Commission Regulation (EC) No 2768/98 of 21 December 1998 on the aid scheme for the private storage of olive oil
Date: 1998-12-21
Institutions: European Commission
Subjects: aid system, award of contract, contract, olive oil, private stock

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COMMISSION REGULATION (EC) No 2768/98

of 21 December 1998

on the aid scheme for the private storage of olive oil

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation No 136/66/EEC of
22 September 1966 on the establishment of a common
organisation of the market in oils and fats (1), as last
amended by Regulation (EC) No 1638/98 (2), and in
particular Article 12a thereof,

in certain regions of

Whereas Article 12a of Regulation No 136/66/EEC
provides that in the event of serious disturbance on the
market
the Community an aid
scheme for the private storage of olive oil may be imple-
mented up to 31 October 2001; whereas the scheme must
be based on contracts concluded with approved operators
offering sufficient guarantees; whereas priority should be
given to producer groups within the meaning of Council
Regulation (EC) No 952/97 (3);

Whereas detailed rules governing the aid scheme for the
private storage of olive oil should be laid down so that it
can be implemented speedily if necessary; whereas in
order that the scheme may have greater effect on the
market at the level of producers and to make monitoring
easier, the aid should be granted primarily for the bulk
storage of virgin olive oil;

Whereas in order to reflect best the market situation, the
amount of aid should be determined by a tendering
procedure opened in accordance with certain rules and in
respect of market sectors requiring it; whereas participants
in the tendering procedure must be operators offering
substantial guarantees;

Whereas the information that must appear in tenders and
the conditions in which they are to be presented and
examined must be specified; whereas, in particular, in
order to be able to have an effect on the market situation,
tenders must be submitted for a long storage period and
in respect of a minimum quantity in relation to the
situation in the sector; whereas performance of the tender
must be guaranteed by lodging a security under the
conditions laid down in Commission Regulation (EEC)
No 2220/85 (4), as last amended by Regulation (EC) No
3403/93 (5), the amount and duration of which must be
related to the likelihood of fluctuations in prices on the
market and the number of days’ storage conferring enti-
tlement to the aid which have actually been completed;

Whereas successful tenders shall be those which do not
exceed a maximum amount of aid per day of storage, to
be determined in relation to the market in olive oil;
whereas, however, the representativeness of tenders and
compliance with the maximum quantities set under the
procedure must be ensured for each category or region
specified;

Whereas the main points to be included in the contract
should be specified; whereas, in order to prevent short-
comings on the market, the Commission must be able to
adjust the term of the contract in the light mainly of the
harvest forecasts for the marketing year following that in
which the contract was concluded;

Whereas in order to ensure that the scheme is properly
administered, it is necessary to indicate the conditions in
which an advance on aid may be granted, the checks on
compliance with entitlement to the aid which are essen-
tial, certain procedures for calculating the aid and the
information to be notified to the Commission by the
Member States;

Whereas Commission Regulation (EEC) No 314/88 (6), as
amended by Regulation (EEC) No 3788/89 (7), and
Commission Regulation (EC) No 94/98 (8),
last
amended by Regulation (EC) No 2367/98 (9), on private
storage before 1 March 1998 must be repealed;

as

Whereas the measures provided for in this Regulation are
the Management
in accordance with the opinion of
Committee for Oils and Fats,

HAS ADOPTED THIS REGULATION:

Article 1

1.
The competent bodies in producer Member States
shall conclude contracts for the private storage of virgin
olive oil in bulk on the conditions laid down in this
Regulation.

2.
In order to determine the aid to be granted for
carrying out contracts for the private storage of virgin
olive oil in bulk, the Commission may, up to 31 October
2001 acting in accordance with the procedure laid down
in Article 38 of Regulation No 136/66/EEC, open invita-
tions to tender for a limited period. During a tendering
procedure for a limited period, partial
invitations to
tender shall be opened.

(1) OJ 172, 30. 9. 1966, p. 3025/66.
(2) OJ L 210, 28. 7. 1998, p. 32.
(3) OJ L 142, 2. 6. 1997, p. 30.
(4) OJ L 205, 3. 8. 1985, p. 5.
(5) OJ L 310, 14. 12. 1993, p. 4.

(6) OJ L 31, 3. 2. 1988, p. 16.
(7) OJ L 367, 16. 12. 1989, p. 44.
(8) OJ L 9, 15. 1. 1998, p. 25.
(9) OJ L 293, 31. 10. 1998, p. 64.

