CŒfVlISSION OF THE EUROPEAN CCMVIIJNITIES 
C0M(92) 288 final 
Brussels,20 July 1992 
Proposal for a 
CQUNCIL REGULATION (EEC) 
establlshlng a Conmunlty procedure for 
admlnlsterlng quantitatlve quotas 
(presented by the Commission) 
EXPLAHATORY UEUORAHDUU 
1. Under the provlslons currently In force (Council Regulatlon (EEC) Ho 1023/70 of 25 Uay 1970), 
Import and export quantltatlve quotas Imposed by the Communlty are, as a rule, admlnlstered 
by each Uember State after belng allocated as natlonal shares. Such a system leads to a 
certaln compartmentalIzatlon of the market for the products concerned and may Involve 
controls at the Internal frontlers of the Communlty. 
2. The Slngle European Act, by Insertlng Artlcle 8a In the Treaty, provlded for the creatlon of 
the Internal market by 1 January 1993. Thls market "shall comprlse an area wlthout Internal 
frontlers' In whlch In partlcular the free movement of goods Is ensured. Retalnlng the 
procedure for admlnlsterlng the quotas as lald down In Regulatlon (EEC) Ho 1023/70 would glve 
rlse to dlfflcultles In achlevlng thls objectlve. A new system for admlnlsterlng the 
quantltatlve quotas, based on the prlnclple of a unlform common commerclal pollcy, should 
therefore be establlshed taklng Into account the guldellnes set by the Court of Justlce In 
Case 51/87. 
3. From an operatlonal standpolnt, under such a system quotas would be admlnlstered on communlty 
level partlculary the crlterla for allocatlon. To thls end, the attached draft provldes for 
the posslblllty of chooslng between several methods, dependlng on market condltlons In the 
Communlty, the nature of the products, the speclflc features of the suppller countrles and 
the Communlty's Internatlonal obllgatlons, In partlcular those whlch undertake to allow for 
tradltlonal trade flows. 
4. Thus, admlnlstratlon of the quantltatlve quotas centers on the examlnatlon at Communlty level 
of Import appllcatlons wlth reference to the method selected, and on the Identlflcatlon of 
quantltatlve crlterla on the basls of whlch the Uember States Issue documents to economlc 
operators. Speclal attentlon Is devoted to the question of how to ensure optlmum use of 
quotas through provlslons Intended to prevent the "sterllIzatlon" of Import or export 
documents. 
5. Lastly, the annexed draft takes Into account the need to set up a Commlttee to ensure close 
and effectlve cooperatlon between the Uember States and the Commlsslon when Implementlng the 
new system. 
6. In vlew of the extent of the amendments required, the annexed draft proposes to recast the 
exlstlng rules, repeallng Regulatlon (EEC) Ho 1023/70 (and Regulatlon (EEC) Ho 1024/70 which 
had extended the appllcablllty of Regulatlon (EEC) Ho 1023/70 to the French overseas 
departments). 
4*u 
Proposal for a 
Council Regulation (EEC) No 
of 
establishing a Community procedure for 
administerIng quantitative quotas 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 113 thereof; 
Having regard to the proposal from the Commission; 
Whereas Council Regulation (EEC) No 1023/70 of 25 May 19701 
established a common procedure for administering quantitative quotas 
based on the allocation of quotas among the Member States, which might 
entail the compartmentalization of the Community market and checks at 
internal frontiers for the products concerned; 
Whereas Article 8 A of the Treaty provides for the creation of an 
internal market by 1 January 1993, comprising "an area without internal 
frontiers" in which the free movement of goods is ensured; 
Whereas a new system for administering quantitative quotas should be 
established in line with this objective, and based on the principle of 
a uniform common commercial policy, in accordance with the guidelines 
laid down by the Court of Justice of the European Communities; 
1 0J L 124, 8.6.1970, p.1 
/]l 
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Whereas there shouid be a choice between several ailocation methods, 
depending on criteria such as the situation of the Community market, 
the type of product concerned, specific characterIstlcs of the supplier 
countries and the Community's international obligations, particularly 
those which undertake to allow for tradltional trade flows; 
Whereas the procedure for administerIng import and export quotas shouid 
be based on a system of licences issued by the Member States in line 
with quantitative criteria established at Community level; 
Whereas the administrative procedure must ensure that all applicants 
have fair access to quotas, and whereas the documents issued must be 
such that they can be used throughout the Community; 
Whereas it is necessary to set up a committee to organize close and 
effective cooperation between the Member States and the Commission for 
the purposes of the implementation of this Regulation; 
Whereas the provisions of this Regulation and those governing its 
implementation shouid not prejudice existing national and Community 
legislation concerning professional secrecy; 
Whereas the products listed in Annex II to the Treaty, together with 
textiles and other products that are subject to specific common import 
arrangements laying down specific provisions as regards quota 
administration shouid be excluded from the scope of this regulation; 
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Whereas the provisions of this Regulation should replace those laid 
down by CounciI Regulation (EEC) No 1023/70; whereas the said 
Regulation should thereforo be repealed; whereas CounciI Regulation 
(EEC) No 1024/70 of 25 May 19701 applied the repealed Regulation to 
the French overseas departments; whereas there is no ionger any need 
for a separate regulation, given that the common provisions laid down 
in the present Regulation apply to Community territory in its entirety, 
as defined in Article 227 of the Treaty; whereas said Regulation No 
1024/70 should therefore also be repealed; 
HAS AD0PTED THIS REGULATION: 
PART I: GENERAL ADMINISTRATIVE PRINCIPLES 
Article 1 
1. This Regulation establishes the rules governing the administration 
of quantitative import and export quotas (hereafter referred to as 
quotas), whether autonomous or conventional, established by the 
Community. 
