Council Regulation (EC) No 427/2003 of 3 March 2003 on a transitional product-specific safeguard mechanism for imports originating in the People's Republic of China and amending Regulation (EC) No 519/94 on common rules for imports from certain third countries
Date: 2003-03-03
Institutions: Council of the European Union
Subjects: China, common commercial policy, import (EU), import restriction, market protection, originating product

8.3.2003

EN

Official Journal of the European Union

L 65/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 427/2003

of 3 March 2003

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

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

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

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.

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

referred to as

(4)

The Protocol entered into force on 11 December 2001.

(5)

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

(1) OJ L 349, 31.12.1994, p. 53; Regulation as last amended by Regu-

lation (EC) No 2474/2000 (OJ L 286, 11.11.2000, p. 1).

(2) OJ L 67, 10.03.1994, p. 89; Regulation as last amended by Regula-

tion (EC) No 1138/98 (OJ L 159, 3.6.1998, p. 1).

(6)

(7)

(8)

(9)

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

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.

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

The Protocol provides for the imposition of trade diver-
sion measures in situations where an action by China or
another member of the World Trade Organisation (here-
inafter referred to as ‘WTO’) 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
originating in China into the Community.

(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 is upon a request by a Member State or the Commis-
sion that a safeguard or trade diversion investigation is
initiated; it is necessary to limit the possibility of initi-
ating 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.

L 65/2

EN

Official Journal of the European Union

8.3.2003

(13)

(14)

(15)

(16)

It is necessary to lay down the manner in which inter-
ested parties should be given notice of the information
which the Community authorities require, and should
have ample opportunity to present all relevant evidence
and to defend their interests; it is also desirable to set
out clearly the rules and procedures to be followed
during the investigation, in particular the rules whereby
interested parties are to make themselves known, present
their views and submit information within 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.

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

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.

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)

(19)

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.

It is necessary to provide for a review of a trade diver-
sion 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, the import trade of products subject to

investigation or subject to measures and also the amount
of duties collected under this Regulation, where applic-
able.

It is also necessary to provide for consultation of an
Advisory Committee at regular and specified stages of
the investigation. That Committee should consist of
representatives of Member States with a representative of
the Commission as chairman. Pursuant to recital 12 of
Council Decision
the Advisory
Committee does not fall under the scope of application
of the abovementioned Council Decision.

1999/468/EC (1),

It is expedient to provide for verification visits to check
information submitted on trends in import volumes and
market disruption, such visits being, however, condi-
tional on proper replies to questionnaires being received.

Provision should be made for the treatment of confiden-
tial information so that business or governmental secrets
are not divulged.

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

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 periods
within which such information has to be presented as
well as the disclosure rights of the parties concerned.

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.

(22)

(23)

(24)

(25)

(26)

(27)

(28)

It is therefore appropriate to repeal Annex II to Regula-
tion (EC) No 519/94 to reflect this phasing out.

(29)

(30)

It is appropriate to increase the quantities already allo-
cated through import licences for 2002 and 2003 in
order to take into account the increase foreseen in the
phasing-out timetable.

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

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

8.3.2003

EN

Official Journal of the European Union

L 65/3

(31)

(32)

(33)

It is appropriate to remove from Annex I to Regulation
(EC) No 519/94 those countries who have become
members of the WTO and to delegate to the Commis-
sion the responsibility for updating the Annex.

It is appropriate, in view of the continued existence of
quotas with regard to certain products of Chinese origin,
to exclude the application of the provisions concerning
such
safeguard and trade diversion measures
for
these
products during the period of application of
quotas.

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

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.

If an action by China or another member of the WTO to
2.
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.

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 abso-
lutely or relatively, so as to be a significant cause of material
injury, or threat of material injury to the Community industry.

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

Determination of significant trade diversion

Significant trade diversion shall exist when an action by
1.
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.

