Tariffs on grain imports

SUMMARY OF:

Regulation (EU) No 642/2010 on rules of application (cereal sector import duties) for Regulation (EC) No 1234/2007

WHAT IS THE AIM OF THE REGULATION?

Regulation (EU) No 642/2010 sets out rules applying to variable import duties on high quality wheat, durum wheat, rye, maize and sorghum.

KEY POINTS

Tariff calculation

The import tariffs applied to the following cereal sector products (designated by their respective combined nomenclature, or CN code) are calculated daily by the European Commission.
- CN codes 1001 11 00 and 1001 19 00 (durum wheat);
- CN code ex 1001 91 20 (common wheat seed);
- CN code ex 1001 99 00 (high-quality common wheat other than seed);
- CN codes 1002 10 00 and 1002 90 00 (rye);
- CN code 1005 10 90 (maize (corn) seed other than hybrid);
- CN code 1005 90 00 (maize other than seed);
- CN codes 1007 10 90 and 1007 90 00 (grain sorghum, other than hybrids for sowing).
The tariffs applied are equal to the intervention price at the time of importation (fixed at €101.31 per tonne), increased by 55% and minus the import price, which is based on the cost, insurance and freight (CIF) price, i.e. the price delivered at the border of the importing country.
The import duty applied is an average of the import duties calculated during the previous 10 working days. If this average differs by more than €5 per tonne from one day to the next, the Commission determines the new import duty.
Duty may not exceed the conventional duty rates* based on the combined nomenclature, the tool used to classify goods when they are declared to customs in the European Union (EU). Representative CIF import prices are regularly updated.
For wheat and maize imports, the representative CIF price comprises three elements: its price on a world reference market, plus the cost of freight to a US export port (US Gulf or US Great Lakes/Duluth) plus the cost of freight between the US port and Rotterdam.
The representative CIF import prices for high quality durum wheat, durum wheat seed and common wheat seed is the price calculated for high quality common wheat.
The representative CIF import price for medium quality durum wheat and low quality durum wheat is the price calculated for high quality common wheat, to which a discount of €10 per tonne applies for medium quality durum wheat and a discount of €30 per tonne for low quality durum wheat.
The representative CIF import price for sorghum other than seed, sorghum seed falling within CN code 1007 10 90, rye other than seed, rye seed and maize seed falling within CN code 1005 10 90 is the price calculated for maize other than seed.

Tariff reductions

The following tariff reductions apply to the fixed import duties.

A tariff reduction of €3 per tonne if the port of unloading in the EU is located in the Mediterranean (beyond the Strait of Gibraltar) or Black Sea and if goods arrive via the Atlantic Ocean or via the Suez Canal.
A tariff reduction of €2 per tonne if the port of unloading in the EU is located on the Atlantic coast of the Iberian Peninsula, Ireland, Denmark, Estonia, Latvia, Lithuania, Poland, Finland or Sweden and if the goods arrive via the Atlantic Ocean.
A tariff reduction of €24 per tonne on flint maize meeting certain specifications. Within 6 months from the date of acceptance of entry for free circulation, it must be processed into prepared foods obtained by swelling or roasting, groats or meal, or worked grains (hulled, pearled, sliced or kibbled).

Security cautions

For high-quality common wheat and durum wheat, importers will normally lodge a security (€95 per tonne for common wheat) with the competent authority on the date of acceptance of the declaration of release for free circulation, except where that declaration is accompanied by an official certificate of conformity.

Repeal

Regulation (EU) No 642/2010 repeals Regulation (EC) No 1249/96.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 10 August 2010.

BACKGROUND

For more information, see:

Cereals, oilseeds, protein crops and rice (European Commission)
Legal basis for cereals, oilseeds and protein crops, and rice sectors (European Commission).

KEY TERMS

Conventional duty rates. The EU tariff commitments in the World Trade Organization, and some EU autonomous duties.

MAIN DOCUMENT

Commission Regulation (EU) No 642/2010 of 20 July 2010 on rules of application (cereal sector import duties) for Council Regulation (EC) No 1234/2007 (OJ L 187, 21.7.2010, pp. 5–22).

Successive amendments to Regulation (EU) No 642/2010 have been incorporated into the original text. This consolidated version is of documentary value only.

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