‘2.   Exports of cheese to the United States of America under the quotas referred to in paragraph 1 shall be subject to presentation of an export licence. By way of derogation from the first sentence of Article 5(1), Section 16 of licence applications and licences shall show the eight-digit product code of the Combined Nomenclature.

Traders may apply, within a period to be determined, for a provisional export licence for the export of the products referred to in paragraph 1 during the following calendar year, subject to the lodging of a security equal to 50 % of the rate fixed in accordance with Article 9, with a minimum of EUR 6 per 100 kg.

Applicants for provisional export licences in respect of the product group and quotas identified by 22-Tokyo and 22-Uruguay in the regulation opening the procedure for the allocation of such export licences must provide evidence that they have exported cheese to the United States of America in at least one of the preceding three years.

Applicants for provisional export licences in respect of the product groups and quotas identified by 16-Tokyo, 16-, 17-, 18-, 20- and 21-Uruguay, 25-Tokyo and 25-Uruguay in the regulation opening the procedure for the allocation of such export licences must provide evidence that they have exported the products in question to the United States of America in at least one of the preceding three years and that their designated importer is a subsidiary of the applicant.

However, for the 2006 quota year, applicants for provisional export licences for the product groups and quotas referred to in the fourth subparagraph shall not be subject to the requirement for the designated importer to be their subsidiaries if they provide evidence that they have exported such products to the United States of America in each of the preceding three years.

Furthermore, for the 2006 quota year, the designated preferred importer of an applicant may be deemed to be a subsidiary for 2006, provided that

(i)

the application was lodged in: — the Czech Republic for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16, 17, 18, 20 and 25 to Chapter 4 of the HTS, or — in Hungary for a provisional licence for the purpose of exporting cheese to the United States of America under the quota described in additional note 25 to Chapter 4 of the HTS, — in Poland for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional notes 16 and 21 to Chapter 4 of the HTS, — in Slovakia for a provisional licence for the purpose of exporting cheese to the United States of America under the quotas described in additional note 16 to Chapter 4 of the HTS,

(ii)

the applicant submits documentary evidence to the competent authority of the Member State in which the application is lodged that he has been established for at least three years in the new Member States and has exported the cheese in question to the USA in each of the three calendar years prior to lodging the application;

(iii)

the applicant submits documentary evidence to the competent authority of the Member State in which the application is lodged that the procedure for establishing a subsidiary in the USA has been initiated;

(iv)	the applicant submits evidence to the competent authority of the Member State in which the application is lodged that he has carried out exports to preferred importers in the 12 months prior to lodging the application.

Traders shall also indicate in the applications for provisional export licences:

(a)	the designation of the product group covered by the United States quota in accordance with Additional Notes 16 to 23 and 25 in Chapter 4 of the Harmonized Tariff Schedule of the United States of America (most recent version);

(b)	the product names in accordance with the Harmonised Tariff Schedule of the United States of America (most recent version);

(c)	the name and address of the importer in the United States designated by the applicant.

In addition, applications shall be accompanied by a certificate from the designated importer stating that he is eligible under the rules in force in the United States on the issue of import licences for the products referred to in paragraph 1.

For the 2006 quota year, applications for provisional export licences shall indicate whether the designated importer is a subsidiary of the applicant, or, is deemed to be a subsidiary in accordance with the sixth subparagraph.’

‘3.   Where applications for provisional licences for a product group or a quota as referred to in paragraph 1 exceed the available quantity for the year in question, the Commission shall apply a uniform allocation coefficient to the quantities for which application is made.

Notwithstanding the first subparagraph, where an allocation coefficient is applied in respect of applications for provisional licences for 2006, the allocation coefficient for applicants whose designated preferred importers are subsidiaries or are deemed to be subsidiaries in accordance with the sixth subparagraph of paragraph 2 shall be three times higher than for other applicants.

4.   Where the result of applying the allocation coefficient would be to allocate provisional licences for less than 10 tonnes per application, the corresponding quantities available shall be awarded by the Member State concerned drawing lots by quota. The Member State shall draw lots for provisional licences of 10 tonnes each amongst the applicants who would have been allocated less than 10 tonnes as a result of applying the allocation coefficient.

Quantities of less than 10 tonnes remaining when establishing the lots shall be equally distributed over the 10-tonne lots before the lots are drawn.

Where the result of applying the allocation coefficient would be to leave a quantity of less than 10 tonnes, that quantity shall be considered a single lot.

The security for applications which are not successful in the allocation by drawing lots shall be released immediately.’