PURPOSE: to amend the base year for the allocation of quotas of hydrochlorofluorocarbons taking account of EU enlargement in 2004.

LEGISLATIVE ACT: Regulation 13666/2006/EC of the European Parliament and of the Council amending Regulation 2037/2000 as regards the base year for the allocation of quotas of hydrochlorofluorocarbons with respect to the Member States that acceded to the European Union on 1 May 2004.

CONTENT: to recall, Regulation 2037/2000 took 1999 as the base year for allocating quotas of hydrochlorofluorocarbons (HCFCs). However, the market for HCFCs has changed considerably in the 10 new Member States since 1999. Thus, taking 1999 as the base year for allocating quotas of HCFCs in these new Member States would result in a large number of companies not being able to receive an import quota. In order to avoid the arbitrary nature of this, and in order not to breach the principles of non-discrimination, this Regulation adds a new provision to Regulation 2037/2000/EC.

This new provision stipulates that each producer and importer from the following list of countries:

- the Czech Republic,

- Estonia ,

- Cyprus ,

- Latvia ,

- Lithuania ,

- Hungary ,

- Malta ,

- Poland ,

- Slovenia , and

- Slovakia

Is obliged to ensure that the calculated level of hydrochlorofluorocarbons which it places on the market or uses for its own account will not exceed as a percentage of the calculated levels set out the average of its percentage market share in 2002 and 2003.

ENTRY INTO FORCE: 26 September 2006.

APPLY: 1 January 2007.

Regulation 2006/1366
OJ L 264 25.09.2006, p. 0012-0012

03613/2/2006

Results of vote in Parliament

The European Parliament adopted a resolution drafted by Karl-Heinz FLORENZ (EPP-ED, DE), approving the proposal amending Regulation 2037/2000/EC as regards the base year for the allocation of quotas of hydrochlorofluorocarbons with respect to the Member States that acceded on 1 May 2004.

T6-0149/2006

A6-0088/2006

A6-0088/2006

The committee adopted the report by its chairman, Karl-Heinz FLORENZ (EPP-ED, DE), approving unamended - under the 1st reading of the codecision procedure - the proposed regulation amending Regulation (EC) No. 2037/2000 as regards the base year for the allocation of quotas of hydrochlorofluorocarbons with respect to the Member States that acceded on 1 May 2004.

CES0405/2006

PE367.794

To recall, the Commission submitted the previous initial proposal to the Council in August 2004. The Working Party on the Environment agreed on 21 October 2005 to change the legal basis of the Regulation from Article 57 (2) of the Accession Treaty to Article 175 (1) of the EC Treaty. It also agreed consequential changes to the citations, recitals and Article 2.

While considering that the legal basis that it had originally proposed remains appropriate, the Commission can accept these changes. It would therefore be appropriate for the Committee of Permanent Representatives to agree:

- to the change of the legal basis; and

- as a consequence, that the Council should consult the European Parliament, Economic and Social Committee and Committee of the Regions on the basis of the modified proposal set out in the Addendum to this note.

The current and incoming Presidencies have undertaken to seek to negotiate a first-reading agreement with the European Parliament, in order that adoption of the Regulation might take place as soon as possible in 2006.

13632/2005

To recall, the Commission submitted the previous initial proposal to the Council in August 2004. The Working Party on the Environment agreed on 21 October 2005 to change the legal basis of the Regulation from Article 57 (2) of the Accession Treaty to Article 175 (1) of the EC Treaty. It also agreed consequential changes to the citations, recitals and Article 2.

While considering that the legal basis that it had originally proposed remains appropriate, the Commission can accept these changes. It would therefore be appropriate for the Committee of Permanent Representatives to agree:

- to the change of the legal basis; and

- as a consequence, that the Council should consult the European Parliament, Economic and Social Committee and Committee of the Regions on the basis of the modified proposal set out in the Addendum to this note.

The current and incoming Presidencies have undertaken to seek to negotiate a first-reading agreement with the European Parliament, in order that adoption of the Regulation might take place as soon as possible in 2006.

13632/2005

PURPOSE : to amend the base date in Regulation 2037/2000/EC for determining the allocation of quotas of hydrochlorofluorocarbons (HCFCs) to producers and importers in the EU-25 with respect only to the 10 new Member States that acceded on the 1 May 2004.

PROPOSED ACT : Council Regulation.

CONTENT : 1999 is the base date in Regulation 2037/2000/EC of the European Parliament and of the Council for the allocation of the placing on the market quota to importers for HCFCs.

The HCFC market in the ten new Member States has changed considerably since 1999 with the arrival of new companies and changing market shares with respect HCFCS. The application of 1999 as the base date for the allocation of HCFCs in these new Member States would result in a large number of companies not receiving an import quota. This could be considered as being arbitrary and might also result in a breach of the principles of non-discrimination and legitimate expectations.

As a general rule, quotas should be based on the most recent and representative figures available in order to ensure that a number of importing companies in the new Member States are not excluded. It is therefore appropriate to choose the years for which the most recent data are available. In order to best reflect the commercial situation on the HCFC market in the ten new Member States the average market-share of 2002 and 2003 should therefore be laid down as basis for the companies from those Member States.

According to the Commission, changing the base date from 1999 to an average of 2002 and 2003 would result in importers in the new Member States being allocated 10.35 ODP tonnes and producers being allocated 126.99 ODP tonnes compared to 5.44 ODP tonnes and 131.89 ODP tonnes respectively in 1999.

COM(2004)0550
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