Proposal for a Council Regulation on a transitional product-specific safeguard mechanism for imports originating in the People's Republic of China and amending Council Regulation (EC) No 519/94 on common rules for imports from certain third countries
Date: 2002-06-25
Institutions: European Commission
Subjects: China, EU policy, World Trade Organisation, footwear industry, household article, import, market protection, originating product, quantitative restriction, trade policy

24.9.2002

EN

Official Journal of the European Communities

C 227 E/555

Proposal for a Council Regulation on a transitional product-specific safeguard mechanism for
imports originating in the People's Republic of China and amending Council Regulation (EC)
No 519/94 on common rules for imports from certain third countries

(2002/C 227 E/30)

COM(2002) 342 final — 2002/0133(ACC)

(Submitted by the Commission on 25 June 2002)

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,

(7) Market disruption shall exist whenever

imports of a
product are increasing rapidly so as to be a significant
cause of material injury or threat of material injury to the
Community industry.

(8) It seems necessary to illustrate which factors have to be
taken into consideration for the determination of market
disruption.

Whereas:

(1) By Regulation (EC) No 3285/94 (1) the Council adopted
common rules for imports which contain provisions on
safeguard measures.

(2) By Regulation (EC) No 519/94 (2) the Council adopted
common rules for imports from certain third countries
which also contain provisions on safeguard measures.

(3) The Protocol on the Accession of the People's Republic of
China (hereinafter referred to as ‘China’) to the World
Trade Organisation (hereinafter
‘the
transitional
provides
Protocol’)
safeguard measures (hereinafter referred to as ‘safeguard
trade
product-specific
measures’)
diversion measures
‘trade
(hereinafter
diversion measures’).

transitional
referred to as

referred to as

product-specific

and

for

(4) The Protocol entered into force on 11 December 2001.

(5) In view of

the considerable difference between the
provisions on safeguard measures
contained in the
Protocol on the one hand and in Council Regulation
(EC) No 519/94 and Council Regulation (EC) No
it is necessary to have a
3285/94 on the other hand,
specific Regulation for safeguard measures and trade
diversion measures on certain imports originating in
China.

(6) According to the Protocol, safeguard measures may be
imposed when products of Chinese origin are being
imported into the Community in such increased quantities
or under such conditions as to cause or threaten to cause
market disruption to the Community industry.

(1) OJ L 349, 31.12.1994, p. 53.
(2) OJ L 67, 10.3.1994, p. 89.

(9) The Protocol provides

the

imposition of

trade
for
diversion measures in situations where an action by
China or another Member to the World Trade Organi-
sation (hereinafter
taken to
referred to as
remedy market disruption in that WTO
prevent or
Member's market
to cause an
increase in imports of a product originating in China
into the Community.

causes or

threatens

‘WTO’)

(10) It is appropriate to lay down guidance as to the factors
which may be relevant for determining whether trade
diversion has taken place.

(11) It is advisable to define the term ‘Community industry’.

(12) It

the
is upon a request by a Member State or
Commission that a safeguard or trade diversion investi-
gation is initiated; it is necessary to limit the possibility of
initiating an investigation concerning safeguard measures
on the same subject matter before the lapse of one year
after the completion of a previous investigation; there
should be no such limitation concerning trade diversion
measures.

(13) It is necessary to lay down the manner in which interested
parties should be given notice of the information which
the Community authorities
require, and should have
ample opportunity to present all relevant evidence and
it is also desirable to set out
to defend their interests;
clearly the rules and procedures to be followed during
the
in particular
the
rules whereby
investigation,
themselves known,
interested parties
to make
are
information within
their views and submit
present
specified time limits, if such views and information are
to be taken into account; it is also appropriate to set out
the conditions under which an interested party may have
access to, and comment on,
information presented by
other interested parties.

C 227 E/556

EN

Official Journal of the European Communities

24.9.2002

(14) It is necessary to lay down the conditions under which
provisional measures may exceptionally be imposed,
including that
such duties may be imposed by the
Commission and only for a period of 200 days.

(15) The Protocol requires that definitive measures may only
be imposed 60 days after the receipt of a request for
consultations by China and if such consultations have
not led to a mutually satisfactory solution.

(16) It seems advisable to foresee — under certain conditions
and provided that the operation of the internal market is
not disrupted — the possibility of
imposing measures
limited to one or several Member States.

(17) It seems appropriate to provide that safeguard measures
are to lapse after four years unless a review indicates that
they should be maintained.

(18) It is advisable to provide for interim reviews,

in cases
where a Member State or the Commission request
to
examine the effects of a safeguard or trade diversion
measure and the necessity to maintain the measure.

(19) It is necessary to provide for a review of a trade diversion
measure when the WTO Member taking an action to
address market disruption notified the WTO Committee
on Safeguards of any modification of the action.

(20) It is expedient to permit the suspension of safeguard and
trade diversion measures where there is a temporary
change in market conditions which makes the continued
imposition of measures temporarily inappropriate.

(21) In order to ensure proper enforcement of measures, it is
necessary that Member States monitor, and report to the
Commission,
to
and also the
investigation or
amount of duties collected under this Regulation, where
applicable.

trade of products subject
to measures

the import
subject

(22) It is also necessary to provide for consultation of an
Advisory Committee at regular and specified stages of
the investigation; whereas, the Committee should consist
of representatives of Member States with a representative
of the Commission as chairman; whereas, pursuant to
recital 12 of Council Decision 1999/468/EC (1),
the
Advisory Committee does not fall under the scope of
application of the abovementioned Council Decision.

(23) It is expedient to provide for verification visits to check
information submitted on trends in import volumes and

(1) OJ L 184, 17.7.1999, p. 23.

market disruption, such visits being, however, conditional
on proper replies to questionnaires being received.

(24) Provision should be made for the treatment of confi-
information so that business or governmental

dential
secrets are not divulged.

(25) It is essential that provision be made for proper disclosure
of essential
facts and considerations to parties which
qualify for such treatment and that such disclosure be
made, with due regard to the decision-making process
in the Community, within a time period which permits
parties to defend their interests.

(26) It

is prudent

to provide for an administrative system
under which arguments can be presented as to whether
measures are in the Community interest,
including the
interests of consumers, and to lay down the time
to be
periods within which such information has
presented as well as the disclosure rights of the parties
concerned.

(27) The Report of the Working Parties on the Accession of
China to the WTO (hereinafter referred to as ‘the Report’)
provides for a gradual phasing out of
the non-textile
quotas which the Community maintains vis-à-vis some
products of Chinese origin.

(28) It is therefore appropriate to repeal Annex II of Council
Regulation (EC) No 519/94 to reflect this phasing out.

(29) It

to increase

is appropriate

the quantities already
allocated through import licences for 2002 in order to
take into account the increase foreseen in the phasing-out
timetable for 2001 and 2002.

(30) It is appropriate to remove from surveillance measures
those Chinese products currently covered and listed in
Annex III of Council Regulation (EC) No 519/94, which
should be repealed.

(31) It is appropriate to remove from Annex I to Council
Regulation (EC) No 519/94 those countries who have
become Members to the WTO and to delegate to the
Commission the responsibility for updating the Annex.

(32) The Protocol provides for the expiry of the section related
to safeguard and trade diversion measures 12 years after
the entry into force of
is therefore
necessary to determine that any measures taken under
this Regulation shall
latest on 11
expire
December 2013,

the Protocol;

the

at

it

24.9.2002

EN

Official Journal of the European Communities

C 227 E/557

HAS ADOPTED THIS REGULATION:

TITLE I

TRANSITIONAL PRODUCT-SPECIFIC SAFEGUARD
MECHANISM

Article 1

Principles

1.
In cases where products of Chinese origin are being
imported into the Community in such increased quantities or
under such conditions as to cause or threaten to cause market
disruption to the Community industry, a safeguard measure
may be imposed in accordance with the following provisions.

Objective criteria have to be applied in determining
remedy market disruption
trade.

