Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas

(presented by the Commission)

EXPLANATORY MEMORANDUM

Following the adoption of Council Regulation (EC) No 216/2001 of 29 January 2001 amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas, there have been numerous close contacts with supplier countries and other interested parties. These have produced understandings with the United States and Ecuador on the management of imports until the entry into force of a 'tariff only' system, by 1 January 2006 at the latest. The Commission has since, on 7 May 2001, adopted new detailed rules for the application of Council Regulation (EEC) No 404/93 (Commission Regulation (EC) No 896/2001).

The understandings with the United States and Ecuador provided for application in two stages. It is now time to implement the second stage, which requires an amendment of Regulation (EEC) No 404/93. This comprises the following points:

- a quantity of 100 000 tonnes is to be transferred from quota C to quota B,

- quota C is to be reserved exclusively for the ACP supplier countries.

Moreover, following amendments made to the tariff and statistical nomenclature and to the common customs tariff, the proposed Regulation aims to update the CN codes for products covered by the common organisation of the market in bananas and to correct the CN codes for products to which Articles 17, 18, 19 and 20 of Regulation (EEC) No 404/93 apply.

In addition, in view of amendments to agricultural legislation, the provisions on financing aid to producer organisations laid down in Article 25 of Regulation (EEC) No 404/93

The measures necessary for the implementation of Regulation (EEC) No 404/93 should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission.

2001/0187 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Having regard to the opinion of the European Parliament [2],

[2] OJ C , , p. .

Having regard to the opinion of the Economic and Social Committee [3],

[3] OJ C , , p. .

Whereas:

(1) Following amendments to the tariff and statistical nomenclature and the common customs tariff, the CN codes for products covered by the common organisation of the market in bananas should be updated and the CN codes for products to which Articles 17, 18, 19 and 20 of Council Regulation (EEC) No 404/93 [4] apply should be corrected.

[4] OJ L 47, 25.2.1993, p. 1. Regulation last amended by Regulation (EC) No 216/2001 (OJ L 31, 2.2.2001, p. 2).

(2) There have been numerous close contacts with supplier countries and other interested parties to settle the disputes arising from the import regime established by Regulation (EEC) No 404/93 and to take account of the conclusions of the panel set up under the dispute settlement system of the World Trade Organisation (WTO).

(3) Article 18 of Regulation (EEC) No 404/93 opened an autonomous tariff quota "C" of 850 000 tonnes for all origins, subject to a customs duty of EUR 300 per tonne with a tariff preference of EUR 300 per tonne for imports originating in ACP countries, in addition to the 2 200 000 tonnes bound under the World Trade Organisation and the additional "B" quota of 353 000 tonnes. The quantities relating to the different quotas should be amended to widen access for bananas originating in third countries and at the same time to ensure access for a specific quantity of bananas originating in ACP countries.

(4) In view of amendments made to agricultural legislation and in line with the part-financing of aid to producer organisations provided for in Article 14(2) of Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables [5], as last amended by Regulation (EC) No 2699/2000 [6], it should be laid down that the Community aid to producer organisations provided for in Article 6 of Regulation (EEC) No 404/93 will be financed from the EAGGF Guarantee Section, for all producer organisations that are to be established until 31 December 2006. Since the regions concerned are covered by Objective 1, the same rate of Community contribution should be fixed for this aid as for the aid provided for in Article 14(2) of Regulation (EC) No 2200/96 for Objective 1 regions.

[5] OJ L 297, 21.11.1996, p. 1.

[6] OJ L 311, 12.12.2000, p. 9.

(5) The provisions of Regulation (EEC) No 404/93 relating to the committee procedure should be amended. The measures necessary for the implementation of Regulation (EEC) No 404/93 should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [7],

[7] OJ L 184, 17.7.1999, p. 23.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 404/93 is hereby amended as follows:

(1) Article 1 is replaced by the following:

