Workshop on EU import requirements for fruit and vegetables
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1 Workshop on EU import requirements for fruit and vegetables AGR organised by European Commission in co-operation with Ukrainian Ministry of Agrarian Policy and Food Ukrainian Agribusiness club 8-9 th September 2014, Kiev, Ukraine 1
2 TARIFF REGULATION: General description (licensing, entry prices, special protection measures, preferential trade agreements, tariff quota), Tariff rates for exported to EU under the conditions of free trade area Gabriela ENE - ROMANIA 2
3 TARIFF REGULATION GENERAL DESCRIPTION The Common Customs Tariff Tariff quotas The origin of the goods Special Protection Measures Licensing Entry prices Preferential Trade Agreements TARIFF RATES FOR EXPORTED TO EU UNDER THE CONDITIONS OF FREE TRADE AREA 3
4 GENERAL DESCRIPTIONS The Common Customs Tariff The Common Customs Tariff is applied to the import of goods across the external borders of the EU. The tariff is common to all EU Member States, but the rates of duty differ from one kind of import to another, depending on what they are and where they come from. The rates depend on the economic sensitivity of products. 4
5 The Common Customs Tariff The tariff is the name given to the combination of the nomenclature (or classification of goods) and the duty rates which apply to each class of goods. In addition, the tariff contains all other EU legislation that has an effect on the level of customs duty payable on a particular import, for example country of origin. The tariff is a concept, a collection of laws as opposed to a single codified law in itself. There is however a kind of working tariff, called TARIC, which is not actually a piece of legislation. Through the tariff, the EU applies the principle that domestic producers should be able to compete fairly and equally on the internal market with manufacturers exporting from other countries. 5
6 The Common Customs Tariff The Union's basic customs legislation is contained in: Regulation (EEC) No. 2913/92 establishing the Community Customs Code and Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code. 6
7 THE INTEGRATTED TARIFF OF THE EUROPEAN UNION - TARIC LEGAL BASIS Art. 1-5 of Regulation (CEE) No. 2658/1987 on the tariff and statistical nomenclature and on the Common Customs Tariff Art. 20 of Regulation (CEE) No. 2913/1992 establishing the Community Customs Code 7
8 WHAT DOES THE TARIC MEAN? The largest collection of customs regulations applicable, presented in the form of codes and parameters The most important tool that helps to complete the customs declaration and provides automatic control of data 8
9 IMPORTANCE OF TARIC a multilingual database in which are integrated all measures relating to EU customs tariff, commercial and agricultural legislation reduce considerable the human errors helps to collect EU-wide statistics for all the measures facilitate the risk analysis ensure the quality of data collected by the customs authority allow the data identification from customs declarations in all Member States, surpassing language barriers uniform application by all Member States 9
10 The Customs Tariff of the European Union shall comprise: the combined nomenclature of goods; any other nomenclature which is wholly or partly based on the combined nomenclature; the customs duties; the preferential tariff measures contained in agreements which the European Union has concluded with certain countries or groups of countries and which provide for the granting of preferential tariff treatment; preferential tariff measures adopted unilaterally by the Community in respect of certain countries, groups of countries or territories; autonomous suspensive measures providing for a reduction in or relief from import duties chargeable on certain goods; other tariff measures provided for by other Community legislation. 10
11 Other TARIC measures: Agricultural measures Special protection measures Prohibition and restrictions to import and export Surveillance of movements of goods at import and export The EU codes to be used in Box 44 of the Single Administrative Document (SAD) (certificates and authorisations) The list of country codes used in the different boxes of the SAD 11
12 TARIC Tariff measures Third country duty Tariff preferences Autonomous suspensions of duties Tariff quotas Customs Unions duties At national level, we added: V.A.T (Value Added Tax) Excises 12
13 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates THIRD COUNTRY DUTY RATES Conventional duty Autonomous duty Third country duty rate PREFERENTIAL DUTY RATES Preferential agreements Tariff Concessions -GSP 13
14 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates The rules concerning duties : The Commission shall adopt each year, a regulation reproducing the complete version of the Combined Nomenclature, together with the rates of duty. In 2014 has adopted Regulation (EU) No 1001/2013 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff. 14
