Commission Regulation (EC) No 1442/2003 of 13 August 2003 opening a standing invitation to tender for the resale on the Community market of long-grain B rice from the 1999 harvest held by the Spanish intervention agency
Date: 2003-08-13
Institutions: European Commission
Subjects: Spain, agro-industry, animal nutrition, award of contract, intervention agency, rice, sale, single market

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COMMISSION REGULATION (EC) No 1442/2003

of 13 August 2003

opening a standing invitation to tender for the resale on the Community market of long-grain B
rice from the 1999 harvest held by the Spanish intervention agency

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 3072/95 of 22
December 1995 on the common organisation of the market in
rice (1), as last amended by Commission Regulation (EC) No
411/2002 (2), and in particular Article 8(b) thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Commission Regulation (EEC) No 75/91 (3) provides,
among other things, that paddy rice held by intervention
agencies is to be sold by tendering procedure at prices
preventing market disturbance.

Spain still has intervention stocks of long-grain paddy
rice B from the 1999 harvest whose quality is in danger
of deteriorating as a result of prolonged storage.

In the present production situation where concessions
for rice imports are being granted under international
agreements and restrictions are being applied to subsi-
dised exports, disposing of
rice on traditional
markets inside the Community would inevitably result in
an equivalent quantity being placed in intervention,
which must be avoided.

this

This rice can be disposed of by processing it into broken
rice or into a form suitable for use in animal feed, on
certain conditions.

In order to ensure that the rice really is processed, the
specially monitored and the
procedure
to be
successful
released on conditions to be laid down.

should be
tenderer should provide a security,

The undertakings given by tenderers must be regarded as
primary requirements within the meaning of Commis-
sion Regulation (EEC) No 2220/85 of 22 July 1985
laying down common detailed rules for the application
of the system of securities for agricultural products (4), as
last amended by Regulation (EC) No 1932/1999 (5).

Commission Regulation (EEC) No 3002/92 (6), as last
amended by Regulation (EC) No 770/96 (7), lays down
common detailed rules for verifying the use of products

(1) OJ L 329, 30.12.1995, p. 18.
(2) OJ L 62, 5.3.2002, p. 27.
(3) OJ L 9, 12.1.1991, p. 15.
(4) OJ L 205, 3.8.1985, p. 5.
(5) OJ L 240, 10.9.1999, p. 11.
(6) OJ L 301, 17.10.1992, p. 17.
(7) OJ L 104, 27.4.1996, p. 13.

from intervention. Procedures should also be laid down
to ensure the traceability of the products used for animal
feed.

(8)

So that the quantities awarded can be managed accu-
rately, an allocation coefficient should be fixed for
tenders offering the minimum selling price, while
allowing tenderers
to specify a minimum quantity
awarded below which they do not wish their tender to
stand.

(9) When the Spanish intervention agency notifies

the

Commission, the tenderers should remain anonymous.

(10) While respecting the tenderers' anonymity, they should
be identified by numbers so that it is evident which have
submitted several
tenders and what prices they have
offered.

(11)

For control purposes, tenders must be traceable by their
reference numbers, while safeguarding anonymity.

(12) With a view to modernising management, the informa-
tion required by the Commission should be sent by elec-
tronic mail.

(13)

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

HAS ADOPTED THIS REGULATION:

Article 1

The Spanish intervention agency shall launch a standing invita-
tion to tender for the sale on the internal market of
the
Community of quantities of long-grain B rice from the 1999
harvest held by it and previously notified to the Commission
under Regulation (EC) No 75/91, in particular Articles 2 and 5
thereof, as set out in Annex I hereto, with a view to its proces-
sing into broken rice within the meaning of Annex A to Regu-
lation (EC) No 3072/95 or into a form suitable for use in
animal feed (CN code 2309).

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Article 2

The notice, and any changes to it, shall be forwarded to the
Commission before publication.

The sale provided for in Article 1 shall take place in

1.
accordance with Regulation (EEC) No 75/91.

2.

The notice of invitation to tender shall contain:

(a) the additional clauses and conditions of sale compatible

However, as an exception to Article 5 of that Regulation:

with this Regulation;

(a) tenders shall be drawn up on the basis of the actual quality

of the lot to which they apply;

(b) the places of storage and the name and address of the

storer;

(b) the minimum sale price shall be set at a level which does

not disturb the cereals or rice market.

(c) the main physical and technological characteristics of the
various lots established upon buying in by the intervention
agency or during checks carried out subsequently;

2.

