(1)

Commission Regulation (EC) No 1847/2004 (2) opens the procedure for the allocation of export licences for cheese to be exported to the United States of America in 2005 under certain GATT quotas.

(2)

Article 20(3) of Commission Regulation (EC) No 174/1999 of 26 January 1999 laying down special detailed rules for the application of Council Regulation (EEC) No 804/68 as regards export licences and export refunds in the case of milk and milk products (3) lays down the criteria to be applied for allocating provisional licences where applications for those licences are submitted in respect of a quantity of products in excess of one of the relevant quotas for the year in question. Following the enlargement of the Community on 1 May 2004, Article 20(3) of Regulation (EC) No 174/1999 also provides for transitional measures in respect of those criteria for the year 2005.

(3)

The demand for export licences for some quotas and product groups has shown a significant increase and exceeds, sometimes by far, the quantities available. This may lead to a substantial reduction in the quantities allocated per applicant, thereby reducing the efficiency and effectiveness of the scheme. In addition, where the quantities allocated to each operator are very small, experience has shown that there is a risk of an operator being unable in such circumstances to fulfil his obligation to export with the consequent loss of the security.

(4)

In order to deal with that situation, it is appropriate to apply a combination of the three criteria referred to in the first subparagraph of Article 20(3) of Regulation (EC) No 174/1999, taking into account the transitional measures provided for. In accordance with points (a) and (b) of that subparagraph, licences should be allocated in preference to applicants who have already been engaged in the United States of America, whose designated importers are subsidiaries and who have exported a quantity of the products concerned to that destination in the past. In addition, a reduction coefficient should be applied pursuant to point (c) of that subparagraph.

(5)

In the case of product groups and quotas for which the applications lodged are for quantities less than those available, it is appropriate, in accordance with Article 20(5) of Regulation (EC) No 174/1999, to provide for the allocation of the remaining quantities to the applicants in proportion to the quantities applied for. The allocation of such further quantities should be conditional upon the interested operator making a request and lodging a security.

(6)

Given the time limit for the implementation of this procedure, as provided for in Regulation (EC) No 1847/2004, this Regulation should apply as soon as possible.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,