Commission Regulation (EC) No 2153/2005 of  23 December 2005  on the aid scheme for the private storage of olive oil
Date: 2005-12-23
Institutions: European Commission
Subjects: award of contract, olive oil, private stock, storage premium

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COMMISSION REGULATION (EC) No 2153/2005

of 23 December 2005

on the aid scheme for the private storage of olive oil

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(6)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 865/2004 of 29
April 2004 on the common organisation of the market in olive
oil and table olives and amending Regulation (EEC) No
827/68 (1), and in particular Article 6(3) thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

Article 6 of Regulation (EC) No 865/2004 provides that
an aid scheme for the private storage of olive oil may be
implemented in the event of serious disturbance on the
market in certain regions of the Community.

In order to implement the aid scheme quickly as and
when required, detailed rules for the application of that
Regulation must be laid down. The aid scheme for
private
storage must be based on contracts with
operators offering sufficient securities and authorised by
the Member States on the basis of certain set conditions.

For the scheme to 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.

Information should be available on changes in prices and
in the production of olive oil. This information is needed
to monitor the olive oil market on a permanent basis, in
order to assess whether the conditions indicating a severe
market disturbance pertain or not.

To reflect the market situation as closely as possible, the
aid amount must be established for those market sectors
that need it. The oil categories are those listed in Part I of
Annex I to Regulation (EC) No 865/2004.

(7)

(8)

(9)

(10)

(11)

The information that must appear in tenders and the
conditions
in which they are to be presented and
examined must be specified, with a view to having
complete and thorough information for each tender.

Invitations to tender should be opened in accordance
with certain procedures, particularly as regards the time
limits for lodging tenders and the minimum quantity of
each tender lodged. In particular, if they are 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.

Performance of
the tender should be guaranteed by
lodging a security under the conditions laid down in
Commission Regulation (EEC) No 2220/85 of 22 July
1985 laying down common detailed rules for the appli-
for agricultural
cation of
products (2), 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
entitlement
actually been
completed.

aid which have

system of

securities

to the

the

To be successful, tenders should not exceed a maximum
amount of aid per day of storage, to be determined in
relation to the market in olive oil. The tenders must be
representative and the maximum quantities laid down
under the procedure must be complied with for each
category or region specified.

The main points to be included in the contract should be
specified. In order to prevent disturbances 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.

it

In order to ensure that the scheme is properly admi-
nistered,
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
essential, certain procedures for calculating the aid and
the information to be notified to the Commission by the
Member States.

(1) OJ L 161, 30.4.2004, p. 97, corrected by OJ L 206, 9.6.2004, p. 37.

(EC) No 673/2004 (OJ L 105, 14.4.2004, p. 17).

(2) OJ L 205, 3.8.1985, p. 5. Regulation as last amended by Regulation

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(12) With a view to clarity and transparency, Commission
Regulation (EC) No 2768/98 of 21 December 1998 on
the aid scheme for the private storage of olive oil (1)
should be repealed and replaced by a new Regulation.

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

(13)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Olive Oil and Table Olives,

— category of virgin olive oil as referred to in the Part I of

Annex I to Regulation (EC) No 865/2004,

HAS ADOPTED THIS REGULATION:

— Community region or Member State.

Article 1

The competent bodies in producer Member States shall
1.
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,
in accordance with the procedure laid
down in Article 18(2) of Regulation (EC) No 865/2004, open
invitations to tender for a limited period. During a limited-
period tendering procedure, partial
invitations to tender shall
be opened.

Article 2

An invitation to tender for a limited period may be

1.
opened where the following conditions are met:

Invitations to tender for a limited period may be restricted to
just some of the virgin olive oil categories or regions referred to
in the first subparagraph.

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 18(2) of Regulation (EC) No 865/2004.

Article 3

Only olive oil operators approved to that end by the competent
body in the Member State concerned may submit tenders in
respect of partial invitations to tender.

