L 96/8 Official Journal of the European Communities 13.4.2002 COMMISSION REGULATION (EC) No 637/2002 of 12 April 2002 redistributing unused portions of the 2001 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 amended by Regulation (EC) No 138/96 (3, and in particular Article 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 1766/82 and (EEC) No 3420/83 (%), as last amended by Regulation (EC) No 1138/98 (¥, 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. (2)  The Commission accordingly adopted Regulation (EC) No 738/94 (%), as last amended by Regulation (EC) No 983/96 (%), laying down general rules for the imple- mentation of Regulation (EC) No 520/94. These provi- sions apply to the administration of the above quotas subject to the provisions of this Regulation. (3)  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 2001 and not used. (4)  The unused quantities could not be redistributed in time to be used before the end of the 2001 quota year. (5)  Examination of the data received for each of the prod- ucts in question indicates that the quantities not used in the 2001 quota year should be redistributed in 2002, up to a limit of the amounts set out in Annex I to this Regulation. (6)  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 () O] L 66, 10.3.1994, p. 1. () O] L 21, 27.1.1996, p. 6. () O] L 67, 10.3.1994, p. 89. (% O] L 159, 3.6.1998, p. 1. () O] L 87, 31.3.1994, p. 47. (9 O] L 131, 1.6.1996, p. 47. 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. 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 2001 quotas except as regard the determination of the reference period for traditional importers and the introduction of new criteria to prevent multiple applica- tions by non-traditional importers. The reference period used for redistributing the portion of the unused quantities set aside for traditional impor- ters in the previous Regulation on the administration of these quotas should not be updated. The year 2000 was 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 importers in all Member States. The years 1998 or 1999 are, thus, the most recent years representatives 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 that the unusual increase of applica- tions lodged for the portion of the quota set aside for non-traditional importers is due to multiple licence applications from companies who do not effectively operate as separate importers, but which have been established as separate legal entities only for the purpose of being able to submit additional applications. Regula- tion (EC) No 520/94, in particular recital 5 and Article 5 thereof, requires the Commission to ensure fair access to quotas and that import licences be issued for economic- ally significant quantities. To redistribute the non-tradi- tional quota in line with these principles, the adminis- trative procedures should be amended. The Commission considers it necessary that operators applying as non- traditional importers and falling under the definition of related persons within the meaning of Article 143 of