1999R1254 — EN — 02.12.2005 — 008.001

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:









▼B

COUNCIL REGULATION (EC) No 1254/1999

of 17 May 1999

on the common organisation of the market in beef and veal







THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof, Having regard 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 beef and veal sector, in order to stabilise markets and to ensure a fair standard of living for the agricultural community, provision should be made for internal market measures comprising, in particular, direct payments to beef producers, private storage aid and a public storage scheme; (3) Whereas, in order to rebalance meat consumption in the Community to the benefit of the beef sector and to improve the competitiveness of these products on the international markets, the level of market support should be gradually reduced; whereas, given the consequences for producers, the level of income aid provided for under the common market organisation should be adapted and reshaped; whereas, to that end, it is appropriate to establish a comprehensive scheme of direct payments for producers; whereas the amounts of these payments should develop in parallel with the gradual reduction of market support; (4) Whereas, given the variety of stockfarming enterprises, direct payments should include a special premium for producers of bulls and steers, a premium for maintaining suckler cow herds and a slaughter premium available for all types of bovine animals including dairy cows and calves; whereas the granting of the premiums should not be reflected by an increase in overall production; whereas, to that end, the number of male bovine animals and suckler cows eligible for special and suckler cow premiums should be limited by applying respectively regional and individual ceilings and, in the case of the special premium, a headage limit per holding which Member States should have the power to modulate in the light of their specific situation; whereas, as regards the slaughter premium, national ceilings should be established on the basis of historic production figures; (5) Whereas the conditions of steer production usually differ from those of bull production; whereas it is therefore justified to set the special premium for steers at a different level per animal than for bulls; whereas, however, the special premium for steers should be split into two payments for specific age brackets; (6) Whereas slaughtering too great a number of steers during the slaughtering season in Member States where this type of production is particulary important, could disturb the stability of the market and, in particular, lead to a fall in market prices; whereas to encourage the slaughter of steers outside the annual ‘off grass’ period, an additional premium should be granted, subject to certain conditions, in addition to the special premium for animals slaughtered out of season during the first 23 weeks of the year; (7) Whereas, in order to give more flexibility to producers, eligibility for suckler cow premium should be extended to heifers meeting the same breeding requirements as suckler cows; whereas, however, the number of eligible heifers in suckler cow herds should be limited to the normal ratio of replacement; whereas Member States where more than 60 % of the animals eligible to suckler cow premium are kept in mountain areas, should be authorised to manage the premium separately for suckler cows and heifers and, as regards heifers, to operate a separate national premium ceiling within the above ratio; (8) Whereas the suckler cow premium should in principle be restricted to producers who do not supply milk to dairies under the additional levy scheme provided for by Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector ( 6 ); whereas, however, income support may also needed in the case of holdings with a dairy herd and a suckler cow herd; whereas suckler cow premium should therefore also be granted for small and medium-sized mixed holdings with a total individual milk reference quantity of not more than 120 000 kilograms; whereas, given the variety of production structures in the Community, Member States should have the power to change or waive this quantitative limitation on the basis of objective criteria; (9) Whereas, as regards the suckler cow premium, it is appropriate to maintain individual ceilings for producers; whereas some of the premium rights conferred by the individual ceilings have not been used in the past; whereas these unused rights would be likely to encourage production and increase expenditure, in particular, as a consequence of heifers becoming fully eligible for suckler cow premium; whereas to avoid such an effect, the total number of suckler cow premium rights of each Member State should be fixed on the basis of the premium payments actually made in respect of historical reference years, increased by a certain margin for maintaining the national reserve; whereas Member States should take the necessary measures to ensure the respect of their national ceilings; whereas, if necessary, they should adjust the individual ceilings of their producers without compensation according to certain objective criteria; whereas these criteria should ensure, in particular, equal treatment of the producers concerned and the protection of legitimate expectations; (10) Whereas a producer's level of production may vary because of changes in stock or production capacity; whereas it is therefore advisable to provide for the possibility of transferring suckler cow premium rights acquired in respect of individual ceilings to other producers, under certain conditions, either together with the holding or without retaining the link between premium rights and land farmed; (11) Whereas new producers and existing producers whose individual ceilings do not correspond, for various reasons, to changed circumstances of their suckler cow herds should not be excluded from rights to premium; whereas provision should therefore be made to operate national reserves to be stocked and administered in accordance with Community criteria; whereas, for the same reason, it is appropriate to subject the transfer of rights to premium without the transfer of the associated holding to rules whereby part of the rights transferred shall be withdrawn without compensatory payment