Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products
Date: 1999-05-17
Institutions: Council of the European Union
Subjects: common organisation of markets, extra-EU trade, intra-EU trade, milk, milk product

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COUNCIL REGULATION (EC) No 1255/1999

of 17 May 1999

on the common organisation of the market in milk and milk products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37
thereof,

Having reard to the proposal from the Commission (1),

Having regard to the opinion of
Parliament (2),

the European

Having regard to the opinion of the Economic and
Social Committee (3),

Having regard to the opinion of the Committee of the
Regions (4),

Having regard to the opinion of
Auditors (5),

the Court of

(1) Whereas the operation and development of the
common market in agricultural products should
be accompanied by the establishment of a
in
common agricultural policy
particular a common organisation of agricultural
markets which may
forms
depending on the product;

to include

various

take

(2) Whereas the aim of the common agricultural
policy is to attain the objectives set out
in
Article 33 of the Treaty; whereas, in the milk
sector, in order to stabilise markets and to ensure
a fair standard of
living for the agriculture
community, it is necessary that the intervention
agencies, based on a single price system, may
take
intervention measures on the market
including the buying-in of butter and skimmed
milk powder and the grant of private storage

(1) OJ C 170, 4.6.1998, p. 38.
(2) Opinion delivered on 6 May 1999 (not yet published in

the Official Journal).

(3) OJ C 407, 28.12.1998, p. 203.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.

aids for these products; whereas, however, such
measures should be standardised so as not to
impede the free movement of goods in question
within the Community;

of milk

(3) Whereas by Council Regulation (EEC) No 3950/
92 of 28 December 1992 establishing an
levy in the milk and milk products
additional
sector (6), an additional
levy scheme for the
products was
and milk
market
introduced for
reducing the
the purpose of
imbalance between supply and demand on the
milk and milk-product market and resulting
structural surpluses; whereas this scheme will
apply for eight new consecutive periods of 12
months commencing on 1 April 2000;

and milk

products within

(4) Whereas in order to stimulate the consumption
of milk
the
Community and to improve the competitiveness
of these products on the international markets,
the level of market support should be reduced, in
particular, through a gradual reduction of the
target prices and intervention prices for butter
and skimmed milk powder starting from 1 July
2005;

butter

should maintain

(5) Whereas the implementation of an intervention
the
system for
competitive position of butter on the market and
provide for the most efficient possible storage;
whereas the quality requirements to be observed
in respect of butter constitute a determining
factor for attaining these objectives; whereas
buying into intervention should take place in so
far as it is necessary to maintain the stability of
the market by reference to the market price of
butter in the Member States, and should be
carried out under a tendering procedure;

(6) Whereas, in the case of private storage aid for
butter, it is appropriate to subject its grant to
butter produced from cream and milk of
Community origin and to maintain a reference to
national quality grades as a condition of
eligibility;

(6) OJ L 405, 31.12.1992, p. 1. Regulation as last amended
by Regulation (EC) No 1256/1999 (see page 73 of this
Official Journal).

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importance

(7) Whereas in addition to intervention in respect of
butter and fresh cream, other Community
intervention measures are required to enable the
best return to be obtained from milk proteins
and to support the prices of products which have
special
in determining producer
prices for milk; whereas these measures should
take the form of buying-in of skimmed milk
powder and of granting private storage aid for
the normal
this product; whereas, however,
buying into intervention of
skimmed milk
powder may be suspended when a certain
quantity is reached and may be replaced by
buying-in under a tender procedure;

(8) Whereas to avoid distortion between operators
selling into public intervention and in the interest
of
the proper administration of Community
funds, a minimum requirement should be set for
the protein content of
skimmed-milk-powder
bought into intervention; whereas the content
should be
current
commercial standards and in such way that it
cannot act as a criterion for exclusion from
intervention;

fixed taking account of

(9) Whereas, to contribute to balancing the milk
market and to stabilise the market prices for
milk and milk products, provision should be
made for complementary measures increasing the
possibility of disposing of milk products;
whereas these measures should include the grant
of private storage aid for certain types of
cheeses, on the one hand, and the grant of aids
for the marketing of certain milk products with a
view to specific uses and destinations;

(10) Whereas, in order to stimulate the consumption
of milk by young people, provision should be
made for the Community to defray a part of the
expenditure occasioned by granting aid for the
supply of milk to pupils in schools;

provision should be made for keeping the overall
income support at
the Member
States’ total reference quantities as applicable at
the entry into force of this Regulation;

the level of

a

to

for

provide

appropriate

(12) Whereas the conditions for milk production and
the income situation of producers significantly
vary in different production areas of
the
Community; whereas a Community-wide scheme
with uniform dairy payments to all producers
would be too rigid to respond adequatly to
structural and natural disparities and the diverse
needs resulting therefrom; whereas, therefore, it
is
flexible
framework of additional Community payments
to be determined and made by Member States
within fixed global amounts and in accordance
with certain common criteria; whereas the global
amounts should be allocated to the Member
States on the basis of
reference
quantity for milk; whereas the common criteria
are intended,
inter alia, to prevent additional
payments from producing discriminatory effects
relevant
and to take
full account of
the Community;
multilateral commitments of
whereas, in particular, it is essential that Member
States be obliged to use their discretionary
powers exclusively on the basis of objective
criteria, to pay full regard to the concept of
treatment and to avoid market and
equal
competition distortions; whereas it is appropriate
to provide
additional
payments may take; whereas these forms should
be premium supplements and area payments;

forms

total

their

that

the

the

for

(13) Whereas

should

premium supplements

be
granted in addition to the amounts of dairy
premium granted per tonne of available premium
reference quantities; whereas it is also necessary
to limit the total amount of support which may
be granted per premium amount per year;

producers

for milk

in the milk sector,

(11) Whereas, as a consequence of reduced market
income support
support
measures
be
should
introduced; whereas these measures should take
the form of a dairy premium the level of which
should develop in parallel with the gradual
reduction of market support; whereas the level of
individual income support should be calculated
on the basis of the individual reference quantities
of the producers concerned; whereas, to ensure
the proper application of the scheme, to take
account of the multilateral commitments of the
Community and for reasons of budget control,

permanent

(14) Whereas additional area payments should only
be granted for permanent pasture which does not
benefit from other Community market support
measures; whereas area payments
should be
applied within the limits of regional base areas
of
be
established by Member States according to
historical reference data; whereas the maximum
amount of area payment which may be granted
per hectare, including additional area payments
under the common market organisation for beef
and veal, should be comparable with the average
support per hectare under the support system for
producers of certain arable crops;

pasture which

should

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(15) Whereas,
economic
granted within certain time limits;

in order
the desired
impact, direct payments must be

to achieve

(16) Whereas, should the administration of bovine
somatrophin to dairy cows be prohibited under
should
Community
establish penalties analogous to those foreseen in
the common market organisation for beef and
veal
in the case of use of certain prohibited
substances in beef production;

the Commission

law,

(17) Whereas the creation of a single Community
market for milk and milk products involves the
introduction of a single trading system at the
external frontiers of the Community; whereas a
trading system including import duties and
in addition to the intervention
export refunds,
the
measures,
Community market; whereas the trading system
should be based on the undertakings accepted
under the Uruguay Round of multilateral trade
negotiations;

in principle,

stabilise

should,

(18) Whereas,

in order to monitor the volume of
trade in milk and milk products with third
countries, provision should be made for a system
of
certain
products, which includes
lodging of a
security to guarantee that the transactions for
which such licences are granted are effected;

import and export

licences
the

for

(19) Whereas

in order

to prevent or counteract
adverse effects on the Community market which
could result from imports of certain agricultural
products, imports of one or more such products
should be subject to payment of an additional
import duty, if certain conditions are fulfilled;

