CELEX: 51995PC0262
Language: en
Date: 1995-06-12
Title: Proposal for a COUNCIL REGULATION (EC) opening and providing for the administration of a Community tariff quota for rum, tafia and arrack originating in the African, Caribbean and Pacific (ACP) States (second half 1995 and 1996 to 1999) and amending Regulation (EC) No 1989/94 opening and providing for the administration of a Community tariff quota for rum, tafia and arrack originating in the African, Caribbean and Pacific (ACP) States (1994 to 1995)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                               Brussels, 12.06.1995
                                               COM(95) 262 final
                                               95/0145 (ACC)
                               Proposal for a
                    COUNCIL REGULATION (EC)
  opening and providing for the administration of a Community tariff quota
                       for rum, tafia and arrack originating
              in the African, Caribbean and Pacific (ACP) States
                      (second half 1995 and 1996 to 1999)
  and amending Regulation (EC) No 1989/94 opening and providing for the
administration of a Community tariff quota for rum, tafia and arrack originating
      in the African, Caribbean and Pacific (ACP) States (1994 to 1995)
                     (presented by the Commission)
 ---pagebreak---  ---pagebreak---                             EXPLANATORY MEMORANDUM
1.  Protocol No 6, annexed to the IV Lomé Convention, was signed on 15 December
    1989 It stipulates that imports into the Community of products of CN codes 2208
    40 10, 2208 40 90, 2208 90 11 and 2208 90 19 (rum, tafia and arrack), originating in
    the ACP States are exempted from customs duties. This preferential treatment is
    limited to a quantity set annually by the Community.
    The method for calculating the volume of the quota is laid down in Article 2 of the
    Protocol.
    In view of the characteristics of the market in rum, the quota period runs from 1 July
    to 30 June.
2.  The quota volume for the period from 1 July 1994 to 30 June 1995 opened under
    Regulation No 1989/94 should be increased to accommodate both the strong increase
    in the traditional trade flows in rum, tafia and arrack between the ACP State and the
    Community, and the market demand for these products from the three new Member
     States. The increase is in line with the Protocol's normal implementing arrangements
     and meets the request put forward by the ACP States pursuant to Article 2(c) and (d)
     of the Protocol.
3.   The quota volume for the period from 1 July to 31 December 1995 is equivalent to
     half the volume for the preceding period increased by 10 000 hi of pure alcohol.
     Accordingly, preferential arrangements should be implemented for that period with
     the opening of a Community tariff quota for rum, tafia and arrack originating in the
     ACP States.
4.   As regards the arrangements applicable from 1996, the Council, on the basis of a
     Commission report, has decided to abolish the quota system from 1 January 1996 in
     respect of "light" ACP rum and to maintain a tariff quota for "traditional" ACP rum
     pending full liberalization from 1 January 2000.
     The volume for that quota shall be 58 000 HPA for 1996, 61 000 HPA for 1997,
     64 000 HPA for 1998 and 67 000 HPA for 1999.
 5.  This is the purpose of the proposal for a Council regulation annexed hereto.
 ---pagebreak---                                             Proposal for
                                   a Council Regulation 0(EC)
          opening and providing for the administration of a Community tariff quota
                               for rum, tafia and arrack originating
                      in the African, Caribbean and Pacific (ACP) States
                              (second half 1995 and 1996 to 1999)
         and amending Regulation (EC) No 1989/94 opening and providing for the
      administration of a Community tariff quota for rum, tafia and arrack originating
              in the African, Caribbean and Pacific (ACP) States (1994 to 1995)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 thereof,
Having regard to the proposal from the Commission,
     Whereas the Fourth ACP-EEC Convention1 entered into force on 1 September 1991;
      Whereas Protocol 6 thereof stipulates that products originating int he African,
      Caribbean and Pacific (ACP) States which fall within CN codes 2208 40 10, 2208 40
      90, 2208 90 11 and 2208 90 19 shall, until the entry into force of a common
      organization of the market in spirits, be allowed into the Community free of customs
      duties under conditions such as to permit the development of traditional traffic flows
      between the ACP States and the Community, whereas the Community shall until 31
      December 1995 fix each year the quantities which may be imported free of customs
      duties;
      "Whereas Council Regulation (EC) No 1989/942 opened a Community tariff quota
      (Order No 09.1605) for rum, tafia and arrack for the period 1 July 1994 to
      30 June 1995;
      Whereas economic data currently available suggests that the traditional trade flow
      between the ACP States and the Community in the rum sector has increased
      significantly and could, during the current period, attain levels higher than the
      volumes set by the Regulation referred to above, whereas accordingly the volume of
      the quota opened by Regulation (EC) No 1989/94 should be increased as provided
      for in Article 2(c) of Protocol No 6 referred to above;
Whereas, in view of the market demand from the three new Member States, the quota
 should be adjusted pursuant to Article 2(d) of the said Protocol;
Whereas additional imports of rum from ACP countries during the period covered by
 Regulation (EC) No 1989/94 is estimated at 50 000 hi of pure alcohol;
 (l)OJNoL229, 17.8.1991, p. 3.