and allocated to that national reserve; (12) Whereas it is opportune to allow Member States to establish a link between sensitive zones or localities and the production of suckler cows so as to ensure the maintenance of such production especially in areas where there is no other alternative; (13) Whereas, given the trend towards intensification of beef and veal production, premiums for stockfarming should be limited with regard to the forage capacity of each holding in relation to the numbers and species of animals held; whereas, to avoid excessively intensive types of production, the grant of such premiums should be subject to compliance with a maximum stocking density on the holding; whereas, however, the situation of small producers should be taken into consideration; (14) Whereas, to strengthen incentives to extensify production with a view to improving their effectiveness in relation to environmental objectives, an additional amount should be granted to producers who comply with severe and genuine stocking density requirements; whereas, to avoid a major change in the global level of support and ensure reasonable control of expenditure, provision should be made for adjusting the additional amount, if necessary; (15) Whereas the conditions for beef production and the income situation of producers varies significantly in different production areas of the Community; whereas a Community-wide scheme with uniform payments to all producers would be too rigid to respond adequately to the structural and natural disparities and the diverse needs resulting therefrom; whereas, therefore, it is appropriate to provide for a flexible framework of additional Community payments to be determined and made by Member States within fixed global amounts and in accordance with certain common criteria; whereas the global amounts should be allocated to the Member States on the basis of their share in Community beef production; whereas the common criteria are intended, inter alia, to prevent additional payments from producing discriminatory effects and to take full account of the relevant multilateral commitments of the Community; whereas, in particular, it is essential that Member States be obliged to use their discretionary powers exclusively on the basis of objective criteria, to pay full regard to the concept of equal treatment and to avoid market and competition distortions; whereas it is appropriate to provide for the forms that additional payments may take; whereas these forms should be headage payments for certain categories of bovine animals and area payments; (16) Whereas, as regards additional headage payments, certain quantitative limits are required to ensure a reasonable level of production control; whereas, moreover, the concept of applying stocking density requirements should be followed by Member States; (17) Whereas additional area payments should only be granted for permanent pasture which does not benefit from other Community market support measures; whereas area payments should be applied within the limits of regional base areas of permanent pasture which should be established by Member States according to historical reference data; whereas the maximum amount of area payments which may be granted per hectare, including additional area payments under the common market organisation for milk and milk products, should be comparable to the average support per hectare under the support system for producers of certain arable crops; (18) Whereas direct payments should be subject to compliance by the keepers of the animals concerned with the relevant Community rules on identification and registration of bovine animals; whereas, in order to achieve the desired economic impact, direct payments must be granted within certain time limits; (19) Whereas the use of certain substances in beef production is prohibited under Community law; whereas appropriate penalties should apply where the relevant provisions are not respected; (20) Whereas under the price and income support arrangements provided for in this Regulation, the existing public intervention in the form of buying-in by intervention agencies and public storage is no longer indispensable to balance the market but would cause considerable expenditure; whereas it should, therefore, be phased out gradually; whereas, however, in order to contribute to stabilising the market prices around the basic price which represents the desired market support level aid for private storage should be provided for; whereas, to that end, the Commission should be authorised to decide the grant of private storage aid when the market price falls below 103 % of the basic price; whereas, moreover, a ‘safety net’ intervention scheme should be established with a view to support the beef and veal market in Member States or regions of Member States where market prices fall short of a critical price level; whereas provision should be made for the private storage aid and the intervention scheme to be implemented on the basis of the grading scale laid down in Council Regulation (EEC) No 1208/81 of 28 April 1981 determining the Community scale for the classification of carcases of adult bovine animals ( 7 ); (21) Whereas the creation of a single Community market for beef and veal involves the introduction of a single trading system at the external frontiers of the Community; whereas a trading system including import duties and export refunds, in addition to the internal market measures, should, in principle, stabilise the Community market; whereas the trading system should be based on the undertakings accepted under the Uruguay Round of multilateral trade negotiations; (22) Whereas, in order to monitor the volume of trade in beef with third countries, provision should be made for a system of import and export licences for certain products, which includes the lodging of a security to guarantee that the transactions for which such licences are granted are effected; (23) Whereas in order to prevent or counteract adverse effects on the Community market which could result from imports of certain agricultural products, imports of one or more such products should be subject to payment of an additional import duty, if certain conditions are fulfilled; (24) Whereas it is appropriate, under certain conditions, to confer on the Commission the power to open and administer