Proposal for a Council Regulation on measures in retaliation to the Russian Federation's import ban on fresh eggs for human consumption originating in the European Community
Date: 2000-04-28
Institutions: European Commission
Subjects: Russia, egg, import (EU), import restriction, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 28.04.2000
COM(2000) 255 final

2000/0105 (ACC)

Proposal for a

COUNCIL REGULATION

on measures in retaliation to the Russian Federation’s import ban
on fresh eggs for human consumption originating in the European Community

(presented by the Commission)

1.

2.

3.

4.

5.

6.

EXPLANATORY MEMORANDUM

In May 1996, Finland was informed by the Russian authorities, without any
explanation being given, that the imports of fresh eggs for human consumption
(CN 0407 00 30) into Russia were prohibited.

It was later explained that the ban was applicable to all third countries (erga omnes)
and that it was based on human health protection. Imports into Russia of fresh eggs
originating in the United States have however increased substantially since the
introduction of the ban.

Consultations on the Russian import ban on eggs originating in the Community has
been held at several occasions on the basis of Article 102 of the Partnership and
Cooperation Agreement without any concrete results
(e.g. during the first
Cooperation Council on 27 January 1998; the first Cooperation Committee on
22 April 1998; technical consultations on 15 September 1998; second Cooperation
Committee on 16 December 1998; first Sub-Committee on Agriculture 8-9 February
1999; third Co-operation Committee 8 October 1999). The Commission has also
transmitted Aide-Mémoires on the subject
to the Russian authorities, without
receiving any adequate response.

Despite the agreement made in the framework of
the
Memorandum of Understanding on free deliveries of food products from the
Community to Russia to advance formal consultations on the Russian import ban on
eggs in order to resolve the problem swiftly, no solution has been found.

the negotiations of

Without evidence of human health problems, as referred to in Article 19 of the
Partnership and Cooperation Agreement, the Russian import ban on eggs constitutes
a disguised restriction on trade between the Parties. As such,
it violates the
provisions of Article 15(2) of the aforementioned Agreement, stipulating that goods
originating in the Community shall be imported into Russia free of quantitative
restrictions.

Following the entry into force of the Russian import ban on eggs, the Community’s
operators suffer substantial economic losses due to the fact that they no longer are
able to export any fresh eggs to Russia. In order to protect the Community’s interest,
the Commission proposes that measures shall be taken in retaliation to the Russian
import ban on eggs. Consequently, this Regulation proposes the introduction of
tariffs on sunflower seeds and rape seeds originating in the Russian
import
Federation. The aforementioned products enter
today free of duty into the
Community when imported from third countries. The measure will be applied until
the import ban has been abolished, or until the Commission has received scientific
evidence that
the ban imposed by the Russian Federation on imports of eggs
originating in the Community is justified on health grounds.

7.

The Council is requested to adopt the proposed Regulation.

2

2000/0105 (ACC)

Proposal for a

COUNCIL REGULATION

on measures in retaliation to the Russian Federation’s import ban
on fresh eggs for human consumption originating in the European Community

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

(4)

(5)

The Partnership and Cooperation Agreement between the European Communities and
their Member States, of the one part, and the Russian Federation, of the other part2
lays down as one of the main objectives the promotion of trade and investment and
harmonious economic relations between the Parties.

This aforementioned objective of the agreement is seriously threatened by the Russian
import ban on eggs originating in the Community, introduced in May 1996.

Article 19 of the Partnership and Cooperation Agreement stipulates that
import
prohibitions or restrictions on grounds of the protection on health and life of humans,
animals or plants shall not be precluded. Such prohibitions or restrictions shall not,
however, constitute a means of arbitrary discrimination or a disguised restriction on
trade between the Parties.

The Russian authorities have not been able to provide evidence that imports into
Russia on eggs originating in the Community provoke the need to protect the health
and life of humans, animals or plants. The Russian import ban on eggs can therefore
be considered as a disguised restriction on trade between the Parties. As such, it
violates Article 15(2) of the Partnership and Cooperation Agreement, stipulating that
goods originating in the Community shall be imported into Russia free of quantitative
restrictions.

At the request of the Community, several consultations have been held between the
Parties on the basis of Article 102 of the Partnership and Cooperation Agreement to
discuss the interpretation and implementation of the Agreement, and in particular
Article 19 and 15(2). These consultations have not permitted the Parties find an
adequate solution.

1

2

OJ C …, …, p. .
OJ L 327, 28.11.1997, p. 1.

3

(6)

(7)

(8)

(9)

(10)

As a consequence of the measure taken by the Russian Federation, the Community’s
exports of fresh eggs have been seriously restricted, with substantial economic impact
on the Community operators.

Under the Partnership and Cooperation Agreement with Russia this situation gives
raise to the application of Article 107(2) thereof, stipulating that if any Party considers
that the other Party has failed to fulfil an obligation under the Agreement it may take
appropriate measures. The Community considers that the Russian Federation has
failed to fulfil its obligations with regard to trade in eggs as set out in the Agreement.

