Council Regulation (EC) No 2467/98 of 3 November 1998 on the common organisation of the market in sheepmeat and goatmeat
Date: 1998-11-03
Institutions: Council of the European Union
Subjects: agricultural guidance, common organisation of markets, goatmeat, prices policy, sheepmeat, trade policy

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I

(Acts  whose  publication  is  obligatory)

COUNCIL  REGULATION  (EC)  No  2467/98

of  3  November  1998

on  the  common  organisation  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  from  the  Commission,

Having  regard 
Parliament (1),

to 

the  opinion  of 

the  European

Having regard to the opinion of the Economic and Social
Committee (2),

(1)  Whereas  Council  Regulation  (EEC)  3013/89  of  25
September  1989  on  the  common  organisation  of
the market in sheepmeat and goatmeat (3) has been
frequently  and  substantially  amended (4);  whereas
for  reasons  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  involving  common  organisation
of  the  agricultural  markets;  whereas  the  form  of
such  organisation  may  vary  from  one  product  to
another;

(3)  Whereas, in order to attain the objectives set out in
Article  39  of  the  Treaty,  in  particular  market

(1)  OJ  C  313,  12.10.1998.
(2)  OJ  C  214,  10.7.1998,  p.  72.
(3)  OJ  L  289,  7.10.1989,  p.  1.  Regulation  as  last  amended  by
Regulation  (EC)  No  1589/96  (OJ  L  206,  16.8.1996,  p.  25).

(4)  See  Annex  II,  Part  B.

retain 

certain 

stability  and  a  fair  standard  of  living  for  the
agricultural  community  concerned,  it  is  necessary
to 
facilitating
adjustment  of  supply  to  market  requirements;
whereas,  in  particular,  Community  sheepmeat  and
goatmeat  producers  should  continue  to  be  granted
a  premium  to  compensate  for  loss  of  income,  and
intervention  measures  should  be  continued;

arrangements 

(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;

(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  specialisations  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
Directive  75/268/EEC (5)  and  to  500  animals  per
producer  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;

(5)  OJ L 128, 19.5.1975, p. 1. Directive replaced by Regulation

(EC)  No  950/97  (OJ  L  142,  2.6.1997,  p.  1).

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(7)  Whereas  the  upward  trend  in  ewe  numbers  in  the
Community  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  stabilisers,  this  trend  has  nevertheless
resulted  in  an  increase  in  production  and  in
EAGGF  expenditure;

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

for 

each  Member 

(9)  Whereas,  in  order  to  take  account  of  trends  in
production  throughout  the  Community,  this  total
should  however  be  multiplied  by  a  coefficient
established 
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 
special
provisions  should  be  adopted  for  Germany  in
order  to  take  account  of  certain  specific  problems
in  the  new  Länder;

year;  whereas,  however, 

State 

(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 
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
reserve  in  less-favoured  areas;

from  entitlement 

to 

capacity  of 

should  be  made 

(11)  Whereas  changes  in  production  may  be  made
necessary  by  possible  alterations  to  the  assets  or
recipients;  whereas,
production 
therefore,  provision 
that
entitlements  to  the  premium  acquired  in  respect  of
individual  limits  may  be  transferred  under  certain
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  particular,  rights  for  new
entrants;

(12)  Whereas,  in  order  to  take  account  of  the  fact  that
producers  should  be  permitted  to  reduce  their
production for a limited period, it is appropriate to
authorise 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  production  especially  in  areas  where  there  is
no  other  alternative;

(14)  Whereas  the 

individual  ceiling  placed  on  the
premium  per  producer  leads  to  a  limitation  of  the
number  of  eligible  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, therefore, provision should
be  made  for  the  possibility  of  rectifying  individual
limits;

therefore, 

reasons  of 

(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  producers,  in  particular
family  groups,  during  the  transfer  of  premium
rights  between  members  of  the  said  groups;
whereas, 
correct
for 
administration,  provision  should  be  made  for
certain  groups  to  be  exempted,  under  certain
conditions,  from  payment  to  the  national  reserve
of the percentage of rights provided 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  allocated  in
each  Member  State,  nor  give  rise  to  the  formation
of  new  producer  groups  created  with  the  sole  aim
of  avoiding  payment  to  the  national  reserve  of  the
percentage  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  application
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