tariff quotas resulting from international agreements concluded in accordance with the Treaty or from other acts of the Council; (25) Whereas provisions for granting a refund on exports to third countries, based on the difference between prices within the Community and on the world market, and falling within the WTO Agreement on Agriculture ( 8 ), should serve to safeguard Community participation in international trade in beef and veal; whereas these refunds should be subject to limits in terms of quantity and value; (26) Whereas compliance with the limits in terms of value should be ensured at the time when refunds are fixed through the monitoring of payments under the rules relating to the European Agricultural Guidance and Guarantee Fund; whereas monitoring can be facilitated by the compulsory advance fixing of refunds, while allowing the possibility, in the case of differentiated refunds, of changing the specified destination within a geographical area to which a single refund rate applies; whereas, in the case of a change of destination, the refund applicable to the actual destination should be paid, with a ceiling of the amount applicable to the destination fixed in advance; (27) Whereas ensuring compliance with the quantity limits calls for the introduction of a reliable and effective system of monitoring; whereas, to that end, the granting of refunds should be made subject to an export licence; whereas refunds should be granted up to the limits available, depending on the particular situation of each product concerned; whereas exceptions to that rule should only be permitted in the case of food-aid operations, which are exempt from any limit; whereas monitoring of the quantities exported with refunds during the marketing years as referred to in the WTO Agreement on Agriculture should be carried out on the basis of export licences issued for each marketing year; (28) Whereas, in addition to the system described above, and to the extent necessary for its proper working, provision should be made for regulating or, when the situation on the market so requires, prohibiting the use of inward-processing arrangements; (29) Whereas the customs duty system makes it possible to dispense with all other protective measures at the external frontiers of the Community; whereas, however, the internal market and duty mechanism could, in exceptional circumstances, prove defective; whereas, in such cases, so as not to leave the Community market without defence against disturbances which may arise therefrom, the Community should be able to take all necessary measures without delay; whereas those measures should be in accordance with the obligations derived from the relevant WTO agreements; (30) Whereas, in order to ensure proper application of the instruments provided for in this Regulation, the Commission should be fully informed about the development of prices on the common market for beef and veal; whereas, therefore, provision should be made for a system for recording the prices of bovine animals and meat of such animals; (31) Whereas it is appropriate to provide for measures to be taken when a substantial rise or fall in prices disturbs or threatens to disturb the Community market; whereas these measures may also include ad hoc intervention buying-in; (32) Whereas restrictions on free movement resulting from the application of measures intended to prevent the spread of animal diseases could cause difficulties on the market of one or more Member States; whereas provision should be made for the introduction of exceptional market support measures in order to remedy such situations; (33) Whereas the establishment of a single market based on common prices would be jeopardised by the granting of certain aids; whereas, therefore, the provisions of the Treaty which allow the assessment of aids granted by Member States and the prohibition of those which are incompatible with the common market should apply in the common market organisation for beef and veal; (34) Whereas it is necessary that, as the common market in beef and veal develops, the Member States and the Commission should keep each other supplied with the information necessary for applying this Regulation; (35) Whereas, in order to facilitate implementation of the proposed measures, a procedure should be provided for establishing close cooperation between Member States and the Commission within a Management Committee; (36) Whereas expenditure incurred by the Member States as a result of the obligations arising out of the application of this Regulation should be financed by the Community in accordance with Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy ( 9 ); (37) Whereas the common organisation of the market in beef and veal should take appropriate account, at the same time, of the objectives set out in Articles 33 and 131 of the Treaty; (38) Whereas the common organisation of the market in beef and veal laid down in Council Regulation (EEC) No 805/68 ( 10 ) has been amended several times; whereas, by reason of their number, their complexity and their dispersal among several Official Journals, these texts are difficult to use and thus lack the clarity which should be an essential feature of all legislation; whereas, under these circumstances, they should be consolidated in a new regulation and the aforementioned Regulation (EEC) No 805/68 should be repealed; whereas Council Regulations (EEC) No 98/69 of 16 January 1969 laying down general rules for the disposal of frozen beef and veal by intervention agencies ( 11 ), (EEC) No 989/68 of 15 July 1968 laying down general rules for granting private storage aid for beef and veal ( 12 ) and (EEC) No 1892/87 of 2 July 1987 on the recording of market prices in the beef and veal sector ( 13 ), the legal base of which was Regulation (EEC) No 805/68, are replaced by new arrangements in this Regulation and should therefore be repealed; (39) Whereas the change from the arrangements in Regulation (EEC) No 805/68 to those in this Regulation could give rise to difficulties which are not dealt with in this Regulation; whereas, in order to deal with that eventuality, provision should be made for the Commission to adopt the necessary transitional measures; whereas the Commission should also be authorised to solve specific practical problems, HAS ADOPTED THIS REGULATION:







