ceec's seminars 1 exporting from and importing to the eu: « regulatory and operational aspects...

CEEC's seminars 1

Exporting from and importing to the EU: « regulatory and operational aspects »

The EU Common Market Organisation for Milk

Presentation by Mrs. Riitta Brandt

Valio, Finland

CEEC's seminars 2

Regulatory and operational aspects of …

Export licences and export refunds for Annex 1 products

Export licences and export refunds for Non Annex 1 products

Import licences and import duties for Annex 1 products

WTO commitments

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Regulatory and operational aspects of …

Export licences and export refunds

Horizontal measures: Regulation 800/1999 and 1291/2000

For milk and dairy products: Regulation (EC) 174/1999

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Products entitled to refunds

A1 Dairy Products:

CN position 04.01. Fresh milk 04.02. Preserved milks 04.03. Fermented products 04.04. Whey products, protein

concentrate, ect. 04.05. Butter 04.06. Cheese

NA I (Combined products):

Products exported in the formof combined products

– E.g.: Milk chocolate Ice for consumption Pastry Imitation cheeses Spreadable butter Infant formulas ETC...

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Any export of dairy product out of the EU for which an export refund is requested will be subject to the presentation of an export licence

Refund to be paid = rate valid on the day of application

No licence required if refunds lower than €60

No refund shall be granted for cheeses which free-at-frontier price is less than € 230/100kg

Products set out in four categories for the purpose of the Agriculture Agreement (Butter, SMP, Cheese, Other)

Regulatory and operational aspects of…

Reg. 174/99

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Licence applications and licences = 12-digit product code

In case of tender, possibility to apply for provisional export licences

Validity of export licences:

Skim Milk Powder: current month + 4

Butter: current month + 4

Cheeses: current month + 4

Other: current month + 4

Regulatory and operational aspects of…Reg. 174/99

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Security:

Expressed in % of the refund fixed for each product code

10% for butter

40% for milk powders

30% for cheeses

25% for other products


Reg. 174/99

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Application before 1300 hrs (Brussels time), not on Thursdays

Export licence to be issued on the fifth working day following application.

In case of excessive demand, the Commission may

Suspend prefixation

Suspend prefixation and reject pending demands

Decrease the level of export refund

Use a reduction coefficient


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When the exported quantity exceeds the prefixed volumes, no refund is paid on the overrun

For milk products containing added sugar: refund calculated on the components

Specific measures for cheese (differentiated refund)

The destination zone will be mentioned on the licence

The zone is a compulsory destination

To get the final refund

Proof of arrival within 12 months for cheeses

Proof of export for other products


Reg. 174/99

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Forfeiture of licence guaranteeIf licence partly used, the security forfeit = 98% minus the quantity actually exported

Reduced penalties apply if licence returned early: 40% reduction if returned within initial two thirds of the validity period 25% reduction if returned within last third of validity period or month following expiry

Licence deemed to be used if 98% of the tonnage has been exported

All licences (used and unused) must be returned within two months of expiry. If not, monetary penalties apply


Reg. 174/99

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Specific arrangements

Canada (cheese)

Switzerland (cheese)

USA (cheese)

Dominican Republic (milk powders)


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Non Annex 1 export licence system/refund certificate

Regulation (EC) 1520/2000

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Reg. 1520/2000

Budget period: October 1st – September 30th

Budget: 415 Meuros (out of which 35 for small exporters)

Products:

Skimmilk Powder (PG2)

26% Whole Milk Powder (PG3)

Butter (PG6)

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Export refund for NA1 products Is equivalent to the corresponding Annex 1 refund

Is fixed every month

Is the one of the exporting date

Can however be prefixed

Is conditional on production of a refund certificate


Reg. 1520/2000

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Refund certificate Limited transferability

Is granted six times a year

Application periods are determined

A reduction coefficient may be applied when applications are too high

Validity: current month + 5 or until 30 September

Security: 25% of the amount applied for


Reg. 1520/2000

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Excessive application Non-annex I products

No limits for application, however: By excessive application, licences for Non-annex I

products are issued with a reduction coefficient

A reduction coefficient allows 5 days to reject the license

Rejection of the license releases only 94% of the security


Reg. 1520/2000

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WTO commitments

Annex 1

4 categories of products:

