1999R0174 — EN — 07.10.2000 — 004.001 — 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:
OfficialJournal
No page date
►M1 Commission Regulation (EC) No 1596/1999 of 20 July 1999 L 188 39 21.7.1999
►M2 Commission Regulation (EC) No 1961/2000 of 15 September 2000 L 234 10 16.9.2000
►M3 Commission Regulation (EC) No 1998/2000 of 21 September 2000 L 238 28 22.9.2000
►M4 Commission Regulation (EC) No 2114/2000 of 5 October 2000 L 252 6 6.10.2000
Corrected by:
►C1 Corrigendum, OJ L 21, 28.1.1999, p. 28 (174/1999)
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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 CouncilRegul ation (EEC) No 804/68 of 27 June 1968
on the common organisation of the market in milk and milk products (1),
as last amended by Regulation (EC) No 1587/96 (2), and in particular
Articles 13(3), 16a(1) and 17(9) and (14) thereof,
1. Whereas Commission Regulation (EC) No 1466/95 of 27 June
1995 laying down special detailed rules of application for exportrefunds on milk and milk products (
3), as last amended by
Regulation (EC) No 2184/98 (4), has been substantially amended
severaltimes; whereas, since further amendments are to be made,
it should be recast in the interests of clarity and efficiency;
2. Whereas under the Agriculture Agreement concluded during theUruguay Round of the GATT trade negotiations (
5) (hereinafter
referred to as the ‘Agriculture Agreement’), export refunds on
agricultural products, including milk products, are limited within
each 12-month period starting from 1 July 1995 to a maximumquantity and a maximum value; whereas, in order to ensurecompliance with those limits, the issue of export licences shouldbe monitored; whereas procedures must also be adopted for
allocating the quantities which may be exported with a refund;
3. Whereas Regulation (EEC) No 804/68 lays down general rules for
granting of export refunds in the milk and milk products sector, inorder, in particular, to permit the monitoring of the value andquantity limits for refunds; whereas detailed rules for the
application of those arrangements should be laid down;
4. Whereas, by way of derogation from Commission Regulation
(EEC) No 3665/87 of 27 November 1987 laying down commondetailed rules for the application of the system of export refundson agricultural products (
6), as last amended by Regulation (EC)
No 2334/98 (7), cases where a refund may be granted without
presentation of an export licence should be defined and themaximum time that products may remain under customs controlshould be specified;
5. Whereas special provisions should be adopted for the milk andmilk products sector, in particular with regard to licences, by wayof derogation from Commission Regulation (EEC) No 3719/88 of16 November 1988 laying down common detailed rules for theapplication of the system of import and export licences andadvance fixing certificates for agricultural products (
8), as last
amended by Regulation (EC) No 1044/98 (9); whereas, in
addition, the tolerance permitted by that Regulation as regardsthe quantity of goods exported compared with the quantityindicated on the licence should be reduced and, in order to ensureeffective controls on limits, there should be no refunds paid onquantities exceeding what is indicated on the licence; whereas the1999R0174 — EN — 07.10.2000 — 004.001 — 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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securities to be lodged when licence applications are submitted
should be sufficient to prevent speculative applications;
6. Whereas the term of validity of export licences should be fixed;whereas that term should vary according to the productsconcerned, with a shorter term for products where there is ahigher risk of speculation;
7. Whereas, in order to ensure accurate checking of products
exported and to minimise the risk of speculation, the possibility of
changing the product for which a licence has been issued shouldbe restricted;
8. Whereas Article 2a(2) of Regulation (EEC) No 3665/87 lays
down rules for the use of export licences with advance fixing of
the refund for the exportation of products with a 12-digit codeother than that shown in Section 16 of the licence; whereas thisprovision becomes applicable in a specific sector only if productcategories as referred to in Article 13a of Regulation (EEC) No3719/88 and product groups as referred to in point (b) of the first
subparagraph of Article 2a(2) of Regulation (EEC) No 3665/87
have been defined;
9. Whereas for the milk and milk product sector, product categoriesare already defined with reference to the categories provided forin the Agriculture Agreement; whereas in the interests of sound
management this use of categories should be retained and Article
2a(2) of Regulation (EEC) No 3665/87 applied on the basis onlyof defined product groups;
10. Whereas in the milk sector refund rates are highly differentiated,notably according to fat content; whereas, so that this arrange-
ment will not be called into question while at the same time the
proportionality objective of Article 2a(2) of Regulation (EEC) No3665/87 is respected, the product groups should be narrowlydefined and for certain products the validity of export licencesshould extend to products that in fat content are immediately
adjacent in CN code to the product for which a refund has been
fixed in advance;
11. Whereas, to enable traders to participate in invitations to tenderopened by third countries without affecting the restrictions asregards volume, a system of provisional licences should be
