Proposal for a COUNCIL REGULATION (EC) opening and providing for the administration of a Community tariff quota for rum, tafia and arrack originating in the African, Caribbean and Pacific (ACP) States (second half 1995 and 1996 to 1999) and amending Regulation (EC) No 1989/94 opening and providing for the administration of a Community tariff quota for rum, tafia and arrack originating in the African, Caribbean and Pacific (ACP) States (1994 to 1995)
Date: 1995-06-12
Institutions: European Commission
Subjects: ACP countries, customs regulations, import, liqueur, spirits, tariff quota

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  12.06.1995 
COM(95)  262  final 

95/0145  (ACC) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

opening and providing for the administration of a Community tariff quota 
for rum, tafia and arrack originating 
in the African,  Caribbean and Pacific  (ACP)  States 
(second half 1995 and  1996 to  1999) 
and amending Regulation (EC) No  1989/94 opening and providing for the 
administration of a Community tariff quota for rum, tafia and arrack originating 
in the African, Caribbean and Pacific  (ACP)  States (1994 to  1995) 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

1.  Protocol  No 6,  annexed  to  the  IV  Lomé  Convention,  was  signed  on  15  December 
1989  It  stipulates  that  imports  into the Community  of products  of CN codes  2208 
40  10, 2208 40 90, 2208 90  11 and 2208 90  19 (rum, tafia  and arrack), originating in 
is 
the  ACP  States  are  exempted  from  customs  duties.  This  preferential  treatment 
limited to a quantity set annually by the Community. 

The method  for  calculating  the volume of the quota  is laid  down  in Article 2  of the 
Protocol. 

In view of the characteristics of the market in rum, the quota period runs from 1  July 
to 30 June. 

2.  The  quota  volume  for  the  period  from  1  July  1994 to  30 June 1995  opened  under 
Regulation No  1989/94 should be increased to accommodate both the strong increase 
in the traditional trade flows in rum, tafia  and arrack  between the ACP  State and the 
Community,  and the market  demand  for  these products from the three new  Member 
States.  The increase is in line with the Protocol's normal implementing  arrangements 
and meets the request put forward by the ACP States pursuant to Article 2(c) and (d) 
of the Protocol. 

3.  The quota  volume  for  the  period  from  1  July to  31 December  1995 is equivalent  to 
half the volume for the preceding period increased by 10 000 hi of pure alcohol. 

Accordingly,  preferential  arrangements  should  be  implemented  for  that  period  with 
the opening  of a Community  tariff  quota  for  rum, tafia  and arrack  originating  in the 
ACP States. 

4.  As  regards  the  arrangements  applicable  from  1996,  the  Council,  on  the  basis  of  a 
Commission  report,  has decided  to abolish the quota  system from 1  January  1996 in 
respect  of  "light" ACP rum and to maintain a tariff  quota  for  "traditional"  ACP  rum 
pending full liberalization from 1  January 2000. 

The  volume  for  that  quota  shall  be  58 000  HPA  for  1996,  61 000  HPA  for  1997, 
64 000 HPA for  1998 and 67 000 HPA for  1999. 

5.  This is the purpose of the proposal for a Council regulation annexed hereto. 

Proposal for 

a Council Regulation 0(EC) 

opening and providing for the administration of a Community tariff quota 
for rum, tafia and arrack originating 
in the African, Caribbean and Pacific (ACP) States 
(second half 1995 and 1996 to 1999) 
and amending Regulation (EC) No  1989/94 opening and providing for the 
administration of a Community tariff quota for rum, tafia and arrack originating 
in the African, Caribbean and Pacific (ACP) States (1994 to 1995) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 113 thereof, 

Having regard to the proposal from the Commission, 

Whereas the Fourth ACP-EEC Convention1 entered into force on  1 September  1991; 

Whereas  Protocol 6  thereof  stipulates  that  products  originating  int  he  African, 
Caribbean and Pacific  (ACP) States which fall within CN codes 2208 40  10, 2208 40 
90,  2208 90  11  and  2208  90  19  shall,  until  the  entry  into  force  of  a  common 
organization  of the market  in spirits, be allowed into the Community free of customs 
duties under conditions such as to permit the development of traditional  traffic  flows 
between  the ACP  States and  the Community,  whereas the Community  shall until 31 
December  1995 fix each year the  quantities which may be imported  free  of  customs 
duties; 

