CELEX: 51974PC0882
Language: en
Date: 1974-06-19
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of a Community tariff quota for newsprint falling within subheading No 48.01A of the Common Customs Tariff (1975) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 882
Vol. 1974/0134
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 ---pagebreak--- COMMISSION OF THE EUSOHBAN COMMUNITÏES
                                                         COM(74) 882 final
                                                         Brussels , 19 June 1974
                                PROPOSAL FOR A.
                       REGULATION ( EEC ) OP THE COUNCIL
             on the opening , allocation and administration of a
                          Community tariff quota for
               newsprint falling within subheading No 48 • 01A
                         of the Common Customs Tariff
                                      (1975)
                ( submitted to the Council by the Commission)
  C0M(74) 882 final
 ---pagebreak---                            ^IXPLAITATOPY lOWDRAraUM
1.    At the last multinational GATT negotiations , the Community
undertook to open annually a nil duty Community tariff quota for
625 000 metric tons of newsprint falling within subheading ITo 43»01A
of the Common Customs Tariff .
Furthermore , the Community informed the Nordic delegation ( text Nord 4
of document NCG ( 67)44 rev. ) that it had decided to open a nil duty
tariff quota each year under Article 23 of the Treaty of Rome if it
were established that all possibilities of supply on the internal
market of the Community had been exhausted during a given trading
year and after having entirely used up the nil duty quota of 625 000
metric tons bound under GATT .
Judging from market trends over the past few years it is clear already
that the 1975 Community tariff quota must be greater than the
625 000 metric tons originally established .     This is way the Commission
considers that it can propose the opening of a tariff quota for
3 100 000 metric tons .   This amount is based on provisional estimates ,
so that a review of the situation during the cofjrse of the year is
naturally not excluded .
2.    There still remains a general problem of tariff quotas bound
under GATT , since negotiations are still talcing place to revise quota
amounts following the accession to the Community of new Member States .
It appears unlikely that the results of these negotiations will be
knoi.Ti before this proposal is submitted to the Council .   Instruments
must therefore be prepared which will enable existing international
obligations to be fulfilled .
 ---pagebreak--- This is the sole purpose of the proposed Regulation .    The Commission
is , however , aware of the problems created "by the changing situation
in respect of newsprint and therefore reserves the right to alter its
proposal in the light of any needs which may arise .
3«   The tariff quota is allocated in accordance with the method which
has normally teen applied : allocation is based on past import figures
and on estimates for the quota year in question .
Furthermore , in view of the size of the quota proposed from the start ,
the Commission considers that it would "be contrary to the Community
nature of this quota to divide it up into shares allocated definitively
to all the Member States .   It therefore proposes a system of administration
based on the institution of a Community reserve of some 10Jfe .  This
system of allocation and administration was , moreover , unanimously
approved by all the Member States at a meeting of the Working Party
on Economic tariff problems held on 16 and 17 April 1 974 »
 ---pagebreak---                               Proposal for a
                       REGULATION ( EEC ) OP TEE COUNCIL
    on the opening , allocation and administration of a Community tariff
    quota for newsprint falling within subheading No 43*01 A of the
    Common Customs Tariff
                               ( 1S75 )
THE COUNCIL 07 THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community , and in particular Articles 113 and 28 thereof ;
Having regard to the proposal from the Commission ;
Whereas the European Economic Community has undertaken to open an
annual nil duty Community tariff quota of 625 000 metric tons of
newsprint falling within tariff subheading No 48 . 01 A ;
Whereas , in view of present production capacity within the Community ,
that quantity is insufficient to meet foreseeable import requirements ;
whereas provision- should therefore be made for an autonomous
supplementary quota which , having regard to the estimates submitted ,
may be fixed at present at 2 475 000 metric tons ; whereas the fact
that this figure has been adopted for the autonomous supplementary
quota docs not exclude the possibility of readjustment during the quota
period ; whereas a Community tariff quota should therefore be opened for
1S75 for a total quantity of 3 100 000 metric tons of newsprint ;
