31971R1280

Official Journal of the European Communities 381

No L 133/34 Official Journal of the European Communities 19.6.71

REGULATION (EEC) No 1280/71 OF THE COMMISSION of 18 June 1971 laying down detailed rules for the buying-in of sugar by intervention agencies

THE COMMISSION OF THE EUROPEAN COM­ detailed rules for intervention buying should MUNITIES, therefore be brought together in a new Regulation ;

Having Regard to the Treaty establishing the Whereas Regulation (EEC) No 447/68 lays down in European Economic Community; particular that, for an offer to be valid, the sugar must be stored in an approved warehouse when the Having regard to Council Regulation (EEC) No offer is made and that provision may be made for the 1009/671 of 18 December 1967 on the common intervention agency to buy in sugar offered by a organisation of the market in sugar, as last amended specialised trader approved by the Member State on by Regulation (EEC) No 1060/71 ,2 and in particular whose territory he is established ; Article 9 (8 ) and 10 (3 ) thereof; Whereas, for determination of the conditions for Whereas Council Regulation (EEC) No 447/683 of 9 granting and withdrawing approval of warehouses, April 1968 laying down general rules for intervention account should be taken of geographical location and buying of sugar, as last amended by Regulation of the need for the sugar to be kept in good (EEC) No 2274/70,4 apart from provisions of a condition and easily accessible for collection ; general character, provides in particular for the whereas, however, for special cases, provision for a possibility of an intervention agency making relaxation of these conditions is justified; acceptance of an offer for intervention conditional on the conclusion of a storage contract between itself Whereas the extension of the intervention system to and the seller and for the possibility of authorising specialised traders requires, for the granting and that agency to buy in sugar offered by an approved withdrawal of approval, the laying down of objective specialised trader in the sugar market; whereas criteria for the assessment of that activity, in detailed rules, of application in this field adopted by particular as regards a significant participation in the Commission Regulation (EEC) No 782/68 5 of 26 sugar trade; whereas Member States should be June 1968 laying down detailed rules of application allowed to impose further conditions if necessary and for the buying-in of sugar by intervention agencies, as to withdraw approval if the further conditions are last amended by Regulation (EEC ) No 2101 /69 6 ; not satisfied ; whereas Regulation (EEC) No 782/68 has already Whereas sugar of a nature likely to cause difficulties been amended on several occasions and whereas in its eventual disposal and to lead to deterioration further . amendments are now necessary, having during storage should not be accepted for regard in particular to the change in the standard intervention ; quality as laid down by Council Regulation (EEC) No 1061 /71 of 25 May 1971 fixing, for the 1971 /72 Whereas to facilitate the regular administration of marketing year, the prices for sugar, the standard intervention, sugar should be offered by lots and a qualities for white sugar and for beet and the lot should be defined, in particular by fixing coefficient referred to in Article 24 of Regulation No maximum and minimum quantities per lot; 1009/67/EEC7; whereas, in the interests of clarity, the Whereas the intervention agency must have all the relevant information to determine whether the offer 1 OJ No 308 , 18.12.1967, p. 1 . fulfils the necessary conditions ; whereas, to that end, 2 OJ No L 115, 27.5.1971 , p. 16. the offerer must supply it with all necessary 3 OJ No L 91 , 12.4.1968 , p. 5 . information ; 4 OJ No L 246, 12.11.1970 , p. 3 . 5 OJ No L 145 , 27.6.1968 , p . 6. Whereas the intervention agency is entitled to make 6 OJ No L 268 , 25.10.1969, p. 19. acceptance of the offer conditional upon the 7 OJ No L 115 , 27.5.1971 , p . 17. conclusion of a storage contract with the seller,

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should it consider this necessary ; whereas, for the Whereas the measures provided for in this Regulation sake of uniformity, the essential terms of that are in accordance with the Opinion of the contract, in particular those concerning the period of Management Committee' for Sugar ; validity, should be established;

