Commission Regulation (EC) No 786/98 of 14 April 1998 redistributing unused portions of the 1997 quantitative quotas for certain products originating in the People's Republic of China
Date: 1998-04-14
Institutions: European Commission
Subjects: China, import licence, import policy, market protection, originating product

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Official Journal of the European Communities

L 113/17

COMMISSION REGULATION (EC) No 786/98

of 14 April 1998

redistributing unused portions of the 1997 quantitative quotas for certain
products originating in the People’s Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

in the 1997 quota year should be redistributed in 1998,
up to a limit of the amounts set out in Annex I to this
Regulation;

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 520/94 of 7
March 1994 establishing a Community procedure for
administering quantitative quotas (1), as last amended by
Regulation (EC) No 138/96 (2), and in particular Articles
2(5), 14 and 24 thereof,

Whereas Council Regulation (EC) No 519/94 of 7 March
1994 on common rules for imports from certain third
countries and repealing Regulations (EEC) No 1765/82,
(EEC) No 1766/82 and (EEC) No 3420/83 (3), as last
amended by Regulation (EC) No 847/97 (4), introduced
annual quantitative quotas for certain products originating
in the People’s Republic of China listed in Annex II to
that Regulation; whereas the provisions of Regulation (EC)
No 520/94 are applicable to those quotas;

the method based on traditional

Whereas, the different administrative methods provided
for by Regulation (EC) No 520/94 having been con-
sidered,
trade flows
should be adopted; whereas under this method quota
tranches are divided into two portions, one of which is
reserved for traditional importers and the other for other
applicants;

Whereas this has proved to be the best way of ensuring
the continuity of business for the Community importers
concerned and avoiding any disturbance of trade flows;

Whereas quantities redistributed under this Regulation
should be divided using the same criteria as for the alloca-
tion of the 1998 quotas;

Whereas the Commission accordingly adopted Regulation
(EC) No 738/94 (5), as last amended by Regulation (EC)
No 983/96 (6), laying down general rules for the imple-
mentation of Regulation (EC) No 520/94; whereas these
provisions apply to the administration of the above quotas
subject to the provisions of this Regulation;

Whereas the reference period used for the apportionment
of the 1998 quotas, consisting of the year 1995, should
again be applied to the allocation of the share set aside for
traditional
the
normal trend of trade flows for the products in question;
whereas, therefore, traditional importers must prove that
they imported products originating in China subject to
the relevant quotas in the course of 1995;

importers, since it continues to reflect

Whereas,
in accordance with Article 20 of Regulation
(EC) No 520/94, the competent authorities of the Member
States notified the Commission of the quantities of quotas
assigned in 1997 and not used;

Whereas the unused quantities could not be redistributed
in time to be used before the end of the 1997 quota year;

Whereas examination of the data received for each of the
products in question indicates that the quantities not used

(1) OJ L 66, 10. 3. 1994, p. 1.
(2) OJ L 21, 27. 1. 1996, p. 6.
(3) OJ L 67, 10. 3. 1994, p. 89.
(4) OJ L 122, 14. 5. 1997, p. 1.
(5) OJ L 87, 31. 3. 1994, p. 47.
(6) OJ L 131, 1. 6. 1996, p. 47.

Whereas it is necessary to simplify the formalities to be
fulfilled by traditional importers who already hold import
licences issued when the 1998 Community quotas were
allocated; whereas the competent administrative authori-
ties already possess the requisite evidence of 1995 imports
for all traditional importers; whereas the latter need there-
fore only enclose a copy of their previous licences with
their new licence applications;

Whereas measures should be taken to provide the best
conditions for the allocation of that portion of the quota
reserved for non-traditional
importers with a view to
optimum use of quotas; whereas, to this end, it is appro-
priate to provide for that portion to be allocated in
proportion to the quantities requested, on the basis of a
simultaneous examination of import licence applications

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Official Journal of the European Communities

15. 4. 98

actually lodged, and grant access only to importers who
can prove that they obtained and made use of at least
80 % of an import licence for the product in question
during the 1997 quota year and to importers who did not
in question
obtain an import
during the 1997 quota year; whereas the amount that any
non-traditional
should also be
importer may request
restricted to a set volume or value;

licence for the product

Whereas for the purposes of quota allocation, a time limit
must be set for the submission of licence applications by
traditional and other importers;

Whereas with a view to optimum use of quotas, licence
applications for imports of footwear under quotas which
refer to several CN codes must specify the quantities
required for each code;