Whereas equal and continuous access to the quota should be ensured for
all Comnrunity importers and the rate of duty for the tariff quota
should be applied consistently to all imports on the product in
question until the quota is exhausted ; whereas in the light of these
principles , arrangements for the utilization of the Community tariff
quota based on an allocation among Member States would seem to be
consistent with the Community nature of the quota ; whereas , in order
that it may correspond as closely as possible to the actual trend of the
market in the product in question , allocation of the quota should be in
proportion to the requirements of the Member States as calculated by
reference to statistics of imports from third countries during a
representative reference period and to the economic outlook for the quota
period in question ;
 ---pagebreak--- Whereas , for the last three years for which full statistics are
available , the imports of each of: the Member States represented the
following percentages of total imports of the product in question :
                                  1971              1223
     Bénélux                    11.74     11.53    12.18
     Denmark                      4.66     7.02     6.92
     Germany                    29.12     26.65    27.03
     France                       6.86     7.64      9.45
     Ireland                      1.55     1.95     0
     Italy                       .0.07     0.06     0.34
     United Kingdom             46.00     45.15    44.08
Whereas , in order to evaluate those statistics properly , however ,
account must be taken of the fact that the opening of a Community tariff
quota for the enlarged Community may alter the pattern of trade of
Member States with third countries ; whereas , in view of the above and
of the expected evolution of the market in newsprint in general and
of production in particular , the first tranche of the 1975 quota may
be allocated approximately in the following percentages :
     Bénélux          ,         13.40
     Denmark                      6 . 80
     Germany                  '25.30
     France                     1 1 . 00
     Ireland                      0.72
     Italy                        1 . 43
     United Kingdom             40.85
 ---pagebreak---                                       -3-
 Whereas , to take account of future import trends for the product
 concerned , the quota should "be divided into two tranches , the first
"being allocated among the Member States and the second held as a
 reserve to cover subsequently the requirements of Member States which
have exhausted their initial shares ; whereas , to give importers some
degree of certainty , while still enabling Community production to be
disposed of on satisfactory terms , the first tranche of the quota
 should be fixed at 90?° of "the full amount ;
Whereas Member States may exhaust their initial shares at different
 rates ; whereas to avoid disruption of supplies on this account it
 should be provided that any Member State which has almost used up
its initial share should draw an additional share from the reserve ;
whereas each time its additional share is almost exhausted a Member
State should draw a further share , and so on as many times as the
 reserve allows ; whereas the initial and additional shares should be
valid until the end of the quota period ;      whereas this form of
 administration requires close collaboration between the Member States
and the Commission , and the Commission must be in a position to keep
account of the extent to which the quota has been used up and to
inform the Member States accordingly ;
 ---pagebreak---                                      -4-
Whereas if at a given date in the quota period a considerable quantity
of a Member State 's initial share remains unused it is essential , to
prevent a part of the Community tariff quota from remaining mused
in one Member State while it could be used in others , that such State
should return a significant proportion thereof to the reserve ;
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 transaction in respect
of the administration of the shares allocated to that Economic Union . ,
may be carried out by any one of its members ;
HAS ADOPTED THIS REGULATION :
                                 Article 1
1.  There shall be opened within the Community for the period 1 January
to 31 December 1975 » in respect of newsprint falling within
subheading No 48 .01 A of the Common Customs Tariff , a Community tariff
quota of 3 100 000 metric tons .
2.  Imports of the product in question shall not be counted under
this tariff quota if they are already free of customs duties under
other preferential tariff treatment                              ~"    .■
3.  The Common Customs Tariff duty shall be totally suspended in
respect of importations under the above quota .
4.  New Member States shall apply in respect of importations within the
quota duties calculated in accordance with the relevant provisions of
the Act of Accession .