introduced giving successful tenderers the right to a full licence;
12. Whereas, in order to ensure effective monitoring of licences
issued, which depends on the notification of information to theCommission by the Member States, a waiting time should beprovided for before licences are issued; whereas, in order to
ensure the smooth operation of the arrangements and, in
particular, an equitable allocation of the quantities availablewithin the limits laid down by the Agriculture Agreement, variousmanagement measures should be laid down and, in particular,provision should be made for the issue of licences to be
suspended and for a reduction coefficient to be applied to the
quantities applied for;
13. Whereas the refund rate should be determined for productseligible for export refunds in the context of food-aid operations;
14. Whereas, to ensure that licences are correctly used, for certainexports with refunds the country of destination should be definedas a compulsory destination as referred to in Article 21(1) ofRegulation (EEC) No 3665/87;
15. Whereas experience has shown that the number of applications
for export licences for particular cheese varies according to
destination; whereas, in order that specialmeasures can beapplied according to the destination indicated on licenceapplications, destination zones should be fixed and the destinationzone indicated on export licences made obligatory for productsfalling within CN code 0406;1999R0174 — EN — 07.10.2000 — 004.001 — 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 % byweight of whole product is representative of the sucrose contentof 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 specialrul es are needed to ensure
that this specific measure operates properly and can be effectivelychecked;
18. Whereas, under the Agreement concluded between the EuropeanCommunity and Canada approved by CouncilDecision 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 thequantities 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 on exports 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, it hasbeen agreed to apply a set of measures providing in particular fora reduction in the customs duties on certain Community cheesesimported into Switzerland; whereas the Community origin of such
products should be guaranteed; whereas, to that end, export
licences should be compulsory for all cheese exported under thesearrangements, including cheese on which export refunds are notpayable; whereas licences should be issued subject to presentationby 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 additionalquota arising from the Agricul ture Agree-ment; whereas this would allow the Community to maximise thevalue of the quota; whereas a procedure should therefore be laiddown for designating importers on the basis of the allocation of
export licences for the products concerned;
21). Whereas the measures provided for in this Regulation are 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 an export refund is requestedshall be subject to the presentation of an export licence, except in thecases referred to in Article 2. The refund to be paid shall be the rate1999R0174 — EN — 07.10.2000 — 004.001 — 4
(1) OJ L 334, 30. 12. 1995, p. 25.
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valid on the day the application for the export licence or, where relevant,
the provisionall icence, is submitted.
2. Section 7 of licence applications and licences shall show the
country of destination and the code number of the country or territory ofdestination, as indicated in the country nomenclature for the externaltrade statistics of the Community and statistics of trade between Member
States, drawn up by the Commission on the basis of Article 21(1) of
CouncilRegul ation (EC) No 1172/95 (*).
3. Licence applications which, within the meaning of Article 15 of
Regulation (EEC) No 3719/88, were lodged on a 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.
For the purposes of the fourth indent of Article 5(1) of Regulation (EC)
No 1291/2000, where severalseparate codes in the refunds nomen-clature as laid down by Commission Regulation (EEC) No 3846/87 (
1)o r
in the combined nomenclature are entered in an export declaration, the
particulars relating to each code shall be deemed to constitute a separate
declaration.
Article 3
No refund shall be granted on exports of cheese where the free-at-
frontier price prior to application of the refund in the 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 in
Article 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 when the
customs formalities are conducted and shall accept, where applicable,
any checks by those authorities of the accounts within the maeaning ofCouncilRegul ation (EEC) No 4045/89 (
2).
However, the first paragraph shall not apply to cheese falling within
code 0406 90 33 9919 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 application of Article 5(3) of this
Regulation, the product groups within the meaning of point (b) of thefirst subparagraph of Article 2a(2) of Regulation (EEC) No 3665/87shall be those set out in Annex II.1999R0174 — EN — 07.10.2000 — 004.001 — 5
(*) OJ L 118, 25.5.1995, p. 10.
(1) OJ L 366, 24. 12. 1987, p. 1.
(2) OJ L 388, 30.12.1989, p. 10.▼M1
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Article 5
1. Section 16 of licence applications and licences shall show the 12-
digit product code of the nomenclature for refunds. Licences shall be
valid for that product alone except in the cases specified in paragraphs 2and 3.
