Explanatory Memorandum to COM(2023)125 - Amendment of Regulation (EU) 2020/2170 as regards the application of Union tariff rate quotas and other import quotas to certain products transferred to Northern Ireland - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)125 - Amendment of Regulation (EU) 2020/2170 as regards the application of Union tariff rate quotas and other import quotas to ... |
|---|---|
| source | COM(2023)125  |
| date | 27-02-2023 |
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 on 1 February 2020. The Protocol on Ireland/Northern Ireland attached to the Withdrawal Agreement (‘the Protocol’) applies from the end of the transition period, i.e. as of 1 January 2021.
In accordance with the Protocol, legislation as defined in point (2) of Article 5 of Regulation (EU) No 952/2013 applies to and in the United Kingdom in respect of Northern Ireland.
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 the management of Union 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.
On the basis of the above considerations, on 16 December 2020, the European Parliament and the Council adopted Regulation (EU) 2020/2170 on the application of Union tariff rate quotas and other import quotas 1 . Article 1 of that Regulation provides in substance that goods imported from outside the Union are eligible for treatment pursuant to Union import tariff rate quotas or other import quotas only if they are released for free circulation in the Union’ customs territory.
However, as indicated above, whilst the bilateral arrangements between the Union and the United Kingdom under the Protocol do not give rise to rights and obligations for any other third countries, they do give rise to specific rights and obligations for the United Kingdom. This creates a unique situation in respect of the United Kingdom, which is different in substance from the situation of other countries when exporting to the EU. The current drafting of Regulation 2020/2170, however, does not make it possible for United Kingdom originating goods to make use of the relating EU tariff rate quotas when transferred from Great Britain to Northern Ireland.
The United Kingdom has shown the need that certain steel products, namely Non Alloy and Other Alloy Quarto Plates 2 and Angles, Shapes and Sections of Iron or Non Alloy Steel 3 (currently falling under categories 7 and 17 respectively in the EU steel safeguard measures) originating in the United Kingdom and currently subject to safeguard measures under Commission implementing Regulation (EU) 2019/159 be released into free circulation in Northern Ireland. The United Kingdom has provided evidence that a substantial transfer of these steel products has taken place between other parts of the United Kingdom and Northern Ireland, and has expressed the wish that it be allowed to use the EU tariff rate quotas applicable to these steel goods originating in the United Kingdom currently subject to safeguard measures, when such goods are released for free circulation in Northern Ireland. In order to limit the risk of circumvention, these products should be consigned directly from other parts of the United Kingdom.
Since the need for importation under tariff rate quotas of steel of UK origin subject to safeguard measures into Northern Ireland may also vary over time, an appropriate mechanism should be put in place to allow for the rapid adjustment of the list of such steel products. The Commission should be authorised to proceed to such adjustments, under certain conditions, by way of delegated acts, on the basis of the procedures currently in place.
It is therefore appropriate to amend Regulation 2020/2170 so as to allow that certain steel products (Non Alloy and Other Alloy Quarto Plates, and Angles, Shapes and Sections of Iron or Non Alloy Steel) originating in the United Kingdom and currently subject to EU safeguard measures be eligible for treatment pursuant to Union import tariff rate quotas also if they are released for free circulation in Northern Ireland.
By virtue of Article 5(3) and i of the Protocol in conjunction with Article 13(3) thereof, this Regulation would also apply 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 need to ensure the proper 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 of this Regulation amends Article 1 of Regulation 2020/2170 so as to allow that the Union’s tariff rate quotas be available for certain steel products (Non Alloy and Other Alloy Quarto Plates, and Angles, Shapes and Sections of Iron or Non Alloy Steel, currently falling under categories 7 and 17 respectively in the EU steel safeguard measure) originating in the United Kingdom and subject to safeguard measures under Commission implementing Regulation (EU) 2019/159, when these products are transferred directly from other parts of the United Kingdom to Northern Ireland and released for free circulation in Northern Ireland.
Article 1 also provides for the possibility for the Commission to adjust, by way of delegated acts, the list of steel products subject to safeguards for which Union’s tariff rate quotas will be made available, where appropriate.