1999R1255 — EN — 02.12.2005 — 011.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

Amended by:





Amended by:





Corrected by:









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COUNCIL REGULATION (EC) No 1255/1999

of 17 May 1999

on the commonorganisation of the market in milk and milk products







THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof, Having reard to the proposal from the Commission ( 1 ), Having regard to the opinion of the European Parliament ( 2 ), Having regard to the opinion of the Economic and Social Committee ( 3 ), Having regard to the opinion of the Committee of the Regions ( 4 ), Having regard to the opinion of the Court of Auditors ( 5 ), (1) Whereas the operation and development of the common market in agricultural products should be accompanied by the establishment of a common agricultural policy to include in particular a common organisation of agricultural markets which may take various forms depending on the product; (2) Whereas the aim of the common agricultural policy is to attain the objectives set out in Article 33 of the Treaty; whereas, in the milk sector, in order to stabilise markets and to ensure a fair standard of living for the agriculture community, it is necessary that the intervention agencies, based on a single price system, may take intervention measures on the market including the buying-in of butter and skimmed milk powder and the grant of private storage aids for these products; whereas, however, such measures should be standardised so as not to impede the free movement of goods in question within the Community; (3) Whereas by Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector ( 6 ), an additional levy scheme for the market of milk and milk products was introduced for the purpose of reducing the imbalance between supply and demand on the milk and milk-product market and resulting structural surpluses; whereas this scheme will apply for eight new consecutive periods of 12 months commencing on 1 April 2000; HAS ADOPTED THIS REGULATION:







Article 1

The common organisation of the market in milk and milk products shall cover the following products;







CN code Description of goods (a) 0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter (b) 0402 Milk and cream, concentrated or containing added sugar or other sweetening matter (c) 0403 10 11 to 39 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter not flavoured nor containing added fruit, nuts or cocoa 0403 90 11 to 69 (d) 0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included (e) ex04 05 Butter and other fats and oils derived from milk; dairy spreads of a fat content of more than 75 % but less than 80 % (f) 0406 Cheese and curd (g) 1702 19 00 Lactose and lactose syrup not containing added flavouring or colouring matter, ►C1 containing by weight less than 99 % lactose, ◄ expressed as anhydrous lactose, calculated on the dry matter (h) 2106 90 51 Flavoured or coloured lactose syrup (i) ex23 09 Preparations of a kind used in animal feeding: — Preparations and feedingstuffs containing products to which this Regulation applies, directly or by virtue of Council Regulation (EEC) No 2730/75 (1), except preparations and feedingstuffs to which Council Regulation (EEC) No 1766/92 (2) applies. (1) OJ L 281, 1.11.1975, p. 20. Regulation as last amended by Regulation (EC) No 2931/95 (OJ L 307, 20.12.1995, p. 10). (2) OJ L 181, 1.7.1992, p. 21. Regulation as last amended by Regulation (EC) No 923/96 (OJ L 126, 24.5.1996, p. 37).







TITLE I

INTERNAL MARKET







CHAPTER I

Prices

Article 2

The milk year for all products listed in Article 1 shall begin on 1 July and end on 30 June of the following year.

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Article 4

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1. The intervention prices in the Community expressed in euros per 100 kg, shall be as follows:

(a) butter: — 1 July 2000 to 30 June 2004: 328,20 — 1 July 2004 to 30 June 2005: 305,23 — 1 July 2005 to 30 June 2006: 282,44 — 1 July 2006 to 30 June 2007: 259,52 — from 1 July 2007: 246,39

(b) skimmed milk powder: — 1 July 2000 to 30 June 2004: 205,52, — 1 July 2004 to 30 June 2005: 195,24, — 1 July 2005 to 30 June 2006: 184,97, — from 1 July 2006: 174,69.

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2. The Council, acting in accordance with the procedure laid down in Article 37(2) of the Treaty, may change the intervention prices.

Article 5

The price system is established without prejudice to the implementation of the additional levy scheme.







CHAPTER II

Intervention system

Article 6

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1. If market prices for butter in one or more Member States, over a representative period, are less than 92 % of the intervention price, intervention agencies shall buy-in butter as indicated in paragraph 2, at 90 % of the intervention price during the period 1 March to 31 August of any year, in the Member State(s) concerned on the basis of specifications to be determined.

Where the quantities offered for intervention during the above period exceed 70 000 tonnes in 2004, 60 000 tonnes in 2005, 50 000 tonnes in 2006, 40 000 tonnes in 2007 and 30 000 tonnes in 2008 and onwards, the Commission may suspend intervention buying.

In such cases buying-in by intervention agencies may be carried out using a standing tendering procedure on the basis of specifications to be determined.

Where market prices of butter in the Member State(s) in question over a representative period are 92 % or more of the intervention price the Commission shall suspend buying-in.

