Agreement Establishing the World Trade Organization

(Continued)

Annex 4(c)
International Dairy Agreement

Article 4: Provision of Information

In cases where prices in international trade of the products covered by Article 1 are approaching the minimum prices mentioned in paragraph 2(b) of Article 3, and without prejudice to the provisions of Article III of the Agreement, Parties shall notify to the Committee all the relevant elements for evaluating their own market situation and, in particular, credit or loan practices, twinning with other products, barter or three-sided transactions, refunds or rebates, exclusivity contracts, packaging costs and details of the packaging, so that the Committee can make a verification.

Article 5: Obligations of Exporting Parties

Exporting Parties agree to use their best endeavours, in accordance with their institutional possibilities, to supply on a priority basis the normal commercial requirements of developing importing Parties, especially those used for food­related development purposes and welfare purposes.

Article 6: Cooperation of Importing Parties

1. Parties which import products covered by Article 1 undertake in particular:

(a) to cooperate in implementing the minimum price objective of this Annex and to ensure, as far as possible, that the products covered by Article 1 are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum prices;

(b) without prejudice to the provisions of Article III of the Agreement and Article 4 of this Annex, to supply information concerning imports of products covered by Article 1 from non-Parties;

(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Annex.

2. Paragraph 1 shall not apply to imports of skimmed milk powder and buttermilk powder for purposes of animal feed, provided that such imports are subject to the measures and procedures provided for in paragraph 5 of Article 3.

Article 7: Derogations

1. Upon request by a Party, the Committee shall have the authority to grant derogations from the provisions of paragraphs 1 to 5 of Article 3 in order to remedy difficulties which observance of minimum prices could cause certain Parties. The Committee shall take a decision on such a request within three months from the date of the request.

2. The provisions of paragraphs 1 to 4 of Article 3 shall not apply to exports, in exceptional circumstances, of small quantities of natural unprocessed cheese which would be below normal export quality as a result of deterioration or production faults. Parties exporting such cheese shall notify the Secretariat in advance of their intention to do so. Parties shall also notify the Committee quarterly of all sales of cheese effected under this provision, specifying in respect of each transaction the quantities, prices and destinations involved.

Article 8: Emergency Action

Any Party which considers that its interests are seriously endangered by a country not bound by this Annex can request the Chairman of the Committee to convene an emergency meeting of the Committee within two working days to determine and decide whether measures would be required to meet the situation. If such a meeting cannot be arranged within the two working days and the commercial interests of the Party concerned are likely to be materially prejudiced, that Party may take unilateral action to safeguard its position, on the condition that any other Parties likely to be affected are immediately notified. The Chairman of the Committee shall also be formally advised immediately of the full circumstances of the case and shall call a special meeting of the Committee at the earliest possible moment.

List of Reference Points

In accordance with the provisions of Article 2 of this Annex, the following reference points are designated for the countries listed below. The Committee established in paragraph 2(a) of Article VII of this Agreement may modify the contents of this Attachment as appropriate.

In accordance with the provisions of paragraph 5 Article 3 of this Annex, the following processes and control measures are approved for the Parties listed below. The Committee established in paragraph 2(a) of Article VII of the Agreement may modify the contents of this Attachment as appropriate.

AUSTRALIA

Skimmed milk powder¹² may be exported from the customs territory of Australia to third countries:

A. Either, after the competent Australian authorities have ensured that the skimmed milk powder has been denatured according to any one of the following processes:

1. By the addition, per 100 kgs. of skimmed milk powder, of 2.5 kgs. of lucerne meal or grass meal, containing not less than 70 per cent of particles not exceeding 300 microns, uniformly distributed throughout the mixture.

2. By the addition of finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent to 50 United States standard), in a proportion of 2 to 4 parts per 100 and of phenolphthalein in a proportion of 1:20,000 (1 gr. per 20 kgs. of milk).

3. By the addition, in the proportion of 20 per 100 by weight of the product treated (80 per 100 by weight of milk powder and 20 per cent of the denaturing agent) of a mixture composed of 80 per cent bran and 20 per cent potato flour, rice flour or other common starch (at least 10 per cent to pass mesh 60, equivalent to 50 United States standard), with phenolphthalein in the proportion of 1:20,000.

4. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of undeodorized fish meal and 200 grs. of carbonate of iron or sulphate of iron and

(a) 1.5 kgs. of activated carbon;

(b) or 100 grs. of mixture composed of four fifths of yellow tartrazine (E 102) and one fifth of patent blue V (E 131);

(c) or 20 grs. of cochineal red A (E 124);

(d) or 40 grs. of patent blue V (E 131).

5. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 40 kgs. of undeodorized fish meal and 300 grs. of carbonate of iron or sulphate of iron.

6. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of fish oil or fish liver oil and 300 grs. of carbonate of iron or sulphate of iron.

The fish meal noted in processes 4 and 5 must contain at least 25 per cent of particles with dimension below 80 microns. In processes 4, 5 and 6, the iron salts have to contain at least 30 per cent of particles of a size lower than 80 microns. The colouring matters have to contain the following percentages of the pure product:

• at least 30 per cent for cochineal red A (E 124);
• at least 25 per cent for the other colouring matters: colouring matters have to contain at least 30 per cent of particles having a size lower than 80 microns; the acidity of fish oil calculated in oleic acid has to be equal to at least 10 per cent.

The products added to skimmed milk powder, according to processes 4, 5 and 6 have to be uniformly distributed as regards in particular the activated carbon, the iron salts and the colouring matters; two samples of 50 grs. each, taken at random in a lot of 25 kgs., must give by chemical determination the same results within the limits of errors admitted by the analysis method used.

7. Dye to be added to liquid skimmed milk before drying at the rate of 2 to 3 ozs. per 100 gallons of milk (12.5 to 18.7 grs. per hectolitre). The dye to be one of the following colours:

8. By the addition of meat and bone meal in a proportion of 2 to 4 parts of skimmed milk powder.

The bags or containers in which the denatured powder is packed will be labelled "For Animal Feed Only".

B. Or, after its incorporation in compound or mixed stockfoods of a kind falling within item 23.09 of the Harmonized System.

CANADA

1. By the addition of finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent to 50 United  States standard), in a proportion of 2 to 4 parts per 100 and of phenolphthalein in a proportion of 1:20,000 (1 gr. per 20 kgs. of milk).

2. By the addition, in the proportion of 20 per 100 by weight of the product treated (80 per 100 by weight of milk powder and 20 per 100 of the denaturing agent) of a mixture composed of 80 per cent bran and 20 per cent potato flour, rice flour or other common starch (at least 10 per cent to pass mesh 60, equivalent to 50 United States standard) with phenolphthalein in the proportion of 1:20,000.

3. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of undeodorized fish meal and 200 grs. of carbonate of iron or sulphate of iron and

(a) 1.5 kgs. of activated carbon;

(b) or 100 grs. of mixture composed of four fifths of yellow tartrazine (E 102) and one fifth of patent blue V (E 131);

(c) or 20 grs. of cochineal red A (E 124);

(d) or 40 grs. of patent blue V (E 131).

4. By the addition of, for each 100 kgs. of skimmed milk powder a minimum of 40 kgs. of undeodorized fish meal and 300 grs. of carbonate of iron or sulphate of iron.

5. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of fish oil or fish liver oil and 300 grs. of carbonate of iron or sulphate of iron.

The fish meal noted in processes 3 and 4 must contain at least 25 per cent of particles with dimension below 80 microns. In processes 3, 4 and 5, the iron salts have to contain at least 30 per cent of particles of a size lower than 80 microns. The colouring matters have to contain the following percentages of the pure product:

• at least 30 per cent for cochineal red A (E 124);
• at least 25 per cent for the other colouring matters: colouring matters have to contain at least 30 per cent of particles having a size lower than 80 microns; the acidity of fish oil calculated in oleic acid has to be equal to at least 10 per cent.

The products added to skimmed milk powder, according to processes 3, 4 and 5, have to be uniformly distributed as regards in particular the activated carbon, the iron salts and the colouring matters; two samples of 50 grs. each, taken at random in a lot of 25 kgs., must give by chemical determination the same results within the limits of errors admitted by the analysis method used.

