Proposal for a Council Regulation opening and providing for the administration of a tariff quota for imports of canned tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70
Date: 2003-03-27
Institutions: European Commission
Subjects: Philippines, Thailand, common tariff policy, fishery product, import (EU), preserved product, tariff quota, trade relations

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.3.2003
COM(2003) 141 final

2003/0313 (ACC)

Proposal for a

COUNCIL REGULATION

opening and providing for the administration of a tariff quota for imports of canned
tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70

(presented by the Commission)

EXPLANATORY MEMORANDUM

At  the  WTO  Ministerial  Conference  in  Doha  in  November  2001  both  the  Philippines  and
Thailand joined the consensus on the EC request for a waiver under Article IX.3 of the WTO
Agreement on the preferences afforded to ACP states as described in the Cotonou Agreement.
They did so subsequent to an agreement with the EC to enter into expeditious consultations to
examine the extent to which their legitimate interests are being unduly impaired as a result of
the implementation of the preferential tariff treatment for canned tuna originating in the ACP
states. While imports of canned tuna from the ACP states enjoyed duty free access, Thailand
and the Philippines were both subject to a MFN duty of 24%.

After  these  consultations  failed  to  achieve  a  mutually  acceptable  solution  the  EC,  Thailand
and the Philippines agreed to refer the matter to mediation under the auspices of the WTO.

On 20 December 2002 the Mediator issued an advisory opinion whereby the most equitable
means  to  address  the  situation  would  be  for  the  EC  to  open  a  MFN-based  tariff  quota  of
25,000 tons for 2003 at an in-quota tariff rate of 12% ad valorem.

The  Commission  considers  that  this  opinion  represents  a  reasonable  proposal.  From  an
economic  point  of  view,  the  establishment  of  a  tariff  quota  of  25,000  tons  at  a  12%  ad
valorem  tariff  rate  will  not  prejudice  either  ACP  imports  or  EC  production  of  canned  tuna.
This volume represents  4,6%  of the EC consumption in  2000,  9%  of  total  imports  in  2001,
37% of total MFN imports and 15% of ACP imports.

Politically,  acceptance  would  resolve  this  long-standing  problem  with  Thailand  and  the
Philippines.  Both  countries  have  already  indicated  their  readiness  to  accept  the  mediator’s
opinion. A recourse to a WTO panel could thus be avoided.

2

2003/0313 (ACC)

Proposal for a

COUNCIL REGULATION

opening and providing for the administration of a tariff quota for imports of canned
tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Whereas:

(1) 

(2) 

(3) 

(4) 

(5) 

In November 2001 the EC, Thailand and the Philippines agreed to hold consultations
to examine to what extent the Thai and the Philippine legitimate interests were being
unduly impaired  as a result of the implementation  of  the  preferential  tariff  treatment
for canned tuna originating in ACP states. Following the failure to achieve a mutually
acceptable solution, the EC, Thailand and the Philippines agreed to refer the matter to
mediation. On 20 December 2002 the mediator presented its opinion whereby the EC
should open a MFN-based tariff quota of 25,000 tons for 2003 at an in-quota tariff rate
of 12% ad valorem.

Given its desire to resolve this long-standing problem, the Community has decided to
accept  this  proposal.  Therefore,  an  additional  tariff  quota  for  a  limited  volume  of
canned tuna should be opened.

It  is  appropriate  to  allocate  country  specific  shares  of  the  quota  to  those  countries
having  a  substantial  interest  in  supplying  canned  tuna,  on  the  basis  of  the  quantities
supplied  by  each  of  them  under  non-preferential  conditions  during  a  representative
period  of  time.  The  remaining  part  of  the  quota  should  be  available  to  all  other
countries.

The  best  way  of  ensuring  optimal  use  of  the  tariff  quota  is  to  allocate  it  in  the
chronological order of the dates  on  which declarations  of  release  for  free  circulation
are accepted.

In  order  to  ensure  that  the  quota  is  administered  efficiently,  presentation  of  a
certificate of origin should be required for imports of canned tuna from Thailand, the
Philippines and Indonesia, the main suppliers and the main beneficiaries of the quota.

1

OJ C …, …, p. …

3

                                                
(6) 

The measures necessary for the implementation of this Regulation should be adopted
in accordance with Council Decision 1999/468/EC of 28  June 1999  laying  down the
procedures for the exercise of implementing powers conferred on the Commission2.

HAS ADOPTED THIS REGULATION:

Article 1

From 1 July 2003, imports of canned tuna covered by CN codes 1604 14 11, 1604 14 18 and
1604  20  70  originating  in  any  country  shall  be  eligible  for  a  tariff  rate  of  twelve  per  cent
within the limits of the tariff quota opened in accordance with this Regulation.

