1999R0174 — EN — 30.01.1999 — 000.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSION REGULATION (EC) No 174/1999
of 26 January 1999
laying down special detailed rules for the application of Council Regulation (EEC) No 804/68 as
regards export licences and export refunds in the case of milk and milk products
(OJ L 20, 27.1.1999, p. 8)
Corrected by:
►C1Corrigendum, OJ L 21, 28.1.1999, p. 28 (174/1999)
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▼B
COMMISSION REGULATION (EC) No 174/1999
of 26 January 1999
laying down special detailed rules for the application of Council
Regulation (EEC) No 804/68 as regards export licences and export
refunds in the case of milk and milk products
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
HavingregardtoCouncilRegulation(EEC)No804/68of27June1968
on the common organisation of the market in milk and milk prod-ucts(
1), as last amended by Regulation (EC) No 1587/96(2), and in
particular Articles 13(3), 16a(1) and 17(9) and (14) thereof,
1.Whereas Commission Regulation (EC) No 1466/95 of 27 June1995 laying down special detailed rules of application for exportrefunds on milk and milk products(
3), as last amended by Regu-
lation (EC) No 2184/98(4), has been substantially amended
severaltimes;whereas,sincefurtheramendmentsaretobemade,it should be recast in the interests of clarity and efficiency;
2.Whereas under the Agriculture Agreement concluded during theUruguay Round of the GATT trade negotiations(
5) (hereinafter
referred to as the ‘Agriculture Agreement'), export refunds onagricultural products, including milk products, are limited withineach 12-month period starting from 1 July 1995 to a maximumquantity and a maximum value; whereas, in order to ensurecompliance with those limits, the issue of export licences shouldbe monitored; whereas procedures must also be adopted for allo-cating the quantities which may be exported with a refund;
3.Whereas Regulation (EEC) No 804/68 lays down general rulesfor granting of export refunds in the milk and milk productssector, in order, in particular, to permit the monitoring of thevalue and quantity limits for refunds; whereas detailed rules forthe application of those arrangements should be laid down;
4.Whereas, by way of derogation from Commission Regulation(EEC) No 3665/87 of 27 November 1987 laying down commondetailed rules for the application of the system of export refundson agricultural products(
6), as last amended by Regulation (EC)
No 2334/98(7), cases where a refund may be granted without
presentation of an export licence should be defined and themaximum time that products may remain under customs controlshould be specified;
5.Whereas special provisions should be adopted for the milk andmilkproductssector,inparticularwithregardtolicences,bywayofderogationfromCommissionRegulation(EEC)No3719/88of16 November 1988 laying down common detailed rules for theapplication of the system of import and export licences andadvance fixing certificates for agricultural products(
8), as last
amended by Regulation (EC) No 1044/98(9); whereas, in addi-
tion, the tolerance permitted by that Regulation as regards thequantity of goods exported compared with the quantity indicatedon the licence should be reduced and, in order to ensure effectivecontrols on limits, there should be no refunds paid on quantitiesexceedingwhatisindicatedonthelicence;whereasthesecurities
(1) OJ L 148, 28. 6. 1968, p. 13.
(2) OJ L 206, 16. 8. 1996, p. 21.
(3) OJ L 144, 28. 6. 1995, p. 22.
(4) OJ L 275, 10. 10. 1998, p. 21.
(5) OJ L 336, 23. 12. 1994, p. 1.
(6) OJ L 351, 14. 12. 1987, p. 1.
(7) OJ L 291, 30. 10. 1998, p. 15.
(8) OJ L 331, 2. 12. 1988, p. 1.
(9) OJ L 149, 20. 5. 1998, p. 11.
