1.   For the purposes of this Regulation, an A-product shall mean a processed product falling within CN code 1602 10, 1602 50 31, 1602 50 39 or 1602 50 80, not containing meat other than that of animals of the bovine species, with a collagen/protein ratio of no more than 0,45 and containing by weight at least 20 % of lean meat excluding offal and fat with meat and jelly accounting for at least 85 % of the total net weight.

The collagen content shall be considered to be the hydroxyproline content multiplied by the factor 8. The hydroxyproline content shall be determined according to ISO method 3496-1994.

The lean bovine meat content excluding fat shall be determined in accordance with the procedure laid down in the Annex to Commission Regulation (EEC) No 2429/86 (10).

Offal includes the following: heads and cuts thereof (including ears), feet, tails, hearts, udders, livers, kidneys, sweetbreads (thymus glands and pancreas), brains, lungs, throats, thick skirts, spleens, tongues, caul, spinal cords, edible skin, reproductive organs (i.e. uteri, ovaries and testes), thyroid glands, pituitary glands.

The product shall be subjected to a heat treatment sufficient to ensure the coagulation of meat proteins in the whole of the product which may not show any traces of a pinkish liquid on the cut surface when the product is cut along a line passing through its thickest part.

2.   For the purposes of this Regulation, a B-product shall mean a processed product containing beef, other than:

However, a processed product falling within CN code 0210 20 90 which has been dried or smoked so that the colour and consistency of the fresh meat has totally disappeared and with a water/protein ratio not exceeding 3.2 shall be considered to be a B-product.

1.   The overall quantity referred to in Article 1 shall be divided into two quantities and staggered as follows:

2.   The quota shall bear the following order numbers:

3.   The customs import duties to apply on frozen beef under the quota are set out in Annex I.

1.   The application for import rights under the quota may only be lodged by, or on behalf of processing establishments approved under Article 4 of Regulation (EC) No 853/2004 and which have been active in production of processed products containing beef at least once since 1 July 2005.

Subject to the entry into force of the Treaty of Accession of Bulgaria and Romania to the European Union on 1 January 2007, processing establishments in those countries approved under Article 12 of Regulation (EC) No 854/2004 to export to the Community and which have been active in production of processed products containing beef at least once since 1 July 2005 may apply for import rights in relation to the quantities available for the second sub-period of this quota as referred to in Article 3(1)(a)(ii) and (b)(ii).

For each quantity referred to in Article 3(1) only one application for import rights which shall not exceed 10 % of each quantity available may be accepted in respect of each approved processing establishment.

Applications for import rights may be presented only in the Member State in which the processor is registered for VAT purposes.

2.   A security of EUR 6 per 100 kg shall be lodged together with the application for import rights.

3.   The evidence of compliance with the conditions laid down in the first and second subparagraphs of paragraph 1 shall be submitted together with the application for import rights.

The competent national authority shall decide what is acceptable documentary evidence of compliance with those conditions.

However, operators that provided that evidence together with their application for import rights in relation to the quantities available for the first sub-period of this quota as referred to in Article 3(1)(a)(i) and (b)(i), are exempted from the obligation to provide such evidence in case of applications for import rights in relation to the quantities available for the second sub-period of this quota as referred to in Article 3(1)(a)(ii) and (b)(ii).

1.   Each application for import rights for production of A-products or B-products shall be expressed in bone-in equivalence.

For the purpose of this paragraph 100 kilograms of bone-in beef equals 77 kilograms of boneless beef.

2.   Applications for import rights for production of either A-products or B-products shall reach the competent authority:

3.   Member States shall forward to the Commission no later than the second Friday following the end of the respective periods for the submission of applications referred to in paragraph 2 a list of applicants and quantities applied for under each of the two categories together with the approval numbers of the processing establishments concerned.

All communications, including nil returns, shall be sent by fax or e-mail using the forms set out in Annexes II and III.

4.   The Commission shall decide as soon as possible to what extent applications are accepted, where necessary as a percentage of the quantity applied for.

1.   Any import of frozen beef for which import rights have been allocated pursuant to Article 5(4) shall be subject to presentation of an import licence.

2.   As to the security referred to in Article 4(2) the application for import licences corresponding to the allocated import rights shall be a primary requirement within the meaning of Article 20(2) of Regulation (EEC) No 2220/85.

Where in application of Article 5(4) the Commission fixes a reduction coefficient the security lodged shall be released in respect of the import rights applied for which exceed the allocated import rights.

3.   Import rights allocated to processors entitle them to import licences for quantities equivalent to the rights allocated.

Licence applications may be lodged solely:

4.   A security shall be lodged with the competent authority at the time of import ensuring that the processor having been allocated import rights processes the entire quantity of meat imported into the required finished products in his establishment specified in the licence application, within three months of the day of import.

The amounts of the security are fixed in Annex IV.

1.   The licence application and the licence shall contain the following information:

2.   Import licences shall be valid for 120 days from the actual date of issue within the meaning of Article 23(1) of Regulation (EC) No 1291/2000. However, no licence shall be valid after 30 June 2007.

3.   In application of Article 50(1) of Regulation (EC) No 1291/2000, the full Common Customs Tariff duty applicable on the date of release for free circulation shall be collected in respect of all quantities imported in excess of those shown on the import licence.

1.   The security referred to in Article 6(4) shall be released in proportion to the quantity for which, within seven months of the day of import, proof has been furnished to the satisfaction of the competent authority that all or part of the imported meat has been processed into the relevant products within three months following the day of import in the designated establishment.

However, if processing took place after the three-month time limit referred to in the first subparagraph, the security shall be released minus a 15 % reduction plus 2 % of the remaining amount for each day by which the time limit has been exceeded.

If proof of processing is established within the seven-month time limit referred to in the first subparagraph and produced within 18 months following those seven months the amount forfeited, less 15 % of the security amount, shall be repaid.

2.   The amount not released of the security referred to in Article 6(4) shall be forfeited and retained as a customs duty.