The tariff quota shall be opened annually for an initial period of five years. Its volume for the
first two years shall be fixed as follows:

Article 2

— 25 000 tons from 1 July 2003 to 30 June 2004,

— 25 750 tons from 1 July 2004 to 30 June 2005.

The tariff quota shall be divided into four parts, as follows:

Article 3

(a)  a  quota  of  52%  of  the  annual  volume,  with  the  order  number  09.2005,  for  imports
originating in Thailand, and

(b)  a  quota  of  36  %  of  the  annual  volume,  with  the  order  number  09.2006,  for  imports
originating in the Philippines, and

(c)  a  quota  of  11  %  of  the  annual  volume,  with  the  order  number  09.2007,  for  imports
originating in Indonesia, and

(d)  a  quota  of  1  %  of  the  annual  volume,  with  the  order  number  09.2008,  for  imports
originating in other third countries.

2

OJ L 184, 17.7.1999, p. 23.

4

                                                
Article 4

1. The origin of canned tuna qualifying for the tariff quota shall be determined in accordance
with the provisions in force in the Community.

2.  Qualification  for  the  share  of  the  tariff  quota  allocated  to  Thailand,  the  Philippines  and
Indonesia,  in  accordance  with  Article  3  shall  be  subject  to  presentation  of  a  certificate  of
origin  meeting  the  conditions  laid  down  in  Article  47  of  Commission  Regulation  (EEC)
No 2454/933.

Certificates of origin shall be accepted only if the products meet the criteria for determining
origin set out in the provisions in force in the Community.

The tariff quota shall be administered by the Commission in accordance with Articles 308a,
308b and 308c of Regulation (EEC) No 2454/93.

Article 5

Article 6

This Regulation may be revised during the second year after the tariff quota is opened in order
to  adapt  the  volume  of  the  quota  to  the  needs  of  the  Community  market.  If,  however,  this
revision  is  not  completed  three  months  before  the  30  June  2005,  the  quota  shall  be
automatically extended for a further year for a volume of 25 750 tons. Subsequently the tariff
quota  shall  be  extended  regularly  for  one  year  at  a  time  and  for  the  same  volume  unless  a
revision is adopted not later than three months before the closure of the current quota.

Article 7

The measures necessary for the implementation of this Regulation, including the amendments
and  adjustments  required  by  amendments  to  the  Combined  Nomenclature  and  the  TARIC,
shall be adopted in accordance with the procedure referred to in Article 8(2).

Article 8

1. The Commission shall be assisted by the Customs Code Committee (hereinafter referred to
as ‘the Committee’) set up by Article 247a of Council Regulation (EEC) No 2913/924.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall
apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months.

3

4

OJ L 253, 11.10.1993, p. 1.
OJ L 302, 19.10.1992, p. 1.

5

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

Article 9

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

Done at Brussels,

For the Council
The President

6

1.

2.

3.

4.

5.

5.0

5.1

6.0

6.1

FINANCIAL STATEMENT

[…]

DATE: 06/03/2003
APPROPRIATIONS:
10 713 900 000

BUDGET HEADING:
Chapter 12, Article 120
TITLE:
Proposal to adopt a Council Regulation to open a quota for canned tuna of 25.000 tons at 12% import
duty.
LEGAL BASIS:
Article 133 of the Treaty establishing the European Community
AIMS:
The quota is to be opened as a result of a WTO mediation process to resolve a trade dispute concerning
imports of canned tuna from Thailand and the Philippines.
FINANCIAL IMPLICATIONS

12 MONTH
PERIOD

(EUR million)

CURRENT
FINANCIAL
YEAR
2003
(EUR million)

FOLLOWING
FINANCIAL
YEAR
2004
(EUR million)

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

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

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:

-4.47

-4.60

2005

2006

2007

2008

[Not known]

[Idem]

[Idem]

[Idem]

The cost of the operation has been based on trade between 1999 and 2002.  Due to the unpredictable
levels of trade an average estimated annual value has been calculated.  The import duty to be levied on
the quota amount (25.000 tons) is 50% of MFN rate of duty.  The quota amount will be increased in 2004
by 3% and further increases will require agreement of all Parties.
CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
THE CURRENT BUDGET?

NO

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS:
The proposed operation will cause a reduction in import duties levied on canned tuna from MFN trade partners
(currently 24%), in particular from Thailand, Philippines and Indonesia. The rate that will be applied is 12%, i.e.
revenue will be reduced by 50% on first 25000 tons they export to EC.
As the entry into force of the quota will take place in the course of the year 2003 (i.e June/July), the estimated
cost will be made as though 2003 is year one, 2004 is year two. Whilst we understand that the quota is likely to
be filled by December, there is no way of predicting this accurately; hence the figure for 2003 could be less with
a corresponding increase for FY 2004. The figures quoted are net assuming Member States have deducted 25%
for collection costs.

NO
NO
NO

7