Commission Regulation (EC) No 174/1999 of 26 January 1999 laying down special detailed rules for the application of Council Regulation (EEC) No 804/68 as regards export licences and export refunds in the case of milk and milk products
Date: 1999-01-26
Institutions: European Commission
Subjects: export licence, export refund, milk, milk product

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COMMISSION REGULATION (EC) No 174/1999

of 26 January 1999

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EEC) No 804/68 of
27 June 1968 on the common organisation of the market
in milk and milk products (1), as last amended by Regula-
tion (EC) No 1587/96 (2), and in particular Articles 13(3),
16a(1) and 17(9) and (14) thereof,

1. Whereas Commission Regulation (EC) No 1466/95
of 27 June 1995 laying down special detailed rules
of application for export refunds on milk and milk
products (3), as last amended by Regulation (EC) No
2184/98 (4), has been substantially amended several
times; whereas, since further amendments are to be
made, it should be recast in the interests of clarity
and efficiency;

2. Whereas

under

the Agriculture Agreement
concluded during the Uruguay Round of
the
GATT trade negotiations (5) (hereinafter referred to
as the ‘Agriculture Agreement'), export refunds on
agricultural products, including milk products, are
limited within each 12-month period starting from
1 July 1995 to a maximum quantity and a
maximum value; whereas,
to ensure
compliance with those limits, the issue of export
licences should be monitored; whereas procedures
must also be adopted for allocating the quantities
which may be exported with a refund;

in order

cultural products (6), as last amended by Regulation
(EC) No 2334/98 (7), cases where a refund may be
granted without presentation of an export licence
should be defined and the maximum time that
products may remain under customs control should
be specified;

5. Whereas special provisions should be adopted for
the milk and milk products sector, in particular
with regard to licences, by way of derogation from
Commission Regulation (EEC) No 3719/88 of 16
November 1988 laying down common detailed
rules for the application of the system of import
and export licences and advance fixing certificates
for agricultural products (8), as last amended by
Regulation (EC) No 1044/98 (9); whereas, in addi-
tion, the tolerance permitted by that Regulation as
regards the quantity of goods exported compared
with the quantity indicated on the licence should
be reduced and,
to ensure effective
in order
controls on limits, there should be no refunds paid
on quantities exceeding what is indicated on the
licence; whereas the securities to be lodged when
licence applications are submitted should be suffi-
cient to prevent speculative applications;

6. Whereas the term of validity of export licences
should be fixed; whereas that term should vary
according to the products concerned, with a shorter
term for products where there is a higher risk of
speculation;

3. Whereas Regulation (EEC) No 804/68 lays down
general rules for granting of export refunds in the
milk and milk products sector, in order, in partic-
ular, to permit the monitoring of the value and
quantity limits for refunds; whereas detailed rules
for the application of those arrangements should be
laid down;

7. Whereas, in order to ensure accurate checking of
products exported and to minimise the risk of
speculation, the possibility of changing the product
for which a licence has been issued should be
restricted;

4. Whereas, by way of derogation from Commission
Regulation (EEC) No 3665/87 of 27 November
1987 laying down common detailed rules for the
application of the system of export refunds on agri-

8. Whereas Article 2a(2) of Regulation (EEC) No
3665/87 lays down rules for the use of export
licences with advance fixing of the refund for the
exportation of products with a 12-digit code other
the licence;
than that shown in Section 16 of

(1) OJ L 148, 28. 6. 1968, p. 13.
(2) OJ L 206, 16. 8. 1996, p. 21.
(3) OJ L 144, 28. 6. 1995, p. 22.
(4) OJ L 275, 10. 10. 1998, p. 21.
(5) OJ L 336, 23. 12. 1994, p. 1.

(6) OJ L 351, 14. 12. 1987, p. 1.
(7) OJ L 291, 30. 10. 1998, p. 15.
(8) OJ L 331, 2. 12. 1988, p. 1.
(9) OJ L 149, 20. 5. 1998, p. 11.

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whereas this provision becomes applicable in a
specific sector only if product categories as referred
to in Article 13a of Regulation (EEC) No 3719/88
and product groups as referred to in point (b) of the
first subparagraph of Article 2a(2) of Regulation
(EEC) No 3665/87 have been defined;

9. Whereas for the milk and milk product sector,
product categories are already defined with refer-
ence to the categories provided for in the Agricul-
ture Agreement; whereas in the interests of sound
management
should be
this use of categories
retained and Article 2a(2) of Regulation (EEC) No
3665/87 applied on the basis only of defined
product groups;

10. Whereas in the milk sector refund rates are highly
differentiated, notably according to fat content;
whereas, so that this arrangement will not be called
into question while at the same time the propor-
tionality objective of Article 2a(2) of Regulation
(EEC) No 3665/87 is respected, the product groups
should be narrowly defined and for certain prod-
ucts the validity of export licences should extend to
products that in fat content are immediately adja-
cent in CN code to the product for which a refund
has been fixed in advance;

