CELEX: 51977PC0325
Language: en
Date: 1977-07-14
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL opening, allocating and providing for the administration of a Community tariff quota for newsprint falling within subheading No 48.01 A of the Common Customs Tariff (1978) and extending this quota to include certain other types of paper (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 325
Vol. 1977/0108
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 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(77)325 final.
                                                      Brussels . July' 14 , 1977
                              Proposal for a
                    REGULATION (EEC ) OF THE COUNCIL
         opening , allocating and providing for the administration
         of a Community tariff quota for newsprint falling within
         subheading No 48.01 A of the Common Customs Tariff ( 1978 )
         and extending this quota to include certain other types
                              of paper
                 ( submitted to the Council "by the Commission)
                       ■
cm(n) 325 final .
 ---pagebreak---                       EXPLANATORY MEMORANDUM
 A the Last multilateral GATT negotiati ons , the Community undertook
 to pen annually a nil duty Community tariff quota for 1,500,000
 metric tons of newsprint falling within subheading No 48.01 A
 of the -Common Customs Tariff .
 Furthermore, the Community informed the Nordic delegation ( text
 Nord 4 of document NCG<67)44 rev. ) that it had decided to open
 a nil duty tariff quota each year under Article 28 of the Treaty
 of Rome if it were established that all possibilities of supply
 on the internal market of the Community had been exhausted during
 a given trading year and after having entirely used up the nil
 duty quota bound under GATT .
 Judging from market trends over the past few years it is clear
 already that the 1978 Community tariff quota must be greater than
 the 1,500,000 metric tons originally established . This is why the
 Commission considers that it can propose the opening of a tariff
quota for 2,430,000 metric tons . . Thi-s'. - amount is based on first
 estimates , so that a review of the situation during the course
of the year is naturally not excluded .
The tariff quota is allocated in accordance with the method which
has normally been applied : allocation is based on past import
figures and on estimated for the quota year in question .
                                                      a             •»
Furthermore , in view of the size of the quota proposed from the
start , the Commission considers that it would be contrary to the
Community nature of this quota to divide it up into shares
allocated definitively to all the Member States . It therefore
proposes a system of administration based on the institution
of a Community reserve limited to 5% . This system of allocation
and administration was , moreover , unanimously approved by
all Member States at the time of the opening of the tariff
quota for previous years . Further , the Member States , at ti-e
" Economic Tariff Problems " Group meeting on 13 and 14 April 1977,
unanimously agreed that this system should be continued for
1978 .
 ---pagebreak--- In conformity with the agreement reached at Council Level when
the tariff quota for 1977 was opened , the proposed Regulation
forsees for 1978 the possibility for the Member States to
count against the quota other types of paper which correspond ,
leaving aside the criteria of watermarks , to the definition
of newsprint to be found in the additional note to Chapter 48 .
 ---pagebreak---                                                    Proposal for a
                 ' '             - COUNCIL REGULATION (EEC) No
                                               of   •«•••••■
              opening, allocating and providing for the administration of a Community tariff
              quota for newsprint falling within subheading 48.01 A of the Common Customs
              Tariff ( 197$ and extending this quota to include certain other types of paper ,
THE COUNCIL OF THE EUROPEAN                                 imports from third countries during a representative
COMMUNITIES,                                                reference period and to the economic outlook for the
                                                            year covered by the quota in question ;
Having regard to the Treaty establishing the European
Economic Community, and in particular Articles 28           Whereas, for the last three years for which complete
and 1 1 3 thereof,                                          statistics are available, the imports of each of the
                                                            Member States amounted to the following percentages
                                                            of total imports of the products in question :
Having regard to the proposal from the Commission,
                                                                                        ι         1974  1975      1976
Whereas the Community has undertaken to open an                                                                   12.55
annual duty-free Community tariff quota of 1 500 000        Bénélux                              14-04 14-06
metric tons of newsprint falling within subheading          Denmark                               4-89  5-23       5.92
                                                            Germany ■                            25-78 27-05      26.90
48.01 A ;
                                                            France                               13-46 11-86      11.50
                                                            Ireland                               2-12  2-02       2.03
                                                            Italy                               , 0-42  0-50       0.50
Whereas, in view of present Community production                                                                  40.60
capacity, that quantity is insufficient to meet antici­     United Kingdom                       39-29 39-28
pated import requirements ; whereas provision should                                      ρ*···
                                                                                          ι .
