Commission Regulation (EC) No 1262/2001 of 27 June 2001 laying down detailed rules for implementing Council Regulation (EC) No 1260/2001 as regards the buying in and sale of sugar by intervention agencies
Date: 2001-06-27
Institutions: European Commission
Subjects: award of contract, intervention agency, intervention buying, intervention price, selling price, white sugar

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COMMISSION REGULATION (EC) No 1262/2001

of 27 June 2001

laying down detailed rules for implementing Council Regulation (EC) No 1260/2001 as regards the
buying in and sale of sugar by intervention agencies

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1260/2001 of 19
June 2001 on the common organisation of the market in the
sugar sector (1), and in particular Articles 7(5) and 9(3) thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

Article 7(1) of Regulation (EC) No 1260/2001 provides
for intervention agencies to buy in certain sugars.

The implementation of Community intervention meas-
ures requires sugar to be taken over by the intervention
agencies at a specified place. Accordingly, only sugar
held in an approved warehouse when the offer is made
may be taken over. The intervention system is confined
to sugar manufactured from beet or cane harvested
within the Community and the price and sales guarantee
is restricted to manufacturers who have been allocated a
basic quota.

Experience gained in the sugar sector has demonstrated
the importance of free competition for the marketing of
sugar. Free competition can be encouraged if indepen-
dent traders participate in the marketing of sugar. The
position of these undertakings in the sugar sector should
therefore be strengthened. To that end, they should be
allowed to offer Community sugar for intervention, so
that they can effect their commercial transactions under
normal conditions.

The intervention agencies are responsible for the goods
bought in. They must therefore take all the necessary
steps to ensure that, when sugar is offered for interven-
tion, it is stored in the conditions required for keeping
sugar in good condition. To ensure that the intervention
arrangements function smoothly, therefore, it must be
possible for sellers to conclude storage contracts with
intervention agencies.

As regards the conditions for granting and withdrawing
approval of warehouses, account should be taken of the
requirements for keeping sugar in good condition and
easily accessible for removal, the geographical location,
and the capacity for removal from storage, and where
appropriate bagging, guaranteed by applicants in respect
of the sugar offered by them.

(6)

In order to grant and withdraw approval in an interven-
tion system extended to specialised sugar traders, objec-
tive criteria must be laid down for assessing that activity,

in particular to define what constitutes a significant
participation in the sugar trade. Member States should
be allowed to impose further requirements if necessary
and to withdraw approval if those requirements are not
met. The Commission should be notified each time
is granted, renewed or withdrawn.
approval

Council Regulation (Euratom) No 3954/87 of 22
December 1987 laying down the maximum permitted
levels of radioactive contamination of foodstuffs and of
feedingstuffs following a nuclear accident or any other
case of radiological emergency (2), as amended by Regu-
lation (Euratom) No 2218/89 (3), sets out the procedure
to be followed in cases of radiological emergency to
determine the levels of radioactive contamination which
foodstuffs and feedingstuffs must comply with if they
are to be offered for sale. Consequently, agricultural
products in which such radioactive contamination levels
are exceeded may not be bought in.

Sugar with characteristics that will make it difficult to
dispose of
later and likely to deteriorate in storage
should not be accepted for intervention.

To facilitate the administration of
the intervention
arrangements, sugar should be offered in lots. A lot, in
particular its quantity, should therefore be defined.

The intervention agency must have all the facts needed
to determine whether the offer meets all the require-
ments. To that end, the party making the offer must
supply it with all the necessary information.

the offer subject

The intervention agency is entitled to make acceptance
of
to the conclusion of a storage
contract with the seller, should it consider this necessary.
In the interests of uniformity, the principal terms which
such contracts must contain, in particular their period of
validity, should be laid down.

(7)

(8)

(9)

(10)

(11)

(12) Approved silos and warehouses must offer optimal
conditions for storing sugar. It is generally accepted that
in the correct conditions sugar can be stored for around
12 months without
risk of deterioration. Where a
storage contract is concluded with the seller, it is there-
fore justified for the latter to remain responsible for the
quality of the sugar concerned for a period not normally
exceeding 12 months, irrespective of when ownership
passes.

(1) See page 1 of this Official Journal.

(2) OJ L 371, 30.12.1987, p. 11.
(3) OJ L 227, 22.7.1989, p. 1.

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(13) Article 7(5) of Regulation (EC) No 1260/2001 provides
that the detailed implementing rules to be adopted must
include scales of price increases and reductions to be
applied to the intervention prices to take account of the
quality of the sugar offered. For determining such scales,
sugar must be classified according to its quality. This
classification and the resulting price increases and reduc-
tions can be determined on the basis of the objective
data generally used in commercial transactions.

prevent sugar being disposed of when market conditions
are unfavourable, invitations to tender should be subject
to prior authorisation. It is preferable in certain circum-
stances to make use of procedures other than tendering.

(20)

In view of the changes to the rules governing interven-
tion, new detailed rules should be laid down for the sale
by tender of sugar by intervention agencies.

(14)

(15)

To avoid any discrimination in the treatment of the
parties concerned, and taking into account current
administrative practices in the Member States, uniform
conditions should be laid down for payment and collec-
tion of the goods, whether or not there is a storage
contract, in particular as regards the time limits within
which these operations are to be carried out.