11. Whereas, to enable traders to participate in invita-
tions to tender opened by third countries without
affecting the restrictions as
regards volume, a
system of provisional licences should be introduced
giving successful
to a full
licence;

tenderers the right

12. Whereas, in order to ensure effective monitoring of
licences issued, which depends on the notification
of information to the Commission by the Member
States, a waiting time should be provided for before
licences are issued; whereas, in order to ensure the
smooth operation of
in
particular, an equitable allocation of the quantities
available within the limits laid down by the Agri-
culture Agreement, various management measures
should be laid down and, in particular, provision
should be made for the issue of licences to be
suspended and for a reduction coefficient to be
applied to the quantities applied for;

the arrangements and,

that

licences

for export

15. Whereas experience has shown that the number of
applications
for particular
cheese varies according to destination; whereas, in
order
applied
according to the destination indicated on licence
applications, destination zones should be fixed and
the destination zone indicated on export licences
made obligatory for products falling within CN
code 0406;

special measures

can be

16. Whereas the method for fixing the refund on milk
products containing added sugar,
the price of
which is determined by the price of the ingredi-
ents,
should be laid down according to the
percentage of the ingredients contained therein;
whereas, however, to facilitate the management of
refunds for these products, and particularly meas-
to ensure compliance with commitments
ures
regarding exports in the context of the Agriculture
Agreement, a maximum quantity should be fixed
for sucrose incorporated for which a refund may be
granted; whereas 43 % by weight of whole product
is representative of the sucrose content of such
products;

17. Whereas Article 8(3) of Regulation (EEC) No 3665/
87 provides that refunds may be granted for ingre-
dients of Community origin in processed cheese
manufactured under the inward processing arrange-
ments; whereas certain special rules are needed to
ensure that this specific measure operates properly
and can be effectively checked;

18. Whereas, under the Agreement concluded between
the European Community and Canada approved by
Council Decision 95/591/EC (1) export
licences
issued by the European Community must be
presented for cheese qualifying for preferential
terms on import into Canada; whereas the detailed
rules for issuing such licences should be laid down;
whereas, to ensure that the quantities of cheese
imported into Canada under the import quota
correspond to the quantities for which licences
have been issued, the licences duly stamped by the
Canadian authorities should be returned to the
competent bodies of the Member States and the
data on exports
should be forwarded by the
Member States to the Commission;

13. Whereas the refund rate should be determined for
products eligible for export refunds in the context
of food-aid operations;

14. Whereas, to ensure that licences are correctly used,
for certain exports with refunds the country of
destination should be defined as a compulsory
destination as referred to in Article 21(1) of Regula-
tion (EEC) No 3665/87;

19. Whereas,

in the framework of the consultations
the
with Switzerland on the implementation of
results of the Uruguay Round, it has been agreed to
apply a set of measures providing in particular for a
reduction in the
customs duties on certain
Community cheeses imported into Switzerland;
whereas the Community origin of such products
should be guaranteed; whereas, to that end, export

(1) OJ L 334, 30. 12. 1995, p. 25.

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these arrangements,

should be compulsory for all cheese
licences
exported under
including
cheese on which export refunds are not payable;
whereas
to
presentation by the exporter of a declaration certi-
fying the Community origin of the product;

should be issued subject

licences

20. Whereas the Community has the option of desig-
nating which importers may import Community
cheeses into the United States under the additional
quota arising from the Agriculture Agreement;
whereas this would allow the Community to maxi-
mise the value of the quota; whereas a procedure
should therefore be laid down for designating
importers on the basis of the allocation of export
licences for the products concerned;

21). Whereas the measures provided for in this Regula-
tion are in accordance with the opinion of the
Management Committee for Milk and Milk Prod-
ucts,

HAS ADOPTED THIS REGULATION:

CHAPTER I

General arrangements for export refunds

Article 1

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

2.
Section 7 of licence applications and licences shall
show the code number of the country of destination as
referred to in the Annex to Commission Regulation (EC)
No 2317/97 (1).

(a) where the refund for an export declaration, calculated
on the basis of the refund applicable on the first day
of the month of export, is not more than EUR 60;

(b) in the cases referred to in Articles 34, 38, 42, 43 and

44(1) of Regulation (EEC) No 3665/87.

For the purposes of point (a) of the second paragraph,
where several separate codes in the nomenclature for
refunds, as laid down by Commission Regulation (EC) No
3846/87 (2), or the Combined Nomenclature are entered
in an export declaration, the particulars relating to each
code shall be deemed to constitute a separate declaration.

