WRITTEN QUESTION E-0619/00

by Paul Rübig (PPE-DE) to the Commission

(3 March 2000)

Subject: Rates of reduction for products originating in China

Since the start of the 1990s, the EU has been administering import quotas for various products originating in China, including porcelain, china and earthenware products coming under tariff heading 691110. Invitations to tender for the quotas are issued annually, and the formula for allocation of the quota for each product between traditional and new importers varies from year to year. For 2000 a basis for allocation for earthenware of 75 % of the total quota for traditional importers and 25 % for new importers

was applied. In view of the fact that the volume of applications greatly exceeded the quota, a rate of reduction of 51,54 % was initially set for traditional importers(1) and subsequently corrected to 31,37 %(2).

In recent years the rate of reduction has ranged between 10 and 19 %. The current rate of reduction in respect of applications is therefore causing major problems for Austrian importers. From the point of view of the logistics of purchasing, these companies now have major gaps in semi-finished goods in the low price sector which need to be closed.

What is the reason for the increase in the rate of reduction from 13 % for 1999 to 31 % for 2000?

What is the reason for the correction of the rate of reduction from 51 % to 31 % for 2000?

How is the quota allocated between the 15 EU Member States?

(1) OJ L 268, 16.10.1999.

(2) OJ L 304, 27.11.1999.

Answer given by Mr Lamy on behalf of the Commission

(6 April 2000)

In accordance with the provisions of Council Regulation (EC) No 520/94 establishing a Community procedure for administering quantitative quotas(1), the annual quota distribution for year 2000 was implemented on the basis of Commission Regulation (EC) No 1369/1999 of 25 June 1999(2), which established the administrative procedures for the eventual allocation of the quotas between traditional importers and importers other than traditional importers (newcomers). Article 2 § 2 and § 3 and Annex I and II specify the portions of the total available quotas for allocation to these two groups of importers as 70 % for traditional importers and 30 % for newcomers.

On the basis of the limits established by the above Regulation and following licence applications from importers and submission by the Member States of the relevant figures, the Commission published Regulation (EC) No 2201/1999 of 15 October 1999(3) indicating the increase and reduction rates applicable for the different products under quota. In Annex I of this Regulation the reduction rate applicable to tableware, kitchenware of porcelain or china (HS/CN code 691110) for traditional importers is 51,54 %.

However, due to the fact that the figures submitted by one Member State, for this product only, were found to be inaccurate and greatly distorted the overall picture, the Commission informed all Member States about the error and, having verified the correct figures from that Member State, proceeded with the publication of the required corrigendum amending the reduction rate, for the product concerned, from 51,54 % to 31,37 %(4).

The reduction (or increase) rates as they apply to traditional importers are influenced each year by the chosen reference period of their previous imports and the percentage of the total available quota allocated to them. For the 2000 quota allocation, as compared to the 1999 similar exercise, both factors were different and both influenced negatively the reduction rate applicable to CN code 691110 (the same principle and result applied to all other products under quota).

More specifically the reference imports, as reported, were higher for the 2000 allocation by approximately 18 % (reference period: 1997 or 1998 imports) compared to the 1999 allocation (reference period: 1996 or 1997 imports), increasing the reduction rate, and the percentage of the total quotas allocated to traditional importers was reduced from 75 % in 1999 to 70 % in 2000 for all C/N quota lines of products, further increasing the applicable reduction rate for the 2000 quota year.

As regards the last question, the quota is allocated on a Community-wide basis, not between Member States.

(1) OJ L 66, 10.3.1994.

(2) OJ L 162, 26.6.1999.

(3) OJ L 268, 16.10.1999.

(4) OJ L 304, 27.11.1999.