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to be lodged when licence applications are submitted should besufficient to prevent speculative applications;
6.Whereas the term of validity of export licences should be fixed;whereas that term should vary according to the productsconcerned, with a shorter term for products where there is ahigher risk of speculation;
7.Whereas, in order to ensure accurate checking of productsexported and to minimise the risk of speculation, the possibilityof changing the product for which a licence has been issuedshould be restricted;
8.Whereas Article 2a(2) of Regulation (EEC) No 3665/87 laysdown rules for the use of export licences with advance fixing ofthe refund for the exportation of products with a 12-digit codeother than that shown in Section 16 of the licence; whereas thisprovision becomes applicable in a specific sector only if productcategories as referred to in Article 13a of Regulation (EEC) No3719/88 and product groups as referred to in point (b) of the firstsubparagraph of Article 2a(2) of Regulation (EEC) No 3665/87have been defined;
9.Whereas for the milk and milk product sector, product categoriesare already defined with reference to the categories provided forin the Agriculture Agreement; whereas in the interests of soundmanagement this use of categories should be retained and Article2a(2) of Regulation (EEC) No 3665/87 applied on the basis onlyof defined product groups;
10.Whereas in the milk sector refund rates are highly differentiated,notably according to fat content; whereas, so that this arrange-ment will not be called into question while at the same time theproportionalityobjectiveofArticle2a(2)ofRegulation(EEC)No3665/87 is respected, the product groups should be narrowlydefined and for certain products the validity of export licencesshould extend to products that in fat content are immediatelyadjacent in CN code to the product for which a refund has beenfixed in advance;
11.Whereas, to enable traders to participate in invitations to tenderopened by third countries without affecting the restrictions asregards volume, a system of provisional licences should be intro-duced giving successful tenderers the right to a full licence;
12.Whereas, in order to ensure effective monitoring of licencesissued, which depends on the notification of information to theCommission by the Member States, a waiting time should beprovided for before licences are issued; whereas, in order toensure the smooth operation of the arrangements and, in partic-ular, an equitable allocation of the quantities available within thelimits laid down by the Agriculture Agreement, various manage-ment measures should be laid down and, in particular, provisionshould be made for the issue of licences to be suspended and fora reduction coefficient to be applied to the quantities applied for;
13.Whereas the refund rate should be determined for productseligible for export refunds in the context of food-aid operations;
14.Whereas, to ensure that licences are correctly used, for certainexports with refunds the country of destination should be definedas a compulsory destination as referred to in Article 21(1) ofRegulation (EEC) No 3665/87;
15.Whereas experience has shown that the number of applicationsforexportlicencesforparticularcheesevariesaccordingtodesti-nation; whereas, in order that special measures can be appliedaccording to the destination indicated on licence applications,destination zones should be fixed and the destination zone indi-cated on export licences made obligatory for products fallingwithin CN code 0406;
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16.Whereas the method for fixing the refund on milk products
containing added sugar, the price of which is determined by theprice of the ingredients, should be laid down according to thepercentage of the ingredients contained therein; whereas,however, to facilitate the management of refunds for these prod-ucts, and particularly measures to ensure compliance withcommitments regarding exports in the context of the AgricultureAgreement, a maximum quantity should be fixed for sucroseincorporated for which a refund may be granted; whereas 43%by weight of whole product is representative of the sucrosecontent of such products;
17.Whereas Article 8(3) of Regulation (EEC) No 3665/87 providesthat refunds may be granted for ingredients of Community originin processed cheese manufactured under the inward processingarrangements; whereas certain special rules are needed to ensurethat this specific measure operates properly and can be effec-tively checked;
18.Whereas, under the Agreement concluded between the EuropeanCommunity and Canada approved by Council Decision 95/591/EC(
1) export licences issued by the European Community
must be presented for cheese qualifying for preferential terms onimport into Canada; whereas the detailed rules for issuing suchlicences should be laid down; whereas, to ensure that the quant-ities of cheese imported into Canada under the import quotacorrespond to the quantities for which licences have been issued,the licences duly stamped by the Canadian authorities should bereturned to the competent bodies of the Member States and thedataonexportsshouldbeforwardedbytheMemberStatestotheCommission;
19.Whereas, in the framework of the consultations with SwitzerlandontheimplementationoftheresultsoftheUruguayRound,ithasbeenagreedtoapplyasetofmeasuresprovidinginparticularfora reduction in the customs duties on certain Community cheesesimported into Switzerland; whereas the Community origin ofsuch products should be guaranteed; whereas, to that end, exportlicences should be compulsory for all cheese exported underthesearrangements,includingcheeseonwhichexportrefundsarenot payable; whereas licences should be issued subject to presen-tation by the exporter of a declaration certifying the Communityorigin of the product;
20.Whereas the Community has the option of designating whichimporters may import Community cheeses into the United Statesunder the additional quota arising from the Agriculture Agree-ment; whereas this would allow the Community to maximise thevalue of the quota; whereas a procedure should therefore be laiddown for designating importers on the basis of the allocation ofexport licences for the products concerned;
21).Whereas the measures provided for in this Regulation are inaccordance with the opinion of the Management Committee forMilk and Milk Products,
HAS ADOPTED THIS REGULATION:
CHAPTER I
General arrangements for export refunds
Article 1
1. Exports from the Community of products listed in Article 1 of
Regulation (EEC) No 804/68 for which an export refund is requestedshall be subject to the presentation of an export licence, except in the
(1) OJ L 334, 30. 12. 1995, p. 25.
