CELEX: 51992PC0198
Language: en
Date: 1992-05-07
Title: Proposal for a COUNCIL REGULATION (EEC) opening Community quotas for imports of certain kinds of footwear originating in China

COfMISS TON OF THE EUROPEAN COMMUNITIES
                                      C0M(92) 198 final
                                      Brussels, 7  May 1992
                           Proposal for a
                     COUNCIL REGULATION (EEC)
                opening Community quotas for imports
         of certain kinds of footwear originating in China
                   (presented by the Commission)
 ---pagebreak---                                EXPiANATORY MEMO
1. This proposal is made under the procedure laid down in Artfcfe 9(4) of
   Regulation (EEC) No 3420/83, which requires the Commission to refer the
   matter to the Council in the event of disagreement with a Member state
   regarding changes to be made to the import arrangements for products
   from state-trading countries.
2. Pursuant to Article 10 of that Regulation, on 23 March 1992 France
    informed the other Member states and the Commission of its decision to
    introduce safeguard measures in respect of footwear imports from China.
   The French measures provided for the opening of three quotas, breaking
   down as foI 1ows:
                                                                   Pairs
         ex 64 03        footwear with uppers of leather          3\146 000
         ex 64 05        or composition leather
   -     ex 64 04        sports footwear with outer soles        23 310 000
         ex 64 05        of leather or composition leather*.
                         other footwear with uppers of
                         textile materials
   -     ex 64 03        slippers and other indoor footwear      24 730 000
         ex 64 04
         ex 64 05
   These quotas were adopted for a twelve-month period, beginning on
   23 March 1992.
3. In view, in particular, of their implications for the completion of the
   single market, the French measures were discussed within the Advisory
   Committee for the East European Countries as provided for by Article 8
   of Regulation (EEC) No 3420/83. The upshot was that the Commission and
   the great majority of Member States took the view that, on the eve of
   the single market, these national measures were inappropriate., but that
   the national quantitative restrictions already applied to the products
   by other Member States made necessary a Council Regulation opening
   Community quotas for the products in question.
4. This view is borne out by the Community industry's present difficulties.
   Since it is having to adjust to both completion of the single market and
   stiffer competition from abroad, it is important that it should not be
   destabilized by an excessive surge in imports.
   For footwear in general, the overall trend in the Community in the
   period 1985-90 was adverse: the Community's market share fell by 20%,
   while apparent consumption rose by 19%. Most of the increase was
   accounted for by imports from outside the Community, which rose by 85%
   in that period. China, the leading exporter, has more than doubled its
   exports to the Community. At the same time Community exports are
   effectively barred from entering China.
                                                                            i
 ---pagebreak---                                 - 2 -
While, last year, total imports from outside the Community were 35% up
on 1990, those from China increased by 97%, far more than the average.
Growth was even more rapid in some of the most sensitive areas for
Community producers, such as leather town shoes (up 140% on 1990) or
leather sports shoes (up 292%).
In 1990, non-Community imports took 34% of the market: last year's
substantial increase and the relative stability of consumption suggests
that this market share will increase appreciably.
Annexed is a table showing trends in imports into the Community of the
products in question.
The purpose of this proposal is the establishment of Community quotas.
The Commission believes that the quotas should be based on the average
level of imports into the Community of the products in question for the
last three years for which statistics are available and that codes
should be used for the goods which will enable Chinese export figures to
be compared with Community figures on imports.
The six-digit codes of the Harmonized System (HS) nomenclature would
generally seem to be the most suitable. The quotas could then be broken
down as follows:
     CN CODES                                Annual value (ECU '000)
     6402  19                                        10 900
     6402 99                                         42 300
     6403  19                                        15 600
     6403 51                                            800
     6403 59                                          8 200
     6403 91                                          5 500
     6403 99                                         40 600
     6404  11                                        53 300
     6404  19 10                                     23 500
The quotas would be opened from the date of this Regulation's entry into
force until 31 December. They would be calculated pro rata, on the
basis of the annual values, for the duration of this Regulation.
This measure could make it difficult for some Community importers to
match past turnover, mainly because imports of the products concerned
are not restricted in some Member States.