15 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates The customs duties applicable to imported goods originating in countries which are Contracting Parties to the General Agreement on Tariffs and Trade or with which the European Union has concluded agreements containing the mostfavoured-nation (MFN) tariff clause shall be the conventional duties shown in column 3 of the schedule of duties. Unless the context requires otherwise, these conventional duties are applicable to goods, other than those referred to above, imported from any third country. 15
16 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates The conventional rates of duty reproduced in column 3 of Part II - Schedule of customs duties - are applicable from 1 January 2014 When autonomous rates of duty are lower than the conventional rates of duty, the autonomous duties, shown by means of a footnote, are applicable. 16
17 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates These rules concerning duties (above mentioned) shall not : apply where special autonomous customs duties are provided for in respect of goods originating in certain countries or where preferential customs duties are applicable in pursuance of agreements preclude the Member States from applying customs duties other than those of the Common Customs Tariff where the application of such other duties is justified by the law of the European Union 17
18 TARIC Tariff measures Third Country Duty Rates and Preferential Duty Rates The duties expressed as percentage rates are ad valorem duties. 18
19 TARIC Tariff measures PREFERENTIAL DUTY RATES - Preferential Agreements The EC has concluded a large number for preferential agreements with partner countries. Imports into the EU territory of products originating in these countries can benefit from tariff reductions calculated based on the MFN duty. The application of these reduced duties is submitted to the presentation of a proof of origin (e.g. EUR 1 certificate or invoice declaration). 19
20 TARIC Tariff measures PREFERENTIAL DUTY RATES - Tariff concessions GSP In the framework of the General System for Preferences (GSP), the EC has reduced the import duty rates of products originating in developing countries In the case of preferences The application of these reduced duties is submitted to the presentation of a certificate, the Form A, or an invoice declaration. 20
21 TARIC Tariff measures Quotas, Suspensions Quotas Autonomous tariff quotas WTO tariff quotas Autonomous and WTO tariff quotas License based autonomous or WTO tariff quotas managed by DG Agriculture Preferential tariff quotas Suspensions The EC can suspend the autonomous common customs tariff for certain products. The base regulation of the autonomous suspensions is the regulation 1344/2011 which has been modified several times (two times a year) in order to add or withdraw products from its annex. 21
22 TARIC Tariff measures QUOTAS - Autonomous tariff quotas and - WTO tariff quotas Autonomous tariff quotas permit the total and partial waiver of the normal duties applicable to imported goods for a limited quantity, normally for an unlimited period of validity. Like the autonomous suspensions, they are exceptions to the general rule represented by the Common Customs Tariff. Most tariff quotas are managed (by DG Taxation and Customs Union) on a first-come first-served basis. The legal provisions governing the management of these tariff quotas are contained in Articles 308a to 308c of Regulation (EEC) No 2454/93 laying down provisions for the implementation of the Community Customs Code. Some tariff quotas are not autonomous, but bound in GATT. Their management and insertion in TARIC follow the same way like for autonomous tariff quotas. 22
23 TARIC Tariff measures QUOTAS - Preferential Tariff Quotas In the framework of several agreements that EU has concluded with third countries, as well as in the framework of autonomous preferential arrangements for some beneficiary countries, tariff concessions are provided for a predetermined volume of goods and these are called preferential tariff quotas. Within these preferential tariff quotas, a predetermined volume of goods originating in a specified country can benefit at import into the Community from a more favourable rate of duty than the normal third country duty mentioned in Combined Nomenclature. 23
24 TARIC Tariff measures Tariff Quotas managed by Commission (DG TAXUD) Legal basis: Art. 308 of Regulation no. 2454/1993 Is managed on a first-come, first-served basis The application for quota is made through the customs declaration, submitted in the IT system of Member State (CDPS) The benefit of quota is granted as well electronic by European Commission, via Quota system, developed at EU and also at national level 24
25 TARIC Tariff measures Tariff Quotas managed by Commission (DG TAXUD) APPLICATION FOR QUOTA: the declarant can consult the Quota system, available on the website of the European Commission, to ensure that the requested quota is available the declarant must complete the box 39 (quota) of SAD; a quota requirement is automatically generated when the customs declaration form is validated in CDPS, is considered that the quota request is official and legal received and accepted by the customs authority of each Member State 25
