L 192/8 Official Journal of the European Union 31.7.2003 COMMISSION REGULATION (EC) No 1351/2003 of 30 July 2003 establishing administrative procedures for the first tranche of the 2004 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 806/2003 (3, 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 427/2003 (¥), introduced annual quantitative quotas for certain products originating in the People's Republic of China listed in Annex I 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. 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 first tranche of the 2004 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. L 66, 10.3.1994, p. 1. L 122, 16.5.2003, p. 1. 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. () 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. 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. In 2002, there was a signifi- cant increase in applications by non-traditional impor- ters from United Kingdom companies to other Member States suggesting an effort to circumvent the related persons test. Also, investigations are ongoing into a number of 2002 and 2003 licence holders that may have breached the related persons test. The years 1998 or 1999 are therefore the most recent years representa- tive 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 12 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 impor- ters. Consequently, in accordance with Article 2(2)(c) of Regulation (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. 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 Commission Regulation (EEC) No 2454/ 93 of 2 July 1993 laying down provisions for the imple- mentation of Council Regulation (EEC) 2913/92 estab- lishing the Community Customs Code (), as last amended by Regulation (EC) No 881/2003 (¥), may only submit a single licence application for each line of the quota set aside for non-traditional importers. In order to exclude speculative applications, the amount that any non-traditional importer may request should be restricted to a set volume. () OJ L 253, 11.10.1993, p. 1. () OJ L 134, 29.5.2003, p. 1.