Commission Regulation (EC) No 2020/2006 of 22 December 2006 amending Regulation (EC) No 2535/2001 as regards the management of the WTO tariff quota for New Zealand butter
Date: 2006-12-22
Institutions: European Commission
Subjects: New Zealand, World Trade Organisation, butter, extra-EU trade, import licence, tariff quota

L 384/54

EN

Official Journal of the European Union

29.12.2006

COMMISSION REGULATION (EC) No 2020/2006

of 22 December 2006

amending Regulation (EC) No 2535/2001 as regards the management of the WTO tariff quota for
New Zealand butter

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 1255/1999 of 17
May 1999 on the common organisation of the market in milk
and milk products (1), and in particular Article 29(1) thereof,

Whereas:

(1)

(2)

Commission Regulation (EC) No 2535/2001 of 14
December 2001 laying down detailed rules for applying
Council Regulation (EC) No 1255/1999 as regards the
import arrangements for milk and milk products and
opening tariff quotas (2) sets out in particular rules for
‘New-Zealand butter’ as referred to in second subpar-
agraph of Article 25(1) of that Regulation.

The Court of Justice of the European Communities in its
judgment of 11 July 2006 in Case C-313/04 Franz Egen-
berger GmbH Molkerei und Trockenwerk v. Bundesanstalt für
Landwirtschaft und Ernährung stated that: ‘Article 35(2) of
Commission Regulation (EC) No 2535/2001 of 14
December 2001 laying down detailed rules for applying
Council Regulation (EC) No 1255/1999 as regards the
import arrangements for milk and milk products and
opening tariff quotas is invalid inasmuch as it provides
that applications for import licences for New Zealand
butter at reduced duty may be lodged solely with the
the United Kingdom’; and
competent authorities of
‘Articles 25 and 32 of Regulation (EC) No 2535/2001,
read in conjunction with Annexes III, IV and XII to that
Regulation, are invalid since they permit discrimination
in the issue of import licences for New Zealand butter at
reduced duty.’

(3)

A new arrangement for managing the tariff quota as
from 1 January 2007 needs
in place,
ensuring non-discriminatory access of importers to the
quota in conformity with the Court's judgment in Case
C-313/04.

to be put

(4) With a view of providing at the same time stability in the
trade while gradually opening of the entire quota to all

(5)

(6)

(7)

(8)

interested operators, it seems appropriate to manage the
quota through the method referred to in the third indent
of Article 29(2) of Regulation (EC) No 1255/1999.
Therefore, a division of the quota amongst traditional
importers and newcomers should be set up. Provision
should be made for the traditional part to be managed
taking into account the past trade under the same quota
and the newcomers' part to be managed by a simul-
taneous examination of the licences.

to prevent

In order to ensure that applications for import licences
are genuine,
speculation and to ensure
maximum utilisation of the quota, each applicant under
the newcomers part of the quota should apply for a
minimum quantity and applications shall be limited to
10 % of the quantity available. For the same reasons,
criteria should be laid down to allow participation in
the quota; in particular, the quota should be opened to
those operators who prove a certain level of trade activity
in the milk sector. In order to provide for more equal
access to the newcomers' quota each applicant may apply
for a maximum quantity.

The security level should be set at a level which ensures
that only genuine traders are applying under the quota. It
is appropriate to adopt therefore the security level which
is applicable for the management of the quotas referred
to under Chapter 1 of Title II of Regulation (EC)
No 2535/2001.

In order to avoid licences issued for quantities which are
economically not viable, a drawing lots procedure shall
be provided for in case licences would be issued for
quantities less than 20 tonnes.

Imports of New Zealand butter must comply with certain
quality and compositional requirements laid down in
Regulation (EC) No 2535/2001.
to show
compliance with those requirements and to prove the
origin of the products provision should be made for
the operator to present
the
time of import.

the IMA 1 certificate at

In order

(1) OJ L 160, 26.6.1999, p. 48. Regulation as last amended by Regu-

lation (EC) No 1913/2005 (OJ L 307, 25.11.2005, p. 2).

(2) OJ L 341, 22.12.2001, p. 29. Regulation as last amended by Regu-

lation (EC) No 926/2006 (OJ L 170, 23.6.2006, p. 8).

