AGREEMENT in the form of an exchange of letters between the European Economic Community and the Republic of Finland concerning certain arrangements in agriculture

Oporto, 2 May 1992.

Sir,

I have the honour to refer to the discussions concerning trade arrangements for certain agricultural products between the Community and Finland which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that the results of these negotiations were as follows:

I. an arrangement concerning trade in cheese between the Community and Finland. The text of this arrangement is set out in Annex I to this letter;

II. an arrangement concerning trade in beef and pigmeat between the Community and Finland. The text of this arrangement is set out in Annex II to this letter;

III. tariff concessions granted by Finland to the Community. These concessions are set out in Annex III to this letter;

IV. tariff concessions granted by the Community to Finland on certain alcoholic beverages:

- from 1 January 1993, the Community shall abolish the import duty on vodka in bottles, falling within CN codes 2208 90 31 and ex 2208 90 53, originating in Finland and accompanied by a certificate of authenticity;

V. rules of origin for the purpose of implementing the abovementioned arrangements and concessions. These rules are set out in Annex IV to this letter.

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 Finland is in agreement with the contents of this letter.

On behalf of the Council of the European Communities

Oporto, 2 May 1992.

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 discussions concerning trade arrangements for certain agricultural products between the Community and Finland which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that the results of these negotiations were as follows:

I. an arrangement concerning trade in cheese between the Community and Finland. The text of this arrangement is set out in Annex I to this letter;

II. an arrangement concerning trade in beef and pigmeat between the Community and Finland. The text of this arrangement is set out in Annex II to this letter;

III. tariff concessions granted by Finland to the Community. These concessions are set out in Annex III to this letter;

IV. tariff concessions by the Community to Finland on certain alcoholic beverages:

- from 1 January 1993, the Community shall abolish the import duty on vodka in bottles, falling within CN codes 2208 90 31 and ex 2208 90 53, originating in Finland and accompanied by a certificate of authenticity;

V. rules of origin for the purpose of implementing the abovementioned arrangements and concessions. These rules are set out in Annex IV to this letter.

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 Finland is in agreement with the contents of this letter.'

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

For the Government of the Republic of Finland

ANNEX I

ARRANGEMENT concerning trade in cheese between the European Economic Community and the Republic of Finland

With the aim of fostering the harmonious development of trade in agricultural products, and taking into account the discussions which have taken place in the framework of the negotiations on an EEA Agreement, the European Economic Community and the Republic of Finland have agreed to conclude a new arrangement concerning their reciprocal trade in cheese, the provisions of this arrangement being as follows:

1. The import levies for the annual quantities of cheeses defined below shall be restricted to the following levels:

(a) Imports into the Community

Cheeses falling within HS code 0406, originating in Finland and accompanied by an approved certificate:

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(b) Imports into Finland

Cheeses falling within HS code 0406, originating in the Community and accompanied by an approved certificate:

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2. The Republic of Finland undertakes to take the necessary measures in order to guarantee that:

- the quantities exported from Finland to the European Economic Community (see point 1 (a)) are not exceeded,

- import licences are granted regularly and in such a way that imports from the European Economic Community can be realized within the quantities agreed (see point 1 (b)).

Finland and the Community shall ensure that the mutually granted benefits are not compromised by other import measures.

3. Finland and the Community undertake, each on its own behalf, to ensure that the prices practised by their exporters do not cause difficulties in the market of the importing country. In this context, particular attention shall be given to the prices of the 'Finlandia' cheese practised by the Finnish exporters which should not undercut those of the Emmentaler cheese on the Community market.

They agree, in this connection, to exchange at regular intervals price quotations and any other useful information concerning the market in domestic and imported cheeses.

If difficulties related to prices occur, consultations shall be held at the request of either Party as soon as possible with a view to agreeing on appropriate corrective action.

4. Both Parties may consult at any time on the functioning of the arrangement and, if necessary, modify it by mutual agreement, taking into account, in particular, development in prices, production, sales and consumption of cheeses in their respective markets.

In particular if, in imports into Finland and/or into the Community, the agreed quotas are reached during any quota year, the Parties shall enter into consultations at the request of either in order to examine the possibility of modifying the originally agreed import quantities.

5. This arrangement shall be without prejudice to the provisions of the arrangements between the European Economic Community and the Republic of Finland consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the Community, signed on 14 July 1986.

6. This arrangement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Finland.

7. This arrangement shall enter into force on the same date as the EEA Agreement.

Should that date not coincide with the beginning of the calendar year, the provisions referred to point 1 shall be applied pro rata temporis for the first year.

8. The mutual restraint arrangement between the European Economic Community and the Republic of Finland on trade in cheese, signed on 23 December 1985, shall lapse at the time of entry into force of this arrangement.

