Proposal for a Council Regulation (EC) on the common organization of the market in sheepmeat and goatmeat (codified version)
Date: 1998-03-10
Institutions: European Commission
Subjects: codification of EU law, common organisation of markets, farm price support, goatmeat, sheepmeat

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.03.1998 
COM(1998) 88 final 

98/ 0062 (CNS) 

Proposal for a 

COUNCIL REGULATION (EC) 

on the common organization of the market in sheepmeat and goatmeat 

(codified version) 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

In the  context  of  a people's  Europe,  the  Commission  attaches  great  importance  to  simplify 
ing  and  clarifying  Community  law  so  as  to  make  it  clearer  and  more  accessible  to  the 
ordinary  citizen,  thus  giving  him  new  opportunities  and  the  chance  to  make  use  of  the 
specific  rights  it  gives  him. 

This  aim  cannot  be  achieved  so  long  as  numerous  provisions  that  have  been  amended 
several  times,  often  quite  substantially,  remain  scattered,  so  that  they  must  be  sought  partly 
in  the  original  instrument  and  partly  in  later  amending  ones.  Considerable  research  work, 
comparing  many  different  instruments,  is  thus  needed  to  identify  the  current  rules. 

For  this  reason  a  consolidation  of  rules  that  have  frequently  been  amended  is also  essential 
if  Community  law  is  to  be  clear  and  transparent. 

On  1 April  1987,  the  Commission  therefore  decided  to  instruct  its  staff  that  all  legislative 
measures  should  be  consolidated  after  no  more  than  ten  amendments,  stressing  that  this 
was a minimum  requirement  and  that  departments  should  endeavour  to  consolidate  at  even 
shorter  intervals  the  texts  for  which  they  were  responsible,  to  ensure  that  the  Community 
rules  were  clear  and  readily  understandable. 

The  Conclusions  of  the  Presidency  of  the  Edinburgh  European  Council  (December  1992) 
confirmed  this,  stressing  the  importance  of  legislative  consolidation  as  it  offers  certainty  as 
to  the  law  applicable  to  a  given  matter  at  a  given  time. 

It  must  be  undertaken  in  full  compliance  with  the  normal  Community  legislative  procedure. 

Given  that  no  changes  of  substance  may  be  made  to  the  instruments  affected  by  legislative 
consolidation.  Parliament,  the  Council  and  the  Commission  have  agreed,  by  an  interinstitu-
tional  agreement  dated  20  December  1994,  that  an  accelerated  procedure  may  be  used  for 
the  fast-track  adoption  of  codification  instruments. 

The  purpose  of  this  proposal  (l)  for  legislative  consolidation  of  Council  Regulation  (EEC) 
No  3013/89  of  25  September  1989  on  the  common  organization  of  the  market  in  sheep-
meat  and  goatmeat,  is  to  undertake  official  codification  of  this  type.  The  new  regulation 
will  supersede  the  various  directives  incorporated  in  it (2);  their  content  is fully  preserved, 
and  they  are  brought  together  with  only  such  formal  amendments  as  are  required  by  the 
codification  exercise  itself. 

This  legislative  consolidation  proposal  was  drawn  up  on  the  basis  of  a  preliminary  conso 
lidation,  in  all  the  official  languages,  of  Regulation  (EEC)  No  3013/89  and  the  instruments 
amending  it,  carried  out  by  the  Office  for  Official  Publications  of  the  European  Commu 
nities,  by  means  of  the  data-processing  system  referred  to  in  the  conclusions  of  the  Euro 
pean  Council  meeting  at  Edinburgh.  Although  the  articles  have  been  given  new  numbers, 
the  old  numbering  has  been  retained  in  the  margin  for  ease  of  reference;  the  correlation 
between  the  old  and  new  numbers  is  shown  in  a  table  set  out  in  the  Annex  II,  Part  A,  to 
the  consolidated  Regulation. 

(*)  Entered  in the  legislative  programme  for  1997. 
(2)  See Annex  II, Part  B of  the  present  proposal. 

PROPOSAL FOR A 

COUNCIL  REGULATION  (EC)  No ..7... 

of... 

on the common organization  of the market  in  sheepmeat  and goatmeat 

THE COUNCIL OF THE EUROPEAN UNION, 
Having  regard  to  the  Treaty  establishing  the  European 
Community, and in particular Articles 42 and 43 thereof, 

Having regard  to  the  proposal  of  the  Commission, 

Having  regard  to  the  opinion  of  the  European  Parlia 
ment (1), 

Having  regard  to  the  opinion  of  the  Economic  and  So 
cial  Committee (2); 

(1)  Whereas  Council  Regulation  (EEC)  No  3013/89  of  25 
September  1989,  on  the  common  organization  of  the 
market  in  sheepmeat  and  goatmeat (3)  has  been  fre 
quently  and  substantially  amended (4), whereas  for  rea 
sons of clarity and rationality the said Regulation  should 
therefore  be  codified; 

(2)  Whereas the operation  and development of the common 
market  in agricultural products must be  accompanied by 
the  establishment  of  a  common  agricultural  policy  in 
volving common organization of the agricultural markets; 
whereas  the  form  of  such  organization  may  vary  from 
one  product  to  another; 

(3)  Whereas in order  to  attain  the  objectives  set  out  in Ar 
ticle 39 of the Treaty, in particular  market stability and a 
fair  standard  of  living  for  the  agricultural  community 
concerned,  it is necessary to retain certain  arrangements 
facilitating  adjustment  of supply to market requirements; 
whereas, in particular,  Community  sheepmeat  and  goat 
meat  producers  should  continue  to  be  granted  a  pre 
mium to compensate for loss of income, and intervention 
measures should  be  continued; 

(4)  Whereas  provision  should  be  made  for  the  fixing  of  a 
basic price at which intervention measures will come into 
operation  and which will protect  the  Community  market 
against price fluctuations on the world market for certain 
products  in  the  sector; 

3013/89 

() 

(? 
(3) 
(4) 

OJ L 289, 7.10.1989, p. 1. Regulation as last amended by 
Regulation (EC) No 1589/% (OJ No L 206,16.8.1996, p. 
25). 
See Annex H, Part B. 

(5)  Whereas  the  amount  of  the  premium  to  be  granted  to 
producers,  determined  on  the  basis  of  a  Community 
single  income  loss,  must  take  account  of  the  different 
specializations  of production  systems in the  Community; 
whereas, in order to limit any increase in the budget cost 
in  this sector, provision  should  be  made  for  limiting the 
full  rate  of  the  premium  to  1 000  animals per  producer 
in the  less-favoured  areas within the meaning of Council 
Directive 75/268/EEC (l)  and  to  500  animals  per  pro 
ducer  in  other  areas; whereas,  above  these  figures,  the 
premium will continue to be paid at the reduced  level of 
50%; 

(6)  Whereas it is opportune  for administrative purposes that 
the  latest  date  for  the  payment  of  the  premium  should 
coincide  with the  end  of  the  budgetary year; 

(7)  Whereas the  upward trend  in ewe numbers in the Com 
munity  and  the  resulting  substantial  drop  in  prices  are 
having  serious  repercussions  on  the  market  balance; 
whereas,  while  being  partly  curbed  by  the  various 
measures,  in particular  as regards  prices  and stabilizers, 
this  trend  has  nevertheless  resulted  in  an  increase  in 
production  and  in EAGGF  expenditure; 

(8)  Whereas, subject  to special provisions applicable  to pro 
ducer  groups,  an  individual  limit  should  be  imposed  on 
each producer,  based on the  total  premiums granted  for 
the  1991 marketing year  to  each  producer; 

(9)  Whereas,  in  order  to  take  account  of  trends  in produc 
tion  throughout  the  Community,  this  total  should  how 
ever  be  multiplied  by  a  coefficient  established  for  each 
Member  State  and  representing  the  ratio  between  the 
total  number  of  ewes eligible  at  the  beginning  of  1989, 
1990  or  1991 and  the  total  number  of  eligible  animals 
conferring  entitlement  to  the  premium  for  the  1991 
marketing  year;  whereas,  however,  special  provisions 
should  be adopted for  Germany in order to take  account 
of  certain  specific  problems  in  the  new  'Lander'; 

(10)  Whereas  new  producers  and  existing  producers  whose 
reference  flocks  are not  in line with the normal  trend in 
ewe  numbers  should  not  be  excluded  from  entitlement 
to  the  premium; whereas,  to  that  end,  provision  should 
be  made  for  a  national  reserve  made  up  initially  of  a 
flat-rate  levy  on  the  individual  limits  of  all  producers; 
whereas  provision  should  be  made  to  increase  the  re 
serve  in less-favoured  areas; 

3013/89 
(adapted) 

2069/92 
(adapted) 

3. 

(adapted) 

(adapted) 

5. 

(adapted) 

(adapted) 

(!)  OJNoL128,19.5.1975, p. 1; Directive replaced by Regulation 

(EC) No 950/97 (OJ L 142, 2.6. 1997, p. 1). 

7. 

2069/92 
(adapted) 

9. 

3. 

