CELEX: 
Language: en
Date: 2019-12-17 00:00:00
Title: COMMISSION DELEGATED REGULATION (EU) …/... supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the rules for the administration of import and export tariff quotas subject to licences and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the lodging of securities in the administration of tariff quotas

EUROPEAN
                             COMMISSION
                                                      Brussels, 17.12.2019
                                                      C(2019) 8956 final
                   COMMISSION DELEGATED REGULATION (EU) …/...
                                         of 17.12.2019
    supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the
    Council as regards the rules for the administration of import and export tariff quotas
    subject to licences and supplementing Regulation (EU) No 1306/2013 of the European
   Parliament and of the Council as regards the lodging of securities in the administration
                                        of tariff quotas
EN                                                                                          EN
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
   1.       CONTEXT OF THE DELEGATED ACT
   The 2013 reform of the Common Agricultural Policy (CAP) confirmed that the management
   system of agricultural tariff quotas by import and export licences, as a tool for monitoring of
   these trade flows, should continue to apply.
   The tariff quotas derive either from international agreements or from autonomous acts based
   on Article 207 TFEU. The Union internal management of these quotas requires rules which
   are specific and complementary to the existing rules, in particular Delegated Regulations (EU)
   2016/1237 (on Licences); (EU) No 907/2014 (on securities and penalties); and (EU)
   2015/2446 (Customs Code).
   The Delegated Regulation complements the rules set out in Article 184 and is based on
   Article 186 of Regulation (EU) No 1308/2013 (CMO). It covers items that were previously
   laid down in more than 30 Commission Regulations.
   The management of certain over-demanded tariff quotas – in particular in the poultry sector
   and for garlic – need an overhaul due to increasing problems with the enforcement of the
   principle that tariff quotas should contribute to a proper functioning of the internal market.
   The aim of these rules is to reduce administrative burden linked to enforcement and to
   strengthen market stability. The system is further simplified by transfer of the management of
   the following, under-used tariff quotas to the first come/first served quota management:
   09.4020, 09.4057, 09.4058, 09.4203, 09.4460, 09.4015, 09.4091, 09.4261, 09.4262, 09.4421,
   09.4079, 09.4152, 09.4517, 09.4126, 09.4590, 09.4591, 09.4592, 09.4593, 09.4594, 09.4596,
   09.4599.
   Some of the general tariff quota rules laid down before the 2013 reform have not been
   updated. Therefore, some of these provisions need to be replaced by simpler rules that are
   aligned with Regulation (EU) No 1308/2013.
   2.       CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT
   In the period between July 2014 and 2019, extensive discussions took place with the experts
   of the Member States using the open working method developed by the Task Force CMO to
   coordinate the alignment of existing Regulations.
   The Commission discussed the draft Delegated Act with experts nominated by the Member
   States in the framework of the CMO Expert Group and took account of their views. In
   parallel, the Commission had multiple hearings with stakeholders and the feedback
   mechanism under the "better regulation" policy took place from 25 July to 22 August 2019.
   During the feedback mechanism, 26 contributions were received, one from EU sugar users,
   one for the garlic sector, one for cereals and rice sectors, 10 from Brazilian poultry exporters,
   and 13 from European meat (mainly poultry and beef) operators.
   On sugar, end users asked to be allowed to apply for licences; this is already the case, if the
   respect of the existing “end-use” obligation for certain categories of sugar.
   For garlic, the feedback mainly focused on the tariff quota with Chinese origin, to ensure that
   its management system is efficient and to allow access to newcomers. The majority of
   requests have been taken on board. Nevertheless, the Commission maintains different regimes
   for garlic with different origins due to international obligations, the sensitivity of certain
   imports, and to prevent frauds.
EN                                                  1                                                EN
 ---pagebreak---    The comments of the meat sector focused on the definition of the reference quantity. The
   respondents can be grouped in two categories (namely, Brazilian exporters and EU operators).
   The comments of different operators contained entire sections that were identical. Brazilian
   exporters asked to ensure that the reference quantity does not prevent the full use of the tariff
   quotas. The Delegated Regulation includes different instruments ensuring full use of the tariff
   quotas concerned and it had been strengthened following the contributions received from the
   feedback mechanism with a new specific transitional provision. The EU meat operators asked
   for certain elements of reference quantity concept to be changed. Certain of the proposed
   changes would have significantly undermined the effectiveness of the reference quantity, and
   therefore they were not viable. However, as far as possible, the Commission took on board the
   requests, without jeopardizing the setting up of a robust and efficient tariff quotas
   management system.
   The experts of the European Parliament were informed about all those discussions and invited
   to all the meetings.
   3.        LEGAL ELEMENTS OF THE DELEGATED ACT
   The delegated act supplements Regulation (EU) No 1308/2013 as regards the tariff quotas
   management. The delegated act is based on Regulation (EU) No 1308/2013, in particular on
   its Article 186 and on Regulation (EU) No 1306/2013, in particular on its Articles 64 and 66.
   Its scope is equivalent to the existing Commission Regulation (EC) No 1301/2006 on import
   quotas, and covers also certain specific items currently covered by Commission Regulations
   opening specific tariff quotas, in implementation of international agreements or legislative
   acts adopted based on Article 207 TFEU.
   Stakeholders and experts have called upon the Commission to respect certain differences
   between sectors. The delegated act therefore sets out the principles applying across sectors as
   regards eligibility requirements and conditions of transfers of rights between operators,
   requirements of lodging of security and other specific requirements set out in an international
   agreement or in an act based on Article 207 TFEU. Certain specific items for each sector,
   such as annual quota quantities, phasing over the year, methods of administration, procedures
   and specific issues concerning security are set out in the general and sectoral sections and in
   the Annexes to the Implementing Regulation that is to be adopted at the same time as this
   Regulation.
   The main new instruments introduced by this Delegated Regulation compared to the existing
   Commission Regulations consist of a specific proof of trade for certain over-demanded tariff
   quotas (declaration of the operator's independence (Article 12)), and the publication of licence
   holders' name and address on the official website of the Commission (Article 6). In order to
   discourage speculation with licences and avoid circumvention of the conditions set out in the
   Regulation, the transferability of licences is limited for tariff quotas to transfers to transferees
   meeting the same obligations as the licence titular holder (Article 7).
   This delegated regulation also contains new rules for the management of the quotas allowing
   Spain to import a quantity of 2 000 000 tonnes of maize and 300 000 tonnes of sorghum per
   year as well as allowing to import a quantity of 500 000 tonnes of maize per year into
   Portugal. To ensure that these quotas are fully used, provisions should be made for application
   of an import duty reduction to the system established pursuant to Regulation (EU) No
   642/2010. To ensure the highest efficiency of this measure, a duty free import period is
   established. In order to avoid as much as possible the harvesting periods of maize and
   sorghum in Spain and Portugal, 1 April is chosen as the beginning date of the duty free import
   period.
EN                                                  2                                                   EN
 ---pagebreak---    Finally, the delegated act repeals the existing Commission Regulations on tariff quotas
   managed with licences.
EN                                              3                                          EN
 ---pagebreak---                      COMMISSION DELEGATED REGULATION (EU) …/...
                                               of 17.12.2019
      supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the
      Council as regards the rules for the administration of import and export tariff quotas
      subject to licences and supplementing Regulation (EU) No 1306/2013 of the European
     Parliament and of the Council as regards the lodging of securities in the administration
                                             of tariff quotas
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the
   Council of 17 December 2013 establishing a common organisation of the markets in
   agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79,
   (EC) No 1037/2001 and (EC) No 1234/20071, and in particular Article 185, Article 186, and
   Article 223(2) thereof,
   Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the
   Council of 17 December 2013 on the financing, management and monitoring of the common
   agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94,
   (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/20082, and in
   particular Articles 64(6) and 66(3) thereof,
   Whereas:
   (1)     Regulation (EU) No 1308/2013 lays down rules regarding the management of tariff
           quota and special treatment of imports by third countries. It also empowers the
           Commission to adopt related delegated and implementing acts, in order to ensure
           smooth management of tariff quotas.
   (2)     In order to guarantee sound management of tariff quotas, eligibility requirements that
           an operator has to fulfil to submit an application for the licence within a tariff quota
           need to be laid down.
   (3)     To ensure that the obligation to import or export is complied with within the period of
           validity of the licence, the licences within tariff quotas should be issued subject to the
           lodging of a security. Derogations need to be established for the cases when the export
           licence is only intended to prove the Union origin of the exported products. Provisions
           should be laid down on the release and forfeiture of the security lodged for the
           participation in the tariff quotas.
   (4)     To ensure transparency and to enable the competent authorities to detect violations of
           the rules for the administration of tariff quotas, and in particular of the eligibility
           requirements, it is appropriate to require, for certain over-demanded tariff quotas, that
           the licence holders' name and addresses be published on the official website of the
           Commission for a limited period of time.
