Commission Regulation (EC) No 105/2008 of 5 February 2008 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards intervention on the market in butter
Date: 2008-02-05
Institutions: European Commission
Subjects: award of contract, butter, market intervention

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COMMISSION REGULATION (EC) No 105/2008

of 5 February 2008

laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards
intervention on the market in butter

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1255/1999 of 17
May 1999 on the common organisation of the market in milk
and milk products (1), and in particular Articles 10 and 40
thereof,

Whereas:

(1)

(2)

Commission Regulation (EC) No 2771/1999 (2)
lays
down detailed rules for the application of Council Regu-
lation (EC) No 1255/1999 as regards intervention on the
market in butter and cream. Council Regulation (EC) No
1152/2007 of 26 September 2007 amending Regulation
(EC) No 1255/1999 on the common organisation of the
in milk and milk products (3) amended the
market
provisions concerning intervention and private storage
for butter and cream. In view of those new arrangements
and in the light of the experience gained, it is appropriate
to amend and, where necessary simplify the detailed rules
governing intervention on the market
in butter and
In the interests of clarity Regulation (EC) No
cream.
2771/1999 should be repealed and replaced by a new
Regulation.

should be provided

Article 6(1) of Regulation (EC) No 1255/1999 lays down
the criteria under which butter has to be bought at fixed
price or through invitation to tender and under which
circumstances buying-in is to be suspended. Practical
the
arrangements
concerning
buying-in process. To ensure
compliance with the
requirements as to the quality and presentation of the
butter at the time when the offer is submitted, and after
its entry into storage, sellers should be required to submit
a written commitment to that effect together with their
offer. Offers should also be accompanied by a security, in
order to guarantee that the offer will be maintained and
that the butter of the required quality will be delivered
within time limits to be laid down.

(3)

To be eligible for intervention butter should meet the
requirements laid down in Article 6 of Regulation (EC)

(1) OJ L 160, 26.6.1999, p. 48. Regulation as last amended by Regu-

lation (EC) No 1152/2007 (OJ L 258, 4.10.2007, p. 3).

(2) OJ L 333, 24.12.1999, p. 11. Regulation as last amended by Regu-

lation (EC) No 1171/2007 (OJ L 261, 6.10.2007, p. 11).

(3) OJ L 258, 4.10.2007, p. 3.

(4)

(5)

(6)

(7)

specified and,

No 1255/1999 as well as the conditions of quality and
presentation, which need to be defined. The methods of
analysis and detailed rules governing quality control
should also be
situation so
requires, provision should be made for checks of radio-
activity in butter, the maximum levels of which need to
be established, where appropriate, by Community legis-
lation. However, it should be possible for Member States
to authorise a system of self checking, subject to certain
conditions.

the

if

To ensure that the intervention arrangements function
smoothly,
it is necessary to specify the conditions for
the approval of manufacturing undertakings and verifi-
the
cation of compliance therewith. To ensure that
arrangements are effective, provision should be made
these conditions are not
for action to be taken if
complied with. Since butter may be bought
in by a
competent body belonging to a Member State other
the
than that on whose territory it was produced,
competent body which does the buying-in should in
such cases be able to verify that the conditions relating
to quality and presentation are complied with.

to be

Article 6(1) of Regulation (EC) No 1255/1999 stipulates
that buying-in is
carried out by tendering
procedure. The Commission may decide to suspend
intervention buying-in once a certain quantity offered
for intervention has been reached. In order to put the
Commission in the position to take such a decision,
provisions should be adopted for the Commission to
monitor the quantity of butter offered for public inter-
vention.

have

been

these

reached,

quantities

the
Once
Commission may also decide to carry on buying-in by
way of a standing tendering procedure. Relevant detailed
rules should be determined. To ensure that all interested
parties in the Community are treated equally, invitations
to tender should be advertised in the Official Journal of the
European Union. The details of the tender, particularly the
minimum quantity, deadlines for submission and the
maximum buying-in price should be defined.

It should be possible to guarantee the quality of the
butter, and the terms of buying-in by means of checks
at different stages during storage. Failure to comply with
the requirements should not impose an additional burden
on the Community budget. Provision should therefore be
made for sub-standard butter to be taken back by the
operator, who should be obliged to bear the storage costs
incurred.

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(8)

(9)

The Member States' obligations should be specified with
a view to the proper management of stocks in storage,
by stipulating a maximum distance for the place of
storage and the costs to be borne when that distance is
that stocks be
exceeded, and requiring,
accessible, that batches be identified and that butter in
In order to ensure a
storage be insured against risks.
it is necessary
uniform frequency and level of checks,
to specify the nature and number of
inspections of
storage premises to be performed by the national autho-
rities.

in particular,

Proper management of intervention stock requires the
butter to be resold as soon as outlets become available.
In order to better manage quantities and to avoid desta-
bilising the market,
the selling price should be set
following a tendering procedure. Conditions for sale,
entailing the lodging of a security should be laid down,
the time limits for payment.
particularly as regards
Tenderers
should have the possibility to distinguish
between sweet cream and sour cream butter in their
offer and the selling price fixed may vary according to
the location of the butter offered for sale.

(10) Article 6(3) of Regulation (EC) No 1255/1999 provides
for aid to be granted for the private storage of butter. To
ensure that the arrangements can be monitored properly,
provision should be made for a contract and a set of
specifications regarding storage conditions. For the same
reason, detailed rules should also be laid down regarding
documentation, accounting and the frequency of checks
and inspection procedures, particularly in respect of the
requirements laid down in Article 6(3). To facilitate
checks on the presence of
the butter stored under
private storage contracts, there should be provision for
them to be removed from storage in whole lots unless
the Member State authorises
removal of a smaller
quantity.

(11)

To ensure that the private storage scheme is properly
managed,
it is appropriate to fix annually the amount
of
the aid. The dates of entry into storage and the
dates on which storers may remove from storage,
storage periods and aid amounts may be changed to
take account of the market situation.

