Proposal for a Council Regulation amending Regulation (EEC) No 3491/90 on imports of rice originating in Bangladesh
Date: 2007-10-23
Institutions: European Commission
Subjects: Bangladesh, CCT duties, import, originating product, rice

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.10.2007 
COM(2007) 629 final 

2007/0221 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EEC) No 3491/90 on  
imports of rice originating in Bangladesh 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The purpose of this proposal is to amend Council Regulation (EEC) No 3491/90 so 
as to make it clear what factors are to be taken into account for calculating the import 
duties applicable to rice originating in Bangladesh imported under that Regulation. 

•  Background 

Since  Regulation  (EEC)  No 3491/90  was  adopted,  numerous  changes  have  been 
made  to  the  horizontal  rules  for  calculating  the  rates  of  duty  applicable  to  imports 
under Article 1 of the Regulation in question though the Regulation has not actually 
been amended, which means that there are liable to be diverging interpretations. 

•  Provisions in force in the area of the proposal 

Article  1  of  Regulation  (EEC)  No 3491/90  on  imports  of  rice  originating  in 
Bangladesh1 provides for the following reductions in duties: 

“1.  For  imports  originating  in  Bangladesh  and  within  the  limits  of  the  quantities  laid 
down in Article 2, the import levy on rice falling within CN codes 1006 10 (excluding 
CN code 1006 10 10), 1006 20 and 1006 30 shall be equal to the levy applicable on 
imports from third countries, minus: 

a) 

for paddy rice falling within CN code 1006 10, excluding CN code 1006 10 10:  

– 

– 

50%, and  

ECU 3.6; 

b) 

for husked rice falling within CN code 1006 20: 

– 

– 

50%, and  

ECU 3.6; 

c) 

for semi-milled and wholly-milled rice falling within CN code 1006 30: 

– 

the  amount  for  the  protection  of  the  industry  referred  to  in  Article  14(3)  of 
Regulation  (EEC)  No 1418/76  (2),  as  last  amended  by  Regulation  (EEC) 
No 1806/89  (3),  in  the  case  of  semi-milled  rice,  converted  in  line  with  the 
conversion  rate  for  wholly-milled  and  semi-milled  rice  as  referred  to  in  the 
third indent of Article 19 (a) of that Regulation, minus 50% and  

– 

ECU 5.4.” 

1 

OJ L 337, 4.12.1990, p. 1. 

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Detailed  rules  for  the  application  of  the  Regulation  were  laid  down  by  Regulation 
(EEC) No 862/912, Article 1 of which originally read: 

“The  amounts  of  the  levies  referred  to  in  Article  1(1)  of  Regulation  (EEC) 
No 3491/90  shall  be  calculated  each  week  by  the  Commission  on  the  basis  of  the 
levies laid down in accordance with Article 11 of Regulation (EEC) No 1418/76.” 

Commission  Regulation  (EC)  No 2123/953  replaced  this  Article  1  on  a  transitional 
basis from 1 July 1995 to 30 June 1996 by the following: 

“The customs duties referred to in Article 1(1) of Regulation (EEC) No 3491/90 shall 
be calculated each week by the Commission as follows: 

•  the duty applicable to imports of paddy rice falling within CN code 1006 10, with 
the  exception  of  that  falling  within  CN  code  1006  10  10,  shall  be  equal  to  the 
customs duties set out in the Common Customs Tariff less 50%, less ECU 4.34, 

•  the duty applicable to imports of husked rice falling within CN code 1006 20 shall 
be  equal  to  the  duty  fixed  pursuant  to  Article  12(2)  of  Regulation  (EEC) 
No 1418/76 less 50%, less ECU 4.34, 

•  the applicable rate for imports of milled rice falling within CN code 1006 30 shall 
be  equal  to  the  duty  fixed  in  accordance  with  Article  12(2)  of  Regulation  (EC) 
No 1418/76, less ECU 16.78, less 50%, less ECU 6.52.” 

This  amendment  was  then  reiterated  annually  by  Regulations  (EC)  No 1373/964, 
(EC) No 1407/975 and lastly by Regulation (EC) No 1482/986, the legal basis being 
Council Regulation (EC) No 3290/94 of 22 December 1994 on the adjustments and 
transitional arrangements required in the agriculture sector in order to implement the 
agreements concluded during the Uruguay Round of multilateral trade negotiations7. 
However,  this  legal  basis  only  allowed  transitional  measures  to  be  taken  until 
30 June 1999. 

