THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to the instruments establishing the common organization of agricultural markets and the instruments concerning processed agricultural products, in particular in so far as they provide for derogation from the general principle that quantitative restrictions or measures having equivalent effect may be replaced solely by the measures provided for in the said instruments,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament, (1)

Whereas the common commercial policy should be based on uniform principles; whereas Council Regulation (EC) No 518/94 of 7 March 1994 on common rules for imports and repealing Regulation (EEC) No 288/82 (2) is an important part of the policy;

Whereas due account was taken when Regulation (EC) No 518/94 was adopted from the Community's international obligations, particularly those deriving from Article XIX of the General Agreement on Tariffs and Trade (GATT);

Whereas the completion of the Uruguay Round has led to the foundation of the World Trade Organization (WTO); whereas Annex 1A to the Agreement establishing the WTO contains inter alia the General Agreement on Tariffs and Trade 1994 (GATT 1994) and an Agreement on Safeguards;

Whereas the Agreement on Safeguard meets the need to clarify and reinforce the disciplines of GATT 1994, and specifically those of Article XIX; whereas that Agreement requires the elimination of safeguard measures which escape those rules, such as voluntary export restraints, orderly marketing arrangements and any other similar import or export arrangements;

Whereas the Agreement on Safeguards also covers ECSC products; whereas the common rules for imports, especially as regards safeguard measures, therefore also applies to those products without prejudice to any possible measures to apply an agreement specifically concerning ECSC products;

Whereas in the light of these new multilateral rules the common rules for imports should be made clearer and if necessary amended, particularly where the application of safeguard measures is concerned;

Whereas the starting point for the common rules for imports is liberalization of imports, namely the absence of any quantitative restrictions;

Whereas the Commission should be informed by the Member States of any danger created by trends in imports which might call for Community surveillance or the application of safeguard measures;

Whereas in such instances the Commission should examine the terms and conditions under which imports occur, the trend in imports, the various aspects of the economic and trade situations and, where appropriate, the measures to be applied;

Whereas if Community surveillance is applied, release for free circulation of the products concerned should be made subject to presentation of an import document meeting uniform criteria; whereas that document should, on simple application by the importer, be endorsed by the authorities of the Member States within a certain period but without the importer thereby acquiring any right to import; whereas the document should therefore be valid only during such period as the import rules remain unchanged;

Whereas the Member States and the Commission should exchange the information resulting from Community surveillance as fully as possible;

Whereas it falls to the Commission and the Council to adopt the safeguard measures required by the interests of the Community; whereas those interests should be considered as a whole and should in particular encompass the interest of Community producers, users and consumers;

Whereas safeguard measures against a Member of the WTO may be considered only if the product in question is imported into the Community in such greatly increased quantities and on such terms or conditions as to cause, or threaten to cause, serious injury to Community producers of like or directly competing products, unless international obligations permit derogation from this rule;

Whereas the terms 'serious injury', 'threat of serious injury' and 'Community producers' should be defined and more precise criteria for determining injury be established;

Whereas an investigation must precede the application of any safeguard measure, subject to the reservation that the Commission be allowed in urgent cases to apply provisional measures;

Whereas there should be more detailed provisions on the opening of investigations, the checks and inspections required, access by exporter countries and interested parties to the information gathered, hearings for the parties involved and the opportunities for those parties to submit their views;

Whereas the provisions on investigations introduced by this Regulation are without prejudice to Community or national rules concerning professional secrecy;