(12)

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

HAS ADOPTED THIS REGULATION:

CHAPTER I

SCOPE

Article 1

1.
This Regulation lays down the detailed rules for applying
the following intervention measures in the milk and milk
products sector as provided for in Article 6 of Regulation
(EC) No 1255/1999:

(a) public storage:

(i) buying-in of butter:

— at fixed price,

— by tendering;

(ii) sales of butter;

(b) private storage aid of butter.

For

the purposes of

2.
the Belgo-
Luxembourg Economic Union shall be considered as a single
Member State.

this Regulation,

For

the purpose of

this Regulation ‘competent body’
3.
means the paying agency or, where appropriate,
the body
assigned by the paying agency as referred to in Article 6 of
Council Regulation (EC) No 1290/2005 (1).

CHAPTER II

PUBLIC STORAGE

SECTION 1

Conditions for buying in butter

Article 2

The competent body shall buy in only butter which meets the
requirements of the first subparagraph of Article 6(2) of Regu-
lation (EC) No 1255/1999 and of Article 3 of this Regulation
and which is offered for intervention in the period from 1
March to 31 August of any year.

Article 3

1.
The competent body shall check the quality of butter
using the methods described in Annex I and on the basis of
samples taken in accordance with the rules set out in Annex II.
However, Member States may, subject to written agreement of
the Commission, set up a system of self checking under their
own supervision in respect of certain quality requirements and
in the case of certain approved undertakings.

2.
Levels of
maximum levels
Community rules.

radioactivity in butter may not exceed the
under

permitted, where

applicable,

radioactive contamination of butter

The level of
shall be
monitored only if the situation so requires, and during the
requisite period. Where necessary, the duration and scope of
checks shall be determined in accordance with the procedure
laid down in Article 42 of Regulation (EC) No 1255/1999.

(1) OJ L 209, 11.8.2005, p. 1.

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The butter shall have been made during the 23 days
3.
preceding the day on which the competent body received the
offer to sell.

4.
The minimum quantity of butter offered shall be 10
tonnes. Member States may require butter to be offered by
the full tonne only.

Butter shall be packaged and delivered in blocks of at least

5.
25 kilograms net.

Butter shall be packed in new, strong material in such a
6.
way as to ensure it
transportation,
is protected throughout
storage and removal from storage. The packaging shall show
at least the following particulars, where appropriate in code:

(b) undertake

records

to keep permanent

form
determined by the competent body of each Member State,
listing the supplier and origin of the raw materials, the
quantities of butter obtained and the packaging,
identifi-
cation and exit date of each production batch intended
for public intervention;

in the

(c) agree to submit their production of butter to a specific

official inspection;

(d) undertake to inform the competent body, at

two
working days in advance, of
their intention to produce
butter for public intervention; however, the Member State
may set a shorter time limit.

least

(a)

the approval number
Member State of production;

identifying the factory and the

2.
To ensure compliance with this Regulation, the competent
body shall carry out unannounced on-the-spot inspections, on
the basis of the intervention butter production schedule of the
undertakings concerned.

(b) the date of production;

(c)

the date of entry into storage;

They shall carry out at least:

(d) the production batch number and the package number; the
package number may be replaced by a pallet number
marked on the pallet;

(e)

the words ‘sweet cream’ if the aqueous phase of the butter
has the corresponding pH.

Member States may waive the obligation to show the date of
entry into storage on the packaging, provided that the store
manager undertakes to keep a register in which the particulars
referred to in the first subparagraph are recorded on the date of
entry into storage.

(a) one inspection per period of 28 days of production for
to

intervention with at
examine the records referred to in paragraph 1(b);

least one inspection every year,

(b) one inspection every year, to verify compliance with the
other conditions for approval referred to in paragraph 1.

Approval shall be withdrawn if

3.
the preconditions laid
down in paragraph 1(a) are no longer satisfied. Approval may
be regranted at the request of the undertaking concerned after a
period of at least six months, following a thorough inspection.

Article 4

Undertakings as referred to in Article 6(2) of Regulation

1.
(EC) No 1255/1999 shall be approved only if they:

Except in cases of force majeure, where an undertaking is found
not to have complied with one of its commitments as referred
to in paragraph 1(b), (c) and (d), approval shall be suspended for
a period of between one and 12 months depending on the
seriousness of the irregularity.

(a) are approved in accordance with Article 4 of Regulation
(EC) No 853/2004 of the European Parliament and of the
Council (1) and have the appropriate technical equipment;

(1) OJ L 139, 30.4.2004, p. 55.

The Member State may decide not to impose suspension where
it is established that the irregularity was not committed delib-
erately or as a result of serious negligence and it is of minor
importance with regard to the effectiveness of the inspections
provided for in paragraph 2.

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A report shall be drawn up on the inspections carried out

4.
pursuant to paragraphs 2 and 3, specifying:

2.

Offers shall contain:

(a)

the date of the inspection;

(b) the duration of the inspections;

(c)

the operations carried out.

(a)

the name and address of the seller;

(b) the quantity offered;

(c)

the name and the approval number of
approved under Article 4(1);

the undertaking

The report shall be signed by the inspector responsible.

(d) the dates of manufacture of the butter;

Article 5

(e)

the place where the butter is held.

1. Where butter is offered to intervention in a Member State
other than that in which it was produced, buying-in shall be
to the presentation of a certificate supplied by the
subject
competent body of the Member State of production.

3.

Offers shall be valid only if:

The certificate shall be presented to the competent body of the
purchasing Member State not later than 45 days after the day
on which the offer was received and shall contain the infor-
mation referred to in Article 3(6)(a), (b) and (d) of this Regu-
lation, and a confirmation that the butter has been produced
directly and exclusively from pasteurised cream within the
meaning of Article 6(6) of Regulation (EC) No 1255/1999, in
an approved undertaking in the Community.

2. Where the Member State of production has performed the
checks referred to in Article 3(1) of this Regulation, the certi-
ficate shall also contain the results of those checks and confirm
that the product concerned is butter fulfilling the requirements
of the first subparagraph of Article 6(2) of Regulation (EC) No
1255/1999. In that case, the packaging referred to in Article
3(6) of this Regulation must be sealed by means of a numbered
label
issued by the competent body of the Member State of
production. The certificate shall contain the number of the label.