(adapted) 

233/94 
(adapted) 

1265/95 
(adapted) 

(11)  Whereas  changes  in production  may be  made  necessary 
by possible  alterations  to  the  assets or  production  capa 
city of recipients; whereas, therefore, provision should be 
made  that  entitlements  to  the  premium  acquired  in re 
spect  of  individual  limits  may be  transferred  under  cer 
tain  conditions  to other  producers; whereas, in order  to 
make  the  system  of  transfer  as  flexible  as possible, it is 
appropriate  to  allow the  transfer  of rights to  take  place 
also  without  the  transfer  of  the  holding;  whereas  it  is 
appropriate  to  submit  the  transfer  to  rules  which  allow 
some  rights  to  be  surrendered,  without  payment  to  the 
national  reserve  in order  that  it can  provide,  in particu 
lar, rights for  new entrants; 

(12)  Whereas,  in order  to  take  account  of  the  fact  that pro 
ducers  should  be  permitted  to  reduce  their  production 
for  a  limited  period,  it  is  appropriate  to  authorize  the 
Member  States  to  provide  the  option  of  a  temporary 
transfer  of premium rights; 

(13)  Whereas  it  is  opportune  to  establish  a  link  between 
sensitive  zones or  localities  and  the production  of sheep 
and  goats  so  as  to  ensure  the  maintenance  of  this pro 
duction especially in areas where there  is no other  alter 
native; 

(14)  Whereas  the  individual  ceiling  placed  on  the  premium 
per  producer  leads to  a limitation  of  the  number  of eli 
gible  ewes and goats; 

(15)  Whereas  this  measure  renders  nugatory  limits per  head 
for  the purpose of determining the amount of premiums 
to  be  paid  in  the  sector,  without  affecting  the  right  to 
premiums which producers already enjoy; whereas, there 
fore,  provision  should  be  made  for  the  possibility  of 
rectifying  individual  limits; 

(16)  Whereas  the  grant  of  an  individual  limit  per  producer 
for  obtaining  the right to  the  premium  may give rise to 
administrative difficulties  in the case of certain groups of 
in  particular  family  groups,  during  the 
producers, 
transfer  of premium rights between members of the said 
groups; whereas, therefore,  for  reasons  of  correct  admi 
nistration,  provision  should  be  made  for  certain  groups 
to be exempted,  under  certain  conditions, from  payment 
to  the  national  reserve  of  the  percentage  of rights pro 
vided  for  in  the  case  of  a  transfer  of  rights  without 
transfer  of  holding;  whereas  that  provision  should  not 
lead  to  an  increase  in  individual  rights  currently  allo 
cated  in each  Member  State, nor give rise to  the  forma 
tion  of  new producer  groups  created  with  the  sole  aim 
of  avoiding  payment  to  the  national  reserve  of  the  per 
centage of rights provided for  in the case of a transfer of 
rights without  transfer  of  holding; 

(17)  Whereas the individual limit was established on the basis 
of  the  total  amount  of  premiums  granted  for  the  1991 
marketing year  for  each  producer; whereas  in  Italy  and 
in  Greece,  because  that  marketing  year  was  a  year  of 
transition  between  two  different  premium  systems,  a 
number  of  producers  were  not  able  to  submit  an  ap 
plication  for  a premium  for  the  1991 marketing year  for 
the  number  of  eligible  animals  they  held;  whereas,  in 
order to remedy this situation, special reserves should be 
created  for  Italy  and  for  Greece  corresponding  to  the 
estimated  maximum  number  of  rights  which  the  pro 
ducers  concerned  were  unable  to  claim;  whereas  the 
competent  authorities  of  those  two  Member  States 
should  initially be  allowed  to grant  new rights up to the 
limit  of  the  special  reserve  referred  to  above  and  then, 
subject  to verification  by the  Commission  of  the  correct 
allocation  of  the  rights  granted,  in  particular  in  the  re 
gions  most  affected,  the  national  reserves  will  be  in 
creased  for  Italy  and  Greece  by  the  sum  of  the  rights 
newly granted with effect  from  the  1995 marketing year; 

(18)  Whereas  it  is  necessary  to  clarify  the  conditions  under 
which special provisions may be adopted  by Germany in 
order to take  account of the specific problems which re 
main  in the  new Lander, 

(19)  Whereas,  in order  to  effect  a  smooth  passage  from  the 
current  provisions  in  the  territories of  the  new  German 
Lander to  the premium  regime  applicable  in the  rest of 
the  Community,  certain  temporary  measures  may  be 
found  to  be  necessary, 

(20)  Whereas,  within  the  framework  of  the  production  of 
sheepmeat  and  goatmeat,  environmental  protection  has 
become  an important  element which must be taken  into 
consideration; whereas Member  States should  thus have 
the  possibility  of  limiting  or  abolishing  payments  under 
the  premium  regime  for  producers  of  sheepmeat  and 
goatmeat,  if  the  producer  in  question  does  not  fully 
comply with  the  rules fixed by the  Member  States with 
respect  to  the  environment,  subject  to  compliance  with 
the proportionality  principle; 

(21)  Whereas,  as  regards  intervention  measures,  provision 
should  be  made  for  them  to  take  the  form  of  private 
storage  aid,  which  least  affects  normal  marketing  of 
products; 

1265/95 

1589/% 
(adapted) 

4. 

233/94 
(adapted) 

5. 

3013/89 

1589/96 
(adapted) 

3013/89 

10. 

2069/92 
(adapted) 

(22)  Whereas,  as  a  general  rule,  whenever  certain  market 
price  criteria  are  met  the  decision  to  grant private  stor 
age  aid  should  be  taken  in  the  context  of  a  tendering 
procedure;  whereas  however,  that  private  storage  aid 
could be made more effective  if the amount of the aid is 
fixed in  advance, where  urgent  recourse  to private  stor 
age proves  neces-sary  in  the  light  of  a particularly  diffi 
cult  market  situation  in  one  or  more  quotation  areas; 
whereas  it  is therefore  necessary  to  authorize  the  Com 
mission to carry out advance fixing of the aid where such 
a  market  situation  has  arisen,  even  if  the  market  price 
criteria  referred  to  above  have  not been  met; 

(23)  Whereas the purpose of the abovementioned premium is 
to  ensure  a fair  return  for producers; whereas, however, 
in view of  the  possibilities  for  disposal  on  the  Commu 
nity  market  and  the  Community's  international  commit 
ments, production of sheepmeat and goatmeat should no 
longer be encouraged once the Community flock exceeds 
a certain level established in the light of the market situ 
ation; whereas to that end provision should be made  for 
reducing  the  degree  of  guarantee  afforded  by  the 
measures in question; whereas the maximum guaranteed 
level should be fixed at that which obtained for  ewes on 
31 December  1987 in  the  regions  concerned  and provi 
sion  should  be made  for  its eventual revision; 

(24)  Whereas  the  introduction  of  individual  limits  by  pro 
ducers  for  the  granting  of  the  premium  by  maintaining 
flock  numbers  at their existing level, should  reduce very 
appreciably the risk of budgetary overspending; whereas, 
in  these  circumstances,  the  coefficient  for  reducing  the 
basic  price  referred  to  in Article  13 (2)  of  this  Regula 
tion  should  be  fixed  at  the  level  adopted  for  the  1990 
marketing year; 

(25)  Whereas  trade  arrangements,  in combination with  price 
arrangements, premiums  and  intervention  arrangements 
and  containing  a  system  of  import  duties,  should  serve 
to  stabilize  the  Community market; whereas this trading 
arrangement  is  based  on  the  agreements  concluded  in 
the  framework  of  the  Uruguay  Round  of  multilateral 
trade  negotiations, hereinafter  referred  to as the "GATT 
Agreement"; 

(26)  Whereas the competent authorities should be placed in a 
position to follow trade developments constantly in order 
to  appraise  market  developments  and,  when  necessary, 
the  possible  application  of  measures  provided  for  this 
Regulation;  whereas  to  that  end,  provision  should  be 
made for issuing import licences and, where appropriate, 
the  corresponding  export  licences providing  a  guarantee 
to  ensure  the  fulfilment  of  dealings  for  which  the  li 
cences  are  sought; 

(27)  Whereas  in  order  to  prevent  or  counteract  adverse  ef 
fects  on  the  market  in  the  Community  due  to  the  im 
portation  of  certain  agricultural  products,  the  import 
ation  of  one  or  more  of  these  products  must  be  subject 
to  additional  import  duties  if  certain  conditions  are  ful 
filled; 

(28)  Whereas  under  certain  conditions,  the  Commission 
should be empowered to open and administer tariff  quo 
tas  arising  under  the  GATT  Agreement; 

(29)  Whereas,  in  addition  to  the  system  described  above, 
provision  should  be made  to  the  extent  necessary for  its 
proper  working, prohibiting  in  whole  or  in  part,  when 
the  situation  on  the  market  so  requires,  the  use  of  in 
ward  or  outward  processing  arrangements; 

(30)  Whereas  the  customs  duty  arrangements  make  it  poss 
ible to dispense with all other protective measures at the 
external  frontiers  of  the  Community; whereas,  however, 
the  mechanism  of  common  prices,  customs  duties  and 
levies may, in exceptional circumstances, prove defective; 
whereas in such cases, so as not to leave the Community 
market  without  defence  against  disturbances  that  may 
consequently  arise,  the  import  barriers  that  previously 
existed  having been removed, the Community should be 
able  to  take  all  necessary  measures  without  delay; 
whereas  these  measures  must  be  in conformity  with trie 
obligations  arising from  the  GATT Agreement; 

(31)  Whereas  there  are  provisions  for  the  possibility  of 
measures  to  be  taken  when  a  substantial  price rise dis 
turbs  or  threatens  to  disturb  the  Community  market; 
whereas  the  situation  on  the  market  demands  that  such 
provision  be  extended  to cover  the  case of  a  substantial 
fall  in prices; 

(32)  Whereas  restrictions  on  free  movement  resulting  from 
the  application  of  measures  intended  to  prevent  the 
spread  of  animal  diseases  may  cause  difficulties  on  the 
market  of  one  or  more  Member  States; whereas provi 
sion  should  be made  for  the  introduction  of  exceptional 
market  support  measures  in  order  to  remedy  such  situ 
ations; 

(33)  Whereas,  in  order  to  facilitate  implementation  of  the 
proposed  measures,  a procedure  should  be provided  for 
establishing  close  cooperation  between  the  Member 
States  and  the  Commission  within  a  management  com 
mittee; 

11. 