   1
           OJ L 347, 20.12.2013, p. 671.
   2
           OJ L 347, 20.12.2013, p. 549.
EN                                                   4                                                EN
 ---pagebreak---    (5) To ensure compliance with the rules on eligibility within tariff quotas, it is appropriate
       to lay down specific rules regarding the transferability of a licence within tariff quotas.
       Transfers should be possible only to transferees satisfying the same eligibility criteria
       as the applicant for a licence within a tariff quota.
   (6) In order to minimise speculative applications, one of the conditions for applying for a
       licence within certain tariff quotas listed in Commission Implementing Regulation
       (EU) …/…3 should be the past experience and involvement of an operator in the trade
       concerned with third countries. It is therefore necessary to lay down detailed rules
       regarding proof of the minimum experience in that trade with third countries.
   (7) Certain tariff quotas are considered to be sensitive, among other reasons, because they
       are over-demanded in a quota period or in one or more sub-periods, concern a product
       or a country of origin of particular importance for the proper functioning of the Union
       market, or because the rules for their administration have been circumvented or
       incorrectly applied in the past. To ensure proper administration of those sensitive tariff
       quotas, in particular to reduce the risk of circumvention of rules and to enable new,
       small and medium-sized operators to benefit from those tariff quotas, the maximum
       quantities to be applied for should be set out in the form of a reference quantity. Rules
       should also be laid down for the calculation and proof of that reference quantity.
   (8) The reference quantity should cover the quantities of the products released for free
       circulation in the Union under the preferential regime of the tariff rate quota
       concerned, the quantities of the same products released for free circulation in the
       Union under other applicable preferential regimes as well as under the non-preferential
       MFN regime. Consideration should also be given to ensuring a reasonable distribution
       of licences among different categories of operators, in particular ensuring access of
       new importers and small and medium sized operators. Therefore, a ceiling of the total
       reference quantity per operator needs to be introduced that should be proportionate to
       the total available quantity under a specific tariff quota, ensuring a reasonable balance
       between import performance of major importers and interests of new and smaller
       importers wishing to benefit from the tariff quota. To ensure continuity with the rules
       applicable before the entry into application of this Regulation, and at the same time to
       harmonise those rules, yet retain certain degree of flexibility, the ceiling of the total
       reference quantity has been set at 15%.
   (9) To better manage tariff quotas and to discourage speculation with licences and
       circumvention of the rules for the administration of tariff quotas, it is appropriate to
       require, for certain sensitive, highly demanded tariff quotas or certain tariff quotas
       where there has been circumvention in the past, listed in Implementing Regulation
       (EU) …./…, that operators register in a dedicated electronic system prior to applying
       for an import licence. Rules concerning storage of data in that electronic system
       should be established. It is also appropriate to provide that only operators that are not
       linked to another operator applying for the same tariff quota and operators that are
       linked to another operator applying for the same tariff quota but regularly perform
       substantial economic activities towards third parties may apply for import licences
       under those quotas. To this end, they should submit a declaration of independence
       when applying for an import licence. The format of the declaration of independence
       should be laid down.
   3
EN                                               5                                                 EN
 ---pagebreak---    (10) To ensure that the reference quantity, declaration of independence and prior
        compulsory registration requirements, do not hinder the full use of the tariff quotas
        concerned, it is appropriate to provide for the suspension of those requirements in
        exceptional circumstances.
   (11) In order to ensure that the specific conditions required for a special treatment on
        importation into a third country are met, it is appropriate to lay down rules on the issue
        of export licences.
   (12) In order to ensure that applicants provide accurate, up-to-date and truthful documents
        and information, it is appropriate to provide for a proportionate penalty system for
        failure to comply with that obligation.
   (13) In order to ensure an effective administration of tariff quotas, it is appropriate to lay
        down rules on the information to be notified by Member States to the Commission.
   (14) The accession of Spain and Portugal to the EU resulted in the application of common
        EU tariff barriers to Spanish and Portuguese imports and the loss of competitiveness
        for imports from certain non-EU countries. In the context of the agreements concluded
        under the Uruguay Round of multilateral trade negotiations the Union allowed annual
        imports of 2 000 000 tonnes of maize and 300 000 tonnes of sorghum to Spain and
        annual imports of 500 000 tonnes of maize to Portugal. In the case of the quotas for
        imports into Spain, the quantities of certain grain substitutes imported into Spain
        should be deducted from the total quantities imported.
   (15) In order to ensure a sound administration of those quotas, similar methods should be
        used for booking imports of maize and sorghum in Spain and in Portugal. Moreover,
        quantities imported under acts by which the Union granted specific trade concessions
        should not be taken into account.
   (16) Taking into account the specificities of the duty-free tariff quotas for imports of maize
        and sorghum into Spain and Portugal, it is appropriate to lay down specific rules
        concerning the use of the imported products, customs surveillance and administrative
        controls, the submission of licence applications, the securities to be lodged for such
        licences, the release and forfeiture of those securities and the information to be made
        available to the operators.
   (17) As this Regulation replaces the existing rules for the management of tariff quotas, the
        Union acts containing those rules should be repealed.
   (18) In order to avoid disrupting trade flows, it is necessary to provide for the continued
        application of the repealed acts to import licences that were issued on the basis of
        those acts prior to the date of entry into force of this Regulation. For the same purpose,
        it is appropriate to allow licence issuing authorities to establish the reference quantity
        in accordance with the repealed acts during the first two tariff quota periods following
        the entry into force of this Regulation.
   (19) In order to ensure a smooth transition to the rules provided for in this Regulation, to
        fulfil the obligation to notify the new rules to the World Trade Organisation prior to
        their application and to grant operators sufficient time to adapt to the obligation to
        register in a dedicated electronic system and to submit a declaration of independence
        through that electronic system for certain over-demanded tariff quotas, it is appropriate
        to defer the application of this Regulation until 1 January 2021,
EN                                                6                                                EN
 ---pagebreak---    HAS ADOPTED THIS REGULATION:
                                                 Chapter I
                                     Introductory provisions
                                                     Article 1
                                                       Scope
   This Regulation lays down rules supplementing Regulations (EU) No 1306/2013 and (EU) No
   1308/2013, respectively, as regards:
   (a)      the conditions and eligibility requirements that an operator has to fulfil to submit an
            application within the tariff quotas listed in Annex I to Implementing Regulation
            (EU) …/…;
   (b)      rules on the transfer of rights between operators;
   (c)      the lodging and release of securities;
   (d)      providing, where necessary, for any particular specific characteristics, requirements
            or restrictions applicable to the tariff quota;
   (e)      the specific tariff quotas provided for in Article 185 of Regulation (EU) No
            1308/2013.
                                                     Article 2
                                            Other applicable rules
   Regulation (EU) No 952/2013 of the European Parliament and of the Council4 and
   Commission Delegated Regulations (EU) No 907/20145, (EU) 2015/24466 and (EU)
   2016/12377 and Commission Implementing Regulation (EU) 2016/12398 shall apply, unless
   otherwise provided for in this Regulation.
   4
          Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying
          down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
   5
          Commission Delegated Regulation (EU) No 907/2014 of 11 March 2014 supplementing Regulation
          (EU) No 1306/2013 of the European Parliament and of the Council with regard to paying agencies and
          other bodies, financial management, clearance of accounts, securities and use of euro (OJ L 255,
          28.8.2014, p. 18).
   6
          Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU)
          No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain
          provisions of the Union Customs Code (OJ L 343, 29.12.2015, p. 1).
   7
          Commission Delegated Regulation (EU) 2016/1237 of 18 May 2016 supplementing Regulation (EU)
          No 1308/2013 of the European Parliament and of the Council with regard to the rules for applying the
          system of import and export licences and supplementing Regulation (EU) No 1306/2013 of the
          European Parliament and of the Council with regard to the rules on the release and forfeit of securities
          lodged for such licences (OJ L 206, 30.7.2016, p. 1).
   8
          Commission Implementing Regulation (EU) 2016/1239 of 18 May 2016 laying down rules for the
          application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with
          regard to the system of import and export licences (OJ L 206, 30.7.2016, p. 44).
EN                                                       7                                                         EN
 ---pagebreak---                                             Chapter II
                                          Common rules
                                                Article 3
                               Conditions and eligibility requirements
   1.       Operators applying for an import or export licence within a tariff quota shall be
            established and registered for VAT purposes in the Union. They shall submit their
            application for licence to the licence issuing authority of the Member State of their
            establishment and their VAT registration (hereinafter the "licence issuing authority").
   2.       Where an operator applies for a licence within a tariff quota that is subject to the
            proof of trade requirement set out in Annex I to Implementing Regulation (EU)
            …/…, it shall submit, together with the first licence application within each tariff
            quota period, proof of trade in accordance with Article 8 of this Regulation.
