L151/14 Official Journal of the European Communities 11.6.2002 COMMISSION COMMISSION DECISION of 27 May 2002 terminating the examination procedure concerning obstacles to trade, consisting of trade practices maintained by Brazil in relation to imports of sorbitol (2002/440[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community’s rights under international trade rules, in particular those established under the auspices of the World Trade Organisation (), as amended by Regulation (EC) No 356/95 (3, and in particular Article 11(1) thereof, After consulting the Advisory Committee, Whereas: A. PROCEDURAL BACKGROUND (1)  On 2 October 1998 a Netherlands company, Cerestar Holding BV, lodged a complaint pursuant to Article 4 of Regulation (EC) No 3286/94. (2)  The complainant alleged that Community sales of sorbitol in Brazil were hindered by a number of obstacles to trade within the meaning of Article 2(1) of Regulation (EC) No 3286/94. The alleged obstacles to trade were: (a) the introduction in December 1997 by the Brazilian Government (Departamento de Operagoes de Comércio Exterior) in accordance with Comunicado DECEX No 20 of 8 July 1997 of a non-automatic licensing procedure for sorbitol, in contravention of the relevant provisions of the WTO Agreement on Import Licensing Procedures; (b) the alleged arbitrary andfor non-justified refusal (or otherwise withholding) by the Brazilian authorities () OJ L 349, 31.12.1994, p. 71. () OJ L 41,23.2.1995, p. 3. of import licences in relation to all grades of sorbitol entering Brazil below a minimum fob price; (c) the implementation of minimum prices via de facto reference prices included in the customs valuation system. The complainant also claimed a general lack of transpar- ency of the Brazilian import licensing system, which had not been duly notified to the WTO. (3)  The Commission decided that the complaint contained sufficient evidence to justify the initiation of an examina- tion procedure pursuant to Article 8(1) of Regulation (EC) No 3286/94. A corresponding notice was published in the Official Journal of the European Communities (). B. FINDINGS OF THE INVESTIGATIONS (4)  According to the final investigation report, the examina- tion procedure led to the conclusion that the Brazilian minimum price system appeared to be in breach of: (a) Article XI(1) of the GATT (1994), as it is a restriction other than duties, taxes or other charges, made effec- tive through import licences on the importation of any product of the territory of any other contracting party, without any WTO compatible justification; (b) Article 4(2) of the WTO Agreement on Agriculture, for the same reason as above; () Article 2 and 5 of the WTO Agreement on Sanitary and Phyto-sanitary measures, as it imposes sanitary controls more trade-restrictive than necessary, which are not applied only to the extent necessary to protect human life or health. (5)  In addition, the Brazilian non-automatic import licensing system, as applied with a minimum price requirement, appeared to be also in breach of: () O] C 361, 24.11.1998, p. 13.