2. For products falling within CN codes 0401, 0402, 0403, 0404,
0405 and 2309, licence holders may on request obtain a change of the
code in Section 16 of the export licence to another code in the samecategory, as referred to in Annex I, where the refund is identical. Suchrequests must be lodged before completion of the formalities referred toin Article 3 or 25 of Regulation (EEC) No 3665/87.
3. By way of derogation from point (b) of the first subparagraph of
Article 2a(2) of Regulation (EEC) No 3665/87, export licences withadvance fixing of the refund shall also be valid for exportation of aproduct with a 12-digit code other than that entered in Section 16 of thelicence if the two products are adjacent in one of the groups laid down inAnnex II or both are in group 23.
4. In cases referred to in paragraph 3, refunds shall be calculated in
accordance with the second subparagraph of Article 2a(2) of Regulation(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 in Article 1 of Regulation (EEC) No 804/68;
(e) the date by which the obligations arising from invitations to tender
pursuant to Article 8(1) must be fulfilled and by the end of theeighth month following issue of the full licence referred to in Article8(3) at the latest.
Article 7
By way of derogation from Articles 27(5) and 28(5) of Regulation
(EEC) No 3665/87, the period during which the products referred to inArticle 1 of Regulation (EEC) No 804/68 may remain covered by thearrangements provided for in CouncilRegul ation (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 fallingwithin CN code 0406, traders may apply for a provisional export licencefor the quantity covered by their tender subject to the lodging of asecurity. The security for provisional licences shall be equal to 75 % ofthe rate fixed in accordance with Article 9.1999R0174 — EN — 07.10.2000 — 004.001 — 6
(1) OJ L 62, 7. 3. 1980, p. 5.▼M4
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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
specialmeasures referred to in Articl e 10(3) have not been adopted in
the meantime.
3. By way of derogation from Article 44(5) of Regulation (EEC) No
3719/88, the period for submitting the information referred to in thatparagraph shall be 60 days. Before the end of that period, traders shallapply for the full export licence, which shall be issued on presentation ofproof that they have been awarded a contract.
On presentation of proof that the tender has been rejected or that the
quantity awarded by the contract is less than indicated on the provisional
licence, the whole or part of the security shall be released as appropriate.
4. Licence applications referred to in paragraphs 2 and 3 shall be
made in accordance with Article 13 of Regulation (EEC) No 3719/88.
5. The provisions of this chapter, with the exception of Article 10,
shall apply to full licences.
Article 9
The security referred to in Article 14(2) of Regulation (EEC) No 3719/
88 shall be equal to the percentage of the refund fixed for each product
code applicable on the day the export licence application is lodged, asfollows:
(a) 5 % 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) 20 % for other products.
The amount of the refund referred to in the first paragraph shall be that
calculated for the total quantity of the product concerned except for milkproducts containing added sugar.
For milk products containing added sugar, the amount of the refund
referred to in the first paragraph shall be equal to the total quantity of thewhole product concerned, multiplied by the refund rate applicable perkilogram of milk product.
Article 10
1. Export licences shall be issued on the fifth working day following
the day on which applications are submitted, provided that the quantitiesfor which licences have been applied for have been communicated in
accordance with Article 9(1) of Commission Regulation (EC) No 1498/
1999 (
1) and that the specialmeasures referred to in points (a) and (b) of
the first subparagraph of paragraph 3 have not been adopted in themeantime.
2. A decision may be taken to adopt one or more of the special
measures provided for in paragraph 3 where the issue of the licences:
(a) appears likely to result in an overrun in the budget resources
available or in the exhaustion of the maximum quantities which maybe exported with refund during the 12-month period in question or in
a 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;1999R0174 — EN — 07.10.2000 — 004.001 — 7
(1) OJ L 174, 9.7.1999, p. 3.▼M4
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or
(c) would lead to a distortion of competition between traders.
For the purposes of the first subparagraph, account shall be taken, as
regards the product in question, of the seasonalnature of trade, the
market situation and in particular the trend in prices on the market and
the export conditions resulting therefrom.
3. In the cases referred to in paragraph 2, the Commission may
decide, for the product or products in question:
(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, in accordance with the procedure provided for in Article
42 of Regulation (EC) No 1255/1999, the Commission may 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 byinvitation to tender for products falling within CN codes 0402 10 19,0405 10 90, 0405 90 10, 0405 90 90 and 0405 10 19. The relevant
licences 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 exhaustion of the maximum quantitieswhich may be exported with refund during the 12-month period inquestion, the Commission may decide, in accordance with the procedureprovided for in Article 30 of Regulation (EEC) No 804/68, to allocatethose 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.