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2. Under paragraph 1, the intervention agencies may only buy in butter produced directly and exclusively from pasteurised cream in an approved undertaking in the Community, and

(a) meet the following requirements: — a minimum butterfat content, by weight, of 82 % and a maximum water content, by weight, of 16 %, — an age at the time of buying-in not exceeding a maximum to be fixed, — conditions to be determined as regards the minimum quantity and packaging;

(b) meet certain requirements to be determined regarding in particular: — preservation; additional requirements may be laid down by the intervention agencies, — free fatty acid content, — peroxide content, — microbiological standard, — sensory characteristics (appearance, texture, taste and smell). National quality grades to be determined may be shown on the packaging of butter which meets national quality requirements. Flat rate transport costs shall be borne, under conditions to be fixed, by the intervention agency if the butter is delivered to a cold store situated at a distance greater than a distance to be determined from the place where the butter was in store.

3. Aid for private storage shall be granted for:

— cream,

— unsalted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 82 % and a maximum water content, by weight, of 16 %,

— salted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 80 %, a maximum water content, by weight, of 16 % and a maximum salt content, by weight, of 2 %.

The butter shall be classified according to national quality grades to be determined and shall be marked accordingly.

The aid shall be fixed in the light of storage costs and the likely trend in prices for fresh butter and butter from stocks. Where, at the time of removal from storage, an adverse change unforeseeable at the time of entry into storage has occured on the market, the aid may be increased.

Private storage aid shall be subject to the drawing-up of a storage contract concluded, in accordance with provisions to be laid down, by the intervention agency of the Member State on whose territory the cream or butter qualifying for the aid is stored.

Where the market situation so requires, the Commission may decide to remarket some or all of the cream or butter covered by private storage contracts.

4. Butter bought in by the intervention agencies shall be disposed of at a minimum price and under conditions to be determined so as to avoid disturbing the balance on the market and to ensure purchasers equal treatment and access to the butter to be sold. Where the butter put up for sale is intended for export, special conditions may be laid down to ensure that the product is not diverted from its destination and to take account of requirements specific to such sales.

For butter kept in public storage which cannot be disposed of during a milk year under normal conditions, special measures may be taken. Where warranted by such measures, special measures shall also be taken with a view to maintaining possibilities of disposing of products which were subject to aid as referred to in paragraph 3.

5. The intervention arrangements shall be applied so as to:

— maintain the competitive position of butter on the market,

— safeguard the original quality of the butter as far as possible,

— ensure storage as rationally as possible.

6. For the purposes of this Article:

— ‘milk’ shall mean cow's milk produced in the Community,

— ‘cream’ shall mean cream obtained directly and exclusively from milk.

Article 7

1. The intervention agency designated by each of the Member States shall, under conditions to be determined, buy in at the intervention price top quality skimmed milk powder made by the spray process and obtained in an approved undertaking in the Community, directly and exclusively from skimmed milk, which is offered to it during the period from 1 March to 31 August and which:

— meets a minimum protein content of 35,6 % by weight of the non-fatty dry extract,

— meets preservation requirements to be laid down,

— meets conditions to be determined as regards the minimum quantity and packaging.

However, intervention agencies shall also buy in skimmed milk powder whose protein content is at least 31,4 % and less than 35,6 %, of the non-fatty dry extract, provided that the other provisions laid down in the first subparagraph above are met. In that case, the buying-in price shall be equal to the intervention price less 1,75 % for each percentage point by which the protein content is lower than 35,6 %.

The intervention price shall be that in force on the day of manufacture of the skimmed milk powder and shall apply to skimmed milk powder delivered to the store designated by the intervention agency. Flat-rate transport costs shall be borne, under conditions to be fixed, by the intervention agency if the skimmed milk powder is delivered to a store situated at a distance greater than a distance to be determined from the place where the skimmed milk powder was in store.

The skimmed milk powder may only be stored in stores meeting conditions to be fixed.

2. The Commission may suspend the buying in of skimmed-milk powder provided for in paragraph 1 as soon as the quantities offered for intervention in the period from 1 March to 31 August each year exceed 109 000 tonnes.

In that case buying-in by the intervention agencies may be carried out under an open standing invitation to tender on the basis of specifications to be determined.

3. Aid for the private storage of skimmed milk powder of top quality, obtained in an approved undertaking in the Community directly and exclusively from skimmed milk may be granted, in particular, if trends in prices and stocks of the products indicate a serious imbalance in the market which could be avoided or reduced by means of seasonal storage. In order to be eligible for aid, the skimmed milk powder must meet conditions to be fixed.

The aid shall be fixed in the light of storage costs and the likely trend in prices for skimmed milk powder.

Private storage aid shall be subject to the drawing-up of a storage contract concluded, in accordance with provisions to be laid down, by the intervention agency of the Member State on whose territory the skimmed milk powder qualifying for the aid is stored. Where the market situation so requires, the Commission may decide to remarket some or all of the skimmed milk powder covered by private storage contracts.

4. Skimmed milk powder bought in by the intervention agency shall be disposed of, at a minimum price and under conditions to be determined so as to avoid disturbing the balance on the market and to ensure purchasers equal treatment and access to the skimmed milk powder to be sold.

Where the skimmed milk powder put up for sale is intended for export, special conditions may be laid down to ensure that the product is not diverted from its destination and to take account of requirements specific to such sales.

