# CE2004070EN.01012901.xml

| 20.3.2004 | EN | Official Journal of the European Union | CE 70/129 |
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20.3.2004

EN

Official Journal of the European Union

CE 70/129

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(2004/C 70 E/131)

WRITTEN QUESTION P-2696/03

by Heinz Kindermann (PSE) to the Commission

(2 September 2003)

Subject:   Export refunds for ovalbumin

Subject:

The production of egg products generates greater quantities of albumin than the European market can absorb, while third countries have a substantial need for high-grade albumin. In order to be capable of competing on the world market, the European egg production industry is dependent on export refunds.

Ovalbumin is regarded as a non-Annex I product (CN Code 3502) and so, for the purpose of export refunds, is bracketed with wheat and milk products rather than eggs in shell (CN Code 0408). On account of increased exports in the wheat and milk products sectors, the Commission recently introduced a reduction of over 90 % for export licence applications, a reduction which also applies to ovalbumin, although exports in that sector have not increased.

Ovalbumin accounts for a very small proportion of the total products covered by CN Code 3502, but is very important for small and medium-sized undertakings in the egg production industry.

| 1. | What is the Commission's assessment of the effects on the ovalbumin sector of the measures decided? |
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1.

What is the Commission's assessment of the effects on the ovalbumin sector of the measures decided?

| 2. | Is the Commission prepared to change the tariff classification of ovalbumin by reclassifying it under agricultural products, thus placing it on the same footing as other egg products such as eggs in shell, egg yolk and whole egg (CN Code 0408)? If so, what timescale does it have in mind? If not, why not? |
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2.

Is the Commission prepared to change the tariff classification of ovalbumin by reclassifying it under agricultural products, thus placing it on the same footing as other egg products such as eggs in shell, egg yolk and whole egg (CN Code 0408)? If so, what timescale does it have in mind? If not, why not?

Answer given by Mr Fischler on behalf of the Commission

(26 September 2003)

(26 September 2003)

Egg albumin falling under CN subheading 3502 is indeed not included in Annex I of the EC Treaty. Together with other Non Annex I products containing cereals, sugar, milk and eggs it is however eligible to benefit of export refunds for the amount of agricultural products of the four sectors mentioned which are used for their manufacture.

In the Uruguay Round the Union agreed to limit its export refunds for agricultural products. These commitments were made separately for the various agricultural product sectors and for Non Annex I products.

The recent strong rise of applications for refund licences of Non Annex I products during 2002/2003 has indeed led to ever increasing reduction coefficients (42 % first tranche, 95 % last tranche) in order to respect the Union's World Trade Organisation (WTO) commitments. These reductions were particularly felt by the egg product industry in view of the quite unique position of egg albumin amongst the many Non Annex I products being manufactured from one raw material alone. According to trade statistics available until June 2003, no dramatic drop of export can yet be observed.

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