Commission Regulation (EC) No 1596/1999 of 20 July 1999 amending Regulation (EC) No 174/1999 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: 1999-07-20
Institutions: European Commission
Subjects: export licence, export refund, milk, milk product

21. 7. 1999

EN

Official Journal of the European Communities

L 188/39

COMMISSION REGULATION (EC) No 1596/1999

of 20 July 1999

amending Regulation (EC) No 174/1999 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 Regulation (EC) No
1587/96 (2), and in particular Articles 13(3), 16a(1) and 17(3)
and (14) thereof,

(1) Whereas 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 (3) is a recasting of Commis-
sion Regulation (EC) No 1466/95 (4), as last amended by
Regulation (EC) No 2184/98 (5); whereas that exercise
revealed that certain provisions containing references are
incorrect or out of date; whereas the necessary correc-
tions should be made;

(2) Whereas Regulation (EC) No 174/1999 stipulates that
no refund may 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 230/100 kg; whereas the Member States' author-
ities must be in a position to verify that this provision is
complied with; whereas the provision should be adapted
to that end and the definition of ‘free-at-frontier price’
laid down; whereas,
in this connection, a flat-rate
amount should be fixed to take account of the different
transport costs in the Community;

(3) Whereas Regulation (EC) No 174/1999 fixes the term of
validity of
licences for the various product groups;
whereas, in view of the present difficulty in exporting
certain milk products, the term of validity of licences for
those products should be extended;

(4) Whereas export refunds for cheeses are differentiated
according
provision
destination; whereas
concerned must be adapted to take account of the acces-
sion negotiations being conducted with certain third
countries;

the

to

(1) OJ L 148, 28.6.1968, p. 13.
(2) OJ L 206, 16.8.1996, p. 21.
(3) OJ L 20, 27.1.1999, p. 8.
(4) OJ L 144, 28.6.1995, p. 22.
(5) OJ L 275, 10.10.1998, p. 21.

(5) Whereas management of

the quota for exports of
cheeses to Canada is based on certain formalities sto be
completed by the competent Canadian authorities when
such products are imported; whereas those authorities
have not been able to apply the provisions laid down to
that end; whereas other arrangements must therefore be
adopted to ensure the scheme is applied correctly;

(6) Whereas management of

the quota for exports of
cheeses to Switzerland can be facilitated by anticipating
the date of issue of licences; whereas the provisions
concerned should be adapted accordingly;

(7) Whereas Council Decision 98/486/EC (6) approved the
Memorandum of Understanding between the European
Community and the Dominican Republic on import
protection for milk powder in the Dominican Republic;
whereas the Memorandum provides for the European
Community to manage its share of
the tariff quota
according to a mechanism of export licences; whereas
the procedure for awarding licences to interested parties
must therefore be determined;

(8) Whereas,

in order to ensure that products imported
from the Dominican Republic are part of the quota and
to establish a link between the products imported and
licence, exporters are
those indicated on the export
obliged, at the time of import, to present a certified copy
of the export declaration, which must contain certain
information; whereas a provision to that effect must be
adopted;

(9) Whereas, in order to ensure that the planned measures
operate smoothly and to prevent any excessive fragmen-
tation of the market which could result in a loss of
market share for the Community, use of
the quota
should be restricted by giving priority to licence applica-
tions exclusively for those products which have in the
past represented almost all exports to the Dominican
Republic and, when licences are awarded, most of the
quantities available should be reserved for ‘traditional’
exporters of milk powder to that country; whereas there
should be a link between the quantities of milk powder
exported by those exporters to the Dominican Republic
in the past and the quantity for which a licence may be
applied for;

(6) OJ L 218, 6.8.1998, p. 45.

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(10) Whereas, however, in order to ensure that trade relations
in this sector do not become excessively rigid, a second
tranche should be made available to exporters who can
prove that they are seriously engaged in trade; whereas,
in order to ensure efficient management and a fair
distribution of quantities, the maximum quantity which
a licence application may cover should be fixed;

(11) Whereas products exported to the Dominican Republic
under the quota are imported into that country at a
reduced rate of duty; whereas the introduction of a
quota means that exporters who are awarded licences
are to some extent protected from competition from
other exporters and enjoy some price stability; whereas
it is therefore justified to fix a lower refund rate than
that applicable to products exported outside the quota;

(12) Whereas,

to facilitate checks, all applications by the
same exporter should be lodged in the same Member
State;

(13) Whereas the date of

issue of certificates should be
defined with reference to Commission Regulation (EEC)
No 3719/88 (1), amended by Regulation (EC) No 1127/
1999 (2);