Member States shall lay down the criteria and procedures for
the
approving these operators, who shall
following categories:

into one of

fall

(a)

there are serious disturbances on the market
regions of
resolved by measures for
olive oil in bulk;

in certain
the Community which may be reduced or
the private storage of virgin

(a) an olive-oil producers’ organisation comprising at least 700
olive growers where it acts as an organisation for the
production and marketing of olives and olive oil;

(b) the average price for one or more of the following products
recorded on the market during a period of not less than two
weeks is less than:

(b) a producer organisation representing at least 25 % of olive
growers or of the olive oil production in the region in
which it is situated;

— EUR 1 779/tonne for extra virgin olive oil,

— EUR 1 710/tonne for virgin olive oil,

(c) an association of producer organisations

from various
economic areas and made up of at least 10 producer orga-
nisations as referred to in (a) and (b) above or a number of
organisations representing at
the olive oil
least 5 % of
production of the Member State concerned;

— EUR 1 524/tonne for lampante olive oil having two
degrees of free acidity, this amount being reduced by
EUR 36,70/tonne for each additional degree of acidity.

(1) OJ L 346, 22.12.1998, p. 14. Regulation as last amended by Regu-

lation (EC) No 1432/2004 (OJ L 264, 11.8.2004, p. 6).

(d) a mill whose facilities can extract at least two tonnes of oil
in an eight-hour working day and which has produced in
the two preceding marketing years at total of at least 500
tonnes of virgin olive oil;

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(e) a packaging firm with a capacity, in the territory of a single
Member State, equal at least to six 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.

Should one or more of
the organisations producing or
marketing olives and olive oil be a member or members of
the organisation referred to in point (a) of the second subpar-
agraph, the olive growers involved in such a grouping shall be
individually considered when calculating the minimum number
of 700 growers.

Article 4

For the purposes of
operators shall give an undertaking to:

the approval referred to in Article 3,

(b) approval shall be refused or withdrawn immediately from

an operator where that operator:

(i) does not meet the conditions for approval;

(ii)

is subject to proceedings by the competent authorities
for infringements of Regulation (EC) No 865/2004;

(iii) has been penalised for infringing the production aid
in Council Regulation No
and

scheme provided for
136/66/EEC (1)
the
2004/05 marketing years;

2002/03,

2003/04

in

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

(iv) has been penalised for infringing the scheme to fund
the activities of oil operators’ organisations provided for
in Council Regulation (EC) No 1638/98 (2)
in the
2002/03, 2003/04 and 2004/05 marketing years.

(b) keep stock records of the oil and, where appropriate, the

olives they are storing;

(c) undergo all checks provided for under this aid scheme for

private storage contracts.

Article 6

1.
No later than every Wednesday, Member States shall send
the Commission the average prices recorded on their main
representative markets the preceding week for the various cate-
gories of oil listed in Annex I to Regulation (EC) No 865/2004.

the
The operators concerned shall make a declaration of
capacity of
those
facilities and supply evidence of compliance with the conditions
in Article 3.

their storage facilities, provide a plan of

Article 5

1.
Operators meeting the conditions in Articles 3 and 4 shall
be approved and given an approval number within two months
following the month in which the complete file containing the
application for approval is submitted.

2. Without prejudice to Article 17(3):

(a) producer organisations in the olive oil sector, unions thereof
and the mills and packaging enterprises that have been
authorised by the Member States to undertake private
storage in the 1998/99 to 2004/05 marketing years shall
be deemed to be approved under this Regulation if they
meet the criteria laid down in Articles 3 and 4;

These prices shall be notified by e-mail, along with comments
on the volume of transactions and how representative they are.

2.
Before the 10th day of each month the Member States
shall send the Commission an estimate of the total production
of olive oil and table olives for the current marketing year.

From September to May of each marketing year, Member
3.
States shall send the Commission, no later than the 15th day of
each month, an estimate of
the olive oil and table olives
produced since the start of the marketing year in question.

information,

To obtain these data,
sources of
mills and enterprises engaging in the processing of
olives,
surveys of operators
estimates of statistical bodies.

the Member States may use various
including the data supplied by the
table
the

in the olive

sector or

(1) OJ 172, 30.9.1966, p. 3025/66.
(2) OJ L 210, 28.7.1998, p. 32.

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Member States shall notify the Commission, before the end of
the marketing year concerned, of the total estimated volume of
olive oil and quantity of table olives produced.

competent body in a Member State,
delivery, or by e-mailing that body.

against

receipt of

4. Member States shall establish the data-collection system
they deem to be most
for obtaining and
preparing the notifications referred to in paragraphs 2 and 3
and they shall specify, as appropriate, the data-communication
obligations of the olive-sector operators concerned.

appropriate

5.
The estimates of olive-oil and table-olive production
referred to in paragraphs 2 and 3 shall be sent by e-mail on
the form provided by the Commission.

