CELEX: 21975A0114(01)
Language: en
Date: 1974-10-21 00:00:00
Title: Agreement between the European Economic Community and the Republic of India on the supply on butteroil and butter as food aid

14 . 1 . 75                         Official Journal of the European Communities                            No L 9/ 15
                                                    AGREEMENT
              between the European Economic Community and the Republic of India on the
                                     supply of butteroil and butter as food aid
              THE COUNCIL OF THE EUROPEAN COMMUNITIES,
              of the one part,
              THE GOVERNMENT OF THE REPUBLIC OF INDIA,
              of the other part,
              HAVE DECIDED to conclude this Agreement, and to this end have designated as their Plenipoten­
              tiaries :
              THE COUNCIL OF THE EUROPEAN COMMUNITIES :
              THE GOVERNMENT OF THE REPUBLIC OF INDIA :
              WHO HAVE AGREED AS FOLLOWS :
                         Article I                                                   Article IV
The European Economic Community, hereinafter                  The country of destination undertakes to use the
referred to as the 'Community', shall supply by way of         products received as aid for purposes of consumption
gift to the Republic of India, hereinafter referred to as      and to apply, for the sale of the products on its
the 'country of destination ', a quantity of 3 000 metric      market, the prices normally charged on that market
tons of butteroil either entirely in the form of               for products of comparable quality.
butteroil, or partly in the form of butteroil and partly
in the form of butter in proportions agreed between           The proceeds of this sale, evaluated on a lump sum
the Community and country of destination . The                basis by agreement between the Community and the
quality and the packaging of the products are speci­           country of destination shall be entered as revenue in
fied in Annex I, which forms an integral part of this          the budget of the central government of that country
Agreement.                                                     and used for the financing of development projects
                                                              which shall be communicated by the country of desti­
                                                               nation and which shall not give rise to any observa­
                        Article 11
                                                               tion on the part of the Community.
Deliveries   shall   be made     in accordance with   the
arrangements set out in Annex II which forms an inte­                                Article V
gral part of this Agreement.
                                                              The Contracting Parties undertake to implement this
                                                              Agreement in such a way as to avoid any prejudice to
                        Article III
                                                               the normal structure of domestic production and inter­
The country of destination undertakes to make all the          national trade . To this end, they shall take any
necessary arrangements for the transport and insur­            measures required to ensure that aid supplies are in
ance of the delivered products from the point of               addition to, and do not replace, commercial transac­
delivery to their places of destination .                      tions which might reasonably be expected in the
                                                               absence of such supplies .
It undertakes to exercise the greatest care to ensure
that the tendering arrangements for sea transport do                                 Article VI
not prejudice the free play of competition . Any
problems arising in this connection shall be the               The country of destination shall take all appropriate
subject of consultations under Article VIII .                  measures to prevent :
 ---pagebreak--- No L 9/ 16                         Official Journal of the European Communities                           14. 1 . 75
— the re-export of the products received as aid and              have been sold, selling prices ; normal selling costs
     of products derived from them ;                             on the market of the country of destination ; insur­
— the export, commercially or otherwise, within six              ance costs and, where appropriate, transport costs
     months from the date of the last delivery, either of        from the port of discharge to the places of destina­
     products obtained locally of the same kind as               tion ;
     those received as aid or of any products derived
     from them .                                             3 . on 15 January every year until the completion of
                                                                 the development projects : progress achieved in the
                       Article VII                               project or projects, with an indication of the total
                                                                 amount of financing carried out at that stage.
The country of destination undertakes to inform the
Community of the circumstances surrounding the
implementation of this Agreement. For this purpose it                              Article VIII
shall provide the Commission of the European
Communities with the following details :                     At the request of either of them, the Contracting
1 . immediately after the discharge of each cargo : port     Parties shall consult each other on any questions
    and date of arrival of vessel ; nature, quantity and     concerning the implementation of this Agreement.
    any observations as to quality of the products
    discharged ; date on which discharge was                                         Article IX
    completed ; costs of sea transport and of insurance
    relating thereto ;
                                                             This Agreement is drawn up in duplicate in the
2. every three months until the quantities received as       Danish, Dutch, English, French, German and Italian
    aid have been fully used : quantities sold, how they     languages, each of these texts being authentic.
 ---pagebreak--- 14. 1 . 75                           Official Journal of the European Communities                                  No L 9/ 17
                                                           ANNEX I
                                                       A. BUTTEROIL
                                      QUALITY AND PACKAGING REQUIREMENTS
            I. Quality
                (a) Product characteristics :
                     Concentrated milk fat containing no less than 99.8 % of pure fats.
                (b) Standard composition :
                     (Analysis made at time of manufacture and packing) :
                     — moisture and non-fat ingredients of milk : not more than 0.2 % ;
                     — fats : not less than 99.8 % ;
                     — free fatty acids : not more than 0-5 % (expressed as oleic acid) ;
                     — peroxide level/kg : not more than one unit (in milliequivalents of active oxygen per kg) ;
                     — taste : pure ;
                     — smell : absence of smell extraneous to butteroil .
           II . Conditions of packaging
                (a) Metal cans of 20 kg — one can per carton .
                (b) Marking on the packaging (in English) :
                      BUTTEROIL — GIFT OF THE EUROPEAN ECONOMIC COMMUNITY TO THE REPU­
                      BLIC OF INDIA .
                                                          B. BUTTER
                                       QUALITY AND PACKAGING REQUIREMENTS .
            I. Quality
                 1 . Unsalted butter
                     — milkfat content not less than 82 % ;
                     — water content not more than 16 % ;
                     — must be obtained from pasteurized sour cream .
