Commission Regulation (EC) No 1125/1999 of 28 May 1999 amending Regulation (EC) No 111/1999 laying down general rules for the application of Council Regulation (EC) No 2802/98 on a programme to supply agricultural products to the Russian Federation
Date: 1999-05-28
Institutions: European Commission
Subjects: Russia, agricultural product, award of contract, food aid, interest, intervention stock, meat processing industry, rice, supplies contract, supply

29. 5. 1999

EN

Official Journal of the European Communities

L 135/41

COMMISSION REGULATION (EC) No 1125/1999

of 28 May 1999

amending Regulation (EC) No 111/1999 laying down general rules for the
application of Council Regulation (EC) No 2802/98 on a programme to supply
agricultural products to the Russian Federation

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 2802/98 of
17 December 1998 on a programme to supply agricultural
products to the Russian Federation (1), and in particular
Article 4(2) thereof,

(1) Whereas Commission Regulation (EC) No 111/
1999 (2) lays down the general rules of application
for the supply operations under the arrangements
introduced by Regulation (EC) No 2802/98;

(2) Whereas changes need to be made to those general
rules so as to take account of the technical arrange-
ments made between the Russian Federation and
the Commission after the entry into force of that
Regulation, which relate in particular to the rules
for the taking over of the products by the benefi-
ciary country and to the control procedures imple-
mented by the Commission to monitor execution
of the supply operations;

(3) Whereas the provisions relating to certification of
the conformity of
the products processed from
products originating in intervention stocks or
mobilised on the Community market should be
amended to take account of the organisation of the
controls and the rules for take over of the product
by the operator awarded the contract to transport
the product outside the Community should be
specified;

(4) Whereas, in order to facilitate operators’ participa-
tion in the tendering procedure, it is advisable to
relax some of the conditions initially stipulated for
the submission of tenders and to specify some of
the rules governing execution of the supply opera-
tions;

from the

(5) Whereas the immediate application of the changes
arrangements
resulting
concluded with the Russian authorities concerning
the taking over of the products as well as of certain
control provisions relating to the removal of the
products or the release of securities in favour of the
operators should be provided for;

technical

(1) OJ L 349, 24.12.1998, p. 12.
(2) OJ L 14, 19.1.1999, p. 3.

(6) Whereas the measures provided for in this Regula-
tion are in accordance with the opinion of all the
relevant Management Committees,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 111/1999 is hereby amended as
follows:

1. Article 4(3) is replaced by the following:

The intervention agencies shall satisfy them-
‘3.
selves that tenderers and the subcontractors, wholly-
milled rice producers and slaughterhouses involved in
the mobilisation of pigmeat indicated in their tenders
have the technical and financial capacity to meet the
obligations under the supply operations for which
they submit tenders.';

2. Article 5(1)(e)(4) is replaced by the following:

transport

‘4. the route, including border crossing points and
indicating any points at which the goods are to be
transferred from one means of
to
another outside the Community’s customs terri-
in such cases the tenderer undertakes to
tory;
communicate in writing to the authorities and
bodies indicated to the tenderer by the Commis-
sion, at least three days in advance, the dates on
which the transhipments are to take place and the
in
the principal operations,
probable dates of
particular loading and arrival at destination;'

3. Article 5(1)(e)(6) is replaced by the following:

‘6. the undertaking by the tenderer to submit, in the
event of his tender being successful, the original
of the insurance policy taken out to cover all risks
relating to transport;'

4. Article 5(1)(f)(3) is replaced by the following:

‘3. the name(s) and address(es) of

the businesses
producing the wholly-milled rice and of all
subcontractors and forwarding agents to be used
in the operation;'

5. in Article 5(1)(f), point (4) is deleted;

L 135/42

EN

Official Journal of the European Communities

29. 5. 1999

6. Article 5(1)(g)(1) is replaced by the following:

14. in Article 6, paragraph (5) is deleted;

tendered per

taking
‘1. the amount
account of
the cost of processing, packaging,
transport and storage to the delivery stage speci-
fied in the invitation to tender;'

tonne (net),

7. Article 5(1)(g)(3) is replaced by the following:

‘3. the name(s) and address(es) of the slaughterhouses
involved in the mobilisation of the products and
of all subcontractors and forwarding agents to be
used in the operation;'

15. Article 7(1) is replaced by the following:

‘1.
In the case of a supply operation as referred to
in Article 2(1)(a) or (b), the successful tenderer shall
lodge, within five working days of receiving noti-
fication of award of the tender, a supply security of an
amount equal to the quantities to be removed for
each ship or for each destination, multiplied by the
unitary amount laid down in the notice of invitation
to tender.