(20) Whereas

it

is

from

under

appropriate,

to open and administer
international

certain
to confer on the Commission the
conditions,
tariff quotas
power
resulting
agreements
concluded in accordance with the Treaty or from
other acts of the Council; whereas, moreover, the
Commission should have analogous powers
concerning certain tariff quotas opened by third
countries;

difference between prices within the Community
and on the world market, and falling within the
WTO Agreement on Agriculture (1), should serve
to
in
international trade in milk and milk products;
whereas these refunds should be subject to limits
in terms of quantity and value;

safeguard Community

participation

the

rules

relating

(22) Whereas compliance with the limits in terms of
value should be ensured at
the time when
refunds are fixed through the monitoring of
to the
payments under
European Agricultural Guidance and Guarantee
Fund; whereas monitoring can be facilitated by
the compulsory advance fixing of refunds, while
allowing
of
differentiated refunds, of changing the specified
destination within a geographical area to which
a single refund rate applies; whereas, in the case
of a change of destination, the refund applicable
to the actual destination should be paid, with a
to the
the
ceiling
destination fixed in advance;

possibility,

applicable

amount

case

the

the

of

in

(23) Whereas ensuring compliance with the quantity
limits calls for the introduction of a reliable and
effective system of monitoring; whereas, to that
end, the granting of refunds should be made
subject to an export licence; whereas refunds
should be granted up to the limits available,
depending on the particular situation of each
product concerned; whereas exceptions to that
rule should only be permitted in the case of
processed products not listed in Annex II to the
Treaty, to which volume limits do not apply, and
in the case of food-aid operations, which are
exempt from any limit; whereas monitoring of
the quantities exported with refunds during the
marketing years as referred to in the WTO
Agreement on Agriculture should be carried out
on the basis of export licences issued for each
marketing year;

(24) Whereas,

in addition to the system described
above, and to the extent necessary for its proper
working,
for
regulating or, when the situation on the market
so requires, prohibiting the use of
inward
processing arrangements;

be made

provision

should

(25) Whereas

it

is

for
appropriate
measures to be taken when a substantial rise or
fall in prices disturbs or threatens to disturb the
Community market;

to provide

(21) Whereas provisions for granting a refund on
to third countries, based on the

exports

(1) OJ L 336, 23.12.1994, p. 22.

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(26) Whereas

at

and

circumstances,

frontiers of
the

duty mechanism could,

the customs duty system makes

it
possible to dispense with all other protective
measures
the
external
the
internal
Community; whereas, however,
in
market
exceptional
defective;
whereas, in such cases, so as not to leave the
Community market without defence against
disturbances which may arise therefrom,
the
Community should be able to take all necessary
measures without delay; whereas those measures
should be in accordance with the obligations
derived from the relevant WTO agreements;

prove

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

(28) Whereas the establishment of a single market
would be jeopardised by the granting of certain
aids; whereas, therefore, the provisions of the
Treaty which allow the assessment of aids
granted by Member States and the prohibition of
those which are incompatible with the common
market should apply in the common market
organisation for milk and milk products;

(29) Whereas it is necessary that, as the common
market in milk and milk products develops, the
Member States and the Commission should keep
each other
information
supplied with the
necessary for applying this Regulation;

(30) Whereas, in order to facilitate implementation of
the proposed measures, a procedure should be
provided for
cooperation
between Member States and the Commission
within a Management Committee;

establishing

close

(31) Whereas expenditure incurred by the Member
States as a result of the obligations arising out of
the application of
this Regulation should be
financed by the Community in accordance with
Council Regulation (EC) No 1258/1999 of
17 May 1999 on the financing of the common
agricultural policy (1);

(32) Whereas the common organisation of the market
take

and milk

in milk

products

should

(1) See page 103 of this Official Journal.

appropriate account, at the same time, of the
objectives set out in Articles 33 and 131 of the
Treaty;

(33) Whereas the common organisation of the market
in milk and milk products laid down in Council
Regulation (EEC) No 804/68 of 27 June 1968
on the common organisation of the market in
milk and milk products (2) has been amended
times; whereas, by reason of
several
their
number,
their complexity and their dispersal
among several Official Journals, these texts are
difficult to use and thus lack the clarity which
should be an essential feature of all legislation;
whereas, under these circumstances, they should
be consolidated in a new Regulation and the
aforementioned Regulation (EEC) No 804/68
should be repealed; whereas the essential rules of
Council Regulations (EEC) No 986/68 (3), (EEC)
No 987/68 (4),
(EEC)
No 1422/78 (6),
(EEC)
No 2990/82 (8),
(EEC)
No 865/84 (10) and (EEC) No 777/87 (11) have
been incorporated into this Regulation, and
should therefore be repealed;

(EEC) No 508/71 (5),
(EEC) No 1723/81 (7),
(EEC) No 1842/83 (9),

(34) Whereas the change from the arrangements in
Regulation (EEC) No 804/68 to those in this
Regulation could give rise to difficulties which
are not dealt with in this Regulation; whereas, in
order to deal with that eventuality, provision
should be made for the Commission to adopt the
necessary transitional measures; whereas
the
Commission should also be authorised to solve
specific practical problems,

HAS ADOPTED THIS REGULATION:

(2) OJ L 148, 27.6.1968, p. 13. Regulation as last amended
by Regulation (EC) No 1587/96 (OJ L 206, 16.8.1996,
p. 21).

(3) OJ L 169, 18.7.1968, p. 4. Regulation as last amended
by Regulation (EC) No 1802/95 (OJ L 174, 26.7.1995,
p. 31).

(4) OJ L 169, 18.7.1968, p. 6. Regulation as last amended
by Regulation (EEC) No 1435/90 (OJ L 138, 31.5.1990,
p. 8).

(5) OJ L 58, 11.3.1971, p. 1.
(6) OJ L 171, 28.6.1978, p. 14.
(7) OJ L 172, 30.6.1981, p. 14. Regulation as last amended
by Regulation (EEC) No 863/84 (OJ L 90, 1.4.1984,
p. 23).

(8) OJ L 314, 10.11.1982, p. 26. Regulation as

last
amended by Regulation (EC) No 2442/96 (OJ L 333,
21.12.1996, p. 1).

(9) OJ L 183, 7.7.1983, p. 1. Regulation as last amended by
Regulation (EC) No 1958/97 (OJ L 277, 10.10.1997,
p. 1).

(10) OJ L 90, 1.4.1984, p. 25.
(11) OJ L 78, 20.3.1987, p. 10. Regulation as last amended
by Regulation (EEC) No 1634/91 (OJ L 150, 15.6.1991,
p. 26).

