27.3.2003 Official Journal of the European Union L 80/13 COMMISSION REGULATION (EC) No 538/2003 of 26 March 2003 redistributing unused portions of the 2002 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 (3, and in particular Articles 2(5) and Articles 14 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 427/2003 (), introduced annual quantitative quotas for certain products originating in the People's Republic of China listed in Annex II to that Regulation. The provisions of Regulation (EC) No 520/ 94 are applicable 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. In accordance with Article 20 of Regulation (EC) No 520/94, the competent authorities of the Member States notified the Commission of the quantities of quotas assigned in 2002 and not used. The unused quantities could not be redistributed in time to be used before the end of the 2002 quota year. Examination of the data received for each of the products in question indicates that the quantities not used in the 2002 quota year should be redistributed in 2003, up to a limit of the amounts set out in Annex I to this Regulation. The different administrative methods provided for by Regulation (EC) No 520/94 have been analysed and it is considered that the method based on traditional trade flows should be adopted. Under this method quota tranches are divided into two portions, one of which is reserved for traditional importers and the other for other applicants. L 66, 10.3.1994, p. 1. L 21, 27.1.1996, p. 6. L 67,10.3.1994, p. 89. L 65, 8.3.2003, p. 1. L 87, 31.3.1994, p. 47. L 131, 1.6.1996, p. 47. ) (10) (11) (12) This has proved to be the best way of ensuring the continuity of business for the Community importers concerned and avoiding any disturbance of trade flows. Quantities redistributed under this Regulation should be divided using the same criteria as for the allocation of the 2002 quotas except as regards the overall proportion reserved for traditional importers (75 %). It is necessary to simplify the formalities to be fulfilled by traditional importers who already hold import licences issued when the 2003 Community quotas were allocated. The competent administrative authorities already possess the requisite evidence of either 1998 or 1999 imports for all traditional importers. The latter need therefore only enclose a copy of their previous licences with their new licence applications. Measures should be taken to provide the best conditions for the allocation of that portion of the quota reserved for non-traditional importers with a view to optimum use of quotas. To this end, it is appropriate to provide for that portion to be allocated in proportion to the quantities requested, on the basis of a simultaneous examination of import licence applications actually lodged, and grant access only to importers who can prove that they obtained and made use of at least 80 % of an import licence for the product in question during the 2002 quota year. The amount that any non-tradi- tional importer may request should also be restricted to a set volume or value. For the purposes of quota allocation, a time limit must be set for the submission of licence applications by importers. With a view to optimum use of quotas, licence applica- tions for imports of footwear under quotas which refer to several CN codes must specify the quantities required for each code. The Member States must inform the Commission of the import licence applications received, in accordance with the procedure laid down in Article 8 of Regulation (EC) No 520/94. The information about traditional importers' previous imports must be expressed in the same units as the quota in question.