21.11.2003 Official Journal of the European Union L 303/3 COMMISSION REGULATION (EC) No 2044/2003 of 20 November 2003 establishing administrative procedures for the second 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 0 & () (9 () (9 () Council Regulation (EC) No 427/2003 (}), as last amended by Regulation (EC) No 1985/2003 (), sets forth annual quantitative quotas for certain products originating in the People's Republic of China listed in Annex [ to that Regulation. The provisions of Regulation (EC) No 520/94 are applicable to those quotas. In view of the enlargement of the European Community on 1 May 2004, the quotas set forth in Annex I to Council Regulation (EC) No 427/2003 have been increased by Council Regulation (EC) No 1985/2003. Given that on 1 May 2004 the European Community will be enlarged, it is appropriate to allocate the 2004 quota in two tranches, the first one from January to April 2004 to importers in the current Member States and the second one from May to December 2004 to importers in all countries that will be Member States from May 2004 onwards. Commission Regulation (EC) No 1351/2003 () estab- lished administrative procedures for the first tranche of the 2004 quantitative quotas for certain products origi- nating in the People's Republic of China. This Regulation shall allocate the quotas relating to quantities for May to December 2004. 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. L 66, 10.3.1994, p. 1. L 122, 16.5.2003, p. 1. L 65, 8.3.2003, p. 1. L 295, 13.11.2003, p. 43. L 192, 31.7.2003, p. 8. L 87, 31.3.1994, p. 47. L 131, 1.6.1996, p. 47. ) 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 period. 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 adminis- tering the second tranche of the 2004 quotas should accordingly be adopted before May 2004. 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. 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 the traditional importers in the Community in the previous Regulation on the adminis- tration of these quotas cannot be updated. The years 2000 and 2001 were characterised by certain distor- tions, 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. In 2002, there was a significant increase in applications by non- traditional importers from United Kingdom companies to other Member States suggesting an effort to circum- vent 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 representative of the normal trend of trade flows in the products in question imported by the importers in the Community. Traditional importers in the Commu- nity must, therefore, prove that they have imported products originating in the People's Republic of China and covered by the quotas in question in the years 1998 or 1999. The years 2001 and 2002 are the most recent years representative of the normal trend of trade flows in the products in question imported by importers in the acceding States. Given that the large majority of impor- ters in the acceding States were not subject to import restrictions and therefore were under no legal require- ment to keep import documents for both 1998 and 1999, the provision of evidence concerning 1998 and