1272/2009 SALES

Procedures for the Sale of Butter held in Intervention Storage in Ireland under of Commission Regulations (EC) 1272/2009

1Introduction

This memorandum describes the arrangements, which apply in Ireland for sale of butter held in intervention storage under Commission Regulations (EC) 1272/2009 by the Department of Agriculture, Fisheries and Food in its capacity as The Intervention Agent on behalf of the EU Commission.

The rules and regulations herein arise from:

  • COMMISSION REGULATION (EC) No1272/2009 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards intervention on the market in butter and cream.

Copies of the Regulations may be obtained from the Stationary Office, Bishop StreetDublin 8 or from the Government Publications Office, Molesworth Street, Dublin 2.

Interest in purchasing butter held in intervention storage in Ireland under this procedure should be expressed by way of letter or fax addressed to:

Dairy Intervention Section,

Intervention Operations,

JohnstownCastle Estate,

Co. Wexford.

Ireland.

Tel: +353 – 53 – 9163437

Fax: +353 – 53 – 9142843

Commission Regulation (EC) No. 1272/2009 provides for the sale of butter, which entered storage before a certain date. This date is amended from time to time by the European Commission and is currently set at 1 October 2009.

Sales are conducted by means of a tendering procedure. Tenders in respect of a particular adjudication must reach the Department before 11.00, Brussels time, on the first or third Tuesday (or the previous working day if the Tuesday is a public holiday), as appropriate, of each month except the fourth Tuesday in December and the second Tuesday in August. Tenders must be in writing and may be submitted by post, by hand or fax. Tenders may not be withdrawn after the time limit for receipt of tenders.

Purchasers may specify the store or stores from which they wish to purchase the butter and an indication of the kind of butter sought may also be submitted. The Intervention Agency must allocate the butter on the basis of its date of entry into storage, starting with oldest product of the total quantity or, as the case may be, the oldest of the quantity of sweet or sour cream butter available in the cold store designated by the tenderer.

Prospective purchasers may, at their own expense, sample the butter offered for sale. To facilitate administration, at least three working days notice of intention to sample should be given.

A tendering security of EURO 200 per tonne must be lodged with the Intervention Agency in the MemberState where the tender is submitted, for the tendering round in question before the closing date for submission of tenders.

The Security may be lodged by the following methods:

  • A Bank Draft made out in favour of the “The Minister for Agriculture, Fisheries and Food” or
  • Cash Lodgement by Electronic Funds Transfer (EFT) to Bank of Ireland, Cavan.

The Department can accept payment by Electronic Fund Transfer (EFT) in accordance with the following protocol only:

  1. All payment to be made in Euro.
  2. Each EFT payment made must quote your name or if possible your Department of Agriculture & Food 9 digit customer number (available from Dairy Intervention 00 353 53 9163444).
  3. Each payment must be followed by remittance notice detailing

(a)Name and address details

(b)Your nine digit customer number (if possible)

(c)The date and amount paid into the Department’s EFT Account

(d)The reference “Tender: Sale of Intervention Butter, EC Regulation 1272/2009”

  1. This remittance notice should be sent by fax to:

EFT Payments, The Cash Office, Farnham St., Cavan FAX:00 353 49 4361486

The Department cannot accept any responsibility for payments made into this account that cannot be identified due to lack of information.

The Department’s Bank Details:

Bank Details:Bank of Ireland, Main Street, Cavan

Account Name: Department of Agriculture & Food - BOI Accounts Receivable Account

Account Number:17183210

Bank Sort Code:90-32-93

IBAN NO:IE21 BOFI 903293 17183210

BIC NO:BOFIIE2D

Please be aware that this process can take up to 3 working days.

or

  • A Guarantee in the format set out at Annex 1 made out in favour of the Minister for Agriculture, Fisheries and Food from an approved credit institution or
  • Cheque made payable to the Minister for Agriculture. This must be lodged in advance and available in the Department’s bank account prior to the deadline.

Please Note:

●All tenderer’s must take into account any possible bank charges when forwarding payment of tendering securities.

●The responsibility for ensuring that the guarantee is in place prior to the deadline lies with the tenderer.

●Original Bank Guarantees & Bank drafts must be received prior to the deadline. They may be delivered this Office at JohnstownCastle, Wexford, Agriculture House, Kildare St, Dublin (marked for the attention of Joe Williams) or any other Department of Agriculture Office in Ireland.

Format of Tenders

The list of stock currently available for sale will immediately be sent to the interested party. The tender application form will be enclosed with the stock list on which purchasers must indicate the following:

  • Name and Address of tenderer
  • Quantity tendered for (minimum 10 tonnes, however, if the quantity available in a coldstore is less than 10 tonnes, the lesser quantity may be sold).
  • The price in Euro tendered per 100 kilograms, not including national taxes and charges, delivery to the loading-bay of the cold store or purchase of the pallet.
  • If appropriate, the cold store where the butter is held and, if desired, a substitute cold store.
  • If appropriate, an indication of the kind of butter referred to in Article 28(1)(e).

Tenders may not be withdrawn after the closing date and the rights and obligations resulting from the tendering procedure shall not be transferable.

Following adjudication, the Intervention agency shall immediately inform tenderers of the outcome of their participation in the invitation to tender. Securities lodged for unsuccessful tenderers shall be released immediately.

