22.8.2002 Official Journal of the European Communities L 225/15 COMMISSION REGULATION (EC) No 1498/2002 of 21 August 2002 establishing administrative procedures for the 2003 quantitative quotas for certain products originating in the People’s Republic of China THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 520/94 of 7 March 1994 establishing a Community procedure for adminis- tering quantitative quotas ('), as last amended by Regulation (EC) No 138/96 (%), and in particular Article 2(3) and (4), Article 6(3) and Articles 13, 23 and 24 thereof, Whereas: 1 Council Regulation (EC) No 519/94 of 7 March 1994 on common rules for imports from certain third countries and repealing Regulations (EEC) No 1765/82, (EEC) No 176682 and (EEC) No 3420/83 (*), as last amended by Regulation (EC) No 1138/98 (%), introduced annual quan- titative quotas for certain products originating in the People’s Republic of China listed in Annex I to that Regulation. The Commission has adopted a proposal for a Council Regulation on a transitional product-specific safeguard mechanism for imports originating in the People’s Republic of China and amending Council Regulation (EC) No 519/94 on common rules for imports from certain third countries (com (2002) 342 final). This proposal for a Council Regulation, which, inter alia, provides for an increase in the quotas for 2002 and 2003 reflecting the phasing out table provided for in China’s Protocol of Accession to the WTO, has not yet been adopted by the Council. Therefore, the quota allo- cation in this Commission Regulation has still been based on Annex II to Regulation (EC) No 519/94. Following the adoption of the abovementioned Council Regulation the Commission envisages to increase the quota share accordingly. The provisions of Regulation (EC) No 520/94 are applic- able to those quotas. The Commission accordingly adopted Regulation (EC) No 738/94 (%), as last amended by Regulation (EC) No 983/96 (°), laying down general rules for the implemen- tation of Regulation (EC) No 520/94. These provisions apply to the administration of the above quotas subject to the provisions of this Regulation. L 66, 10.3.1994, p. 1. L 21,27.1.1996, p. 1. L 67,10.3.1994, p. 89. L 159, 3.6.1998, p. 1. L 87, 31.3.1994, p. 47. L 131, 1.6.1996, p. 47. () Certain characteristics of China’s economy, the seasonal nature of some of the products and the time needed for transport mean that orders for products subject to quota are generally placed before the beginning of the quota year. It is therefore important to ensure that administra- tive constraints do not impede the realisation of the planned imports. In order not to affect the continuity of trade flows, the arrangements for allocating and adminis- tering the 2003 quotas should accordingly be adopted before the start of the quota year. After examination of the different administrative methods provided for by Regulation (EC) No 520/94, the method based on traditional trade flows should be adopted. Under this method the quotas are divided into two portions, one of which is reserved for traditional importers and the other for other applicants. This has proved to be the best way of ensuring the conti- nuity of business for the Community importers concerned and avoiding any disturbance of trade flows. The reference period used for allocating the portion of the quota set aside for traditional importers in the previous Regulation on the administration of these quotas cannot be updated. The years 2000 and 2001 were characterised by certain distortions, in particular a more than twofold increase of applications from one Member State, which resulted in substantially reduced individual quota allocations to all non-traditional impor- ters in all Member States. The years 1998 or 1999 are the most recent years representative of the normal trend of trade flows in the products in question. Traditional importers must, therefore, prove that they have imported products originating in China and covered by the quotas in question in the years 1998 or 1999. It has been found in the past that the method provided for in Article 10 of Regulation (EC) No 520/94, which is based on the order in which applications are received, may not be an appropriate way of allocating that portion of the quota reserved for non-traditional importers. Consequently, in accordance with Article 2(4) of Regula- tion (EC) No 520/94, it is appropriate to provide for allocation in proportion to the quantities requested, on the basis of a simultaneous examination of import licence applications actually lodged, in accordance with Article 13 of Regulation (EC) No 520/94.