Document ID: 31995R0454

COMMISSION REGULATION (EC) No 454/95 of 28 February 1995 laying down detailed rules for intervention on the market in butter and cream
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the common organization of the market in milk and milk products (1), as last amended by the Act of Accession of Austria, Finland and Sweden, and in particular Articles 6 (6), 28 and 30 thereof,
Whereas Council Regulation (EEC) No 985/68 of 15 July 1968 laying down general rules for intervention on the market in butter and cream (2), as last amended by Regulation (EEC) No 2045/91 (3), will be repealed with effect from 1 March 1995 by Regulation (EC) No 2807/94 (4); whereas the rules which have not been incorporated into Regulation (EEC) No 804/68 should be included in the detailed rules of application for intervention on the market in butter and cream provided for in Commission Regulation (EEC) No 685/69 (5), as last amended by Regulation (EC) No 393/94 (6); whereas, in view of the number of adjustments to be made to Regulation (EEC) No 685/69 and the many amendments which have already been made to that Regulation, it should be recast in the interests of clarity and transparency; whereas Regulation (EEC) No 685/65 should therefore be repealed;
Whereas the intervention agencies may buy in only butter which complies with the definition and fulfils the conditions laid down concerning quality and presentation; whereas, in view of the technical specifications regarding the determination of butter quality, the quality requirements to be met by butter and the methods of analysis and quality control procedures should be laid down; whereas, however, it should be possible for Member States to set up a system of self-checking on certain conditions;
Whereas the national quality classes for butter remain valid as a condition for eligibility for private storage aid and may also be indicated on the packaging of butter bought into intervention; whereas the relevant national classes must be determined;
Whereas the butter may be bought in by an intervention agency belonging to a Member State other than that on whose territory it was manufactured; whereas provision should be made in these circumstances for a means whereby the intervention agency which does the buying-in can verify that the conditions relating to quality and presentation are complied with, and it should be specified that the distance between the seller's warehouse and the frontier of the Member State where the intervention agency which does the buying-in is situated is not taken into account in calculating the maximum distance for the payment of additional transport costs;
Whereas, in order to ensure the proper functioning of the intervention arrangements, it is necessary to specify the conditions for the approval of manufacturing undertakings and verification of compliance therewith and to strengthen the obligations of the Member States with a view to the proper conservation of butter in storage by providing, in particular, for access to and identification of lots and insurance to cover the risks for the stored produce; whereas it is also necessary, in order to ensure a uniform frequency and level of controls, to specify the nature and number of inspections of storage premises to be performed by the national authorities;
Whereas, in order to ensure that no payment for butter bought in is made unduly, the trial period for the butter should be reduced and it should be specified that compliance with all the conditions laid down must be checked before payment; whereas the possibility afforded to sellers of replacing defective quantities of butter may be abolished without prejudicial consequences for those concerned;
Whereas, to facilitate checks on the presence of products stored under private storage contracts, there should be provision for them to be removed from storage in lots unless the Member State authorizes a smaller quantity;
Whereas, in view of the current situation on the market in butter and cream, the date for the start of private storage operations should be postponed and the maximum storage period reduced; whereas, in order to make administration of the private storage scheme more transparent, the amount of the aid should be fixed annually;
Whereas, for the rest, the provisions concerning intervention measures, including disposal of butter held by the intervention agencies, have proven satisfactory and, subject to certain technical adjustments, may therefore remain unchanged;
Whereas the operative events for the agricultural conversion rate applicable to the public and private storage arrangements are laid down in Regulation (EEC) No 1765/93 (7), as last amended by Commission Regulation (EC) No 267/95 (8);
Whereas the Management Committee for Milk and Milk Products has not delivered an opinion within the time limit set by its chairman,
HAS ADOPTED THIS REGULATION:
Article 1
This Regulation lays down the detailed rules for the application of intervention measures in the milk and milk products sector as provided for in Article 6 of Regulation (EEC) No 804/68.
TITLE I Buying-in and disposal of butter in public intervention
Article 2
Intervention agencies shall buy in only such butter as meets the definition laid down in Article 6 (1) of Regulation (EEC) No 804/68 and the quality requirements in Annex I, and for which the following conditions have been fulfilled:
(a) the quality has been checked in accordance with the analysis methods set out in Annexes I, III and IV hereto and from a sample taken in accordance with the procedure set out in Annex V hereto. However, where quality control is concerned, the Member States may, if the Commission agrees, set up a system of self-checking under their supervision in respect of certain quality requirements and in the case of certain approved undertakings;
(b) the radioactivity levels in the butter do not exceed the maximum levels permitted under Community regulations.
