Proposal for a Council Decision modifying the Community import regime with respect to rice
Date: 2004-07-07
Institutions: European Commission
Subjects: CCT duties, import policy, originating product, rice, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.7.2004 
COM(2004) 484 final 

2004/0144 (ACC) 

Proposal for a 

COUNCIL DECISION 

modifying the Community import regime with respect to rice 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On 26 June 2003, the Council authorised the Commission to notify the WTO that the 
European  Community  intended  to  modify  concessions  on  items  1006  20  (husked 
rice), 1006 30 (milled rice) included in Schedule CXL of the European Community 
annexed to GATT. Accordingly, the European Community has notified the WTO on 
2 July 2003 of its intention to modify certain concessions in EC Schedule CXL. 

Negotiations  have  been  conducted  by  the  Commission  in  consultation  with  the 
Committee established by Article 133 of the EC Treaty and within the framework of 
the negotiating directives issued by the Council. 

The  Commission  has  negotiated  with  the  United  States  of  America,  having  a 
principal supplying interest in products of HS subheading1006 20 (husked rice) and 
substantial  supplier  interest  in  products  of  HS  subheading  1006  30  (milled  rice), 
Thailand,  having  a  principal  supplying  interest  in  products  of  HS  subheading  1006 
30 (milled rice) and substantial supplier interest in products of HS subheading 1006 
20 (husked rice) and India and Pakistan, each having a substantial supplier interest in 
products of HS subheading 1006 20 (husked rice). 

In spite of its efforts, the Commission could not negotiate an acceptable agreement 
with the United States and Thailand. 

The Commission has negotiated an agreement in the form of an exchange of letters 
with India and Pakistan.  

This  proposal  asks  the  Council  to  establish  a  new  tariff  rate  for  husked  and  milled 
rice. Once the Council adopts the present Decision, the Commission will notify the 
WTO of the necessary changes to the European Community’s Schedule CXL. 

As the necessary modifications to Council Regulation (EC) N° 1785/2003 require the 
European  Parliament’s  opinion  is  required  it  is  necessary  to  provide  for  the 
Commission  to  put  in  place  the  necessary  transitional  arrangements.  Therefore,  in 
order to ensure the application of these two agreements from 1 September 2004, the 
two decisions enable the Commission to derogate from Council Regulation (EC) N° 
1785/2003 for a transitional period, i.e. until the modification has entered into force, 
but not later than 30 June 2005. 

The  Commission  will  present  a  proposal  for  the  necessary  modification  to  the 
Council Regulation as soon as possible. 

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2004/0144 (ACC) 

Proposal for a 

COUNCIL DECISION 

modifying the Community import regime with respect to rice 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133 in conjunction with the first sentence of the first subparagraph of Article 300(2) 
thereof, 

Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

On 26 June 2003, the Council authorised the Commission to open negotiations under 
Article XXVIII of the GATT 1994 with a view to modify certain concessions for rice. 
Accordingly,  the  European  Community  notified  the  WTO  on  2  July  2003  of  its 
intention to modify certain concessions in EC Schedule CXL. 

Negotiations  have  been  conducted  by  the  Commission  in  consultation  with  the 
Committee established by Article 133 of the Treaty and within the framework of the 
negotiating directives issued by the Council. 

The Commission has negotiated with the United States of America, having a principal 
supplying interest in products of HS subheading1006 20 (husked rice) and substantial 
supplier interest in products of HS subheading 1006 30 (milled rice), Thailand, having 
a principal supplying interest in products of HS subheading1006 30 (milled rice) and 
substantial supplier interest in products of HS subheading 1006 20 (husked rice) and 
India  and  Pakistan,  each  having  a  substantial  supplier  interest  in  products  of  HS 
subheading 1006 20 (husked rice).  

The Commission has negotiated an agreement with India and Pakistan in the form of 
an exchange of letters but has not been able to negotiate an acceptable agreement with 
the United States of America and Thailand. 

In  order  to  allow  the  modifications  of  certain  concessions  concerning  husked  and 
milled rice in European Communities Schedule CXL, a new tariff rate for husked and 
milled rice should be established. 

1 

OJ C […], […], p. […]. 

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(6) 

(7) 

As the fixing of a new tariff rate for husked and milled rice requires modification of 
Council  Regulation  (EC)  No  1785/2003  of  29  September  2003  on  the  common 
organisation  of  the  market  in  rice2,  the  Commission  should  be  authorised  to  adopt 
temporary derogations from that Regulation 

The measures necessary for the implementation of this Decision 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 Commission3, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The tariff rate for husked rice (CN code 1006 20) shall be 65€/ton. 

The tariff rate for milled rice (CN code 1006 30) shall be 175€/ton. 

Article 2 

To the extent necessary to permit the full application of this decision by 1 September 2004, 
the  Commission  may  derogate  from  Council  Regulation  (EC)  No  1785/2003,  in  accordance 
with  the  procedure  referred  to  in  Article  3(2)  of  this  Decision,  until  that  Regulation  is 
amended but at the latest until 30 June 2005. 

Article 3 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Management  Committee  for  Cereals 
instituted by Article 25 of Regulation (EEC) No 1784/2003. 

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

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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3 

OJ L 270, 21.10.2003, p. 96.  
OJ L 184, 17.7.1999, p. 23. 

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FINANCIAL STATEMENT 

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2. 

3. 

4. 

BUDGET HEADING: 
Article 100 

APPROPRIATIONS:
EUR 839.1 Mio. 

TITLE: 
Proposal for a Council decision concerning the modification of certain concessions with respect to rice 
provided for in Schedule CXL annexed to the GATT. 

LEGAL BASIS: 
Article 133 of the Treaty 

AIMS: 
To modify concessions with respect to rice provided for in Schedule CXL annexed to the GATT. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR  2004 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2005 
(EUR million) 

- 

(1) 

- 

- 

- 

(1) 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
- 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

2006 
- 
(1) 

2007 
- 
(1) 

2008 
- 
(1) 

2009 
- 
(1) 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES / NO 

YES / NO 

YES / NO 

YES / NO 

OBSERVATIONS: 

(1) 

The measure should not lead to a change in own resources. 

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