Nonetheless,  since  1  July  1999  the  amounts  of  the  customs  duties  referred  to  in 
Regulation  (EEC)  No 3491/90  have  continued  to  be  calculated  in  accordance  with 
Article  1  of  Regulation  (EEC)  No 862/91,  as  amended  by  Regulations  (EC) 
No 2123/95,  (EC)  No 1373/96,  (EC)  No 1407/97  and  (EC)  No 1482/98.  The 
following  aspects  of  Community  law,  although  not  explicitly  incorporated  into 
Regulation (EEC) No 3491/90 to date, are applicable: 

a) 

under  Regulation  (EC)  No 3290/94,  all  the  measures  restricting  imports  of 
agricultural  products,  including  variable  import  levies,  were  converted  into 
customs duties from 1 July 1995; 

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3 
4 
5 
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7 

OJ L 88, 9.4.1991, p. 7. 
OJ L 212, 7.9.1995, p. 8. 
OJ L 178, 17.7.1996, p. 5. 
OJ L 194, 23.7.1997, p. 13. 
OJ L 195, 11.7.1998, p. 14. 
OJ L 161, 26.6.1996, p. 1. 

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b) 

c) 

to avoid harming the interests of Bangladesh, the amount for the protection of 
the  industry  referred  to  in  Article  1  of  Regulation  (EEC)  No 3491/90  was 
replaced by a fixed amount of ECU 16.78 under Regulation (EC) No 2123/95 
et seq referred to above. Moreover, the concept of “amount for the protection 
of the industry” was abolished from 1 July 2006 pursuant to the amendment to 
Regulation  (EC)  No 1785/2003  on  the  common  organisation  of  the  market  in 
rice8 introduced by Regulation (EC) No 797/20069; 

the  switch-over  mechanism  (or  “green  ecu”)  introduced  in  1984  in  the 
Community agri-monetary system was abolished on 1 February 1995. At that 
point CAP prices and amounts expressed in ecus were increased by applying a 
correcting  factor  of  1.207509,  to  cancel  out  the  effects  of  bringing  the 
conversion rates used in agriculture back to a realistic level. These provisions 
were  adopted  under  Council  Regulation  (EC)  No  150/9510  amending 
Regulation (EEC) No 3813/92 on the unit of account and the conversion rates 
to be applied for the purposes of the common agricultural policy11 which was 
repealed and replaced as from 1 January 1999 by Regulation (EC) No 2799/98 
establishing agrimonetary arrangements for the euro12. From 1 February 1995 
the coefficient of 1.207509 was therefore applied to the amounts provided for 
in  Article  1  of  Regulation  (EEC)  No 3491/90,  corresponding  to  the  amounts 
provided  for  in  Article  1  of  Regulation  (EEC)  No 862/91,  as  amended  by 
Regulation (EC) No 2123/95 et seq. 

From  1  January  2007  Regulation  (EEC)  No 862/91  was  repealed  and  replaced  by 
Regulation  (EC)  No 1964/2006,  which  contains  no  provisions  on  the  rules  for 
calculating the duty applicable to imports of rice originating in Bangladesh. 

Regulation (EEC) No 3491/90 should therefore be amended accordingly. 

•  Consistency with the other policies and objectives of the Union 

As a clarification of legislation, the proposal is consistent with the objectives of the 
Union. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Not applicable. 

•  Collection and use of expertise 

No recourse to external expertise has been necessary. 

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9 
10 
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12 

OJ L 270, 21.10.2003, p. 96. 
OJ L 144, 31.5.2006, p. 1. 
OJ L 22, 31.1.1995, p. 1. 
OJ L 387, 31.12.1992, p. 1. 
OJ L 349, 24.12.1998, p. 1. 

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•  Impact assessment 

The provisions proposed exactly reflect those currently applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The purpose of this proposal is to adapt Regulation (EEC) No 3491/90 to the changes 
to the horizontal rules made since its adoption as regards calculating the rates of duty 
applicable to imports. 

•  Legal basis 

Treaty establishing the European Community, and in particular Article 133 thereof. 

•  Subsidiarity principle 

The  proposal  concerns  an  area  that  falls  under  exclusive  Community  competence. 
The subsidiarity principle does not therefore apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle. 

•  Choice of instruments 

Proposed instrument: regulation. 

Other  means  would  not  be  appropriate  for  the  following  reason:  an  existing 
Regulation needs to be amended. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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2007/0221 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EEC) No 3491/90 on  
imports of rice originating in Bangladesh 

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, 

Whereas: 

(1) 

(2) 

Article 1 of Council Regulation (EEC) No 3491/90 of 26 November 1990 on imports 
of rice originating in Bangladesh13 provides for reductions in the import levies on rice 
imports  from  that  country.  Those  reductions  corresponded,  on  the  one  hand,  to 
amounts  fixed  in  ecus  and,  on  the  other,  to  the  amount  for  the  protection  of  the 
industry  referred  to  in  Article  14(3)  of  Council  Regulation  (EEC)  No 1418/76  of 
21 June 1976 on the common organisation of the market in rice14. 

