Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the allocation of tariff-rate quotas applying to exports of wood from the Russian Federation to the European Union
Date: 2012-08-09
Institutions: European Commission
Subjects: Russia, import (EU), import licence, tariff quota, wood product

EUROPEAN COMMISSION 

Brussels, 9.8.2012  
COM(2012) 449 final 

2012/0217 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the allocation of tariff-rate quotas applying to exports of wood from the Russian 
Federation to the European Union 

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EXPLANATORY MEMORANDUM 

In  the  context  of  its  accession  to  the  World  Trade  Organization  (WTO),  the  Russian 
Federation has agreed to reduce its currently applied export duty rates on raw wood products. 
For  certain  types  of  wood,  namely  some  coniferous  wood  species  (i.e.  spruce  and  pine), 
Russia  has  agreed  to  open  tariff-rate  quotas  for  exports  of  those  products  and  allocate  a 
specific  quota  share  to  the  European  Union  (EU).  Export  duty  rates  within  the  tariff-rate 
quotas will be applied at a significantly reduced level (i.e. 13% for spruce and 15% for pine, 
as  opposed  to  an  unbound  current  out-quota  export  duty  rate  of  25%,  but  not  less  than  15 
€/m³). These specific commitments of the Russi an Federation have been included in its WTO 
Schedule of Concessions as Annex to Part V of the Schedule.  

A  bilateral  agreement  in  the  form  of  an  Exchange  of  Letters  (hereinafter  referred  to  as  the 
"Agreement")  establishes  general  provisions  on  the  implementation  of  the  specific  quota 
shares  allocated  to  the  EU.  In  particular,  the  Agreement  provides  that  quantities  of  the  EU 
share  of  the  tariff-rate  quotas  shall  be  managed  by  the  EU,  and  that  the  Russian  Federation 
shall issue export licences based on the relevant import documentation issued by the EU. 

The  Agreement  also  provides  for  the  elaboration  by  the  EU  and  the  Russian  Federation  of 
more  detailed  technical  modalities  on  the  management  of  the  tariff-rate  quotas  by  the  entry 
into force of the Agreement. Such technical modalities are contained in a Protocol, negotiated 
between the EU and the Government of the Russian Federation (hereinafter referred to as the 
"Protocol"). The Protocol establishes the rules regarding the management of the export tariff-
rate quotas and of exports within those quotas, including provisions on the cooperation of the 
competent authorities of the European Union and the Government of the Russian Federation 
necessary to ensure the adequate operation of the system. 

The EU has a strong interest in the tariff-rate quotas which provide for significant advantages 
for exports of  wood  from Russia, with in-quota duties significantly reduced as compared to 
(unbound) out-quota duties. In particular, EU forest industries and downstream users such as 
the  paper,  construction  and  furniture  industries  have  suffered  from  consecutive  increases  of 
wood export duties applied by the Russian Federation since 2007. Economic operators in the 
EU are now eager to access those raw materials at significantly improved conditions, and it is 
essentially in their interest that the tariff-rate quotas have been set. 

In  order  to  ensure  the  effective  application  of  the  management  system  provided  for  in  the 
Agreement  and  the  Protocol  by  the  time  of  the  accession  of  the  Russian  Federation  to  the 
WTO, both the Agreement and the Protocol will be applied provisionally from the date of the 
Russian Federation's accession to the WTO. Article 3 of Council Decision 2012/105/EU of 14 
December 2011 on the signing, on behalf of the European Union, and provisional application 
of  the  Agreement  and  the  Protocol,  confirms  the  provisional  application  of  both  the 
Agreement and the Protocol pending the completion of the procedures for the conclusion of 
the Agreement. 

