Explanatory Memorandum to COM(2018)199 - Nominal quantities for placing on the Union market of single distilled shochu produced by pot still and bottled in Japan

Please note

This page contains a limited version of this dossier in the EU Monitor.



1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

On 29 November 2012, the Council authorised the Commission to enter into negotiations for a Free Trade Agreement (FTA) with Japan.

On the basis of the negotiating directives adopted by the Council in 2012 1 the Commission has negotiated with Japan an ambitious and comprehensive Economic Partnership Agreement (EPA) with a view to creating new opportunities and legal certainty for trade and investment between both partners to develop. The agreed texts after the end of the negotiations have been made public and can be found on the following link:

trade.ec.europa.eu/doclib/press/index.cfm?id=1684


This proposal is made in parallel with the following proposals:

- Proposal for a Council Decision on the signing, on behalf of the European Union, of the Economic Partnership Agreement between the European Union and Japan;

- Proposal for a Council Decision on the conclusion of the Economic Partnership Agreement between the European Union and Japan;

- Proposal for a safeguard regulation that will cover safeguards foreseen in the EU-Japan EPA.

This Commission proposal aims at implementing provisions of the EU-Japan EPA as regards the export from Japan into the Union of single distilled shochu, a spirit drink produced by pot still and bottled in Japan, which is to be exported into the Union in traditional bottles of four go(合)or one sho(升) 2 .

Consistency with existing policy provisions in the policy area

The EU-Japan EPA is fully consistent with Union policies and will not require the EU to amend its rules, regulations or standards in any regulated area (e.g. technical rules and product standards, sanitary or phytosanitary rules, regulations on food and safety, health and safety standards, rules on GMO’s, environmental protection, consumer protection, etc.) with the exception of the need for the introduction of a derogation to facilitate Japanese exports of single distilled shochu, a spirit drink produced by pot still and bottled in Japan, which Japan exports in traditional bottles of four go(合) or one sho(升).

This Commission proposal aims at introducing a derogation from Union rules concerning bottle sizes, for single distilled shochu, a spirit drink produced by pot still and bottled in Japan that is traditionally sold in bottles of sizes of four go(合)or one sho(升) that correspond to nominal quantities of 720 ml (one go corresponds to 180 ml) and 1800 ml, respectively, and that are currently not among the nominal quantities permitted in the Union under Directive 2007/45/EC laying down rules on nominal quantities of prepacked products.

Consistency with other Union policies

The EU-Japan EPA is fully consistent with Union policies and will not require the EU to amend its rules, regulations or standards in any regulated area (e.g. technical rules and product standards, sanitary or phytosanitary rules, regulations on food and safety, health and safety standards, rules on GMO’s, environmental protection, consumer protection, etc.).

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

Article 114(1) of the Treaty on the Functioning of the European Union, as this proposal is an amendment to Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89 (OJ L39, 13.2.2008, p.16).

Subsidiarity (for non-exclusive competence)

In accordance with Article 3 of the TFEU, the common commercial policy, under which EU-Japan EPA is to be signed, is an exclusive Union competence.

This proposal implements a provision of the EU-Japan EPA, consisting of derogation for single distilled shochu from the current Union rules on nominal quantities of spirit drinks that can be placed on the market (Directive 2007/45/EC). Such derogation can only be introduced by Union legislation.

Proportionality

The EU-Japan EPA is in line with the vision of the Europe 2020 strategy and contributes to the EU’s trade and development objectives. This proposal aims at implementing a provision of the EU-Japan EPA in the Union legal order.

Choice of the instrument

The derogation that is proposed to implement the EU-Japan EPA can only be introduced by means of a Regulation as it needs to apply in all Member States simultaneously upon entry into force of the EU-Japan EPA.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Stakeholder consultations

Collection and use of expertise

Impact assessment

Stakeholder consultations and evaluations were done as a part of the process leading to the conclusion of the EU-Japan EPA. The details about those consultations and evaluations are provided in the Commission proposal for a Council Decision on the signing on behalf of the European Union, of the Economic Partnership Agreement between the European Union and Japan.

A Trade Sustainability Impact Assessment of the EPA between the EU and Japan was carried out by the external contractor “London School of Economics Enterprises”. The details of it are provided in Commission proposal for a Council Decision on the signing on behalf of the European Union, of the Economic Partnership Agreement between the European Union and Japan.

The EU-Japan EPA is not subject to REFIT procedures. This proposal is also not subject to REFIT procedures.

Fundamental rights

The proposal does not affect the protection of fundamental rights in the Union.

4. BUDGETARY IMPLICATIONS

This proposal will have no budgetary implications for the Union.

The EU-Japan EPA will have a financial impact on the EU budget on the side of the revenues. It is estimated that foregone duties could reach an amount of €1.6 billion upon full implementation of the agreement.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

No specific implementation plans and reporting arrangements are foreseen for this proposal.

Explanatory documents (for directives)

Not relevant.

Detailed explanation of the specific provisions of the proposal

The proposal introduces a specific derogation from the nominal quantities for spirit drinks set out in Article 3 and Section 1 of the Annex to Directive 2007/45/EC for single distilled shochu, a spirit drink produced by pot still and bottled in Japan, so that it can be placed on the market in the Union in traditional bottle sizes of four go(合) and one sho(升), corresponding to nominal quantities of 720 ml and 1 800 ml, respectively, provided that it meets other Union requirements for such spirit drinks.