6.

The Commission may use other sources of information.

Where an operator takes part in a partial tendering procedure
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 withdrawn or
altered after the closing date for submission of tenders.

Article 9

1.

The tenders referred to in Article 8 shall specify:

Article 7

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

procedure to which the tender refers;

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

(b) the name and address of the tenderer;

(a)

for November, January, February, March, April, May, June,
July, September and October, from the 4th to the 8th day at
midday and from the 18th to the 22nd at midday;

(c)

the category of approved operator, referred to in Article
3(1), and the approval number;

(b) for August, from the 18th to the 23rd at midday;

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

tender;

(c)

for December, from the 9th to the 14th at midday.

(e)

the exact address of the place where the storage vats are
located and the information needed to identify the vats to
which the tenders refer;

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 preceding working day.

(f)

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

Article 8

1. Without prejudice to Article 15, tenders 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 conditions laid down in this Regu-
lation of virgin olive oil in bulk in one of the three categories
listed in Part I of Annex I to Regulation (EC) No 865/2004.

(g) the amount of the security to be established in accordance
with Article 10 expressed in the currency of the Member
State in which the tender is made.

2.

To ensure that their validity is recognised, tenders must:

2.
procedure either by submitting a written tender

Approved operators shall take part in the partial tendering
to the

(a) be drawn up, together with the relevant documents, in the
official
languages of the
Member State of the competent body which receives them;

language or one of the official

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(b) be submitted in accordance with this Regulation and

contain all the particulars listed in paragraph 1;

public. Subject to paragraph 2, persons present at the exami-
nation shall be under an obligation not to disclose any parti-
culars relating thereto.

(c) not contain conditions other than those provided for in this

Regulation;

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

2.
Valid tenders shall be notified to the Commission, clas-
sified in increasing order of amount, unnamed, by e-mail, not
later than 48 hours following the expiry of the deadline for the
submission of tenders.

If the deadline expires on a Friday tenders shall be notified no
later than midday (Brussels time) the following Monday.

(e) be accompanied, prior to the deadline for the submission of
the tenderer has established the

that

tenders, by proof
security specified in them.

Article 10

Tenderers shall establish a security of EUR 50 per tonne of

1.
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
the maximum
amount of
tendering procedure
concerned.

the European Union of
the partial

Journal of
the

aid for

3. Where tenders are successful, in addition to the security
referred to in paragraph 1, a security of EUR 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 the
second subparagraph of Article 13(3).

The primary requirement within the meaning of Article
4.
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 Regulation.

However, where the duration of the contract is reduced to less
than six months pursuant to Article 15, the storage period
referred to in the first subparagraph shall be the same as the
period of performance of the contract.

3.
Particulars shall be given for each tender notified of the
quantity, category of oil and amount referred to in Article
sets
9(1)(d)
maximum quantities for each region, the regions concerned
shall be indicated for each tender.

In addition, where

the procedure

and (f).

Article 12

1.
In accordance with the procedure laid down in Article
18(2) of Regulation (EC) No 865/2004 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 procedures.

The maximum amount of aid shall be set in the light of
2.
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 quan-
tities covered by the tenders received.

3. When the maximum amount
is being set, and in
accordance with the same procedure, all tenders in respect of
a category of oil 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:

Article 11

1.
Tenders shall be examined by the competent body in the
Member State concerned in the absence of members of the

— the tenders are not representative, or

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— the maximum amount set could result in an overrun of the

maximum quantity concerned.

Where the Member State can offer duly justified reasons, the
30-day time limit laid down in the first subparagraph may be
extended by 15 days.

Article 13

The contract shall be awarded, without prejudice to Article
1.
12(3),
to the tenderer or tenderers whose tender has been
notified in accordance with Article 11(2), and which corre-
sponds 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 partici-
pation in the tendering procedure not later than the second
the
working day following the date of publication of
the
Journal of
maximum amount of
European Union.

the aid in the Official

5.
The sample referred to in paragraph 4(c) shall be analysed
as quickly as possible to ensure that the oil corresponds to the
category of virgin olive oils for which the contract was awarded.

the oil

the analysis confirms that

If
in the vat does not
correspond to the category for which the contract was
awarded, the entire quantity covered by the tender shall be
rejected and the security referred to in Article 10(1) shall be
forfeit.

