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Whereas, under Article 1 (2) of the abovementioned Protocol, the Community arrangements applicable to the United Kingdom on imports from third countries of agricultural products covered by Annex II to the Treaty establishing the European Economic Community and of those covered by Council Regulation No 170/67/EEC of 27 June 1967 () on the common arrangements for trade for ovalbumin and lactalbumin as amended by Regulation (EEC) No 1081/71 () and Council Regulation (EEC) No 1059/69 () of 28 May 1969 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products, as last amended by Regulation (EEC) No 609/72 (), are applicable to the Channel Islands and the Isle of Man (hereinafter called ‘islands’); and whereas the other provisions of the Community rules which are necessary in order to allow free movement and observance of normal conditions of competition in the trade of the aforesaid products, are also applicable; whereas it is the responsibility of the Council to determine, on a proposal from the Commission, the conditions for the application in these territories of the abovementioned provisions;

Whereas, to allow free movement of the aforesaid products, the rules relating to these trade arrangements applicable in the United Kingdom should, as a general rule, be applicable, the United Kingdom and the islands being treated as a single Member State for the purpose of applying these rules; Whereas, however, sums charged in these islands for customs duties, charges, levies or other amounts are not part of the Community budget; whereas Community financing of the common agricultural policy is therefore not applicable; whereas rules to promote exports should not be applied, the amounts granted by the Community serving only as a ceiling for the aid which can be granted by the islands; Whereas steps should be taken to prevent products originating in these islands being exported to third countries by a Member State with a view to benefiting from the refund financed from the Community's budget;

Whereas Community rules on intra-Community trade provide, in certain cases, for the granting of amounts on exports from the United Kingdom to other Member States; whereas these amounts should serve as a ceiling for the aid which can be granted by the islands; whereas, as far as other aid granted in trade is concerned, application of Community rules can be confined to notification arrangements, the Commission being free to make observations; Whereas, to ensure that there are no obstacles to free movement of the said products, other rules — on veterinary and plant health legislation, on marketing of seeds and propagating material ◄ , on food and feedingstuffs legislation, on quality and marketing standards — must be applied but only insofar as they affect trade; Whereas, in the veterinary field, the situation in these islands is similar to that of Northern Ireland; whereas the islands can therefore be allowed to follow the arrangements to be applied in this matter by Northern Ireland without giving rise to any difficulties in trade; Whereas the arrangements thus defined appear sufficient to ensure the attainment of the objectives laid down in the abovementioned protocol,