Whereas approved warehouses must offer the best HAS ADOPTED THIS REGULATION : conditions for storage of the sugar and whereas it is generally accepted that sugar may be stored, if the requisite conditions are fulfilled, for a period of some . TITLE I twelve months without risk of deterioration ; whereas , therefore, in the case of a storage contract with the Approvals seller, within the meaning of Article 2 (2) of Regulation (EEC) No 447/68, the seller should , regardless of the moment of transfer of ownership, Article 1 remain responsible for the quality of the sugar in question for a period not exceeding twelve months ; 1 . The approval provided for in Article 1 (2) of Regulation (EEC) No 447/68 shall be given only for Whereas Regulation No 1009/67/EEC provides in a warehouse which : Article 9 ( 8 ) that within the detailed rules of application should be included the adoption of scales ( a) meets the requirements for keeping sugar in good of price increases and reductions, by reference to the condition ; quality of the sugar offered, applicable to the intervention prices ; whereas, for the determination of ( b) is able to guarantee a discharging capacity those scales , sugar must therefore be classified sufficient for the removal of the sugar; according to its quality ; whereas this classification ( c) is situated in a place which provides the transport and the price increases and reductions resulting facilities necessary for the removal of the sugar, therefrom may be determined on the basis of the and objective data generally used in commercial transactions ; (d ) is situated within the precincts of a sugar refinery or in a sugar-producing area . Whereas to avoid any discrimination in the treatment of the parties concerned and taking into account the 2. On application by the party concerned, administrative practices current in the Member States, approval shall be given for any warehouse which, in uniform conditions should be laid down for payment the opinion of the intervention agency, satisfies the and for collection of the goods, with or without conditions set . out in paragraph 1 . Approval may storage contract, in particular as regards the however be restricted to warehouses which have maximum time limits within which these operations already been used for sugar storage. are to be effected ; In special cases, approval may be given to a Whereas it may be found necessary, for the sugar warehouse which does not satisfy the conditions set offered for intervention to be packed in bags, having out in paragraph 1 ( d). regard to its subsequent destination ; whereas the intervention agency should therefore be enabled to The approval shall indicate the storage capacity and require certain forms of packing generally used in the the discharging capacity provided for under the terms trade, on condition that it bears the costs ; whereas of that approval. the costs relating to the packaging required should be fixed at a flat rate ; 3 . The approval shall be withdrawn if the Whereas Commission Regulation (EEC) No 1265/691 conditions set out in paragraph 1 ( a) or ( c) are no longer satisfied. of 1 July 1969 establishing methods for determining the quality of sugar bought in by intervention agencies was restricted to the technical aspects of The approval may be withdrawn if the discharging those methods ; whereas , moreover, since those capacity provided for under the terms of the approval methods cannot provide strictly accurate results, a has not been made available to the intervention margin of error must be allowed for;, whereas , agency . moreover, suitable arbitration procedures , should ' be introduced for settling any disputes arising from the comparison of conflicting results of analyses ; Article 2

1 . For the purposes of the second subparagraph of 1 OJ No L 163 , 4.7.1969 , p . 1 . Article 2 ( 1 ) of Regulation (EEC) No 447/68 , a

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'specialised trader' in the sugar market, means a In addition, trader : ( a) raw cane sugar shall have a safety coefficient not ( a) one of whose principal activities is wholesale exceeding 0-30 ; sugar trading and who buys a minimum of 10 000 metric tons of Community sugar per (b) raw beet sugar shall have : marketing year; — a ph factor not less than 7-9 ; (b) who does not engage in the retail sale of sugar. — an invert sugar content not exceeding 0-7% ;

— a temperature which does not entail any risk 2. Subject to the provisions of paragraph 3 , the of deterioration ; approval provided for in the second subparagraph of Article 2 ( 1 ) of Regulation (EEC) No 447/68 shall be — a safety factor not exceeding 0-45 when the given by the Member State concerned to all degree of polarisation is 97 or above; or applicants who satisfy or are considered capable of satisfying the conditions set out in paragraph 1 for — a moisture content not exceeding 1-4% when the marketing year in question. The approval shall be the degree of polarisation is below 97. valid only for a specified marketing year. It shall be renewed for the following marketing year if the The safety factor shall be determined by dividing the applicant can still be considered a specialised trader percentage moisture content of the sugar in question for the marketing year in question. The person by the difference between 100 and the degree of concerned shall be advised of the renewal . polarisation of that sugar.