3013/89 
(adapted) 

13. 

(adapted) 

14. 

(adapted) 

1855/74 
(adapted) 

15. 

3013/89 

16. 

(34)  Whereas  the  common  organization  of  the  market  in 
sheepmeat  and goatmeat  must take  appropriate  account 
of  the  objectives  set  out  in  both  Article  39  and  Article 
110 of  the  Treaty; 

(35)  Whereas  the  proper  working  of  the  internal  market 
based  on  a  common  price  system would  be jeopardized 
by  the  granting  of  certain  aids; whereas,  therefore,  the 
provisions  of  the  Treaty which  allow  the  assessment  of 
aid  granted  by  Member  States  and  the  prohibition  of 
that  which  is  incompatible  with  the  common  market 
should  be  made to  apply to  sheepmeat  and  goatmeat; 

(36)  Whereas  expenditure  incurred  by the  Member  States in 
carrying  out  obligations  under  this  Regulation  falls  to 
the  Community  in  accordance  with  Council  Regulation 
(EEC)  No  729/70 of  21 April  1970 on  the financing of 
the  common  agricultural policy  (l). 

HAS ADOPTED THIS REGULATION: 

17. 

3013/89 

18. 

(adapted) 

20. 

(adapted) 

(*)  OJ No L 94, 28.4.1970, p. 13. Regulation as last amended 
by Regulation  (EC) No 1287/95 (OJ  No L 125,  8.6.1995, 
p. 1). 

3013/89 
(adapted) 

3890/92 -  Art. 5(1) 
(adapted) 

Article 1 

CHAPTER I 

Scope 

Article  1 

The common organization of the market in sheepmeat and 
goatmeat  shall comprise a price system  and trading system 
and  cover  the  following products: 

CNcode 

Description 

(a) 010410 30 

Live lambs up to a year old 

01041080 

Live  other  sheep  other  than  purebred 
breeding animals 

0104 2090 

Live goats other  than  purebred  breeding 
animals 

0204 

Meat  of sheep  or  goats, fresh,  chilled  or 
frozen 

0210 9011 

Meat  of  sheep  and  goats, with  bone  in, 
salted, in brine, dried or smoked 

0210 90 19 

Meat of sheep and goats, boneless, salted, 
in brine, or smoked 

(b) 0104 10 10 

Live sheep — purebred breeding animals 

0104 2010 

Live goats — purebred breeding animals 

0206 8099 

Edible  offal  of  sheep  and goats, fresh  or 
chilled, other than for the manufacture of 
pharmaceutical  products 

0206 90 99 

Edible  offal  of  sheep  and  goats,  frozen, 
the  manufacture  of 
than  for 
other 
pharmaceutical  products 

0210 90 60 

Edible offal  of sheep and goats, salted, in 
brine, dried or smoked 

6X15Q2QQ9Q 

Fats of sheep or goats, other than those in 
No 15Q3 

1096/94 -  Art  1(2) -  1734/96 -  Art. 1 

(c)ifiû2J&LZZ 
16Q2 9Q74 

Other prepared or preserved meat or offal 
of sheep or goats, uncooked;  mixtures of 
cooked and uncooked meat or offal 

(d)16Q2 9Q7fi 
1602 90 78 

Other  prepared  or  preserved  offal  of 
sheep or goats 

1734/96 -  Art. 1 

1734/96 -  Art. 1 

10 

TITLE I 

Article 2 

AnkkA 

CHAPTER II 

Price, premium  and  intervention  arrangements 

3013/89 
(adapted) 

Article  2 

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

(a)  measures  to  improve  sheep and  goat  farming; 

(b)  measures  to  promote  better  organization  of  produc 

tion, processing  and  marketing; 

(c)  measures  to  improve  quality; 

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

(e)  measures  to  facilitate  the  recording  of  market  price 

trends. 

General  rules concerning these  measures shall be  adopted 
in  accordance  with  the  procedure  laid  down  in  Article  43 
(2) of  the Treaty. 

Article 3 

1. 
In  accordance  with  the  procedure  laid  down  in  Ar 
ticle  43  (2)  of  the  Treaty,  a  basic price  shall  be fixed an 
nually,  for  the  following  marketing  year,  for  fresh  and 
chilled  sheep  carcasses. 

2.  When  the  basic price  is fixed, account  shall  be  taken 
in particular  of: 

(a)  the situation on the sheepmeat market during the cur 

rent year; 

(b)  the  prospects  for  the  production  and  consumption  of 

sheepmeat; 

(c)  sheepmeat  production  costs; 

(d)  the  market  situation  in  the  other  livestock  product 

sectors, particularly  the  beef  and veal  sector; 

(e)  past  experience. 

The  Council,  acting  by a  qualified  majority  on  a  proposal 
from  the  Commission,  shall  fix  seasonally  adjusted  basic 
prices to take account of the normal seasonal variations on 
the  Community  market  in  sheepmeat. 

3.  Save where  a decision  to the contrary  is taken  by the 
Council, acting by a qualified  majority  on  a proposal  from 
the  Commission,  the  marketing  year  shall  begin  on  the 
first  Monday in January  and  shall  end  on  the  day preced 
ing that  day in  the  following  year. 

11 

3013/89 

Article 4 

(adapted) 

(adapted) 

Article 4 
1.  A weekly  average weighted  price  for  the  carcasses of 
sheep,  fresh  or  chilled,  on  the  representative  Community 
markets  shall  be  established  on  the  basis of  the  prices re 
corded  on  the  representative  market  or  markets  of  each 
quotation  area  for  the  Community  standard  quality  of 
fresh  or chilled sheep carcasses, account being taken of the 
relative  volume  of  total  sheepmeat  production  in  each 
quotation  area. 

Quotation  area  shall mean: 

—  Great  Britain, 

—  Northern  Ireland, 

—  every  other  Member  State  taken  separately. 

2.  The Community quotation for the standard quality re 
ferred  to in paragraph  1 shall be the most widespread pro 
duction, on  average throughout  the  Community, for  flocks 
specialized  in the production  of sheepmeat  which produce 
heavy lambs. 

The  Council,  acting by a qualified  majority  on  a Commis 
sion proposal, 

—  shall  determine  the  standard  quality, 

—  shall  lay  down  a  definition  of  lambs  which  are  fat 

tened  as heavy carcasses. 

3.  A producer  of light Iambs is to be  understood  as any 
sheep  farmer  marketing  sheep's  milk  products  based  on 
sheep's milk. All other sheep farmers  are to be  understood 
as producers  of  heavy lambs. 

4.  Member  States  shall  introduce,  to  the  Commission's 
satisfaction  and by the  1991 marketing year at  the  latest, a 
mechanism  for  differentiating  between producers  of  heavy 
lambs  and  producers of  light lambs. 

5.  Detailed  rules for  the  application  of  this Article  shall 
be  adopted  in accordance with the procedure  laid down in 
Article 25. 

Article 5 

Article 5 

1.  To  the  extent  necessary  to  offset  an  income  loss  by 
sheepmeat  producers  in  the  Community  during  a  market 
ing year,  a premium  shall  be  granted 

To this end, a single income loss shall be determined which 
shall  be  deemed  to  be  any  difference,  per  100  kilograms 
carcass weight,  between  the  basic price  referred  to  in  Ar 
ticle 3  (1)  and  the  arithmetic  mean  of  the  weekly  market 
prices  recorded  in  accordance with Article 4. 

12 

3013/89 
(adapted) 

2069/92  -  Art.  1(1) 

2.  The  premium  payable  per  ewe  to  the  producers  of 
heavy  lambs  referred  to  in  Article  4  (3)  shall  be  obtained 
by  multiplying  the  income  loss  referred  to  in  paragraph  1 
of  this Article  by a coefficient  expressing  for  the  Commun 
ity  as a whole  the  annual  average  production  of  meat  from 
heavy  lambs  per  ewe  producing  such  lambs,  expressed  per 
100  kilograms  carcass  weight. 

