Date: 2023-01-19Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Regulation (EU) 2023/132 of 18 January 2023 on safeguard measures with regards to imports of Indica rice originating in Cambodia following the re-opening of the investigation in order to implement the judgment of the General Court of 9 November 2022 in Case T-246/19, with regard to Implementing Regulation (EU) 2019/67
Issued by European Commission
· Directorate-General for Trade and Economic Security
Executive Summary:
This regulation reopens an investigation regarding safeguard measures on Indica rice imports from Cambodia, following a General Court ruling that annulled the original implementing regulation (EU 2019/67). The purpose is to address errors identified by the General Court and reassess the need for duties on these imports between January 18, 2019, and January 18, 2022. National customs authorities are instructed to suspend any decisions on repayment claims concerning annulled duties until the investigation concludes.
Key Points / Main Content:
* **Background:**
* Commission Implementing Regulation (EU) 2019/67 imposed safeguard measures on Indica rice imports from Cambodia and Myanmar, reintroducing Common Customs Tariff duties.
* The General Court annulled Regulation (EU) 2019/67 due to errors in the investigation, including an incorrect definition of Union producers, flawed undercutting analysis, and infringement of the applicants’ rights of defence.
* **Reopening of Investigation:**
* The Commission has reopened the investigation to address the errors identified by the General Court.
* The investigation will determine if reimposing duties on Indica rice imports from Cambodia is warranted for the period of January 18, 2019, to January 18, 2022.
* A new Regulation may be adopted based on the findings of the reopened investigation.
* **Suspension of Duty Repayments:**
* National customs authorities must await the outcome of the reexamination before deciding on any repayment claim concerning the duties annulled by the General Court.
* Claims for reimbursements of annulled duties are to be put on hold until the outcome of the reexamination is published.
Impact Analysis:
* **National Customs Authorities:**
* Impact: Required to suspend decisions on repayment claims for duties collected on Indica rice imports from Cambodia until the new regulation is published.
* Action Required: Await publication of the Commission Implementing Regulation concluding the investigation before processing repayment claims.
* **Rice Importers (Cambodia & Myanmar):**
* Impact: Potential reimposition of duties for imports made between January 18, 2019, and January 18, 2022, depending on the outcome of the reopened investigation.
* Action Required: Monitor the publication of the Commission Implementing Regulation to understand the final decision regarding duties.
* **Union Rice Producers:**
* Impact: Outcome of the investigation will determine whether safeguard measures are reimposed, potentially affecting the competitive landscape.
* Action Required: No direct action specified in the document, but indirectly affected by the outcome of the investigation.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
European Commission: An institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Cambodia: A country in Southeast Asia, specifically mentioned as the origin of Indica rice imports subject to safeguard measures.
MyanmarBurma: A country in Southeast Asia, specifically mentioned as the origin of Indica rice imports subject to safeguard measures.
Indica rice: A specific type of rice that is the subject of the safeguard measures and investigation.
General Court: The General Court is a court of the European Union. It is part of the Court of Justice of the European Union.
Commission Implementing Regulation (EU) 2019/67: The original regulation imposing safeguard measures on Indica rice imports from Cambodia and MyanmarBurma.
Treaty on the Functioning of the European Union: One of the primary treaties of the European Union, outlining the scope of the EU's authority and its decision-making processes.
L 17/88 EN Official Journal of the European Union 19.1.2023
COMMISSION IMPLEMENTING REGULATION (EU) 2023/132
of 18 January 2023
on safeguard measures with regards to imports of Indica rice originating in Cambodia following the
re-opening of the investigation in order to implement the judgment of the General Court of
9 November 2022in Case T-246/19, with regard to Implementing Regulation (EU) 2019/67
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Article 310(5) of the Treaty on the Functioning of the European Union,
Having regard to Articles 22 and 26 of Regulation (EU) No 978/2012 of the European Parliament and of the Council of
25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC)
No 732/2008(1),
Whereas:
1. PROCEDURE
(1) On 17 January 2019 the European Commission (‘the Commission’) published Commission Implementing
Regulation (EU) 2019/67(2) imposing safeguard measures with regard to imports of Indica rice originating in
Cambodia and Myanmar/Burma falling within CN codes 1006 30 27, 1006 30 48, 1006 30 67and 1006 30 98, by
which the Commission reintroduced the Common Customs Tariff duties on imports of that rice for a period of 3
years and introduced a progressive reduction in the rate of duty applicable (‘the Regulation at issue’) insofar as it
concerned the imports of rice from Cambodia and Myanmar/Burma.