The approval shall be withdrawn if the person concerned is no longer able to satisfy the conditions set out in paragraph 1 . Article 4

1 . All sugar offered for intervention shall be in 3 . A Member State may impose further conditions lots . for the granting of approval. 2. For the purposes of this Regulation 'lot' means The approval may be withdrawn if these conditions a quantity of sugar of at least 300 metric tons and at are not fulfilled . most 1 000 metric tons of the same quality, having the same type of packing and stored in the same place. TITLE II

Offers Article 5

1 . An offer made to the intervention agency shall Article 3 indicate :

Sugar offered for intervention shall satisfy the ( a) the name and address of the offerer ; following criteria : (b) the warehouse in which the sugar is stored at the time the offer is made; 1 . it shall be in crystal form; (c) the discharging capacity which is guaranteed for 2. in the case of white sugar, it shall be of sound and the removal of the sugar offered ; fair marketable quality, free flowing, with a maximum moisture content of 0-06% ; (d) the net quantity of sugar offered ;

(e) the nature and quality of sugar offered ; 3 . in the case of raw sugar, it shall be of sound and fair marketable quality with a yield, calculated (f) the type of packing; according to the provisions of Article 1 of Regulation (EEC) No 431/68 ,1 of not less than (g) whether the offerer is prepared to conclude a 89% . storage contract for the sugar offered .

2. The intervention agency may demand further 1 OJ No L 89, 10.4.1968 , p. 3 . information.

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Article 6 2. The period of validity for a storage contract shall not exceed : 1 . The offer shall be valid for a period of three ( a ) for offers accepted between 1 October and the weeks from the date of its submission . It may following 30 June : however be withdrawn during that period with the consent of the intervention agency. the period between acceptance of the offer and the following 30 September ; 2 . The intervention agency shall . examine the offer. ( b ) for offers accepted between 1 July and the It shall accept the offer not later than the end of the following 30 September : period referred to in paragraph 1 , indicating whether the period between acceptance of the offer and a storage contract is to be concluded. the end of the fourth month following that in which the offer was accepted . The intervention agency shall however reject the offer : However, the contracting parties may agree upon a longer period of validity. — if examination shows that one of the requisite conditions has not been fulfilled ; or 3 . Notwithstanding paragraph 2, — if the offerer has not declared his readiness to (a) for all regions of Italy and . for the French conclude a storage contract and if the Department of Reunion, there shall be intervention agency considers such a contract substituted : necessary . — the date of 1 July, for 1 October; For the purposes of this Regulation ' storage contract' — the date of 31 March, for 30 June ; means the contract referred to in Article 2 (2) of Regulation (EEC ) No 447/68 . — the date of 30 June, for 30 September ;

— the date of 1 April , for 1 July ; 3 . The buying-in contract shall specify whether the sugar bought in is loose or packed. If necessary it ( b ) for the French Departments of Guadeloupe and may moreover reserve the right for the intervention Martinique there shall be substituted : agency to demand on removal one or more of the — the date of 1 January, for 1 October; types of packaging set out in Article 17 (2). — the date of 30 September, for 30 June ; 4. The fcuying-in contract may be cancelled only — the date of 31 December, for 30 September ; by common consent and before removal of the sugar. — the date of 1 October, for 1 July.