8. in Article 5(1)(g), point (4) is deleted;

9. in Article 5(1)(i),

‘in accordance with Annex III' is

replaced with ‘in accordance with Annex IV';

Removal of the goods may commence once the inter-
vention agency has obtained proof that the supply
security has been lodged in accordance with para-
graph 4.';

10. the final subparagraph of Article 5(1) is replaced by

16. the following Article 7a is added:

the following:

‘The securities provided for in this Regulation shall
be lodged by credit
institutions approved by the
Member States and included on the list drawn up by
the Commission (1) in accordance with Articles 3(7)
and 10(2) of Council Directive 77/780/EEC (2). A
security lodged by an approved institution not
included on the list shall be admissible if the credit
the
institution indicates in its security document
reference to the national decision granting it that
approval. Securities must be accompanied by details
of the person or persons authorised to sign the finan-
cial documents, including their official capacity and a
specimen of their signature.';

11. Article 5(3) is replaced by the following:

Tenders shall be valid for 15 days after the final

‘3.
date for the submission of tenders.';

12. the following subparagraph is added to Article 6(1):

‘The intervention agency or agencies concerned shall,
within the time limit
specified in the previous
subparagraph, forward to the Commission, for each
lot, a complete copy of
favourable
the
tenders received, accompanied by a copy of
security and of the financial undertaking mentioned
in Article 5(1)(h) and (i) and the specimen signatures
of the persons authorised to issue those documents.';

the two most

13. Article 6(3) is replaced by the following:

the award of

The Commission shall

inform the successful
‘3.
the contract as soon as
tenderer of
possible and shall send a copy of that decision to the
intervention agency or agencies which received the
tenders.';

‘Article 7a

1. With regard to supply operations concerning
the production of wholly-milled rice and the mobili-
sation of pigmeat on the Community market, the
successful tenderer shall be paid a lump sum of EUR
0,45 per tonne (net) per day for the rice and EUR 0,90
per tonne (net) per day for the pigmeat to cover all
expenses (parking, insurance, security, securities, etc.)
in the event that the transporter cannot take over the
goods within the time limit set for reasons beyond his
control.

2. With regard to a supply operation as referred to
in Article 2(1)(a),
the removal certificate shall be
issued by the intervention agency within three
the operations to
working days from the end of
remove all the quantities stored in a warehouse indi-
cated in the Regulation governing the supply in ques-
tion. The intervention agency shall be liable to pay
the cost of late issuance of the certificate, that cost to
be determined by applying an interest rate equal to
the reference rate mentioned in Annex VII applicable
in the member State concerned on the last day for the
submission of tenders plus one and a half percentage
points.';

17. in Article 9(1), the final subparagraph is replaced by

the following:

‘In the case of a supply operation concerning the
production of wholly-milled rice or the mobilisation
of pigmeat on the Community market, the removal
certificate drawn up in accordance with Annex V and
checked and signed by the control agency shall
certify conformity of the product with the rules laid
down for its supply.';

29. 5. 1999

EN

Official Journal of the European Communities

L 135/43

18. Article 9(5) is replaced by the following:

In the case of

‘5.
the supply of beef/veal and
pigmeat, the intervention agency holding the product
and the successful tenderer, or, where applicable, the
storekeeper for the account of the successful tenderer,
shall undergo any controls requested and conducted
by agents designated by the recipient country on
Community customs territory.';

