opening and providing for the management of autonomous Union tariff quotas for certain fishery products for the period 2016 to 2018

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

The EU supply of certain fishery products largely relies on imports. In the last 15 years the EU has become more dependent on imports to meet its consumption of fishery products: the EU production covers only 44% of the EU needs in fisheries and aquaculture products. The main purpose of the autonomous trade measures for fishery and aquaculture products is to enable the EU fish processing industry to import third countries' raw materials under reduced or duty-free duties for further processing.

2.RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

EU processors and a number of EU Member States have requested the continuation of autonomous tariff quotas (ATQs) for fishery products in order to guarantee the supply of the EU fish processing industry.

Consultations with EU producers, EU processors and Member States were carried out in December 2014 and January 2015 through a questionnaire sent by the Commission.

An external study has been commissioned in August 2014 to assess the results of the Regulation (EC) 1220/2012 for the 2013-2015 period and to verify that objectives were met, taking into account the global context of supply of the EU processing industry. The report includes a retrospective evaluation as well as a prospective evaluation envisaging a possible way forward for the future ATQ regulation covering the 2016-2018 period.

The results of the study confirm in general terms that the ATQ scheme is relevant to support the EU processing industry by providing the sector with the opportunity to source supply at cheaper prices. It is also consistent. It does not have any detectable negative impacts on the EU production sector as most of the species covered by the regulation are not produced in sufficient quantities in the EU, or are not produced at all. Overall, the ATQ scheme is considered to be effective and efficient. The competitiveness of the EU fish processing industry is ensured, without harming EU producers. The ATQ regulation also support growth and maintain employment in the sector while providing to consumers stable supply at reasonable price. Every EUR 1 custom duty foregone generates between EUR 2.5 and EUR 3 value-added by the industry.

The study does not identify specific problem in the 3 years duration set by the regulation. It is a compromise between certainty and the need to revise the regulation to adapt to changing supply conditions.

The main impact of the current Regulation is the loss of revenue for the EU budget which in turn translates into duty preferences and competitive raw material for the EU processors of fishery products. Autonomous tariff quotas of fishery and aquaculture products represent a maximum loss of revenue for the EU budget of roughly € 185.5 million per year (average on the three years period).

3.LEGAL ELEMENTS OF THE PROPOSAL

Legal basis

Article 31 of the Treaty on the Functioning of the European Union.

Subsidiarity principle

Common Customs Tariff duties fall under the exclusive competence of the Union. The subsidiarity principle therefore does no apply for those provisions.

Proportionality principle

The proposal complies with the principle of proportionality for the following reason: the Customs Union is a common policy and should therefore be implemented through a Regulation adopted by the Council.

4.BUDGETARY IMPLICATION

See the financial statement below.