EN EN

EUROPEAN COMMISSION

Brussels, XXX

[…](2016) XXX draft

COMMISSION DELEGATED REGULATION (EU) …/...

of XXX

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the

Council with regard to the rules for applying the management system of tariff rate

quotas and supplementing Regulation (EU) No 1306/2013 of the European Parliament

and of the Council with regard to the rules on the application of administrative penalties

in the management system of tariff rate quotas

(Text with EEA relevance)

Meeting of the of the CMO Expert Group

Horizontal Matters

13 September 2016

Version 3

Track changes = difference with version 2

Exchange of views on TRQs

WORKING 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.

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EXPLANATORY MEMORANDUM

1. CONTEXT OF THE DELEGATED ACT

The 2013 reform of the Common Agricultural Policy (CAP) confirmed that the management

system of Tariff Rate Quotas by agricultural import and export licences as a tool for

monitoring these trade flows should continue to apply.

The quotas as such derive from international agreements which are not touched by this draft

legislation. The internal Union management requires rules which are specific and

complementary to existing legislation, in particular Delegated Regulations (EU) 2016/1237

(Licences); (EU) No 2014/907 (securities and penalties); and (EU) 2015/2447 (Customs

Code). This draft Delegated Regulation complements the rules for which the basis is given in

Articles 184-188 of Regulation (EU) No 1308/2013 (CMO) and comprises the issues laid

down in more than 30 present Commission Regulations.

The management of certain over-demanded TRQs – in particular in the poultry sector and

garlic – needed an overhaul due to increased problems in enforcing the policy that TRQs

should in particular benefit EU operators contributing to a proper functioning of the internal

market. These rules – in the headings of the articles qualified as "specific"- have at first

glance an appearance as increasing administrative burden for operators and administrations,

but in a longer term they create reduction of such burden and contribute to better market

stability. On the other hand simplifications are introduced by transferring the management of

under-used TRQs to customs' first come/first served management (XX of the present 147

TRQs managed by agricultural licence), and by exempting the proof of trade for getting

access to low-used TRQs (XX of the present 147 TRQs); both simplifications are not visible

in this legal act.

Many of the general Tariff Rate Quota rules laid down before the 2013 reform have not been

updated. Therefore, those provisions need to be repealed and replaced by simplified rules that

are aligned with the Treaty of Lisbon and the empowerments contained in the relevant basic

acts (mainly Regulation (EU) No 1308/2013).

2. CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT

In the period July 2014 to September 2016, the provisions on tariff rate quotas laid down in

existing Commission Regulations and the issues arising from them were discussed extensively

with the experts of the Member States using the open working method developed by the Task

Force CMO to coordinate the alignment of existing CMO 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 the views and

positions expressed. In parallel multifold hearings of stakeholders took place and the feed-

back mechanism under the "better regulation" policy has been applied.

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 rate quotas

management. The issues are predominantly based on present Commission Regulation (EC)

No 1301/2006 for import quotas, and Regulation (EC) No 1187/2009 for export quotas based

on international agreements in the milk sector. Stakeholders and experts called to respect

Mis en forme : Text 1

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sectoral and traditional differences. The draft Delegated Regulation gives the principles

applying to such sectoral specificities, while the specificities themselves are set out in the

sectoral Chapters and Annexes to the Implementing Regulation. Novelties compared with

existing Commission regulations are introduced in the specific proof of trade for over-

demanded TRQs concerning a self-declaration of the operator being independent of other

operators (Article 5(3)), [ and the publication of licence holders' name and address on national

web-sites (Article 5(4)]. The general rule that rights of licences are transferable in general is

limited for TRQs to transfer only to transferees meeting the same obligations as the licence

titular holder (Article 8(1)).

Finally, the delegated act repeals the existing horizontal Commission Regulations on TRQs.

