Article 19 of Council Regulation (EC) No 820/97 of 21 April 1997 establishing a system for the identification and registration of bovine animals and regarding the labelling of beef and beef products5, states that a compulsory beef labelling system is to be introduced and obligatory in all Member States from 1 January 2000 onwards. The same Article also provides that, on the basis of a Commission proposal, the general rules for that compulsory system are to be adopted before that date.

Council Regulation (EC) No 2772/1999 of 21 December 1999 providing for the general rules for a compulsory beef labelling system6 provides for these general rules to apply only temporarily for a maximum period of eight months, that is to say from 1 February to 31 August 2000.

For the sake of clarity Regulation (EC) No 820/97 should be repealed and replaced by this Regulation.

Following the instability in the market in beef and beef products caused by the bovine spongiform encephalopathy crisis, the improvement in the transparency of the conditions for the production and marketing of the products concerned, particularly as regards traceability, has exerted a positive influence on consumption of beef. In order to maintain and strengthen the confidence of consumers in beef and to avoid misleading them, it is necessary to develop the framework in which the information is made available to consumers by sufficient and clear labelling of the product.

To that end it is essential to establish, on the one hand, an efficient system for the identification and registration of bovine animals at the production stage and to create, on the other hand, a specific Community labelling system in the beef sector based on objective criteria at the marketing stage.

By virtue of the guarantees provided through this improvement, certain public interest requirements will also be attained, in particular the protection of human and animal health.

As a result, consumer confidence in the quality of beef and beef products will be improved, a higher level of protection of public health preserved and the lasting stability of the beef market will be reinforced.

Article 3(1)(c) of Council Directive 90/425/EEC of 26 June 1990 concerning veterinary and zootechnical checks applicable in intra-Community trade in certain live animals and products with a view to the completion of the internal market7 states that animals for intra-Community trade must be identified in accordance with the requirements of Community rules and be registered in such a way that the original or transit holding, centre or organisation can be traced, and that before 1 January 1993 these identification and registration systems are to be extended to the movements of animals within the territory of each Member State.

Article 14 of Council Directive 91/496/EEC of 15 July 1991 laying down the principles governing the organisation of veterinary checks on animals entering the Community from third countries and amending Directives 89/662/EEC, 90/425/EEC and 90/675/EEC8 states that the identification and registration as provided for in Article 3(1)(c) of Directive 90/425/EEC of such animals must, except in the case of animals for slaughter and registered equidae, be carried out after the said checks have been made.

The management of certain Community aid schemes in the field of agriculture requires the individual identification of certain types of livestock. The identification and registration systems must, therefore, be suitable for the application and control of such individual identification measures.

It is necessary to ensure the rapid and efficient exchange of information between Member States for the correct application of this Regulation. Community provisions relating thereto have been established by Council Regulation (EEC) No 1468/81 of 19 May 1981 on mutual assistance between the administrative authorities of the Member States and the cooperation between the latter and the Commission to ensure the correct application of the law on customs or agriculture matters9 and by Council Directive 89/608/EEC of 21 November 1989 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of legislation on veterinary and zootechnical matters10.

The current rules concerning the identification and the registration of bovine animals have been laid down in Council Directive 92/102/EEC of 27 November 1992 on the identification and registration of animals11 and Regulation (EC) No 820/97. Experience has shown that the implementation of Directive 92/102/EEC for bovine animals has not been entirely satisfactory and needs further improvement. It is therefore necessary to adopt specific rules for bovine animals in order to reinforce the provisions of the said Directive.

For the introduction of an improved identification system to be accepted, it is essential not to impose excessive demands on the producer in terms of administrative formalities. Feasible time limits for its implementation must be laid down.

For the purpose of rapid and accurate tracing of animals for reasons relating to the control of Community aid schemes, each Member State should create a national computerised data base which will record the identity of the animal, all holdings on its territory and the movements of the animals, in accordance with the provisions of Council Directive 97/12/EC of 17 March 1997 amending and updating Directive 64/432/EEC on health problems affecting intra-Community trade in bovine animals and swine12, which clarifies the health requirements concerning this database.

