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

In response to requests from several Member States, the Commission's departments, together with the government experts concerned, considered whether to open, increase and extend autonomous tariff quotas for certain industrial products.

Following the discussion, at a meeting of the Economic Tariff Questions Group, it was concluded that the Member States could approve new quotas, increases or extensions to quotas for the products covered by the proposal for a Regulation, without disturbing the markets for such products.

Hence the attached proposal for a Regulation.

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 [1],

[1] OJ C , , p. .

Whereas:

(1) On 20th December 1996 the Council adopted Regulation (EC) No 2505/96 opening Community tariff quotas for certain agricultural and industrial products [2]. Community demand for the products in question should be met under the most favourable conditions. New Community tariff quotas should therefore be opened at reduced or zero rates of duty for appropriate volumes, and extended in the case of certain existing tariff quotas, while avoiding any disturbance to the markets for these products.

[2] OJ L 345, 31.12.1996, p. 1. Regulation as last amended by Regulation (EC) No 1824/2002 (OJ L 277, 15.10.2002, p.1).

(2) It is no longer in the Community's interest to maintain a Community tariff quota on some of the products and those products should therefore be removed from the table in Annex I of Regulation (EC) No 2505/96.

(3) In view of the large number of amendments coming into effect on 1 January 2003 and in order to clarify matters for the user, the table in the Annex I to the above Regulation should be replaced by the table in the Annex to this Regulation.

(4) The quota amount for certain autonomous Community tariff quotas is insufficient to meet the needs of the Community industry for the current quota period. Consequently, these quota amounts should be increased with effect from 1 January 2002 or 1 July 2002 depending on the starting date of these quotas and therefore to envisage the immediate entry into force of this Regulation.

(5) Tariff quotas for certain iron and steel products which have been covered by the Treaty establishing the European Coal and Steel Community are subject, from the expiry date of that Treaty, to the Treaty establishing the European Community. A separate Annex, comprising these quotas, has consequently to be added to Regulation (EC) No 2505/96.

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

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2505/96 is hereby amended as follows:

1) Article 1(1) is replaced by the following:

"1. The import duties on the goods listed in Annexes I and III shall be suspended at the indicated duty rate for the periods and in the amounts indicated therein."

2) The table in Annex I to Regulation (EC) No 2505/96 is replaced by the table set out in the Annex to this Regulation.

3) Annex II to this Regulation is added as Annex III.

Article 2

In Annex I for the quota period from 1 January to 31 December 2002 Regulation (EC) No 2505/96 is hereby amended as follows:

- Order number 09.2711: the amount of the tariff quota shall is fixed at 375.000 tonnes,

- Order number 09.2837: the amount of the tariff quota shall is fixed at 450 tonnes,

- Order number 09.2959: the amount of the tariff quota shall is fixed at 70.000 tonnes.

Article 3

In Annex I for the quota period from 1 July to 31 December 2002 Regulation (EC) No 2505/96 is hereby amended as follows:

- Order number 09.2902: the amount of the tariff quota shall is fixed at 20.000 units,

- Order number 09.2935: the amount of the tariff quota shall is fixed at 70.000 tonnes.

Article 4

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

It shall apply from 1 January 2003 except for Article 2 which shall apply from 1 January 2002 and Article 3 which shall apply from 1 July 2002.

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

Done at Brussels,

For the Council

The President

ANNEX I

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(a) Control of the use for this special purpose shall be carried out pursuant to the relevant Community provisions.

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

(c) The quantities of goods subject to this quota and released for free circulation as from 1 July 2002, as provided for in Regulation (EC) No 1824/2002, shall be fully counted against this quantity.

(1) The specific additional duty is applicable.

ANNEX II

"ANNEX III

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(a) The above mentioned products must, in addition, comply with the following physical specifications:

a) Products with CN codes ex 7209 16 90 and ex 7209 17 90:

High carbon steel with a carbon content by weight of 0.64% - 0.70% for the production of assembly/conveyor belts with a permissible operating temperature of 400°C. Tensile strength 1200 N/mm2 (+/- 10%). Other elements or properties following special technical specification (HM 1708).

b) Products with CN codes ex 7219 32 10 11/12, ex 7219 33 10 11/12 and ex 7219 34 10 11/12:

"NICRO" stainless steel for the production of assembly/conveyor belts with a permissible operating temperature of 350°C.

Type (i) Tensile strength 1050 N/mm2 (+/- 10%). Chemical composition: maximum carbon content 0.06%, 13% chromium content, 4% nickel content. Other elements or properties following special technical specification (HM 1708).

Type (ii) Tensile strength 1200 N/mm2 (+/- 15%). Chemical composition: maximum carbon content 0.15%, 17% chromium content, 7% nickel content. Other elements or properties following special technical specification (HM 1708).

c) Products with CN codes ex 7219 33 10 13/14/15/16/17/18 and ex 7219 34 10 13/14/15/16/17/18

Stainless steel for the production of assembly/conveyor belts

Type (i) Tensile strength 1200 N/mm2. Chemical composition: 0.1% carbon content, 0.6% silicon content, 1.4% manganese content, 17.5% chromium content, 7.5% nickel content. Other elements or properties following special technical specification (HM 1712).

Type (ii) Tensile strength 1200 N/mm2. Chemical composition: 0.06% carbon content, 0.6% silicon content, 1.4% manganese content, 18.5% chromium content, 8.5% nickel content. Other elements or properties following special technical specification.

Type (iii) Tensile strength 1000 N/mm2. Chemical composition: 0.05% carbon content, 0.6% silicon content, 1.7% manganese content, 17.5% chromium content, 12.5% nickel content, 2.7% molybdenum content. Other elements or properties following special technical specification.

Type (iv) Tensile strength 1080 N/mm2. Chemical composition: maximum carbon content 0.05%, maximum silicon content 1%, 13% chromium content, 4% nickel content, 0.3% titanium content. Other elements or properties following special technical specification (HM 1710).

Type (v) Tensile strength 1150 N/mm2. Chemical composition: maximum carbon content 0.08%, 1.5% silicon content, 14% chromium content, 7% nickel content, 0.7% copper content. Other elements or properties following special technical specification (HM 1701).

Type (vi) Tensile strength 1200 N/mm2. Chemical composition: 0.03% carbon content, 0.6% silicon content, 15.25% chromium content, 4.9% nickel content, 3.25% copper content. Other elements or properties following special technical specification.

Note: the composition of products (a), (b) and (c) (i) to (vi) may vary within the limits of the standards in force relating to analysis."

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ANNEX

A. Effective in 2002:

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Total loss of revenue in the current financial year: + 39.251.082 EUR.

B. Effective from 2003:

Note: this table lists only products from the annex to the Regulation, which have a financial incidence.

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Total loss of revenue in relation to the previous quota period: - 41.823.585 EUR.

Fraud prevention measures

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