Butter and butteroil

SMP

Cheese

Other (WMP, condensed milk, fresh milk, other)

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WTO commitments

Two level of commitments for each of the four categories:

Volume

Outlays

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0

50

100

150

200

250

300

350

400

450

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Export Limit

CheeseWTO Quantitative Commitments

(000 Tons)

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Cheese WTO Budgetary Commitments

(Meuros)

0

100

200

300

400

500

600

700

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Spent Limit

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SMP WTO Quantitative Commitments

(000 Tons)

0

100

200

300

400

500

600

700

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Export Limit Roll over

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SMP WTO Budgetary Commitments

(Meuros)

0

200

400

600

800

1000

1200

1400

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

spent Limit Roll over

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Butter WTO Quantitative Commitments

(000 Tons)

0

100

200

300

400

500

600

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Export Limit

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Butter WTO Budgetary Commitments

(Meuros)

0

200

400

600

800

1000

1200

1400

1600

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Spent Limit

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Other Products WTO Quantitative Commitments

(000 Tons)

0

200

400

600

800

1000

1200

1400

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Export Limit Roll over

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Other Products WTO Budgetary Commitments

(Meuros)

0

200

400

600

800

1000

1200

1400

1600

95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04

Spent Limit Roll over

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WTO commitments

Management by the Commission: Daily follow-up of prefixations

Comparison with the monthly profiles (yearly divided by 12)

When too many demands: suspension and/or rejection and/or reduction of export refunds

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WTO commitments

Non Annex 1

Management by the Commission

The WTO limit of expenditure = the Commission’s budget

Limited to 415 Meuros until the next round

Managed according to Regulation (CE) 1520/2000

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Imports

Import licences and import duty

Horizontal measures: Regulation (CE) 1291/2000

For milk and dairy products: Regulation (EC) 2535/01

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Imports - Reg. 2535/01

General provision

All imports of milk products shall be subject to presentation of an import licence Security = EUR 10 per 100 kilograms net of product Validity: current month + 3 Licences shall be issued no later than the first working day following the day on which the application is submitted

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Specific rules on imports at reduced duty

Chapter 1:

« Imports under quotas opened by the Community on the basis of an import licence

alone. »

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This chapter applies to milk products imported under specified tariff quotas

The year is divided in 2 semesters commencing on 1 July and 1 January of each year.

Licence applications to be lodged during the first 10 days of each six-months period.

The security shall be EUR 35 per 100 kg net of product.

Licence applications shall relate to no more than 10% of the quantity under the quota and shall involve no less than 10 tonnes.

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Applicants for import licences must be approved in advance

Eligibility criteria: applicants must prove that during the previous calendar year they imported from the Community at least 25 tonnes of milk products covered by Chapter 04 of the CN in at least 4 separate operations.

Approval shall be valid for one year.

If the total quantity covered by the licence applications exceeds the quantity available: reduction coefficient

Validity of the import licences: 150 days from the actual day issue. However, licences shall not be valid after the end of the import year for which they are issued



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Applies to preferential imports not subject to quotas as referred to in determined agreements and acts. (Turkey and Switzerland) The reduced rate of duty shall be applied only on presentation of the declaration of release for free circulation accompanied by the import licence and the proof of origin issued respectively, under mentioned protocols. For products originating in Switzerland, import licences shall be issued only where the applications are accompanied by a written declaration by the applicant that the referred minimum free-at-frontier value will be complied with.



Chapter II: « Non-quota imports on the basis

of an import licence alone »

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Section 1 applies to imports under the quotas listed in the Agreement with Norway and the one with Cyprus. Import licences for the products shall be issued only on presentation of a corresponding IMA 1 certificate

Validity: from the date of issue up to the end of the eighth month following (but in no case for longer than the corresponding import licence or beyond 31 December of the import year for which they are issued).

Section 2 applies to New Zealand butter Request of import licence to be lodged in the UK only



Chapter III: « Imports under an import licence covered by an inward-monitoring arrangement (IMA 1) certificate »

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Imports – WTO Commitments

0

20

40

60

80

100

120

Skimmed milk powder Butter Cheese and curd:

Minimum access Current access

ceec's seminars 1 exporting from and importing to the eu: « regulatory and operational aspects...

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