CELEX: 51978PC0155
Language: en
Date: 1978-04-13
Title: Proposal for a COUNCIL REGULATION (EEC) on the opening, allocating and providing for the administration of a Community tariff quota for sherry falling within heading No ex 22.05 of the Common Customs Tariff, originating in Spain (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 155
Vol. 1978/0051
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(78 ) 155 final
                                             Brussels ,  13 April 1978 .
                                Proposal for a
                           COUNCIL REGULATION ( EEC )
 on the opening , allocating and providing for the administration of
 a Community tariff quota for sherry falling within heading No ex 22.05
 of the Common Customs Tariff, originating in Spain
             ( submitted to the Council "by the Commission )
 COM(78 ) 155 final
 ---pagebreak---                     EXPLANATORY MEMORANDUM
  When the Aq ri?ement between the EEC and Spain has been signed
  in 197G , the Community bind oneself to grant a preferential
  tariff regime        the importations in the Community of certain
  wines with orig - ti spa -j n .     tQ satisfy to this engagement
  the Community has o^er^d each ye-^r two tariff quotas at
   reduced duty rates :
   ( a ) sherry, wines
          (i)   in containers of two Litres oi i ess
                40 000 hi at CCT duty reduced by £Q%-
        ( ii )  in containers of more than, two litr.» s
                310 000 hi at CCT duty reduced by 50% ;
 it being understood that trhese wines would remain subject to
the provisions governing the common organization of the market
 in wine and especially to the reference price which is applicable
to these wines .
 However / this regime has been provided only for the importation
of these products into the six original Member States , whereas
the three new Member States have applied different regimes .
In conformity with the Act of Accession imports of these products
into the new Member States are subject , since 1 July 1977 , to
the customs duties inscrited into - the Common Customs Tariff .
   \
In this situation , a uniform regime of importation should be
established . Hence the forement ioned quota volumes should be
increased in such a manner as to take account of the traditional
quantities imported in the new Member States .
 ---pagebreak---       This leads tQ an increase to
      - 108 000 hectolitres and 685 000 hectolitres for Sherry-wines .
      Because of difficulties encountered in fixing the reference price
      which - in principle - should have been applicable as from 1 January
       1978 , the Community has opened , by Regulations ( EEC) Nos 3012 / 77
      and          532 / 78 , four Community tariff quotas .
      These quotas cover the period between 1 January and 30 April J 978 /
      and amount in total to 36 000 hi and 228 340 hi .
      In order to comply with the Communitites obligation to Spain ,
      it is necessary to open tariff quotas for these products for
      the period 1 May to 31 December 1978 for volumes amounting to
      respectively 72 000 hl and 456 660 hl .
                                           /
      This is subject of the annexed proposals .
3.   These Regulation provide for the splitting up of the tariff volumes
     into two parts , of which the first will be allocated among the
     Member States as quota share and the second will be kept as a reserve .
     In the absence of Community statistics , the initial quota shares
     have been calculated on the basis of the most recent statistics on
     Spanish exports over a representative period and on Member States'
     forecasts .
     Spanish statistics can be considered to give a rough picture of
     Community imports of the relevant products .
4.   Because of the inherent particularities in trade in these wines
     which , additionaly , are different from one Member State to another ,
     the provisions of the Regulation , exceptionnally , do not lay down
     a common method of administration .
Annex : 1 proposai for a Council Regulation .
