Proposal for a Council Regulation amending Regulation (EC) No 1785/2003 as regards the arrangements for importing rice
Date: 2006-03-03
Institutions: European Commission
Subjects: common organisation of markets, market intervention, rice, trading operation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 03.03.2006 
COM(2006) 98 final 

2006/0028 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1785/2003  
as regards the arrangements for importing rice 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

2. 

On 26 June 2003, the Council authorised the Commission to notify the WTO of the 
intention of the European Community to modify concessions on imports of products 
of  HS  codes  1006 20  (husked  rice)  and  1006 30  (milled  rice)  included  in 
EC Schedule CXL annexed to the GATT. This notification was made on 2 July 2003. 

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

3. 

Agreements have been approved on behalf of the Community as follows: 

– 

– 

– 

– 

with India by Council Decision 2004/617/EC of 11 August 20041, 
with Pakistan by Council Decision 2004/618/EC of 11 August 20042, 
with the United States by Council Decision 2005/476/EC of 21 June 20053, 
with Thailand by Council Decision 2005/953/EC of 20 December 20054. 

4. 

5. 

The above decisions laid down the conditions for fixing import duties in line with the 
nature of the product and the quantities imported, and authorised the Commission to 
derogate  from  Regulation  (EC)  No 1785/2003  on  the  common  organisation  of  the 
market  in  rice  for  a  transitional  period.  This  derogation  was,  however,  limited  to 
30 June 2006.  

Regulation (EC) No 1785/2003 should therefore be amended in order to incorporate 
the amendments to the arrangements applicable to imports of rice which result from 
the above Agreements. 

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OJ L 279, 28.8.2004, p. 17. 
OJ L 279, 28.8.2004, p. 23. 
OJ L 170, 1.7.2005, p. 67. 
OJ L 364, 29.12.2005, p. 24. 

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2006/0028 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1785/2003  
as regards the arrangements for importing rice 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 36 and the third subparagraph of Article 37(2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament5, 

Whereas: 

(1) 

(2) 

(3) 

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Article 10(1) of Council Regulation (EC) No 1785/2003 of 29 September 2003 on the 
common organisation of the market in rice6 requires the presentation of an import or 
export  licence  for  imports  into  the  Community,  or  exports  therefrom,  of  any  of  the 
products listed in Article 1 of that Regulation. To simplify the procedures applicable to 
economic operators, it should be possible to derogate from the obligation to present an 
import licence where it is not required for the management of certain imports of rice. 
The Commission should therefore be permitted to derogate from this obligation. 

Under  the  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European 
Community  and  India  pursuant  to  Article  XXVIII  of  the  GATT  1994  relating  to  the 
modification  of  concessions  with  respect  to  rice  provided  for  in  EC  Schedule  CXL 
annexed  to  the  GATT  19947,  approved  by  Council  Decision  2004/617/EC8,  the  duty 
applicable to imports of husked rice of certain Basmati varieties originating in India is 
fixed at zero. 

Under  the  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European 
Community and Pakistan pursuant to Article XXVIII of the GATT 1994 relating to the 
modification  of  concessions  with  respect  to  rice  provided  for  in  EC  Schedule  CXL 
annexed to the GATT 19949, approved by Council Decision 2004/618/EC10, the duty 
applicable  to  imports  of  husked  rice  of  certain  Basmati  varieties  originating  in 
Pakistan is fixed at zero. 

OJ C …, …, p. … 
OJ L 270, 21.10.2003, p. 96. 
OJ L 279, 28.8.2004, p. 19. 
OJ L 279, 28.8.2004, p. 17. Decision as amended by Decision 2005/476/EC (OJ L 170, 1.7.2005, p. 67). 
OJ L 279, 28.8.2004, p. 25. 
OJ L 279, 28.8.2004, p. 23. Decision as amended by Decision 2005/476/EC. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European 
Community and the United States of America relating to the method of calculation of 
applied  duties  for  husked  rice11,  approved  by  Council  Decision  2005/476/EC12,  lays 
down the mechanism for calculating and fixing at regular intervals the duty applicable 
to imports of husked rice falling within CN code 1006 20. 