Article 3

No refund shall be granted on exports of cheese where
the free-at-frontier price prior to application of the refund
in the Member State of export is less than EUR 230 per
100 kilograms.

However, the first paragraph shall not apply to cheese
falling within code 0406 90 33 9919 of the nomenclature
for refunds.

Article 4

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

2.
The second paragraph of Article 13a of Regulation
(EEC) No 3719/88 shall not apply to the products
referred to in Article 1(1) of this Regulation.

this Regulation,

3. Without prejudice to the application of Article 5(3)
of
the product groups within the
meaning of point (b) of the first subparagraph of Article
2a(2) of Regulation (EEC) No 3665/87 shall be those set
out in Annex II.

Article 5

3.
Licence applications which, within the meaning of
Article 15 of Regulation (EEC) No 3719/88, were lodged
on a Thursday, shall be deemed to have been submitted
on the next working day.

1.
Section 16 of licence applications and licences shall
show the 12-digit product code of the nomenclature for
refunds. Licences shall be valid for that product alone
except in the cases specified in paragraphs 2 and 3.

Article 2

Refunds shall be granted only on presentation of an
export licence.

By way of derogation from Article 2a of Regulation (EEC)
No 3665/87, however, no licence shall be required:

For products falling within CN codes 0401, 0402,
2.
licence holders may on
0403, 0404, 0405 and 2309,
request obtain a change of the code in Section 16 of the
export licence to another code in the same category, as
referred to in Annex I, where the refund is identical. Such
requests must be lodged before completion of the formal-
ities referred to in Article 3 or 25 of Regulation (EEC) No
3665/87.

(1) OJ L 321, 21. 11. 1997, p. 19.

(2) OJ L 366, 24. 12. 1987, p. 1.

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By way of derogation from point (b) of the first
3.
subparagraph of Article 2a(2) of Regulation (EEC) No
3665/87, export
the
refund shall also be valid for exportation of a product with
a 12-digit code other than that entered in Section 16 of
the licence if the two products are adjacent in one of the
groups laid down in Annex II or both are in group 23.

licences with advance fixing of

the lodging of a security. The security for provisional
licences shall be equal
the rate fixed in
accordance with Article 9.

to 75 % of

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

4.
In cases referred to in paragraph 3, refunds shall be
calculated in accordance with the second subparagraph of
Article 2a(2) of Regulation (EEC) No 3665/87.

Provisional

2.
licences shall be issued on the fifth
working day following that on which the application is
lodged, provided that the special measures referred to in
Article 10(3) have not been adopted in the meantime.

Article 6

Export licences shall be valid from the day of issue,
within the meaning of Article 21(1) of Regulation (EEC)
No 3719/88, until:

(a)

the end of the sixth month following issue in the case
of products falling within CN code 0402 10;

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

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

(d) the end of the fourth month following issue for the
other products referred to in Article 1 of Regulation
(EEC) No 804/68;

(e) the date by which the obligations arising from invita-
to Article 8(1) must be
tions to tender pursuant
fulfilled and by the end of
the eighth month
following issue of the full licence referred to in Article
8(3) at the latest.

Article 7

By way of derogation from Articles 27(5) and 28(5) of
Regulation (EEC) No 3665/87, the period during which
the products referred to in Article 1 of Regulation (EEC)
No 804/68 may remain covered by the arrangements
provided for in Council Regulation (EEC) No 565/80 (1)
shall be equal to the remainder of the term of validity of
the export licence.

Article 8

1.
In the case of an invitation to tender issued by a
public body in a third country as referred to in Article
44(1) of Regulation (EEC) No 3719/88, except for invita-
tions to tender concerning products falling within CN
code 0406, traders may apply for a provisional export
licence for the quantity covered by their tender subject to

(1) OJ L 62, 7. 3. 1980, p. 5.

By way of derogation from Article 44(5) of Regula-
3.
tion (EEC) No 3719/88, the period for submitting the
information referred to in that paragraph shall be 60 days.
Before the end of that period, traders shall apply for the
full export licence, which shall be issued on presentation
of proof that they have been awarded a contract.

On presentation of proof that the tender has been rejected
or that the quantity awarded by the contract is less than
indicated on the provisional licence, the whole or part of
the security shall be released as appropriate.

4.
Licence applications referred to in paragraphs 2 and
3 shall be made in accordance with Article 13 of Regula-
tion (EEC) No 3719/88.

The provisions of this chapter, with the exception of

5.
Article 10, shall apply to full licences.

Article 9

The security referred to in Article 14(2) of Regulation
(EEC) No 3719/88 shall be equal to the percentage of the
refund fixed for each product code applicable on the day
the export licence application is lodged, as follows:

(a) 5 % for products covered by CN code 0405;

(b) l5 % for products covered by CN code 0402 10;

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

(d) 20 % for other products.