It may be necessary for the sugar offered for interven-
tion to be delivered in bags, depending on its subsequent
destination. The intervention agency should therefore be
able to require certain forms of packing generally used
in the trade, on condition that it bears the cost thereof,
to be fixed at a flat rate.

(21)

(22)

To ensure that all interested parties in the Community
receive equal treatment, invitations to tender issued by
the intervention agencies must conform to uniform
rules. In this connection, it is necessary to ensure that
the sugar is actually put to the intended use.

Certain special rules are needed to take account of the
specific features of the sugar sector. In particular, so that
the greatest possible number of potential tenderers can
participate,
it should be possible to fix a maximum
quantity which each tenderer may offer to buy. Further-
more, in view of the frequent fluctuations in sugar prices
and quotations, tenderers should not be bound by their
tenders if the award is made after the date and time
specified by them.

(16) When an intervention agency requires certain forms of
packing, the flat rate it pays relates to bags in perfect
condition. Where a storage contract is concluded, there-
fore,
the rate for the packing costs should be set
according to the condition of the bags.

(17)

Commission Regulation (EEC) No 1265/69 of 1 July
1969 establishing methods for determining the quality
in by intervention agencies (1), as
of sugar bought
amended by Regulation (EEC) No 1280/71 (2),
is
those methods.
confined to the technical aspects of
Moreover, since those methods cannot provide strictly
accurate results, a margin of error must be allowed for.
In addition, suitable arbitration procedures should be
introduced for settling any disputes arising from the
comparison of conflicting analysis results.

(18)

Intervention is designed to allow products to be with-
drawn temporarily from a market suffering imbalance
with a view to their resale as soon as the market situa-
tion has improved. Accordingly, products offered for
intervention must be suitable for human or animal
consumption, as the case may be.

(19)

Sugar held by intervention agencies must be sold
without discrimination between Community buyers and
on the most economic terms possible. In general, these
objectives can be attained using the tendering system. To

(23)

For the purpose of determining storage costs, in partic-
ular,
it is essential to specify when ownership of the
sugar is transferred.

(24)

(25)

The criteria used to determine the grade of the white
sugar and the yield of the raw sugar sold should be the
same as those applied when sugar is bought
in by
intervention agencies. Equal treatment for all interested
parties can be ensured only by introducing uniform and
precisely defined provisions for adjusting the selling
price, the denaturing premium or the export refund, as
the case may be, and correcting export licences where
the sugar is found to be of a quality other than that
indicated in the invitation to tender.

The detailed implementing rules laid down in this Regu-
lation replace those in Commission Regulations (EEC)
No 258/72 of 3 February 1972 laying down detailed
rules concerning the sale by tender of sugar by interven-
tion agencies (3), as amended by Regulation (EC) No
260/96 (4), and (EEC) No 2103/77 of 23 September
1977 laying down detailed rules for the buying in by
intervention agencies of sugar manufactured from beet
and cane harvested in the Community (5), as
last
amended by Regulation (EC) No 260/96 which must
therefore be repealed.

(1) OJ L 163, 4.7.1969, p. 1.
(2) OJ L 133, 19.6.1971, p. 34.

(3) OJ L 31, 4.2.1972, p. 22.
(4) OJ L 34, 13.2.1996, p. 16.
(5) OJ L 246, 27.9.1977, p. 12.

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(26)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Sugar,

HAS ADOPTED THIS REGULATION:

TITLE I

BUYING IN

CHAPTER I

General provisions

Article 1

The intervention agency shall buy in the sugar only if it is

1.
offered by:

(a) the beneficiary of a basic quota;

(b) a specialist sugar trader who is approved by the Member

State on whose territory he is established.

2.
The offer shall be made in writing to the intervention
agency of the sugar-producing Member State on whose terri-
tory the sugar offered is located at the time of the offer.

(b) a total quantity, in the case of warehouses for the storage
of sugar in bags, not exceeding 50 times the daily removal
capacity for sugar packed in bags as specified in Article
18(2) that the applicant undertakes to place at the disposal
of the intervention agency concerned for the removal of
the sugar;

(c) a total quantity, in the case of silos and warehouses for the
bulk storage of raw sugar, not exceeding 50 times the daily
removal capacity for bulk sugar that the applicant under-
takes to place at the disposal of the intervention agency
concerned for the removal of the sugar.

Approval shall be given at

3.
the party
concerned for any silo or warehouse which, in the opinion of
the intervention agency, satisfies the conditions set out
in
paragraph 1. Approval may, however, be restricted to silos or
warehouses which have already been used for sugar storage.

the request of

The approval shall indicate, in particular, the total quantity for
which it is given, the daily removal capacity, and, where applic-
able, the bagging capacity as referred to in paragraph 2(a).

Approval shall be withdrawn when any of the conditions

4.
set out in paragraph 1 or 2 are no longer satisfied.

Approval shall be given or withdrawn by the intervention

5.
agency.

Article 3

Only sugar under quota which at the time of the offer is

3.
located in an approved store may be taken over.

A ‘specialised sugar trader’ within the meaning of Article

1.
1(1)(b) is a person:

Approval shall be given by the competent authority of the
Member State in question.