SECTION 2

Procedure for buying-in of butter at fixed price

Article 6

Buying-in of butter at 90 % of the intervention price pursuant
to the first subparagraph of Article 6(1) of the Regulation (EC)
No 1255/1999 shall be carried out in accordance with the
provisions of this Section.

Article 7

(a)

they relate to a quantity of butter meeting the requirements
of Article 3(4);

(b) they are accompanied by a written commitment by the

seller to comply with Article 11(2);

(c) proof is furnished that the seller has lodged a security of
EUR 5 per 100 kg in the Member State in which the offer
was submitted no later than the day on which the offer is
received.

The commitment provided for

if
4.
forwarded initially to the competent body, shall be deemed to
be tacitly renewed for subsequent offers until explicitly cancelled
by the seller or by the competent body, provided that:

in paragraph 3(b),

(a)

the original offer stipulates that the seller intends to avail of
the provisions of this paragraph;

(b) subsequent offers refer to the provisions of this paragraph

and to the date of the original offer.

5.
The competent body shall record the day on which the
offer was received, the quantities involved and their respective
dates of manufacture and the place where the butter offered is
stored.

1.
Sellers shall submit a written offer against issuance of a
receipt, or by any written means of telecommunication with
proof of receipt.

Offers may not be withdrawn after

6.
received by the competent body.

they have been

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Article 8

Article 10

Maintenance of the offer, delivery of butter to the cold store
designated by the competent body within the time limit laid
down in Article 9(2) of this Regulation and compliance with the
requirements of Article 2 of this Regulation shall constitute
primary requirements within the meaning of Article 20 of
Commission Regulation (EEC) No 2220/85 (1).

Article 9

After checking the offer, and within five working days
the
the offer
issue a dated and numbered delivery

1.
following the day of
competent body shall
order showing:

receipt of

to sell,

(a)

the quantity to be delivered;

(b) the final date for delivery of the butter;

(c)

the cold store to which it must be delivered.

2. Within 21 days of the day of receipt of the offer to sell,
the seller shall deliver the butter to the loading bay of the cold
store. Delivery may be in several consignments.

1.
The paying agency shall pay the seller for each quantity of
butter taken over, between the 45th and 65th day after the day
of
conformity with the
requirements of Articles 2 and 3 has been established.

taking over, provided that

the

2.
For the purpose of this Article, the day of the taking over
shall mean the day on which the butter enters the cold store
designated by the competent body, but no earlier than the day
following that on which the delivery order referred to in Article
9(1) was issued.

Article 11

The butter shall be put through a trial storage period. This
1.
period shall be fixed at 30 days starting from the day of taking
over.

into the

By their offers, sellers shall undertake that, where the
2.
the
inspection on entry
competent body shows that
the
requirements of Articles 2 and 3, or where, at the end of the
trial storage period, the minimum organoleptic quality of the
butter proves to be below that set in Annex I:

store designated by
the butter does not meet

Any costs incurred in unloading the butter at the loading bay of
the cold store shall be borne by the seller.

(a)

they will take back the butter in question and

3.
The security referred to in Article 7(3)(c) shall be released
as soon as the seller has delivered all the quantity indicated on
the delivery order within the time limit laid down therein and
conformity with the requirements laid down in Article 2 has
been established.

(b) they will pay the storage costs of the butter concerned from
the day on which it was taken over until the date of its
removal from storage.

Where the butter does not conform to the requirements laid
down in Article 2 the butter shall be rejected and the security
shall be forfeit in respect of the quantity rejected.

The storage costs to be paid shall be determined on the basis of
the standard amounts for entry, removal and storage costs laid
down pursuant to Article 6 of Council Regulation (EEC) No
1883/78 (2).

Except in cases of force majeure, where the seller fails to
4.
deliver the butter within the time limit laid down in the delivery
order, the security provided for in Article 7(3)(c) shall be forfeit
in proportion to the quantities not delivered and buying-in shall
be cancelled in respect of these quantities not yet delivered.

5.
For the purpose of this Article, the butter shall be deemed
to be delivered to the competent body on the day when the full
quantity of butter covered by the offer enters the cold store
designated by the competent body, but no earlier than the day
following that on which the delivery order was issued.

The rights and obligations resulting from the sale shall not

6.
be transferable.

Article 12

Not later than 12 noon (Brussels time) of each Tuesday,
1.
the competent body shall inform the Commission of the quan-
tities of butter which, during the preceding week, have been the
subject of an offer to sell in accordance with Article 7.

Once it

is observed that

the offers in a certain year
2.
approach 18 000 tonnes,
inform
Member States as of which date they shall communicate the
information referred to in paragraph 1 every day before 12
noon (Brussels time) for the quantities of butter offered the
preceding day.

the Commission shall

(1) OJ L 205, 3.8.1985, p. 5.

(2) OJ L 216, 5.8.1978, p. 1.

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Once it is observed that the offers in a certain year exceed the
quantity of 30 000 tonnes referred to in the second subpara-
graph of Article 6(1) of Regulation (EC) No 1255/1999 buying-
in may be suspended in accordance with the procedure referred
to in Article 42(2) of that Regulation.

In the case of suspension of buying-in in accordance with the
second subparagraph of this paragraph, no new offers shall be
accepted as of the day following the day of the entry into force
of the decision suspending buying-in.

SECTION 3

Procedure for buying-in of butter by tendering

Article 13

1. Where the Commission decides in accordance with the
procedure referred to in Article 42(2) of Regulation (EC) No
1255/1999 to start buying-in butter through an open standing
invitation to tender pursuant
to the third subparagraph of
Article 6(1) of that Regulation, Articles 2 and 3(1)(2)(4) to (6)
and Articles 4, 5, 9, 10 and 11 of this Regulation shall apply
unless otherwise provided in this Section.

