Meeting of the CMO Committee concerning
Horizontal Matters

14June2017

Version 11

Track changes = difference with version 10

WD IMPLEMENTING ACT

Exchange of views on TRQs

WORKING DOCUMENT ON TRADE MECHANISMS

This document is provided by DG AGRI for the purposes of providing a framework for a structured discussion on suggestions that have been put forward by Member States and stakeholders in the course of the review of the TRQ legislation. It represents a possible structure in which generic rules are set out in the body, while sectoral specificities are to be set out in extra chapters and Annexes. The document is an orientation, and the content is not complete. It does not reflect the official position of the Commission, and the points mentioned will not necessarily be included in the Commission's eventual proposal.

ENEN

WORKING DOCUMENT

DRAFT

COMMISSION IMPLEMENTING REGULATION (EU) …/...

of XXX

laying down the rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the management system of tariff rate quotas with licences

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) no 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007[1], and in particular Articles 187and 223 thereof,

Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/00, (EC) No 1290/05 and (EC) No 485/2008[2], and in particular Article 66 thereof,

[Cereals; rice; beef and veal; milk and milk products]

Having regard to Council Regulation (EC) No 1095/96 of 18 June 1996 on the implementation of the concessions set out in Schedule CXL drawn up in the wake of the conclusion of the GATT XXIV.6 negotiations, and in particular Article 1(1) thereof,

[Cereals; beef and veal; milk and milk products; pigmeat; eggs; poultrymeat]

Having regard Regulation (EU) No 374/2014 of the European Parliament and of the Council[3] provides for preferential arrangements as regards the customs duties for the import of certain goods originating in Ukraine,

[Rice]

Having regard to Council Decision 96/317/EC of 13 May 1996 concerning the conclusion of the results of the consultations with Thailand under GATT Article XXIII, and in particular Article 3 thereof,

Having regard to Council Regulation (EEC) No 3491/90 of 26 November 1990 on imports of rice originating in Bangladesh, and in particular Article 3 thereof,

[Fruit and vegetables and processed fruit and vegetables]

Having regard to the Agreement in the form of an Exchange of Letters between the European Community and the Argentine Republic pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT,[4] approved by Council Decision 2001/404/EC.[5]

[Eggs]

Having regard to Regulation (EU) No 510/2014[6] of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216/2009 and (EC) No 614/2009 and in particular points (a), (b), (c) and (d) of Article 9 and point (a) of Article 16(1) thereof,

Having regard to Council Regulation (EEC) No 2783/75[7] of 29 October 1975 on the common system of trade for ovalbumin and lactalbumin, and in particular Article 4(1) thereof,

[Poultrymeat]

Having regard to Council Regulation (EC) No 774/94 of 29 March 1994 opening and providing for the administration of certain Community tariff quotas for high-quality beef, and for pigmeat, poultrymeat, wheat and meslin, and brans, sharps and other residues, and in particular Article 7 thereof,

Having regard to Council Decision 2007/360/EC of 29 May 2007 on the conclusion of Agreements in the form of agreed minutes on the modification of concessions with respect to poultrymeat between the European Community and the Federal Republic of Brazil, and between the European Community and the Kingdom of Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994), and in particular Article 2 thereof,

Having regard to Council Regulation (EC) No 2398/96 of 12 December 1996 opening a tariff quota for turkey meat originating in and coming from Israel as provided for in the Association Agreement and the Interim Agreement between the European Community and the State of Israel, and in particular Article 2 thereof,

Having regard to Council Decision 2003/917/EC of 22 December 2003 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the State of Israel concerning reciprocal liberalisation measures and the replacement of the EC-Israel Association Agreement, and in particular Article 2 thereof

Whereas:

(1)Regulation (EU) No 1308/2013 repealed and replaced Council Regulation (EC) No 1234/2007 and lays down rules regarding tariff quota management and special treatment of imports by third countries. It also empowers the Commission to adopt delegated and implementing acts in that respect. In order to ensure the smooth functioning of the management of tariff quotas in the new legal framework, certain rules have to be adopted by means of such acts. As the aim of those acts is to simplify and adapt the provisions applicable to the management of tariff quotas to the new legal framework established by Regulation (EU) No 1308/2013, Commission Delegated Regulation (EU) XXX/XXX amends Commission Regulations [...] and repeals Commission Regulations (EC) [...].

(2)The Union has undertaken to open [import] tariff quotas for certain agricultural products. In some cases imports of products under such import tariff quotas are subject to an import licence obligation.

(3)The Union has undertaken to manage certain export tariff quotas.

(4)Based on the international agreements some tariff quotas are managed by documents issued by third countries. It is therefore necessary to lay down specific rules for that.

(5)A tariff quota period of 12 consecutive months should be opened in respect of all the tariff quotas falling within the scope of this Regulation. However, in some cases, there may be a need to provide for tariff quota subperiods within the annual tariff quota period.