The Commission should be empowered to adopt the necessary provisions for the management 
of  the  quantities  of  the  tariff-rate  quotas  allocated  to  exports  to  the  EU  by  means  of  an 
implementing act. Article 4 of Council Decision 2012/105/EU of 14 December 2011 on the 
signing, on behalf of the European Union, and provisional application of the Agreement and 
the Protocol, authorized the Commission to adopt detailed rules on the method of allocation of 
quota  authorisations  pursuant  to  Article  5,  paragraph  2  of  the  Protocol,  and  any  other 

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provisions  necessary  for  the  management  by  the  European  Union  of  the  quantities  of  the 
tariff-rate  quotas  allocated  to  exports  to  the  European  Union.  On  this  basis,  Commission 
Implementing  Regulation  (EU)  No  498/2012  of  12 June  2012  has  established  the  necessary 
provisional implementing rules with a view to enabling a fully operational EU management of 
its  share  of  the  tariff-rate  quotas  by  the  time  when  the  Russian  Federation  joins  the  WTO. 
However,  Commission  Implementing  Regulation  (EU)  No  498/2012  will  cease  to  apply  on 
the  date  on  which  the  Protocol  ceases  to  be  applied  provisionally  (cf.  Article  20(2)  of 
Commission Implementing Regulation (EU) No 498/2012). The Commission should therefore 
be  empowered,  by  means  of  a  regulation  of  the  European  Parliament  and  of  the  Council 
adopted  under  the  ordinary  legislative  procedure,  to  adopt  the  necessary  definitive 
implementing provisions.  

In order to enable a smooth operational management by the EU of its share of the tariff-rate 
quotas  by  the  time  when  the  Russian  Federation  joins  the  WTO,  Chapter  7  of  Commission 
Implementing  Regulation  (EU)  No  498/2012  has  established  provisions  related  to  certain 
preparatory steps which need to be taken immediately after entry into force of the provisional 
Implementing  Regulation.  These  preparatory  measures  are  required  for  the  calculation  of 
maximum import amounts (so called "ceilings") for those companies which can claim status 
of "traditional" importer during the first three quota periods of application of the Agreement 
and the Protocol (cf. Article 5(4) of the Protocol).  

The  legal  effects  of  the  preparatory  measures  taken  under  Commission  Implementing 
Regulation  (EU)  No  498/2012  should,  therefore,  be  maintained  by  the  new  implementing 
regulation to be adopted by the Commission in order to ensure legal certainty and continuity 
for economic operators. 

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2012/0217 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the allocation of tariff-rate quotas applying to exports of wood from the Russian 
Federation to the European Union 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure1, 

Whereas: 

(1) 

(2) 

(3) 

Considering the economic importance for the European Union of imports of raw wood 
and the importance that the Russian Federation has for the Union as a supplier of raw 
wood,  the  Commission  has  negotiated  with  the  Russian  Federation  commitments  by 
the  Russian  Federation  to  reduce  or  eliminate  its  currently  applied  export  duties  on 
raw wood. 

These commitments, which will become part of the World Trade Organization (WTO) 
Schedule  of  Concessions  of  the  Russian  Federation  upon  its  accession  to  the  WTO, 
include tariff-rate quotas for the export of specified types of coniferous wood, a share 
of which has been allocated for exports to the Union. 

In the context of the negotiations regarding the accession of the Russian Federation to 
the  WTO,  the  Commission  has  negotiated,  on  behalf  of  the  Union,  with  the  Russian 
Federation,  an  Agreement  in  the  form  of  an  Exchange  of  Letters  relating  to  the 
administration  of  those  tariff-rate  quotas  applying  to  exports  of  certain  coniferous 
wood  from  the  Russian  Federation  to  the  Union2  (hereinafter  referred  to  as  "the 
Agreement"). 

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Position of the European Parliament of [XXX] and Decision of the Council of [XXX].  
OJ L 57, 29.2.2012, p. 3. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

As  provided  for  in  the  Agreement,  the  Union  and  the  Russian  Federation  have  also 
negotiated  detailed  technical  modalities  on  the  management  of  the  tariff-rate  quotas, 
which are contained in an agreement in the form of a Protocol negotiated between the 
Union and the Government of the Russian Federation3 (hereinafter referred to as "the 
Protocol"). 

On  14  December  2011  the  Council  adopted  Decision  2012/105/EU4  authorizing  the 
signing of the Agreement and the Protocol and their provisional application from the 
date  of  accession  of  the  Russian  Federation  to  the  WTO.  The  Agreement  and  the 
Protocol were signed on 16 December 2011.  

In  accordance  with  the  stipulations  of  the  Agreement,  the  Union  shall  manage  the 
share  of  tariff-rate  quotas  allocated  to  it  through  its  internal  procedures.  Decision 
2012/105/EU lays down that the Commission is to adopt detailed rules on the method 
of allocation of quota authorisations pursuant to the Protocol, and any other provisions 
necessary  for  the  management  by  the  Union  of  the  quantities  of  the  tariff-quotas 
allocated  to  exports  to  the  Union.  Commission  Implementing  Regulation  (EU)  No 
498/2012 of 12 June 2012 on the allocation of tariff-rate quotas applying to exports of 
wood  from  the  Russian  Federation  to  the  European  Union5  has  established  the 
necessary provisional implementing rules with a view to enabling a fully operational 
Union management of its share of the tariff-rate quotas by the time when the Russian 
Federation  joins  the  WTO.  That  Regulation  will  cease  to  apply  once  the  Agreement 
and the Protocol are concluded and enter into force.  

In order to ensure uniform conditions for the implementation of the Agreement and the 
Protocol following their entry into force, implementing powers should be conferred on 
the  Commission.  Those  powers  should  be  exercised  in  accordance  with  Regulation 
(EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 
laying  down  the  rules  and  general  principles  concerning  mechanisms  for  control  by 
Member States of the Commission’s exercise of implementing powers6. 

The  examination  procedure  should  be  used  for  the  adoption  of  implementing  acts 
setting  out  rules  on  the  method  of  allocation  of  quota  authorisations  and  any  other 
provisions necessary for the management by the Union of the quantities of the tariff-
quotas allocated to exports to the Union in implementation of the Agreement and the 
Protocol, given that those acts are acts relating to the common commercial policy and 
therefore fall under point (iv) of Article 2(2)(b) of Regulation (EU) No 182/2011. 

In  order  to  ensure  legal  certainty  and  continuity  for  economic  operators  the  legal 
effects  of  the  preparatory  measures  already  taken  under  Implementing  Regulation 
(EU) No 498/2012 should be maintained by the new implementing acts to be adopted 
pursuant to this Regulation, as if those preparatory measures had been taken under the 
corresponding provision of those new implementing acts.  

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OJ L 57, 29.2.2012, p. 5. 
OJ L 57, 29.2.2012, p. 1. 
OJ L 152, 13.6.2012, p. 28.  
OJ L 55, 28.2.2011, p. 13.  

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HAVE ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

In  implementing  the  Agreement  between  the  European  Union  and  the  Russian 
Federation relating to the administration of tariff-rate quotas  applying to  exports of 
wood  from  the  Russian  Federation  to  the  Union  and  the  Protocol  on  technical 
modalities pursuant to that Agreement, the Commission shall adopt detailed rules on 
the method of allocation of quota authorisations pursuant to paragraph 2 of Article 5 
of the Protocol, and any other provisions necessary for the management by the Union 
of  the  quantities  of  the  tariff-rate  quotas  allocated  to  exports  to  the  Union.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 2. 

The implementing acts referred to in paragraph 1 shall maintain the legal effects of 
the  preparatory  measures  taken  pursuant  to  Implementing  Regulation  (EU)  No 
498/2012. 

Article 2 

The  Commission  shall  be  assisted  by  the  Wood  Committee  established  by  Article  5  of 
Decision  2012/105/EU.  That  committee  shall  be  a  committee  within  the  meaning  of 
Regulation (EU) No 182/2011. The Wood Committee may examine any matter relating to the 
application of the Agreement and the Protocol raised by the Commission or on the request of 
a Member State.  

Where  reference  is  made  to  this  Article,  Article  5  of  Regulation  (EU)  No  182/2011  shall 
apply. 

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

Article 3 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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