1999R0174 — EN — 24.10.2004 — 024.001

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

Amended by:





Corrected by:









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COMMISSION REGULATION (EC) No 174/1999

of 26 January 1999

laying down special detailed rules for the application of Council Regulation (EEC) No 804/68 as regards export licences and export refunds in the case of milk and milk products







THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (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 export refunds on milk and milk products ( 3 ), as last amended by Regulation (EC) No 2184/98 ( 4 ), has been substantially amended several times; 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 the Uruguay 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 maximum quantity and a maximum value; whereas, in order to ensure compliance with those limits, the issue of export licences should be 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, in order, in particular, to permit the monitoring 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 derogation from Commission Regulation (EEC) No 3665/87 of 27 November 1987 laying down common detailed rules for the application of the system of export refunds on 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 the maximum time that products may remain under customs control should be specified; 5. Whereas special provisions should be adopted for the milk and milk products sector, in particular with regard to licences, by way of derogation from Commission Regulation (EEC) No 3719/88 of 16 November 1988 laying down common detailed rules for the application of the system of import and export licences 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 Regulation as regards the quantity of goods exported compared with the quantity indicated on the licence should be reduced and, in order to ensure effective controls on limits, there should be no refunds paid on quantities exceeding what is indicated on the licence; whereas the 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 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 issued should be 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 code other than that shown in Section 16 of the licence; whereas this provision becomes applicable in a specific sector only if product categories as referred to in Article 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 been defined; 9. Whereas for the milk and milk product sector, product categories are already defined with reference to the categories provided for in 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 only of defined product groups; 10. Whereas in the milk sector refund rates are highly differentiated, notably according to fat content; whereas, so that this arrangement will not be called into question while at the same time the proportionality objective of Article 2a(2) of Regulation (EEC) No 3665/87 is respected, the product groups should be narrowly defined and for certain products the validity of export licences should 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 tender opened by third countries without affecting the restrictions as regards 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 the Commission by the Member States, a waiting time should be provided 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 available within the limits laid down by the Agriculture Agreement, various management 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 products eligible for export refunds in the context of food-aid operations; 14. Whereas, to ensure that licences are correctly used, for certain exports with refunds the country of destination should be defined as 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 applications for export licences for particular cheese varies according to destination; whereas, in order that special measures can be applied according to the destination indicated on licence applications, destination zones should be fixed and the destination zone indicated on export licences made obligatory for products falling within CN code 0406; 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 the percentage of the ingredients contained therein; whereas, however, to facilitate the management of refunds for these products, and particularly measures to ensure compliance with commitments 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 sucrose content of such products; 17. Whereas Article 8(3) of Regulation (EEC) No 3665/87 provides that refunds may be granted for ingredients of Community origin in 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 effectively checked; 18. Whereas, under the Agreement concluded between the European Community and Canada approved by Council Decision 95/591/EC ( 10 ) 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 quantities of cheese imported into Canada under the import quota correspond to the quantities for which licences have been issued, the licences duly stamped by the Canadian authorities should be returned 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 Switzerland on the implementation of the results of the Uruguay Round, it has been agreed to apply a set of measures providing in particular for a reduction in the customs duties on certain Community cheeses imported 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 these arrangements, including cheese on which export refunds are not payable; whereas licences should 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 which importers may import Community cheeses into the United States under the additional quota arising from the Agriculture Agreement; whereas this would allow the Community to maximise the value of the quota; whereas a procedure should therefore be laid down 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 in accordance with the opinion of the Management Committee for Milk and Milk Products, HAS ADOPTED THIS REGULATION:







CHAPTER I

General arrangements for export refunds

Article 1

1. Exports from the Community of products listed in Article 1 of Regulation (EEC) No 804/68 for which an export refund is requested shall be subject to the presentation of an export licence, except in the cases referred to in Article 2. The refund to be paid shall be the rate valid on the day the application for the export licence or, where relevant, the provisional licence, is submitted.

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However, the first subparagraph notwithstanding, an export licence must also be presented for the products referred to in Annex I, Number II, except in the cases referred to in Article 2.

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2. Section 7 of licence applications and licences shall show the country of destination and the code number of the country or territory of destination, as indicated in the country nomenclature for the external trade statistics of the Community and statistics of trade between Member States, drawn up by the Commission on the basis of Article 21(1) of Council Regulation (EC) No 1172/95 ( 11 ).

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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.