   3.       Where an operator applies for an import licence within a tariff quota that is subject to
            the reference quantity requirement set out in Annex I to Implementing Regulation
            (EU) …/…, it shall submit, together with the first licence application, the documents
            required in Article 10 of this Regulation for establishing the reference quantity.
   4.       Where an operator applies for an import licence within a tariff quota for which prior
            registration of operators is required pursuant to Annex I to Implementing Regulation
            (EU) …/…, it shall be registered in accordance with Article 13 of this Regulation
            prior to submitting that application.
   5.       Only operators that fulfil the requirement of independence set out in Article 11 and
            submit a declaration of independence in accordance with Article 12 may apply for
            tariff quotas for which prior registration of operators is required.
            By way of derogation from the first subparagraph, prior registration of operators
            shall not be required where the reference quantity requirement referred to in
            paragraph 3 was suspended in accordance with Article 9(9).
                                                Article 4
                                         Lodging of a security
   Issuing of the following licences shall be subject to the lodging of a security:
   (a)      import licences;
   (b)      export licences for the cheese quota opened by the United States of America set out
            in Section 2 of Chapter 7 of Implementing Regulation (EU) …/…. ;
   (c)      export licences for the milk powder quota opened by the Dominican Republic set out
            in Section 2 of Chapter 7 of Implementing Regulation (EU) …/…..
EN                                                  8                                                EN
 ---pagebreak---                                                      Article 5
                                   Release and forfeiture of securities
   1.     Article 7 of Delegated Regulation (EU) 2016/1237 shall apply to the release and
          forfeiture of securities for a licence for a tariff quota.
   2.     By way of derogation from Article 23(4) of Delegated Regulation (EU) No
          907/2014, where the release for free circulation in the Union or export from the
          Union took place within the period of validity of the licence, but the time limit for
          submission of the proof of that release or export is exceeded, the security shall be
          forfeited by 3% for each calendar day by which the time limit is exceeded.
   3.     The security shall be released for the quantities for which a licence has not been
          issued following the application of an allocation coefficient pursuant to Article 10 of
          Implementing Regulation (EU) .…/….
                                                     Article 6
      Publication of names of operators that hold licences for tariff quotas for which prior
                                   registration of operators is required
   1.     By way of derogation from Article 4(4) of Commission Implementing Regulation
          (EU) 2017/11859, at the end of each tariff quota period, the Commission shall
          publish on its official website the names, Economic Operators Registration and
          Identification (‘EORI’) numbers and addresses of the operators that, during the
          preceding tariff quota period, received licences for tariff quotas requiring compulsory
          registration of operators pursuant to Annex I to Implementing Regulation (EU)
          …/…, , whether as titular holders or transferees.
   2.     The data referred to in paragraph 1 shall be removed from the Commission official
          website 12 months after publication.
                                                     Article 7
                                             Transfer of licences
   1.     Import licences shall be transferable, except for the import licences within the tariff
          quotas for fresh and frozen beef and veal and pigmeat originating in Canada.
   2.     Export licences shall not be transferable.
   3.     In addition to the requirements laid down in Article 6 of Delegated Regulation (EU)
          2016/1237, the transferee shall be established and registered for VAT purposes in the
          Union.
   4.     Where the licence transfer concerns tariff quotas subject to the proof of trade
          requirement, the transferee shall provide proof of trade in accordance with Article 8.
   5.     Where the licence transfer concerns tariff quotas subject to the requirement of
          reference quantity, the transferee shall not be obliged to provide such proof.
   9
         Commission Implementing Regulation (EU) 2017/1185 of 20 April 2017 laying down rules for the
         application of Regulations (EU) No 1307/2013 and (EU) No 1308/2013 of the European Parliament and
         of the Council as regards notifications to the Commission of information and documents and amending
         and repealing several Commission Regulations (OJ L 171, 4.7.2017, p. 113).
EN                                                       9                                                   EN
 ---pagebreak---    6. Where the licence transfer concerns tariff quotas for which prior registration of
      operators is required, the transferee shall fulfil the following requirements prior to
      the licence transfer:
      (a)    it shall be registered in the LORI electronic system referred to in Article 13;
      (b)    it shall have submitted the declaration of independence referred to in Article 12
             for the tariff quotas concerned by the licence transfer,
      except where these requirements are suspended in connection with the suspension of
      the reference quantity requirement pursuant to Article 9(9) of this Regulation.
   7. The transferee shall provide evidence that it meets the eligibility requirements set out
      in paragraph 3, paragraphs 4 and 6 to the licence issuing authority which issued the
      licence to be transferred.
      Provision of the evidence may be simplified where the transferee is the titular holder
      of another, valid import licence issued under this Regulation, for the tariff quota
      order number and the tariff quota period concerned. In such case, the transferee may
      request its licence issuing authority, to submit a copy or reference to the electronic
      equivalent of the licence to the licence issuing authority of the transferor. Such copy
      shall constitute sufficient evidence of the fulfilment of the conditions and eligibility
      requirements set out in paragraph 3, 4 and 6, irrespective of whether it is in paper or
      electronic format.
   8. Once the licence transfer is made, the quantity released for free circulation in the
      Union under the licence shall be attributed to the transferee for the purposes of
      establishing proof of trade and the reference quantity.
                                            Article 8
                                         Proof of trade
   1. When applying for a specific tariff quota, operators shall prove that they exported
      from the Union or released for free circulation in the Union a minimum quantity of
      products of the sector concerned, as listed in points (a) to (w) of Article 1(2) of
      Regulation (EU) No 1308/2013.
      The minimum quantity of products to be exported from the Union or released for free
      circulation in the Union in each of the two consecutive 12-month periods ending 2
      months before the first application may be submitted for the tariff quota period is set
      out in Annexes II to XIII to Implementing Regulation (EU) .…/….
      For the purposes of the first subparagraph, the following shall apply:
      (a)    for the garlic tariff quotas listed in Annex VI to Implementing Regulation
             (EU), the sector concerned shall be the fruit and vegetables sector as listed in
             point (i) of Article 1(2) of Regulation (EU) No 1308/2013;
      (b)    for the mushrooms tariff quotas listed in Annex VII to Implementing
             Regulation (EU) …/…, the sector concerned shall be the processed fruit and
             vegetables products sector as listed in point (j) of Article 1(2) of Regulation
             (EU) No 1308/2013.
   2. By way of derogation from paragraph 1, the proof of trade shall cover:
EN                                             10                                              EN
 ---pagebreak---    (a) for the beef and veal tariff quotas listed in Annex VIII to Implementing
       Regulation (EU) …/…: the period of 12 months ending 2 months before the
       first application may be submitted for the tariff quota;
   (b) for the Canada pigmeat import quota opened under order number 09.4282: in
       addition to products from the pigmeat sector as defined in point (q) of Article
       1(2) of Regulation (EU) No 1308/2013, products falling under CN codes 0201,
       0202, 0206 10 95 or 0206 29 91;
   (c) for milk powder export quota opened by the Dominican Republic, referred to
       in Articles 55 to 57 of Implementing Regulation (EU) …/….. products of the
       tariff quota in question, exported to the Dominican Republic during one of
       three calendar years prior to lodging a licence application;
   (d) for the cheese export quota opened by the United States of America, referred to
       in Articles 58 to 63 of Implementing Regulation (EU) …/….. products falling
       under CN code 0406, exported to the United States of America in at least one
       of the three calendar years prior to the month of September preceding the start
       of the tariff quota period;
   (e) for the New Zealand butter tariff quota under order number 09.4195: products
       imported under tariff quota order numbers 09.4195 and 09.4182 during 24
       months prior to the month of November preceding the start of the tariff quota
       period;
   (f) for the New Zealand butter tariff quota under order number 09.4182: the period
       of 12 months prior to the month of November preceding the start of the tariff
       quota period.
EN                                      11                                             EN
 ---pagebreak---    3. Operators shall provide the proof of trade to the licence issuing authority by means
      of any of the following:
      (a)   customs data showing release for free circulation in the Union and containing,
            as required by the Member State concerned a reference to the operator as
            declarant referred to in Article 5(15) of Regulation (EU) No 952/2013 or as
            importer referred to in Group 3 of Chapter 3 of Title I of Annex B to Delegated
            Regulation (EU) 2015/2446 and in Group 3 of Title II of that Annex;
      (b)   customs data showing release for export from the Union and containing, as
            required by the Member State concerned, a reference to the operator as
            declarant referred to in Article 5(15) of Regulation (EU) No 952/2013 or as
            exporter referred to Article 1(19) of Delegated Regulation (EU) 2015/2446;
      (c)   a used licence duly endorsed by customs authorities showing the products'
            release for free circulation in the Union or export from the Union and
            containing a reference to the operator as a licence titular holder, or in case of
            transfer of licence, containing a reference to the operator as a transferee.
