Screening Serbia

Trade Mechanisms

+ Agri monetary issues

DG Agriculture and Rural Development

European Commission

Import and Export Licences

for Agricultural Products

A Management Tool forA Management Tool for

The Agricultural Markets

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Agricultural licences

• CMO – discretion of power granted to the Commission by the legislator to make imports / exports subject to presentation of an import / export licence – Article 177 of CMO Regulation (EU) No 1308/2013

• a few cases where an import / export licence obligation fixed by the legislator (import of preferential sugar, exports with export refunds) legislator (import of preferential sugar, exports with export refunds)

• horizontal implementing Regulations (EC) No 376/2008 (general) + 1301/2006 (TRQ’s)

• sectoral specific implementing regulations concerning specific market sectors

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Agricultural licences

Functions of the licences:

� Management tool for the agricultural markets

� data for forward analysis of imports /exports

� management of tariff quotas for imports

� management of GATT commitments for exports

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Licences Regulation (EC) No 376/2008

� Import/export licences:

• authorisation and obligation

� to import / export under the licence

� specified quantity � specified quantity

� products concerned

� during period of validity

• export licence with advance fixing of the refunds

� additional function: confer entitlement to the export refund

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Licences Regulation (EC) No 376/2008

� Not applicable for

� other customs procedures

� small quantities

� customs duties exemptions (travellers baggage etc.)� customs duties exemptions (travellers baggage etc.)

� import/export of non-commercial nature

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Licences Regulation (EC) No 376/2008

Application for licences

• Submission of application to the issuing body (= authority designated by the Member State) – in any MS, irrespective of the applicant's place of establishment in the EU

• Application Art. 12

� Paper or by electronic means

• Lodging of a security, exemption < € 100 Art. 14

� Aim: ensure the commitment taken by the operator and the reliability of the monitoring and management system

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Licences Regulation (EC) No 376/2008

Issue of licences

� Fast: day of application = start of validity (Art. 22)

� Reflection period of some days before issuing

� Format: paper or electronic� Format: paper or electronic

� Period of validity: sector related – generally shorter for imports, longer for exports (Art. 7(8) + Annex II)

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Licences Regulation (EC) No 376/2008

� Use of licences

• Import / export licences valid throughout the EU

• Submitted to customs office together with • Submitted to customs office together with

� import declaration

� export declaration

• Option for MS to keep an information system by which licences are held by the issuing body or the paying agency - Art. 24

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Licences Regulation (EC) No 376/2008

• The licence can be split up into extracts

� Same legal effects as the original licences, limited to the quantity on the extract

� Flexibility in the use: spreading in time or location

� Reduces the risks of loss

• A licence can be transferred ONCE - Art. 8• A licence can be transferred ONCE - Art. 8

• Transfer covers only the rights deriving from the licence but not the obligations:

� Security remains the responsibility of the original titular holder

� Return transfer to the original titular holder is possible

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Licences Regulation (EC) No 376/2008

Release of the licence security

� Proof of the use of the licence must be produced,

• Import or Export:

� visa and endorsement of the licence by the competent authority (customs)

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Securities

� Principle fixed in Art. 177, 178 Reg. (EU) No 1308/2013 CMO,

� and in Art. 66 Reg. (EU) No 1306/2013

�

� Commission Regulation (EU) No 282/2012

� Mid 2014 to be replaced by DA and IA� Mid 2014 to be replaced by DA and IA

� Objectives

• equal competitive conditions for traders. (form of securities, rules for the release and forfeiture)

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Commission Regulation (EU) No 282/2012

� Principal mechanisms:

• description of the types of securities

• in the case where a security has to be forfeited. Proportionality: is the • in the case where a security has to be forfeited. Proportionality: is the basic obligation breached, or is the time for proving the obligation exceeded?

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Tariff rate quotas (imports)

• TRQ. Art. 184 CMO Regulation (EU) No 1308/2013:

• “first come/first served”

Customs procedure. TRQ is applied for when lodging import declaration. COM attributes quantity subject to available balance. Obligation to import total quantity for which import declaration is lodged.total quantity for which import declaration is lodged.

• “simultaneous examination”

COM Regulations (EC) No 1301/2006 + 376/2008 licence. If quantity applied for exceeds availability, COM establishes allocation coefficient. Before import is intended to take place. Obligation to import allocated quantities.

“traditional / newcomers method”

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Tariff rate quotas (imports)

Regulation (EC) No 1301/2006:

Procedures for :

• Opening quota

• Applying for a TRQ• Applying for a TRQ

• Eligible applicant (first time/regular = basis in Art. 184 CMO)

• Penalties

• Attribution

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Export refunds Art. 196-204, and 291-221 Reg. (EU) No 1308/2013 CMO

Art. 13, 14 Reg. (EU) No 1370/2013

• compensate the difference between world market quotations and prices in the EU

• fixed by examination committee procedure• fixed by examination committee procedure

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Export refunds: Regulatory aspects

� Commission Regulation (EC) No 612/2009

• Common detailed rules on the application

• Principle: export refunds to be fixed in advance in an export license

• Rules complementary to Customs Code• Rules complementary to Customs Code

• Rules on application and payment procedures

• Rules on checks

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Regulation (EC) No 612/2009principal mechanisms:

Products must be

• In Union’s free circulation

• Of Union origin

• Of sound & fair marketable quality• Of sound & fair marketable quality

Advance payment possible, but 10% security must be lodged

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Regulation (EC) No 612/2009principal mechanisms

� Differentiated refund: when refund differs per destination. Proof required:

• Products must have left Union within 60 days and

• Proof of import in unaltered state in third country for which refund • Proof of import in unaltered state in third country for which refund applies. Within 12 months following export.

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Regulation (EC) No 612/2009principal mechanisms

� Harsh penalties for non-compliance

• when exporter has requested refund in excess of that applicable :

� 50% of difference applicable – requested refund

� 200% when the exporter intentionally provides for false information� 200% when the exporter intentionally provides for false information

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Physical checks

a compulsory cooperation of customs, paying agency, scrutiny service

Mandatory for export refundsMandatory for export refunds

out-of quota sugar exports

certain intra-EU measures

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Monitoring system

5 % physical checks

10% seal checks at departure

10% seal integrity checks when lorry arrives at customs office of exit

8% substitution checks

Risk-based

scrutiny of the application files by paying agencyscrutiny of the application files by paying agency

ex-post audits in the undertakings Reg. (EC) No 485/2008

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Agri-monetary

Regulation (EU) No 1306/2013:

o Article 105 - Prices and amounts relating to CAP expressed in euro.

o Article 106(1) - In the MS not participating in eurozone prices and o Article 106(1) - In the MS not participating in eurozone prices and amounts converted into a national currency by means of an exchange rate;

o Article 106(2) - Operative event for exchange rate is import, export, or attainment of economic objective.

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Agri-monetary

Commission Regulation (EC) No 1913/2006:

Defines in detail the operative events by measure, like trade with 3rd countries; Direct payments; Milk; School fruit; RD programmes; Payment of countries; Direct payments; Milk; School fruit; RD programmes; Payment of advances; Securities; ……..

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Agri-monetary

Commission Regulation (EC) No 1913/2006:

Art. 11 Exchange rate = the most recent rate set by the ECB prior to

the first day of the month in which the operative event occurs

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Common Customs tariff andNomenclature

� Common customs tariff

• Harmonised system

• Combined nomenclature (Regulation (EEC) No 2658/87)

� Specific Regulations concerning agricultural products� Specific Regulations concerning agricultural products

• Commission Regulation (EEC) No 3846/87

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CMO Regulation (EU) No 1308/2013

� Procedure for adjusting the Common Customs Tariff nomenclaturefor agricultural products – Article 4

• delegation of competence from the legislator to Commission

• description of products and references to headings and subheadings in • description of products and references to headings and subheadings in may be adjusted by the Commission to the combined nomenclature

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Export refund NomenclatureRegulation (EEC) No 3846/87

� Introduction of a agricultural product nomenclature for export refunds

• based on the combined nomenclature

• includes additional subdivisions (description)

• includes specific code numbers• includes specific code numbers

• must be used on the documents e.g. for export refund purposes

ERN 2014 – Regulation (EU) No 1422/2013

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Thank you for your attention.

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Unit C.1 – General aspects of agricultural marketsEuropean CommissionDG Agriculture and Rural Development