The Government launched a consultation on 21 October 2022 on options for tariff quota administration for garlic imported from China. The consultation has now closed and the Government aims to communicate a decision on the future administration of the tariff rate quota for garlic imported from China by the end of the week commencing 27 February 2023.

Earlier this year, the Government concluded negotiations with China under Article 28 of the General Agreement on Tariffs and Trade. In these negotiations the UK is using historic trade data to ensure that the tariff rate quota volumes in our World Trade Organization Goods Schedule provide continuity for traders. The upcoming change has been made on this basis and therefore is not expected to affect the price of imported garlic from China.

Garlic can be imported into the EU under two types of quota:

annual non-preferential tariff quota: under which the garlic can be imported at a reduced rate of customs duty. Whilst the ad valorem rate of duty of 9.6% is payable, the specific duty of €1200 per tonne is not. The quota is divided into three parts, with annual quotas in tonnes: Argentina: 19,147; China: 33,700; and all other third (non-EU) countries: 6,023; and

preferential first come first served annual tariff quota: The countries benefiting from nil preferential rates of duty under this quota are Chile, Egypt and Morocco. Lebanon benefits from a reduced rate of duty under a preferential tariff quota.

Under the EU’s preferential trading arrangements and agreements, nil preferential rates of customs duty are available for imports of chicken eggs with:

the African, Caribbean and Pacific Countries; the Overseas Countries and Territories; Albania; Andorra; Bosnia-Herzegovina; Croatia; Egypt; Former Yugoslavia Republic of Macedonia; Israel; Jordan; Lebanon; Kosovo; Moldova; Montenegro; The Occupied Palestinian Territory; San Marino; Serbia; South Africa; and South Korea.

Nil preferential rates of duty are also available for chicken eggs originating in the Least Developed Countries (LDCs) in the EU’s Generalised System of Preferences (GSP). In order to benefit from these nil rates of duty, the eggs concerned must meet the relevant preferential

rules of origin, which require that the eggs must be wholly produced in the preference receiving country concerned.

The powers to establish tariffs/quotas for garlic and chicken eggs are set down in Council Regulation 1234/07 (Part III—Trade with third countries, Chapter II Imports). However, the actual rates are set as part of trade agreements.