WORLD TRADE
ORGANIZATIONWT/DS27/51/Add.16
1 March 2001
(01-1084)
Original:  English
EUROPEAN COMMUNITIES – REGIME FOR THE IMPORTATION,
SALE AND DISTRIBUTION OF BANANAS
Status Report by the European Communities
Addendum
The following communication, dated 1 March 2001, from the Permanent Delegation of the
European Commission to the Chairman of the Disp ute Settlement Body, is circulated pursuant to
Article 21.6 of the DSU.
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Status Report on the Implementation of the Recommendations and Rulings in the
Dispute regarding European Communities – Regime for the Importation,
Sale and Distribution of Bananas
1. On 29 January 2001, the Council of the European Union adopted Regulation (EC)
No 216/2001 amending Regulation (EEC) No 404/ 93 on the common organisation of the market in
bananas.  This Regulation has been published in the Official Journal of the European Communities
L 31 of 2 February 2001 (copy attached).
The modifications made in Council Regulation 216/2001 provide for three tariff quotas open
to all imports irrespective of their origin:
- A first tariff quota of 2.200.000 tonnes at a rate of 75€/tonnes, bound under the WTO;
- a second autonomous quota of 353.000 tonnes at a rate of 75€/tonnes;- a third autonomous quota of 850.000 tonnes at a rate of 300€/tonnes.
Imports from ACP countries will enter duty-free.  In view of contractual obligations towards
these countries and the need to guarantee proper conditions of competition, they will benefit from a
tariff preference limited to a maximum of 300€/tonnes.
The tariff quotas are a transitional measure leading ultimately to a tariff-only regime.
2. Substantial progress has been achieved with respect to the implementing measures necessary
to manage the three tariff rate quotas on the basis of the First-come, First-served method.
The European Communities are doing their utmost to ensure a rapid, efficient and smooth
implementation of that new management method.WT/DS27/51/Add.16
Page 2
COUNCIL REGULATION (EC) No 216/2001
Of 29 January 2001
Amending Regulation (EEC) No 404/93 on the Common Organisation of the Market in Bananas
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European
Community, and in particular Article 37 thereof,
Having regard to the proposal from the Commission1,
Having regard to the opinion of the European
Parliament2,
Having regard to the opinion of the Economic and Social
Committee3,
Whereas:(1) There have been numerous close contacts with
supplier countries and other interested parties
to settle the disputes arising from the importregime established by Regulation (EEC)No. 404/93
4 and to take account of the
conclusions of the special group set up under
the dispute settlement system of the WorldTrade Organization (WTO).
(2) Analysis of all the options presented by the
Commission suggests that establishment in the
medium term of an import system founded onthe application of a customs duty at anappropriate rate and application of a
preferential tariff to imports from ACP
countries provides the best guarantees, firstlyof achieving the objectives of the commonorganization of the market as regards
Community production and consumer demand,
secondly of complying with the rules oninternational trade, and thirdly of preventingfurther disputes.
(3) However, such a system must be introduced
upon completion of negotiations with theCommunity's partners in accordance withWTO procedures, in particular Article XXVIIIof the General Agreement on Tariffs and Trade
(GATT). The result of these negotiations must
be submitted for approval to the Council whichmust also, in accordance with the provisions ofthe Treaty, establish the applicable level of the
Common Customs Tariffs.
(4) Until the entry into force of that regime, the
Community should be supplied under severaltariff quotas open to imports from all origins
and managed in line with the recommendations
                                                     
1 OJ C 177 E, 27.6.2000, p. 28.
2 Opinion delivered on 13.12.2000 (not yet published
in the Official Journal).
3 OJ C 140, 18.5.2000, p. 6.
4 OJ L 47, 25.2.1993, p. 1. Regulation as last
amended by Regulation (EC) No. 1257/1999 (OJ L 160,
26.6.1999, p. 80).made by the dispute settlement body. The first
tariff quota of 2,200,000 tonnes at a rate of
EUR 75 should be bound in the WTO. A
second, additional tariff quota of353,000 tonnes should be opened to cater forthe increase in consumption resulting from
enlargement of the Community in 1995, with
the same rate applying. To ensure satisfactorysupply to the Community, a third, autonomoustariff quota of 850,000 tonnes should be
opened, also for all origins. Under this latter
tariff quota, provision should be made for thepossibility, in accordance with an appropriateprocedure, of a reduction in the applicable
customs duty in order to allow the effective
importation of bananas originating in thirdcountries which do not benefit from the tariffpreferences granted in respect of bananas
originating in ACP countries.
(5) In view of the contractual obligations towards
the ACP countries and the need to guaranteethem proper conditions of competition,
application to imports of bananas originating in
those countries of a tariff preference ofEUR 300 per tonne would allow the tradeflows in question to be maintained. This will
entail in particular the application to such
imports of zero duty under the three tariffquotas.
(6) The Commission should be authorized to open
negotiations with supplier countries having a
substantial interest in supplying theCommunity market to endeavour to achieve anegotiated allocation of the first two tariffquotas. The Commission should also be
granted authority to lay down rules for the
management of the tariff quotas established bythis Regulation.