Tenderers shall give the following undertakings,

(d) the number of each lot;

(a) regarding the processing into broken rice:

— that within two months of the date of the award of the
contract they will carry out the treatment provided for
in Annex II, under the supervision of the competent
authorities and at a place determined in agreement with
them,

— that they, including the purchaser in the event of resale,
will use the product for which the contract is awarded
exclusively in the form of broken rice;

(b) regarding the processing into a form suitable for use in

animal feed:

(i) where the tenderers are feed manufacturers:

— that within two months of the date of the award of
the contract
the treatments
they will carry out
described in Annex III or IV, under the supervision
of the competent authorities and at a place deter-
mined in agreement with them, with a view to veri-
fying the use made of the rice and ensuring the
traceability of the products,

— that

they will

in feed
within three months of the date of the award of the
contract, except in cases of force majeure;

incorporate this product

(ii) where the tenderers are rice mills:

— that within two months of the date of the award of
the contract
the treatments
they will carry out
described in Annex IV, under the supervision of the
competent authorities and at a place determined in
agreement with them, with a view to verifying the
use made of the rice and ensuring the traceability of
the products,

— that

they will

in feed
within four months of the date of the award of the
contract, except in cases of force majeure;

incorporate this product

(c) that they will bear the costs of the processing and treatment

of the products;

(d) that they will keep stock records demonstrating that they

have respected their undertakings.

Article 3

(e) details of the competent authorities responsible for moni-

toring the operation.

The Spanish intervention agency shall take all additional
3.
steps necessary to enable the parties concerned to assess the
quality of the rice put up for sale before submitting their
tenders.

Article 4

Tenders shall indicate whether they relate to processing

1.
into broken rice or into a form suitable for animal feed.

Tenders shall be valid only if they are accompanied by:

(a) evidence that the tenderer has lodged a security of EUR 15

per tonne;

(b) evidence that the tenderer is an animal feed manufacturer

or a rice mill;

(c) a written undertaking by the tenderer to lodge a security
for an amount equivalent to the difference between the
intervention price for paddy rice applicable on the tender
date plus EUR 15 and the price tendered per tonne of rice
not later than two working days after the date of receipt of
the notice of award of contract.

Once submitted, a tender may not be altered or with-

2.
drawn.

3.
In case the Commission is required to fix an award coeffi-
cient for the quantities offered for sale as provided for in
Article 7(2), tenderers should indicate any minimum awarded
quantity below which they do not wish their tender to stand.

Article 5

The closing date for the submission of tenders for the first
1.
partial tendering procedure shall be 26 August 2003 at 12.00
(Brussels time).

2.
The closing dates for the submission of tenders for subse-
quent partial tendering procedures shall be each Tuesday at
12.00 (Brussels time).

1.
At least eight days before the closing date of the first
period for the submission of tenders, the Spanish intervention
agency shall publish a notice of invitation to tender.

3.
The closing date for the submission of tenders for the last
partial tendering procedure shall be 25 November 2003 at
12.00 (Brussels time).

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Tenders must be lodged with the Spanish intervention agency:

Fondo Español de Garantía Agraria (FEGA)
Beneficencia 8
E-28004 Madrid
telex: 23427 FEGA E
fax: (34 91) 521 98 32, (34 91) 522 43 87

Article 6

1.
The Spanish intervention agency shall notify the Commis-
sion of the information as specified in Annex V, by type of
processing, no later than 9.00 (Brussels time) on the Thursday
following the expiry of the deadline for the submission of
tenders.

For each type of processing and for each partial tendering
shall be assigned an individual

2.
procedure,
number, starting at 1, by the Spanish intervention agency.

the tenderers

To ensure anonymity, the numbers shall be allocated randomly
and separately for each type of processing and each partial
tendering procedure.

The reference numbers of each tender shall be given by the
Spanish intervention agency in such a way as to ensure that
the tenderers remain anonymous. For
the entire standing
tendering procedure, each tender shall be identified by its own
reference number.

3.
The notification referred to in paragraph 1 shall be made
by electronic mail to the address given in Annex V using the
form provided to the Spanish intervention agency by the
Commission for that purpose.

The notification must be made even if no tenders are
submitted, in which case it must state that no tenders have
been received within the deadline laid down.

4.
The Spanish intervention agency shall also notify the
Commission of the information as specified in Annex V for
rejected tenders, stating why they were rejected.

Article 7

For each type of processing, the Commission shall set the
minimum sale price or decide not to award any quantities. In
the event that tenders are submitted for the same lot and for a
quantity larger than that available, the Commission may fix this
price separately for each lot.

Where tenders are offering the minimum sale price,
the
Commission may fix an award coefficient for the quantities
offered at the same time as it fixes the minimum sale price.

This Decision shall be taken in accordance with the procedure
laid down in Article 22 of Regulation (EC) No 3072/95.

Article 8

Within three working days of the notification referred to in the
first paragraph,
it shall send notices of award of contract to
successful tenderers by registered letter or written telecommu-
nication.

Article 9

Successful tenderers shall pay for the rice before it is removed,
and at the latest within one month of the date of dispatch of
the notice referred to in the second paragraph of Article 8. The
risks and costs of storing rice which is not removed within the
payment period shall be borne by the successful tenderers.

Following the expiry of the payment period, rice for which a
contract is awarded and which is not removed shall be regarded
for all purposes as having been removed from storage.

Where a successful tenderer fails to pay for the rice within the
period referred to in the first paragraph, the contract shall be
terminated by the intervention agency, where appropriate in
respect of the quantity not paid for.

Article 10

1.

The security referred to in Article 4(1)(a) shall be released

(a) in full for the quantities for which:

1. no award is made;

2. the offer does not stand, in accordance with Article 4(3);

3. the sale price is paid within the period set and the
security referred to in Article 4(1)(c) has been lodged;

(b) proportionately to the quantity not awarded where an
award coefficient is set for the quantities offered in accor-
dance with Article 7(2).