CHAPTER II

Approvals

Article 2

1. Without prejudice to paragraph 2 of this Article, the
approval provided for in Article 1(3) may be given only for
silos and warehouses which:

(a) meet the requirements for keeping sugar in good condition;

(b) are situated in a place which provides the transport facili-

ties necessary for removal of the sugar;

(c) are situated within the precincts of a sugar refinery or in a

sugar-producing area.

Approval of silos and warehouses as referred to in para-

2.
graph 1 shall be given only for:

(a) a total quantity,

in the case of silos for bulk storage
equipped with bagging facilities, not exceeding 50 times
the daily capacity for bagging, using bags as specified in
Article 18(2), and removal that the applicant undertakes to
place at the disposal of the intervention agency concerned
for the removal of the sugar;

(a) who engages in wholesale sugar trading as one of their
principal activities and who buys, or may be regarded as
likely to buy, a minimum of 10 000 tonnes of Community
sugar per marketing year; and

(b) who is not engaged in the retail sale of sugar.

2.
Subject to paragraphs 3 to 6, the approval provided for
in Article 1(1)(b) shall be given by the Member State concerned
to all applicants who satisfy, or are considered capable of
satisfying, the conditions laid down in paragraph 1 of this
Article for the marketing year concerned.

3. Without prejudice to paragraph 5, approval shall be
given for a specified marketing year.

It shall be renewed for the following marketing year if the
applicant can continue to be regarded as a specialised trader for
that year.

The Member States may impose additional requirements

4.
for the grant of approval.

Approval may be withdrawn if it is found that the person
concerned no longer satisfies such additional requirements or is
no longer capable of satisfying them.

5.
Approval shall be withdrawn if it is found that the person
concerned no longer satisfies, or is no longer capable of satis-
fying, any of the conditions laid down in paragraph 1.

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Approval may be granted, renewed or withdrawn during the
course of a marketing year, but without retroactive effect.

6.
Approval granted, renewed or withdrawn under this
Article shall be notified in writing to the person concerned
after having been notified to the Commission by the Member
State concerned.

CHAPTER III

Offers

Article 4

Sugar offered for intervention shall be deemed not to be
4.
of sound and fair marketable quality for the purposes of para-
graphs 2 and 3 where it exceeds the maximum levels of
radioactivity permitted under Regulation (Euratom) No 3954/
87. The level of radioactive contamination of the product shall
be monitored only if the situation so requires and during the
period necessary. Where necessary, the duration and scope of
checks shall be determined in accordance with the procedure
referred to in Article 42(2) of Regulation (EC) No 1260/2001.

Article 5

Only sugar which has not previously been bought in to inter-
vention and which is owned by the party making the offer may
be offered for intervention.

Sugar offered to intervention shall meet the following

1.
requirements:

Article 6

(a) it must have been produced within a quota during the

All sugar offered for intervention shall be put up in lots.

marketing year in which the offer is made.

However, sugar produced in the marketing year imme-
diately preceding that of the offer may be offered:

— until the following 31 August,

in Italy,

— until the following 30 September in the other European

regions of the Community;

For the purposes of this Regulation ‘lot’ means 500 tonnes of
sugar of uniform quality and packing, all of which is stored in
the same place. However, if a larger quantity is offered, the
excess over 500 tonnes or a multiple thereof shall also consti-
tute a lot.

(b) it shall be in crystal form.

Article 7

2. White sugar offered to intervention shall, in addition to
meeting the conditions laid down in paragraph 1, be of sound
and fair marketable quality,
free-flowing, with a moisture
content not exceeding 0,06 %.

Raw sugar offered to intervention shall,

3.
in addition to
meeting the conditions laid down in paragraph 1, be of sound
and fair marketable quality with a yield, calculated in accord-
ance with point II of Annex I to Regulation (EC) No 1260/
2001, of not less than 89 %.

In addition:

(a) raw cane sugar shall have a safety factor not exceeding

0,30;

(b) raw beet sugar shall have:

— a pH value not less than 7,9 at the time the offer is

accepted,

— an invert sugar content not exceeding 0,07 %,

— a temperature which does not entail any risk of deteri-

oration,

— a safety factor not exceeding 0,45 when the degree of

polarisation is 97 or above, or

— a moisture content not exceeding 1,4 % when the

degree of polarisation is below 97.

safety factor

The
shall be determined by dividing the
percentage moisture content of the sugar concerned by the
difference between 100 and the degree of polarisation of that
sugar.

1.

Offers made to an intervention agency shall

indicate:

(a) the name and address of the party making the offer;

(b) the warehouse in which the sugar is stored at the time the

offer is made;

(c) the removal capacity and, where applicable, the bagging
capacity guaranteed for the removal of the sugar offered;

(d) the net quantity of sugar being offered;

(e) the nature and quality of

the sugar offered, and the

marketing year in which it was produced;

(f) the type of packing of the sugar.

The intervention agency may require additional informa-

2.
tion.

3.
Offers shall be accompanied by a statement from the
parties making the offer certifying that the sugar concerned has
not previously been bought in to intervention, that they own
the sugar and that it conforms to the requirements laid down
in Article 4(1)(a).

Article 8

Offers shall remain valid for three weeks from the date of

1.
submission.

However, they may be withdrawn during that period with the
consent of the intervention agency.

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The intervention agency shall examine offers.

It shall
2.
accept them not later than the end of the period referred to in
paragraph 1.

