[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 16.11.2007

COM(2007) 718 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

1) 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 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 728/2007 (OJ L 166, 28.06.2007). |

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 2008 |

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 the exclusive competence of the Community. The subsidiarity principle does therefore not 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 quotas are approved by the Council acting on a qualified majority on the basis of a Commission proposal. |

BUDGETARY IMPLICATION |

Uncollected customs duties with a total amount of 5.200.000 €/year. |

ADDITIONAL INFORMATION |

Simplification |

The proposal provides for simplification of legislation. |

In the annex to the proposed regulation a consolidated list of autonomous tariff quotas will be published. |

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],

Whereas:

(1) On 20 December 1996, the Council adopted Regulation (EC) No 2505/96.[2] Community demand for the products to which that Regulation applies, should be met under the most favourable conditions. For that purpose from 1 January 2008 certain existing tariff quotas volumes should be increased or reduced and some new Community tariff quotas should be opened at zero rates of duty for appropriate volumes, while avoiding any disturbance of the markets for those products.

(2) The quota volume for two Community tariff quota is insufficient to meet the needs of Community industry for the current quota period ending at 31 December 2007. Consequently those volumes should be increased with effect from 1 January 2007.

(3) It is no longer in the Community interest to continue to grant Community tariff quotas in 2008 for certain products on which duties were suspended in 2007. 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) Since quota periods start on 1 January 2008, this Regulation should apply from the same date and enter into force immediately,

HAS ADOPTED THIS REGULATION:

Article 1

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

Article 2

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

- the quota volume of the tariff quota for order number 09.2603 is fixed at 6.500 tonnes,

- the quota volume of the tariff quota for order number 09.2950 is fixed at 12.000 tonnes.

Article 3

With effect from 1 January 2008 in Annex I to Regulation (EC) No 2505/96:

- the quota volume of the tariff quota for order number 09.2030 is fixed at 1.500 tonnes

- the quota volume of the tariff quota for order number 09.2603 is fixed at 6.500 tonnes

- the quota volume of the tariff quota for order number 09.2624 is fixed at 600 tonnes

- the quota volume of the tariff quota for order number 09.2907 is fixed at 2.500 tonnes

- the quota volume of the tariff quota for order number 09.2914 is fixed at 5.000 tonnes

- the quota volume of the tariff quota for order number 09.2950 is fixed at 12.000 tonnes.

Art icle 4

In Annex I to Regulation (EC) No 2505/96, tariff quotas for order numbers 09.2763, 09.2806, 09.2808; 09.2810, 09.2812, 09.2814, 09.2816 and 09.2818, are inserted with effect from 1 January 2008.

Article 5

Tariff quotas for order numbers 09.2610, 09.2612, 09.2625, 09.2627, 09.2809, 09.2882, 09.2904, 09.2919, 09.2920, 09.2979 and 09.2995 are closed with effect from 1 January 2008.

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 2008.

However, Article 2 shall apply from 1 January 2007.

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

Done at Brussels,

For the Council

The President

ANNEX

"ANNEX I

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 2008: € 16 431 900 000

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

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[3] | 12 month period, starting dd/mm/aaaa | [Year 2007 and 2008] |

Article 120 | Impact on own resources | 01/01/2007 | - 0.1 |

Article 120 | Impact on own resources | 01/01/2008 | - 5.1 |

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

Part III and IV show a theoretical increase in revenue of € 5.1 million owing to the closure of a number of quotas unused in recent years and not extended for the next quota period or reduced in volume.

Part I

List of increased quotas

Article 2

Effective from 1.1.2007:

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

Tretasulfid 09.2603 | + 2.000 t (initial volume: 4.500 t) | 400 | 6.5 | 0 | 52.000 |

Ethanol 09.2950 | + 3.600 t (initial volume: 8.400 t) | 733 | 5.5 | 0 | 145.134 |

Total loss of revenue in relation to previous quota period: (197.134 – 49.283) = € 147.851 net.

Part II

List of new quotas

Article 3

Effective from 1.1.2008:

Dihydrochloride 09.2612 | 0 t (initial volume: 1.900 t) | 6.402 | 6.5 | 0 | - 790.647 |

Film 09.2625 | 0 t (initial volume: 170 t) | 4.950 | 6.5 | 0 | - 54.697 |

Face-plate 09.2627 | 0 u (initial volume: 500.000 u) | 12 | 4 | 0 | - 240.000 |

Montmorillonite 09.2809 | 0 t (initial volume: 10 000 t) | 1.000 | 5.7 | 0 | - 570.000 |

Nitrophenol 09.2882 | 0 t (initial volume: 90 t) | 77.247 | 5.5 | 0 | - 382.372 |

Cathode-ray tube 09.2904 | 0 u (initial volume: 8.500 u) | 667 | 14 | 0 | - 793.730 |

Bellows 09.2919 | 0 u (initial volume: 2.600 u) | 1.300 | 4.5 | 0 | - 152.100 |

Isobornyl 09.2920 | 0 t (initial volume: 450 t) | 7.285 | 5.5 | 0 | - 180.303 |

Face-plate 09.2979 | 0 u (initial volume: 250.000 u) | 52.50 | 4 | 0 | - 525.000 |

Keypads 09.2995 | 0 u (initial volume: 20.000.000 u) | 2.90 | 2.3 | 0 | - 1.334.000 |

Theoretical total revenue owing to the closure or reduction of quotas compared with the previous quota period: (5.211.349 – 1.302.837)= € - 3.908.512 net .

FRAUD PREVE NTION MEASURES

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

[1] OJ C , , p. .

[2] OJ J 345, 31.12.1996, p.1. Regulation as last amended by Regulation (EC) No 728/2007 (OJ L 166, 28.6.2007, p.1).

[3] 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.