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should  be  created  for  Italy  and  for  Greece
corresponding  to  the  estimated  maximum  number
of  rights  which  the  producers  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
regions  most  affected,  the  national  reserves  will  be
increased  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  remain  in  the  new  Länder;

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

sheepmeat  and  goatmeat, 

(20)  Whereas,  within  the  framework  of  the  production
of 
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;

(22)  Whereas,  as  a  general  rule,  whenever  certain
market  price  criteria  are  met  the  decision  to  grant
private  storage  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 storage proves necessary
in  the  light  of  a  particularly  difficult  market

is 

therefore  necessary 

situation  in  one  or  more  quotation  areas;  whereas
it 
the
Commission 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;

to  authorise 

(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  Community  market  and  the
commitments,
international 
Community’s 
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 situation; 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
provision  should  be  made 
its  eventual
revision;

for 

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

in 

(25)  Whereas  trade  arrangements,  in  combination  with
price  arrangements,  premiums  and  intervention
arrangements  and  containing  a  system  of  import
duties,  should  serve  to  stabilise  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’.

in 

to 

order 

(26)  Whereas  the  competent  authorities  should  be
placed  in  a  position  to  follow  trade  developments
constantly 
appraise  market
developments  and,  when  necessary,  the  possible
application  of  measures  provided  for 
in  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  licences  are  sought;

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(27)  Whereas  in  order  to  prevent  or  counteract  adverse
effects on the market in the Community due to the
importation  of  certain  agricultural  products,  the
importation of one or more of these products must
be  subject  to  additional  import  duties  if  certain
conditions  are  fulfilled;

(28)  Whereas under certain conditions, the Commission
should be empowered to open and administer tariff
quotas  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 
inward  or  outward
processing arrangements;

frontiers  of 

the  external 

(30)  Whereas  the  customs  duty  arrangements  make  it
possible  to  dispense  with  all  other  protective
measures  at 
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
the
previously  existed  having  been  removed, 
Community  should  be  able  to  take  all  necessary
measures  without  delay;  whereas  these  measures
must  be  in  conformity  with  the  obligations  arising
from  the  GATT  Agreement;

introduction  of 
measures  in  order  to  remedy  such  situations;

exceptional  market 

support

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

establishing 

close 

for 

(34)  Whereas  the  common  organisation  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
jeopardised  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
in  carrying  out  obligations  under  this
States 
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 (1),

(31)  Whereas  there  are  provisions  for  the  possibility  of
measures  to  be  taken  when  a  substantial  price  rise
disturbs  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  provisions  should  be  made  for  the

HAS  ADOPTED  THIS  REGULATION:

CHAPTER  I

Scope

Article  1

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

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

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CN  code

Description

(a)

0104 10 30

Lambs  (up  to  a  year  old)

0104 10 80

Live  other  sheep  other  than  pure-bred  breeding  animals

0104 20 90

Live  goats  other  than  pure-bred  breeding  animals

0204

Meat  of  sheep  or  goats,  fresh,  chilled  or  frozen

0210 90 11

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,  dried  or  smoked

(b)

0104 10 10

Live  sheep  —  pure-bred  breeding  animals

0104 20 10

Live  goats  —  pure-bred  breeding  animals

0206 80 99

0206 90 99

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

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

0210 90 60

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

ex 1502 00 90

Fats  of  sheep  or  goats,  other  than  those  in  No  1503

1602 90 72
1602 90 74

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

1602 90 76
1602 90 78

Other  prepared  or  preserved  offal  of  sheep  or  goats

(c)

(d)

CHAPTER  II

(e)  measures  to  facilitate  the  recording  of  market  price

trends.

Price,  premium  and  intervention  arrangements

Article  2

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

In  order  to  encourage  action  by  trade  and  joint  trade
organisations  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:

Article  3

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

(a)  measures  to  improve  sheep  and  goat  farming;

(b) measures 

to  promote  better  organisation  of

production,  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
production  used;

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

(a)  the  situation  on  the  sheepmeat  market  during  the

current  year;

(b) the  prospects  for  the  production  and  consumption  of

sheepmeat;

(c)  sheepmeat  production  costs;

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(d) the  market  situation  in  the  other  livestock  product

sectors,  particularly  the  beef  and  veal  sector;

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

(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
preceding  that  day  in  the  following  year.