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Article 2

1. An invitation to tender for a limited period may be
opened where:

— there are serious disturbances on the market in certain
regions of the Community which may be reduced or
resolved by measures for the private storage of virgin
olive oil in bulk,

and

— the average price recorded on the market during a
period of not less than two weeks is less than:

— ECU 177,88/100 kg for extra virgin olive oil,

and/or

— ECU 170,99/100 kg for fine virgin olive oil, and/or

— ECU 166,40/100 kg for ordinary virgin olive oil,

and/or

— ECU 156,08/100 kg for lampante virgin olive oil
having 1 degree of free acidity, this amount being
reduced by ECU 3,67/100 kg for each additional
degree of acidity.

Invitations

2.
for a limited period shall
specify the maximum quantity for the whole tendering
procedure and may specify maximum quantities for each:

to tender

— category of virgin olive oil as referred to in the Annex

to Regulation No 136/66/EEC,

— category of approved operators as referred to in Article

3(1),

— Community region or Member State.

Invitations to tender for a limited period may be opened
for only certain of the categories or regions referred to in
the first subparagraph so as to give priority to the oper-
ators referred to in Article 3(1)(a).

Invitations to tender for a limited period may be closed
before the end of the period in accordance with the
procedure laid down in Article 38 of Regulation No 136/
66/EEC.

Article 3

1. Operators approved to that end by the competent
body in the Member State concerned may submit tenders
in respect of partial invitations to tender. Approved oper-
ators may include the following:

(a) a producers’ group or an association of such groups,
recognised in accordance with Regulation (EC) No
952/97, or

(b) a producers’ group or an association of such groups,
recognised in accordance with Article 20c of Regula-
tion No 136/66/EEC, or

(c) a mill approved in accordance with Article 13 of
Council Regulation (EEC) No 2261/84 (1) for more
than two marketing years and which allows not less
than 2 tonnes of oil to be extracted per eight-hour
working day and which has obtained over the two
preceding marketing years a total of at
least 500
tonnes of virgin olive oil, or

(d) a packaging firm with a capacity, in the territory of a
Member State, equal at least to 6 tonnes of oil put up
per eight-hour working day, and which has put up
over the two preceding marketing years a total of at
least 500 tonnes of olive oil.

For the purposes of the approval referred to in para-

2.
graph 1, operators shall give an undertaking to:

— accept the sealing, by the competent body in the
Member State, of the vats containing the olive oil
covered by a storage contract,

— keep stock records of the oil and, where appropriate,

the olives they are storing,

— undergo all checks provided for under this aid scheme

for private storage contracts.

They shall make a declaration of the capacity of their
storage facilities, provide a plan of those facilities and
supply evidence of compliance with the conditions in
paragraph 1.

3. Operators meeting the conditions in paragraphs 1
and 2 shall be approved and given an approval number
within two months of the month in which the complete
file containing the application for approval is submitted.

Without prejudice to Article 13(3), approval shall be
refused or withdrawn forthwith from operators:

— who fail to meet the conditions for approval, or

— against whom proceedings have been instituted by the
competent
rules
governing the scheme provided for in Regulation No
136/66/EEC, or

for breach of

authorities

the

— who have been penalised for breach of the Regulation

during the preceding 24 months.

Article 4

The deadlines for the submission of tenders in respect of
partial tendering procedures shall be as follows:

— for November, January, February, March, April, May,
June, July, September and October, from the fourth
to the eighth day at midday and from the 18th to the
22nd at midday,

(1) OJ L 208, 3. 8. 1984, p. 3.

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— for August, from the 18th to the 23rd at midday,
— for December, from the 9th to the 14th at midday.

The time of the deadline shall be local Belgian time.
Where the day on which the deadline expires in a
Member State is a holiday for the body responsible for
receiving the tenders, the deadline shall expire at midday
on the last preceding working day.

Article 5

tenders

1. Without prejudice to Article 11,
for a
minimum quantity of 50 tonnes shall be made in respect
of the amount of aid per day, for the private storage for
365 days in sealed vats and in accordance with the condi-
tions laid down in this Regulation of virgin olive oil in
bulk in one of the four categories listed in the Annex to
Regulation No 136/66/EEC.

2. Approved operators shall take part in the partial
tendering procedure either by submitting a written tender
to the competent body in a Member State, against receipt
of delivery, or by fax to that body.

Where an operator takes part in a partial tendering proce-
dure for more than one category of oil or for vats located
at different addresses, he shall submit a separate tender in
each case.

A tender shall be valid only for a single partial tendering
procedure. Once submitted, tenders may not be with-
drawn or altered after the closing date for submission of
tenders.

3.

Tenders shall contain:

(a) a reference to this Regulation and to the partial
tendering procedure to which the tender refers;

(b) the name and address of the tenderer;

(c) the category of approved operator, referred to in

Article 3(1), and the approval number;

(d) the quantity and category of olive oil covered by the

tender;

(e) the exact address of the place at which the storage vats

are located;

(f)

the amount of aid per day of private storage per tonne
of olive oil, expressed in ecus to two decimal places;

(g) the amount of the security to be established in accord-
ance with Article 6 expressed in the currency of the
Member State in which the tender is made.

