1999R0174 — EN — 30.06.2002 — 016.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No174/1999
of26January1999
laying down special detailed rules for the application of Council Regulation (EEC) No 804/68 as
regardsexportlicences andexportrefundsinthecaseofmilkandmilkproducts
(OJ L 20, 27.1.1999, p. 8)
Amended by:
Official Journal
No page date
►M1CommissionRegulation(EC) No 1596/1999 of 20 July 1999 L 188 39 21.7.1999
►M2CommissionRegulation(EC) No 1961/2000 of 15 September 2000 L 234 10 16.9.2000
►M3CommissionRegulation(EC) No 1998/2000 of 21 September 2000 L 238 28 22.9.2000
►M4CommissionRegulation(EC) No 2114/2000 of 5 October 2000 L 252 6 6.10.2000
►M5CommissionRegulation(EC) No 2287/2000 of 13 October 2000 L 260 22 14.10.2000
►M6CommissionRegulation(EC) No 2357/2000 of 24 October 2000 L 272 15 25.10.2000
►M7CommissionRegulation(EC) No 2884/2000 of 27 December 2000 L 333 76 29.12.2000
►M8CommissionRegulation(EC) No 806/2001 of 26 April 2001 L 118 4 27.4.2001
►M9CommissionRegulation(EC) No 1202/2001 of 19 Jun e 2001 L 163 10 20.6.2001
►M10CommissionRegulation(EC) No 1370/2001 of 5 July 2001 L 183 18 6.7.2001
►M11CommissionRegulation(EC) No 1681/2001 of 22 August 2001 L 227 36 23.8.2001
►M12CommissionRegulation(EC) No 1923/2001 of 28 September 2001 L 261 53 29.9.2001
►M13CommissionRegulation(EC) No 2298/2001 of 26 November 2001 L 308 16 27.11.2001
►M14CommissionRegulation(EC) No 156/2002 of 28 Jan uary 2002 L 25 24 29.1.2002
►M15CommissionRegulation(EC) No 787/2002 of 13 May 2002 L 127 6 14.5.2002
►M16CommissionRegulation(EC) No 1166/2002 of 28 Jun e 2002 L 170 51 29.6.2002
Corrected by:
►C1Corrigendum, OJ L 21, 28.1.1999, p. 28 (174/1999)
►C2Corrigendum, OJ L 265, 19.10.2000, p. 30 (2287/2000)
▼B
COMMISSIONREGULATION(EC)No174/1999
of26January1999
laying down special detailed rules for the application of Council
Regulation (EEC) No 804/68 as regards export licences and export
refundsinthecaseofmilkandmilkproducts
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 804/68 of 27 June
1968 on the common organisation of the market in milk and milkproducts(
1), as last amended by Regulation (EC) No 1587/96(2), and
in particular Articles 13(3), 16a(1) and 17(9) and (14) thereof,
1.Whereas CommissionRegulation(EC) No 1466/95 of 27 Jun e1995 laying down special detailed rules of application for exportrefunds on milk and milk products(
3), as last amended by Regu-
lation(EC) No 2184/98(4), has been substantially amended
several times; whereas, since further amendments are to bemade, it should be recast in the interests of clarity and effi-ciency;
2.Whereas under the Agriculture Agreement concluded during theUruguay Round of the GATT trade negotiations(
5) (hereinafter
referred to as the ‘Agriculture Agreement’), export refunds onagricultural products, including milk products, are limited within
each 12-month period starting from 1 July 1995 to a maximum
quantity and a maximum value; whereas, in order to ensurecompliance with those limits, the issue of export licences shouldbe monitored; whereas procedures must also be adopted for allo-cating the quantities which may be exported with a refund;
3.Whereas Regulation(EEC) No 804/68 lays downgen eral rulesfor granting of export refunds in the milk and milk productssector, inorder, inparticular, to permit the mon itorin g of the
value and quantity limits for refunds; whereas detailed rules for
the application of those arrangements should be laid down;
4.Whereas, by way of derogationfrom CommissionRegulation(EEC) No 3665/87 of 27 November 1987 laying down commondetailed rules for the applicationof the system of export refun dsonagricultural products(
6), as last amended by Regulation (EC)
No 2334/98(7), cases where a refund may be granted without
presentation of an export licence should be defined and the
maximum time that products may remain under customs control
should be specified;
5.Whereas special provisions should be adopted for the milk andmilk products sector, inparticular with regard to licen ces, byway of derogationfrom CommissionRegulation(EEC) No3719/88 of 16 November 1988 laying down common detailedrules for the applicationof the system of import an d exportlicences and advance fixing certificates for agricultural
products(
8), as last amended by Regulation (EC) No 1044/
98(9); whereas, in addition, the tolerance permitted by that
Regulationas regards the quan tity of goods exported comparedwith the quantity indicated on the licence should be reducedand, in order to ensure effective controls on limits, there shouldbe no refunds paid on quantities exceeding what is indicated on1999R0174 — EN — 30.06.2002 — 016.001 — 2
(1) OJ L 148, 28. 6. 1968, p. 13.
(2) OJ L 206, 16. 8. 1996, p. 21.
(3) OJ L 144, 28. 6. 1995, p. 22.
(4) OJ L 275, 10. 10. 1998, p. 21.
(5) OJ L 336, 23. 12. 1994, p. 1.
(6) OJ L 351, 14. 12. 1987, p. 1.
(7) OJ L 291, 30. 10. 1998, p. 15.
(8) OJ L 331, 2. 12. 1988, p. 1.
(9) OJ L 149, 20. 5. 1998, p. 11.