Article 1

1. The common organisation of the market in beef and veal shall comprise an internal market and trade with third countries system and cover the following products:







CN code Description of goods (a) 0102 90 05 to 0102 90 79 Live animals of the domestic bovine species, other than pure-bred breeding animals 0201 Meat of bovine animals, fresh or chilled 0202 Meat of bovine animals, frozen 0206 10 95 Thick skirt and thin skirt, fresh or chilled 0206 29 91 Thick skirt and thin skirt, frozen 0210 20 Meat of bovine animals, salted, in brine, dried or smoked 0210 90 41 Thick skirt and thin skirt, salted, in brine, dried or smoked 0210 90 90 Edible flours and meals of meat or meat offal 1602 50 10 Other prepared or preserved meat or meat offal of bovine animals, uncooked; mixtures of cooked meat or offal and uncooked meat or offal 1602 90 61 Other prepared or preserved meat containing bovine meat or offal, uncooked; mixtures of cooked meat or offal and uncooked meat or offal (b) 0102 10 Live bovine pure-bred animals 0206 10 91 0206 10 99 Edible offal of bovine animals excluding thick skirt and thin skirt, fresh or chilled, other than for the manufacture of pharmaceutical products 0206 21 00 0206 22 90 0206 29 99 Edible offal of bovine animals excluding thick skirt and thin skirt, frozen, other than for the manufacture of pharmaceutical products 0210 90 49 Edible meat offal of bovine animals, salted, in brine, dried or smoked, other than thick skirt and thin skirt ex150200 90 Fats of bovine animals, raw or rendered, whether or not pressed or solvent-extracted 1602 50 31 to 1602 50 80 Other prepared or preserved meat or meat offal, of bovine animals, other than uncooked meat or meat offal and mixtures of cooked meat or offal and uncooked meat or offal 1602 90 69 Other prepared or preserved meat containing bovine meat or offal other than uncooked, and mixtures of cooked meat or offal and uncooked meat or offal

2. For the purposes of this Regulation:

(a) ‘bovine animals’ shall mean live animals of the domestic bovine species falling within CN codes ex01 02 10, 0102 90 05 to 0102 90 79;

(b) ‘adult bovine animals’ shall mean bovine animals the live weight of which is more than 300 kilograms.







TITLE I

INTERNAL MARKET

Article 2

In order to encourage action by trade and joint trade organisations to facilitate the adjustment of supply to market requirements, the following Community measures may be taken in respect of the products listed in Article 1:

(a) measures to improve stock breeding;

(b) measures to promote better organisation of production, processing and marketing;

(c) measures to improve quality;

(d) measures to permit the establishment of short- and long-term forecasts on the basis of the means of production used;

(e) measures to facilitate the recording of market price trends.

General rules concerning these measures shall be adopted by the Council in accordance with the procedure laid down in Article 37(2) of the Treaty.







CHAPTER 1

DIRECT PAYMENTS

▼M4 —————

▼B







CHAPTER 2

PRIVATE AND PUBLIC STORAGE

Article 26

1. From 1 July 2002, the granting of aids for private storage may be decided, when the average Community market price recorded, on the basis of the Community scale for the classification of carcases of adult bovine animals provided for in Regulation (EEC) No 1208/81 (called hereinafter ‘Community scale’), is, and is likely to remain, at less than 103 % of the basic price.

2. The basic price for carcases of male bovine animals of grade R3 in the Community scale shall be set at EUR 2 224/t.

3. Private storage aid may be granted for fresh or chilled meat of adult bovine animals presented in the form of carcases, half-carcases, compensated quarters, forequarters or hindquarters, classified in accordance with the Community scale.

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

— change the basic price taking account, in particular, of the need to fix this price at a level which contributes towards stabilising market prices without, however, leading to the formation of structural surpluses in the Community,

— amend the list of products in paragraph 3 which may be the subject of private storage aid.

5. Detailed rules for the application of this Article shall be adopted and the granting of aids for private storage shall be decided by the Commission in accordance with the procedure laid down in Article 43.

Article 27

1. From 1 July 2002, public intervention shall be opened if, for a period of two consecutive weeks, the average market price in a Member State or in a region of a Member State recorded on the basis of the Community scale provided for in Regulation (EEC) No 1208/81 falls short of EUR 1 560/t; in this case, one or more categories, qualities or quality groups, to be determined, of fresh or chilled meat falling within CN codes 0201 10 00 and 0201 20 20 to 0201 20 50 originating in the Community may be bought in by intervention agencies.

2. For buying-in under paragraph 1, only eligible offers equal to or less than the average market price recorded in a Member State or a region of a Member State and increased by an amount to be determined on the basis of objective criteria may be accepted.

3. The buying-in prices and the quantities accepted for intervention shall be determined under tender procedures and may, in special circumstances, be fixed per Member State or per region of a Member State on the basis of recorded average market prices. The tender procedures shall ensure equality of access of all persons concerned. They shall be opened on the basis of specifications to be determined taking commercial structures into account, where necessary.

4. Under the procedure provided for in Article 43:

— the products, categories, qualities or quality groups of products eligible for intervention shall be determined,

— the buying-in prices and the quantities accepted for intervention shall be fixed,

— the amount of the increase referred to in paragraph 2 shall be determined,

— the detailed rules for the application of this Article shall be adopted,

— any transitional provisions necessary for the implementation of these arrangements shall be adopted.

