CELEX: 51974PC0142
Language: en
Date: 1974-02-01
Title: DRAFT REGULATION (EEC) OF THE COUNCIL on the opening, allocation and administration of Community tariff quotas for certain refined petroleum products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 142
Vol. 1974/0021
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(74) 142 final
                                                            Brussels , 1 February 1974
                                      DRAFT
                        REGULATION ( SEC ) OF THE COUNCIL
               on the opening , allocation and administration of
         Community tariff quotas for certain refined petroleum products
                  (submitted to the Council by the Commission)
   C0I1(74) 142 final
 ---pagebreak---             Financial consequences of "the opening of zero rate
             Community tariff quotas for certain petroleum products
According to departmental figures , the loss m revenue resulting from
the attached proposal is as follows :
      Motor spirit for engines ( 625 000 m. tons )     1 C8l 875 u. a .
      Gas oils and fuel oils (3 750 000 m . - tons )   2 910 000 u. a .
                                            Total      3 991 875 u.a .
The above estimate was worked out on the basis of average prices for
products in 1972 .  At present , these prices are approximately four
times higher .
Consequently , the loss in revenue may be estimated at approximately
16 million u.a .
 ---pagebreak---                               EXPLANATORY MEMORANDUM
The Federal Republic of Germany has made a request to the Commission
for suspension of Common Customs Tariff duties on motor spirit for
engines of subheading ex 27-10 A III b ) and on middle fraction
distillates of subheadings 27.10 C I c ) and 27»10 C II c ). -
It has given the following reasons for this request      :
- Because of the current shortage of petroleum products on world
  markets , it is not at present necessary for refined petroleum
  products to be protected in the Community .
- The petroleum crisis has set off a serious inflationary tendency
  in the prices of petroleum products . It would be desirable to take
  any measure which might hold down these price increases .
The Commission considers it necessary to give a favourable reponse
to this request . However , as the Community at present has no common
energy policy , the Commission proposes that the Council should decide
upon the opening of a Community tariff quota , at nil rate of duty ,
of an amount equal to the 1972 Community importations from countries
for which the CCT duties are not currently suspended by virtue of
other measures .
                    ν
The longer term position should be determined in relation to any
agreements with the petroleum producing countries ( See Document
COM ( 74 ) 90 of 23 January 197^ ' ^Relations between the Community and
the energy producing countries t: ).
 ---pagebreak---                                 DRAFT
              REGULATION ( EEC ) DP THE CGDfKJIL
         on the opening , allocation and administration of
         Community tariff quotas for certain refined petro­
         leum products
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to ■. the- Treaty establishing the European Economic
Community , and in particular Article 28 thereof ;
Having regard to the draft regulation^ submitted by the Commission ;
Whereas Community production of motor spirit and heavy oils is at
present insufficient ; whereas serious inflationary tendencies in the
price of petroleum products as?e for the time being apparent ;
whereas in these circumstances Community tariff protection for the -,
products in question does not appear to be necessary at the present
time ;
Whereas it is , therefore , in the interest of the Community to
suspend totally the autonomous duties in the Common Customs
Tariff on the products in question within the limit of a tariff
quota of an appropriate amount ;
Whereas , having regard tetthe difficulty of forecasting developments
in the short term economic situation in the petroleum sector , it is
desirable to adopt this measure only for a limited period ; whereas
further decisions may be reached as a result of possible agreements
with petroleum producing countries ;
Whereas equal and direct access to the said quotas by all importers
in the Community and the uninterrupted application of the rates laid
down for the said quotas to all imports of the products in question
into all' Member States should be guaranteed until the quotas are
exhausted ; whereas utilization of these quotas , based on allocation
between Member States , would appear to safeguard the Community character
 ---pagebreak--- of the said quotas as regards the principles described above } whereas
in order to ensure that such allocation takes as much account as possible
of the actual development of the market of the products concerned , the
allocation of quota shares should be in direct proportion to the needs
of Member States , calculated on the one hand , on the basis of statistics
relating to imports from third countries during a given representative
period and , on the other , on the basis of the economic prospects for the
quota period considered $
whereas , it has proved impossible to gather sufficiently precise and
representative statistics , as regards the petroleum products in question ,
for each o.f the Member States j whereas it does not consequently seem
possible to take any other course than to divide the tariff quota
amount into eight parts and to allocate one part each , to the Benelux
States , to Denmark , Germany , France , Ireland , Italy and to the
United Kingdom , the last part ( amounting to *f0 %) being held in reserve
to meet subsequently the needs of the Member States which have exhausted
their initial quota amounts } whereas , on this basis , the tariff quotas
in question shall initially be allocated in the following percentages :
                 Bénélux                      10 %
                 Denmark               *       5 %
                 Germany                      10 %
                 Prance                    " 10 %
                 Ireland                       5 %
                 Italy             ' ■' '     10 %
                 United Kingdbo-.             10 % :
 ---pagebreak--- Whereas the initial quota shares may be used up at different times ;
whereas , in order to take this fact into account and avoid any break
in continuity , it is important that any Member State having used up
almost the whole of one of its initial quota shares should draw an
additional quota share from the corresponding Community reserve ;
whereas , this must be done by each Member State as and when each of its
additional quota shares is almost entirely used up , and repeated as many
times as each of the reserves allows ; whereas each of the initial and
additional quota shares must be available for use until the end of the
quota period ; whereas this method of administration calls for close
cooperation between Member States and the Commission , which must , in
particular , be able to observe the extent to which the quota amount is
used and inform Member States thereof ;
Whereas if , at a specified date in the quota periodt a considerable
balance of one of the initial quota shares remains in one or other Member
State , it is essential that that Member State returns an appreciable percen­
tage of it back into the corresponding reserve , in order to avoid a part
of one or other of the Community tariff quotas remaining unused in one
Member State when it could be used in others ;
Whereas , because the Kingdom of Belgium , the Kingdom of the Netherlands
and the Grand Duchy of Luxembourg are unified in and represented by the
Benelux • economic Union , any operation concerned with the administration
of quota shares allocated to this economic Union #an therefore be made
by one of its Members ,
HAS ADOPTED THIS REGULATION :
                                 Article 1
1 . As from 1 March, and until 31 August 197^, Community tariff quotas
    shall be opened in the Community for the following petroleum products
    and within the quantities indicated for each of them :
 ---pagebreak--- Common Customs                                                   Quota
                             Description of goods                amount
Tariff heading
      27.10         Petroleum oils and oils obtained
                    from bituminous minerals , other than
                    crude ; preparations not elsewhere speci­
                    fied or included , containing not less
                    than 70 % by weight of petroleum oils
                    obtained from bituminous minerals ,
                    these oils being the basic constituents
                    of the preparations :
                    A. Light oils
                       III . For other purposes :
                               . b ) Other :                     625.000 metric
                                                                          tonnes
                    C. Heavy oils :
                         I. Gas oils :
                                 c ) For other purposes
                                                               3-750.000 metric
                        II . Fuel oils :
                                                                          tonnes
                                 c ) For other purposes
2 . The Common Customs Tariff duties shall be totally suspended within
     the limits of these Community tariff quotas .
3 « The new Member States shall * within the limits of - these tariff quotas ,
     charge duties calculated in accordance with the appropriate provisions
     made in the Act of Accession .                   >           ''■■■■
                                    Article 2
1 * A first instalment of each of these Community tariff quotas shall be
     allocated among the Member States ; the quota shares which , subject
     to Article 5i' are valid from 1 March until 31 August 197^t sheillll
   ' be as follows for each of the Member' States :
 ---pagebreak---                                   - 5 -
                                           - in metrie tonnes »
                                  Common Customs Tariff heading
                                27.10 A III b ) !   27.10 C I c ), C II c )
Bénélux                           62.500                  375.000
Denmarlc                          31.250                  187.500
Germany                           62.500                  375.000
France                            62.500                  375.000
Ireland                           31.250                  187.500
Italy                             62.500                  375.000
United Kingdora                   62.500                  375.000
       TOTAL                     375.000                2.250.000
2 . The second instalment of each tariff quota , of 250.000         tonnes
    and 1.500.000     tonnes , respectively , shall be the corresponding
    reserve .
                               Article 3
1 . If 90 % or more of one of the initial quota shares of a Member
    State , as laid down in Article 2 paragraph 1 , or 90 % of that
    share less the, amount returned into the corresponding reserve ,
    where the provisions of Article 5 have been applied , has been-
    exhausted , that Member State shall at once , by notifying the
    Commission , draw a second quota share equal to 20 % of its initial
    quota share , rounded up where appropriate to the next unit , to
    the extent that the amount in the reserve allows .
2 . If , after one or other its initial shares has been exhausted , 90 %
    or more of the second quota share drawn by a Member State has been
    used , that Member State shall in the manner prescribed in paragraph
    1 , by notifying the Commission ,", draw a third share equal to 10 %
    of its initial quota share , rounded up where - appropriate to, the
    next unit , to the extent that the amount in reserve allows .
                                                              •/• •
 ---pagebreak--- 3 . If , after one or other of its second quota shares has been exhausted
    90 % or more of the third share drawn by a Member State has been
    used , ' that Member State shall , in a similar manner , dr;*w a fourth
    quota share equal to the third.
                . '5                                                    .
    This procedure shall continue to be applied until the reserve is
    exhausted .
           N                                                        ;
4-. Notwithstanding the provisions of paragraphs 1 , 2 and 3 , Member
    States may draw quota shares smaller than those fixed in those'
    paragraphs if there is reason to believe that those shares may not
    be used up . They shall inform the Commission of the reasons which
    will have led them to apply this paragraph .
                                    Article 4
The additional quota shares drawn pursuant to Article 3 shall be
valid until 31 .August      197^.
                                    Article 5
If on 15 • June        197n a . Member State has not used up one or other
of its initial quota shares , it shall , not later than 10 ' ctfuly -* 197^1
return to the corresponding reserve the unused portion of that share
in exce^es of 20 % of the initial amount . It may return a larger
quantity if there are reasons to consider that such quantity might
not be used .
The Member States shall , not later than 10            r 197^» notify the
Commission of the total amount of the products concerned imported up
to 15 - June - . 197^ inclusive , and set off against the Community .
tariff quotas , and , where appropriate of the proportion of each of
their original quota shares being returned to each of the reserves .
                                    Article 6
The Commission shall keep account of the quota shares opened by Member
States in accordance with Articles 2 and 3 and shall inform each of
them of the extent to which the reserves have been used up as soon
as it receives the notifications .
 ---pagebreak--- The Commission shall , not later than 15 July 197%. notify Member
States of the state of each of . the reserves after the return of
shares pursuant to Article 5-
The Commission shall ensure that any drawing which uses up one of
the reserves is limited to the balance available and for this purpose
shall specify the amount thereof to the Member State which makes the
final drawing .
                                Article 7
1 . The Member States shall take all measures necessary to ensure that ,
    when additional quota shares are drawn pursuant to Article 3 > it
    is possible for amounts to be set off without interruption against
    their accumulated shares of the Community quotas .
2 . The Member States shall guarantee to importers of the products
    concerned established in their territory free access to the quota
    shares allocated to them .
                           r
3 - The extent to which the quota ahares of the Member States have been
    used up shall be recorded on the basis of importations of the products
    concerned whieh Are presented for customs clearance under cover of
    declarations for home use .                          <
                                 Article 8
Member States shall inform the Commission at regular intervals of
    the importations of the products concerned actually set off against
    their quota shares .
 ---pagebreak---                                 - 8 -
                              Article 9
The Member States and the Commission shall cooperate closely m order
to ensure that the provisions of this Regulation are observed .   r
                              Article 10
This Regulation shall enter into force on 1 March 197k .
   This Regulation shall be binding in its entirety and directly
   applicable in all Member States .
Done at Brussels ,                          For the Council
                                            The President