Proposal for a Council Regulation adopting autonomous measures concerning the importation of fish and fishery products originating in Malta
Date: 2001-11-07
Institutions: European Commission
Subjects: Malta, fishery product, import (EU), originating product, tariff preference, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.11.2001
COM(2001) 635 final

2001/0259 (ACC)

Proposal for a

COUNCIL REGULATION

adopting autonomous measures concerning the importation of fish and fishery products
originating in Malta

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 4 April 2001, the Council authorised the Commission to undertake negotiations on behalf
of the Community with Malta, in order to further liberalise reciprocal trade in fish and fishery
products.

Malta has already eliminated all import duties (and similar financial instruments, with the
exception of VAT) on fish and fishery imports from the Community. The Community has a
large trade surplus vis-à-vis Malta in the fisheries sector and the major Maltese export interest
is linked to sea bass and sea bream, farmed entirely from raw materials imported from the
Community.

Negotiations with Malta were held on 23 April. The two parties agreed on a model for simple,
gradual and reciprocal tariff concessions, whose details have been recorded in the Agreed
Minutes signed by each head of delegation. The main commitments made by the Community
as a result of the conclusion of the negotiations are as follows:

As regards sea bass, sea bream and gilt-head seabream, it was agreed that the Community
would establish a tariff quota common for these species. The tariff quota, based on the
traditional trade, will be 1500 tonnes at 7.5% at the entry into force of the agreement. It will
be increased to 1750 tonnes at 0% one year after the entry into force of the agreement and
eliminated two years after the entry into force of the agreement.

As regards the tariff duties applied to all other fish and fishery products, as covered by the
definition set out in Regulation (EC) No 104/2000, a one-third reduction will be applied from
the date of entry into force of the agreement. The following year a further reduction of one
third will be applied. Two years after the entry into force of the agreement, full free trade of
all fish and fishery products will be applied.

is proposed that,

A Protocol laying down the new trade arrangements for certain fish and fishery products has
to be added to the Association Agreement between the Community and Malta. Pending the
completion of internal procedures required for the entry into force of the additional Protocol,
it
the Community adopts autonomous
measures enabling the concessions made to Malta to apply as early as 1 January 2002. A swift
implementation of the agreement is desirable in order to introduce the gradual liberalisation of
trade in fish and fishery products and to give a positive political sign to Malta in the context
of the accession process.

through a Council Regulation,

The adoption of the proposed autonomous measures will bring forward the effective starting
date for the gradual
liberalisation of trade in fish and fishery products between the
Community and Malta. It is therefore necessary to ensure that this circumstance is taken into
account at the time when the new Additional Protocol to the Association Agreement enters
into force. For this purpose, the Commission will propose the conclusion of an interpretative
Exchange of Letters with Malta.

In light of the above, the Council is requested to adopt the attached Regulation implementing,
on an autonomous basis, the concessions agreed between the Community and Malta.

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2001/0259 (ACC)

Proposal for a

COUNCIL REGULATION

adopting autonomous measures concerning the importation of fish and fishery products
originating in Malta

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 Commission,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1

2

The Agreement establishing an association between the European Economic
Community and Malta1 provides for certain concessions for fish and fishery products
originating in Malta.

Council Regulation (EC) No 3010/95 totally or partially suspending the customs
duties applicable to certain products falling within Chapters 1 to 24 of the Combined
Nomenclature originating in Malta2, also provides for certain tariff concessions for
fish and fishery products originating in Malta.

In accordance with the directives issued by the Council on 4 April 2001, negotiations
with Malta on a new Additional Protocol
to the Association Agreement were
concluded on 23 April 2001.

The new Additional Protocol, based on Article 2 of the Association Agreement,
provides for concessions on fish and fishery products.

A swift implementation of the agreement forms an essential part of the results of the
negotiations for the conclusion of a new Additional Protocol to the Association
Agreement with Malta.

Malta already applies zero-duties for imports of fish and fishery products originating
in the Community.

It is therefore appropriate for the Community to adopt autonomous measures bringing
forward in time the application of the concessions to Malta provided for in the new
Additional Protocol to the Association Agreement.

OJ L 61, 14.3.1971, p. 3
OJ L 314, 28.12.95, p. 1. Regulation as last amended by Council Regulation (EC) No 779/98 (OJ L 113,
15.4.1998, p.1).

3

(8)

As far as the management of tariff quotas is concerned, it is appropriate to follow the
chronological order of dates of acceptance of customs declarations in accordance with
Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for
the implementation of Council Regulation (EEC) No 2913/92 establishing the
Community Customs Code3.

HAS ADOPTED THIS REGULATION:

Article 1

1
The arrangements for the importation into the Community of fish and fishery products
originating in Malta, as set out in Articles 2 and 3 below, shall modify those set out in Annex
I to the Agreement establishing an association between the European Economic Community
and Malta, and shall replace those set out for fish and fishery products in the Annex to
Regulation (EC) No 3010/95.

