**Important legal notice**

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# 52006PC0771

**Proposal for a Council Regulation amending Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products  /* COM/2006/0771 final */****

[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 8.12.2006

COM(2006) 771 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products

(presented by the Commission) 

 EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL |

Grounds for and objectives of the proposal The quota amount for certain autonomous Community tariff quotas is insufficient to meet the needs of the Community industry for the current quota period. In response to requests from several Member States, the Commission's departments, together with the government experts concerned, considered whether to open, increase, extend or close autonomous tariff quotas for certain industrial products. |

General context On 20 December 1996 the Council adopted Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products so that Community demand for the products in question could be met under the most favourable conditions. New Community tariff quotas should be opened at reduced or zero rates of duty for appropriate volumes, without disturbing the markets for such products. Discussions at meetings of the Economic Tariff Questions Group showed that the Member States were ready to open, increase, extend or close quotas for the products covered by the proposal for a Regulation, without disturbing the markets for such products. |

Provisions in force in the field covered by the proposal Regulation (EC) No 2505/96 (OJ L 345, 31.12.1996). Regulation last amended by Regulation (EC) No 962/2006 (OJ L 176, 30.06.2006). |

Consistency with the other policies and objectives of the Union The proposal is in line with agricultural, trade, enterprise, development and external relations policies. Especially this proposal is not at the expense of developing countries enjoying a preferential trading agreement with the EU (e.g. GSP, ACP regime). |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of stakeholders |

Consultation methods, main sectors targeted and general profile of respondents The Economic Tariff Questions Group representing the industries of each Member State was consulted. |

Summary of responses and how they have been taken into account All listed quotas reflect the agreement reached by the Group. |

Collection and use of expertise |

Scientific areas or fields of expertise concerned Experts representing the Member States in the Economic Tariff Questions Group |

Methodology used Open consultation |

Main organisations/experts consulted Experts designated by each of the Member States |

Summary of advice received and used |

There was no mention of potentially serious risks with irreversible consequences. Agreement of the Economic and Tariff Questions Group. |

Methods used to make the results of these expert opinions available to the public Publication of the proposal |

Impact assessment Not applicable Proposal not included in the Commission's Working and Legislative Programme 2006 |

LEGAL ELEMENTS OF THE PROPOSAL |

Summary of the proposed action Council Regulation amending Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products |

Legal basis Article 26 of the EC Treaty |

Subsidiarity principle The proposal falls under exclusive Community and Member State competence. The subsidiarity principle does not therefore apply. |

Proportionality principle The proposal complies with the principle of proportionality for the following reasons. |

The proposed measures are in accordance with the objectives of the "Customs 2007" action programme. |

This set of measures is in line with the principles set out to simplify the procedures for the operators engaged in foreign trade and in accordance with the Commission communication concerning autonomous tariff suspensions and quotas (98/C 128/02). |

Choice of instruments |

Proposed instruments: Regulation |

Other instruments would not be appropriate for the following reasons: By virtue of Article 26 of the EC Treaty autonomous tariff suspensions and quotas are approved by the Council acting on a qualified majority on the basis of a Commission proposal. |

BUDGETARY IMPLICATION |

Uncollected customs duties |

ADDITIONAL INFORMATION |

Repeal of existing legislation Adopting this proposal will mean some legislation must be repealed. |

Review/revision/sunset clause |

The proposal includes a sunset clause for all or part of the act. |

Recasting The proposal involves recasting existing legislation. |

1.  Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 26 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) On 20 December 1996 the Council adopted Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products.[1] Since community demand for the products in question is to be met under the most favourable conditions, certain existing tariff quotas should be extended or adjusted, and some new Community tariff quotas should be opened at reduced or zero rates of duty for appropriate volumes, without disturbing the markets for these products.