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
recorded 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
referred  to  in  paragraph  1  shall  be  the  most  widespread
production,  on  average  throughout  the  Community,  for
flocks  specialised  in  the  production  of  sheepmeat  which
produce  heavy  lambs.

The  Council,  acting  by  a  qualified  majority  on  a
Commission  proposal:

—  shall  determine  the  standard  quality,

Article  5

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

in 

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  Article  3(1)  and  the  arithmetic  mean  of  the  weekly
market  prices  recorded  in  accordance  with  Article  4.

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
Community 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
producer 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 
in
proportion  with  the  number  of  lambs  born  on  his
holding  which  are  fattened  as  heavy  carcasses.

the  heavy  category, 

the  premium 

for 

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

—  shall  lay  down  a  definition  of  lambs  which  are

fattened  as  heavy  carcasses.

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

3. A producer of light lambs 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.

(b) secondly,  in  the  mountain  and  hill  areas  within  the
meaning  of  Article  23(1)  of  Council  Regulation  (EC)
No  950/97  of  20  May  1997  on  improving  the
efficiency  of  agricultural  structures (1),  other  than  the
areas 
in  Annex  I  to  this  Regulation,
provided that it is established following the procedure
laid  down  in  Article  25  that  the  production  of  those
areas  meets  the  following  two  criteria:

indicated 

(1)  OJ  L  142,  2.6.1997,  p.  1.

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—  goat  rearing 

is  mainly  directed  towards  the

production  of  goatmeat,

which ewes, and in the areas specified in paragraph 5, for
which  goats.

—  goat  and  sheep  rearing  techniques  are  similar  in

nature.

The  Council,  by  the  same  procedure:

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

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  authorised  to  pay  all  their  producers  a
half-yearly  advance  payment  of  30 %  of  the  expected
premium.

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

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

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

7. Until  the  end  of  the  1994  marketing  year  premiums
for  producers  of  sheepmeat  and  goatmeat  referred  to  in
this  Article  shall  be  paid  at  the  full  rate  within  the  limit
of  1 000  animals  per  producer  in  the  less-favoured  areas
within  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
marketing  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.

—  may  extend  the  premium  to  certain  mountain-breed
ewes  raised  in  precisely  defined  areas  presenting
particularly  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
accordance  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
minimum  number  of  ewes  and/or  she-goats.

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

—  shall fix as appropriate the premium payable per ewe
to  the  producers  specified  in  paragraphs  2  and  3  per
mountain-breed 
the  meaning  of
female  within 
paragraph 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
covering,  in  particular,  the  submission  of  premium
applications  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  stabilising  agricultural  markets.

Article  6

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

In  the  case  of  producers  who  have  been  granted  the
premium  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.

8. The  Council,  acting  by  a  qualified  majority  on  a
proposal  from  the  Commission,  shall  adopt  general  rules
for  implementing  this  Article,  and  in  particular  shall
define which producers may receive the premium and for

However,  where  this  coefficient  is  higher  than  one,
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).

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

(b) when  a  producer  sells  or  otherwise  transfers  his
holding, he may transfer all his premium rights to the
person  who  takes  over  his  holding.

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
recent  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.

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

(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 (1)  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
accordance 
formula
the 
communicated  by  the  group.

allocation 

with 

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
premium,  under  the  1992  marketing  year;

He  may  also  transfer,  in  whole  or  in  part,  his  rights
to  other  producers  without  transferring  his  holding.
According  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
holding, a part of the premium rights transferred, not
exceeding  15 %, 
surrendered  without
compensation  to  the  national  reserve  of  the  Member
State  where  his  holding 
free
distribution 
to  new  entrants  or  other  priority
producers  referred  to  in  Article  7(2).

shall  be 

situated 

for 

is 

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
member  of  the  same  group  of  producers  meeting
conditions  to  be  determined  by  the  Commission  in
accordance with the procedure provided for in Article
25.

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,

the  extent  necessary  not 
to 
application  of  the  third  subparagraph;

to 

jeopardise 

the

(c) Member  States:

—  must 

take 

to  avoid
the  necessary  measures 
premium  rights  being  moved  away  from  sensitive
zones  or  regions  where  sheep  production 
is
especially  important  for  the  local  economy,

—  may  provide  either  that  the  transfer  of  the  rights
without  transfer  of  the  holding  is  carried  out
directly between the producers or that it is carried
out  through  the  intermediary  of  the  national
reserve;

(d) Member  States  may  authorise,  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;

(1)  OJ  L  219,  7.8.1991,  p.  15.  Regulation  as  last  amended  by
Regulation  (EC)  No  2143/96  (OJ  L  286,  8.11.1996,  p.  10).