2.
Objective criteria have to be applied in determining
whether actions to prevent or remedy market disruption cause
or threaten to cause significant diversion of trade. Among the
factors to be examined are:

(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;

(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 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

An investigation shall be initiated upon request of a
1.
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.

L 65/4

EN

Official Journal of the European Union

8.3.2003

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.

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 have not led to a
mutually satisfactory solution, the Commission shall publish a
notice in the Official Journal of the European Union.

The notice of initiation of the proceedings shall announce
5.
the initiation of an investigation, the scope of the investigation,
indicate the product concerned, give a summary of the infor-
mation 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 inter-
ested parties may apply to be heard by the Commission in
accordance with Article 6(4).

6.
Except for good cause, no investigation concerning safe-
guard 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

1.
Following the initiation of the proceeding, the Commis-
sion shall commence an investigation. Such investigation shall
cover both the existence of
increased imports 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 representative finding, an
investigation period shall be selected. Information relating to a
period subsequent to the investigation period shall, normally,
not be taken into account.

2.
The Commission shall seek all information it deems to be
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.

The Commission may request Member States to supply
3.
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.

The interested parties which have made themselves
4.
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 European
Union, 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 take account of the need to preserve confi-
dentiality 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 informa-
tion provided under this paragraph shall be taken into account
by the Commission in so far as it is subsequently confirmed in
writing.

6.
The interested parties which have made themselves
known in accordance with Article 5(5) and the Government of
China, may, upon written request, inspect all information made
available to the Commission by any party to an investigation,
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.

For proceedings initiated pursuant

to Article 5(4) an
7.
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
further maximum period of two months; the Commission shall
then publish a notice in the Official Journal of the European Union
setting forth the duration of the extension and a summary of
the reasons therefor.

Article 7

Imposition of provisional safeguard measures

Provisional safeguard measures shall be applied in critical
1.
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.

8.3.2003

EN

Official Journal of the European Union

L 65/5

2. Where a Member State requests immediate intervention
by the Commission and where the conditions in paragraph 1
are met, the Commission shall, within a maximum of five
working days of receipt of the request, take a decision.

3. Where the imposition of a measure by the Commission
has been requested by a Member State, the Commission shall
take a decision within a maximum of five working days of
receipt of such a request.

3.
The Commission shall forthwith inform the Council and
the Member States of any decision taken under paragraphs 1
and 2. The Council, acting by a qualified majority, may decide
differently within three months of having been informed by the
Commission pursuant to this paragraph.

4.
Any decision taken by the Commission pursuant to this
Article shall be communicated to the Council and to Member
States. Any Member State may, within one month following
the day of such communication, refer the decision to the
Council.

Provisional safeguard measures can,

4.
inter alia, take the
form of customs duties and quantitative restrictions of imports
originating in China.

If a Member State refers the Commission's decision to the
the Council, acting by a qualified majority, may

5.
Council,
confirm, amend or revoke the decision.

The duration of the provisional measures shall not exceed

5.
200 days.

6.
Should the provisional safeguard measure be repealed
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 Regula-
tion (EEC) No 2913/92 of 12 October 1992 establishing the
Community Customs Code (1) shall apply.

If, within three months of the referral of the matter to the
Council, the Council has not taken a decision, the decision
taken by the Commission shall be deemed revoked.

6. Where the interests of the Community so require, the
Council, acting by a qualified majority on a proposal from the
Commission drawn up in accordance with the terms of this
title, may adopt the appropriate measures.

Article 8

Termination without measures

Where, after consultation with Member States, safeguard or
trade diversion measures are unnecessary and there is no objec-
tion raised within the Advisory Committee, the investigation or
proceeding shall be terminated by Commission decision. In all
other cases, the Commission shall submit to the Council forth-
with a report on the results of the consultation, together with a
proposal for a Council regulation that the proceeding be termi-
nated. 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

1. Where the facts as finally established show that the condi-
tions laid down in Articles 1, 2 and 3, as appropriate, are met,
and the Community interest calls for intervention in accor-
dance with Article 19, the Commission shall request consulta-
tions with the Government of China with a view to seeking a
mutually satisfactory solution.