The amount of the refund referred to in the first para-
graph shall be that calculated for the total quantity of the
product concerned except for milk products containing
added sugar.

For milk products containing added sugar, the amount of
the refund referred to in the first paragraph shall be equal
to the total quantity of the whole product concerned,
multiplied by the refund rate applicable per kilogram of
milk product.

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Article 10

Export licences shall be issued on the fifth working
1.
day following the day on which applications
are
submitted, provided that the quantities for which licences
have been applied for have been communicated in
accordance with Article 6(1) of Commission Regulation
(EEC) No 210/69 (1) and that
the special measures
referred to in paragraph 3 have not been adopted in the
meantime.

2.
A decision may be taken to adopt one or more of
the special measures provided for in paragraph 3 where:

(a)

the issue of the licences applied for appears likely to
result in an overrun in the budget resources available
or in the exhaustion of
the maximum quantities
which may be exported with refund during the 12-
month period in question or in a shorter period to be
determined pursuant to Article 11;

or

(b) the issue of the licences applied for does not allow the
continuity of exports to be guaranteed during the rest
of the period concerned.

For the purposes of the first subparagraph, account shall
be taken, as regards the product in question, of:

(a)

the seasonal nature of trade, the market situation and
in particular the trend in prices on the market and the
export conditions resulting therefrom;

(b) the need to prevent

speculation from distorting

competition between traders.

3.
In the cases referred to in paragraph 2, the Commis-
sion may decide, for the product or products in question:

(a)

to suspend the issue of licences for a maximum of five
working days;

(b) to apply an allocation coefficient to the quantities
requested. Where a coefficient of
less than 0,4 is
applied to the quantities requested, applicants may,
within three working days of publication of
the
decision fixing the coefficient, request the cancella-
tion of their licence application and the release of
their security.

Furthermore, in accordance with the procedure provided
for in Article 30 of Regulation (EEC) No 804/68, the
Commission may decide:

(a)

to suspend the issue of licences for the product or
products concerned, without prejudice to the first
indent of (a), for a period exceeding five working days;

(1) OJ L 28, 5. 2. 1969, p. 1.

(b) at the end of the period of suspension, to fix refunds
by invitation to tender for products falling within CN
codes 0402 10 19, 0405 10 90, 0405 90 10, 0405 90 90
and 0405 10 19. The relevant licences shall then be
issued.

Licence applications submitted during the period of

4.
suspension shall not be admissible.

Article 11

Where the total quantity covered by the licence applica-
tions submitted is such that there is a risk of early exhaus-
tion of the maximum quantities which may be exported
with refund during the 12-month period in question, the
Commission may decide, in accordance with the pro-
cedure provided for in Article 30 of Regulation (EEC) No
to allocate those maximum quantities over
804/68,
periods to be determined.

Article 12

1. Where the quantity exported exceeds that shown on
the licence, no refund shall be payable on the overrun.

To that end, Section 22 of licences shall contain the
‘Payment of the refund restricted to the quantity
words:
shown in Sections 17 and 18'.

2.
By way of derogation from the provisions of Articles
8(5) and 33(2) of Regulation (EEC) No 3719/88 on toler-
ances for quantities exported, the following rates shall
apply:

(a)

the rate provided for in Article 8(5) shall be 2 %;

(b) the rate provided for in Article 33(2), first and second

subparagraphs, shall be 98 %;

(c) the rate provided for in Article 33(2), third subpara-

graph, shall be 2 %.

Article 44(9)(c) of Regulation (EEC) No 3719/88 shall not
apply.

Article 13

1.
Article 10 shall not apply to the issuing of export
licences for food-aid supplies in accordance with Article
10(4) of the Agriculture Agreement.

2.
The rate of refund applicable to national food-aid
supplies shall be that applying on the day the Member
State opens the invitation to tender for the supply of food
aid.

Article 14

The country of destination referred to in Article 1(2) shall
be a compulsory destination for the purposes of Article
21(1) of Regulation (EEC) No 3665/87 for licences issued
pursuant to Article 8 of this Regulation.

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Article 15

For licences issued for products falling within CN
the following words shall be entered in

1.
code 0406,
Section 20 of applications and licences:

‘Licence valid for zone . . . as defined in Article 15(3)
of Regulation (EC) No 174/1999'.

The zone indicated shall be the zone, as defined in para-
graph 3, to which the country of destination indicated in
Section 7 of licence applications and licences belongs.

2.
The zone as referred to in paragraph 1 shall be a
compulsory destination for the purposes of Article 21(1)
of Regulation (EEC) No 3665/87.

No refund shall be paid where the actual destination is in
a zone other than that indicated in the licence application
and in the licence.