3.  The  amount  of  the  premium  payable  per  ewe  to  the 
producers  of  light  lambs  referred  to  in  Article  4  (3)  shall 
be  obtained  by  multiplying  the  income  loss  referred  to  in 
paragraph  1  of  this  Article  by  a  coefficient  representing 
80%  of  the  coefficient  determined  in  accordance  with  the 
provisions  of  paragraph  2  of  this  Article. 

4.  Each  producer  shall  receive  the  premium  calculated 
for  the  category  in which  he  is  classified.  However,  a pro 
ducer marketing sheep's milk or sheep's milk products will, 
if  he  can prove  that at least  40 % of  the  lambs born on  his 
holding  have  been  fattened  as  heavy  carcasses  with  a view 
to  their  slaughter,  be  able,  at  his  request,  to  receive  the 
premium  for  the  heavy  category,  in  proportion  with  the 
number  of  lambs  born  on  his  holding  which  are  fattened 
as  heavy  carcasses. 

5.  To  offset  an  income  loss  by  goatmeat  producers,  a 
premium  shall  be  granted: 

(adapted) 

(a)  firstly,  in  the  areas  indicated  in Annex  I, 

(b)  secondly,  in  the  mountain  and  hill  areas  within  the 
meaning  of  Article  23  (1)  of  Regulation  (EC)  No 
950/97,  other  than  the  areas  indicated  in  Annex  I  to 
this  Regulation,  provided  that  it  is  established  follow 
ing  the  procedure  laid  down  in  Article  25  that  the 
production  of  those  areas  meets the  following  two cri 
teria: 

—  goat  rearing  is  mainly  directed  towards  the  pro 

duction  of  goatmeat; 

—  goat  and  sheep  rearing  techniques  are  similar  in 

nature. 

The  premium  payable  per  she-goat  shall  be  80 % of  the 
amount  per  ewe  in  accordance  with  paragraph  2. 

2069/92  -  Art.  1(1) 

6.  Before  the  end  of  each  half-year,  the  Commission 
shall  —  in  accordance  with  the  procedure  laid  down  in 
Article  25  —  assess  the  foreseeable  income  loss  for  the 
entire  marketing  year  and  the  foreseeable  amount  of  the 
premium. 

On  the  basis  of  this  estimated  income  loss,  the  Member 
States shall  be  authorized  to pay all  their producers  a half-
yearly  advance  payment  of  30 % of  the  expected  premium. 

13 

Member  States may make provision  for  these two advance 
payments  to  take  the  form  of  a  single  payment  to  pro 
ducers  as of  the  end  of  the  second  half-year. 

3013/89 

The  amount  of  the  final  premium  shall  be  determined 
without delay after  the end of  the  marketing year in ques 
tion  and  not  later  than  31  March.  Before  15  October  of 
the  same  year,  any  balance,  where  appropriate,  shall  be 
paid. 

2069/92 -  Art  1(1) 

Premiums shall be paid to recipient producers on the basis 
of the number of ewes and/or she-goats kept on their hold 
ing  over  a  minimum  period  to  be  determined  in  ac 
cordance  with  the  procedure  laid  down  in Article 25. 

3013/89 

233/94 -  Art  1(1) 
(adapted) 

3013/89 

7.  Until  the  end  of  the  1994 marketing  year  premiums 
for  producers  of  sheepmeat  and  goatmeat  referred  to  in 
Article  5 shall  be  paid  at  the  full  rate  within  the  limit of 
1000 animals per producer in the less-favoured  areas with 
in  the  meaning  of  Article  3  (3),  (4)  and  (5)  of  Directive 
75/268/EEC  and  within  the  limit  of  500  animals  in  other 
areas. 

Outside  the  limits indicated  in  the  first  subparagraph,  the 
premiums payable  shall  until  the  end  of  the  1994 market 
ing year,  be fixed at  50 % of  the  amount  to be calculated. 

In  the  case  of  groups,  associations  or  other  forms  of 
cooperation  between producers, the  limits indicated  in the 
first subparagraph  shall  be  applied  individually  to  each of 
the  member  farmers. 

8.  The  Council, acting by a  qualified  majority  on  a pro 
posal  from  the  Commission,  shall  adopt  general  rules  for 
implementing  this  Article,  and  in  particular  shall  define 
which  producers  may  receive  the  premium  and  for  which 
ewes, and in  the  areas  specified  in paragraph  5, for which 
goats. 

The  Council,  by the  same  procedure: 

—  may  extend  the  premium  to  certain  mountain-breed 
ewes raised  in precisely  defined  areas presenting par 
ticularly difficult  production  conditions  that  do  not 
qualify  as  eligible  ewes:  in  such  cases  the  premium 
payable  shall be  70 % of  that  for  eligible  ewes in ac 
cordance with paragraph  2, 

—  may specify  that the premium  is to be granted only to 
producers  keeping  a minimum  number of ewes or, in 
the case of the  areas specified  in paragraph 5, a mini 
mum  number  of  ewes and/or  she-goats. 

9.  The  Commission,  acting  in  accordance  with  the  pro 
cedure  laid  down  in Article 25: 

14 

3013/89 

—  shall fix as appropriate  the  premium payable  per ewe 
to  the producers  specified  in paragraphs  2  and  3 per 
mountain-breed  female  within  the  meaning  of  para 
graph  8  and  per  she-goat  in  the  areas  specified  in 
paragraph  5, 

—  shall fix for  the  duration  of  each  marketing year  the 

coefficients  referred  to  in paragraph 2, 

—  shall adopt  implementing  rules for  this Article  cover 
ing, in particular,  the submission of premium  applica 
tions and  payment  of  the  premium. 

10.  Expenditure  under  the  arrangements  provided  for  in 
this Article  shall  be  deemed  to  form  part  of  intervention 
for  the purpose  of  stabilizing  agricultural  markets. 

Article  6 

2069/92 -  Art. 1(2) 

Article 5a 

1.  An individual  limit per producer  is hereby  introduced 
in  respect  of  the  grant  of  the  premium  provided  for  in 
Article 5. 

(adapted) 

In  the  case  of  producers  who  have  been  granted  the pre 
mium prior to the  1992 marketing year, the premium shall 
be paid for  the  1993 marketing year  and subsequent years 
within  the  limits  of  the  number  of  animals  for  which  the 
premium  has been paid  for  the  1991 marketing year, such 
number  being  multiplied  by the  coefficient  referred  to  in 
paragraph  5. 

is  higher  than  one, 
However,  where  this  coefficient 
Member  States may decide to  use, in whole or in part,  the 
additional  number  of  rights  to  the  premium  resulting 
therefrom  in order to stock the national reserve referred  to 
in Article  7 (1). 

These  limits  shall  be  reduced  in  such  a way  as  to  enable 
the national  reserve referred  to in Article  7 (1) to be con 
stituted. 

2. 
In  the  case  of  natural  circumstances  which  led  to  a 
non-payment  or to a reduced payment of the premium  for 
the  1991  marketing  year, 
the  number  of  animals 
corresponding  to  the  payments  made  during  the  most  re 
cent  marketing  year  shall  be  used.  In  the  case  of 
non-payment  of  the  premium  or  of  reduced  payment  for 
the  1991 marketing  year,  as  a  result  of  the  imposition  of 
penalties  provided  for  to  that  end,  the  number  recorded 
during  the  check  which  gave  rise  to  those  penalties  shall 
be  used. 

In  the  case  of  groups,  associations or  other  forms  of 
3. 
cooperation  between  producers,  the  limits  laid  down  in 
paragraph  1 shall be  applied  individually to each  associate 
member  in accordance with  the following  rule: 

15 

2069/92 -  Art. 1(2) 
(adapted) 

(a)  where  the group has notified  the competent  authority 
of  the  formula  for  apportioning  livestock  referred  to 
in Article 2 (2) of Commission  Regulation  (EEC)  No 
2385/91 (J)  in  respect  of  the  1991 marketing  year,  in 
accordance  with  Article  4  of  that  Regulation,  those 
limits shall  be fixed for  each  producer  member  using 
that  formula  as a basis; 

(b)  where  the  group  has  not  notified  the  competent 
authority  of  the  formula  for  apportionment  referred 
to  in  (a)  in  respect  of  the  1991  marketing  year,  the 
premium  shall  be paid  to  the  group in  respect  of  not 
more  than  the  number  of  animals  for  which  it  was 
granted  to  the  group  for  the  1991 marketing  year, in 
accordance  with  the  rules  laid  down  in  paragraph  1. 
An  individual  limit  shall  be fixed for  each  producer 
member  in respect  of the  1993 marketing year,  in ac 
cordance  with  the  allocation  formula  communicated 
by the group. 

In  the  event  of  subsequent  changes  in the  membership of 
the  group,  account  shall  be  taken,  when  the  premium  is 
paid  to the group, of the individual  limit of each  producer 
member who has joined  or  left  the group. 