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the licence; whereas the securities to be lodged when licence
applications are submitted should be sufficient to prevent specu-lative applications;
6.Whereas the term of validity of export licences should be fixed;whereas that term should vary according to the products
concerned, with a shorter term for products where there is a
higher risk of speculation;
7.Whereas, in order to ensure accurate checking of products
exported and to minimise the risk of speculation, the possibility
of changing the product for which a licence has been issuedshould be restricted;
8.Whereas Article 2a(2) of Regulation(EEC) No 3665/87 laysdown rules for the use of export licences with advance fixingof the refund for the exportation of products with a 12-digitcode other thanthat showninSection16 of the licen ce; whereasthis provisionbecomes applicable ina specific sector on ly if
product categories as referred to inArticle 13a of Regulation
(EEC) No 3719/88 and product groups as referred to in point(b) of the first subparagraph of Article 2a(2) of Regulation(EEC) No 3665/87 have beendefin ed;
9.Whereas for the milk and milk product sector, product categoriesare already defined with reference to the categories provided forin the Agriculture Agreement; whereas in the interests of soundmanagement this use of categories should be retained and Article
2a(2) of Regulation(EEC) No 3665/87 applied onthe basis on ly
of defined product groups;
10.Whereas in the milk sector refund rates are highly differentiated,
notably according to fat content; whereas, so that this arrange-
ment will not be called into question while at the same time theproportionality objective of Article 2a(2) of Regulation (EEC)No 3665/87 is respected, the product groups should be narrowlydefined and for certain products the validity of export licencesshould extend to products that in fat content are immediately
adjacent in CN code to the product for which a refund has been
fixed inadvan ce;
11.Whereas, to enable traders to participate in invitations to tenderopened by third countries without affecting the restrictions asregards volume, a system of provisional licences should be intro-duced giving successful tenderers the right to a full licence;
12.Whereas, in order to ensure effective monitoring of licencesissued, which depends on the notification of information to theCommissionby the Member States, a waitin g time should beprovided for before licences are issued; whereas, in order toensure the smooth operation of the arrangements and, in parti-
cular, anequitable allocationof the quan tities available within
the limits laid downby the Agriculture Agreemen t, variousmanagement measures should be laid down and, in particular,provisionshould be made for the issue of licen ces to besuspended and for a reduction coefficient to be applied to the
quantities applied for;
13.Whereas the refund rate should be determined for products
eligible for export refunds in the context of food-aid operations;
14.Whereas, to ensure that licences are correctly used, for certainexports with refunds the country of destination should be definedas a compulsory destination as referred to in Article 21(1) of
Regulation(EEC) No 3665/87;
15.Whereas experience has shown that the number of applicationsfor export licences for particular cheese varies according to
destination; whereas, in order that special measures can beapplied according to the destination indicated on licence applica-tions, destination zones should be fixed and the destination zoneindicated on export licences made obligatory for products fallingwithinCN code 0406;1999R0174 — EN — 30.06.2002 — 016.001 — 3
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16.Whereas the method for fixing the refund on milk products
containing added sugar, the price of which is determined by the
price of the ingredients, should be laid down according to thepercentage of the ingredients contained therein; whereas,however, to facilitate the management of refunds for theseproducts, and particularly measures to ensure compliance withcommitments regarding exports in the context of the Agriculture
Agreement, a maximum quantity should be fixed for sucrose
incorporated for which a refund may be granted; whereas 43 %by weight of whole product is representative of the sucrosecontent of such products;
17.Whereas Article 8(3) of Regulation(EEC) No 3665/87 providesthat refunds may be granted for ingredients of Community originin processed cheese manufactured under the inward processing
arrangements; whereas certain special rules are needed to ensure
that this specific measure operates properly and can be effec-tively checked;
18.Whereas, under the Agreement concluded between the EuropeanCommunity and Canada approved by Council Decision 95/591/EC(
1) export licences issued by the European Community must
be presented for cheese qualifying for preferential terms on
import into Canada; whereas the detailed rules for issuing such
licences should be laid down; whereas, to ensure that the quanti-ties of cheese imported into Canada under the import quotacorrespond to the quantities for which licences have been issued,the licences duly stamped by the Canadian authorities should bereturned to the competent bodies of the Member States and the
data onexports should be forwarded by the Member States to
the Commission;
19.Whereas, in the framework of the consultations with Switzerlandon the implementation of the results of the Uruguay Round, ithas beenagreed to apply a set of measures providin g inparti-cular for a reductioninthe customs duties oncertainCommunity cheeses imported into Switzerland; whereas the
Community origin of such products should be guaranteed;
whereas, to that end, export licences should be compulsory forall cheese exported under these arrangements, including cheeseon which export refunds are not payable; whereas licencesshould be issued subject to presentation by the exporter of a
declaration certifying the Community origin of the product;
20.Whereas the Community has the option of designating whichimporters may import Community cheeses into the United States
under the additional quota arising from the Agriculture Agree-ment; whereas this would allow the Community to maximisethe value of the quota; whereas a procedure should therefore belaid down for designating importers on the basis of the allocation
of export licences for the products concerned;
21).Whereas the measures provided for inthis Regulationare inaccordance with the opinion of the Management Committee for
Milk and Milk Products,
HAS ADOPTED THIS REGULATION:
CHAPTERI
General arrangementsforexportrefunds
Article 1
1. Exports from the Community of products listed in Article 1 of
Regulation(EEC) No 804/68 for which anexport refun d is requestedshall be subject to the presentation of an export licence, except in thecases referred to inArticle 2. The refun d to be paid shall be the rate1999R0174 — EN — 30.06.2002 — 016.001 — 4
(1) OJ L 334, 30. 12. 1995, p. 25.
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valid onthe day the applicationfor the export licen ce or, where rele-
vant, the provisional licence, is submitted.
However, the first subparagraph notwithstanding, an export licence
must also be presented for the products referred to in Annex I, Number
II, except inthe cases referred to inArticle 2.
2. Section 7 of licence applications and licences shall show the
country of destination and the code number of the country or territoryof destination, as indicated in the country nomenclature for the externaltrade statistics of the Community and statistics of trade betweenMember States, drawnup by the Commissiononthe basis of Article21(1) of Council Regulation (EC) No 1172/95(
1).
3. Licence applications which, within the meaning of Article 15 of
Regulation(EEC) No 3719/88, were lodged ona Thursday, shall be
deemed to have been submitted on the next working day.
Article 2
Refunds shall be granted only on presentation of an export licence, the
one exception being the cases referred to in the first and fourth indents
of Article 5(1) of Regulation(EC) No 1291/2000.
However, by derogationfrom the first paragraph, anexport licen ce
with advance fixing of the refund may be used to grant a refund forexports of milk products as referred to inArticle 36(1)(c) of Regulation(EC) No 800/1999.
For the purposes of the fourth indent of Article 5(1) of Regulation (EC)
No 1291/2000, where several separate codes in the refunds nomencla-
ture as laid downby CommissionRegulation(EEC) No 3846/87(
2)o r
in the combined nomenclature are entered in an export declaration, theparticulars relating to each code shall be deemed to constitute a sepa-rate declaration.