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WORKING DOCUMENT

Draft

Track changes = difference with version 2

COMMISSION DELEGATED REGULATION (EU) …/...

of XXX

supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the

Council with regard to the rules for applying the management system of tariff rate

quotas [with licences] and supplementing Regulation (EU) No 1306/2013 of the

European Parliament and of the Council with regard to the rules on the application of

administrative penalties in the management system of tariff rate quotas

(Text with EEA relevance)

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 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 186 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 485/2008, and in

particular Article 64[(4)(d)] and 66 thereof,

Whereas:

(1) Regulation (EU) No 1308/2013 repealed and replaced Council Regulation (EC) No

1234/2007 and lays down rules regarding tariff quota management and special

treatment of imports by third countries. It also empowers the Commission to adopt

delegated and implementing acts in that respect. In order to ensure the smooth

functioning of the management of tariff quotas in the new legal framework, certain

rules have to be adopted by means of such acts.

(2) In order to guarantee a sound management of tariff quotas, eligibility criteria for

application for a licence for tariff quotas should be laid down.

1 OJ L 347, 20.12.2013, p. 671.

Mis en forme : Police :12 pt, Couleurde police : Automatique

Mis en forme : Titre objet

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(3) As a general rule, in order to facilitate management and control, applying for a licence

for a tariff quota should be allowed only to operators established and registered for

VAT purposes in a Member State.

(4) It is necessary to provide that the licences under tariff quotas are to be issued subject

to the lodging of a security, so as to guarantee that the products will be imported or

exported under that tariff quota during the period of validity of the licence. It is also

necessary to lay down when the obligation to import or export under the tariff quota is

fulfilled.

(5) As one of the criteria for applying for a licence under tariff quotas can be proof of

trade proving the past performance and involvement in the specific trade, it is

necessary to lay down rules for such proof of trade.

(6) In order to guarantee a sound management of tariff quotas, quantities to be applied for

under tariff quotas may be set out. It is necessary to lay down specific rules for that.

(7) Given the economic reality of tariff quotas, it is appropriate to lay down specific rules

as regards the transferability of a licence under tariff quotas allowing a possible

transfer only to transferees satisfying the same eligibility criteria as the applicant for a

licence under a tariff quota.

(8) Provisions should be laid down on the release and forfeiture of the security lodged for

licences under tariff rate quotas.

(9) Experience shows that provisions need to be laid down to deter inaccurate documents

from being presented. A suitable penalty system should therefore be established and

the cases where no penalties are to be applied should be determined.

(10) For the sake of clarity it is appropriate to lay down the rules concerning the licences

issued for products under tariff quotas for which the conditions are affected by this

Regulation and which are still valid on the date of application of this Regulation.

(11) As the aim of this Regulation and Commission Implementing Regulation (EU) …/…

[TRQs] is to simplify and adapt the provisions applicable to the tariff quota

management and special treatment of imports by third countries to the new legal

framework established by Regulation (EU) No 1308/2013, the currently applicable

provisions should be replaced. For the sake of clarity, certain provisions of

Commission Regulations […] should be deleted and Commission Regulations […]

should be repealed.

(1)(12) The transition from the arrangements provided for in the deleted provisions and

repealed Regulations to those provided for in this Regulation might have some

practical consequences. Therefore, and taking account of the obligation to notify the

new rules to World Trade Organisation in advance, it is appropriate to defer the

application of this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Art. 1(2) Reg. 1301/2006

Scope of the Regulation

1. This Regulation supplements the rules for applying the system of Tariff Rate Quotas

(TRQ) for agricultural products managed by licence, provided for in Articles 184 to

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188 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.

2. This Regulation supplements the rules, under the system of import and export

licences for a tariff rate quota, 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.

3. Regulation (EU) No 952/20132 and Delegated Regulations (EU) 2016/1237,

3 (EU)

No 907/20144, and (EU) 2015/2446

5 shall apply, save as otherwise provided for in

this Regulation.

4. 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 the markets may provide that this Regulation shall apply to

that import tariff quota.

Article 2

Art. 186(1)(a) Reg. 1308/2013. Art. 22(4) Reg.1187/2009

Eligibility for application

1. Operators applying for a licence for a TRQ, or for an import right where applicable,

shall be established and registered for VAT in the Union and shall submit to the

licence issuing authority of the Member State of their registration at the first

application of each TRQ period.

(a) proof of their historic trade, where required, in accordance with Articles 4 or

5. In accordance with the procedure of Article 229(2) of Regulation (EU) No

1308/2013 the Commission may decide that the requirement under this

subparagraph shall be suspended for certain TRQs, or that the suspension shall

be lifted. The suspension shall be indicated in the Annexes concerned to

Implementing Regulation (EU) 2016/ …… [TRQ];

(b) proof of their independency of other applicants, where required, in accordance

with Article 9 12 of Implementing Regulation (EU) 2016/…..(TRQ).

