# EUR-Lex - 52012PC0449 - EN

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# 52012PC0449

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the allocation of tariff-rate quotas applying to exports of wood from the Russian Federation to the European Union /* COM/2012/0449 final - 2012/0217 (COD) */**

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EXPLANATORY
MEMORANDUM

In the context of its accession to the
World Trade Organization (WTO), the Russian Federation has agreed to reduce its
currently applied export duty rates on raw wood products. For certain types of
wood, namely some coniferous wood species (i.e. spruce and pine), Russia has
agreed to open tariff-rate quotas for exports of those products and allocate a
specific quota share to the European Union (EU). Export duty rates within the
tariff-rate quotas will be applied at a significantly reduced level (i.e. 13%
for spruce and 15% for pine, as opposed to an unbound current out-quota export
duty rate of 25%, but not less than 15 €/m3). These specific commitments of the
Russian Federation have been included in its WTO Schedule of Concessions as
Annex to Part V of the Schedule.

A bilateral agreement in the form of an
Exchange of Letters (hereinafter referred to as the "Agreement")
establishes general provisions on the implementation of the specific quota shares
allocated to the EU. In particular, the Agreement provides that quantities of
the EU share of the tariff-rate quotas shall be managed by the EU, and that the
Russian Federation shall issue export licences based on the relevant import
documentation issued by the EU.

The Agreement also provides for the
elaboration by the EU and the Russian Federation of more detailed technical
modalities on the management of the tariff-rate quotas by the entry into force
of the Agreement. Such technical modalities are contained in a Protocol,
negotiated between the EU and the Government of the Russian Federation
(hereinafter referred to as the "Protocol"). The Protocol establishes
the rules regarding the management of the export tariff-rate quotas and of
exports within those quotas, including provisions on the cooperation of the competent
authorities of the European Union and the Government of the Russian Federation necessary
to ensure the adequate operation of the system.

The EU has a strong interest in the
tariff-rate quotas which provide for significant advantages for exports of wood
from Russia, with in-quota duties significantly reduced as compared to
(unbound) out-quota duties. In particular, EU forest industries and downstream
users such as the paper, construction and furniture industries have suffered from
consecutive increases of wood export duties applied by the Russian Federation
since 2007. Economic operators in the EU are now eager to access those raw
materials at significantly improved conditions, and it is essentially in their
interest that the tariff-rate quotas have been set.

In order to ensure the effective
application of the management system provided for in the Agreement and the
Protocol by the time of the accession of the Russian Federation to the WTO, both
the Agreement and the Protocol will be applied provisionally from the date of
the Russian Federation's accession to the WTO. Article 3 of Council Decision
2012/105/EU of 14 December 2011 on the signing, on behalf of the European
Union, and provisional application of the Agreement and the Protocol, confirms
the provisional application of both the Agreement and the Protocol pending the
completion of the procedures for the conclusion of the Agreement.

The Commission should be empowered to adopt
the necessary provisions for the management of the quantities of the
tariff-rate quotas allocated to exports to the EU by means of an implementing
act. Article 4 of Council Decision 2012/105/EU of 14 December 2011 on the
signing, on behalf of the European Union, and provisional application of the
Agreement and the Protocol, authorized the Commission to adopt detailed rules
on the method of allocation of quota authorisations pursuant to Article 5,
paragraph 2 of the Protocol, and any other provisions necessary for the
management by the European Union of the quantities of the tariff-rate quotas
allocated to exports to the European Union. On this basis, Commission
Implementing Regulation (EU) No 498/2012 of 12 June 2012 has established the
necessary provisional implementing rules with a view to enabling a fully
operational EU management of its share of the tariff-rate quotas by the time
when the Russian Federation joins the WTO. However, Commission Implementing
Regulation (EU) No 498/2012 will cease to apply on the date on which the
Protocol ceases to be applied provisionally (cf. Article 20(2) of Commission
Implementing Regulation (EU) No 498/2012). The Commission should therefore be
empowered, by means of a regulation of the European Parliament and of the
Council adopted under the ordinary legislative procedure, to adopt the
necessary definitive implementing provisions.

In order to enable a smooth operational
management by the EU of its share of the tariff-rate quotas by the time when
the Russian Federation joins the WTO, Chapter 7 of Commission Implementing Regulation
(EU) No 498/2012 has established provisions related to certain preparatory
steps which need to be taken immediately after entry into force of the provisional
Implementing Regulation. These preparatory measures are required for the
calculation of maximum import amounts (so called "ceilings") for
those companies which can claim status of "traditional" importer
during the first three quota periods of application of the Agreement and the
Protocol (cf. Article 5(4) of the Protocol).

The legal effects of the preparatory
measures taken under Commission Implementing Regulation (EU) No 498/2012 should,
therefore, be maintained by the new implementing regulation to be adopted by
the Commission in order to ensure legal certainty and continuity for economic operators.

