COMMISSION REGULATION (EC) No 2738/95 of 28 November  1995 establishing rules for the management and distribution of textile quotas established for the  year 1996 under Council Regulation (EC) No 517/94
THE COMMISSION OF THE EUROPEAN  COMMUNITIES
,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 517/94 of 7 March 1994 relating to the common rules for  the import of textile products from certain third countries not covered by bilateral agreements,  protocols or other arrangements, or by other specific Community import rules  (1), as last amended  by Regulation (EC) No 1325/95  (2), and in particular Article 17 (3) and (6) and Article 21 (2) and  (3) thereof, in relation to Article 25 (3) thereof,
Whereas the Council, by its Regulation (EC) No 517/94, established quantitative restrictions on  imports of certain textile products originating in certain third countries and envisaged, in  Article 17 (2), that these quotas will be allocated in the chronological reception order of the  notifications from the Member States according to the principle of first come, first served;
Whereas past experience has revealed that for certain quotas the established annual quantities were  insufficient to cover the quantities subject to requests for import authorizations notified to the  Member States; whereas there are serious reasons to believe that, for all the quotas established by  Regulation (EC) No 517/94 requests for import authorizations to be notified by the competent Member  States' authorities will exceed the quantitative limits established for 1996;
Whereas Regulation (EC) No 517/94, Article 17 (3), stipulates that is is possible, in these  circumstances, to make use of allocation methods which differ from the allocation method based  exclusively on the chronological reception order of the notifications from Member States, as well  as to envisage the division of the quotas in tranches;
Whereas it is advisable, in order not to affect unduly the continuity of trade flows, to adopt  before the start of the quota year, rules for management and distribution of the quotas fixed  established for 1996 by Regulation (EC) No 517/94;
Whereas it seems appropriate for a large majority of the quotas to adjust the allocation method  based on the chronological reception order of the notifications from Member States according to the  principle of first come, first served in order to satisfy the greatest number of operators by  limiting the quantities to be attributed to each operator, on the basis of this method, to a  maximum amount at a level which allows the operators concerned to perform economically justifiable  transactions;
Whereas as far as the other quotas are concerned which seem to be even more insufficient it is  appropriate to have a method of allocation which takes into account traditional trade flows;  whereas to this end it is appropriate to divide the quotas to be allocated into two parts, one  reserved for traditional importers, the other for other applicants, and to fix the respective  shares reserved for these different categories of operators at levels which, while taking into  account traditional trade flows, will nevertheless ensure non-traditional importers significant  access to the quotas; whereas it is necessary to define the concept of traditional importers with  reference to the year 1992, 1993 not being representative due to certain distortions which  characterized imports during this period within the Community;
Whereas with regard to the distribution of the part reserved to other operators, other than  traditional importers, past experience has shown that the method based on the reception in  chronological order of the notifications from the Member States satisfied only a limited number of  operators and that the application of a method of distribution in proportion to the requested  quantities on the basis of a simultaneous examination of all quantities notified to the Commission  might satisfy a larger number of operators; whereas it is appropriate for the same reasons to  envisage, furthermore, that the quantities requested by each individual operator, cannot exceed a  predetermined quantity fixed to a level economically significant;
Whereas, it is possible that, in certain cases, for certain categories and countries concerned,  quantities in a part reserved remain available after application of quantitative criteria adopted;  whereas it is therefore appropriate for an optimum distribution of each quantitative limit to  envisage the possibility of a transfer of quantities in between the different parts reserved for  the two categories of operators;
Whereas for the purposes of quota allocation, it is appropriate to set a time period for the  submission of licence applications by traditional and other importers;
Whereas with a view to making optimal use of the quantities it is appropriate to envisage that  quantities still available after distribution according to the rules described above will be  distributed to all operators according to the principle of first come, first served within a  predetermined maximum amount;
Whereas, for optimum use of the quantities it is appropriate to envisage that each operator, after  50  % utilization of a licence, can introduce a new request for a licence, not exceeding a  predetermined quantity, provided quantities are available in the quotas;
Whereas for good management purposes it is appropriate to fix the period of validity of the import  authorizations to nine months from the date of issuance, but not beyond the date of 31 December  1996 and to allow their issuance by the Member States, after notification of the Commission  decision to the Member States, and provided that the concerned operator can justify the existence  of a contract and certifies, except in cases where it is especially foreseen, not to have already  benefited under this Regulation for the category and the country concerned of an import  authorization within the Community; whereas the national competent authorities are however  authorized to extend up to 31 December 1996 upon request from importers concerned, the validity of  licences of which the degree of utilization represents at least 60  % at the date of 30 September  1996;
Whereas the measures contained in this Regulation are in conformity with the opinion expressed by  the Committee established by Regulation (EC) No 517/94,
This Regulation specifies certain rules concerning the management of  quantitative limits established by Regulation (EC) No 517/94 and applicable for 1996.