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cases referred to in Article 2. The refund to be paid shall be the rate
valid on the day the application for the export licence or, where rele-vant, the provisional licence, is submitted.
2. Section 7 of licence applications and licences shall show the code
number of the country of destination as referred to in the Annex toCommission Regulation (EC) No 2317/97(
1).
3. Licence applications which, within the meaning of Article 15 of
Regulation (EEC) No 3719/88, were lodged on a Thursday, shall bedeemed to have been submitted on the next working day.
Article 2
Refunds shall be granted only on presentation of an export licence.BywayofderogationfromArticle2aofRegulation(EEC)No3665/87,
however, no licence shall be required:
(a) where the refund for an export declaration, calculated on the basis
of the refund applicable on the first day of the month of export, isnot more than EUR 60;
(b) in the cases referred to in Articles 34, 38, 42, 43 and 44(1) of
Regulation (EEC) No 3665/87.
For the purposes of point (a) of the second paragraph, where several
separate codes in the nomenclature for refunds, as laid down byCommission Regulation (EC) No 3846/87(
2), or the Combined
Nomenclature are entered in an export declaration, the particularsrelating to each code shall be deemed to constitute a separate declara-tion.
Article 3
No refund shall be granted on exports of cheese where the free-at-fron-
tier price prior to application of the refund in the Member State ofexport is less than EUR 230 per 100 kilograms.
However, the first paragraph shall not apply to cheese falling within
code 040690339919 of the nomenclature for refunds.
Article 4
1. The four product categories for the purposes of the Agriculture
Agreement shall be those set out in Annex I hereto.
2. The second paragraph of Article 13a of Regulation (EEC) No
3719/88shallnotapplytotheproductsreferredtoinArticle1(1)ofthisRegulation.
3. WithoutprejudicetotheapplicationofArticle5(3)ofthisRegula-
tion, the product groups within the meaning of point (b) of the firstsubparagraph of Article 2a(2) of Regulation (EEC) No 3665/87 shall bethose set out in Annex II.
Article 5
1. Section 16 of licence applications and licences shall show the
12-digitproductcodeofthenomenclatureforrefunds.Licencesshallbevalidforthatproductaloneexceptinthecasesspecifiedinparagraphs2and 3.
2. For products falling within CN codes 0401, 0402, 0403, 0404,
0405and 2309, licence holders may on request obtain a change of the
code in Section 16 of the export licence to another code in the samecategory, as referred to in Annex I, where the refund is identical. Suchrequests must be lodged before completion of the formalities referred toin Article 3 or 25 of Regulation (EEC) No 3665/87.
(1) OJ L 321, 21. 11. 1997, p. 19.
(2) OJ L 366, 24. 12. 1987, p. 1.
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3. By way of derogation from point (b) of the first subparagraph of
Article 2a(2) of Regulation (EEC) No 3665/87, export licences withadvance fixing of the refund shall also be valid for exportation of aproductwitha12-digitcodeotherthanthatenteredinSection16ofthelicence if the two products are adjacent in one of the groups laid downin Annex II or both are in group 23.
4. In cases referred to in paragraph 3, refunds shall be calculated in
accordancewiththesecondsubparagraphofArticle2a(2)ofRegulation(EEC) No 3665/87.
Article 6
Exportlicencesshallbevalidfromthedayofissue,withinthemeaning
of Article 21(1) of Regulation (EEC) No 3719/88, until:
(a) the end of the sixth month following issue in the case of products
falling within CN code 040210;
(b) the end of the fourth month following issue in the case of products
falling within CN code 0405;
(c) the end of the second month following issue in the case of products
falling within CN code 0406;
(d) the end of the fourth month following issue for the other products
referred to in Article 1 of Regulation (EEC) No 804/68;
(e) the date by which the obligations arising from invitations to tender
pursuant to Article 8(1) must be fulfilled and by the end of theeighth month following issue of the full licence referred to inArticle 8(3) at the latest.
Article 7
By way of derogation from Articles 27(5) and 28(5) of Regulation
(EEC) No 3665/87, the period during which the products referred to inArticle 1 of Regulation (EEC) No 804/68 may remain covered by thearrangements provided for in Council Regulation (EEC) No 565/80(
1)
shall be equal to the remainder of the term of validity of the exportlicence.