The following zones

3.
purposes of paragraph 1:

shall be defined for

the

(a) Zone I:

destination codes 053 to 096 (inclusive);

(b) Zone II:

destination code 400;

(c) Zone III:

all other destination codes.

Article 16

1.
the
For milk products containing added sugar,
refund shall be equal to the sum of the following com-
ponents:

(a) a component

representing the quantity of milk

product;

(b) a component

representing the quantity of added
sucrose, up to a maximum of 43 % by weight of
whole product.

However, the component referred to in (b) shall apply
only if the added sucrose has been produced from sugar
beet or cane harvested in the Community.

2.
The component referred to in paragraph 1(a) shall
be calculated by multiplying the basic amount of the
refund by the milk product content of the whole product.

The basic amount referred to in the first subparagraph
shall be the refund on one kilogram of milk product
contained in the whole product.

amount of the refund applicable on the day the licence
application is submitted for the products listed in Article
1(1)(d) of Council Regulation (EEC) No 1785/81 (1).

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

For the purposes of paragraph 1(b), sucrose shall be
4.
treated as sucrose produced from beet or cane harvested
in the Community if it has been:

(a)

imported into the Community under Protocol 8 on
sugar annexed to the ACP-EEC Lom(cid:130) Convention (2),
or the Agreement on cane sugar between the Euro-
pean Economic Community and the Republic of
India (3);

(b) obtained from products imported under the provisions

referred to in (a).

Article 17

1.
Export licence applications for milk and milk prod-
ucts exported as products falling within CN code 0406 30
in accordance with the third indent of Article 8(3) of
Regulation (EEC) No 3665/87 shall be accompanied by
the authorisation granted by the competent authorities to
use the customs arrangements in question.

Section 20 of licence applications and licences shall

2.
contain a reference to this Article.

3.
The Member States shall take the necessary steps
under the arrangements referred to in paragraph 1 to
identify and check the quality and quantity of products
referred to in that paragraph for which a refund has been
applied for and to apply the provisions on entitlement to
the refund.

CHAPTER II

Specific arrangements

Article 18

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

2.

Licence applications and licences shall show:

(a)

in Section 7, the words ‘CANADA — 404';

(b) in Section 15, the six-digit description of the goods in
accordance with the Combined Nomenclature for
products falling within CN codes 0406 10, 0406 20,

3.
The component referred to in paragraph 1(b) shall
be calculated by multiplying the sucrose content of the
whole product, up to a maximum of 43 %, by the basic

(1) OJ L 177, 1. 7. 1981, p. 4.
(2) OJ L 229, 17. 8. 1991, p. 3.
(3) OJ L 190, 23. 7. 1975, p. 36.

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0406 30 and 0406 40 and the eight-digit description
for products falling within CN code 0406 90. Section
15 of applications and licences may contain no more
than six products thus described;

(c)

in Section 16,
the eight-figure CN code and the
quantity in kilograms for each of the products referred
to in Section 15. The licence shall be valid only for
the products and quantities so designated;

(d) in Sections 17 and 18, the total quantity of products

referred to in Section 16;

(e)

in Section 20, the following words:

6. Holders of export
licence or a certified copy thereof:

licences shall ensure that

the

(a)

is presented to the competent Canadian authority on
the day on which the import customs formalities are
conducted;

(b) is returned, stamped by the competent Canadian
authority, to the issuing body within two months of
the date referred to in (a).

The Member States shall take the measures necessary to
ensure that point (b) of the first subparagraph is complied
with.

‘Cheeses for direct export to Canada. Article 18 of
(year)'
Regulation (EC) No 174/1999. Quota for . . .

By way of derogation from Article 9 of Regulation

7.
(EEC) No 3719/88, licences shall not be transferable.

or, as the case may be,

‘Cheeses for export directly/via New York to Canada.
Article 18 of Regulation (EC) No 174/1999. Quota for
. . .

(year)'.

Where cheese is transported to Canada via European
third countries, such countries must be indicated
instead of, or with, a reference to New York;

8.
The competent authority of the Member State shall
report to the Commission, in accordance with Annex IV,
before the end of January for the preceding six-month
period and before the end of July for the previous quota
year, the number of licences issued and the quantity of
cheese concerned, together with the number of licences
stamped by the Canadian authorities and submitted by
the declarant and the quantity concerned.

(f)

in Section 22, the words ‘without export refund'.

9.

Chapter I shall not apply.

Licence applications shall be admissible only where

3.
applicants:

Article 19

(a) declare in writing that all material

falling within
Chapter 4 of the Combined Nomenclature and used
in the manufacture of products covered by their
application has been produced entirely within the
Community;

1.
An export licence shall be required for exports to
Switzerland of the cheeses listed in Annex III, which are
eligible for an exemption from or a reduction in customs
duties on import into that country.

authorities,

(b) undertake in writing to provide, at the request of the
competent
substantiation
which the latter consider necessary for the issuing of
licences and to accept, where applicable, any checks
by those authorities on the book-keeping and manu-
facturing conditions of the products concerned.

any further

4.
Licences shall be issued immediately after applica-
tions are submitted. At the request of applicants, a certi-
fied copy of the licence shall be issued.