(e) entitlement to the premium transferred or temporarily
leased  to  a  producer  shall  be  aggregated  with  that
originally  granted  to  him;

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for 

in  Article  25,  and 

(f)  the  Commission  shall  lay  down  the  detailed  rules  for
implementing  this  paragraph  in  accordance  with  the
procedure  provided 
in
particular  those  rules  which  enable  Member  States  to
determine,  bearing  in  mind  the  structure  of  their
flocks,  the  reduction  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  situated.

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

(a)  the  total  number  of  eligible  animals  conferring
entitlement  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
entitlement  to  the  premium  for  the  1991  marketing
year.

Member  States  shall  inform  the  Commission  before  31
October 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.

Article  7

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
holdings are situated in its territory. The national reserve
shall  also  receive  the  entitlements  pursuant  to  Article
6(4)(b).

initial  national  reserve  shall  be
For  Germany,  the 
calculated 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 Länder. 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
additional  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
producers  concerned  and  that  those  producers  do  not
ultimately  obtain  more  rights  than  would  have  been
granted  to  them  if  the  situation  referred  to  in  the  third
subparagraph  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.

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  jeopardise  the  viability  of  their
the
into 
holdings, 
implementation  of  an  investment  programme  in  the
sheep  and  goat  sector  drawn  up  before  1  January
1993;

consideration 

taking 

(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 

submitted  an
application  for  a  premium  without  having  submitted
an  application  in  respect  of  the  1991  marketing
year;

regularly 

(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-favoured  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 
the
less-favoured  areas  of  the  former  German  Länder.  This
reserve  concerns  only  those  producers.

situated 

are 

in 

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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
applicable  in  cases  where  the  national  reserve  in  a
Member  State  is  not  allocated  shall  be  adopted.

Article  8

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

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

be  fixed;

(b) Germany  shall  determine  the  conditions  for  the
regional

ceiling  and 

this 

its 

distribution  of 
breakdown.

2.
In the territories of the new German Länder, 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  preceding  the  year  in  which  notification
to  producers  of  their  individual  limits  was  made.

In  the  case  of  natural  circumstances  which  led  to  a
3.
non-payment  or  to  a  reduced  payment  for  the  reference
year,  the  number  of  animals  corresponding  to  the
payments  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.

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

Article  9

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.

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
benefits 
linked  to  the  respective  premium  schemes.
Member  States  shall  inform  the  Commission  of  the
measures  they  take  pursuant  to  this  Article.

Article  10

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
Austria,  Finland  and  Sweden.  The  total  number  of
entitlements  within  that  ceiling  shall  be  set  at:

—  205 651  for  Austria,

—  80 000  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
adjusting  and  transitional  measures,  in  accordance  with
the  procedure  laid  down  in  Article  25.

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

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

Article  11

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Article  12

Article  13

1. Where:

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

—  the  price  established  in  accordance  with  Article  4  on

the  one  hand,  and

2. For  each  marketing  year:

—  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:

—  the  price  established  in  accordance  with  Article  4,  on

the  one  hand,  and

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

hand,

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.

it  may  be  decided  to  grant  aid 

However, 
in  the
framework  of  an  advance  fixing  procedure  where  urgent
recourse  to  private  storage  proves  necessary  in  the  light
of a particularly 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
proposal  from  the  Commission,  shall  adopt  general  rules
for  the  application  of  this  Article.

—  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
reduced  for  both  ewes  and  she-goats  by  the  effect  on
the  basic  price  of  a  coefficient  representing  a
reduction  of  1 %  for  each  1 %  by  which  the
maximum  guaranteed  level  is  extended,

—  where the mechanism provided for in the first indent,
applied  to  the  actual  ewe  numbers  recorded  for  the
leads  to  a  premium
preceding  marketing  year, 
different  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.

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.

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
procedure  laid  down  in  Article  25.

from 

4. However, 
the
coefficient  for  reducing  the  basic  price  referred  to  in
paragraph  2  shall  be  7 %.

the  1993  marketing  year, 

CHAPTER  III

Trade  with  third  countries

Article  14

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

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

(a)  the  products  and  product  qualities  admitted  for

private storage;

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

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

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

Licences  shall  be  issued  by  the  Member  States  to  any
applicant, 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

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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
required,  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.