The Community considers that an appropriate reaction to the failure by Russia to fulfil
the obligations of the Partnership and Cooperation Agreement
the
Community’s trade interests by increasing the import duties on sunflower seeds and
rape seeds originating in the Russian Federation by 7 per cent. As required in Article
107(2) of the Partnership and Cooperation Agreement with Russia, priority must be
given to those which least disturb the functioning of the Agreement. The counter
measures are proportionate to the negative impact on the Community trade in fresh
eggs caused by the Russian import ban.

is to protect

Before taking the measures, the Commission supplied the Cooperation Council with
all relevant information required for a thorough examination of the situation with a
view to seeking a solution acceptable to the Parties.

this Regulation are
Since the measures necessary for
management measures within the meaning of Article 2 of Council Decision
1999/468/EC of 28 June 1999 laying down the procedures for the exercise of
implementing powers conferred on the Commission3, they should be adopted by use of
the management procedure provided for in Article 4 of that Decision,

the implementation of

HAS ADOPTED THIS REGULATION:

Article 1

A customs duty shall be applied on imports into the Community of products originating in the
Russian Federation as follows:

CN code

1205 00 90

1206 00 91

1206 00 99

Description

Rate of duty (%)

Rape or colza seeds, whether or not broken, other than
for sowing

Sunflower seeds, whether or not broken, not
sowing, shelled in grey and white stripped shell

for

Sunflower seeds, whether or not broken, not
sowing, other

for

7.0

7.0

7.0

3

OJ L 184, 17.7.1999, p. 23.

4

Article 2

The Commission shall repeal the measures set out in Article 1, in accordance with the
procedure laid down in Article 3(2) once the import ban has been abolished or when the
Commission has received scientific evidence that the ban imposed by the Russian Federation
on imports of eggs originating in the Community is justified on health grounds.

Article 3

1.

2.

3.

The Commission shall be assisted by the Management Committee for Cereals
instituted by Article 23 of Council Regulation (EC) No 1766/1992 on the common
organisation of the market in cereals4.

Where reference is made to this paragraph, the management procedure laid down in
Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7(3)
thereof.

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

Article 4

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

It shall not apply to import licences already issued prior to the entry into force of this
Regulation.

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

Done at Brussels,

For the Council
The President

4

OJ L 181, 1.7.1992, p. 21.

5

FINANCIAL STATEMENT

1.

2.

3.

4.

BUDGET HEADING:
Chapter 10

APPROPRIATIONS:
1 102,2 Mio EUR

TITLE:
Council Regulation on measures in retaliation to the Russian Federation’s import ban on fresh eggs for
human consumption originating in the European Community.

LEGAL BASIS:
Article 133 of the Treaty

AIMS:
In order to protect the Community’s interest, the Commission proposes the introduction of import tariffs
on sunflower seeds and rape seeds originated in the Russian Federation, in retaliation to the Russian
import ban on eggs.

5.

FINANCIAL IMPLICATIONS

5.0

5.1

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
NATIONAL
-

OWN RESOURCES OF THE EC

12 MONTH
PERIOD

(EUR million)
--

CURRENT
FINANCIAL
YEAR [2000]
(EUR million)
--

FOLLOWING
FINANCIAL
YEAR [2001]
(EUR million)
--

--

--

--

2002

2003

2004

2005

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

See annex.

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?

6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?

YES

YES

NO

NO

OBSERVATIONS:
It is assumed that the introduction of an import tariff on sunflower seeds and rape seeds will totally discourage
the import of these products into the Community. The financial incidence of the proposed measure on the EU
budget is therefore considered to be negligible.

6

ANNEX

EU exports of fresh eggs (CN 0407 00 30) to Russia (000 EUR)

CN code

Description

19945

1995

19966

1997

1998

0407 00 30

Poultry eggs,
in shell,
fresh preserved or cooked

393

3 225

2 759

108

40

EU imports of sunflower seeds and rape seeds from Russia (000 EUR)

CN Code

Description

1996

1997

1998

Average
1996-1998

1205 00 90

Rape or colza seeds, whether
or not broken, other than for
sowing

1206 00 91

Sunflower seeds, whether or
not broken, not for sowing,
shelled in grey and white
stripped shell

1206 00 99

Sunflower seeds, whether or
not broken, not for sowing,
other

9 103

8 473

19 178

12 251

5 978

1 774

1 160

2 971

253 651

130 719

124 984

169 785

5

6

EU-12.
The import ban was introduced in May 1996.

7

Trade value of the Russian import ban on eggs (000 EUR), 1996-20007

Year

1996

1997

1998

1999

Total

Value

3 225

3 225

3 225

3 225

12 900

Value in terms of duty collection of the measure imposed against Russia (000 EUR)

CN Code

Average trade
1996-1998 (000 EUR)

New rate of duty (%)

Duty collection
(000 EUR)

1205 00 90

1206 00 91

1206 00 99

Total

12 251

2 971

169 785

185 007

7,0

7,0

7,0

858

208

11 885

12 951

7

The trade value has been calculated on the basis of anticipated constant export volume, in value, since
1995.

8