CELEX: 51992PC0288
Language: en
Date: 1992-07-20
Title: Proposal for a COUNCIL REGULATION (EEC) establishing a Community procedure for administering quantitative quotas

CŒfVlISSION OF THE EUROPEAN CCMVIIJNITIES
                                   C0M(92) 288 final
                                   Brussels,20  July 1992
                        Proposal for a
                   CQUNCIL REGULATION (EEC)
           establlshlng a Conmunlty procedure for
              admlnlsterlng quantitatlve quotas
                (presented by the Commission)
 ---pagebreak---                                                 EXPLAHATORY UEUORAHDUU
  1.    Under the provlslons currently In force (Council Regulatlon (EEC) Ho 1023/70 of 25 Uay 1970),
        Import and export quantltatlve        quotas Imposed by the Communlty are, as a rule,     admlnlstered
        by each Uember State after belng allocated as natlonal shares. Such a system leads to a
        certaln compartmentalIzatlon of the market for the products concerned and may Involve
       controls at the Internal frontlers         of the Communlty.
 2.    The Slngle European Act, by Insertlng Artlcle           8a In the Treaty, provlded for the creatlon of
       the Internal market by 1 January 1993. Thls market "shall comprlse an area wlthout            Internal
       frontlers'   In whlch In partlcular       the free movement of goods Is ensured. Retalnlng the
      procedure for admlnlsterlng the quotas as lald down In Regulatlon (EEC) Ho 1023/70 would glve
       rlse to dlfflcultles     In achlevlng thls objectlve.      A new system for admlnlsterlng the
      quantltatlve     quotas, based on the prlnclple       of a unlform common commerclal pollcy, should
      therefore be establlshed taklng Into account the guldellnes set by the Court of Justlce In
      Case 51/87.
 3.   From an operatlonal standpolnt, under such a system quotas would be admlnlstered on communlty
       level partlculary     the crlterla    for allocatlon.   To thls end, the attached draft provldes for
      the posslblllty     of chooslng between several methods, dependlng on market condltlons In the
      Communlty, the nature of the products, the speclflc features of the suppller countrles and
      the Communlty's Internatlonal        obllgatlons,   In partlcular  those whlch undertake to allow for
      tradltlonal    trade flows.
4.   Thus, admlnlstratlon of the quantltatlve           quotas centers on the examlnatlon at Communlty level
     of Import appllcatlons wlth reference to the method selected, and on the Identlflcatlon              of
     quantltatlve     crlterla   on the basls of whlch the Uember States Issue documents to economlc
     operators. Speclal attentlon         Is devoted to the question of how to ensure optlmum use of
     quotas through provlslons Intended to prevent the "sterllIzatlon"            of Import or export
     documents.
5. Lastly, the annexed draft takes Into account the need to set up a Commlttee to ensure close
     and effectlve     cooperatlon between the Uember States and the Commlsslon when Implementlng the
     new system.
6.   In vlew of the extent of the amendments required, the annexed draft proposes to recast the
     exlstlng rules, repeallng Regulatlon (EEC) Ho 1023/70 (and Regulatlon (EEC) Ho 1024/70 which
     had extended the appllcablllty         of Regulatlon (EEC) Ho 1023/70 to the French overseas
     departments).