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The common organisation of the market in milk and milk products shall cover the
following products;

Article 1

CN code

Description of goods

(a)

0401

(b)

0402

(c)

0403 10 11
to 39

0403 90 11
to 69

(d)

0404

Milk and cream, not concentrated nor containing added sugar or other
sweetening matter

Milk and cream, concentrated or containing added sugar or other sweetening
matter

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or
acidified milk and cream, whether or not concentrated or containing added
sugar or other sweetening matter not flavoured nor containing added fruit,
nuts or cocoa

Whey, whether or not concentrated or containing added sugar or other
sweetening matter; products consisting of natural milk constituents, whether
or not containing added sugar or other sweetening matter, not elsewhere
specified or included

(e) ex 0405

Butter and other fats and oils derived from milk; dairy spreads of a fat
content of more than 75 % but less than 80 %

(f)

0406

Cheese and curd

(g)

1702 19 00

Lactose and lactose syrup not containing added flavouring or colouring
matter, containing by weight 99 % or more lactose, expressed as anhydrous
lactose, calculated on the dry matter

(h)

2106 90 51

Flavoured or coloured lactose syrup

(i) ex 2309

Preparations of a kind used in animal feeding:

— Preparations and feedingstuffs

to which this
Regulation applies, directly or by virtue of Council Regulation (EEC)
No 2730/75 (1), except preparations and feedingstuffs to which Council
Regulation (EEC) No 1766/92 (2) applies.

containing products

(1) OJ L 281, 1.11.1975, p. 20. Regulation as last amended by Regulation (EC) No 2931/95 (OJ L 307, 20.12.1995,

p. 10).

(2) OJ L 181, 1.7.1992, p. 21. Regulation as last amended by Regulation (EC) No 923/96 (OJ L 126, 24.5.1996,

p. 37).

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TITLE I

INTERNAL MARKET

CHAPTER I

Prices

Article 2

The milk year for all products listed in Article 1 shall
begin on 1 July and end on 30 June of the following
year.

Article 3

The target price in the Community for milk
and

1.
containing 3,7 % fat, delivered to dairies
expressed in euro per 100 kg, shall be set at:

— 311,79 for the period from 1 July 2005 until

30 June 2006,

— 295,38 for the period from 1 July 2006 until

30 June 2007,

— 278,97 as from 1 July 2007;

(b) for skimmed milk powder at:

— 205,52 for the period from 1 July 2000 until

30 June 2005,

— 195,24 for the period from 1 July 2005 until

30 June 2006,

— 184,97 for the period from 1 July 2006 until

30 June 2007,

— 30,98 for the period from 1 July 2000 until 30 June

— 174,69 as from 1 July 2007.

2005,

— 29,23 for the period from 1 July 2005 until 30 June

2006,

The Council, acting in accordance with the
2.
procedure laid down in Article 37(2) of the Treaty,
may change the intervention prices.

— 27,47 for the period from 1 July 2006 until 30 June

2007,

Article 5

— 25,72 as from July 2007.

The price system is established without prejudice to
the implementation of the additional levy scheme.

The target price shall be deemed to be that price
which it
is aimed to obtain for the aggregate of
producers’ milk sales on the Community market and
on external markets.

2.
The Council, acting in accordance with the
procedure laid down in Article 37(2) of the Treaty,
may change the target price.

Article 4

The

1.
intervention prices
expressed in euro per 100 kg, shall be set:

in the Community,

(a) for butter at:

CHAPTER II

Intervention system

Article 6

1. Where the market prices of butter are, in one or
more Member States, at a level lower than 92 % of the
intervention price for a representative period, buying-
in by the intervention agencies shall be carried out in
the Member State(s)
concerned under an open
invitation to tender on the basis of specifications to be
determined.

— 328,20 for the period from 1 July 2000 until

30 June 2005,

The buying-in price fixed by the Commission shall not
be less than 90 % of the intervention price.

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Where market prices
State(s)
in
concerned are at a level equal to, or higher than, 92 %
of the intervention price for a representative period,
buying-in under a tendering procedure
shall be
suspended.

the Member

— salted butter produced from cream or milk in an
approved undertaking of
the Community of a
minimum butterfat content, by weight, of 80 %, a
maximum water content, by weight, of 16 % and a
maximum salt content, by weight, of 2 %.

Under paragraph 1,

2.
the intervention agencies
may only buy in butter produced directly and
exclusively from pasteurised cream in an approved
undertaking in the Community, and

The butter shall be classified according to national
quality grades to be determined and shall be marked
accordingly.

(a) meet the following requirements:

— a minimum butterfat content, by weight, of
82 % and a maximum water content, by
weight, of 16 %,

— an age at the time of buying-in not exceeding a

maximum to be fixed,

— conditions to be determined as regards the

minimum quantity and packaging;

(b) meet

certain requirements

to be determined

regarding in particular:

— preservation; additional requirements may be

laid down by the intervention agencies,

— free fatty acid content,

— peroxide content,

— microbiological standard,

— sensory characteristics

(appearance,

texture,

taste and smell).

National quality grades to be determined may be
shown on the packaging of butter which meets
national quality requirements.

Flat rate transport costs shall be borne, under
conditions to be fixed, by the intervention agency
if the butter is delivered to a cold store situated at
a distance greater than a distance to be determined
from the place where the butter was in store.

The aid shall be fixed in the light of storage costs and
the likely trend in prices for fresh butter and butter
from stocks. Where, at the time of removal from
storage, an adverse change unforeseeable at the time
of entry into storage has occured on the market, the
aid may be increased.

Private storage aid shall be subject to the drawing-up
of a storage contract concluded, in accordance with
provisions to be laid down, by the intervention agency
of the Member State on whose territory the cream or
butter qualifying for the aid is stored.

the market

the
Where
Commission may decide to remarket some or all of
the cream or butter covered by private storage
contracts.

situation

requires,

so

4.
Butter bought in by the intervention agencies
shall be disposed of at a minimum price and under
conditions to be determined so as to avoid disturbing
the balance on the market and to ensure purchasers
equal treatment and access to the butter to be sold.
Where the butter put up for sale is intended for
export, special conditions may be laid down to ensure
that the product is not diverted from its destination
and to take account of requirements specific to such
sales.

For butter kept in public storage which cannot be
disposed of during a milk year under normal
conditions, special measures may be taken. Where
warranted by such measures, special measures shall
also be taken with a view to maintaining possibilities
of disposing of products which were subject to aid as
referred to in paragraph 3.

3.

Aid for private storage shall be granted for:

The intervention arrangements shall be applied

5.
so as to:

— cream,

— unsalted butter produced from cream or milk in an
approved undertaking of
the Community of a
minimum butterfat content, by weight, of 82 %
and a maximum water content, by weight, of
16 %,

— maintain the competitive position of butter on the

market,

— safeguard the original quality of the butter as far

as possible,

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— ensure storage as rationally as possible.

6.

For the purposes of this Article:

soon as the quantities offered for intervention in the
period from 1 March to 31 August each year exceed
109 000 tonnes.

— (cid:28)milk’ shall mean cow’s milk produced in the

Community,

— (cid:28)cream’ shall mean cream obtained directly and

exclusively from milk.

Article 7

The intervention agency designated by each of
1.
the Member States shall, under conditions to be
determined, buy in at
the intervention price top
quality skimmed milk powder made by the spray
process and obtained in an approved undertaking in
from
the Community,
skimmed milk, which is offered to it during the period
from 1 March to 31 August and which:

exclusively

directly

and

— meets a minimum protein content of 35,6 % by

weight of the non-fatty dry extract,

— meets preservation requirements to be laid down,

— meets conditions to be determined as regards the

minimum quantity and packaging.

intervention agencies

However,
shall also buy in
skimmed milk powder whose protein content is at
least 31,4 % and less than 35,6 %, of the non-fatty dry
extract, provided that the other provisions laid down
in the first subparagraph above are met. In that case,
the buying-in price shall be equal to the intervention
price less 1,75 % for each percentage point by which
the protein content is lower than 35,6 %.