2.
whether actions to prevent or
cause or
Among the factors to be examined are:

threaten to cause significant diversion of

(a) the actual or imminent increase in market share of imports

from China into the Community;

(b) the nature or extent of the action taken or proposed by

China or other WTO Members;

(c)

the actual or imminent increase in the volume of imports
from China due to the action taken or proposed;

2.
If an action by China or another Member of the WTO to
prevent or remedy market disruption in that WTO Member's
market causes or threatens to cause significant trade diversions
into the Community, a trade diversion measure may be
imposed in accordance with the following provisions.

(d) conditions of demand and supply in the Community

market for the products at issue; and

(e)

the extent of exports from China to the WTO Member(s)
applying a provisional or definitive safeguard measure.

Article 2

Determination of market disruption

1. Market disruption shall exist whenever
imports of a
product, like or directly competitive with a product produced
by the Community industry, are increasing rapidly, either
absolutely or relatively, so as to be a significant cause of
material
to the
or
Community industry.

threat of material

injury,

injury

In determining if market disruption exists, only objective

2.
factors shall be considered, including:

(a) the volume of imports under investigation;

(b) the effect of such imports on prices for like or directly

competitive products in the Community; and

(c) the effect of such imports on the Community industry

producing like or directly competitive products.

Article 3

Article 4

Definition of Community industry

the term ‘Community
For the purposes of this Regulation,
industry’ shall be interpreted as referring to the Community
producers as a whole of
the like or directly competitive
products operating within the territory of the Community or
those of them whose collective output of the like or directly
competitive products constitutes a major proportion of the
total Community production of those products.

Article 5

Initiation of proceedings

1.
An investigation shall be initiated upon request of a
Member State or on the Commission's own initiative if it is
apparent to the Commission that there is sufficient evidence to
justify the initiation of an investigation.

2.
The Commission shall be informed by the Member States
should trends in imports appear to call for safeguard or trade
diversion measures. This information shall contain the evidence
available, as determined on the basis of the criteria laid down
in Articles 1, 2 and 3, as appropriate. The Commission shall
immediately pass this information on to all the Member States.

Determination of significant trade diversion

1.
Significant trade diversion shall exist when an action by
China or another WTO Member taken to prevent or remedy
market disruption in that WTO Member's market causes or
threatens to cause an increase in imports of a product from
China into the Community.

Prior to the initiation of an investigation the Commission
3.
shall notify China of its intention to initiate an investigation.
The notification may be accompanied by an invitation for
consultations with the aim of clarifying the situation as to
matters referred to in Articles 1, 2 and 3, as appropriate,
and arriving at a mutually satisfactory solution.

C 227 E/558

EN

Official Journal of the European Communities

24.9.2002

4. Where, after consultation of Member States, it is apparent
that there is sufficient evidence to justify initiating a proceeding
and any consultations under paragraph 3 of this Article have
not led to a mutually satisfactory solution, the Commission
shall publish a notice in the Official
the European
Communities.

Journal of

5.
The notice of initiation of the proceedings shall announce
the initiation of an investigation, the scope of the investigation,
indicate the product concerned, give a summary of
the
information received and provide that all relevant information
is to be communicated to the Commission; it shall state the
periods within which interested parties may make themselves
known, present their views in writing and submit information,
if such views and information are to be taken into account
during the investigation;
it shall also state the period within
which interested parties may apply to be heard by the
Commission in accordance with Article 6(4).

Except

6.
for good cause, no investigation concerning
safeguard measures as defined in Article 1(1) on the same
subject matter shall be initiated less than one year after the
completion of a previous investigation.

An investigation shall not hinder

7.
customs clearance.

the procedures of

Article 6

The investigation

European Communities, made a written request for a hearing
showing that they are an interested party actually likely to be
affected by the result of the proceeding and that there are
particular reasons why they should be heard.

