories ofanimals over 30 months securing the withdrawal fromthe market at the lowest possible costs. For the samereasonandwithaviewtoincreasingthenecessaryflexi-bility of the management of the scheme, purchasesshould be decided following a tendering procedure.
(11)The market prices for the categories eligible under thescheme and in particular the prices for cows which isthe most representative category differ largely fromMemberStatetoMemberState.Itisthusappropriatetodetermine whether in a Member State the market situa-tion for cows is so weak that it justifies exceptionalsupportofthemarket.Tothisend,asystemofnationaltriggerpricesshouldapply.Suchtriggerpricesshouldbeby taking into account the average market prices for arepresentativequalityinthethreemostrecentyearswithnormal market situation.
(12)In order to ensure the highest possible impact on themarket it should be provided that different maximumtender prices are fixed per Member State being eligiblefor purchases in application of the trigger price system.Infixingthemaximumpriceaccountshouldbetakenofanamountcorrespondingtothenetcostscreatedbytheslaughter for human consumption. No maximum priceshould be fixed which exceeds the prevailing marketprice increased by the abovementioned amount.
(13)Provisions should be laid down in respect of conditionsof delivery and payment of the quantity awarded. It isappropriate within certain limits to adjust the paymentsto the successful tenderer where his actual deliveries ofmeat differ from the reference quality subject of thetender.
(14)Member States should be free to decide whether themeat taken over should be stored or destroyed. In thelatter case, Member States should take all necessarymeasures to guarantee the final destination for all themeatconcerned.Wherethemeatisintendedforstorage
MemberStatesshoulddetermineappropriatemethodsofstorage.
(15)In order to avoid market disturbance placing on themarketoftheproductsstoredshouldbesubjecttopriorapproval from the Commission acting in accordancewith the Management Committee procedure. Whereproducts are released for purposes of humanitarian aidcompliance with international agreements should beguaranteed.
(16)Takingintoconsiderationthecostsundertheschemetobe financed by national authorities it is appropriate toprovide that receipts from sales of products storedshould belong to Member States.
(17)Provision should be made for Commission experts tocheck compliance with the conditions as specified.
(18)The Management Committee for Beef and Veal has notdelivered an opinion within the time limit set by itsChairman,
HAS ADOPTED THIS REGULATION:
Article 1
1. Member States shall purchase chilled carcasses or half
carcasses from bovine animals over 30 months of age of thefollowingcategoriesasdefinedinArticle3(1)ofCouncilRegu-lation (EEC) No 1208/81(
3):
— Category B,
— Category D, and— Category E.
2. Chilled carcasses and half carcasses may be bought in
only where they:
— come from animals which at slaughter have been tested
negatively by one of the approved rapid tests listed inAnnex IV to Decision 98/272/EC,
— have obtained the health mark referred to in Chapter XI of
Annex I to Council Directive 64/433/EEC(
4),
— come from animals which have been present on one or
several holdings located in the Member State concernedduring at least 6 months prior to slaughter,
— come from animals slaughtered not more than six days
previously,
— are presented in accordance with Article 2 of Regulation
(EEC)No1208/81.Whereappropriate,Article1(2)and(3)of Commission Regulation (EEC) No 563/82(
5) shall apply
when determining the weight of the carcasse. MemberStatesmaylaydownfurtherspecificconditionswithregardto presentations of carcasses,
(3) OJ L 123, 7.5.1981, p. 3.
(1) OJ L 204, 11.8.2000, p. 1. (4) OJ 121, 29.7.1964, p. 2012/64.
(2) OJ L 216, 26.8.2000, p. 8. (5) OJ L 67, 11.3.1982, p. 23.
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— are classified correctly in accordance with the Community
scale provided for in Regulation (EEC) No 1208/81,
— are identified by slaughter number and by a stamped
marking indicating the category and the conformation,
— are labelled in accordance with the system introduced by
Regulation (EC) No 1760/2000 including the indicationslaid down in Article 13(5) of that Regulation.
Article 2
1. Thepurchasepriceforchilledcarcassestobeboughtina
Member State under this Regulation shall be determinedfollowing a tender procedure.
2. Tendering shall be opened in a Member State which for
twoconsecutiveweekshaverecordedtheaveragemarketpricefor the reference class of category D equal to or below thetrigger price listed in Annex I in respect of the Member Stateconcerned.
TenderingshallbesuspendedinaMemberStatewhichfortwo
consecutive weeks have recorded the average market price forthe reference class of category D above the trigger price listedin Annex I in respect of the Member State concerned.
The Commission shall decide on the opening and the suspen-
sion referred to above.
3. Thereferenceclassshallbe04inIrelandand03inother
Member States.
4. The conditions for tendering are laid down in Annex II.5. The provisions of this Regulation shall serve as a perma-
nent general notice of invitation to tender. For each individualtender, the intervention agencies concerned shall draw up anotice of invitation to tender for publication no later thanFriday before the closing date for submission of tenders, indi-cating in particular the address of the competent body author-ised to receive tenders. The deadline for submission of tendersshall be 12 noon (Brussels time) on the dates indicated inAnnex III.