The levels applicable to products of Community origin shall be those fixed in Article 3 of Council Regulation (EEC) No 737/90 (9). The level of radioactive contamination of the product shall be monitored if the situation so requires and during the period necessary only. Where necessary, the duration and scope of the controls shall be determined in accordance with the procedure laid down in Article 30 of Regulation (EEC) No 804/68;
(c) the butter was made during the 14 days preceding the day on which the intervention agency received the offer to sell it;
(d) the minimum quantity, presentation and packaging referred to in Article 4 of this Regulation are complied with.
Article 3
1. Undertakings as referred to in Article 6 (1) of Regulation (EC) No 804/68 shall be approved only if they:
(a) are approved pursuant to Article 10 of Council Directive 92/46/EEC (10) and have the appropriate technical equipment;
(b) undertake to keep permanent records in the form determined by the competent agency of each Member State, listing the origin of the raw materials, the quantities of butter obtained and the market preparation, identification and exit date of each production lot intended for public intervention;
(c) agree to submit their production of butter liable to be offered for intervention to a specific official inspection and, where applicable, to meet the requirements for the national classification referred to in Annex II;
(d) undertake to inform the competent agency responsible for inspection, at least two working days in advance, of their intention to manufacture butter for public intervention. The Member State, however, may set a shorter time limit.
2. To ensure compliance with this Regulation, the competent agencies shall carry out unannounced on-the-spot inspections, on the basis of the intervention butter production schedule of the plants concerned.
These inspections must include at least:
- one inspection per period of 28 days of manufacture for intervention with at least one inspection every six months, to examine the records referred to in paragraph 1 (b),
- one inspection every six months, to verify compliance with the conditions for approval referred to in paragraph 1.
3. Approval shall be withdrawn if the prior conditions laid down in paragraph 1 are no longer satisfied. Approval may be reinstated at the request of the enterprise concerned, after a minimum period of six months, following a thorough inspection.
Where an enterprise is found not to have complied with one of its undertakings as referred to in paragraph 1 (b), (c) and (d), except in cases of force majeure, approval shall be suspended for from one to 12 months depending on the seriousness of the irregularity.
The Member State may decide not to impose the said suspension where it is found that the irregularity was not committed deliberately or as a result of serious negligence and it is of minor importance with regard to the effectiveness of the checks provided for in paragraph 2.
4. A report must be drawn up on the inspections carried out pursuant to paragraphs 2 and 3 specifying:
- the date of inspection,
- its length,
- the operations carried out.
The report must be signed by the inspector responsible.
5. Member States shall inform the Commission of the measures taken with regard to the inspections provided for in paragraphs 2 and 3 within one month of their adoption.
6. Where the butter is offered to intervention in a Member State other than that in which it was produced buying-in shall be subject to the presentation of a certificate supplied by the competent agency of the Member State of production containing the information referred to in Article 4 (4) (a), (b) and (d).
Where the Member State of production has performed the checks referred to in Article 2 (a) the certificate shall also contain the results of those checks. In that case the packaging referred to in Article 4 (3) must be sealed by means of a numbered label issued by the competent agency of the Member State of production. The number must be entered on the certificate.
Article 4
1. The minimum quantity offered shall be 10 tonnes. Member States may provide for butter to be offered by the complete tonne only.
2. The butter shall be made up in blocks of at least 25 kilograms net.
3. The packaging shall be new, of strong material, and so designed as to ensure protection of the butter throughout transportation, storage and marketing.
4. The packaging shall be marked with at least the following, in code where appropriate:
(a) the approval number identifying the factory and the Member State of production;
(b) the date of manufacture;
(c) the date of entry into storage;
(d) the delivery number and package number;
(e) the words 'sweet cream' if the aqueous phase of the butter has the corresponding pH;
(f) the national quality class referred to in Annex II, where this is required by the Member State of production.
Member States may specify that if the person responsible for the storage depot undertakes to keep records in which the information specified in the previous subparagraph is inserted on the day of entry into storage, the obligation to mark the date of entry into store on the packaging shall not apply.
5. The intervention agency shall record the day on which the offer of sale was received, the corresponding quantities and dates of manufacture and the place where the butter offered is stored. After checking the details of the offer the intervention agency shall without delay issue a dated and numbered delivery order indicating:
(a) the quantity to be delivered;
(b) the timetable for delivery;
(c) the cold stores to which delivery must be made.
Article 5
1. For the purposes of this Title, the day of taking over shall be the day of entry of the butter into the cold store designated by the intervention agency but no earlier than the day following that on which the delivery order was issued. The butter shall be paid for between the 45th and the 65th day after the day of taking over, provided compliance with the requirements set out in Article 2 is verified.
