ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)97
Vol.1977/0041

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)97final
Brussels,23March1977
Draft
ACP-EECCouncilofMinistersDecision
,■.
derogatingfromtheconceptoforiginatingproductsinorder
totakeintoaccountthespecialsituationoftheRepublic
ofMalawiwithregardtocertainitemsoffishingtackle
(fishingflies)
(submittedtotheCouncilbytheCommission)
COM(77)97final

EXPLANATORY MEMORANDUM
Submissionoftherequest
Byletterof6July1976,theGovernmentoftheRepublicofMalawi
forwardedtotheCommissionthroughitsCharged'AffairesinBrussels
anapplication requestingtheinsertioninListBofheadingNo
ex97.07:fishingflies,sothatthemanufacture ofafishingfly
froma"non-originating "fish-hookfallingwithinthesametariff
headingmaybeconsidered asconferringtheoriginofthecountryof
manufacture tothefinishedproduct..
Artificialfliesaremadebyassemblingfeathers,hairsorspangles,
onafish-hookbymeansofathread.Malawiimportsvirtuallyallthe
productsneededforthemanufacture ofartificialfliesfromother
countries,sothatfortheoperationsinvolvedtoconferthestatus
oforiginating productonafinishedproduct,theymusteitherentail
achangeinthetariffheadingofthecomponents,orbeincludedin
ListBannexedtoProtocolNo1totheLom4Convention.Althoughthe
productsusedto"dress"thefish-hookdoinfactchangetheirtariff
heading,thefislvhookitselfdoesnot,sinceartificialfishingflies
andfish-hooksareclassified underthesametariffheading,namely
No97.07,andthefliesobtainedtonotthereforeacquirethestatus
oforiginating products.Thereonlyremainsthepossibility covering
themanufacture ofthesefliesinListB.
Anexamination ofthecasebytheCommission andtheMemberStates
showedthatalthoughMalawiimportedfish-hooks fromJapan,Norway
andSweden,itwasnevertheless possibletoobtainsupplieswithin
theCommunity.

-2-
ι
Consequently,theCommissionandtheMemberStatesfeltthattherewas
nocaseformakingachangetoListB.
ThispositionwasexplainedtotheACPStatesduringthemeetingofthe
CustomsCooperation Committeeon17December1976,atwhichtheACP
spokesmanthenstatedthatMalawiwouldaccordinglyreviewitssources
offish-hooksuppliesandthatintheimmediatefutureatemporary
derogationunderArticle27ofProtocolNo1totheLom6Convention
wouLdenableittomakethenecessaryinvestigations .
litOpinionofCommissiondepartments
Thisindustry,whichdoesnotneedlarge-scaleinvestment,employsat
presentabout200peopleanditsexportscametoapproximately
75000EUAin1975,whichMalawihopestoincreasesoonto225000EUA.
Thevalueaddedisconsiderable .Accordingtoinformationsuppliedby
•theproducers,thepriceofthebasicmaterialsislessthanathird
ofthevalueofthefinishedproductandifnon-originating products
alonearetakenintoaccount,theirshareofthefinishedproductfalls
tolessthanaquarter.Inordertoavoidpossibledeflectionoftrade
andonthebasisoffiguressupplied,amaximumcontentofnon-originatinc ,
elementscouldbeimposed,andthiscouldbefixedat25%inorderto
tocreateanyproblemsforthemanufacturers concerned.
Asstatedearlier,thereareindustrieswithintheCommunitycapableof
supplyingfish-hookssothattheconditionsrequiredforcomplyingwith
thedefinitionoftheconceptoforiginatingproductsbyapplication
oftherulesoncumulation,asspecifiedinProtocolNo1totheLom6
Convention,wouldbemet.
However,themanufacturers concernedshouldbegivensometimetomake
thenecessarybusinesscontactsandtoconcludesupplycontracts.For
thisreasonatemporaryderogation,timitedtooneyear,shouldbe
grantedtoMalawi.
TheCommissionthereforerecommendsthefollowingdraftdecision.

Oraft ACP-EEC Council ofMinisters Decision
theconcept oforiginating products/77derogating from
totake into account the
special situation oftheRepublic ofMalawi with regard tocertain items
offishing tackle (fishing flies )
THEACP-EEC COUNCIL OFMINISTERS ,
Having regard totheACP-EEC Convention ofLome ,signed on28February 1975 ,
hereafter called "theConvention ",and inparticular Article 9(2)thereof .
Whereas Article 27ofProtocol No1totheConvention ,concerning the
definition oftheconcept of"originating products "andmethods ofadmini­
strative cooperation ,makes provision forderogations from therules oforigin
inparticular tofacilitate thedevelopment ofexisting industries or
thecreation ofnewindustries ;
Whereas theACPStates have submitted arequest from theGovernment of
theRepublic ofMalawi for aone-year derogation from thedefinition set
out intheProtocol foritems offishing tackle manufactured inthat State ;
Whereas ,inaccordance with Article 27ofProtocol No1,theCustoms
Cooperation Committee hasadopted areport ontherequest referred to
above ;
Whereas inorder totake into account thespecial situation oftheRepublic
ofMalawi andtoenable theindustrial sector concerned todevelop the
industry concerned andtoseek newsources ofsupply fortherawmaterials
needed inthemanufacture oftheitems referred toabove ,derogation should
accordingly bemade ,foramaximum ofoneyear ,from thedefinition set
outinProtocol No1totheConvention ;
Whereas anypossible deflection oftrade should beavoided andthis aim
canbeachieved byfixing amaximum percentage ofnon-originating products
incorporated inthefinished product ,,

2-
-HASDECIDED:
Article1 ■.
BywayofderogationfromtheprovisionsofProtocolNo1,itemsoffishing
tacklemanufactured inMalawiandfallingwithintariffheadingNoex97.07
"fishingflies",shallbeconsideredasoriginatinginMalawi,providedthat
thevalueofthenon-originating fish-hooks,usedfortheirmanufacture,falling
withintariffheadingHoex97»07»doesnotexceed25$ofthevalueofthe
finishedproduct. > ■
Article2
Themovementcertificates EUR1issuedpursuanttothisDecisionshall
"bearoneofthefollowingendorsements :
"OriginatingproductsbyvirtueofdecisionNo/77oftheACP-EEC
CouncilofMinisters"
\
-"Marchandisesoriginairesenvertudeladécisionno/77duConseil
desMinistres ACP-CEE"
-"Ursprungwaren gemässBeschlussNr«/77desAKP-EWGMinisterrates "
-"Mercioriginarieinvirtùdelladecisioneno/77delConsiglio
deiMinistriACP-CEE"
-"Goederenvanoorspronguithoofdevanbesluitnr./77vande
ACS-EEGRaadvanMinisters"
•Varermedoprindelsestatus ihenholdtilAVS-EØFMinisterrådets afgørelse
nonr\
Thisendorsementshallbeenteredundertheheading"Remarks.
Article3
Thecompetentauthorities oftheRepublicofMalawishallforwardtothe
Commissioneverythreemonthsastatementofthequantitiesinrespectof
whichmovementcertificates EUR.1havebeertissuedpursuanttothis
Decision,indicatingtheMemberStatesofdestination.

Article4
TheACPStates,theMemberStatesandtheCommunityshall,eachonefor
itspart,takethemeasuresrequiredforimplementation ofthisDecision.
r
Article5
ThisDecisionshallenterintoforceon1June1977.
Itshallapplyuntil31May1978-
•
Doneat_ FortheACP-EECCouncilofMinisters
ThePresident