A notice of invitation to tender shall be published in the

2.
Official Journal of the European Union.

3.
The time limit for the submission of tenders in response
to the individual invitations to tender shall be 11.00 (Brussels
time) on the third Tuesday of the month. However, in August it
shall be 11.00 (Brussels time) on the fourth Tuesday. If Tuesday
is a public holiday the time limit shall be 11.00 (Brussels time)
on the previous working day.

Article 14

shall participate

Interested parties

tendering
1.
procedure announced by the competent body of a Member
State either by submitting a written tender against issuance of
a receipt, or by any written means of telecommunication with
proof of receipt.

in the

2.

Tenders shall contain:

(a)

the name and address of the tenderer;

(b) the quantity offered;

(e)

the dates of manufacture of the butter;

(f)

the place where the butter is held.

3.

Tenders shall be valid only if:

(a)

they relate to a quantity of butter meeting the requirements
of Article 3(4);

(b) the butter has been produced during 31 days preceding the

closing date of the tender;

(c)

they are accompanied by the written commitment by the
tenderer to comply with Article 11(2);

(d) proof is furnished that the tenderer has lodged a security of
EUR 5 per 100 kg for the invitation to tender concerned, in
the Member State in which the tender was submitted, before
the time limit referred to in Article 13(3) for submission of
tenders.

The commitment provided for

4.
if
forwarded initially to the competent body, shall be deemed to
tenders until explicitly
subsequent
be tacitly renewed for
cancelled by the tenderer or by the competent body, provided
that:

in paragraph 3(c),

(a)

the original tender stipulates that the tenderer intends to
avail himself of the provisions of this paragraph;

(b) subsequent tenders refer to the provisions of this paragraph

and to the date of the original tender.

The competent body shall record the day on which the
5.
tender was received, the quantities involved and their respective
dates of manufacture and the place where the butter offered is
stored.

Tenders may not be withdrawn after

6.
referred to in Article 13(3)
relating to the invitation to tender concerned.

for the submission of

the time limit
tenders

(c)

the proposed price per 100 kilograms of butter, exclusive of
national taxes and charges, delivered to the loading bay of
the cold store, expressed in EUR to no more than two
decimal places;

(d) the name and the approval number of

the undertaking

approved under Article 4(1);

Article 15

Maintenance of the tender after the time limit for submission of
tenders, delivery of the butter to the cold store designated by
the competent body within the time limit laid down in Article
18(3) of this Regulation and compliance with the requirements
of Article 2 of
shall constitute primary
requirements within the meaning of Article 20 of Regulation
(EEC) No 2220/85.

this Regulation,

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Article 16

1.
On the day of the lapse of the time limit referred to in
Article 13(3), the competent body shall inform the Commission
of the quantities and prices offered by tenderers.

the quantity indicated on the delivery order within the time
limit
conformity with the
laid down therein and the
requirements of Article 2 has been established.

If no offers have been submitted the competent body commu-
nicates this to the Commission within the same time limit.

Where the butter does not conform to the requirements laid
down in Article 2, the butter shall be rejected and the security
shall be forfeit in respect of the quantity rejected.

2.
In the light of the tenders received for each invitation to
tender, the Commission shall fix a maximum buying-in price,
by reference to the intervention prices applicable, in accordance
with the procedure referred to in Article 42(2) of Regulation
(EC) No 1255/1999.

A decision may be taken not to proceed with the invitation to
tender.

Article 17

Tenders shall be rejected if the price proposed is higher than the
maximum price referred to in Article 16(2), applying to the
tendering procedure concerned.

Article 18

Tenderers

1.
the
competent body of the outcome of their participation in the
tendering procedure.

immediately

informed

shall

by

be

Where tenders have been unsuccessful, the securities provided
for in Article 14(3)(d) shall be released immediately.

rights

The
procedure shall not be transferable.

and obligations

resulting from the

tendering

Except

in cases of

force majeure, where the successful
5.
tenderer fails to deliver the butter within the time limit laid
down in the delivery order,
in
Article 14(3)(d) shall be forfeit in proportion to the quantities
not delivered, and buying-in shall be cancelled in respect of the
quantities not yet delivered.

the security provided for

6.
For the purpose of this Article, the butter shall be deemed
to be delivered to the competent body on the day when the full
quantity of butter covered by the delivery order enters the cold
store designated by the competent body, but no earlier than the
day following that on which the delivery order was issued.

SECTION 4

Entry into and removal from storage

Article 19

lower

than – 15°C,

1.
The Member States shall lay down technical standards for
cold stores, providing in particular for a storage temperature
take any other
equal or
measures necessary to ensure that
is properly
conserved. The relevant risks shall be covered by insurance in
the form of either a contractual obligation on storers or a
the
comprehensive
competent body;
the Member States may also act as their
own insurers.

liability borne by

coverage of

the butter

and shall

the

The competent body shall

immediately issue to the
2.
successful tenderer a dated and numbered delivery order indi-
cating:

(a)

the quantity to be delivered;

(b) the final date for delivery of the butter;

(c)

the cold store to which it shall be delivered.

2.
The competent body shall require that butter be delivered
to the loading bay of the cold store, and be taken into storage
and kept there, on pallets,
in such a way as to create easily
identifiable and readily accessible lots.

3.
The competent body responsible for checks shall perform
unannounced checks on the presence of the butter in store, in
accordance with Annex I of Commission Regulation (EC) No
884/2006 (1).

3. Within 21 days of the closing date for submission of
tenders, the successful tenderer shall deliver the butter to the
loading bay of
the cold store. Delivery may be in several
consignments.

Article 20

The competent body shall choose the nearest available

1.
cold store to the place where the butter is stored.

Any costs incurred in unloading the butter at the loading bay of
the cold store shall be borne by the successful tenderer.

The maximum distance referred to in the second subparagraph
of Article 6(2) of Regulation (EC) No 1255/1999 shall be 350
kilometres.

4.
The security provided for in Article 14(3)(d) shall be
released as soon as the successful tenderer has delivered all

(1) OJ L 171, 23.6.2006, p. 35.

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the competent body may choose another

store
However,
situated within the distance referred to in the second subpara-
graph, provided that the choice of that cold store does not
result in additional storage costs.