2. The butter shall be put through a storage test period. This period shall be fixed at 30 days starting from the day of taking over.
3. By his offer the seller shall undertake that, where the inspection on entry into the store designated by the intervention agency shows that the butter does not meet the requirements laid down in Article 2, or where, at the end of the storage test period, the minimum organoleptic quality of the butter proves to be below that set in Annex I:
- he will take back the butter in question,
- he 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.
Such storage costs shall be payable at a flat rate per tonne as follows:
(a) ECU 28,00 for fixed costs;
(b) ECU 0,45 per day of storage for cold storage costs.
The amounts shall be credited to the account of the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section.
Article 6
1. The Member States shall lay down technical standards, providing for in particular a storage temperature of not more than 15 °C, for the cold stores referred to in the third subparagraph of Article 6 (1) of Regulation (EEC) No 804/68 and shall take any other measures needed to ensure the proper conservation of the butter. The relevant risks shall be covered by insurance in the form either of a contractual obligation on storers or of a comprehensive coverage of the liability borne by the intervention agency; the Member States may also act as their own insurers.
2. The intervention agencies shall require that butter is placed and kept in storage on pallets and in easily identifiable and readily accessible lots.
3. The competent agency responsible for checks shall also perform the unannounced check on the presence of the products in store as provided for in Article 4 of Commission Regulation (EEC) No 618/90 (15).
Article 7
1. The intervention agency shall choose the available cold storage depot nearest to the place where the butter is stored.
However, provided that the choice of another cold storage depot does not result in additional storage costs it may:
(a) choose another depot situated within the distance referred to in paragraph 2;
(b) choose a storage depot situated beyond that distance if the resulting expenditure, inclusive of storage and transport costs, is smaller. In this case the intervention agency shall notify the Commission of its choice forthwith.
2. The maximum distance referred to in the fourth subparagraph of Article 6 (1) of Regulation (EEC) No 804/68 shall be 350 km. Beyond that distance, the additional transport costs borne by the intervention agency shall be ECU 0,065 per tonne and per kilometre.
However, where the intervention agency 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, for calculating the maximum distance referred to in paragraph 2 of this
Article, of the distance between the store of the vendor and the border of the Member State of the purchasing intervention agency.
3. The additional charges referred to in paragraph 2 shall be borne by the intervention agency only if the temperature of the butter does not exceed 6 °C on arrival at the depot.
Article 8
1. At the time of removal from store the intervention agency shall, in the case of delivery ex-cold store, make the butter available on pallets at the store's loading bay loaded, where appropriate, on to the means of transport where this is a lorry or a railway wagon. The costs involved shall be borne be the intervention agency and any stowage and depalletizing costs shall be borne by the purchaser of the butter.
2. Where butter is supplied as food aid paragraph 1 shall apply.
3. Other provisions on the disposal of butter held by intervention agencies shall be determined case-by-case.
TITLE II Aid for private storage of butter or cream
Article 9
Contracts relating to the private storage of butter or cream as referred to in Article 6 (2) of Regulation (EEC) No 804/68 shall be concluded between the intervention agencies of the Member States and natural or legal persons, hereinafter called 'contractors'.
Article 10
1. A private storage contract may be concluded only if the butter or cream referred to in Article 6 (2) of Regulation (EEC) No 804/68 was manufactured in an undertaking approved in accordance with Article 3 (1) during the 28 days preceding the day of commencement of contractual storage. The butter must correspond to the national quality class of the Member State of production referred to in Annex II and must not exceed the maximum permitted levels of radioactivity referred to in Article 2 (b).
A storage contract may not be concluded for butter or cream:
(a) in respect of which an application for a direct consumption aid has been made under other Community provisions;
(b) which has been placed under the procedure referred to in Article 5 (1) of Council Regulation (EEC) No 565/80 (16); subsequent placing under this procedure shall be regarded as removal from store within the meaning of paragraph 7.
2. For the purposes of this Regulation a lot shall be a quantity of butter or cream weighing at least one tonne and of homogeneous composition and quality from a single approved undertaking, taken into storage in a single warehouse on a single day.
3. Where the butter is stored in a Member State other than the Member State of production conclusion of the storage contract shall be conditional on the presentation of a certificate supplied by the competent agency of the Member State of production containing the information specified in paragraph 6 (a), (b) and (d) and confirming that the butter corresponds to the national quality class of the Member State of production, as referred to in Annex II.