26 TARIC Tariff measures Tariff Quotas managed by Commission (DG TAXUD) THE TRANSMISSION OF QUOTA REQUEST: the customs authority of MS must sent electronically the quota requests to DG TAXUD, the second day, via QUOTA system THE ANSWER OF DG TAXUD: is sent also via QUOTA system to the customs authority of MS and may consist of: total granting partial granting (if the balance of quota is low and don t cover all the requests submitted in all MS in the same day) rejection (if the quota is exhausted) 26
27 TARIC Tariff measures THE ORIGIN OF GOODS NON-PREFERENTIAL ORIGIN ART of REGULATION NO. 2913/1992 PREFERENTIAL ORIGIN ART of REGULATION NO. 2454/1993 CRITERIA: Goods wholly obtained in a country Substantial transformation 27
28 TARIC Tariff measures THE ORIGIN OF THE GOODS Non-preferential origin THE IMPORTANCE: to benefit by non-preferential tariff quotas to apply commercial policy measures to respect restrictive measures and commercial embargoes foreign trade statistics The certificate by non-preferential origin: - CO agricultural products (Annex 13 to RVC) - CO universal (Art. 47 RVC) It s mandatory for import (box 34 by SAD) 28
29 TARIC Tariff measures THE ORIGIN OF THE GOODS Preferential origin CRITERIA FOR GRANTING: BILATERAL - free trade agreements signed with countries or groups of countries Proof of origin: EUR1, EUR2, EUR-MED, invoice declaration of origin (each agreement provides for the type of evidence required) UNILATERAL adopted by the EU and unilaterally granted to GSP countries Proof of origin: Certificate Tip A 29
30 TARIC Tariff measures THE ORIGIN OF THE GOODS Preferential origin GRANTING DUTY EXEMPTIONS OR REDUCTIONS ALLOCATION PREFERENTIAL TARIFF QUOTAS 30
31 TARIC CONSULTATION aric/taric_consultation.jsp? 31
32 Prohibition and restrictions to import and export Art. 1 point 7 of Regulation (EEC) No 2454/93: Commercial policy measures means: non-tariff measures established, as part of the common commercial policy, in the form of Community provisions governing the import and export of goods, such as surveillance or safeguard measures, quantitative restrictions or limits and import or export prohibitions 32
33 Prohibition and restrictions to import and export Art Regulation (CEE) No. 2913/1992: Save as otherwise provided, goods may at any time, under the conditions laid down, be assigned any customs approved treatment or use irrespective of their nature or quantity, or their country of origin, consignment or destination. This condition shall not preclude the imposition of prohibitions or restrictions justified on grounds of public morality, public policy or public security, the protection of health and life of humans, animals or plants, the protection of national treasures possessing artistic, historic or archaeological value or the protection of industrial and commercial property. 33
34 Prohibition and restrictions to import and export Trade policy measures are established by legislation at EU and national level and they are applied to the import and export of certain goods. Trade policy includes quantitative restrictions and prohibitions on foreign policy trade (embargoes and sanctions). Some of them cover all aspects of commercial relations, others aim only to specific products or groups of products. 34
35 Prohibition and restrictions to import and export Commercial policy measures aimed at: Protection of animal health, animal welfare, prevent the transmission of diseases from animals to humans, food safety and animal and non-animal origin intended for human consumption, animal feed sanitation and environmental protection. Therefore the import / export are performed upon presentation of documents or fulfill special formalities Protection against the introduction and spread of organisms harmful to plants or plant products, for which purpose the vegetables and vegetable products must be accompanied by import and export of a phytosanitary certificate 35
36 Prohibition and restrictions to import and export enforcement of environmental protection measures; competent environmental authorities lead the regulatory procedure shall, where applicable, environmental permits, agreements and authorizations in the law, presented the submission to the customs authority of the customs declaration of import or export restricting or prohibiting the use of dangerous chemical substances and preparations; In this sense, the import / export is done in accordance with international agreements and conventions, under a specific document issued by the competent authorities realization of the state policy on quality control of medicines and other products for human use (eg. Medical devices); the import / export of drugs and medical devices is based on a permit issued by the health authorities; regulate marketing, marketing and free distribution Worn clothing and worn textile articles or worn; to protect life and health, to import into the country of these types of products only if they prove that they have undergone the cleansing, disinfection and pest. 36
