Commission Delegated Regulation (EU) 2016/1238 of 18 May 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to public intervention and aid for private storage (Text with EEA relevance)

CHAPTER I

INTRODUCTORY PROVISION

Article 1

Scope

This Regulation lays down rules supplementing Regulation (EU) No 1308/2013 as regards:

(a) the buying-in and selling from public intervention of products listed in Article 11 of that Regulation; and

(b) the granting of aid for private storage for products listed in Article 17 of that Regulation.

CHAPTER II

GENERAL RULES

Article 2

Eligibility of operators

Operators shall be established and registered for VAT purposes in the Union in order to submit:

(a) an offer or a tender for the buying-in, or a tender for the selling, of products under public intervention; or

(b) a tender for aid for private storage or an application for aid for private storage fixed in advance.

In the case of buying-in of beef, only the following operators referred to in paragraph 1 may submit tenders:

(a) slaughterhouses for bovine animals approved in accordance with Article 4 of Regulation (EC) No 853/2004 of the European Parliament and of the Council (¹);

(b) livestock or meat traders who have slaughtering undertaken therein on their own account.

In the case of aid for private storage, only the following operators referred to in paragraph 1 may apply or submit tenders:

(a) in the olive oil sector, operators who fulfil the requirements laid down in Annex VII;

(b) in the sugar sector, operators who are sugar manufacturers.

Article 3

Eligibility of products

In the case of buying-in, products shall fulfil the requirements laid down as follows:

(a) for cereals: in Annex I to this Regulation;

(b) for rice: in Annex II to this Regulation;

(c) for beef: in Annex III to this Regulation;

(d) for butter: in Parts I and II of Annex IV to this Regulation and Article 21 of Commission Implementing Regulation (EU) 2016/1240 (²);

(e) for skimmed milk powder: in Parts I and II of Annex V to this Regulation and Article 21 of Implementing Regulation (EU) 2016/1240.

In addition, butter and skimmed milk powder must have been produced in an undertaking approved in accordance with Part III of Annex IV or Part III of Annex V to this Regulation, respectively.

Article 4

Security

Operators shall lodge a security in favour of the relevant paying agency in accordance with Section 2 of Chapter IV of Delegated Regulation (EU) No 907/2014 when:

(a) submitting an offer or a tender for the buying-in or sale of intervention products, or the disposal of such products under the scheme for food distribution for the most deprived in accordance with Article 16(2) of Regulation (EU) No 1308/2013;

(b) submitting a tender or an application for aid for private storage unless an Implementing Regulation opening the tendering procedure or fixing the amount of aid in advance as referred to in Implementing Regulation (EU) 2016/1240 provides otherwise.

Article 5

Release and forfeiture of security

In the case of intervention buying-in, the security shall be released when:

(a) the operator has delivered the quantity indicated by the final date for delivery set out in the delivery order referred to in Article 17 of Implementing Regulation (EU) 2016/1240; and

(b) conformity with the product eligibility requirements referred to in Article 3 of this Regulation has been established; or

(c) an allocation coefficient as referred to in Article 11(1)(b) of Implementing Regulation (EU) 2016/1240 is applied. In that case, the amount of the released security shall correspond to the quantity not accepted; or

(d) the offer is withdrawn by an operator to whom an allocation coefficient as referred to Article 11(1)(b) of Implementing Regulation (EU) 2016/1240 applies.

In the case of sale of intervention products, the security shall be released:

(a) for unsuccessful operators, after the decision referred to in Article 32(1) or 36(2) of Implementing Regulation (EU) 2016/1240 has been taken;

(b) for successful operators, in respect of the quantities for which payment has been made in accordance with Article 35 of Implementing Regulation (EU) 2016/1240;

(c) where the obligations relating to the disposal of products under the scheme for food distribution for the most deprived have been met.

In the case of aid for private storage, the security shall be released when:

(a) an allocation coefficient as referred to in the first subparagraph of Article 43(2) of Implementing Regulation (EU) 2016/1240 is applied. In that case, the amount of the released security shall correspond to the quantity not accepted;

(b) the tender is withdrawn by the reason of fixing of an allocation coefficient as referred to in the second subparagraph of Article 43(2) of Implementing Regulation (EU) 2016/1240;

(c) the contractual obligations in respect of the contractual quantity have been fulfilled.

The security referred shall be forfeit where the offer, tender or application is:

(a) withdrawn by reasons other than fixing of an allocation coefficient pursuant to Article 11(1)(b) or the first subparagraph of Article 43(2) of Implementing Regulation (EU) 2016/1240; or

(b) amended after submission.

In the case of intervention buying-in, the security shall be forfeit where:

(a) the products do not conform with the requirements referred to in Article 3 in respect of the quantities not accepted;

(b) except in cases of force majeure, the operator fails to deliver the products by the final date set out in the delivery order, in proportion to the quantities not delivered and buying-in shall be cancelled in respect of those quantities.