(c) For export quota where set out in the Annexes to Implementing Regulation

(EU) 2016/….. [TRQ], evidence that the designated importer in the third

country concerned is a subsidiary of the applicant.

2 OJ L 269, 10.10.2013, p.1

3 OJ L 206, 30.7.2016, p.1

4 OJ L 255, 28.8.2014, p.18

5 OJ L 343, 29.12.2015, p.1

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Article 3

Art. 186(1)(c) Reg. 1308/2014

Security at application

1. The issue of a licence for a TRQ, or an import right where applicable, shall be

subject to a security being available at the licence issuing authority before the end of

the application period specific for the product concerned and for an amounta rate

referred to in Article 8 9 of Implementing Regulation (EU) 2016/….. [TRQ].

2. The security shall be released in respect of quantities covered by applications for

which no import right or import or export licence could be issued further to the

application of the allocation coefficient referred to in Article 13 14 of Implementing

Regulation (EU) 2016/…. [TRQ].

Article 4

Art. 186(1)(a) Reg. 1308/2014. Ex-Art. 5 Reg. 1301/20006

General proof of trade

1. Operators shall submit, at the time of their first application for a given import TRQ

order number and import tariff quota period to the licence issuing authority of the

Member State in which they are established and in which they are registered for

VAT purposes proof that at the time their application for a licence is submitted, proof

that for import quotas they have been engaged in release for free circulation or

export, and for export quotas that they have been engaged in exports, of products

covered by the relevant market sector

– during the 12 month period immediately prior to the month in which the

application is received in accordance with Article 2(1) of Implementing

Regulation (EU) 2016/12396 (n-1), and

– during the [12 month] period immediately prior to the [12 month] period

referred to in the first indent (n-2)

– for a minimum quantity [in the period n-1 and n-2] as set out in the Annexes to

Implementing Regulation (EU) 2016 [TRQ]

2. The proof of the period n-1 shall be valid as proof of the period n-2 in the next TRQ

period, if applicable, and it shall not be submitted again in the application for the

next TRQ period, unless the applicant requests replacement of that proof by new

information.

3. Where eligibility for a TRQ is subject to past trade performance for a certain

quantity, if an operator legally merged with another operator, the quantities of

products released into free circulation or exported according to paragraph 1, of the

merged operators, may be accumulated for establishing the quantity of the merged

enterprise.

4. The proof of trade in products covered by the relevant sector shall be limited to

products released for free circulation or export, for a selection of products of the

6 OJ L 206, 30.7.2016, p.44

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sector concerned if indicated so in the Annexes of Implementing Regulation (EU)

2016/….. [TRQ].

Article 5

Art. 186(1)(a) Reg. 1308/2014. Ex-Art. 5 Reg. 1301/2006

Specific proof of trade, declaration of independence, and publication of applicants for

certain over-demanded TRQs

1. Article 4(1) of this Regulation shall not apply for certain TRQs, as set out in the

Annexes of Implementing Regulation (EU) 2016/….. (TRQ).

2. Operators applying for an import right licence for a TRQ referred to in paragraph

1Article 13 of Implementing Regulation (EU) 2016/…. [TRQ] shall submit, at the

time of their first application for a given import TRQ order number and import tariff

quota period, to the licence issuing authority of the Member State in which they are

established and in which they are registered for VAT purpose, proof that at the time

their application for a licence is submitted, they have been engaged in releasing into

free circulation a selection of products of designated CN codes within the

sectorproducts covered by the TRQ order-number concerned

(a) during the 12 month period immediately prior to the month the application is

received in accordance with Article 2(1) of Implementing Regulation (EU)

2016/1239 (n-1), and

(b) during the [12 month] period immediately prior to the [12 month] period

referred to in the first indent (n-2);

[If the Annexes to Implementing Regulation (EU) 2016/….. [TRQ] indicate so, the

period mentioned in point b) does not apply.]

The quantity of those products placed into free circulation, where applicable taking

account of Article 5(3), shall be the reference quantity as set out in Article 13(2)

Implementing Regulation (EU) 2016/… [TRQ].

