The Committee established in pursuance of Article VII:2(a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PriceLevel and observance of minimum price 1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Articles 1 and 2 of this Protocol shall not be less than the minimum price applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.2. (a) The minimum price level set out in the present Article takes account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.(b) The minimum price provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol is fixed at US $ 800 (21) per metric ton.3. (a) The level of the minimum price specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.(b) The level of the minimum price specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the level of the minimum price set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.Adjustment of minimum price 4. If the products actually exported differ from the pilot products in respect or the packaging or terms of sale, the minimum price shall be adjusted so as to protect the minimum price established in this Protocol according to the following provisions:Packaging:If the products are offered otherwise than in packages as specified in Article 2, the minimum price shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.Terms of sale:If sold on terms other than f.o.b. from the exporting country or free-at-frontier exporting country (22), the minimum price shall be calculated on the basis of the minimum f.o.b. price specified in paragraph 2(b) of this Article, plus the real and justified costs of the services provided; if the terms of the sale include credit, this shall be charged for at the prevailing commercial rates in the country concerned.Special conditions of sale 5. Participants undertake within the limit of their institutional possibilities to ensure that practices such as these referred to in Article 4 of this Protocol do not have the effect of directly or indirectly bringing the export prices of the products subject to the minimum price provisions below the agreed minimum price.Field of application 6. For each participant, this Protocol is applicable to exports of the products specified in Article 1 of this Protocol manufactured or repacked inside its own customs territory.Transactions other than normal commercial transactions 7. The provisions of paragraphs 1 to 6 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes or food-related development purposes or welfare purposes in developing countries.Article 4Provision of Information1. In cases where prices in international trade of the products covered by Article 1 of this Protocol are approaching the minimum price mentioned in Article 3: 2(b) of this Protocol and without prejudice to the provisions of Article III of the Arrangement participants 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 5Obligations of Exporting Participants1. Exporting participants 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 participants, especially those used for food-related development purposes and welfare purposes.Article 6Cooperation of Importing Participants1. Participants which import products covered by Article 1 of this Protocol undertake in particular:(a) to cooperate in implementing the minimum price objective of this Protocol
(a) (8). The Committee established in pursuance of Article VII: 2 (a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PricesLevel and observance of minimum prices1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.2. (a) The minimum price levels set in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.(b) The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at:(i) US $ 425 (9) per metric ton for the skimmed-milk powder defined in Article 2 of this Protocol.(ii) US $ 725 (10) per metric ton for the whole milk powder defined in Article 2 of this Protocol.(iii) US $ 425 (11) per metric ton for the buttermilk powder defined in Article 2 of this Protocol.3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by products, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.Adjustment of minimum prices 4. If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions:Milk fat content:If the milk fat content of the milk powders described in Article 1 of the present Protocol excluding buttermilk powder (12) differs from the milk fat content of the pilot products as defined in Article 2.1(a) and (b) of the present Protocol, then for each full percentage point of milk fat as from 2 per cent, there shall be an upward adjustment of the minimum price in proportion to the difference between the minimum prices established for the pilot products defined in Article 2.1(a) and (b) of the present Protocol (13).Packaging:If the products are offered otherwise than in packages normally used in the trade, of a net content by weight less than 25 kg or 50 lbs, as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.Terms of sale:If sold on terms other than f.o.b. from the exporting country or free-at-frontier exporting country (14), the minimum prices shall be calculated on the basis of the minimum f.o.b. prices specified in paragraph 2 (b) of this Article, plus the real and justified costs of the services provided: if the terms of the sale include credit, this shall be charged for at the prevailing commercial rates in the country concerned.Exports and imports of skimmed-milk powder and buttermilk powder for purposes of animal feed 5. Dy derogation from the provisions of paragraphs 1 to 4 of this Article participants may, under the conditions defined below, export or import, as the case may be, skimmed-milk powder and buttermilk powder for purposes of animal feed at prices below the minimum prices provided for in this Protocol for these products. Participants may make use of this possibility only to the extent that they subject the products exported or imported to the processes and control measures which will be applied in the country of export or destination so as to ensure that the skimmed-milk powder and buttermilk powder thus exported is not reproduced.(17) US $ 1 200 per metric ton since 5 June 1985.(18) US $ 1 000 per metric ton since 5 June 1985.(19) See Article 2.(20) Annex III(a) is not reproduced.(21) US $ 1 000 per metric ton since 1 October 1981.