Within24hoursofthedeadlineforthesubmissionoftenders,
the intervention agencies shall notify the Commission of thetenders they have received.
Article 3
1. In the light of the tenders received under each individual
invitation to tender and in accordance with the procedure laiddown in Article 43 of Regulation (EC) No 1254/1999 amaximum buying-in price relating to the reference class shallbe fixed. A different price may be set per Member State.
The maximum price shall not exceed the trigger price plus
EUR 14 per 100 kg carcasse weight.
2. Tenders shall be rejected
— if the price quoted is higher than the prevailing price for
the reference class of category D plus EUR 14 per 100 kgcarcasse weight,
— if the price quoted is higher than the maximum price
referred to in paragraph 1.3. A decision may be taken to make no award.
4. Rightsand obligationsarisingunderinvitationsto tender
shall not be transferable.
Article 4
1. The competent authorities shall inform the individual
tenderers immediately of the outcome of their tenders.
At the same time the successful tenderers shall be informed of
the quantity to be delivered and the price at which the awardwas made.
2. Delivery of the quantity awarded shall take place within
17calendardaysfromthedayofpublicationoftheRegulationfixingthemaximumbuying-inprice.TheMemberStatemayinexceptional cases extend that period by a maximum of oneweek.
Takingintoaccounttheprovisionsofparagraph3theMember
State shall determine the point of take-over and publish it inthe notice of invitation to tender referred to in Article 2(5).
3. Carcasses delivered shall be accepted and taken over
subject to verification by the competent authority that theycomply with the requirements laid down in this Regulation.Thecompetentauthorityshallfurthermoresystematicallycheckand record the weight and classification of each carcasse andkeep the records produced.
4. Ifthequantityactuallydeliveredandacceptedislessthan
the quantity awarded, the security shall:
(a) be released in full where the difference is not more than
5%;
(b) except in cases of force majeure, be forfeited;
— inpart,correspondingtothequantitiesnotdeliveredor
not accepted where the difference is not more than15%,
— in full in other cases.
Article 5
1. The competent authority shall pay successful tenderers
the price quoted in their tenders no later than 65 days aftercompletion of take-over of the products concerned.
2. Onlythequantityactuallydeliveredandacceptedshallbe
paid for within the limit of the quantity awarded.
3. WherecarcassesofclassificationclassesotherthanOare
taken over, the price to be paid to the successful tenderer forthecarcassesconcernedshallbeadjustedbyapplyingthecoef-ficients fixed in Annex IV.
4. The rate to be applied to the maximum buying-in price
andthepriceatwhichtheawardismadeshallbetheexchangerateapplicableonthedayofentryintoforceoftheRegulationfixing the maximum buying-in price under the invitation totender concerned.
5. The Community shall finance 70% of the price of the
meat purchased under this Regulation.
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TheMemberStateconcernedshallfinancetheremaining30%
aswellasallcostsrelatedtotheoperationsunderArticles6,7,8 and 9.
Article 6
After taking over the meat the competent authority may use
the products concerned in conformity with Article 9 or elimi-nate them in accordance with Article 7, with or without priorstorage.
Article 7
Where the option of elimination is applied the competent
authorityshalltakeallnecessarymeasurestoensurethatallthemeat concerned is processed through rendering and that theproducts subsequently obtained cannot be used for food orfeed purposes.
Article 8
1. Where a Member State decides to store the meat it may
be stored in bone-in or boneless form or in form of cannedproducts.TheMemberStateconcernedshalldeterminespecifi-cations related to cutting, deboning, canning, storage and/orany other operations linked to the products and their storage.
2. MemberStatesshallnotifytotheCommissionattheend
of each month, in respect of the preceding month, the quant-ities and characteristics of the stored products.
3. During storage, the competent authority shall conduct
regularchecksinparticularwithaviewtoensuringtheperma-nent presence in stocks of the products.
Article 9
1. Where meat is intended to be used for purposes other
than under Article 7, it may be released:
— without a specific destination or use,
— with a specific destination or use on the Community
market,
— for commercial export, or— for the purpose of a specific humanitarian aid operation in
a third country.
Wherethemeatisusedinaccordancewiththethirdorfourth
indent above no export refunds shall be granted on the quant-ities concerned.2. MemberStatesshalltakeallnecessarymeasurestoensure
that the products released under the last three indents ofparagraph 1 are used for the purpose intended.
3. Release of the products under the first three indents of
paragraph1,shallbemadeinawaywhichavoidsbothdistur-bance of the market and direct competition with disposal ofintervention products.
4. Release of the products under paragraph 1 can only be
made upon prior approval from the Commission acting inaccordance with the procedure laid down in Article 43 ofRegulation (EC) No 1254/1999.
5. WhereaMemberStateintendstoreleasestoredproducts
withaviewtoprovidinghumanitarianaidtoathirdcountryitshall ensure that all relevant provisions under internationalagreements are complied with.
Article 10
Proceeds from sales of products in conformity with this Regu-
lation shall belong to the Member State concerned.