2. This Regulation shall not apply to products listed in Annex II to 
the EEC Treaty, nor to textiles or other products that are subject 
to specific common import or export arrangements laying down special 
provisions for quota administration. 
1 0J L 124, 8.6.1970, p. 5. 
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ArtlCle z 
t. Quotas 8hall be allocated among applicants as soon as possible aftoi 
they have been opened, as a rule in their entirety and in a single 
tranche. Nevertheiess, it may be decided, in accordance with the 
procedure detaiied in Article 24, to allocate them in several 
tranches. 
2. Quotas shall be administered using one of the following methods, or 
a combination of these methods: 
(a) taking account of traditional trade flows, with part of the 
quota set aside for traditional importers and exporters and 
the remainder allocated to other importers and exporters. 
Traditional importers and exporters are defined as those who 
can provide evidence that they have imported the product or 
products concerned into the Community, or exported it (them) 
from the Community, during a previous period designated the 
reference period; 
The allocation of quotas using this method shall be carried out 
in accordance with the provisions of Articles 7 - 10. 
(b) in the order in which applications are submitted (on a 
"first come, first served" basis), in accordance with the 
provisions of Article 11; 
(c) in proportion to the quantities requested when the 
applications are submitted (using the "simultaneous 
examination" procedure), in accordance with the provisions 
of Article 12; 
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(d) by a tenderlng procedure, in accordance with the provisions 
of Article 13. 
3. The allocation method to be used shall be determined by following 
the procedure laid down in Article 24. 
4. A reserve shall be established, into which any part of a quota or 
tranche of a quota that Is not allocated, assigned or used shall 
automatically be transferred. 
The reserves shall be allocated in time to aliow them to be used 
before the end of the period covered by the quota, in accordance 
with the provisions of Article 14. 
5. Save where other provisions are adopted when the quota is set, the 
release for free circulation or export of products subject to quotas 
shall be conditional on the presentation of an import or export 
licence issued by the Member States in accordance with the 
provisions of this Regulation. 
6. The Member States shall designate the authorities competent to carry 
out implementing measures for which they are responsible under this 
Regulation. They shall notify the Commission of the authority thus 
designated. 
Article 3 
The Commission shall publish a notice announcing the opening of quotas 
in the Official Journal of the European Communities, setting out the 
conditions to be met by licence applications, time limits for 
submitting them, a list of the competent national authorities to which 
they must be sent and the allocation method chosen. 
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Article 4 
1. All Community importers and exporters, no matter where they are 
established in the Community, may submit Iicence applications to the 
competent authority of the Member State of their choice. 
Importers' or exporters' applications shall, where necessary, be 
accompanied by documentary evidence of previous imports or exports 
in Iine with the procedure laid down in Article 24. 
2. Applications for licences shall be submitted in accordance with the 
procedures laid down in Article 24. 
Art icle 5 
The competent authorities in the Member States shall forward 
information concerning the Iicence applications they receive to the 
Commission, within the time limits and in Iine with the conditions set 
out in the procedure laid down in Article 24. This information shall 
comprise the data required for the method chosen and the associated 
allocat ion cr iter ia. 