The competent body may choose a cold store situated beyond
that distance if the resulting expenditure, including storage and
transport costs, is lower. In that case the competent body shall
notify the Commission of its choice forthwith.

2. Where the competent body buying-in the butter is in a
Member State other than the one in whose territory the offered
butter is stored, no account shall be taken, in calculating the
maximum distance referred to in paragraph 1 of the distance
between the store of the vendor and the border of the Member
State of the purchasing competent body.

Beyond the maximum distance referred to in paragraph 1,
3.
the additional transport costs borne by the paying agency shall
be EUR 0,065 per tonne and per kilometre. The additional costs
shall be borne by the paying agency only if the temperature of
the butter does not exceed 6 °C on arrival at the cold store.

Article 21

At the time of removal from store the competent body shall, in
the case of delivery outside of the cold store, make the butter
available on pallets at the store's loading bay,
loaded, where
appropriate, onto the means of transport where this is a lorry
or a railway wagon. The costs involved shall be borne by the
paying agency and any stowage and depalletising costs shall be
borne by the purchaser of the butter.

SECTION 5

Procedure for sales of butter by tendering

Article 22

They shall also indicate, for the butter they hold:

(a)

the locations of the cold store where the butter to be sold is
stored,

(b) the quantity for sale in each cold store and, if appropriate,
the quantity of the butter referred to in Article 3(6)(e).

5.
The competent body shall keep an up-to-date list of the
information referred to in paragraph 4, which they shall make
available to interested parties on request. They shall publish
updated lists at regular intervals in a form which shall be
specified in the notice of standing invitation to tender.

The

6.
arrangements to enable interested parties:

competent

body

shall make

the

necessary

(a)

to examine samples of the butter put up for sale at their
own expense before submitting a tender;

(b) to verify the results of the analyses referred to in Annex I

concerning fat, water and non-fat solids.

Article 23

1.
The competent body shall organise individual tendering
rounds during the term of validity of the standing invitation
to tender.

2.
The time limit for the submission of tenders in response
to the individual invitations to tender shall be 11.00 (Brussels
time) on the third Tuesday of the month. However, in August it
shall be 11.00 (Brussels time) on the fourth Tuesday and in
December it shall be 11.00 (Brussels time) on the second
Tuesday. If Tuesday is a public holiday the time limit shall be
11.00 (Brussels time) on the previous working day.

Butter shall be sold by means of a standing invitation to

1.
tender.

Article 24

Sales shall concern butter taken into storage before 1 June

2.
2007.

1.
Tenders under each individual round shall be submitted by
written offer against issuance of a receipt, or by any written
means of telecommunication with proof of receipt.

Tenders shall be submitted to the competent body holding the
butter for which an offer is made.

3.
A standing invitation to tender shall be published in the
Official Journal of the European Union at least eight days before
the first closing date laid down for the submission of tenders.

2.

Offers shall contain:

4.
The competent body shall draw up a notice of standing
invitation to tender indicating in particular the time limit and
the address for submission of tenders.

(b) the quantity desired;

(a)

the name and address of the tenderer;

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(c)

the price in EUR tendered per 100 kilograms, not including
national taxes and charges, delivered to the loading-bay of
the cold store;

Article 27

Offers shall be rejected if the price offered is lower than the
established minimum price.

(d) if appropriate, the cold store where the butter is held and as

the case may be a substitute cold store;

Article 28

(e)

if appropriate, an indication of the kind of butter referred to
in Article 3(6)(e) for which the offer is being submitted.

3.

Offers shall not be valid unless:

(a)

they relate to at least five tonnes or, if the quantity available
in a cold store is less than five tonnes, to the actual quantity
available;

(b) proof is provided that the tenderer has lodged a tendering
security of EUR 70 per tonne, in the Member State where
the tender is submitted, for the tendering round in question
before the time limit specified for submission of tenders
referred to in Article 23(2).

Tenders may not be withdrawn after

4.
referred to in Article 23(2).

the time limit

Article 25

For the purposes of
the tendering security provided for in
Article 24(3)(b) of this Regulation, maintenance of the tenders
after the time limit referred to in Article 23(2) of this Regu-
lation and the payment of the price within the deadline laid
down in Article 31(2) of
this Regulation, shall constitute
primary requirements within the meaning of Article 20 of
Regulation (EEC) No 2220/85.

Article 26

1.
The competent body shall allocate the butter on the basis
of its date of entry into storage, starting with the oldest product
of the total quantity or, as the case may be, the oldest of the
quantity of sweet or sour cream butter available in the cold
store designated by the tenderer.

2. Without prejudice to Article 27, the successful tenderer
shall be the tenderer offering the highest price.
the full
the remainder shall be
quantity available is not allocated,
awarded to the other tenderers on the basis of
the prices
tendered, starting with the highest price.

If

3. Where acceptance of a tender would result in contracts
being awarded in excess of the quantity of butter available in a
particular cold store, only the quantity available shall be
awarded to the tenderer in question.

However, the competent body may designate other cold stores
to make up the quantity set out in the tender, provided the
tenderer agrees.

4. Where acceptance of two or more tenders offering the
same price for butter in a particular cold store would lead to
contracts being awarded in excess of the quantity available, the
award shall be made by allocating the quantity available in
proportion to the quantities tendered for.

On the day of the lapse of the time limit referred to in
1.
Article 23(2), the competent body shall inform the Commission
of
the quantities and prices offered by tenderers and the
quantity of butter offered for sale.

However, should such allocation lead to the award of quantities
of less than five tonnes, the award shall be made by drawing
lots.

If no offers have been submitted the competent body commu-
nicates this to the Commission within the same time limit if
butter is available for sale in the Member State concerned.

2.
A minimum selling price for the butter on the basis of the
offers received under each round shall be fixed in accordance
with the procedure referred to in Article 42(2) of Regulation
(EC) No 1255/1999. This price may vary according to the
location of the quantities of butter offered for sale.

A decision may be taken to make no award under the round.

