CELEX: 51980PC0834
Language: en
Date: 1980-12-08
Title: Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of a Community tariff quota for newsprint falling within subheading 48.01 A of the Common Customs Tariff (1981) and extending this quota to include certain other types of paper (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 834
Vol. 1980/0266
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(80)834 final
                                                Brussels . 8 December 1980
                              Proposal for a
                         COUNCIL REGULATION ( EEC )
opening , allocating and providing for the administration of a
Community tariff quota for newsprint falling within subheading
48.01 A of the Common Customs Tariff ( 1981 ) and extending this
quota to include certain other types of paper
                            y           -
                        / .
                       -y v"'
             ( submitted to the Council by the Commission )
                      i™
C0M(80 ) 834 final
 ---pagebreak---                        EXPLANATORY MEMORANDUM
  At the last multilateral GATT negotiations, the Community undertook to open _
  annually a nil-duty Community tariff quota for 1 500 000 tonnes of newsprint
  falling within subheading 48.0'1 A 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 28 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 accounting period and after having entirely used up the
  nil duty quota bound under GATT.
  Moreover, Protocol N° 13 annexed to the Act of Accession also provides for the~
  opening of an autonomous Community tariff quota for this product when it has
  been established that all possibilities of supply on the internal market of the
  Community have been exhausted during the. period for which the quota is opened.
  Judging from market trends over the past few years it is already clear that the
. 1981 Community tariff quota to be opened must be greater than the 1 500 000
  tonnes originally established! The matter of the quota amount to be provided for
  1981 was the subject of a discussion by the Economic Tariff Questions Group on
  9 September 1980 , at the conclusion of which it transpired that :
   (i) the market for Community production in 1981 did not seem to be guaranteed
  at the moment and, therefore, that the condition imposed on the opening of an
  autonomous tariff quota by Protocol N° 13 , and by the commitment entered into
  with the Nordic delegation, did not therefore appear to be currently fulfilled ;
  (ii) the estimates, put forward by • the Member States, fixed their import
  requirements from third countries at 2 740 000 or 2 870 000 tonnes, according -to
  the level which might be reached by Community production, although the actual
  utilization of quotas opened for 1977, 1978 and 1979 was only 2 385 000, 2 500
  000 and 2 660 000 respectively and for 1980 it could be less than 2 700 000 .
  tonnes, while the consumption trend and the unfavourable current general
  economic situation would not justify such requirements for 1981 .
 ---pagebreak---                                           -2-
3.   Generally speaking, the Commission considers in this case that in view of the
     uncertainties regarding the , levels of consumption, production and imports from
     third countries, as well as' of the need to ensure parallel development of
     Community production        and of    supplies  for the consumer     industries, on
     satisfactory terms, it is necessary to show discretion in fixing the quota to be
     opened so as not to jeopardize the stability of the market. For the above reasons,
     the Commission proposes that the quota be fixed for 1981 at the anticipated
     minimum level of import requirements of the Member States, namely 2 500 000
     tonnes, and that the situation be reviewed in the course of the year.
4.   The tariff quota is allocated in accordance with the method which has normally
     been applied : allocation is based on past import figures and on estimates for the
     quota year in question.
                                     ι
     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 establishment of a
   . Community .reserve limited to 6 % . This system of allocation and administration
     was, moreover, unanimously approved by all Member States at the time of the
     opening of the tariff quota for previous years.
5.   Pending a definitive decision on the problem of watermark criteria, contained in
     the Additional Note to Chapter 48, it is proposed to renew for 1981 the
     possibility for the Member States to charge against the quota concerned other
     types of paper which, leaving aside the criteria of watermarks, correspond to the
     definition of newsprint to be found in the abovementioned Additional Note.
 ---pagebreak---                                          Proposal for
                           COUNCIL REGULATION (EEC)
                opening, allocating and providing for the administration of a
          Community tariff quota for newsprint falling within subheading 48.01 A
         of the Common Customs Tariff ( 1981 ) and extending this quota to include
                               _ certain other types of paper
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                                      v
Having regard to the Treaty establishing the European Economic Community, and in
particular Articles 28 and 113 thereof,
Having regard to the proposal from the Commission,
Whereas the Community has undertaken to open an annual dutyfree Community
tariff . quota of 1 500 000 £onnes of newsprint' falling within subheading 48.01 A
Whereas , in accordance with Protocol No 13 annexed to the Act of Accession ( 1 ),
each year an autonomous Community tariff quota is to be opened for this                   j
product when it has been established that all possibilities of supply on the
internal market of the Community will be exhausted during the period for                '
which the quota is opened ; '                                                             !