(2) The Kingdom of Cambodia and the Cambodia Rice Federation challenged the Regulation at issue before the General
Court (‘the General Court’).
(3) By judgement of 9 November 2022 in Case T-246/19 Kingdom of Cambodia and Cambodia Rice Federation v
Commission (‘the judgment’), the General Court annulled the Regulation at issue.
(4) The General Court found that the Commission erred in law and made a manifest error of assessment by arbitrarily
limiting the scope of its investigation concerning the injury caused to the Union industry solely to millers of milled
or semi-milled Indica rice processed from paddy rice grown or harvested in the European Union. The incorrect
definition of Union producers thus also vitiated the analysis of the existence of serious difficulties, since the
Commission excluded some of the producers from the injury assessment.
(5) The General Court also found that the Commission failed to provide evidence to the requisite standard with respect
to the adjustments made to the undercutting analysis.
(6) Finally, the General Court found that the Commission infringed the applicants’ rights of defence and the obligation
to disclose the essential facts and considerations and the details underlying them. In particular, the Commission
failed to disclose the data underlying the consumption and injury indicators and the undercutting analysis and the
adjustments made following the comments of the interested parties on the general disclosure document.
(1) OJ L 303, 31.10.2012, p. 1.
(2) Commission Implementing Regulation (EU) 2019/67 of 16 January 2019 imposing safeguard measures with regard to imports of
Indica rice originating in Cambodia and Myanmar/Burma (OJ L 15, 17.1.2019, p. 5).19.1.2023 EN Official Journal of the European Union L 17/89
2. GROUNDS FOR REOPENING THE INVESTIGATION AND SUSPENSION OF REPAYMENT OF DUTIES
(7) Following the judgment, the Commission decided by means of a Notice (‘the reopening Notice’)(3), to reopen the
investigation and to resume it at the point at which the irregularity occurred.
(8) As explained in the re-opening Notice the purpose of reopening the original investigation is to fully address the
errors identified by the General Court, and to assess whether the application of the rules as clarified by the General
Court warrants the re-imposition of the measures, which would lead to the reintroduction of the Common
Customs Tariff duties on imports of Indica rice originating in Cambodia falling within CN codes 1006 30 27,
1006 30 48, 1006 30 67and 1006 30 98for the original period of 3 years, namely between 18 January 2019and
18 January 2022.
(9) Based on its new findings and the outcome of the reopened investigation, which is unknown at this stage, the
Commission may adopt a new Regulation. Since the measures were terminated, any re-imposition of Common
Customs Tariff duties would only concern imports made during the original period of application of the regulation
at issue (namely, imports made between 18 January 2019and 18 January 2022).
(10) In accordance with Article 310(5) of the Treaty on the Functioning of the European Union, the budget shall be
implemented in accordance with the principle of sound financial management. Member States shall cooperate with
the Union to ensure that the appropriations entered in the budget are used in accordance with this principle. For
this purpose, national customs authorities are instructed to await the outcome of the re-examination before
deciding on any repayment claim concerning the duties annulled by the General Court. Customs authorities are
thus directed to put on hold any claims for reimbursements of the annulled duties until the outcome of the
re-examination is published in the Official Journal;
HAS ADOPTED THIS REGULATION:
Article 1
The national customs authorities shall await the publication of the relevant Commission Implementing Regulation
concluding the investigation with regard to imports of Indica rice originating in Cambodia and Myanmar/Burma before
deciding on any claim for repayment and remission of the ordinary duties collected on imports of Indica rice originating
in Cambodia.
Article 2
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 18 January 2023.
For the Commission
The President
Ursula VON DER LEYEN
(3) OJ C 18, 19.1.2023, p. 8.