(2) Since the quota amount for one Community tariff quota is insufficient to meet the needs of Community industry for the current quota period, it should be increased with effect from 1 January 2006

(3) It is no longer in the Community interest to continue to grant Community tariff quotas in 2007 for certain products on which duties were suspended in 2006. These products should therefore be removed from the table in Annex I to Regulation (EC) No 2505/96.

(4) In view of the many changes to be made, clarity requires Annex I to Regulation (EC) No 2505/96 to be replaced in its entirety.

(5) Regulation (EC) No 2505/96 should therefore be amended accordingly,

(6) [Council should motivate retroactivity if this Regulation enters into force later than 1.1.2007]

HAS ADOPTED THIS REGULATION:

Article 1

Annex I to Regulation (EC) No 2505/96 is replaced by the Annex to this Regulation.

Article2

For the quota period from 1 January to 31 December 2006, in Annex I to Regulation (EC) No 2505/96, the quota amount of tariff quota 09.2981 is fixed at 260.000 units.

Article 3

For the quota period from 1 January to 31 December 2007, in Annex I to Regulation (EC) No 2505/96:

- the quota amount of tariff quota 09.2002 is fixed at 1.000 tonnes,

- the quota amount of tariff quota 09.2030 is fixed at 1.000 tonnes,

- the quota amount of tariff quota 09.2612 is fixed at 1 900 tonnes,

- the quota amount of tariff quota 09.2620 is fixed at 1.000.000 units,

- the quota amount of tariff quota 09.2727 is fixed at 15 000 tonnes.

Article 4

In Annex I to Regulation (EC) No 2505/96, tariff quotas 09.2920, 09.2970., 09.2972 and 09.2977, are inserted with effect from 1 January 2007.

Article 5

Tariff quotas 09.2026, 09.2853, 09.2976 and 09.2981 are closed with effect from 1 January 2007.

Article 6

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

It shall apply from 1 January 2007.

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

Done at Brussels,

For the Council

The President

ANNEX

Order No | Code NC | Taric sub-division | Description | Quota amount | Quota duty (%) | Quota period |

09.2002 | ex 2928 00 90 | 30 | Phenylhydrazine | 1 000 tonnes | 0 % | 1.1.-31.12. |

09.2003 | ex 8543 70 90 | 63 | Voltage controlled frequency generator, consisting of active and passive elements mounted on a printed circuit, contained in a housing whose exterior dimensions do not exceed 30 x 30 mm | 1 400 000 units | 0 % | 1.1.-31.12. |

09.2030 | ex 2926 90 95 | 74 | Chlorothalonil | 1 000 tonnes | 0 % | 1.1.-31.12. |

09.2140 | ex 3824 90 98 | 98 | Mixture of tertiary amines containing by weight: - 2.0-4.0 % of N,N-dimethyl-1-octanamine - 94 % minimum of N,N-dimethyl-1-decanamine - 2 % maximum of N,N-dimethyl-1-dodecanamine and higher | 4 500 tonnes | 0 % | 1.1. – 31.12. |

09.2602 | ex 2921 51 19 | 10 | o-Phenylenediamine | 1 800 tonnes | 0 % | 1.1.-31.12. |

09.2603 | ex 2931 00 95 | 15 | Bis(3-triethoxysilylpropyl)tetrasulfide | 4 500 tonnes | 0 % | 1.1.-31.12. |

09.2604 | ex 3905 30 00 | 10 | Poly(vinyl alcohol) partially acetalized with 5-(4-azido-2-sulfobenzylidene)-3-(formylpropyl)-rhodanine, sodium salt | 100 tonnes | 0 % | 1.1.-31.12. |

09.2610 | ex 2925 29 00 | 20 | (Chloromethylene)dimethylammonium chloride | 100 tonnes | 0 % | 1.1.-31.12. |

09.2611 | ex 2826 19 90 | 10 | Calcium fluoride having a total content of aluminium, magnesium and sodium of 0.25 mg/kg or less, in the form of powder | 55 tonnes | 0 % | 1.1.-31.12. |