(6)In order to simplify and improve the effectiveness and usefulness of the administration and control mechanisms, common conditions should be laid down for the administration of import tariff quotas subject to an import licensing system and which have to be managed by a method according to which licences are allocated in proportion to the overall quantities requested (hereinafter the ‘simultaneous examination method’), or a method of import based on documents to be issued by third countries. Such provisions should also contain rules on the submission of applications and licences which should apply where necessary in addition to or by way of derogation from certain provisions of Commission Delegated Regulation (EU) 2016/1237 of 18May 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the rules for applying the system of import and export licences and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to the rules on the release and forfeit of securities lodged for such licences; and Commission Implementing Regulation (EU) 2016/1239 of 18 May 2016 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the system of import and export licences.

(7)When administering quotas by means of licence, the relevant authorities shall provide, upon the request of any applicants having an interest in the trade in the product concerned, all relevant information. The Commission shall publish concerning procedures for the submission of applications, the overall amount of quotas to be applied by quantity and/or value, the opening and closing dates of quotas, in such a manner as to enable governments and traders to become acquainted with them. Such publication shall take place, whenever practicable, within 90 days prior to the effective date of the requirement but in all events not later than such effective date. Any exception, derogations or changes in or from the rules concerning licensing procedures or the list of products subject to import licensing shall also be published in the same manner and within the same time periods specified above, as specified in the World Trade Organization Import Licence Agreement and the Bali Ministerial Decision. When the respect of the above-mentioned timeframes would not be possible for practical reasons, the Commission reserves the right to modify, reduce or extend those timeframes.

(8)It is necessary to establish the appropriate level of the security for the licences to be issued under the tariff quotas, so as to guarantee that the products will be imported [or exported] during the period of validity of the licence.

(9)Detailed provisions should be laid down as regards proof of trade proving the involvement in the trade in the past.

(10)In order to better manage over-demanded tariff quotas, specific provisions should be laid down including those concerning declaration of independence for such tariff quotas.

(11)Provisions governing the issuing of licences should be laid down. Licences should be issued after an adequate period for evaluating the licence applications submitted. However, if the quantities covered by the licence applications exceed the quantities available for the import tariff quota period concerned, allocation should be subject, where appropriate, to the application of an allocation coefficient. After that coefficient has been applied, the result may nevertheless need to be adapted as regards the decimals in order to ensure that the available quantity will not be exceeded.

(12)It is necessary to lay down periods of validity of the licences issued under the tariff quotas. This validity can vary for specific tariff quotas and has to be fixed in order to define when the obligation to import [or export] is to be fulfilled.

(13)Given the sensitivity of a transfer of licence it is necessary to lay down detailed provisions as regards transferee´s eligibility.

(14)The rules applicable to the time limit within which proof has to be furnished that licences have been used should also be laid down.

(15)For the sake of the sound management of tariff quotas, the Commission should receive the relevant information in good time.

(16)Taking into consideration the need of a smooth transition from the current rules to those being introduced by this Regulation, some transitional provisions should be adopted.

[Cereals]

(17)Following trade negotiations, the Union opens an annual import tariff quota of common wheat of a quality other than high quality covered by CN code 1001 99 00, including 572 000 tonnes for imports originating in the United States (order number 09.4123), 38 000 tonnes for imports originating in Canada (order number 09.4124), 2 371 600 tonnes for other third countries (order number 09.4125). The Agreement in the form of an Exchange of Letters between the European Community and the United States of America pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994[8], approved by Council Decision 2006/333/EC[9], provides for an increase of 6 787 tonnes as regards the quota order number 09.4125. The Agreement between the European Community and the Government of Canada on the conclusion of GATT Article XXIV:6 Negotiations[10] provides an increase of 853 tonnes as regards the quota order number 09.4124. The schedule of commitments of the Republic of Bulgaria and Romania in the context of their accession to the European Union, approved by Council Decision 2011/769/EU[11], provides for the addition of 122 790 tonnes as a new quota order number 09.4133. [The WTO schedule CXL requires the Union to open an annual import tariff quota of 3 112 030 tonnes of common wheat of a quality other than high quality covered by CN code 1001 99 00, including 572 000 tonnes for imports originating in the United States (order number 09.4123), 38 853 tonnes for imports originating in Canada (order number 09.4124), 2 378 387 tonnes for other third countries (order number 09.4125) and 122 790 tonnes for all third countries (order number 09.4133).]

(18)Following trade negotiations which resulted in the conclusion of agreements in the form of an Exchange of Letters with Canada and the United States of America, approved respectively by Council Decisions 2003/253/EC[12] and 2003/254/EC[13], the Union opens an annual import tariff quota of 300 000 tonnes of barley falling within CN code 1003 from third countries (order number 09.4126). The Agreement in the form of an Exchange of Letters between the European Community and the United States of America pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994, approved by Council Decision 2006/333/EC, provides for an increase of 6 215 tonnes. The schedule of commitments of the Republic of Bulgaria and Romania in the context of their accession to the European Union, approved by Council Decision 2011/769/EU, provides for the addition of 890 tonnes. [The WTO schedule CXL requires the Union to open an annual import tariff quota of 307 105 tonnes of barley falling within CN code 1003 from third countries (order number 09.4126).]