   4. Where customs data can only be generated or submitted in paper format, the print out
      of the customs declarations shall be certified as true copy by stamp and signature by
      the customs authorities of the Member State concerned.
   5. Licence issuing authorities and customs authorities may provide for simplified
      electronic formats for the documents and procedures referred to in this Article.
   6. Proof of trade shall not be required for quotas subject to the requirement of reference
      quantity, unless that requirement is suspended, pursuant to Article 9(9).
                                           Article 9
                                      Reference quantity
   1. The reference quantity shall be the average annual quantity of products released for
      free circulation in the Union during two consecutive 12-month periods ending 2
      months before the first application may be submitted for the tariff quota period.
      The reference quantity of merged operators shall be established by adding up the
      quantities of products released for free circulation in the Union by each of the
      operators involved in that merger.
      The reference quantity of an operator shall not exceed 15 % of the quantity available
      for the tariff quota concerned in the relevant tariff quota period.
   2. The reference quantity shall cover products released for free circulation in the Union
      which fall within the same tariff quota order number and have the same origin.
   3. The total quantity of products covered by applications for licences for one tariff
      quota submitted in a tariff quota period shall not exceed the applicant’s reference
      quantity for that tariff quota.
      Where the tariff quota period is divided in sub-periods, the reference quantity shall
      be split among the sub-periods. The share of the total reference quantity for a tariff
      quota sub-period shall be equal to the share of the total quantity of the import tariff
      quota available for that sub-period.
EN                                            12                                              EN
 ---pagebreak---        Applications, which do not comply with the rules set out in the first and second
       subparagraphs shall be declared inadmissible by the competent licence issuing
       authority.
   4.  By way of derogation from paragraphs 1 and 2, for garlic originating in Argentina
       under order number 09.4104, the reference quantity shall be the average of the
       quantities of fresh garlic, falling within CN code 0703 20 00, released for free
       circulation during the three calendar years preceding the tariff quota period.
   5.  By way of derogation from paragraph 1, for the beef and veal tariff quotas, listed in
       Annex VIII to Implementing Regulation (EU) …/…, the reference quantity shall be
       the quantity of products released for free circulation in the Union during 12 months
       ending 2 months before the first application may be submitted for the tariff quota
       period.
   6.  By way of derogation from paragraph 2, the reference quantity shall be calculated by
       cumulating the quantities of products released for free circulation in the Union,
       which fall within each of the following three consecutive quota order numbers set out
       in Annex I to Implementing Regulation (EU) …./…:
       09.4211, 09.4212 and 09.4213;
       09.4214, 09.4215 and 09.4216;
       09.4410, 09.4411 and 09.4412.
   7.  By way of derogation from paragraph 3, for the tariff quotas under order numbers
       09.4211, 09.4212 and 09.4213, the total quantity of products covered by licence
       applications submitted in the tariff quota period for those three tariff quotas shall not
       exceed the applicant’s total reference quantity for those three tariff quotas. The
       applicant may choose how to sub-divide the total reference quantity among the tariff
       quotas for which applications are submitted. This rule shall also apply to tariff quotas
       under order numbers 09.4214, 09.4215 and 09.4216 and order numbers 09.4410,
       09.4411 and 09.4412.
   8.  The Commission shall suspend the reference quantity requirement where, by the end
       of the ninth month of a tariff quota period, the quantities applied for under a tariff
       quota are lower than the quantity available under that tariff quota for that tariff quota
       period.
   9.  The Commission may suspend the reference quantity requirement for any tariff quota
       set out in Annex I to Implementing Regulation (EU) …./… where unforeseeable and
       exceptional circumstances threaten to cause underutilisation of that tariff quota.
   10. The duration of the suspension shall not exceed the tariff quota period.
   11. The Commission shall notify the suspension of the reference quantity requirement in
       accordance with Article 188 of Regulation (EU) No 1308/2013.
                                              Article 10
                                   Proof of the reference quantity
   1.  The reference quantity shall be established on the basis of a certified print out of the
       customs declaration finalized for release for free circulation. The customs declaration
       shall refer to the products mentioned on the invoice referred to in Article 145 of
EN                                           13                                                  EN
 ---pagebreak---            Commission Implementing Regulation (EU) 2015/244710, and shall indicate,
           depending on the requirements of each Member State, whether the licence applicant
           is a declarant as referred to in Article 5(15) of Regulation (EU) No 952/2013 or an
           importer as referred to in Group 3 of Chapter 3 of Title I of Annex B to Delegated
           Regulation (EU) 2015/2446 and in Group 3 of Title II of that Annex.
   2.      The operator shall ensure that the customs declaration for free circulation in the
           Union that it uses to establish the reference quantity contains the number of the
           invoice referred to in Article 145 of Implementing Regulation (EU) 2015/2447.
           Operators shall also present the invoice to the licence issuing authorities for
           establishing its reference quantity. The invoice shall include at least:
           (a)    the name of the importer or declarant;
           (b)      product description associated with its 8 digits CN Code;
           (c)     the invoice number.
   3.      Licence issuing authorities shall compare the information on invoices, import
           licences and customs declarations. The documents shall not contain discrepancies as
           regards the importer's or declarant's identity, product description and invoice number.
           The verifications of those documents shall be made based on Member States' risk
           analysis.
   4.      The licence issuing authority may decide that the invoices be submitted in electronic
           format.
   5.      The certified print out of the customs declaration referred to in paragraph 1 may be
           replaced by electronic submission of customs data by the customs authority to the
           licence issuing authority, according to the procedures and methods set out in Article
           14 of Implementing Regulation (EU) 2016/1239. Licence issuing authorities and
           customs authorities may provide for simplified electronic formats for the documents
           and procedures referred to in this paragraph.
   6.      Where an operator proves, to the satisfaction of the Member State competent
           authority that the quantity of products it released for free circulation in any of the 12-
           month periods referred to in Article 9 was affected by sanitary or phytosanitary
           measures put in place by the exporting country or by the Union, it shall be allowed to
           use the previous 12-month period not affected by those measures to establish the
           reference quantity.
                                                  Article 11
      Requirement of independence of operators applying for tariff quotas for which prior
                                  registration of operators is required
   1.      Operators may apply for tariff quotas for which prior registration of operators is
           required only where:
           (a)    they are not linked with other legal or natural persons applying for the same
                  tariff quota order number; or
   10
         Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed
         rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament
         and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).
EN                                                     14                                                    EN
 ---pagebreak---       (b)   they are linked with other legal or natural persons applying for the same tariff
            quota order number but regularly perform substantial economic activities.
   2. An operator is linked with other legal or natural persons in the following cases:
      (a)   where it owns or controls another legal person; or
      (b)   where it has family links to another natural person; or
      (c)   where it has an important business relationship with another legal or natural
            person.
   3. For the purposes of this Article, the following definitions shall apply:
      (a)   ‘owns another legal person’ means being in possession of at least 25 % of the
            proprietary rights in another legal person;
      (b)   ‘controls another legal person’ means any of the following:
            (i)    having the right to appoint or remove a majority of the members of the
                   administrative, management or supervisory body of such legal person,
                   group or entity;
            (ii)   having appointed solely as a result of the exercise of one's voting rights a
                   majority of the members of the administrative, management or
                   supervisory bodies of a legal person who have held office during the
                   present and previous financial year;
            (iii) controlling alone, pursuant to an agreement with other shareholders in or
                   members of a legal person, group or entity, a majority of shareholders' or
                   members' voting rights in that legal person, group or entity;
            (iv) having the right to exercise a dominant influence over a legal person,
                   group or entity, pursuant to an agreement entered into with that legal
                   person, group or entity, or to a provision in its memorandum or articles of
                   association, where the law governing that legal person, group or entity
                   permits its being subject to such agreement or provision;
            (v)    having the power to exercise the right to exercise a dominant influence
                   referred to in point (iv), without being the holder of that right;
            (vi) having the right to use all or part of the assets of a legal person, group or
                   entity;
            (vii) managing the business of a legal person, group or entity on a unified
                   basis, while publishing consolidated accounts;
            (viii) sharing jointly and severally the financial liabilities of a legal person,
                   group or entity, or guaranteeing them;
      (c)   ‘has family links’ means any of the following:
            (i)    the operator is the spouse, brother, sister, parent, child or grandchild of
                   another operator applying for the same tariff quota order number;
            (ii)   the operator is the spouse, brother, sister, parent, child or grandchild of
                   the natural person who owns or controls another operator applying for the
                   same tariff quota order number;
EN                                             15                                               EN
 ---pagebreak---       (d)    ‘important business relationship’ means any of the following:
             (i)    the other person owns directly or indirectly at least 25% of the shares in
                    the operator;
             (ii)   the operator and the other person, directly or indirectly, jointly control a
                    third person;
             (iii)   the operator and the other person            are employer and employee
                    respectively;
             (iv) the operator and the other person are legally recognised partners in
                    business or are officers or directors in the same legal person;
      (e)    ‘substantial economic activities’ means actions or activities carried out by a
             person with the objective to ensure production, distribution or consumption of
             goods and services.