3. Operators applying for a licence for a TRQ referred to in paragraph 1 an import right

referred to in paragraph 2, or for an import licence if indicated so in specific sectoral

provisions, shall submit a declaration that they are independent of other applicants

for that TRQ, according to the provisions set out in Article 127(1) and (3) of

Implementing Regulation (EU) 2015/2447or that they are the sole applicant of linked

entities for that TRQ, or that their being linked with other applicants is justified for

legal or factual circumstance.

4. By TRQ order number the name and address of Ooperators applying for a licence for

a TRQ having received import rights according to Article 13 of Implementing

Regulation (EU) 2016/…. (TRQ) shall be published on the licence issuing authority's

official website when the TRQ period concerned is ended. The publication shall be

removed when the TRQ period expired. after [12] months.

EN 9 EN

Article 6

Art. 186 (1) (a) Reg.1308/2013. Ex-Art. 6(5) Reg. 1301/2006

Quantity to apply for

1. An import or export licence application may not exceed, by import tariff quota

period or sub-period, the quantity available for the import tariff quota period or sub-

period concerned, or, as the case may be, the quantitative limit set out in the

Annexes of Implementing Regulation (EU) 2016/….. [TRQ], where applicable

increased by the additional quantities published according to Article 19(4) of

Implementing Regulation (EU) 2016/………[TRQ].

2. The quantity to apply for shall not be lower, by import tariff quota period or sub-

period, than the quantity set out in the Annexes toof Implementing Regulation (EU)

2016/….. [TRQ].

3. If indicated so in the Annexes to Implementing Regulation (EU) 2016/….. [TRQ],

the quantity to apply for shall be limited to a maximum.

2.4. If the system of reference quantities referred to in Article 5(2) applies, the quantity to

apply for shall be the reference quantity, where applicable corrected with the

coefficient and limited to a maximum as set out in the Annexes to Implementing

Regulation (EU) 2016/….. [TRQ].

Article 7

Art. 186(2) Reg.1308/2013. Articles 16(1), 21, 27(1)Reg. 1187/2009

Special treatment on importation into a third country

The competent authorities of the Member States shall issue an export licence, at request and

after appropriate checks, certifying that the conditions are met for products that may benefit

from a special treatment on importation into a third country.

Article 7 8

Art. 177(2)(c) Reg. 1308/2013

Specific rules on transfer

1. Except for the TRQs referred to set out in Article 5, in addition to Article 6 of

Delegated Regulation (EU) 2016/1237….. (Licences), an import or export licence for

a TRQ is only transferable to another import or export licence titular holder of the

same TRQ order number a transferee satisfying the same eligibility criteria referred

to in Article 2. in the same TRQ period or sub-period where applicable.

2. Transfer of an export document issued by a third country cannot be carried out by the

licence issuing authority.

3.2. If an import or export licence for a TRQ is transferred, the quantity released for free

circulation or for export under that transferred licence shall be attributed to the proof

of trade, as set out in Article 4, of the transferee.

Mis en forme : Police :Non Gras,Italique, Français (Belgique)

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Mis en forme : Français (Belgique)

Mis en forme : Police :Gras, NonItalique

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Mis en forme : Justifié

Mis en forme : Police :Non Italique

Mis en forme : Police :Non Italique

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Article 8

Article 186(1)(a) Reg. 1308/2013. Ex-Art. 12+ 13 Reg. 1301/2006

Management method based on documents issued by third countries

Moved to Article 7 Implementing Regulation

1. Where an import tariff quota is administered using a method based on a document

issued by a third country as referred to in Article 2 of Implementing Regulation (EU)

2016/….[TRQ], such document shall be presented with the application for a licence

to the licence issuing authority of the Member State, together with the application for

the import licence to which that document relates.

The original of the document shall be kept by the licence issuing authority.

2. If a document referred to in the first paragraph mentions the importer in the Union,

such information is not binding unless indicated otherwise in the Annexes.

3. Article X, Y, Z 6(2), (3) and (4), Articles 8, 9 and 10, Article 11(1)(b) and (c),

Article 11(2), (3) and, where applicable, Article 11(1)(a) shall apply mutatis

mutandis where the management method based on documents issued by third

countries is applied.