19. Article 9(6) is replaced by the following:

The agency responsible for the controls shall
‘6.
seal
leaving Community
the means of
transport
customs territory at the time of loading. In the case of
transhipment outside Community customs territory,
the agency designated by the Commission shall verify
that the seals on the means of transport arriving at
the points of transhipment are intact, and shall seal
the new means of transport used after transhipment.';

20. Article 10 is replaced by the following:

‘Article 10

1.
Applications for payment of the supply shall be
submitted to the intervention agency referred to in
Article 4 within two months of the end of the period
laid down for the supply in the notice of invitation to
tender. Except in cases of force majeure, where this
provision is not complied with the amount of the
payment shall be reduced by 10 % for the first
month’s delay and 5 % for each month thereafter.

Applications for payment shall be accompanied

2.
by the following supporting documents:

(a) where Article 2(1)(b) applies:

(cid:190) a copy of the transport documents,

(cid:190) the original of the take-over certificate issued
by the control agency designated by the
Commission and signed by the representative
of the recipient country given in the Annex to
the regulation opening the invitation to tender
for the supply. That document shall be drawn
up in accordance with Annex I,

(cid:190) the certificate of conformity at the delivery

stage referred to in Article 9(7),

(cid:190) according to the case, a copy of the export
licence or the export declaration where an
export licence is not required under the legis-
lation for the common organisation of the
market;

(b) where Article 2(1)(a) applies, in addition to the
documents indicated under (a) above applications
shall be accompanied by the control document
referred to in Article 14(2).

3.
In the case of supplies as referred to in Article
2(1)(a) or (b), payment of the tender shall be made in
respect of the quantity stated in the take-over certifi-
cate issued by the control agency designated by the
Commission and signed by the representative of the
recipient country indicated in the Annex to the regu-
lation opening the invitation to tender for the supply.
That document shall be drawn up in accordance with
Annex I.

In the case of supplies as referred to Article 2(2),
4.
the quantity of intervention product awarded shall be
made available to the successful tenderer on presenta-
tion of proof of lodging of the security pursuant to
Article 7(2).

5.
In the case of supplies as referred to Article 2(3),
payment of the tender of the successful tenderer for
mobilisation of the product shall be made on presen-
tation of the removal certificate drawn up in accord-
ance with Annex V, issued by the designated trans-
porter and signed by the control agency referred to in
Article 9(1) after complete loading of the lot.

6. Where take over by the recipient’s representative
at the delivery stage is delayed owing to circumstances
beyond the control of the successful tenderer, the
additional costs borne by the latter shall be reim-
bursed by the recipient country following an exam-
ination of the supporting documents.

7.
In the case of transport by truck on the roads of
the Russian Federation, the tenderer shall, in applica-
tion of the undertaking given as a result of his tender,
forward to the Russian authorities the invoices for the
costs determined in accordance with the technical
appendix to the Memorandum of Understanding
referred to in Article 15.';

21. in the second subparagraph of Article 12(2), point (b)

is replaced by the following:

‘(b) in the case of supplies as provided for in Article
2(2) and (3), by presenting the removal certificate
drawn up in accordance with Annex V, issued by
the transporter and signed by the control agency
mentioned in Article 9(1).';

L 135/44

EN

Official Journal of the European Communities

29. 5. 1999

22. Article 12(3) is replaced by the following:

‘3. Where delays occur at the stage laid down for
the supply, the supply security shall be forfeited in
respect of those quantities not taken over within the
time limits or delivered outside of the time limits, up
to an amount of EUR 0,75 per tonne per day of delay.
With effect from the 11th day of delay the amount
forfeited shall be increased to EUR 1,00 per tonne per
additional day. These provisions shall apply where the
delay in take over or delivery is attributable to the
successful tenderer.';

23. Article 12(4) is replaced by the following:

In the case of supplies as provided for in Article
‘4.
2(1)(a) or (b), the supply security shall be released in
accordance with the conditions laid down above or in
instalments of 20 % each time proof is presented that
20 % of the quantity of a lot has been delivered.';

24. in Article 13, the following subparagraph is added:

‘The payment-on-account security shall be released
when the conditions laid down for the payment of
the balance of the supply, in application of Article 10,
have been met.';

25. Article 14 is replaced by the following:

‘Article 14

1.
The export licences requested and delivered for
the execution of the supplies, in application where
appropriate of the legislation for the common organ-
isation of the market, shall contain in Box 20 the
following entry:

“Council Regulation (EC) No 2802/98. Not eligible
for export refunds.”

