Trade Mechanisms, Review TRQ Legislation 1

Trade Mechanisms, Review TRQ legislation 1

Meeting of the Expert Group on delegated acts

and of the Committee concerning
Horizontal Matters of the CMO

25 May 2016

Exchange of views on TRQs

REV.2. Tracked changes = difference with rev.1 of 23 March = 27 April 2016.

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.

Present Provision / Possible Delegated Act / Possible Implementing Act / Comment /
The Bali Ministerial Declaration (WT/MIN(13)/DEC)
Recital on Transparency provisions
When administering quotas by means of license, 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 License 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. / The recitals should express that this Regulation also respects and implements the requirements of the WTO Bali Ministerial Declaration.
Article 1
SCOPE OF THE REGULATION
1. This Regulation supplements the rules for applying the system of Tariff Rate Quotas for agricultural products (TRQ) managed by licence, provided for in Articles 184 - 188 [ or Chapter III, Part III] of Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 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. / Article 1
SCOPE OF THE REGULATION
1. This Regulation lays down common rules for the system of Tariff Rate Quotas for agricultural products (TRQ) managed by licence, provided for in Articles 184 - 188 [or Chapter III of Part III ] of Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 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. / Art. 185 CMO on specific tariff quotas ("abatimento") could be inserted in the third wave trade mechanisms Regulation
[2. This Regulation supplements the rules, under the system of import and export licences for a tariff rate quota, for the modalities of penalties provided for in Article 64(4)(d), and for the release of securities, provided for in Article 66 of 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. This Regulation lays down common rules under the system of import and export licences for a tariff rate quota, for the modalities of penalties provided for in Article 64(4)(d), and for the release of securities, provided for in Article 66 of 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.]
3. Delegated Regulations (EU) No [Licences], (EU) No 907/2014, and (EU) 2015/2446 [Union Customs Code] shall apply, safe as otherwise provided for in this Regulation. / 3. Implementing Regulations (EU) No [Licences], (EU) No 908/2014, and (EU) 2015/2447 [Union Customs Code] shall apply, safe as otherwise provided for in this Regulation.
4. This regulation lays down complementary common rules applicable to agricultural TRQs managed by customs' first come/first served system as set out in Articles 54 and 55 of Implementing Regulation (EU) 2015/2477, insofar as this is required under the international agreement concerned . / Concerns some exceptional issues, like beef certificate of authenticity to be submitted to custom too.
Art. 1(2) Reg. 1301/2006
2. Commission Regulations governing a given import tariff quota managed by a system of import licences and the management of which does not fall within the scope of the common organisation of a market may provide that this Regulation shall apply to that import tariff quota. / 5. Commission Regulations governing a given import tariff quota managed by a system of import licences and the management of which does not fall within the scope of the common organisation of the markets may provide that this Regulation shall apply to that import tariff quota.
.
Article 2
In addition to Article 184 of Regulation (EU) No 1308/2013, on the basis of the international agreement concerned, TRQs shall be managed by a method based on documents issued by third countries where this is indicated in the specific sectoral chapter to this Regulation. / No simultaneous examination; only the 3rd country document gives access to the licence. Example: baby beef Reg. 1255/2010
Art. 2-6 are deleted and Annexes are grouped by sector instead of by management method
. / IA "method of administration"
Superfluous, now that Art. 1(1) already mentions " managed by licence"
Art. 6(4) Reg. 1301/2006
4. Box 20 of import licence applications and import licences shall contain the import tariff quota order number referred to in paragraph 1. / Article 3
Each import tariff quota is identified [in the Union legislation] by an order number that facilitates its management.
The order numbers for TRQs managed by licence are mentioned in the Annexes to this Regulation.
The order number shall be mentioned in section 20 in all applications and issuing of licences, and in all other communications related to the management of the TRQ concerned. / Clarity, describing the function of the order number.
The first subparagraph copies Art. 49(2) Impl. Reg. 2015/2447
To consider whether/which TRQs could be transferred to DG TAXUD fcfs and under which conditions.
·  WTO standard:
use < 65%
·  During last 3 TRQ periods
·  If the international agreement allows
Additional standard
·  If underuse was not due to Sanitary or Phyto Sanitary reasons
[ Art. 186(1)(c) Reg. 1308/2014
Article 2
SECURITY
1. Licences for a TRQ shall be subject to a security specific for the product concerned and for an amount referred to in Article 7 of Implementing Regulation (EU) 2016/….. [TRQ]. / Art. 187(d) Reg. 1308/2014
Article 4
1. The amount of the security referred to in Article 2 of Delegated Regulation (EU) 2016/ …. [TRQ] shall be as set out in the Annexes [….] to this Regulation. / Art. 2 DA derogates from Art. 4(1) DA [Licences]