4. Storage contracts shall be concluded in writing for one or more lots and shall include, in particular, provisions concerning:
(a) the quantity of butter or cream to which the contract applies;
(b) the amount of the aid, without prejudice to Article 16;
(c) the dates relating to the execution of the contract, taking account of the second sentence of the fourth subparagraph of Article 6 (2) of Regulation (EEC) No 804/68;
(d) the identity of the cold stores.
5. The control measures, particularly those referred to in Article 11, and the information referred to in paragraph 6 shall be the subject of specifications drawn up by the intervention agency of the Member State of storage. The storage contract shall refer to these specifications.
6. The specifications shall provide that the packaging of each lot is to bear at least the following information, which may be coded:
(a) the approval number identifying the factory and the Member State of manufacture;
(b) the date of manufacture;
(c) the date of entry into store;
(d) the number of the lot;
(e) the word 'salted' in the case of butter as referred to in the third indent of the first subparagraph of Article 6 (2) of Regulation (EEC) No 804/68;
(f) the national quality class referred to in Annex II;
(g) the net weight.
Member States may provide that the obligation to indicate the date of entry into store on the packaging does not apply if the store manager undertakes to keep a register in which the particulars referred to in the preceding subparagraph will be entered on the date of entry into store.
7. The day of commencement of contractual storage shall be the day following that of entry into store. The last day of contractual storage shall be the day before that of removal from storage.
Applications for aid by storers may relate only to lots of butter or cream the entry into store of which has been completed.
Applications must reach intervention agencies within at most 30 days of the date of entry into store. Intervention agencies shall register their dates of arrival. However, where the application reaches the intervention agency within five working days following the abovementioned deadline the storage contract may be concluded but the aid will be reduced by 30 %.
Storage contracts shall be concluded within at most 30 days of the date of registration of the application.
In the case referred to in paragraph 3, storage contracts shall be concluded within at most 60 days of the date on which the application is registered.
Article 11
1. The Member State shall ensure that all the conditions granting entitlement to payment of the aid are fulfilled.
2. The contractor shall make available to the competent agency reponsible for verifying execution of the measure any documentation permitting the following particulars of products placed in private storage to be verified:
(a) the approval number identifying the factory and the Member State of manufacture;
(b) the date of manufacture;
(c) the date of entry into storage;
(d) the lot number;
(e) presence in the store;
(f) the date of removal from storage.
3. The contractor or, where applicable, in his place the operator of the store shall for each contract keep stock records available at the store, covering:
(a) identification, by lot number, of the products placed in private storage;
(b) the dates of entry into and removal from storage;
(c) the quantity of butter or cream, indicated per lot;
(d) the location of the products in the storeroom.
4. Products stored must be easily identifiable, easily accessible and identified individually by contract.
5. On entry into storage or during the 21-day period following the date on which the aid application was registered, the competent agency shall conduct checks to ensure that products stored are eligible for aid. These checks shall involve checking the weight and identity of the products, as well as checking their nature by sampling.
6. The national authorities responsible for checks shall undertake:
(a) - either the sealing of the products by contract, lot or smaller quantity at the time of the checks provided for in paragraph 5,
- or an unannounced check, by sampling, to see that the products are present in the storeroom. The sample concerned must be representative and must correspond to at least 10 % of the overall quantity under contract for a private storage aid measure;
(b) a check, by sampling, to verify the weight and identity of the products when they leave the store. For this purpose the storer shall inform the competent agency at least five working days before the start of removal operations, indicating the lots to be removed. The Member State, however, may accept a shorter time limit.
7. Checks conducted pursuant to paragraphs 5 and 6 must be the subject of a report stating:
- the date of the check,
- its duration,
- the operations conducted.
The report must be signed by the inspector responsible.
8. In the case of irregularities affecting at least 5 % of the quantities of products subjected to the checks, the latter shall be extended to a larger sample to be determined by the competent agency.
Article 12
1. Private storage aid as provided for in Article 6 (2) of Regulation (EEC) No 804/68 may be granted only where the storage period is at least 90 days. The amount of the aid may not exceed an amount corresponding to a storage period of 210 days.
2. Entry into store may take place only between 15 April and 15 August of the same year. Removal from store may take place only from 16 August of the year of storage.
3. Private storage aid may be granted only where the storage period is at least 90 days. Removal from store shall be in whole lots or, if the competent agency so authorizes, in smaller quantities. However, in cases as referred to in the first indent of
Article 11
(6) (a) only a sealed quantity may be removed from store.
4. The amount of the aid referred to in Article 6 (2) of Regulation (EEC) No 804/68 shall be determined each year in accordance with the procedure laid down in Article 30 of that Regulation for private storage contracts which commence during that year.
If the market situation so requires, the amount of the aid, the periods of entry to and removal from storage and the maximum length of storage may be altered during the year in respect of contracts still to be concluded.
