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CHAPTER IIU.K. IMPORTS OF PROCESSED AGRICULTURAL PRODUCTS

SECTION II U.K. Preferential Trade

Subsection I U.K. reduction of import duties

Article 10U.K.Reduction and phasing out of agricultural components, ad valorem duties and additional duties

1.Where an international agreement concluded or provisionally applied by the Union in accordance with the TFEU:

(a)provides for a reduction or consecutive reductions leading to a phasing out of import duties for processed agricultural products; and

(b)sets out the products eligible for these reductions, the quantities of goods, the value of any quotas to which these reductions apply, the method of calculating such quantities or values or the factors determining the reduction in the agricultural component, in the additional duties on sugar and flour, or in the ad valorem duty,

the agricultural component, the additional duties on sugar and flour, or the ad valorem duty may be subject to the reduction or consecutive reductions leading to a phasing out that are provided for in the case of import duties for processed agricultural products.

For the purpose of this Article, the agricultural component may also include the agricultural element as referred to in point B 1 of Section I of Part One of Annex I to Regulation (EEC) No 2658/87 and laid down in Table 2 of Annex 1 to Section I of Part Three of Annex I to that Regulation.

2.Where an international agreement concluded or provisionally applied by the Union in accordance with the TFEU provides for a reduction or phasing out of the agricultural components with regard to the products listed in Table 2 of Annex I to this Regulation, the duty consisting of the agricultural component, which is part of the ad valorem duty, shall be replaced by a non-ad valorem agricultural component.

Article 11U.K.Quantities actually used or considered to have been used

1.The reductions or phasing out of agricultural components or of additional duties on sugar and flour in accordance with Article 10(1) shall be determined on the basis of the following:

(a)the quantities of the agricultural products listed in Annex V which have been actually used or are considered to have been used in the manufacturing of the processed agricultural product;

(b)the duties that apply to the agricultural products referred to in point (a) and which are used for calculating the reduced agricultural component and additional duties on sugar and flour in the case of certain preferential trade arrangements.

2.The agricultural products which are to be considered to have been used in the manufacture of the processed agricultural product shall be selected, from agricultural products actually used in the manufacture of the processed agricultural product, on the basis of their importance in international trade and of the extent to which their price levels are representative of the price levels of all the other agricultural products used in the manufacture of that processed agricultural product.

3.The quantities of agricultural products listed in Annex V and actually used, shall be converted to equivalent quantities of the specific agricultural products considered to have been used.

Article 12U.K.Delegated powers

The Commission shall be empowered to adopt delegated acts, in accordance with Article 42, concerning:

(a)

the establishment of a list of those agricultural products listed in Annex V which are to be considered to have been used in the manufacture of the processed agricultural products on the basis of the selection criteria laid down in Article 11(2);

(b)

the establishment of the equivalent quantities and the rules for the conversion provided for in Article 11(3);

(c)

the elements necessary for the calculation of the reduced agricultural component and the reduced additional duties on sugar and flour and the establishing of the methods of that calculation;

(d)

the negligible amounts for which the reduced agricultural components and additional duties on sugar and flour shall be fixed at zero.

Article 13U.K.Implementing powers

1.The Commission shall, where appropriate, adopt implementing acts, containing measures to implement international agreements concluded or provisionally applied by the Union in accordance with the TFEU concerning the calculation of import duties for processed agricultural products which are subject to reduction in accordance with Article 10(1) and (2) of this Regulation.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(2).

2.The Commission may, where necessary, adopt implementing acts laying down:

(a)the fixed quantities of the agricultural products, referred to in Article 12(a), which are considered to have been used in the manufacturing of the processed agricultural products;

(b)the quantities of the agricultural products, referred to in Article 12(a), which are considered to have been used in the manufacturing of the processed agricultural products, for each possible composition of those processed agricultural products for which fixed quantities of the specific agricultural products cannot be established in accordance with point (a) of this subparagraph;

(c)documentary requirements.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(2).

3.The Commission may adopt implementing acts, without applying the procedure referred to in Article 44(2) or (3), fixing, in accordance with the rules set out in an international agreement concluded or provisionally applied by the Union in accordance with the TFEU and those rules adopted pursuant to paragraph 1 of this Article, the level of the import duty to be applied.

Subsection II U.K. tariff quotas and special treatment of imports by third countries

Article 14U.K.Opening and management of tariff quotas

1.Tariff quotas for the import of processed agricultural products and of agricultural products referred to in the second paragraph of Article 1, for their release into free circulation in the Union, resulting from international agreements concluded or provisionally applied by the Union in accordance with the TFEU shall be opened and managed by the Commission in accordance with Articles 15 and 16.

2.The tariff quotas referred to in paragraph 1 shall be managed in a manner which avoids any discrimination between operators and which gives due weight to the supply requirements of the Union market and the need to preserve the equilibrium of that market.

3.The tariff quotas referred to in paragraph 1 shall be managed by applying one of the following methods, another appropriate method, or a combination of any of them:

(a)a method of allocation based on the chronological order of the submission of applications (‘first come, first served principle’);

(b)a method of allocation of quotas in proportion to the quantities requested in the applications (‘simultaneous examination method’);

(c)a method of allocation based on traditional trade patterns (‘traditional/newcomers method’).

Article 15U.K.Delegated powers

1.The Commission shall be empowered to adopt delegated acts, in accordance with Article 42, concerning:

(a)the conditions and eligibility requirements that an operator is required to fulfil in order to submit an application within the tariff quota set out in an international agreement, as referred to in Article 14(1);

(b)the rules on the transfer of rights between operators and, where necessary, the limitations on that transfer within the management of the tariff quota, set out in an international agreement, as referred to in Article 14(1);

(c)the provisions making the participation in the tariff quota set out in an international agreement, as referred to in Article 14(1), subject to the presentation of an import licence and to the lodging of a security;

(d)the specific characteristics, the requirements or the restrictions applicable to the tariff quota set out in the international agreement, as referred to in Article 14(1).

2.The Commission shall be empowered to adopt delegated acts, in accordance with Article 42, requiring the competent authorities of Member States, on request and after carrying out appropriate checks, to issue a document certifying that a product fulfils the conditions for benefitting from special treatment on importation into a third country.

Article 16U.K.Implementing powers

1.The Commission shall adopt implementing acts, laying down:

(a)the annual tariff quotas, which shall, if necessary, be suitably phased in over the year, and the method of administration to be used;

(b)procedures for the application of the specific provisions laid down in the international agreement or legal act adopting the import or export regime, in particular those concerning:

(i)

guarantees covering the nature, provenance and origin of the product;

(ii)

the recognition of any document used to verify the guarantees referred to in point (i);

(iii)

the presentation of a document issued by the exporting country;

(iv)

the destination and use of the products;

(c)the period of validity of the import licences to be presented in accordance with Article 15(1)(c);

(d)the procedure for lodging a security in accordance with Article 15(1)(c), and its amount;

(e)the use of import licences to be presented in accordance with Article 15(1)(c) and where necessary, specific measures relating, in particular, to the conditions under which applications for importation shall be submitted and authorisation granted within the tariff quota;

(f)documentary requirements;

(g)necessary measures concerning the content, form, issuing and use of the document referred to in Article 15(2).

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 44(2).

2.The Commission shall adopt implementing acts, without applying the procedure referred to in Article 44(2) or (3):

(a)managing the process guaranteeing that the quantities available within the tariff quota are not exceeded, in particular by fixing an allocation coefficient to each application when the available quantities are reached, rejecting pending applications and, where necessary, suspending the submission of applications;

(b)reallocating unused quantities of the tariff quota.