4.  Entitlement  to  the  premium  shall  be  subject  to  the 
following  rules: 

(a)  The right to premium attaches to producers who have 
been  granted  the  premium  in  respect  of  the  1991 
marketing year  and who  have  also  applied  for  a pre 
mium,  under  the  1992 marketing year. 

(b)  When a producer sells or otherwise transfers  his hold 
ing, he may transfer  all his premium rights to the per 
son who takes  over  his holding. 

He may also transfer,  in whole or in part, his rights to 
other  producers without  transferring  his  holding. Ac 
cording  to  the  procedure  provided  for  in  Article  25, 
the Commission may draw up specific rules relating to 
the minimum number which could form  the subject of 
the partial  transfer. 

In  the case of  a transfer  without  transfer  of  the  hold 
ing, a part  of  the premium rights transferred,  not ex 
ceeding  15  %,  shall  be  surrendered  without  com 
pensation  to  the  national  reserve  of  the  Member 
State  where  his  holding  is  situated  for  free  distribu 
tion  to  new  entrants  or  other  priority  producers  re 
ferred  to in Article  7 (2). 

(*)  OJ No L 219, 7. 8. 1991, p.  15. 

16 

1265/95 -  Art. 
(adapted) 

1(1) 

2069/92 -  Art. 
(adapted) 

1(2) 

However,  with  effect  from  the  1995  marketing  year 
the  third  subparagraph  shall  not  apply  to  groups  of 
producers,  in the  case of  a transfer  of rights between 
members  of  the  same  group  of  producers  meeting 
conditions to be determined by the Commission in ac 
cordance  with 
in 
Article 25. 

the  procedure  provided 

for 

These  conditions  should  take  into  account  at  least: 

— 

the  status  of  the group members, 

— 

the  length  of  time  members  have  belonged  to 
and  participated  in  the group, 

— 

the  composition  of  the  group, 

to  the  extent  necessary  not  to jeopardize  the  applica 
tion of  the  third  subparagraph. 

(c)  Member  States: 

—  must  take  the  necessary  measures  to  avoid  pre 
mium  rights  being  moved  away  from  sensitive 
zones or regions where sheep production  is espe 
cially  important  for  the  local  economy, 

—  may provide  either that  the transfer  of  the rights 
without  transfer  of  the  holding is carried  out di 
rectly between the producers or  that  it  is carried 
out  through  the  intermediary  of  the  national  re 
serve. 

(d)  Member  States  may  authorize,  before  a  date  to  be 
fixed, temporary  leases  of  that  part  of  the  premium 
rights  which the producer who is entitled thereto does 
not  intend  to  use. 

(e)  Entitlement  to the premium  transferred  or temporari 
ly leased  to  a producer  shall  be  aggregated  with  that 
originally  granted  to him. 

(adapted) 

(f)  The  Commission  shall lay down the  detailed  rules for 
implementing  this  paragraph  in  accordance  with  the 
procedure provided for in Article 25, and in particular 
those rules which enable Member States to determine, 
bearing  in  mind  the  structure  of  their  flocks,  the  re 
duction  referred  to in paragraph  1 and those enabling 
Member  States  to  resolve specific  problems  linked  to 
the  transfer  of  premium rights by producers who do 
not  own  the  areas  on  which  their  holdings  are  si 
tuated. 

5.  For  the  purpose  of  applying  paragraph  1,  Member 
States  shall  establish  a single  coefficient  representing  the 
ratio  between: 

17 

2069/92 -  Art. 1 (2) 

(a) 

the total number of eligible animals conferring entitle 
ment to the premium present  at the beginning of one 
of  the  1989,  1990  or  1991  marketing  years  on  the 
holdings of  beneficiaries,  and 

(b)  the total number of eligible animals conferring entitle 

ment  to  the  premium  for  the  1991 marketing year. 

Member States shall inform  the Commission before  31 Oc 
tober  1992  of  the  year  which  they  have  chosen  for  the 
purpose  of point  (a). 

6.  Member  States  shall  recalculate  the  individual  limits 
in  such  a way that  quantities  above  the  limits  of  500 and 
1 000  animals  referred  to  in  Article  5  (7)  are  reduced  by 
50 %. These recalculated  limits shall apply with effect  from 
the  1995 marketing year. 

233/94 -  Art  1(2) 
(adapted) 

Article  7 

2069/92 -  Art. 1(2) 

Article 5b 

1.  Each  Member  State  shall  establish  an  initial  national 
reserve  equal  to  at  least  1 % and  at  most  3 % of  the sum 
of the individual limits applicable to producers whose hold 
ings are  situated  in its territory. The  national  reserve shall 
also receive  the  entitlements pursuant  to Article  6 (4) (b). 

For  Germany,  the  initial  national  reserve  shall  be  calcu 
lated  on  the  basis  of  the  total  number  of  the  sum  of  the 
individual  limits  applicable  to  producers  whose  holdings 
are  situated  in  the  former  German  Lander. This  reserve 
concerns  only those producers. 

In  addition,  for  Italy  and  Greece  a  special  reserve with  a 
ceiling  of  600 000  rights  for  each  of  those  two  Member 
States  shall  be  established  to  permit  the  granting  of  addi 
tional  rights  to  producers  affected  by  the  fact  that  the 
changes  in  the  conditions  of  eligibility  of  animals  for  the 
premium  and  the  introduction  of  individual  limits  on  the 
guarantee  per producer  based on the number of premiums 
paid  for  the  marketing year  both  occurred  in 1991. 

The  Commission  shall  verify  that  the  allocation  of  the 
additional rights to be provided  is to be limited to the pro 
ducers  concerned  and  that  those  producers  do  not  ulti 
mately  obtain  more rights than  would  have  been  granted 
to  them  if  the  situation  referred  to  in  the  third  subpara 
graph  had  not  occurred. 

Subject  to  that  verification  and  within  the  limit  of  the 
special  reserve  referred  to  in  the  third  subparagraph,  the 
national  reserve  established  pursuant  to  this  Article  shall 
be  increased  by  an  amount  corresponding  to  the  sum  of 
the  additional rights to  be granted;  that  increase  shall  not 
affect  the  additional  reserve  referred  to  in paragraph 3. 

1265/95 -  Art. 1(2) 
(adapted) 

18 

2.  Member  States  shall  use  their  national  reserves  to 
grant, within the  limits of  the  reserves, entitlements  to the 
following  producers  in  particular: 

(a)  producers  who  have  submitted  an  application  for  a 
premium  prior  to  the  1992  marketing  year  and who 
have  shown,  to  the  satisfaction  of  the  competent 
authority,  that  the  application  of  the  limits,  pursuant 
to  Article  6,  would  jeopardize  the  viability  of  their 
holdings, taking into consideration the implementation 
of  an  investment  programme  in  the  sheep  and  goat 
sector  drawn  up before  1 January 1993; 

(b)  producers who have submitted,  in respect of  the 1991 
marketing year,  an  application  for  a premium  which, 
owing 
to  exceptional  circumstances,  does  not 
correspond  to  the  true  situation  as  ascertained  in 
previous  marketing years; 

(c)  producers  who  have  regularly  submitted  an  applica 
tion  for  a  premium  without  having  submitted  an  ap 
plication  in  respect  of the  1991 marketing year; 

(d)  producers  who  submit  an  application  for  a  premium 
for  the first time in the 1993 or subsequent  marketing 
years; 

(e)  producers who have acquired part of an area  formerly 
used  for  sheep  and/or  goat  production  by  other 
producers. 

3.  An additional  reserve shall be created equal to 1 % of 
the sum of the limits of individual producers in the  less-fa 
voured  areas  of  each  Member  State;  this  reserve  shall  be 
allocated  exclusively  to  producers  in  these  same  areas  in 
accordance  with  criteria  to be  defined  by Member  States. 

For  Germany, the  additional  reserve  shall be equal to  1 % 
of  the  sum of  the  individual  limits  applicable  to producers 
whose  holdings  are  situated  in  the  less-favoured  areas  of 
the  former  German  Lander. This  reserve  concerns  only 
those  producers. 

4.  Without  prejudice  to  Article  6 (4)  (f),  detailed  rules 
for  the  application  of  Article  6  and  this  Article  shall  be 
laid  down  in  accordance  with  the  procedure  provided  for 
in Article 25. 

In  accordance  with  the  same  procedure  measures  appli 
cable  in  cases  where  the  national  reserve  in  a  Member 
State  is not  allocated  shall  be  adopted. 

2069/92 -  Art. 1(2) 

(adapted) 

Article  8 

1589/96 -  Art. 1(1) 

Article 5ç 

1.  By way of  derogation  from  Article  6 (1), for  the new 
Lander of  Germany; 

(a)  a regional  ceiling of one  million eligible  animals shall 

be  fixed; 

19 

(b)  Germany  shall  determine  the  conditions  for  the  dis 
tribution  of  this ceiling and  its regional  breakdown. 

1589/96 -  Art  1(1) 

2. 
In  the  territories  of  the  new  German  Lander,  not 
later  than  the  marketing  year  2000, Germany  shall  apply 
the provisions on individual  limits applicable  in the  rest of 
the  Community, subject  to the  provisions of  this Article. 