For skimmed milk powder kept in public storage which cannot be disposed of during a milk year under normal conditions, special measures may be taken.

5. Within the meaning of this Article, ‘skimmed milk’ shall mean skimmed milk obtained directly and exclusively from cow's milk produced in the Community.

Article 8

1. Under conditions to be determined, aid shall be granted for the private storage of:

(a) Grana Padano cheese at least nine months old;

(b) Parmigiano Reggiano cheese at least 15 months old;

(c) Provolone cheese at least three months old;

if these cheeses reach certain standards.

2. The amount of private storage aid shall be fixed taking account of storage costs and the likely trend of market prices.

3. The intervention agency designated by the Member State in which the said cheeses are produced and qualify to bear the designation of origin shall implement the measures taken pursuant to paragraph 1.

The granting of private storage aid shall be subject to the conclusion of a storage contract with the intervention agency. The contract shall be drawn up under conditions to be determined.

Where the market situation so requires, the Commission may decide that the intervention agency will remarket some or all of the cheese stored.

Article 9

1. Private storage aid may be granted for longkeeping cheeses and for cheeses which are manufactured from sheep and/or goat's milk and require at least six months for maturing, if for those cheeses price developments and the stock situation indicate a serious imbalance of the market which may be eliminated or reduced by seasonal storage.

2. The amount of aid shall be fixed with reference to storage costs and the balance to be maintained between cheeses for which aid is granted and other cheeses coming on the market.

3. Should the situation of the Community market so require, the Commission may decide to remarket some or all of the cheeses covered by private storage contracts.

4. If, at the time the storage contract expires, the level of market prices for cheeses in store is higher than that prevailing when the contract was signed, a decision may be taken to adjust the amount of aid accordingly.

Article 10

There shall be adopted in accordance with the procedure laid down in Article 42:

(a) the detailed rules for the application of this chapter and, in particular, those for establishing the market prices for butter;

(b) the amounts of aid for private storage referred to in this chapter;

(c) the other decisions and measures which may be taken by the Commission under this chapter.







CHAPTER III

Marketing measures

Article 11

1. Aid shall be granted for skimmed milk and skimmed-milk powder intended for use as feedingstuffs, if these products reach certain standards.

For the purposes of this Article, buttermilk and buttermilk powder shall be regarded as skimmed milk and skimmed-milk powder.

2. Aid amounts shall be fixed taking into account the following factors:

— the intervention price for skimmed-milk powder,

— development of the supply situation as regards skimmed-milk and skimmed-milk powder, and developments in the use thereof as feed,

— trends in calf prices,

— trends in the market prices for competing proteins as compared with those for skimmed-milk powder.

Article 12

1. Under the conditions determined in accordance with paragraph 2, aid shall be granted for Community-produced skimmed milk processed into casein and caseinates, if such milk and the casein or caseinates produced from it reach certain standards.

2. The aid may vary, according to whether the skimmed milk is processed into casein or caseinates and according to the quality of those products.

Aid shall be fixed taking into account the following factors:

— the intervention price for skimmed-milk powder, or the market price for first-quality spray-process skimmed-milk powder, if that price exceeds the intervention price,

— the market prices for casein and caseinates on the Community and world markets.

Article 13

1. When surpluses of milk products build up, or are likely to occur, the Commission may decide that aid shall be granted to enable cream, butter and concentrated butter to be purchased at reduced prices:

(a) by non-profit making institutions and organisations;

(b) by military forces and units of comparable status in the Member States;

(c) by manufacturers of pastry products and ice-cream;

(d) by manufacturers of other foodstuffs to be determined;

(e) for the direct consumption of concentrated butter.

Article 14

1. Community aid shall be granted for supplying to pupils in educational establishments certain processed milk products falling within CN codes 0401, 0403, 0404 90 and 0406 or CN code 2202 90.

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2. In addition to Community aid, Member States may grant national aid for supplying the products specified in paragraph 1 to pupils in educational establishments. Member States may finance their national aid by means of a levy on the dairy sector or by any other contribution from the dairy sector.

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3. In the case of whole milk, the Community aid shall be:

— EUR 23,24/100 kg for the period until 30 June 2004,

— EUR 21,69/100 kg for the period from 1 July 2004 until 30 June 2005,

— EUR 20,16/100 kg for the period from 1 July 2005 until 30 June 2006,

— EUR 18,61/100 kg for the period from 1 July 2006 until 30 June 2007,

— EUR 18,15/100 kg as from 1 July 2007.

In the case of other milk products, the amounts of aid shall be determined taking into account the milk components of the products concerned.

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4. The aid referred to in paragraphs 1 shall be granted on a maximum quantity of 0,25 litre of milk equivalent per pupil and per day.

Article 15

The following shall be adopted in accordance with the procedure laid down in Article 42:

(a) the detailed rules for the application of this chapter and, in particular, the conditions under which the aids set out therein may be granted,

(b) the amounts of the aids referred to in this chapter,

(c) the lists of products referred to in Article 13(d) and Article 14(1),

(d) the other decisions and measures that may be adopted by the Commission under this chapter.

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TITLE II

TRADE WITH THIRD COUNTRIES

Article 26

1. Imports into the Community of any of the products listed in Article 1 shall be subject to the presentation of an import licence. Exports from the Community of any such products may be made subject to presentation of an export licence.

2. Licences shall be issued by Member States to any applicant, irrespective of his place of establishment in the Community and without prejudice to the measures taken for the application of Articles 29, 30 and 31.

Import and export licences shall be valid throughout the Community. Such licences shall be issued subject to the lodging of a security guaranteeing that the products are imported or exported during the term of validity of the licence; except in cases of force majeure, the security shall be forfeited in whole or in part if import or export is not carried out, or is carried out only partially, within that period.

3. The following shall be adopted by the Commission in accordance with the procedure laid down in Article 42:

(a) the list of products in respect of which export licences are required;

(b) the term of validity of the licences; and

(c) the other detailed rules for the application of this Article.

Article 27

Unless this Regulation provides otherwise, the rates of duty in the Common Customs Tariff shall apply to the products listed in Article 1.

Article 28

1. In order to prevent or counteract adverse effects on the market in the Community which may result from imports of certain products listed in Article 1, imports of one or more of such products at the rate of duty referred to in Article 27 shall be subject to payment of an additional import duty if the conditions set out in Article 5 of the Agreement on Agriculture concluded in accordance with Article 300 of the Treaty in the framework of the Uruguay Round of multilateral trade negotiations have been fulfilled unless the imports are unlikely to disturb the Community market, or where the effects would be disproportionate to the intended objective.

2. The trigger prices below which an additional duty may be imposed shall be those which are forwarded by the Community to the World Trade Organisation.

The trigger volumes to be exceeded in order to have the additional import duty imposed shall be determined particularly on the basis of imports into the Community in the three years preceding the year in which the adverse effects referred to in paragraph 1 arise or are likely to arise.

3. The import prices to be taken into consideration for imposing an additional import duty shall be determined on the basis of the cif import prices of the consignment under consideration.

Cif import prices shall be checked to that end against the representative prices for the product on the world market or on the Community import market for that product.

4. The Commission shall adopt detailed rules for the application of this Article in accordance with the procedure laid down in Article 42. Such detailed rules shall specify in particular:

(a) the products to which additional import duties shall be applied under the terms of Article 5 of the Agreement on Agriculture;

(b) the other criteria necessary to ensure application of paragraph 1 in accordance with Article 5 of the Agreement on Agriculture.

Article 29

1. Tariff quotas for the products listed in Article 1 resulting from agreements concluded in accordance with Article 300 of the Treaty or from any other act of the Council shall be opened and administered in accordance with detailed rules adopted under the procedure laid down in Article 42.

2. Quotas may by administered by applying one of the following methods or a combination of them:

— method based on the chronological order of the lodging of applications (using the ‘first come, first served’ principle),

— method of distribution in proportion to the quantities requested when the applications were lodged (using the ‘simultaneous examination’ method),

— method based on taking traditional trade patterns into account (using the ‘traditional importers/new arrivals’ method).

Other appropriate methods may be adopted.

They shall avoid any discrimination between the operators concerned.

3. The method of administration adopted shall, where appropriate, give due weight to the supply requirements on the Community market and the need to safeguard the equilibrium of that market, whilst at the same time possibly drawing on methods which may have been applied in the past to quotas corresponding to those referred to in paragraph 1, without prejudice to the rights resulting from agreements concluded in the framework of the Uruguay Round trade negotiations.

4. The detailed rules referred to in paragraph 1 shall provide for annual quotas, suitably phased over the year, if necessary, to be opened, determine the administrative method to be applied and, where appropriate, include provisions regarding:

(a) guarantees covering the nature, provenance and origin of the product;

(b) recognition of the document used for verifying the guarantees referred to in (a); and

(c) the conditions under which import licences are issued and their term of validity.

Article 30

1. Where an agreement concluded in accordance with Article 300 of the Treaty provides for the total or partial management of a tariff quota opened by a third country for the products referred to in Article 1, the management method to be applied and detailed rules relating to that method shall be adopted in accordance with the procedure provided for in Article 42.

2. Quotas may be managed using one of the following methods or a combination thereof:

— order in which applications are submitted (‘first come, first served’ basis),

— allocation in proportion to quantities requested when applications are submitted (‘simultaneous examination’ method),

— traditional trade flows (‘traditional importers/new arrivals’ method).

Other appropriate methods may by adopted, in particular ones which guarantee the full use of the possibilities available under the quota concerned.

They shall avoid any discrimination between the operators concerned.

Article 31

1. To the extent necessary to enable the products listed in Article 1 to be exported without further processing or in the form of goods listed in Annex II if they are products listed in Article 1(a), (b), (c), (d), (e) and (g), on the basis of prices for those products in world trade and within the limits resulting from agreements concluded in accordance with Article 300 of the Treaty, the difference between those prices and prices in the Community may be covered by export refunds.

Export refunds on the products listed in Article 1 in the form of goods listed in the Annex II may not be higher than those applicable to such products exported without further processing.