 (2) OJ No L 200, 3.8.1994, p. 2.
 ---pagebreak---    Whereas pursuant to Protocol No 6 of the said Convention the volume of the tariff quota
   for the period from 1 July 1995 to 31 December 1995 will be equivalent to half that of the
   previous year increased by 10 000 hi of pure alcohol, whereas the volume of the annual
   tariff quota for the period from 1 July 1994 to 30 June 1995 was set at 294 827 hi of pure
   alcohol, whereas 10 000 hi of pure alcohol should be added to half of that volume for the
   second half of 1995;
   Whereas pursuant to the said Protocol, as regards the arrangements applicable from 1996,
   the Council, on the basis of a report from the Commission, has decided to abolish the
   quota system in respect of "light" ACP rum from 1 January 1996 and to maintain a tariff
   quota for "traditional" ACP rum pending full liberalization on 1 January 2000; whereas the
   volume of the tariff quota shall be set at 58 800 HPA for 1996, 61 000 HPA for 1997,
   64 000 HPA for 1998 and 67 00 HPA for 1999;
   Whereas for these reasons the appropriate definition of "traditional" ACP rum should be
   given; whereas to this end the general definition of rum given in Council Regulation
   (EEC) No 1576/893, which stipulates that traditional rum is characterized by a high
   content of volatile substances other than ethyl and methyl alcohol;
   Whereas equal and continuous access to the said quota should be ensured for all
   Community importers and the rates laid down for the quota should be applied consistently
   to all imports of the products in question into all the Member States until the quota is
    exhausted, whereas the decision for the opening of tariff quotas in fulfilment of its
    international obligations should be taken by the Community; whereas, to ensure the
    efficient common administration of these quotas, however, there is no obstacle to
    authorizing the Member States to draw from the quota volumes the necessary quantities
    corresponding to actual imports; whereas, however, this method of administration
    requires close cooperation between the Member States and the Commission and the latter
    must, in particular, be able to monitor the rate at which the quotas are used up and inform
    the Member States accordingly;
    Whereas measures should be laid down to ensure that Protocol 6 is implemented under
    conditions such as to permit the development of traditional trade flows between the ACP
    States and the Community, and between the Member States,
    HAS ADOPTED THIS REGULATION.
(3)OJNoL 160, 12.6.1989. p. 1
                                                      3
 ---pagebreak---                                                      Article 1
      The table given under Article 1 of Regulation (EC) No 1989/94 (Order No 09.1605) is
      replaced by the following table:
      Order No           CN code                  Description                   Quota              Quota duty
                                                                                volume (in
                                                                                hi of pure
                                                                                alcohol)
      09.1605            2208  40  10             Rum, tafia and arrack         294 827            Free
                         2208   40 90
                         2208   90 11
                         2208   90 19
                                                      Article 2
      From 1 July 1995 to 31 December 1995 the following products originating in the ACP
      States shall be imported into the Community free of customs duty within the limits of the
      relevant Community tariff quota shown below:
      Order No           CN code                   Description                  Quota              Quota duty
                                                                                volume (in
                                                                                hi of pure
                                                                                alcohol)
      09.1605            2208   40 10              Rum, tafia and arrack         157 414           Free
                         2208   40 90
                         2208   90 11
                         2208   90 19
                                                      Article 3
       The following products originating in ACP States shall be imported free of customs duties
       for the periods and within the limits of the Community tariff quotas shown next to each of
       them.
Order       CN code       Taric      Description                                  Period              Quota      Quota
No                        sub-                                                                        volume     duty
                          divi-                                                                        (in hi of
                          sions                                                                        pure
                                                                                                       alcohol)
09.1617     ex2208 40 10  *10              Rum with a content of volatile         1.1.96-31.12.96      58.000
            ex2208 40 90  *10              substances other than ethyl and        1.1.97-31.12.97      61.000    Free
                                           methyl alcohol equal to or exceeding    1.1.98-31.12.98     64.000
                                           225 grams per hectolitre of pure        1.1.99-31.12.99      67.000
                                           alcohol with a 10% tolerance
                                                          M
 ---pagebreak---                                                   Article 4
     The tariff quotas referred to in Articles 2 and 3 shall be administered by the Commission ,
     which may take all administrative measures to ensure the effective administration thereof.
                                                  Article 5
1.   The provisions required to implement Article 3, and in particular:
     (a) the technical amendments and adjustments which may be needed as a result of
          amendments to the Combined Nomenclature and the Taric codes,
      (b) the adjustments required as a result of the conclusion of protocols or exchanges of
          letters between the Community and the ACP States concerned in the framework of
           the Convention referred to herein
      shall be adopted in accordance with the procedure laid down in Article 6(2).