‘10-day period’ means one of the following periods of a
6.
calendar month: from the first to the 10th, from the 11th to
the 20th, or from the 21st to the end of the month.

However, the intervention agency shall reject offers if exam-
ination shows that any of the requirements have not been met.

Article 10

3.
Buying-in contracts shall specify the type of packing of
the sugar to be bought in. If necessary, they may also include a
clause to the effect that the intervention agency reserves the
right to require one or more of the types of packing specified
in Article 18(2) at the time of removal.

Buying-in contracts may be terminated only by mutual

4.
consent and before removal of the sugar.

1.
The transfer of ownership of sugar covered by a storage
contract shall take place at the same time as the provisional
payment for the sugar concerned.

2.
Up to the time of removal, the seller shall remain respon-
sible for the quality of the sugar referred to in paragraph 1 and
for the packing in which the sugar has been accepted by the
intervention agency.

CHAPTER IV

Storage contracts

Article 9

1. Without prejudice to Article 17(4), storage contracts to
be concluded prior to buying in between parties making offers
and the intervention agency shall be concluded for an indefi-
nite period.

2.
Storage contracts shall take effect from the date of the
provisional payment referred to in Article 16(1) and shall
expire at the end of the 10-day period during which removal of
the quantity of sugar concerned is completed.

3.

Storage contracts shall,

in particular:

(a) provide for expiry of the contract under the conditions set
out in this Regulation after at least 10 days' notice has been
given;

(b) provide that, where the intervention agency determines that
the party making the offer has not observed the under-
it may require the
taking referred to in Article 2(2),
contract to be extended beyond the time limit set for
removal,

in which case paragraph 4 shall not apply;

Article 11

If it is established that a quantity of the sugar concerned
1.
does not conform to the quality requirements set out in Article
4, the seller shall immediately replace that quantity with an
equal quantity of sugar of the required quality, stored either in
the same place of storage or in another place approved for
intervention purposes.

2. Where the sugar concerned is stored in one of the types
of packing specified in Article 18(2) and it is found that the
packing no longer conforms to those specifications, the inter-
vention agency shall require the seller to replace the bags with
packing to the required standard.

CHAPTER V

Buying-in price

Article 12

White sugar shall be classified into four grades as follows:

(a) Grade 1: sugar which is superior in quality to the standard

quality;

(b) Grade 2: sugar of the standard quality;

(c) Grades 3 and 4: sugar which is inferior in quality to the

(c) specify the amount of the storage costs to be borne by the

standard quality.

intervention agency;

(d) require the seller to load the sugar on to a means of
transport indicated by the intervention agency and to bear
the cost of such loading.

4.
The intervention agency shall bear the storage costs from
the beginning of the 10-day period within which provisional
payment for the sugar is made until the expiry of the storage
contract.

5.
Such storage costs for sugar stored in silos or warehouses
of sugar undertakings may not exceed EUR 0,048 per 100
kilograms and per 10-day period.

However,
the intervention agency may increase that by a
percentage not exceeding 35 % where the sugar is stored in
silos or warehouses rented by the party making the offer
outside sugar undertakings and, in special circumstances, by a
percentage not exceeding 50 %.

Article 13

1.

Grade 1 sugar shall have the following characteristics:

(a) sound and fair marketable quality, dry, in homogeneously

granulated, free-flowing crystals;

(b) maximum moisture content: 0,06 %;

(c) maximum invert sugar content: 0,04 %;

(d) in addition, the characteristics of Grade 1 sugar shall be
such that the number of points shall not exceed a total of
eight, or:
— six for the ash content,
— four for the colour type determined according to the
method of
the Brunswick Institute for Agricultural
Technology and the Sugar Industry, hereinafter referred
to as the ‘Brunswick Method’,

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— three for

the colour of

the solution determined
according to the method of the International Commis-
sion for Uniform Methods of Sugar Analysis, herein-
after referred to as the ‘ICUMSA Method’.

One point shall correspond to:

(a) 0,0018 % ash content determined according to the

ICUMSA Method at 28° Brix;

(b) 0,5 unit of colour type determined according to the Bruns-

wick Method;

(c) 7,5 units of solution colour determined according to the

ICUMSA Method.

2.

Grade 3 sugar shall have the following characteristics:

(a) sound and fair marketable quality, dry, in homogeneously

granulated, free-flowing crystals;

(b) minimum polarisation: 99,7° S;

(c) maximum moisture content: 0,06 %;

(d) maximum invert sugar content: 0,04 %;

(e) colour type: maximum No 6 determined according to the

Brunswick Method.

Grade 4 sugar shall include sugar not included in Grades

3.
1 to 3.

Article 14

The intervention price applicable per 100 kilograms of white
sugar shall be:

(a) reduced by EUR 0,73 for Grade 3 sugar;

(b) reduced by EUR 1,31 for Grade 4 sugar.

Article 15

The intervention price applicable per 100 kilograms of

1.
raw sugar shall be:

(a) increased where the yield of the sugar is more than 92 %;

(b) reduced where the yield of the sugar is less than 92 %.

The amount of the increase or reduction, expressed in
2.
euro per 100 kilograms, shall be equal
to the difference
between the intervention price for raw sugar and the same
price multiplied by a coefficient. The coefficient shall be
obtained by dividing the yield of the raw sugar concerned by
92 %.