 ---pagebreak---                                                     Proposal of
                                     COUNCIL REGULATION (EEC)
                   on the opening, allocating and providing for the administration of a Commu-;
                   nity tariff quota for sherry, falling within heading No ex 22.05 of the Common
                                          Customs Tariff, originating in Spain = ' ''
   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 on the signing of the Agreement between
  the European Economic Community and Spain (') on
  29 June 1970, the Community undertook to grant
  preferential tariff arrangements for imports into the
  Community of certain wines originating in Spain, in
  particular sherry ; whereas in order to satisfy this
  undertaking, the Community has opened each year
  two tariff quotas, namely :                                   -
■ – 40 000 hectolitres at a duty rate of 40 % of the
       Common Customs Tariff duties, for sherry in
       containers holding two litres or less, falling within
       subheadings ex 22.05 C III a) 1 and ex 22.05 C IV                                  -
       a) 1 , originating in Spain and
  – 210 000 hectolitres at a duty rate of 50 % of the
       Common Customs Tariff duties, for sherry in
       containers holding more than two litres, falling
       within subheadings ex 22.05 C III b) 1 and ex
       22.05 C IV b) 1 , originating in Spain ;
  Whereas these preferential tariff arrangements were
  laid down only for imports of these products into the
  Member States of the Community as originally consti-                                        -
  tuted ; whereas, under the Act of Accession, importa­
  tion of these products into the three > new Member
  States are subject to Common Customs Tariff duties
  with effect from 1 July 1 977 ; whereas the import
  arrangements for these products should be uniform
  throughout the Community ; whereas therefore the                    _  '
  aforementioned annual quotas should be increased to
   108 000 hectolitres and 685 000 hectolitres respec­
  tively ; whereas j-,y re ason of special circumstances the Community has
   already opened Community tariff quotas by Regulations ( EEC ) Nos 3012 / 77
   and 532 / 78 ( 4 ) for the global volumes of 36 000 hectoliters and 228 340
    hectoliters respectively for the period 1 January to 30 April 1978 ;
   whereas tariff quotas of 72 000 and 456 660 hectoliters respectively
   should thus be opened for the said wines for the period . 1 May
   to 31 December 1978 ;
    ( 2 ) 0J No L 182 , 16.8.1970 , p. 2
    ( 3 ) 0J No L 355 , 31.12.1977 , p. 27
    ( 4 ) 0J No L 74 , 16.3.1978 , p. 1 .
 ---pagebreak--- Whereas £or particular reasons inherent in the. method of production and –
distribution of the product concerned , the import of these wines into the
Coiuimnity is for the greater part carried out in the last months_of_ each
year; whereas as a consequence the volume of the quotas opened .for the
 period 1 January to 30 April 1978 have not "been completely used up ; whereas
 by way of exception it is necessary to provide for the residual amounts , left
 over from this period to he taken into consideration to "be used during . the
 period of validity of this Regulation;
Whereas these wines remain subject to the provisions
governing the common organization of the market in
wine ; whereas inclusion in the Community tariff
 quota should be subject to production of movement
 certificate A.E. 1 and a certificate of designation or
 origin as provided for in Regulation (EEC) No
 1 1 20/75 P);                             .
  Whereas /Council Regulation (EEC) No 2506/76 of 29          f Sheriy-wines which enter the geog- .
  September 1975 laying down special rules for the              raphic territory of the Community
   importation of products in the wine-growing sector           from 1 May 1978 shall observe the
   originating in certain third countries (^/introduced         reference prices applicable to them
   the idea of a free-at-frontier reference price, being the    and also the rules of
' reference price less customs duties actually levied ;
                                                                 by whi ch is
      Whereas it is in particular necessary to ensure to all
      Community importers equal and uninterrupted access
      to the abovementioned quotas and uninterrupted
      application of the' rates laid down for these quotas to
      all imports of the products concerned into all Member
      States until the quotas have been used up ; whereas,
      having regard to the principles mentioned , above, the
      Community nature of the quotas can be respected by
      allocating the Community tariff quotas among the
      Member States ; whereas, in order to reflect most accu­
      rately the actual development of the market in the
      products concerned, such allocation should be in
      proportion to the needs of the Member States,
      assessed by reference to both the statistics of each
      State's imports of the said products from Spain over a
      representative period and the economic outlook . for
      the quota period concerned ;
     Whereas available Community statistics give no infor­
     mation on the situation of sherry on the markets ;
     whereas, however, Spanish statistics for exports of
     these products to the Community during the last few
     years can be considered to reflect approximately the
     situation of Community imports ; whereas on this
     basis the corresponding imports by each of the
      Member States during the last three years represent
      the following percentages of the imports into the
      Community from Spain of the products concerned :
       ( 1 ) OJ No L 111 , 30.4.1975 » P * 1 9
       ( 2 ) OJ No L 256 , 2.1.1976 , P - 2
 ---pagebreak---                                                                   - 3 -
                                                                                   1974                           1976
                Sherry :
                                                                                                             y
                – in containers holding two litres or less :
                      Bénélux                                                      45-5         49-5             62-5
                      Denmark                                                       3-7           5-2              5-7
                      Germany .                                                  - 12-1          120              13-4
                      France                                                        0-4           0-3              0-3
                      Ireland                                                       2-8           1-3              1-0
                      Italy                                                         4-9             ■4             1-2
                      United Kingdom                                               30-6         30-3           , 15-8
                – in containers holding more than two litres :
                      Bénélux                                           -          25-7         39-9             35-3
                      Denmark                                                       3-2           2-9              5-1
                     Germany                                                        2-4           2-9              3-4
                      France                                                        0-1           0-1              0-1
                      Ireland                                                I      1-0           0-7              0-9
                      Italy                                                         0-0           0-0              0-0
                      United Kingdom                                .        J     67-6  '      53-5              55-2
Whereas, in view of these factors and of the estimates                    to take this fact into account and avoid any break in
