The Department of Agriculture, Ministry of Agriculture, Rural Development and Environment, announces that on 9/12/2021, the "Law on Unfair Trade Practices in the Supply Chain of Agricultural Products and Foodstuffs 2021" was passed by the plenary session of the House of Representatives, which will enter into force upon its publication in the Official Gazette of the Republic. The Law, which is harmonizing Directive (EU) 2019/633, is expected to help address unfair trade practices in the agricultural products and food supply chain in the Republic of Cyprus and contribute to the elimination of market imbalance phenomena with negative consequences for the agricultural world, agricultural products and food traders and consumers.
The competent authority for the implementation of the Law is the Department of Agriculture.
The competent authority for the implementation of the Law is the Department of Agriculture.
The competent authority for the implementation of the Law is the Department of Agriculture. Under the provisions of the Law, 13 unfair trade practices are prohibited for products included in Annex I of the Treaty on the Functioning of the European Union and other products which are processed for use as food using Annex I products.In addition to the prohibition on the 13 unfair trade practices, the Law prohibits 6 more practices for all fruit and vegetable products, while for other products the Law prohibits such practices in the case of
[*]The buyer to pay the supplier after 30 days for perishable agricultural products and 60 days for other products.
[*]The buyer to cancel orders of perishable agricultural and food products with less than 30 days' notice.
[*]The buyer or supplier (except in cases of force majeure) may unilaterally and retroactively change the terms of the supply agreement.
[*]The buyer to require the supplier to pay for spoilage or loss of agricultural and food products occurring on the buyer's premises after ownership has been transferred to the buyer and which were not caused by the supplier's negligence or fault.
[*]Buyer to possess or place agricultural products and foodstuffs of one supplier in packing or shipping crates of another supplier.
[*]The buyer to retain reusable packing or shipping crates of agricultural products and foodstuffs owned by the supplier for a period of more than thirty days from the date they came into the buyer's possession, based on the date shown on the sales invoice.
[*]The supplier to place agricultural products and foodstuffs in packing or transport boxes of another supplier.
[*]The supplier shall not immediately issue invoices for agricultural products and foodstuffs sold (with the exception of products for which laboratory analysis is required to determine the selling price, in which case the invoice must be issued within 10 days).
[*]The buyer to require payments from the supplier that are not related to the sale of the supplier's agricultural products and foodstuffs.
[*]The buyer refusing to confirm in writing the terms of a supply agreement between itself and the supplier for which the supplier has requested written confirmation (with the exception of conditional supply agreements concerning products delivered by a supplier that is a member of a producer organisation/co-operative).
[*]The buyer unlawfully obtaining, using or disclosing the supplier's trade secrets.
[*]The buyer threatening to carry out or carrying out acts of commercial retaliation against the supplier.
[*]The buyer demanding compensation from the supplier for the cost of investigating customer complaints relating to the sale of the supplier's products for which the supplier is not in any way responsible.
The following 6 unfair commercial practices are also prohibited for all fruit and vegetable products, while for other products the prohibitions apply in the absence of prior agreements with clear and unambiguous terms:
[*]The buyer to return to the supplier agricultural products and foodstuffs which have not been sold, without having paid for these products, or without having paid for the disposal of these products, or both.
[*]The buyer to charge payment to the supplier as a condition for stocking, displaying for sale, or adding the agricultural products or foodstuffs to the supplier's inventory or for placing such products on the market.
[*]Requiring the buyer to require the supplier to bear all or part of the cost of any discounts on agricultural products and foods sold by the buyer as part of a promotion (exceptions apply).
[*]The buyer to require the supplier to pay for advertising by the buyer of agricultural products and foodstuffs.
[*]The buyer to require the supplier to pay for costs relating to the promotion and marketing by the buyer of agricultural products and foodstuffs.
[*]The purchaser to charge the supplier for the personnel charged with arranging the premises used for the sale of the supplier's products.
Upon publication of this Act, the Department of Agriculture will proceed with its immediate implementation by investigating, on its own motion or upon complaint, by a supplier or purchaser, any violations. For further information or clarification, interested parties may contact the relevant officers of the Department of Agriculture at contact numbers 22464030 and 22408624.
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