Trade Mechanisms, Review TRQ Legislation 1

Trade Mechanisms, Review TRQ legislation 1

Meeting of the Expert Group on delegated acts

and of the Committee concerning
Horizontal Matters of the CMO

9 March 2016

Exchange of views on TRQs

This document will be discussed together with the replies on the questionnaire concerning Article 6(1) of Regulation (EC) No 1301/2006

DOCUMENT ON TRADE MECHANISMS

This document is provided by DG AGRI for the purposes of providing a framework for a structured discussion on suggestions that have been put forward by Member States and stakeholders in the course of the review of the TRQ legislation. It represents a possible structure in which generic rules are set out in the body, while sectoral specificities are to be set out in extra chapters and Annexes. The document is an orientation, and the content is not complete. It does not reflect the official position of the Commission, and the points mentioned will not necessarily be included in the Commission's eventual proposal.

Present Provision / Possible Delegated Act / Possible Implementing Act / Comment
Article 1
SCOPE OF THE REGULATION
1.This Regulation supplements the rules for applying the system of Tariff Rate Quotas and specific tariff quotas (TRQ) managed by licence, provided for in Articles 184 - 188[ or Chapter III, Part III] of 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 1234/2007. / Article 1
SCOPE OF THE REGULATION
1.This Regulation lays down common rules for the system of Tariff Rate Quotas and specific tariff quotas (TRQ) managed by licence, provided for in Articles 184 - 188 [or Chapter III of Part III ] of 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 1234/2007. / Art. 185 CMO on specific tariff quotas ("abatimento") could be included in the cereals chapter.
[2.This Regulation supplements the rules, under the system of import and export licences for a tariff rate quota, for the modalities of penalties provided for in Article 64(4)(d), and for the release of securities, provided for in Article 66 of 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 814/00, (EC) No 1290/05 and (EC) No 485/2008.] / [2.This Regulation lays down common rules under the system of import and export licences for a tariff rate quota, for the modalities of penalties provided for in Article 64(4)(d), and for the release of securities, provided for in Article 66 of 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 814/00, (EC) No 1290/05 and (EC) No 485/2008.]
Art. 1(2) Reg. 1301/2006
2. Commission Regulations governing a given import tariff quota managed by a system of import licences and the management of which does not fall within the scope of the common organisation of a market may provide that this Regulation shall apply to that import tariff quota. / 2. Commission Regulations governing a given import tariff quota managed by a system of import licences and the management of which does not fall within the scope of the common organisation ofa marketthe markets may provide that this Regulation shall apply to that import tariff quota.
3. Delegated Regulations (EU) No [Licences], (EU) No 907/2014, and (EU) 2015/2446 [Union Customs Code] shall apply, safe as otherwise provided for in this Regulation. / 3. Implementing Regulations (EU) No [Licences], (EU) No 908/2014, and (EU) 2015/2447[Union Customs Code shall apply, safe as otherwise provided for in this Regulation.
Art. 184(2)(a) Reg. 1308/2013 / Art. 187(a) Reg. 1308/2013
THE MANAGEMENT METHODS PER TRQ
Article 2
The TRQs managed by a method based on the chronological order of the submission of applications for a licence ("first come, first served") [are set out in Annex [….] to this Regulation]. / IA "method of administration"
The method at present does not apply; Annex [….] is a reserve.
Note: do not confuse this provision under the CMO with TAXUD's first come/first served under the Customs Code Art. 49-54 Impl. Reg. 2015/2447.
Art. 184(2)(b) Reg. 1308/2013 / . Art. 187(a) Reg. 1308/2013
Article 3
The TRQs managed by a method of distribution in proportion to the quantities requested when the applications were submitted (the "simultaneous examination method") are set out in Annex […..] to this Regulation
Art. 184(2 chapeau) Reg. 1308/2013 / Art. 187(a) Reg. 1308/2013
Article 4
The TRQs managed by method of simultaneous examination in which import rights precede the right to an import licence are set out in Annex […..] to this Regulation.
Art. 184(2)(c) Reg. 1308/2013 / Art. 187(a) Reg. 1308/2013
Article 5
The TRQs managed by a method based on taking traditional trade patterns into account (the "traditional/newcomers method") are set out in Annex [….] to this Regulation.
Article 6
The TRQs managed by a method based on documents issued by third countries are set out in Annex [….] / No simultaneous examination; only the 3rd country document gives access to the licence. Example: high quality beef Reg. 593/2013
Art. 2 (b) Delegated Reg [Licences] / Art. 187(a) Reg. 1308/2013
Article 7
1. The TRQs referred to in Articles 2, 3, 4, 5 and 6 shall be managed by using an import licence, or where applicable, an export licence. / IA "method of administration"
Art. 6(4) Reg. 1301/2006
4. Box 20 of import licence applications and import licences shall contain the import tariff quota order number referred to in paragraph 1. / 2. Each tariff quota is identified [in the Union legislation] by an order number that facilitates its management.
The order numbers for TRQs managed by licence are mentioned in Annex [.…] to this Regulation.
The order number shall be mentioned in section 20 in all applications and issuing of licences, and in all other communications related to in paragraph 1the management of the TRQ concerned. / Clarity, describing the function of the order number.
The first subparagraph copies Art. 49(2) Impl. Reg. 2015/2447
To consider whether/which TRQs could be transferred to DG TAXUD fcfs and under which conditions.

WTO standard:
use < 65%
During last 3 years

COM possible additional standard

If underuse was not due to SPS reasons

[ Art. 186(1)(c) Reg. 1308/2014
Article 2
SECURITY
1. Licences for a TRQ shall be subject to a security specific for the product concerned and for an amount referred to in Article 7 of Implementing Regulation (EU) 2016/….. [TRQ]. / Art. 187(d) Reg. 1308/2014
Article 8
1. The amount of the security referred to in Article 2 of Delegated Regulation (EU) 2016/ …. [TRQ] shall be as set out in the Annexes [….] to this Regulation. / Art. 2DA derogates from Art. 4(1) DA [Licences]
2. The minimum amount of security to be lodged for one import licence application for a TRQ shall be 100 EUR. / Art. 7 (2) and (3) IA help fighting abusive, or in terms of market management irrelevant, applications for very low quantities, which in addition otherwise also would be exempted of security by Art. 4(3) Delegated Reg. [Licences].
Article 2 Reg. 1301/2006
1. Import tariff quotas shall be opened for a period of 12 consecutive months, hereinafter referred to as ‘import tariff quota period’. / Art. 187(a) Reg. 1308/2014
Article 9
IMPORT TARIFF QUOTA PERIOD
1. Import tariff quotas shall be opened for a period of 12 consecutive months, hereinafter referred to as ‘import tariff quota period’.
2. The import tariff quota period may be divided into several subperiods. / 2. The import tariff quota period may be divided into several sub-periods. / MS / specialists to see whether sub-periodicity still is needed for each TRQ.
The import tariff quota period and sub-periods shall apply as set out in Annex [….] to this Regulation.
Article 3 Reg. 1301/2006
PENALTIES / Art. 64(6) Reg. 1306/2013
Move to end of the Regulation
Article 4 Reg. 1301/2006
SURVEILLANCE OF GOODS / Move to notifications Article
Art. 186(1)(a) Reg. 1308/2013
Article 3
ELIGIBILITY FOR APPLICATION
Operators applying for a TRQ, [or for a transfer of a TRQ licence in the meaning of Article 6(2) of Delegated Regulation (EU) 2016/…. [ Licences] ] shall submit:
- proof of their historic trade if required so in accordance with Article 4;
- proof of being an approved operator if required so in accordance with Article 5;
- [proof of their independency of other applicants if required so in accordance with Article 6;] / New Introduction article, listing the possible requirements for clarity reasons, and for simple references further in this Regulation.
Between [ ] to mention here, or to mention in the transfer article
Art. 5 Reg. 1301/2006
Applicants shall submit, at the time of their first application for a given import tariff quota period to the competent authorities of the Member State in which they are established and in which they are registered for VAT purposes the application referred to in Article 6(1) accompanied by proof that at the time their application is submitted, they have been engaged in trade with third countries in products covered by the relevant common market organisation:
— during the 12 month period immediately prior to the time of that application, and
— during the 12 month period immediately prior to the 12 month period referred to in the first indent. / Art. 186(1)(a) Reg. 1308/2014
Article 4
PROOF OF TRADE
1. Applicants shall submit, at the time of their first application for a given [import] TRQ order number and import tariff quota period to the competent authorities of the Member State in which they are established and in which [they are registered for VAT purposes] the application referred to in Article 6(1)[ their EORI number is registered,] accompanied bya proofthat at the time their application for a licence is submitted, they have been engaged in trade with third countries
- in products covered by the relevant common market organisation market sector; :
— during the [12 month] period immediately prior to [the time of that application] , [and
— during the [12 month] period immediately prior to the [12 month] period referred to in the first indent.- if applicable, for a quantity as set out in Annex [….] in the TRQ period concerned. / COM-wide harmonisation.
All […..] for discussion:

Each year again?
Only AGRIM?
VAT, while EORI already exists in the Reg. DA licence?
12 + 12 months carry-back?
Start counting from the day the application is lodged?
A quantity to mention? If so: a fixed quantity, or a reference quantity (= based on personal historic imports) ?

2. The proof of trade in products covered by the relevant sector shall be limited to products covered by the TRQ concerned if indicated so in the Annexes [….]. / In which cases limitation to the TRQ products (CN codes) must apply?
3. As concerns import rights, the proof of trade may be replaced by the proof of processing products of the TRQ concerned for the internal market if indicated so in the Annexes [….]. / Applicable in poultry
Simplification Discussion: should proof of trade apply for TRQs not transferred to TAXUD, but which are under-used until [65%] anyway?
Should Proof of trade be limited to the 47 fast used TRQs + the TRQs having been used for 100% or close to 100% at the end of the import tariff quota period during the last 3 years?
Proof of trade with third countries shall be furnished exclusively either by means of the customs documents of release for free circulation, duly endorsed by the customs authorities and containing a reference to the applicant concerned as being the consignee, or by means of the customs document of exportation duly endorsed by the customs authorities. / Article 10
1. Proof of trade with third countries referred to in Article 4(1) of Delegated Regulation (EU) 2016/… [TRQ] shall be furnished ,

by means of the customs data of release for free circulation or for release for export, or
[ By means of import or export licences duly processed for confirming the products' release for free circulation or export, ]