However, in the case of cereals, rice and beef, if the quantity actually delivered and accepted is less than the quantity specified in the delivery order, the security shall be released in full where the difference is not more than 5 %.

In the case of sale of intervention products, except in cases of force majeure, the security shall be forfeit:

(a) in respect of quantities for which payment has not been made in accordance with Article 35 of Implementing Regulation (EU) 2016/1240 and the sale shall be cancelled in respect of those quantities;

(b) where the obligations relating to the disposal of products under the scheme for food distribution for the most deprived have not been fulfilled.

In the case of aid for private storage, the security shall be forfeit where:

(a) less than 95 % of the quantities specified in the tender or application are placed in storage under the conditions provided for in Article 52(1)(a) of Implementing Regulation (EU) 2016/1240;

(b) less than the percentage of the contractual quantity referred to in Article 8(1) is kept in storage, including in the case of sugar stored in bulk in the silo designated by the operator, for the period laid down in the Implementing Regulation opening the tendering procedure or fixing the amount of aid for private storage in advance;

(c) the time limit for placing the products into storage as referred to in Article 47(1) of Implementing Regulation (EU) 2016/1240 is not complied with;

(d) the checks provided for Chapter I of Title IV of Implementing Regulation (EU) 2016/1240 show that the products stored do not correspond to the quality requirements referred to in Article 3 of this Regulation;

(e) the requirement laid down in Article 53(3) of Implementing Regulation (EU) 2016/1240 is not complied with.

CHAPTER III

SPECIFIC RULES RELATED TO PUBLIC INTERVENTION

Article 6

Intervention storage places

Article 7

Requirements for storage places

Each storage place shall fulfil the following requirements:

(a) it has available the necessary technical equipment to take over the products;

(b) it is able to remove quantities in order to comply with the removal period indicated in Article 37(2) of Implementing Regulation (EU) 2016/1240;

(c) in the case of cereals, rice, butter and skimmed milk powder, it has a minimum storage capacity as laid down in Article 3(1) of Implementing Regulation (EU) 2016/1240.

In the case of the beef sector, the storage places shall permit:

(a) storage of carcasses, half carcasses and carcasses cut into quarters taken over and deboned;

(b) freezing of all deboned meat to be stored without further processing.

However, where deboning is not a condition of the tender, the storage place shall permit bone-in meat to be taken over.

When the cutting plant and refrigeration plant of a storage place are connected with the slaughterhouse or the operator, the paying agency shall carry out the appropriate checks in order to ensure that beef subject to intervention is handled and stored in accordance with this Regulation.

The cold stores located in the Member State exercising jurisdiction over the paying agency shall be capable of holding all beef allocated by the paying agency for at least three months under technically satisfactory conditions.

However, where there is insufficient cold storage capacity in a Member State for the allocated beef, the paying agency concerned may arrange for such beef to be stored in another Member State and notify the Commission accordingly.

CHAPTER IV

SPECIFIC RULES RELATED TO AID FOR PRIVATE STORAGE

Article 8

Payment of aid for private storage

However, in respect of the following products, the aid shall be paid for the contractual quantity if the quantity stored during the contractual storage period represents at least 97 % of the contractual quantity:

(a) sugar that is stored separately from other sugar in the silo designated by the operator;

(b) olive oil;

(c) flax fibre;

(d) beef, pigmeat, sheepmeat and goatmeat, whereas the contractual quantity relates to the fresh meat entering the store;

(e) cheese;

(f) skimmed milk powder in ‘big bags’ as referred to in point (c) of Part VI of Annex VI.

The same rule shall apply where part of a storage lot or batch is removed from storage for reasons of defectiveness before the end of the minimum storage period or before the first date allowed for removal operations, where such a date is provided for in the Implementing Regulation opening the tendering procedure or fixing the amount of aid in advance.

Defective products shall not be included in the calculation of the quantity stored referred to in paragraph 1.

However, this reduction shall not exceed 100 % of the aid.

CHAPTER V

COMMON AND FINAL PROVISIONS

Article 9

Notifications

Member States shall notify the Commission of the approved paying agencies and quantities under the detailed conditions laid down in Chapter I of Title V of Implementing Regulation (EU) 2016/1240.

Article 10

Repeal and transitional provisions

Regulations (EEC) No 3427/87, (EEC) No 2351/91, (EC) No 720/2008, (EC) No 826/2008, (EC) No 1130/2009, (EU) No 1272/2009 and (EU) No 807/2010 are repealed.

Articles 56(3) and 56(4) of Regulation (EU) No 1272/2009 and Part A to Annex III of Regulation (EC) No 826/2008 shall continue to apply until acts replacing Commission Regulation (EC) No 792/2009 (³) have become applicable.

Part II, Table IV of Part IX and point (h) of Part XI of Annex I to Regulation (EU) No 1272/2009 shall continue to apply until 30 June 2017.

