Commission Regulation (EC) No 1870/2005 of 16 November 2005 opening and providing for the administration of tariff quotas and introducing a system of import licences and certificates of origin for garlic imported from third countries
Modified by
  • Commission Regulation (EC) No 991/2006of 30 June 2006amending Regulation (EC) No 1870/2005 opening and providing for the administration of tariff quotas and introducing a system of import licences and certificates of origin for garlic imported from third countries, 306R0991, July 1, 2006
  • Commission Regulation (EC) No 2000/2006of 20 December 2006amending Regulation (EC) No 1870/2005 by reason of the accession of Bulgaria and Romania to the European Union, 306R2000, December 28, 2006
Commission Regulation (EC) No 1870/2005of 16 November 2005opening and providing for the administration of tariff quotas and introducing a system of import licences and certificates of origin for garlic imported from third countries THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to the Treaty of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia, Having regard to the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia, and in particular the first paragraph of Article 41 thereof, Having regard to Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetablesOJ L 297, 21.11.1996, p. 1. Regulation as last amended by Commission Regulation (EC) No 47/2003 (OJ L 7, 11.1.2003, p. 64)., and in particular Articles 31(2) and 34(1) thereof, Whereas: (1)Following negotiations conducted in accordance with Article XXVIII of GATT 1994, the Community amended the conditions governing imports of garlic. Since 1 June 2001 the normal customs duty for imports of garlic falling within CN code 07032000 has consisted of an ad valorem customs duty of 9,6 % and a specific amount of EUR 1200 per tonne net. However, a quota of 38370 tonnes free of specific duty was opened by an Agreement in the form of an Exchange of Letters between the European Community and the Argentine Republic pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT, approved by Council Decision 2001/404/ECOJ L 142, 29.5.2001, p. 7. (hereinafter the GATT quota). The Agreement stipulates that the quota is to be divided up into 19147 tonnes for imports from Argentina (order numbers 09.4104 and 09.4099), 13200 tonnes for imports from China (order numbers 09.4105 and 09.4100) and 6023 tonnes for imports from other countries (order numbers 09.4106 and 09.4102). (2)Garlic may also be imported outside the GATT quota at the normal duty or on preferential terms under agreements concluded between the Community and certain third countries. (3)Garlic is an important product of the European Union’s fruit and vegetables sector, with an annual production of around 250000 tonnes in the EU. The annual import from third countries is also significant, ranging from 60000 to 80000 tonnes. The two main third country suppliers are China (30000 to 40000 tonnes per year) and Argentina (around 15000 tonnes per year). (4)The conditions governing the administration of these quotas are laid down in Commission Regulation (EC) No 565/2002 of 2 April 2002 establishing the method for managing tariff quotas and introducing a system of certificates of origin for garlic imported from third countriesOJ L 86, 3.4.2002, p. 11. Regulation as amended by Regulation (EC) No 537/2004 (OJ L 86, 24.3.2004, p. 9).. In the light of experience gained in the application of that Regulation, some of the current conditions need to be amended in order to simplify and clarify the system. (5)Since there is a specific duty on non-preferential imports outside the GATT quota, the management of the GATT quota requires the introduction of a system of import licences. Such a system should permit the detailed monitoring of all garlic imports. The detailed rules for that system should supplement, and might need to derogate from, those laid down by Commission Regulation (EC) No 1291/2000 of 9 June 2000 laying down common detailed rules for the application of the system of import and export licences and advance fixing certificates for agricultural productsOJ L 152, 24.6.2000, p. 1. Regulation as last amended by Regulation (EC) No 1741/2004 (OJ L 311, 8.10.2004, p. 17).. (6)In order to monitor all imports as closely as possible, in particular following recent incidents involving fraud, two categories of import licences should also be introduced for all imports of garlic. Experience shows that fraud is typically carried out by transhipping Chinese garlic through third countries having preferential trade agreements with the European Community. The garlic enters the EU with false documents. (7)The switchover from one system to the other should be as smooth as possible. To that end, certain of the detailed rules for the application of Regulation (EC) No 565/2002 should be carried over and the traditional import timetable should be maintained. (8)Imports of garlic should be monitored in accordance with Article 308d of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs CodeOJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 883/2005 (OJ L 148, 11.6.2005, p. 5).. (9)There should continue to be an adequate supply of garlic on the Community market at stable prices whilst avoiding unnecessary market disruptions in the form of severe price fluctuations and adverse effects on the Community producers. To that end, greater competition amongst importers should be encouraged and administrative burdens on importers reduced. (10)In the interest of existing importers, who normally import substantial quantities of garlic, and also in that of new importers joining the market, who should also have a fair opportunity to apply for import licences for a quantity of garlic under tariff quotas, a distinction should be drawn between traditional importers and new importers. A clear definition of those two categories of importers should be provided and certain criteria relating to the status of the applicants and the use of the import licences allocated should be laid down. (11)The quantities to be allocated to those categories of importers should be determined on the basis of the quantities actually imported rather than on the basis of the import licences issued. (12)In order to allow importers in the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (hereinafter the new