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The EU Common Market Organisation for Milk. Exporting from and importing to the EU : « regulatory and operational aspects ». Presentation by Mr s . Riitta Brandt Valio, Finland. Regulatory and operational aspects of …. Export licences and export refunds for Annex 1 products
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The EU Common Market Organisation for Milk Exporting from and importing to the EU: « regulatory and operational aspects » Presentation by Mrs. Riitta Brandt Valio, Finland CEEC's seminars
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 CEEC's seminars
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 CEEC's seminars
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 form of combined products E.g.: Milk chocolate Ice for consumption Pastry Imitation cheeses Spreadable butter Infant formulas ETC... Products entitled to refunds CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • 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) CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • 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 CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • 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 CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • 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 CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • 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 CEEC's seminars
If 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 Regulatory and operational aspects of…Reg. 174/99 Forfeiture of licence guarantee CEEC's seminars
Regulatory and operational aspects of…Reg. 174/99 • Specific arrangements • Canada (cheese) • Switzerland (cheese) • USA (cheese) • Dominican Republic (milk powders) CEEC's seminars
Regulatory and operational aspects of… Non Annex 1 export licence system/refund certificate Regulation (EC) 1520/2000 CEEC's seminars
Regulatoryand operational aspects of…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) CEEC's seminars
Regulatory and operational aspects of…Reg. 1520/2000 • 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 CEEC's seminars
Regulatory and operational aspects of…Reg. 1520/2000 • 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 CEEC's seminars
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 Regulatoryand operational aspects of…Reg. 1520/2000 Excessive application Non-annex I products CEEC's seminars
Regulatory and operational aspects of…WTO commitments • Annex 1 • 4 categories of products: • Butter and butteroil • SMP • Cheese • Other (WMP, condensed milk, fresh milk, other) CEEC's seminars
Regulatoryand operational aspects of…WTO commitments • Two level of commitments for each of the four categories: • Volume • Outlays CEEC's seminars
CheeseWTO Quantitative Commitments (000 Tons) CEEC's seminars
Cheese WTO Budgetary Commitments (Meuros) CEEC's seminars
SMP WTO Quantitative Commitments (000 Tons) CEEC's seminars
SMP WTO Budgetary Commitments (Meuros) CEEC's seminars
Butter WTO Quantitative Commitments (000 Tons) CEEC's seminars
Butter WTO Budgetary Commitments (Meuros) CEEC's seminars
Other Products WTO Quantitative Commitments (000 Tons) CEEC's seminars
Other Products WTO Budgetary Commitments (Meuros) CEEC's seminars
Regulatory and operational aspects of…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 CEEC's seminars
Regulatory and operational aspects of…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 CEEC's seminars
Regulatory and operational aspects of…Imports • Import licences and import duty • Horizontal measures: Regulation (CE) 1291/2000 • For milk and dairy products: Regulation (EC) 2535/01 CEEC's seminars
Regulatory and operational aspects of…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 CEEC's seminars
Regulatory and operational aspects of…Imports- Reg. 2535/01 Specific rules on imports at reduced duty Chapter 1: « Imports under quotas opened by the Community on the basis of an import licence alone. » CEEC's seminars
Regulatory and operational aspects of…Imports- Reg. 2535/01 • 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. CEEC's seminars
Regulatory and operational aspects of…Imports- Reg. 2535/01 • 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 CEEC's seminars
Regulatory and operational aspects of…Imports- Reg. 2535/01 Chapter II: « Non-quota imports on the basis of an import licence alone » • 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. CEEC's seminars
Regulatory and operational aspects of…Imports- Reg. 2535/01 Chapter III: « Imports under an import licence covered by an inward-monitoring arrangement (IMA 1) certificate » • 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 CEEC's seminars
Regulatory and operational aspects of…Imports– WTO Commitments CEEC's seminars