      For the purposes of point (e), activities carried out with the sole purpose of applying
      for tariff quotas shall not be considered as substantial economic activities.
   4. Where the operator is linked with other legal or natural persons applying for the
      same tariff quota order number, it shall fulfil the following obligations when
      registering in the LORI electronic system:
      (a)    it shall prove that it regularly performs substantial economic activities by
             submitting at least one of the documents referred to in the section “Economic
             operator proof of substantial economic activity” of Annex II;
      (b)    it shall disclose the identity of the natural or legal persons to which it is linked
             by filling the relevant section of Annex II.
   5. The Commission may suspend the declaration of independence requirement where
      the reference quantity requirement is suspended pursuant to Article 9(9).
      The duration of the suspension shall not exceed the tariff quota period.
   6. The Commission shall notify the suspension of the declaration of independence
      requirement in accordance with Article 188 of Regulation (EU) No 1308/2013.
                                           Article 12
                                Declaration of independence
   1. The applicant for tariff quotas for which prior registration of operators is required
      shall submit a declaration of independence through the LORI electronic system,
      using the model declaration set out in Annex I.
   2. In its declaration of independence, the applicant shall make one of the following
      statements, depending on its situation:
      (a)    a declaration that the applicant is not linked with other legal or natural persons
             applying for the same tariff quota order number;
      (b)    a declaration that the applicant is linked with other legal or natural persons
             applying for the same tariff quota order number but regularly performs
             substantial economic activities.
   3. The applicant shall ensure that all information contained in its declaration of
      independence is at all times accurate and up to date.
EN                                             16                                                 EN
 ---pagebreak---    4.   When determining whether the applicant regularly performs substantial economic
        activities, the licence issuing authority shall take into account the type of economic
        activity carried out by the applicant, the expenditure made, the sales and turnover of
        the applicant in the Member State of its VAT registration.
        At the request of the competent licence issuing authority, the applicant shall make
        available all documents and evidence necessary for the verification of the
        information provided for in the declaration of independence.
   5.   The competent licence issuing authority shall accept the declaration of independence
        only if it is satisfied that the documents submitted in the LORI system are correct and
        up to date.
   6.   The applicant shall notify the competent licence issuing authority of any changes
        affecting the declaration of independence within 10 calendar days from the date on
        which such changes take effect. The competent licence issuing authority shall record
        those changes in the LORI electronic system after having validated them.
   7.   The declaration of independence shall remain valid as long as the operator fulfils the
        requirements set out in Article 11(1).
                                                Article 13
                             Prior compulsory registration of operators
   1.   The Commission shall set up a Licence Operator Registration and Identification
        (LORI) electronic system, in accordance with Commission Delegated Regulation
        (EU) 2017/118311 and Implementing Regulation (EU) 2017/1185.
   2.   Applications for registration in the LORI electronic system shall be made using an
        electronic form made available by the licence issuing authority to operators. This
        form shall include the information set out in Annex II.
   3.   Only operators established in the customs territory of the Union and having an EORI
        number may apply for registration in the LORI electronic system. They shall apply to
        the licence issuing authority of the Member State in which they are established and
        registered for VAT purposes.
   4.   The application for registration shall be submitted at least two months before the
        month in which the operator intends to submit its licence application. The operator
        shall provide a valid email address for correspondence, and shall maintain a valid
        email address in the LORI electronic system for communication with the licence
        issuing authority.
   5.   Where the competent licence issuing authority finds that the information submitted
        by an operator for registration in the LORI electronic system or for a change in its
        LORI record is correct and up to date and complies with this Regulation and with
        Implementing Regulation (EU) …/…., it shall validate the registration or the change
        and notify the Commission of the validation through the LORI electronic system.
   6.   The licence issuing authority shall reject the application for registration where the
        applicant fails to prove to its satisfaction that the information provided as set out in
        Annex II is correct and up to date. The licence issuing authority shall record the date
   11
      Commission Delegated Regulation (EU) 2017/1183 of 20 April 2017 supplementing Regulations (EU)
      No 1307/2013 and (EU) No 1308/2013 of the European Parliament and of the Council with regard to
      the notifications to the Commission of information and documents (OJ L 171, 4.7.2017, p. 100).
EN                                                  17                                                EN
 ---pagebreak---        of rejection of the application and shall notify the rejection to the applicant together
       with the reasons for rejection.
   7.  Based on the notification of the licence issuing authority, the Commission shall
       register the applicant in the LORI electronic system and inform the licence issuing
       authority of the registration. The licence issuing authority shall notify the registration
       to the applicant.
   8.  Once the operator is registered in the LORI electronic system, the registration is
       valid until its withdrawal.
   9.  Data concerning the registered operator stored in the LORI electronic system shall
       constitute its LORI record. This data shall be stored throughout the registration of the
       operator and for seven years following the withdrawal of the operator's registration
       from the LORI electronic system.
   10. The licence issuing authority shall withdraw the registration in the following cases:
       (a)   upon request by the registered operator;
       (b)    where the licence issuing authority becomes aware that the registered operator
             no longer meets the conditions and eligibility requirements for applying for
             tariff quotas requiring compulsory registration for operators.
   11. The licence issuing authority shall record the date of withdrawal of the registration
       and shall notify it to the operator concerned together with the reasons for the
       withdrawal.
   12. The operator shall notify the competent licence issuing authority of any changes
       affecting its LORI record within 10 calendar days from the date of effectiveness of
       such changes. The Commission shall record those changes in the LORI electronic
       system after their validation by the competent licence issuing authority.
   13. The Commission may suspend the requirement of prior registration of operators in
       the LORI electronic system where the reference quantity requirement has been
       suspended pursuant to Article 9(9).
       The duration of the suspension shall not exceed the tariff quota period.
   14. The Commission shall notify the suspension of the requirement of prior registration
       of operators in the LORI system in accordance with Article 188 of Regulation (EU)
       No 1308/2013.
                                          Article 14
                      Complaints for undue registration of an operator
   1.  Operators registered in the LORI electronic system, which suspect that another
       registered operator does not meet the conditions and eligibility requirements for
       applying for tariff quotas for which prior registration is required, may submit
       complaints to the licence issuing authority of the Member State where they are
       established and registered for VAT purposes. Such complaints must be substantiated.
       Each licence issuing authority shall make available to the operators a system for the
       submission of such complaints and shall inform the operators of that system when
       they apply for registration in the LORI electronic system.
EN                                            18                                                  EN
 ---pagebreak---    2.        If the licence issuing authority of the Member State where the complainant is
             established finds the complaint to be founded, it shall follow it up with the controls
             that it deems appropriate. Where the controlled operator is established and registered
             for VAT purposes in another Member State, the licence issuing authority of that
             Member State shall provide the necessary assistance in a timely manner. The result
             of the control shall be recorded by the licence issuing authority of the Member State
             where the operator concerned is established and registered for VAT purposes, in the
             LORI electronic system, as part of its LORI record.
                                                  Article 15
                                                  Penalties
   1.        Where the competent licence issuing authority finds that an operator applying for an
             import or export licence for tariff quota or its transfer has presented an incorrect
             document or has submitted incorrect data or data that is not up to date in the context
             of the registration into the LORI electronic system, and where that document is
             essential for issuing that import or export licence, it shall take the following
             measures:
             (a)    bar the operator from releasing for free circulation in the Union or exporting
                    from the Union any products under the import or export tariff quota concerned
                    for the entire tariff quota period during which such finding was made;
             (b)    exclude the operator from the licence application system for the import or
                    export tariff quota concerned for a tariff quota period following the tariff quota
                    period during which such finding was made.
           Where the licence issuing authority finds that an operator applying for an import or
           export licence for tariff quota or its transfer has deliberately presented an incorrect
           document or has deliberately omitted to update data in its LORI record in the context
           of the registration into the LORI electronic system, and where that document or data is
           essential for issuing that import or export licence, the exclusion of the operator
           referred to in point (b) of the first subparagraph shall apply for two tariff quota periods
           following the tariff quota period during which such finding was made.
   2.        Where release for free circulation under an import licence has been made prior to the
             findings referred to in paragraph 1 any undue financial advantages resulting
             therefrom shall be recovered.
   3.        The penalties referred to in paragraph 1 shall be without prejudice to any additional
             penalties under national law or Union law, and without prejudice to the rules on the
             protection of the Union's financial interests.
