An Agreement in the form of an Exchange of Letters concerning additional trade preferences in agricultural products2 (‘the Agreement’) was concluded between the European Union and Iceland reached on the basis of Article 19 of the Agreement on the European Economic Area. The Agreement was approved on behalf of the Union by Council Decision (EU) 2017/19133.

In order to implement Annex V to the Agreement, the Commission adopted Implementing Regulation (EU) 2018/5624 amending Implementing Regulation (EU) No 1354/20115. The amendment increased the quantities of the existing duty-free quotas for sheep meat and goat meat originating in Iceland and falling within tariff headings 0204 and 0210, and furthermore opened an annual Union duty-free quota for processed sheep meat falling within subheading 1602 90.

The quantities of sheep meat and goat meat tariff quotas which are managed under Implementing Regulation (EU) No 1354/2011 are expressed in tonnes of carcass-weight equivalent, while the Agreement provides for the quantities of tariff quotas for goods originating in Iceland to be expressed in tonnes of products. It is therefore appropriate to express the quantities of the Union tariff quotas set out in the Agreement in tonnes of products instead of in carcass-weight equivalent by providing for their management in a separate Regulation.

Furthermore, it is necessary to provide for the management of the tariff quota for goods falling within headings 0204 and 0210 under a new tariff quota order number, and set out provisions for the transition to the new tariff quota order number. The deletion of the tariff quotas corresponding to products originating in Iceland from Implementing Regulation (EU) No 1354/2011 is provided for in Commission Implementing Regulation (EU) 2018/11286.

The Agreement specifies that the tariff quotas set out in its Annex V are to apply annually and provides for the progressive increase of the volumes of the tariff rate quotas in the years following its entry into force. Annex V to the Agreement provides that for the first year of application the quantities are calculated pro rata. As the Agreement is applicable from 1 May 2018, the quantities for 2018 that are calculated pro rata, as well as the annual quantities for the following years, should be laid down in accordance with Annex V to the Agreement.

The tariff quotas should be managed by the Commission on the basis of the chronological order of dates of acceptance of customs declarations for release for free circulation in accordance with the rules for the management of tariff quotas laid down in Commission Implementing Regulation (EU) 2015/24477.

The Agreement provides that the provisions set out in Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland, as amended by Decision No 2/2005 of the EC-Iceland Joint Committee8 concerning the definition of ‘originating products’ and methods of administrative cooperation, are to apply to the products benefitting from the tariff quotas.

In order to coincide with the date of application of Implementing Regulation (EU) 2018/1128 that provides for the removal of the tariff quotas set out for products originating in Iceland from Implementing Regulation (EU) No 1354/2011 this Regulation should apply from 1 September 2018.

The measures provided for in this Regulation are in accordance with the opinion of the Customs Code Committee,