5. Where after the acceptance of all successful tenders the
quantity left in the store is less than 5 000 kg, this remaining
quantity shall be offered by the competent body to the
tenderers starting with the one who offered the
successful
highest price. The successful
tenderer shall be offered the
option to buy the remaining quantity for the same price as
the one awarded to him.

Article 29

rights

The
procedure shall not be transferable.

and obligations

resulting from the

tendering

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Article 30

1.
The competent body shall immediately inform tenderers
of the outcome of their participation in the invitation to tender.

Securities provided for in Article 24(3)(b)
cessful tenders shall be released immediately.

lodged for unsuc-

2.
Before removing the butter and within the period specified
in Article 31(2), successful tenderers shall pay the paying agency
the amount corresponding to their tender for each quantity that
they wish to withdraw.

Except in cases of force majeure, if the successful tenderer
3.
has not complied with the requirement provided for
in
paragraph 2 the tendering security referred to in Article
24(3)(b)
the quantities
involved shall be cancelled.

shall be forfeited and the sale of

CHAPTER III

PRIVATE STORAGE OF BUTTER

SECTION 1

Contract and storage conditions

Article 32

For the purposes of this Chapter the following definitions shall
apply:

— ‘storage lot’ means a quantity weighing at least one tonne
and of homogeneous composition and quality, originating
in a single factory, taken into storage in a single warehouse
on a single day;

— ‘day of commencement of contractual storage’ means the

day following that of entry into store.

Article 31

1.
Once the amount referred to in Article 30(2) has been
paid the competent body shall issue a removal order indicating:

A private storage contract may be concluded only for butter as
referred to in the first subparagraph of Article 6(3) of Regu-
lation (EC) No 1255/1999.

Article 33

(a)

the quantity in respect of which the corresponding amount
has been paid;

(b) the cold store in which the butter is stored;

Butter must have been produced in an undertaking approved in
accordance with Article 4(1)(a), (b) and (c) of this Regulation
during the 28 days preceding the day of commencement of
contractual storage. Its radioactivity level shall not exceed the
maximum permitted levels referred to in Article 3(2) of this
Regulation.

(c)

the final date for removal of the butter.

Article 34

2.
Successful tenderers shall remove the butter awarded to
them within 30 days following the end of the time period for
the submission of
tenders. Removal may be effected by
instalments of not less than five tonnes each. However, where
the quantity remaining in a cold store is less than five tonnes,
that smaller quantity may be delivered.

force majeure,

Except in cases of
if the butter has not been
removed within the period laid down in the first subparagraph,
the cost of storing shall be borne by the successful tenderer
from the day following that on which the period expired.
Moreover, storage shall be at tenderer's risk.

Contracts relating to the private storage of butter as referred to
in the third subparagraph of Article 6(3) of Regulation (EC) No
1255/1999 shall be concluded between the competent body of
the Member State on whose territory the butter is stored and
natural or legal persons hereinafter called ‘contractors’.

Article 35

Storage contracts shall be concluded in writing for one or
in particular, provisions
include,

1.
more storage lots and shall
concerning:

(a)

the quantity of butter to which the contract applies;

The security lodged in accordance with Article 24(3)(b)
3.
shall be released immediately in respect of quantities removed
within the period provided for in the first subparagraph of
paragraph 2.

(b) the amount of the aid;

In the event of force majeure referred to in the second subpara-
graph of paragraph 2, the competent body shall take such
action as it considers necessary having regard to the circum-
stances invoked.

(c)

the dates relating to the execution of the contract, without
prejudice to the fourth subparagraph of Article 6(3) of
Regulation (EC) No 1255/1999;

(d) the identity of the cold stores.

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The control measures, particularly those referred to in
2.
Article 40 of this Regulation and the information referred to
in paragraph 3 of this Article shall be the subject of specifi-
cations drawn up by the competent body of the Member State
of storage. The storage contract shall refer to those specifi-
cations.

3.
The specifications shall provide that the packaging of the
butter shows at least the following particulars, which may be
encoded, where appropriate:

(a)

the number identifying the factory and the Member State of
production;

(b) the date of production;

(c)

the date of entry into storage;

(d) the production batch number;

(e)

the word ‘salted’ in the case of butter as referred to in the
second indent of the first subparagraph of Article 6(3) of
Regulation (EC) No 1255/1999;

(f)

the net weight.

Applications must reach the competent body within 30 days of
the date of entry into cold store. The competent body shall
register their date of receipt.

If
the application reaches the competent body within 10
working days following the deadline, the storage contract may
still be concluded but the aid shall be reduced by 30 %.

to subsequent confirmation of

2.
Storage contracts shall be concluded within 30 days of the
date of registration of the application subject, where appro-
priate,
the
butter as referred to in Article 40(1) second subparagraph. In
the case where the eligibility is not confirmed, the contract
concerned shall be considered as null and void.

the eligibility of

Article 38

1. Where the butter is stored in a Member State other than
the Member State of production, conclusion of
the storage
contract referred to in Article 34 shall be subject to presentation
of a certificate.

(b) and (d) and confirm that

The certificate shall contain the information specified in Article
35(3)(a),
the butter has been
to
produced in an approved undertaking which is subject
checks verifying that the butter is produced from cream or
milk within the meaning of Article 6(6) of Regulation (EC)
No 1255/1999.

Member States may waive the obligation to indicate the date of
entry into store on the packaging provided the store manager
undertakes to keep a register in which the particulars referred to
in the first subparagraph are entered on the date of entry into
store.

The certificate shall be supplied by the competent body of the
Member State of production within 50 days of the date of the
butter's entry into storage.

Article 36

Entry into store may take place only between 1 March
1.
and 15 August of any year. Removal from store may take place
only as from 16 August of the year of storage. Contractual
storage shall end on the day preceding that of the removal
the last day of February
from storage or at
following the entry into store.

the latest

In the case referred to in the first subparagraph of this Article,
storage contracts shall be concluded within 60 days of the date
of registration of the application subject, where appropriate, to
subsequent confirmation of
the butter as
referred to in Article 40(1) second subparagraph. In the case
where the eligibility is not confirmed, the contract concerned
shall be considered as null and void.

the eligibility of

Removal from store shall be in whole storage lots or, if
in smaller quantities.
in the circumstances referred to in Article 40(2)(a)

2.
the competent body so authorises,
However,
only a sealed quantity may be removed from store.