The yield of raw sugar shall be calculated in accordance
3.
with point II of Annex I to Regulation (EC) No 1260/2001.

Article 16

1.
Subject to paragraphs 2 and 3, within eight weeks of the
date on which an offer is made, the intervention agency shall
make provisional payment of an amount established on the
basis of the information contained in the offer and of the
buying-in price.

The amount of the provisional payment referred to in the first
subparagraph for raw sugar shall be calculated on the basis of a
flat-rate yield of 92 %.

2.
The provisional payment shall be made on condition that
the seller lodges a security equal to 5 % of the amount involved
as a guarantee that the information in the offer is correct.

3.
The intervention agency shall make final payment of the
buying-in price as soon as the weight has been verified and the
final results of the sample analyses referred to in Article 19 are
known. Any packing costs shall be paid when the condition of
the bags is ascertained on removal.

Any discrepancies between the weight as verified and the final
results of the sample analyses, on the one hand, and the
corresponding information in the offer, on the other, shall be
taken into account when final payment of the buying-in price
is made, in accordance with Articles 14 and 15, in particular.

Except in cases of force majeure, the security referred to in

4.
paragraph 2 shall be released only if:

(a) the weight as verified and the final results of the sample
analyses do not require a reduction in the price of the sugar
bought in;

(b) the seller refunds any amount of the provisional payment
referred to in paragraph 1 in excess of that properly due,
within three weeks of the date of receipt of the request for
repayment.

The security shall be released immediately. It shall be forfeit if
this Regulation has not been complied with.

CHAPTER VI

Removal

Article 17

1.
Unless otherwise agreed between the intervention agency
and the seller, the sugar shall remain in the silo or warehouse
in which it was stored at the time of the offer until
it is
removed.

Removal shall take place in the presence of the seller or

2.
the seller's representative.

3. When removed from the silo or warehouse, the sugar
bought
in shall be loaded by the seller onto a means of
transport selected by the intervention agency.

4. Without prejudice to Article 34, sugar bought in shall be
removed:

(a) in the case of offers accepted between 1 October and the
later than the following 30

following 31 March, not
September;

(b) in the case of offers accepted between 1 April and the
following 30 September, not later than the end of the
seventh month following that
in which the offer was
accepted.

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However, the intervention agency may agree with the
5.
seller that removal as referred to in paragraph 4 will take place
after the time limits referred to in that paragraph. In such cases,
the intervention agency:

(a) shall conclude a storage contract with the seller covering

the agreed period;

(b) shall, before the end of the said period and at its own
expense, instruct the experts referred to in Article 19 to
make the sample analyses referred to therein and ascertain
the weight of the sugar;

(c) shall make final payment of the buying-in price in accord-

ance with Article 16;

(d) may, at the seller's request, agree that the obligation to load
the sugar bought in shall be discharged by payment of the
costs relating thereto. These costs shall be determined on
the basis of the rates in force on the date on which the
corresponding maximum period referred to in paragraph 4
expires.

Article 18

The intervention agency may accept delivery of the sugar
4.
in a type of packing other than those specified in paragraph 2.
In that case, the intervention agency shall not bear the costs
relating thereto and sellers shall be required to deliver the sugar
in bulk at their own expense at the time of removal unless an
agreement concerning the packing has been reached between
the seller and the party who is subsequently to buy the sugar
from the intervention agency.

Article 19

At the time of removal, four samples shall be taken for
1.
analysis either by experts approved by the competent authori-
ties of the Member State concerned or by experts agreed upon
by the intervention agency and the seller. There shall be one
sample for each of the contracting parties. The other two
samples shall be kept by the expert or by a laboratory
approved by the competent authorities.

Each sample shall be analysed twice and the mean of the results
shall be taken as the result of the analysis of the sample
concerned.

Subject to paragraphs 2 to 4 of this Article, the seller

1.
shall deliver the sugar in bulk.

2.
In the event of a dispute between the contracting parties
over the grade of the sugar bought in, the following rules shall
apply:

Intervention agencies may require the sugar to be deliv-

2.
ered in one or more of the following types of packing:

(a) where the difference between the results of the analyses

arranged by the seller and the buyer is:

(a) new jute bags with a net capacity of 50 kilograms lined
with polythene of a minimum thickness of 0,04 mm and
with a minimum combined weight of jute and polythene of
450 grams;

(b) new jute bags with a net capacity of 50 kilograms lined
with polythene of a minimum thickness of 0,05 mm and
with a minimum combined weight of jute and polythene of
420 grams.

Intervention agencies may accept sugar sold into intervention
in new jute bags with a net capacity of 50 kilograms lined with
polythene of a combined weight of jute and polythene of 400
grams. For acceptance, the intervention agency may specify a
minimum thickness of polythene lining as well as a particular
quality of jute bag.

3. Where an intervention agency requires or accepts one or
more of the types of packing provided for in paragraph 2, it
shall bear the cost of such packing. In addition, it shall inform
the seller, in good time before removal, of the type or types of
packing provided for in paragraph 2 which it requires or will
accept.

The flat-rate amount to cover the cost of the packing referred
to under (a) and (b) of the first subparagraph of paragraph 2 is
fixed at EUR 1,70 per 100 kilograms of sugar.