4. Storage costs shall be borne by the intervention agency ' for the period from the beginning of the TITLE III ten-day period for the provisional payment for the sugar to the expiry date of the storage contract. Storage contracts The storage costs shall be fixed at a flat rate of 0-017 units of account per 100 kilogrammes per ten-day Article 7­ period. The intervention agency may however increase or decrease this amount by a maximum of 35% . 1 . The storage contract shall lay down in particular : 5 . For the purpose of this Article, a 'ten-day ( a) the period for which the contract is concluded ; period' means, -for each calendar month, one of the periods from 1 to 10, from 11 to 20 and from 21 to (b ) the right of the intervention agency to cancel the the end of the month. contract subject to ten days' notice taking effect from the end of a ten day period ; Article 8 (c) the amount of storage costs which are chargeable to the intervention agency; 1 . Transfer of the ownership of sugar which is the (d) the obligation of the seller to load the sugar at subject of a storage contract shall take place at the his own expense onto a means of transport same time as the provisional payment for the sugar in indicated by the intervention agency. question.

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2. The seller shall remain responsible up to the 2. One point shall correspond to : time of removal for the quality of the sugar referred (a) 0-0018% ash "content determined according to the to in paragraph 1 . ICUMSA Method at 28° Brix ; (b) 0-5 units of colour type, determined according to Article 9 the Brunswick Method ;

(c) 7-5 units of the solution colour determined If during the storage contract it is established that the according to the ICUMSA Method. sugar does not fulfil the minimum quality requirements set out in Article 3 , the seller shall forthwith replace the quantity of sugar in question 3 . Grade 3 sugars shall have the following characteristics : with an equal quantity of sugar which does fulfil those requirements . ( a) sound, genuine and marketable quality, dry, in homogenously granulated crystals, flowing freely; (b) minimum polarisation : 99*7% S ; TITLE IV ( c) maximum moisture content : 0-06% ; Buying-in prices ( d ) maximum invert sugar content : 0-04% ; (e) colour type : maximum No 6 determined Article 10 according to the Brunswick Method.

1 . White sugar shall be classified into four grades. 4. Grade 4 shall include sugars not included in Grades 1 to 3 . 2 . White sugar of the standard quality shall be Grade 2 sugar. Article 12

3 . Grade 1 sugars shall be of superior quality to During the 1971 /72 and 1972/73 marketing years, standard quality, those of Grades 3 and 4 shall be of sugar which is the subject of a storage contract and is inferior quality to the standard quality. located in a warehouse for which the seller is not responsible may still be classified, at the time of removal, by the intervention agency in Grades 1 to 4, Article 11' as appropriate, where moisture content exceeds 0-06% but does not exceed 0-08% . 1 . Grade 1 sugars shall have the following characteristics : Article 13 (a) sound and fair marketable quality, dry, in homogenously granulated crystals, free-flowing ; The intervention price applicable per 100 kilogrammes of white sugar shall be : ( b ) maximum moisture content of 0-06% ; 1 . increased by 0-60 units of account for Grade 1 (c) maximum invert sugar content of 0-04% ; sugar ; , (d) in addition, Grade 1 sugars shall have such 2. reduced by 0-50 units of account for Grade 3 characteristics that the number of points sugar ; determined in accordance -with paragraph 2 shall not exceed a total of 8 , nor, 3 . reduced by 0-90 units of account for Grade 4 sugar. — 6 for the ash content ;

— 4 for the colour type determined according to Article 14 the method of the Brunswick Institute for 'Agricultural Technology, hereinafter called 1 . The intervention price applicable per 100 the ' Brunswick Method'; kilogrammes of raw sugar shall be adjusted by : — 3 for the colour of the solution determined ( a) an increase, where the yield of the sugar according to the method of the International concerned is more than 92% ; Commission for Uniform Methods of Sugar Analysis, hereinafter called the 'ICUMSA ( b) a reduction, where the yield of the sugar Method '. concerned is less than 92% .

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2. The amount of the increase or reduction, payment, any amount received which was not expressed in units of account per 100 kilogrammes, due at the time of the provisional payment shall be equal to the difference between the yield of referred to in paragraph 2. the raw sugar concerned and 92% , multiplied by 0-02 for each 0*1% . The deposit shall be released forthwith.