Article 8
1. In the case of an invitation to tender issued by a public body in a
third country as referred to in Article 44(1) of Regulation (EEC) No3719/88, except for invitations to tender concerning products fallingwithinCNcode0406,tradersmayapplyforaprovisionalexportlicencefor the quantity covered by their tender subject to the lodging of asecurity. The security for provisional licences shall be equal to 75% ofthe rate fixed in accordance with Article 9.
Traders shall furnish proof that the body is public or subject to public
law.
2. Provisional licences shall be issued on the fifth working day
following that on which the application is lodged, provided that thespecial measures referred to in Article 10(3) have not been adopted inthe meantime.
3. By way of derogation from Article 44(5) of Regulation (EEC) No
3719/88, the period for submitting the information referred to in thatparagraph shall be 60 days. Before the end of that period, traders shallapply for the full export licence, which shall be issued on presentationof proof that they have been awarded a contract.
On presentation of proof that the tender has been rejected or that the
quantity awarded by the contract is less than indicated on the provi-sional licence, the whole or part of the security shall be released asappropriate.
(1) OJ L 62, 7. 3. 1980, p. 5.
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4. Licence applications referred to in paragraphs 2 and 3 shall be
made in accordance with Article 13 of Regulation (EEC) No 3719/88.
5. The provisions of this chapter, with the exception of Article 10,
shall apply to full licences.
Article 9
The security referred to in Article 14(2) of Regulation (EEC) No
3719/88 shall be equal to the percentage of the refund fixed for eachproduct code applicable on the day the export licence application islodged, as follows:
(a) 5% for products covered by CN code 0405;
(b) l5% for products covered by CN code 040210;
(c) 30% for products covered by CN code 0406;
(d) 20% for other products.
The amount of the refund referred to in the first paragraph shall be that
calculated for the total quantity of the product concerned except formilk products containing added sugar.
For milk products containing added sugar, the amount of the refund
referred to in the first paragraph shall be equal to the total quantity ofthe whole product concerned, multiplied by the refund rate applicableper kilogram of milk product.
Article 10
1. Export licences shall be issued on the fifth working day following
thedayonwhichapplicationsaresubmitted,providedthatthequantitiesfor which licences have been applied for have been communicated inaccordance with Article 6(1) of Commission Regulation (EEC) No210/69(
1)andthatthespecialmeasuresreferredtoinparagraph3have
not been adopted in the meantime.
2. A decision may be taken to adopt one or more of the special
measures provided for in paragraph 3 where:
(a) the issue of the licences applied for appears likely to result in an
overruninthebudgetresourcesavailableorintheexhaustionofthemaximum quantities which may be exported with refund during the12-month period in question or in a shorter period to be determinedpursuant to Article 11;
or
(b) theissueofthelicencesappliedfordoesnotallowthecontinuityof
exports to be guaranteed during the rest of the period concerned.
For the purposes of the first subparagraph, account shall be taken, as
regards the product in question, of:
(a) the seasonal nature of trade, the market situation and in particular
thetrendinpricesonthemarketandtheexportconditionsresultingtherefrom;
(b) theneedtopreventspeculationfromdistortingcompetitionbetween
traders.
3. In the cases referred to in paragraph 2, the Commission may
decide, for the product or products in question:
(a) to suspend the issue of licences for a maximum of five working
days;
(b) to apply an allocation coefficient to the quantities requested. Where
a coefficient of less than 0,4 is applied to the quantities requested,applicants may, within three working days of publication of thedecision fixing the coefficient, request the cancellation of theirlicence application and the release of their security.
(1) OJ L 28, 5. 2. 1969, p. 1.
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Furthermore, in accordance with the procedure provided for in Article30 of Regulation (EEC) No 804/68, the Commission may decide:
(a) to suspend the issue of licences for the product or products
concerned, without prejudice to the first indent of (a), for a periodexceeding five working days;
(b) attheendoftheperiodofsuspension,tofixrefundsbyinvitationto
tender for products falling within CN codes 04021019,04051090, 04059010, 04059090 and 04051019. The relevantlicences shall then be issued.
4. Licence applications submitted during the period of suspension
shall not be admissible.
Article 11
Where the total quantity covered by the licence applications submitted
is such that there is a risk of early exhaustion of the maximum quant-ities which may be exported with refund during the 12-month period inquestion,theCommissionmaydecide,inaccordancewiththeprocedureprovided for in Article 30 of Regulation (EEC) No 804/68, to allocatethose maximum quantities over periods to be determined.
Article 12
1. Wherethequantityexportedexceedsthatshownonthelicence,no
refund shall be payable on the overrun.