6. By the addition of dye to liquid skimmed milk before drying at the rate of 2 to 3 ounces per 100 gallons of milk (12.5 to 18.7 grs. per hectolitre).

Dye to be one of the following colours:

7. By the addition of meat and bone meal in a proportion of 2:4 parts of skimmed milk powder.

8. By the addition, per 100 kgs. of skimmed milk powder, of 2.5 kgs. of lucerne meal or grass meal, containing not less than 70 per cent of particles not exceeding 300 microns, uniformly distributed throughout the mixture.

The bags or containers in which the denatured powder is packed will be labelled "For Animal Feed Only".

9. Incorporation of skimmed milk powder in compound or mixed stockfoods of a kind falling within item 23.09 of the Harmonized System.

EUROPEAN COMMUNITIES

Skimmed milk powder¹³ for use as animal feed may be exported to third countries:

(a) either after being denatured in the customs territory of the Community in accordance with Article 2:1 of Regulation (EEC) No. 1725/79¹⁴, as last amended by Regulation (EEC) No. 3411/93¹⁵:

"Skimmed milk powder shall be denatured by the addition, per 100 kgs. of skimmed milk powder, of either:

method A:

(i) 9 kgs. of lucerne meal or grass meal containing at least 50 per cent (m/m) of particles not exceeding 300 microns; and

(ii) 2 kgs. of starch or puffed starch, uniformly distributed in the mixture; or:

method B:

(i) 5 kgs. of lucerne meal or grass meal containing at least 50 per cent (m/m) of particles not exceeding 300 microns; and

(ii) 12 kgs. of fish meal, non-deodorized or with a strong smell, containing at least 30 per cent (m/m) of particles not exceeding 300 microns; and

(iii) 2 kgs. of starch or puffed starch, uniformly distributed in the mixture;

(b) or after being incorporated in "preparations of a kind used for animal feeding", falling within sub-heading ex 23.09.10 and ex 23.09.90 of the common customs tariff, containing skimmed milk powder;

(c) or after being dyed by the following dyeing process:

The dyeing is to be by means of the colouring matters identified by the Colour Index numbers - most recent edition - and the designations indicated hereunder.

These colouring matters:

• are to be used alone or in combination, in the form of very fine impalpable powder and
• are to be uniformly distributed in the skimmed milk powder
• in minimum quantities of 200 grs./100 kgs.

FINLAND

Skimmed milk powder¹⁷ may be exported from the customs territory of Finland to third countries:

A. Either, after the competent Finnish authorities have ensured that the skimmed milk powder has been denatured according to any one of the following processes:

1. By the addition, per 100 kgs. of skimmed milk powder, of 2.5 kgs. of lucerne meal or grass meal, containing not less than 70 per cent of particles not exceeding 300 microns, uniformly distributed throughout the mixture.

2. By the addition of finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent to 50 United States standard), in a proportion of 2 to 4 parts per 100 and of phenolphthalein in proportion of 1:20,000 (1 gr. per 20 kgs. of milk).

3. By the addition, in the proportion of 20 per 100 by weight of the product treated (80 per 100 by weight of milk powder and 20 per cent of the denaturing agent) of a mixture composed of 80 per cent bran and 20 per cent potato flour, rice flour or other common starch (at least 10 per cent to pass mesh 60, equivalent to 50 United States standard), with phenolphthalein in the proportion of 1:20,000.

4. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of undeodorized fish meal and 200 grs. of carbonate of iron or sulphate of iron and:

(a) 1.5 kgs. of activated carbon;

(b) or 100 grs. of mixture composed of four fifths of yellow tartrazine (E 102) and one fifth of patent blue V (E 131);

(c) or 20 grs. of cochineal red A (E 124);

(d) or 40 grs. of patent blue V (E 131).

5. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 40 kgs. of undeodorized fish meal and 300 grs. of carbonate of iron or sulphate of iron.

6. By the addition of, for each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of fish oil or fish liver oil and 300 grs. of carbonate of iron or sulphate of iron.