 ---pagebreak---                                      -5-
                                    Article 2
1.   The Community tariff quota provided for in Article 1 shall be
divided into two tranches ."
2.   A first tranche of 3 000 metric tons shall be allocated among the
Member States .   The shares , which subject to Article 6 shall be valid
until 31 December 1974 , shall be as follows :
     Benelux                      374 000 metric tons
     Denmark                      190 000 metric tons
     Germany                      720 000 metric tons
     France                       307 000 metric tons
     Ireland                       20 000 metric tons
     Italy                         40 000 metric tons
     United Kingdom             1 140 000 metric tons
3.   The second tranche , of 309 000 tons , shall constitute a reserve .
                                   Article 3
1.   As soon as a Member State has used       or more of its initial
share as fixed in .article 2(2 ), or of that share minus any portion
returned to the reserve pursuant to Article 5i        shall forthwith , by
notifying the Commission , draw a second share , to the extent that the
reserve so permits , equal to 15/° of its initial share , rounded up as
necessary to the next whole number .
2.   As soon as a Member State , after exhausting its initial share ,
has used      or more of the second share drawn by it , that Member State
shall forthwith , in the manner and to the extent provided in paragraph
1 , draw a third share equal to 7*57® of its initial share .
 ---pagebreak---                                      -6-
3.  As soon as a Member State , after exhausting its second share , has
used $0$ or more of the third share drawn "by it , that Member State
shall , in the manner and to the extent provided in - paragraph 1 , draw
a fourth share equal to the third .
It shall continue in this fashion until the reserve is exhausted .
4.  By way of derogation from paragraphs 1 to 3 , a Member State may
draw shares lower than those specified in those paragraphs if there
are grounds for believing that those specified may not be used in full .
Any Member State applying this paragraph shall inform the Commission
of its grounds for so doing.
                                   Article 4
Additional shares dram pursuant to Article 3 shall be valid until
31 December 1975 *
                                   Article 5
A Member State which on 15 September 1975 has no"t exhausted its
initial share shall not later than 10 October 1975 return to the reserve
any unused portion in excess of 20/& of the initial amount .
It may return a greater portion if there are grounds for believing that
such portion may not be used in full .
Member States shall , not later than 10 October 1S75 » notify the Commission
of the total quantities of the product in question imported up to and
including 1 5 September 1 975 and charged against the Community quota and
of any portion of their initial shares returned to the reserve .
 ---pagebreak---                                        -7-
                                    Article 6
The Commission shall keep an account of the shares opened by the Member
 States pursuant to Articles 2 and 3 and shall , as soon as the information
reaches it , inform each State of the extent to t<hich the reserve has
been used up .
It shall , not later than 15 October 1975 * inform the Member States of
the amount still in reserve following any return of shares pursuant to
Article 5 «
It shall ensure that when an amount exhausting the reserve is drawn
the amount so drawn does not exceed the balance available , and to this
end shall notify the amount of that balance to the Member State making
the last drawing.
                                   Article 7
1.   Every Member State shall taice all appropriate measures to ensure
that additional shares dra..Ti pursuant to Article 3 are opened in such
a way that importations may be charged without interruption against
its accumulated share of the Community quota .
2.   Every Member State shall ensure that importers of the product in
question established in its territory have free access to the shares
allocated to it .
3.   Hie extent to -./hi ch a Member State has used up its share shall
be determined on the basis of the importations of the product in
question entered with the customs authorities for home use .
                                  Article 3
iwery Member State shall notify the Commission at regular intervals of
the importations charged against its share .
 ---pagebreak---                                  Article 9
The Member States and the Commission shall cooperate closely to ensure
that the provisions of the preceding Articles are complied with .
                                 Article 10
This Regulation shall onter into force on 1 January 1975 *
This Regulation shall "be binding in its entirety and directly applicable
in ali Member States .
Done at Brus sels ,
                                                  For the Council
                                                    The Président