"Whereas  Council  Regulation  (EC)  No  1989/942  opened  a  Community  tariff  quota 
(Order  No 09.1605)  for  rum,  tafia  and  arrack  for  the  period  1  July  1994  to 
30 June 1995; 

Whereas  economic  data  currently  available  suggests  that  the  traditional  trade  flow 
between  the  ACP  States  and  the  Community  in  the  rum  sector  has  increased 
significantly  and  could,  during  the  current  period,  attain  levels  higher  than  the 
volumes set by the Regulation  referred  to  above, whereas  accordingly the volume of 
the  quota  opened  by Regulation  (EC)  No  1989/94  should  be  increased  as  provided 
for in Article 2(c) of Protocol No 6 referred to above; 

Whereas,  in view  of the  market  demand from the  three  new  Member  States,  the  quota 
should be adjusted  pursuant to Article 2(d) of the said Protocol; 

Whereas  additional  imports  of  rum  from  ACP  countries  during  the  period  covered  by 
Regulation (EC) No  1989/94 is estimated at 50 000 hi of pure alcohol; 

(l)OJNoL229,  17.8.1991, p. 3. 
(2) OJ No L 200, 3.8.1994, p. 2. 

Whereas pursuant  to Protocol No 6 of the said Convention the volume of the tariff  quota 
for the period from  1  July  1995 to 31 December  1995 will be equivalent to half that of the 
previous year  increased  by  10 000  hi of pure  alcohol,  whereas  the volume  of the  annual 
tariff  quota for the period from  1  July  1994 to 30 June  1995 was set at 294 827 hi of pure 
alcohol, whereas  10 000 hi of pure alcohol  should be added to  half of that volume for  the 
second half of 1995; 

Whereas pursuant to the said Protocol, as regards the arrangements applicable from  1996, 
the  Council,  on  the  basis  of  a  report  from  the  Commission,  has  decided  to  abolish  the 
quota  system  in respect  of "light" ACP rum  from  1  January  1996 and  to  maintain  a tariff 
quota for  "traditional" ACP rum pending full liberalization on  1  January 2000; whereas the 
volume  of the  tariff  quota  shall  be  set  at  58 800 HPA  for  1996,  61 000 HPA  for  1997, 
64 000 HPA for  1998 and 67 00 HPA for  1999; 

Whereas  for  these reasons  the appropriate  definition  of  "traditional"  ACP rum  should  be 
given;  whereas  to  this  end  the  general  definition  of  rum  given  in  Council  Regulation 
(EEC)  No  1576/893,  which  stipulates  that  traditional  rum  is  characterized  by  a  high 
content of volatile substances other than ethyl and methyl alcohol; 

Whereas  equal  and  continuous  access  to  the  said  quota  should  be  ensured  for  all 
Community importers and the rates laid down for the quota should be applied  consistently 
to  all  imports  of  the  products  in  question  into  all  the  Member  States  until  the  quota  is 
exhausted,  whereas  the  decision  for  the  opening  of  tariff  quotas  in  fulfilment  of  its 
international  obligations  should  be  taken  by  the  Community;  whereas,  to  ensure  the 
efficient  common  administration  of  these  quotas,  however,  there  is  no  obstacle  to 
authorizing  the Member  States to  draw from the  quota  volumes  the  necessary  quantities 
corresponding  to  actual  imports;  whereas,  however,  this  method  of  administration 
requires close cooperation between the Member  States and the Commission  and the latter 
must, in particular, be able to monitor the rate at which the quotas are used up and  inform 
the Member States accordingly; 

Whereas  measures  should  be  laid  down  to  ensure  that  Protocol 6  is implemented  under 
conditions  such as to permit the development  of traditional  trade flows between the ACP 
States and the Community, and between the Member States, 

HAS ADOPTED THIS REGULATION. 