2. The method to be adopted for the allocation of the quantities which may be exported with a refund shall be the method which:

(a) is most suited to the nature of the product and the situation on the market in question, allowing the most efficient possible use of the resources available, account being taken of the efficiency and structure of Community exports without, however, creating discrimination between large and small operators;

(b) is least cumbersome administratively for operators, account being taken of administration requirements;

(c) prevents any discrimination between the operators concerned.

3. Refunds shall be the same for the whole Community.

They may vary according to destination, where the world market situation or the specific requirements of certain markets make this necessary.

Refunds shall be fixed by the Commission in accordance with the procedure laid down in Article 42. Refunds may be fixed:

(a) at regular intervals;

(b) by invitation to tender for products for which that procedure was provided for in the past.

Except where fixed by tender, the list of products on which an export refund is granted and the amount of such refund shall be fixed at least once every four weeks. The amount of the refund may, however, remain at the same level for more than four weeks and may, where necessary, be adjusted in the intervening period by the Commission at the request of a Member State or on its own initiative. However, for products listed in Article 1 and exported in the form of goods listed in Annex II to this Regulation, the refund may be fixed according to another timetable determined in accordance with the procedure referred to in Article 16 of Council Regulation (EC) No 3448/93 ( 19 ).

4. The following shall be taken into account when refunds are being fixed for the products listed in Article 1 and exported without further processing:

(a) the existing situation and future trends with regard to: — prices and availabilities of milk and milk products on the Community market, — prices of milk and milk products on the world market;

(b) the most favourable marketing costs and transport costs from Community markets to Community ports or other places of export together with forwarding costs to the countries of destination; demand on the Community market;

(c) the objectives of the common organisation of the markets in milk and milk products, which are to ensure a balanced situation and natural development regarding prices and trade on these markets;

(d) limits resulting from agreements concluded in accordance with Article 300 of the Treaty;

(e) the importance of avoiding disturbances on the Community market;

(f) the economic aspect of the proposed exports.

Account shall also be taken in particular of the need to establish a balance between the use of Community basic agricultural products for export as processed goods to third countries, and the use of products from those countries admitted for inward processing.

5. For the products referred to in Article 1 and exported as such:

(a) the prices in the Community referred to in paragraph 1 shall be determined taking account of the prices prevailing which prove to be the most favourable as regards export;

(b) the prices on the world market referred to in paragraph 1 shall be determined taking account in particular of: — the prices on third-country markets, — the most favourable prices in third countries of destination for third-country imports, — producer prices recorded in exporting third countries, account being taken, where appropriate, of subsidies granted by those countries, — free-at-frontier offer prices.

6. Refunds shall be granted for the products referred to in paragraph 1 and exported as such only on application and on presentation of the relevant export licence.

7. The refund applicable to exports of products listed in Article 1 and exported as such shall be that applicable on the day of application for the licence and, in the case of a differentiated refund, that applicable on the same day for:

(a) the destination indicated on the licence, or where appropriate;

(b) the actual destination if it differs from the destination indicated on the licence. In that case, the amount applicable may not exceed the amount applicable for the destination indicated on the licence.

Appropriate measures may be taken to prevent abuse of the flexibility provided for in this paragraph.

8. Paragraphs 6 and 7 may be made to apply to products listed in Article 1 and exported in the form of goods listed in Annex II in accordance with the procedure laid down in Article 16 of Regulation (EC) No 3448/93.

9. Paragraphs 6 and 7 may be waived in the case of products listed in Article 1 on which refunds are paid under food-aid operations, in accordance with the procedure laid down in Article 42.

10. The refund shall be paid upon proof that:

— the products are of Community origin,

— the products have been exported from the Community, and

— in the case of a differentiated refund, the products have reached the destination indicated on the licence or another destination for which a refund was fixed, without prejudice to paragraph 7(b). Exceptions may be made to this rule in accordance with the procedure laid down in Article 42, provided conditions are laid down which offer equivalent guarantees.

11. Without prejudice to paragraph 10, first indent, in the absence of a derogation granted in accordance with the procedure laid down in Article 42, no export refund shall be granted on products which are imported from third countries and re-exported to third countries.

12. As regards the products referred to in Article 1 and exported in the form of the goods listed in Annex II to this Regulation, paragraphs 10 and 11 shall apply only to goods falling within the following CN codes:

— 0405 20 30 (dairy spreads with a fat content between 60 and 75 %),

— 1806 90 60 to 1806 90 90 (certain products containing cocoa),

— 1901 (certain food preparations of flour, etc.),

— 2106 90 98 (certain food preparations not elsewhere specified),

having a high milk-product content.

13. Compliance with the limits on volumes arising from agreements concluded in accordance with Article 300 of the Treaty shall be ensured on the basis of the export certificates issued for the reference periods provided for therein and applicable to the products concerned. With regard to compliance with the obligations arising under the Agreement on Agriculture, the ending of a reference period shall not affect the validity of export licences.