To ensure that their validity is recognised, tenders

4.
must:

— be drawn up, together with the relevant documents, in
the official language or one of the official languages of
the Member State of
the competent body which
receives them,

— be submitted in accordance with this Regulation and
contain all the particulars listed in paragraph 3,
— not contain conditions other than those provided for

in this Regulation,

— be made by an operator approved by the Member
State in which they are received, and concern storage
vats located in that Member State,

— be accompanied, prior to the deadline for the submis-
sion of tenders, by proof that the tenderer has estab-
lished the security specified in them.

Article 6

Tenderers shall establish a security of ECU 50 per

1.
tonne of olive oil covered by a tender.

2. Where tenders are unsuccessful, the security referred
to in paragraph 1 shall be released forthwith following
publication in the Official Journal of the European
Communities of the maximum amount of the aid for the
partial tendering procedure concerned.

3. Where tenders are successful, a security of ECU 200
per tonne of olive oil covered by the tender shall be
established no later than the first day of performance of
the contract as referred to in Article 9(3) second paragraph
in addition to the security referred to in paragraph 1.

4.
The primary requirement within the meaning of
Article 20 of Regulation (EEC) No 2220/85 for the release
of the securities referred to in paragraphs 1 and 3 shall be
the storage for six months provided for in the tender
under the contract conditions laid down in this Regula-
tion.

However, where the duration of the contract is reduced to
less than six months pursuant to Article 11, the storage
period referred to in the first subparagraph shall be the
same as the period of performance of the contract.

Article 7

1.
Tenders shall be examined by the competent body
in the Member State concerned in the absence of
members of the public. Subject to paragraph 2, persons
present at the examination shall be under an obligation
not to disclose any particulars relating thereto.

Valid tenders shall be notified to the Commission,
2.
classified in increasing order of amount, unnamed, by fax,
not later than 48 hours following the expiry of the dead-
line for the submission of tenders. If the deadline expires
on a Friday tenders shall be notified no later than midday
the following Monday.

3.
Particulars shall be given for each tender notified of
the quantity, category of oil and amount referred to in
Article 5(3)(d) and (f). In addition, where the procedure
sets maximum quantities for each category of operators or
region, the categories or regions concerned shall be indi-
cated for each tender.

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Article 8

1.
In accordance with the procedure laid down in
Article 38 of Regulation No 136/66/EEC and on the basis
of the tenders received, a maximum amount of aid shall
be set per day of private storage not later than the ninth
working day following the expiry of each deadline set for
the submission of tenders under partial tendering pro-
cedures.

The maximum amount of aid shall be set in the light
2.
of
the situation and foreseeable developments on the
market in olive oil, and the opportunities for contributing
significantly to ensuring that the market is regulated by
the measure concerned.

In addition, account shall be taken of quantities which are
covered already by private storage contracts and of the
quantities covered by the tenders received.

3. When the maximum amount is being set, and in
accordance with the same procedure, all
in
respect of a category of oil, a category of operator or a
region for which a maximum quantity has been set under
Article 2(2) may be rejected where, in the case of the
category or region in question:

tenders

— the tenders are not representative, or

4. Within 30 days of the conclusion of the contract, the
competent body in the Member State shall

— identify the vats containing the olive oil concerned,

— record the net weight of the oil,

— take a sample representative of the tender,

— seal each vat.

The sample taken shall be analysed as quickly as
5.
possible to ensure that the oil corresponds to the category
for which the contract was awarded.

Article 10

The contract drawn up in two copies shall contain at

1.
least the following:

(a)

the name and address of the competent body in the
Member State;

(b) the full postal address, and the approval number and
category of the contractor, as referred to in Article
3(1);

(c) the exact address of the place of storage;

(d) the date of conclusion of the contract;

— the maximum amount set could result in an overrun

of the maximum quantity concerned.

(e) the date of commencement and of completion of
performance of the contract, subject to Article 11;

Article 9

The contract shall be awarded, without prejudice to
1.
Article 8(3), to the tenderer or tenderers whose tender has
been notified in accordance with Article 7(2), and which
corresponds to the maximum amount of aid per day of
private storage, or less for the quantity shown in the
tender.

The rights and obligations of the successful tenderer shall
not be transferable.

2.
The competent body in the Member State concerned
shall notify all tenderers in writing of the outcome of
their participation in the tendering procedure not later
than the second working day following the date of publi-
cation of the maximum amount of the aid in the Official
Journal of the European Communities.

The date of conclusion of the contract shall be that
the tender is

3.
on which the notice of acceptance of
dispatched to the tenderer.

The date of commencement of performance of
the
contract, subject to the lodging of the security referred to
in Article 6(3), shall be that of the day following the
conclusion of the contract, and the oil in question must
be stored in the conditions provided for in the contract.