The  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European 
Community  and  Thailand  pursuant  to  Article  XXVIII  of  GATT  1994  relating  to  the 
modification  of  concessions  with  respect  to  rice  provided  for  in  EC  Schedule  CXL 
annexed  to  GATT  199413,  approved  by  Council  Decision  2005/953/EC14,  lays  down 
the  mechanism  for  calculating  and  fixing  at  regular  intervals  the  duty  applicable  to 
imports of semi-milled and milled rice falling within CN code 1006 30, and fixes the 
duty  applicable  to  imports  of  broken  rice  falling  within  CN  code  1006 40 00  at 
EUR 65 per tonne. 

The  four  decisions  referred  to  above  all  allow  for  the  Commission  to  derogate  from 
Regulation (EC) No 1785/2003 to permit the full application of the above Agreements. 
Those derogations apply until 30 June 2006 at the latest. 

The provisions of Regulation (EC) No 1785/2003 relating to the fixing of the duty on 
the  different  types  of  rice  covered  by  the  above  Agreements  should  therefore  be 
amended. 

To be eligible for zero import duty, Basmati rice must belong to a variety specified in 
the  Agreements.  To  ascertain  that  the  Basmati  rice  imported  at  a  zero  rate  of  duty 
meets those characteristics, specific rules should be adopted by the Commission. 

Regulation (EC) No 1785/2003 should  therefore be amended accordingly. To ensure 
that these new import arrangements will be retained for operators after the deadline for 
the application of the derogations, this amendment should apply from 1 July 2006, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1785/2003 is hereby amended as follows: 

(1) 

The following paragraph 1a is added to Article 10: 

“1a.  Where an import licence is not required for the management of certain imports 
of rice, the Commission may, in accordance with the procedure referred to in 
the  first 
Article 26(2),  derogate  from 
subparagraph of paragraph 1 of this Article.”  

the  obligation  provided  for 

in 

(2) 

Article 11(2) is deleted. 

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OJ L 170, 1.7.2005, p. 69. 
OJ L 170, 1.7.2005, p. 67. 
OJ L 346, 29.12.2005, p. 26. 
OJ L 346, 29.12.2005, p. 24. 

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(3) 

The following Articles 11a to 11d are added: 

“Article 11a 

1.  Notwithstanding  Article  11(1),  the  import  duty  on  husked  rice  falling  within 
CN code 1006 20 shall be fixed by the Commission within ten days of the end 
of the reference period concerned at: 

(a)  EUR 30 per tonne in the following cases: 

– 

– 

where  it  is  noted  that  the  imports  of  husked  rice  made  over  the 
course  of  the  marketing  year  just  ended  did  not  reach  the  annual 
reference  quantity  referred  to  in  the  first  subparagraph  of 
paragraph 3, less 15%, 

where  it  is  noted  that  the  imports  of  husked  rice  made  over  the 
course of the first six months of the marketing year do not reach the 
partial reference quantity referred to in the second subparagraph of 
paragraph 3, less 15%, 

(b)  EUR 42.5 per tonne in the following cases: 

– 

– 

where  it  is  noted  that  the  imports  of  husked  rice  made  over  the 
course of the marketing year just ended exceed the annual reference 
quantity  referred  to  in  the  first  subparagraph  of  paragraph 3,  less 
15%,  but  do  not  exceed  that  same  annual  reference  quantity  plus 
15%, 

where it is noted that the imports of  husked  rice  made  in  the  first 
six  months  of  the  marketing  year  exceed  the  partial  reference 
quantity referred to in the second subparagraph of paragraph 3, less 
15%,  but  do  not  exceed  that  same  partial  reference  quantity  plus 
15%, 

(c)  EUR 65 per tonne in the following cases: 

– 

– 

where  it  is  noted  that  the  imports  of  husked  rice  made  over  the 
course of the marketing year just ended exceed the annual reference 
quantity  referred  to  in  the  first  subparagraph  of  paragraph  3,  plus 
15%, 

where  it  is  noted  that  the  imports  of  husked  rice  made  over  the 
course  of  the  first  six  months  of  the  marketing  year  exceed  the 
partial reference quantity referred to in the second subparagraph of 
paragraph 3, plus 15%. 