The Commission shall decide on:

— opening buying-in when during two consecutive weeks the condition referred to in paragraph 1 is met,

— closing buying-in when during at least one week the condition as referred to in paragraph 1 is no longer met.

Article 28

1. Disposal of the products bought in by the intervention agencies in accordance with the provisions of Articles 27 and 47 of this Regulation and of Articles 5 and 6 of Regulation (EEC) No 805/68 shall take place in such a way as to avoid any disturbance of the market and to ensure equal access to goods and equal treatment of purchasers.

2. Detailed rules for the application of this Article, in particular as regards selling prices, conditions for release from storage and, where appropriate, the processing of products bought-in by the intervention agencies, shall be adopted by the Commission in accordance with the procedure laid down in Article 43.







TITLE II

TRADE WITH THIRD COUNTRIES

Article 29

1. Imports into the Community of any of the products listed in Article 1(1)(a) shall be subject to presentation of an import licence.

Imports into the Community of any of the products listed in Article 1(1)(b) and exports from the Community of products listed in Article 1(1)(a) and (b) may be subject to presentation of an import or export licence.

Licences shall be issued by the Member States to any applicant, irrespective of his place of establishment in the Community and without prejudice to measures taken for the application of Articles 32 and 33.

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.

2. Detailed rules for the application of this Article shall be adopted by the Commission in accordance with the procedure laid down in Article 43. These rules may concern, in particular:

(a) the term of validity of licences,

(b) the list of products for which import or export licences are requested under paragraph 1 second subparagraph.

Article 30

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

Article 31

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 laid down in Article 30 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 averse 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 43. Such detailed rules shall specify in particular:

(a) the products to which additional import duties may 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 Agriculure.

Article 32

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 by the Commission in accordance with detailed rules adopted under the procedure laid down in Article 43.

With regard to the import quota of 50 000 tonnes of frozen meat coming within CN codes 0202 20 30, 0202 30 and 0206 29 91 and intended for processing, the Council, acting on a proposal from the Commission by a qualified majority, may lay down that all or part of the quota shall cover equivalent quantities of quality meat, applying a conversion rate of 4,375.

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

— method based on chronological order of the lodging of applications (‘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 of the Community market and the need to safeguard the equilibrium of that market, while 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 as part of the Uruguay Round trade negotiations.

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

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

(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 33

1. To the extent necessary to enable the products listed in Article 1 to be exported on the basis of quotations or prices for those products on the world market and within the limits resulting from agreements concluded in accordance with Article 300 of the Treaty, the difference between those quotations or prices and prices in the Community may be covered by export refunds.

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 43. Refunds may be fixed, in particular:

(a) at regular intervals;

(b) in addition and for limited quantities, by invitation to tender for products for which that procedure seems appropriate.

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 three months. The amount of the refund may, however, remain at the same level for more than three months 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.

4. The following shall be taken into account when refunds are being fixed:

(a) the existing situation and the future trend with regard to: — prices and availabilities of beef and veal sector products on the Community market, — prices for beef and veal sector products on the world market,

(b) the aims of the common organisation of the market in beef and veal, which are to ensure equilibrium and the natural development of prices and trade on this market;

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

(d) the need to avoid disturbances on the Community market;

(e) 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 products in the manufacture of processed goods exported to third countries and the use of products from these countries admitted to inward-processing arrangements.

5. When prices within the Community listed in paragraph 1 are being determined the following shall be taken into account:

— prices ruling on the representative Community markets,

— prices ruling at export.

When prices in international trade listed in paragraph 1 are being determined account shall be taken of:

— prices ruling 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-Community-frontier offer prices.

6. Refunds shall be granted only on application and on presentation of the relevant export licence.

7. The refund applicable to exports of products listed in Article 1 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:

(a) for the destination indicated on the licence; or

(b) for 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 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 43.

9. The refund shall be paid on 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 the refund was fixed, without prejudice to paragraph 3(b). Exceptions may be made to this rule in accordance with the procedure laid down in Article 43, provided conditions are laid down which offer equivalent guarantees.

Moreover, the payment of the refund for exports of live animals shall be subject to compliance with the provisions established in Community legislation concerning animal welfare and, in particular, the protection of animals during transport.

10. Without prejudice to paragraph 9 first indent, in the absence of a derogation granted in accordance with the procedure laid down in Article 43, no export refund shall be granted on products which are imported from third countries and re-exported to third countries.

11. Observance of the volume limits resulting from the agreements concluded in accordance with Article 300 of the Treaty shall be ensured on the basis of the export licences issued for the reference periods provided for therein which apply to the products concerned. With regard to compliance with the obligations arising in the framework of the Uruguay Round multilateral trade negotiations, the ending of a reference period shall not affect the validity of export licences.