[2. The minimum amount of security to be lodged for one import licence application for a TRQ shall be 100 EUR.] / MS do not support
Moved from Art. 6 (2) Reg. 1301/2006
2. In accordance with Article 15(2) of Regulation (EC) No 1291/2000 a security shall be lodged. The security shall be released in respect of quantities covered by applications for which no licence could be issued further to the application of the allocation coefficient referred to in Article 7(2) of this Regulation. / [3. The security shall be released in respect of quantities covered by applications for which no licence could be issued further to the application of the allocation coefficient referred to in Article 7(2) of this Regulation.] / Legal service opinion: superfluous. See Art. 54 , 3rd subparagraph Impl. Reg. 908/2014
Article 2 Reg. 1301/2006
1. Import tariff quotas shall be opened for a period of 12 consecutive months, hereinafter referred to as ‘import tariff quota period’. / Art. 187(a) Reg. 1308/2014
Article 5
IMPORT TARIFF QUOTA PERIOD
1. Import tariff quotas shall be opened for a period of 12 consecutive months, hereinafter referred to as ‘import tariff quota period’.
2. The import tariff quota period may be divided into several subperiods. / 2. The import tariff quota period may be divided into several sub-periods. / MS / specialists to see whether sub-periodicity still is needed for each TRQ.
3. The total quantity available for the import tariff quota period may be divided over the sub-periods. In that case the term "quota tranche" will be used. / Introduced at many requests in order to make the difference between
2.  100% available quantity, but accessible in several sub-periods
3.  Divided quantity available only in the according sub-period.
The import tariff quota period, sub-periods, or quota tranches shall apply as set out in Annex [….] to this Regulation.
Article 3 Reg. 1301/2006
PENALTIES / Art. 64(6) Reg. 1306/2013
Move to end of the Regulation
Article 4 Reg. 1301/2006
SURVEILLANCE OF GOODS / Move to notifications Article
Art. 186(1)(a) Reg. 1308/2013
Article 3
ELIGIBILITY FOR APPLICATION
1. Operators applying for a TRQ, [or for a transfer of a TRQ licence in the meaning of Article 6(2) of Delegated Regulation (EU) 2016/…. [ Licences] ] shall submit:
- proof of their historic trade if required so in accordance with Article 4;
[- proof of their independency of other applicants if required so in accordance with Article 4; ] / New Introduction article, listing the possible requirements for clarity reasons, and for simple references further in this Regulation.
2. If the license application is not approved, the licence issuing authority shall provide the applicant with:
(a) written notification of its decision concerning the non-approval, together with the reasons for the decision; and
(b) information on rights of appeal against such decisions and on the applicable procedure and time limits. / Art 3.5 (e) of the WTO agreement on import licensing procedures,[1] for non-automatic licenses reference is made to the right of appeal.
The text is inspired on Art. 54 Reg. 882/2004 on official controls performed to ensure the verification of compliance with feed and food law, animal health and animal welfare rules.
Art. 5 Reg. 1301/2006
Applicants shall submit, at the time of their first application for a given import tariff quota period to the competent authorities of the Member State in which they are established and in which they are registered for VAT purposes the application referred to in Article 6(1) accompanied by proof that at the time their application is submitted, they have been engaged in trade with third countries in products covered by the relevant common market organisation:
— during the 12 month period immediately prior to the time of that application, and
— during the 12 month period immediately prior to the 12 month period referred to in the first indent. / Art. 186(1)(a) Reg. 1308/2014
Article 4
PROOF OF TRADE
1. Applicants shall submit, at the time of their first application for a given [import] TRQ order number and import tariff quota period to the licence issuing authority of the Member State in which they are established and in which they are registered for VAT purpose[] a proof that at the time their application for a licence is submitted, they have been engaged in trade with third countries
in products covered by the relevant market sector; during the [12 month] period immediately prior to [the time of that application] , [and
— during the [12 month] period immediately prior to the [12 month] period referred to in the first indent
- if applicable, for a quantity as set out in Annex [….] / COM-wide harmonisation.
All […..] for discussion:
·  Each year at the opening of the TRQ period
·  OnlyAs a general rule import and export, for over-subscribed TRQs only import. See Art. 5 DA
·  VAT. EORI must be mentioned in the licence application (see Art. 4 IA Licences). But EORI is not necessarily registered in the Member State of the operator's residence, while VAT registration is so.
·  12 [+12] months carry-back
·  Start counting from the day the application is lodged
·  A minimum quantity functioning as a threshold for non-serious operators.
Applicants shall apply to one administrative body only (Para 3 of Bali Ministerial Decision), which is expressed in "the licence issuing authority"
2. As concerns eligibility to a certain TRQ where the historic trade performance is subject to a certain quantity, if an applicant legally merged with another operator, the quantities of the merged operators may be accumulated for establishing the quantity of the merged enterprise.