(f) a reference to this Regulation and to the partial

tendering procedure concerned.

The contract shall contain a reference in respect of

2.
each batch covered by it to:

— the category and net weight of the virgin olive oil,

— the particulars of the vats containing the oil.

3.

(a)

The contract shall require the contractor:

to keep in storage, for an agreed period, the agreed
quantity of the product concerned, at his expense and
risk;

(b) to store oil of different categories in separate vats,
specified in the contract and sealed by the competent
body in the Member State; changes of vats must be
authorised by that body, undertaken in its presence
and have new seals affixed;

(c) to allow the competent body in the Member State to
verify at all times compliance with the requirements
of the contract.

4. Without prejudice to Article 11, where the contractor
terminates the contract while it is being performed, the
securities referred to in Article 6 and, where appropriate,
Article 12, shall be forfeit in their totality; in addition, the
contractor shall lose the benefit of the aid for the whole
of the period and for all the quantities provided for in the
contract.

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Article 11

1.
The Commission, on the basis of developments on
the market in olive oil and the outlook for the future, may
decide in accordance with the procedure laid down in
Article 38 of Regulation No 136/66/EEC to shorten the
duration of contracts which are being performed.

Changes to contracts may be adopted only during the
period 1 September to 31 December, and may not take
effect before the end of the month following that in
which they are adopted.

2. Where a contract is changed pursuant to paragraph
1, the Commission shall set a percentage reduction to be
applied to the numbers of days of performance provided
for after a date specified for all contracts which are being
performed on that date.

Article 12

1.
Following the conclusion of the contract an advance
corresponding to the aid provided for in respect of the
period starting on the date of commencement of
performance of the contract and ending on 31 August
following may be paid on condition that a security is
lodged for an amount equal to 120 % of the advance.

In the case of contracts that are being performed, from 1
January, a further advance may be paid for the period
beginning on 1 September and ending on expiry of those
contracts, under the terms specified in the first subpara-
graph.

2.
The security referred to in paragraph l shall be
released forthwith on payment of the balance of the aid in
accordance with Article 14(3).

tion, securities as referred to in Articles 6 and 12 shall be
forfeit under the terms of Regulation (EEC) No 2220/85.

Article 14

The aid amount shall be calculated in relation to the

1.
net weight recorded in accordance with Article 9(4).

The rate to be applied when converting the amount of
private storage aid into national currency shall be the
agricultural conversion rate applicable on the date of
commencement of performance of the contract.

The requirements relating to the quantities provided
2.
for in the tenders and contracts shall be regarded as met if
they are in fact met in respect of 98 % of those quant-
ities.

Where the analysis referred to in Article 9(5) does not
suffice to confirm that the oil in the vat corresponds to
the category for which the contract was awarded, the
entire quantity covered by the tender shall be deemed not
to be in conformity.

the requirements of

3.
The aid, or where an advance has been granted under
Article 12 the balance of the aid, shall be paid only when
all
the contract have been met.
Payment of the aid, or the balance of the aid, shall be
made following a check on compliance with the require-
ments, within 60 days following expiry of the contract.

Article 15

1.
The Member States concerned shall notify the
Commission of the national measures taken to apply this
Regulation and of the specimen contract.

Article 13

Before final payment of

1.
competent body in the Member State shall:

the aid is made,

— collect and verify the proof of compliance with the

conditions laid down in this Regulation,

— carry out the necessary checks to ensure that the olive
oil in question has remained in storage during the
whole of the storage period referred to in the contract,
— take all the measures necessary to ensure that checks
are made on compliance with the requirements of the
contract.

2. Checks on compliance shall
include the physical
inspection of the goods stored, together with scrutiny of
the accounts.

inspection shall cover in particular the
The physical
compliance of the stocks covered by the contract with the
categories of oil provided for in the contract, the presence
of the seals and of the quantities provided for.

3. Where there is failure to comply with the require-
ments of the contract, the aid shall not be granted, and
without prejudice to other penalties that may be applied,
the approval of the operator shall be withdrawn. In addi-

2.
The Member States shall notify the Commission of
the quantities of olive oil for which an aid has been
awarded and which, as appropriate, are not the subject of:

the

— a contract,
— compliance with or the performance in full of the

contract.

The notices referred to in the first subparagraph shall
specify the partial tendering procedure concerned and, as
appropriate, the categories of oil, operators, or regions
concerned. Notification shall take place at the earliest
opportunity and not later than the 10th day of the month
following the month concerned.

Article 16

Regulation (EEC) No 314/88 and Regulation (EC) No
94/98 are hereby repealed.

Article 17

This Regulation shall enter into force on the third day
following its publication in the Official Journal of the
European Communities.

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This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 21 December 1998.

For the Commission

Franz FISCHLER

Member of the Commission