Whereas, in view of present Com'munity production capacity, the contractual quota of .
1 500 000 tonnes is insufficient to meet anticipated import requirements ; whereas
provision should therefore be made for ian autonomous supplementary quota which, in
order not to jeopardize the stability of the market and so as to ensure parallel
development of the market for Community production and of supplies for the
consumer industries on satisfactory terms, should be fixed at a level so that the total
quota does not exceed its anticipated minimum utilization, namely 2 500 000 tonnes ;
whereas the fact that the figure of 1 000 000 tonnes has been adopted for the
autonomous supplementary quota does not rule out a readjustment during the quota
period ; whereas a Community tariff quota should therefore be opened for 1981 for a .
total quantity of 2 500 000 tonnes of the product in question :
( 1 ) 03 No L 73, 27.3.1972, p. 14 .
 ---pagebreak---                          Whereas provision should be made for extending the
                         tariff quota in question to include certain types of paper
                         fulfilling all the conditions set out in the Additional
                       'Note to Chapter 48 except those relating to water
                         marks;
                        Whereas equal and continuous access to the quota
                        should be ensured for all Community importers and the -
                        rate of duty for the tariff quota should be applied
                        without interruption to all imports of the product in
                        question until the quota is exhausted; whereas in the
                        Jight 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 die -Member States as calculated by
                        reference to statistics on imports from third countries
                        during a representative reference period and to the
                        economic outlook for the year covered by the quota in
                        question;
Whereas, for the last three years for which complete statistics are available, the
imports of each of the Member States sharing in the above allocation amounted to the
following percentages of total imports of the products in question :
                                                          .1977                    1978   1979
      Bénélux           .               1 -    ,          14.41                   14.78  13.05
      Denmark                                              5.4 3                    6.55  5.85
      Germany                                             27.85                   25.28  25.64
      Greece                                                1.77                    1.66   1.16
      France                •                             11.82                   11,12  12.08
      Ireland                                               1.85                 - 1.94   1.76
      Italy                                                0.49 -                   0.89   1.03
      United Kingdom                                      38.15                   39.44  39.43 ;
 ---pagebreak---                                                  -   3  -
Whereas, in view of the above and of the foreseeable trend of the market in newsprint
in general and of Community production in particular during 1983„tbe initial quota
may be allocated approximately in the following percentages :
      Bénélux                                             11.91
      D en mark                                             7.00
      Germany                                             25.57
      Greece                                                2.45
      France                                              11.56                \
      Ireland                                               0.53
      Italy                                                 0.70
      United Kingdom                                      kQ . 28 ;
                  Whereas, to take account of 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 and yet enable
                  Community production to be disposed of on
                  satisfactory terms, the first tranche of the quota should
                  be fixed at about 94% of the full amount;
                  Whereas Member States may exhaust their initial shares
                  at different rates ; whereas to provide for this eventuality
                  and avoid disruption of supplies 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 th^ 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 latter 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;
                  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 unused in one
                  Member State while it could be used in others, that
                  the State in question 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 lihited within and jointly 1 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,
 ---pagebreak---                                                  - 4 -
                    HAS ADOPTED THIS REGULATION:
                                               Article 1
                    1 . During the period 1 January to 31 December 198 1,
                    a Community tariff quota of 2 5 00 000 tonnes shall be
                    opened in respect of newsprint falling " within
                    subheading 48.01 A of the Common Customs Tariff ( 1).
                    2. Member States may charge against this tariff quota
                    the other types of paper complying with the definition
                    of newsprint contained in the Additional Note to
                    Chapter 48, except as regards the criteria governing
                    watermarks.
                                       !
                    3 . Imports of newsprint shall not be charged against
                    this tariff quota if they are already free -of customs
                    duties under other preferential tariff treatment.
