Proposal for a COUNCIL REGULATION (EEC) establishing a Community procedure for administering quantitative quotas
Date: 1992-07-20
Institutions: European Commission
Subjects: common commercial policy, customs document, exchange of information, management, quantitative restriction

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 

-  2 -

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; 

-  3 -

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. 

- 4 -

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; 

- 5 -

(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. 

- 6 

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. 

- 7 -

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. 

- 8 -

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. 

- 9 -

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. 

-  10 -

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. 

-  11 -

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. 

-  12 -

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. 

-  13 -

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. 

-  14 -

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. 

-  15 -

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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