Procedure by which Market Intervention Measures Shall be Administered and Supervised in the Crop Farming and Stock Farming Product Market

Issued pursuant to
Section 6, Paragraph two
of the Law On Agriculture and Rural Development

I. General Provisions

1. These Regulations prescribe the procedure by which market intervention measures shall be administered and supervised in the crop farming and stock farming product market.

2. The procedure by which intervention measures shall be introduced is prescribed by:

2.1. Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (hereinafter - Regulation No 1234/2007);

2.2. Commission Regulation (EU) No1272/2009 of 11 December 2009 laying down common detailed rules for the implementation of Council Regulation (EC) No 1234/2007 as regards buying-in and selling of agricultural products under public intervention (hereinafter - Regulation No 1272/2009);

2.3. Commission Regulation (EC) No 826/2008 of 20 August 2008 laying down common rules for the granting of private storage aid for certain agricultural products (hereinafter - Regulation No 826/2008)

3. The intervention measures shall be the following:

3.1. the buying-in under intervention referred to in Article 10 of Regulation No 1234/2007;

3.2. the private storage of the products referred to in Article 28 of Regulation No 1234/2007.

4. The Rural Support Service shall be:

4.1. the intervention agency in accordance with Article 2 of Regulation No 1272/2009;

4.2. the competent authority in accordance with Article 42(4); Article 58; Paragraphs 5, 6 and 7 of Part I of Annex IV; Part III of Annex IV; Paragraphs 5 and 6(3) of Part I of Annex V of Regulation No 1272/2009;

4.3. the competent authority of a Member State in accordance with Article 1, Paragraph 2 of Regulation No 826/2008;

4.4. the authority responsible for the examination in accordance with Articles 36 and 37 of Regulation No 826/2008.

5. At the written request of the Rural Support Service the Food and Veterinary Service in relation to the intervention measures shall:

5.1. evaluate the compliance of the intervention warehouses to the requirements referred to in Article 3 of Regulation No 1272/2009;

5.2. take samples of the products offered and bought-in under intervention (in relation to contaminant control, take samples of cereals offered under intervention based on the risk analysis in compliance with that prescribed in Part I of Annex I of Regulation No1272/2009) and submit them for laboratory testing to the Institute of Food Safety, Animal Health and Environment, as well as, observing the testing reports referred to in Sub-paragraph 6.2 of these Regulations, provide an opinion to the Rural Support Service regarding the compliance of the products referred to in Sub-paragraph 3.1 of these Regulations to the requirements referred to in Article 7 of Regulation No 1272/2009;

5.3. participate in the testings of products in private storage places, evaluate the compliance of the storage of the products to the requirements referred to in Regulation No 826/2008, take the stored product samples in accordance with Article 36, Paragraph 8 of Regulation No 826/2008 and submit them for laboratory testing to the Institute of Food Safety, Animal Health and Environment, as well as, observing the testing reports referred to in Sub-paragraph 6.2 of these Regulations, provide an opinion to the Rural Support Service regarding the compliance of the products referred to in Sub-paragraph 3.2 of these Regulations to the requirements referred to in Regulation No 826/2008;

5.4. supervise the cutting up of meat prior to placing it into storage, as well as evaluate the compliance of the meat to the codes of goods of the Combined Nomenclature of the European Union, prepare report regarding these tests and submit them to the Rural Support Service.

6. The Institute of Food Safety, Animal Health and Environment shall:

6.1. perform reference laboratory functions;

6.2. perform laboratory testing of the samples in the cases referred to in Sub-paragraphs 5.2 and 5.3 of these Regulations and submit the testing reports to the Food and Veterinary Service;

6.3. utilising the methods referred to in Article 7, Paragraph 2 of Regulation No 1272/2009, perform quality analysis of the products to be bought-in under intervention in accordance with the European and international standards adapted in the Latvian National Standards.

7. The Rural Support Service, in accordance with the legislation of the European Union which prescribe the administration and supervision of the market intervention measures for agricultural products, shall submit information to the European Commission in accordance with competence thereof.

8. The Rural Support Service shall draft an intervention measure application and tender forms and place them on the Internet home page thereof.

9. The information referred to in Article 28, Paragraph 1, Sub-paragraphs (a), (b), (c), (d) and (e) of Regulation No 1272/2009, shall be indicated on the packaging of the butter and skimmed milk powder to be bought-in under intervention, but for butter to be placed in private storage the information referred to in Annex I, Part III, Sub-paragraphs (a), (b), (c), (d), (e) and (f) of Regulation No 826/2008 shall be indicated on the packaging.

10. The Rural Support Service shall approve the compliance of the milk processing merchants to the requirements referred to in Article 4, Paragraph 3 of Regulation No 1272/2009 and Annex I, Part III, Section I of Regulation No 826/2008.