The intervention price shall be that in force on the day
of manufacture of the skimmed milk powder and shall
apply to skimmed milk powder delivered to the store
intervention agency. Flat-rate
designated by
transport costs shall be borne, under conditions to be
fixed, by the intervention agency if the skimmed milk
powder is delivered to a store situated at a distance
greater than a distance to be determined from the
place where the skimmed milk powder was in store.

the

The skimmed milk powder may only be stored in
stores meeting conditions to be fixed.

2.
The Commission may suspend the buying in of
skimmed-milk powder provided for in paragraph 1 as

In that case buying-in by the intervention agencies
may be carried out under an open standing invitation
to tender on the basis of
to be
determined.

specifications

Aid for the private storage of skimmed milk
3.
top quality, obtained in an approved
powder of
undertaking in the Community directly and exclusively
from skimmed milk may be granted, in particular, if
trends in prices and stocks of the products indicate a
serious
imbalance in the market which could be
avoided or reduced by means of seasonal storage. In
order to be eligible for aid, the skimmed milk powder
must meet conditions to be fixed.

The aid shall be fixed in the light of storage costs and
the likely trend in prices for skimmed milk powder.

Private storage aid shall be subject to the drawing-up
of a storage contract concluded, in accordance with
provisions to be laid down, by the intervention agency
of the Member State on whose territory the skimmed
milk powder qualifying for the aid is stored. Where
the market situation so requires, the Commission may
decide to remarket some or all of the skimmed milk
powder covered by private storage contracts.

Skimmed milk powder bought

4.
the
intervention agency shall be disposed of, at a
minimum price and under conditions to be determined
so as to avoid disturbing the balance on the market
and to ensure purchasers equal treatment and access
to the skimmed milk powder to be sold.

in by

Where the skimmed milk powder put up for sale is
intended for export, special conditions may be laid
down to ensure that the product is not diverted from
its destination and to take account of requirements
specific to such sales.

in public storage
For skimmed milk powder kept
which cannot be disposed of during a milk year under
normal conditions, special measures may be taken.

5. Within the meaning of this Article,
(cid:28)skimmed
milk’ shall mean skimmed milk obtained directly and
exclusively
the
Community.

from cow’s milk

produced in

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Article 8

Under conditions to be determined, aid shall be

1.
granted for the private storage of:

4.
If, at the time the storage contract expires, the
level of market prices for cheeses in store is higher
than that prevailing when the contract was signed, a
decision may be taken to adjust the amount of aid
accordingly.

(a) Grana Padano cheese at least nine months old;

Article 10

(b) Parmigiano Reggiano cheese at least 15 months

old;

There shall be adopted in accordance with the
procedure laid down in Article 42:

(c) Provolone cheese at least three months old;

if these cheeses reach certain standards.

(a) the detailed rules for the application of this chapter
and, in particular, those for establishing the market
prices for butter;

2.
The amount of private storage aid shall be fixed
taking account of storage costs and the likely trend of
market prices.

(b) the amounts of aid for private storage referred to

in this chapter;

The

3.
intervention agency designated by the
Member State in which the said cheeses are produced
and qualify to bear the designation of origin shall
to
implement
paragraph 1.

the measures

pursuant

taken

conclusion of a storage

The granting of private storage aid shall be subject to
contract with the
the
intervention agency. The contract shall be drawn up
under conditions to be determined.

the market

Where
the
Commission may decide that the intervention agency
will remarket some or all of the cheese stored.

situation

requires,

so

Article 9

be

Private

storage

aid may

for
granted
1.
longkeeping cheeses and for
cheeses which are
manufactured from sheep and/or goat’s milk and
require at least six months for maturing, if for those
cheeses price developments and the stock situation
indicate a serious imbalance of the market which may
be eliminated or reduced by seasonal storage.

(c) the other decisions and measures which may be

taken by the Commission under this chapter.

CHAPTER III

Marketing measures

Article 11

Aid shall be granted for skimmed milk and
1.
skimmed-milk
as
feedingstuffs, if these products reach certain standards.

intended

powder

use

for

the purposes of

For
this Article, buttermilk and
buttermilk powder shall be regarded as skimmed milk
and skimmed-milk powder.

Aid amounts shall be fixed taking into account

2.
the following factors:

— the intervention price for skimmed-milk powder,

The amount of aid shall be fixed with reference
2.
to storage costs and the balance to be maintained
between cheeses for which aid is granted and other
cheeses coming on the market.

— development of

the supply situation as regards
skimmed-milk and skimmed-milk powder, and
developments in the use thereof as feed,

3.
Should the situation of the Community market
so require, the Commission may decide to remarket
some or all of the cheeses covered by private storage
contracts.

— trends in calf prices,

— trends in the market prices for competing proteins
as compared with those for skimmed-milk powder.

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Article 12

paragraph

Under the conditions determined in accordance
1.
for
with
Community-produced skimmed milk processed into
casein and caseinates, if such milk and the casein or
caseinates produced from it reach certain standards.

granted

shall

aid

be

2,

2.
The aid may vary, according to whether the
skimmed milk is processed into casein or caseinates
and according to the quality of those products.

Aid shall be fixed taking into account the following
factors:

— the intervention price for skimmed-milk powder, or
the market price for first-quality spray-process
skimmed-milk powder,
if that price exceeds the
intervention price,

In addition to the Community aid, Member
supplying the
in

2.
States may grant national aid for
products
educational establishments.

specified in paragraph 1 to pupils

3.
In the case of whole milk, the Community aid
shall be equal to 95 % of the target price for milk. In
the case of other milk products, the amounts of aid
the milk
shall be determined taking into account
components of the products concerned.

4.
The aid referred to in paragraphs 1 shall be
granted on a maximum quantity of 0,25 litre of milk
equivalent per pupil and per day.

Article 15

The following shall be adopted in accordance with the
procedure laid down in Article 42:

— the market prices for casein and caseinates on the

Community and world markets.

(a) the detailed rules for the application of this chapter
and, in particular, the conditions under which the
aids set out therein may be granted,

Article 13

1. When surpluses of milk products build up, or are
likely to occur, the Commission may decide that aid
shall be granted to enable
cream, butter and
concentrated butter to be purchased at reduced prices:

(b) the amounts of the aids referred to in this chapter,

(c) the lists of products referred to in Article 13(d)

and Article 14(1),

(d) the other decisions and measures that may be
adopted by the Commission under this chapter.

(a) by

non-profit

making

institutions

and

organisations;

CHAPTER IV

(b) by military forces and units of comparable status

Direct payments

in the Member States;

(c) by manufacturers of pastry products and ice-

cream;

(d) by manufacturers of other

foodstuffs

to be

determined;

Article 16

1.
Producers shall qualify for a dairy premium. It
shall be granted per calendar year, per holding and per
individual reference quantity eligible for
tonne of
premium and available on the holding.

(e) for the direct consumption of concentrated butter.

2.
The premium amount per tonne of individual
reference quantity eligible for premium shall be set at:

Article 14

— EUR 5,75 for the calendar year 2005,

1.
Community aid shall be granted for supplying to
pupils in educational establishments certain processed
milk products falling within CN codes 0401, 0403,
0404 90 and 0406 or CN code 2202 90.

— EUR 11,49 for the calendar year 2006,

— EUR 17,24 for the calendar year 2007 and the

subsequent calendar years.