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4. For a refund to be granted on the products listed in Article 1 of Regulation (EC) No 1255/1999 they must meet the requirements of Directive 92/46/EEC, notably preparation in an approved establishment and compliance with the health marking requirements specified at A in Chapter IV of Annex C thereto.

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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.

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However, by derogation from the first paragraph, an export licence with advance fixing of the refund may be used to grant a refund for exports of milk products as referred to in Article 36(1)(c) of Regulation (EC) No 800/1999.

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For the purposes of the fourth indent of Article 5(1) of Regulation (EC) No 1291/2000, where several separate codes in the refunds nomenclature as laid down by Commission Regulation (EEC) No 3846/87 ( 12 ) or in the combined nomenclature are entered in an export declaration, the particulars relating to each code shall be deemed to constitute a separate declaration.

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Article 3

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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 of export is less than EUR 230/100 kg. ‘Free-at-frontier price’ means the ex-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 consider necessary 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 of Council Regulation (EEC) No 4045/89 ( 13 ).

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However, the first paragraph shall not apply to cheese falling within code 040690339919 of the nomenclature for refunds.

Article 4

1. The four product categories for the purposes of the Agriculture Agreement shall be those set out in Annex I hereto.

2. The second paragraph of Article 13a of Regulation (EEC) No 3719/88 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 the first subparagraph of Article 2a(2) of Regulation (EEC) No 3665/87 shall be those 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 be valid for that product alone except in the cases specified in paragraphs 2 and 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 same category, as referred to in Annex I, where the refund is identical. Such requests must be lodged before completion of the formalities referred to in 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 with advance fixing of the refund shall also be valid for exportation of a product with a 12-digit code other than that entered in Section 16 of the licence if the two products are adjacent in one of the groups laid down in Annex 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:

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(a) the end of the fourth month following issue in the case of products falling within CN code 0402 10;

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(b) the end of the fourth month following issue in the case of products falling within CN code 0405;

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(c) the end of the fourth month following issue in the case of products falling within CN code 0406;

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(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 the eighth month following issue of the full licence referred to in Article 8(3) at the latest.

Article 7

By way of derogation from Articles 27(5) and 28(5) of Regulation (EEC) No 3665/87, the period during which the products referred to in Article 1 of Regulation (EEC) No 804/68 may remain covered by the arrangements provided for in Council Regulation (EEC) No 565/80 ( 14 ) 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 falling within CN code 0406, traders may apply for a provisional export licence for the quantity covered by their tender subject to the lodging of a security. The security for provisional licences shall be equal to 75 % of the rate fixed in accordance with Article 9.

Traders shall furnish proof that the body is public or subject to public law.

2. Provisional licences shall be issued on the fifth working day following that on which the application is lodged, provided that the special measures referred to in Article 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 that paragraph shall be 60 days. Before the end of that period, traders shall apply for the full export licence, which shall be issued on presentation of proof that they have been awarded a contract.

On presentation of proof that the tender has been rejected or that the quantity awarded by the contract is less than indicated on the 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.

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Article 9

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The security referred to in Article 15(2) of Regulation (EC) No 1291/2000 shall be equal to a percentage of the refund fixed for each product code applicable on the day the export licence application is lodged, as follows:

(a) 10 % for products covered by CN code 0405;

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(b) 40 % for products covered by CN code 0402 10;

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(c) 30 % for products covered by CN code 0406;

(d) 25 % for other products.

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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 for milk products containing added sugar.

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As an exception to Regulation (EC) No 1291/2000, Article 35(3) of the said Regulation shall not apply to licences issued in accordance with this Regulation.

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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 the whole product concerned, multiplied by the refund rate applicable per kilogram of milk product.

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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 quantities for which licences have been applied for have been communicated in accordance with Article 9(1) of Commission Regulation (EC) No 1498/1999 ( 15 ) and that the special measures referred to in points (a) and (b) of the first subparagraph of paragraph 3 have not been adopted in the meantime.

2. A decision may be taken to adopt one or more of the special measures provided for in paragraph 3 where 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 may be 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; 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 seasonal nature 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 the decision fixing the coefficient, request the cancellation of their licence 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 by invitation 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.

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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 quantities which may be exported with refund during the 12-month period in question, the Commission may decide, in accordance with the procedure provided for in Article 30 of Regulation (EEC) No 804/68, to allocate 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.

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 quantities exported, 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 subparagraphs, 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.

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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 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 and licences:

‘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 applications 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) No 3665/87.

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.

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3. The following zones shall be defined for the purposes of paragraph 1:

(a) zone I: destination codes 070, 091 and 093 to 096 inclusive;

(b) zone II: destination code 092;

(c) zone III: destination code 400;

(d) zone IV: destination code 075;

(e) zone VI: all other destination codes.