Whereas the Member States must inform the Commission
of the import licence applications received, in accordance
with the procedure laid down in Article 8 of Regulation
(EC) No 520/94; whereas the information about tradi-
tional importers’ previous imports must be expressed in
the same units as the quota in question; whereas if the
quota is set in ecus, the counter-value of the currency in
which previous imports are expressed must be calculated
in accordance with Article 18 of Council Regulation
(EEC) No 2913/92 of 12 October 1992 establishing the
Community Customs Code (1), as last amended by Regula-
tion (EC) No 82/97 (2);

Whereas in the light of the experience gained in the
management of the quotas, in order to facilitate import
administration formalities to economic operators and in
view of the fact that unused quantities may not be carried
over to the following year more than once, thus the risk
of excessive accumulation of imports appear to be limited,
it is deemed appropriate, without prejudice to the results
of a further analysis which may appear to be warranted in
this respect in the future, to set the expiry date of the
redistribution import licences at 31 December 1998;

Whereas these measures are in accordance with the
opinion of
the administration of
quotas set up under Article 22 of Regulation (EC) No
520/94,

the Committee for

HAS ADOPTED THIS REGULATION:

Article 1

This Regulation lays down specific provisions for the
redistribution in 1998 of portions of
the quantitative
quotas referred to in Annex II to Regulation (EC) No
519/94 which were not used in the 1997 quota year.

The quantities not used in the 1997 quota year shall be
redistributed up to the limit of the volumes or values set
out in Annex I to this Regulation.

Regulation (EC) No 738/94 laying down general rules for
the implementation of Regulation (EC) No 520/94 shall
apply, subject to the specific provisions of this Regulation.

Article 2

1.
The quantitative quotas referred to in Article 1 shall
be allocated using the method based on traditional trade
flows, referred to in Article 2(2)(a) of Regulation (EC) No
520/94.

The portions of each quantitative quota set aside for
2.
traditional importers and other importers are set out in
Annex II to this Regulation.

The portion set aside for non-traditional importers
3.
shall be apportioned using the method based on alloca-
tion in proportion to quantities requested; the volume/
value requested by a single importer may not exceed that
shown in Annex III. Only importers who can prove that
they imported at least 80 % of the volume/value of the
product for which they were granted an import licence
pursuant to Commission Regulations (EC) No 1657/96 (3)
and/or (EC) No 1140/97 (4) and importers who declare
that they did not obtain an import licence pursuant to
Regulations (EC) No 1657/96 and/or (EC) No 1140/97
shall be entitled to apply for import licences.

Article 3

Applications for import licences shall be lodged from the
day following the day of publication of this Regulation in
the Official Journal of the European Communities to 6
May 1998 at 3 p.m., Brussels time, with the competent
authorities listed in Annex I to Regulation (EC) No
738/94.

Article 4

For the purposes of allocating the portion of each
1.
quota set aside for
‘traditional’
traditional
importers shall mean importers who can show that they
have imported goods in the calendar year 1995.

importers,

2.
The evidence referred to in Article 7 of Regulation
(EC) No 520/94 shall relate to the release into free circu-
lation during calendar year 1995 of products originating
in the People’s Republic of China which are covered by
the quota in respect of which the application is made.

(1) OJ L 302, 19. 10. 1992, p. 1.
(2) OJ L 17, 21. 1. 1997, p. 1.

(3) OJ L 210, 20. 8. 1996, p. 12.
(4) OJ L 165, 24. 6. 1997, p. 1.

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Instead of the evidence referred to in the first indent

3.
of Article 7 of Regulation (EC) No 520/94:

— applicants may enclose with their licence applications
documents drawn up and certified by the competent
national authorities on the basis of available customs
information as evidence of the imports of the product
in question during calendar year 1995 carried out by
themselves or, where applicable, by the operator
whose activities they have taken over,

— applicants already holding import licences issued for
1998
under Commission Regulation (EC) No
2021/97 (1), for products covered by the licence appli-
cation may enclose a copy of their previous licences
with their licence applications. In that case they shall
indicate in their licence application the aggregate
value, or where appropriate the aggregate quantity, of
imports of
in question during the
reference period year.

the product

Article 18 of Regulation (EEC) No 2913/92 shall

4.
apply where evidence is expressed in national currencies.

aggregate quantity of import licence applications and, in
the case of applications from traditional importers, of the
volume of previous imports carried out by traditional
importers during the reference year referred to in Article
4(1) of this Regulation.

Article 6

No later than 9 June 1998 the Commission shall adopt
the quantitative criteria to be used by the competent
national authorities for the purpose of meeting importers’
applications.

Article 7

Import licences shall be valid up to 31 December 1998.
The validity shall not be extendable.

Article 8

Article 5

Member States shall inform the Commission no later than
20 May 1998 at 10 a.m., Brussels time, of the number and

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

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

Done at Brussels, 14 April 1998.