(19)The Agreement in the form of an Exchange of Letters between the European Community and the United States of America pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994, approved by Council Decision 2006/333/EC, provides for the opening of a Community tariff quota for the import of a maximum annual quantity of 242 074 tonnes of maize falling under CN codes 1005 10 90 and 1005 90 00 from third countries (order number 09.4131). The schedule of commitments of the Republic of Bulgaria and Romania in the context of their accession to the European Union, approved by Council Decision 2011/769/EU, provides for the addition of 35 914 tonnes. [The WTO Schedule CXL requires the Union to open an annual tariff quota of 277 988 tonnes of maize falling under CN codes 1005 10 90 and 1005 90 00 from third countries (order number 09.4131).]

(20)Pursuant to Schedule CXL, the Union is committed to facilitating the annual import of 2 000 000 tonnes of maize and 300 000 tonnes of sorghum into Spain and 500 000 tonnes of maize to Portugal at reduced import duty if necessary.

(21)By Council Decision 2014/668/EU[14], the Council authorised the signing, on behalf of the European Union, and provisional application, of the Association Agreement between the European Union and its Member States, of the one part, and the Ukraine, of the other part (‘the Agreement’). That Agreement provides for the elimination of customs duties on imports of goods originating in Ukraine in accordance with its Annex I-A to Chapter I. The Appendix to that Annex provides the opening of tariff quotas for imports of certain cereals into the EU.

(22)It is appropriate that those quotas are administered by the Commission in accordance with Article 184(2)(b) of Regulation (EU) No 1308/2013. With a view to ensure a sound and efficient management, a monthly examination of import licences is required.

[Rice]

(23)Under the negotiations conducted pursuant to GATT Article XXIV(6) in the wake of the accession of Austria, Finland and Sweden to the European Community, it was agreed to open from 1 January 1996 an annual import quota for 63 000 tonnes of semi-milled and wholly milled rice covered by CN code 1006 30 at zero duty. That quota was included in the European Community list provided for in Article II(1)(a) of GATT 1994.

(24)Under the consultations with Thailand pursuant to GATT Article XXIII, it was agreed to open an annual import quota for 80 000 tonnes of broken rice covered by CN code 1006 40 00.

(25)Council Decision 2005/953/EC of 20 December 2005 on the conclusion of an agreement in the form of an Exchange of Letters between the European Community and Thailand pursuant to Article XXVIII of GATT 1994 relating to the modification of concessions with respect to rice provided for in EC Schedule CXL annexed to GATT 1994 provides for the opening of a new global annual import quota of 13 500 tonnes of semi-milled or wholly milled rice falling within CN code 1006 30 at zero duty and an increase in the annual import quota for broken rice falling within CN code 1006 40 00 to 100 000 tonnes.

(26)The Agreement in the form of an Exchange of Letters between the European Community and the Kingdom of Thailand pursuant to Article XXIV: 6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union ( 1 ), approved by Council Decision 2006/324/EC ( 2 ), provides for an increase in the annual global tariff quota at zero duty for wholly milled and semi-milled rice covered by CN code 1006 30 of 25 516 tonnes for all origins and of 1 200 tonnes for Thailand. It also provides for the opening of an additional zero duty tariff quota of 31 788 tonnes of broken rice covered by CN code 1006 40 for all origins, and for new quotas at 15 % duty valid for all origins of 7 tonnes of paddy rice covered by CN code 1006 10 and 1 634 tonnes of husked rice covered by CN code 1006 20.

[Sugar]

(27)Pursuant to Article 1 of Council Regulation (EC) No 1095/96 of 18 June 1996 on the implementation of the concessions set out in Schedule CXL drawn up in the wake of the conclusion of the GATT XXIV.6 negotiations, the Commission is to adopt the measures for the implementation in agriculture of the concessions set out in schedule CXL (European Communities) forwarded to the World Trade Organisation. Under this schedule, the Community undertook to import from India a quantity of 10 000 tonnes at zero duty of sugar products falling within CN codes 1701. In the wake of the accession of Austria, Finland and Sweden and then of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia and then of Bulgaria and Romania to the European Union, and in the context of the conclusion of the negotiations under Article XXIV of the GATT, the Community further undertook to import from third countries a quantity of raw cane sugar for refining at a rate of duty of EUR 98 per tonne.

(28)Under Article 4(4) of Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union’s Stabilisation and Association process, amending Regulation (EC) No 2820/98 and repealing Regulations (EC) No 1763/1999 and (EC) No 6/2000, imports of sugar products falling within CN codes 1701 and 1702 originating in Bosnia and Herzegovina, Serbia and Kosovo are subject to annual duty-free tariff quotas.

(29)A Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part, was signed in Luxembourg on 12 June 2006. Pending the completion of the procedures necessary for its entry into force, an Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Albania, of the other part, was signed and concluded, which entered into force on 1 December 2006.