TITLE I
The quotas referred to in Article 1 and indicated in Annex I are distributed  in chronological order of reception by the Commission of the notifications by the Member States of  request from individual operators for quantities not exceeding for each operator the maximum  quantities indicated in Annex III, according to the principle of first come, first served.
Operators can introduce their requests to the competent authorities of the Member States from the  10th day following the date of entry into force of the present Regulation.
TITLE II
The quantitative limits mentioned in Article 1 and referred to in Annex II  are divided into two parts, one reserved for the traditional importers, the other to the other  operators for quantities as indicated in the said Annex. These quantities are distributed following  the modalities specified in Articles 4 to 7 on the basis of requests for import authorizations  introduced by the operators to the competent Member State authorities from the date of entry into  force of the present Regulation and at the latest the 10th day following that date.
Those to be regarded as traditional importers of a category of products originating in  one of the countries referred to in Annex II are importers who furnish proof to the competent  Member State authorities of having imported, during 1992, products falling within the same category  and originating in the same country.
Member States will inform the Commission, at the latest 15 days after the date of entry  into force of the present Regulation, by category and countries concerned as mentioned in Annex II,  of the quantities required as well as the number of operators indicating, if necessary, for those  demands introduced by traditional importers within the meaning of Article 4, the quantities  imported by each one of them during 1992.
On the basis of the total amounts transmitted, the Commission will adopt the quantitative criteria  on the basis of which, in application of the present Title, the competent authorities of the Member  States can issue the import authorizations.
1.  The amount which can be allocated to any individual traditional importer for each  of the categories and countries concerned will not exceed the quantities actually imported in 1992  by each one of them for these categories and countries.
If all quantities to be allocated to traditional importers, on the basis of the quantities notified  by Member States exceed the amount which is reserved for them, the quantities allocated to each one  of them will be reduced proportionally.
2.  The quantities reserved for importers other than those referred to in Article 4 are allocated  by application of the method of distribution in proportion to the requested quantities, the  quantities susceptible to requests by each importer may not exceed the quantities indicated in  Annex III.
3.  If the quantities for a product and a country concerned are still available within the part  reserved for a category of operators, the Commission can, in accordance with the procedure of  Article 25 of Regulation (EC) No 517/94, transfer these quantities to the part reserved for the  other category of importers with a view to distribution in conformity with the quantitative  criteria applicable to this category of operators.
The quantities which remain available after allocation on the basis of the provisions  of Articles 4, 5 and 6 are allocated within the limits of the maximum quantities indicated in Annex  III, in chronological order of reception by the Commission of Member States' notifications  following the principle of first come, first served, as from 2 January 1996 at 10 a.m., Brussels  time, irrespective of the type of operator concerned.
TITLE III
Notwithstanding the provisions of Titles I and II, every importer having  utilized a licence to a level equal or superior to 50  % of the quantity which has been attributed  to him according to this Regulation can apply for a new licence, for the same category and the same  country of origin, for quantities not exceeding the maximum quantities referred to in Annex III,  provided quantities are still available within the quantitative limits.
Import authorizations issued under the present Regulation by the national authorities  of the Member States are not valid before 1 January 1996. The duration of validity for import  authorizations is nine months as from the date of issuance or from 1 January 1996 if issued before  this date. The competent national authorities are however authorized to extend up to 31 December  1996, upon request of importers concerned, the validity of licences of which the level of  utilization is at least 60  % on 30 September 1996.
Import authorizations will be granted by the competent Member State only after notification of the  decision of the Commission as from 1 January 1995 and in as far as the operator concerned can prove  the existence of a contract and certifies by a written declaration not to have already benefited  inside the Community from an import authorization issued pursuant to this Regulation for the  category and the country concerned.
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This Regulation shall enter into force on the day of its publication in the Official  Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all  Member States.