For the Commission

Leon BRITTAN

Vice-President

(1) OJ L 284, 16. 10. 1997, p. 42.

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Official Journal of the European Communities

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ANNEX I

Volumes/values of quantities to be redistributed

Product description

HS/CN code

Quantities
redistributed

Footwear falling within HS/CN codes

ex 6402 99 (1)

4 483 572 pairs

6403 51
6403 59

ex 6403 91 (1)
ex 6403 99 (1)

767 358 pairs

1 486 444 pairs

ex 6404 11 (2)

4 111 457 pairs

6404 19 10

9 569 315 pairs

Tableware, kitchenware of porcelain or china falling
within HS/CN code

6911 10

8 780,84 tonnes

Ceramic tableware, kitchenware, other household
articles and toilet articles, other than of porcelain or
china falling within HS/CN code

Toys falling within HS/CN codes

6912 00

5 524,05 tonnes

9503 41 (3)
9503 49 (3)
9503 90 (3)

ECU 272 752 979

(1) Excluding footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in
sporting activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials spe-
cially designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density poly-
mers.

(2) Excluding:

(a) footwear which is designed for a sporting activity and has, or has a provision for the attachment of, spikes, sprigs,

stops, clips, bats or the like, with a non-injected sole;

(b) footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in sporting
activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials specially
designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density
polymers.

(3) Excluding parts and accessories.

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ANNEX II

Allocation of the quotas

Product description

HS/CN code

Portion
reserved for
traditional
importers

Portion reserved
for other
importers

Footwear
HS/CN codes

falling

within

ex 6402 99 (1)

3 586 858 pairs
(80 %)

6403 51
6403 59

613 886 pairs
(80 %)

ex 6403 91 (1)
ex 6403 99 (1)

1 189 155 pairs
(80 %)

ex 6404 11 (2)

3 289 166 pairs
(80 %)

896 714 pairs
(20 %)

153 472 pairs
(20 %)

297 289 pairs
(20 %)

822 291 pairs
(20 %)

Tableware, kitchenware of
porcelain or china falling
within HS/CN code

other

Ceramic tableware, kitchen-
household
ware,
articles and toilet articles,
other than of porcelain or
china falling within HS/CN
code

Toys falling within HS/CN
codes

6404 19 10

7 655 452 pairs
(80 %)

1 913 863 pairs
(20 %)

6911 10

6912 00

7 024,68 tonnes
(80 %)

1 756,17 tonnes
(20 %)

4 419,24 tonnes
(80 %)

1 104,81 tonnes
(20 %)

9503 41 (3)
9503 49 (3)
9503 90 (3)

ECU 204 564 734
(75 %)

ECU 68 188 245
(25 %)

(1) Excluding footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in
sporting activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials spe-
cially designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density poly-
mers.

(2) Excluding:

(a) footwear which is designed for a sporting activity and has, or has a provision for the attachment of, spikes, sprigs,

stops, clips, bats or the like, with a non-injected sole;

(b) footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in sporting
activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials specially
designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density
polymers.

(3) Excluding parts and accessories.

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ANNEX III

Maximum quantity which may be requested by each importer other than traditional

Product description

HS/CN code

Predetermined
maximum quantity

Footwear falling within HS/CN codes

ex 6402 99 (1)

4 000 pairs

6403 51
6403 59

4 000 pairs

ex 6403 91 (1)
ex 6403 99 (1)

4 000 pairs

ex 6404 11 (2)

4 000 pairs

6404 19 10

4 000 pairs

Tableware, kitchenware of porcelain or china falling within
HS/CN code

6911 10

4 tonnes

Ceramic tableware, kitchenware, other household articles and
toilet articles, other than of porcelain or china falling within
HS/CN code

6912 00

4 tonnes

Toys falling within HS/CN codes

9503 41 (3)
9503 49 (3)
9503 90 (3)

ECU 90 000

(1) Excluding footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in
sporting activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials spe-
cially designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density poly-
mers.

(2) Excluding:

(a) footwear which is designed for a sporting activity and has, or has provision for the attachment of, spikes, sprigs, stops,

clips, bats or the like, with a non-injected sole;

(b) footwear involving special technology: shoes which have a cif price per pair of not less than ECU 9 for use in sporting
activities, with a single- or multi-layer moulded sole, not injected, manufactured from synthetic materials specially
designed to absorb the impact of vertical or lateral movements and with technical features such as hermetic pads
containing gas or fluid, mechanical components which absorb or neutralize impact or materials such as low-density
polymers.

(3) Excluding parts and accessories.