(22) See Article 2. exporting country (19), the minimum prices shall be calculated on the basis of the minimum f.o.b. prices specified in paragraph 2(b) of this Article, plus the real and justified costs of the services provided, if the terms of the sale include credit this shall be charged for at the prevailing commercial rates in the country concerned.Special conditions of sales 5. Participants undertake within the limit of their institutional possibilities to ensure that practices such as those referred to in Article 4 of this Protocol do not have the effect of directly or indirectly bringing the export prices of the products subject to the minimum price provisions below the agreed minimum prices.Field of application 6. For each participant, this Protocol is applicable to exports of the products specified in Article 1 of this Protocol manufactured or repacked inside its own customs territory.Transactions other than normal commercial transactions 7. The provisions of paragraphs 1 to 6 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes of food-related development purposes or welfare purposes in developing countries.Article 4Provision of Information1. In cases where prices in international trade of the products coverd by Article 1 of this Protocol are approaching the minimum prices mentioned in Article 3.2(b) of this Protocol, and without prejudice to the provisions of Article III of the Arrangement, participants 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 5Obligations of Exporting Participants1. Exporting participants 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 participants, especially those used for food-related development purposes and welfare purposes.Article 5Cooperation of Importing Participants1. Participants which import products covered by Article 1 of this Protocol undertake in particular:(a) to cooperate in implementing the minimum prices objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol 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 Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Protocol.PART THREE Article 7Derogations1. Upon request by a participant, the Committee shall have the authority to grant derogations from the provisions of Article 3, paragraphs 1 to 4 of this Protocol in order to remedy difficulties which observance of minimum prices could cause certain participants. The Committee shall pronounce on such a request within three months from the date of the request.Article 8Emergency Action1. Any participant, which consides that its interests are seriously endangered by a country not bound by this Protocol, 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 participant concerned are likely to be materially prejudiced, that participant may take unilateral action to safeguard its position, on the condition that any other participants 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 be requested to call a special meeting of the Committee at the earliest possible moment.ANNEX III PROTOCOL REGARDING CERTAIN CHEESES PART ONE Article 1Product Coverage1. This Protocol applies to cheeses falling under CCCN heading No 04.04, having a fat content in dry matter, by weight, equal to or more than 45 per cent and a dry matter content, by weight, equal to or more than 50 per cent.PART TWO Article 2Pilot Product1. For the purpose of this Protocol, a minimum export price shall be established for the pilot product of the following description:Designation: CheesePackaging:In packages normally used in the trade of a net content by weight of not less than 20 kg or 40 lbs., as appropriate.Terms of sale:F.o.b. from the exporting country or free-at-frontier exporting country.By derogation from this provision, reference points are designated for the countries listed in Annex III(a) (20). The Committee established in pursuance of Article VII:2(a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PriceLevel and observance of minimum price 1. Participants undertake to take the steps necessary This Protocol applies to milk fat falling under CCCN heading No 04.03, having a milk fat content equal to or greater than 50 per cent by weight.PART TWO Article 2Pilot Products1. For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following descriptions:(a) Designation: Anhydrous milk fatMilk fat content: 99,5 per cent by weight(b) Designation: ButterMilk fat content: 80 per cent by weightPackaging:In packages normally used in the trade, of a net content by weight of not less than 25 kg or 50 lbs, as appropriate.Terms of sale:F.o.b. from the exporting country or free-at-frontier exporting country. By derogation from this provision, reference points are designated for the countries total in Annex II(a) (16). The Committee established in pursuance of Article VII:2(a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PricesLevel and observance of minimum prices 1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.2. (a) The minimum price levels set out in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.(b) The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at:(i) US $ 1 100 (17)per metric ton for the anhydrous milk fat defined in Article 2 of this Protocol.(ii) US $ 925 (18) per metric ton for the butter defined in Article 2 of this Protocol.3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.Adjustment of minimum prices 4. If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions:Milk fat content:If the milk fat content of the product defined in Article 1 of the present Protocol differs from the milk fat content of the pilot products as defined in Article 2 of the present Protocol then, if the milk fat content is equal to or greater than 82 per cent or less than 80 per cent, the minimum price of this product shall be, for each full percentage point by which the milk fat content is more than or less than 80 per cent, increased or reduced in proportion to the difference between the minimum prices established for the pilot products defined in Article 2 of the present Protocol.Packaging:If the products are offered otherwise than in packages normally used in the trade, of a net content by weight of not less than 25 kg or 50 lbs., as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.Terms of sale:If sold on terms other than f.o.b. from the exporting country or free-at-frontier exporting country (19), the minimum prices shall be calculated on the basis of the minimum f.o.b. prices specified in paragraph 2(b) of this Article, plus the real and justified costs of the services provided, if the terms of the sale include credit this shall be charged for at