Explanatory Memorandum to COM(2024)519 - - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)519 - . |
|---|---|
| source | COM(2024)519 |
| date | 11-11-2024 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
Autonomous tariff quotas of the Union are needed for products whose production in the Union is insufficient to meet the needs of the user industry in the Union for a given quota period. Union tariff quotas should be opened at zero or reduced duty rates for appropriate volumes, without disturbing the markets for such products.
On 20 December 2021, the Council of the European Union adopted Regulation (EU) 2021/22830 opening and providing for the management of autonomous tariff quotas of the Union for certain agricultural and industrial products so that Union demand for the products in question could be met under the most favourable conditions.
The Regulation is updated every six months to accommodate the needs of Union industry.
The Commission, assisted by the Economic Tariff Questions Group (“ETQG”), has reviewed all requests from the Member States for autonomous tariff quotas duties.
Following this review, the Commission considers that the opening of autonomous tariff quotas is justified for five products, currently not listed in the Annex to Council Regulation (EU) 2021/2283. In relation to 26 other products, it has become necessary to either change the wording of the description, assign a new CN/TARIC code, increase, or decrease of the initial quota volume, adapt the quota period, and/or insert an end-use requirement. Three products for which a tariff quota is no longer in the Union's economic interest should be withdrawn.
For reasons of clarity, it is advisable to publish a consolidated version of the Annex to Council Regulation (EU) 2021/2283, which will fully replace the previous Annex.
• Consistency with existing policy provisions in the policy area
This proposal does not affect countries that have a preferential trading agreement with the Union nor candidate countries or potential candidates for preferential agreements with the Union (e.g. Generalised System of Preferences; the African, Caribbean and Pacific group trade regime; Free Trade Agreements).
• Consistency with other Union policies
The proposal is in line with Union policies on agriculture, trade, enterprise, development, environment, and external relations.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis of this proposal is Article 31 of the Treaty on the Functioning of the European Union (TFEU).
• Subsidiarity (for non-exclusive competence)
The proposal falls under the Union's exclusive competence. The subsidiarity principle therefore does not apply.
• Proportionality
The proposal complies with the principle of proportionality. The measures envisaged are in line with the principles for simplifying procedures for operators engaged in foreign trade, as stated in the Commission communication concerning autonomous tariff suspensions and quotas0. This Regulation does not go beyond what is necessary to achieve the objectives pursued in accordance with Article 5 i of the Treaty on European Union (TEU).
• Choice of the instrument
By virtue of Article 31 of the TFEU, 'Common Customs Tariff duties shall be fixed by the Council on a proposal from the Commission'. Therefore, a Council regulation is the appropriate instrument.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
The autonomous tariff quotas scheme was part of an evaluation study carried out in 2013 on autonomous tariff suspensions0.
Autonomous tariff quotas and suspensions are similar, except that autonomous tariff quotas limit the import volumes that benefit from the reduced duty rates, while autonomous tariff suspensions permit the total or partial waiver of the normal duties applicable to certain goods imported to the EU for an unlimited quantity. The evaluation concluded that the core rationale for the scheme remains valid. The cost savings for Union businesses importing goods under the scheme can be significant. In turn, depending on the product, company and sector, these savings can have wider benefits, such as boosting competitiveness, making production methods more efficient, and creating or keeping jobs in the Union. Details of the savings of this regulation can be found in point 4 and in the attached legislative financial statement.
• Stakeholder consultations
The Economic Tariff Questions Group, which consists of delegations from all the EU Member States and Türkiye, assisted the Commission in the preparation of this proposal.
The ETQG carefully assessed each request (new, or for an amendment). It particularly examined each case to ensure that it was not causing any harm to Union producers and was strengthening and consolidating the competitiveness of Union's production. The members of the ETQG carried out the assessment through discussions, and Member States consulted the concerned industries, associations, chambers of commerce and other stakeholders involved.
All listed tariff quotas were the subject of agreements or compromises reached in the discussions held at the ETQG and with the other Commission services. No potentially serious risks with irreversible consequences were identified.
• Impact assessment
The proposed amendment is of a purely technical nature and concerns only the coverage of tariff quotas listed in the Annex to Regulation (EU) No 2021/2283. An impact assessment was not carried out because the proposed changes in the list of products that would benefit from the autonomous Common Customs Tariff quotas are not expected to have significant impacts.
• Fundamental rights
The proposal has no consequences on fundamental rights.
4. BUDGETARY IMPLICATIONS
This proposal has no financial impact on expenditure but has a financial impact on revenue. The uncollected customs duties corresponding to the autonomous tariff quotas amount approximately EUR 15 million per year. The negative effect on the budget’s traditional own resources is EUR 11,3 million per year (i.e. 75 % of the total). The legislative financial statement sets out the budgetary implications of the proposal in greater detail.
The loss of revenue in traditional own resources shall be compensated by Member States Gross National Income (GNI) based own resource contributions.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
The proposed measures are managed within the framework of the Integrated Tariff of the European Union “TARIC” (they are integrated in TARIC and managed by the QUOTA database) and applied by the Member States’ customs administrations.