Germany shall notify the producers of their individual limit 
per  producer,  in  respect  of  the  granting  of  the  premium 
provided  for  in  Article  5.  The  individual  producer  limit 
shall  be  determined  on  the  basis  of  the  number  of  ewes 
for which premium was paid in the marketing year preced 
ing  the  year  in  which  notification  to  producers  of  their 
individual  limits was made. 

3. 
In  the  case  of  natural  circumstances  which  led  to  a 
non-payment  or  to  a  reduced  payment  for  the  reference 
year,  the  number  of  animals  corresponding  to  the  pay 
ments  made  during  the  most  recent  marketing  year  shall 
be used. In the case of non-payment of the premium  or of 
reduced  payment  for  the  reference  year, as a result  of  the 
imposition  of  penalties  provided  for  to  that  end,  the 
number recorded during the check which gave rise to those 
penalties  shall be  used. 

4. 
In  the  event  that  the  sum  of  the  individual  limits of 
producers whose holdings are situated  in the  new German 
Lander is less than  the  regional  ceiling fixed for  this terri 
tory,  the  remaining  rights  shall  be  added  to  the  German 
national  reserve, referred  to  in Article  7 (1). The  new re 
serve thus constituted shall be applicable in the entire Ger 
man  territory. 

5.  The  Commission  shall  lay down, if necessary,  the de 
tailed  rules  for  implementing  this  Article  in  accordance 
with  the procedure  provided  for  in Article 25. 

Article 9 

233/94 -  Art  1(3) 

Article 5d 

Member  States  may  apply  appropriate  environmental 
protection  measures  on  the  basis  of  the  specific  situation 
of  the  land  used  for  the  production  of  sheep  and  goats 
eligible  for  benefit  under  the  premium  scheme. 

(adapted) 

Member  States  which  avail  themselves  of  this  possibility 
shall  impose  penalties  appropriate  to  and  commensurate 
with the seriousness of the ecological consequences of any 
breach  of  these  measures. Such  penalties  may provide  for 
the  reduction  or,  where  necessary,  the  abolition  of  the 
the  respective  premium  schemes. 
benefits 
the  Commission  of  the 
Member  States  shall  inform 
measures  they take  pursuant  to  this Article. 

linked 

to 

20 

Article  10 

95/1/EC, Euratom, ECSC 

Article 5e 

1.  By  way  of  derogation  from  Article  6  (1),  (2),  (3), 
(4) (a),  (5)  and  (6),  an  overall  ceiling for  the  granting  of 
the  premium  referred  to  in Article  5 shall  be set  for  Aus 
tria,  Finland  and  Sweden.  The  total  number  of  entitle 
ments within  that  ceiling shall be set  at: 

(adapted) 

—  205 651 for  Austria, 

—  80000 for  Finland, 

—  180 000 for  Sweden. 

These  figures  include  both  the  quantities  to  be  allocated 
initially  and  any  reserve  established  by  these  Member 
States. 

2.  On  the  basis  of  the  ceilings  set  out  in  paragraph  1 
individual  limits shall  be  assigned  to producers  in Austria, 
Finland  and  Sweden,  at  the latest  on: 

—  31 December  1996 for  Austria, 

—  31 December  1995 for  Finland  and  Sweden. 

3.  The  Commission  shall  adopt  detailed  implementing 
rules  for  this  Article,  and  in  particular  the  necessary  ad 
justing  and  transitional  measures,  in  accordance  with  the 
procedure  laid  down in Article 25. 

Article  11 

3013/89 

AiûeteA 

Aaktl 

Intervention  measures  may take  the  form  of  private  stor 
age  aid for  carcasses of  lambs and  cuts thereof. 

1.  Where: 

Article  12 

— 

— 

the  price  established  in  accordance with  Article  4 on 
the  one  hand,  and 

the  market  price  in  a  quotation  area  referred  to  in 
Article  4 (1)  on  the  other  hand, 

are  lower than 90 % of the seasonally adjusted  basic price 
referred  to in Article 3 (2) and if they are likely to remain 
so, a decision may be taken to grant private storage  aid as 
provided for in Article  11 to the quotation area  concerned. 

2.  Where: 

1589/96 -  Art. 1(2) 

— 

— 

the price  established  in accordance with Article 4, on 
the  one  hand,  and 

the  market  price  in  a  quotation  area,  on  the  other 
hand, 

21 

1589/96 -  Art  1 (2) 

are  less  than  70  %  of  the  seasonally  adjusted  basic price 
and  are  likely  to  remain  at  that  level,  the  private  storage 
aid  provided  for  in  Article  11 may  be  brought  in  for  the 
quotation  area  in  question.  In  this  case,  aid  shall  be 
introduced  in  the  framework  of  a  tendering  procedure. 

However, it may be decided  to grant  aid in the  framework 
of  an  advance fixing procedure  where  urgent  recourse  to 
private  storage  proves  necessary  in  the  light  of  a  particu 
larly  difficult  market  situation  in  one  or  more  quotation 
areas. In such cases, this procedure  may only be applied to 
those  quotation  areas  where  such  a  market  situation  has 
been  established. 

3.  The  Council,  acting by a qualified  majority  on  a pro- 
posai  from  the  Commission,  shall  adopt  general  rules  for 
the  application  of  this Article. 

3013/89 

4.  The  procedure  laid  down  in Article  25 shall  be  used 
to  determine: 

(a) 

the  products  and  product  qualities  admitted  for  pri 
vate  storage; 

(b)  initiation  of  action  under paragraphs  1 and  2. 

I  1741/91 -  Art. 1 

(c) 

the  private  storage  aid,  the  quantities  accepted  and 
termination  of  the period in respect of which aid may 
be  granted; 

3013/89 

(d)  other  rules  for  the  implementation  of  this Article, in 
particular the  circumstances  in which the  intervention 
measures will  be  applied. 

Article  13 

AûkkA 

1.  The  maximum  guaranteed  level  is  hereby  fixed  at 
63 400 000 head  of ewes. 

2.  For  each  marketing year: 

— 

if the estimate of ewe numbers for  the marketing year 
exceeds  the  maximum  guaranteed  level  for  that year, 
the  premium  provided  for  in  Article  5  shall  be  re 
duced  for  both  ewes  and  she-goats  by  the  effect  on 
the  basic price  of  a coefficient  representing  a  reduc 
tion  of  1  %  for  each  1  %  by  which  the  maximum 
guaranteed  level  is extended; 

22 

—  where the mechanism provided for  in the first indent, 
applied  to  the  actual  ewe  numbers  recorded  for  the 
preceding  marketing year,  leads  to  a premium  differ 
ent from  that calculated, the correction shall be made 
at  the time of fixing the  definitive  premium  for  ewes 
for  the  marketing  year  in  question  or,  failing  that, 
shall  be  included  in  the  calculation  of  the  premium 
for  the  following  marketing year. 

3013/89 

When the ewe herd is estimated, no account shall be taken 
of  the  number  of  ewes bred  in the  territory  of  the  former 
German  Democratic  Republic. 

3577/90 -  Art  1 

3.  Detailed  rules  for  the  application  of  this Article,  and 
in particular the coefficient  and the premium referred  to in 
paragraph  2, shall  be adopted  in accordance with the pro 
cedure  laid down in Article 25. 

3013/89 

4.  However,  from  the  1993 marketing  year,  the  coeffi 
cient  for  reducing  the  basic  price  referred  to  in  para 
graph 2 shall  be  7 %. 

2069/92 -  Art. 1(3) 

CHAPTER HI 

Trade with third  countries 

Article  14 

3290/94 -  Art. 1 

TITLE II 

Article 9 

Imports into the Community, or exports therefrom,  of 
1. 
any  of  the  products  listed  in  Article  1 may  be  subject  to 
presentation  of  an  import  or  export  licence. 

Licences  shall  be  issued  by the  Member  States  to  any ap 
plicant,  irrespective  of  his  place  of  establishment  in  the 
Community  and  without  prejudice  to  measures  taken  for 
the  application  of Article 17. 

Import  and  export  licences  shall  be  valid  throughout  the 
Community. The issuing of such licences may be subject  to 
the  lodging  of  a  security  guaranteeing  that  the  products 
are imported or exported during the term of validity of the 
licence; except  in cases of force majeure,  the  security shall 
be  forfeited  in whole  or  in part  if  import  or  export  is not 
carried  out,  or  is  carried  out  only  partially,  within  that 
period. 

2.  The  list of products  for  which  export  licences  are re 
quired,  the  term  of validity of  licences  and  other  detailed 
rules for  the  application  of this Article shall be adopted in 
accordance with  the  procedure  laid  down  in Article 25. 

Article  15 

AukkM 

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

23 

Article  16 

3290/94 -  Art. 1 

Article 11 

1. 
In  order  to  prevent  or  counteract  adverse  effects  on 
the  market  in  the  Community  which  may  result  from  im 
ports of certain products listed in Article  1, imports of one 
or  more  of  such products  at  the  rate  of  duty laid  down in 
Article  10 shall be subject  to payment of an additional im 
port  duty  if  the  conditions  set  out  in  Article  5  of  the 
Agreement  on  Agriculture  concluded  in  accordance  with 
Article 228 of the Treaty in the framework  of the  Uruguay 
Round  of  multilateral  trade  negotiations  have  been  ful 
filled  unless  the  imports  are  unlikely  to  disturb  the  Com 
munity  market,  or  where  the  effects  would  be  dispropor 
tionate  to  the  intended  objective. 

