L 210/10 Official Journal of the European Communities 3.8.2001 COMMISSION REGULATION (EC) No 1591/2001 of 2 August 2001 laying down detailed rules for applying the cotton aid scheme THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Protocol 4 on cotton annexed to the Act of Accession of Greece ('), as last amended by Council Regulation (EC) No 10502001 (), Having regard to Council Regulation (EC) No 1051/2001 of 22 May 2001 on production aid for cotton (), and in particular Article 19(1) thereof, Whereas: 1) In view of the fluctuations which normally occur in world market prices for fibre, the average world market price for unginned cotton should be determined several times each month. To facilitate the disposal of cotton on the world market, it is necessary to determine the period during which that price is fixed and during which aid applications may be submitted, taking account of the time limits required for proper administration of the aid scheme. If there are no representative offers or quotations for unginned cotton, the world market price for this product should be determined on the basis of the world market price for ginned cotton. For the purposes of Atrticle 4(1) of Regulation (EC) No 1051/2001, the coef- ficients representative of the historical relationship between the world market price for ginned cotton and the price calculated for unginned cotton should be fixed. Offers and quotations need to be adjusted to compen- sate for any deviation from the quality and terms of delivery for which the world market price is determined. Article 8 of Regulation (EC) No 1051/2001 provides for the amount of the aid to be increased where certain conditions are fulfilled and up to certain maximum limits. Rules should be laid down for determining this increase. In view of the adjustments and increases to be determined, the amount of aid should be fixed after those adjustments and increases have been made but before a final date which allows the balance of the aid to be paid before the end of the marketing year. Detailed rules on the submission of aid applications should be laid down for the purpose of applying the amount of the aid to the corresponding quantities of cotton eligible for aid on the basis of the exact period during which the aid applications covering those quant- 19.11.1979, p. 174. 0] L 291, 0] L 148, 1.6.2001, p. 1. 0] L 148, 1.6.2001, p. 3. ities are submitted. To prevent speculation during periods of sudden disturbance on the world market for fibre, it is appropriate to authorise aid applications to be submitted during such periods subject to specific condi- tions. Adequate controls must be set up in order to check the quantity of unginned Community cotton entering each ginning plant. To that end, the terms ‘batch’ and ‘entry of the batch in the ginning plant’ should be defined, an application for supervised storage should be required and detailed rules should be laid down on how such applications are to be submitted. In order to prevent growers from holding unginned cotton for too long, thereby allowing the quality of the stored product to deteriorate, the Member States should be authorised to fix a final date by which applications for supervised storage must be submitted which is earlier than the final date for submission of aid applications. For adminis- trative reasons, cotton should be ginned within a certain period. Detailed rules on calculating and paying aid advances should be laid down. Payment of advances should be subject to the lodging of a security in order to ensure that the amounts in question are paid or forfeit if a given obligation is not fulfilled. Unless otherwise provided, such securities must meet the requirements set out in Commission Regulation (EEC) No 2220/85 of 22 July 1985 laying down common detailed rules for the application of the system of securities for agricultural products (), as last amended by Regulation (EC) No 1932/1999 (). Payment of an advance on the minimum price to be paid to producers is notably one of the requirements to be met by undertakings ginning on their own account in order to qualify for aid. The detailed rules for calculating and paying to the producer that advance on the minimum price should therefore be laid down. In order to ensure that cotton covered by aid applica- tions is of proper origin, it must be possible to identify areas sown to cotton by means of the system for identi- fying agricultural plots provided for in Council Regula- tion (EEC) No 3508/92 of 27 November 1992 estab- lishing an integrated administration and control system for certain Community aid schemes (%), as last amended by Commission Regulation (EC) No 495/2001 (). 81985, p. 5. 0.9.1999, p. 11.