 ---pagebreak---                                                                    ANNEX
                     IMPORTS BY EUR-12 FROM CHINA IN 'OOO ECU
          (1)             (2)        (3)        (4)        (5)      (6)
                                                          Average  1991/1989
        NC CODES          1989       1990       1991     1989-1991 % change
                                                          QUOTAS
        640219             3 969      7 518     20 820     10 769  + 424.6
        640299            17 954     32 875     76 115     42 315  + 323.9
        640319             2 906      8 829     34 631     15 455  +1091.7
        640351               656        314      1  428       799  + 117.7
        640359             8 655      5 875     10 186      8 239  + 17.7
        640391               764      2 876     12 670      5 437  +1558.4
        640399            17 927     30 235     72 221     40 128  + 302.9
        640411            36 179     49 601     72 991     52 924  + 101.7
        64041910          15 723     20 428     33 978     23 376  + 116.1
  Total under quota      104 733    158 551    335 040    199 442  + 219.9
Source: Eurostat, Comext
                                                                             h
 ---pagebreak---                                   proposal for a
                             COUNCIL REGULATION (EEC)
                      opening Community quotas for imports
               of certain kinds of footwear originating in China
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 Having regard to the Treaty establishing the European Economic Community,
 and in particular Article 113 thereof,
 Having regard to the proposal from the Commission,
 Whereas Council Regulation (EEC) No 3420/83 of 14 November 1983 on import
 arrangements for products originating in state-trading countries, not
-.liberalized at Community level,1 as last amended by Regulation (EEC)
 No ... of ...,2 applies to imports of products originating in China;
 Whereas on 23 March 1992 France, pursuant to Article 10 of Regulation (EEC)
 No 3420/83, informed the other Member States and the Commission of its
 decision to introduce safeguard measures in respect of footwear imported
 from China; whereas the French measures provided for the opening of three
 separate quotas for different types of footwear for a twelve-month period
 starting on 23 March 1992;
 Whereas imports of footwear originating in China have increased very
 considerably in recent years throughout the Community; whereas this
 unrelieved pressure threatens serious injury to Community producers;
 Whereas, in accordance with Council Decision .../..., other Member States
 have opened quotas for imports of products originating in the state-trading
 countries for the year 1992; whereas part of these quotas concerns imports
 of footwear originating in China;
 1  OJ No L 346, 8.12.1983, p.6
 2  OJ No L             p. . .
                                                                             *>
 ---pagebreak---                                     - 2 -
Whereas the application of national measures threatens the proper working
of the internal market, and on the other hand the national quantitative
restrictions applied to these products in other Member States make
necessary a Council Regulation opening Community quotas for the products in
quest ion;
Whereas in accordance with Regulation (EEC) No 2616/85 of 16 September 1985
on the conclusion of a trade and economic cooperation Agreement between the
European Economic Community and the People's Republic of China, and in
particular Article 6(1) thereof, 1 consultations were held and the Chinese
authorities informed of the French measures; whereas, in view of the injury
caused to the Community industry by the considerable increase in China's
exports of the products in question, the Chinese authorities were informed
that Community quotas were planned;
Whereas these Community quotas should be based on the average level of
 imports into the Community of the products in question for the last three
years for which statistics are available and codes should be used for the
goods to enable Chinese export figures to be compared with figures on
Community imports; whereas the six-digit codes of the Harmonized System
(HS) nomenclature would generally seem to be the most suitable;
Whereas Council Regulation (EEC) No 1023/70 of 25 May 1970 establishing a
common procedure for administering quantitative quotas, 2 as last amended
by the Act of Accession of Spain and Portugal, laid down rules on Community
quotas; whereas administrative and technical factors make it necessary to
divide the quota between Member States, and the criteria by which this is
to be done must be established,
1   0J No L 250, 19.9.1985, p. 2
2   0J No L 124, 8.6.1970, p.1.
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                  Art icle 1
From the date of this Regulation's entry into force until 31 December 1992,
the following Community quotas shall apply to the footwear of Chinese
origin mentioned below:
         CN CODES                                Annual value (ECU '000)
         6402 19                                         10 900
         6402 99                                         42 300
         6403 19                                         15 600
         6403 51                                            800
         6403 59                                          8 200
         6403 91                                          5 500
         6403 99                                         40 600
         6404 11                                         53 300
         6404 19 10                                      23 500
The value of the quotas shall be calculated pro rata, on the basis of the
annual value, for the duration of this Regulation.
                                  Art icle 2
1. From the date of this Regulation's entry into force until
   31 December 1992, imports of footwear falling within the CN codes listed
    in Article 1 and originating in China shall be subject to presentation
   of an import authorization.
2. As soon as the measures provided for in Article 3 have been adopted, an
    import authorization shall be issued within fifteen working days of an
   application being lodged, upon presentation by the applicant of a
   purchase contract for all the amounts requested.
   The authorization shall be valid for two months.
                                                                           >
 ---pagebreak---                                    - 4 -
                                 Art icle 3
The quotas established in Article 1 shall be apportioned on the basis of
traditional trade flows and estimated needs, in accordance with the
procedure laid down in Article 11 of Regulation (EEC) No 1023/70.
                                 Art icle 4
The national quantitative restrictions and quotas for which Articles 2, 3,
9 and 10 of Regulation (EEC) No 3420/83 provide shall be replaced, in so
far as they concern products falling within Chapter 64 of the Combined
Nomenclature, by the measures laid down in this Regulation.
                                 Art icle 5
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States.
Done at Brussels, ...                           For the Council
                                                The President
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(92) 198 final
                                                      DOCUMENTS
EN                                                                         03 02
                                 Catalogue number: CB-CO-92-207-EN-C
                                                             ISBN 92-77-43979-3
Office for Official Publications of the European Communities
L-2985 Luxembourg