Award of Contract

Before removing the butter and within 30 days of the closing date for the submission of tenders, successful tenderers shall pay the intervention agency the amount corresponding to their tender for each quantity that they wish to withdraw. Removals may be effected by instalments of not less than five tonnes each. However, where the quantity remaining in a cold store is less than five tonnes, that smaller quantity may be delivered.

Payment may be made by the following methods:

  • A bank draft made out in favour of the “The Minister for Agriculture, Fisheries and Food” or
  • Electronic Funds Transfer (EFT) - See Protocol above.

All tenderers must take into account any possible bank charges when forwarding payment for the release of butter. Failure to provide full payment may result in the delay and/or cancellation of all or part of the contract.

When payment is received, the intervention agency shall issue a removal warrant to the purchaser, authorising the removal from store of the quantity for which payments have been made.

Purchasers should note that the stores must be given a minimum of three working days notice of the intention to remove butter.

Purchasers must ensure that transport companies supply valid proof that they are collecting on behalf of the product owner to the storekeeper. All truck drivers must be in possession of such proof when presenting at the store for collection

The contract of sale will be terminated and security forfeited in respect of any quantities for which payment has not been received by the Intervention Agency by the latest date of payment.

If the butter has been paid for but not removed within the 30 days, the tendering security covering the remaining quantities will be forfeit and the purchaser will be responsible for the storage costs and insurance of the product from that day.

This Notice does not purport to be a legal interpretation of the Regulations (and conditions) governing this sale. Traders should read this notice in conjunction with the relevant regulations. Traders have full responsibility for familiarising themselves with, and for complying with, any regulatory requirements (including amendments from time to time) in force in relation to this scheme. Any advice and guidance offered by the Department either by way of this notice or otherwise does not alter or affect that responsibility. While care has been taken to ensure as far as possible that the information offered in this notice is accurate, no legal responsibility is accepted by the Department for any errors or omissions therein.

ANNEX I

Guarantees must be on headed paper of the Guarantor

Address to:Minister for Agriculture, Fisheries and Food,

JohnstownCastle Estate,

Co. Wexford.

We (name and full address of guarantors) hereby engage ourselves to be principal debtors to you jointly and severally with the (name and full address of applicants), (hereinafter called the applicant), for every sum which the applicant shall become liable to pay to you pursuant to security in respect of the purchase of butter from Intervention under Commission Regulation (EC) No 1272/2009 by the applicants, entered into by him/them on or after the date of this guarantee under Commission Regulation of the European Community, together with surcharges where any obligations pertaining to such security are not fulfilled.

Our liability under this guarantee shall not exceed in aggregate the sum of EUR , but within that limit is a guarantee for the whole of each and every sum in which the applicant shall become liable as aforesaid. We undertake jointly and severally with the applicant to pay, within 30 days of demand by Minister for Agriculture, Fisheries & Food any sum within the limit of this guarantee, due once the security is declared forfeit. The guarantee is valid until all obligations arising thereunder have been discharged to the satisfaction of the Minister for Agriculture, Fisheries & Food.

We agree that whether or not such notice is sent through the post, it shall not be deemed to have been delivered unless actually received in your office.

SIGNATURE: ______SIGNATURE: ______

POSITION 1:______POSITION 1:______

Date: ______Date: ______

1.The Guarantee must be signed by at least two signatories authorised to sign such financial documents on behalf of the Credit Institution.

COMMISSION REGULATION NO.1272/2009

APPLICATION FORM FOR PURCHASE OF BUTTER FROM INTERVENTION

TO:DAIRY INTERVENTION SECTION, INTERVENTION OPERATIONS, DEPARTMENT OF AGRICULTURE, FISHERIES AND FOOD, JOHNSTOWN CASTLE ESTATE, WEXFORD, IRELAND.

1.NAME OF PURCHASER: ______

ADDRESS: ______

TELEPHONE NO: ______

FAX NO: ______

2.I/We hereby tender to purchase Irish Intervention Butter as follows:

NAME AND ADDRESS OF STORE
______
______
______
(SECOND CHOICE)
______
______
______/ Indication of the kind of butter referred to in Article 28(1)(e) for which the offer is being submitted / Quantity (Kgs) / EURO price per 100 Kgs

3. I/We have provided proof that the tendering security of EUR 200 per tonne has been lodged

with the Irish Intervention Agency before the closing date for submission of tenderers. (TICK AS APPROPRIATE)

OR

I/We declare that the tendering security of €______may be deducted form the balance available on our block guarantee.  (TICK AS APPROPRIATE)

4.I/We declare that, I/We have read and accept the provisions of Regulation (EC) No. 1272/2009 as amended and that this application is submitted in accordance with, and in acceptance of its provisions.

SIGNED:______

POSITION:______

ORGANISATION:______

DATE: ______

NOTE: TENDERS MUST BE TYPEWRITTEN OR COMPLETED CLEARLY IN BLOCK CAPITALS.

RETURN TO: DAIRY & CEREALS INTERVENTION

DEPT. OF AGRICULTURE & FOOD, JOHNSTOWN CASTLE, CO. WEXFORD, IRELAND

TEL: 00 353 53 9163437

FAX: 00 353 53 9142843