Council Directive of 1 February 1971 on harmonisation of the basic provisions in respect of guarantees for short-term transactions (political risks) with public buyers or with private buyers (71/86/EEC)

Article 1

Subject to the provisions of Annex D to Council Directives Nos 70/509/EEC and 70/510/EEC(1) of 27 October 1970, Member States shall adopt such measures by law, regulation or administrative action as may be necessary to put into force the harmonised provisions on short-term transactions set out in the Annex to this Directive.

Article 2

Member States shall ensure that credit insurance organisations guaranteeing for the account or with the support of the State insure transactions that fall within the scope of the harmonised provisions, in accordance with the terms laid down in those provisions and such specific rules as are adopted by the Council.

Article 3

1. Whatever the type of policy used, the harmonised provisions shall apply to transactions which:

• include either a credit risk of less than twenty-four months, or a credit risk and a guaranteed manufacturing risk where the cumulative period is less than twenty-four months; the manufacturing risk, however, must be of less than twelve months;

• are concluded with a public buyer or with a private buyer;

• are on a supplier credit basis.

2. The provisions harmonised by this Directive concern only the guarantee in respect of political risks.

3. The definitions of ‘public buyer’ and ‘private buyer’ contained in Article 3 of Directive No 70/509/EEC and in Article 4 of Directive No 70/510/EEC respectively shall apply.

Article 4

The Advisory Committee for Export Credit Insurance, set up under Article 4 of Directive No 70/509/EEC, may be consulted by the Commission on any problem relating to the uniform application of this Directive.

Article 5

This Directive is addressed to the Member States.

Done at Brussels, 1 February 1971.

For the Council

The President

M. Schumann