WRITTEN QUESTION E-0355/02 by Herbert Bösch (PSE) to the Commission. Circular traffic with export refunds.
Date: 2002-02-14
Institutions: European Parliament, Provisional data
Subjects: agricultural product, enlargement of the Union, exemption from customs duties, export refund, fraud against the EU, sanction (EU), tariff preference

C 229 E/78

Official Journal of the European Communities

EN

26.9.2002

(2002/C 229 E/085)

WRITTEN QUESTION E-0355/02

by Herbert Bösch (PSE) to the Commission

(14 February 2002)

Subject: Circular traffic with export refunds

The Court of Auditors Special Report 7/2001 on export refunds notes that the Commission will verify the
products for which export refunds should not be paid if a preferential arrangement applies when the same
products are imported into the EU.

For which products traded between the EU and the candidate countries have export refunds been paid to
date, despite a preferential arrangement?

Which products in which non-member States are affected?

In Estonia, because of inadequate precautions with regard to export refunds and preferential arrangements,
a case of fraud involving butter has already been uncovered. Is the Commission aware of other cases of
what is known as circular traffic? If so, which products and which countries were involved?

What is the Commission’s estimate of the financial damage that has been caused in this way?

Answer given by Mr Fischler on behalf of the Commission

(29 April 2002)

The Community concluded in year 2000 with the candidate countries trade liberalisation agreements
under which so-called ‘double-zero-quotas’ were included, i.e. duty-free import quotas and removal of the
export refunds. The sectors included in the double-zero approach were pig meat, poultry meat, cheese
(except Slovenia), tomatoes and apples. Though not generally included, cereals and butter were also
partially liberalised in this way with Poland.

A second round of trade liberalisation negotiations was launched between the Union and the candidate
countries in December 2001. One of the main aims of the new round of liberalisation is to establish duty-
free tariff quotas and to remove the export refunds also in the sectors which were not generally negotiated
in the year 2000 (e.g. cereals, beef meat, sheep meat, eggs, dairy products, wine).

With regard to Estonia, the Commission has concluded on 31 January 2002 an agreement that 9 pending
approval by the Council 9 will enter into force on 1 July 2002 and on the basis of which export refunds
for this destination will be removed in basically most sectors.

As regards the Estonian butter case, recovery procedures are ongoing for an amount of € 3,1 million of
underpaid customs duties.

A possible abnormal movement of sugar from Croatia and the Federal Republic of Yugoslavia and of
isoglucose from Bosnia-Herzegovina was recently detected, and a decision on the most appropriate course
of action will be taken shortly by the services concerned.

(2002/C 229 E/086)

WRITTEN QUESTION E-0357/02

by Michl Ebner (PPE-DE) to the Council

(22 February 2002)

Subject: European Year of Mountains

The year 2002 is the ‘European Year of Mountains’ and should therefore be devoted to celebrating their
special beauty and also to highlighting problems in mountainous areas.