5.
Opportunities shall, on request, be provided for interested
parties, which have made themselves known in accordance
with Article 5(5), and the government of China to meet
those parties with adverse interests, so that opposing views
may be presented and rebuttal arguments offered. Provision
of such opportunities must
the need to
preserve confidentiality and of the convenience to the parties.
There shall be no obligation on any party to attend a meeting,
and failure to do so shall not be prejudicial to that party's case.
Oral information provided under this paragraph shall be taken
into account by the Commission in so far as it is subsequently
confirmed in writing.

take account of

6.
The interested parties which have made themselves
known in accordance with Article 5(5) and the government
inspect all information
of China, may, upon written request,
made available to the Commission by any party to an investi-
gation, as distinct from internal documents prepared by the
authorities of the Community or its Member States, which is
relevant to the presentation of their cases and not confidential
within the meaning of Article 17, and that it is used in the
investigation. Such parties may respond to such information
and their comments shall be taken into consideration, wherever
they are sufficiently substantiated in the response.

of

the

the

initiation

Following

proceeding,

1.
the
Commission shall commence an investigation. Such investi-
increased imports
gation shall cover both the existence of
and market disruption or the existence of
trade diversion.
The existence of
increased imports and market disruption
shall be investigated simultaneously. For the purpose of a
an investigation period shall be
representative
selected. Information relating to a period subsequent to the
investigation period shall, normally, not be taken into account.

finding,

The Commission shall seek all information it deems to be
2.
necessary to make a determination with regard to the criteria
laid down in Articles 1, 2 and 3, as appropriate, and where it
considers it appropriate, endeavour to verify this information.

3.
The Commission may request Member States to supply
information, and Member States shall take whatever steps are
necessary in order to give effect to such requests. Where this
information is of general interest or where its transmission has
been requested by a Member State,
the Commission shall
forward it to the Member States, provided it is not confidential,
in which case a non-confidential summary shall be forwarded.

4.
The interested parties which have made themselves
known in accordance with Article 5(5) and the government
of China shall be heard if
they have, within the period
prescribed in the notice published in the Official Journal of the

For proceedings initiated pursuant

7.
to Article 5(4) an
investigation shall, whenever possible, be concluded within
nine months from the initiation of the investigation. In excep-
tional circumstances, this time limit may be extended by a
the Commission
further maximum period of
shall
the
Journal of
the
setting forth the duration of
European Communities
extension and a summary of the reasons therefor.

then publish a notice in the Official

two months;

Article 7

Imposition of provisional safeguard measures

1.
Provisional safeguard measures shall be applied in critical
circumstances where delay would cause damage which it would
be difficult to repair, after a preliminary determination that
imports have caused or threatened to cause market disruption
to the Community industry and if the Community interest calls
for intervention. The Commission shall take such provisional
measures after consultation with Member States or, in cases of
extreme urgency, after informing the Member States. In this
latter case, consultation shall take place 10 days, at the latest,
after notification of the Member States of the action taken by
the Commission.

Provisional safeguard measures can,

2.
form of
imports originating in China.

customs duties and quantitative

inter alia, take the
restrictions of

24.9.2002

EN

Official Journal of the European Communities

C 227 E/559

The duration of the provisional measures shall not exceed

3.
200 days.

Should the provisional safeguard measure be repealed
4.
because the conditions contained in Articles 1, 2 or 3, as
appropriate, were not met, any duties collected as a result of
the provisional measures shall be automatically refunded. The
procedure laid down in Article 235 et seq. of Council Regu-
lation (EEC) No 2913/92 of 12 October 1992 establishing the
Community Customs Code (1) shall apply.

Article 8

Termination without measures

Where, after consultation with Member States, safeguard or
trade diversion measures are unnecessary and there is no
objection raised within the Advisory Committee, the investi-
gation or proceeding shall be terminated by Commission
Decision. In all other cases, the Commission shall submit to
the Council forthwith a report on the results of the consul-
tation, together with a proposal for a Council Regulation that
the proceeding be terminated. The proceeding shall be deemed
terminated if, within one month, the Council, acting by a
qualified majority, has not decided otherwise.

Article 9

Imposition of definitive measures

the
1. Where the facts as finally established show that
conditions laid down in Articles 1, 2 and 3, as appropriate,
are met, and the Community interest calls for intervention in
accordance with Article 19,
the Commission shall request
consultations with the government of China with a view to
seeking a mutually satisfactory solution.

the receipt of a request

2.
If the consultations referred to in paragraph 1 of this
Article do not lead to a mutually satisfactory solution within
for consultations, a
60 days of
definitive safeguard or
trade diversion measure shall be
imposed by the Council acting by simple majority on a
proposal submitted by the Commission after consultation of
the Advisory Committee. Where provisional measures are in
force, a proposal for definitive action shall be submitted to the
Council not later than one month before the expiry of such
duties.