Article 11
Without prejudice of Article 9 of Council Regulation (EC) No
1258/1999(
1), Commission experts accompanied where
appropriate by experts from Member States may carry outon-the-spotcheckstoverifycompliancewithalltheprovisionsof this Regulation.
Article 12
This Regulation shall enter into force on the third day
following its publication in the Official Journal of the European
Communities.
It shall apply in all Member States except the United Kingdom
from1July2001until31December2001.However,fromtheentry into force of this Regulation:
— it shall apply in Member States which no longer apply
Regulation (EC) No 2777/2000 in application of Article3(4) of that Regulation,
— it may be applied in other Member States which shall
inform the Commission if and from which time they wishto apply it.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 3 April 2001.
For the Commission
Franz FISCHLER
Member of the Commission
(1) OJ L 160, 26.6.1999, p. 103.
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(EUR/100 kg carcasse weight)
Until30June2001 1Julyto31December2001ANNEX I
Trigger prices referred to in Article 2(2)
Belgium 180,0 167,3
Denmark 178,2 165,6
Germany 177,7 165,2
Greece 158,0 146,9
Spain 158,0 146,9
France 218,3 202,9
Ireland 193,3 179,6
Italy 158,0 146,9
Luxembourg 188,2 174,9
Netherlands 185,2 172,1
Austria 161,5 150,1
Portugal 158,0 146,9
Finland 169,4 157,4
Sweden 205,7 191,1
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ANNEX II
Tendering conditions
Tenders
1. Only the following may submit tenders:
(a) slaughterhouses for bovine animals approved in accordance with Article 3(1)(A)(a) of Directive 64/433/EEC,
whatever their legal status; and
(b) livestockormeattraderswhohaveslaughteringundertakenthereinontheirownaccountandwhoareenteredina
national VAT register.
2. In response to invitations to tender, interested parties shall submit their tenders to the competent authorities of the
Member States where they have been issued, either by lodging a written bid against a receipt or by any other writtenmeans of communication accepted by the said authority, with advice of receipt.
3. Interested parties may submit only one tender in response to each invitation to tender.
The Member States shall ensure that tenderers are independent of each other in the terms of their management,
staffing and operations.
Wherethereareseriousindicationstothecontraryorthattendersarenotinlinewitheconomicfacts,tendersshallbe
deemed admissible only where the tenderer presents suitable evidence of compliance with the second subparagraph.
Whereitisestablishedthatatendererhassubmittedmorethanonetender,allthetendersfromthattenderershallbe
deemed inadmissible.
4. Tenders shall state:
(a) the name and address of the tenderer;(b) one total quantity, expressed in tonnes, of the products of the eligible categories;(c) the price expressed per 100 kg of products of the reference class of category D in euro rounded off to not more
than two decimal places.
5. Tenders shall be valid only if:
(a) they relate to at least 10 tonnes;(b) theyareaccompaniedbyawrittenundertakingfromthetenderertocomplywithalltheprovisionsrelatingtothe
invitation to tender concerned; and
(c) proof is furnished that by the closing date for the submission of tenders the tenderer has lodged a tendering
security as provided for below in respect of the invitation to tender concerned.
6. Tenders may not be withdrawn after the expiry of the deadline for submission.7. Tenders shall be confidential.
Securities
1. The maintenance of tenders after the deadline for the submission of tenders and the delivery of the products at the
designatedpointoftake-overwithinthetimelimitlaiddowninArticle4(2)shallconstituteprimaryrequirements,thefulfilment of which shall be ensured by the lodging of a security of EUR 25 per 100 kg.
Securities shall be lodged with the competent authority in the Member State in which the tender is submitted.
2. SecuritiesshallbelodgedintheformofcashdepositsasdefinedinArticle13andArticle14(1)and(3)ofCommission
Regulation (EEC) No 2220/85(
1) or in one of the forms provided for in Article 8(2) of that Regulation.
3. In the case of tenders which are not accepted, securities shall be released as soon as the outcome of the invitation to
tender is published.
In the case of tenders which are accepted, securities shall be released on completion of take-over of the products,
without prejudice to Article 4(4).
(1) OJ L 205, 3.8.1985, p. 5.
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ANNEX III
Dates referred to in Article 2(5)
17 April 200130 April 2001
14 May 200128 May 2001
11 June 200125 June 2001
9 July 2001
23 July 2001
27 August 2001
10 September 200124 September 2001
8 October 2001
22 October 2001
12 November 200126 November 2001
10 December 2001
SEUR O PANNEX IV
Coefficients referred to in Article 5(3)
Classification class
Belgium 1,13(1) 1,00 0,74
Denmark 1,24 1,00 0,78
Germany 1,12 1,00 0,74
Greece 1,15 1,00 0,98
Spain 1,27 1,00 0,67
France 1,22 1,00 0,88
Ireland 1,07 1,00 0,91
Italy 1,17 1,00 0,89
Luxembourg 1,20(1) 1,00 0,83
Netherlands 1,07 1,00 0,92
Austria 1,09 1,00 0,87
Portugal 1,17 1,00 0,83
Finland 1,15 1,00 0,84
Sweden 1,09 1,00 0,76
(1) Where carcasses delivered are classified as S or E the coefficient shall be 1,65.