                                                  Article 16
                             Special treatment on importation into a third country
   Whenever exported products benefit from a special treatment on importation into a third
   country, pursuant to Article 186(2) of Regulation (EU) No 1308/2013, exporters shall be
   allowed to request an export license certifying that such conditions for a special treatment on
   importation into a third country are met. The competent authorities of Member States shall
   issue such license once they are satisfied, by means they find appropriate, that such conditions
   are met.
EN                                                    19                                               EN
 ---pagebreak---                                                Article 17
                                   Notifications to the Commission
   Member States shall notify the Commission for each tariff quota period of the following
   information using the notification system established by Delegated Regulation (EU)
   2017/1183 and Implementing Regulation (EU) 2017/1185:
           (a)    the quantities covered by import or export licence applications;
           (b)    the quantities covered by import or export licences issued;
           (c)    the non-used quantities covered by unused or partly used import or export
                  licences;
           (d)    the quantities allocated to operators within a tariff quota for which import or
                  export licences were not issued;
           (e)    the quantities released for free circulation or exported under the import or
                  export licences issued;
           (f)    for tariff quotas for which prior registration of operators is required:
                  (i)   the names, the EORI numbers and addresses of operators having received
                        import licences or of the transferees of an import licence;
                  (ii)  for each operator, the quantities applied for;
                  (iii) applications for registration in the LORI electronic system which have
                        been validated and rejected, registrations which have been withdrawn,
                        and validations and rejections of changes in the LORI record;
           (g)    for import tariff quotas administered with documents issued by third countries,
                  for each certificate of authenticity or Inward Monitoring Arrangement (‘IMA
                  1’) certificate referred to in Annex XIV to Implementing Regulation (EU)
                  …./…. lodged by an operator, the number of the corresponding licence issued
                  and the quantities covered.
                                           Chapter III
     Specific tariff quotas pursuant to Article 185 of Regulation (EU)
                                          No 1308/2013
                                               Article 18
                                         Opening of the quotas
   1.      Two quotas for imports of a maximum quantity of 2 000 000 tonnes of maize falling
           under CN code 1005 90 00 and 300 000 tonnes of sorghum falling under CN code
           1007 90 00 from third countries, for release for free circulation in Spain, shall be
           opened each year from 1 January.
   2.      One tariff quota for imports of a maximum quantity of 500 000 tonnes of maize
           falling under CN code 1005 90 00 from third countries, for release for free
           circulation in Portugal, shall be opened each year from 1 January.
EN                                                 20                                             EN
 ---pagebreak---                                           Article 19
                                Administration of the quotas
   1. The quantities for import into Spain referred to in Article 18(1) shall be reduced in
      proportion to any quantities of residues of starch manufacture from maize falling
      within CN codes 2303 10 19 and 2309 90 20, brewing and distilling dregs and waste
      falling within CN code 2303 30 00 and citrus pulp residues falling within CN code
      ex 2308 00 40 imported into Spain from third countries during the year concerned.
   2. The Commission shall book for the quotas referred to in Article 18(1) and (2):
      (a)    the quantities of maize falling under CN code 1005 90 00 and sorghum falling
             under CN code 1007 90 00 imported into Spain and the quantities of maize
             falling under CN code 1005 90 00 imported into Portugal during each calendar
             year;
      (b)    the quantities of residues of starch manufacture from maize, brewing and
             distilling dregs and waste and residues of citrus pulp, referred to in paragraph
             1, imported into Spain during each calendar year.
   3. For the purposes of booking quantities for the quotas referred to in Article 18(1) and
      (2), imports in Spain and Portugal carried out under acts by which the Union granted
      specific trade concessions shall not be taken into account.
                                          Article 20
                         Use of imported products and surveillance
   1. The quantities of maize and sorghum referred to in Article 18(1) shall be allocated to
      processing or use in Spain. The quantities of maize referred to in Article 18(2) shall
      be allocated to processing or use in Portugal.
   2. Maize and sorghum released for free circulation at zero duty in accordance with
      Article 21 shall remain under the customs surveillance or under administrative
      control of equivalent effect until they are used or processed.
   3. The Member State concerned shall, if need be, take all necessary measures to ensure
      that the surveillance referred to in paragraph 2 is carried out. These measures shall
      include requiring importers to submit to any check considered necessary by the
      competent authorities and to keep specific records enabling the authorities to make
      such checks.
   4. The Member State concerned shall immediately notify the Commission of the
      measures adopted pursuant to paragraph 3.
                                          Article 21
                                    Duty free imports
   1. A zero import duty shall be applied from 1 April of each calendar year for imports of
      maize and sorghum into Spain and for imports of maize into Portugal, within the
      quantitative limits laid down in Article 18(1) and (2).
   2. The imports referred to in paragraph 1:
      (a)    shall be managed according to the method referred to in Article 184(2)(b) of
             Regulation (EU) No 1308/2013;
EN                                            21                                              EN
 ---pagebreak---              (b)   shall be covered by licences issued by the Spanish and Portuguese competent
                   authorities.
             The licences referred to in point (b) shall be valid only in the Member State in which
             they are issued.
   3.        From the date of application of the zero import duty defined in paragraph 1, the
             Commission shall publish on the sixth day of each month at the latest, by appropriate
             means, the quantities of the quotas referred to in Article 18(1) and (2) which are
             available on the first day of each month.
                                                 Article 22
                           Security at application and performance security
   1.        The security referred to in Article 4, the rate of which is set out in Annex II to
             Implementing Regulation (EU) ..../… shall be lodged by the applicant with the
             licence issuing authority before the end of the application period.
   2.        In addition to the security referred to in paragraph 1, the issue of the licence shall be
             subject to a performance security being available by the date of release for free
             circulation at the latest.
   3.        The rate of the performance security referred to in paragraph 2 shall be equal to the
             import duty for maize and sorghum, fixed in accordance with Regulation (EU) No
             642/2010 and applicable on the day of licence application.
                                                 Article 23
                                   Specific rules on transfer of licences
   By way of derogation from Article 6 of Delegated Regulation (EU) 2016/1237, the rights
   arising from import licences shall not be transferable.
                                                 Article 24
                          Release and forfeiture of the performance security
   1.        Without prejudice to the surveillance measures adopted pursuant Article 20(2), the
             performance security referred to in Article 22(2) shall be released where the importer
             provides proof that:
             (a)   the imported product has been processed or used in the Member State of
                   release for free circulation; that proof may be provided in the form of a sale
                   invoice to a processor established in the Member State of release for free
                   circulation;
             (b)   the product could not be imported, processed or used for reasons of force
                   majeure;
             (c)   the imported product has become unsuitable for any use whatsoever.
   2.        The proof referred to in paragraph 1 shall be provided within 18 months of the date
             of acceptance of the declaration of release for free circulation, failing which the
             security shall be forfeited.
EN                                                   22                                                EN
 ---pagebreak---    3.     For the purposes of this Article, the processing or utilisation of the imported product
          shall be considered to have been effected if 95 % of the quantity released for free
          circulation has been processed or used.
                                                 Chapter IV
                              Transitional and final provisions
                                                      Article 25
                                                       Repeals
   Commission Regulations (EC) No 2307/9812, (EC) No 2535/200113, (EC) No 1342/200314,
   (EC) No 2305/200315, (EC) No 969/200616, (EC) No 1301/200617, (EC) No 1918/200618,
   (EC) No 1964/200619, (EC) No 1979/200620, (EC) No 341/200721, (EC) No 533/200722, (EC)
   No 536/200723, (EC) No 539/200724, (EC) No 616/200725, (EC) No 964/200726, (EC) No
   12
         Commission Regulation (EC) No 2307/98 of 26 October 1998 on the issue of export licences for dog
         and cat food falling within CN code 2309 10 90 qualifying for special import treatment in Switzerland
         (OJ L 288, 27.10.1998, p. 8).
   13
         Commission Regulation (EC) No 2535/2001 of 14 December 2001 laying down detailed rules for
         applying Council Regulation (EC) No 1255/1999 as regards the import arrangements for milk and milk
         products and opening tariff quotas (OJ L 341, 22.12.2001, p. 29).
   14
         Commission Regulation (EC) No 1342/2003 of 28 July 2003 laying down special detailed rules for the
         application of the system of import and export licences for cereals and rice (OJ L 189, 29.7.2003, p.
         12).
   15
         Commission Regulation (EC) No 2305/2003 of 29 December 2003 opening and providing for the
         administration of a Community tariff quota for imports of barley from third countries (OJ L 342,
         30.12.2003, p. 7).
   16
         Commission Regulation (EC) No 969/2006 of 29 June 2006 opening and providing for the
         administration of a Community tariff quota for imports of maize from third countries (OJ L 176,
         30.6.2006, p. 44).
   17
         Commission Regulation (EC) No 1301/2006 of 31 August 2006 laying down common rules for the
         administration of import tariff quotas for agricultural products managed by a system of import licences
         (OJ L 238, 1.9.2006, p. 13).
   18
         Commission Regulation (EC) No 1918/2006 of 20 December 2006 opening and providing for the
         administration of tariff quota for olive oil originating in Tunisia (OJ L 365, 21.12.2006, p. 84).
   19
         Commission regulation (EC) No 1964/2006 of 22 December 2006 laying down detailed rules for the
         opening and administration of an import quota for rice originating in Bangladesh, pursuant to Council
         Regulation (EEC) No 3491/90 (OJ L 408, 30.12.2006, p. 20).
   20
         Commission Regulation (EC) No 1979/2006 of 22 December 2006 opening and providing for the
         administration of tariff quotas for preserved mushrooms imported from third countries (OJ L 368,
         23.12.2006, p. 91).
   21
         Commission Regulation (EC) No 341/2007 of 29 March 2007 opening and providing for the
         administration of tariff quotas and introducing a system of import licences and certificates of origin for
         garlic and certain other agricultural products imported from third countries (OJ L 90, 30.3.2007, p. 12).
   22
         Commission Regulation (EC) No 533/2007 of 14 May 2007 opening and providing for the
         administration of tariff quotas in the poultrymeat sector (OJ L 125, 15.5.2007, p. 9).
   23
         Commission Regulation (EC) No 536/2007 of 15 May 2007 opening and providing for the
         administration of a tariff quota for poultrymeat allocated to the United States of America (OJ L 128,
         16.5.2007, p. 6).
   24
         Commission Regulation (EC) No 539/2007 of 15 May 2007 opening and providing for the
         administration of tariff quotas in the egg sector and for egg albumin (OJ L 128, 16.5.2007, p. 19).
   25
         Commission Regulation (EC) No 616/2007 of 4 June 2007 opening and providing for the
         administration of Community tariff quotas in the sector of poultrymeat originating in Brazil, Thailand
         and other third countries (OJ L 142, 5.6.2007, p. 3).
EN                                                        23                                                        EN
 ---pagebreak---    1384/200727, (EC) No 1385/200728, (EC) No 382/200829, (EC) No 412/200830, (EC) No
   431/200831, (EC) No 748/200832, (EC) No 1067/200833, (EC) No 1296/200834, (EC) No
   442/200935, (EC) No 610/200936, (EC) No 891/200937, (EC) No 1187/200938 and (EU) No
   1255/201039 and Commission Implementing Regulations (EU) No 1273/201140, (EU) No
   480/201241, (EU) No 1223/201242, (EU) No 82/201343, (EU) No 593/201344, (EU)
   26
         Commission Regulation (EC) No 964/2007 of 14 August 2007 laying down detailed rules for the
         opening and administration of the tariff quotas for rice originating in the least developed countries for
         the marketing years 2007/2008 and 2008/2009 (OJ L 213, 15.8.2007, p. 26).
   27
         Commission Regulation (EC) No 1384/2007 of 26 November 2007 laying down detailed rules for the
         application of Council Regulation (EC) No 2398/96 as regards opening and providing for the
         administration of certain quotas for imports into the Community of poultrymeat products originating in
         Israel (OJ L 309, 27.11.2007, p. 40).
   28
         Commission Regulation (EC) No 1385/2007 of 26 November 2007 laying down detailed rules for the
         application of Council Regulation (EC) No 774/94 as regards opening and providing for the
         administration of certain Community tariff quotas for poultrymeat (OJ L 309, 27.11.2007, p. 47).
   29
         Commission Regulation (EC) No 382/2008 of 21 April 2008 on rules of application for import and
         export licences in the beef and veal sector (OJ L 115, 29.4.2008, p. 10).
   30
         Commission Regulation (EC) No 412/2008 of 8 May 2008 opening and providing for the
         administration of an import tariff quota for frozen beef intended for processing (OJ L 125, 9.5.2008, p.
         7).
   31
         Commission Regulation (EC) No 431/2008 of 19 May 2008 opening and providing for the
         administration of an import tariff quota for frozen meat of bovine animals covered by CN code 0202
         and products covered by CN code 02062991 (OJ L 130, 20.5.2008, p. 3).
   32
         Commission Regulation (EC) No 748/2008 of 30 July 2008 on the opening and administration of an
         import tariff quota for frozen thin skirt of bovine animals falling within CN code 02062991 (OJ L 202,
         31.7.2008, p. 28).
   33
         Commission Regulation (EC) No 1067/2008 of 30 October 2008 opening and providing for the
         administration of Community tariff quotas for common wheat of a quality other than high quality from
         third countries and derogating from Council Regulation (EC) No 1234/2007 (OJ L 290, 31.10.2008, p.
         3).
   34
         Commission Regulation (EC) No 1296/2008 of 18 December 2008 laying down detailed rules for the
         application of tariff quotas for imports of maize and sorghum into Spain and imports of maize into
         Portugal (OJ L 340, 19.12.2008, p. 57).
   35
         Commission Regulation (EC) No 442/2009 of 27 May 2009 opening and providing for the
         administration of Community tariff quotas in the pigmeat sector (OJ L 129, 28.5.2009, p. 13).
   36
         Commission Regulation (EC) No 610/2009 of 10 July 2009 laying down detailed rules for the
         application of the tariff quota for beef and veal originating in Chile (OJ L 180, 11.7.2009, p. 5).
   37
         Commission Regulation (EC) No 891/2009 of 25 September 2009 opening and providing for the
         administration of certain Community tariff quotas in the sugar sector (OJ L 254, 26.9.2009, p. 82).
   38
         Commission Regulation (EC) No 1187/2009 of 27 November 2009 laying down special detailed rules
         for the application of Council Regulation (EC) No 1234/2007 as regards export licences and export
         refunds for milk and milk products (OJ L 318, 4.12.2009, p. 1).
   39
         Commission Regulation (EU) No 1255/2010 of 22 December 2010 laying down detailed rules for the
         application of the import tariff quotas for ‘baby beef’ products originating in Bosnia and Herzegovina,
         Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia (OJ L 342, 28.12.2010,
         p. 1).
   40
         Commission Implementing Regulation (EU) No 1273/2011 of 7 December 2011 opening and providing
         for the administration of certain tariff quotas for imports of rice and broken rice (OJ L 325, 8.12.2011,
         p. 6).
   41
         Commission Implementing Regulation (EU) No 480/2012 of 7 June 2012 opening and providing for the
         management of a tariff quota for broken rice of CN code 10064000 for production of food preparations
         of CN code 19011000 (OJ L 148, 8.6.2012, p. 1).
   42
         Commission Implementing Regulation (EU) No 1223/2012 of 18 December 2012 laying down detailed
         rules for the application of an import tariff quota for live bovine animals of a weight exceeding 160 kg
         and originating in Switzerland provided for in the Agreement between the European Community and
         the Swiss Confederation on trade in agricultural products (OJ L 349, 19.12.2012, p. 39).
   43
         Commission Implementing Regulation (EU) No 82/2013 of 29 January 2013 laying down detailed rules
         for the application of an import tariff quota of dried boneless beef originating in Switzerland (OJ L 28,
         30.1.2013, p. 3).
EN                                                       24                                                        EN
 ---pagebreak---    2015/207645, (EU) 2015/207746, (EU) 2015/207847, (EU) 2015/207948, (EU) 2015/208149 and
   (EU) 2017/158550 are repealed.
   However, those Regulations and Implementing Regulations shall continue to apply to import
   and export licences that were issued on their basis until the expiry of those import and export
   licences.
                                                      Article 26
                                             Transitional provisions
   In the first two tariff quota periods following the entry into force of this Regulation, the
   licence issuing authority may establish the reference quantity referred to in Article 9 in
   accordance with the relevant repealed Regulations listed in Article 25.
   Where in one or both of the two tariff quota periods before the entry into application of this
   Regulation, a tariff quota that is subject to the reference quantity requirement referred to in
   Article 9 has not been fully used, operators may choose to establish their reference quantity
   either in accordance with Article 9(1) of this Regulation, or using the two last preceding 12-
   months periods where the tariff quota was fully used.
                                                      Article 27
                                        Entry into force and application
   1.        This Regulation shall enter into force on the seventh day following that of its
             publication in the Official Journal of the European Union.
   2.        This Regulation shall apply to the tariff quota periods starting from 1 January 2021
             onwards.
   44
           Commission Implementing Regulation (EU) No 593/2013 of 21 June 2013 opening and providing for
           the administration of tariff quotas for high-quality fresh, chilled and frozen beef and for frozen buffalo
           meat (OJ L 170, 22.6.2013, p. 32).
   45
           Commission Implementing Regulation (EU) 2015/2076 of 18 November 2015 opening and providing
           for the administration of Union import tariff quotas for fresh and frozen pigmeat originating in Ukraine
           (OJ L 302, 19.11.2015, p. 51).
