28.6.2000 Official Journal of the European Communities L155/31 establishing administrative procedures for the 2001 quantitative quotas for certain products COMMISSION REGULATION (EC) No 1355/2000 of 26 June 2000 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 Article 2(3) and (4) and Articles 13 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. 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. 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 yeare. It is therefore important to ensure that adminis- trative 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 admin- istering the 2001 quota 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. () 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. () 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 earlier Regulations on the administration of these quotas should be updated to ensure open access to the quotas. In order to allow a greater flexibility to the benefit of traditional importers it is considered appropriate to allow them to set their reference period as either 1998 or 1999, which 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 impor- ters. Consequently, in accordance with Article 2(4) 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. In order to ensure that the quotas can be efficiently allocated and used, any speculative applications should be excluded, and it is furthermore necessary to allocate economically significant quantities. To this end the amount that any non-traditional importer may request should be restricted to a set volume. For the purposes of quota allocation, a time limit must be set for the submission of licence applications by traditional and other importers. 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.