Tothatend,Section22oflicencesshallcontainthewords:‘Paymentof
the refund restricted to the quantity shown in Sections 17 and 18'.
2. By way of derogation from the provisions of Articles 8(5) and
33(2) of Regulation (EEC) No 3719/88 on tolerances for quantitiesexported, the following rates shall apply:
(a) the rate provided for in Article 8(5) shall be 2%;
(b) the rate provided for in Article 33(2), first and second subpara-
graphs, shall be 98%;
(c) the rate provided for in Article 33(2), third subparagraph, shall be
2%.
Article 44(9)(c) of Regulation (EEC) No 3719/88 shall not apply.
Article 13
1. Article 10 shall not apply to the issuing of export licences for
food-aid supplies in accordance with Article 10(4) of the AgricultureAgreement.
2. Therateofrefundapplicabletonationalfood-aidsuppliesshallbe
thatapplyingonthedaytheMemberStateopenstheinvitationtotenderfor the supply of food aid.
Article 14
The country of destination referred to in Article 1(2) shall be a compul-
sory destination for the purposes of Article 21(1) of Regulation (EEC)No 3665/87 for licences issued pursuant to Article 8 of this Regulation.
Article 15
1. For licences issued for products falling within CN code 0406, the
following words shall be entered in Section 20 of applications andlicences:
‘Licence valid for zone ... as defined in Article 15(3) of Regula-
tion (EC) No 174/1999'
The zone indicated shall be the zone, as defined in paragraph 3, to
which the country of destination indicated in Section 7 of licenceapplications and licences belongs.
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2. The zone as referred to in paragraph 1 shall be a compulsory
destination for the purposes of Article 21(1) of Regulation (EEC) No3665/87.
No refund shall be paid where the actual destination is in a zone other
than that indicated in the licence application and in the licence.
3. The following zones shall be defined for the purposes of para-
graph 1:
(a)ZoneI: destinationcodes053to096(inclusive);
(b)ZoneII: destinationcode400;(c)ZoneIII: allotherdestinationcodes.
Article 16
1. For milk products containing added sugar, the refund shall be
equal to the sum of the following components:
(a) a component representing the quantity of milk product;
(b) a component representing the quantity of added sucrose, up to a
maximum of 43% by weight of whole product.
However, the component referred to in (b) shall apply only if the added
sucrose has been produced from sugar beet or cane harvested in theCommunity.
2. Thecomponentreferredtoinparagraph1(a)shallbecalculatedby
multiplying the basic amount of the refund by the milk product contentof the whole product.
The basic amount referred to in the first subparagraph shall be the
refundononekilogramofmilkproductcontainedinthewholeproduct.
3. Thecomponentreferredtoinparagraph1(b)shallbecalculatedby
multiplying the sucrose content of the whole product, up to a maximumof 43%, by the basic amount of the refund applicable on the day thelicence application is submitted for the products listed in Article 1(1)(d)of Council Regulation (EEC) No 1785/81(
1).
However, the sucrose component shall not be taken into account where
the basic amount of the refund for the milk product content referred toin the second subparagraph of paragraph 2 is zero.
4. For the purposes of paragraph 1(b), sucrose shall be treated as
sucrose produced from beet or cane harvested in the Community if ithas been:
(a) imported into the Community under Protocol 8 on sugar annexed to
the ACP-EEC Lomé Convention(
2), or the Agreement on cane
sugar between the European Economic Community and theRepublic of India(
3);
(b) obtained from products imported under the provisions referred to in
(a).
Article 17
1. Exportlicenceapplicationsformilkandmilkproductsexportedas
products falling within CN code 040630 in accordance with the thirdindent of Article 8(3) of Regulation (EEC) No 3665/87 shall be accom-panied by the authorisation granted by the competent authorities to usethe customs arrangements in question.
2. Section 20 of licence applications and licences shall contain a
reference to this Article.
(1) OJ L 177, 1. 7. 1981, p. 4.
(2) OJ L 229, 17. 8. 1991, p. 3.
(3) OJ L 190, 23. 7. 1975, p. 36.
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3. The Member States shall take the necessary steps under thearrangements referred to in paragraph 1 to identify and check thequality and quantity of products referred to in that paragraph for whicharefundhasbeenappliedforandtoapplytheprovisionsonentitlementto the refund.
CHAPTER II
Specific arrangements
Article 18
1. An export licence shall be required for all exports of cheese to
Canada under the quota referred to in the Agreement concludedbetween the European Community and Canada.
2. Licence applications and licences shall show:
(a) in Section 7, the words ‘CANADA — 404';
(b) in Section 15, the six-digit description of the goods in accordance
with the Combined Nomenclature for products falling within CNcodes 040610, 040620, 040630 and 040640 and the eight-digitdescriptionforproductsfallingwithinCNcode040690.Section15of applications and licences may contain no more than six productsthus described;
(c) in Section 16, the eight-figure CN code and the quantity in kilo-
gramsforeachoftheproductsreferredtoinSection15.Thelicenceshall be valid only for the products and quantities so designated;
(d) in Sections 17 and 18, the total quantity of products referred to in
Section 16;
(e) in Section 20, the following words:
‘Cheeses for direct export to Canada. Article 18 of Regulation (EC)
No 174/1999. Quota for ... (year)'
or, as the case may be,
‘Cheeses for export directly/via New York to Canada. Article 18 of
Regulation (EC) No 174/1999. Quota for ... (year)'.
WherecheeseistransportedtoCanadaviaEuropeanthirdcountries,
such countries must be indicated instead of, or with, a reference toNew York;
(f) in Section 22, the words ‘without export refund'.
3. Licence applications shall be admissible only where applicants:
(a) declare in writing that all material falling within Chapter 4 of the
Combined Nomenclature and used in the manufacture of productscovered by their application has been produced entirely within theCommunity;
(b) undertake in writing to provide, at the request of the competent
authorities, any further substantiation which the latter considernecessary for the issuing of licences and to accept, where applic-able, any checks by those authorities on the book-keeping andmanufacturing conditions of the products concerned.
4. Licences shall be issued immediately after applications are
submitted. At the request of applicants, a certified copy of the licenceshall be issued.
5. Licencesshallbevalidfromtheirdateofissuewithinthemeaning
of Article 21(1) of Regulation (EEC) No 3719/88 until 31 Decemberfollowing that date.
However, licences may be issued from 20 December and shall be valid
from l January until 31 December of the following year provided thewords ‘quota for ... (year)' in Section 20 of licence applications andlicences refer to the following year.
6. Holders of export licences shall ensure that the licence or a
certified copy thereof:
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(a) is presented to the competent Canadian authority on the day on
which the import customs formalities are conducted;
(b) is returned, stamped by the competent Canadian authority, to the
issuing body within two months of the date referred to in (a).
The Member States shall take the measures necessary to ensure that
point (b) of the first subparagraph is complied with.
7. By way of derogation from Article 9 of Regulation (EEC) No
3719/88, licences shall not be transferable.
8. The competent authority of the Member State shall report to the
Commission, in accordance with Annex IV, before the end of Januaryfor the preceding six-month period and before the end of July for theprevious quota year, the number of licences issued and the quantity ofcheese concerned, together with the number of licences stamped by theCanadian authorities and submitted by the declarant and the quantityconcerned.
9. Chapter I shall not apply.
Article 19
1. An export licence shall be required for exports to Switzerland of
the cheeses listed in Annex III, which are eligible for an exemptionfrom or a reduction in customs duties on import into that country.
2. Section 20 of licence applications and licences shall contain the
words ‘Article 19 of Regulation (EC) No 174/1999'.
Licences issued under this Article shall be valid only for the exports
referred to in paragraph 1.
3. Licence applications shall be admissible only where applicants:
(a) declare in writing that all material falling within Chapter 4 of the
Combined Nomenclature and used in the manufacture of productscovered by their application has been produced entirely within theCommunity;
(b) undertake in writing to provide, at the request of the competent
authorities, any further substantiation which the latter considernecessary for the issuing of licences and to accept, where applic-able, any checks by those authorities of the book-keeping andmanufacturing conditions of the products concerned.
4. Chapter I shall apply to exports covered by refunds applications.5. In the case of exports not covered by refund applications, Section
22 of licence applications and licences shall contain the words ‘Withoutan export refund'.
Licences shall be issued as soon as possible after applications are
submitted.
Licences shall be valid from their date of issue within the meaning of
Article 21(1) of Regulation (EEC) No 3719/88 until the following 30June.
6. With the exception of Article 5(1), the provisions of Chapter I
shall not apply to the exports referred to in paragraph 5.
For cheeses not included in the nomenclature for refund however, the
eight-figure code of the Combined Nomenclature shall be entered inSection 16 of licence applications and licences.
7. Certified copies of licences shall be issued to applicants on
request.
