CELEX: 51987PC0653
Language: en
Date: 1987-12-15
Title: Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of Community tariff quotas for certain types of manufactured tobacco processed in the Canary Islands (1988) (submitted to the Council by the Commission)

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Vol. 1987/0307
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(87 ) 653 final
                                             Brussels , 15 December 1987
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
    opening , allocating and providing for the administration of Community
            tariff quotas for certain types of manufactured tobacco
                       processed in the Canary Islands ( 1988 )
                   ( submitted to the Council by the Commission )
                               I      f .    '       'C‘
                               .           »   ss     , ..
                                              à Ü       :
                                                       V
                                   S.             v
   C0M(87 ) 653 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
1 . Article 2 of Protocol 2 to the 1985 Act of Accession provides that
     manufactured tobacco falling within Chapter 24 of the CN which is processed
     in the Canary Islands is to qualify for exemption from customs duties on
     importation into the customs territory of the Community within the limits
     of annual Community tariff quotas . This tariff preference is confined to
     products which have been imported in the last five years . Thus , on the
     basis of the above-mentioned Article 2 , tariff quotas are to be opened for
     cigarettes falling within No 2402 20 00 and cigars , cheroots and cigarillos
     falling within No 2402 10 00 of the CN only . The volumes concerned are
     18 170 million units and 320.5 million units respectively .
2 . From the date on which the said quotas are opened the nomenclature used in
     the Common Customs Tariff will be replaced by the Combined Nomenclature
     based on the International Convention on the Harmonized Commodity
     Description and Coding System . This proposal must therefore take account of
     that fact by indicating the Combined Nomenclature codes of the products
     concerned .
3 . During the discussions concerning the adoption of Regulation ( EEC )
     No 4128/ 86, which opened these quotas for 1987, the Commission was asked to
     carry out a comparative study of the markets and conditions of competition
     for cigar producers in the Canary Islands and the Community of Ten . The
     Commission has not been able to obtain the necessary statistics and has
     therefore been unable to carry out such a study . The statistics of trade in
     these products show that the Canary Islands' exports to the EEC have not
     changed as a result of the opening of a tariff quota , whereas Community
     exports to Spain have increased substantially .
     Under these circumstances , the Commission proposes to comply with the
     commitments entered into and open tariff quotas for 1988 on the same terms
     and conditions as for 1987 .
4 . The proposal for a Regulation opening these tariff quotas provides      as is
     customary in such cases - for each quota volume to be divided into two
     parts , the first being allocated among the Member States as quota shares
     and the second being held as a reserve .
     Allocation of the volume of the first part of each quota took account of
     the fact that there have been no imports or only occasional imports into
     certain Member States in recent years . Initial shares have therefore been
     allocated only to importing Member States , while other Member States are
     guaranteed access to the tariff quotas as and when imports are announced .
 5 . As regards the method of administration to be applied by all Member States ,
      the Commission proposes the "as and when" system .
 6 . This is the purpose of the attached proposal .
 ---pagebreak---                                    Proposai for
                       COUNCIL REGULATION ( EEC ) No   / 87
                                   of
 opening, allocating and providing for the administration of Community tariff
   quotas for certain types of manufactured tobacco processed in the Canary
                                  Islands ( 1988)
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                                                     1
Having regard    to the   Act of Accession of Spain and Portugal ,      and in
particular Article 2 of Protocol 2 thereto ,
Having regard to the proposal from the Commission ,
Whereas Article 2 of Protocol 2 and Article 10 of Protocol 3 to the Act of
Accession provide that from 1 January 1986 manufactured tobacco falling within
Chapter 24 of the Combined Nomenclature which is processed in the Canary
Islands is to qualify, in the customs territory of the Community , for
exemption from customs duties within the limits of annual Community tariff
quotas ; whereas this tariff preference applies to products of which there have
been imports in the last five years ; whereas , calculated on the basis of the
above-mentioned Article 2, the quota volumes for cigarettes falling within No
2402 20 00 of the Combined Nomenclature and cigars , cheroots and cigarillos
falling within No 2402 10 00 of the Combined Nomenclature are 18 470 million
units and 320.5 million units respectively ; whereas there are no imports of
other manufactured tobacco falling within Chapter 24 of the Combined
Nomenclature ; whereas the tariff quotas in question should therefore be opened
for 1988;
Whereas from 1 January 1988 the nomenclature used in the Common Customs Tariff
will be replaced by the Combined Nomenclature based on the International
Convention on the Harmonized Commodity Description and Coding System ; whereas
this Regulation must take account of that fact by indicating the Combined
Nomenclature codes of the products concerned;
 Whereas rules should be laid down on the marking of the products concerned;
 1
   0J No L 302 , 15.11.1985, p. 23 .
