RUCIP 2012: New rules for potato trade in Europe

On the 1st of March new Rules and Practices of the Inter-European Trade in Potatoes (RUCIP) will start to apply.

The RUCIP European Committee, composed of the European associations Europatat (Potato Trade), EUPPA (Potato Processing) and Intercoop Europe (Cooperatives), has validated in February 2012 the new version, more commonly known as “RUCIP 2012”. For all disputes on contracts signed after the 1st of March only the RUCIP 2012 version will apply.

The first European rules were established as early as 1956 through the efforts of the European Union for the Wholesale Trade in Potatoes, in defining professional practices and setting up a simple and efficient procedure for expert assessments and arbitration.

RUCIP has been amended several times since then, in 1972, 1986, 1993, 2000, 2006, adjusting RUCIP rules to trade requirements and technical evolution of the potato business.

The modifications contained in RUCIP 2012 encompass a thorough review of all three parts, with a will of the RUCIP European Committee to harmonise practices within the chain and simplify the procedures.

The major amendments concern:

• the fixed-term contract,
• the alignment of different tables of tolerances (seed/early/consumption) with UNECE standards,
• the definition of early potatoes,
• the creation of an article with regard to “any origin” for early and ware potatoes and potatoes for processing,
• the washability,
• an amendment of Article 24 of RUCIP on the termination/extension and non-execution of contracts,
• an amendment to the time limits of Article 28 with regard to quality complaints,
• the necessity for experts to be trained as a RUCIP expert,
• recourse to arbitration with a sole arbitrator in disputes with a value <€ 10.000,
• the submission of documents,
• the list of quarantine and progressive diseases.

The new RUCIP 2012 are available for free in English, French and German on the website of Europatat: www.europatat.eu.

The document will also be available in other languages via the national RUCIP secretariats

The reasons for the successful use of RUCIP are that the operators are finding:

• A clear objective allowing harmonised practices between operators, while respecting their specific features: definition of early potatoes, seed potatoes, potatoes for processing and ware potatoes.
• A global view with regard to the rules of contract formation, its application, its control through expert assessments and the sanction of the contract through arbitration.
• A transparent organisation on a European level through the establishment of a European Committee, National Committees in all countries that recognise the RUCIP, national delegates and secretaries which have the capacity to organise expert assessments and arbitration commissions.
• A body of experts and arbitrators with technical competence and a consistent methodology at European level.

The main principles of RUCIP are based on:

• The notion of subsidiarity of the RUCIP rules with respect to the contract rules and national rules;
• The completeness of the provisions which need to be included in the contract;
• The accuracy, particularly through the definition of time limits and the rules regarding formal notice and termination of a contract, in the framework of its enforceability.

These main principles allow clarifying the contractual relations between operators active in the import and export of potatoes. The importance of arbitration in the commercial relations between trade, industry and cooperatives is growing for several reasons:

• The procedure is simple and uniform for those countries participating.
• The procedure is fast and avoids congestion in the courts.
• The confidentiality in the cases and verdicts allows European operators who are working in a professional environment where everyone is concerned about its reputation to settle their dispute in total secrecy.

Source: EuroPatat