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14. Detailed rules for the application of this Article, including the arrangements for redistributing unallocated or unused exportable quantities, and any amendments to Annex II shall be adopted by the Commission in accordance with the procedure laid down in Article 42. However, the detailed rules on the application of paragraphs 8, 10, 11 and 12 for products referred to in Article 1 and exported in the form of goods listed in Annex II to this Regulation shall be adopted in accordance with the procedure laid down in Article 16 of Regulation (EC) No 3448/93.

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Article 32

1. To the extent necessary for the proper working of the common organisation of the market in milk and milk products, the Council, acting by a qualified majority, on a proposal from the Commission, may, in special cases, prohibit in whole or in part the use of inward processing arrangements in respect of products listed in Article 1 which are intended for the manufacture of products listed in that Article or of goods listed in Annex II to this Regulation.

2. By way of derogation from paragraph 1, if the situation referred to in paragraph 1 arises with exceptional urgency and the Community market is disturbed or is liable to be disturbed by the inward processing arrangements, the Commission shall, at the request of a Member State or on its own initiative, decide upon the necessary measures; the Council and the Member State shall be notified of such measures, which shall be valid for no more than six months and shall be immediately applicable. If the Commission receives a request from a Member State, it shall take a decision thereon within a week following receipt of the request.

3. Measures decided on by the Commission may be referred to the Council by any Member State within a week of the day on which they were notified. The Council, acting by a qualified majority, may confirm, amend or repeal the Commission Decision.

If the Council has not acted within three months, the Commission Decision shall be deemed to have been repealed.

Article 33

1. The general rules for the interpretation of the Combined Nomenclature and the special rules for its application shall apply to the tariff classification of products covered by this Regulation; the tariff nomenclature resulting from the application of this Regulation shall be incorporated in the Common Customs Tariff.

2. Save as otherwise provided for in this Regulation or in provisions adopted pursuant thereto, the following shall be prohibited in trade with third countries:

— the levying of any charge having equivalent effect to a customs duty,

— the application of any quantitative restriction or measure having equivalent effect.

Article 34

1. Where, for one or more of the products listed in Article 1, the free-at-frontier price significantly exceeds the level of Community prices and where that situation is likely to continue, thereby disturbing or threatening to disturb the Community market, the measures provided for in paragraph 5 may be taken.

2. A significant excess within the meaning of paragraph 1 shall exist when the free-at-frontier price exceeds the intervention price fixed for the product in question, increased by 15 %, or, as regards products for which there is no intervention price, a price derived from the intervention price, to be determined in accordance with the procedure laid down in Article 42, taking account of the nature and composition of the product in question.

3. The situation in which the free-at-frontier price significantly exceeds the level of prices is likely to continue when an imbalance exists between supply and demand and that imbalance is likely to continue, in view of foreseeable trends in production and market prices.

4. The Community market is disturbed or under threat of disturbance by the situation referred to in this Article when the high level of prices in international trade:

— hinders imports of milk products into the Community, or

— causes milk products to leave the Community,

so that security of supply is no longer ensured or threatens to be no longer ensured in the Community.

5. Where the conditions listed in paragraphs 1 to 4 are met, total or partial suspension of the import duties and/or collection of export charges may be decided on in accordance with the procedure laid down in Article 42. Detailed rules for the application of this Article shall, if necessary, be adopted by the Commission in accordance with the same procedure.

Article 35

1. If, by reason of imports or exports, the Community market in one or more of the products listed in Article 1 is affected by, or is threatened with, serious disturbance likely to jeopardise the achievement of the objectives set out in Article 33 of the Treaty, appropriate measures may be applied in trade with third countries until such disturbance or threat of disturbance has ceased.

The Council, acting by a qualified majority, on a proposal from the Commission, shall adopt general rules for the application of this paragraph and shall define the cases in which and the limits within which Member States may take protective measures.

2. If the situation referred to in paragraph 1 arises, the Commission shall, at the request of a Member State or on its own initiative, decide upon the necessary measures; the Member States shall be notified of such measures, which shall be immediately applicable. If the Commission receives a request from a Member State, it shall take a decision thereon within three working days following receipt of the request.

3. Measures decided upon by the Commission may be referred to the Council by any Member State within three working days of the day on which they were notified. The Council shall meet without delay. It may, acting by a qualified majority, amend or repeal the measure in question within one month following the day on which it was referred to the Council.

4. This Article shall be applied having regard to the obligations arising from agreements concluded in accordance with Article 300(2) of the Treaty.







TITLE III

GENERAL PROVISIONS

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Article 36

1. In order to take account of the restrictions on free circulation which may result from the application of measures for combating the spread of diseases in animals, exceptional measures of support for the market affected by those restrictions may be taken in accordance with the procedure referred to in Article 42. These measures shall be taken at the request of the Member State(s) concerned. They may be taken only if the Member State(s) concerned has (have) taken health and veterinary measures quickly to stamp out the disease, and only to the extent and for the duration strictly necessary to support the market concerned.

2. For exceptional measures as referred to in paragraph 1 which relate directly to health and veterinary measures, the Community shall provide part-financing equivalent to 50 % of the expenditure borne by Member States and 60 % of such expenditure when combating foot-and-mouth disease.