3.
Definitive safeguard measures can, inter alia, take the form
of customs duties and quantitative restrictions of imports orig-
inating in China.

limited to the Member State

9 are met in one or more Member States of the Community,
the Commission, after having examined alternative solutions,
safeguard
may exceptionally authorise the application of
measures
it
considers that such measures applied at that level are more
appropriate than measures applied throughout the Community.
These measures must be temporary and must not disrupt the
operation of
shall be
adopted in accordance with the provisions laid down in
Articles 7 and 9 respectively.

the internal market. The measures

concerned if

Article 11

Duration

1.
A safeguard measure shall remain in force only for such
period of time as may be necessary to prevent or remedy the
market disruption. The period shall not exceed four years
unless it is extended under Article 12(1).

2.
A trade diversion measure shall be terminated not later
than 30 days after the expiration of the action taken by the
WTO Member involved against imports from China.

Article 12

Review of safeguard measures

The initial period of duration of a safeguard measure may

1.
be extended provided it is determined that

— the safeguard measure continues to be necessary to prevent

or remedy market disruption

— and there is evidence that Community producers are

adjusting.

Extensions shall be adopted in accordance with the
2.
procedures of this Regulation applying to investigations and
using the same procedures as the initial measures. A measure
so extended shall not be more restrictive than it was at the end
of the initial period.

3. While any safeguard measure is in operation, consul-
tations shall be held within the Advisory Committee, either
at the request of a Member State or on the initiative of the
Commission, in order to examine the effects of the measure
and to ascertain whether its application is still necessary.

Article 10

Regional measures

4. Where, as a result of the consultations referred to in the
that any
preceding paragraph,
safeguard measure should be revoked or amended,
it shall
proceed as follows:

the Commission considers

Where it emerges, primarily on the basis of the factors referred
to in Articles 2 and 3, respectively, that the conditions laid
down for the adoption of measures pursuant to Articles 7 and

(1) OJ L 302, 19.10.1992, p. 1.

(a) Where the measure was enacted by the Council,

the
Commission shall propose to the Council
it be
revoked or amended. The Council shall act by simple
majority.

that

C 227 E/560

EN

Official Journal of the European Communities

24.9.2002

(b) In all other cases, the Commission shall revoke or amend

the safeguard measures.

be reinstated if
applicable.

the reason for

suspension is no longer

Article 13

Review of trade diversion measures

1.
Trade diversion measures shall be reviewed when the
WTO Member who had taken an action on the basis of
which a trade diversion measure was imposed under this Regu-
lation has notified the WTO Committee on Safeguards of any
modification of that action.

Paragraph 3 and 4 of Article 12 apply mutatis mutandis to

2.
trade diversion measures.

Article 14

General provisions

If

the measures take the form of duties,

Provisional or definitive measures shall be imposed by
1.
Regulation.
they
shall be collected by Member States in the form, at the rate
specified and according to the other criteria laid down in the
Regulation imposing such measures. Such duties shall also be
collected independently of the customs duties, taxes and other
charges otherwise imposed on imports.

Journal of

2.
Regulations imposing provisional or definitive measures,
and Decisions terminating or suspending investigations or
proceedings, shall be published in the Official
the
European Communities. Such Regulations or Decisions shall
contain in particular and with due regard to the protection
of confidential information, a description of the product and
a summary of the facts and considerations relevant to deter-
minations of increased imports and market disruption. In each
case, a copy of the Regulation or Decision shall be sent to
known interested parties and the government of China. The
provisions of this paragraph shall apply mutatis mutandis to
reviews.

Special provisions,

3.
in particular with regard to the
common definition of the concept of origin, as contained in
Council Regulation (EEC) No 2913/92 of 12 October 1992,
may be adopted pursuant to this Regulation.