12. Detailed rules for the application of this Article, including provisions on the redistribution of exportable quantities which have not been allocated or utilised, shall be adopted by the Commission in accordance with the procedure laid down in Article 43.

With regard to paragraph 9, last subparagraph, the detailed rules for the application may also include conditions concerning, in particular, imports into third countries.

Article 34

1. To the extent necessary for the proper working of the common organisation of the market in beef and veal, 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 or outward processing arrangements in respect of products listed in Article 1.

2. However, 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- or outward-processing arrangements, the Commission shall, at the request of a Member State or on its own initiative, decide on the necessary measures; the Council and the Member States 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 35

1. The general rules for the interpretation of the Combined Nomenclature and the detailed 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 into the Common Customs Tariff.

2. Safe 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 36

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 circumstances and limits within which Member States may adopt 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 on 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 on 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

Article 37

Member States shall record prices of bovine animals and of meat of bovine animals on the basis of rules to be established by the Commission in accordance with the procedure laid down in Article 43.

Article 38

1. When a substantial rise or fall in prices is recorded on the Community market and this situation is likely to continue, thereby disturbing or threatening to disturb the market, the necessary measures may be taken.

2. Detailed rules for the application of this Article shall be adopted by the Commission in accordance with the procedure laid down in Article 43.

▼M5

Article 39

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 43. 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 contributions towards the exceptional measures referred to in paragraph 1.

▼B

Article 40

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 41

Member States and the Commission shall communicate to each other the information necessary for implementing this Regulation. The information to be communicated shall be determined in accordance with the procedure laid down in Article 43. Rules for the communication and distribution of such information shall be adopted in accordance with the same procedure.

Article 42

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

▼M3

Article 43

1. The Commission shall be assisted by the Management Committee for Beef and Veal.

2. Where reference is made to this Article, Articles 4 and 7 of Decision 1999/468/EC ( 14 ) 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.

▼B

Article 44

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 45

Regulation (EC) No 1258/1999 and the provisions adopted in implementation thereof shall apply to the products listed in Article 1.

Article 46

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.







TITLE IV

TRANSITIONAL AND FINAL PROVISIONS

Article 47

1. Until 30 June 2002, products as referred to in paragraph 2 in connection with Article 26(1), may be bought in by intervention agencies in accordance with the provisions laid down in this Article, to prevent or mitigate a substantial fall in prices.

2. Where the conditions laid down in paragraph 3 are met, buying in by intervention agencies in one or more Member States or in a region of a Member State of one or more categories, qualities or quality groups, to be determined, of fresh or chilled meat falling within CN codes 0201 10 00 and 0201 20 20 to 0201 20 50 originating in the Community may be organised under tender procedures arranged with a view to ensuring reasonable support of the market, having regard to seasonal developments as regards slaughterings.

▼M2

Such buying-in may not cover more than 350 000 tonnes per year for the Community as a whole. However, for the year 2001, the maximum buying-in is fixed at 500 000 tonnes.

▼B

The Council may amend this quantity, acting by a qualified majority on a proposal from the Commission.

3. For each quality or quality group that may be bought in, the tender procedures may be opened as provided in paragraph 8 whenever, in a Member State or in a region of a Member State, the following two conditions are both met for a period of two consecutive weeks:

— the average Community market price recorded on the basis of Community grading scale for the carcases of adult bovine animals is less than 84 % of the intervention price,

— the average market price recorded on the basis of the said scale in the Member State or States or regions of a Member State is less than 80 % of the intervention price.

The intervention price shall be set at:

— EUR 3 475 per tonne for the period from 1 January until 30 June 2000,

— EUR 3 242 per tonne for the period from 1 July 2000 until 30 June 2001,

— EUR 3 013 per tonne for the period from 1 July 2001 until 30 June 2002.

4. Tender arrangements for one or more qualities or quality groups shall be suspended in any one of the following two situations:

— where, for two consecutive weeks, the two conditions referred to in paragraph 3 are no longer both met at the same time,

— where intervention buying-in is no longer appropriate in view of the criteria set out in paragraph 2.

5. Intervention shall also be opened if, for a period of two consecutive weeks, the average Community market price of young uncastrated male animals less than two years old or castrated male animals, recorded on the basis of the Community grading scale for carcases of adult bovine animals, falls short of 78 % of the intervention price, and if in a Member State or regions of a Member State, the average market price of young uncastrated male animals less than two years old or castrated male animals, recorded on the basis of the Community grading scale for carcases of adult bovine animals, falls short of 60 % of the intervention price; in this case, buying-in shall take place for the categories concerned in the Member States or regions of a Member State where the price level is below that limit.

For this buying-in, and without prejudice to paragraph 6, all offers shall be accepted.

The quantities bought in pursuant to this paragraph shall not be taken into account for the purposes of applying the buying-in ceiling referred to in paragraph 2.