2
From the date of entry into force of the new Additional Protocol to the Association
Agreement with Malta, the concessions provided therein shall apply taking account of the
implementation measures already adopted by both Parties, in a reciprocal manner, in advance
of that date. Accordingly, on the date of entry into force of the Additional Protocol, its
provisions shall replace and supersede the relevant provisions of the present Regulation.

Article 2

As from 1 January 2002, the Community shall apply a one-third reduction of the tariff duties
for fish and fishery products, as defined in Article 1 of Council Regulation (EC) No
104/20004, other than those mentioned in Article 3.

As from 1 January 2003, the Community shall apply a further one-third reduction of the tariff
duties as they were at the time at which this Regulation became applicable.

As from 1 January 2004, the Community shall eliminate the tariff duties on all fish and
fishery products, including those products mentioned in Article 3.

Article 3

From 1 January until 31 December 2002, a single Community tariff quota with order number
09.1461 shall be opened for a quota volume of 1500 tonnes at a duty rate of 7,5% (ad
valorem) for sea bass (Dicentrarchus labrax) falling under CN subheading 0302 69 94, sea
bream (Dentex dentex and Pagellus spp.) falling under CN subheading 0302 69 61 and gilt-
head seabream (Sparus aurata) falling under CN subheading 0302 69 95, originating in
Malta.

From 1 January until 31 December 2003, for the same products originating in Malta, a
Community tariff quota with order number 09.1461 shall be opened for a quota volume of
1750 tonnes at a duty rate of 0%.

3

4

OJ L 253 , 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 993/2001 (L 141,
28.5.2001, p. 1)
OJ L 17, 21.1.2000, p.22.

4

For quantities imported into the Community above the tariff quota, the provisions of Article 2
shall apply.

The tariff quota referred to in Article 3 shall be managed by the Commission in accordance
with Articles 308a and 308b of Regulation (EC) No 2454/93.

Article 4

Article 5

The calculation of the reductions mentioned in Article 2 shall be carried out using common
mathematical principles.

In particular, the following rules shall apply:

all the figures which have 50 or less after the decimal point shall be rounded down to

(a)
the nearest whole number;

all the figures which have more than 50 after the decimal point shall be rounded up to

(b)
the nearest whole number;

(c)

all the tariffs below 2% shall automatically be fixed at 0%

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

Article 6

It shall apply from 1 January 2002.

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

Done at Brussels, […]

For the Council
The President
[…]

5

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal to adopt autonomous measures bringing forward in time the application of
the provisions of an Additional Protocol to the Association Agreement with Malta
laying down the trade arrangements for fish and fishery products. Reciprocal
concessions have been agreed and will be implemented over a period of two years,
leading to full liberalisation of trade in the products concerned.

2.

BUDGET HEADING(S) INVOLVED

Chapter 12, Article 120

3.

LEGAL BASIS

4.

4.1

5.

5.1

Article 133 of the Treaty establishing the European Community

DESCRIPTION OF OPERATION

General objective

Full trade liberalisation in fish and fishery products in preparation for accession of
Malta to the European Community.

CLASSIFICATION OF EXPENDITURE OR REVENUE

Type of revenue involved

Import duties

6.

TYPE OF EXPENDITURE OR REVENUE

– The proposed operation will cause a reduction in import duties levied on fish and

fishery products originating in Malta.

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation (relation between individual and
total costs)

Only a few products are imported from Malta, the following table gives the imports
in 1998, 1999 and 2000 and the average duties paid.

The estimated average duty level for fresh and chilled fish is 12% and the estimated
average duty level for canned fish is 24%.

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Products

1998

1999

2000

Fresh and chilled fish
imported

Duties (12%)

Canned fish imported

Duties(24%)

4 216 150 Euro

5 328 860 Euro

5 113 900 Euro

505 938 Euro

639 463 Euro

613 668 Euro

33 910 Euro

8 138 Euro

0 Euro

0 Euro

75 260 Euro

18 062 Euro

TOTAL IMPORTS

4 250 060 Euro

5 328 860 Euro

5 189 160 Euro

TOTAL DUTIES

514 076 Euro

639 463 Euro

631 730 Euro

Import duties levied in 1999 showed an increase of approximately 25% over 1998;
duties in 2000 showed a decrease of 2% over 1999. A decrease in production of fresh
and chilled fish (sea bass and sea bream) is awaited in 2001 and 2002, but it seems
that the canned fish imports could be the same as in 2000. In consequence Year 2002
could be similar to year 1999 for fresh fish but similar to 2000 for canned fish, and a
reasonable increase of 20% could affect both sectors in year 2003.

7.2

Itemised breakdown of cost

Breakdown

year 2002

2003

2004

Commitment appropriations EUR million (at current prices)

Estimated lost import duties in
2002 = 33,3% of the duties paid
in 2001( same as in 1999)

0.2

Estimated lost import duties in
2003 = 33,3% of the duties paid
in 2002

Estimated lost import duties in
2004 = Duty free

0.12

TOTAL

0.2

0.12

0

0

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