Article 3
No refund shall be granted on exports of cheese where the free-at-fron-
tier price prior to applicationof the refun d inthe Member State ofexport is less than EUR 230/100 kg. ‘Free-at-frontier price’ means theex-works price plus a flat-rate amount of EUR 3/100 kg.
Where an export refund has been applied for, section 22 of licences
shall contain the words ‘minimum free-at-frontier price, as referred to
inArticle 3 of Regulation(EC) No 174/1999, complied with’.
At the request of the competent authorities, applicants shall supply any
further information and substantiation which the authorities considernecessary to ensure compliance with the free-at-frontier price whenthe customs formalities are conducted and shall accept, where applic-able, any checks by those authorities of the accounts within themaeaning of Council Regulation (EEC) No 4045/89(
3).1999R0174 — EN — 30.06.2002 — 016.001 — 5
(1) OJ L 118, 25.5.1995, p. 10.
(2) OJ L 366, 24. 12. 1987, p. 1.
(3) OJ L 388, 30.12.1989, p. 10.▼M12
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However, the first paragraph shall not apply to cheese falling within
code 0406 90 339919 of the nomenclature for refunds.
Article 4
1. The four product categories for the purposes of the Agriculture
Agreement shall be those set out in Annex I hereto.
2. The second paragraph of Article 13a of Regulation (EEC) No
3719/88 shall not apply to the products referred to in Article 1(1) of
this Regulation.
3. Without prejudice to the applicationof Article 5(3) of this Regu-
lation, the product groups within the meaning of point (b) of the firstsubparagraph of Article 2a(2) of Regulation(EEC) No 3665/87 shall bethose set out in Annex II.
Article 5
1. Section 16 of licence applications and licences shall show the 12-
digit product code of the nomenclature for refunds. Licences shall bevalid for that product alon e except inthe cases specified inparagraphs2a nd3 .
2. For products falling within CN codes 0401, 0402, 0403, 0404,
0405and 2309, licence holders may on request obtain a change of the
code in Section 16 of the export licence to another code in the samecategory, as referred to in Annex I, where the refund is identical.Such requests must be lodged before completionof the formalities
referred to inArticle 3 or 25 of Regulation(EEC) No 3665/87.
3. By way of derogationfrom poin t (b) of the first subparagraph of
Article 2a(2) of Regulation(EEC) No 3665/87, export licen ces withadvance fixing of the refund shall also be valid for exportation of a
product with a 12-digit code other thanthat en tered inSection16 of
the licence if the two products are adjacent in one of the groups laiddown in Annex II or both are in group 23.
4. Incases referred to inparagraph 3, refun ds shall be calculated in
accordance with the second subparagraph of Article 2a(2) of Regula-
tion(EEC) No 3665/87.
Article 6
Export licences shall be valid from the day of issue, within the
meaning of Article 21(1) of Regulation (EEC) No 3719/88, until:
(a) the end of the fourth month following issue in the case of products
falling within CN code 0402 10;
(b) the end of the fourth month following issue in the case of products
falling within CN code 0405;
(c) the end of the fourth month following issue in the case of products
falling within CN code 0406;
(d) the end of the fourth month following issue for the other products
referred to inArticle 1 of Regulation(EEC) No 804/68;
(e) the date by which the obligations arising from invitations to tender
pursuant to Article 8(1) must be fulfilled and by the end of theeighth month following issue of the full licence referred to inArticle 8(3) at the latest.1999R0174 — EN — 30.06.2002 — 016.001 — 6
▼M4
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▼M1
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Article 7
By way of derogationfrom Articles 27(5) an d 28(5) of Regulation
(EEC) No 3665/87, the period during which the products referred toinArticle 1 of Regulation(EEC) No 804/68 may remaincovered by
the arrangements provided for in Council Regulation (EEC) No 565/
80(
1) shall be equal to the remainder of the term of validity of the
export licence.
Article 8
1. In the case of an invitation to tender issued by a public body in a
third country as referred to in Article 44(1) of Regulation (EEC) No
3719/88, except for invitations to tender concerning products fallingwithinCN code 0406, traders may apply for a provision al exportlicence for the quantity covered by their tender subject to the lodgingof a security. The security for provisional licences shall be equal to
75 % of the rate fixed inaccordan ce with Article 9.
Traders shall furnish proof that the body is public or subject to public
law.
2. Provisional licences shall be issued on the fifth working day
following that on which the application is lodged, provided that the
special measures referred to inArticle 10(3) have n ot beenadopted inthe meantime.
3. By way of derogationfrom Article 44(5) of Regulation(EEC) No
3719/88, the period for submitting the information referred to in thatparagraph shall be 60 days. Before the end of that period, traders shallapply for the full export licence, which shall be issued on presentation
of proof that they have beenawarded a con tract.
On presentation of proof that the tender has been rejected or that the
quantity awarded by the contract is less than indicated on the provi-
sional licence, the whole or part of the security shall be released asappropriate.
4. Licence applications referred to in paragraphs 2 and 3 shall be
made inaccordan ce with Article 13 of Regulation(EEC) No 3719/88.
5. The provisions of this chapter, with the exception of Article 10,
shall apply to full licences.
Article 9
The security referred to inArticle 15(2) of Regulation(EC) No 1291/
2000 shall be equal to a percentage of the refund fixed for each productcode applicable onthe day the export licen ce applicationis lodged, asfollows:
(a) 10 % for products covered by CN code 0405;
(b) 30 % for products covered by CN code 0402 10;
(c) 30 % for products covered by CN code 0406;
(d) 25 % for other products.
The security may not, however, be less than EUR 6/100 kg.
The amount of the refund referred to in the first paragraph shall be that
calculated for the total quantity of the product concerned, except formilk products containing added sugar.
For milk products containing added sugar, the amount of the refund
referred to inthe first paragraph shall be equal to the total quan tity ofthe whole product concerned, multiplied by the refund rate applicableper kilogram of milk product.1999R0174 — EN — 30.06.2002 — 016.001 — 7
(1) OJ L 62, 7. 3. 1980, p. 5.▼M10
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Article 10
1. Export licences shall be issued on the fifth working day following
the day on which applications are submitted, provided that the quanti-
ties for which licences have been applied for have been communicated
inaccordan ce with Article 9(1) of CommissionRegulation(EC) No1498/1999(
1) and that the special measures referred to in points (a)
and (b) of the first subparagraph of paragraph 3 have not been adoptedinthe mean time.