6. Only offers equal to or less than the average market price recorded in a Member State or a region of a Member State and increased by an amount to be determined on the basis of objective criteria may be accepted under the buying-in systems referred to in paragraphs 2 and 5.

7. For each quality or quality group eligible for intervention, the buying-in prices and the quantities accepted for intervention shall be determined under tender procedures and may, in special circumstances, be fixed per Member State or per region of a Member State on the basis of recorded average market prices. The tender procedures must ensure equality of access for all persons concerned. They shall be opened on the basis of specifications to be determined taking commercial structures into account, where necessary.

8. Under the procedure provided for in Article 43:

— the categories, qualities or quality groups of products eligible for intervention shall be determined,

— the opening or reopening of tender procedures and their suspension in the case referred to in the last indent of paragraph 4 shall be decided,

— the buying-in prices and the quantities accepted for intervention shall be fixed,

— the amount of the increase referred to in paragraph 6 shall be determined,

— the procedures implementing this Article, and in particular those designed to prevent market prices spiralling downward, shall be adopted,

— any transitional provisions necessary for the implementation of these arrangements shall be adopted.

The Commission shall decide on:

— opening intervention as referred to in paragraph 5 and suspending it where one or more conditions laid down in that paragraph no longer apply,

— suspending buying-in as referred to in the first indent of paragraph 4.

Article 48

1. Until 30 June 2002, the granting of aids for private storage for products as referred to in Article 26(3) may be decided.

2. Detailed rules of application with regard to private storage aid shall be adopted and the granting of aids for private storage shall be decided by the Commission in accordance with the procedure laid down in Article 43.

Article 49

1. Regulations (EEC) No 805/68, (EEC) No 989/68, (EEC) No 98/69 and (EEC) No 1892/87 are hereby repealed.

2. References to Regulation (EEC) No 805/68 shall be construed as references to this Regulation and should be read in accordance with the correlation table in Annex V.

Article 50

The Commission shall adopt, in accordance with the procedure laid down in Article 43:

— the measures required to facilitate the transition from the arrangements provided in Regulation (EEC) No 805/68 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 51

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, save for Article 18 which shall apply from the entry into force of this Regulation.

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

▼A1









ANNEX I

SPECIAL PREMIUM







Regional ceilings of the Member States referred to in Article 4(4) Belgium 235 149 Czech Republic 244 349 Denmark 277 110 Germany 1 782 700 Estonia 18 800 Greece 143 134 Spain 713 999 (1) France 1 754 732 (2) Ireland 1 077 458 Italy 598 746 Cyprus 12 000 Latvia 70 200 Lithuania 150 000 Luxembourg 18 962 Hungary 94 620 Malta 3 201 Netherlands 157 932 Austria 423 400 Poland 926 000 Portugal 175 075 (3) Slovenia 92 276 Slovakia 78 348 Finland 250 000 Sweden 250 000 United Kingdom 1 419 811 (4) (1) Without prejudice to the specific rules laid down in Council Regulation (EC) No 1454/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Canary Islands and repealing Regulation (EEC) No 1601/92 (Poseican). (2) Without prejudice to the specific rules laid down in Council Regulation (EC) No 1452/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the French overseas departments, amending Directive 72/462/EEC and repealing Regulations (EEC) No 525/77 and (EEC) No 3763/91 (Poseidom). (3) Without prejudice to the specific rules laid down in Council Regulation (EC) No 1453/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (Poseima). Excluding the extensification programme provided for in Council Regulation (EC) No 1017/94 of 26 April 1994 concerning the conversion of land currently under arable crops to extensive livestock farming in Portugal (OJ L 112, 3.5.1994, p. 2). Regulation as last amended by Regulation (EC) No 2582/2001 (OJ L 345, 29.12.2001 p. 5). (4) This ceiling is increased temporarily by 100 000 head to 1 519 811 head until such time as live animals under six months of age can be exported.









ANNEX II

SUCKLER COW PREMIUM







National ceilings referred to in Article 7(2) applicable from 1 January 2000 Belgium 394 253 Czech Republic (1) 90 300 Denmark 112 932 Germany 639 535 Estonia (1) 13 416 Greece 138 005 Spain (2) 1 441 539 France (3) 3 779 866 Ireland 1 102 620 Italy 621 611 Cyprus (1) 500 Latvia (1) 19 368 Lithuania (1) 47 232 Luxembourg 18 537 Hungary (1) 117 000 Malta (1) 454 Netherlands 63 236 Austria 325 000 Poland (1) 325 581 Portugal (4) 277 539 Slovenia (1) 86 384 Slovakia (1) 28 080 Finland 55 000 Sweden 155 000 United Kingdom 1 699 511 (1) Applicable from the date of accession. (2) Excluding the specific ceiling provided for in Article 5(3) of Regulation (EC) No 1454/2001 and the specific reserve provided for in Article 2 of Regulation (EC) No 1017/94. (3) Excluding the specific ceiling provided for in Article 9(4)(b) of Regulation (EC) No 1452/2001. (4) Excluding the specific ceiling provided for in Article 13(3) and Article 22(3) respectively of Regulation (EC) No 1453/2001.

