For the sake of clarity Regulation (EC) No 820/97 should be repealed and replaced by this Regulation.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

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.

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.

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.

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.

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