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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 the Community.

2. The component referred to in paragraph 1(a) shall be calculated by multiplying the basic amount of the refund by the milk product content 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 on the day the licence application is submitted for the products listed in Article 1(1)(d) of Council Regulation (EEC) No 1785/81 ( 16 ).

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However, the sucrose component shall not be taken into account where the basic amount of the refund for the milk product content referred to in the second subparagraph of paragraph 2 is zero or is not fixed.

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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 has been:

(a) imported into the Community under Protocol 8 on sugar annexed to the ACP-EEC Lomé Convention ( 17 ), or the Agreement on cane sugar between the European Economic Community and the Republic of India ( 18 );

(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 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 refund has been applied for and to apply the provisions on entitlement to the refund.







CHAPTER II

Specific arrangements

Article 18

1. An export licence shall be required for all exports of cheese to Canada under the quota referred to in the Agreement concluded between the European Community and Canada.

2. Licence applications and licences shall show:

(a) in Section 7, the words ‘CANADA — 404’;

(b) in Section 15, the six-digit description of the goods in accordance with the Combined Nomenclature for products falling within CN codes 0406 10, 0406 20, 0406 30 and 0406 40 and the eight-digit description 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 so designated;

(d) in Sections 17 and 18, the total quantity of products referred to in Section 16;

(e) in Section 20, the following words: ‘Cheeses for direct export to Canada. Article 18 of Regulation (EC) No 174/1999. Quota for ... (year)’ or, as the case may be, ‘Cheeses for export directly/via New York to Canada. Article 18 of Regulation (EC) No 174/1999. Quota for ... (year)’ . Where cheese is transported to Canada via European third countries, such countries must be indicated instead of, or with, a reference to New York;

(f) in Section 22, the words ‘without export refund’.

3. Licence applications shall be admissible only where applicants:

(a) declare in writing that all material falling within Chapter 4 of the Combined Nomenclature and used in the manufacture of 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 and manufacturing 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 licence shall 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 the words ‘quota for ... (year)’ in Section 20 of licence applications and licences refer to the following year.

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6. Export licences presented to the competent authority for attribution 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 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.

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7. By way of derogation from Article 9 of Regulation (EEC) No 3719/88, licences shall not be transferable.

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8. Before the end of July for the preceding six-month period and before the end of January for the previous quota year, the competent authority of the Member State shall notify the Commission, in accordance with Annex IV, of the number of licences issued and the quantity of cheese concerned.

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9. Chapter I shall not apply.

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Article 19

In order to qualify for a reduction in or an exemption from customs duties on import into Switzerland of the cheeses listed in Appendix 2 to Annex III to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products, an export declaration accompanied by proof of origin issued pursuant to Protocol No 3 to the Agreement between the European Economic Community and the Swiss Confederation of 22 July 1972 shall be required.

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Article 20

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1. In accordance with the procedure referred to in Article 42 of Regulation (EC) No 1255/1999, the Commission may decide that export licences shall be issued, in accordance with paragraphs 2 to 11 of this Article, for products falling within CN code 0406 for export to the United States of America as part of the following quotas:

(a) the additional quota under the Agriculture Agreement,

(b) the tariff quotas originally resulting from the Tokyo Round and granted to Austria, Finland and Sweden by the United States of America in Uruguay Round list XX,

(c) the tariff quotas originally resulting from the Uruguay Round and granted to the Czech Republic, Hungary, Poland and Slovakia by the United States of America in Uruguay Round list XX.

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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 export licence. ►M27 By way of derogation from the first sentence of Article 5(1), Section 16 of licence applications and licences shall show the eight-digit product code of the Combined Nomenclature. ◄

Traders may apply, within a period to be determined, for a provisional export licence for the export of the products referred to in paragraph 1 during the following calendar year subject to the lodging of a security equal to 50 % of the rate fixed in accordance with Article 9, with a minimum of ►M11 EUR 6 ◄ per 100 kg.

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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 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 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 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 in the United States on the issue of import licences for the products referred to in paragraph 1 as part of the quota.

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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 referred to 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:

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(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.

