Commission Regulation (EC) No 2044/2003 of 20 November 2003 establishing administrative procedures for the second tranche of the 2004 quantitative quotas for certain products originating in the People's Republic of China

Commission Regulation (EC) No 2044/2003
of 20 November 2003
establishing administrative procedures for the second tranche of the 2004 quantitative quotas for certain products originating in the People's Republic of China
THE COMMISSION OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 520/94 of 7 March 1994 establishing a Community procedure for administering quantitative quotas(1), as last amended by Regulation (EC) No 806/2003(2), and in particular Article 2(3) and (4), Article 6(3) and Articles 13, 23 and 24 thereof,
Whereas:
(1) Council Regulation (EC) No 427/2003(3), as last amended by Regulation (EC) No 1985/2003(4), sets forth annual quantitative quotas for certain products originating in the People's Republic of China listed in Annex I to that Regulation. The provisions of Regulation (EC) No 520/94 are applicable to those quotas.
(2) In view of the enlargement of the European Community on 1 May 2004, the quotas set forth in Annex I to Council Regulation (EC) No 427/2003 have been increased by Council Regulation (EC) No 1985/2003.
(3) Given that on 1 May 2004 the European Community will be enlarged, it is appropriate to allocate the 2004 quota in two tranches, the first one from January to April 2004 to importers in the current Member States and the second one from May to December 2004 to importers in all countries that will be Member States from May 2004 onwards.
(4) Commission Regulation (EC) No 1351/2003(5) established administrative procedures for the first tranche of the 2004 quantitative quotas for certain products originating in the People's Republic of China.
(5) This Regulation shall allocate the quotas relating to quantities for May to December 2004.
(6) The Commission accordingly adopted Regulation (EC) No 738/94(6), as last amended by Regulation (EC) No 983/96(7), laying down general rules for the implementation of Regulation (EC) No 520/94. These provisions apply to the administration of the above quotas subject to the provisions of this Regulation.
(7) Certain characteristics of China's economy, the seasonal nature of some of the products and the time needed for transport mean that orders for products subject to quota are generally placed before the beginning of the quota period. It is therefore important to ensure that administrative constraints do not impede the realisation of the planned imports. In order not to affect the continuity of trade flows, the arrangements for allocating and administering the second tranche of the 2004 quotas should accordingly be adopted before May 2004.
(8) After examination of the different administrative methods provided for by Regulation (EC) No 520/94, the method based on traditional trade flows should be adopted. Under this method the quotas are divided into two portions, one of which is reserved for traditional importers and the other for other applicants.
(9) This has proved to be the best way of ensuring the continuity of business for the Community importers concerned and avoiding any disturbance of trade flows.
(10) The reference period used for allocating the portion of the quota set aside for the traditional importers in the Community in the previous Regulation on the administration of these quotas cannot be updated. The years 2000 and 2001 were characterised by certain distortions, in particular a more than twofold increase of applications from one Member State, which resulted in substantially reduced individual quota allocations to all non-traditional importers in all Member States. In 2002, there was a significant increase in applications by non-traditional importers from United Kingdom companies to other Member States suggesting an effort to circumvent the related-persons test. Also, investigations are ongoing into a number of 2002 and 2003 licence holders that may have breached the related-persons test. The years 1998 or 1999 are therefore the most recent years representative of the normal trend of trade flows in the products in question imported by the importers in the Community. Traditional importers in the Community must, therefore, prove that they have imported products originating in the People's Republic of China and covered by the quotas in question in the years 1998 or 1999. The years 2001 and 2002 are the most recent years representative of the normal trend of trade flows in the products in question imported by importers in the acceding States. Given that the large majority of importers in the acceding States were not subject to import restrictions and therefore were under no legal requirement to keep import documents for both 1998 and 1999, the provision of evidence concerning 1998 and 1999 would impose disproportionate burdens on them. Traditional importers in the acceding States must therefore prove that they have imported in 2001 or 2002 products originating in the People's Republic of China and covered by the quotas in question.
(11) It has been found in the past that the method provided for in Article 12 of Regulation (EC) No 520/94, which is based on the order in which applications are received, may not be an appropriate way of allocating that portion of the quota reserved for non-traditional importers. Consequently, in accordance with Article 2(2)(c) of Regulation (EC) No 520/94, it is appropriate to provide for allocation in proportion to the quantities requested, on the basis of a simultaneous examination of import licence applications actually lodged, in accordance with Article 13 of Regulation (EC) No 520/94.
(12) The Commission considers it necessary that operators applying as non-traditional importers and falling under the definition of related persons within the meaning of Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) 2913/92(8) establishing the Community Customs Code, as last amended by Regulation (EC) No 881/2003(9), may only submit a single licence application for each line of the quota set aside for non-traditional importers. In order to exclude speculative applications, the amount that any non-traditional importer may request should be restricted to a set volume.
(13) It is appropriate to set the quota share reserved to traditional importers at 75 % and the share of non-traditional importers at 25 %.
(14) It also appears appropriate to transfer quantities not taken up by non-traditional importers to traditional importers, in order to ensure that these quantities can still be allocated in the year in which they were attributed.
(15) For the purposes of quota allocation, a time limit must be set for the submission of licence applications by traditional and non-traditional importers.
(16) The Member States and acceding States shall inform the Commission of the import licence applications received, in accordance with the procedure laid down in Article 8 of Regulation (EC) No 520/94. The information about traditional importers' previous imports must be expressed in the same units as the quota in question.
(17) To enable traditional Community importers to continue their business practices of importing the entire amount of their guaranteed quantities early in the quota year and to ensure competitiveness with importers in acceding States who are not subject to licence requirements before 1 May 2004, licences issued by the competent national authorities in the Member States shall be issued as soon as possible after the adoption of the quantitative criteria by the Commission. They shall be valid from the date of issuance until 31 December 2004.
(18) These measures are in accordance with the opinion of the Committee for the administration of quotas set up in accordance with Article 22 of Regulation (EC) No 520/94,