2.  The  trigger  prices  below  which  an  additional  duty 
may be imposed shall be those which are forwarded  by the 
Community  to the World  Trade  Organization. 

The  trigger  volumes  to  be  exceeded  in  order  to  have  the 
additional  import  duty  imposed  shall  be  determined  par 
ticularly  on the basis of imports into the Community in the 
three years preceding the year in which the adverse  effects 
referred  to in paragraph  1 arise or  are  likely to arise. 

3.  The  import  prices  to  be  taken  into  consideration  for 
imposing an additional import duty shall be determined on 
the basis of the cif import prices of the consignment  under 
consideration. 

Cif  import  prices  shall  be  checked  to  that  end  against  the 
representative  prices for  the product  on  the world  market 
or  on  the  Community import  market  for  that  product 

4.  The Commission shall adopt detailed rules for  the ap 
plication  of  this Article  in  accordance  with  the  procedure 
laid down in Article 25. Such detailed  rules shall specify  in 
particular: 

(a) 

the products to which additional import duties may be 
applied  under  the  terms  of  Article  5  of  the  Agree 
ment  on Agriculture; 

(b)  the  other  criteria  necessary  to  ensure  application  of 
paragraph  1  in  accordance  with  Article  5  of  the 
Agreement  on  Agriculture. 

Article  17 

AffcIeJ2 

(adapted) 

1.  Tariff  quotas  for  the  products  listed  in  Article  1 re 
sulting  from  agreements  concluded  in  the  framework  of 
the Uruguay Round of multilateral  trade  negotiations shall 
be  opened  and  administered  in  accordance  with  detailed 
rules adopted under the procedure  laid down in Article 25. 

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

(a)  method  based  on  chronological  order  of  the  lodge 
ment  of  applications  ('first-come,  first  served'  prin 
ciple), 

24 

3290/94 -  Art 1 

(adapted) 

(b)  method of distribution  in proportion  to the  quantities 
requested  when  the  applications  were  lodged  (using 
the  'simultaneous examination  method'), 

(c)  method based on taking traditional trade patterns into 
account  (using the  'traditional/new arrivals method'). 

Other  appropriate  methods may be  adopted. 

They must avoid any discrimination  between the  operators 
concerned. 

3.  The  methods  of  administration  adopted  shall,  where 
appropriate, give due weight to the supply requirements of 
the  Community  market  and  the  need  to  safeguard  the 
equilibrium  of  that  market,  whilst  at  the  same  time  pos 
sibly drawing on methods which may have been  applied  in 
the  past  to  quotas  corresponding  to  those  referred  to  in 
paragraph  1, without prejudice  to the  rights resulting  from 
agreements  concluded  in  the  framework  of  the  Uruguay 
Round  multilateral  trade  negotiations. 

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

(a)  guarantees covering the nature, provenance and origin 
of  the  product  and, where  appropriate,  the  mainten 
ance  of  traditional  trade patterns; 

(b)  recognition  of  the  document  used  for  verifying  the 

guarantees  referred  to in (a); and 

(c) 

the conditions  under which import licences are  issued 
and  their  term  of validity. 

Article  18 

Ankkll 

1.  To the extent necessary for  the proper working of the 
common  organization  of  the  market  in  sheepmeat  and 
goatmeat  products, the  Council, acting in accordance with 
the  voting  procedure  laid  down  in  Article  43  (2)  of  the 
Treaty on a proposal from  the Commission, may, in special 
cases, prohibit  in whole  or  in part  the  use  of  inward  pro 
cessing  arrangements  in  respect  of  products  listed  in  Ar 
ticle 1. 

2.  By way  of  derogation  from  paragraph  1, if  the  situ 
ation  referred  to  in  paragraph  1  arises  with  exceptional 
urgency  and  the  Community  market  is  disturbed  or  is li 
able to  be  disturbed  by the  inward  or  outward  processing 
arrangements,  the  Commission  shall,  at  the  request  of  a 
Member  State  or  on  its  own  initiative,  decide  upon  the 
necessary  measures;  the  Council  and  the  Member  States 
shall be notified  of such measures, which shall be valid  for 
no  more  than  six months  and  shall  be  immediately  appli 
cable.  If  the  Commission  receives  a  request  from  a 
Member  State,  it  shall  take  a  decision  thereon  within  a 
week  following  receipt  of  the  request. 

25 

3.  Measures  decided  on  by the  Commission  may be  re 
ferred  to  the  Council  by any Member  State within  a week 
of  the  day on which  they were notified.  The  Council,  act 
ing by a  qualified  majority,  may confirm,  amend  or  repeal 
the  Commission  decision.  If  the  Council  has  not  acted 
within  three  months,  the  Commission  decision  shall  be 
deemed  to have  been  repealed. 

3290/94 -  Art 1 

Article  19 

Article 14 

1.  The  general  rules  for  the  interpretation  of  the  com 
bined  nomenclature  and  the  detailed  rules  for  its  applica 
tion  shall  apply  to  the  tariff  classification  of  products 
covered  by  this  Regulation;  the 
tariff  nomenclature 
resulting  from  the  application  of  this  Regulation  shall  be 
incorporated  into  the  Common  Customs  Tariff. 

2.  Save  as otherwise  provided  for  in  this  Regulation  or 
in provisions adopted pursuant thereto, the following  shall 
be prohibited  in trade with  third  countries: 

(a)  the  levying of any charge having equivalent effect  to a 

customs  duty, 

(b)  the  application  of  any  quantitative  restriction  or 

measure  having equivalent  effect. 

Article  20 

Article 15 

1. 
If,  by reason  of  an increase in imports or exports, the 
Community  market  in  one  or  more  of  the  products  listed 
in  Article  1 is  affected  by,  or  is  threatened  with,  serious 
disturbance  likely to jeopardize the achievement of the ob 
jectives  set  out  in  Article  39  of  the  Treaty,  appropriate 
measures may be applied in trade with third countries until 
such  disturbance  or  threat  of disturbance  has  ceased. 

The  Council, acting  on  a  Commission  proposal  in  accord 
ance with  the voting procedure laid down in Article 43 (2) 
of  the Treaty, shall  adopt general  rules for  the  application 
of  this  paragraph  and  shall  define  the  circumstances  and 
limits  within  which  Member  States  may  adopt  protective 
measures. 

2. 
If  the  situation  referred  to in paragraph  1 arises, the 
Commission  shall, at the  request of a Member  State or on 
its own initiative, decide upon the necessary measures; the 
Member  States  shall  be  notified  of  such  measures, which 
shall  be  immediately  applicable.  If  the  Commission  re 
ceives a request from  a Member  State, it shall take a deci 
sion thereon within three working days following receipt of 
the  request 

3.  Measures  decided  upon  by  the  Commission  may  be 
referred  to the  Council by any Member  State within  three 
working  days of  the  day on which they were  notified.  The 
Council shall meet without delay. It may, acting by a quali 
fied majority,  amend  or  annul  the  measure  in  question. 

4.  This  Article  shall  be  applied  having  regard  to  the 
obligations  arising  from  agreements  concluded  in  accord 
ance with Article  228 (2) of the Treaty. 

26 

CHAPTER  IV 

General  provisions 

Article  21 

In order  to  take  account  of  any restrictions  on  free  move 
ment which  might  result  from  the application  of  measures 
to  prevent  the  spread  of  animal  diseases,  exceptional 
measures  to  support  any  market  affected  by  such  restric 
tions may be taken  under  the  procedure  laid  down  in Ar 
ticle 25, but only to the  extent  that  and for  such period  as 
is strictly necessary for  the  support  of  that  market 

Article  22 

Save as otherwise provided  in this Regulation, Articles 92, 
93 and  94 of  the  Treaty  shall  apply  to  the  production  of, 
and  trade  in,  the  products  listed  in  Article  1  of  this 
Regulation. 

Article  23 

Member  States and the  Commission  shall  communicate  to 
each other the information  necessary for implementing this 
Regulation. 

Rules  for  the  communication  and  distribution  of  such  in 
formation  shall  be  adopted  in  accordance  with  the  pro 
cedure  laid  down  in Article 25. 

3013/89 

TITLE W 

Article 26 

Article 27 

Aûkk2S. 

Article  24 

Article 29 

A  Management  Committee  for  Sheep  and  Goats  (herein 
after  called 'the Committee') is hereby set up, consisting of 
representatives of the Member States with a representative 
of  the  Commission  as chairman. 

(adapted) 

Article  25 

Article  30 

1.  Where  the  procedure  laid  down  in  this  Article  is  to 
be  followed,  the  chairman  shall  refer  the  matter  to  the 
Committee  either on his own initiative or at the request of 
the  representative  of  a  Member  State. 