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However, in respect of applications for provisional licences to export cheese to the United States of America for the 2005 quota year by applicants established in the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (‘new Member States’) and applying in their Member State of establishment, the following transitional measures shall apply:

(a) the historic export performance provided for in point (a) of the first subparagraph is not required for applicants who submit with their application documentary proof that they have been established for at least three years in the new Member States and have exported cheese during each of those years, except in the case of applications for provisional licenses submitted: (i) in the Czech Republic for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16, 17, 18, 20 and 25 to Chapter 4 of the Harmonised Tariff Schedule (HTS) for which country-specific quotas have been fixed for 2003, (ii) in Hungary for the purpose of exporting cheese to the United States of America under the quota described in additional note 25 to Chapter 4 of the HTS for which a country-specific quota has been fixed for 2003, (iii) in Poland for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16 and 21 to Chapter 4 of the HTS for which country-specific quota have been fixed for 2003, (iv) in Slovakia for the purpose of exporting cheese to the United States of America under the quota described in additional note 16 to Chapter 4 of the HTS for which a country-specific quota has been fixed for 2003;

(b) for the purposes of point (b) of the first subparagraph, an applicant may have his or her designated preferred importer for 2005 deemed to be a subsidiary provided that: (i) its application was lodged in — the Czech Republic for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16, 17, 18, 20 and 25 to Chapter 4 of the HTS, — in Hungary for a provisional licence for the purpose of exporting cheese to the United States of America under the quota described in additional note 25 to Chapter 4 of the HTS, — in Poland for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16 and 21 to Chapter 4 of the HTS, — in Slovakia for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional note 16 to Chapter 4 of the HTS, (ii) the applicant submits to the competent authority of the Member State in which the application is lodged documentary evidence that he has been established for at least three years in the new Member States and has exported the cheese in question to the USA during each of the three calendar years prior to lodging the application, (iii) the applicant gives to the competent authority of the Member State in which the application is lodged a written undertaking to initiate the procedure to establish a subsidiary in the United States of America, (iv) the applicant submits to the competent authority of the Member State in which the application is lodged evidence of exports to preferred importers in the 12 months prior to lodging the application.

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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 1 for the year concerned, the Commission may allocate the remaining quantities 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: not valid for exports’

.

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 circumstances which do not cast doubt on the sincerity of the attestation referred to in the third subparagraph of paragraph 2, the trader may be authorised by the 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 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 in whole or in part for rejected applications or for quantities in excess of those allocated.

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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 condition that the security referred to in paragraph 2 is increased to the total amount laid down in Article 9 for the quantities for which the licences are 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 in paragraph 1.

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The security for the full licence shall be released only on presentation of the export declaration duly endorsed by the competent customs authority.

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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 validity of licences as provided for in Article 6 may not extend beyond the end of the year concerned.

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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 of duty under the quota, for 12 month periods commencing on 1 July, as referred to in the Memorandum of Understanding concluded between the European Community and the Dominican Republic and approved by Council Decision 98/486/EC ( 19 ).

2. Exports as referred to in paragraph 1 shall be subject to the presentation to the competent authorities of the Dominican Republic 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.

3. When export licences are issued, priority shall be given to milk powder falling within the following product codes from the nomenclature of export refunds:

— 040210199000,

— 040221119900,

— 040221199900,

— 040221919200,

— 040221999200.

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 the authorities consider necessary for the issuing of licences and shall accept, where applicable, any checks by those authorities of the bookkeeping 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 into two parts:

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(a) the first part, equal to 80 % or 17 920 t, shall be 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 for submission of applications, excluding 2000;

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(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, at the time 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 the common customs tariff and are registered in a Member State for VAT purposes.

5. Applications for export licences may not cover more, per applicant, than:

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— for the part referred to in paragraph 4(a), a quantity 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 for submission of applications, excluding 2000;

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— for the part referred to in paragraph 4(b), a total maximum 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 and all applications must be lodged at the same time with the competent authority of a single Member State;

(b) Export licence applications shall be admissible only where applicants, at the time they present their applications: ▼M8 — lodge a security of EUR 15 per 100 kilogrammes, ▼M1 — for the part referred to in paragraph 4(a), indicate the quantity of products referred to in paragraph 3 that they have exported to the Dominican Republic during one of the three calendar years prior to the period referred to in paragraph 4(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 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 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 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 the period for submission of licence applications.

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8. The refund rate for products intended for export to the Dominican Republic under the quota referred to in paragraph 1 shall be the following percentages of the rate fixed by the Commission in accordance with Article 31(3) of Regulation (EC) No 1255/1999 and applicable on the first day of the lodgement period for the licence applications referred to in paragraph 7:

(a) 65 % for products falling within CN code 0402 10;

(b) 80 % for products falling within CN codes 0402 21 and 0402 29.