3 . The yield of raw sugar shall be calculated in accordance with the provisions of Article 1 of TITLE V Regulation (EEC) No 431 / 68 . Removal

■ Article 15 Article 16 1 . Where no storage contract is concluded, payment for the sugar bought in shall take place 1 . Unless otherwise agreed between the within eight weeks from the date of submission of the intervention agency arid the seller, the sugar shall offer. remain until removed in the warehouse in which it was stored at the time of the offer. If however, at the end of this period, the contracting parties have not received the final results of the 2. Removal shall take place in the presence of the analyses of the samples referred to in Article 18, a seller or of his representative . provisional payment shall be made forthwith equal to 95% of the value established on the basis of the 3 . For its removal from the warehouse, the sugar quantity of sugar taken over and of the buying-in bought in shall be loaded by the seller onto a means price in question, increased where appropriate by the of transport selected by the intervention agency. costs of packing.

4. Where the sugar bought in is not the subject of 2. Where a storage contract has been concluded, a storage contract, its collection shall take place the intervention agency shall, within eight weeks within a maximum period of seven weeks from the from the date of submission of the offer, make a day the offer was submitted. provisional payment of an amount established on the basis of the information appearing in the offer and of 5 . Where the sugar bought in is the subject of a the buying-in price in question, increased where storage contract, its removal shall take place no later appropriate by the costs of packing. than the day on which that contract expires . By This payment shall be subject to the lodging by the agreement with the storer, however, the intervention seller of a deposit equal to 5% of the amount agency may provide that removal shall take place involved, as a guarantee of the correctness of the after the date on which that contract expires . information in the offer. In that case, the intervention agency : 3 . The intervention agency shall pay the balance of — at its own expense and before the expiry of the storage contract, shall arrange for the experts the payment as soon as the final results of the weight checking and analyses of the samples are known. referred to in Article 18 to collect samples as set out in the same Article and to check weights ; Where the results of the weight checking and the final results of the analyses of the samples differ from — shall settle the balance of the payment in the information given in the offer, this shall be taken accordance with the provisions of Article 15 (3.); into account in settlement of the balance, in — on application by the seller, may agree that the accordance particularly with the provisions of obligation to load the sugar bought in shall be Articles- 13 and 14. discharged by the payment of the costs relating thereto . These costs shall be determined on the 4. Except in cases . of force majeure, the deposit basis of the rates in force on the date of expiry referred to in paragraph 2 shall be released only in so of the storage contract. » far as : (a) the final results of the weight checking and of the Article 17 analyses do not lead to a reduction in the price of the sugar bought in ; 1 . Subject to the application of the provisions of (b) the seller refunds, within a period of three weeks paragraphs 2 to 4, the sugar bought in shall be made from the day of receipt of the request for available in bulk by the seller.

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2. The intervention agency may require the sugar Each sample shall be analysed twice and the mean of bought in to be made available in one or more of the the results shall be taken as the result of the analysis following types of packing : of the sample in question.

