Some complicated features of VER MPEG video traffic such as the different statistical properties according to different picture coding types and the periodic peaks due to I-pictures in the MPEG coding make it difficult to manage resources in ATM networks. In this paper, we discuss some problems of UPC and CAC for VBR MPEG video sources in ATM networks, and propose an efficient traffic control framework for overcoming these problems. First, we model a VBR MPEG video traffic at slice level Using this model, we analyze an ordinary LB system and present some shortcomings of the LB system for policing VBR MPEG video sources. To overcame these shortcomings, we propose a new UPC mechanism called the picture-type dependent LB (PDLB) system. We also discuss a key factor characterizing the cell loss characteristics of ATM multiplexer called 'the periodic-peak position effect'. To reflect this effect on CAC, we propose a new CAC method in cooperation with the PDLB mechanism.