2012/0217 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on the allocation of tariff-rate quotas
applying to exports of wood from the Russian Federation to the European Union

THE
EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard
to the Treaty on the Functioning of the European Union, and in particular
Article 207 thereof,

Having regard
to the proposal from the European Commission,

After
transmission of the draft legislative act to the national Parliaments,

Acting in
accordance with the ordinary legislative procedure[1],

Whereas:

(1)       Considering the economic importance for the European Union of
imports of raw wood and the importance that the Russian Federation has for the
Union as a supplier of raw wood, the Commission has negotiated with the Russian
Federation commitments by the Russian Federation to reduce or eliminate its currently
applied export duties on raw wood.

(2)       These commitments, which will become part of the World Trade
Organization (WTO) Schedule of Concessions of the Russian Federation upon its
accession to the WTO, include tariff-rate quotas for the export of specified
types of coniferous wood, a share of which has been allocated for exports to
the Union.

(3)       In the context of the negotiations regarding the accession of the
Russian Federation to the WTO, the Commission has negotiated, on behalf of the
Union, with the Russian Federation, an Agreement in the form of an Exchange of Letters
relating to the administration of those tariff-rate quotas applying to exports
of certain coniferous wood from the Russian Federation to the Union[2] (hereinafter referred to as
"the Agreement").

(4)       As provided for in the Agreement, the Union and the Russian
Federation have also negotiated detailed technical modalities on the management
of the tariff-rate quotas, which are contained in an agreement in the form of a
Protocol negotiated between the Union and the Government of the Russian
Federation[3]
(hereinafter referred to as "the Protocol").

(5)       On
14 December 2011 the Council adopted Decision 2012/105/EU[4] authorizing the signing of the
Agreement and the Protocol and their provisional application from the date of
accession of the Russian Federation to the WTO. The Agreement and the Protocol
were signed on 16 December 2011.

(6)       In accordance with the stipulations of the Agreement, the
Union shall manage the share of tariff-rate quotas allocated to it through its
internal procedures. Decision 2012/105/EU lays down that the Commission is to adopt
detailed rules on the method of allocation of quota authorisations pursuant to the
Protocol, and any other provisions
necessary for the management by the Union of the quantities of the
tariff-quotas allocated to exports to the Union. Commission Implementing
Regulation (EU) No 498/2012 of 12 June 2012 on the allocation of tariff-rate
quotas applying to exports of wood from the Russian Federation to the European
Union[5]
has established the necessary provisional implementing rules with a view to enabling
a fully operational Union management of its share of the tariff-rate quotas by
the time when the Russian Federation joins the WTO. That Regulation will cease
to apply once the Agreement and the Protocol are concluded and enter into
force.

(7)       In
order to ensure uniform conditions for the implementation of the Agreement and
the Protocol following their entry into force, implementing powers should be
conferred on the Commission. Those powers should be exercised in accordance
with Regulation (EU) No 182/2011 of the European Parliament and of the Council
of 16 February 2011 laying down the rules and general principles concerning
mechanisms for control by Member States of the Commission’s exercise of
implementing powers[6].

(8)       The
examination procedure should be used for the adoption of implementing acts
setting out rules on the method of allocation of quota authorisations and any
other provisions necessary for the management by the Union of the quantities of
the tariff-quotas allocated to exports to the Union in implementation of the
Agreement and the Protocol, given that those acts are acts relating to the
common commercial policy and therefore fall under point (iv) of Article 2(2)(b)
of Regulation (EU) No 182/2011.

(9)       In
order to ensure legal certainty and continuity for economic operators the legal
effects of the preparatory measures already taken under Implementing Regulation
(EU) No 498/2012 should be maintained by the new implementing acts to be
adopted pursuant to this Regulation, as if those preparatory measures had been
taken under the corresponding provision of those new implementing acts.

HAVE ADOPTED THIS REGULATION:

Article 1

1.           In implementing the
Agreement between the European Union and the Russian Federation relating to the
administration of tariff-rate quotas applying to exports of wood from the
Russian Federation to the Union and the Protocol on technical modalities
pursuant to that Agreement, the Commission shall adopt detailed rules on the
method of allocation of quota authorisations pursuant to paragraph 2 of Article
5 of the Protocol, and any other provisions necessary for the management by the
Union of the quantities of the tariff-rate quotas allocated to exports to the
Union. Those implementing acts shall be adopted in accordance with the
examination procedure referred to in Article 2.

2.           The implementing acts
referred to in paragraph 1 shall maintain the legal effects of the preparatory
measures taken pursuant to Implementing Regulation (EU) No 498/2012.

Article 2

The Commission shall be assisted by the
Wood Committee established by Article 5 of Decision 2012/105/EU. That committee
shall be a committee within the meaning of Regulation (EU) No 182/2011. The Wood
Committee may examine any matter relating to the application of the Agreement
and the Protocol raised by the Commission or on the request of a Member State.

Where reference is made to this Article,
Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 3

This Regulation shall enter into force on
the day of its publication in the Official Journal of the European Union.

This
Regulation shall be binding in its entirety and directly applicable in all
Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               Position of the European Parliament of [XXX] and Decision of the Council of [XXX].

[2]               OJ L 57, 29.2.2012, p. 3.

[3]               OJ L 57, 29.2.2012, p. 5.

[4]               OJ L 57, 29.2.2012, p. 1.

[5]               OJ L 152, 13.6.2012, p. 28.

[6]               OJ L 55, 28.2.2011, p. 13.