(14) Whereas, in order to enable exporters better to manage
the term of validity of
the licences awarded them,
licences should be extended to cover the reference
period of the quota;

(15) Whereas, to ensure the smooth operation of the scheme
and prevent speculation, licences should not be transfer-
able;

‘No refund shall be granted on exports of cheese where
the
the free-at-frontier price prior
refund in the Member State of export
than
EUR 230/100 kg. “Free-at-frontier price” means the ex-
works price plus a flat-rate amount of EUR 3/100 kg.

to application of

less

is

Where an export refund has been applied for, section
22 of
“minimum
free-at-frontier price, as referred to in Article 3 of Regu-
lation (EC) No 174/1999, complied with”.

contain the words

licences

shall

authorities

At the request of the competent authorities, applicants
shall supply any further information and substantiation
which the
consider necessary to ensure
compliance with the free-at-frontier price when the
customs
formalities are conducted and shall accept,
where applicable, any checks by those authorities of the
accounts within the maeaning of Council Regulation
(EEC) No 4045/89 (**).’

(**) OJ L 388, 30.12.1989, p. 10.

3. Article 6(c) is replaced by the following:

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

4. Article 15(3) is replaced by the following:

The zones referred to in paragraph 1 shall be as

‘3.
follows:

— Zone I: destination codes 053 to 070 (inclusive) and

091 to 096 (inclusive),

— Zone II: destination codes 072 to 083 (inclusive),

(16) Whereas the Management Committee for Milk and Milk
Products has not delivered an opinion within the time
limit set by its chairman,

— Zone III: destination code 400,

— Zone IV: all other destination codes.’

5. Article 18 is amended as follows:

HAS ADOPTED THIS REGULATION:

(a) paragraph 6 is replaced by the following:

Article 1

Regulation (EC) No 174/1999 is amended as follows:

1. Article 1(2) is replaced by the following:

‘2.
Section 7 of licence applications and licences shall
show the country of destination and the code number of
the country or territory of destination, as indicated in the
country nomenclature for the external trade statistics of
the Community and statistics of trade between Member
States, drawn up by the Commission on the basis of
Article 21(1) of Council Regulation (EC) No 1172/95 (*).’

(*) OJ L 118, 25.5.1995, p. 10.

2. In Article 3,
following:

the first paragraph is replaced by the

(1) OJ L 331, 2.12.1988, p. 1.
(2) OJ L 135, 29.5.1999, p. 48.

Export

‘6.
licences presented to the competent
authority for attribution and endorsement in accord-
ance with Article 22 of Regulation (EEC) No
3719/88 may be used for one export declaration
only. Licences shall be exhausted once the export
declaration has been presented.

Titular holders of export licences shall ensure that a
the licence is presented to the
certified copy of
competent Canadian authority when the
import
licence is applied for.’

(b) Paragraph 8 is replaced by the following:

‘8.
Before the end of July for the preceding six-
month period and before the end of January for the
previous quota year, the competent authority of the
Member State
in
the number of
accordance with Annex IV, of
licences
cheese
concerned.’

shall notify the Commission,

quantity

issued

and

the

of

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6. Article 19(5) is replaced by the following:

In the case of exports not covered by refund
licence applications and
export
“Without

‘5.
applications, Section 22 of
licences
refund”.

contain the words

shall

Licences
shall be
applications are submitted.

issued as

soon as possible after

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.

However, licences may be issued from 20 June and shall
be valid from 1 July until 30 June of the following year
provided the words “quota for...(following year)” appear
in Section 20 of licences applications and licences.’

7. The second subparagraph of Article 20(10)

is replaced

by the following:

‘The full
as referred to in paragraph 1’

licences issued shall be valid only for exports

8. Article 20(11) is replaced by the following:

‘11.
Chapter I, with the exception of Article 10, shall
licences. However, the term of validity of
apply to full
licences as provided for in Article 6 may not extend
beyond the end of the year concerned.’

9. The following Article is inserted after Article 20:

‘Article 20a

1.
The following provisions shall apply to exports to
the Dominican Republic of milk powder imported into
that country at a reduced rate of duty under the quota,
for 12 month periods commencing on 1 July, as
referred to in the Memorandum of Understanding
concluded between the European Community and the
Dominican Republic and approved by Council Decision
98/486/EC (***).

2.
Exports as referred to in paragraph 1 shall be
subject to the presentation to the competent authorities
of the Dominican Republic of a certified copy of the
export licence issued in accordance with this Article and
a duly endorsed copy of the export declaration for each
consignment.