The  Commission  shall  fix  a  new  applicable  duty  only  if  the  calculations 
performed under this paragraph indicate a need to change it. Until such time as 
a new applicable rate is fixed, the duty previously fixed shall apply. 

2. 

In  order  to  calculate  the  imports  referred  to  in  paragraph  1,  account  shall  be 
taken of the quantities for which import licences for husked rice falling within 
CN code 1006 20 were issued under the first subparagraph of Article 10(1) in 

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the corresponding reference period, except for the import licences for Basmati 
rice referred to in Article 11b. 

3. 

The  annual  reference  quantity  shall  be  437 678  tonnes  for  the  2005/06 
marketing year. This quantity shall be increased by 6 000 tonnes a year for the 
2006/07 and 2007/08 marketing years. 

The partial reference quantity for each marketing year shall correspond to half 
the annual reference quantity referred to in the first subparagraph. 

Article 11b 

Notwithstanding  Article  11(1),  the  husked  Basmati  rice  varieties  falling  within 
CN codes 1006 20 17 and 1006 20 98 listed in Annex IIIa shall qualify for a zero rate 
of import duty under the conditions fixed by the Commission in accordance with the 
procedure referred to in Article 26(2). 

Article 11c 

1.  Notwithstanding  Article  11(1),  the  import  duty  for  semi-milled  or  wholly 
milled rice falling within CN code 1006 30 shall be fixed by the Commission 
within ten days after the end of the reference period concerned at: 

(a)  EUR 175 per tonne in the following cases: 

– 

– 

where it is noted that imports of semi-milled and wholly milled rice 
during the marketing year just ended exceed 387 743 tonnes; 

where it is noted that imports of semi-milled and wholly milled rice 
during  the  first  six  months  of  the  marketing  year  exceed 
182 239 tonnes; 

(b)  EUR 145 per tonne in the following cases: 

– 

– 

where it is noted that imports of semi-milled and wholly milled rice 
during the marketing year just ended do not exceed 387 743 tonnes; 

where it is noted that imports of semi-milled and wholly milled rice 
during  the  first  six  months  of  the  marketing  year  do  not  exceed 
182 239 tonnes. 

The  Commission  shall  fix  a  new  applicable  duty  only  if  the  calculations 
performed under this paragraph indicate a need to change it. Until such time as 
a new applicable rate is fixed, the duty previously fixed shall apply. 

2.  When calculating imports as referred to in paragraph 1, account shall be taken 
of  the  quantities  for  which  import  licences  for  semi-milled  or  wholly  milled 
rice falling within CN code 1006 30 were issued under the first subparagraph 
of Article 10(1) during the corresponding reference period. 

Article 11d 

Notwithstanding Article 11(1), the import duty on broken rice falling within CN code 
1006 40 00 shall be EUR 65 per tonne.” 

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(4) 

The Annex to this Regulation shall be added as Annex IIIa. 

Article 2 

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

It shall apply from 1 July 2006. 

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

Done at Brussels, 

For the Council 
The President 

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ANNEX 

“ANNEX IIIa 

Varieties of Basmati rice referred to in Article 11b 

Basmati 217 

Basmati 370 

Basmati 386 

Kernel (Basmati) 

Pusa Basmati 

Ranbir Basmati 

Super Basmati 

Taraori Basmati (HBC-19) 

Type-3 (Dehradun)” 

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