Article 37

1.
Applications to conclude a contract with the competent
body may relate only to lots of butter which have been fully
taken into storage.

2. Where the Member State of production has performed the
checks on the nature and composition of the butter referred to
in Article 40(1) of this Regulation, the certificate shall contain
the results of
the product
those checks and confirm that
concerned is butter within the meaning of the first subpara-
graph of Article 6(3) of Regulation (EC) No 1255/1999.
In
that case,
the packaging shall be sealed by means of a
numbered label issued by the competent body of the Member
State of production. The certificate shall contain the number of
the label.

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SECTION 2

Checks

Article 39

The Member State shall ensure that all the conditions for

1.
entitlement to payment of the aid are fulfilled.

The contractor or, at the request of the Member State or
2.
with its authorisation, the person responsible for operating the
cold store shall make available to the competent body any
documentation permitting verification of the following parti-
culars of the butter placed in private storage:

(a)

the approval number
Member State of production;

identifying the factory and the

(b) the date of production;

(c)

the date of entry into storage;

(d) the storage lot number;

(e) presence in the store and the address of the cold store;

(f)

the date of removal from storage.

The

contractor

person
3.
responsible for operating the cold store shall keep stock
records available at the store for each contract, containing:

or, where

applicable,

the

(a)

the storage lot number of
storage;

the butter placed in private

(b) the dates of entry into and removal from storage;

(c)

the quantity of butter, indicated per storage lot;

(d) the location of the butter in the cold store.

Butter stored must be easily accessible and easily identi-

4.
fiable per lot and by contract.

Article 40

To ensure that the butter stored is eligible for aid, a represen-
tative sample of at least 5 % of the quantities placed in storage
shall be checked to ensure that, as regards inter alia, the weight,
identification, nature and composition of the butter, all storage
lots conform to the particulars in the application for conclusion
of a contract.

2.

The competent body shall:

(a) seal the butter by contract, storage lot or smaller quantity at
the time of the check provided for in paragraph 1; or

is present

(b) make an unannounced check, by sampling, to ensure that
the butter
in the cold store. The sample
concerned shall be representative and shall correspond to
at least 10 % of the total quantity under the contract for a
private storage aid measure.

At

the

the

end of

contractual

the
3.
competent body shall, by sampling, verify weight and identifi-
cation of butter. However, where the butter is still in storage
after expiry of the maximum contractual storage period, that
check may be made when the butter is removed from storage.

storage period,

For the purposes of the check referred to in the first subpara-
graph, the contractor shall
indi-
five working days
cating the storage lots involved, at
before:

inform the competent body,

least

(a)

the end of the maximum contractual storage period; or

(b) the start of the removal operations where butter is removed
before expiry of the maximum contractual storage period.

The Member State may accept a shorter time limit than five
working days.

A report shall be drawn up on the checks carried out

4.
pursuant to paragraphs 1, 2 and 3, specifying:

(a)

the date of the checks;

(b) duration of the checks;

(c)

the operations carried out.

1.
The competent body shall conduct checks on the date or
after the date of entry of butter into the cold store and within
28 days of
the application for
conclusion of a contract referred to in Article 37(1).

the date of registration of

The report shall be signed by the inspector responsible and
countersigned by the contractor or, as the case may be, the
person responsible for operating the cold store, and shall be
included in the payment dossier.

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In the event of irregularities affecting at least 5 % of the
5.
quantities of butter checked, the check shall be extended to a
larger sample to be determined by the competent body.

The Member States shall notify such cases to the Commission
within four weeks.

After 60 days of contractual storage a single advance
4.
payment of the aid may be made at the contractor's request,
provided he lodges a security equal to the advance payment
plus 10 %. The advance payment shall be calculated on the
basis of a storage period of 90 days. The security shall be
released as soon as the balance of
the aid referred to in
paragraph 3 has been paid.

SECTION 3

Storage aid

Article 41

1.
Aid for private storage as provided for in the first sub-
paragraph of Article 6(3) of Regulation (EC) No 1255/1999
may be granted only where the contractual storage period is
between 90 and 210 days.

Where the contractor fails to comply with the time limit
referred to in Article 40(3), the aid shall be reduced by 15 %
and shall be paid only in respect of the period for which the
contractor supplies to the competent body satisfactory proof
that the butter has remained in contractual storage.

2. Without prejudice to Article 43 of this Regulation, the
Commission shall determine each year in accordance with the
procedure laid down in Article 42(2) of Regulation (EC) No
1255/1999, the amount of the aid referred to in the second
that Regulation for private
subparagraph of Article 6(3) of
storage contracts commencing during the year in question.

3.
The aid shall be paid on application by the contractor, at
the end of the contractual storage period, within 120 days of
receipt of the application, provided that the checks referred to
in Article 40(3) have been carried out and that the conditions
for entitlement to the aid have been met.

Article 42

If checks during storage or on removal reveal defective butter,
no aid may be paid for those quantities. The remainder of the
storage lot which is still eligible for aid shall not be less than
one tonne. The same rule shall apply where part of a lot is
removed for that reason before 16 August of the year of storage
or before expiry of the minimum storage period.

Article 43

If the market situation so requires, the Commission may during
the year alter the amount of the aid, the periods of entry into
and removal from storage and the maximum length of storage
in respect of contracts yet to be concluded.

CHAPTER IV

REPEAL, TRANSITIONAL AND FINAL PROVISIONS

Article 44

Regulation (EC) No 2771/1999 is hereby repealed. However, it
shall continue to apply to private storage contracts concluded
before 1 January 2008.

References to Regulation (EC) No 2771/1999 shall be construed
as references to this Regulation and be read in accordance with
the correlation table set out in Annex III.

Article 45

if an administrative enquiry into entitlement to the
However,
aid is under way, payment shall not be made until entitlement
has been recognised.