The flat-rate amount to cover the cost of the packing referred
to under the second subparagraph of paragraph 2 is fixed at
EUR 1,57 per 100 kilograms of sugar.

— for Grade 1 sugar, no more than one point for each of
the characteristics referred to in Article 13(1)(d), or

— for Grade 2 sugar, not greater than two points for each
the characteristics defining that grade which are

of
determined by points,

the arithmetic mean of the two results shall be conclusive
for establishing the grade of the sugar concerned.

However, at the request of either of the contracting parties,
an arbitral analysis shall be carried out by the laboratory
referred to in paragraph 1. In that case, the arithmetic mean
of the result of the arbitral analysis and the results of either
the seller's or the buyer's analysis, whichever is closer to the
result of the arbitral analysis, shall be adopted.

This mean shall be conclusive for establishing the grade of
the sugar concerned. If the result of the arbitral analysis lies
midway between the results of the analyses arranged by the
seller and the buyer, the arbitral analysis alone shall be
conclusive for establishing the grade of the sugar concerned;

(b) where the difference observed is greater than that indicated
in the first or second indent, as the case may be, of the first
subparagraph of (a) above, an arbitral analysis shall be
carried out by a laboratory approved by the competent
authorities. In that case the second subparagraph of (a)
above shall apply;

(c) for disputes concerning the upper limit for the colour type
of Grade 3 sugar, polarisation, moisture content or invert
sugar content, the same procedure shall be followed as in
(a) and (b).

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However, the differences referred to in (a) shall be replaced
by:
— 1,0 unit of colour type for Grade 3 sugar,
— 0,2° S for polarisation,
— 0,02 % for moisture content,
— 0,01 % for invert sugar content.

3.

The costs of an arbitral analysis:

(a) under the second subparagraph of paragraph 2(a), shall be

borne by the party requesting the analysis;

(b) under paragraph 2(b), shall be shared equally by the inter-

vention agency and the seller.

4.
If a dispute arises over the yield of the bought-in raw
sugar following the application of paragraph 1, an arbitral
analysis shall be carried out by the laboratory referred to in
paragraph 1. In that case, the arithmetic mean of the result of
the arbitral analysis and the results of either the seller's or the
buyer's analysis, whichever is closer to the result of the arbitral
analysis, shall be adopted. This mean shall be conclusive for
establishing the yield of the raw sugar concerned. If the result
of the arbitral analysis lies midway between the results of the
analyses arranged by the seller and the buyer, the arbitral
analysis alone shall be conclusive for establishing the yield of
the raw sugar concerned.

The costs of an arbitral analysis shall be borne by the
contracting party which contested the result of the analysis
made under paragraph 1.

Article 20

1. Without prejudice to Article 17(5), at the time of removal
the experts referred to in Article 19 shall check the weight of
the sugar sold.

The seller shall take all steps necessary to allow the experts to
check the weight and to take samples.

The costs of checking the weight shall be borne by the

2.
seller.

The cost of the experts who check the weight and do the

3.
sampling shall be borne by the intervention agency.

TITLE II

SALE

CHAPTER I

General provisions

Article 21

2001 shall be by tendering procedure or by some other sales
procedure.

The sale of sugar for the purposes referred to in the second
subparagraph of Article 9(1) of Regulation (EC) No 1260/2001
shall be by tendering procedure.

3.
The purpose of the tendering procedure shall be to deter-
mine the selling price, the amount of the denaturing premium
or the amount of the export refund, as the case may be. The
terms of the tendering procedure, including the intended use of
the sugar to be disposed of, shall be determined when the
decision is taken to issue an invitation to tender.

The terms of the tendering procedure must guarantee
4.
equal access and treatment for all interested parties irrespective
of where in the Community they are established.

CHAPTER II

Sale by tender

Article 22

1.
The invitation to tender shall be issued by the interven-
tion agency concerned for the quantities of sugar held by it.

2.
The intervention agency shall draw up an invitation to
tender, which shall be published in the Official Journal of the
European Communities. The intervention agency may also
publish the invitation to tender or have it published elsewhere.

3.
Publication in the Official Journal of the European Communi-
ties shall take place at least 10 days before the period for
submission of tenders expires.

4.

The invitation shall

indicate in particular:

(a) the name and address of the intervention agency issuing

the invitation to tender;

(b) the terms of the tendering procedure;

(c) the time limit for submission of tenders;

(d) the lots of sugar put up for tender, and for each lot:

in particular:
— the reference number,
— the quantity,
— the quality of the sugar concerned,
— the type of packaging,
— the location of the warehouse in which the sugar is

stored,

— the delivery stage,
— any facilities at the warehouse for loading onto a means

of transport by inland waterway, sea or rail.

Intervention agencies may sell sugar only after a decision
1.
to this effect has been taken in accordance with the procedure
referred to in Article 42(2) of Regulation (EC) No 1260/2001.

2.
The sale of sugar under the conditions referred to in the
first subparagraph of Article 9(1) of Regulation (EC) No 1260/

The invitation to tender may contain other information.

5.
The intervention agency shall make such arrangements as
it considers necessary to enable interested parties who so
request to examine the sugar offered for sale.

