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  • Detailed rules (EEC) applicable to the sale of cereals and oils and fats held in intervention for non-food demonstration projects, 1991-

Official Journal Reference

L 65 of 1991-03-12

Legislative Reference

582/91/CEE of 1991-03-11
To develop new uses of cereals, olive oil and oilseeds other than as foodstuffs or animal feedingstuffs.


By Regulation (EEC) No 2203/90 the Council introduced arrangements for making cereals and oils and fats held by intervention agencies available on favourable terms for demonstration projects approved by the Commission. Commission Regulation (EEC) No 569/88 of 16 February 1988, as last amended by Regulation (EEC) No 413/91, laying down common detailed rules for verifying the use and/or destination of products from intervention, applies in respect of such sales. Following on from this, Regulation (EEC) No 582/91 lays down detailed rules for the approval of demonstration projects and for selling the raw materials required for their execution. The criteria for selecting the demonstration projects submitted for approval is also specified and the criteria for setting the selling price for each sector.


Information not presently available.


The Commission is responsible for the implementation of the Regulation. The demonstration projects concerning the development of new uses of cereals, olive oil and oilseeds held in intervention are proposed and implemented by research institutes, bodies, organizations, undertakings or natural or legal persons which possess the necessary qualifications and experience and provide guarantees regarding the satisfactory outcome of the work. Proposals for demonstration projects contain the following information:
- the full identity, address and professional references of the applicant and any partners;
- the title of the project;
- the objectives, demonstrative value and innovative nature of the project, a description of the work and technical details;
- duration of the project, which may not exceed two years;
- the required quantities of the raw materials;
- the derived products and by-products obtained (description, quantity and destination);
- the proposed price of the raw material (and justification), taking account of the value of the co-products and by-products;
- the likely schedule for removal;
- the proposed place where the products will be taken over;
- other national or Community assistance already granted for the project;
- all other information useful to the assessment.

Proposals for demonstration projects are submitted to the Commission for approval in June and December each year. The Commission decides to approve projects before 31 December in the case of proposals submitted during June of the same year, and before 30 June in the case of proposals submitted during December of the previous year. The decision approving projects is based on an assessment comprising the following selection criteria: demonstrative value; innovative nature; technical feasibility; agro-industrial impact; impact of the end products, co-products and by-products on competing markets and the danger of market disruption; economic viability; available financial resources; environmental aspects.

Selling prices are fixed for cereals and olive oil at a level similar to the world market price cif stage for the same products, taking account of the value of the by-products, and for oilseeds at a level likely to allow the operation to be carried out without endangering the market equilibrium. The selling price takes account, where appropriate, of other advantages which interested parties may benefit from under the Community rules in respect of the market organizations in question.

A performance guarantee is lodged with the competent body, before each instalment is removed, amounting, per tonne, to 110% of the difference between the intervention price and the selling price applicable to the instalment of goods in question. The guarantee is released when proof is furnished that the product has actually been used for the purposes of the project in the form of a report approved by the Commission containing detailed information showing that the objectives of the project have been obtained, based on quantitative and qualitative data relating to each objective. The report is submitted to the competent body not later than two months after the completion of the project and is then transmitted to the Commission without delay. The Commission approves thr report not later than two months after receiving it and informs the competent body.

The competent body takes the necessary steps to ensure, particularly by means of technical, administrative and documentary checks during the processing period, that the intervention product is used in accordance with the terms of the project. It informs the Commission of the measures taken and the envisaged schedule of checks. In the case of irregularities it immediately informs the Commission and appropriates the guarantee.


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