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3.
The individual reference quantity eligible for
premium shall be equal to the individual reference
quantity for milk available on the holding on
31 March of the calendar year concerned, without
prejudice to reductions resulting from the application
of
reference quantities
Individual
which have been the subject of temporary transfers in
accordance with Article 6 of Regulation (EEC)
No 3950/92 on 31 March of
the calendar year
concerned shall be deemed to be available on the
holding of the transferee for that calendar year.

subparagraph 2.

that Member State set out

Where, on 31 March of a calendar year, the sum of all
individual reference quantities in a Member State
exceeds the sum of the corresponding total quantities
of
in Article 3(2) of
Regulation (EEC) No 3950/92 for the 12 month
period 1999/2000, the Member State concerned shall,
on the basis of objective criteria, take the necessary
steps
to reduce accordingly the total amount of
individual reference quantities eligible for premium on
its territory for the calendar year concerned.

4.
For the purposes of this chapter, the definitions
of (cid:28)producer’ and (cid:28)holding’ laid down in Article 9 of
Regulation (EEC) No 3950/92 shall apply.

Article 17

1. Member States shall, on a yearly basis, make
additional payments to producers in their territory
totalling the global amounts set out in Annex I. Such
payments shall be made according to objective criteria
relevant production
including,
structures and conditions, and in such a way as to
ensure equal
treatment between producers and to
avoid market and competition distortions. Moreover,
such payments shall not be linked to fluctuations of
market prices.

in particular,

the

Additional payments may be made in the form of
area

(Article 18)

and/or

2.
premium supplements
payments (Article 19).

Article 18

1.
Premium supplements may only be granted as a
supplementary amount per premium amount as set out
in Article 16(2).

— EUR 27,8 per tonne for the calendar year 2006,

— EUR 41,7 per tonne for the calendar year 2007

and subsequent calendar years.

Article 19

Area payments shall be granted per hectare of

1.
permanent pasture:

(a) which is available to a producer during the

calendar year concerned;

(b) which is not used to comply with the specific
referred to in
requirements
stocking density
Article 15(3) of Council Regulation (EC) No 1254/
1999
common
organisation of the market in beef and veal (1); and

17 May

1999

the

on

of

(c) in respect of which no payments under the support
system laid down for producers of certain arable
crops, under the aid system for dried fodder and
under Community
other
aid
permanent or horticultural crops are claimed for
the same year.

schemes

for

The area of permanent pasture in a region for which
area payments may be granted shall not exceed the
relevant regional base area.

2.
The regional base areas shall be established by
Member States in accordance with Article 17 of
Regulation (EC) No 1254/1999.

3.
The maximum area payment per hectare which
may be granted, including area payments pursuant to
Article 17 of Regulation (EC) No 1254/1999, shall not
exceed EUR 350 for the calendar year 2005 and the
subsequent calendar years.

Article 20

Before 1 January 2005, Member States shall
1.
provide the Commission with detailed information on
their national arrangements concerning the granting of
these
additional
arrangements
the
than one month following
Commission not
adoption.

changes
communicated

payments. Any

shall

later

be

to

of

The

total

2.
amount of dairy premium and
premium supplement, which may be granted per
premium amount per tonne of individual reference
quantity eligible for premium, shall not exceed:

Before 1 April 2007, Member States shall submit
the
detailed
the Commission

2.
to
implementation of Articles 17 to 19.

reports

on

— EUR 13,9 per tonne for the calendar year 2005,

(1) See page 21 of this Official Journal.

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Before 1 January 2008, the Commission shall evaluate
the implementation of Articles 17 to 19 and examine
the distribution of Community funds between Member
States as provided for in Annex I. If necessary, the
Commission shall make appropriate proposals to the
Council.

Article 21

Direct payments under this chapter shall be made,
from
after verification of entitlement
16 October of the calendar year concerned and, save
in duly justified exceptional cases, no later
than
30 June of the following year.

to payment,

Article 23

Where, by or on the basis of Community law, the
administration of bovine somatrophin to dairy cows is
that
not authorised or where the availability of
substance on farms
the
regulated otherwise,
is
Commission shall, in accordance with the procedure
laid down in Article 42, adopt measures which shall
be analogous to those provided for in Article 23 of
Regulation (EC) No 1254/1999.

Article 24

Detailed rules for the application of this chapter shall
be adopted by the Commission in accordance with the
procedure laid down in Article 42.

Article 22

Article 25

The amounts of the direct payments set out in this
chapter may be changed in the light of developments
in production, productivity and the markets, according
to the procedure laid down in Article 37(2) of the
Treaty.

incurred in granting the direct
expenditure
The
payments provided for
shall be
considered as relating to intervention measures within
the meaning of Article 2(2) of Regulation (EC)
No 1254/1999.

in this chapter

TITLE II

TRADE WITH THIRD COUNTRIES

Article 26

Imports

into the Community of any of

1.
the
products listed in Article 1 shall be subject to the
presentation of an import licence. Exports from the
Community of any such products may be made
subject to presentation of an export licence.

2.
Licences shall be issued by Member States to any
applicant, irrespective of his place of establishment in
the Community and without prejudice to the measures
taken for the application of Articles 29, 30 and 31.

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

the licence; except

in cases of

The

following

3.
the
Commission in accordance with the procedure laid
down in Article 42:

adopted

shall

by

be

(a) the list of products in respect of which export

licences are required;

(b) the term of validity of the licences; and

(c) the other detailed rules for the application of this

Article.

Article 27

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

Article 28

1.
In order to prevent or counteract adverse effects
on the market in the Community which may result

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from imports of certain products listed in Article 1,
imports of one or more of such products at the rate of
duty referred to in Article 27 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 300 of
the
Treaty in the framework of the Uruguay Round of
trade negotiations have been fulfilled
multilateral
unless
imports are unlikely to disturb the
the
Community market, or where the effects would be
disproportionate to the intended objective.

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

— method based on the chronological order of the
lodging of applications (using the (cid:28)first come, first
served’ principle),

— method of distribution in proportion to the
quantities requested when the applications were
lodged (using
examination’
method),

(cid:28)simultaneous

the

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

— method based on taking traditional trade patterns
into account (using the (cid:28)traditional importers/new
arrivals’ method).

import

additional

The trigger volumes to be exceeded in order to have
the
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.

imposed

shall

duty

The import prices to be taken into consideration
3.
for
import duty shall be
imposing an additional
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 42. Such detailed rules
shall specify in particular:

(a) the products to which additional

import duties
shall be applied under the terms of Article 5 of the
Agreement on Agriculture;

Other appropriate methods may be adopted.

They shall avoid any discrimination between the
operators concerned.

The method of administration adopted shall,
3.
where appropriate, give due weight
to the supply
requirements on 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,
from
without prejudice
agreements
the
Uruguay Round trade negotiations.

concluded in the

framework of

resulting

to the

rights

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

(a) guarantees covering the nature, provenance and

origin of the product;

(b) recognition of the document used for verifying the

guarantees referred to in (a); and

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

(c) the conditions under which import licences are

issued and their term of validity.

Article 29

1.
Tariff quotas for the products listed in Article 1
resulting from agreements concluded in accordance
with Article 300 of the Treaty or from any other act
of the Council shall be opened and administered in
accordance with detailed rules adopted under the
procedure laid down in Article 42.

Article 30

1. Where an agreement concluded in accordance
with Article 300 of the Treaty provides for the total or
partial management of a tariff quota opened by a
third country for the products referred to in Article 1,
the management method to be applied and detailed
rules relating to that method shall be adopted in
accordance with the procedure provided for
in
Article 42.