3. When export licences are issued, priority shall be
given to milk powder
following
product codes from the nomenclature of export refunds:

falling within the

— 0402 10 19 9000,

— 0402 21 11 9900,

— 0402 21 19 9900,

— 0402 21 91 9200,

— 0402 21 99 9200.

supply any further substantiation which the authorities
consider necessary for the issuing of licences and shall
accept, where applicable, any checks by those authorities
of the bookkeeping and manufacturing conditions of the
products concerned.

4.
The quota referred to in paragraph 1 shall be of
22 400 t per 12-month period commencing on 1 July.
The quota shall be divided into two parts:

(a) the first part, equal to 80 % or 17 920 t, shall be
distributed among Community exporters who can
prove that they have exported products as referred
to in paragraph 3 to the Dominican Republic during
each of the three calendar years prior to the period
for submission of applications;

(b) the second part, equal

their

application,

to 20 % or 4 480 tonnes,
shall be reserved for applicants other
than those
referred to at (a) who can prove, at the time they
submit
they have been
engaged for at least 12 months in trade with third
countries in the milk products listed in Chapter 4 of
and the
and statistical nomenclature
the
common customs
tariff and are registered in a
Member State for VAT purposes.

tariff

that

Applications for export

5.
more, per applicant, than:

licences may not cover

to 110 % of

— for the part referred to in paragraph 4(a), a quantity
the total quantity of products
equal
referred to in paragraph 3 exported during one of
the three calendar years prior
to the period for
submission of applications,

— for the part referred to in paragraph 4(b), a total

maximum quantity of 600 t.

Applicants who fail to comply with this ceiling shall
have their applications rejected.

6.

(a) To be accepted, only one export licence applica-
tion may be submitted per product code in the
refunds and all applications
nomenclature for
must be lodged at
the same time with the
competent authority of a single Member State;

(b) Export

licence applications shall be admissible
only where applicants, at the time they present
their applications:

covered by

Products
applications must have been
produced entirely within the European Community. At
the request of the competent authorities, applicants shall

— lodge a security calculated in accordance with
the refund rate

Article 9 on the basis of
referred to in paragraph 8,

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21. 7. 1999

calendar years prior

— for the part referred to in paragraph 4(a),
indicate the quantity of products referred to
they have exported to
in paragraph 3 that
the Dominican Republic during one of
the
three
to the period
referred to in paragraph 4(a) and are able to
prove
the
competent authority of
the Member State
concerned. To this end the trader whose
name appears on the relevant export declara-
tion shall be regarded as the exporter,

satisfaction

this

the

to

of

to prove

— for the part referred to in paragraph 4(b), are
satisfaction of
able
the
to the
competent authority of
the Member State
concerned that they fulfil the conditions laid
down.

7.
Licence applications shall be lodged from 1 to 10
April each year for the quota relating to the period 1
July to 30 June the following year.

However, for the period from 1 July 1999 to 30 June
2000, licence applications shall be lodged from 1 to 10
August 1999.

For the purposes of Article 1(1), all applications lodged
before the deadline shall be deemed to have been lodged
on the first day of the period for submission of licence
applications.

8.
The refund rate for products intended for export
to the Dominican Republic under the quota referred to
in paragraph 1 shall be:

— 70 %,
and

for products covered by CN code 0402 10,

— 85 %,

for products covered by CN codes 0402 21

and 0402 29,

of the rate fixed by the Commission in accordance with
Article 17(3) of Regulation (EEC) No 804/68 on the first
day of the period referred to in paragraph 7.

9.

Licence applications and licences shall contain:

(a) in section 7, the words “Dominican Republic, 456”;

(b) in sections 17 and 18 of

the application,

the

quantity to which the application relates;

(c) in section 20 of the application:

— the words “Article 20a of Regulation (EC) No

174/1999”

— the words “tariff quota for... (year)”.

Licences issued under this Article shall give rise to an
obligation to export
to the destination indicated in
section 7.

the quota and for each product code of

the
parts of
nomenclature for refunds, of the quantities covered by
licence
that no
applications have been lodged.

applications or, where

applicable,

All notifications,
including notifications of nil applica-
tions, shall be made by telex or fax on the working day
stipulated.

Before issuing licences, the Member States shall verify in
particular that the information referred to in paragraphs
3 to 5 is correct.

the information provided by a trader to whom a
the

If
licence has been issued is found to be incorrect,
licence shall be cancelled and the security forfeited.