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 derogation from the provisions of Articles 8(5) and
33(2) of Regulation (EEC) No 3719/88 on tolerances for quantitiesexported, the following rates shall apply:
(a) the rate provided for in Article 8(5) shall be 2 %;
(b) the rate provided for in Article 33(2), first and second subpara-
graphs, shall be 98 %;
(c) the rate provided for in Article 33(2), third subparagraph, shall be
2% .
Article 44(9)(c) of Regulation (EEC) No 3719/88 shall not apply.
Article 13
1. Article 10 shall not apply to the issuing of export licences for food-
aid supplies in accordance with Article 10(4) of the Agriculture
Agreement.
2. The rate of refund applicable to national food-aid supplies shall be
that applying on the day the Member State opens the invitation to tenderfor the supply of food aid.1999R0174 — EN — 07.10.2000 — 004.001 — 8
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Article 14
The country of destination referred to in Article 1(2) shall be a
compulsory destination for the purposes of Article 21(1) of Regulation(EEC) No 3665/87 for licences issued pursuant to Article 8 of thisRegulation.
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 applicationsand 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 055, 060, 070 and 091 to 096 (inclusive),
— Zone II: destination codes 072 to 083 (inclusive),
— Zone III: destination code 400,— Zone IV: 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 been produced from sugar beet or cane harvested in theCommunity.
2. The component referred to in paragraph 1(a) shall be calculated by
multiplying the basic amount of the refund by the milk product contentof the whole product.
The basic amount referred to in the first subparagraph shall be the 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 maximumof 43 %, by the basic amount of the refund applicable on the day thelicence application is submitted for the products listed in Article 1(1)(d)
of CouncilRegul ation (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 to inthe second subparagraph of paragraph 2 is zero.1999R0174 — EN — 07.10.2000 — 004.001 — 9
(1) OJ L 177, 1. 7. 1981, p. 4.▼M2
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4. For the purposes of paragraph 1(b), sucrose shall be treated as
sucrose produced from beet or cane harvested in the Community if it hasbeen:
(a) imported into the Community under Protocol8 on sugar annexed to
the ACP-EEC Lomé Convention (
1), or the Agreement on cane sugar
between the European Economic Community and the Republic ofIndia (
2);
(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 thirdindent of Article 8(3) of Regulation (EEC) No 3665/87 shall be
accompanied by the authorisation granted by the competent authorities
to 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 the quality
and quantity of products referred to in that paragraph for which a refundhas been applied for and to apply the provisions on entitlement to therefund.
CHAPTERII
Specificarrangements
Article 18
1. An export licence shall be required for all exports of cheese to
Canada under the quota referred to in the Agreement concluded betweenthe European Community and Canada.
2. Licence applications and licences shall show:
(a) in Section 7, the words ‘CANADA — 404’;
(b) in Section 15, the six-digit description of the goods in accordance
with the Combined Nomenclature for products falling within CNcodes 0406 10, 0406 20, 0406 30 and 0406 40 and the eight-digitdescription for products falling within CN code 0406 90. Section 15
of applications and licences may contain no more than six products
thus described;
(c) in Section 16, the eight-figure CN code and the quantity in
kilograms for each of the products referred to in Section 15. The
licence shall be valid only for the products and quantities sodesignated;
(d) in Sections 17 and 18, the totalquantity of products referred to in
Section 16;
(e) in Section 20, the following words:
‘Cheeses for direct export to Canada. Article 18 of Regulation (EC)
No 174/1999. Quota for ... (year)’
or, as the case may be,
‘Cheeses for export directly/via New York to Canada. Article 18 of
Regulation (EC) No 174/1999. Quota for ... (year)’.
Where cheese is transported to Canada via European third countries,
such countries must be indicated instead of, or with, a reference toNew York;
(f) in Section 22, the words ‘without export refund’.1999R0174 — EN — 07.10.2000 — 004.001 — 10
(1) OJ L 229, 17. 8. 1991, p. 3.
(2) OJ L 190, 23. 7. 1975, p. 36.
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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 application has been produced entirely within the
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 applicable,
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 attribution
and endorsement in accordance with Article 22 of Regulation (EEC) No3719/88 may be used for one export declaration only. Licences shall beexhausted once the export declaration has been presented.
Titular holders of export licences shall ensure that a certified copy of the
licence is presented to the competent Canadian authority when the
import licence is applied for.
7. By way of derogation from 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, inaccordance with Annex IV, of the number of licences issued and thequantity of cheese concerned.
9. Chapter I shall not apply.
Article 19
1. An export licence shall be required for exports to Switzerland of
the cheeses listed in Annex III, which are eligible for an exemption fromor a reduction in customs duties on import into that country.