submitted by certain Member States, initial quota                         continuity, it is important that any Member State
shares may be fixed approximately at the following                        having used up almost the whole of one of its initial
percentages :                                                             quota shares should draw an additional quota share
                                                                          from the corresponding reserve ; whereas this must be
                                   Sherry >n containers holding
                                                                          done by each Member State as and when each of its
        Member States
                                                                          additional , quota shares is almost entirely used up, and
                                 cwo litres             more than
                                                        two litres
                                                                          repeated as many times as the reserve allows ; whereas
                                  or less
                                                                          the initial and additional quota shares must be avail­
                                                                          able for use until the end of the quota period ;
Bénélux                           53-61                  33-46            whereas this method of administration calls for close
Denmark                             5-05                   3-83
                                                                          cooperation between Member States and the Commis­
Germany                           13-20                    2-99
                                                                          sion, which must, in particular, be able to observe the
France                              0-31                   0-03
Ireland                             206                    0-78           extent to which the quota amounts are used and
Italy •                       I     2-11                   0-01           inform Member States thereof ;
United Kingdom                    23-66                  58-90
                                                                          Whereas since the Kingdom of Belgium, the
                                                                          Kingdom of the Netherlands and the Grand Duchy of
                                                                          Luxembourg are united in and represented by the
                                                                          Benelux Economic Union any measure concerning
whereas, in order to take into account import trends
for the products concerned in the different Member                        the administration of the quota shares allocated to
                                                                          that economic union may be carried out by any one
States, each of the quota amounts should be divided                       of its members,
into two tranches, the first tranche being allocated
among the Member States and the second forming a
reserve intended ultimately to cover the requirements
of the Member States which have used up their initial                     HAS ADOPTED THIS REGULATION :
quota shares ; whereas, in order to ensure a certain
degree of security to importers in each Member State,
the first instalment of the Community quotas should                                                 Article 1
be determined at a level which, under present circum­                                                            - ^December
stances, may be about 90 % of each of the quota                           1.    From 1 May             until 31 /         1978, the
amounts ;                                                                 Common Customs Tariff duties in respect of the sher­
                                                                          ries mentioned below originating in Spain shall be
                                                                          partially suspended at the levels or within the limits of
Whereas the initial quota shares of the Member States                     the Community tariff quotas indicated for each of
may be used up at different times ; whereas, in order                     them : -
 ---pagebreak---                                                    -     L   -
               CCT KtMlint No                Dc»erlption                         R«(c             Quota volume
                                                                          . {in ujVhl)               (in hl)
 ex  22.05  C III a)  1                       sherry                             5-4
 ex
 ex
     22.05
     22.05
            C
            C
              IV
              III
                  a)
                  b)
                     1
                      1
                                              sherry                             5-8            | 72 000
                                              sherry                             5-5
 ex  22.05  C IV  b) 1                        sherry                             6-0
                                                                                                     456 000
         J Protocol on the definition of the concept of 'originating products' and on
methods of administrative cooperation, annexed to the Agreement between the European
Economic Community and Spain, shall be applicable.
3: .. The 'nc'usi0n of sherry in the Community tariff quotas referred to in paragraph 1
shall be conditional upon production of a movement certificate A.E.I and a certificate of
 (Wgnanon of origin as provided for in Regulation (EEC) No 1120/75 and endorsed hy
tne Spanish customs authorities.
        The Sherry-wines entering the geographic territory of the Community
from 1 hay 1978 shall m addition, in order to benefit from these tariff
quotas , observe the reference prices applicable to them and also prices
not less than the free-at-frontier reference prices referred to in
Regulation (EEC ) No 2506/75 and subsequent texts which apply thereto.
                                           Artide 2
 1.     The quotas laid down in Article 1 shall be divided into two tranches.
 2.     A first tranche of each quota shall be allocated among the Member States ; the
 respective shares which shall be valid until      31        /        1978 , shall be as follows :
                                                            ""December
                                         i
                                                            Sherry {ailing within subheadings :
                  Member States                ex 22.05 C III a) 1                     ex 22.0 5 C III b) 1
                                                        and                                     and
                                               ex 22.05 C IV a) 1                      ex 22.05 C IV b) 1
                                        I
 Bene ux                                           34 740 .                    I         137 520
 Denmark                      '                       3 270                                15 740
 Germany                               _              8 560                               12 290
 France                                 !                  200                                    120
 Ireland                                I             1 330                                  3 210
 Italy                                   I            1 370                                         40
 United Kingdom                          I         15 330                               242 080
          –                      Total  !          64 800                               411 000
                                        ι
3 « The shares fixed in paragraph 2 shall be increased by any part
of the shares allocated under Regulations (EEC ) Nos 3012/77 and 532/78
remaining on 30 April 1978 .