ANNEX II

ARRANGEMENT concerning trade in beef and pigmeat between the European Economic Community and the Republic of Finland

With the aim of fostering the harmonious development of trade in agricultural products, and taking into account the discussions which have taken place in the framework of the negotiations on an EEA Agreement, the European Economic Community and the Republic of Finland have agreed to conclude a bilateral arrangement regulating trade in beef and pigmeat between the Community and Finland as follows:

1. For the annual quantities of beef and pigmeat defined below, the import levies shall be reduced to the following levels:

(a) Imports into the Community

Pigmeat falling within HS code 0203, originating in Finland:

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(b) Imports into Finland

Beef falling within HS codes 0201 and 0202, originating in the Community and accompanied by an approved certificate:

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2. The Commission of the European Communities will administer the import quota of pigmeat provided for under point 1 (a) on a quarterly basis by a system of import licences.

3. Finland and the Community shall ensure that the mutually granted benefits are not compromised by other import measures.

4. Finland and the Community undertake, each on its own behalf, to ensure that the prices maintained by their exporters do not cause difficulties in the market of the importing country.

If difficulties related to prices occur, consultations shall be held at the request of either Party as soon as possible with a view to agreeing on appropriate corrective action.

5. Both Parties may consult at any time on the functioning of the arrangement and, if necessary, modify it by mutual agreement, taking into account, in particular, developments in prices, production, sales and consumption of beef and pigmeat in their respective markets.

In particular, if in the course of a quota year the quantities fixed for imports into the Community and/or into Finland are reached, both Parties shall enter into consultations at the request of either in order to examine the possibility of modifying the originally agreed import quantities.

6. This arrangement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Finland.

7. This arrangement shall enter into force on the same date as the EEA Agreement.

Should that date not coincide with the beginning of the calendar year, the provisions referred to in point 1 shall be applied pro rata temporis for the first year.

ANNEX III

TARIFF CONCESSIONS GRANTED BY THE REPUBLIC OF FINLAND TO THE EUROPEAN COMMUNITY

As from the date of the entry into force of the EEA Agreement, the Republic of Finland will abolish import duties for the products listed below originating in the European Community.

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ANNEX IV

RULES OF ORIGIN

1. 1. For the purpose of implementing the Agreement, a product shall be considered to be originating either in the Community or in Finland if it has been wholly obtained there.

2. The following shall be considered as wholly obtained either in the Community or in Finland:

(a) vegetable products harvested there;

(b) live animals born and raised there;

(c) products from live animals raised there;

(d) goods produced there exclusively from products specified in (a) to (c).

3. Packing materials and packing containers presented with a product therein shall not be included with this product for the purpose of determining whether it has been wholly obtained and it shall not be necessary to establish whether such packing materials or packing containers are originating or not.

2. Notwithstanding paragraph 1, the products mentioned in columns 1 and 2 of the list in the Appendix, obtained either in the Community or in Finland and incorporating materials which have not been wholly obtained there, shall also be considered as originating, provided that the conditions set out in column 3 concerning working or processing carried out on such materials have been fulfilled.

3. 1. The preferential treatment provided for under the Agreement applies only to products which are transported directly from the Community to Finland or from Finland to the Community without passing through the territory of another country. However, products constituting one single consignment may be transported through territory other than that of the Community and Finland with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the products have remained under the surveillance of the customs authorities in the country of transit or of warehousing and that they have not undergone operations other than unloading, reloading or any other operation designed to preserve them in good condition.

2. Evidence that the conditions referred to in point 3.1 have been fulfilled shall be supplied to the customs authorities of the importing country in accordance with Article 13 (2) of Protocol 4 to the EEA Agreement.

4. 1. Originating products within the meaning of this Annex shall, on importation into the Community or Finland, benefit from the Agreement upon submission of either a movement certificate EUR.1 or an invoice declaration, issued or made out in accordance with Title V of Protocol 4 to the EEA Agreement.

2. The documents referred to in point 4.1 shall clearly indicate the origin of the products concerned by using the words 'Community' or 'Finland', in one of the languages in which the Agreement is drawn up, followed by the letters 'AGRI' inserted between brackets. In the case of the invoice declaration, this indication shall replace the reference to 'EEA preferential origin' in the text of the declaration given in Appendix IV of Protocol 4 to the EEA Agreement.

3. Notwithstanding points 4.1 and 2, the certificates respectively referred to in Section IV of the exchange of letters for vodka, and in Annex I for cheese shall be accepted as valid proof of origin within the meaning of this Agreement without it being necessary to submit a movement certificate EUR.1 or an invoice declaration.

5. The provisions of Titles IV (drawback or exemption), V (proof of origin) and VI (arrangements for administrative cooperation) of Protocol 4 to the EEA Agreement shall apply mutatis mutandis. As far as the provisions of Title IV are concerned, it is understood that the prohibition of drawback of, or exemption from, customs duties contained in these provisions shall apply only in respect of materials which are of the kind to which the EEA Agreement applies.

Appendix

List of products, referred to in point 2, subject to conditions other than the wholly obtained criterion

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