(9)

The Management Committee for Milk and Milk Products
has not delivered an opinion within the time limit set by
its Chairman,

29.12.2006

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Official Journal of the European Union

L 384/55

HAS ADOPTED THIS REGULATION:

The competent import licence issuing body shall retain the
original of each IMA 1 presented’

Article 1

Regulation (EC) No 2535/2001 is amended as follows:

3. In Article 26(2) the second subparagraph is deleted.

1. Article 9 is replaced by the following:

4. Articles 34 to 39 are replaced by the following:

‘Article 9

‘Article 34

the

competent

Before 1 June,
inform
applicants of the outcome of the approval procedure and
their approval number where applicable. Approval shall be
valid for one year.’

authority shall

This section shall apply to imports of butter from New
1.
Zealand under the quota numbers 09.4195 and 09.4182 as
referred to in Annex III.A to this Regulation.

2. Article 24 and 25 are replaced by the following:

The provisions of Articles 27, 30, 31(1), 32(2) and (3)

2.
and Article 33(1) points (a) to (d) shall apply.

‘Article 24

1.
This section shall apply to imports under the quotas
for specified countries of origin listed in the CXL schedule
referred to in Annex III.B.

The words “at least six weeks old” in the description of
3.
the quota for New Zealand butter shall mean at least six
weeks old on the date on which a declaration of release
for free circulation is presented to the customs authorities.

2.
Annex III.B to this Regulation sets out the duties to be
applied and the maximum quantities to be imported by
import tariff quota period.

4.
Annex III.A sets out the tariff quotas, the duty to be
applied and the maximum quantities to be imported during
each import tariff quota period or subperiod.

Article 25

1.
Import licences for the products listed in Annex III.B at
the rate of duty indicated shall be issued only on presen-
tation of a corresponding IMA 1 certificate, for the total net
quantity indicated therein.

IMA 1 certificates must meet the requirements laid down in
Articles 29 to 33. Import licences must show the number
and date of issue of the corresponding IMA 1 certificate.

Import licences may be issued only after the competent
2.
authority has verified that Article 33(1)(e) has been complied
with.

The licence issuing bodies shall transmit to the Commission
a copy of the IMA 1 certificate lodged with each import
licence application no later than 18.00 (Brussels time) on
the day it is lodged.

Licence issuing bodies shall
issue import licences on the
fourth working day following, provided the Commission
has not taken any special measures before that date.

Article 34a

The quotas shall be divided into two parts as referred

1.
to in Annex III.A:

(a) quota No 09.4195 (hereafter called part A) shall be
distributed among Community importers who are
approved according to the provisions of Article 7 and
who can prove:

(i) for the quota year 2007, that they have imported

under the quota 09.4589 during 2006,

(ii) for the quota year 2008, that they have imported
the quotas 09.4589, 09.4195 or
under one of
09.4182 in the period from 1 January 2006 until
31 December 2007,

(iii) for

the following quota years,

imported under one of
09.4195 or 09.4182 in the course of
months
prior
preceding the quota year;

the month

to

that

they have
the quotas 09.4589,
the 24
of November

L 384/56

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Official Journal of the European Union

29.12.2006

(b) quota No 09.4182 (hereafter called part B) shall be

reserved for applicants:

(ii) for the quota year 2008, of the total quantity of
products that they have imported under the quotas
09.4589, 09.4195 and 09.4182, in 2006 and 2007,

(i) who are approved according to the provisions of

Article 7, or

(ii) for the period January to June 2007 for applicants
established in Bulgaria and Romania, who comply
with the provisions of Article 1(2) of Commission
Regulation (EC) No 2018/2006 (1),

and

(iii) who can prove that during the 12 month period
prior the month of November preceding the quota
year that they imported into and/or exported from
the Community at least 100 tonnes of milk or milk
products covered by Chapter 04 of the Combined
Nomenclature in at least 4 separate operations.

However, for the quota years 2007 and 2008, the 12
month period referred to shall be respectively the
calendar year 2006 and 2007.

2.
The trade performance proofs referred to under points
(a) and under points (b)(ii) and (iii) of paragraph 1 shall be
valid for both half yearly periods of the quota year.

Licence applications may be lodged only during the

3.
first 10 days of the following months:

(a)

in January 2007 and 2008 for the quota subperiod
January-June; however for January 2007 licence appli-
cations may be lodged during the first 15 days;

(b) in the month of November for the following January-

June quota subperiods;

(c)

in the month of
December.

June for the quota subperiod July-

To be admissible, applications for import licences may

4.
cover, per applicant:

(a) For part A, no more than 125 %:

(i) for the quota year 2007, of the quantity of products
that they have imported under the quota 09.4589 in
2006,

(1) See page 46 of this Official Journal.