09.2612 | ex 2921 59 90 | 30 | 3,3'-dichlorobenzidine dihydrochloride | 1 900 tonnes | 0 % | 1.1.-31.12. |

09.2615 | ex 2934 99 90 | 70 | Ribonucleic acid | 110 tonnes | 0 % | 1.1.-31.12. |

09.2616 | ex 3910 00 00 | 30 | Polydimethylsiloxane with a degree of polymerisation of 2800 monomer units (± 100) | 1 300 tonnes | 0 % | 1.1.-31.12. |

09.2618 | ex 2918 19 85 | 40 | (R)-2-Chloromandelic acid | 100 tonnes | 0 % | 1.1.-31.12. |

09.2619 | ex 2934 99 90 | 71 | 2-Thienylacetonitrile | 80 tonnes | 0 % | 1.1.-31.12. |

09.2620 | ex 8526 91 20 | 20 | Assembly for GPS system having a position determination function | 1 000 000 units | 0 % | 1.1.-31.12. |

09.2624 | 2912 42 00 | Ethylvanillin (3-ethoxy-4-hydroxybenzaldehyde) | 425 tonnes | 0 % | 1.1.-31.12. |

09.2625 | ex 3920 20 21 | 20 | Film of polymers of polypropylene, biaxially oriented, of a thickness of 3,5 μm or more but less than 15 μm, of a width of 490 mm or more but not exceeding 620 mm, for the production of film capacitors (1) | 170 tonnes | 0 % | 1.1.-31.12. |

09.2627 | ex 7011 20 00 | 55 | Glass face-plate with a diagonal measurement of 814.8 mm (±1.5 mm) from the outer edge to the outer edge and having a light transmission of 51.1 % (±2.2 %) by a glass thickness of 12.5 mm | 500 000 units | 0 % | 1.1.-31.12. |

09.2628 | ex 7019 52 00 | 10 | Glass web woven from glass fibre coated in plastic, of a weight of 120 g/m2(±10 g/m2), of a type used in rolling insect screens with fixed frames | 350 000 m2 | 0 % | 1.1.-31.12. |

09.2629 | ex 7616 99 90 | 85 | Aluminium telescopic handle for use in the manufacture of luggage (1) | 240 000 units | 0 % | 1.1.-31.12. |

09.2703 | ex 2825 30 00 | 10 | Vanadium oxides and hydroxides exclusively for use in alloys (1) | 13 000 tonnes | 0 % | 1.1-31.12. |

09.2713 | ex 2008 60 19 ex 2008 60 39 | 10 10 | Sweet cherries, preserved in alcohol, of a diameter not exceeding 19.9 mm, stoned, for use in chocolate products: with a sugar content exceeding 9 % by weight with a sugar content not exceeding 9 % by weight (1) | 2 000 tonnes | 10 % (3) | 1.1-31.12. |

09.2719 | ex 2008 60 19 ex 2008 60 39 | 20 20 | Sour cherries (Prunus cerasus), preserved in alcohol, of a diameter not exceeding 19.9 mm, for use in chocolate products: with a sugar content exceeding 9 % by weight with a sugar content not exceeding 9 % by weight (1) | 2 000 tonnes | 10 % (3) | 1.1.-31.12. |

09.2727 | ex 3902 90 90 | 93 | Synthetic poly-alpha-olefin having a viscosity of at least 38 x 10-6m2 s-1 (38 cetistokes) at 100°C measured using the ASTM D 445 method | 15 000 tonnes | 0 % | 1.1.-31.12. |

09.2799 | ex 7202 49 90 | 10 | Ferro-chromium containing 1.5 % or more but not more than 4 % by weight of carbon and not more than 70 % of chromium | 50 000 tonnes | 0 % | 1.1.-31.12. |

09.2809 | ex 3802 90 00 | 10 | Acid activated montmorillonite, for the manufacture of self-copy paper (1) | 10 000 tonnes | 0 % | 1.1.-31.12. |