 ---pagebreak---                                      - 2 -
Whereas equal and continuous access to the quotas should be ensured for all
Community importers and the rates laid down for the quotas should be applied
consistently to all imports of the products in question into all Member States
until the quotas are exhausted ; whereas , in the light of these principles ,
allocation of the tariff quotas among the Member States would seem to preserve
the Community nature of the quotas ; whereas in order to correspond as closely
as possible to the real trend of the market for the products concerned the
allocation should reflect the requirements of the Member States based on
statistics of imports of those products originating in the Canary Islands
during a representative reference period and on the economic outlook for the
quota period in question ;
Whereas imports into the Member States during the last three years for which
statistics are available were as follows :
                 1 Cigarettes falling within         Cigars , cheroots and
  Member State   1 No 2402 20 00 of the CN         cigarillos falling within
                 1    (millions of units )          No 2402 10 00 of the CN
                 1                                       ( millions of units )
                 1
                 1 1984    I 1985     I 1986        1984        1985      1986
                 I         I
  Benelux                   I   -
                                      I    -         1 276       1 300         156
  Denmark        I          I   -
                                      I               -           -
                                                                                 4
  Germany        I          I   -
                                      I               -           -
                                                                                56
  Greece         I    “     I   -
                                      I    -                      -          -
  Spain          I  18 702 I  18 496  I  15 723    312 300     314 200   329 175
  France         I          I   -
                                      I                 208         340        349
  Ireland        I         I    -
                                      I               -           -          -
  Italy          I          I   -
                                      I               -           -         -
  Portugal       I    -     I   -
                                      I               -           -         -
  United Kingdom i    “     I   •
                                      I    ·               5     2 110         190
                            I
Whereas during the last three years the products in question were imported
only by certain Member States and not at all by the other Member States ;
whereas under these circumstances initial shares should be allocated only to
the importing Member States and the other Member States should be guaranteed
access to the benefit of the tariff quotas when imports into those Member
States are announced ; whereas these allocation arrangements will ensure the
uniform application of the Common Customs Tariff ;
 ---pagebreak---                                       - 3 -
Whereas , to allow for the trend of imports of the products concerned in the
various Member States , each quota volume should be divided into two parts , the
first being allocated among certain Member States and the second being held as
a reserve to cover any subsequent requirements of those Member States which
have used up their initial shares and any requirements which might arise in
the other Member States ; whereas , to afford importers in each Member State
some degree of certainty, an appropriate level for the first part of the
Community quotas would ,     in the present circumstances , be 90% and 95%
respectively of the quota volumes ;
Whereas the initial shares of the Member States may be used up at different
rates ; whereas , in order to avoid any break in the continuity of supplies on
this account , it should be provided that any Member State which has almost
used up one of its initial quota shares should draw an additional share from
the corresponding reserve ; whereas each time one of its additional shares is
almost used up a Member State should draw a further share and so on as many
times as the reserve allows ; whereas each of the initial and additional shares
must be valid until the end of the quota period; whereas this form of
administration requires close cooperation between the Member States and the
Commission and the latter must be able to monitor the extent to which the
quota volumes have been used up and inform the Member States accordingly ;
Whereas if at a given date in the quota period a considerable quantity of one
of a Member State 's initial shares remains unused , it is essential that the
Member State concerned should return a significant proportion thereof to the
corresponding reserve in order to prevent part of a Community quota from
remaining unused in one Member State when it could be used in others ;
Whereas since the Kingdom of Belgium, the Kingdom of the Netherlands and the
Grand Duchy of Luxembourg are united within and jointly represented by the
Benelux Economic Union , any operation concerning the administration of the
quota shares allocated to that economic union may be carried out by any one of
its members ,
HAS ADOPTED THIS REGULATION :
                                    Article 1
1 . From 1 January to 31 December 1988 the duties applicable to imports of the
    following products shall be suspended at the levels indicated and within
    the limits of Community tariff quotas as shown below :
 ---pagebreak---                                             - 4 -
   Serial        Combined            Description             Volume    of      Rate of
      No      Nomenclature                                   tariff quota       duty
                    No                                     ( million units )
   09.0401      2402 20 00    Cigarettes manufactured              18 170        Free
                              in the Canary Islands
   09.0403      2402 10 00    Cigars , cheroots and                    320.5     Free
                              cigarillos manufactured
                              in the Canary Islands
2 . Products covered by this Regulation shall not qualify for the tariff quotas
    unless , when they are presented to the customs authorities responsible for
    the import formalities for release for free circulation in the customs
    territory of the Community , they are presented in packaging which bears the
    words " Manufactured in the Canary Islands ", or the equivalent thereof in
    another official Community language , in a clearly visible and perfectly
    legible form .