3. Member States shall ensure that, where producers contribute to the expenditure borne by Member States, this does not result in distortion of competition between producers in different Member States.

4. Articles 87, 88 and 89 of the Treaty shall not apply to Member States’ financial contributins towards the exceptional measures referred to in paragraph 1.

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Article 37

Save as otherwise provided in this Regulation, Articles 87, 88 and 89 of the Treaty shall apply to the production of and trade in the products listed in Article 1.

Article 38

1. Subject to the provisions of Article 87(2) of the Treaty, aids the amount of which is fixed on the basis of the price or quantity of products listed in Article 1 shall be prohibited.

2. National measures permitting equalisation between the prices of products listed in Article 1 shall also be prohibited.

Article 39

Without prejudice to the application of Articles 87, 88 and 89 of the Treaty, a Member State may impose a promotional levy on its milk producers in respect of marketed quantities of milk or milk equivalent in order to finance the measures on promoting consumption in the Community, expanding the markets for milk and milk products and improving quality.

Article 40

Member States and the Commission shall communicate to each other the information necessary for implementing this Regulation. Rules for the communication and distribution of such information shall be adopted by the Commission in accordance with the procedure laid down in Article 42.

Article 41

A Management Committee for Milk and Milk Products (hereinafter called the ‘committee’) shall be established, composed of representatives of Member States and chaired by a representative of the Commission.

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Article 42

1. The Commission shall be assisted by the Management Committee for Milk and Milk Products.

2. Where reference is made to this Article, Articles 4 and 7 of Decision 1999/468/EC ( 20 ) shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month.

3. The Committee shall adopt its Rules of Procedure.

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Article 43

The committee may consider any other question referred to it by its chairman either on his own initiative or at the request of the representative of a Member State.

Article 44

This Regulation shall be so applied that appropriate account is taken, at the same time, of the objectives set out in Articles 33 and 131 of the Treaty.

Article 45

►C2 Regulation (EC) No 1258/2000 ◄ and the provisions adopted in implementation thereof shall apply to the products listed in Article 1.







TITLE IV

TRANSITIONAL AND FINAL PROVISIONS

Article 46

1. Regulations (EEC) No 804/68, (EEC) No 986/68, (EEC) No 987/68, (EEC) No 508/71, (EEC) No 1422/78, (EEC) No 1723/81, (EEC) No 2990/82, (EEC) No 1842/83, (EEC) No 865/84 and (EEC) No 777/87 are hereby repealed.

2. References to Regulation (EEC) No 804/68 shall be construed as references to this Regulation and should be read in accordance with the correlation table in Annex III.

Article 47

The Commission shall adopt, in accordance with the procedure laid down in Article 42:

— the measures required to facilitate the transition from the arrangements provided in Regulation (EEC) No 804/68 to those established by this Regulation,

— the measures required to resolve specific practical problems. Such measures — if duly justified — may derogate from certain parts of this Regulation.

Article 48

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.

It shall apply as from 1 January 2000.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

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ANNEX I

ADDITIONAL PAYMENTS: GLOBAL AMOUNTS REFERRED TO IN ARTICLE 17







(expressed in EUR million) 2005 2006 2007 and subsequent calendar years Belgium 8,6 17,1 25,7 Czech Republic 6,9 13,87 20,8 Denmark 11,5 23,0 34,5 Germany 72,0 144,0 216,0 Estonia 1,6 3,2 4,85 Greece 1,6 3,3 4,9 Spain 14,4 28,7 43,1 France 62,6 125,3 187,9 Ireland 13,6 27,1 40,7 Italy 25,7 51,3 77,0 Cyprus 0,4 0,75 1,1 Latvia 1,8 3,6 5,4 Lithuania 4,25 8,5 12,8 Luxembourg 0,7 1,4 2,1 Hungary 5,0 10,1 15,1 Malta 0,13 0,25 0,38 Netherlands 28,6 57,2 85,8 Austria 7,1 14,2 21,3 Poland 23,1 46,3 69,6 Portugal 4,8 9,7 14,5 Slovenia 1,45 2,9 4,35 Slovakia 2,6 5,2 7,9 Finland 6,2 12,4 18,6 Sweden 8,5 17,1 25,6 United Kingdom 37,7 75,4 113,1

