AGREEMENT

in the form of an Exchange of Letters between the European Economic Community and the Republic of Austria concerning non-agricultural and processed agricultural products not covered by the Agreement

Brussels, 14 July 1986

Sir,

I have the honour to refer to the Additional Protocol to the Agreement between the European Economic Community and the Republic of Austria consequent upon the accession of the Kingdom of Spain and the Portuguese Republic to the Community, signed this day, and to the negotiations which have taken place between the Community and the Republic of Austria on transitional customs arrangements to be applied to trade between Spain and Portugal, on the one hand, and Austria on the other, in respect of non-agricultural and processed agricultural products not covered by the abovementioned Agreement.

For the products listed in Annexes I and II, I hereby confirm that the Kingdom of Spain and the Portuguese Republic will gradually eliminate the difference which exists between the basic duty as defined in accordance with Articles 4 and 10 of the Additional Protocol and the Common Customs Tariff so as to attain by 1 January 1993 the duty stipulated in that Tariff. This elimination shall for Spain take place in steps of 10 %, 12,5 %, 15 %, 15 %, 12,5 %, 12,5 %, 12,5 % and 10 %, respectively. For Portugal the elimination shall take place in steps of 10 %, 10 %, 15 %, 15 %, 10 %, 10 %, 15 % and 15 %, respectively.

From 1 March 1986, in the case of tariff headings in respect of which the basic duties do not differ more than 15 % in either direction from the duties in the Common Customs Tariff or the ECSC unified tariff, these latter duties shall be applied by the Kingdom of Spain.

From 1 March 1986, the Portuguese Republic shall apply a duty reducing by 10 % the difference between the basic duty and the duty in the Common Customs Tariff. From 1 January 1987, in the case of tariff headings in respect of which the basic duties do not differ by more than 15 % in either direction from the duties in the Common Customs Tariff or the ECSC unified tariff, these latter duties shall be applied by Portugal.

The Republic of Austria will proceed likewise in respect of the products listed in Annexes III and IV originating in Spain or Portugal, respectively, so as to attain by 1 January 1993 the duty stipulated in the Austrian Customs Tariff.

This Exchange of Letters shall be approved by the Contracting Parties in accordance with their own procedures.

I should be obliged if you would confirm that the Government of the Republic of Austria is in agreement with the above.

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

On behalf of the Council of the

European Communities

Brussels, 14 July 1986

Sir,

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

'I have the honour to refer to the Additional Protocol to the Agreement between the European Economic Community and the Republic of Austria consequent upon the accession of the Kingdom of Spain and the Portuguese Republic to the Community, signed this day, and to the negotiations which have taken place between the Community and the Republic of Austria on transitional customs arrangements to be applied to trade between Spain and Portugal, on the one hand, and Austria on the other, in respect of non-agricultural and processed agricultural products not covered by the abovementioned Agreement.

For the products listed in Annexes I and II, I hereby confirm that the Kingdom of Spain and the Portuguese Republic will gradually eliminate the difference which exists between basic duty as defined in accordance with Articles 4 and 10 of the Additional Protocol and the Common

Customs Tariff so as to attain by 1 January 1993 the duty stipulated in that Tariff. This elimination shall for Spain take place in steps of 10 %, 12,5 %, 15 %, 15 %, 12,5 %, 12,5 %, 12,5 % and 10 %, respectively. For Portugal the elimination shall take place in steps of 10 %, 10 %, 15 %, 15 %, 10 %, 10 %, 15 % and 15 %, respectively.

From 1 March 1986, in the case of tariff headings in respect of which the basic duties do not differ more than 15 % in either direction from the duties in the Common Customs Tariff or the ECSC unified tariff, these latter duties shall be applied by the Kingdom of Spain.

From 1 March 1986, the Portuguese Republic shall apply a duty reducing by 10 % the difference between the basic duty and the duty in the Common Customs Tariff. From 1 January 1987, in the case of tariff beadings in respect of which the basic duties do not differ by more than 15 % in either direction from the duties in the Common Customs Tariff or the ECSC unified tariff, these latter duties shall be applied by Portugal.

The Republic of Austria will proceed likewise in respect of the products listed in Annexes III and IV originating in Spain or Portugal, respectively, so as to attain by 1 January 1993 the duty stipulated in the Austrian Customs Tariff.

This Exchange of Letters shall be approved by the Contracting Parties in accordance with their own procedures.

I should be obliged if you would confirm that the Government of the Republic of Austria is in agreement with the above.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

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

For the Government of the

Republic of Austria

SPA:L666UMBE01.95

FF: 6UEN; SETUP: 01; Hoehe: 508 mm; 77 Zeilen; 5569 Zeichen;

Bediener: MARL Pr.: C;

Kunde: L 666

ANNEX I

SPAIN

>TABLE>

ANNEX II

PORTUGAL

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ANNEX III

SPAIN

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22. 11. 86

Official Journal of the European Communities

1. If Austria's customs tariff is amended, Austria will, with due regard for the preferences established by this exchange of letters, adapt the above list of goods to the new customs tariff descriptions and communicate the amended list to the Joint Committee.

2. The special duties referred to in this exchange of letters are charged on imports into Austria of products originating in Spain within the meaning of Article 4 of Protocol N° 3 to the Free Trade Agreement between the Republic of Austria and the European Economic Community.

3. To this end, the proof of origin given in box 7 'Remarks' pursuant to Protocol N° 3 to the Free Trade Agreement between the Republic of Austria and the European Economic Community must bear the following inscription: 'Wholly obtained in Spain', 'entièrement obtenus en Espagne', 'vollstaendig erzeugt in Spanien'.SPA:L666UMBE04.96

FF: 6UEN; SETUP: 01; Hoehe: 514 mm; 74 Zeilen; 2958 Zeichen;

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Kunde: Tab engl. 04

ANNEX IV

PORTUGAL

>TABLE>

1. If Austria's customs tariff is amended, Austria will, with due regard for the preferences established by this exchange of letters, adapt the above list of goods to the new customs tariff descriptions and communicate the amended list to the Joint Committee.

2. The special duties referred to in this exchange of letters are charged on imports into Austria of products originating in Portugal within the meaning of Article 4 of Protocol N° 3 to the free trade Agreement between the Republic of Austria and the European Economic Community.

3. To this end, the proof of origin given in box 7 'Remarks' pursuant to Protocol N° 3 to the free trade Agreement between the Republic of Austria and the European Economic Community must bear the following inscription: 'Wholly obtained in Portugal', 'entièrement obtenus au Portugal' 'vollstaendig erzeugt in Portugal'.

SPA:L666UMBE05.96

FF: 6UEN; SETUP: 01; Hoehe: 517 mm; 96 Zeilen; 3598 Zeichen;

Bediener: MARL Pr.: C;

Kunde: 37761 Montan England