II. Buying-in under Intervention and the Administration Thereof

11. A merchant complying with the requirement referred to in Article 4 of Regulation No 1272/2009, (hereinafter - applicant) may apply for buying-in under intervention.

12. An applicant shall, in accordance with Article 10 of Regulation No 1272/2009, submit a written application regarding buying-in under intervention or a tender regarding the buying-in under intervention to the Rural Support Service.

13. If cereals are offered in the buying-in under intervention, the applicant, when submitting the documents referred to in Paragraph 12 of these Regulations, shall also notify the Rural Support Service the name and address of the grower and primary processor of cereals offered under intervention and provide information regarding plant protection products used during the vegetation and storage period.

14. The security prescribed in Article 9 of Regulation No 1272/2009 shall be lodged and administered in accordance with the regulatory enactments regarding the procedure for lodging security to agricultural and the processing products thereof.

15. The rate of LVL 0.02 (exclusive of value added tax) per tonnekilometre shall be utilised for determining the transport costs referred to in Article 29 of Regulation No 1272/2009.

III. Intervention Warehouse Selection

16. A merchant approved or registered by the Food and Veterinary Service may apply for receipt and storage of a product bought-in under intervention, which has in the possession thereof a warehouse complying with the requirements of Article 3 of Regulation No 1272/2009 (hereinafter - intervention warehouse possessor).

17. An intervention warehouse possessor shall submit a written application to the Rural Support Service. The intervention warehouse possessor shall certify in the application that he or she will undertake to fulfil the functions of the intervention warehouse in accordance with the requirements of Regulation No 1272/2009 and indicate the prise of the services, the desired storage amount and the type of product which he or she wishes to store. The following shall be appended to the application:

17.1. a bank statement attesting to the existence of a current account for the merchant;

17.2. technical information regarding the storage place (a site plan of the storage premises, technical support) and information regarding the possibility to maintain data electronically.

18. The Rural Support Service shall approve the selected intervention warehouse and enter into a contract with the intervention warehouse possessor by complying with the requirements determined in Commission Regulation (EC) No 884/2006 of 21 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 1290/2005 as regards the financing by the European Agricultural Guarantee Fund (EAGF) of intervention measures in the form of public storage operations and the accounting of public storage operations by the paying agencies of the Member States.

IV. Sale of the Products Bought-in under Intervention

19. If a merchant wishes to purchase the products bought-in under intervention, he or she shall, in accordance with Article 42 of Regulation No 1272/2009, apply for a tender by submitting a written application to the Rural Support Service regarding the purchase of the intervention product.

20. In order to sell the cereals bought-in under intervention following the notification by the Rural Supply Service until the moment when it is possible to draft a supporting document in accordance with the regulatory enactments regarding the conduct and administration of accounting, the intervention warehouse shall issue an internal transfer bill of lading to the merchant referred to in Paragraph 19 of these Regulations.

V. Private Storage Aid

21. A merchant who produces products in accordance with the requirements of Article 2 of Regulation No 826/2008 may apply for private storage aid for stock farming products (hereinafter - storer).

22. A storer shall submit a written tender to the Rural Support Service regarding the private storage in accordance with Article 10 of Regulation No 826/2008 or an application regarding the private storage in accordance with Article 17 of Regulation No 826/2008.

23. A storer shall, at least two working days prior to placing each product batch in the warehouse (cold store) in private storage, submit to the Rural Support Service the information referred to in Article 20, Paragraph 1(a) and(b) of Regulation No 826/2008.

24. If a storer, when accepting meat in storage, has to perform the activities referred to in Article 26 (1) of Regulation No 826/2008, he or she shall inform the Rural Support Service thereof within a period of two working days prior to placing each batch of the product in the warehouse (cold store) in private storage.

VI. Closing Provision

25. The following Regulations are repealed:

25.1. Cabinet Regulation No 361 of 20 April 2004 Procedure for the Administration and Supervision of Cereal Market Intervention Measures (Latvijas Vēstnesis (Official Gazette of the Government of Latvia), 2004, No 69, 180; 2005, No 43, 190; 2007, No. 20; 2009, No. 37);

25.2. Cabinet Regulation No 874 of 21 October 2008 Procedure for the Administration and Supervision of Milk and Milk-based Product Market Intervention Measures (Latvijas Vēstnesis, (Official Gazette of the Government of Latvia), 2008, No 167; 2009, No 172);

25.3. Cabinet Regulation No 229 of 10 March 2009 Procedures for the Administration and Supervision of Beef, Veal, Pork, Sheep and Goat Meat Market Intervention Measures (Latvijas Vēstnesis 2009, (Official Gazette of the Government of Latvia), No 41).

Prime Minister V. Dombrovskis

Minister for Agriculture J. Dūklavs

Translation © 2011 Valsts valodas centrs (State Language Centre)