2.
If the consultations referred to in paragraph 1 of this
Article do not lead to a mutually satisfactory solution within
60 days of the receipt of a request for consultations, a definitive
safeguard or trade diversion measure shall be imposed after
consultation with Member States.

Definitive measures can,

7.
take the form of
customs duties and quantitative restrictions of imports origi-
nating in China.

inter alia,

Article 10

Regional measures

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

that

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).

(1) OJ L 302, 19.10.1992, p. 1; Regulation as last amended by Regula-
tion (EC) No 2700/2000 of the European Parliament and of the
Council (OJ L 311, 12.12.2000, p. 17).

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.

L 65/6

EN

Official Journal of the European Union

8.3.2003

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.

2.
Extensions shall be adopted in accordance with the proce-
dures 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, consulta-
tions 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.

4. Where, as a result of the consultations referred to in para-
graph 3, the Commission considers that any safeguard measure
should be revoked or amended, it shall proceed as follows:

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

the
Commission shall propose to the Council that it be revoked
or amended. The Council shall act by a qualified majority;

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

the safeguard measures.

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 Regulation
has notified the WTO Committee on Safeguards of any modifi-
cation of that action.

Paragraphs 3 and 4 of Article 12 apply mutatis mutandis

2.
to trade diversion measures.

Article 14

General provisions

Provisional or definitive measures shall be imposed by
1.
regulation. If the measures take the form of duties, 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.

2.
Regulations imposing provisional or definitive measures,
and regulations or decisions terminating or suspending investi-
gations or proceedings, shall be published in the Official Journal

the European Union. Such regulations or decisions shall
of
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 determina-
tions 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
Regulation (EEC) No 2913/92, 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 nine 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,
be reinstated if the reason for suspension is no longer applic-
able.

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 Article 5(3) and Article 9(1) shall take
place within an Advisory Committee, which shall consist of
representatives of each Member State, with a representative of
the Commission as chairman. Consultations shall be held
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

2.
shall meet when convened by its
chairman. He/she 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 consulta-
tion can be held within a period of time which allows the time
limits set by this Regulation to be adhered to.

8.3.2003

EN

Official Journal of the European Union

L 65/7

Article 16

Verification visits

may be disregarded unless it can be satisfactorily demonstrated
from appropriate sources that
the information is correct.
Requests for confidentiality shall not be rejected arbitrarily.

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

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 Regula-
tion 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 legitimate interests of the parties concerned that
their business or governmental secrets should not be divulged.

The Commission may carry out investigations in third
2.
countries, provided that it obtains the agreement of the parties
concerned, that it notifies the government of the country in
question and that the latter does not object to the investigation.
As soon as the agreement of 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 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.

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

Article 17

Confidentiality

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
information
permission from the
between the Commission, the Council and Member States, or
any information relating to consultations made pursuant to
Article 12, or consultations described in Article 5(3) and Article
9(1), or any internal documents prepared by the authorities of
the Community or its Member States, shall not be divulged to
the public or any party to the proceeding except as specifically
provided for in this Regulation.

supplier. Exchanges of

Information received pursuant to this Regulation shall be

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

Article 18

Disclosure

1.
(for
Any information which is by nature confidential,
example, because its disclosure would be of significant compe-
titive advantage to a competitor or would have a significantly
adverse effect upon a person supplying the information or
upon a person from whom he/she has acquired the informa-
tion) 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
submitted in confidence.
In exceptional circumstances, such
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.

If it is considered that a request for confidentiality is not
3.
warranted and if
the information is either
unwilling to make the information available or to authorise its
disclosure in generalised or summary form, such information

the supplier of

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.