5. The aid shall be paid on application by the interested party at the latest within 120 days of the last day of contractual storage. However, if it has been necessary to commence an administrative inquiry into entitlement to the aid, payment shall not be made until entitlement has been recognized.
After 60 days of contractual storage a single advance payment of the aid may be made at the storer's request, on condition that 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 120 days.
Article 13
1. Where, at the end of the first 60 days of storage, the deterioration in the quality of the butter or cream is greater than is normal in store, contractors may be authorized, once per lot, to replace the defective quantity, at their own expense, by an equal quantity of butter or cream as specified in Article 6 (2) of Regulation (EEC) No 804/68.
2. In the case referred to in paragraph 1, for the purpose of calculating the aid, the first day of contractual storage shall be the day of commencement of storage indicated in the contract in accordance with the first subparagraph of Article 10 (7).
Article 14
1. As regards butter and by way of derogation from Article 12 (3), on the expiry of a period of contractual storage of 60 days, the contractor may release from storage one or more lots under contract, or a smaller quantity if the competent agency authorizes this, provided that within 60 days following its release from storage, the butter, as such or after processing into butteroil:
- has left the customs territory of the Community,
- has reached its destination in the cases referred to in Article 5 (1) of Commission Regulation (EEC) No 365/87 (19), or
- has been placed in a victualling warehouse approved pursuant to Article 38 of Regulation (EEC) No 3665/87.
The contractor shall inform the intervention agency thereof at least five working days before the commencement of stock release operations, indicating the quantities intended for export. The Member State, however, may accept a shorter time limit.
2. In the case referred to in paragraph 1:
(a) evidence of export shall be provided as in the case of refunds, pursuant to Regulation (EEC) No 3665/87;
(b) the aid determined in accordance with Article 12 (4) shall be calculated by reference to the reduction in the duration of storage;
(c) if the time limit of 60 days referred to in paragraph 1 is not complied with, the amount of the aid for the quantity in question shall be reduced by 15 %, and by an additional 5 % in respect of the part remaining per day by which the 60-day period is exceeded;
(d) the security referred to in the second subparagraph of Article 12 (5) shall be released once evidence of export is provided pursuant to (a), minus an amount corresponding to the reduction in the aid as referred to in (b).
Article 15
1. Aid for the storage of cream may be granted only for pasteurized cream the fat content of which is not less than 35 % and not more than 80 %.
However, Member States may permit contractors to undertake voluntarily to observe, for all lots of all contracts concluded during the milk year, a single minimum fat content fixed in advance within the limits specified in the preceding subparagraph.
2. For the purpose of calculating the aid the quantities of cream shall be converted into butter equivalent by reference to butter with a fat content of 82 % by multiplying the fat content of the cream by 1,20.
3. The fat content specified in the first subparagraph of paragraph 1 shall be checked prior to freezing of the cream by a laboratory approved by the competent agency.
4. Where the second subparagraph of paragraph 1 is applied, the aid shall be granted on the basis of the minimum fat content fixed in advance.
In such cases Member States shall check the fat content in accordance with paragraph 3 by random sampling in the course of frequent unannounced visits.
If such a check reveals a minimum fat content lower than that fixed in advance the following provisions shall apply to all lots taken into store since the last satisfactory check:
(a) no aid shall be paid for these lots. However, if that fat content is found to be less than 2 % lower than the minimum content fixed in advance, the aid shall be paid on the basis of the fat content found but 10 % of the amount shall be deducted;
(b) the second subparagraph of paragraph 1 shall not be applicable to the storer concerned for the remainder of the storage period.
Article 16
Where the maximum buying-in price fixed by invitation to tender in accordance with Commission Regulation (EEC) No 1589/87 (20) expressed in national currency and applying on the day of commencement of contractual storage:
(a) is higher than that applying on the last day of contractual storage, the aid determined in accordance with Article 12 (4) shall be increased by an amount equal to any reduction in the maximum buying-in price in excess of 2 % of the price applying on the day of commencement of contractual storage;
(b) is lower than that applying on the last day of contractual storage, the aid determined in accordance with Article 12 (4) shall be reduced by an amount equal to any increase in the maximum buying-in price in excess of 2 % of the price applying on the day of commencement of contractual storage. However, the reduction in the aid may not exceed the total aid.
Article 17
Regulation (EEC) No 685/69 is hereby repealed. However, it shall continue to apply to private storage contracts concluded before the entry into force of this Regulation.
References to Regulation (EEC) No 685/69 shall be understood as references to this Regulation.
Article 18
This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.
It shall apply from 1 March 1995.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 28 February 1995.

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