"Article 1

1. A common organisation of the market in bananas is hereby established.

2. The organisation shall cover the following products:

CN codes // Description

0803 00 19

ex 0803 00 90

ex 0812 90 95

ex 0813 50 99

1106 30 10

ex 2006 00 99

ex 2007 10 99 // Fresh bananas, excluding plantains

Dried bananas, excluding plantains

Bananas provisionally preserved

Mixtures containing dried bananas

Flour, meal and powder of bananas

Bananas preserved in sugar

Homogenised preparations of bananas

ex 2007 99 39

ex 2007 99 58

ex 2007 99 98 // Jams, jellies, marmalades, purées and pastes of bananas

ex 2008 92 14

ex 2008 92 18

ex 2008 92 34

ex 2008 92 38

ex 2008 92 59

ex 2008 92 74

ex 2008 92 78

ex 2008 92 93

ex 2008 92 96

ex 2008 92 98 // Mixtures containing bananas otherwise prepared or preserved

ex 2008 99 28

ex 2008 99 34

ex 2008 99 37

ex 2008 99 40

ex 2008 99 49

ex 2008 99 68

ex 2008 99 99 // Bananas otherwise prepared or preserved

ex 2009 80 35

ex 2009 80 38

ex 2009 80 79

ex 2009 80 86

ex 2009 80 89

ex 2009 80 99 // Banana juice

ex 2009 90 21

ex 2009 90 29

ex 2009 90 51

ex 2009 90 59

ex 2009 90 94

ex 2009 90 96

ex 2009 90 98 // Banana juice in mixtures

3. The marketing year shall run from 1 January to 31 December."

(2) In Article 16, paragraph 1 is replaced by the following:

"1. This Article and Articles 17, 18, 19 and 20 shall apply to imports of fresh products falling within CN code 0803 00 19 up to the entry into force, no later than 1 January 2006, of the rate of the common customs tariff for those products established under the procedure provided for in Article XXVIII of the General Agreement on Tariffs and Trade."

(3) Article 18 is replaced by the following:

"Article 18

1. Each year from 1 January the following tariff quotas shall be opened:

(a) a tariff quota of 2 200 000 tonnes net weight, called 'quota A';

(b) an additional tariff quota of 453 000 tonnes net weight, called 'quota B';

(c) an autonomous tariff quota of 750 000 tonnes net weight, called 'quota C'.

Tariff quotas A and B shall be open for imports of products originating in all third countries.

Tariff quota C shall be open for imports of products originating in ACP countries.

The Commission may, on the basis of an agreement with World Trade Organisation members with a substantial interest in the supply of bananas, allocate tariff quotas 'A' and 'B' among supplier countries.

2. Imports under tariff quotas 'A' and 'B' and imports of bananas from third countries other than the ACP countries shall be subject to customs duty of EUR 75 per tonne. Imports of products originating in the ACP countries shall be subject to a zero duty.

3. Imports under the C quota shall be subject to a zero duty.

4. A tariff preference of EUR 300 per tonne shall apply to imports originating in ACP countries.

5. The customs duty rates set in this Article shall be converted into national currency at the rates applicable for the products in question for the purposes of the common customs tariff.

6. The additional tariff quota provided for in paragraph 1(b) may be increased if demand in the Community increases as indicated by a balance sheet of production, consumption, imports and exports.

The balance sheet shall be adopted and the tariff quota increased under the procedure set out in Article 27.

7. Where supply of the Community market is subject to exceptional circumstances affecting production or importation, the Commission shall adopt the specific measures necessary under the procedure set out in Article 27.

In such cases the additional tariff quota 'B' may be adjusted on the basis of the balance sheet referred to in paragraph 6. The specific measures may derogate from the rules adopted under Article 19(1). They must not discriminate between third countries.

8. Bananas re-exported from the Community shall not be counted against the corresponding tariff quotas."

(4) Article 25 is replaced by the following:

"Article 25

1. The measures laid down in Articles 12 and 13 shall constitute intervention intended to stabilise the agricultural markets within the meaning of Article 1(2)(b) of Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy [8].

[8] OJ L 160, 26.6.1999, p. 103.

2. Expenditure relating to the aid granted by the Member States in accordance with Article 6 shall be deemed to be intervention to stabilise agricultural markets within the meaning of Article 1(2)(b) of Regulation (EC) No 1258/1999. This expenditure shall be eligible in the case of all producer organisations established until 31 December 2006. It shall be the subject of a Community contribution of 75% of eligible public expenditure.

3. The measures provided for in Article 10 shall be part-financed by the Guidance Section of the EAGGF.

4. Detailed rules for the application of this Article, and in particular a definition of the conditions to be met before the Community financial contribution can be paid, shall be adopted in accordance with the procedure laid down in Article 27."

(5) Article 26 is deleted.

(6) Article 27 is replaced by the following:

"Article 27

1. The Commission shall be assisted by a Management Committee for Bananas (hereinafter referred to as 'the Committee').

2. Where reference is made to this Article, Articles 4 and 7 of Decision 1999/468/EC shall apply.

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be set at one month.

4. The Committee shall adopt its own rules of procedure."

Article 2

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

Point 3 of Article 1 shall apply from 1 January 2002.

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

Done at Brussels,

For the Council

The President

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