This Regulation shall enter into force on the seventh day
following that of 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, 5 February 2008.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX I

Compositional requirements, quality characteristics and analytical methods

Butter is a solid emulsion, mainly of the water-in-oil type, with the following compositional and quality characteristics:

Parameters

Content and quality characteristics

Fat

Water

Non-fat solids

Free fatty acids

Peroxide value

Coliformes

Non-milk fat

Tracers (1)

— sterols
— vanillin
— ethyl ester of carotenic acid
— triglycerides of enanthic acid

Other tracers (1) (2)

Sensory characteristics

Minimum 82 %

Maximum 16 %

Maximum 2 %

Maximum 1,2 mmole/100 g fat

Maximum 0,3 meq oxygen/1 000 g fat

Not detectable in 1 g

Not detectable by triglyceride analysis

Not detectable, β-sitosterol ≤ 40 mg/kg
Not detectable
≤ 6 mg/kg

Not detectable

Not detectable

At least four out of five points for appearance, flavour and
consistency

Water dispersion

At least four points

The reference methods to be applied shall be those laid down in Regulation (EC) No 213/2001 (OJ L 37, 7.2.2001, p. 1).

(1) Tracers approved under Regulation (EC) No 1898/2005 (OJ L 308, 25.11.2005, p. 1). Checks on tracers shall not be applied during the

suspension of invitations to tender provided for in Regulation (EC) No 1039/2007 (OJ L 238, 11.9.2007, p. 28).

(2) Methods approved by competent body.

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ANNEX II

Sampling for chemical and microbiological analysis and sensory evaluation

1. Chemical and microbiological analysis

Quantity of butter
(kg)

Minimum number of samples
(> 100 g)

≤ 1 000
> 1 000 ≤ 5 000
> 5 000 ≤ 10 000
> 10 000 ≤ 15 000
> 15 000 ≤ 20 000
> 20 000 ≤ 25 000

> 25 000

2

3

4

5

6

7

7 + 1 per 25 000 kg or part thereof

Sampling for microbiological analysis must be carried out aseptically.

Up to five samples of 100 g may be combined into one sample for analysis after thorough mixing.

The samples must be taken randomly from different parts of the offered quantity before or at the time of entry into
the cold store designated by the competent body.

Preparation of composite butter sample (chemical analysis):

(a) using a clean, dry butter trier or similar suitable instrument, extract a core of butter of at least 30 g and place in a
sample container. The composite sample must then be sealed and forwarded to the laboratory for analysis;

(b) at the laboratory the composite sample is to be warmed in the original unopened container to 30 °C and shaken
frequently until a homogeneous fluid emulsion free of unsoftened pieces is obtained. The container should be one
half to two thirds full.

Two samples per year per producer offering butter for intervention must be analysed for non-milk fat and one sample
for tracers.

2. Sensory evaluation

Quantity of butter
(kg)

Minimum number of samples

1 000 ≤ 5 000
> 5 000 ≤ 25 000

> 25 000

2

3

3 + 1 per 25 000 kg or part thereof

The samples are to be taken randomly from different parts of the offered quantity between the 30th and the 45th day
following take-over of the butter and graded.

Each sample must be assessed individually in accordance with Annex VII to Regulation (EC) No 213/2001. No
resampling or re-evaluation is allowed.

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3. Guidelines to be followed where samples show defects

(a) chemical and microbiological analysis:

— where individual samples are analysed, one sample showing a single defect out of five to 10 samples or two
samples each showing a single defect out of 11 to 15 samples may be allowed. Where a sample shows a
defect, two new samples must be taken from either side of the sample showing the defect and checked for the
parameter in question. Where neither sample meets the specification, the quantity of butter between the
original two samples on either side of the sample showing the defect must be rejected from the quantity
offered.

Quantity to be rejected where the new sample shows a defect:

— where composite samples are analysed and found to show defects in respect of one parameter, the quantity
represented by the composite sample concerned is to be rejected from the quantity offered. The quantity
represented by one composite sample may be determined by subdividing the quantity offered before samples
are taken randomly from each part thereof;

(b) sensory evaluation:

where a sample fails the sensory evaluation, the quantity of butter between two neighbouring samples on either
side of the sample failing is to be rejected from the quantity offered;

(c) where samples show a sensory defect and either a chemical or a microbiological defect, the whole quantity is to

be rejected.

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ANNEX III

Correlation table

Regulation (EC) No 2771/1999

This Regulation

Article 1(1) and (2)

Article 1(1) and (2)

Article 2

Article 3

Article 4

Article 5(1) to (4)

Article 5(5)

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15(1)

Article 15(2)

Article 15(a)

Article 16

Article 17

Article 17(a)

Article 17(b)

Article 17(c)

Article 17(d)

Article 18

Article 19

Article 20

Article 21

Article 22

Article 23

Article 24

Article 24(a)

Article 24(b)

Article 24(c)(1)

Article 24(c)(2)

Article 24(c)(3)

Article 24(c)(4)

Article 24(c)(5)

Article 24(d)

—

Article 2

Article 3

Article 4(1) to (4)

—

Article 5

—

—

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12(1)

First and second subparagraph of Article 12(2)

Third subparagraph of Article 12(2)

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

Article 20

Article 21

Article 22

Article 23

Article 24

Article 25

Article 26

Article 27

—

Article 28(1)

Article 28(2)

Article 28(3)

Article 28(4)

Article 29

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Regulation (EC) No 2771/1999

This Regulation

Article 24(e)(1) and (2)

Article 30(1) and (2)

Article 24(f)

Article 24(g)

Article 25

Article 26

Article 27(1)

Article 27(2)

Article 28

Article 29

Article 30

Article 31

Article 32

Article 33

Article 34

First subparagraph of Article 35(1)

Second subparagraph of Article 35(1)

Article 35(2)

Article 36

Article 37

Article 38

Annex I

Annex IV

Annex V

Article 31

—

Article 32

Article 34

Article 33

—

Article 35

Article 36

Article 37

Article 38

Article 39

Article 40

Article 41

—

Article 42

—

—

—

Article 43

Annex I

Annex II

—