2.  The  representative  of the Commission  shall submit to 
the  Committee  a  draft  of  the  measures  to  be  taken.  The 
Committee  shall  deliver  its  opinion  on  the  draft  within  a 
time limit which the  Chairman  may lay down according to 
the  urgency  of  the  matter.  The  opinion  shall  be  delivered 
by the  majority  laid  down  in Article  148 (2)  of  the  Treaty 
in  the  case  of  decisions  which  the  Council  is  required  to 
adopt  on  a  proposal  from  the  Commission.  The  votes  of 
the  representatives  of  the  Member  States within the Com 
mittee shall  be weighted  in the  manner  set out  in that Ar 
ticle. The  Chairman  shall  not vote. 

95/1/EC, Euratom, ECSC 

27 

Article 31 

Article 32 

Article 33 

3013/89 

The  Commission  shall  adopt  measures  which  shall  apply 
immediately. However, if these measures are not in accord 
ance with  the  opinion  of  the  Committee, they shall  forth 
with be  communicated  by the  Commission  to  the Council. 
In  that  event the  Commission  may, for  not more than  one 
month  from  the  date  of  such  communication,  defer  ap 
plication  of  the  measures which  it  has  adopted. 

The  Council,  acting  by  a  qualified  majority,  may  take  a 
different  decision within  one  month. 

Article  26 

The  Committee  may consider  any other  question  referred 
to  it  by its chairman  either  on  his own initiative  or  at  the 
request  of  the  representative  of  a Member  State. 

Article  27 

This  Regulation  shall  be  so  applied  that  appropriate  ac 
count  is taken  of  the  objectives  set  out  in both Article  39 
and  Article  110 of  the Treaty. 

Article  28 

Annex  I  may  be  amended  by  the  Council,  acting  by  a 
qualified  majority  on  a proposal from  the  Commission. 

Article  29 

Regulation  (EEC)  No 3013/89 is hereby  repealed. 

References  to  the  said  Regulation  shall  be  construed  as 
references  to  this  Regulation  and  should  be  read  in  ac 
cordance  with  the  correlation  table  set  out  in  Part  A  of 
Annex  n. 

Article  30 

This Regulation enters into force  on the day of its publica 
tion in  the  Official Journal of the European  Communities. 

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

Done  at  Brussels, 

For the  Council 

The President 

28 

ANNEX I 

3013/89 

1.  FRANCE: 

Corsica. 

2.  GREECE: 

the whole country. 

3.  ITALY: 

4.  SPAIN: 

Lazio, Abruzzo, Molise, Campania, Apu 
lia,  Basilicata,  Calabria,  Sicily  and 
Sardinia. 

the autonomous communities of Andalu 
sia, Aragon, the Balearic Islands, Castile-
La Mancha, Castile-Leôn, Catalonia, Ex-
tremadura, Galicia (with the exception of 
the  provinces  of  Corona  and  Lugo), 
Madrid,  Murcia,  La  Rioja,  Comunidad 
Vaienciana and the Canary Islands. 

5.  PORTUGAL: 

the whole country, with the exception of 
the Azores and Madeira. 

1601/92 -  Art. 14 (adapted) 

29 

ANNEX II 

Part A 

CORRELATION  TABLE 

Regulation  3013/89 

This Regulation 

— 

Article 1 

— 

Article 2 

Tide I 

Article 3 

Article 4 

CHAPTER I 

Article 1 

CHAPTER II 

Article 2 

— 

Article 3 

Article 4 

Article 5 (1) to (4) 

Article 5 (1) to (4) 

Article 5 (5), 1st subparagraph, 1st indent 

Article 5 (5), 1st subparagraph, (a) 

Article 5 (5), 1st subparagraph, 2nd indent 

Article 5 (5), 1st subparagraph, (b) 

Article 5 (5), 1st subparagraph, 2nd indent, (a) 

Article 5 (5), 1st subparagraph, (b), 1st indent 

Article 5 (5), 1st subparagraph, 2nd indent, (b) 

Article 5 (5), 1st subparagraph, (b), 2nd indent 

Article 5 (5), 2nd subparagraph 

Article 5 (5), 2nd subparagraph 

Article 5 (6) to (10) 

Article 5a (1), (2) and (3) 

Article 5a (4) (a) to (d) 

Article 5a (4) (e), 1st subparagraph 

Article 5a (4) (e), 2nd subparagraph 

Article 5a (4) (f) 

Article 5a (5) 

Article 5a (6) 

Article 5b (1), 1st subparagraph 

Article 5b (1), 2nd subparagraph 

Article 5b (1), 3rd subparagraph 

Article 5b (1), 4th subparagraph 

Article 5b (1), 5th subparagraph 

Article 5b (1), 6th subparagraph, first part of sentence 

Article 5 (6) to (10) 

Article 6 (1), (2) and (3) 

Article 6 (4) introductory phrase and points (a) to (d) 

Article 6 (4) (e) 

— 

Article 6 (4) (f) 

Article 6 (5) 

Article 6 (6) 

Article 7 (1), 1st subparagraph 

Article 7 (1), 2nd subparagraph 

Article 7 (1), 3rd subparagraph 

— 

— 

— 

Article 5b (1), 6th subparagraph, the part of the sentence  Article 7 (1), 4th subparagraph 
starting from  the 2nd comma 

Article 5b (1), 7th subparagraph 

Article 7 (1), 5th subparagraph 

Article 5b (2) 

Article 5b (3) 

Article 7 (2) 

Article 7 (3) 

Article 5b (4), 1st subparagraph 

Article 7 (4), 1st subparagraph 

Article 5b (4), 2nd subparagraph, 1st indent 

Article 7 (4), 2nd subparagraph 

30 

Regulation  3013/89 

This  Regulation 

Article 5b (4), 2nd subparagraph, 2nd indent 

Article 5b (5) 

Article 5c 

Article 5d 

Article 5e 

Articles 6, 7 and 8 

Title H 

Articles 9,10 and 11 

Article 12 (1) 

— 

— 

Article 8 

Article 9 

Article 10 

Articles 11,12 and 13 

CHAPTER  m 

Articles 14,15 and 16 

Article 17 (1) 

Article 12 (2), 1st subparagraph, 1st indent 

Article 17 (2), 1st subparagraph, point (a) 

Article 12 (2), 1st subparagraph, 2nd indent 

Article 17 (2), 1st subparagraph, point (b) 

Article 12 (2), 1st subparagraph, 3rd indent 

Article 17 (2), 1st subparagraph, point (c) 

Article 12 (2), 2nd subparagraph 

Article 12 (2), 3rd subparagraph 

Article 17 (2), 2nd subparagraph 

Article 17 (2), 3rd subparagraph 

Article 12 (3) 

Article 12 (4) 

Article 13 

Article 14 (1) 

Article 14 (2), 1st indent 

Article 14 (2), 2nd indent 

Article 15 

Title IE 

Articles 21 to 25 

Title IV 

Article 26 

Article 27 

Article 28 

Article 29 (1) 

Article 29 (2) 

Article 30 

Article 31 

Article 32 

Article 33 

Annex 

Article 17 (3) 

Article 17 (4) 

Article 18 

Article 19 (1) 

Article 19 (2), point (a) 

Article 19 (2), point (b) 

Article 20 

CHAPTER IV 

Article 21 

Article 22 

Article 23 

Article 24 

Article 25 

Article 26 

Article 27 

Article 28 

Article 29 

Article 30 

Annex I 

Annex II 

31 

Part B 

Regulations amending Regulation (EEC) No 3013/89 

Council  Regulation  (EEC)  No 3577/90 of  4 December  1990 

Council  Regulation  (EEC)  No  1741/91 of  13 June  1991 

Council  Regulation  (EEC)  No .1601/92 of  15 June  1992 

Council  Regulation  (EEC)  No 2069/92 of  30 June  1992 

Commission  Regulation  (EEC)  No 3890/92 of  28 December  1992 

Council Regulation  (EEC)  No 363/93 of  10 February  1993 

Council  Regulation  (EC) No 233/94 of  24 January  1994 

Commission  Regulation  (EC)  No  1096/94 of  11 May 1994 

Council  Regulation  (EC)  No  1886/94 of  27 Jury 1994 

Council  Regulation  (EC)  No 3290/94 of  22 December  1994 

Council  Regulation  (EC)  No  1265/95 of  29 May 1995 

Council  Regulation  (EC)  No  1589/% of  30 Jury 1996 

Official  Journal 

No 

page 

date 

L 353 

L 163 

L 173 

L 215 

L 391 

L42 

L 30 

L121 

L 197 

L 349 

L 123 

L 206 

23 

41 

13 

59 

51 

1 

9 

9 

30 

105 

1 

25 

17.12.1990 

26. 6.1991 

27. 6.1992 

30. 7.1992 

31.12.1992 

19.2.1993 

3.2.1994 

12.5.1994 

30. 7.1994 

31.12.1994 

3. 6.1995 

16.8.1996 

32 

ISSN 0254-1475 

COM(98) 88  final 

DOCUMENTS 

EN 

03  10  oi 

Catalogue number  :  CB-CO-98-093-EN-C 

ISBN 92-78-31174-X 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

as