09.2829 | ex 3824 90 98 | 19 | Solid extract of the residual, insoluble in aliphatic solvents, obtained during the extraction of rosin from wood, having the following characteristics: a resin acid content not exceeding 30 % by weight, an acid number not exceeding 110 and a melting point of 100°C or more | 1 600 tonnes | 0 % | 1.1.-31.12. |

09.2837 | ex 2903 49 80 | 10 | Bromochloromethane | 600 tonnes | 0 % | 1.1.-31.12. |

09.2841 | ex 2712 90 99 | 10 | Blend of 1-alkenes containing 80 % by weight or more of 1-alkenes of a chain-length of 20 and 22 carbon atoms | 10 000 tonnes | 0 % | 1.1.-31.12. |

09.2849 | ex 0710 80 69 | 10 | Mushrooms of the species Auricularia polytricha (uncooked or cooked by steaming or boiling), frozen, for the manufacture of prepared meals (1) (2) | 700 tonnes | 0 % | 1.1.-31.12. |

09.2851 | ex 2907 12 00 | 10 | O-Cresol having a purity of not less than 98.5 % by weight | 20 000 tonnes | 0 % | 1.1.-31.12. |

09.2882 | ex 2908 99 90 | 20 | 2,4-Dichloro-3-ethyl-6-nitrophenol, powdered | 90 tonnes | 0 % | 1.1.-31.12. |

09.2889 | 3805 10 90 | Sulphate turpentine | 20 000 tonnes | 0 % | 1.1.-31.12. |

09.2904 | ex 8540 11 19 | 95 | Flat screen colour cathode-ray tube with a screen width/height ratio 4/3, a diagonal measurement of the screen of 79 cm or more but not exceeding 81 cm and a curvature radius of 50 m or more | 8 500 units | 0 % | 1.1.-31.12. |

09.2913 | ex 2401 10 41 ex 2401 10 49 ex 2401 10 50 ex 2401 10 70 ex 2401 10 90 ex 2401 20 41 ex 2401 20 49 ex 2401 20 50 ex 2401 20 70 ex 2401 20 90 | 10 10 10 10 10 10 10 10 10 10 | Natural unmanufactured tobacco, whether or not cut in regular size, having a custom value of not less than Euro 450 per 100 kg net weight, for use as binder or wrapper for the manufacture of goods falling within subheading 2402 10 00 (1) | 6 000 tonnes | 0 % | 1.1-31.12. |

09.2914 | ex 3824 90 98 | 26 | Aqueous solution containing not less than 40 % by weight of dry betaine-extract and between 5 % and 30 % by weight of organic or inorganic salts | 38 000 tonnes | 0 % | 1.1.-31.12. |

09.2917 | ex 2930 90 13 | 90 | Cystine | 600 tonnes | 0 % | 1.1.-31.12. |

09.2919 | ex 8708 29 90 | 10 | Folding bellows for the manufacture of articulated buses (1) | 2 600 units | 0 % | 1.1.-31.12. |

09.2920 | ex 2906 19 00 | 30 | Isobornyl cyclohexanol | 450 tonnes | 0 % | 1.1.-31.12. |

09.2933 | ex 2903 69 90 | 30 | 1,3-Dichlorobenzene | 2 600 tonnes | 0 % | 1.1.-31.12. |

09.2935 | 3806 10 10 | Rosin and resin acids obtained from fresh oleoresins | 200 000 tonnes | 0 % | 1.1. - 31.12. |

09.2945 | ex 2940 00 00 | 20 | D-Xylose | 400 tonnes | 0 % | 1.1.-31.12. |

09.2947 | ex 3904 69 90 | 95 | Poly(vinylidene fluoride), in powder form, for the preparation of paint or varnish for coating metal (1) | 1 300 tonnes | 0 % | 1.1.-31.12. |