( a) new jute bags of a minimum weight of 700 grammes, with a content of 100 kilogrammes net; 2. In the event of a dispute between the contracting parties over the grade of the bought-in ( b ) bags with a content of 50 kilogrammes net: sugar the following rules shall apply : ( aa ) new jute bags of a minimum weight of 450 grammes lined inside with polyethylene of a ( a) where the difference between the results of the minimum thickness of 0-04 mm ; analyses arranged by the seller and the buyer is : ( bb) bags made of 4 'Kraft' paper bags weighing — for Grade 1 sugar, not greater than 1 point at least 70 grammes per square metre for for each of the characteristics referred to in each bag, with an intervening lining of Article 11 ( 1 ) (d), or polyethylene of a minimum thickness of 0-04 mm ; — for Grade 2 sugar, not greater than 2 points for each of the characteristics used for the (cc) bags consisting of 5 'Kraft' paper bags definition of that grade, in so far as it bitumen lined or otherwise, concerns characteristics that are determined — each sack weighing at least 65 grammes by points, per square metre, and the arithmetic mean of the two results shall be — of a total weight of at least 335 conclusive for establishing the grade of the sugar grammes per square metre for the five in question . bags together. However, at the request of one of the contracting parties, an arbitral analysis shall be carried out 3 . Where the intervention agency requires one or by the laboratory referred to in paragraph 1 . In more of the types of packing provided for in that case, the arithmetic mean shall be taken of paragraph 2, it shall bear the costs relating to such the results of the arbitral analysis and the results packing. The intervention agency shall, moreover, of the seller's or buyer's analysis, whichever is inform the seller in good time before removal, of the closer to the result of the arbitral analysis. This type or types of packing required. mean shall1 be conclusive for establishing the These costs are fixed at a flat rate per 100 grade of the sugar in question. If the result of the kilogrammes as follows : arbitral analysis lies midway between the results of the analyses arranged by the seller and the ( a) 0*60 unit of account for the type of packing buyer, the arbitral analysis alone shall be described in paragraph 2 ( a); conclusive for establishing the grade of the sugar (b) 0-80 unit of account for the type of packing in question ; described in paragraph 2 (b) and (aa); (c) 0-43 unit of account for the type of packing (b) where the difference observed is greater than that described in paragraph 2 (b ) and (bb ); indicated under the first or second indent of ( a) (d) 0-40 unit of account for the type of packing above as the case may be an arbitral analysis described in paragraph 2 ( b) and ( cc). shall be carried out by a laboratory approved by the competent authorities . In that case the 4. The intervention agency may accept delivery of provisions of the second subparagraph of (a) the sugar in a type of packing other than those set shall be followed ; out in paragraph 2 . In that case, the intervention agency shall not bear the costs relating thereto. ( c) for disputes over the maximum limit for the colour type of sugar in Grade 3 , polarisation, moisture content or invert sugar content, the Article IS same procedure shall be followed as in (a) and (b ). However, the differences set out in (a) shall 1 . At the time of removal, four samples shall be be replaced by: taken for analysis either by experts approved by the competent authorities of the Member State concerned — 1-0 units of colour type for Grade 3 sugar; or by experts agreed upon by the intervention agency and the seller. There shall be one sample for each of — 0-2 S for polarisation ; the contracting parties . The other two samples shall — 0-02% for moisture content; be kept by the expert or by a laboratory approved by the competent authorities. — 0-01% for invert sugar content.

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TITLE VI 3 . The costs of an arbitral analysis :

( a ) under 2 (a) second subparagraph , shall be borne Final provisions by the contracting party requesting the analysis ; Article 21 (b) under 2 (b ), shall be shared equally by the intervention agency and the seller. 1 . Regulation (EEC) No 782/68 is hereby repealed .

It shall, however, continue to apply to operations connected with offers of sugar for intervention which Article 19 were accepted during the period of validity of that Regulation . 1 . Without prejudice to the provisions of Article 2. The following amendments shall be made : 16 (5 ), the experts referred to in Article 18 shall, at ( a) in Article 1 of Regulation ( EEC) No 1265 /69 , the the time of removal, check the weight of the sugar words 'Regulation (EEC) No 1280/ 71 ' shall be sold . substituted for the words 'Regulation (EEC) No 782/68 '; 2. The costs of checking the weight shall be borne by the seller. ( b ) in Article 13 of Regulation (EEC) No 1987/69, the words 'Article 18 of Regulation ( EEC) No 1280/71 ' shall be substituted for the words 'Article 15 of Regulation ( EEC ) No 782/68 '; Article 20 ( c ) in Article 14 ( 1 ) and (3 ) of the Regulation 1 . The seller shall take the necessary measures to referred to in (b ), the words 'Article 18 of permit the experts referred to in Article 18 to check Regulation (EEC) No 1280/71 ' shall be substituted for the words ' Article 15 of the weight and to take samples . Regulation (EEC) No 782/68 '. '

2 . The costs of the experts who check the weight Article 22 ' and take samples shall be borne by the intervention agency . This Regulation shall enter into force on 1 July 1971 .

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

Done at Brussels, 18 June 1971 .

For the Commission

The President Franco M. MALFATTI