therefore be made for aji autonomous supplementary
quota which, according to the estimates submitted,          Whereas, in order to arrive' at a proper assessment of
may be fixed at present at930 000 metric tons ;             those statistics, however, it should be borne in mind
whereas the fact that this figure has been adopted for      that the opening of a Community tariff quota for the
the autonomous supplementary quota does not rule            enlarged Community may alter the pattern of trade of
out a readjustment during the quota period ; whereas a      Member States with third countries ; whereas, in view
Community tariff quota should therefore be opened           of the above and of the foreseeable trend on the
for 1978 for a total quantity of 2 4 3 0000 metric tons     market in newsprint in general, and of production in
of the product in question ;                                particular during 1978 the quota may be allocated
                                                            approximately in the following percentages :
Whereas provision should be made for extending the
tariff quota in question to include certain types of                 Bénélux                              13.59
paper fulfilling all the conditions set out in the Addi­             Denmark                               7.38
tional Note to Chapter 48 except those relating to                   Germany                              26.02
watermarks ;                                                         France                               11.73'
                                                                     Ireland                               2.15
                                                                     Italy                                 0.04
Whereas equal and continuous access to the quota                     United Kingdom                       39.09 ;
should be ensured for all Community importers and
the rate of duty for the tariff quota should be applied ■
without interruption to all imports of the product in
question until the quota is exhausted ; whereas in the      Whereas, to take account of import trends for the
light of these principles, arrangements for the utiliza­    product concerned, the quota should be divided into
tion of the Community tariff quota based on an alloca­      two tranches, the first being allocated among the
tion among Member States would seem to be                   Member States and the second held as a reserve to
consistent with the Community nature of the quota ;         cover subsequently the requirements of Member States
whereas, in order that it may correspond as closely as      which have exhausted their initial shares ; whefeas, to
possible to the actual trend of the market in the           give importers some degree of certainty and yet
product in question, allocation of the quota should be      enable Community production to be disposed of on
in proportion to the requirements of the Member             satisfactory terms, the first tranche of the quota should
States as calculated by reference to statistics on          be fixed at about 95 % of the full amount ;
 ---pagebreak---                                                                      - 2 -
        Whereas Member States may exhaust their initial               4.     The Common Customs Tariff duty shall be
        shares at different rates ; whereas to provide for this       totally suspended within the limits of the above quota.
        eventuality and avoid disruption of supplies any
       Member State which has almost used up its initial
       share should draw an additional share from the
       reserve ; whereas each time its additional share is
       almost exhausted a Member State should draw a
       further share, and so on as many times as the reserve
       allows ; whereas the initial and additional shares
       should be valid until the end of the quota period ;
       whereas this form of administration requires close                                         Article 2
       collaboration between the Member States and the
       Commission, which latter must be in a position to
       keep account of the extent to which the quota has              1.     The Community tariff quota referred to in
                                                                      Article 1 shall be divided into two tranches.
      been used up and to inform the Member States accord­
      ingly ;                                                                                      ' 2 302 500
                                                                      2.     A first tranche of /            metric tons shall be
      Whereas if at a given date in the quota period a                allocated among the Member States. Member States'
      considerable quantity of a Member State's initial share        shares, which subject to Article 5 shall be valid from 1
      remains unused it is essential, to prevent a part of the       January until 31 December 1978, shall be as follows :
      Community tariff quota from remaining unused i,p
     one Member State while it could be used in others,                                                            (/// nietrie tons)
     that such State should return a significant proportion               Bénélux                                      313    000
     thereof to the reserve ;                                             Denmark                                      170    000
                                                                          Germany                                      599    Û00
     Whereas, since the Kingdom of Belgium, the                           France                                       270    000
     Kingdom of the Netherlands and the Grand Duchy of                    Ireland                                       49    500
     Luxembourg are united within and jointly represented                 Italy                                           1   000
    by the Benelux Economic Union, any transaction in
    respect of the administratipn of the shares allocated to              United Kingdom                              900 000 .
    that economic union may be carried out by any one
    of its members,                                                 3.      The second tranche, of 127 500metric tons,
                                                                    shall constitute the reserve.
    HAS ADOPTED THIS REGULATION :
                                                                                                 Article 3
                              Article 1
                                                                     1.     If 90 % or more of a Member State's initial share
                                                                    as fixed in Article 2 (2), or of that share minus the
    1 . During the period from 1 January to 31                      portion returned to the reserve where Article 5 has
    December I97g, a Community tariff quota of
2 430 000 metric tons shall be opened in respect of                 been applied, it shall forthwith, by notifying the
                                                                    Commission, draw a second share, to the extent that
   newsprint falling within subheading 48.01 A of the
    Common Customs Tariff ( ').                                     the reserve so permits, equal to 15% of its initial
                                                                   share, rounded up as necessary to the next whole
                                                                   number.
