Appendix II — Preferential import tariff

Dairy produce; birds' eggs and poultry eggs; natural honey; edible products of animal origin, not elsewhere specified or included

Notes.

1. The term "milk" means full cream milk or partially or completely skimmed milk.

2. For the purposes of heading 04.03, yogurt may be concentrated or flavoured and may contain added sugar or other sweetening matter, fruit, nuts, cocoa, chocolate, spices, coffee or coffee extract, plants, parts of plants, cereals or bakers' wares, provided that the added substances are not used for the purpose of replacing, in whole or in part, any milk constituent, and the product retains the essential character of yogurt.

3. For the purposes of heading 04.05:

(a) The term "butter" means natural butter, whey butter or recombined butter (fresh, salted or rancid, including canned butter) derived exclusively from milk, with a milk fat content of 80% or more but not more than 95% by weight, a maximum non-milk-fat solids content of 2% by weight and a maximum water content of 16% by weight. Butter does not contain added emulsifiers, but may contain sodium chloride, food colours, neutralising salts and cultures of harmless lactic-acid-producing bacteria.

(b) The term "dairy spreads" means a spreadable emulsion of the water-in-oil type, containing milk fat as the only fat in the product, with a milk fat content of 39% or more but less than 80% by weight.

4. Products obtained by the concentration of whey, with the addition of milk or milk fat, are to be classified as cheese in heading 04.06 provided that they meet the following three criteria:

(a) A milk fat content, by weight, in the dry matter of 5% or more;

(b) A dry matter content, by weight, of at least 70% but not more than 85%; and

(c) The product is moulded or capable of being moulded.

5. This Chapter does not cover:

(a) Non-living insects, unfit for human consumption (heading 05.11);

(b) Products obtained from whey, containing by weight more than 95% lactose, expressed as anhydrous lactose calculated on the dry matter (heading 17.02);

(c) Products obtained from milk by replacing one or more of its natural constituents (for example, butyric fats) by another substance (for example, oleic fats) (heading 19.01 or 21.06); or

(d) Albumins (including concentrates of two or more whey proteins, containing by weight more than 80% whey proteins, calculated on the dry matter) (heading 35.02) or globulins (heading 35.04).

6. For the purposes of heading 04.10, the term "insects" means non-living, edible insects, whole or in parts, fresh, chilled, frozen, dried, smoked, salted or in brine, as well as flours and meals of insects, fit for human consumption. However, this heading does not cover non-living, edible insects prepared or preserved otherwise (generally Section IV).

Subheading Notes.

1. For the purposes of subheading 0404.10, the expression "modified whey" means products consisting of whey constituents, that is whey from which all or part of the lactose, proteins or minerals have been removed, whey to which natural whey constituents have been added, and products obtained by mixing natural whey constituents.

2. For the purposes of subheading 0405.10, the term "butter" does not include dehydrated butter or ghee (subheading 0405.90).

Additional Notes.

1. Heading 04.02: Milk powder in full cream or partially or completely skimmed form, which may be sweetened with sugar or other sweetening matter. In addition to natural milk constituents, milk of this heading may contain small quantities of stabilisers (such as disodium phosphate, trisodium citrate and calcium chloride) or very small quantities of anti-oxidants or anti-caking agents (such as phospholipids, amorphous silicon dioxide), or the addition of vitamins (additions such as vitamins and minerals being constituents naturally present in natural milk), or it may contain small quantities of chemical substances (such as sodium carbonate) required in processing, and may also have added a small quantity of starch to maintain the milk in its normal physical state (not exceeding 5% by weight).