Art icle 6 
1. The Commission shall, within the time limit specified under the 
procedure laid down in Article 24, simultaneously examine the 
information forwarded by the competent authorities in the Member 
States and determine the quantity of the quota or of its tranches 
for which these authorities must issue import or export licences. 
2. The Commission shall also ensure that that the licences issued are 
for economically significant quantities, having regard to the nature 
of the product concerned. 
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PART II: SPECIFIC RULES FOR THE DIFFERENT ADMINISTRATIVE METHOOS 
Sectlon A: Method based on tradltlonal trade flows 
Article 7 
Where quota allocation takes account of traditional trade flows, the 
portion set aside for traditional importers or exporters, the reference 
period specified in Article 2 (2)(a) and the portion allocated to other 
applicants shall be determined using the procedure laid down in 
Article 24. The allocation shall be carried out in accordance with the 
principles set out in Articles 8 to 10. 
Article 8 
1. Where aggregate applicatlons by traditional importers or exporters 
are equai to or smaller than the quantity set aside for them, the 
applications shall be met in full. 
2. Where aggregate applications by traditional importers or exporters 
exceed the quantity set aside for them, they shall be met on a oro 
rata basis, calculated on the basis of each importer or exporter's 
share of total imports or exports by this group during the reference 
per iod adopted. 
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Article 9 
1. Where aggregate applications by other importers or exporters are 
equal to or smaller than the quantity set aside for them, the 
applications shall be met in full. 
2. Where aggregate applications by this group exceed the quantity set 
aside for them, the said quantity shall be distributed equally among 
the applicants. However, individual importers or exporters applying 
for smaller quantities, i.e. for less than the quantity they would 
receive from such a distribution, shall receive the quantity for 
which they applied, with the remainder being transferred to the 
reserve. 
Article 10 
Where no applications are received from traditional importers or 
exporters, the importers or exporters that do apply shall have access 
to the whole quota or tranche concerned. 
In such cases, the allocation shall be carried out following the 
procedure laid down in Article 9. 
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Section B: Method based on the order 
in which applications are submitted 
Article 11 
1. Where the quota is allocated on a "flrst come, first served" basis, 
licence applications shall be met on the basis of the order in which 
they are submitted to the competent authorities, each importer or 
exporter being assigned the quantities applied for until the quota 
is exhausted, or until the period covered by the quota expires. 
2. Should more than one application be submitted at the same time, 
exceeding the quantity available under the quota concerned, the 
allocation shall be carried out in proportion to the quantities 
applied for. 
3. In establishing the order of applications, they shall be filed by 
the date on which they are submitted. ConsequentIy, all applications 
submitted to a competent authority on the same day shall be deemed 
to have been submitted simultaneously. 
Section C: method alloca^ina ouotas 
In Droportion to the quantities reouested 
Article 12 
1. Where a quota is allocated in proportion to the quantities applied 
for and aggregate applications are equal to or smaller than the 
quota concerned, applications shall be met in full. 
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2. Where aggregate applications exceed the quantity of the quota 
concerned, they shall be met on a pro rata basis, in proportion to 
the quantities applied for. 
Sectlon D: Method based on a tendering procedure 
Article 13 
Where quotas are allocated via a tendering procedure, invitations to 
tender shall be issued in such a way as to spread imports and exports 
throughout the period covered by the quota. Only parties providing 
assurances that they will carry out their obligations, specifically by 
lodging a guarantee securing their offer, shall be permitted to take 
part in the tendering procedure. The successful tenderers shall be 
those whose bids are of greatest benefit to the Community. In some 
cases, no award may be made. 
Tendering procedures shall, within the constraints imposed by quota 
administrat ion, be organized in such a way as to avoid an unfair 
concentration of imports or exports among a small number of large 
operators. 
Sectlon E: Prlnclples governing the allocation of the reserve 
Article 14 
Quantities transferred to the reserve shall be allocated on the basis 
of applications submitted within the period allowed, in I ine with the 
procedure and conditions laid down in Article 24. 
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PART III: RULES CONCERNING IMPORT OR EXPORT LICENCES 
Artlcle 16 
The Commission shall notify the competent authorities in the Member 
States of the quantities for which they Issue licences to the various 
applicants. It shall also inform the other Member States. 
Article 16 
The competent authorities in the Member States shall issue import or 
export licences within ten working days of notification of the 
Commission decision or within the time limit set by the Commission. 
The said authorities shall inform the Commission that import or export 
licences have been issued. 
Article 17 
The issue of licences may be made conditional upon the lodging of a 
securlty, in accordance with the procedure 1aid down in Article 24. 