   2. Member States may charge against this tariff
   quota the other types of paper complying with the
   definition of newsprint contained in the Additional             2.      If, after its initial share has been exhausted 90 %
   Note to Chapter 48, except as regards the criteria              or more of the second share drawn by a Member State
  governing watermarks.                                            has been used up, that Member State shall, in the
                                                                   manner and to the extent provided for in paragraph I ,
   3. Imports of newsprint shall not be charged                    draw a third share equal to 7-5 % of its initial share
   against this tariff quota if they are already free of
   customs duties under other preferential tariff treat­           3.      If, after- its second share has been exhausted
   ment. Furthermore, imports of any oiher paper                   90 % or more of the third share drawn by a Member
  referred to in paragraph 2 enjoying duty kce exemp­              State has been used up, that Member State shall, in
  tion under the said tariff quota shall not be charged            the manner and to the extent provided for in para­
  against the indicative ceilings fixed under ct 'tain free
  trade agreements.                                                graph 1 , draw a fourth share equal to the third.
  ( ' ) Enr.y under this subheading is subject to conditions to be This procedure shall apply until the reserve is
         determined by the competent authorities.                  exhausted.
 ---pagebreak---                                                                - 3 -
4. Notwithstanding paragraphs 1 , 2 and 3, Member              exceed the balance available, and to this end shall
 States may draw lesser shares than those specified in        .notify the amount of that balance to the Member State
 those paragraphs if there are grounds for believing           making the last drawing.
 that those, specified may not be used in full. They
 shall inform the Commission of their reasons for                                       Article 7
applying this provision.
                                                               1.    Member      States   shall   take    all    appropriate
                                                               measures    to  ensure    that   additional    shares  drawn
                        Artide 4
                                                               pursuant to Article 3 are opened in such a way that
Additional shares drawn pursuant to Article 3 shall be         imports may be charged without interruption against
valid until 31 December 1978-                                  their accumulated share of the Community quota.
                                                           ■ 2. Member States shall take all measures necessary
                        Article 5                              to ensure that the types of paper referred to in Article
The Member States shall return to the reserve, not             1 (2) included in this tariff quota are in fact intended
later than 1 October 1978 , the unused portion of their        foi the printing of newspapers, weekly papers or other
                                                               periodicals of heading No 49.02, published at least 10
initial share which, on 15 September 1978,is in                times per year.
excess of 20 % of the initial amount. They may return
a greater portion 'if there are grounds for believing          3.    Member States shall ensure that importers of the
that such portion may not be used in full. •                   products in question established in their territory have
                                                               free access to the shares allocated to it.
Member States shall, not later than 1 October 1 978 ,
notify the Commission of the total quantities of the           4. The extent to which a Member State has used up
products in question imported up to and including 15           its shares shall be determined on the basis of imports
September 1978 and charged against the Community               of the products in question entered with the customs
tariff quota and of any portion of their initial shares        authorities for home use.
returned to the reserve.
                                                                                        Article 8
                        Article 6
                                                              On receipt of a request from the Commission the
The Commission shall keep an account of the shares             Member States shall notify it of the importations
opened by the Member > States pursuant to Articles 2          charged against its share.
and 3 and shall , as soon as it has been notified, inform
each Member State of the - extent to which the reserve                                  Artide 9
has been used up.
                                                              The Member States and the Commission shall coop­
It shall inform the Member States, not later than 5        . erate closely to ensure that this Regulation is
October 197& of the amount still in reserve after             complied with.
amounts have been returned thereto pursuant to
Article 5.                                                                              Artide 10
It shall ensure that when a quantity exhausting the
reserve is drawn, the amount so drawn does not              The Member States shall forward to the
                                                           "Commission within 45 days of the
                                                            publication of this" Regulation in the
                                                            Official Journal of the - European
                                                            Communities , the provisions they have
                                                            adopted with a View to its implementation.
                                                                                       Article 11
                                                            This Regulation shall enter into force on 1 January
                                                             > 97 8 .
             This Regulation shall be binding in its entirety and directly applicable in all Member
             States.
             Done at Brussels,
                                                                         For the Council
                                                                           The President
 ---pagebreak---                                                                 ■
 FINANCIAL             STATEMENT                                  Date : 24 May 1977
   . Budget line concerned : Ch . 12 Art . 120
 2. Legal basis : Art * 28 and 113 of the Treaty
 3 . Title of the tariff measure :
     Proposal for a Regulation ( EEC ) of the Council on the opening , allocation and
     administration of a Community tariff quota for newsprint falling within
   subheading No 48.01 A of the Common Customs Tariff ( 1978 and extending this
   quota to include certain other types of paper .
4 . Objectives :
   To respect the contractual engagements under 6ATT and to assure covering
   the Communities * needs for newsprint .
5 . Method of calculation :
     - No of CCT             48.01 A et ex 48.01 E
    - Quota volume           2,430,000 tonnes
    - Quota duty rate        0%
    - Duty rate ÇCT          7% and 12%
6. Loss of receipts : 58,000,000 UCE
                                                            i ,
                                                           i