                 2 . Salted butter
                     — milkfat content not less than 80 % ;
                     — water content not more than 16 % ;
                     — salt content from 0.5 % to 2 % ,
                     — must be obtained from pasteurized cream (sweet).
           II . Conditions of packaging
                (a) In 25 kg blocks .
                (b) Packaging to be of resistant materials, designed to ensure protection of the butter throughout
                      transport, warehousing and distribution .
                (c) Marking on the packaging (in English) :
                      BUTTER — GIFT OF THE EUROPEAN ECONOMIC COMMUNITY TO THE REPU­
                      BLIC OF INDIA .
 ---pagebreak--- No L 9/ 18                              Official Journal of the European Communities                                     14 . 1 . 75
                                                              ANNEX II
                                                    DELIVERY PROCEDURES
                         CHAPTER I                                                             Article 5
                                                                   Where it is impossible for the Community to supply all or
                     General provisions                            part of the goods on the date and within the time limits
                                                                   provided for in Article 6, the agents of the Community and
                            Article 1                              of the country of destination may, without prejudice to
                                                                   Article 4, agree on a new date and a new time limit for
Delivery shall be effected and all risk shall pass from the        delivery.
Community to the country of destination at the moment at
which the goods are put down at the - point of exportation
named by the Commission of the European Communities at                                       CHAPTER III
the berth specified by the country of destination or its agent
referred to in Article 2 and under the terms specified in this
Annex . Without prejudice to Articles 7 and 8 the Commu­                     Obligations of the country of destination
nity shall bear all costs prior to delivery and the country of
destination all costs after delivery.                                                           Article 6
                                                                    After contacting the Community, the country of destination
                            Article 2                               shall procure, to transport all the quantities provided for in
                                                                    Article I of the Agreement, one or more vessels of dimen­
For the purpose of implementing the provisions of this              sions corresponding to the normal capacity of the port of
Annex the Community shall appoint — if necessary for each           shipment ; these vessels must be ready for loading on a date
consignment — an agent whose name and address it shall              falling within the period referred to in Article 3 .
make known to the country of destination immediately
following his appointment. For each port of shipment the            The agent of the country of destination shall inform the
country of destination shall appoint an agent whose name            Community of this date and of the date for commencement
and address it shall make known to the Community with all           of delivery as soon as he knows them , if possible 20 days in
dispatch and if possible before the appointment of the agent        advance and in any case 10 days before the date for
of the Community .                                                  commencement of delivery.
                                                                    He shall establish with the agent of the Community the sche­
                            Article J                               dule according to which delivery shall take place .
Before implementing the procedure for appointing the agent                                      Article 7
of the Community referred to in Article 2, the Commission
of the European Communities and the country of destination          Where the country of destination is unable to begin loading
shall establish by joint agreement the period during which          on the date provided for in the first paragraph of Article 6,
delivery must begin .                                               the agent of the country of destination shall inform the agent
                                                                    of the Community without delay .
                         CHAPTER II
                                                                    In this event the agents of the Community and of the
                                                                    country of destination may agree on a new date for the
                                                                    commencement of delivery and , if applicable, a new sche­
              Obligations of the Community                          dule. Save in cases of force majam■ the costs arising from the
                                                                    delay in loading shall be borne by the country of destination .
                             Article 4
                                                                    Should the new date be more than 30 clear days after the
                                                                    date for loading provided for in the first paragraph of Article
Where the Community is not in a position to carry out
                                                                    6 , the Community may dispose of the goods without preju­
delivery on the date, and , if applicable, according to the sche­
                                                                    dice to its commitment under Article I of this Agreement .
dule laid down in Article 6, all costs arising for the country
of destination — in particular demurrage void freight and
dead freight — shall be borne by the Community.                                                 Article 8
The charges and the arrangements relating to demurrage laid         Where the quantity intended for loading on a vessel cannot
down in the contract concluded between the country of desti­        be loaded on board in its entirety, the country of destination
 nation and the carrier must have previously been agreed by         shall inform the Community as soon as possible, and no
 the country of destination and the agent of the Community.         later than 15 clear days after loading has been completed ,
                                                                    whether it intends to accept or to renounce the balance .
The other costs referred to in the first subparagraph shall be
 refunded by the Community only if they have been paid by            In the former case the second and third paragraphs of Article
 the country of destination with the approval of the Commu­         7 shall apply to the balance, if delivery has not yet taken
 nity.                                                               place .
 ---pagebreak--- 14 . 1 . 75                         Official Journal of the European Communities                               No L 9 / 19
In the latter case the Community may consider that it has                                Article 9
discharged its commitment to the country of destination
under Article I of this Agreement and shall bear the costs
resulting from renunciation .                                   Upon delivery, of the goods, the country of destination shall
                                                                hand over to the agent of the Community a certificate of
In any event, after an interval of 15 clear days and in the     acceptance stating the port of shipment, date of acceptance
absence of any notice on the part of the country of destina­    and the nature and quantity of the goods accepted, together
tion , renunciation shall be deemed to have taken place .      with any comments on the quality of the goods.
                Information on the signing of the Agreement between the European Economic
                        Community and the Republic of India on the supply of food aid
                The Agreement between the European Economic Community and India on the supply of
                butteroil and butter as food aid , which the Council decided to conclude on 21 October
                1974, was signed in Brussels on 24 October 1974, on behalf of the Council of the Euro­
                pean Communities by :
                Mr Etienne Burin des Roziers, Ambassador Extraordinary and Plenipotentiary, Chairman
                of the Permanent Representatives Committee, and
                Mr Hans-Broder Krohn , Director-General for Development and Cooperation at the
                Commission of the European Communities,
                and on behalf of the Republic of India by :
                Mr Krishen Behari Lall , Ambassador Extraordinary and Plenipotentiary, Head of the
                Indian Mission to the European Economic Community.