Member States) to benefit under this Regulation, arrangements should be laid down covering the 2005/06 and 2006/07 import periods to ensure that a distinction is made between, on the one hand, traditional importers and new importers within the Community as constituted at 30 April 2004 and, on the other hand, traditional importers and new importers in the new Member States. (13)In order to take account of the different trade patterns in the different new Member States, the competent authorities of the new Member States should be allowed to choose between two methods for establishing the reference quantity of their traditional importers. (14)Applications for import licences to import garlic from third countries presented by importers of both categories should be subject to certain restrictions. Such restrictions are necessary to ensure not only that competition between importers is safeguarded but also that importers genuinely engaged in commercial activity in the fruit and vegetable market are given the opportunity to defend their legitimate trading positions vis-à-vis other importers and that no single importer is able to control the market. (15)In order to safeguard competition between genuine importers and to prevent speculation in the allocation of import licences and any abuse of the system that would run contrary to the legitimate trading positions of new and traditional importers, more stringent controls on the correct use of import licences should be put in place. To that end, the transfer of import licences should be prohibited. (16)With a view to reducing the importers’ administrative burden and the possibilities of fraud, import licence applications should be presented only in the Member State where the importer is entered in a register. (17)Measures are also needed to keep to a minimum speculative applications for import licences that may result in the tariff quotas not being fully utilised. Because of the nature and the value of the product, a security as referred to in Article 15(2) of Regulation (EC) No 1291/2000 should be lodged in respect of each tonne of garlic for which an import licence application is lodged. The security should be of an amount that is high enough to discourage speculative applications but not so high as to discourage those genuinely engaged in commercial activity in garlic. The most appropriate objective level for the security is 5 % of the average additional duty applicable to imports of garlic falling within CN code 07032000. (18)To ensure that the GATT quota is managed properly, the measures to be taken by the Commission where the quantities of garlic of a specific origin or for a specific quarter covered by import licence applications exceed those fixed by Decision 2001/404/EC, added to the unused quantities from import licences previously issued, should be determined. Where such measures involve applying an allocation coefficient when the import licences are issued, it should be possible to withdraw applications for those import licences with immediate release of the security. (19)To ensure that the quotas are used properly, the Member States should regularly notify the Commission of the quantities covered by import licences issued by the competent authorities of the Member States and not used by importers. The quantities covered by import licences issued should take account of import licence applications withdrawn by importers. (20)For the purposes of administering the tariff quotas for garlic, importers lodging applications for import licences should attach a declaration to their applications to the competent authorities of the Member State to the effect that they undertake to comply with the restrictions laid down in this Regulation. To prevent any abuse of the system, deterrent penalties should be provided for and the Member States should be allowed some margin of discretion to impose additional penalties on top of those provided for in this Regulation on importers who present false, misleading or inaccurate applications or declarations to the competent authorities. (21)To improve controls and prevent any risk of deflection of trade based on inaccurate documentation, the existing system of certificates of origin for garlic imported from certain third countries and the requirement for such garlic to be transported direct from the third country of origin to the Community should be maintained and the list of countries extended in the light of additional information. Such certificates of origin are to be issued by the competent national authorities in accordance with Articles 56 to 62 of Regulation (EEC) No 2454/93. (22)All the necessary communications between Member States and the Commission pursuant to this Regulation should be specified, in particular for the purpose of administering tariff quotas, taking measures against fraud and monitoring the market. (23)Regulation (EC) No 565/2002, Commission Regulation (EC) No 228/2004 of 3 February 2004 laying down transitional measures applicable to Regulation (EC) No 565/2002 by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and SlovakiaOJ L 39, 11.2.2004, p. 10. and Commission Regulation (EC) No 229/2004 of 10 February 2004 derogating from Regulation (EC) No 565/2002 as regards the dates for lodging the import licence applications for imports of garlic for the first quarter of the period 2004 to 2005OJ L 39, 11.2.2004, p. 12. .should be repealed. This Regulation should apply for the first time to applications for import licences for the first quarter of the 2006/07 import period. However, given that import activities governed by the provisions of this Regulation concerning "B" licences are not, at present, subject to any specific licensing rules and in order to ensure more effective controls, the provisions concerning "B" licences should apply as soon as possible. (24)For imports of garlic effected after the entry into force of this Regulation under import licences issued in accordance with Regulation (EC) No 565/2002 and any regulations opening and providing for the administration of autonomous tariff quotas for garlic, the provisions in force when those import licences were issued should continue to apply. (25)The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Fresh Fruit and Vegetables, HAS ADOPTED THIS REGULATION:
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