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Article 23

Award to successful tenderers shall be equivalent to the
1.
conclusion of a sales contract
the quantity of sugar
awarded. Award shall be made, as the case may be, on the basis
of the following factors contained in the tender:

for

(a) the price to be paid by the successful tenderer;

(b) the amount of the denaturing premium;

(c) the amount of the export refund.

2.

The price to be paid by the successful tenderer shall be:

(a) the price indicated in the tender, in the case of paragraph

2(a);

During the period of validity of the standing invitation to
tender, partial

invitations to tender shall be issued.

2.
The standing invitation to tender shall be published only
for the purpose of issuing it. The invitation as published may
be amended or replaced during the period of validity of the
standing invitation to tender. It shall be amended or replaced if
the terms of the tendering procedure are changed during its
period of validity.

Article 27

1.
Tenderers shall either deliver written tenders to the inter-
vention agency against a receipt or address tenders to the
intervention agency by registered letter, telex or telegram.

(b) the price indicated in the terms of the invitation to tender,

in the case of paragraph 2(b) and (c).

2.

Tenders shall

indicate:

Article 24

(a) the procedure to which the tender relates;

(b) the name and address of the tenderer;

1.

For the purposes of this chapter ‘intended use’ means:

(c) the number of the lot;

(a) animal feed;

(b) export;

(c) other purposes, to be determined as required.

2.
For the purposes of this chapter ‘lot’ means a quantity of
sugar of uniform quality, packaged in the same way and stored
in the same place.

(d) the quantity tendered for;

(e) per 100 kilograms, as appropriate, expressed in euro to

three decimal places:
— the price proposed, excluding internal charges,
— the amount of the premium proposed, or
— the amount of the refund proposed.

The intervention agency may require additional

information.

Article 25

For

1.
the purposes of
following terms shall be determined:

the tendering procedure,

(a) the total quantity or quantities put up for tender;

(b) the intended use;

(c) the time limit for submission of tenders;

(d) the price to be paid by the successful tenderer if the sugar

is intended for animal feed or for export.

2.

Additional terms may be determined,

in particular:

(a) the minimum price for sugar put up for sale for a purpose

other than animal feed or export;

(b) the maximum amount of the denaturing premium or the
export refund, hereinafter called ‘premium’ and ‘refund’,
respectively;

(c) the minimum quantity per tenderer or per lot;

A tender concerning several

3.
contain as many tenders as the lots it concerns.

lots shall be deemed to

the

4.

Tenders shall be valid only if:

(a) proof is supplied before expiry of the time limit for submis-
sion of tenders that the tendering security has been lodged;

(b) they include a declaration by the tenderer undertaking, for
any quantity of sugar awarded for either a premium or a
refund:
— to apply for a certificate and lodge the security required
in that connection, where the tendering procedure
relates to sugar intended for animal feed,

— to apply for a licence and lodge the security required in
that connection, where the tendering procedure relates
to sugar intended for export.

A tender may stipulate that

5.
submitted only if the award:

it

is to be treated as

(a) relates to all or a specified part of the quantity indicated in

(d) the maximum quantity per tenderer or per lot;

the tender;

(e) the specific period of validity of the denaturing premium
certificate or export licence, hereinafter called ‘certificate’
and ‘licence’ respectively.

Article 26

(b) is made not later than a time and date specified by the

tenderer.

Tenders not submitted in accordance with this Article, or
6.
containing terms other than those indicated in the invitation to
tender, shall not be taken into consideration.

If the situation on the sugar market in the Community so

1.
requires, a standing invitation to tender may be issued.

Once a tender has been submitted it may not be with-

7.
drawn.

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Article 28

(a) either in proportion to the quantities indicated in the

tenders in question;

The tendering security per 100 kilograms of white or raw

1.
sugar shall be:

(a) EUR 0,73 for the intended uses referred to in Article

24(1)(a) and (c);

(b) EUR 1,46 for the intended use referred to in Article

24(1)(b).

2.
Tenderers may lodge the security either in cash or in the
form of a guarantee given by an institution meeting criteria laid
down by the Member State in which the tender was submitted.

The Member States shall notify the Commission of the types of
institution authorised to give such a guarantee and the criteria
referred to in the first subparagraph. The Commission shall in
turn inform the other Member States.

Article 29

Tenders shall be examined in private session by the inter-
1.
vention agency. Persons present at the examination shall be
sworn to secrecy.

The Commission shall be informed without delay of the

2.
tenders submitted.

Article 30

Where the terms of the tendering procedure do not specify
either a minimum price or a maximum amount
for the
premium or the refund, these shall be fixed in accordance with
Article 42(2) of Regulation (EC) No 1260/2001 after the
tenders have been examined, in the light of market conditions
and potential outlets. However, a decision may be taken to
make no award.

Article 31

Except where a decision is taken to make no award under
1.
a tendering procedure or a partial tendering procedure, and
without prejudice to paragraphs 2 and 3 of this Article, the
award shall be made to any tenderer whose tender is not less
than the minimum price or more than the maximum amount
of the premium or the refund.

2.
For any one lot, the award shall be made to the tenderer
who proposes either the highest price or the lowest amount of
the premium or the refund.

If the lot is not completely accounted for by that tender, the
remainder shall be awarded to other tenderers depending on
the amount of their tender, starting with either the next highest
price or the next lowest premium or refund.

