Council Regulation (EC) No 1804/98 of 14 August 1998 establishing an autonomous duty applicable for residues from the manufacture of starch from maize falling within CN codes 2303 10 19 and 2309 90 20 and introducing a tariff rate quota on imports of residues from the manufacture of starch from maize (corn gluten feed) falling within CN codes 2303 10 19 and 2309 90 20 originating in the United States of America
Date: 1998-08-20
Institutions: Council of the European Union
Subjects: CCT duties, United States, import, maize, starch, tariff quota

20. 8. 98

EN

Official Journal of the European Communities

L 233/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1804/98

of 14 August 1998

establishing an autonomous duty applicable for residues from the manufacture
of starch from maize falling within CN codes 2303 10 19 and 2309 90 20 and
introducing a tariff rate quota on imports of residues from the manufacture of
starch from maize (corn gluten feed) falling within CN codes 2303 10 19 and
2309 90 20 originating in the United States of America

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 imposition of a tariff quota at a duty rate of
ECU 5/MT on 2 730 000 tonnes of residues from the
manufacture of starch from maize (corn gluten feed)
falling within CN codes 2303 10 19 and 2309 90 20
originating in the United States of America imported
each year into the Community represents a substantially
equivalent trade concession; whereas an autonomous duty
should be established to ensure respect of the quota;

Whereas the United States of America has decided to
impose a safeguard measure in the form of a quantitative
restriction on imports of wheat gluten from, inter alia,
the Community as from 1 June 1998;

Whereas the Community provided written notice of such
suspension to the Council for Trade in Goods on 29 July
1998; whereas the Council for Trade in Goods has not
disagreed within the 30 days provided for under Article
8(2) of the WTO Agreement on Safeguards;

Whereas this measure is causing considerable injury to
the Community producers concerned and calls into ques-
tion the balance of concessions and obligations resulting
from the WTO Agreements; whereas the quota will
significantly limit Community exports of wheat gluten to
the United States of America with a loss to Community
exports of at least ECU 13,65 million per year;

Whereas the consultations which were held between the
United States of America and the Community in accord-
ance with Article 12 of the WTO Agreement on Safe-
guards did not reach any satisfactory solution;

Whereas, in accordance with Article 8(2) of the WTO
Agreement on Safeguards, any affected exporting Member
has the right to suspend the application of substantially
equivalent concessions or other obligations, provided the
Council for Trade in Goods does not disapprove;

Whereas the suspension of substantially equivalent trade
concessions should be applied with respect to the same
sector; whereas residues from the manufacture of starch
from maize (corn gluten feed) falling within CN codes
2303 10 19 and 2309 90 20 are agricultural products;

Whereas this Regulation is without prejudice to the
compatibility of the safeguard measure applied by the
United States of America with the WTO Agreements;
whereas in accordance with Articles 8(2) and 8(3) of the
WTO Agreement on Safeguards, the suspension should
apply from 1 June 2001 until the United States of Ameri-
ca’s safeguard measure is lifted; whereas the suspension
should apply immediately on a decision from the WTO
the United States of
Dispute Settlement Body that
America’s safeguard action is incompatible with the WTO
Agreements;

Whereas this Regulation should be reviewed in the light
of developments, notably as regards the market for wheat
gluten in the United States of America;

Whereas detailed rules for the application of this Regula-
tion should be adopted pursuant to Article 23 of Council
Regulation (EEC) No 1766/92 of 30 June 1992 on the
common organisation of the market in cereals (1),

(1) OJ L 181, 1. 7. 1992, p. 21. Regulation as last amended by
Commission Regulation (EC) No 923/96 (OJ L 126, 24. 5.
1996, p. 37).

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Official Journal of the European Communities

20. 8. 98

HAS ADOPTED THIS REGULATION:

Article 1

The autonomous duty applicable for residues from
1.
the manufacture of starch from maize falling within CN
codes 2303 10 19 and 2309 90 20 is set at ECU 50/mt.

2. Residues from the manufacture of starch from maize
(corn gluten feed) falling within CN codes 2303 10 19
and 2309 90 20 originating in the United States of
America shall not be subject to the conventional duty
rate.

Article 2

1. An annual tariff quota, from 1 June to 31 May, for
the import of the 2 730 000 tonnes of residues from the
manufacture of starch from maize (corn gluten feed)
falling within CN codes 2303 10 19 and 2309 90 20
originating in the United States of America is hereby
opened.

The rate of duty applicable within the quota shall be

2.
ECU 5/mt.

Article 3

The free circulation of the products referred to in Article
1 may be subject to presentation of proof of their origin.

Article 4

The Commission shall, in accordance with the procedure
the rules necessary to
referred to in Article 5, adopt
suspend the rate of duty to ‘free' as soon as the 2 730 000

tonnes of residues from the manufacture of starch from
maize (corn gluten feed)
falling within CN codes
2303 10 19 and 2309 90 20 originating in the United
States of America are imported.

Article 5

The Commission shall adopt any necessary detailed rules
for the application of this Regulation in accordance with
the procedure laid down in Article 23 of Regulation
(EEC) No 1766/92.

Article 6

Any necessary modifications to this Regulation shall be
adopted in accordance with the procedure referred to in
Article 5.

Article 7

This Regulation shall enter into force on the third
1.
day following its publication in the Official Journal of
the European Communities.

2.

This Regulation shall be applicable from:

(cid:190) 1 June 2001, or
(cid:190) five days after the date of a decision from the WTO
Dispute Settlement Body that the safeguard measure
imposed by the United States of America is incompat-
ible with the WTO Agreements,

is earlier, and until

whichever
the United States of
America’s safeguard measure is lifted. In this latter event,
the Commission shall publish in the Official Journal of
the European Communities a notice giving the date of
the decision of the WTO Dispute Settlement Body.

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

Done at Brussels, 14 August 1998.

For the Council

The President

W. SCH(cid:154)SSEL