▼B









ANNEX III







Livestock unit (LU) conversion table referred to in Articles 12 and 13 Male bovine animals and heifers older than 24 months, suckler cows, dairy cows 1,0 LU Male bovine animals and heifers from six months to 24 months 0,6 LU Sheep 0,15 LU Goats 0,15 LU

▼A1









ANNEX IV

ADDITIONAL PAYMENTS







Global amounts referred to in Article 14 (expressed in millions of euro) 2002 and subsequent years Belgium 39,4 Czech Republic 8,776017 Denmark 11,8 Germany 88,4 Estonia 1,13451 Greece 3,8 Spain 33,1 France 93,4 Ireland 31,4 Italy 65,6 Cyprus 0,308945 Latvia 1,33068 Lithuania 4,942267 Luxembourg 3,4 Hungary 2,936076 Malta 0,0637 Netherlands 25,3 Austria 12,0 Poland 27,3 Portugal 6,2 Slovenia 2,964780 Slovakia 4,500535 Finland 6,2 Sweden 9,2 United Kingdom 63,8

▼B









ANNEX V

CORRELATION TABLE







Regulation (EEC) No 805/68 This Regulation Article 1 Article 1 Article 2 Article 2 Article 4 — Article 4a first and second indent Article 3(a) and (b) Article 4b(1) Article 4(1) Article 4b(2) first subparagraph Article 4(2) Article 4b(2) second subparagraph Article 4(3)(a) Article 4b(3) point (a) of the third subparagraph Article 3(c) Article 4b(3a) — Article 4b(4) — Article 4b(5) Article 4(6) Article 4b(7a) — Article 4b(8) Article 4(8) Article 4c(1) second subparagraph Article 5(4) Article 4c(1) third subparagraph Article 5(1) second subparagraph Article 4c(2) second subparagraph Article 5(2) Article 4c(2) third subparagraph Article 5(4) Article 4c(3) third subparagraph Article 5(3) third subparagraph Article 4c(4) Article 5(5) Article 4d(1) first sentence Article 6(1) first sentence Article 4d(1a) — Article 4d(2) first sentence Article 6(3) Article 4d(3a) — Article 4d(5) Article 6(2)(a) Article 4d(6) first subparagraph Article 6(2)(b) first sentence Article 4d(6) second to fourth subparagraph — Article 4d(6) fifth subparagraph Article 6(2) second subparagraph Article 4d(8) second indent Article 6(7) Article 4e(1) first sentence of the first subparagraph Article 8(1) first subparagraph Article 4e(1) second sentence of the first subparagraph Article 8(4) second indent of the second subparagraph Article 4e(1) second subparagraph Article 8(1) second subparagraph Article 4e(2) Article 8(2) Article 4e(3) Article 8(3) Article 4e(4) — Article 4e(5) Article 8(4) first subparagraph and first indent of the second subparagraph Article 4f(4) first and second indents of the second subparagraph Article 9(4) first and second subparagraphs Article 4g(3) Article 12(2) Article 4g(4a) — Article 4g(5) Article 12(3) Article 4i — Article 4j(1) to (3) Article 23(1) to (3) Article 4k — Article 4l Article 25 Article 5 — Article 6(1) Article 47(2) Article 6(2) Article 47(3) Article 6(3) Article 47(4) Article 6(4) Article 47(5) Article 6(5) Article 47(6) Article 6(6) Article 47(7) Article 6(7) Article 47(8) Article 6a — Article 7 — Article 8 Article 48 Article 9 Article 29 Article 10 Article 30 Article 11 Article 31 Article 12(1) second subparagraph Article 32(1) second subparagraph Article 12(2) to (4) Article 32(2) to (4) Article 13(1) to (3) Article 33(1) to (3) Article 13(4) first and second subparagraphs Article 33(4) first and second subparagraphs Article 13(5) to (12) Article 33(5) to (12) Article 14 Article 34 Article 15 Article 35 Article 16 Article 36 Article 22 — Article 22a(1) Article 38(1) Article 22a(2) — Article 22a(3) Article 38(2) Article 23 Article 39 Article 24 Article 40 Article 25 Article 41 Article 26(1) Article 42 Article 26(2) — Article 27 Article 43 Article 28 Article 44 Article 29 — Article 30 Article 45 Article 30a — Article 31 Article 46 Article 32 — Article 33 — Annex — Annex II —