Judgment of the General Court Third Chamber of 18 October 2023, Zippo Manufacturing and Others v Commission, T-402/20

• Date: 18 October 2023
• Year: 2023

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of the first stage of the safeguard mechanism, the quota system becoming effective on the date of

application of the contested regulation, and in the context of the second stage of that mechanism,

since the competent authorities are required to apply an above-quota tariff once the tariff quotas

have been exhausted.

Finally, the Court confirms that that regulation does not entail implementing measures with regard to

the applicant’s members. The production of the legal effects of the quota system does not depend on

any implementing measure. It follows that, before the tariff quota is exhausted, there are not any

implementing measures which the applicant’s members, whose legal situation is affected by the

establishment of the quota system, could challenge before the national courts.

As to the substance, the Court rejects, in the first place, the plea alleging infringement of Article 19 of

the Basic Safeguards Regulation,

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since the Commission did not make a manifest error of

assessment in concluding that the conditions for prolonging the safeguard measures under that

provision were satisfied.

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In the second place, the Court rejects the plea alleging manifest errors committed by the Commission

in the assessment of the European Union interest in prolonging the safeguard measure, since the

applicant has failed to demonstrate the existence of such errors.

In the light of those considerations, the Court dismisses the action in its entirety.

2. DEFENCE AGAINST TRADE BARRIERS

Judgment of the General Court (Third Chamber) of 18 October 2023, Zippo Manufacturing

and Others v Commission, T-402/20

Link to the full text of the judgment

Commercial policy – Regulation (EU) 2020/502 – Measures adopted by the United States on imports of

certain derivative aluminium and steel products – European Union decision to suspend equivalent trade

concessions and other obligations – Additional customs duties on imports of products originating in the

United States – Action for annulment – Standing to bring proceedings – Admissibility – Principle of good

administration – Right to be heard

In April 2020, in response to the imposition by the United States of America of an increase in the

custom duties on imports of certain derivative aluminium and steel products, the European

Commission considered that it was necessary to adopt measures to implement Regulation

No654/2014

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concerning the exercise of the Union’s rights for the application and enforcement of

international trade rules. After having sought the views of the relevant stakeholders pursuant to

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

p. 16).

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Under that provision, a safeguard measure may be extended if i t is determined that such prolongation is necessary to prevent or remedy

serious injury (Article 19(2)(a)) and if it is determined that there is evidence that Union producers are adjusting (Article 19(2)(b)).

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Regulation (EU) No 654/2014 of the European Parliament and of the Council of 15 May 2014 concerning the exercise of the Union’s rights for

the application and enforcement of international trade rules and amending Council Regulation (EC) No 3286/94 laying down Community

procedures in the field of the common commercial policy in order to ensure the exercise of the Community’s rights under international

trade rules, in particular those established under the auspices of the World Trade Organization (OJ 2014 L 189, p. 50).