37 TARIC Tariff measures CUSTOMS UNION (Turkey, San Marino and Andorra) Regional Trade Agreements composed of a free trade area with a common external tariff The countries set up common external trade policy Purpose: to increase the economic efficiency and establish closer political and cultural ties between the member countries 37
38 TARIC Agricultural measures Agricultural components Additional duties on sugar, on sugar content and on flour content Representative prices for poultry Standard Import Values, Entry Prices for fruits and vegetables Refunds for export of basic and processed agricultural products 38
39 TARIC IMPORT LICENCING non-tariff barrier to trade for protection a domestic industry from foreign competition types of licenses: general license that permits unrestricted importation or exportation of goods included in the lists for a certain period of time license for a certain product importer (exporter) to import (or export) The license indicates: a quantity of goods the price of the goods the country of origin (or destination) in some cases, also customs points through which import (or export) of goods should be carried out 39
40 TARIC IMPORT LICENCING The use of licensing systems: an instrument for foreign trade regulation, based on a number of international agreements all the agreements include some provisions of the General Agreement on Tariffs and Trade (GATT) and the Agreement on Import Licensing Procedures, concluded under the GATT (GATT) Licensing of foreign trade is closely related to quantitative restrictions quotas - on imports and exports of certain goods The most of non-tariff barrier are created as protection measures 40
41 TARIC Agricultural measures ENTRY PRICES LEGAL BASIS: Regulation (EU) No 1001/2013 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff Regulation (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products 41
42 TARIC Agricultural measures ENTRY PRICES LEGAL BASIS: Commission Implementing Regulation (EU) No 543/2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products 42
43 TARIC Agricultural measures ENTRY PRICES ENTRY PRICE SYSTEM: is established in accordance with Section I, Chapter I, Title IV of Regulation (EU) No. 543/
44 TARIC Agricultural measures ENTRY PRICES Standard import values for determining the entry price of certain fruit and vegetables: are set out according to art. 136 of Regulation (EU) No. 543/2011 the Commission shall fix, each working day and for each origin, a standard import value 44
45 TARIC Agricultural measures ENTRY PRICES Products to which an entry price applies: according to Annex 2 to Regulation (EU) No. 1001/
46 TARIC Agricultural measures Marketing standards LEGAL BASIS: Commission Implementing Regulation (EU) No 543/2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products 46
47 TARIC Agricultural measures Marketing standards The specific marketing standards referred to in Article 113(1)(b) of Regulation (EC) No 1234/
48 TARIC Agricultural measures Marketing standards The specific marketing standards referred to in Article 113(1)(b) of Regulation (EC) No 1234/2007 are set out in Part B of Annex I of this Regulation as regards the following products: (a) apples, (b) citrus fruit, (c) kiwifruit, (d) lettuces, curled leaved and broad-leaved endives, (e) peaches and nectarines, (f) pears, (g) strawberries, (h) sweet peppers, (i) table grapes, (j) tomatoes. 48
49 TARIC Agricultural measures Marketing standards Customs accept export declarations and/or declarations for the release for free circulation for the products subject to specific marketing standards if: (a) the goods are accompanied by a conformity certificate, or (b) the competent inspection body has informed the customs authority that the lots concerned have been issued a conformity certificate, or (c) the competent inspection body has informed the customs authority that it has not issued a conformity certificate for the lots concerned because they do not needed to be checked in the light of the risk assessment referred to in Article 11(1). 49
50 TARIC Agricultural measures Marketing standards Conformity checks : Member States shall ensure that conformity checks are carried out selectively, based on a risk analysis, and with appropriate frequency, so as to ensure compliance with the marketing standards and other provisions of this Title and of Articles 113 and 113a of Regulation (EC) No 1234/2007. The criteria to assess the risk shall include the existence of a conformity certificate referred to in Article 14 issued by a competent authority of a third country where the conformity checks have been approved pursuant to Article 15. The existence of such certificate shall be considered as a factor reducing the risk of non-conformity. 50
51 TARIC Agricultural measures Marketing standards Certificate of conformity: Certificates of conformity may be issued by a competent authority to confirm that the products concerned conform to the relevant marketing standard (hereinafter referred to as certificate ). The certificate for use by competent authorities in the Union is set out in Annex III of Regulation (EU) No 543/
52 THANK YOU FOR YOUR ATTENTION! And GOOD LUCK IN YOUR BUSINESS! 52
53 53
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