         Member States shall notify the Commission not later than
15 Kay 1978 of any part of the shares allocated to them under
the above-mentioned Regulations remaining on 30 April 1 978.
 ---pagebreak---  4 . The second instalment of each quota , i.e. 7 200 and 45 660
 hectolitres respectively , shall form the corresponding reserve
 to which any part of the reserves set up under Article 2 of
 Regulations (EEC ) Nos 3012/77 and 532/78 remaining on 30 April
 1978 shall be added , irrespective of Article 5 .
                          Article 3
 1.     If 90 % or more of one of the initial shares of a
 Member State, as laid down in Article 2 (2), has been
 exhausted, that Member State shall proceed without
delay, by notifying the Commission, to draw a second
share equal to 10 % of its initial share, rounded up to
 the next unit where appropriate, to the extent that the
amount in the reserve allows.
2.      If, after one or other of its initial shares have
been exhausted, 90 % or more of the second share
drawn by a Member State has been used, that Member
State shall proceed in the manner specified in para­
graph 1 to draw a . third share equal to 5 % of its
 initial share, rounded up to th«- ■:»   -a where appro­
 priate.
3.      If, after one or other of its second shares have
been exhausted, 90 % or more of the third share
drawn by a Member State has been used, that Member
State shall , in accordance with the same conditions,
drawn a fourth share equal to the third.
I
This process shall be applied until the reserve is
exhausted .
4. By way of derogation from paragraphs 1 , 2 and
3, a Member State may proceed to draw shares smaller
than those fixed in those paragraphs, if there is reason
to believe that those shares might not be used up.
They shall inform the Commission of the reasons
which led them to apply this paragraph .
 ---pagebreak---                                                          quota and, where appropriate, the proportion of their
                                                         initial share that is being returned to the reserve.
                                                                                 Article 6
                                                         The Commission shall keep account of the shares
                                                         opened by Member States in accordance with Articles
                                                         2 and 3 and shall inform each of them of the extent
                                                         to which the reserve has been used as soon as it
                                                         receives the notifications.
                                                                                                        _November
                                                         The Commission shall; not later than 20 /           1978,
                                                         notify Member States of the amount in the reserve
                                                         after the return of shares pursuant to Article 5.
                                                         The Commission shall ensure that any drawing which
                                                         uses up the reserve is limited to the balance available
                                                         and, for this purpose, shall specify the amount thereof
                                                         to the Member State which makes the final drawing.
                                                                                  Article 7
                                                          ).    The Member States shall take all measures neces­
                                                         sary to ensure that, when additional shares are drawn
                                                          pursuant to Article 3, it is possible for charges to be
                                                          made without interruption against their accumulated
                                                         shares of the Community quota.
                                                          17 The Member States shall ensure that importers
                                                          of the said goods established in their territory have
                                                          free access to the shares allocated to them.
                                                          3.    The extent to which a Member State has used up
                                                          its share shall be determined on the basis of the
                                                          imports of the goods in question entered at customs
                                                          for home use.
                      ' Article 4
                                                                                  Article 8
The additional shares drawn pursuant to Article 3
shall be valid until 31 December 1978 .
                                                          On receipt of a request from the Commission,
                                                          Member States shall inform it of imports actually
                                                          charged against their shares.
                        Article 5
                  / November
                                                                                  Article 9
The Member Stales shall return to the reserve, not
later than 15 /        1978, the unused portion of their
initial share which, on 1 November 1978 , is in           The Member States and the Commission shall coop­
excess of 20 % of their initial amount. They may          erate closely in order to ensure that this Regulation is
return a larger portion if there are reasons for          observed.
believing that such portion may not be used in full.
The Member States shall, not later than 15 November                              Article 10
 1978, notify the Commission of the total imports of
the products concerned effected up to 1 November          This Regulation shall enter into force on 1 May
 1978 inclusive, and charged against the Community        1978 .                            x
 ---pagebreak--- This  Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at Brussels,
                                                          For the Council
                                                           The President