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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;

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(c) in section 20, one of the following indications: — Artículo 20 bis del Reglamento (CE) no 174/1999: 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 la Decisión 98/486/CE del Consejo. — čl. 20 písm. a) nařízení (ES) č. 174/1999: Celní kvóta pro období od 1.7..... do 30.6..... pro sušené mléko v rámci memoranda o porozumění uzavřeného mezi Evropským společenstvím a Dominikánskou republikou a schváleného rozhodnutím Rady 98/486/ES. — Artikel 20a i forordning (EF) nr. 174/1999: toldkontingent for perioden 1.7… til 30.6… for mælkepulver i henhold til den aftale, som blev indgået mellem Det Europæiske Fællesskab og Den Dominikanske Republik og godkendt ved Rådets afgørelse 98/486/EF. — Artikel 20a der Verordnung (EG) Nr. 174/1999: Milchpulverkontingent 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 Dominikanischen Republik. — Määruse (EÜ) nr. 174/1999 artikkel 20a: Piimapulbri tariifikvoot 1.7. … – 30.06..... vastastikuse mõistmise memorandumi alusel, mis on sõlmitud Euroopa Ühenduse ja Dominikaani Vabariigi vahel ning heaks kiidetud nõukogu otsusega 98/486/EÜ. — Άρθρο 20α του κανονισμού (ΕΚ) αριθ. 174/1999: δασμολογική ποσόστωση, για το έτος 1.7…-30.6…, γάλακτος σε σκόνη δυνάμει του μνημονίου συμφωνίας που συνήφθη μεταξύ της Ευρωπαϊκής Κοινότητας και της Δομινικανικής Δημοκρατίας και εγκρίθηκε από την απόφαση 98/486/ΕΚ του Συμβουλίου. — Article 20a of Regulation (EC) No 174/1999: tariff quota for 1.7…-30.6…, for milk powder under the Memorandum of Understanding concluded between the European Community and the Dominican Republic and approved by Council Decision 98/486/EC. — Article 20 bis du règlement (CE) no 174/1999: contingent tarifaire pour l’année 1.7…-30.6…, de lait en poudre au titre du mémorandum d’accord conclu entre la Communauté européenne et 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 titolo del memorandum d’intesa concluso tra la Comunità europea e la Repubblica dominicana e approvato con la decisione 98/486/CE del Consiglio. — Regulas (EK) Nr. 174/1999 20.a pants: Tarifa kvota 1.7.…. – 30.06.…. sausajam pienam (piena pulverim) saskaņā ar Saprašanās memorandu, kas noslēgts starp Eiropas Kopienu un Dominikānas Republiku un apstiprināts ar Padomes Lēmumu 98/486/EK. — Reglamento (EB) Nr. 174/1999 20a straipsnis: tarifinė kvota 1.7.… – 30.6... pieno milteliams, numatyta Europos bendrijos ir Dominikos Respublikos susitarimo memorandume ir patvirtinta Tarybos sprendimu 98/486/EB. — Az 174/1999/EK rendelet 20. cikk a) pont: A 98/486/EK tanácsi rendelet által jóváhagyott, az Európai Közösség és a Dominikai Köztársaság között megkötött egyetértési megállapodás értelmében a tejporra … július 1- től … június 30-ig vonatkozó vámkontingens. — Artikolu 20a tar-Regolament (KE) Nru 174/1999: Quota ta’ tariffa għal 1.7.…. – 30.06.…., għall-ħalib tat-trab taħt il-Memorandum ta’ Ftehim konkluż bejn il-Komunità Ewropea u r-Repubblika Dominikana u approvat permezz tad-Deċiżjoni tal-Kunsill 98/486/KE — Artikel 20 bis van Verordening (EG) nr. 174/1999: tariefcontingent melkpoeder voor het jaar 1.7…-30.6… krachtens het memorandum van overeenstemming tussen de Europese Gemeenschap en de Dominicaanse Republiek, goedgekeurd bij Besluit 98/486/EG van de Raad. — Artykuł 20a Rozporządzenie (WE) nr. 174/1999: Kontyngent taryfowy na okres od 1.7.…. do 30.06.…. na mleko w proszku zgodnie z Protokołem Ustaleń zawartym między Wspólnotą Europejską a Republiką Dominikańską i przyjętym decyzją Rady 98/486/WE. — Artigo 20.oA do Regulamento (CE) n.o 174/1999: contingente pautal do ano 1.7…-30.6…, de leite em pó ao abrigo do memorando de acordo concluído entre a Comunidade Europeia e a República Dominicana e aprovado pela Decisão 98/486/CE do Conselho. — Článok 20a nariadenia (ES) č. 174/1999: Tarifná kvóta pre 1.7.....- 30.06..... pre sušené mlieko podľa Memoranda o vzájomnom porozumení uzatvorenom medzi Európskym spoločenstvom a Dominikánskou republikou a schváleným rozhodnutím Rady (ES) č. 98/486. — Člen 20a Uredbe (ES) št. 174/1999: Tarifna kvota za obdobje 1.7.…. – 30.06.…. za mleko v prahu v skladu z Memorandumom o soglasju, sklenjenim med Evropsko skupnostjo in Dominikansko republiko in potrjenim z Odločbo Sveta 98/486/ES. — Asetuksen (EY) N:o. 174/1999 20 a artikla: neuvoston päätöksellä 98/486/EY hyväksytyn Euroopan yhteisön ja Dominikaanisen 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 avtalsmemorandumet mellan 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.