2. Section 20 of licence applications and licences shall contain the
words ‘Article 19 of Regulation (EC) No 174/1999’.
Licences issued under this Article shall be valid only for the exports
referred to in paragraph 1.
3. Licence applications shall be admissible only where applicants:
(a) declare in writing that all material falling within Chapter 4 of the
Combined Nomenclature and used in the manufacture of productscovered by their application has been produced entirely within theCommunity;
(b) undertake in writing to provide, at the request of the competent
authorities, any further substantiation which the latter considernecessary for the issuing of licences and to accept, where applicable,any checks by those authorities of the book-keeping and manu-facturing conditions of the products concerned.
4. Chapter I shall apply to exports covered by refunds applications.1999R0174 — EN — 07.10.2000 — 004.001 — 11
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5. In the case of exports not covered by refund applications, Section
22 of licence applications and licences shall contain the words ‘Withoutexport refund’.
Licences shall be issued as soon as possible after applications are
submitted.
Licences shall be valid from their date of issue within the meaning of
Article 21(1) of Regulation (EEC) No 3719/88 until the following 30June.
However, licences may be issued from 20 June and shall be valid from 1
July until 30 June of the following year provided the words ‘quota
for…(following year)’ appear in Section 20 of licences applications andlicences.
6. With the exception of Article 5(1), the provisions of Chapter I shall
not apply to the exports referred to in paragraph 5.
For cheeses not included in the nomenclature for refund however, the
eight-figure code of the Combined Nomenclature shall be entered in
Section 16 of licence applications and licences.
7. Certified copies of licences shall be issued to applicants on request.
Article 20
1. In accordance with the procedure provided for in Article 30 of
Regulation (EEC) No 804/68, the Commission may decide that exportlicences for products falling within CN code 0406 for export to the
United States of America as part of the additionalquota under the
Agriculture Agreement and the tariff quotas originally resulting from theTokyo Round and granted to Austria, Finland and Sweden by the UnitedStates in Uruguay Round list XX shall be issued in accordance withparagraphs 2 to 11.
2. Exports of cheese to the United States of America under the quotas
referred to in paragraph 1 shall be subject to presentation of an exportlicence.
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 security
equalto 50 % of the rate fixed in accordance with Articl e 9, with a
minimum of EUR 9 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 AdditionalNotes 16 to 23 and 25 in Chapter 4 of
the Harmonized Tariff Schedule of the United States of America
(most recent version);
(b) the product names in accordance with the Harmonized Tariff
Schedule of the United States of America (most recent version);
(c) the quantity of products for which provisionall icences are being
sought which they have exported to the United States during thepreceding three calendar years. To this end, the trader whose nameappears on the relevant export declaration shall be regarded as the
exporter;
(d) the name and address of the importer in the United States designated
by the applicant;
(e) whether the importer is a subsidiary of the applicant.
In addition, applications shall be accompanied by a certificate from the
designated importer stating that he is eligible under the rules in force inthe United States on the issue of import licences for the productsreferred to in paragraph 1 as part of the quota.1999R0174 — EN — 07.10.2000 — 004.001 — 12
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3. Where applications for provisional licences are submitted in
respect of a quantity of products in excess of one of the quotas referredto in paragraph 1 for the year in question, the Commission may, in
accordance 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;
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 Commission
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 1for the year concerned, the Commission may allocate the remainingquantities to applicants in proportion to the quantities applied for.
6. Section 20 of provisionall icences as referred to in the first
subparagraph of paragraph 2 shall include the following:
‘Provisionalexport l icence referred to in the first subparagraph of
Article 20(2) of Regulation (EC) No 174/1999: not valid forexports’.
7. The names of importers designated by traders to whom provisional
licences are issued shall be forwarded to the competent United States
authorities.
8. In the case where an import licence for the quantities concerned is
not allocated to the importer designated by an operator, in circumstanceswhich do not cast doubt on the sincerity of the attestation referred to inthe third subparagraph of paragraph 2, the trader may be authorised bythe Member State to designate another importer provided that the latter
appears on the list communicated to the competent authorities of the
United States of America, in accordance with paragraph 7. The MemberState shall inform the Commission as soon as possible of the change ofdesignated importer and the Commission shall notify the change to thecompetent authorities of the United States.
9. Securities shall be released in whole or in part for rejected
applications or for quantities in excess of those allocated.
10. Before the end of the year for which provisionall icences are
issued, the trader shall apply for the full licence, even in the case of partquantities, which shall be issued forthwith. The following words shall beentered 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’.