Article 14

The contract drawn up in two copies shall contain at least

1.
the following:

(a)

the name and address of
Member State;

the competent body in the

3.
The date of conclusion of the contract shall be that on
which the notice of acceptance of the tender is dispatched to
the tenderer.

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

The starting date of performance of the contract, subject to the
lodging of the security referred to in Article 10(3), shall be the
day following the conclusion of the contract, and the oil
in
question must be stored in the conditions provided for in the
contract.

However, performance of the contract may not begin until the
vats are sealed after the taking of samples, in accordance with
paragraph 4(c) and (d) below.

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

(c)

the exact storage address and the location of
concerned;

the vats

(d) the date of conclusion of the contract;

(e)

the starting and completion dates of performance of the
contract, subject to Article 15;

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

procedure concerned.

The contract shall contain a reference in respect of each

2.
batch covered by it to:

(a)

identify the vats containing the olive oil concerned;

(a)

the category and net weight of the virgin olive oil;

(b) record the net weight of the oil;

(b) the particulars and location of the vats containing the oil.

(c)

take a sample representative of the tender;

3.

The contract shall require the contractor:

(d) seal each vat.

(a)

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

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(b) to store oil of different categories in separate vats, specified
in the contract and sealed by the competent body in the
Member State;

those
beginning on 1 September and ending on expiry of
contracts, under the terms specified in the first subparagraph.

(c)

to allow the competent body in the Member State to verify
at all
the
contract.

times compliance with the requirements of

Changes of vats referred to in (b) above must be authorised by
that body, undertaken in its presence, representative samples of
the vat concerned must be taken and new seals affixed in
accordance with Article 13(4)(c) and (d).

4. Without prejudice to Article 15, where the contractor
terminates
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.

the contract while it

is being performed,

Article 15

in olive oil and the outlook for

The Commission, on the basis of developments on the
1.
market
the future, may
decide in accordance with the procedure laid down in Article
18(2) of Regulation (EC) No 865/2004 to shorten the term 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.

is changed under paragraph 1,

2. Where a contract
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 16

1.
From the starting date of performance of the contract as
referred to in the second subparagraph of Article 13(3), an
advance corresponding to the aid provided for in respect of
the period starting on the starting date 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,
January a further advance may be paid for

from 1
the period

2.
The security referred to in paragraph 1 shall be released
forthwith upon payment of the balance of the aid in accordance
with Article 18(3).

Article 17

Before final payment of the aid is made, the competent

1.
body in the Member State shall:

(a) collect and verify proof of compliance with the conditions

laid down in this Regulation;

(b) 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;

(c)

take all the measures necessary to ensure that checks are
made on compliance with the requirements of the contract.

Checks on compliance shall include a physical inspection

2.
of the goods stored, together with scrutiny of the accounts.

The physical inspection shall cover in particular the 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 requirements of
the contract, the aid shall not be granted, and without prejudice
to other penalties that may be applied, approval of the operator
shall be withdrawn. In addition, the securities as referred to in
Articles 10 and 16 shall be forfeit under the terms of Regu-
lation (EEC) No 2220/85.

Article 18

The aid amount shall be calculated in relation to the net

1.
weight recorded in accordance with Article 13(4)(b).

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 as referred to in the second subpar-
agraph of Article 13(3).

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

Where the analysis referred to in Article 13(5) does not suffice
to confirm that the oil 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 aid, or, where an advance has been granted under
3.
Article 16, the balance of the aid, shall be paid only when all
the requirements of 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 requirements, within 60 days following
expiry of the contract.

has been awarded and which, as appropriate, are not
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 20

Article 19

Regulation (EC) No 2768/98 is hereby repealed.

The Member

the
1.
Commission of the national measures taken to apply this Regu-
lation and of the specimen contract.

concerned

notify

States

shall

The Member

2.
the
shall
Commission of the quantities of olive oil for which an aid

electronically notify

States

Article 21

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

It shall apply from 1 November 2005.

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

Done at Brussels, 23 December 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission