Explanatory Memorandum to COM(2018)343 - Amendment of Regulation (EU) No 1387/2013 suspending the autonomous Common Customs Tariff duties on certain agricultural and industrial products - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2018)343 - Amendment of Regulation (EU) No 1387/2013 suspending the autonomous Common Customs Tariff duties on certain agricultural and ... |
|---|---|
| source | COM(2018)343  |
| date | 28-05-2018 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
Certain agricultural and industrial products are not produced in the Union, or produced in insufficient quantities. To ensure sufficient and uninterrupted supplies and to prevent market disturbance for these products, Council Regulation (EU) No 1387/2013 1 partially or totally suspended some autonomous Common Customs Tariff duties.
The Regulation is updated every six months to accommodate the needs of the Union industry. The Commission, assisted by the Economic Tariff Questions Group, has reviewed all requests from the Member States for autonomous tariff suspensions.
Following this review, the Commission considers that a suspension of duties is justified for some new products, currently not listed in the Annex to Council Regulation (EU) No 1387/2013. The conditions governing the description, classification or end-use requirement of some other products should be changed. Products for which a tariff suspension is no longer in the economic interest of the Union should be withdrawn.
• Consistency with existing policy provisions in the policy area
This proposal does not affect countries that have a preferential trading agreement with the Union, 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 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 quotas 2 . 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 Treaty on the Functioning of the European Union (TFEU), 'Common Customs Tariff duties shall be fixed by the Council on a proposal from the Commission'. Therefore, a 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 entire autonomous suspensions scheme was the subject of an evaluation study which was carried out in 2013 3 .
The study 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, those savings can have wider benefits, such as boosting competitiveness, making production methods more efficient, and creating and keeping jobs in the Union. Details of the savings of this regulation can be found in the attached legislative financial statement.
• Stakeholder consultations
The Economic Tariff Questions Group, which brings together delegates from all Member States plus Turkey, assisted the Commission to assess this proposal. The group met three times before agreeing the changes in this proposal.
It carefully assessed each request (new, or for an amendment). It focused especially on the need to prevent any harm to Union producers, and to strengthen and consolidate the competitiveness of Union production. All listed suspensions were the subject of agreements or compromises reached in the discussions held at the Economic Tariff Questions Group. No potentially serious risks with irreversible consequences were mentioned.
• Impact assessment
The proposed amendment is of a purely technical nature and concerns only the coverage of suspensions listed in the Annex to Council Regulation (EU) No 1387/2013. Therefore, no impact assessment was carried out for this proposal.
• 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. Uncollected customs duties total approximately EUR 25 million per year. The effect on budget’s traditional own resources of the budget is EUR 20 million per year (i.e. 80 % 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 measures proposed are managed within the framework of the Integrated Tariff of the European Union (TARIC) and applied by Member States’ customs administrations.