                    Furthermore, imports of any other paper referred 10 in -
                    paragraph 2 enjoying duty-free exemption under the
                    said tariff quota shall not be charged against the _
                  ' target ceilings fixed under certain free trade
                    agreements.              '
k. The Common Customs Tariff,, duty shall be totally suspended within the limits of the
      abovementioned quota .             -
     Within the limits of the abovementioned quota , Greece shall apply customs
     duties calculated in accordance with the relevant, provisions laid down in
                                                    (2)
     the Act of Accession of Greece
                                                    Article 2
1 . The Community tariff quota referred to in Article 1 shall be divided into two
tranches.                   -              ,
  ( 1 ) Entry under this subheading is subject to conditions to be determined
        by the competent authorities
  ( 2 ) OJ No L 291 , 19.11.1979 , p. 17
 ---pagebreak---                                                 - 5 -
2. A first tranche of 2 350 000 tonnes shall be allocated among the Member States.
Member States'shares, which subject to Article 5 shall be valid from 1 January until 31
December 1981 , shall be as follows :
                                                                   tonnes
      Bénélux                                                            e>° J
      Denmark                                                      164 500
      Germany                            .                         600 895
      Greece                                                            575
      France '                                                     271 660
      Ireland                                                       12 445
      Italy                 *                                       16 450
      United Kingdom                                               946 580
 3 . The second tranche , of 150 000 tonnes , shall constitute the reserve .
                                                                                I
                                                                                Ï
                                               Article 3
                  ' 1.  If 90 % or more of a Member State's initial share as
                    fixed in Article 2 (2), or of that share minus the portion,
                    returned to the reserve where Article 5 has been applied,
                    has been used up it 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. If, after.its initial share has been exhausted, 90 % or
                    more of the second share drawn by a Member State has
                    been used up, that Member State shall, in the manner *
                    and to the extent provided in paragraph 1 , draw a third
                    share equal to 7-5 % of its initial share.
                                                                        r
 ---pagebreak---                                                         - 6 -
3 . If, after its second share has been exhausted, 90 %        It shall ensure that when a quantity exhausting the
or more of the third share drawn by a Member State             reserve is drawn, the amount so drawn does not exceed
has been used up, that Member State shall , in the             the balance available, and to this end shall notify the
manner and to the extent provided in paragraph 1 ,             amount of that balance to the Member State making the
draw a fourth share equal to the third.                        last drawing.
This procedure shall apply until the reserve is
exhausted.                                                                              Article 7
4. Notwithstanding paragraphs 1 , 2 and- 3 , Member            1 . Member States shall take all appropriate measures
States may draw lesser shares than those specified in          to ensure that additional shares drawn pursuant to
those paragraphs if there are grounds for believing that       Article 3 are opened in such a way that imports may be
those specified may not be used in full. They shall            charged without interruption against their accumulated
inform the Commission of their reasons for applying            share of the Community quota.
this provision.
                                                               2. Member States shall take all measures necessary to
                         Article 4                             ensure that the types of paper referred to in Article 1 (2)
                                                               included in this tariff quota are in fact intended for the
Additional shares drawn pursuant to Article 3 shall be         printing of newspapers, weekly papers or other
valid until 31 December 1984 >                              . periodicals falling under heading No
                                                               4'9V02 of the Common Customs Tariff ,
                         Article S                            published at least 10 times per year ..
                                                               In such a case , checks to ensure that
The Member States shall return to the reserve, not later      the goods are used for their prescribed
than 1 October 198*7, the unused portion of their initial     end-use shall be carried out by employ­
share which, on 15 September 1987, is in excess of             ing the relevant Community provisions .
20 % of the initial amount. They may return a greater
portion if there are grounds for believing that such
portion may not be used in full.                              3. Member States shall ensure that importers of the
                                                              products in question established in their territory have
Member States shall, not later than 1 October 1987,           free access to the shares allocated to it.
notify -the Commission of the total quantities of the
products in question imported up to and including 15         4. The extent to which a Member State has used up its
September 198*7 and charged against the Community            shares shall be determined on the basis of imports of the
tariff quota and of any portion of their initial shares      products in question entered with the customs
returned to the reserve.                                     authorities for free circulation.
                              /
                         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 it has been notified, inform each
Member State of the extent to which* the reserve has
been used up.
It shall inform the Member States, not later than 5
October 1987 of the amount still in reserve after
amounts have been returned thereto pursuant to
Article 5 .
 ---pagebreak---                                                   Article 8
At the Commission's request, the Member States shall inform it of imports actually
charged against their shares.
                                                    Article 9                                       -
                            Member States and the Commission shall cooperate                    •
                            closely to ensure that this Regulation is complied with.
                             ;                                          '                      I1      '
                                                    Article 10
                            This Regulation shall enter into force on 1 January
                            1987 .                                              '             '
                                              i                                               -u
        This Regulation shall be binding in its entirety and directly applicable in all Member States.
                                                                                                  >
        Done at Brussels, .       .                                        -       -
                                                                             - For the Council
                    '                       ♦                                             . .
                                            1                                     The President