The fish meal noted in processes 4 and 5 must contain at least 25 per cent of particles with dimension below 80 microns. In processes 4, 5 and 6, the iron salts have to contain at least 30 per cent of particles of a size lower than 80 microns. The colouring matters have to contain the following percentages of the pure product:

• at least 30 per cent for cochineal red A (E 124);

at least 25 per cent for

• the other colouring matters: colouring matters have to contain at least 30 per cent of particles having a size lower than 80 microns; the acidity of fish oil calculated in oleic acid has to be equal to at least 10 per cent.

The products added to skimmed milk powder, according to processes 4, 5 and 6 have to be uniformly distributed as regards in particular the activated carbon, the iron salts and the colouring matters; two samples of 50 grs. each, taken at random in a lot of 25 kgs., must give by chemical determination the same results within the limits of errors admitted by the analysis method used.

7. Dye to be added to liquid skimmed milk before drying at the rate of 2 to 3 ozs. per 100 gallons of milk (12.5 to 18.7 grs. per hectolitre). The dye to be one of the following colours:

8. By the addition of meat and bone meal in a proportion of 2 to 4 parts of skimmed milk powder.

The bags or containers in which the denatured powder is packed will be labelled "For Animal Feed only".

B. Or, after its incorporation in compound or mixed stockfoods of a kind falling within item 23.09 of the Harmonized System.

HUNGARY

Directive No. 14/1981/KkE 14/KKM of the Minister of Foreign Trade

On the implementation of Decree No. 36/1980./3.IX./MT on the promulgation of the International Dairy Arrangement, done at Geneva on 12 April 1979.

By virtue of powers conferred by the provisions of Section 3 of Decree No. 36/1980./3.IX/MT on the promulgation of the International Dairy Arrangement (hereinafter: the Arrangement) - the following are decreed:

Section 1

When importing or exporting products enumerated in Annexes I-III of the Arrangement, the provisions for minimum prices contained in the Annexes should be applied by the company authorized to carry on foreign trade activity, in determining the contents of the foreign trade contract.

Section 2

The company authorized to carry on foreign trade activity will be directly informed of modifications effected in the minimum prices according to paragraph 3(a) of Article 3 of Annex I of the Arrangement.

Section 3

Skimmed milk powder and buttermilk powder, denatured or otherwise made unfit for human consumption, for purposes of animal feed, may be imported also at prices below the minimum price.

Section 4

1. Skimmed milk powder and buttermilk powder, not denatured or otherwise made unfit for human consumption, can be imported at prices below the minimum price for purposes of animal feed only. Skimmed milk powder imported at prices below the minimum price must be denatured or otherwise made unfit for human consumption after customs clearance, before consumption.

2. Denaturing or otherwise making unfit for human consumption can be effected by adding meat, bone, blood, fish, lucerne (alfalfa), soya or other fodder meals, or fats of animal and vegetable origin, or any other procedure which results in the forage falling under Tariff No. 23.09 of the Trade Customs Tariff.

3. Customs clearance for home use of the dutiable goods specified in paragraph 1 above can be initiated only at the customs office regionally competent according to the premises of the company which carries out denaturing, mixing, or preparation for purposes of animal feed. The person presenting the customs declaration should indicate that the purchase was effected below the minimum price, and should declare that the dutiable goods will be used for purposes of animal feed only.

4. In the case of a declaration according to paragraph 3 above, the dutiable goods will be classified by the customs office in heading No. 04.02-03 of the Trade Customs Tariff ("Powdered milk and cream, unfit for human consumption, whether or not denatured, not containing added sugar"); and in a clause inserted on the declaration form, the customs office stipulates that in accordance with the provisions of the present Directive, it is prohibited to use the goods before carrying out denaturing or otherwise making the goods unfit for human consumption.

5. Denaturing or otherwise making the dairy products specified in paragraph 1 unfit for human consumption must be reported to the regionally competent customs office not alter than 10 days before starting the procedure, indicating at the same time the proportion of materials to be used, the way, place and time of the procedure. On the basis of this notification, denaturing is checked by the customs office on the premises of the company.

6. If milk powder cleared at the customs with the obligation of denaturing or otherwise making it unfit for human consumption is used without fulfilling this obligation, the person concerned will be held responsible under the law on minor offences, or the criminal law, according to the specific case.

Section 5

This Directive comes into force on the day of its promulgation.

Continue with the Appendix to the Hungarian Notification