Regulation (EU) No 1272/2009 shall continue to apply in respect of offers or tenders received under that Regulation before the date of entry into force of this Regulation.

Regulation (EC) No 826/2008 shall continue to apply in respect of tenders or applications received under that Regulation before the date of entry into force of this Regulation.

Article 11

Entry into force and application

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

It shall apply as from 1 October 2016. However, as regards buying-in to public intervention, Part II of Annex I shall apply from 1 July 2017.

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

ANNEX I

BUYING-IN OF CEREALS

PART I

Eligibility criteria for cereals

(a) cereals are of the typical colour of the cereal in question; (b) cereals are free from abnormal smell and live pests (including mites) at every stage of their development; (c) cereals meet the minimum quality requirements set out in Part II; and (d) the levels of contaminants, including radioactivity, do not exceed the maximum levels permitted under Union legislation.

(a) for common wheat and durum wheat, those permitted under Council Regulation (EEC) No 315/93 (⁴), including the requirements regarding the Fusarium-toxin level for common wheat and durum wheat laid down in points 2.4 to 2.7 of the Annex to Commission Regulation (EC) No 1881/2006 (⁵); (b) for barley and maize, those set by Directive 2002/32/EC of the European Parliament and of the Council (⁶).

In addition, in cases where analyses indicate that the Zeleny index of a batch of common wheat is between 22 and 30, for this wheat to be deemed sound, fair and of marketable quality, the dough obtained from it must be judged to be non-sticky and machinable.

PART II

Minimum quality requirements referred to in Part I

	Durum wheat	Common wheat	Barley	Maize
A. Maximum moisture content	14,5 %	14,5 %	14,5 %	13,5 %
B. Maximum percentage of matter which is not basic cereal of unimpaired quality:	12 %	12 %	12 %	12 %
1. Broken grains	6 %	5 %	5 %	5 %
2. Grain impurities	8,5 %	7 %	12 %	5 %
2.1.  Impurities other than mottled grains	5 %	7 %	12 %	5 %
(a) shrivelled grains	X	X	X	n.a.
(b) other cereals	3 %	X	5 %	X
(c) grains damaged by pests	X	X	X	X
(d) grains in which the germ is discoloured	X	X	n.a.	n.a.
(e) grains overheated during drying	0,50 %	0,50 %	3 %	0,50 %
2.2.  Mottled grains	3,5 %	n.a.	n.a.	n.a.
3. Sprouted grains	4 %	4 %	6 %	6 %
4. Miscellaneous impurities	4,5 % (*1)	3 %	3 %	3 %
of which:
(a) extraneous seeds:
—  noxious	0,10 %	0,10 %	0,10 %	0,10 %
—  other	X	X	X	X
(b) damaged grains:
—  grains damaged by spontaneous heating or too extreme heating during drying	0,05 %	0,05 %	X	X
—  grains affected with fusariosis	1,5 %	X	X	X
—  other	X	X	X	X
(c) extraneous matter	X	X	X	X
(d) husks (cob fragments in the case of maize)	X	X	X	X
(e) ergot	0,05 %	0,05 %	n.a.	n.a.
(f) decayed grains	X	X	n.a.	n.a.
(g) impurities of animal origin	X	X	X	X
C. Maximum percentage of wholly or partially mitadiné grains	27 %	n.a.	n.a.	n.a.
D. Minimum specific weight (kg/hl)	78	73	62	n.a.
E. Minimum protein content (*2)	11,5 %	11,0 %	n.a.	n.a.
F. Hagberg falling number (seconds)	220	220	n.a.	n.a.
G. Minimum Zeleny index (ml)	n.a.	22	n.a.	n.a
(1) Of which maximum 3 % for impurities other than grains affected by fusariosis. (2) As a percentage of dry matter. ‘X’  Indicates analysis required without specific limit but content to be taken into account for maximum limits set in points 2 and 4 of the table. ‘n.a.’  Not applicable, not requiring analysis.

Matter other than basic cereals of unimpaired quality is defined in Part I of Annex I to Implementing Regulation (EU) 2016/1240.

Grains of basic cereals and other cereals which are damaged or decayed shall be classified as ‘miscellaneous impurities’ even if they have defects which belong to other categories.

ANNEX II

BUYING-IN OF RICE

PART I

Eligibility criteria for paddy rice

(a) the paddy rice is free of odour and does not contain live insects; (b) the moisture content does not exceed 14,5 %; (c) the milling yield is not more than five points below the basic yields listed in Part II; (d) the percentage of miscellaneous impurities, the percentage of rice grains of other varieties and the percentage of grains which do not comply with the standard quality as defined in Part A of Annex III to Regulation (EU) No 1308/2013, do not exceed the maximum percentages set out in Part III of this Annex, by type of rice; (e) the level of radioactivity does not exceed the maximum levels permitted by Union legislation.