(3)OJNoL 160, 12.6.1989. p. 1 

3 

Article 1 

The  table  given  under  Article  1 of  Regulation  (EC)  No  1989/94  (Order  No 09.1605)  is 
replaced by the following table: 

Order  No 

CN  code 

Description 

Quota  duty 

Quota 
volume  (in 
hi of  pure 
alcohol) 

09.1605 

2208  40  10 
2208  40  90 
2208  90  11 
2208  90  19 

Rum,  tafia  and  arrack 

294  827 

Free 

Article 2 

From  1  July  1995  to  31 December  1995  the  following  products  originating  in  the  ACP 
States shall be imported  into the Community free of customs duty within the limits of the 
relevant Community tariff quota shown below: 

Order  No 

CN  code 

Description 

Quota  duty 

Quota 
volume  (in 
hi  of  pure 
alcohol) 

09.1605 

2208  40  10 
2208  40  90 
2208  90  11 
2208  90  19 

Rum,  tafia  and  arrack 

157  414 

Free 

Article 3 

The following products originating in ACP States shall be imported free of customs duties 
for the periods and within the limits of the Community tariff  quotas shown next to each of 
them. 

Order 
No 

CN code 

Taric 
sub 
divi 
sions 

09.1617 

ex2208 40  10 
ex2208 40 90 

*10 
*10 

Description 

Period 

Rum  with  a content  of  volatile 
substances other  than  ethyl  and 
methyl  alcohol  equal  to or  exceeding 
225  grams  per  hectolitre  of  pure 
alcohol  with  a  10% tolerance 

1.1.96-31.12.96 
1.1.97-31.12.97 
1.1.98-31.12.98 
1.1.99-31.12.99 

Quota 
duty 

Free 

Quota 
volume 
(in hi of 
pure 
alcohol) 

58.000 
61.000 
64.000 
67.000 

M 

Article 4 

The tariff quotas referred  to in Articles 2 and 3 shall be administered  by the Commission , 
which may take all administrative measures to ensure the effective  administration thereof. 

1.  The provisions required to implement Article 3, and in particular: 

Article 5 

(a)  the  technical  amendments  and  adjustments  which  may  be  needed  as  a  result  of 

amendments to the Combined Nomenclature and the Taric codes, 

(b)  the  adjustments  required  as  a  result  of  the  conclusion  of  protocols  or  exchanges  of 
letters  between  the  Community  and  the  ACP  States  concerned  in the  framework  of 
the Convention referred to herein 

shall be adopted in accordance with the procedure laid down in Article 6(2). 

Article 6 

1.  The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  established  by 

Article 247 of Regulation (EEC) No 2913/924. 

2.  The  representative  of  the  Commission  shall  submit  to  the  committee  a  draft  of  the 
measures to be taken.  The committee  shall deliver  its opinion  on the  draft  within  a time 
limit  which  the  chairman  may  lay  down  according  to  the  urgency  of  the  matter.  The 
opinion shall be delivered by the majority  laid down in Article  148(2) of the Treaty  in the 
case  of  decisions  which  the  Council  is  required  to  adopt  on  a  proposal  from  the 
Commission.  The votes of the representatives of the Member  States within the committee 
shall be weighted in the manner set out in that Article.  The chairman shall not vote. 

The Commission  shall adopt  measures which  shall apply immediately.  However,  if these 
measures  are  not  in  accordance  with  the  opinion  of  the  committee,  they  shall  be 
communicated by the Commission to the Council forthwith.  In that event: 

the Commission  shall defer  application of the measures which it has decided upon  for 
three months from the date of such communication, 

The Council,  acting  by  a qualified  majority,  may take  a different  decision  within  the 
lime limit referred  to in the previous indent. 

3.  The  committee  may  examine  any  issue  in  connection  with  the  implementation  of  this 
Regulation  put  forward  by its chairman  either  on his own initiative or  at the  request  of a 
Member State. 