                                                                                                              4*u
 ---pagebreak---                                  Proposal for a
                          Council Regulation (EEC) No
                                       of
                   establishing a Community procedure for
                       administerIng quantitative quotas
 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  1023/70  of   25   May   19701
 established a common procedure for administering quantitative quotas
 based on the allocation of quotas among the Member States, which might
entail the compartmentalization of the Community market and checks at
 internal frontiers for the products concerned;
Whereas Article 8 A of       the Treaty provides for    the creation of an
 internal market by 1 January 1993, comprising "an area without internal
frontiers" in which the free movement of goods is ensured;
Whereas a new system for administering quantitative quotas should be
established in line with this objective, and based on the principle of
a uniform common commercial policy, in accordance with the guidelines
laid down by the Court of Justice of the European Communities;
1   0J L 124, 8.6.1970, p.1
                                                                              /]l
 ---pagebreak---                                     - 2 -
 Whereas there shouid be a choice between several ailocation methods,
 depending on criteria such as the situation of the Community market,
 the type of product concerned, specific characterIstlcs of the supplier
 countries and the Community's    international obligations, particularly
 those which undertake to allow for tradltional trade flows;
Whereas the procedure for administerIng import and export quotas shouid
be based on a system of licences issued by the Member States in line
with quantitative criteria established at Community level;
Whereas the administrative procedure must ensure that all applicants
have fair access to quotas, and whereas the documents issued must be
such that they can be used throughout the Community;
Whereas   it is necessary to set up a committee to organize close and
effective cooperation between the Member States and the Commission for
the purposes of the implementation of this Regulation;
Whereas  the  provisions of   this Regulation   and  those  governing  its
implementation   shouid not  prejudice existing national    and  Community
legislation concerning professional secrecy;
Whereas the products listed in Annex II to the Treaty, together with
textiles and other products that are subject to specific common import
arrangements    laying  down   specific   provisions  as   regards   quota
administration shouid be excluded from the scope of this regulation;
 ---pagebreak---                                       - 3 -
  Whereas the provisions of this Regulation should replace those         laid
  down   by   CounciI   Regulation  (EEC)   No  1023/70; whereas   the   said
  Regulation   should   thereforo be repealed; whereas CounciI   Regulation
                                      1
  (EEC) No 1024/70 of 25 May 1970       applied the repealed Regulation to
  the French overseas departments; whereas there is no ionger any need
  for a separate regulation, given that the common provisions laid down
  in the present Regulation apply to Community territory in its entirety,
  as defined    in Article 227 of the Treaty; whereas said Regulation No
  1024/70 should therefore also be repealed;
 HAS AD0PTED THIS REGULATION:
                   PART I: GENERAL ADMINISTRATIVE PRINCIPLES
                                   Article 1
 1. This Regulation establishes the rules governing the administration
     of quantitative import and export quotas (hereafter referred to as
     quotas),   whether  autonomous or   conventional, established   by  the
    Community.
2. This Regulation shall not apply to products listed in Annex         II to
    the EEC Treaty, nor to textiles or other products that are subject
    to specific common import or export arrangements laying down special
    provisions for quota administration.
1   0J L 124, 8.6.1970, p. 5.
 ---pagebreak---                                        - 4-
                                    ArtlCle z
t. Quotas 8hall be allocated among applicants as soon as possible aftoi
    they have been opened, as a rule in their entirety and in a single
    tranche. Nevertheiess,      it may be decided,     in accordance with the
   procedure    detaiied   in Article    24,   to  allocate    them  in several
   tranches.
2. Quotas shall be administered using one of the following methods, or
   a combination of these methods:
   (a)       taking account of traditional trade flows, with part of the
             quota set aside for traditional      importers and exporters and
             the remainder allocated     to other    importers and exporters.
            Traditional importers and exporters are defined as those who
            can provide evidence that they have imported the product or
            products concerned into the Community, or exported it (them)
            from the Community, during a previous period designated the
            reference period;
       The allocation of quotas using this method shall be carried out
       in accordance with the provisions of Articles 7 - 10.
   (b)       in  the order    in which   applications are     submitted   (on a
            "first come, first served" basis),         in accordance with the
            provisions of Article 11;
   (c)      in    proportion    to   the   quantities    requested   when    the
            applications     are    submitted    (using    the    "simultaneous
            examination" procedure),      in accordance with the provisions
            of Article 12;
 ---pagebreak---                                      - 5 -
     (d)     by a tenderlng procedure, in accordance with the provisions
             of Article 13.
 3. The allocation method to be used shall be determined by following
     the procedure laid down in Article 24.
 4. A reserve shall be established,     into which any part of a quota or
     tranche of a quota that    Is not allocated, assigned or used shall
     automatically be transferred.