Article 20
1. In accordance with the procedure provided for in Article 30 of
Regulation (EEC) No 804/68, the Commission may decide that exportlicences for products falling within CN code 0406 for export to theUnited States of America as part of the additional quota under theAgriculture Agreement and the tariff quotas originally resulting from
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the Tokyo Round and granted to Austria, Finland and Sweden by the
United States in Uruguay Round list XX shall be issued in accordancewith paragraphs 2 to 11.
2. Traders may apply, within a period to be determined, for a provi-
sional export licence for the export of the products referred to inparagraph1duringthefollowingcalendaryearsubjecttothelodgingofa security equal to 50% of the rate fixed in accordance with Article 9.
Traders shall at the same time indicate:
(a) thedesignationofproductgroupcoveredbytheUnitedStatesquota
in accordance with Additional Notes 16 to 23 and 25 in Chapter 4of the Harmonized Tariff Schedule of the United States of America(most recent version);
(b) the product names in accordance with the Harmonized Tariff
Schedule of the United States of America (most recent version);
(c) the quantity of products for which provisional licences are being
sought which they have exported to the United States during thepreceding three calendar years. To this end, the trader whose nameappears on the relevant export declaration shall be regarded as theexporter;
(d) the name and address of the importer in the United States desig-
nated by the applicant;
(e) whether the importer is a subsidiary of the applicant.
In addition, applications shall be accompanied by a certificate from the
designated importer stating that he is eligible under the rules in force inthe United States on the issue of import licences for the productsreferred to in paragraph 1 as part of the quota.
3. Where applications for provisional licences are submitted in
respect of a quantity of products in excess of one of the quotas referredto in paragraph 1 for the year in question, the Commission may:
(a) allocate provisional licences taking into account the quantity of the
same products exported to the United States by the applicant in thepast;
and/or
(b) allocate provisional licences in preference to applicants whose
designated importers are subsidiaries;
and/or
(c) apply a reduction coefficient to the quantities for which application
is made.
4. Where applying a reduction coefficient would mean allocating
provisionallicencesforquantitiesoflessthan5tonnes,theCommissionmay allocate licences by drawing lots.
5. Where applications are submitted for provisional licences for
quantitiesofproductnotexceedingthequotasreferredtoinparagraph1for the year concerned, the Commission may allocate the remainingquantities to applicants in proportion to the quantities applied for.
6. Section 20 of provisional licences as referred to in the first
subparagraph of paragraph 2 shall include the following:
‘Provisionalexportlicencereferredtointhefirstsubparagraphof
Article 20(2) of Regulation (EC) No 174/1999: not valid forexports'.
7. Thenamesofimportersdesignatedbytraderstowhomprovisional
licences are issued shall be forwarded to the competent United Statesauthorities.
8. In the case where an import licence for the quantities concerned is
not allocated to the importer designated by an operator, in circum-stances which do not cast doubt on the sincerity of the attestationreferred to in the third subparagraph of paragraph 2, the trader may beauthorised by the Member State to designate another importer providedthatthelatterappearsonthelistcommunicatedtothecompetentauthor-
1999R0174 — EN — 30.01.1999 — 000.001 — 13
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ities of the United States of America, in accordance with paragraph 7.The Member State shall inform the Commission as soon as possible ofthe change of designated importer and the Commission shall notify thechange to the competent authorities of the United States.
9. Securitiesshallbereleasedinwholeorinpartforrejectedapplica-
tions or for quantities in excess of those allocated.
10. Before the end of the year for which provisional licences are
issued,thetradershallapplyforthefulllicence,eveninthecaseofpartquantities, which shall be issued forthwith. The following words shallbeenteredinSection20oftheapplicationforthefulllicenceandinthelicence itself:
‘For export to the United States of America: Article 20 of Regu-
lation (EC) No 174/1999'.
The full licences issued shall be valid only for exports as referred to in
paragraph 1 for the year in question.
11. With the exception of Articles 4 and 10, the provisions of
Chapter I shall apply to full licences.
CHAPTER III
Final provisions
Article 21
Regulations (EEC) No 3665/87 and (EEC) No 3719/88 shall apply save
as otherwise provided in this Regulation.
Article 22
Regulation (EC) No 1466/95 is hereby repealed.References to the repealed Regulation shall be construed as references
to this Regulation.
Regulation (EC) No 1466/95 shall continue to apply to licences issued
against applications submitted before the entry into force of the presentRegulation.
Article 23
►
C1This Regulation shall enter into force on the third day ◄
following its publication in the Official Journal of the European
Communities .
It shall apply from 1 February 1999.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
all Member States.