In the Community interest, measures imposed pursuant
4.
to this Regulation may, after consultation of
the Advisory
Committee, be suspended by a Decision of the Commission
for a period of 9 months. The suspension may be extended
for a further period, not exceeding one year, if the Council so
decides, acting by simple majority on a proposal from the
Commission. Measures may only be suspended where market
conditions have temporarily changed to an extent that market
disruption would be unlikely to resume as a result of the
suspension. Measures may, at any time and after consultation,

5. Member States shall report
to the Commission every
month on the import trade of products subject to investigation
and to measures, and on the amount of duties collected
pursuant to this Regulation.

Article 15

Consultations

1.
Any consultations provided for in this Regulation except
those provided for in Articles 5(3) and 9(1) shall take place
within an Advisory Committee, which shall consist of represen-
tatives of each Member State, with a representative of the
Commission as
shall be held
chairman. Consultations
immediately on request by a Member State or on the initiative
of the Commission, and in any event within a period of time
which allows the time limits set by this Regulation to be
adhered to.

The Committee shall meet when convened by its
2.
chairman. He shall provide the Member States, as promptly
as possible, with all relevant information.

3. Where necessary, consultation may be in writing only; in
that event, the Commission shall notify the Member States and
shall specify a period within which they shall be entitled to
express their opinions or to request an oral consultation which
the chairman shall arrange, provided that such oral consul-
tation can be held within a period of time which allows the
time limits set by this Regulation to be adhered to.

Article 16

Verification visits

and

representative

1.
The Commission shall, where it considers it appropriate,
carry out visits to examine the records of exporters, producers,
exporters,
importers
to
producers or
increased
verify information provided on the existence of
imports and market disruption or trade diversion.
In the
absence of a proper and timely reply a verification visit may
not be carried out.

importers and the Community industry,

associations

of

it obtains the agreement of
it notifies the government of

The Commission may carry out investigations in third
2.
the
countries, provided that
the
that
parties concerned,
country in question and that the latter does not object to the
investigation. As
the parties
concerned has been obtained, the Commission should notify
the country of origin and/or export of the names and addresses
of the parties to be visited and the dates agreed.

the agreement of

soon as

24.9.2002

EN

Official Journal of the European Communities

C 227 E/561

The parties concerned shall be advised of the nature of
3.
the information to be verified during verification visits and of
any further information which needs to be provided during
such visits, though this should not preclude requests made
during the verification for further details to be provided in
the light of information obtained.

In investigations carried out pursuant to paragraphs 1, 2
4.
and 3, the Commission shall be assisted by officials of those
Member States who so request.

Article 17

Confidentiality

its disclosure would be of

Any information which is by nature confidential

(for
1.
example, because
significant
competitive advantage to a competitor or would have a
significantly adverse effect upon a person supplying the
information or upon a person from whom he has acquired
the information) or which is provided on a confidential basis
by parties to an investigation shall, if good cause is shown, be
treated as such by the Community authorities.

2.
Interested parties providing confidential information shall
be required to furnish non-confidential summaries thereof.
Those summaries shall be in sufficient detail
to permit a
reasonable understanding of the substance of the information
In exceptional circumstances, such
submitted in confidence.
parties may indicate that such information is not susceptible
of summary. In such exceptional circumstances, a statement of
the reasons why summarisation is not possible must be
provided.

disclosure

the supplier of

If it is considered that a request for confidentiality is not
3.
the information is either
warranted and if
unwilling to make the information available or to authorise
its
such
information may be disregarded unless it can be satisfactorily
demonstrated from appropriate sources that the information is
correct. Requests for confidentiality shall not be arbitrarily
rejected.

in generalised or

summary

form,

This Article shall not preclude the disclosure of general
4.
information by the Community authorities and in particular of
the reasons on which decisions taken pursuant to this Regu-
lation are based, nor disclosure of the evidence relied on by the
Community authorities in so far as is necessary to explain
those reasons in court proceedings. Such disclosure must
take into account
the parties
concerned that their business or governmental secrets should
not be divulged.

the legitimate interests of

5.
The Commission, the Council and the Member States, or
the officials of any of these, shall not reveal any information
received pursuant to this Regulation for which confidential

treatment has been requested by its supplier, without specific
permission from the supplier. Exchanges of
information
between the Commission, the Council and Member States, or
any information relating to consultations made pursuant to
Article 12, or consultations described in Articles 5(3) and
9(1), or any internal documents prepared by the authorities
of
shall not be
divulged to the public or any party to the proceeding except
as specifically provided for in this Regulation.

the Community or

its Member States,

Information received pursuant to this Regulation shall be

6.
used only for the purpose for which it was requested.