(a)  the  products  to  which  additional  import  duties  may
be  applied  under  the  terms  of  Article  5  of  the
Agreement  on  agriculture;

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

Article  15

Article  17

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

Article  16

In  order  to  prevent  or  counteract  adverse  effects  on
1.
the  market  in  the  Community  which  may  result  from
imports of certain products listed in Article 1, imports of
one  or  more  of  such  products  at  the  rate  of  duty  laid
down  in  the  Common  Customs  Tariff  shall  be  subject  to
payment  of  an  additional  import  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  fulfilled  unless  the  imports
are  unlikely  to  disturb  the  Community  market,  or  where
the  effects  would  be  disproportionate  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  Organisation.

The  trigger  volumes  to  be  exceeded  in  order  to  have  the
additional  import  duty  imposed  shall  be  determined
particularly  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
application  of  this  Article 
in  accordance  with  the
procedure  laid  down  in  Article  25.  Such  detailed  rules
shall  specify  in  particular:

1. Tariff  quotas  for  the  products  listed  in  Article  1
resulting 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
lodgement  of  applications  (‘first-come,  first  served’
principle);

(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
‘traditional/new  arrival
the 

(using 

into  account 
method’).

Other  appropriate  methods  may  be  adopted.

They  must  avoid  any  discrimination  between 
operators  concerned.

the

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
possibly  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
the

the  product  and,  where  appropriate, 

of 
maintenance  of  traditional  trade  patterns;

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(b) recognition  of  the  document  used  for  verifying  the

Article  20

guarantees  referred  to  in  (a);  and

(c)  the conditions under which import licences are issued

and  their  term  of  validity.

Article  18

1. To the extent necessary for the proper working of the
common  organisation  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  processing  arrangements  in  respect  of  products
listed  in  Article  1.

to 

2. By  way  of  derogation  from  paragraph  1,  if  the
in  paragraph  1  arises  with
situation  referred 
is
exceptional  urgency  and  the  Community  market 
disturbed  or  is  liable  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  applicable.  If  the  Commission  receives  a
request  from  a  Member  State,  it  shall  take  a  decision
thereon  within  a  week  following  receipt  of  the  request.

3. Measures  decided  on  by  the  Commission  may  be
referred  to  the  Council  by  any  Member  State  within  a
week  of  the  day  on  which  they  were  notified.  The
Council,  acting  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.

Article  19

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  jeopardise  the  achievement  of  the
objectives 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
accordance  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
receives  a  request  from  a  Member  State,  it  shall  take  a
decision  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
qualified  majority,  amend  or  annul  the  measure  in
question.

4. This  Article  shall  be  applied  having  regard  to  the
obligations  arising 
in
accordance  with  Article  228(2)  of  the  Treaty.

from  agreements  concluded 

1. The  general  rules  for  the 
interpretation  of  the
Combined  Nomenclature  and  the  detailed  rules  for  its
application  shall  apply  to  the  tariff  classification  of
products 
tariff
nomenclature  resulting  from  the  application  of  this
Regulation  shall  be  incorporated  into  the  Common
Custom  Tariff.

this  Regulation; 

covered  by 

the 

CHAPTER  IV

General provisions

Article  21

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.

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

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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
information  shall  be  adopted  in  accordance  with  the
procedure  laid  down  in  Article  25.

Article  24

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

accordance with the opinion of the Committee, they shall
forthwith  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  application  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
account  is  taken  of  the  objectives  set  out  in  both  Article
39  and  Article  110  of  the  Treaty.

Article  28

Article  25

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

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 Committee shall be weighted in the manner set
out  in  that  Article.  The  chairman  shall  not  vote.

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
accordance with the correlation table set out in Part A of
Annex  II.

Article  30

3. The  Commission  shall  adopt  measures  which  shall
apply immediately. However, if these measures are not in

This  Regulation  enters  into  force  on  the  day  of  its
publication  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,  3  November  1998.

For  the  Council

The  President

B.  PRAMMER

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1. FRANCE:

2. GREECE:

3. ITALY:

4. SPAIN:

ANNEX  I

Corsica.

the  whole  country.

Lazio,  Abruzzo,  Molise,  Campania,  Apulia,  Basilicata,  Calabria,  Sicily
and Sardinia.

the  autonomous  communities  of  Andalusia,  Aragon,  the  Balearic
Islands,  Castile-La  Mancha,  Castile-Leon,  Catalonia,  Extremadura,
Galicia  (with  the  exception  of  the  provinces  of  Coruña  and  Lugo),
Madrid,  Murcia,  La  Rioja,  Comunidad  Valenciana  and  the  Canary
Islands.

5. PORTUGAL:

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

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ANNEX  II

Part  A

CORRELATION  TABLE

Regulation  (EEC)  No  3013/89

This  Regulation

—

Article  1

—

Article  2

Title  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),  first  subparagraph,  first  indent

Article  5(5),  first  subparagraph,  (a)

Article  5(5),  first  subparagraph,  second  indent

Article  5(5),  first  subparagraph,  (b)

Article  5(5),  first  subparagraph,  second  indent,  (a)

Article  5(5),  first  subparagraph,  (b),  first  indent

Article  5(5),  first  subparagraph,  second  indent,  (b)

Article  5(5),  first  subparagraph,  (b),  second  indent

Article  5(5),  second  subparagraph

Article  5(5),  second  subparagraph

Article  5(6)  to  (10)

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

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

Article  5(6)  to  (10)

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

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

Article  5a(4)(e),  first  subparagraph

Article  6(4)(e)

Article  5a(4)(e),  second  subparagraph

—

Article  5a(4)(f)

Article  5a(5)

Article  5a(6)

Article  6(4)(f)

Article  6(5)

Article  6(6)

Article  5b(1),  first  subparagraph

Article  7(1),  first  subparagraph

Article  5b(1),  second  subparagraph

Article  7(1),  second  subparagraph

Article  5b(1),  third  subparagraph

Article  7(1),  third  subparagraph

Article  5b(1),  fourth  subparagraph

Article  5b(1),  fifth  subparagraph

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

—

—

—

Article  5b(1),  sixth  subparagraph,  the  part  of  the
sentence  starting  from  the  second  comma

Article  7(1),  fourth  subparagraph

Article  5b(1),  seventh  subparagraph

Article  7(1),  fifth  subparagraph

Article  5b(2)

Article  5b(3)

Article  7(2)

Article  7(3)

Article  5b(4),  first  subparagraph

Article  7(4),  first  subparagraph

Article  5b(4),  second  subparagraph,  first  indent

Article  7(4),  second  subparagraph

Article  5b(4),  second  subparagraph,  second  indent

—

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Regulation  (EEC)  No  3013/89

This  Regulation

Article  5b(5)

Article 5c

Article  5d

Article 5e

Articles  6,  7  and  8

Title  II

—

Article  8

Article  9

Article  10

Articles  11,  12  and  13

CHAPTER  III

Articles  9,  10  and  11

Articles  14,  15  and  16

Article  12(1)

Article  17(1)

Article  12(2),  first  subparagraph,  first  indent

Article  17(2),  first  subparagraph,  point  (a)

Article  12(2),  first  subparagraph,  second  indent

Article  17(2),  first  subparagraph,  point  (b)

Article  12(2),  first  subparagraph,  third  indent

Article  17(2),  first  subparagraph,  point  (c)

Article  12(2),  second  subparagraph

Article  17(2),  second  subparagraph

Article  12(2),  third  subparagraph

Article  17(2),  third  subparagraph

Article  12(3)

Article  12(4)

Article  13

Article  14(1)

Article  17(3)

Article  17(4)

Article  18

Article  19(1)

Article  14(2),  first  indent

Article  19(2),  point  (a)

Article  14(2),  second  indent

Article  19(2),  point  (b)

Article  15

Title  III

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  I

—

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

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Part  B

REGULATIONS  AMENDING  REGULATION  (EEC)  No  3013/89

No

Official Journal
page

Council  Regulation 
December  1990

(EEC)  No  3577/90  of  4

L  353

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

L  163

L  173

L  215

L  391

Council  Regulation 
February  1993

(EEC)  No  363/93  of  10

L  42

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  July
1994

L  30

L  121

L  197

Council  Regulation 
December  1994

(EC)  No  3290/94  of  22

L  349

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

Council  Regulation  (EC)  No  1589/96  of  30  July
1996

L  123

L  206

23

41

13

59

51

1

9

9

30

105

1

25

date

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