    The reserves shall be allocated      in time to aliow them to be used
    before the end of the period covered by the quota,        in accordance
    with the provisions of Article 14.
 5. Save where other provisions are adopted when the quota is set, the
    release for free circulation or export of products subject to quotas
    shall  be conditional    on the presentation of an    import or export
    licence    issued   by  the Member   States   in accordance   with  the
    provisions of this Regulation.
6. The Member States shall designate the authorities competent to carry
    out implementing measures for which they are responsible under this
    Regulation. They shall notify the Commission of the authority thus
    designated.
                                  Article 3
The Commission shall publish a notice announcing the opening of quotas
in the Official     Journal of the European Communities, setting out the
conditions    to   be  met   by licence   applications,  time   limits for
submitting them, a list of the competent national authorities to which
they must be sent and the allocation method chosen.
 ---pagebreak---                                        - 6
                                    Article 4
 1. All   Community   importers  and exporters, no matter       where   they are
    established in the Community, may submit Iicence applications to the
    competent authority of the Member State of their choice.
     Importers' or exporters' applications         shall, where   necessary, be
    accompanied by documentary evidence of previous imports or exports
     in Iine with the procedure laid down in Article 24.
2. Applications for licences shall be submitted in accordance with the
    procedures laid down in Article 24.
                                    Art icle 5
The    competent    authorities    in    the   Member   States   shall   forward
 information concerning     the  Iicence applications they      receive   to the
Commission, within the time limits and in Iine with the conditions set
out   in the procedure    laid down in Article 24. This       information shall
comprise the data required for the method chosen and             the associated
allocat ion cr iter ia.
                                   Art icle 6
1. The Commission     shall, within     the time    limit specified   under  the
    procedure   laid   down   in Article     24,  simultaneously   examine   the
    information   forwarded by the competent        authorities  in the Member
    States and determine the quantity of the quota or of           its tranches
    for which these authorities must issue import or export licences.
2. The Commission shall also ensure that that the licences issued are
    for economically significant quantities, having regard to the nature
   of the product concerned.
 ---pagebreak---                                    - 7 -
    PART II: SPECIFIC RULES FOR THE DIFFERENT ADMINISTRATIVE METHOOS
            Sectlon A: Method based on tradltlonal trade flows
                                Article 7
Where quota allocation takes account of traditional trade flows, the
portion set aside for traditional importers or exporters, the reference
period specified in Article 2 (2)(a) and the portion allocated to other
applicants   shall  be determined   using  the  procedure  laid down in
Article 24. The allocation shall be carried out in accordance with the
principles set out in Articles 8 to 10.
                                Article 8
1. Where aggregate applicatlons by traditional importers or exporters
   are equai to or smaller than the quantity set aside for them, the
   applications shall be met in full.
2. Where aggregate applications by traditional importers or exporters
   exceed the quantity set aside for them, they shall be met on a oro
   rata basis, calculated on the basis of each importer or exporter's
   share of total imports or exports by this group during the reference
   per iod adopted.
 ---pagebreak---                                       - 8 -
                                   Article 9
 1. Where aggregate applications by other        importers or exporters are
    equal   to or   smaller  than   the quantity   set   aside  for   them, the
    applications shall be met in full.
2. Where aggregate applications by this group exceed the quantity set
    aside for them, the said quantity shall be distributed equally among
    the applicants. However, individual      importers or exporters applying
    for smaller quantities, i.e. for less than the quantity they would
    receive   from such a distribution, shall       receive  the quantity for
    which   they applied, with    the remainder    being   transferred   to the
    reserve.
                                  Article 10
Where   no   applications   are  received   from   traditional    importers  or
exporters, the importers or exporters that do apply shall have access
to the whole quota or tranche concerned.
In such    cases,  the   allocation   shall  be  carried   out  following   the
procedure laid down in Article 9.