5.
issue
Licences shall be valid from their date of
within the meaning of Article 21(1) of Regulation (EEC)
No 3719/88 until 31 December following that date.

However, licences may be issued from 20 December and
shall be valid from l January until 31 December of the
following year provided the words ‘quota for . . . (year)' in
Section 20 of licence applications and licences refer to the
following year.

Section 20 of licence applications and licences shall
2.
contain the words ‘Article 19 of Regulation (EC) No 174/
1999'.

Licences issued under this Article shall be valid only for
the exports referred to in paragraph 1.

Licence applications shall be admissible only where

3.
applicants:

(a) declare in writing that all material

falling within
Chapter 4 of the Combined Nomenclature and used
in the manufacture of products covered by their
application has been produced entirely within the
Community;

authorities,

(b) undertake in writing to provide, at the request of the
competent
substantiation
which the latter consider necessary for the issuing of
licences and to accept, where applicable, any checks
by those authorities of the book-keeping and manu-
facturing conditions of the products concerned.

any further

27. 1. 1999

EN

Official Journal of the European Communities

L 20/15

Chapter I shall apply to exports covered by refunds

4.
applications.

5.
In the case of exports not covered by refund applica-
tions, Section 22 of licence applications and licences shall
contain the words ‘Without an export refund'.

Licences shall be issued as soon as possible after applica-
tions are submitted.

Licences shall be valid from their date of issue within the
meaning of Article 21(1) of Regulation (EEC) No 3719/88
until the following 30 June.

6. With the exception of Article 5(1), the provisions of
Chapter I shall not apply to the exports referred to in
paragraph 5.

For cheeses not included in the nomenclature for refund
however, the eight-figure code of the Combined Nomen-
clature shall be entered in Section 16 of licence applica-
tions and licences.

Certified copies of licences shall be issued to appli-

7.
cants on request.

(c) the quantity of products

for which provisional
licences are being sought which they have exported to
the United States during the preceding three calendar
years. To this end, the trader whose name appears on
the relevant export declaration shall be regarded as the
exporter;

(d) the name and address of the importer in the United

States designated by the applicant;

(e) whether the importer is a subsidiary of the applicant.

In addition, applications shall be accompanied by a certi-
ficate from the designated importer stating that he is
eligible under the rules in force in the United States on
the issue of import licences for the products referred to in
paragraph 1 as part of the quota.

3. Where applications
licences are
submitted in respect of a quantity of products in excess of
one of the quotas referred to in paragraph 1 for the year
in question, the Commission may:

for provisional

(a) allocate provisional licences taking into account the
quantity of the same products exported to the United
States by the applicant in the past;

and/or

Article 20

(b) allocate provisional licences in preference to appli-
cants whose designated importers are subsidiaries;

1.
In accordance with the procedure provided for in
Article 30 of Regulation (EEC) No 804/68, the Commis-
sion may decide that export licences for products falling
within CN code 0406 for export to the United States of
America as part of the additional quota under the Agri-
culture Agreement
and the tariff quotas originally
resulting from the Tokyo Round and granted to Austria,
Finland and Sweden by the United States in Uruguay
Round list XX shall be issued in accordance with para-
graphs 2 to 11.

and/or

(c) apply a reduction coefficient
which application is made.

to the quantities for

4. Where applying a reduction coefficient would mean
allocating provisional licences for quantities of less than 5
tonnes, the Commission may allocate licences by drawing
lots.

2.
Traders may apply, within a period to be deter-
mined, for a provisional export licence for the export of
the products referred to in paragraph 1 during the
following calendar year subject to the lodging of a security
equal to 50 % of the rate fixed in accordance with Article
9.

5. Where applications are submitted for provisional
licences for quantities of product not exceeding the
quotas referred to in paragraph 1 for the year concerned,
the Commission may allocate the remaining quantities to
applicants in proportion to the quantities applied for.

Traders shall at the same time indicate:

(a)

the designation of product group covered by the
United States quota in accordance with Additional
Notes 16 to 23 and 25 in Chapter 4 of the Harmon-
ized Tariff Schedule of the United States of America
(most recent version);

6.
Section 20 of provisional licences as referred to in
the first subparagraph of paragraph 2 shall include the
following:

‘Provisional export
licence referred to in the first
subparagraph of Article 20(2) of Regulation (EC) No
174/1999: not valid for exports'.