It is important that each Member State take all measures that may still be necessary in order to ensure that the national computerised database is fully operational as quickly as possible.

Steps should be taken in order to create the technical conditions guaranteeing the best communication possible by the producer with the database and a comprehensive use of databases.

In order to permit movements of bovine animals to be traced, animals should be identified by an ear tag applied in each ear and in principle accompanied by a passport throughout any movement. The characteristics of the ear tag and of the passport should be determined on a Community basis. In principle a passport should be issued for each animal to which an ear tag has been allocated.

Animals imported from third countries pursuant to Directive 91/496/EEC should be subject to the same identification requirements.

Every animal should keep its ear tag throughout its life.

The Commission is examining, on the basis of work performed by the Joint Research Centre, the feasibility of using electronic means for the identification of animals.

Keepers of animals, with the exception of transporters, should maintain an up-to-date register of the animals on their holdings. The characteristics of the register should be determined on a Community basis. The competent authority should have access to these registers on request.

Member States may spread the costs arising from the application of these measures over the entire beef sector.

The authority or authorities responsible for the application of each title in this Regulation should be designated.

A compulsory beef labelling system should be introduced which is obligatory in all Member States. Under this compulsory system, operators and organisations marketing beef should indicate on the label information about the beef and the point of slaughter of the animal or animals from which that beef was derived.

The compulsory beef labelling system should be reinforced from 1 January 2002. Under this compulsory system, operators and organisations marketing beef should, in addition, indicate on the label information concerning origin, in particular where the animal or animals from which the beef was derived were born, fattened and slaughtered.

Information additional to the information concerning where the animal or animals from which the beef was derived were born, fattened and slaughtered may be provided under the voluntary beef labelling system.

The system of compulsory labelling based on origin should be in force from 1 January 2002, it being understood that full information on movements made by bovine animals in the Community is only required for animals born after 31 December 1997.

The compulsory beef labelling system should also apply to beef imported into the Community. However, provision should be made for the fact that not all the information which is required for labelling beef produced in the Community may be available to a third-country operator or organisation. It is therefore necessary to state the minimum information that third countries must ensure is indicated on the label.

For operators or organisations producing and marketing minced beef who may not be in a position to provide all the information required under the compulsory beef labelling system, exceptions ensuring a certain minimum number of indications must be provided.

The objective of labelling is to give maximum transparency in the marketing of beef.

The provisions of this Regulation must not affect Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs13.

For all indications other than those falling under the compulsory beef labelling system, a Community framework for labelling of beef should also be provided and, in view of the diversity of descriptions of beef marketed in the Community, the establishment of a voluntary beef labelling system is the most appropriate solution. The effectiveness of such a voluntary labelling system depends on the possibility of tracing any labelled beef back to the animal or animals of origin. The labelling arrangements of an operator or organisation should be subject to a specification to be submitted to the competent authority for approval. Operators and organisations should be entitled to label beef only if the label contains their name or their identifying logo. The competent authorities of the Member States should be authorised to withdraw their approval of any specification in the event of irregularities. In order to ensure that labelling specifications may be recognised across the Community, it is necessary to provide for the exchange of information between Member States.

Operators and organisations importing into the Community beef from third countries may also wish to label their products according to the voluntary labelling system. Provisions should be laid down to ensure as far as possible that labelling arrangements relating to imported beef are of equivalent reliability to those set up for Community beef.

The change from the arrangements in Title II of Regulation (EC) No 820/97 to those in this Regulation can give rise to difficulties that are not dealt with in this Regulation. In order to deal with that possibility, provision should be made for the Commission to adopt the necessary transitional measures. The Commission should also be authorised to solve specific practical problems where justified.

With a view to guaranteeing the reliability of the arrangements provided for by this Regulation, it is necessary to oblige the Member States to carry out adequate and efficient control measures. These controls should be without prejudice to any controls that the Commission may carry out by analogy with Article 9 of Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities' financial interests14.

Appropriate penalties should be laid down in the event of a breach of the provisions of this Regulation.

The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission15,