Article 9 8

Art. 66(3)(c) Reg. 1306/2013.

Release and forfeiture of securities

1. Article 7 (1), (3) and (4) of Delegated Regulation (EU) 2016/……..(Licences) shall

apply to the release and forfeiture of securities for a licence for a TRQ.

2. In derogation from the first subparagraph of Article 23(4) of Delegated Regulation

(EU) No 907/2014, where the release for free circulation or export took place within

the period of validity of the licence, but the term for proving such release is

exceeded, the security shall be forfeited by 3% for each calendar day by which the

time limit is exceeded.

Article 10 9

Art. 64(4)(d) Reg. 1306/2013. Ex-Art. 3 Reg. 1301/2006

Penalties

1. Where it is found that a document presented by an operator applying for an import

right or import or export licence for a given import of export quota is incorrect and

where the document concerned is decisive for the attribution of that right, the licence

issuing authority shall:

(a) bar the operator from bringing into free circulation or export any goods under

the import tariff quota or export tariff quota concerned for the entire import or

export tariff quota period in which the finding was made and;

Mis en forme : Anglais (Royaume-Uni)

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(b) exclude the operator from the licence application system for the import or

export tariff quota concerned in the following import tariff quota period.

If the incorrect document concerns the declaration as set out in Article 9 of

Implementing Regulation (EU) No 2016/…. TRQ, the penalties shall apply to all

operators concerned by that declaration.

In applying this paragraph the competent authority shall take account of Article 64(2)

of Regulation (EU) No 1306/2013.

2. If an operator referred to in paragraph 1 deliberately presents an incorrect document ,

that operator shall:

(a) be barred from bringing into free circulation any goods under the import tariff

quota concerned for the entire import or export tariff quota period , or export

any products under the export tariff quota concerned for the entire export tariff

quota period during which the finding was made and;

(b) be excluded from the licence application system for the import or export tariff

quota concerned during the following two import tariff quota periods.

In addition, if it concerns an incorrect declaration as set out in Article 11 of

Implementing Regulation (EU) 2016/… [TRQ], the measures referred to in this

paragraph shall apply for all linked entities in the TRQ concerned.

3. Where release for free circulation or export has already been carried out prior to the

finding referred to in paragraphs 1 or 2, any undue financial advantages resulting

therefrom shall be recovered.

4. Subject to Article 6 of Council Regulation (EC, Euratom) No 2988/95, the penalties

referred to in paragraphs 1 and 2 of this Article shall be without prejudice to any

additional penalties pursuant to other provisions of Union or national law.

Article 11

Specific tariff quotas

For the specific tariff quotas for Spain and Portugal referred to in Article 185 of Regulation

(EU) No 1308/2013 the following applies. [to be completed by C.4]

Article 12

Article 223 Reg. 1308/2013. Ex-Art. 11 Reg. 1301/2006

Notifications to the commission

In accordance with the detailed conditions laid down in the Implementing Act adopted

pursuant to Article 223(3) of Regulation (EU) No 1308/2013, Member States shall notify the

Commission of the following:

(a) The quantities covered by licence applications;

(b) The quantities covered by import and export licences issued;

(c) The non-used quantities covered by unused or partly used import and export licences.

Mis en forme : Anglais (Royaume-Uni)

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Mis en forme : Hiérarchisation +Niveau : 2 + Style de numérotation : a,b, c, … + Commencer à : 1 +Alignement : Gauche + Alignement : 0cm + Tabulation après : 1,5 cm +Retrait : 1,5 cm

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Article 13

Repeal

Regulation (EC) No 1301/2006 and Regulation (EC) No 1187/2009 isare repealed.

However, the repealed Regulations shall continue to apply for import and export licences for a

TRQ issued under that Regulation.

Article 14

Entry into force and application

1. This Regulation shall enter into force from the seventh day following that of its

publication in the Official Journal of the European Union.

2. It shall apply from the fifth month after its entry into force.

3. For each TRQ it shall apply on the day the application period for an import licence

for a new TRQ period is opened after the day of application referred to in paragraph

2.

4. However, Article 5 shall apply for each TRQ concerned one year after the day

indicated in paragraph 3.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Commission

The President

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