Since  the  arrangement  was  adopted,  numerous  changes  have  been  made  to  the 
horizontal rules applicable, but Regulation (EEC) No 3491/90 has not been amended 
accordingly. The factors for calculating the duties applicable to imports provided for in 
Article 1 of the said Regulation must be applied having regard to the horizontal rules 
concerned, thereby running the risk of divergent interpretations. 

(3)  More  particularly,  from  1 July  1995,  variable  import  levies  were  converted  into 
customs  duties,  following  the  adoption  of  Council  Regulation  (EC)  No 3290/94  of 
22 December  1994  on  the  adjustments  and  transitional  arrangements  required  in  the 
agriculture sector in order to implement the agreements concluded during the Uruguay 
Round of multilateral trade negotiations15. 

(4) 

The concept of “amount for the protection of the industry” was abolished from 1 July 
2006 pursuant to the amendment of Regulation (EC) No 1785/2003 of 29 September 

13 
14 

15 

OJ L 337, 4.12.1990, p. 1.  
OJ L 166, 25.6.1976, p. 1. Regulation repealed by Regulation (EC) No 3072/95 (OJ L 329, 30.12.1995, 
p. 18). 
OJ L 349, 31.12.1994, p. 105. Regulation as last amended by Regulation (EC) No 1340/98 (OJ L 184, 
27.6.1998, p. 1). 

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(5) 

2003  on  the  common  organisation  of  the  market  in  rice16  by  Regulation  (EC) 
No 797/200617. 

The  switch-over  mechanism  introduced  in  1984  in  the  Community  agri-monetary 
system,  the  purpose  of  which  was  to  prevent  agricultural  exchange  rates  from 
developing in line with monetary rates, was abolished on 1 February 1995 by Council 
Regulation  (EEC)  No 3813/92  of  28  December  1992  on  the  unit  of  account  and  the 
conversion rates to be applied for the purposes of the common agricultural policy18, as 
amended  by  Regulation  (EC)  No 150/95.  When  Regulation  (EEC)  No 3813/92  was 
replaced  from  1  January  1999  by  Council  Regulation  (EC)  No 2799/98  of 
15 December  1998  establishing  agrimonetary  arrangements  for  the  euro19,  the  prices 
and amounts provided for in the common agricultural policy (CAP) expressed in ecus 
were  increased  in  parallel  by  applying  a  correcting  factor  of  1.207509,  to  cancel  out 
the  effects  of  bringing  the  conversion  rates  used  under  the  CAP  back  to  a  realistic 
level,  and  the  same  coefficient  of  1.207509  was  therefore  applied  from  1  February 
1995 to the amounts provided for in Article 1 of Regulation (EEC) No 3491/90. 

(6) 

Council Regulation (EEC) No 3491/90 should therefore be amended to make it clear 
what factors are to be taken into account for calculating the import duties applicable to 
rice originating in Bangladesh imported under that Regulation. 

(7) 

Regulation (EEC) No 3491/90 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EEC) No 3491/90 is amended as follows: 

1) 

Article 1(1) is replaced by the following: 

“1.  For  imports  originating  in  Bangladesh  and  within  the  limits  of  the  quantities 
laid down in Article 2, the import levy on rice falling within CN codes 1006 10 
(excluding CN code 1006 10 10), 1006 20 and 1006 30 shall be equal: 

– 

– 

for  paddy  rice  falling  within  CN  codes  1006  10,  with  the  exception  of 
CN  code  1006 10 10,  to  the  customs  duties  fixed  in  the  Common 
Customs Tariff, less 50% and less a further EUR 4.34; 

for  husked  rice  falling  within  CN  code  1006  20,  to  the  duty  fixed  in 
accordance with Article 11a of Council Regulation (EC) No 1785/2003*, 
less 50% and less a further EUR 4.34; 

16 
17 
18 

19 

OJ L 270, 21.10.2003, p. 96. Regulation as last amended by Regulation (EC) No 797/2006. 
OJ L 144, 31.5.2006, p. 1. 
OJ  L  387,  31.12.1992,  p.  1.  Regulation  repealed  by  Regulation  (EC)  No 2799/98  (OJ  L  349, 
24.12.1998, p. 1). 
OJ L 349, 24.12.1998, p. 1. 

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– 

for  semi-milled  and  milled  rice  falling  within  CN  code  1006 30,  to  the 
duty fixed pursuant to Article 11c of Regulation (EC) No 1785/2003, less 
EUR 16.78, less a further 50% and less EUR 6.52. 

* 

OJ L 270, 21.10.2003, p. 96.” 

2) 

Article 2(1) is amended as follows: 

a) 

b) 

In the first subparagraph "levy" is replaced by "import duty"; 

the  second  subparagraph  "as 

In 
No 2325/88" is deleted. 

last  amended  by  Regulation  (EEC) 

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

Article 2 

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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