1999R0174 — EN — 30.01.1999 — 000.001 — 14
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Number Description CNcodeANNEXI
Product categories laid down in Article 4(1)
I Butter,otherfatsandoils
derivedfrommilkandspreads040510
04052090040590
II Skimmed-milkpowder 040210
III Cheeseandcurd 0406
IV Othermilkproducts 040104022104022904029104029904031011to0403103904039011to0403906904049023091015230910192309103923091059230910702309903523099039230990492309905923099070
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GroupNo Milkproductcode(nomenclatureforexportrefunds)ANNEXII
Product groups set by Article 4(3)
1 040110109000
040120119100040120119500040120919100040120919500040130119100040130119400040130119700040130319100040130319400040130319700040130919100040130919400040130919700
2 040110909000040120199100040120199500040120999100040120999500040130199100040130199400040130199700040130399100040130399400040130399700040130999100040130999400040130999700
3 040221119200040221119300040221119500040221119900040221919100040221919200040221919300040221919400040221919500040221919600040221919700040221919900
4 040221179000
040221199300040221199500040221199900040221999100040221999200040221999300040221999400040221999500040221999600
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GroupNo Milkproductcode(nomenclatureforexportrefunds)
040221999700
040221999900
5 040229159200040229159300040229159500040229159900040229919100040229919500
6 040229199200040229199300040229199500040229199900040229999100040229999500
7 040291119110040291119120040291319100040291519000040291919000
8 040291119310040291119350040291119370040291319300040291519000040291919000
9 040291199110040291199120040291399100040291599000040291999000
10 040291199310040291199350040291199370040291399300040291599000040291999000
11 040299119110040299119130040299119150040299319110040299319300040299319500040299919000
12 040299119310
040299119330040299119350040299319150040299319300040299319500
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GroupNo Milkproductcode(nomenclatureforexportrefunds)
040299919000
13 040299199110
040299199130040299199150040299399110040299399300040299399500040299999000
14 040299199310040299199330040299199350040299399150040299399300040299399500040299999000
15 040310119400040310119800040310139800040310199800
16 040310319400040310319800040310339800040310399800
17 040390119000040390139200040390139300040390139500040390139900040390199000
18 040390319000040390339200040390339300040390339500040390339900040390399000
19 040390519100040390519300040390539000040390599110040390599140040390599170040390599310040390599340040390599370040390599510040390599540040390599570
1999R0174 — EN — 30.01.1999 — 000.001 — 18
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GroupNo Milkproductcode(nomenclatureforexportrefunds)
20 040390619100
040390619300040390639000040390699000
21 040490219100040490239120040490239130040490239140040490239150
22 040490819100040490839110040490839130040490839150040490839170
23 040510119500040510119700040510199500040510199700040510309100040510309300040510309500040510309700040510509100040510509300040510509500040510509700040510909000040520909500040520909700040590109000040590109000
1999R0174 — EN — 30.01.1999 — 000.001 — 19
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CNcodeDescription
(Exportrefundnomenclature)ANNEXIII
Switzerland
Products referred to in Article 19(1)
0406 Cheeseandcurd:
ex 04061020 −−−−−Ricotta,salted
040620 −Gratedorpowderedcheese,ofallkinds
040630 −Processedcheese,notgratedorpowdered
040640 −Blue-veinedcheese
ex 040690 −Othercheese:
04069023 −−−Edam
04069025 −−−Tilsit
04069027 −−−Butterkäse
04069061 −−−−−−− GranaPadano,ParmigianoReggiano
04069063 −−−−−−− FioreSardo,Pecorino
04069069 −−−−−−− Other
04069073 −−−−−−− Provolone
ex 04069075 −−−−−−− Asiago,Caciocavallo,Montasio
04069076 −−−−−−− Danbo,Fontal,Fontina,Fynbo,Havarti,Maribo,Samsø
04069078 −−−−−−− Gouda
ex 04069079 −−−−−−− Esrom,Italico,Saint-Nectaire,Saint-Paulin
ex 04069087 −−−−−−−−−−−−− Idiazabal,Manchego,Roncal,manufacturedexclusively
fromsheep’smilk
ex 040690 −Elbo,Galantine,Molbo,Mimolette,Tybo
ex 040690 −Othercheese,ofafatcontentof30%ormorebyweightinthedrymatterandofawatercontentbyweightinthenon-fattymatterexceeding52%butnotexceeding67%
1999R0174 — EN — 30.01.1999 — 000.001 — 20▼B
ANNEXIV