Western-European importers were advised by their national import associations today that the European Commission has now officially proposed duty reduction for the Asian Nations.
The EU commission made a proposal to alter the regulation on statistical numbers 1604 14 11, 1604 14 18, and 1604 20 70, all canned tuna.
Basically, the EU is accepting the proposal of the WTO–mediators, which suggest a 12% ad valorem duty tariff based on a contingent. This contingent or quota should be opened for the duration of 5 years, and be increased annually by about 3%. In the proposal the first two years should have a quota of 25,000 M/T from July 1st till June 30th 2004, and 25,750 M/T from July 1st 2004 till June 30th 2005.
Although initially only Philippines and Thailand were mentioned in the negotiations, now the proposal of the EU commission is that the quota will be divided among more countries.
The commission proposes the following division: Thailand 52%, Philippines 35%, Indonesia 11% and other non- ACP or Andean countries 1%.
This would effectively mean based on 20ft full container loads: Thailand 788 fcl, Philippines 530 fcl , Indonesia 167 fcl, and other third countries combined 15 fcl. This division initially basically entirely closes the door to the EU for China as upcoming tuna fishing and canning nation.
In the correspondence, the Western European canned fish importers are advised that still final negotiations have to be concluded before the proposal can be put into effect. It is yet unclear if these negotiations will be finished in time to implement the quota by July 1st of this year.
Below the full text of the proposal by the European Commission:
COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 27.3.2003
COM(2003) 141 final
2003/0313 (ACC)
Proposal for a
COUNCIL REGULATION
opening and providing for the administration of a tariff quota for imports of canned
tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70
(presented by the Commission)
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EXPLANATORY MEMORANDUM
At the WTO Ministerial Conference in Doha in November 2001 both the Philippines and Thailand joined the consensus on the EC request for a waiver under Article IX.3 of the WTO Agreement on the preferences afforded to ACP states as described in the Cotonou Agreement.
They did so subsequent to an agreement with the EC to enter into expeditious consultations to examine the extent to which their legitimate interests are being unduly impaired as a result of the implementation of the preferential tariff treatment for canned tuna originating in the ACP states. While imports of canned tuna from the ACP states enjoyed duty free access, Thailand and the Philippines were both subject to a MFN duty of 24%.
After these consultations failed to achieve a mutually acceptable solution the EC, Thailand and the Philippines agreed to refer the matter to mediation under the auspices of the WTO.
On 20 December 2002 the Mediator issued an advisory opinion whereby the most equitable means to address the situation would be for the EC to open a MFN-based tariff quota of 25,000 tons for 2003 at an in-quota tariff rate of 12% ad valorem.
The Commission considers that this opinion represents a reasonable proposal. From an economic point of view, the establishment of a tariff quota of 25,000 tons at a 12% ad valorem tariff rate will not prejudice either ACP imports or EC production of canned tuna.
This volume represents 4,6% of the EC consumption in 2000, 9% of total imports in 2001, 37% of total MFN imports and 15% of ACP imports.
Politically, acceptance would resolve this long-standing problem with Thailand and the Philippines. Both countries have already indicated their readiness to accept the mediator’s opinion. A recourse to a WTO panel could thus be avoided.
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2003/0313 (ACC)
Proposal for a
COUNCIL REGULATION
opening and providing for the administration of a tariff quota for imports of canned tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof,
Having regard to the proposal from the Commission1,
Whereas:
(1) In November 2001 the EC, Thailand and the Philippines agreed to hold consultations to examine to what extent the Thai and the Philippine legitimate interests were being unduly impaired as a result of the implementation of the preferential tariff treatment for canned tuna originating in ACP states. Following the failure to achieve a mutually acceptable solution, the EC, Thailand and the Philippines agreed to refer the matter to mediation. On 20 December 2002 the mediator presented its opinion whereby the EC should open a MFN-based tariff quota of 25,000 tons for 2003 at an in-quota tariff rate of 12% ad valorem.
(2) Given its desire to resolve this long-standing problem, the Community has decided to accept this proposal. Therefore, an additional tariff quota for a limited volume of canned tuna should be opened.
(3) It is appropriate to allocate country specific shares of the quota to those countries having a substantial interest in supplying canned tuna, on the basis of the quantities supplied by each of them under non-preferential conditions during a representative period of time. The remaining part of the quota should be available to all other countries.
(4) The best way of ensuring optimal use of the tariff quota is to allocate it in the chronological order of the dates on which declarations of release for free circulation are accepted.
(5) In order to ensure that the quota is administered efficiently, presentation of a certificate of origin should be required for imports of canned tuna from Thailand, the Philippines and Indonesia, the main suppliers and the main beneficiaries of the quota.
1 OJ C …, …, p. …
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(6) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission2.
HAS ADOPTED THIS REGULATION:
Article 1
From 1 July 2003, imports of canned tuna covered by CN codes 1604 14 11, 1604 14 18 and 1604 20 70 originating in any country shall be eligible for a tariff rate of twelve per cent within the limits of the tariff quota opened in accordance with this Regulation.
Article 2
The tariff quota shall be opened annually for an initial period of five years. Its volume for the first two years shall be fixed as follows:
— 25 000 tons from 1 July 2003 to 30 June 2004,
— 25 750 tons from 1 July 2004 to 30 June 2005.
Article 3
The tariff quota shall be divided into four parts, as follows:
(a) a quota of 52% of the annual volume, with the order number 09.2005, for imports originating in Thailand, and
(b) a quota of 36 % of the annual volume, with the order number 09.2006, for imports originating in the Philippines, and
(c) a quota of 11 % of the annual volume, with the order number 09.2007, for imports originating in Indonesia, and
(d) a quota of 1 % of the annual volume, with the order number 09.2008, for imports originating in other third countries.
2 OJ L 184, 17.7.1999, p. 23.
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Article 4
1. The origin of canned tuna qualifying for the tariff quota shall be determined in accordance with the provisions in force in the Community.
2. Qualification for the share of the tariff quota allocated to Thailand, the Philippines and Indonesia, in accordance with Article 3 shall be subject to presentation of a certificate of origin meeting the conditions laid down in Article 47 of Commission Regulation (EEC) No 2454/933.
Certificates of origin shall be accepted only if the products meet the criteria for determining origin set out in the provisions in force in the Community.
Article 5
The tariff quota shall be administered by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93.
Article 6
This Regulation may be revised during the second year after the tariff quota is opened in order to adapt the volume of the quota to the needs of the Community market. If, however, this revision is not completed three months before the 30 June 2005, the quota shall be automatically extended for a further year for a volume of 25 750 tons. Subsequently the tariff quota shall be extended regularly for one year at a time and for the same volume unless a revision is adopted not later than three months before the closure of the current quota.
Article 7
The measures necessary for the implementation of this Regulation, including the amendments and adjustments required by amendments to the Combined Nomenclature and the TARIC, shall be adopted in accordance with the procedure referred to in Article 8(2).
Article 8
1. The Commission shall be assisted by the Customs Code Committee (hereinafter referred to as ‘the Committee’) set up by Article 247a of Council Regulation (EEC) No 2913/924.
2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.
The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months.
3 OJ L 253, 11.10.1993, p. 1.
4 OJ L 302, 19.10.1992, p. 1.
Article 9
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the Council
The President