The full licences issued shall be valid only for exports as referred to in
paragraph 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 of validityof licences as provided for in Article 6 may not extend beyond the endof the year concerned.1999R0174 — EN — 07.10.2000 — 004.001 — 13
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Article 20a
1. The following provisions shall apply to exports to the Dominican
Republic of milk powder imported into that country at a reduced rate ofduty under the quota, for 12 month periods commencing on 1 July, asreferred to in the Memorandum of Understanding concluded between the
European Community and the Dominican Republic and approved by
CouncilDecision 98/486/EC (
1).
2. Exports as referred to in paragraph 1 shall be subject to the
presentation to the competent authorities of the Dominican Republic of acertified copy of the export licence issued in accordance with thisArticle and a duly endorsed copy of the export declaration for eachconsignment.
3. When export licences are issued, priority shall be given to milk
powder falling within the following product codes from the nomen-clature of export refunds:
— 0402 10 19 9000,
— 0402 21 11 9900,
— 0402 21 19 9900,
— 0402 21 91 9200,
— 0402 21 99 9200.
Products covered by applications must have been produced entirely
within the European Community. At the request of the competent
authorities, applicants shall supply any further substantiation which theauthorities consider necessary for the issuing of licences and shallaccept, where applicable, any checks by those authorities of thebookkeeping and manufacturing conditions of the products concerned.
4. The quota referred to in paragraph 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, equalto 80 % or 17 920 t, shal lbe distributed among
Community exporters who can prove that they have exported
products as referred to in paragraph 3 to the Dominican Republic
during each of the three calendar years prior to the period forsubmission of applications;
(b) the second part, equalto 20 % or 4 480 tonnes, shal lbe reserved for
applicants other than those referred to at (a) who can prove, at thetime they submit their application, that they have been engaged for
at least 12 months in trade with third countries in the milk products
listed in Chapter 4 of the tariff and statistical nomenclature and thecommon customs tariff and are registered in a Member State forVAT purposes.
5. Applications for export licences may not cover more, per
applicant, than:
— for the part referred to in paragraph 4(a), a quantity equalto 110 %
of the totalquantity of products referred to in paragraph 3 exported
during one of the three calendar years prior to the period for
submission of applications,
— for the part referred to in paragraph 4(b), a totalmaximum quantity
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 — 07.10.2000 — 004.001 — 14
(1) OJ L 218, 6.8.1998, p. 45.
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(b) Export licence applications shall be admissible only where
applicants, at the time they present their applications:
— lodge a security calculated in accordance with Article 9 on the
basis of the refund rate referred to in paragraph 8,
— for the part referred to in paragraph 4(a), indicate the quantity
of products referred to in paragraph 3 that they have exportedto the Dominican Republic during one of the three calendaryears prior to the period referred to in paragraph 4(a) and areable to prove this to the satisfaction of the competentauthority of the Member State concerned. To this end the
trader whose name appears on the relevant export declaration
shall be regarded as the exporter,
— for the part referred to in paragraph 4(b), are able to prove to
the satisfaction of the competent authority of the MemberState 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 following year.
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 theperiod 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 Commission in accordance with Article 17(3) of
Regulation (EEC) No 804/68 on the first day of the period referred to inparagraph 7.
9. Licence applications and licences shall contain:
(a) in section 7, the words ‘Dominican Republic, 456’;
(b) in sections 17 and 18 of the application, the quantity to which the
application relates;
(c) in section 20 of the application:
— the words ‘Article 20a of Regulation (EC) No 174/1999’
— the words ‘tariff quota for… (year)’.
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 the
Commission, in accordance with the modelin Annex V, for each of the
two parts of the quota and for each product code of the nomenclature forrefunds, of the quantities covered by licence applications or, whereapplicable, that no applications have been lodged.
All notifications, including notifications of nil applications, shall be
made by telex or fax on the working 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 the
security forfeited.
11. The Commission shall 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, theCommission shall fix allocation coefficients. If application of theallocation coefficient results in a quantity per applicant of less than 20 t,1999R0174 — EN — 07.10.2000 — 004.001 — 15
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applicants may withdraw their applications. In such cases, they shall
notify the competent authority within three working days of publicationof the Commission's decision. The security shall be released immedi-
ately. The competent authority shall notify the Commission, within eight
working days of publication of the decision, of the quantities for whichapplications have been withdrawn and for which the security has beenreleased.
Where the total quantity covered by licence applications is less than the
quantity available for the period in question, the Commission shall
allocate the quantity remaining, on the basis of objective criteria takingaccount in particular of licence applications for all the products fallingwithin CN codes 0402 10, 0402 21 and 0402 29.