2.
The parties mentioned in paragraph 1 may request final
disclosure of the essential facts and considerations on the basis
of which it is intended to recommend the imposition of defini-
tive safeguard or trade diversion measures, or the termination
of an investigation or proceedings without 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.

Requests for final disclosure shall be addressed to the
3.
Commission in writing and be received, in cases where a provi-
sional 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.

L 65/8

EN

Official Journal of the European Union

8.3.2003

Final disclosure shall be given in writing. It shall be made,
4.
due regard being had to the protection of confidential informa-
tion, 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 Arti-
cles 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
these shall be
on any different
disclosed as soon as possible.

facts and considerations,

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.

The Commission shall examine the information which is
5.
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.

6.
The parties which have acted in conformity with para-
graph 2 may request the facts and considerations on 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.

Information shall only be taken into account where it is

7.
supported by actual evidence which substantiates its validity.

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 determi-
nation 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
where the authorities, on the basis of all
the information
submitted, can clearly conclude that it is not in the Community
interest to apply such measures.

2.
In order to provide a sound basis on which the authori-
ties can take account of all views and information in the deci-
sion 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.

TITLE II

QUOTAS FOR CERTAIN PRODUCTS ORIGINATING IN CHINA

Article 20

Principles and phasing-out of quotas

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

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 Regulation (EC) No 519/94.

Article 21

Attribution of import licences

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

1.
The allocation method for the additional quantities for
the years 2002 and 2003 resulting from the quota increases
provided for in Annex II and an appropriate period of the time
for their utilisation shall be established by a Commission Regu-
lation.

The parties which have acted in conformity with para-
4.
graph 2 may provide comments on the application of any
provisional measures
shall be
received within one month of the application 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.

imposed. Such comments

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.

(1) OJ L 66, 10.3.1994, p. 1; Regulation as last amended by Regulation

(EC) No 138/96 (OJ L 21, 27.1.1996, p. 6).

8.3.2003

EN

Official Journal of the European Union

L 65/9

TITLE III

GENERAL AND FINAL PROVISIONS

Article 23

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 Regulation (EC) No 519/94 are hereby
repealed.

from China

subject

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

after

consultation of

The Commission may,

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

1.
This Regulation shall be without prejudice to the opera-
tion of the instruments establishing the common organisation
of agricultural markets or of Community or national adminis-
trative provisions derived therefrom or of the specific instru-
ments 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 shall not apply to those products
in respect of which such instruments as referred to in para-
graph 1 provide for the application of quantitative import
restrictions.

3.
The provisions of Title I shall not apply to products
subject to quotas set out in Annex I while such quotas are in
force.

4. 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 its
publication in the Official Journal of the European Union. Title I
shall expire on 11 December 2013.

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

Done at Brussels, 3 March 2003.

For the Council

The President

A.-A. TSOCHATZOPOULOS

L 65/10

EN

Official Journal of the European Union

8.3.2003

ANNEX I

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

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

73 139

84 110

Removal

6912 00

55 334

63 634

Removal

Tableware kitchenware of porcelain or
china

Ceramic tableware, kitchenware, other than
of porcelain or china

(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 neutralise 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 neutralise impact or materials such as low-density polymers.

8.3.2003

EN

Official Journal of the European Union

L 65/11

ANNEX II

Increase in the quotas for 2002 and 2003

Product description

HS/CN code

2002

2003

Footwear

ex 6402 99 (1)

10,25 %

15,5 %

21,28 %

32,83 %

10,25 %

21,28 %

6403 51
6403 59

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

Tableware, kitchenware of porcelain or china

Ceramic tableware, kitchenware, other than of porcelain or
china

ex 6404 11 (2)

10,25 %

6404 19 10

10,25 %

6911 10

6912 00

32,25 %

32,25 %

21,28 %

21,28 %

52,09 %

52,09 %

(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 neutralise 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 neutralise impact or materials such as low-density polymers.