09.2950 | ex 2905 59 10 | 10 | 2-Chloroethanol, for the manufacture of liquid thioplasts of subheading 4002 99 90 (1) | 8 400 tonnes | 0 % | 1.1.-31.12. |

09.2955 | ex 2932 19 00 | 60 | Flurtamone (ISO) | 300 tonnes | 0 % | 1.1.-31.12. |

09.2970 | ex 8540 11 11 | 95 | Colour cathode-ray tube with a slot mask, equipped with an electron gun and a deflection yoke and with a screen width/height ratio of 4/3 and a diagonal measurement of the screen of 33.5 cm (± 1.6 mm) (1) | 250 000 units | 0 % | 1.1.-30.06. |

09.2972 | 2915 24 00 | Acetic anhydride | 20 000 tonnes | 0 % | 1.1.-31.12.2007 |

09.2975 | ex 2918 30 00 | 10 | Benzophenone-3,3':4,4'-tetracarboxylic dianhydride | 600 tonnes | 0 % | 1.1.-31.12. |

09.2977 | 2926 10 00 | Acrylonitrile | 12 000 tonnes | 0 % | 1.1.-30.06. |

09.2979 | ex 7011 20 00 | 15 | Glass face-plate with a diagonal measurement from the outer edge to the outer edge of 81.5 cm (± 0.2 cm) and having a light transmission of 80 % (± 3 %) by a reference thickness of the glass of 11.43 mm | 800 000 units | 0 % | 1.1.-31.12. |

09.2986 | ex 3824 90 98 | 76 | Mixture of tertiary amines containing: 60 % by weight of dodecyldimethylamine, or more 20 % by weight of dimethyl(tetradecyl)amine, or more 0.5 % by weight of hexadecyldimethylamine, or more, for use in the production of amine oxides (1) | 14 315 tonnes | 0 % | 1.1-31.12 |

09.2992 | ex 3902 30 00 | 93 | Propylene-butylene copolymer, containing by weight not less than 60 % but not more than 68 % of propylene and not less than 32 % but not more than 40 % of butylene, of a melt viscosity not exceeding 3.000 mPa at 190° C, as determined by the ASTM D 3236 method, for use as an adhesive in the manufacture of products falling within subheading 4818 40 (1) | 1 000 tonnes | 0 % | 1.1.-31.12. |

09.2995 | ex 8536 90 85 ex 8538 90 99 | 95 93 | Keypads, comprising a layer of silicone and polycarbonate keytops or wholly of silicone or wholly of polycarbonate, including printed keys, for the manufacture or repair of mobile radio-telephones of subheading 8517 12 00 (1) | 20 000 000 units | 0 % | 1.1.-31.12. |

(1) Entry under this subheading is subject to conditions laid down in the relevant Community provisions (see Articles 291 to 300 of Commission Regulation (EEC) No. 2454/93 - OJ L 253 11.10.1993 p. 71 and subsequent amendments).

(2) However, the tariff quota is not allowed where processing is carried out by retail or catering undertakings.

(3) The specific additional duty is applicable."

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE

1. NAME OF THE PROPOSAL:

Council Regulation amending Regulation (EC) No 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products

2. BUDGET LINES:

Chapter and Article: Chapter 12, Article 120

Amount budgeted for the year 2007: € 15 287 900 000

Amount budgeted for the year 2006: € 12 905 400

3. FINANCIAL IMPACT

( Proposal has no financial implications

x( Proposal has no financial impact on expenditure but has a financial impact on revenue – the effect is as follows:

(€ MILLION TO ONE DECIMAL PLACE)

Budget line | Revenue[2] | 12 month period, starting dd/mm/aaaa | [Year 2007] |

Article 120 | Impact on own resources | 01/01/2006 | - 0.25 |

Article 120 | Impact on own resources | 01/01/2007 | - 3.2 |

4. ANTI-FRAUD MEASURES

Checks on the end-use of some of the products covered by this Council Regulation will be carried out in accordance with Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of the Community Customs Code.