                                         Article 2
1 . The tariff quotas referred to in Article 1 shall be divided into two parts .
2 . The first part of each quota shall be allocated among certain Member
    States ; without prejudice to Article 5 , the quota shares shall be valid
    until 31 December 1988 and shall be as follows :
    ( a ) cigarettes falling within No 2402 20 00 of the Combined Nomenclature :
          Spain              16 355 million units
    ( b ) cigars ,   cheroots and cigarillos falling within No 2402 10 00 of the
          Combined Nomenclature :
          Benelux            1.4 million units
          Spain            302.5 million units
          France             0.3 million units
          United Kingdom     0.3 million units
3 . The second part of each quota , ,1 815 million units ( No 2402 20 00 of the
    Combined     Nomenclature )  and   16.0   million units    ( No  2402 10 00  of   the
    Combined Nomenclature ) respectively,         shall constitute the corresponding
    reserve .
4 . If an importer gives notification of imminent imports of the products in
    question into the other Member States and applies to take advantage of the
    quota , the Member State concerned shall inform the Commission and draw an
    amount corresponding to its requirements to the extent that the avilable
    balance so permits .
 ---pagebreak---                                        - 5 -
                                     Artide 3
1 . If a Member States has used 90% or more of one of its initial quota shares
    as specified in Article 2(2 ), or of that share less any portion returned to
    the reserve pursuant to Article 5 , it shall forthwith , by notifying the
    Commission and to the extent that the reserve so permits , draw a second
    share equal to 10% of its initial share, rounded up where necessary to the
    next whole number .
2 . If , after one of its initial quota shares has been used up, a Member States
    has used 90% or more of its second share as well , it shall , using the
    procedure provided for in paragraph 1 and to the extent that the reserve so
    permits , draw a third share equal to 5% of the initial share ,    rounded up
    where necessary to the next whole number .
3 . If , after one of its second shares has been used up, a Member State has
    used 90% or more of its third share , it shall , using the procedure provided
    for in paragraph 1 draw a fourth share equal to the third .
    This process shall continue until the reserve is used up .
4 . By way of derogation from paragraphs 1 ,   2 and 3,   Member States may draw
    smaller shares than those specified in the said paragraphs if there is
    reason to believe that they might not be used in full . Member States shall
    inform the Commission of their reasons for applying this pargraph .
                                     Article 4
Each of the additional shares drawn pursuant to Article 3 shall be valid until
31 December 1988 .
                                     Article 5
By 1 November 1988 at the latest the Member States must return to the reserve
the unused portion of their initial share shich , on 15 October 1988, is in
excess of 20% of the initial volume . They may return a greater portion if
there is reason to believe that it might not be used .
By 1 November 1988 at the latest Member States must notify the Commission of
the    total  quantities  of  the  products  concerned   imported  on  or  before
15 October 1988 and charged against the Community quotas and of any portion of
their initial shares that they are returning to the corresponding reserves .
 ---pagebreak---                                       - 6 -
                                    Article 6
The   Commission shall   keep account of the shares drawn by Member States
pursuant to Articles 2 and 3 and shall inform each Member States of the extent
to which the reserves have been used up as soon as it has been notified .
It shall inform the Member States not later than 5 November 1988 of the state
of each of the reserves following any return of quota shares pursuant to
Article 5 .
It shall ensure that the drawing which exhausts one of the reserves does not
exceed the balance available, and to this end shall notify the amount of that
balance to the Member State making the final drawing .
                                    Article 7
1 . Member States shall take all appropriate measures to ensure that additional
    drawings of shares pursuant to Article 3 enable imports to be charged
    without interruption against their accumulated shares of the Community
    tariff quotas .
2 . Member States shall ensure that importers of the products concerned have
    free access to the quota shares allocated to them .
3 . Member States shall charge imports of the products concerned against their
    quota shares as and when the goods are entered with the customs authorities
    for free circulation .
4 . The extent to which a Member State has used up its quota share shall be
    determined on the basis of imports of the products in question manufactured
    in the Canary Islands and charged in accordance with paragraph 3 .
                                    Article 8
At the request of the Commission , Member States shall inform it of imports of
the products actually charged against their quota shares .
                                    Article 9
The Member States and the Commission shall cooperate closely to ensure that
this Regulation is complied with .
                                   Article 10
This Regulation shall enter into force on 1 January 1988 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,
                                                        For the Council
                                                        The President