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ANNEX II







CN code Description of goods ex04 05 Butter and other fats and oils derived from milk; dairy spreads: 0405 20 – Dairy spreads 0405 20 10 – – of a fat content, by weight, of 39 % or more but less than 60 % 0405 20 30 – – – of a fat content, by weight, of 60 % or more but not exceeding 75 % ex15 17 Margarine; edible mixtures or preparations of animal or vegetable fats or oils or fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of CN code 1516: 1517 10 – Margarine, excluding liquid margarine: 1517 10 10 – – containing more than 10 % but not more than 15 % by weight of milk fats 1517 90 – Other: 1517 90 10 – – containing more than 10 % but not more than 15 % by weight of milk fats ex17 04 Sugar confectionery (including white chocolate), not containing cocoa: ex17 04 90 – Other, excluding liquorice extract containing more than 10 % by weight of sucrose but not containing other added substances ex18 06 Chocolate and other food preparations containing cocoa, excluding cocoa powder sweetened solely by the addition of sucrose of CN code 1806 10 ex19 01 Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of CN codes 0401 to 0404, not containing cocoa or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included: 1901 10 00 – Preparations for infant use, put up for retail sale 1901 20 00 – Mixes and doughs for the preparation of bakers' wares of CN code 1905 1901 90 – other: – – other: 1901 90 99 – – – other ex19 02 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared: – Uncooked pasta not stuffed or otherwise prepared: 1902 19 – – other 1902 20 – Stuffed pasta, whether or not cooked or otherwise prepared: – – other: 1902 20 91 – – – Cooked 1902 20 99 – – – other 1902 30 – other pasta 1902 40 – Couscous: 1902 40 90 – – Other 1904 Prepared food obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); cereals (other than maize (corn)) in grain form or in the form of flakes or other worked grains (except flour and meal), pre-cooked or otherwise prepared, not elsewhere specified or included 1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products: 1905 10 00 Crispbread 1905 20 – Gingerbread and the like ▼M4 – Sweet biscuits; waffles and wafers: 1905 31 – – Sweet biscuits 1905 32 – – Waffles and wafers ▼M2 1905 40 – Rusks, toasted bread and similar toasted products 1905 90 – other: – – other: ▼M7 ————— ▼M2 1905 90 45 – – – Biscuits 1905 90 55 – – – Extruded or expanded products, savoury or salted 1905 90 60 – – – – with added sweetening matter 1905 90 90 – – – – other ex20 04 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading No 2006: 2004 10 – Potatoes: – – other: 2004 10 91 – – – in the form of flour, meal or flakes ex20 05 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading No 2006: 2005 20 – Potatoes: 2005 20 10 – – in the form of flour, meal or flakes 2105 00 Ice cream and other edible ice, whether or not containing cocoa ex21 06 Food preparations not elsewhere specified or included: 2106 90 – Other: 2106 90 10 – – Cheese fondues – – Other: 2106 90 92 – – – Containing no milk fats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5 % milk fat, 5 % sucrose or isoglucose, 5 % glucose or starch 2106 90 98 – – – Other ex22 02 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit and vegetable juices of CN code 2009: 2202 90 – other: – – other, containing by weight of fat obtained from the products of CN codes 0401 to 0404: 2202 90 91 – – – less than 0,2 % 2202 90 95 – – – 0,2 % or more but less than 2 % 2202 90 99 – – – 2 % or more ex22 08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages: 2208 70 – Liqueurs and cordials 2208 90 – other: – – other spirits and spirituous beverages, in containers holding: – – – two litres or less: – – – – other: 2208 90 69 – – – – – other spirituous beverages – – – more than two litres: 2208 90 78 – – – – other spirituous beverages ex33 02 Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages: 3302 10 – of a kind used in the food or drink industries: – – of a kind used in the drink industries: 3302 10 29 – – – – – other 3501 Casein, caseinates and other casein derivatives; casein glues ex35 02 Albumins, albuminates and other albumin derivatives: 3502 20 – Milk albumin, including concentrates of two or more whey proteins: – – other: 3502 20 91 – – – dried (for example in sheets, scales, flakes, powder) 3502 20 99 – – – other

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ANNEX III

CORRELATION TABLE







Regulation (EEC) No 804/68 This Regulation Article 1 Article 1 Article 2 Article 2 Article 3(1) and (2) Article 3(1) Article 3(3) — Article 3(4) Article 3(2) Article 4 — Article 5 Article 4(1) Article 5a — Article 5c Article 5 Article 6(2) Article 6(3) Article 6(3) Article 6(4) Article 6(4) Article 6(5) Article 6(6) Article 10 Article 7(1) Article 7(1) Article 7(2) Article 7(3) Article 7(3), first subparagraph Article 7(4), first subparagraph Article 7(3), fourth subparagraph Article 7(4), second subparagraph Article 7(4) Article 7(5) Article 7(5) Article 10 Article 7a — Article 8(1) to (3) Article 8(1) to (3) Article 8(4) Article 10 Article 9(3) Article 10 Article 10(1) Article 11(1) Article 10(2) — Article 10(3) Article 15 Article 11(1) Article 12(1) Article 11(2) — Article 11(3) Article 15 Article 12(3) Article 15 Article 13 Article 26 Article 14 Article 27 Article 15 Article 28 Article 16 Article 29 Article 16a Article 30 Article 17 Article 31 Article 18 Article 32 Article 19 Article 33 Article 20 Article 34 Article 21 Article 35 Article 22 — Article 22a Article 36 Article 23 Article 37 Article 24 Article 38 Article 24a Article 39 Article 25 — Article 26(1) and (2) Article 14(1) and (2) Article 26(4) Article 15 Article 26(5) — Article 28 Article 40 Article 29(1) Article 41 Article 29(2) — Article 30 Article 42 Article 31 Article 43 Article 32 — Article 33 Article 44 Article 34 Article 45 Article 35 — Article 36 — Article 37(1) Article 48 Annex Annex II