2.
The security referred to in Article 4(1)(c) shall be released
in proportion to the quantities used only if the intervention
agency has carried out all the checks necessary to ensure that
the product is processed in accordance with this Regulation.

However, the security shall be released in full:

(a) on presentation of proof of processing as provided for in
Annex II and proof of the undertaking provided for in the
second indent of Article 2(2)(a);

(b) on presentation of proof that the treatment referred to in
Annex III has been carried out, provided that not less than
95 % of the fine broken grains and/or fragments obtained is
used in compound feed;

(c) on presentation of proof that the treatment referred to in
Annex IV has been carried out, provided that not less than
95 % of the milled rice obtained is used in compound feed.

The intervention agency shall immediately notify all tenderers
of the outcome of their participation in the tendering proce-
dure.

3.
Proof that the rice has been incorporated in animal feed
as referred to in this Regulation shall be provided in accordance
with Regulation (EEC) No 3002/92.

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Article 11

— For processing provided for in Annex … to Regulation (EC)

The obligation set out in Article 2(2) shall be regarded as a
primary requirement within the meaning of Article 20 of Regu-
lation (EEC) No 2220/85.

Article 12

In addition to the particulars provided for in Regulation (EEC)
No 3002/92, box 104 of the control copy T5 shall refer, where
appropriate, to the undertaking provided for in the second
indent of Article 2(2)(a) and bear one or more of the following
entries supplemented by the number of Annex II, III or IV,
specifying the treatment required:

— Destinados a la transformación prevista en el anexo … del

Reglamento (CE) no 1442/2003

— Til forarbejdning som fastsat i bilag … til forordning (EF)

nr. 1442/2003

— Zur Verarbeitung gemäß Anhang … der Verordnung (EG)

Nr. 1442/2003 bestimmt

— Προορίζονται για µεταποίηση που προβλέπεται στο παράρτηµα

… του κανονισµού (ΕΚ) αριθ. 1442/2003

No 1442/2003

— Destinés à la transformation prévue à l'annexe … du règle-

ment (CE) no 1442/2003

— Destinati alla trasformazione prevista all'allegato … del

regolamento (CE) n. 1442/2003

— Bestemd om te worden verwerkt overeenkomstig bijlage …

van Verordening (EG) nr. 1442/2003

— Para a transformação prevista no anexo … do Regulamento

(CE) n.o 1442/2003

— Tarkoitettu asetuksen (EY) N:o 1442/2003 liitteessä …

säädettyyn jalostukseen

— För bearbetning enligt bilaga … till

förordning (EG) nr

1442/2003.

Article 13

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

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

Done at Brussels, 13 August 2003.

For the Commission

Franz FISCHLER

Member of the Commission

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Place of storage
(address)

1

Silo FEGA — 06920 Azuaga (Badajoz)

Silo FEGA — 41749 El Cuervo (Sevilla)

(1) The national identification code shall be preceded by the ISO code for Spain.

Total

ANNEX I

Place of storage
(identification code) (1)

Quantity available

(tonnes)

2

ES06010

ES11011

3

2 586,56

7 413,44

10 000,00

ANNEX II

Treatment indicated in the first indent of Article 2(2)(a)

When the rice is taken over, it must undergo the following treatment:

1. The paddy rice must be milled to give the overall minimum yield and whole grain yield previously determined by the
laboratory on a sample removed when the rice for which the contract is awarded was taken over, with a tolerance of
plus or minus 1 % applicable to the overall minimum yield and whole grain yield.

The wholly milled rice obtained must have the same characteristics and be of the same variety as the rice for which
the contract is awarded.

2. All the wholly milled rice obtained must be broken in such a way as to produce at least 95 % broken rice within the

meaning of Annex A to Regulation (EC) No 3072/95.

ANNEX III

Treatment indicated in the first indent of Article 2(2)(b)(i)

When the rice is taken over, it must undergo the following treatment:

1. The paddy rice must be husked and broken in such a way as to produce not less than 77 %, by weight of paddy rice,
of fine broken grains and/or fragments of husked rice as defined in point C of the Annex to Regulation (EC) No
3073/95.

2. The product obtained after processing (not including the husk) must be marked using the colourant E131 patent blue

V or E142 acid brilliant green BS (lissamine green) to enable it to be identified.

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ANNEX IV

Treatment indicated in the first indent of Article 2(2)(b)(i) and in the first indent of Article 2(2)(b)(ii)

1. The paddy rice must be milled to give the overall minimum yield and whole grain yield previously determined by the
laboratory on a sample removed when the rice for which the contract is awarded was taken over, with a tolerance of
plus or minus 1 % applicable to the overall minimum yield and whole grain yield.

The wholly milled rice obtained must have the same characteristics and be of the same variety as the rice for which
the contract is awarded.

2. The product obtained after processing must be marked using the colourant E131 patent blue V or E142 acid brilliant

green BS (lissamine green) to enable it to be identified.

ANNEX V