Introductory text

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal^f1, as last amended by Commission Regulation (EC) No 2345/2001^f2, and in particular Article 32(1) thereof,

Whereas:

The WTO schedule CXL requires the Community to open an annual import quota of 53 000 tonnes of frozen beef covered by CN code 0202 and products covered by CN code 0206 29 91. Implementing rules should be laid down for the quota year 2003/2004 starting on 1 July 2003.

The 2002/2003 quota was managed in conformity with the provisions of Regulation (EC) No 954/2002 opening and providing for the administration of a tariff quota for frozen meat of bovine animals covered by CN code 0202 and products covered by CN code 0206 29 91 (1 July 2002 to 30 June 2003)^f3. These provisions laid down, in particular, stricter criteria for participation so as to avoid registration of fictitious operators. Moreover, reinforced rules on the use of the import licences concerned provided an obstacle towards speculative trade in licences.

The experience obtained from the application of those rules has been positive and similar rules should therefore be laid down for the quota year 2003/2004, including a division of the quota into a subquota I, reserved for the traditional importers, and a subquota II to be allocated on application by operators approved by Member States through an approval procedure.

With the view of providing at the same time stability in the trade with frozen beef while ensuring a gradual increase in the share of the quota open to all genuine beef traders it is appropriate to increase the quantity being attributed under subquota II.

Subquota I should be allocated initially in form of import rights to active importers on the basis of relevant customs documents providing proof that they have imported beef under the same type of quota during the last three quota years. In certain cases administrative errors by the competent national body are liable to restrict traders' access to this part of the quota. Steps should be taken to make good any resulting damage.

Operators who can show that they are genuinely involved in importing or exporting beef from or to third countries should be able to apply for approval under subquota II. Proof of that involvement calls for evidence to be presented of recent import of some significance.

Where there are obvious reasons to suspect that fictitious operators have applied for registration, Member States should proceed to a more detailed examination of the applications.

Penalties should be determined where fictitious operators have applied for registration or the approval was granted on the basis of forged or fraudulent documentation.

If criteria for participation in the quota allocation are to be checked, applications must be submitted in the Member States where the operator is entered in the national VAT register.

With a view to providing a permanent access to the quota, subquota II should be managed on a half-yearly basis with a simultaneous examination of the licence applications from approved importers.

In order to prevent speculation, importers no longer involved in trade in beef should be denied access to the quota and a security relating to import rights should be fixed for each applicant under subquota I. The licence security should be set at a relative high level and the possibility of transferring import licences should be excluded.

In order to provide for more equal access to subquota II for all approved operators, each applicant may apply for a maximum quantity to be fixed.

To oblige operators to apply for import licences for all the import rights allocated, it should be established that such obligation constitutes a primary requirement within the meaning of Commission Regulation (EEC) No 2220/85 of 22 July 1985 laying down common detailed rules for the application of the system of securities for agriculture products^f4, as last amended by Regulation (EC) No 1932/1999^f5.

A proper management of the import quota requires that the titular licence holder is a genuine importer. Therefore, such importer should actively participate in the purchase, transport and import of the beef concerned. Presentation of proofs of those activities should therefore also be a primary requirement with regard to the licence security.

The cost related to purchase and transport of small consignments from a third country supplier might be excessively high and discourage the use of the licence. It is therefore appropriate to allow import of a small quantity from customs bonded warehouses and provide the consequent derogations as to the release of security.

Commission Regulation (EC) No 1291/2000 of 9 June 2000 laying down common detailed rules for the application of the system of import and export licences and advance-fixing certificates for agricultural products^f6, as last amended by Regulation (EC) No 325/2003^f7 and Commission Regulation (EC) No 1445/95 of 26 June 1995 on rules of application for import and export licences in the beef and veal sector and repealing Regulation (EEC) No 2377/80^f8, as last amended by Regulation (EC) No 118/2003^f9, are applicable to import licences issued under this Regulation.

The Management Committee for Beef and Veal has not given an opinion within the time limit set by its President,

HAS ADOPTED THIS REGULATION: