Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the application of Union tariff rate quotas and other import quotas
Date: 2020-08-14
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: GATT, United Kingdom, customs regulations, customs territory (EU), free circulation, import (EU), originating product, tariff quota, withdrawal from the EU

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   EUROPEAN COMMISSION  Brussels, 14.8.2020  COM(2020) 375 final 2020/0176 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the application of Union tariff rate quotas and other import quotas  
 
EXPLANATORY MEMORANDUM 

1. 

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CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The United Kingdom of Great Britain and Northern Ireland (United Kingdom) withdrew from 
the  Union  as  of  1  February  2020.  The  Protocol  on  Ireland/Northern  Ireland  attached  to  the 
Withdrawal Agreement (‘the Protocol’) will apply from the end of the transition period, i.e. as 
of 1 January 2021.  

The  Protocol  states  that  Northern  Ireland  is  part  of  the  customs  territory  of  the  United 
Kingdom, and that the United Kingdom can include Northern Ireland in the territorial scope 
of its World Trade Organization schedules. At the same time, the Protocol provides that any 
reference to the customs territory of the Union in the applicable provisions of the Protocol, as 
well  as  in  the  provisions  of  Union  law  made  applicable  to  and  in  the  United  Kingdom  in 
respect  of  Northern  Ireland  by  the  Protocol,  must  be  read  as  including  the  land  territory  of 
Northern  Ireland.  This  means  that  despite  Northern  Ireland  being  formally  in  the  United 
Kingdom’s customs territory, the United Kingdom, in respect of Northern Ireland, is obliged 
to  apply  the  Union’s  customs  legislation  as  if  Northern  Ireland  were  still  in  the  Union’s 
customs territory.  

The bilateral arrangements between the Union and the United Kingdom under the Protocol do 
not give rise to rights and obligations for third countries.  

Consequently, any imports pursuant to Union import tariff rate quotas or other import quotas 
applying  to  goods  originating  in  a  third  country  brought  into  Northern  Ireland  could  not  be 
counted  towards  that  third  country’s  rights  vis-à-vis  the  Union,  unless  agreed  by  the  third 
country.  This  situation  poses  a  risk  to  the  proper  functioning  of  the  Union’s  Single  Market 
and the integrity  of the  Common Commercial Policy through the possible circumvention  of 
the Union’s tariff rate quotas or other import quotas. Furthermore, any agreement with a third 
country providing for export tariff rate quotas require that the goods be imported within the 
Union.  Therefore,  that  third  country  could  refuse  to  issue  export  licenses  for  direct  imports 
into Northern Ireland. 

To address that risk, the Union’s tariff rate quotas and other import quotas should be available 
only for goods imported and released into free circulation in the Union and not in Northern 
Ireland.  

By virtue of the Protocol, this Regulation would also applies to and in the United Kingdom in 
respect of Northern Ireland. 

• 

Consistency with existing policy provisions in the policy area 

This initiative is in line with the ongoing actions of the Union to address the consequences of 
the  withdrawal  of  the  United  Kingdom  from  the  Union  and  to  prepare  for  the  end  of  the 
transition  period  in  an  orderly  manner,  notably  to  prepare  for  the  implementation  of  the 
Withdrawal Agreement and the Protocol on Ireland/Northern Ireland. 

• 

Consistency with other Union policies 

The initiative is also consistent with the Union’s common commercial policy. 

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2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 207(2) of the Treaty on the Functioning of the European Union (TFEU). 

• 

Subsidiarity (for non-exclusive competence)  

The  common  commercial  policy  is  an  exclusive  competence  of  the  Union.  The  subsidiarity 
principle therefore does not apply. 

• 

Proportionality 

The envisaged measure is the only way of ensuring the desired result.  

• 

Choice of the instrument 

A legislative act, a Regulation of the European Parliament and of the Council, is required, as 
existing  legislation  does  not  provide  for  an  empowerment  to  the  Commission  to  adopt  the 
proposed measures. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable.  

• 

Stakeholder consultations 

Not applicable.  

• 

Collection and use of expertise 

Not applicable.  

• 

Impact assessment 

Not applicable.  

• 

Regulatory fitness and simplification 

Not applicable.  

• 

Fundamental rights 

The proposal has no impact on fundamental rights.  

4. 

BUDGETARY IMPLICATIONS 

Not applicable.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Not applicable.  

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• 

Explanatory documents (for directives) 

Not applicable.  

• 

Detailed explanation of the specific provisions of the proposal 

Article  1  provides  that  the  Union’s  tariff  rate  quotas  and  other  import  quotas  should  be 
available only for goods imported from outside of the Union and released into free circulation 
in  the  Union.  Article  1  lists  the  relevant  customs  territories,  which  make  up  the  Union 
customs  territory.  This  list  does  not  include  Northern  Ireland,  which  has  the  effect  that  the 
Union’s  tariff  rate  quotas  and  other  import  quotas  would  not  be  available  for  imports  into 
Northern Ireland. Article 2 provides for the application of the Regulation, which should start 
the day following the end of transition period, on 1 January 2021. 

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2020/0176 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the application of Union tariff rate quotas and other import quotas 

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(2) 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 procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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The  Agreement  on  the  withdrawal  of  the  United  Kingdom  of  Great  Britain  and 
Northern  Ireland  from  the  European  Union  and  the  European  Atomic  Energy 
Community (‘the Withdrawal Agreement’) was concluded on behalf of the Union by 
Council  Decision  (EU)  2020/1351  of  30  January  2020  and  entered  into  force  on  1 
February 2020.  

Article  4  of  the  Protocol  on  Ireland/Northern  Ireland  annexed  to  the  Withdrawal 
Agreement  (‘the  Protocol’)  reiterates  that  Northern  Ireland  is  part  of  the  customs 
territory of the United Kingdom, and that nothing in the Protocol prevents the United 
Kingdom  from  including Northern  Ireland in  the  territorial  scope of its Schedules of 
Concessions  annexed  to  the  General  Agreement  on  Tariffs  and  Trade  1994  (‘GATT 
1994’).  

At the same time, Article 13(1) of the Protocol provides that notwithstanding any other 
provisions of the Protocol, any reference to the customs territory of the Union in the 
applicable provisions of the Protocol, as well as in the provisions of Union law made 
applicable  to  and  in  the  United  Kingdom  in  respect  of  Northern  Ireland  by  the 
Protocol, shall be read as including the land territory of Northern Ireland. 

According  to  Article  5(3)  of  the  Protocol,  Union  customs  legislation  as  defined  in 
Article 5, point (2) of Regulation (EU) No 952/2013 of the European Parliament and 
of the Council2 applies to and in the United Kingdom in respect of Northern Ireland. 
These provisions, in conjunction with Article 5(1) , first and second subparagraph of 
the Protocol  as  regards goods  brought  into Northern  Ireland from  outside the Union, 
mean  that  Union  tariff  measures  including  tariff  rate  quotas  under  the  Common 
Customs  Tariff  or  relevant  international  agreements,  would  be  applicable  to  such 

Council  Decision  (EU)  2020/135  of  30  January  2020  on  the  conclusion  of  the  Agreement  on  the 
withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and 
the European Atomic Energy Community (OJ L 29, 31.1.2020, p. 1). 
Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying 
down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).  

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goods that  are considered to  be at risk of subsequently being  moved into the Union. 
Those  tariff  rate  quotas  include  in  particular  import  tariff  rate  quotas  in  the  Union’s 
schedules  of  commitments  under  GATT  1994,  agreed  in  the  Union’s  bilateral 
international agreements, including origin derogation quotas, import tariff rate quotas 
under  the  Union’s  trade  defence  regimes  and  other  autonomous  import  tariff  rate 
quotas,  as  well  as  export  tariff  rate  quotas  provided  for  in  agreements  with  third 
countries.  

According to Article 5(4) of the Protocol, Union law listed in Annex 2 to the Protocol 
also applies, under the conditions set out in that Annex, to and in the United Kingdom 
in respect of Northern Ireland. This includes Union legislation that provides for certain 
import quotas. 

The  bilateral  arrangements  between  the  Union  and  the  United  Kingdom  under  the 
Protocol do not give rise to rights and obligations for third countries.  

Consequently, any imports pursuant to Union import tariff rate quotas or other import 
quotas applying to goods originating in a third country brought into Northern Ireland 
could  not  be  counted  towards  that  third  country’s  rights  vis-à-vis  the  Union,  unless 
agreed by the third country. That situation poses a risk to the proper functioning of the 
Union’s Single Market and the integrity of the Common Commercial Policy through 
the possible circumvention of the Union’s tariff rate quotas or other import quotas.  

To  address  that  risk,  the  Union’s  import  tariff  rate  quotas  and  other  import  quotas 
should be available only for  goods imported and released into free circulation in  the 
Union and not in Northern Ireland.  

Any agreement of the Union with a third country providing for export tariff rate quotas 
applies only to  goods imported within the Union. Therefore, that third country could 
refuse to issue export licenses for direct imports into Northern Ireland.  

(5) 

(6) 

(7) 

(8) 

(9) 

(10)  By virtue of Article 5(3) and (4) of the Protocol in conjunction with its Article 13(3), 
this  Regulation  also  applies  to  and  in  the  United  Kingdom  in  respect  of  Northern 
Ireland,  

HAVE ADOPTED THIS REGULATION: 

Goods  imported  from  outside  the  Union  shall  be  eligible  for  treatment  pursuant  to  Union 
import tariff rate quotas or other import quotas or pursuant to export tariff rate quotas applied 
by third countries only if released into free circulation in the following territories:  

Article 1 

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the territory of the Kingdom of Belgium,  

the territory of the Republic of Bulgaria,  

the territory of the Czech Republic,  

the territory of the Kingdom of Denmark, except the Faroe Islands and Greenland,  

the territory of the Federal Republic of Germany, except the Island of Heligoland and 
the  territory  of  Büsingen  (Treaty  of  23  November  1964  between  the  Federal 
Republic of Germany and the Swiss Confederation),  

the territory of the Republic of Estonia,  

the territory of Ireland,  

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the territory of the Hellenic Republic,  

the territory of the Kingdom of Spain, except Ceuta and Melilla,  

the  territory  of  the  French  Republic,  except  the  French  overseas  countries  and 
territories to which the provisions of Part Four of the TFEU apply, but including the 
territory of Monaco as defined in the Customs Convention signed in Paris on 18 May 
1963 (Journal officiel de la République française of 27 September 1963, p. 8679),  

the territory of the Republic of Croatia,  

the territory of the Italian Republic, except the municipality of Livigno,  

the territory of the Republic of Cyprus, in accordance with the provisions of the 2003 
Act of Accession,  

the territory of the Republic of Latvia,  

the territory of the Republic of Lithuania,  

the territory of the Grand Duchy of Luxembourg,  

the territory of Hungary,  

the territory of Malta,  

the territory of the Kingdom of the Netherlands in Europe,  

the territory of the Republic of Austria,  

the territory of the Republic of Poland,  

the territory of the Portuguese Republic,  

the territory of Romania,  

the territory of the Republic of Slovenia,  

the territory of the Slovak Republic,  

the territory of the Republic of Finland 

the territory of the Kingdom of Sweden, and 

the territory of the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia 
as  defined  in  the  Treaty  concerning  the  Establishment  of  the  Republic  of  Cyprus, 
signed in Nicosia on 16 August 1960. 

Article 2 

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

It shall apply from 1 January 2021. 

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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