                                                Article 6
1.    The Commission shall be assisted by the Customs Code Committee established by
      Article 247 of Regulation (EEC) No 2913/924.
2.    The representative of the Commission shall submit to the committee a draft of the
      measures to be taken. The committee shall deliver its opinion on the draft within a time
      limit which the chairman may lay down according to the urgency of the matter. The
      opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the
      case of decisions which the Council is required to adopt on a proposal from the
      Commission. The votes of the representatives of the Member States within the committee
      shall be weighted in the manner set out in that Article. The chairman shall not vote.
      The Commission shall adopt measures which shall apply immediately. However, if these
      measures are not in accordance with the opinion of the committee, they shall be
      communicated by the Commission to the Council forthwith. In that event:
            the Commission shall defer application of the measures which it has decided upon for
            three months from the date of such communication,
             The Council, acting by a qualified majority, may take a different decision within the
            lime limit referred to in the previous indent.
3.     The committee may examine any issue in connection with the implementation of this
       Regulation put forward by its chairman either on his own initiative or at the request of a
       Member State.
 (4) OJ No L 302. 19.10.1992, p. 1
                                                          <
 ---pagebreak---                                                Article 7
If an impoitu presents in a Member Stale a declaration of cntiy lor lice circulation togclhci
with a request for preferential treatment for a product referred to in Articles 2 and 3 and the
declaration is accepted by the customs authorities, the Member State concerned shall inform
the Commission and iliaw an amount coiiesponding to these lequiienients ftom the quota
volume
Requests to draw from the quota, indicating the date of acceptance of the said declarations,
must be transmitted to the Commission without delay.
Drawings shall be granted by the Commission by reference to the date of acceptance by the
customs authorities of the Member State concerned, of the declarations of entry for free
cii< illation, provided the lesiduul balance so pennitN
If a Member State does not use the quantities drawn, it shall return them to the quota as soon
as possible.
If the quantities requested are greater than the available balance of the quota volume,
allocation shall be made on a pro rata basis The Member Stales shall be informed by the
Commission of the drawings granted.
                                                Article 8
Each Member State shall ensure that importers of the products concerned have equal and
continuous access to the quota as long as the residual balance so permits.
                                                AiticleV
 The Member States and the Commission shall cooperate closely to ensure that this Regulation
 is complied with
                                               Article 10
 Council Regulation (EEC) No 3705/90 of 18 December 1990 on the safeguard measures
 provided for in the Fourth ACP-EEC Convention5 shall apply to the products covered by this
 Regulation.
                                               Article 11
  I his Regulation shall entei into loi ce on the day following that ol its publication in the Official
 Journal of the European Communities.
 It shall apply from 1 July 1995 with the exception of Article 1 which shall apply from 1 July
  l"''l ami Aitkle \ which shall apply liom I lanuaiy I W ,
             This Regulation shall be binding in its entirety and directly applicable in all Member
             States
             Done at Brussels,
                                                                                  For the Council
                                                                                  The President
  (5) OJ No L 358, 21.12.1990, p. 4.
                                                          C
 ---pagebreak---                                FINANCIAL STATEMENT
1.     Budget heading involved: Chapter 12 Article 120
2.     Legal basis: Article 113 of the Treaty
3.     Title of the tariff measure: Proposal for a Council Regulation opening and
       providing for the administration of a Community tariff quota for rum, tafia and
       arrack originating in the African, Caribbean and Pacific (ACP) States (2nd half
       1995 and 1996 to 1999) and amending Regulation (EC) No 1989/94 opening and
       providing for the administration of a Community tariff quota for rum, tafia and
       arrack originating in the African, Caribbean and Pacific (ACP) States (1994 to
       1995).
4.     Objective: Fulfilment of contractual obligation (Lomé IV Convention)
5.     Method of calculation:
       CN codes: 2208 40 10, 2208 40 90, 2208 90 11, 2208 90 19
       Quota volume. 50 000 HPA (increase for the period 1.7.94 to 30.6.95)
                         157 414 HPA (period 1.7.95 to 30.6.95)
       CN codes: ex 2208 40 10, ex 2208 40 90
       Quota volume: 250 000 HPA (period 1.1.96 to 31.12.99)
Duties applicable, exemption
CCT duties: - 1 Ecu/% vol/hl +5 Ecu/hi (<2 1)
               - 1 Ecu/% vol/hl (>2 1)
6.     Loss of revenue:
Estimate: 137 224 hi in containers holding 2 litres or less
          320 190 hi in containers holding more than 2 litres
Losses would total ECU 46 427 520 (period up to 31.12.1999). For the preceding period
(1.7.1994 to 30.6.95) losses totalled ECU 23 891 935.
                                               ?
 ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(95) 262 final
                                              DOCUMENTS
EN                                                                   02 03     11
                                     Catalogue number : CB-CO-95-300-EN-C
                                                              ISBN 92-77-90603-0
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