12. Licences shall be issued at the request of the exporter, not earlier
than 1 July and not later than 15 February the following year. They shall
be issued only to exporters whose licence applications were notified inaccordance 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 quantities
for which no licences were issued.
13. Notwithstanding Article 6, export licences shall be valid from
their date of issue within the meaning of Article 21(2) of Regulation(EEC) No 3719/88 to 30 June thereafter.
14. The security shall be released only on presentation of the proof
referred to in Article 33(4) of Regulation (EEC) No 3719/88, or inrespect of quantities covered by applications for which no licence couldbe issued.
Notwithstanding the fifth subparagraph of Article 33(2) of Regulation
(EEC) No 3719/88, the security relating to the quantity not exported
shall 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 with AnnexVII, broken down by product code of the nomenclature for refunds:
— 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. Chapter I shall apply, with the exception of Articles 6 and 10.
CHAPTERIII
Finalprovisions
Article 21
Regulations (EEC) No 3665/87 and (EEC) No 3719/88 shall apply save
as otherwise provided in this Regulation.
Article 22
Regulation (EC) No 1466/95 is hereby repealed.
References to the repealed Regulation shall be construed as references to
this Regulation.
Regulation (EC) No 1466/95 shall continue to apply to licences issued
against applications submitted before the entry into force of the presentRegulation.1999R0174 — EN — 07.10.2000 — 004.001 — 16
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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 in
all Member States.1999R0174 — EN — 07.10.2000 — 004.001 — 17
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ANNEXI
Productcategories laiddowninArticle4(1)
Number Description CN code
I Butter, other fats and oils
derived from milk and
spreads0405 10
0405 20 90
0405 90
II Skimmed-milk powder 0402 10
III Cheese and curd 0406
IV Other milk products 0401
0402 21
0402 29
0402 91
0402 99
0403 10 11 to 0403 10 39
0403 90 11 to 0403 90 69
0404 90
2309 10 15
2309 10 19
2309 10 39
2309 10 59
2309 10 70
2309 90 35
2309 90 39
2309 90 49
2309 90 59
2309 90 701999R0174 — EN — 07.10.2000 — 004.001 — 18
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ANNEXII
ProductgroupssetbyArticle4(3)
Group No Milk product code (nomenclature for export refunds)
1 0401 10 10 9000
0401 20 11 9100
0401 20 11 9500
0401 20 91 9100
0401 20 91 9500
0401 30 11 9100
0401 30 11 9400
0401 30 11 9700
0401 30 31 9100
0401 30 31 9400
0401 30 31 9700
0401 30 91 9100
0401 30 91 9400
0401 30 91 9700
2 0401 10 90 9000
0401 20 19 9100
0401 20 19 9500
0401 20 99 9100
0401 20 99 9500
0401 30 19 9100
0401 30 19 9400
0401 30 19 9700
0401 30 39 9100
0401 30 39 9400
0401 30 39 9700
0401 30 99 9100
0401 30 99 9400
0401 30 99 9700
3 0402 21 11 9200
0402 21 11 9300
0402 21 11 9500
0402 21 11 9900
0402 21 91 9100
0402 21 91 9200
0402 21 91 9300
0402 21 91 9400
0402 21 91 9500
0402 21 91 9600
0402 21 91 9700
0402 21 91 9900
4 0402 21 17 9000
0402 21 19 9300
0402 21 19 9500
0402 21 19 9900
0402 21 99 9100
0402 21 99 9200
0402 21 99 9300
0402 21 99 9400
0402 21 99 9500
0402 21 99 9600
0402 21 99 9700
0402 21 99 9900
5 0402 29 15 9200
0402 29 15 9300
0402 29 15 9500
0402 29 15 9900
0402 29 91 9100
0402 29 91 9500
6 0402 29 19 9200
0402 29 19 9300
0402 29 19 9500
0402 29 19 9900
0402 29 99 9100
0402 29 99 95001999R0174 — EN — 07.10.2000 — 004.001 — 19
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Group No Milk product code (nomenclature for export refunds)
7 0402 91 11 9110
0402 91 11 9120
0402 91 31 9100
0402 91 51 9000
0402 91 91 9000
8 0402 91 11 9310
0402 91 11 9350
0402 91 11 9370