 ---pagebreak---                                       - 9 -
                     Section B: Method based on the order
                      in which applications are submitted
                                   Article 11
 1. Where the quota is allocated on a "flrst come, first served" basis,
     licence applications shall be met on the basis of the order in which
    they are submitted to the competent authorities, each       importer or
    exporter being assigned the quantities applied for until the quota
     is exhausted, or until the period covered by the quota expires.
2. Should more than one application be submitted        at  the same time,
    exceeding   the quantity available under     the quota  concerned,  the
    allocation   shall   be carried out   in proportion  to the  quantities
    applied for.
3. In establishing the order of applications, they shall be filed by
    the date on which they are submitted. ConsequentIy, all applications
    submitted to a competent authority on the same day shall be deemed
    to have been submitted simultaneously.
                    Section C: method alloca^ina ouotas
                 In Droportion to the quantities reouested
                                  Article 12
1. Where a quota is allocated in proportion to the quantities applied
   for and aggregate applications are equal        to or smaller  than the
   quota concerned, applications shall be met in full.
 ---pagebreak---                                     - 10 -
 2. Where   aggregate   applications  exceed  the quantity   of the   quota
    concerned, they shall be met on a pro rata basis, in proportion to
     the quantities applied for.
              Sectlon D: Method based on a tendering procedure
                                  Article 13
 Where quotas are allocated via a tendering procedure, invitations to
 tender shall be issued in such a way as to spread imports and exports
 throughout   the period covered by    the quota. Only parties providing
assurances that they will carry out their obligations, specifically by
 lodging a guarantee securing their offer, shall be permitted to take
part    in the tendering procedure. The successful    tenderers shall be
 those whose bids are of greatest benefit to the Community.        In some
cases, no award may be made.
Tendering procedures shall, within the constraints       imposed by quota
administrat ion, be organized     in such  a way  as to avoid   an unfair
concentration of     imports or exports among a small    number  of  large
operators.
      Sectlon E: Prlnclples governing the allocation of the reserve
                                 Article 14
Quantities transferred to the reserve shall be allocated on the basis
of applications submitted within the period allowed, in I ine with the
procedure and conditions laid down in Article 24.
 ---pagebreak---                                     - 11 -
            PART III: RULES CONCERNING IMPORT OR EXPORT LICENCES
                                 Artlcle 16
The Commission shall notify the competent authorities       in the Member
States of the quantities for which they Issue licences to the various
applicants. It shall also inform the other Member States.
                                 Article 16
The competent authorities     in the Member States shall  issue import or
export    licences  within  ten   working  days of  notification   of  the
Commission decision or within the time limit set by the Commission.
The said authorities shall inform the Commission that import or export
licences have been issued.
                                 Article 17
The   issue of  licences may be made conditional upon the    lodging of a
securlty, in accordance with the procedure 1aid down in Article 24.
                                 Article 18
1. Import or export    licences shall authorize the import or export of
   products which are subject to quotas and shall be valid throughout
    the Community, regardless of the place of import or export mentioned
    in the applications by the operators.
 ---pagebreak---                                       - 12 -
 2. The period of validity of import or export licences to be issued by
     the competent authorities of the Member States shall be established
     In accordance wlth the procedure lald down In Artlcle 24.
 3. The holders of import or export licences may apply to the competent
    authorities to obtain extracts of the licences.
    Such extracts shall have the same iegal effects as the licences from
    which   they  are derived up     to the quantity    for which    they  were
     issued.
4. Applications for     import or export     iicences, licences and extracts
    shall    be  drawn   up   on   forms   conforming   to  a    specimen   the
    characteristics of which shall be established in accordance with the
    procedure laid down in Article 24.
                                  Article 19
Without    prejudice   to   the  specific    provisions  to   be   adopted   in
accordance with the procedure laid down in Article 24, import or export
licences and their extracts may not be loaned or transferred, whether
for a considerat ion or free of charge, by the person in whose name the
document was issued.
                                  Article 20
1. Import or export     licences or extracts which are wholly or partly
   unused shall be returned to the competent authorities of the Member
   State of issue within ten working days of their expiry date at the
    latest, except in cases of force maieure.
