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ARRANGEMENT

between the European Economic Community and the Republic of Austria concerning reciprocal trade in cheese

With the aim of fostering the harmonious development of trade in agricultural products, under the terms of Article 15 of the Agreement between Austria and the European Economic Community, signed on 22 July 1972 (1), the two parties held negotiations on their reciprocal trade in cheese.

During these negotiations, they established that it would be advisable, in the light of experience, to conclude a new arrangement from 1 September 1987, the provisions of this new arrangement being as follows:

1. Austria and the Community agree that, for the annual quantities of cheese indicated below, the duties to be levied on importation may not exceed the following levels:

A. On importation into Austria:

Cheese manufactured from cows' milk, falling within subheading 04.04 A of the Austrian Customs Tariff, originating in and coming from the Community, and accompanied by an approved certificate of quality and origin:

1.2.3 // // Annual quantity // Import duty // (a) -Processed cheese // 2 000 t // 760 S/100 kg // (b) - Blue-veined cheese // // 560 S/100 kg // - Danbo, Edam, Elbo, Fynbo, Fontal, Gouda, Havarti, Malbo, Maribo, Mimolette, Samso, Tybo // // 560 S/100 kg // - Tilsit // // 460 S/100 kg // - Emmentaler, Gruyère // // 460 S/100 kg // - Butterkaese, Esrom, Italico, Kernheim, Saint-Nectaire, Saint-Paulin, Taleggio, Cheddar and the other cheeses not included above, of a water content in the non-fatty matter not exceeding 62 %, with the exception of those falling within tariff subheading 04.04 A I a), b) or c) of the Austrian Customs Tariff // 3 000 t // 560 S/100 kg

The above cheeses of Community origin may not be imported into Austria unless accompanied by the approved certificate of quality and origin.

B. On importation into the Community:

Cheese falling within heading No 04.04 of the Common Customs Tariff originating in and coming from Austria, accompanied by an approved certificate:

1.2.3 // // Annual quantity // Import duty // // // // (a) - Emmentaler, Gruyère, Sbrinz, Bergkaese, not grated or powdered, of a minimum fat content of 45 % by weight, in the dry matter, matured for at least three months, falling within subheading 04.04 A of the Common Customs Tariff: // // // - whole cheeses // // // - pieces packed in vacuum or in inert gas with rind on at least one side, of a net weight of not less than 1 kg // 8 000 t // 18,13 ECU/100 kg // - pieces packed in vacuum or in inert gas, of a net weight not

(1) OJ No L 300, 31. 12. 1972, p. 1.

// // Annual quantity // Import duty // // (b) - Processed cheese, not grated or powdered, in the blending of which only Emmentaler, Bergkaese or similar hard cheeses have been used, put up for retail sale and of a fat content, by weight, in the dry matter, not exceeding 56 %, falling within subheading 04.04 D of the Common Customs Tariff // 3 750 t // 36,27 ECU/100 kg // (c) - Blue-veined cheese falling within subheading 04.04 C of the Common Customs Tariff // // // - Tilsit, matured for not less than one month, and Butterkaese, falling within subheading 04.04 E I b) 2 of the Common Customs Tariff // // // - Mondseer, of a fat content, by weight, in the dry matter, of not less than 40 % and less than 48 %, falling within subheading 04.04 E I b) 2 of the Common Customs Tariff // // // - Alpentaler, of a fat content, by weight, of 45 % in the dry matter and a water content, by weight, greater than 40 %, but less than 45 % falling within subheading 04.04 E I b) 2 of the Common Customs Tariff // // // - Whole Edam cheeses of a fat content, by weight in the dry matter, of not less than 40 % and less than 48 %, of a net weight not exceeding 350 g 'Geheimratskaese', falling within subheading 04.04 E I b) 2 of the Common Customs Tariff // 3 950 t // 60 ECU/100 kg // - 'Tiroler Graukaese' of a fat content, by weight, in the dry matter, of less than 1 % and a water content, by weight, greater than 60 % but less than 66 %, falling within 04.04 E I b) 2 of the Common Customs Tariff // // // - 'Weisskaese nach Balkanart' and 'Kefalo-Tyri', made from cow's milk of a fat content, by weight, in the dry matter, of less than 48 %, falling within subheading 04.04 E I b) 2 of the Common Customs Tariff // //

2. Austria undertakes to take the necessary measures to ensure that:

- the quantities it has agreed to export to the Community, as laid down in B., will not be exceeded;

- the licences for import into Austria will be granted on a regular basis and in such a way that the quantities agreed for import into Austria from the Community can actually be imported.

The provisions concerning this matter and in particular the procedures for the distribution of licences, and any possible changes, will be brought to the notice of the Commission of the European Communities and of exporters and/or importers.

The Community and Austria will take steps to ensure that the benefits which they grant each other will not be jeopardized by other import measures.

3. Austria and the Community undertake, each on its own behalf, to ensure that the prices charged by their exporters are not such as to create difficulties on the importing country's market.

They agree, in this connection, to set up the system for cooperation and the exchange of information described in the Annex to this Arrangement. Should difficulties arise concerning the prices charged, consultations will be held at the request of either party, as promptly as possible, with a view to the adoption of appropriate corrective measures.

4. The two parties may consult each other at any stage concerning the operation of this Arrangement, and, where necessary, change it, by common accord, in the light, in particular, of market price trends, production, marketing and consumption of domestic and imported cheese.

In particular, if a substantial increase in imports of cheese into the Community and/or Austria is observed, particularly of cheeses not covered by this Arrangement, the two parties will hold consultations, at the request of either party, in order to examine whether the quantities laid down by this Arrangement may be changed.

5. This Arrangement may be cancelled by one year's notice in writing.

If recourse is had to this provision, each party will retain the rights it had before 1 September 1987.

6. This Agreement shall replace the Temporary Arrangement for a concerted discipline between the Republic of Austria and the European Economic Community concerning reciprocal trade in cheese, signed on 21 October 1981 and last amended by the Exchange of Letters of 20 March 1984.

1.2 // For the Government of the Republic of Austria // On behalf of the Council of the European Communities exceeding 450 g // //

ANNEX

With a view to preventing the prices charged by exporters from being such as to create difficulties on the importing country's market, the following information and co-operation system is hereby set up:

Exchange of information

(a) Austria will provide the Commission of the European Communities with the following information on each category of cheese covered by the Arrangement:

- two weeks before the beginning of each quarter, prospective Austrian exports to the Community for the next quarter (anticipated quantities, free-at-Austrian-frontier prices, probable markets);

- two weeks following the end of each quarter, actual Austrian exports to the Community during the past quarter (quantities and free-at-Austrian-frontier prices, importing Member States);

(b) The Commission of the European Communities will at regular intervals provide price quotations and any other useful information concerning the market in domestic and imported cheeses.