3.
If several tenderers propose either the same price or the
same amount for the premium or the refund for one lot or part
of a lot,
the intervention agency shall award the quantity
concerned:

(b) or by dividing that quantity between the tenderers in agree-

ment with them;

(c) or by drawing lots.

Article 32

1.

If the sugar is intended for animal feed, awards shall:

(a) confer the right to the issue of a certificate for the quantity
for which the premium is awarded, showing in particular
the premium specified in the tender;

(b) entail the obligation to apply for such a certificate for that
quantity to the intervention agency to which the tender
was submitted.

If the sugar is intended for export, awards shall:

(a) confer the right to the issue of a licence for the quantity for
which the refund is awarded, showing in particular the
refund and, in the case of white sugar, the grade specified
in the invitation to tender;

(b) entail the obligation to apply for such a licence for that
quantity and, in the case of white sugar, that grade, to the
intervention agency to which the tender was submitted.

2.
Rights shall be exercised and obligations fulfilled within
18 days following expiry of the time limit for submission of
tenders.

Rights and obligations arising from awards shall not be

3.
transferable.

Article 33

The intervention agency shall

immediately notify all
1.
tenderers of the outcome of their participation in the tendering
procedure.
It shall also send statements of award to the
successful tenderers.

2.

Statements of award shall

indicate at least:

(a) the procedure to which the tender relates;

(b) the number of the lot and the quantity awarded;

(c) the price, the amount of the premium or the amount of the
refund, as the case may be, accepted for the quantity
referred to under (b).

Article 34

1.
Except in cases of force majeure, the sugar purchased shall
be removed from storage not later than four weeks following
the date on which the statement referred to in Article 33 is
received.
the
successful tenderer may agree with the intervention agency to
conclude a storage contract within that time with the ware-
houser of the sugar concerned.

Instead of removing the sugar from storage,

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regarding
However, where there are technical difficulties
removal from storage, the intervention agency may if necessary
allow a longer period for removing particular lots from storage.

2.
In cases of force majeure, the intervention agency shall
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

Article 35

1.
The successful tenderer may not remove the purchased
sugar from storage or conclude a storage contract under Article
34(1) until a removal order is issued for the quantity awarded.

However, removal orders may be issued for parts of
quantity.

that

Removal orders shall be issued by the intervention agency
concerned at the request of the interested party.

2.
The intervention agency shall not issue a removal order
unless it is proved that the successful tenderer has either lodged
a security to guarantee payment of the price for the sugar
awarded within the time laid down, or provided a negotiable
instrument.

The security or negotiable instrument shall correspond to the
price to be paid by the successful tenderer for the quantity of
sugar for which a removal order has been requested.

Article 38

1.
Article 19 shall apply for the purposes of determining the
grade or yield of the sugar concerned when it is removed from
storage.

2.
However, the contracting parties may agree, after the
award has been made, that the grade or yield determined when
the sugar was bought in by the intervention agency shall apply
to the sugar sold under the tendering procedure.

Article 39

1. Where application of Article 19 establishes that white
sugar is of a grade lower than that indicated in the invitation to
tender, the price for that sugar intended for the uses referred to
in Article 24(1)(b) and (c) shall be adjusted by applying Article
14.

If it is found that white sugar intended for export is of a
2.
grade other than that indicated in the invitation to tender, the
grade shown in the licence shall be corrected.

3. Where application of Article 19 establishes that the yield
of raw sugar is other than that indicated in the invitation to
tender:

(a) the price for that sugar shall be adjusted by applying Article

15;

(b) the amount of the premium or refund shall be adjusted by
multiplying it by a coefficient equal to the yield established
divided by the yield indicated in the invitation to tender.

Article 36

Article 40

The price for the sugar awarded must be paid to the
later than the 30th day

1.
intervention agency's account not
following the issue of a removal order.

2.
Except in cases of force majeure, the security referred to in
Article 35(2) shall be released only for the quantity for which
the successful tenderer has paid the purchase price to the
account of
the intervention agency within the time limit
referred to in paragraph 1. The security shall be released imme-
diately.

In cases of force majeure, the intervention agency shall
3.
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

Article 37

1.
Ownership of sugar awarded under a tendering procedure
shall be transferred when the sugar is removed from storage.

However,

2.
the intervention agency and the successful
tenderer may agree to ownership being transferred at another
stage. Where the intervention agency and the successful
tenderer have reached an agreement under Article 34(1), they
may determine at what stage the transfer of ownership is to
take place.

Agreement on the transfer of ownership shall be valid only if it
is concluded in writing.

Except in cases of force majeure, the tendering security

1.
shall be released only for the quantity for which:

(a) the successful tenderer:

— after fulfilling the requirements, has applied for either a

certificate or a licence,

— has lodged the security or provided the negotiable

instrument referred to in Article 35(2),

— has removed the sugar from storage within the time

limit laid down, or

(b) no award is made.

2.

The security shall be released immediately.

3.
In cases of force majeure, the intervention agency shall
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

TITLE III

FINAL PROVISIONS

Article 41

Regulations (EEC) No 258/72 and (EEC) No 2103/77 are
hereby repealed.

Article 42

This Regulation shall enter into force on 1 July 2001.

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

Done at Brussels, 27 June 2001.

For the Commission

Franz FISCHLER

Member of the Commission