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2. Quotas may be managed using one of
following methods or a combination thereof:

the

(b) is least cumbersome administratively for operators,
administration
taken

being

of

account
requirements;

— order in which applications are submitted ((cid:28)first

come, first served’ basis),

(c) prevents any discrimination between the operators

concerned.

— allocation in proportion to quantities requested
when applications are submitted ((cid:28)simultaneous
examination’ method),

Refunds

3.
Community.

shall be

the

same

for

the whole

— traditional trade flows ((cid:28)traditional importers/new

arrivals’ method).

They may vary according to destination, where the
world market situation or the specific requirements of
certain markets make this necessary.

Other appropriate methods may by adopted,
in
particular ones which guarantee the full use of the
possibilities available under the quota concerned.

shall be

Refunds
fixed by the Commission in
accordance with the procedure laid down in Article 42.
Refunds may be fixed:

They shall avoid any discrimination between the
operators concerned.

(a) at regular intervals;

Article 31

To the extent necessary to enable the products
1.
listed in Article 1 to be exported without
further
processing or in the form of goods listed in Annex II if
they are products listed in Article 1(a), (b), (c), (d), (e)
and (g), on the basis of prices for those products in
world trade and within the limits resulting from
agreements concluded in accordance with Article 300
of the Treaty, the difference between those prices and
prices in the Community may be covered by export
refunds.

(b) by invitation to tender for products for which that

procedure was provided for in the past.

Except where fixed by tender, the list of products on
which an export refund is granted and the amount of
such refund shall be fixed at least once every four
weeks. The amount of
the refund may, however,
remain at the same level for more than four weeks and
may, where necessary, be adjusted in the intervening
period by the Commission at the request of a Member
State or on its own initiative. However, for products
listed in Article 1 and exported in the form of goods
listed in Annex II to this Regulation, the refund may
be fixed according to another timetable determined in
accordance with the procedure referred to in Article 16
of Council Regulation (EC) No 3448/93 (1).

Export refunds on the products listed in Article 1 in
the form of goods listed in the Annex II may not be
higher than those applicable to such products exported
without further processing.

4.
The following shall be taken into account when
refunds are being fixed for the products listed in
Article 1 and exported without further processing:

2.
The method to be adopted for the allocation of
the quantities which may be exported with a refund
shall be the method which:

(a) the existing situation and future trends with regard

to:

efficient possible use of

(a) is most suited to the nature of the product and the
situation on the market in question, allowing the
resources
most
available, account being taken of the efficiency and
structure of Community exports without, however,
creating discrimination between large and small
operators;

the

— prices and availabilities of milk and milk

products on the Community market,

— prices of milk and milk products on the world

market;

(1) OJ L 318, 20.12.1993, p. 31.

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(b) the most favourable marketing costs and transport
costs from Community markets to Community
ports or other places of export
together with
forwarding costs to the countries of destination;
demand on the Community market;

Refunds

6.
the products
shall be granted for
referred to in paragraph 1 and exported as such only
on application and on presentation of the relevant
export licence.

(c) the objectives of the common organisation of the
markets in milk and milk products, which are to
ensure
natural
development regarding prices and trade on these
markets;

balanced

situation

and

a

7.
The refund applicable to exports of products
listed in Article 1 and exported as such shall be that
applicable on the day of application for the licence
and,
that
in the case of a differentiated refund,
applicable on the same day for:

(d) limits

resulting from agreements concluded in

accordance with Article 300 of the Treaty;

(a) the destination indicated on the licence, or where

appropriate;

(e) the importance of avoiding disturbances on the

Community market;

(f) the economic aspect of the proposed exports.

Account shall also be taken in particular of the need
to establish a balance between the use of Community
basic agricultural products for export as processed
goods to third countries, and the use of products from
those countries admitted for inward processing.

For the products referred to in Article 1 and

5.
exported as such:

(b) the actual destination if

from the
destination indicated on the licence. In that case,
the amount applicable may not exceed the amount
applicable for the destination indicated on the
licence.

it differs

Appropriate measures may be taken to prevent abuse
of the flexibility provided for in this paragraph.

8.
Paragraphs 6 and 7 may be made to apply to
products listed in Article 1 and exported in the form
of goods listed in Annex II in accordance with the
procedure laid down in Article 16 of Regulation (EC)
No 3448/93.

(a) the prices

in the Community referred to in
paragraph 1 shall be determined taking account of
the prices prevailing which prove to be the most
favourable as regards export;

9.
Paragraphs 6 and 7 may be waived in the case of
products listed in Article 1 on which refunds are paid
under food-aid operations,
in accordance with the
procedure laid down in Article 42.

(b) the prices on the world market referred to in
paragraph 1 shall be determined taking account in
particular of:

— the prices on third-country markets,

— the most favourable prices in third countries of

destination for third-country imports,

— producer prices recorded in exporting third
taken, where
subsidies granted by those

account

being

countries,
appropriate, of
countries,

— free-at-frontier offer prices.

10.

The refund shall be paid upon proof that:

— the products are of Community origin,

— the products have been exported from the

Community, and

— in the case of a differentiated refund, the products
have reached the destination indicated on the
licence or another destination for which a refund
was fixed, without prejudice to paragraph 7(b).
Exceptions may be made to this rule in accordance
with the procedure laid down in Article 42,
provided conditions are laid down which offer
equivalent guarantees.

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11. Without prejudice to paragraph 10, first indent,
in the absence of a derogation granted in accordance
with the procedure laid down in Article 42, no export
refund shall be granted on products which are
imported from third countries and re-exported to third
countries.

majority, 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 which are
the
manufacture of products listed in that Article or of
goods listed in Annex II to this Regulation.

intended for

12.
As regards the products referred to in Article 1
the goods listed in
and exported in the form of
Annex II to this Regulation, paragraphs 10 and 11
shall apply only to goods falling within the following
CN codes:

— 0405 20 30 (dairy spreads with a fat content

between 60 and 75 %),

— 1806 90 60

to

1806 90 90

(certain

products

containing cocoa),

— 1901 (certain food preparations of flour, etc.),

— 2106 90 98

(certain

food

preparations

not

elsewhere specified),

having a high milk-product content.

Compliance with the limits on volumes arising
13.
from agreements
concluded in accordance with
Article 300 of the Treaty shall be ensured on the basis
the export certificates issued for the reference
of
periods provided for therein and applicable to the
products concerned. With regard to compliance with
the obligations arising under
the Agreement on
Agriculture, the ending of a reference period shall not
affect the validity of export licences.

for

the

arrangements

14. Detailed rules for the application of this Article,
redistributing
including
unallocated or unused exportable quantities, shall be
adopted by the Commission in accordance with the
procedure laid down in Article 42. However,
the
detailed rules on the application of paragraphs 8, 10,
11 and 12 for products referred to in Article 1 and
exported in the form of goods listed in Annex II to
this Regulation shall be adopted in accordance with
the procedure laid down in Article 16 of Regulation
(EC) No 3448/93.

2.
By way of derogation from paragraph 1, if the
situation referred to in paragraph 1 arises with
exceptional urgency and the Community market is
disturbed or is liable to be disturbed by the inward
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 State 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 33

The general rules for the interpretation of the
1.
Combined Nomenclature and the special rules for its
application shall apply to the tariff classification of
products
tariff
covered by this Regulation;
nomenclature resulting from the application of this
Regulation shall be incorporated in the Common
Customs Tariff.

the

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

thereto,

— the levying of any charge having equivalent effect

to a customs duty,

— the application of any quantitative restriction or

measure having equivalent effect.