(b) the product names in accordance with the Harmon-
ized Tariff Schedule of the United States of America
(most recent version);

7.
The names of importers designated by traders to
whom provisional licences are issued shall be forwarded
to the competent United States authorities.

L 20/16

EN

Official Journal of the European Communities

27. 1. 1999

In the case where an import licence for the quant-
8.
ities concerned is not allocated to the importer designated
by an operator, in circumstances which do not cast doubt
on the sincerity of the attestation referred to in the third
subparagraph of paragraph 2, the trader may be author-
ised by the Member State to designate another importer
provided that the latter appears on the list communicated
to the competent authorities of
the United States of
America, in accordance with paragraph 7. The Member
State shall inform the Commission as soon as possible of
the change of designated importer and the Commission
shall notify the change to the competent authorities of
the United States.

Securities shall be released in whole or in part for
9.
rejected applications or for quantities in excess of those
allocated.

10.
Before the end of the year for which provisional
licences are issued, the trader shall apply for the full
licence, even in the case of part quantities, which shall be
issued forthwith. The following words shall be entered in
Section 20 of the application for the full licence and in
the licence itself:

‘For export to the United States of America: Article 20
of Regulation (EC) No 174/1999'.

The full licences issued shall be valid only for exports as
referred to in paragraph 1 for the year in question.

11. With the exception of Articles 4 and 10, the provi-
sions of Chapter I shall apply to full licences.

CHAPTER III

Final provisions

Article

21

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

Article 22

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

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

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

Article 23

This Regulation shall enter into force on the seventh day
following its publication in the Official Journal of the
European Communities.

It shall apply from 1 February 1999.

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

Done at Brussels, 26 January 1999.

For the Commission

Franz FISCHLER

Member of the Commission

27. 1. 1999

EN

Official Journal of the European Communities

L 20/17

ANNEX I

Product categories laid down in Article 4(1)

Number

Description

CN code

I

II

III

IV

Butter, other fats and oils derived from
milk and spreads

Skimmed-milk powder

Cheese and curd

Other milk products

0405 10
0405 20 90
0405 90

0402 10

0406

0401
0402 21
0402 29
0402 91
0402 99
0403 10 11 to 0403 10 39
0403 90 11 to 0403 90 69
0404 90
2309 10 15
2309 10 19
2309 10 39
2309 10 59
2309 10 70
2309 90 35
2309 90 39
2309 90 49
2309 90 59
2309 90 70

L 20/18

EN

Official Journal of the European Communities

27. 1. 1999

Group
No

1

2

3

4

ANNEX II

Product groups set by Article 4(3)

Milk product code
(nomenclature for export refunds)

Group
No

Milk product code
(nomenclature for export refunds)

0401 10 10 9000
0401 20 11 9100
0401 20 11 9500
0401 20 91 9100
0401 20 91 9500
0401 30 11 9100
0401 30 11 9400
0401 30 11 9700
0401 30 31 9100
0401 30 31 9400
0401 30 31 9700
0401 30 91 9100
0401 30 91 9400
0401 30 91 9700

0401 10 90 9000
0401 20 19 9100
0401 20 19 9500
0401 20 99 9100
0401 20 99 9500
0401 30 19 9100
0401 30 19 9400
0401 30 19 9700
0401 30 39 9100
0401 30 39 9400
0401 30 39 9700
0401 30 99 9100
0401 30 99 9400
0401 30 99 9700

0402 21 11 9200
0402 21 11 9300
0402 21 11 9500
0402 21 11 9900
0402 21 91 9100
0402 21 91 9200
0402 21 91 9300
0402 21 91 9400
0402 21 91 9500
0402 21 91 9600
0402 21 91 9700
0402 21 91 9900

0402 21 17 9000
0402 21 19 9300
0402 21 19 9500
0402 21 19 9900
0402 21 99 9100
0402 21 99 9200
0402 21 99 9300
0402 21 99 9400
0402 21 99 9500
0402 21 99 9600
0402 21 99 9700
0402 21 99 9900

5

6

7

8

9

10

11

12

0402 29 15 9200
0402 29 15 9300
0402 29 15 9500
0402 29 15 9900
0402 29 91 9100
0402 29 91 9500

0402 29 19 9200
0402 29 19 9300
0402 29 19 9500
0402 29 19 9900
0402 29 99 9100
0402 29 99 9500

0402 91 11 9110
0402 91 11 9120
0402 91 31 9100
0402 91 51 9000
0402 91 91 9000

0402 91 11 9310
0402 91 11 9350
0402 91 11 9370
0402 91 31 9300
0402 91 51 9000
0402 91 91 9000

0402 91 19 9110
0402 91 19 9120
0402 91 39 9100
0402 91 59 9000
0402 91 99 9000

0402 91 19 9310
0402 91 19 9350
0402 91 19 9370
0402 91 39 9300
0402 91 59 9000
0402 91 99 9000