5. OTHER REMARKS

Annex III shows a theoretical increase in revenue of € 5.1 million owing to the closure of a number of quotas unused in recent years or not extended for the next quota period.

ANNEX I

Effective from 01.01.2006:

Description of product | Variation in quota volume (unit/tons) | Variation in estimated price (€ per unit/€ per tonne) | Quota duty (%) (2006 CCT) | Quota duty (%) | Expected variation in the loss of revenue in relation to the previous quota period (in €) |

Lawnmover engines 09.2981 | + 50.000 u (initial volume: 210.000 u) | 250 | 2.7 | 0 | 337.500 |

Total loss of revenue in relation to previous quota period: (337.500 – 84.375) = € 253.125 net. 

 ANNEX II

List of quotas increased

Effective from 01.01.2007:

Description of product | Variation in quota volume (unit/tons) | Variation in estimated price (€ per unit/€ per tonne) | Quota duty (%) (2007 CCT) | Quota duty (%) | Expected variation in the loss of revenue in relation to the previous quota period (in €) |

Phenylhydrazine 09.2002 | + 400 t (initial volume: 600 t) | 3 875 | 6.5 | 0 | 100.750 |

Chlorothalonil 09.2030 | + 700 t (initial volume: 300 t) | 5 920 | 6.5 | 0 | 269.360 |

3,3'-dichlorobenzidine dihydrochloride 09.2612 | + 400 t (initial volume: 1.500 t) | 6 402 | 6.5 | 0 | 166.452 |

GPS assembly 09.2620 | + 500.000 u (initial volume: 500.000 u) | 10.36 | 3.7 | 0 | 191.660 |

Poly-alpha-olefin 09.2727 | + ̈5.000 t (initial volume: 10.000 t) | 3.766 | 6.5 | 0 | 1.223.950 |

Total loss of revenue in relation to previous quota period: (1 952 172 – 488 043) €1 464 129 net. 

 ANNEX III

List of quotas closed or reduced

Effective from 01.01.2007:

Glutathion 09.2853 | - 15 t (initial volume: 15 t) | 270 000 | 0 (initial duty: 6,5) | 0 | - 263 250 |

Lawnmover engines 09.2976 | -2 500 000 u (initial volume: 2 500.000 u) | 63 | 2.7 | 0 | - 4 252 500 |

Lawnmover engines 09.2981 | -260 000 u (initial volume: 260.000 u) | 250 | 2.7 | 0 | - 1 755 000 |

Theoretical total revenue owing to the closure or reduction of quotas compared with the previous quota period: (6 906 330 – 1 726 582) € - 5 179 747 net. 

 ANNEX IV

List of new quotas

Effective from 01.01.2007:

Description of product | Variation in quota volume (unit/tons) | Variation in estimated price (€ per unit/€ per tonne) | Quota duty (%)

(2007 CCT) | Quota duty

(%) | Expected variation in revenue in relation to the previous quota period (in €) | |Isobornyl

09.2920 |450 t | 7 285 |5.5 |0 |180 303 | |Cathode-ray tubes

09.2970 | 250 000 u |16 |14 |0 |560 000 | |Acetic anhydride

09.2972 | 20 000 t |800 |5.5 |0 |880 000 | |Acrylonitrile

09.2977 |12 000 t |900 |6.5 |0 |702 000 | | Total loss of revenue in relation to previous quota period: (2 322 303 – 580 575) € 1 741 727 net.

FRAUD PREVENTION MEASURES

Provisions on the management of tariff quotas include the measures needed to prevent and protect against frauds and irregularities.

[1] OJ J 345, 31.12.1996, p.1. Regulation as last amended by Regulation (EC) No 962/2006 (OJ L 176, 30.6.2006, p.1).

[2] Regarding traditional own resources (agricultural duties, sugar levies, customs duties) the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25% of collection costs.