EXCHANGE OF LETTERS between the European Economic Community and the Republic of Cyprus as regards imports into the Community of fresh cut flowers and flower buds originating in Cyprus

A. Letter from the Community

Sir,

1. Article 19 (5) of the Protocol laying down the conditions and procedures for the implementation of the second stage of the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus and adapting certain provisions of the Agreement provides for the progressive elimination of customs duties on imports into the Community of fresh cut flowers and flower buds falling within heading N° 06.03 A of the Common Customs Tariff, originating in Cyprus, subject to a limit of 50 tonnes.

2. For roses and carnations qualifying for this tariff dismantling, Cyprus undertakes to respect the price level on import into the Community as defined below:

- the price level on import into the Community must be at least equal to 85 % of the Community price level for the same products over the same periods,

- the Cypriot price level shall be determined by the registration of the prices of imported products, customs duties not deducted, on the representative Community import markets,

- the Community price level shall be based on producer prices registered on representative markets of the main producer Member States,

- for the analysis of Community producer prices and the import prices of Cypriot products, two types of roses shall be distinguished, those with large and with small flowers, and for carnations, the unifloral and multifloral types.

3. If, during two successive market days, for the same type of products and for at least 30 % of the quantities imported into the Community for which price quotations are available, the Cypriot price level is below 85 % of the Community price level, the preferential tariff shall be suspended.

4. The Community will restore the tariff preference after registering a Cypriot price level equal or superior to 85 % of the Community price level during two successive market days, or six successive working days in the absence of quotations for products originating in Cyprus.

5. If, over five to seven successive market days, the Cypriot price level fluctuates around 85 % of the Community price level and is below this limit for three days, the tariff preference shall be suspended for a period of six days. However, the preferential customs duty shall be restored by the Community if, during three successive market days, a Cypriot price level is registered equal or superior to that of the Community price level.

6. In order to put this concession into operation, I would be pleased if you could confirm the acceptance by the Government of Cyprus of the conditions mentioned in paragraphs 2, 3, 4 and 5.

Please accept, Sir, the assurance of my highest consideration.

On behalf of

the Council of the European Communities

B. Letter from the Republic of Cyprus

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'1. Article 19 (5) of the Protocol laying down the conditions and procedures for the implementation of the second stage of the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus and adapting certain provisions of the Agreement provides for the progressive elimination of customs duties on imports into the Community of fresh cut flowers and flower buds falling within heading N° 06.03 A of the Common Customs Tariff, originating in Cyprus, subject to a limit of 50 tonnes.

'2. For roses and carnations qualifying for this tariff dismantling, Cyprus undertakes to respect the price level on import into the Community as defined below:

- the price level on import into the Community must be at least equal to 85 % of the Community price level for the same products over the same periods,

- the Cypriot price level shall be determined by the registration of the prices of imported products, customs duties not deducted, on the representative Community import markets,

- the Community price level shall be based on producer prices registered on representative markets of the main producer Member States,

- for the analysis of Community producer prices and the import prices of Cypriot products, two types of roses shall be distinguished, those with large and with small flowers, and for carnations, the unifloral and multifloral types.

'3. If, during two successive market days, for the same type of products and for at least 30 % of the quantities imported into the Community for which price quotations are available, the Cypriot price level is below 85 % of the Community price level, the preferential tariff shall be suspended.

'4. The Community will restore the tariff preference after registering a Cypriot price level equal or superior to 85 % of the Community price level during two successive market days, or six successive working days in the absence of quotations for products originating in Cyprus.

'5. If, over five to seven successive market days, the Cypriot price level fluctuates around 85 % of the Community price level and is below this limit for three days, the tariff preference shall be suspended for a period of six days. However, the preferential customs duty shall be restored by the Community if, during three successive market days, a Cypriot price level is registered equal or superior to that of the Community price level.

'6. In order to put this concession into operation, I would be pleased if you could confirm the acceptance by the Government of Cyprus of the conditions mentioned in paragraphs 2, 3, 4 and 5.'

I have the honour to confirm the acceptance by the Government of Cyprus of the conditions mentioned in paragraphs 2, 3, 4 and 5 of your letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Government of the Republic of Cyprus