The Commission shall decide

11.
as
possible to what extent applications notified to it may
be granted and shall
its
decision.

inform the Member States of

as quickly

In such cases,

the quota exceed one or other of

If all the quantities covered by licence applications for
both parts of
the
quantities referred to in paragraph 4, the Commission
shall fix allocation coefficients. If application of the allo-
cation coefficient results in a quantity per applicant of
less than 20 t, applicants may withdraw their applica-
tions.
they shall notify the competent
authority within three working days of publication of
the Commission's decision. The security shall be released
immediately. The competent authority shall notify the
Commission, within eight working days of publication
of the decision, of the quantities for which applications
have been withdrawn and for which the security has
been released.

the Commission shall

Where the total quantity covered by licence applications
is less than the quantity available for the period in ques-
tion,
quantity
remaining, on the basis of objective criteria taking
account in particular of licence applications for all the
products falling within CN codes 0402 10, 0402 21 and
0402 29.

allocate

the

Licences shall be issued at

12.
the
exporter, not earlier than 1 July and not later than 15
February the following year. They shall be issued only to
exporters whose licence applications were notified in
accordance with paragraph 10.

the request of

Member States shall communicate to the Commission
before 1 March, in accordance with Annex VI, for both
parts of the quota, the quantities for which no licences
were issued.

10.
Not
expiry of
Member States shall notify the Commission,
ance with the model

later than the fifth working day following
the period for lodging licence applications,
in accord-
in Annex V, for each of the two

Notwithstanding Article 6, export licences shall be
13.
valid from their date of
issue within the meaning of
Article 21(2) of Regulation (EEC) No 3719/88 to 30
June thereafter.

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The security shall be released only on presenta-
14.
tion of the proof referred to in Article 33(4) of Regula-
tion (EEC) No 3719/88, or
in respect of quantities
covered by applications for which no licence could be
issued.

Notwithstanding the fifth subparagraph of Article 33(2)
of Regulation (EEC) No 3719/88, the security relating to
the quantity not exported shall be forfeit.

15.
3719/88,

Notwithstanding Article 9 of Regulation (EEC) No

licences shall not be transferable.

the competent
Before 1 September each year,
16.
the Member State shall
to the
report
authority of
Commission,
in accordance with Annex VII, broken
down by product code of the nomenclature for refunds:
— the quantity allocated,
— the quantity for which licences have been issued,
— the quantity exported

during the previous 12-month period as referred to in
paragraph 1.

Chapter
17.
Articles 6 and 10.’

I

shall apply, with the exception of

(***) OJ L 218, 6.8.1998, p. 45.

10. In Annex II, the last code of Group 23 is replaced by

code ‘0405 90 90 9000’.

11. Annex IV is replaced by Annex I

to this Regulation.

12. The annexes in Annex II hereto are added.

Article 2

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

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

Done at Brussels, 20 July 1999.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX I

‘ANNEX IV

Canada

Information required under Article 18(8)

Member State:

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

Data for the period from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trader's
name/address

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

Number of licences

Licences issued

Quantity

tonnes’

Total

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ANNEX II

‘ANNEX V

Dominican Republic

Information required under Article 20a(10)

Member state:

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

applications for the period:

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

Quota referred to in Article 20a(4)(a)

Reference data

exports to the Dominican Republic

Applications

Name/address of applicant

Product code in the
refunds nomenclature

Quantities exported

Year of export

Product code in the
refunds nomenclature

(1)

(2)

(t)

(3)

(4)

(5)

Quantity
maximum =
110 % of (3)

(t)

(6)

Total

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Quota referred to in Article 20a(4)(b)

name/address of applicant

Product code in the
refunds nomenclature

Quantity applied for

(t)

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ANNEX VI

Dominican Republic

Information required under Article 20a (12)

Member State:

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

Data relating to the period from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

to

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

Quota referred to in Article 20a(4)(a)

Exporter's name and address

Code in the refunds nomenclature

Quantities allocated for which licences were not
issued

(t)

Total

Quota referred to in Article 20a(4)(b)

Exporter's name and address

Code in the refunds nomenclature

Quantities allocated for which licences were not
issued

(t)

Total

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ANNEX VII

Dominican Republic

Information required under Article 20a(16)

Member State:

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

Data relating to the period from: . . . . . . . . . . . . . . . . . . . . . . . 1 July to 30 June . . . . . . . . . . . . . . . . . . . . . . .

Quota referred to in Article 20a(4)(a)

Code in the refunds nomenclature

Quantites for which licences were allo-
cated

Quantities for which licences were
issued

Quantities exported

(t)

(t)

(t)

Total

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Quota referred to in Article 20a(4)(b)

Code in the refunds nomenclature

Quantities for which licences were allo-
cated

Quantities for which licences were
issued

Quantities exported

(t)

(t)

(t)

Total’