2. A decisionmay be takento adopt on e or more of the special
measures provided for inparagraph 3 where the issue of the licen ces:
(a) appears likely to result inanoverruninthe budget resources avail-
able or inthe exhaustionof the maximum quan tities which may beexported with refund during the 12-month period in question or ina shorter period to be determined pursuant to Article 11;
or
(b) does not allow the continuity of exports to be guaranteed during the
rest of the period concerned;
or
(c) would lead to a distortionof competitionbetweentraders.
For the purposes of the first subparagraph, account shall be taken, as
regards the product in question, of the seasonal nature of trade, themarket situation and in particular the trend in prices on the market
and the export conditions resulting therefrom.
3. Inthe cases referred to inparagraph 2, the Commissionmay
decide, for the product or products inquestion :
(a) to reject all or part of pending applications for which export
licences have not yet been issued;
(b) to apply an allocation coefficient to the quantities requested. Where
a coefficient of less than 0,4 is applied to the quantities requested,
applicants may, within three working days of publication of thedecision fixing the coefficient, request the cancellation of theirlicence application and the release of their security;
(c) to suspend the lodging of licence applications for a maximum of
five working days.
Furthermore, inaccordan ce with the procedure provided for inArticle
42 of Regulation(EC) No 1255/1999, the Commissionmay decide:
(a) to suspend the lodging of licence applications for the product or
products concerned for a period exceeding five working days;
(b) at the end of the period of suspension of the lodging of applications
or after the applications have been rejected, to fix refunds by invi-tation to tender for products falling within CN codes 0402 1019,0405 1090, 040590 10, 0405 90 90 and 040510 19. The relevantlicences shall then be issued.
Article 11
Where the total quantity covered by the licence applications submitted
is such that there is a risk of early exhaustionof the maximum quan ti-
ties which may be exported with refund during the 12-month period inquestion, the Commission may decide, in accordance with the proce-dure provided for inArticle 30 of Regulation(EEC) No 804/68, toallocate those maximum quantities over periods to be determined.
Article 12
1. Where the quantity exported exceeds that shown on the licence,
no refund shall be payable on the overrun.1999R0174 — EN — 30.06.2002 — 016.001 — 8
(1) OJ L 174, 9.7.1999, p. 3.▼B
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To that end, Section 22 of licences shall contain the words: ‘Payment
of the refund restricted to the quantity shown in Sections 17 and 18’.
2. By way of derogationfrom the provision s of Articles 8(5) an d
33(2) of Regulation (EEC) No 3719/88 on tolerances for quantities
exported, the following rates shall apply:
(a) the rate provided for inArticle 8(5) shall be 2 %;
(b) the rate provided for in Article 33(2), first and second subpara-
graphs, shall be 98 %;
(c) the rate provided for inArticle 33(2), third subparagraph, shall be
2% .
Article 44(9)(c) of Regulation(EEC) No 3719/88 shall n ot apply.
Article 13
1. Article 10 shall not apply to the issuing of export licences for
food-aid supplies inaccordan ce with Article 10(4) of the AgricultureAgreement.
Article 14
The country of destination referred to in Article 1(2) shall be a compul-
sory destin ationfor the purposes of Article 21(1) of Regulation(EEC)No 3665/87 for licences issued pursuant to Article 8 of this Regulation.
Article 15
1. For licences issued for products falling within CN code 0406, the
following words shall be entered in Section 20 of applications andlicences:
‘Licence valid for zone ... as defined in Article 15(3) of Regulation
(EC) No 174/1999’
The zone indicated shall be the zone, as defined in paragraph 3, to
which the country of destination indicated in Section 7 of licence appli-cations and licences belongs.
2. The zone as referred to in paragraph 1 shall be a compulsory
destination for the purposes of Article 21(1) of Regulation (EEC) No3665/87.
No refund shall be paid where the actual destination is in a zone other
than that indicated in the licence application and in the licence.
3. The zones referred to in paragraph 1 shall be as follows:
— zone I: destination codes 070 and 091 to 096,
— zone III: destination code 400,— zone VI: all other destination codes.
Article 16
1. For milk products containing added sugar, the refund shall be
equal to the sum of the following components:
(a) a component representing the quantity of milk product;
(b) a component representing the quantity of added sucrose, up to a
maximum of 43 % by weight of whole product.
However, the component referred to in (b) shall apply only if the added
sucrose has beenproduced from sugar beet or can e harvested intheCommunity.1999R0174 — EN — 30.06.2002 — 016.001 — 9
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2. The component referred to in paragraph 1(a) shall be calculated
by multiplying the basic amount of the refund by the milk productcontent of the whole product.
The basic amount referred to in the first subparagraph shall be the
refund on one kilogram of milk product contained in the whole
product.
3. The component referred to in paragraph 1(b) shall be calculated
by multiplying the sucrose content of the whole product, up to a
maximum of 43 %, by the basic amount of the refund applicable onthe day the licence application is submitted for the products listed inArticle 1(1)(d) of Council Regulation (EEC) No 1785/81(
1).
However, the sucrose component shall not be taken into account where
the basic amount of the refund for the milk product content referred toin the second subparagraph of paragraph 2 is zero or is not fixed.
4. For the purposes of paragraph 1(b), sucrose shall be treated as
sucrose produced from beet or cane harvested in the Community if ithas been:
(a) imported into the Community under Protocol 8 on sugar annexed to
the ACP-EEC Lomé Convention(
2), or the Agreement on cane
sugar between the European Economic Community and the
Republic of India(3);
(b) obtained from products imported under the provisions referred to in
(a).
Article 17
1. Export licence applications for milk and milk products exported
as products falling within CN code 0406 30 in accordance with the
third indent of Article 8(3) of Regulation (EEC) No 3665/87 shall be
accompanied by the authorisation granted by the competent authoritiesto use the customs arrangements in question.
2. Section 20 of licence applications and licences shall contain a
reference to this Article.