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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 model in Annex V, for each of the two 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 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 the Member 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 Commission shall fix allocation coefficients. If application of the allocation coefficient results in a quantity per applicant of less than 20 t, applicants may withdraw their applications. In such cases, they shall notify the competent authority within three working days of publication of the Commission's decision. The security shall be released immediately. The competent authority shall notify the Commission, within eight working days of publication of the decision, of the quantities for which applications have been withdrawn and for which the security has been released.

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 taking account in particular of licence applications for all the products falling within CN codes 0402 10, 0402 21 and 0402 29.

12. ►M8 Licences shall be issued at the request of the operator, not earlier than 1 June and not later than 15 February the following year. 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 quantities for which no licences were issued.

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13. Notwithstanding Article 6, export licences shall be valid from their actual day of issue within the meaning of Article 23(2) of Regulation (EC) No 1291/2000 until 30 June of the quota year for which the licence application was made.

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The security shall be released only in one of the following two cases:

(a) on presentation of the proof referred to in Article 35(5) of Commission Regulation (EC) No 1291/2000 ( 20 ) 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 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 Annex VII, 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.

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17. Chapter 1 shall apply, with the exception of Article 5(2) and (3) and Articles 6, 9 and 10.

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CHAPTER III

Final provisions

Article 21

Regulations (EEC) No 3665/87 and (EEC) No 3719/88 shall apply save as otherwise provided in this Regulation.

Article 22

Regulation (EC) No 1466/95 is hereby repealed.

References to the repealed Regulation shall be construed as references to this Regulation.

Regulation (EC) No 1466/95 shall continue to apply to licences issued against applications submitted before the entry into force of the present Regulation.

Article 23

►C1 This 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.









ANNEX I







Product categories laid down in Article 4(1) Number Description CN code I Butter, other fats and oils derived from milk and spreads 0405 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 70

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ANNEX II







Product groups set by Article 4(3) Group No Milk product code (nomenclature for export refunds) 1 040110109000 040120119100 040120119500 040120919000 040130119400 040130119700 040130319100 040130319400 040130319700 040130919100 040130919500 2 040110909000 040120199100 040120199500 040120999000 040130199700 040130399100 040130399400 040130399700 040130999100 040130999500 3 040221119200 040221119300 040221119500 040221119900 040221919100 040221919200 040221919350 040221919500 4 040221179000 040221199300 040221199500 040221199900 040221999100 040221999200 040221999300 040221999400 040221999500 040221999600 040221999700 040221999900 5 040229159200 040229159300 040229159500 040229159900 040229919000 6 040229199300 040229199500 040229199900 040229999100 040229999500 8 040291119370 040291319300 040291519000 10 040291199370 040291399300 040291599000 040291999000 11 040299319300 040299319500 12 040299119350 040299319150 040299319300 040299319500 040299919000 14 040299199350 040299399150 040299399300 040299399500 ►C2 040299999000 ◄ 17 040390119000 040390139200 040390139300 040390139500 040390139900 040390199000 18 040390339400 040390339900 19 040390519100 040390599170 040390599310 040390599340 040390599370 040390599510 21 040490219120 040490219160 040490239120 040490239130 040490239140 040490239150 22 040490819100 040490839110 040490839130 040490839150 040490839170 23 040510119500 040510119700 040510199500 040510199700 040510309100 040510309300 040510309700 040510509300 040510509500 040510509700 040510909000 040520909500 040520909700 040590109000 040590909000

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ANNEX IV

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ANNEX V









ANNEX VI









ANNEX VII

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