Article 18 
1. Import or export licences shall authorize the import or export of 
products which are subject to quotas and shall be valid throughout 
the Community, regardless of the place of import or export mentioned 
in the applications by the operators. 
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2. The period of validity of import or export licences to be issued by 
the competent authorities of the Member States shall be established 
In accordance wlth the procedure lald down In Artlcle 24. 
3. The holders of import or export licences may apply to the competent 
authorities to obtain extracts of the licences. 
Such extracts shall have the same iegal effects as the licences from 
which they are derived up to the quantity for which they were 
issued. 
4. Applications for import or export iicences, licences and extracts 
shall be drawn up on forms conforming to a specimen the 
characteristics of which shall be established in accordance with the 
procedure laid down in Article 24. 
Article 19 
Without prejudice to the specific provisions to be adopted in 
accordance with the procedure laid down in Article 24, import or export 
licences and their extracts may not be loaned or transferred, whether 
for a considerat ion or free of charge, by the person in whose name the 
document was issued. 
Article 20 
1. Import or export licences or extracts which are wholly or partly 
unused shall be returned to the competent authorities of the Member 
State of issue within ten working days of their expiry date at the 
latest, except in cases of force maieure. 
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2. Where the issue of import or export licences was conditional upon 
the lodglng of a securlty, the security shall be forfelt where the 
time llmlt referred to above ls not complled wlth, except in caaea 
of force maieure. 
Article 21 
The competent authorities of the Member States shall notify the 
Commission, immediately upon being so informed and in any case no later 
than 20 days after the expiry date of the licences, of the quantities 
of quotas assigned and not used with a view to their being transferred 
to the reserve pursuant to Article 2(4). 
Article 22 
The competent authorities of the Member States shall inform the 
Commission, by the 20th of each month of the quantities of products 
subject to Community quotas which have been imported or exported during 
the preceding month. 
PART IV: FINAL PROVISIONS 
Article 23 
The Commission shall be assisted by a Committee made up of 
representatives of the Member States and chaired by a Commission 
representat ive. 
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Article 24 
1. Where reference is made to the procedure lald down In thla article, 
the representative of the Commission shall put before the Committee 
a draft of the measures to be adopted. The Committee shall give its 
opinion within a time limit set by the chairman with reference to 
the degree of urgency of the matter. The opinion shall be adopted by 
a majority as laid down in Article 148(2) of the Treaty on decisions 
to be adopted by the Councii acting on a proposal from the 
Commission. Where votes are taken within the Committee, the votes of 
the representatives of the Member States shall be weighted as laid 
down in the said Article. The chairman shall not vote. 
2. The Commission shall adopt measures which are immediately 
applicable. However, where the measures do not conform with the 
opinion delivered by the Committee, the Commission shall immediately 
notify the Councii accordingly. 
In this case, the Commission may postpone implementation of the 
measures it has adopted for up to one month following the said 
notification to the Councii. 
3. The Councii, acting by a qualified majority, may, within the time 
limit referred to in the preceding subparagraph, adopt a different 
decision. 
Article 25 
The implementing provisions for this Regulation shall be adopted by the 
Commission in accordance with the procedure laid down in Article 24. 
They shall in particular lay down the detailed procedures governing the 
allocation of the quotas, the information to be transmitted by the 
competent authorities in the Member States and the measures intended to 
ensure compliance with this Regulation. 
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Article 26 
1. The information received by the Council, the Commission or the 
Member States pursuant to this Regulation may not be used for 
purposes other than that for which it was requested. 
2. The Council, the Commission and the Member States, and those acting 
on their behalf shall not disclose information in respect of which a 
duly substantiated request for confidential treatment has been 
lodged, except where express authorization is granted by the party 
providing the information. 
3. This article shall not prevent the Community authorities from 
disclosing information of a general nature, in particular the 
grounds on which decisions are taken pursuant to this Regulation, or 
evidence used by them to Justify their arguments in the event of 
legal proceedings. Such disclosure must take into account the 
legitimat'e interest of the parties concerned in preserving 
commercial confidentiality. 
Article 27 
Council Regulation (EEC) No 1023/70 of 25 May 1970 establishing a 
common procedure for administering quantitative quotas and Council 
Regulation (EEC) No 1024/70 of 25 May 1970 applying to the French 
overseas departments Regulation (EEC) No 1023/70 are hereby repealed. 
References to the repealed Regulations shall be construed as references 
to th is Regulat ion. 
16 
Article 28 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
It shall apply from 1 January 1993. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
ISSN 0254-1475 
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