3. The Member States shall take the necessary steps under the
arrangements referred to in paragraph 1 to identify and check thequality and quantity of products referred to in that paragraph for whicha refund has been applied for and to apply the provisions on entitle-ment to the refund.
CHAPTERII
Specificarrangements
Article 18
1. Anexport licen ce shall be required for all exports of cheese to
Canada under the quota referred to in the Agreement concluded
between the European Community and Canada.
2. Licence applications and licences shall show:
(a) inSection7, the words ‘CANADA — 404’;
(b) inSection15, the six-digit descriptionof the goods inaccordan ce
with the Combined Nomenclature for products falling within CNcodes 0406 10, 0406 20, 0406 30 and 040640 and the eight-digitdescriptionfor products fallin g withinCN code 0406 90. Section15 of applications and licences may contain no more than sixproducts thus described;1999R0174 — EN — 30.06.2002 — 016.001 — 10
(1) OJ L 177, 1. 7. 1981, p. 4.
(2) OJ L 229, 17. 8. 1991, p. 3.
(3) OJ L 190, 23. 7. 1975, p. 36.▼M11
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(c) in Section 16, the eight-figure CN code and the quantity in kilo-
grams for each of the products referred to inSection15. Thelicence shall be valid only for the products and quantities so desig-
nated;
(d) in Sections 17 and 18, the total quantity of products referred to in
Section16;
(e) inSection20, the followin g words:
‘Cheeses for direct export to Canada. Article 18 of Regulation (EC)
No 174/1999. Quota for ... (year)’
or, as the case may be,
‘Cheeses for export directly/via New York to Canada. Article 18 of
Regulation(EC) No 174/1999. Quota for ... (year)’.
Where cheese is transported to Canada via European third coun-
tries, such countries must be indicated instead of, or with, areference to New York;
(f) inSection22, the words ‘without export refun d’.
3. Licence applications shall be admissible only where applicants:
(a) declare in writing that all material falling within Chapter 4 of the
Combined Nomenclature and used in the manufacture of products
covered by their applicationhas beenproduced en tirely withinthe
Community;
(b) undertake in writing to provide, at the request of the competent
authorities, any further substantiation which the latter consider
necessary for the issuing of licences and to accept, where applic-
able, any checks by those authorities on the book-keeping andmanufacturing conditions of the products concerned.
4. Licences shall be issued immediately after applications are
submitted. At the request of applicants, a certified copy of the licenceshall be issued.
5. Licences shall be valid from their date of issue within the
meaning of Article 21(1) of Regulation (EEC) No 3719/88 until 31
December following that date.
However, licences may be issued from 20 December and shall be valid
from l January until 31 December of the following year provided thewords ‘quota for ... (year)’ in Section 20 of licence applications andlicences refer to the following year.
6. Export licences presented to the competent authority for attribu-
tion and endorsement in accordance with Article 22 of Regulation
(EEC) No 3719/88 may be used for one export declaration only.
Licences shall be exhausted once the export declaration has beenpresented.
Titular holders of export licences shall ensure that a certified copy of
the licence is presented to the competent Canadian authority when theimport licence is applied for.
7. By way of derogationfrom Article 9 of Regulation(EEC) No
3719/88, licences shall not be transferable.
8. Before the end of July for the preceding six-month period and
before the end of January for the previous quota year, the competentauthority of the Member State shall notify the Commission, in accor-dance with Annex IV, of the number of licences issued and thequantity of cheese concerned.
9. Chapter I shall not apply.1999R0174 — EN — 30.06.2002 — 016.001 — 11
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Article 19
Inorder to qualify for a reductioninor anexemptionfrom customs
duties on import into Switzerland of the cheeses listed in Appendix 2to Annex III to the Agreement between the European Community andthe Swiss Confederation on trade in agricultural products, an exportdeclaration accompanied by proof of origin issued pursuant to ProtocolNo 3 to the Agreement between the European Economic Community
and the Swiss Confederation of 22 July 1972 shall be required.
Article 20
1. Inaccordan ce with the procedure provided for inArticle 30 of
Regulation(EEC) No 804/68, the Commissionmay decide that exportlicences for products falling within CN code 0406 for export to theUnited States of America as part of the additional quota under the
Agriculture Agreement and the tariff quotas originally resulting from
the Tokyo Round and granted to Austria, Finland and Sweden by theUnited States in Uruguay Round list XX shall be issued in accordancewith paragraphs 2 to 11.
2. Exports of cheese to the United States of America under the
quotas referred to inparagraph 1 shall be subject to presen tationof anexport licence.
Traders may apply, within a period to be determined, for a provisional
export licence for the export of the products referred to in paragraph 1during the following calendar year subject to the lodging of a securityequal to 50 % of the rate fixed inaccordan ce with Article 9, with a
minimum of ►
M11EUR 6◄per 100 kg.
Traders shall at the same time indicate:
(a) the designation of product group covered by the United States
quota in accordance with Additional Notes 16 to 23 and 25 inChapter 4 of the Harmonized Tariff Schedule of the United Statesof America (most recent version);
(b) the product names in accordance with the Harmonized Tariff Sche-
dule of the United States of America (most recent version);
(c) the quantity of products for which provisional licences are being
sought which they have exported to the United States during the
preceding three calendar years. To this end, the trader whose
name appears on the relevant export declaration shall be regardedas the exporter;
(d) the name and address of the importer in the United States desig-
nated by the applicant;
(e) whether the importer is a subsidiary of the applicant.
In addition, applications shall be accompanied by a certificate from the
designated importer stating that he is eligible under the rules in force inthe United States on the issue of import licences for the products
referred to inparagraph 1 as part of the quota.
3. Where applications for provisional licences are submitted in
respect of a quantity of products in excess of one of the quotas referredto inparagraph 1 for the year inquestion , the Commissionmay, inaccordance with the procedure laid down in Article 42 of Regulation(EC) No 1255/1999:
(a) allocate provisional licences taking into account the quantity of the
same products exported to the United States by the applicant in the
past;
and/or
(b) allocate provisional licences in preference to applicants whose
designated importers are subsidiaries;1999R0174 — EN — 30.06.2002 — 016.001 — 12
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and/or
(c) apply a reduction coefficient to the quantities for which application
is made.
4. Where applying a reduction coefficient would mean allocating
provisional licences for quantities of less than 5 tonnes, the Commis-sion may allocate licences by drawing lots.
5. Where applications are submitted for provisional licences for
quantities of product not exceeding the quotas referred to in paragraph
1 for the year concerned, the Commission may allocate the remainingquantities to applicants in proportion to the quantities applied for.
6. Section 20 of provisional licences as referred to in the first
subparagraph of paragraph 2 shall include the following:
‘Provisional export licence referred to in the first subparagraph of
Article 20(2) of Regulation(EC) No 174/1999: n ot valid for
exports’.
7. The names of importers designated by traders to whom provi-
sional licences are issued shall be forwarded to the competent UnitedStates authorities.
8. In the case where an import licence for the quantities concerned
is not allocated to the importer designated by an operator, in circum-
stances which do not cast doubt on the sincerity of the attestation
referred to inthe third subparagraph of paragraph 2, the trader may beauthorised by the Member State to designate another importer providedthat the latter appears on the list communicated to the competent autho-rities of the United States of America, in accordance with paragraph 7.The Member State shall inform the Commission as soon as possible of
the change of designated importer and the Commission shall notify the
change to the competent authorities of the United States.
9. Securities shall be released inwhole or inpart for rejected appli-
cations or for quantities in excess of those allocated.
10. Before the end of the year for which the provisional licences are
issued, the interested party shall apply for the full licence, even in the
case of part quantities, which shall be issued forthwith, on conditionthat the security referred to inparagraph 2 is in creased to the totalamount laid down in Article 9 for the quantities for which the licencesare allocated. The following words shall be entered in section 20 of the
application for the full licence and in the licence itself: ‘For export to
the United States of America: Article 20 of Regulation (EC) No 174/1999.’
Licences issued under this Article shall be valid only for the exports
referred to inparagraph 1.
The security for the full licence shall be released only on presentation
of the proof referred to inArticle 35(5) of CommissionRegulation
(EC) No 1291/2000(
1).
11. Chapter I, with the exception of the first sentence of Article 1(1)
and Article 10 shall apply to full licences. However, the term ofvalidity of licences as provided for in Article 6 may not extend beyond
the end of the year concerned.
Article 20a
1. The following provisions shall apply to exports to the Dominican
Republic of milk powder imported into that country at a reduced rateof duty under the quota, for 12 month periods commencing on 1 July,as referred to in the Memorandum of Understanding concluded1999R0174 — EN — 30.06.2002 — 016.001 — 13
(1) OJ L 152, 24.6.2000, p. 1.▼M11
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between the European Community and the Dominican Republic and
approved by Council Decision 98/486/EC(1).
2. Exports as referred to inparagraph 1 shall be subject to the
presentation to the competent authorities of the Dominican Republicof a certified copy of the export licence issued in accordance with this
Article and a duly endorsed copy of the export declaration for each
consignment.
3. Whenexport licen ces are issued, priority shall be givento milk
powder falling within the following product codes from the nomencla-
ture of export refunds:
— 0402 1019 9000,
— 0402 2111 9900,
— 0402 2119 9900,
— 0402 2191 9200,
— 0402 2199 9200.
Products covered by applications must have been produced entirely
within the European Community. At the request of the competentauthorities, applicants shall supply any further substantiation whichthe authorities consider necessary for the issuing of licences and shallaccept, where applicable, any checks by those authorities of the book-keeping and manufacturing conditions of the products concerned.
4. The quota referred to inparagraph 1 shall be of 22 400 t per 12-
month period commencing on 1 July. The quota shall be divided intotwo parts:
(a) the first part, equal to 80 % or 17 920 t, shall be distributed among
Community exporters who can prove that they have exportedproducts as referred to inparagraph 3 to the Domin icanRepublicduring each of the three calendar years prior to the period for
submission of applications, excluding 2000;
(b) the second part, equal to 20 % or 4 480 tonnes, shall be reserved
for applicants other than those referred to at (a) who can prove, atthe time they submit their application, that they have been engagedfor at least 12 months in trade with third countries in the milkproducts listed in Chapter 4 of the tariff and statistical nomencla-
ture and the common customs tariff and are registered in a
Member State for VAT purposes.
5. Applications for export licences may not cover more, per appli-
cant, than:
— for the part referred to inparagraph 4(a), a quan tity equal to 110 %
of the total quantity of products referred to in paragraph 3 exported
during one of the three calendar years prior to the period forsubmission of applications, excluding 2000;
— for the part referred to inparagraph 4(b), a total maximum quan tity
of 600 t.
Applicants who fail to comply with this ceiling shall have their
applications rejected.
6. (a) To be accepted, only one export licence application may be
submitted per product code in the nomenclature for refunds andall applications must be lodged at the same time with thecompetent authority of a single Member State;1999R0174 — EN — 30.06.2002 — 016.001 — 14
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(b) Export licence applications shall be admissible only where
applicants, at the time they present their applications:
— lodge a security of EUR 15 per 100 kilogrammes,
— for the part referred to in paragraph 4(a), indicate the quan-
tity of products referred to inparagraph 3 that they haveexported to the Dominican Republic during one of the threecalendar years prior to the period referred to in paragraph4(a) and are able to prove this to the satisfaction of the
competent authority of the Member State concerned. To this
end the trader whose name appears on the relevant exportdeclarationshall be regarded as the exporter,
— for the part referred to inparagraph 4(b), are able to prove to
the satisfactionof the competen t authority of the Member
State concerned that they fulfil the conditions laid down.
7. Licence applications shall be lodged from 1 to 10 April each year
for the quota relating to the period 1 July to 30 June the followingyear.
However, for the period from 1 July 1999 to 30 June 2000, licence
applications shall be lodged from 1 to 10 August 1999.
For the purposes of Article 1(1), all applications lodged before the
deadline shall be deemed to have been lodged on the first day of the
period for submission of licence applications.
8. The refund rate for products intended for export to the Dominican
Republic under the quota referred to in paragraph 1 shall be:
— 70 %, for products covered by CN code 0402 10, and
— 85 %, for products covered by CN codes 0402 21 and 0402 29,
of the rate fixed by the Commissioninaccordan ce with Article 17(3)
of Regulation(EEC) No 804/68 onthe first day of the period referredto inparagraph 7.