Article 32

Article 34

1.
To the extent necessary for the proper working
of the common organisation of the market in milk and
the Council, acting by a qualified
milk products,

1. Where, for one or more of the products listed in
Article 1, the free-at-frontier price significantly exceeds
that
level of Community prices and where
the

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situation is likely to continue, thereby disturbing or
threatening to disturb the Community market,
the
measures provided for in paragraph 5 may be taken.

Article 35

2.
A significant excess within the meaning of
paragraph 1 shall exist when the free-at-frontier price
exceeds the intervention price fixed for the product in
question, increased by 15 %, or, as regards products
for which there is no intervention price, a price
derived from the intervention price, to be determined
in accordance with the procedure laid down in
Article 42,
and
composition of the product in question.

account of

the nature

taking

exports,

imports or

If, by reason of

the
1.
Community market in one or more of the products
listed in Article 1 is affected by, or is threatened with,
serious
the
likely
achievement of the objectives set out in Article 33 of
the Treaty, appropriate measures may be applied in
trade with third countries until such disturbance or
threat of disturbance has ceased.

disturbance

jeopardise

to

3.
The situation in which the free-at-frontier price
significantly exceeds the level of prices is likely to
continue when an imbalance exists between supply
and demand and that imbalance is likely to continue,
in view of foreseeable trends in production and market
prices.

The Community market is disturbed or under
4.
threat of disturbance by the situation referred to in
this Article when the high level of prices
in
international trade:

— hinders

imports of milk products

into the

Community, or

— causes milk products to leave the Community,

so that security of supply is no longer ensured or
threatens to be no longer ensured in the Community.

5. Where the conditions listed in paragraphs 1 to 4
are met, total or partial suspension of the import
duties and/or collection of export charges may be
decided on in accordance with the procedure laid
down in Article 42. Detailed rules for the application
of this Article shall, if necessary, be adopted by the
Commission in accordance with the same procedure.

The Council, acting by a qualified majority, on a
proposal from the Commission, shall adopt general
rules for the application of this paragraph and shall
define the cases in which and the limits within which
Member States may take 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;
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.

the Member States

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 repeal
the measure in question within one month following
the day on which it was referred to the Council.

This Article shall be applied having regard to the
4.
obligations arising from agreements concluded in
accordance with Article 300(2) of the Treaty.

TITLE III

GENERAL PROVISIONS

Article 36

for as long as, is strictly necessary for the support of
that market.

In order to take account of the restrictions on free
circulation which may result from the application of
measures for combating the spread of diseases in
animals, exceptional measures of
the
market affected by those restrictions may be taken in
accordance with the procedure laid down in Article 42.
Those measures may only be taken in so far as, and

support

for

Article 37

Save as otherwise provided in this Regulation,
Articles 87, 88 and 89 of the Treaty shall apply to the
production of and trade in the products listed in
Article 1.

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Article 38

1.
Subject to the provisions of Article 87(2) of the
Treaty, aids the amount of which is fixed on the basis
of the price or quantity of products listed in Article 1
shall be prohibited.

2. National measures
equalisation
between the prices of products listed in Article 1 shall
also be prohibited.

permitting

Article 39

The representative of

2.
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 205(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.

Without prejudice to the application of Articles 87, 88
and 89 of the Treaty, a Member State may impose a
promotional levy on its milk producers in respect of
in
marketed quantities of milk or milk equivalent
promoting
order
the measures
consumption in the Community,
the
markets for milk and milk products and improving
quality.

on
expanding

finance

to

in accordance with the opinion of

The Commission shall adopt measures which
3.
shall apply immediately. However, if these measures
are not
the
committee,
communicated by the
Commission to the Council forthwith. In that event
the Commission may defer application of the measures
which it has decided for not more than one month
from the date of such communication.

they shall be

Article 40

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

the

and

States

Commission

implementing this Regulation. Rules

Member
shall
communicate to each other the information necessary
for
the
communication and distribution of such information
shall be adopted by the Commission in accordance
with the procedure laid down in Article 42.

for

Article 41

for Milk and Milk
A Management Committee
Products (hereinafter called the (cid:28)committee’) shall be
established, composed of representatives of Member
States and chaired by a representative of
the
Commission.

Article 43

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 44

This Regulation shall be so applied that appropriate
account is taken, at the same time, of the objectives
set out in Articles 33 and 131 of the Treaty.

Article 42

Article 45

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.

Regulation (EC) No 1254/1999 and the provisions
adopted in implementation thereof shall apply to the
products listed in Article 1.

TITLE IV

TRANSITIONAL AND FINAL PROVISIONS

Article 46

(EEC) No 1842/83,
No 777/87 are hereby repealed.

(EEC) No 865/84 and (EEC)

Regulations (EEC) No 804/68, (EEC) No 986/
1.
68,
(EEC)
(EEC) No 987/68,
No 1422/78, (EEC) No 1723/81, (EEC) No 2990/82,

(EEC) No 508/71,

2.
References to Regulation (EEC) No 804/68 shall
be construed as references to this Regulation and

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Official Journal of the European Communities

26.6.1999

should be read in accordance with the correlation
table in Annex III.

— the measures required to resolve specific practical
problems. Such measures — if duly justified —
may derogate from certain parts of this Regulation.

Article 47

The Commission shall adopt, in accordance with the
procedure laid down in Article 42:

— the measures required to facilitate the transition
from the arrangements provided in Regulation
(EEC) No 804/68 to those established by this
Regulation,

Article 48

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

It shall apply as from 1 January 2000.

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

Done at Brussels, 17 May 1999.

For the Council

The President

K.-H. FUNKE

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ANNEX I

ADDITIONAL PAYMENTS: GLOBAL AMOUNTS REFERRED TO IN ARTICLE 17

(expressed in EUR million)

2005

2006

2007 and subsequent
calendar years

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

8,6

11,5

72,0

1,6

14,4

62,6

13,6

25,7

0,7

28,6

7,1

4,8

6,2

8,5

37,7

17,1

23,0

144,0

3,3

28,7

125,3

27,1

51,3

1,4

57,2

14,2

9,7

12,4

17,1

75,4

25,7

34,5

216,0

4,9

43,1

187,9

40,7

77,0

2,1

85,8

21,3

14,5

18,6

25,6

113,1

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ANNEX II

CN code

Description of goods

0403 10 51 to 99
and
0403 90 71 to 99

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or
acidified milk and cream, whether or not concentrated or containing added
sugar or other sweetening matter, flavoured or containing added fruit or
cocoa

ex 0405

Butter and other fats and oils derived from milk; dairy spreads:

0405 20

— Dairy spreads

0405 20 10

— — of a fat content, by weight, of 39 % or more but less than 60 %

0405 20 30

— — — of a fat content, by weight, of 60 % or more but not exceeding

75 %

ex 1517

Margarine; edible mixtures or preparations of animal or vegetable fats or
oils or fractions of different fats or oils of this chapter, other than edible fats
or oils or their fractions of CN code 1516:

1517 10

— Margarine, excluding liquid margarine:

1517 10 10

— — containing more than 10 % but not more than 15 % by weight of milk

fats

1517 90

— Other:

1517 90 10

— — containing more than 10 % but not more than 15 % by weight of milk

fats

ex 1702

Lactose and lactose syrup:

