Explanatory Memorandum to COM(2020)375 - Application of Union tariff rate quotas and other import quotas - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2020)375 - Application of Union tariff rate quotas and other import quotas. |
|---|---|
| source | COM(2020)375  |
| date | 14-08-2020 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The United Kingdom of Great Britain and Northern Ireland (United Kingdom) withdrew from the Union as of 1 February 2020. The Protocol on Ireland/Northern Ireland attached to the Withdrawal Agreement (‘the Protocol’) will apply from the end of the transition period, i.e. as of 1 January 2021.
The Protocol states that Northern Ireland is part of the customs territory of the United Kingdom, and that the United Kingdom can include Northern Ireland in the territorial scope of its World Trade Organization schedules. At the same time, the Protocol provides that any reference to the customs territory of the Union in the applicable provisions of the Protocol, as well as in the provisions of Union law made applicable to and in the United Kingdom in respect of Northern Ireland by the Protocol, must be read as including the land territory of Northern Ireland. This means that despite Northern Ireland being formally in the United Kingdom’s customs territory, the United Kingdom, in respect of Northern Ireland, is obliged to apply the Union’s customs legislation as if Northern Ireland were still in the Union’s customs territory.
The bilateral arrangements between the Union and the United Kingdom under the Protocol do not give rise to rights and obligations for third countries.
Consequently, any imports pursuant to Union import tariff rate quotas or other import quotas applying to goods originating in a third country brought into Northern Ireland could not be counted towards that third country’s rights vis-à-vis the Union, unless agreed by the third country. This situation poses a risk to the proper functioning of the Union’s Single Market and the integrity of the Common Commercial Policy through the possible circumvention of the Union’s tariff rate quotas or other import quotas. Furthermore, any agreement with a third country providing for export tariff rate quotas require that the goods be imported within the Union. Therefore, that third country could refuse to issue export licenses for direct imports into Northern Ireland.
To address that risk, the Union’s tariff rate quotas and other import quotas should be available only for goods imported and released into free circulation in the Union and not in Northern Ireland.
By virtue of the Protocol, this Regulation would also applies to and in the United Kingdom in respect of Northern Ireland.
• Consistency with existing policy provisions in the policy area
This initiative is in line with the ongoing actions of the Union to address the consequences of the withdrawal of the United Kingdom from the Union and to prepare for the end of the transition period in an orderly manner, notably to prepare for the implementation of the Withdrawal Agreement and the Protocol on Ireland/Northern Ireland.
• Consistency with other Union policies
The initiative is also consistent with the Union’s common commercial policy.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Article 207(2) of the Treaty on the Functioning of the European Union (TFEU).
• Subsidiarity (for non-exclusive competence)
The common commercial policy is an exclusive competence of the Union. The subsidiarity principle therefore does not apply.
• Proportionality
The envisaged measure is the only way of ensuring the desired result.
• Choice of the instrument
A legislative act, a Regulation of the European Parliament and of the Council, is required, as existing legislation does not provide for an empowerment to the Commission to adopt the proposed measures.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
Not applicable.
• Stakeholder consultations
Not applicable.
• Collection and use of expertise
Not applicable.
• Impact assessment
Not applicable.
• Regulatory fitness and simplification
Not applicable.
• Fundamental rights
The proposal has no impact on fundamental rights.
4. BUDGETARY IMPLICATIONS
Not applicable.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Not applicable.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
Article 1 provides that the Union’s tariff rate quotas and other import quotas should be available only for goods imported from outside of the Union and released into free circulation in the Union. Article 1 lists the relevant customs territories, which make up the Union customs territory. This list does not include Northern Ireland, which has the effect that the Union’s tariff rate quotas and other import quotas would not be available for imports into Northern Ireland. Article 2 provides for the application of the Regulation, which should start the day following the end of transition period, on 1 January 2021.