2.
The export declaration and the control docu-
ment issued pursuant to Article 3 of Regulation (EEC)
No 3002/92 shall indicate the following:

“Commission Regulation (EC) No 111/1999 laying
down general rules for the application of Council
Regulation (EC) No 2802/98 on a programme to
supply agricultural products to the Russian Federa-
tion. Not eligible for export refunds.”

3. When the export of the product is subject to the
presentation of an application for an export licence,
the application shall be accompanied by the proof
that the applicant is a successful tenderer of a supply
under Regulation (EC) No 2802/98. Such proof shall
be provided by a copy of the decision to award the
contract referred to in Article 6(3).

licences shall be issued only if proof

Export
is
provided that the supply security has been lodged in
accordance with Article 7. Lodging of that security
shall be deemed to constitute the lodging of the
licence security, By way of derogation from Title III,
Section 4, of Regulation (EEC) No 3719/88, it shall
be released under the conditions laid down in Article
12(2).';

26. Annex II is replaced by Annex A to this Regulation;

27. in Annex IV, the final subparagraph is replaced by

the following:

“Our guarantee will be issued in accordance with
Article 7 of and Annex III to Regulation (EC) No
111/1999.”;

28. Annex B to this Regulation is added as Annex VII.

Article 2

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

It shall apply to invitations to tender opened after its
entry into force with the exception of the provisions
mentioned under Article 1, points 17, 20, 21, 23 and 24
which are applicable to all of the tenders.

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

Done at Brussels, 28 May 1999.

For the Commission

Franz FISCHLER

Member of the Commission

29. 5. 1999

EN

Official Journal of the European Communities

L 135/45

ANNEX A

‘ANNEX II

Break-down of tender in EUR/tonne (1)

1. Handling and loading costs

2. Forwarding costs

3. Costs of placing fob

4. Sea freight

5. Cost of loading onto wagons

6. Rail costs prior to transhipment

7. Cost of transhipment onto wagons

8. Rail costs after transhipment to Russian border

9. Cost of land transport by truck to Russian border

10. Cost of insurance to cover all risks relating to transport

11. Cost of bank guarantees

12. Administrative costs (certificates, customs documents, etc.)

13. Miscellaneous costs

Total EUR/tonne . . . . . . . . . . . . .

(1) If the tender is to be admissible, pursuant to Article 5(1)(e)(5), it must contain a figure for the relevant headings in this

Annex, taking account of the type of supply operation.'

L 135/46

EN

Official Journal of the European Communities

29. 5. 1999

ANNEX B

‘ANNEX VII

Reference interest rate referred to in Article 7(a)(2)

(cid:190) Belgium: Interest rate on three-month Treasury certificate (European Central Bank)

(cid:190) Denmark: Three-month interbank interest rate (Danish Central Bank)

(cid:190) Germany: Three-month interest rate (European Central Bank)

(cid:190) Greece: Three-month ATHIBOR (Reuters)

(cid:190) Spain: Three-month interbank interest rate (Spanish Central Bank)

(cid:190) Finland: Three-month HELIBOR (European Central Bank)

(cid:190) France: Three-month PIBOR (European Central Bank)

(cid:190) Ireland: Three-month interbank fixed rate (European Central Bank)

(cid:190) Italy: Three-month interbank interest rate (FT)

(cid:190) Luxembourg: Interest rate on three-month Treasury certificate (European Central Bank)

(cid:190) Netherlands: Three-month interbank interest rate (European Central Bank)

(cid:190) Austria: Three-month VIBOR (European Central Bank)

(cid:190) Portugal: Three-month interbank interest rate (Portuguese Central Bank)

(cid:190) Sweden: Three-month STIBOR (European Central Bank)

(cid:190) United Kingdom: Three-month interbank interest rate'