9. Licence applications and licences shall contain:
(a) insection7, the words ‘Domin icanRepublic, 456’;
(b) in sections 17 and 18 of the application, the quantity to which the
applicationrelates;
(c) in section 20, one of the following indications:
— Artículo 20 bisdel Reglamento (CE) n
o174/1999:contingente
arancelario de leche en polvo del año 1.7…-30.6… fijado en
el Memorándum de acuerdo celebrado entre la Comunidad
Europea y la República Dominicana y aprobado mediante laDecisión98/486/CE del Con sejo.
— Artikel 20a i forordning (EF) nr. 174/1999:toldkontingent for
perioden1.7… til 30.6… for mælkepulver i hen hold til den
aftale, som blev indgået mellem Det Europæiske Fællesskab
og Den Dominikanske Republik og godkendt ved Rådets afgør-else 98/486/EF.
— Artikel 20a der Verordnung (EG) Nr. 174/1999:Milchpulver-
kontingent für das Jahr 1.7…-30.6… gemäß der mit dem
Beschluss 98/486/EG des Rates genehmigten Vereinbarung
zwischen der Europäischen Gemeinschaft und der Dominika-nischen Republik.
—Άρθρο 20α του κανονισµού (ΕΚ) αριθ. 174 /1999:δασµολο-
γική ποσόστωση, για το έτος 1.7 …-30.6…, γάλακτος σε
σκόνηδυνάµει του µνη µονίου συµφωνίας που συνήφθη
µεταξύ της Ευρωπαϊκής Κοινότητας και της ∆οµιν-
ικανικής ∆ηµοκρατίας και εγκρίθηκε από την απόφαση98/486/ΕΚ του Συµβουλίου.
— Article 20a of Regulation(EC) No 174/1999:tariff quota for
1.7…-30.6…, for milk powder under the Memorandum of1999R0174 — EN — 30.06.2002 — 016.001 — 15
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Understanding concluded between the European Community
and the Dominican Republic and approved by Council Decision98/486/EC.
— Article 20 bisdu règlement (CE) n
o174/1999:contingent tari-
faire pour l'année 1.7…-30.6…, de lait en poudre au titre du
mémorandum d'accord conclu entre la Communauté européenneet la République dominicaine et approuvé par la décision 98/486/CE du Conseil.
— Articolo 20 bis del regolamento (CE) n. 174/1999:contingente
tariffario per l'anno 1.7…-30.6…, di latte in polvere a titolodel memorandum d'intesa concluso tra la Comunità europea e
la Repubblica dominicana e approvato con la decisione 98/
486/CE del Consiglio.
— Artikel 20 bis van Verordening (EG) nr. 174/1999:tariefcontin-
gent melkpoeder voor het jaar 1.7…-30.6… krachtens hetmemorandum van overeenstemming tussen de EuropeseGemeenschap en de Dominicaanse Republiek, goedgekeurd bij
Besluit 98/486/EG vande Raad.
— Artigo 20.
oA do Regulamento (CE) n.o174/1999:contingente
pautal do ano 1.7…-30.6…, de leite em pó ao abrigo do
memorando de acordo concluído entre a Comunidade Europeiae a República Dominicana e aprovado pela Decisão 98/486/CEdo Conselho.
— Asetuksen(EY) N:o 174/1999 20 a artikla:n euvoston
päätöksellä 98/486/EY hyväksytynEuroopanyhteisönjaDominikaanisen tasavallan yhteisymmärryspöytäkirjan
mukainen maitojauheen tariffikiintiö 1.7… ja 30.6… välisenä
aikana.
— Artikel 20a i förordning (EG) nr 174/1999:tullkvot för året
1.7…—30.6…, för mjölkpulver enligt avtalsmemorandumetmellan Europeiska gemenskapen och Dominikanska republiken,godkänt genom rådets beslut 98/486/EG.
Licences issued under this Article shall give rise to an obligation to
export to the destination indicated in section 7.
10. Not later than the fifth working day following expiry of the
period for lodging licence applications, Member States shall notify theCommission, in accordance with the model in Annex V, for each of thetwo parts of the quota and for each product code of the nomenclature
for refunds, of the quantities covered by licence applications or, where
applicable, that no applications have been lodged.
All notifications, including notifications of nil applications, shall be
made by telex or fax onthe workin g day stipulated.
Before issuing licences, the Member States shall verify in particular
that the information referred to in paragraphs 3 to 5 is correct.
If the information provided by a trader to whom a licence has been
issued is found to be incorrect, the licence shall be cancelled and thesecurity forfeited.
11. The Commissionshall decide as quickly as possible to what
extent applications notified to it may be granted and shall inform theMember States of its decision.
If all the quantities covered by licence applications for both parts of the
quota exceed one or other of the quantities referred to in paragraph 4,the Commissionshall fix allocationcoefficien ts. If applicationof theallocation coefficient results in a quantity per applicant of less than20 t, applicants may withdraw their applications. In such cases, they
shall notify the competent authority within three working days of publi-
cation of the Commission's decision. The security shall be releasedimmediately. The competent authority shall notify the Commission,within eight working days of publication of the decision, of the quanti-ties for which applications have been withdrawn and for which thesecurity has beenreleased.1999R0174 — EN — 30.06.2002 — 016.001 — 16
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Where the total quantity covered by licence applications is less than the
quantity available for the period in question, the Commission shallallocate the quantity remaining, on the basis of objective criteria taking
account in particular of licence applications for all the products falling
withinCN codes 0402 10, 0402 21 an d 0402 29.
12.►
M8Licences shall be issued at the request of the operator,
not earlier than 1 June and not later than 15 February the followingyear. They shall be issued only to operators whose licence applications
were notified in accordance with paragraph 10. ◄
Member States shall communicate to the Commission before 1 March,
in accordance with Annex VI, for both parts of the quota, the quantitiesfor which no licences were issued.
13. Notwithstanding Article 6, export licences shall be valid from
their actual day of issue within the meaning of Article 23(2) of Regula-tion (EC) No 1291/2000 until 30 June of the quota year for which thelicence application was made.
