92001E2882

WRITTEN QUESTION E-2882/01

by Markus Ferber (PPE-DE) to the Commission

(22 October 2001)

Subject: Granting of tariff quota for the duty-free import of lawnmower engines

In 2000 and 2001 a tariff quota was available for European lawnmower manufacturers for the duty-free import of 1 200 000 lawnmower engines per year, tariff quota No 09.2976. The Commission does not intend to make a proposal to the Council for the granting of a tariff quota for 2002. This is because it has been rejected by one Member State, Italy.

This position has been adopted on the basis that Tecumseh Europe, an engine manufacturer based in Turin, meets the requirements of the European manufacturing market with its Italian engine production. Tecumseh claims to have sold 900 000 engines to date. Until the cut-off date, 19 September 2001, 1 117 291 engines had been imported from third countries. It is to be assumed that total demand will reach 2 400 000 engines by the end of the year.

Furthermore, lawnmowers can be imported duty-free as a finished product. Competitive disadvantages will thus arise for European lawnmower manufacturers if no provision is made for duty-free import of engines.

1. What action will the Commission take to stop German manufacturers of lawnmowers being placed at a disadvantage?

2. What is the Commission's position on the above situation?

Answer given by Mr Bolkestein on behalf of the Commission

(18 February 2002)

The Commission manages at present 64 autonomous tariff quotas and 980 autonomous tariff suspensions. These quotas and suspensions had been opened by Council Regulations based on proposals from the Commission in accordance with Article 26 (ex Article 28) of the EC Treaty and the Commission Communication concerning autonomous tariff suspensions and quotas(1). The Commission Communication sets out principles which Commission normally respects when preparing a proposal for the opening of an autonomous tariff suspension or quota.

1. In April 2001 one Member State lodged an opposition against the renewal of the autonomous tariff quota No 09.2976 for four-stroke petrol engines of a cylinder capacity (cc) not exceeding 250 cc for use in the manufacture of lawnmowers. It argued that the producer of the product concerned in the Community suffered severe economic difficulties from the duty free import of similar products. In weighing the arguments and evidence presented by interested Member States for and against the renewal of the tariff quota the Commission considered it not to be in the interest of the Community to renew the tariff quota No 09.2976.

Therefore, in accordance with principles set out in the Commission communication the Commission considered it inappropriate to propose to the Council to renew the tariff quota No 09.2976 for 2002.

2. The Commission considers that the application of Common Customs Tariff duties are the normal course of action when products are imported in the Community. Any relief from these duties by autonomous tariff quotas and suspensions shall be the exception to this rule. These exceptions shall therefore be limited to those cases where the loss of own resources for the Community and the increase of competition from imports for the Community industry is clearly outweighted by a possible stimulation of the economic activity within the Community, the improvement of the competitive capacity of the enterprise using imported goods and, in particular, the ability of the latter to create employment, modernise their structures, etc. As the information available to the Commission did not allow to conclude that these positive effects had been achieved since the first opening of this quota in the year 2000 the Commission considered it appropriate to restore the competitive situation for the enterprises using the Community products in relation to the companies using the imported products as it existed before the introduction of this measure.

However, the Commission intends to review its assessments of the situation in the first quarter of the year 2002.

(1) OJ C 128, 25.4.1998.