Article 18

Disclosure

1.
The interested parties and the government of China, may
request disclosure of the details underlying the essential facts
and considerations on the basis of which provisional measures
have been imposed. Requests for such disclosure shall be made
in writing immediately following the imposition of provisional
measures, and the disclosure shall be made in writing as soon
as possible thereafter.

The parties mentioned in paragraph 1 may request final
2.
disclosure of the essential facts and considerations on the basis
of which it
is intended to recommend the imposition of
definitive safeguard or trade diversion measures, or the termi-
nation of
the
imposition of measures, particular attention being paid to the
disclosure of any facts or considerations which are different
from those used for any provisional measures.

an investigation or proceedings without

Requests for final disclosure shall be addressed to the
3.
in cases where a
Commission in writing and be received,
provisional measure has been applied, not
later than one
month after publication of the imposition of that measure.
Where a provisional measure has not been applied, parties
shall be provided with an opportunity to request
final
disclosure within time limits set by the Commission.

4.
Final disclosure shall be given in writing. It shall be made,
due regard being had to the protection of confidential
information, as soon as possible and, normally, not later than
one month prior to a definitive decision or the submission by
the Commission of any proposal for final action pursuant to
Articles 8 and 9. Where the Commission is not in a position to
disclose certain facts or considerations at that time, these shall
be disclosed as soon as possible thereafter. Disclosure shall not
prejudice any subsequent decision which may be taken by the
Commission or the Council but where such decision is based
on any different
these shall be
disclosed as soon as possible.

facts and considerations,

C 227 E/562

EN

Official Journal of the European Communities

24.9.2002

Representations made after final disclosure is given shall
5.
be taken into consideration only if received within a period to
be set by the Commission in each case, which shall be at least
10 days, due consideration being given to the urgency of the
matter.

which final decisions are likely to be taken to be made
available to them. Such information shall be made available
to the extent possible and without prejudice to any subsequent
decision taken by the Commission or the Council.

Article 19

Community interest

1.
A determination as to whether the Community interest
calls for intervention shall be based on an appreciation of all
the various interests taken as a whole, including the interests of
the domestic industry and users and consumers; and a deter-
mination pursuant to this Article shall only be made where all
parties have been given the opportunity to make their views
known pursuant to paragraph 2. Measures may not be applied
the information
where the authorities, on the basis of all
submitted,
in the
is not
it
can clearly conclude
Community interest to apply such measures.

that

In order to provide a sound basis on which the auth-
2.
orities can take account of all views and information in the
decision as to whether or not the imposition of measures is in
the Community interest, the importers and their representative
associations, representative users and representative consumer
organisations may, within the time limits specified in the notice
of initiation of the investigation, make themselves known and
provide information to the Commission. Such information, or
appropriate summaries thereof, shall be made available to the
other parties specified in this paragraph, and they shall be
entitled to respond to such information.

The parties which have acted in conformity with
3.
paragraph 2 may request a hearing. Such requests shall be
granted when they are submitted within the time limits set
in paragraph 2, and when they set out the reasons, in terms
of the Community interest, why the parties should be heard.

4.
The parties which have acted in conformity with
paragraph 2 may provide comments on the application of
any provisional measures imposed. Such comments shall be
received within one month of
such
measures if they are to be taken into account and they, or
appropriate summaries thereof, shall be made available to
other parties who shall be entitled to respond to such
comments.

the application of

5.
The Commission shall examine the information which is
properly submitted and the extent to which it is representative,
and the results of such analysis, together with an opinion on its
merits, shall be transmitted to the Advisory Committee. The
balance of views expressed in the Committee shall be taken
into account by the Commission in any proposal made
pursuant to Article 9.

7.
Information shall only be taken into account where it is
supported by actual evidence which substantiates its validity.