0402 91 31 9300
0402 91 51 9000
0402 91 91 9000
9 0402 91 19 9110
0402 91 19 9120
0402 91 39 9100
0402 91 59 9000
0402 91 99 9000
10 0402 91 19 9310
0402 91 19 9350
0402 91 19 9370
0402 91 39 9300
0402 91 59 9000
0402 91 99 9000
11 0402 99 11 9110
0402 99 11 9130
0402 99 11 9150
0402 99 31 9110
0402 99 31 9300
0402 99 31 9500
0402 99 91 9000
12 0402 99 11 9310
0402 99 11 9330
0402 99 11 9350
0402 99 31 9150
0402 99 31 9300
0402 99 31 9500
0402 99 91 9000
13 0402 99 19 9110
0402 99 19 9130
0402 99 19 9150
0402 99 39 9110
0402 99 39 9300
0402 99 39 9500
0402 99 99 9000
14 0402 99 19 9310
0402 99 19 9330
0402 99 19 9350
0402 99 39 9150
0402 99 39 9300
0402 99 39 9500
0402 99 99 9000
15 0403 10 11 9400
0403 10 11 9800
0403 10 13 9800
0403 10 19 9800
16 0403 10 31 9400
0403 10 31 9800
0403 10 33 9800
0403 10 39 98001999R0174 — EN — 07.10.2000 — 004.001 — 20
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Group No Milk product code (nomenclature for export refunds)
17 0403 90 11 9000
0403 90 13 9200
0403 90 13 9300
0403 90 13 9500
0403 90 13 9900
0403 90 19 9000
18 0403 90 31 9000
0403 90 33 9200
0403 90 33 9300
0403 90 33 9500
0403 90 33 9900
0403 90 39 9000
19 0403 90 51 9100
0403 90 51 9300
0403 90 53 9000
0403 90 59 9110
0403 90 59 9140
0403 90 59 9170
0403 90 59 9310
0403 90 59 9340
0403 90 59 9370
0403 90 59 9510
0403 90 59 9540
0403 90 59 9570
20 0403 90 61 9100
0403 90 61 9300
0403 90 63 9000
0403 90 69 9000
21 0404 90 21 9100
0404 90 23 9120
0404 90 23 91300404 90 23 9140
0404 90 23 9150
22 0404 90 81 9100
0404 90 83 9110
0404 90 83 9130
0404 90 83 9150
0404 90 83 9170
23 0405 10 11 9500
0405 10 11 97000405 10 19 9500
0405 10 19 9700
0405 10 30 9100
0405 10 30 9300
0405 10 30 9500
0405 10 30 9700
0405 10 50 9100
0405 10 50 9300
0405 10 50 9500
0405 10 50 9700
0405 10 90 9000
0405 20 90 9500
0405 20 90 9700
0405 90 10 9000
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M10405 90 90 9000 ◄1999R0174 — EN — 07.10.2000 — 004.001 — 21
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ANNEXIII
Switzerland
Productsreferred toinArticle 19(1)
CN codeDescription
(Export refund nomenclature)
0406 Cheese and curd:
ex 0406 10 20 ----- Ricotta, salted
0406 20 - Grated or powdered cheese, of all kinds
0406 30 - Processed cheese, not grated or powdered
0406 40 - Blue-veined cheese
ex 0406 90 - Other cheese:
0406 90 23 - - - Edam
0406 90 25 - - - Tilsit
0406 90 27 - - - Butterkäse
0406 90 61 ------- Grana Padano, Parmigiano Reggiano
0406 90 63 ------- Fiore Sardo, Pecorino
0406 90 69 ------- Other
0406 90 73 ------- Provolone
ex 0406 90 75 ------- Asiago, Caciocavallo, Montasio
0406 90 76 ------- Danbo, Fontal, Fontina, Fynbo, Havarti, Maribo,
Samsø
0406 90 78 ------- Gouda
ex 0406 90 79 ------- Esrom, Italico, Saint-Nectaire, Saint-Paulin
ex 0406 90 87 - - - - - - - - - - - - - Idiazabal, Manchego, Roncal,
manufactured exclusively from sheep's milk
ex 0406 90 - Elbo, Galantine, Molbo, Mimolette, Tyboex 0406 90 - Other cheese, of a fat content of 30 % or more by weight in
the dry matter and of a water content by weight in the non-
fatty matter exceeding 52 % but not exceeding 67 %1999R0174 — EN — 07.10.2000 — 004.001 — 22
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ANNEXIV
1999R0174 — EN — 07.10.2000 — 004.001 — 23
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ANNEXV
1999R0174 — EN — 07.10.2000 — 004.001 — 24
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1999R0174 — EN — 07.10.2000 — 004.001 — 25
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ANNEXVI
1999R0174 — EN — 07.10.2000 — 004.001 — 26
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ANNEXVII
1999R0174 — EN — 07.10.2000 — 004.001 — 27
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1999R0174 — EN — 07.10.2000 — 004.001 — 28