(7) Provision should be made for the additional
tariff quota of 353,000 tonnes to be modified to
take account of any increased Communitydemand found when a supply balance is drawnup. Provision should also be made for suitable
specific action to be taken in response to
exceptional circumstances liable to affectsupply of the Community market.
(8) Accordingly, Regulation (EEC) No. 404/93
should be amended.WT/DS27/51/Add.16
Page 3
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EEC) No. 404/93 is hereby amended as
follows:
(1) Articles 16 to 20 shall be replaced by the following:
"Article 16
1. This Article and Articles 17 to 20 shall apply to
imports of fresh products  falling within CN code
ex 0803 00 19 up to the entry into force of the
rate of the common customs tariff for those
products, no later than 1 January 2006,established under the procedure provided for inArticle XXVIII of the General Agreement on
Tariffs and Trade.
2. Until the entry into force of the rate referred to in
paragraph 1, imports of the fresh products
referred to in the said paragraph shall be under
the tariff quotas opened by Article 18.
Article 17To the extent necessary, importation of bananas into
the Community shall be subject to submission of an
import licence, to be issued by Member States to anyinterested parties irrespective of their place ofestablishment in the Community and without
prejudice to specific provisions adopted for the
application of Articles 18 and 19.
Such import licences shall be valid throughout the
Community. Except where derogations are adopted
under the procedure laid down in Article 27, the issueof licences shall be subject to lodging of a securityagainst a commitment to import on the terms of this
Regulation during the period of the licence's validity.
Except in cases of force majeure  the security shall be
wholly or partly forfeit if the operation is not or isonly partly carried out within the time allowed.
Article 18
1. Each year from 1 January the following tariff
quotas shall be opened:
(a) a tariff quota of 2,200,000 tonnes net
weight, called “quota A”;
(b) an additional tariff quota of 353,000
tonnes net weight, called “quota B”;
(c) an autonomous tariff quota of 850,000
tonnes net weight, called “quota C”.
These tariff quotas shall be open for imports of
products originating in all third countries.
The Commission may, on the basis of an agreement
with World Trade Organization contracting parties
with a substantial interest in the supply of bananas,
allocate tariff quotas “A” and “B” among suppliercountries.2. Imports under tariff quotas “A” and “B” shall be
subject to customs duty of EUR 75 per tonne.
3. Imports under tariff quota “C” shall be subject to a
customs duty of EUR 300 per tonne.
The customs duty set out in the first subparagraph
may be reduced during the year by the Commissioninsofar as this is  necessary to ensure the possibility of
effective importation of bananas originating in third
countries which do not benefit from the tariff
preference of paragraph 4 of this Article.
The detailed arrangements for the application of this
paragraph shall be adopted in accordance with the
procedure laid down in Article 27.
4. A tariff preference of EUR 300 per tonne shall apply
to imports originating in ACP countries both underand outside the tariff quotas.
5. The duty rates set in this Article shall be converted
into national currency at the rates applicable for theproducts in question for the purposes of the commoncustoms tariff.
6. The additional tariff quota provided for in
paragraph 1(b) may be increased if demand in theCommunity increases as indicated by a balance sheetof production, consumption, imports and exports.
The balance sheet shall be adopted and the tariff
quota increased under the procedure set out inArticle 27.
7. Where supply of the Community market is subject to
exceptional circumstances affecting production or
importation, the Commission shall adopt the specificmeasures necessary under the procedure set out in
Article 27.
In such cases the additional tariff quota “B” may be
adjusted on the basis of the balance sheet referred toin paragraph 6. The specific measures may derogatefrom the rules adopted under Article 19(1). They
must not discriminate between third countries.
8. Bananas re-exported from the Community shall not
be counted against the corresponding tariff quotas.
Article 191. The tariff quotas may be managed in accordance with
the method based on taking account of traditional
trade flows (“traditionals/newcomers”) and/or othermethods.
2. The method adopted shall take account as
appropriate of the need to maintain the equilibrium of
supply to the Community market.
Article 20The Commission shall adopt provisions to implement
this Title under the procedure set out in Article 27. Their
scope shall include:
(a) rules on the management of the tariff quotas
referred to in Article 18;WT/DS27/51/Add.16
Page 4
(b) where required, guarantee of the nature and
origin of the products;
(c) measures needed to ensure respect for
obligations stemming from agreements
concluded by the Community under
Article 300 of the Treaty."
2. The seventh indent of Article 29 shall be replaced by
the following:
"—quantities of Community and ACP bananas and
bananas from third countries other than ACP
countries marketed in their territory."3. The Annex shall be deleted.
Article 2
This Regulation shall enter into force on the third day
following that of its publication in the Official Journal of
the European Communities .
It shall apply from 1 April 2001. However, the
Commission may, according to the procedure laid downin Article 27, delay the date until 1 July 2001 at thelatest, if this proves necessary for the implementation ofthe modifications in the management of the tariff quotas.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 29 January 2001.
For the Council
The President
M. WINBERG
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