(4) OJ No L 302.  19.10.1992, p. 1 

< 

Article 7 

If  an  impoitu  presents  in  a  Member  Stale  a  declaration  of  cntiy  lor  lice  circulation  togclhci 
with  a  request  for  preferential  treatment  for  a  product  referred  to  in  Articles  2  and  3  and  the 
declaration  is  accepted  by  the  customs  authorities,  the  Member  State  concerned  shall  inform 
the  Commission  and  iliaw  an  amount  coiiesponding  to  these  lequiienients  ftom  the  quota 
volume 

Requests  to  draw  from  the  quota,  indicating  the  date  of  acceptance  of  the  said  declarations, 
must  be transmitted  to  the Commission  without  delay. 

Drawings  shall  be  granted  by  the  Commission  by  reference  to  the  date  of  acceptance  by  the 
customs  authorities  of  the  Member  State  concerned,  of  the  declarations  of  entry  for  free 
cii< illation,  provided  the  lesiduul  balance  so  pennitN 

If a Member  State  does  not  use  the  quantities  drawn,  it  shall  return  them  to  the  quota  as  soon 
as possible. 

If  the  quantities  requested  are  greater  than  the  available  balance  of  the  quota  volume, 
allocation  shall  be  made  on  a  pro  rata  basis  The  Member  Stales  shall  be  informed  by  the 
Commission  of the drawings  granted. 

Article 8 

Each  Member  State  shall  ensure  that  importers  of  the  products  concerned  have  equal  and 
continuous  access to the quota  as long as the residual  balance  so permits. 

AiticleV 

The Member  States  and  the  Commission  shall  cooperate  closely  to  ensure  that  this  Regulation 
is complied  with 

Article  10 

Council  Regulation  (EEC)  No  3705/90  of  18  December  1990  on  the  safeguard  measures 
provided  for  in  the  Fourth  ACP-EEC  Convention5  shall  apply to  the  products  covered  by  this 
Regulation. 

Article  11 

I his  Regulation  shall  entei  into  loi ce  on  the  day  following  that  ol  its  publication  in  the  Official 
Journal  of the  European  Communities. 

It  shall  apply  from  1 July  1995  with  the  exception  of  Article  1 which  shall  apply  from  1 July 
l"''l  ami  Aitkle  \  which  shall  apply  liom  I  lanuaiy  I W, 

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

Done  at  Brussels, 

For  the  Council 
The  President 

(5) OJ  No  L 358,  21.12.1990,  p.  4. 

C 

1. 

2. 

3. 

4. 

5. 

FINANCIAL  STATEMENT 

Budget heading involved: Chapter  12 Article 120 

Legal basis: Article  113 of the Treaty 

Title  of  the  tariff  measure:  Proposal  for  a  Council  Regulation  opening  and 
providing  for  the  administration  of a Community  tariff  quota  for  rum, tafia  and 
arrack  originating  in the  African,  Caribbean  and Pacific  (ACP) States  (2nd half 
1995 and 1996 to  1999) and amending Regulation  (EC) No 1989/94 opening and 
providing  for  the administration  of a Community  tariff  quota  for  rum, tafia  and 
arrack  originating  in the  African,  Caribbean  and  Pacific  (ACP) States  (1994 to 
1995). 

Objective: Fulfilment  of contractual obligation (Lomé IV Convention) 

Method of calculation: 

CN codes: 2208 40 10, 2208 40 90, 2208 90 11, 2208 90 19 
Quota volume.  50 000 HPA (increase for the period  1.7.94 to 30.6.95) 
157 414 HPA (period  1.7.95 to 30.6.95) 

CN codes: ex 2208 40 10, ex 2208 40 90 
Quota volume: 250 000 HPA (period  1.1.96 to 31.12.99) 

Duties applicable,  exemption 
CCT duties: 

- 1  Ecu/% vol/hl +5 Ecu/hi (<2 1) 
-  1  Ecu/% vol/hl (>2 1) 

6. 

Loss of revenue: 

Estimate:  137 224 hi in containers holding 2 litres or less 

320 190 hi in containers holding more than 2 litres 

Losses would total  ECU 46 427 520 (period up to 31.12.1999). For the preceding period 
(1.7.1994 to 30.6.95) losses totalled ECU 23 891  935. 

? 

ISSN 0254-1475 

COM(95) 262 final 

DOCUMENTS 

EN 

02  03  11 

Catalogue number  :  CB-CO-95-300-EN-C 

ISBN 92-77-90603-0 

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