(iii) for the following quota years, of the quantities that
the quotas 09.4589,
they have imported under
09.4195 or 09.4182,
the 24
month period prior to the month of November
preceding the quota year;

in the course of

(b) For part B, not less than 20 tonnes and no more than
10 % of the available quantity for the subperiod and
provided they are able to prove to the satisfaction of
the
State
concerned that they fulfil the conditions laid down in
paragraph 1 point b.

the Member

competent

authority

of

The proofs referred to above shall be submitted at the time
the applications for licences are lodged.

to complying with the

Subject
conditions,
applicants may apply simultaneously under both parts of
the quota.

eligibility

The licence applications must be separate for part A and for
part B.

Proof of imports or exports shall be furnished in accordance
with the second subparagraph of Article 5 of Regulation (EC)
No 1301/2006.

5.
Licence applications may be lodged only in the
Member State of approval, and must bear the importer's
approval number.

Article 35

The security referred to in Article 15(2) of Regulation (EC)
No 1291/2000 shall be EUR 35 per 100 kilograms net of
product.

Article 35a

1.
At the latest on the third working day following the
end of the period for lodging applications, Member States
shall notify the Commission of the applications lodged for
each of the products concerned.

Notifications shall

2.
under each quota number, broken down by CN code.

include the quantities applied for

29.12.2006

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Official Journal of the European Union

L 384/57

The Commission shall decide within five working days
3.
after the notification period referred to in paragraph 1 to
what extent applications may be accepted. Where the applied
quantities do not exceed the available quota quantities, no
decision is taken by the Commission and licences are issued
for the quantities applied for.

Where applications for licences for a subquota exceed the
available quantity for the quota period in question,
the
Commission shall apply a uniform allocation coefficient to
the quantities for which application is made. The part of the
security corresponding to the quantities not allocated shall
be released.

Where, for one of the subquotas, the result of applying the
allocation coefficient would be to allocate licences for less
than 20 tonnes per application, the corresponding quantities
available shall be awarded by the Member State concerned
by drawing lots for licences of 20 tonnes each amongst the
applicants who would have been allocated less than 20
tonnes as a result of applying the allocation coefficient.

Where the result of establishing lots of 20 tonnes leads to a
residual quantity of less than 20 tonnes, that quantity shall
be considered a single lot.

The security for applications which are not successful in the
allocation by drawing lots shall be released immediately.

4.
The issue of licences shall be made no more than five
working days after the decision referred to in paragraph 3.

Import licences issued under this Regulation shall be
5.
valid until the last day of the half yearly period referred to in
Annex III.A.

Import licences issued under this section may be trans-
6.
ferred only to natural or
legal persons approved in
accordance with Article 7. Together with the request for
transfer, the transferor shall notify the issuing body of the
approval number of the transferee.

Article 35b

Licence applications and licences shall contain the references
provided for in Article 28, except the references to the IMA
1 certificate.

Box 16 of licence applications may show one or more of the
CN codes listed in Annex III.A.

Box 20 of the licences shall show the subquota period for
which the licences are issued.

If a licence application indicates more than one CN code, it
must specify the quantity requested for each code and a
separate licence shall be issued for each code.

Article 36

Where the New Zealand butter does not meet the composi-
tional requirements, the quota benefit shall not be granted
for the whole quantity subject
to the relevant customs
declaration.

Once non-conformity has been established, where the
declaration of release for free circulation has been accepted
the customs authorities shall collect the import duty set in
Annex I to Council Regulation (EEC) No 2658/87. For that
purpose an import licence at full duty shall be issued for the
non-conform quantity.

The quantity shall not be attributed to the licence.

Article 37

1.
The duty rate provided for in Annex III.A shall be
applied to New Zealand butter imported under the present
section only on presentation of the declaration of release for
free circulation accompanied by an import licence, issued in
accordance with the provisions of Article 35a, and an IMA 1
certificate as referred to in Annex X issued by an issuing
body listed in Annex XII, proving the eligibility requirements
and the origin of the product covered by that declaration.
Customs authorities shall indicate the serial number of the
IMA 1 certificate on the import licence.

The quantity shown on the IMA 1 certificate shall be
import

to the quantity shown on the customs

2.
equal
declaration.

IMA 1 certificates shall be valid from the date of issue

3.
up to the last day of the yearly import quota period.

The import

4.
import declarations.

licence can be used for one or more

L 384/58

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Official Journal of the European Union

29.12.2006

Article 38

In addition to the requirements set out in Article 33(1)(a) to
(d), issuing bodies may be listed in Annex XII only if they
undertake to notify the Commission of the typical-process
standard deviation of the fat content, as referred to in Annex
IV(1)(e), of the New Zealand butter manufactured by each
producer referred to in Annex IV(1)(a) according to each
product purchasing specification.