[ Or a combination of them. ] / 10 (1) Simplification:
- applicant chooses between customs data or licence data, or both, which must be accepted;
- Introduction of licences follows the 2010/12 discussions. The licence authority has the majority in its own files and can easily verify.
2. The customs or licence data may be generated and submitted according to the procedures and methods set out in Article 14 of Implementing Regulation (EU) No …/2016 [Licences]
If data can only be generated or submitted in paper format, the documents concerned must be duly certified as true copy [ by authorities competent according to the administrative procedures of the Member State concerned.] / Using the same methods for trade proof for TRQs as for licence proof of import/export is a harmonisation, giving room to full use of I.T. procedures.
Simplification in the paper environment: it is not necessarily customs-only having to certify the data. Example: in certain cases the licence authority in the MS of release for free circulation could be competent for such certification.
Customs agents or representatives shall not apply for import licences under the quotas falling within the scope of this Regulation. / 4. Customs agents or representatives shall not apply for import licences or import rights under the quotas falling within the scope of this Regulation.
Art. 186(1)(a) Reg. 1308/2013
Article 5
[ APPROVED OPERATOR
Applicants shall submit, at the time of their first application for a given import tariff quota period for products of animal origin, to the competent authorities of the Member State in which they are established and in which their EORI number is registered, the proof that they are a food business operator registered according to Regulation (EC) No 178/2002 and 853/2004 ] / New requirement, suggested by the beef industry. Concerns food law registrations.
CHAPTER II
SIMULTANEOUS EXAMINATION METHOD
Article 6 Reg. 1301/2006
Import licence applications and import licences
1. Applicants for import licences shall not lodge more than one import licence application for the same quota order number in respect of an import tariff quota period or subperiod. / Art. 186(1)(a) Reg. 1308/2013
Article 6
APPLICATIONS FOR A LICENCE OR AN IMPORT RIGHT
1. Applicants for import licences shall not lodge more than one import licence application for the same quota order number in respect of an import tariff quota period or subperiod. / Delegates are requested to reply in written on the questionnaire referred to.
2. As concerns eligibility to a certain TRQ, if an applicant legally merged with another operator, the reference quantities of both operators may be accumulated for establishing the reference quantity of the merged enterprise. / Standing opinion, to introduce in legislation
Where an applicant lodges more than one application, none of his applications shall be admissible. / 3. Where an applicant lodges more than one application, none of his applications shall be admissible. / Art. 62(2)(a) Reg. 1306/2013
Article11
CHECKS ON APPLICATIONS / IA New rule, based on the replies on the questionnaire on Article 6(1).
Should also reflect in Art. X on penalties
[DECLARATION][PROOF] OF INDEPENDENCY ]. / ART. 127 Implementing Reg. 2015/2447
2. In accordance with Article 15(2) of Regulation (EC) No 1291/2000 a security shall be lodged. The security shall be released in respect of quantities covered by applications for which no licence could be issued further to the application of the allocation coefficient referred to in Article 7(2) of this Regulation. / Art. 186(1)(c) Reg. 1308/2013
Moved to Article 2 DA / Art. 187(d) Reg. 1308/2013
Moved to Article 8 IA
3. Where this is deemed necessary for the management of a given import tariff quota, the Commission Regulations governing that quota may provide for additional conditions. They may, in particular, provide for the application of a system according to which the quotas are managed by attributing import rights as a first step and issuing import licences as a second. / Art. 186(1)(a) Reg. 1308/2013 / Art. 187(a) Reg. 1308/2013
Introduction moved to Article 5 IA
Paragraphs 1, 2 and 5 of this Article, Article 5, Article 7(1) second subparagraph, Article 7(2) and (4) and Article 11(1)(a) shall apply mutatis mutandis where a system of attribution of import rights is applied. / Art. 187(a) Reg. 1308/2013
Article 12
IMPORT RIGHTS
Paragraphs 1, 2 and 5 of this Article, Article 5, Article 7(1) second subparagraph, Article 7(2) and (4) and Article 11(1)(a) shall apply mutatis mutandis w
Where a system of attribution of import rights is applied according to Article 5 of this Regulation, theArticles 8, 9, 10, X and Article 3 of Delegated Regulation (EU) No [ TRQ] shall apply mutatis mutandis.
4. Box 20 of import licence applications and import licences shall contain the import tariff quota order number referred to in paragraph 1. / Art. 187(a) Reg.1308/2013
Moved to Art. 7(2) DA
5. An import licence application may not relate, by import tariff quota period or subperiod, to a quantity exceeding the quantity or, as the case may be, the limit fixed by the Commission Regulations governing the import tariff quota for that import tariff quota period or subperiod. / Art. 186 (1) (a) Reg.1308/2013
Article 6
3. An import licence application may not relate, by import tariff quota period or subperiod, to a quantity exceeding the quantity or, as the case may be, the quantitative limit fixed by theCommission Regulations set out in the Annexesgoverning the import tariff quota for that import tariff quota period or subperiod. / This system does not solve the case where applicant X anticipates a possible (low) allocation coefficient and asks for the whole (sub)period quantity, and applicant Y asks for the quantity he will be able to market.
If the allocation coefficient is low, X gets enough, Y gets too little. If the allocation coefficient is high or does not apply, X gets too much, Y gets sufficient quantity.
Art. 186 (1) (a) Reg.1308/2013
Article 6
ALTERNATIVE / Solution sought in encouraging applying for a realistic quantity. Your ideas please.
6. Import licence applications shall be lodged during a period fixed by the Commission Regulations governing the import tariff quota in question. That period may precede the import tariff quota period or subperiod. / Art. 186 (1) (a) Reg.1308/2013
Article 6
4. Import licence applications shall be lodged during a period fixed by the Commission Regulations governing the import tariff quota in question. That period may precede the import tariff quota period or subperiod. / Art. 187 (a) Reg.1308/2013
Article 13
[ 1 Import licence applications shall be lodged during a fixed period.
That period may precede the import tariff quota period or sub-period. ] / Simplification / harmonisation. One rule for all TRQs and for all licences not related to TRQs.
Important to enforce that there are no cross periods between lodging and notification to the COM
[ 2. If according to the Annexes applications for licences for a TRQ can only be lodged during a single allocation period for each import tariff quota period or sub-period, applications for import licences shall be submitted in the first seven days of the month preceding the import tariff quota period or sub-period.