1702 11 00

— — containing by weight 99 % or more lactose, expressed as anhydrous

lactose, calculated on the dry matter

ex 1704

Sugar confectionery (including white chocolate), not containing cocoa:

ex 1704 90

— Other, excluding liquorice extract containing more than 10 % by weight

of sucrose but not containing other added substances

ex 1806

ex 1901

Chocolate and other food preparations containing cocoa, excluding cocoa
powder sweetened solely by the addition of sucrose of CN code 1806 10

Malt extract; food preparations of flour, meal, starch or malt extract, not
containing cocoa or containing less than 40 % by weight of cocoa calculated
on a totally defatted basis, not elsewhere specified or included;
food
preparations of goods of CN codes 0401 to 0404, not containing cocoa or
containing less than 5 % by weight of cocoa calculated on a totally defatted
basis, not elsewhere specified or included:

1901 10 00

— Preparations for infant use, put up for retail sale

1901 20 00

— Mixes and doughs for the preparation of bakers’ wares of CN code 1905

1901 90

— other:

— — other:

1901 90 91

— — — containing no milk fats, sucrose, isoglucose, glucose or starch or
containing less than 1,5 % milk fat, 5 % sucrose (including invert
sugar) or
starch, excluding food
preparations in powder form of goods of CN codes 0401 to 0404

isoglucose, 5 % glucose or

1901 90 99

— — — other

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CN code

Description of goods

ex 1902

1902 19

1902 20

Pasta, whether or not cooked or stuffed (with meat or other substances) or
otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi,
ravioli, cannelloni; couscous, whether or not prepared:

— Uncooked pasta not stuffed or otherwise prepared:

— — other

— Stuffed pasta, whether or not cooked or otherwise prepared:

— — other:

1902 20 91

— — — Cooked

1902 20 99

— — — other

1902 30

1902 40

— other pasta

— Couscous:

1902 40 90

— — Other

1904

1905

Prepared food obtained by the swelling or roasting of cereals or cereal
products (for example, cornflakes); cereals (other than maize (corn)) in grain
form or in the form of flakes or other worked grains (except flour and meal),
pre-cooked or otherwise prepared, not elsewhere specified or included

Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not
containing cocoa; communion wafers, empty cachets of a kind suitable for
pharmaceutical use, sealing wafers, rice paper and similar products:

1905 10 00

— Crispbread

1905 20

1905 30

1905 40

1905 90

— Gingerbread and the like

— Sweet biscuits; waffles and wafers

— Rusks, toasted bread and similar toasted products

— other:

— — other:

1905 90 40

— — — Waffles and wafers with a water content exceeding 10 % by weight

1905 90 45

— — — Biscuits

1905 90 55

— — — Extruded or expanded products, savoury or salted

1905 90 60

— — — — with added sweetening matter

1905 90 90

— — — — other

ex 2004

2004 10

Other vegetables prepared or preserved otherwise than by vinegar or acetic
acid, frozen, other than products of heading No 2006:

— Potatoes:

— — other:

2004 10 91

— — — in the form of flour, meal or flakes

ex 2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic
acid, not frozen, other than products of heading No 2006:

2005 20

— Potatoes:

2005 20 10

— — in the form of flour, meal or flakes

ex 2008

Fruit, nuts and other edible parts of plants, otherwise prepared or preserved,
whether or not containing added sugar or other sweetening matter or spirit
not elsewhere specified or included:

— Nuts, ground-nuts and other seeds, whether or not mixed together:

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26.6.1999

CN code

Description of goods

2008 11

— — Ground-nuts:

2008 11 10

— — — Peanut butter

2105 00

Ice-cream and other edible ice, whether or not containing cocoa

ex 2106

ex 2202

Food preparations not elsewhere specified or included, excluding compound
alcoholic preparations falling within CN code 2106 90 20 and flavoured or
coloured sugar syrups falling within CN codes 2106 90 30, 2106 90 51,
2106 90 55 and 2106 90 59

Waters, including mineral waters and aerated waters, containing added sugar
or other sweetening matter or flavoured, and other non-alcoholic beverages,
not including fruit and vegetable juices of CN code 2009:

2202 90

— other:

— — other, containing by weight of fat obtained from the products of CN

codes 0401 to 0404:

2202 90 91

— — — less than 0,2 %

2202 90 95

— — — 0,2 % or more but less than 2 %

2202 90 99

— — — 2 % or more

ex 2208

2208 70

2208 90

Undenatured ethyl alcohol of an alcoholic strength by volume of less than
80 % vol; spirits, liqueurs and other spirituous beverages:

— Liqueurs and cordials

— other:

— — other spirits and spirituous beverages, in containers holding:

— — — two litres or less:

— — — — other:

2208 90 69

— — — — — other spirituous beverages

— — — more than two litres:

2208 90 78

— — — — other spirituous beverages

ex 3302

Mixtures of odoriferous
(including alcoholic
solutions) with a basis of one or more of these substances, of a kind used as
raw materials
in industry; other preparations based on odoriferous
substances, of a kind used for the manufacture of beverages:

substances and mixtures

3302 10

— of a kind used in the food or drink industries:

— — of a kind used in the drink industries:

3302 10 29

— — — — — other

3501

ex 3502

Casein, caseinates and other casein derivatives; casein glues

Albumins, albuminates and other albumin derivatives:

3502 20

— Milk albumin, including concentrates of two or more whey proteins:

— — other:

3502 20 91

— — — dried (for example in sheets, scales, flakes, powder)

3502 20 99

— — — other

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ANNEX III

CORRELATION TABLE

Regulation (EEC) No 804/68

This Regulation

Article 1

Article 2

Article 3(1) and (2)

Article 3(3)

Article 3(4)

Article 4

Article 5

Article 5a

Article 5c

Article 6(2)

Article 6(3)

Article 6(4)

Article 6(6)

Article 7(1)

Article 7(2)

Article 1

Article 2

Article 3(1)

—

Article 3(2)

—

Article 4(1)

—

Article 5

Article 6(3)

Article 6(4)

Article 6(5)

Article 10

Article 7(1)

Article 7(3)

Article 7(3), first subparagraph

Article 7(4), first subparagraph

Article 7(3), fourth subparagraph

Article 7(4), second subparagraph

Article 7(4)

Article 7(5)

Article 7a

Article 7(5)

Article 10

—

Article 8(1) to (3)

Article 8(1) to (3)

Article 8(4)

Article 9(3)

Article 10(1)

Article 10(2)

Article 10(3)

Article 11(1)

Article 11(2)

Article 11(3)

Article 12(3)

Article 13

Article 14

Article 15

Article 16

Article 16a

Article 17

Article 10

Article 10

Article 11(1)

—

Article 15

Article 12(1)

—

Article 15

Article 15

Article 26

Article 27

Article 28

Article 29

Article 30

Article 31

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Regulation (EEC) No 804/68

This Regulation

Article 18

Article 19

Article 20

Article 21

Article 22

Article 22a

Article 23

Article 24

Article 24a

Article 25

Article 32

Article 33

Article 34

Article 35

—

Article 36

Article 37

Article 38

Article 39

—

Article 26(1) and (2)

Article 14(1) and (2)

Article 26(4)

Article 26(5)

Article 28

Article 29(1)

Article 29(2)

Article 30

Article 31

Article 32

Article 33

Article 34

Article 35

Article 36

Article 37(1)

Annex

Article 15

—

Article 40

Article 41

—

Article 42

Article 43

—

Article 44

Article 45

—

—

Article 48

Annex II