Article 39

Member States shall notify the Commission, by 31 January
following the end of a given quota year, of the definitive
monthly quantities and the total quantity for that quota year
of products for which declarations of release for free circu-
lation have been accepted under the tariff quota referred to
in paragraph 1 during the previous quota year.

The monthly notifications shall be made by the 10th of the
month following that during which the declarations of
release for free circulation are accepted.’

‘(a) “producer”: a single production plant or factory in
which butter
to the
is produced for
Community under the tariff quotas referred to in
Annex III.A’

export

(b) point (c) is replaced by the following:

‘(c) “lot”: a quantity of butter covered by an IMA 1 certi-
ficate presented to the competent customs authority
for entry for free circulation under the tariff quotas
referred to in Annex III.A;’

8. In Annex X, the wording in the box related to ‘CERTI-

FICATE’ is replaced by the following:

‘CERTIFICATE

5. Annex III.A is replaced by Annex I to this Regulation.

For the entry of certain New Zealand butter subject to the
tariff quota referred to in Annex III.A’

6. Annex II to this Regulation is inserted as Annex III.B.

Article 2

7. In Annex IV,

the part

‘1. DEFINITIONS’

is amended as

follows:

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

(a) point (a) is replaced by the following:

It shall apply from 1 January 2007.

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

Done at Brussels, 22 December 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

29.12.2006

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Official Journal of the European Union

L 384/59

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L 384/60

EN

Official Journal of the European Union

29.12.2006

ANNEX II
‘ANNEX ΙII.B

TARIFF QUOTA UNDER THE GATT/WTO AGREEMENTS SPECIFIED BY COUNTRY OF ORIGIN: OTHERS

Quota
number

CN code

Description

Country of origin

Annual quota from
1 January to
31 December
(in tonnes)

Import duty
(EUR/100 kg
net weight)

Rules for completing IMA
1 certificates

Australia

Australia

500

3 711

17,06

See Annex XI(C) and (D)

17,06

See Annex XI(B)

Canada

4 000

13,75

See Annex XI(A)

09.4522

0406 90 01

Cheese for processing (1)

09.4521

flat cylindrical

ex 0406 90 21 Whole Cheddar cheeses (of the conven-
tional
shape of a net
weight of not less than 33 kg but not
more than 44 kg and cheeses in cubic
blocks or in parallelepiped shape, of a
net weight of 10 kg or more) of a fat
content of 50 % or more by weight in
least
the dry matter, matured for at
three months

09.4513

ex 0406 90 21

Cheddar made from unpasteurised milk,
of a fat content of 50 % or more, by
weight,
in the dry matter, matured for
least nine months, with a free-at-
at
frontier value (2) per 100 kg net, of not
less than:

EUR 334,20 for whole cheeses

EUR 354,83 for cheeses of a net weight
of not less than 500 g

EUR 368,58 for cheeses of a net weight
of less than 500 g

The expression “whole cheeses” means:

of

the

cheeses
flat
cylindrical shape of a net weight of not
less than 33 kg but not more than 44 kg.

conventional

cubic blocks or parallelepipeds of cheese
of a net weight of not less than 10 kg.

09.4515

0406 90 01

Cheese for processing (3)

09.4514

flat cylindrical

ex 0406 90 21 Whole Cheddar cheeses (of the conven-
tional
shape of a net
weight of not less than 33 kg but not
more than 44 kg and cheeses in cubic
blocks or in parallelepiped shape, of a
net weight of 10 kg or more) of a fat
content of 50 % or more by weight in
the dry matter, matured for at
least
three months

New Zealand

New Zealand

4 000

7 000

17,06

See Annex XI(C) and (D)

17,06

See Annex XI(B)

(1) Utilisation for this particular purpose will be monitored by applying the Community provisions laid down on the subject. The cheeses concerned are considered as
processed when they have been processed into products falling within subheading 0406 30 of the combined nomenclature. Articles 291 to 300 of Regulation (EEC)
No 2454/93 apply.

(2) “Free-at-frontier value” means the free-at-frontier price or fob price in the country of export, plus an amount for delivery and insurance costs as far as the customs

territory of the Community.

(3) Utilisation for this particular purpose will be monitored by applying the Community provisions laid down on the subject. The cheeses concerned are considered as
processed when they have been processed into products falling within subheading 0406 30 of the combined nomenclature. Articles 291 to 300 of Regulation (EEC)
No 2454/93 apply.’