Trade arrangements for processed agricultural products

 

SUMMARY OF:

Regulation (EU) No 510/2014 — trade arrangements applicable to certain goods resulting from the processing of agricultural products

WHAT IS THE AIM OF THIS REGULATION?

It establishes the trade regime for non-agricultural food and drink items made from agricultural products.

The regulation repeals Regulation (EC) No 1216/2009 and Regulation (EC) No 614/2009.

KEY POINTS

What are processed agricultural products (PAPs)?

They are non-agricultural food and drink items made out of agricultural products. The regulation contains a list of PAP goods. The main product groups include:

• processed dairy products;
• frozen fruit and vegetables;
• non-alcoholic beverages and all alcoholic beverages except wine.

Scope

The regulation covers trade arrangements governing import duties on the one hand, and rules governing the payment of export refunds on the other.

Import duties

• Import duties on PAPs include an industrial element (ad-valorem duty*) and an agricultural element (reflecting the tariff applicable to the agricultural ingredients).
• Products such as spirits, processed fruit and vegetables, pectic substances (a group of polysaccharides made up primarily of sugar acids) and tobacco products, bear an ad-valorem duty or a specific duty (per quantity).
• Several particular regimes apply for other products.

Export refunds

• EU exporter may be granted export refunds when exporting basic agricultural products (sugar, eggs, cereals, rice and dairy products) in the form of PAPs to non-EU countries.
• Refunds aims to prevent such exporters from being penalised for the price they must pay for their supplies within the EU because of common agricultural policy subsidies.
• They should only cover the difference between the price of an agricultural product on the EU market and on the world market.
• Since 2014, export refunds may only be granted in cases of major market disturbance, caused by a significant fluctuation in price or the threat thereof.
• The EU uses a refund certificate system in order to comply with international rules which limit the amount of export refunds paid for PAPs.
• The certificate system allows exporters to know in advance whether they are able to claim a refund.
• Small exporters, with refund request of less than €200 000 within a budget year, do not need a certificate.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 9 June 2014.

BACKGROUND

For more information, see:

• Trade in processed agricultural products (European Commission).

KEY TERMS

MAIN DOCUMENT

Regulation (EU) No 510/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216/2009 and (EC) No 614/2009 (OJ L 150, 20.5.2014, pp. 1-58)

RELATED DOCUMENTS

Regulation (EU) 2015/478 of the European Parliament and of the Council of 11 March 2015 on common rules for imports (OJ L 83, 27.3.2015, pp. 16-33)

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, pp. 671-854)

Successive amendments to Regulation (EU) No 1308/2013 have been incorporated into the original document. This consolidated version is of documentary value only.

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, pp. 1-101)

See consolidated version

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 (OJ L 303, 31.10.2012, pp. 1-82)

See consolidated version

last update 05.12.2017