Commission Delegated Regulation (EU) 2016/1238Show full title

Article 5 U.K. Release and forfeiture of security

1. The security provided for in Article 4 shall be released where a tender, offer or application is inadmissible or has not been accepted.

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(d) the offer is withdrawn by an operator to whom an allocation coefficient as referred to Article 11(1)(b) of Implementing Regulation (EU) 2016/1240 applies.

3. 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;

F1 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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(b) the tender is withdrawn by the reason of fixing of an allocation coefficient as referred to in the second subparagraph of Article 43(2) of Implementing Regulation (EU) 2016/1240;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

5. 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(a) withdrawn by reasons other than fixing of an allocation coefficient pursuant to Article 11(1)(b) or the first subparagraph of Article 43(2) of Implementing Regulation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.

6. 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 %.

[F2 7. In the case of sale of intervention products, except in cases of force majeure, the security shall be forfeit 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.]

8. 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.

[F3 9. This Article does not apply in relation to public intervention schemes in England, otherwise than in connection with exceptional market conditions which are the subject of a declaration under section 20 of the Agriculture Act 2020, or in relation to private storage aid schemes in England.]

[F4 10. This Article ceases to apply in relation to public intervention schemes in Scotland, otherwise than in connection with public intervention measures which the appropriate authority takes under Article 219(1) of Regulation (EU) No 1308/2013, for a period of five years beginning on 1 July 2023.

11. This Article ceases to apply in relation to private storage aid schemes in Scotland.]

Textual Amendments

F1 Art. 5(3)(c) omitted (31.12.2020) by The Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/823), regs. 1, 5(4B) (as inserted by S.I. 2020/1445, regs. 1(2)(a), 15(2)); 2020 c. 1, Sch. 5 para. 1(1)

F2 Art. 5(7) substituted (31.12.2020) by The Market Measures Payment Schemes (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/823), regs. 1, 5(5); 2020 c. 1, Sch. 5 para. 1(1)

F3 Art. 5(9) inserted (E.) (28.2.2023 at 9.10 a.m.) by The Market Measures Payment Schemes (Amendments, Revocation and Transitional Provision) (England) Regulations 2023 (S.I. 2023/124), regs. 1(2)(b), 8(5) (with reg. 10)

F4 Art. 5(10)(11) inserted (S.) (1.7.2023) by The Public Intervention and Private Storage Aid (Amendment and Suspension) (Scotland) Regulations 2023 (S.S.I. 2023/150), regs. 1, 8(5) (with reg. 10)