TITLE II

QUOTAS FOR CERTAIN PRODUCTS ORIGINATING IN CHINA

Article 20

Principles and phasing-out of quotas

Imports into the Community of products originating in
1.
China shall take place freely, except for a limited number of
products originating in China which, owing to the sensitivity of
certain sectors of
to
quantitative quotas at Community level.

the Community industry, are subject

2.
These quotas will be applicable until 2005, at the annual
levels provided in the table of Annex I. This new Annex
replaces Annex II to Council Regulation (EC) No 519/94.

Article 21

Attribution of import licenses

1.
For the calendar year 2002, the level of each individual
licence will be automatically increased by an amount equivalent
to the one listed in Annex II to this Regulation, depending on
the product. This shall be done by a Commission regulation
establishing the allocation method for the additional quantities
resulting from the quota increase.

2.
For the subsequent years, the procedures established by
Council Regulation (EC) No 520/94 of 7 March 1994 estab-
lishing a Community procedure for administering quantitative
quotas (1) will be applicable to the allocation of import licenses
for the quotas referred to in Annex I.

TITLE III

GENERAL AND FINAL PROVISIONS

Article 22

Repeal and amendment of certain provisions

1.
Article 1(2) second indent, Article 1(3), Annex II listing
the quotas for certain products originating in China, Annex III
listing the products
to surveillance
measures and the references to Annex III in Article 1(4) and
Article 4(3)(a) of Council Regulation (EC) No 519/94 are
hereby repealed.

from China

subject

6.
paragraph 2 may request

The parties which have acted in conformity with
the facts and considerations on

(1) OJ L 66, 10.3.1994, p. 1.

24.9.2002

EN

Official Journal of the European Communities

C 227 E/563

and
Albania, Georgia, China, Kyrgyzstan, Moldova
2.
Mongolia shall be removed from Annex I to Council Regu-
lation (EC) No 519/94.

after

consultation of

The Commission may,

the
3.
Committee established under Article 4 of Council Regulation
(EC) No 519/94, amend Annex I to Council Regulation (EC) No
519/94 by Commission Regulation,
to remove
countries from the list of third countries contained in this
Annex when they become Members of the WTO.

in order

Article 23

Final provisions

This Regulation shall be without prejudice

1.
to the
operation of the instruments establishing the common organi-
sation of agricultural markets or of Community or national
administrative provisions derived therefrom or of the specific
instruments applicable to goods resulting from the processing

of agricultural products; it shall operate by way of complement
to those instruments.

2.
The provisions of Title I of this Regulation shall not apply
to those products in respect of which such rules provide for
the application of quantitative import restrictions.

3. Measures imposed under this Regulation shall at the latest
expire on 11 December 2013.

Article 24

Entry into force

This Regulation shall enter into force on the day following that
of
the European
Communities and will expire on 11 December 2013.

its publication in the Official

Journal of

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

Phasing-out timetable of industrial (non-textile) quotas on imports originating in China

ANNEX I

Product description

HS/CN Code

2003

2004

2005

Footwear

ex 6402 99 (1)

47 480 959

54 603 102

removal

6403 51
6403 59

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

3 712 459

4 269 328

removal

14 698 530

16 903 310

removal

ex 6404 11 (2)

22 106 953

25 422 996

removal

6404 19 10

38 683 955

44 486 548

removal

6911 10

6912 00

73 139

84 110

removal

55 334

63 634

removal

Tableware, kitchenware of
porcelain or china

Ceramic tableware, kitchen-
ware,
of
porcelain or china

other

than

(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 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.

(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.

C 227 E/564

EN

Official Journal of the European Communities

24.9.2002

Footwear

ANNEX II

Increase in the quotas for 2002

Product description

HS/CN Code

ex 6402 99 (1)

6403 51
6403 59

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

ex 6404 11 (2)

6404 19 10

Tableware, kitchenware of porcelain or china

6911 10

Ceramic tableware, kitchenware, other
porcelain or china

than of

6912 00

2002

10,25 %

15,5 %

10,25 %

10,25 %

10,25 %

32,25 %

32,25 %

(1) Excluding footwear involving special technology: shoes which have a cif price per pair of not less than EUR 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.

(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 EUR 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.