WRITTEN QUESTION P-1480/97 by Honório Novo (GUE/NGL) to the Commission (24 April 1997)

Subject: Regulation allowing additional imports from Vietnam

A regulation approved a few days ago by the Textiles Committee would allow imports of 'additional quantities' of various types of textile product from Vietnam.

It is easy to conclude from a cursory reading of the regulation that the 'additional quantities' are the result of incorrectly issued export licences. The amounts in question are considerable, in some cases amounting to 600% of the quantities originally envisaged. Moreover, the regulation provides for the 'additional quantities' to be counted as part of the quotas for subsequent years, something which in fact appears to be permitted only in the amendments to Regulation 3030/93 on which the EP is still drafting its opinion and which have not yet been adopted by the Council.

Is the Commission prepared to adopt a regulation which is designed purely to cover situations that are unclear and not in accordance with legislation or previously agreed and established rules? Bearing in mind the figures given above, does it consider the 'additional quantities' to be insignificant?

Does it regard it as politically justifiable for it to adopt a regulation based - albeit partially - on legislative material which is still under discussion in Parliament and has not yet been ratified by the Council?

Answer given by Sir Leon Brittan on behalf of the Commission (22 May 1997)

The text to which the Honourable Member refers was, when the Question was tabled, a draft Commission Regulation which had received a favourable opinion by qualified majority from the Textiles Committee but which had not yet been adopted by the Commission. It was adopted on 6 May 1997 (Regulation (EC) No 821/97) ((OJ L 117, 7.5.1997. )).

The Regulation is based on Article 8 of Regulation (EEC) No 3030/93 ((OJ L 275, 8.11.1993. )) on common rules for imports of certain textile products from third countries which allows the Commission to grant additional quantities in particular circumstances. In the case in question, the Commission observed at the beginning of 1997 that, for four categories of textile products originating in Vietnam, export licences continued to be presented for quantities exceeding the available quota. For categories 7 (blouses), 21 (anoraks), 26 (dresses) and 28 (trousers), the excess quantities amount respectively to 1.2%, 0.4%, 11.7% and 12.1% of the quotas.

Following an investigation in collaboration with the Vietnamese authorities, it would appear that a number of export licences issued by Vietnam in 1996 for products falling within the above categories and already imported into the Community had in all likelihood been falsified since they were made out for quantities exceeding those initially authorized by the Vietnamese authorities.

The result of the presumed fraud, which occurred during quota year 1996, was that bona fide importers in possession of valid export documents found themselves unable at the end of the year to import goods which in turn were blocked at the port of arrival since no import licence could be obtained.

Investigations are in hand both in the Community and in Vietnam in an attempt to determine the reasons and the parties responsible for the different quantities shown on the export licences. Pending the conclusion of these enquiries, it has been necessary to work out how to release those goods held up by the customs so as not to unduly penalize bona fide importers and, to this end, the Commission has verified the export licences in respect of the blocked goods. Resolving this problem was the purpose of the draft Regulation presented to the Textiles Committee.

It should be stressed that Article 8, in the version in force at the time the draft Regulation was prepared, does not allow for the granting of additional quantities to be offset by equivalent deductions from other category quotas or for other quota years. However, Vietnam has undertaken to take account of these additional quantities in the administration of its exports in 1997 and to establish a computer link with the Commission's electronic system of licence management, which should prevent a recurrence of this situation in the future.

The Commission has accordingly done nothing to anticipate the application of the amendment of Article 8 of Regulation (EEC) No 3030/93 proposed to the Council, on which matter an answer was previously given to Written Question P-218/97 by the Honourable Member ((OJ C 217, 17.7.1997, p. 128. )).