 ---pagebreak---                                      - 13 -
 2. Where the issue of     import or export    licences was conditional upon
     the lodglng of a securlty, the security shall be forfelt where the
     time llmlt referred to above ls not complled wlth, except         in caaea
     of force maieure.
                                   Article 21
 The   competent  authorities   of   the  Member   States  shall   notify   the
 Commission, immediately upon being so informed and in any case no later
 than 20 days after the expiry date of the licences, of the quantities
of quotas assigned and not used with a view to their being transferred
 to the reserve pursuant to Article 2(4).
                                  Article 22
The    competent  authorities   of   the  Member   States  shall   inform   the
Commission, by the 20th of each month of the quantities of products
subject to Community quotas which have been imported or exported during
the preceding month.
                          PART IV: FINAL PROVISIONS
                                  Article 23
The    Commission   shall   be  assisted    by   a  Committee    made   up   of
representatives    of  the Member    States  and   chaired  by  a   Commission
representat ive.
 ---pagebreak---                                     - 14 -
                                  Article 24
 1. Where reference is made to the procedure lald down In thla article,
     the representative of the Commission shall put before the Committee
    a draft of the measures to be adopted. The Committee shall give its
    opinion within a time limit set by the chairman with reference to
     the degree of urgency of the matter. The opinion shall be adopted by
    a majority as laid down in Article 148(2) of the Treaty on decisions
    to   be   adopted  by  the Councii   acting   on  a   proposal   from  the
    Commission. Where votes are taken within the Committee, the votes of
    the representatives of the Member States shall be weighted as laid
    down in the said Article. The chairman shall not vote.
 2. The    Commission   shall  adopt    measures   which     are   immediately
    applicable. However, where     the measures do not      conform with   the
    opinion delivered by the Committee, the Commission shall       immediately
    notify the Councii accordingly.
    In this case, the Commission      may postpone    implementation of    the
    measures    it has adopted  for up   to one month    following   the said
    notification to the Councii.
3. The Councii, acting by a qualified majority, may, within the time
    limit referred to in the preceding subparagraph, adopt a different
    decision.
                                 Article 25
The implementing provisions for this Regulation shall be adopted by the
Commission    in accordance with the procedure    laid down    in Article 24.
They shall in particular lay down the detailed procedures governing the
allocation of the quotas, the       information  to be transmitted by the
competent authorities in the Member States and the measures intended to
ensure compliance with this Regulation.
 ---pagebreak---                                          - 15 -
                                      Article 26
 1. The   information    received    by   the Council,     the Commission      or  the
    Member    States   pursuant    to   this  Regulation may      not   be   used  for
     purposes other than that for which it was requested.
 2. The Council, the Commission and the Member States, and those acting
    on their behalf shall not disclose information in respect of which a
    duly   substantiated    request      for  confidential     treatment    has   been
     lodged, except where express authorization is granted by the party
    providing the information.
 3. This   article   shall   not    prevent    the   Community    authorities     from
    disclosing    information     of   a   general   nature,    in  particular     the
    grounds on which decisions are taken pursuant to this Regulation, or
    evidence used by them to Justify their arguments               in the event of
    legal   proceedings.    Such    disclosure     must   take   into   account    the
    legitimat'e    interest    of    the    parties    concerned     in    preserving
    commercial confidentiality.
                                     Article 27
Council    Regulation    (EEC)   No 1023/70     of   25 May 1970    establishing     a
common   procedure    for  administering      quantitative     quotas   and   Council
Regulation    (EEC) No 1024/70       of   25 May 1970    applying   to   the   French
overseas departments Regulation (EEC) No 1023/70 are hereby repealed.
References to the repealed Regulations shall be construed as references
to th is Regulat ion.
 ---pagebreak---                                    16
                               Article 28
This Regulation shall enter  into force on the third day following its
publication in the Official Journal of the European Communities.
It shall apply from 1 January 1993.
This  Regulation  shall   be binding   in  its  entirety  and  directly
applicable in all Member States.
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(92)288final
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