14.►
M8The security shall be released only in one of the
following two cases:
(a) onpresen tationof the proof referred to inArticle 35(5) of Commis-
sionRegulation(EC) No 1291/2000(1) accompanied by a copy of
the export declaration duly initialled by the competent authorities
of the Dominican Republic;
(b) in respect of the quantities covered by applications for which no
licence could be issued. ◄
Notwithstanding the fifth subparagraph of Article 33(2) of Regulation
(EEC) No 3719/88, the security relating to the quantity not exportedshall be forfeit.
15. Notwithstanding Article 9 of Regulation (EEC) No 3719/88,
licences shall not be transferable.
16. Before 1 September each year, the competent authority of the
Member State shall report to the Commission, in accordance withAnnex VII, broken down by product code of the nomenclature forrefunds:
— the quantity allocated,
— the quantity for which licences have been issued,— the quantity exported
during the previous 12-month period as referred to in paragraph 1.17.►
M8Chapter 1 shall apply, with the exceptionof Articles 6, 9
and 10.◄
Article 20b
1. The following provisions shall apply to exports to Poland of
products falling within CN code 0405 referred to in Article 1(e) ofRegulation(EC) No 1255/1999.
2. Exports as referred to inparagraph 1 shall be subject to the
presentation to the competent authorities of Poland of a certified copy
of the export licence issued in accordance with this Article and a duly
endorsed copy of the export declaration for each consignment. Thegoods shall not have been exported previously to another third country.
3. Licence applications and licences shall contain:
(a) inbox 7, the words ‘Polan d’;1999R0174 — EN — 30.06.2002 — 016.001 — 17
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(b) inbox 15, a descriptionof the goods inaccordan ce with the
Combined Nomenclature;
(c) in box 16, the eight-figure Combined Nomenclature code and the
quan tity inkilograms for each product referred to inbox 15;
(d) in boxes 17 and 18, the total quantity of the products referred to in
box 16;
(e) inbox 20, the words ‘Butter for export to Polan d. Article 20b of
Regulation(EC) No 174/1999’;
(f) in box 22, the words ‘no export refund’;
(g) licences shall be valid only for the products and quantities thus
specified.
4. Licences issued under this Article shall carry with them an obli-
gation to export to the destination indicated in box 7.
5. Licences shall be issued immediately after applications are
lodged. At the request of the party concerned, a certified copy of the
endorsed licence shall be issued.
6. Issue of licences shall not be subject to the lodging of a security.7. Notwithstanding Article 9 of Commission Regulation (EC) No
1291/2000(
1), licences shall not be transferable.
8. Licences shall be valid from their date of issue within the
meaning of Article 23(1) of Regulation (EC) No 1291/2000 until thefollowing 30 June.
9. By the end of February, for the previous year, the competent
authorities of the Member States shall notify the Commission of the
number of licences issued and the quantity of butter involved, broken
down by Combined Nomenclature code.
10. Chapter I shall not apply.
CHAPTERIII
Finalprovisions
Article 21
Regulations (EEC) No 3665/87 and (EEC) No 3719/88 shall apply save
as otherwise provided inthis Regulation .
Article 22
Regulation(EC) No 1466/95 is hereby repealed.References to the repealed Regulation shall be construed as references
to this Regulation.
Regulation (EC) No 1466/95 shall continue to apply to licences issued
against applications submitted before the entry into force of the present
Regulation.
Article 23
►
C1This Regulation shall enter into force on the third day ◄
following its publication in the Official Journal of the European
Communities .
It shall apply from 1 February 1999.
This Regulation shall be binding in its entirety and directly applicable
inall Member States.1999R0174 — EN — 30.06.2002 — 016.001 — 18
(1) OJ L 152, 24.6.2000, p. 1.▼B
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ANNEX I
Productcategories laiddowninArticle4(1)
Number DescriptionCN code
I Butter, other fats and oils
derived from milk and
spreads040510
04052090
040590
II Skimmed-milk powder 040210
III Cheese and curd 0406
IV Other milk products 0401
040221
040229
040291
040299
04031011 to 0403 1039
04039011 to 0403 9069
040490
23091015
23091019
23091039
23091059
23091070
23099035
23099039
23099049
23099059
230990701999R0174 — EN — 30.06.2002 — 016.001 — 19
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ANNEX II
ProductgroupssetbyArticle4(3)
Group NoMilk product code
(nomenclature for export refunds)
1 040110109000
040120119100040120119500040120919000040130119400040130119700040130319100040130319400040130319700040130919100
040130919500
2 040110909000
040120199100040120199500040120999000040130199700040130399100040130399400040130399700
040130999100
040130999500
3 040221119200
040221119300040221119500040221119900040221919100040221919200040221919350
040221919500
4 040221179000
040221199300040221199500040221199900040221999100040221999200040221999300
040221999400
040221999500040221999600040221999700040221999900
5 040229159200
040229159300040229159500040229159900
040229919000
6 040229199300
0402291995000402291999000402299991000402299995001999R0174 — EN — 30.06.2002 — 016.001 — 20
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Group NoMilk product code
(nomenclature for export refunds)
8 040291119370
040291319300
040291519000
10 040291199370
040291399300040291599000040291999000
11 040299319300
040299319500
12 040299119350
040299319150
040299319300040299319500040299919000
14 040299199350
040299399150
040299399300
040299399500
►
C20402 99999000 ◄
17 040390119000
040390139200040390139300
040390139500
040390139900040390199000
18 040390339400
040390339900
19 040390519100
040390599170040390599310040390599340040390599370040390599510
21 040490219120
040490219160040490239120040490239130040490239140040490239150
22 040490819100
0404908391100404908391300404908391500404908391701999R0174 — EN — 30.06.2002 — 016.001 — 21
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Group NoMilk product code
(nomenclature for export refunds)
23 040510119500
040510119700040510199500040510199700040510309100040510309300
040510309700
0405105093000405105095000405105097000405109090000405209095000405209097000405901090000405909090001999R0174 — EN — 30.06.2002 — 016.001 — 22
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ANNEX IV
1999R0174 — EN — 30.06.2002 — 016.001 — 23
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ANNEX V
1999R0174 — EN — 30.06.2002 — 016.001 — 24
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1999R0174 — EN — 30.06.2002 — 016.001 — 25
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ANNEX VI
1999R0174 — EN — 30.06.2002 — 016.001 — 26
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ANNEX VII
1999R0174 — EN — 30.06.2002 — 016.001 — 27
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1999R0174 — EN — 30.06.2002 — 016.001 — 28