   46
           Commission Implementing Regulation (EU) 2015/2077 of 18 November 2015 opening and providing
           for the administration of Union import tariff quotas for eggs, egg products and albumins originating in
           Ukraine (OJ L 302, 19.11.2015, p. 57).
   47
           Commission Implementing Regulation (EU) 2015/2078 of 18 November 2015 opening and providing
           for the administration of Union import tariff quotas for poultrymeat originating in Ukraine (OJ L 302,
           19.11.2015, p. 63).
   48
           Commission Implementing Regulation (EU) 2015/2079 of 18 November 2015 opening and providing
           for the administration of a Union import tariff quota for fresh and frozen beef and veal originating in
           Ukraine (OJ L 302, 19.11.2015, p. 71).
   49
           Commission Implementing Regulation (EU) 2015/2081 of 18 November 2015 opening and providing
           for the administration of import tariff quotas for certain cereals originating in Ukraine (OJ L 302,
           19.11.2015, p. 81).
   50
           Commission Implementing Regulation (EU) 2017/1585 of 19 September 2017 opening and providing
           for the administration of Union tariff quotas for fresh and frozen beef and veal and pigmeat originating
           in Canada and amending Regulation (EC) No 442/2009 and Implementing Regulations (EU) No
           481/2012 and (EU) No 593/2013 (OJ L 241, 20.9.2017, p. 1).
EN                                                        25                                                          EN
 ---pagebreak---    This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels, 17.12.2019
                                                 For the Commission
                                                 The President
                                                 Ursula VON DER LEYEN
EN                                                 26                                             EN
 ---documentbreak---                              EUROPEAN
                             COMMISSION
                                                      Brussels, 17.12.2019
                                                      C(2019) 8956 final
                                                      ANNEXES 1 to 2
                                          ANNEXES
                                             to the
                              Commission Delegated Regulation
    supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the
    Council as regards the rules for the administration of import and export tariff quotas
    subject to licences and supplementing Regulation (EU) No 1306/2013 of the European
   Parliament and of the Council as regards the lodging of securities in the administration
                                        of tariff quotas
EN                                                                                          EN
 ---pagebreak---                                     ANNEX I
       Model of declaration of independence referred to in Article 12
                  Instructions for completing the declaration
   (1) In block A, fill in the information on the tariff quota to which the declaration of
       independence applies.
   (2) In block B, tick the applicable box.
   (3) In block C, indicate the operator's name, EORI number, date and place of
       signature, and include the signature of the operator's competent managing
       (chief executive) officer.
EN                                       1                                                 EN
 ---pagebreak---    A. TARIFF QUOTA CONCERNED
   Tariff quota order
   number
   CN code(s)
   Origin of the
   product(s)1
   B. INDEPENDENCE OF OPERATOR
   The applicant for the tariff quota order number listed above declares:
   1. The applicant is not linked, as set out in Article 11 of Delegated                     box to be ticked as
   Regulation (EU) xxx, with other legal or natural persons applying for                     appropriate.
   the same tariff quota order number.
   2. The applicant is linked, as set out in Article 11 of Delegated                         box to be ticked as
   Regulation (EU) xxx , with other legal or natural persons applying for                    appropriate.
   the same tariff quota order number.
   The applicant regularly performs substantial economic activities
   towards third parties within the meaning of Article 11(3).
   The applicant has disclosed the natural or legal persons to which it is
   linked in the LORI electronic system in accordance with Article 11(4).
   C. OPERATOR’S DETAILS
   Name
   EORI number
   Date and place
   Signature
   Role in the company of the
   signatory
   1
           Only to fill in if the origin of the goods is a mandatory element in the licence application.
EN                                                           2                                                   EN
 ---pagebreak---                                                                      ANNEX II
                        Information to be provided in relation to the prior compulsory registration referred to in Article 13
   EORI of the economic operator
  Economic operator identity
  ► Name of the company
  ► Address of headquarter: Street name
  ► Address of headquarter: Street number
  ► Address of headquarter: Postal code
  ► Address of headquarter: City
  ► Address of headquarter: Country
  ► Address of Operational office: Street name
  ► Address of Operational office: Street number
  ► Address of Operational office: Postal code
  ► Address of Operational office: City
  ► Address of Operational office: Country
  ► Phone number
      Email address to be used for communication with Member States’ licence issuing authorities and
  ►
     customs authorities
  ► Legal status
  ► Principal economic activity of the operator
EN                                                                        3                                                   EN
 ---pagebreak---   Proof of substantial economic activity of the economic operator
       Attachment of an excerpt from the commercial register or equivalent document as per the applicable
  ►
      national legislation
  ► Attachment of last audited annual accounts (if any)
  ► Attachment of last balance sheet
  ► Attachment of VAT certificate
       Additional documents to be uploaded following requests for clarification received from the licence
  ►
      issuing authority
  Declaration of independence pursuant to Article 12 of Delegated Regulation (EU) …
                                                                                                                 Declaration of independence
                                                                   Please select “yes” if you apply for the
          List of tariff quota order numbers and short                                                           to be attached
   █                                                              tariff quota, or “no” if you do not apply for
                            description                                                                          if in the previous column you
                                                                  the tariff quota.
                                                                                                                 have selected “yes”
  ► …
  Reference quantity
  Please declare the reference quantity for the following tariff quotas:
                                                                           TRQ period               TRQ period
                                                                     to which the reference to which the reference
   █ Tariff quota order number Reference quantity (in kg)
                                                                    quantity applies – Start quantity applies – End
                                                                          of the period            of the period
  ►
  Persons of the company empowered to introduce a licence application on behalf of the operator
  Operator must provide the list of persons of the company empowered to introduce a licence application on its behalf, for the tariff quotas listed above.
EN                                                                               4                                                                         EN
 ---pagebreak---    █    Surname(s)     Name(s)    Date of birth   Place of birth ID document ID Card/Passport Number Supporting docs for the empowerment
   ►
  Economic operator ownership structure
   █ Type of ownership (the operator should choose the correct option)
  If the owner(s) is a company:
        Company Company Address of            Address of      Address of    Address of   Address of     Phone Email Role in the Commercial
       EORI (if name           headquarter: headquarter: headquarter: headquarter: headquarter: number address operator                  register
       any)                    Street name Street            Postal code City            Country                            (e.g. sole
                                              number                                                                        owner,
                                                                                                                            partner,
   █                                                                                                                        main
                                                                                                                            shareholder
                                                                                                                            (above 25%
                                                                                                                            stock or
                                                                                                                            controlling
                                                                                                                            stock)…)
   ►
  If the owner(s) is a natural person:
                                  Date of    Place of        ID         ID Card/Passport       Role in the operator (e.g. sole owner, partner, main
   █ Surname(s) Name(s)
                                   birth      birth      document           Number           shareholder (above 25% stock or controlling stock)…)
   ►
  The operator must provide information on legal persons applying for the tariff quotas listed above, which are linked to that operator within the
  meaning of Article 11 of Delegated Regulation (EU) 2019/…
EN                                                                         5                                                                      EN
 ---pagebreak---     Company Company  Address of    Address of    Address of  Address of   Address of   Phone  Email
                                                                                                      Legal
  █  EORI    name   headquarter:  headquarter: headquarter: headquarter: headquarter: number address        Link
                                                                                                     status
                    Street name  Street number  Postal code     City       Country
  ►
EN                                                    6                                                     EN
 ---pagebreak---   The operator must provide information on natural persons applying for the tariff quotas listed above, which are linked to that operator within
  the meaning of Article 11 of Delegated Regulation (EU) 2019/…
  █   Surname(s)  Name(s)    Date of birth Place of birth ID document ID Card/Passport Number     Link
  ►
EN                                                                     7                                                                       EN
 ---pagebreak---    Management structure of the economic operator
   Please list the persons holding office as member of board of directors/Chief Executive Officer/Chief Financial Officer (if applicable) or analogue
   roles in operator management structure. Please ensure that data in the table below is consistent with the information provided in the documents
   submitted as proof of substantial economic activity. In case the table below is filled with incorrect or incomplete information, the penalties provided
   for in Article 15 of Delegated Regulation (EU) 2019/… apply.
    █ Surname(s)         Name(s)     Date of birth   Place of birth ID document      ID Card/Passport Number         Function in the company
    ►
   In order to proceed with your application for registration, you must agree with the following statements:
   (1) The information provided is correct, complete and up to date. I am aware that the penalties provided for in Article 15 of Delegated Regulation
   (EU) 2019/…, apply in case the information provided is incorrect, incomplete or not up to date.
   (2) I agree to the disclosure of the information to the Commission, the customs authorities and the licence issuing authorities of the Member States.
   (3) I commit to submit updated information in case of changes to the structure of the legal entity, in a timely manner and in accordance with Articles
   12 and 13 of Delegated Regulation (EU) 2019/….
    █ Please confirm that you agree with the three statements above:
EN                                                                            8                                                                           EN