0402 99 11 9110
0402 99 11 9130
0402 99 11 9150
0402 99 31 9110
0402 99 31 9300
0402 99 31 9500
0402 99 91 9000

0402 99 11 9310
0402 99 11 9330
0402 99 11 9350
0402 99 31 9150
0402 99 31 9300
0402 99 31 9500
0402 99 91 9000

27. 1. 1999

EN

Official Journal of the European Communities

L 20/19

Group
No

13

14

15

16

17

18

Milk product code
(nomenclature for export refunds)

0402 99 19 9110
0402 99 19 9130
0402 99 19 9150
0402 99 39 9110
0402 99 39 9300
0402 99 39 9500
0402 99 99 9000

0402 99 19 9310
0402 99 19 9330
0402 99 19 9350
0402 99 39 9150
0402 99 39 9300
0402 99 39 9500
0402 99 99 9000

0403 10 11 9400
0403 10 11 9800
0403 10 13 9800
0403 10 19 9800

0403 10 31 9400
0403 10 31 9800
0403 10 33 9800
0403 10 39 9800

0403 90 11 9000
0403 90 13 9200
0403 90 13 9300
0403 90 13 9500
0403 90 13 9900
0403 90 19 9000

0403 90 31 9000
0403 90 33 9200
0403 90 33 9300
0403 90 33 9500
0403 90 33 9900
0403 90 39 9000

Group
No

19

20

21

22

23

Milk product code
(nomenclature for export refunds)

0403 90 51 9100
0403 90 51 9300
0403 90 53 9000
0403 90 59 9110
0403 90 59 9140
0403 90 59 9170
0403 90 59 9310
0403 90 59 9340
0403 90 59 9370
0403 90 59 9510
0403 90 59 9540
0403 90 59 9570

0403 90 61 9100
0403 90 61 9300
0403 90 63 9000
0403 90 69 9000

0404 90 21 9100
0404 90 23 9120
0404 90 23 9130
0404 90 23 9140
0404 90 23 9150

0404 90 81 9100
0404 90 83 9110
0404 90 83 9130
0404 90 83 9150
0404 90 83 9170

0405 10 11 9500
0405 10 11 9700
0405 10 19 9500
0405 10 19 9700
0405 10 30 9100
0405 10 30 9300
0405 10 30 9500
0405 10 30 9700
0405 10 50 9100
0405 10 50 9300
0405 10 50 9500
0405 10 50 9700
0405 10 90 9000
0405 20 90 9500
0405 20 90 9700
0405 90 10 9000
0405 90 10 9000

L 20/20

EN

Official Journal of the European Communities

27. 1. 1999

ANNEX III

Switzerland

Products referred to in Article 19(1)

CN code

Description
(Export refund nomenclature)

0406

Cheese and curd:

ex 0406 10 20

– – – – – Ricotta, salted

0406 20

0406 30

0406 40

– Grated or powdered cheese, of all kinds

– Processed cheese, not grated or powdered

– Blue-veined cheese

ex 0406 90

– Other cheese:

0406 90 23

– – – Edam

0406 90 25

– – – Tilsit

0406 90 27

– – – Butterk(cid:132)se

0406 90 61

– – – – – – – Grana Padano, Parmigiano Reggiano

0406 90 63

– – – – – – – Fiore Sardo, Pecorino

0406 90 69

– – – – – – – Other

0406 90 73

– – – – – – – Provolone

ex 0406 90 75

– – – – – – – Asiago, Caciocavallo, Montasio

0406 90 76

– – – – – – – Danbo, Fontal, Fontina, Fynbo, Havarti, Maribo, Samsø

0406 90 78

– – – – – – – Gouda

ex 0406 90 79

– – – – – – – Esrom, Italico, Saint-Nectaire, Saint-Paulin

ex 0406 90 87

– – – – – – – – – – – – – Idiazabal, Manchego, Roncal, manufactured

exclusively from sheep’s milk

ex 0406 90

– Elbo, Galantine, Molbo, Mimolette, Tybo

ex 0406 90

– Other cheese, of a fat content of 30 % or more by weight in the dry matter and of a
water content by weight in the non-fatty matter exceeding 52 % but not exceeding
67 %

ANNEX IV

Canada

Information requested under Article 18(8)

Member State:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date for the period from . . . . . . . . . . . . . . . . . . . . . . . . . . . . to . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trader’s name/address

CN code of product
(pursuant to Article 18(2)

LICENCES ISSUED

LICENCES STAMPED
by the Canadian authorities

Number of licences

tonnes

Quantity

tonnes

Number of licences

tonnes

Quantity

tonnes

Total

2
7

.

1

.

1
9
9
9

E
N

O

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f
i
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o
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e
a
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e
s

L
2
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2
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