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COM(77)313
Vol.1977/0104

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Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
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Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
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InÜbereinstimmung mitderVerordnung (EWG, Euratom) Nr.354/83 desRates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI. L43vom 15.2.1983,
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COM(77)313 final
Brussels,-ViJuly1977
Proposalfors
COUNCILDIRECTIVE
ontheharmonization ofprovisionslaiddownbylaw,
regulationoradministrative actioninrespectof
standardexchangeofgoodsexportedforrepair
(submittedtotheCouncilbytheCommission )
C0MC77)313final

EXPLANATION
1.Atthetime when th©Counoil adopted Directive T6/11S/eS0ontheharmonisation
ofprovisions laid down "bylaw ,regulation oradministrative action inrespect
ofoutward processing ,theGerman delegation had thefollowing statement
written into the Council 'sofficial minutes :
'•The German delegation starts from the principle that the
Commission will ,assoon aspossible ,submit totheCouncil
aproposal aimed atharmonising provisions laid down bylaw ,
regulation oradministrative action forrepair work carried
outwithin theframework ofoutward processing arrangements
insofar asthese provisions concern simplifications with
respect toboth thegranting andimplementation ofthe system
ofequivalent compensation ("Standard exchange ")."
This statement was occasioned bythe fact that thebenefit ofoutward
processing arrangements may only begranted when itispossible for the
competent authorities toidentify ,inthe compensating products ,the goods
which were exported (Article 4»paragraph 3)»andalso bythefact that in
thecase ofgoods exported forrepair itiseconomically justifiable to
allow recourse totheprinciple known as"equivalent compensation ".
2.Thus thepresent proposal for adirective onthe customs arrangements for
standard exchange provides for theimportation ,with total orpartial relief
from import duties ,ofreplacement products taking theplace ofgoods ex­
ported outside theCommunity 'scustoms territory forrepair ,including being
restored totheir original condition andbeing put inworking order ,However ,
thebenefit ofthese arrangements cannot begranted when theexported goods
arenot inone ofthe situations provided for inArticle 9paragraph 2of
theTreaty ,nor togoods subject tothe common agricultural policy ortothe
specific arrangements applicable ,pursuant toArticle 235oftheTreaty ,to
certain goods resulting from theprocessing ofagricultural products .
Thereplacement products andtheexported products must full under the same
tariff sub-heading ,beofthe same commercial quality andpossess the same
technical characteristics .Moreover ,iftheexported goods have been used
before exportation ,thereplacement products must also have been used ,save
where thecircumstances justify aderogation from this rule (Article 4)»
3.Thearrangements forstandard exchange aresubject torules identical to
those laid down byCouncil Directive 76/119/EEC ,except forcertain special
provisions setout inthepresent proposal for adirective .Apart from
Article 4,mentioned above ,themost important provisions arethefollowing :
Article 3:
This article provides that thecompetent authorities mayallow thereplacement
products tobeimported before thegoods toberepaired areexported ;this
prior importation requires theprovision ofaguarantee covering the import
duties ,tobedischarged atthetime when thegoods forrepair areexported .
Article 5:-
This Article stipulates that the claimant must lodge his request for
authorisation before theexportation ofthegoods ortheprior importation
ofthereplacement products ;however ,ifthegoods have been exported under
anauthorisation f6routward processing ,thebenefit ofstandard exchange
mayberequested atanytime uptothemoment when thereplacement products
are imported .
/

Article 5further provides ,inparagraph 3,that thebenefit ofstandard
exchange shall herefused bythecompetent authorities when recourse to
such arrangements would have theeffect ofconferring anunjustified
advantage asregards relief from import duties .This provision will enable
thecompetent authorities towithhold thebenefit ofthese arrangements
inanycase where differential taxation isnot sufficient toensure the
desired tariff protection .Atthe time when theproposal wasbeing drawn
updiscussions with delegations from theMember States demonstrated the
difficulty oflaying down with anygreater precision thecircumstances
which may justify thebenefit ofsuch arrangements being withheld .
Thefollowing example should illustrate theusefulness ofthis provision :
Example :Theclaimant seeks permission toexport his old
American carandtoimport ,with thebenefit of
standard exchange ,amore recent car ofthe same
make .
Inacase such asthis ,where thetransaction could hedescribed asa
"purchase with part-exchange ",Article 5paragraph 3isessential to
enable the authorities towithhold these arrangements .
TheCommission intends toproceed toanexamination ofMember States'
experiences inrespect ofthepractical implementation ofthis provision
once the directive has been inforce for afew months .
Article 6
Inthis article the time limits for thecompletion ofthevarious standard
exchange operations are set out .Itshould benoted that thenormal time-
limit (6months with thepossibility ofrenewal forafurther 6months )
corresponds tothetime-limit provided forbytheproposal foraCouncil
regulation (EEC)inrespect oftherepayment orremission ofimport duties
orexport duties (l)which isstill being considered within theCouncil .
Article 7
Thechief objective ofthis article istorule outthepossibility of
replacement products being imported into aMember State other than the one
from which they were exported .This provision isoccasioned byaconcern to
increase the opportunities for control and thus tominimise the risk of
fraud .Ifexperience should show that thetriangular system meets agenuine
need ,andprovided always that control measures can eliminate the risk of
fraud ,theCommission will beable toadopt provisions allowing replacement
products tobeimported into aMember State other than that from which they
were exported .
Article 8
Asageneral rule ,differential taxation isapplied according tothe provis±>ns
ofthedirective onoutward processing .Only inthecase ofprior importation
arespecial provisions required ,because thevalue andquantity ofthegoods
tobeexported only become known atthetime ofexportation .Thefollowing
solution isproposed :forthereplacement products (=theimported products )
the factors vdiich must betaken into account for the calculation ofthe im­
port duties onthese products aredetermined atthedate ofimportation ;
forthegoods that areexported this date cannot betaken asthereference
point ,because these products areonly presented tothecustoms authorities
atthedate ofexportation ,andtherefore after theprior importation ;for
./•
(l)OJNo.C54of8.3.1976 ,p.85

-3-
this reason itisproposed todetermine the amount ofimport duties which would
beapplicable tothegoods exported ifthey were tobeimported into the
Community from thecountry from which thereplacement products originate on
thedate when these goods arepresented tothe competent authorities .
Articles 9and 10
Thearrangements for standard exchange andthose for inward andoutward
processing arecomplementary toagreat extent ,and theCommittee for
Customs Processing Arrangements isresponsible for considering anymatters
that may arise inrespect oftheimplementation ofthepresent Directive .

Proposalfora
COUNCILDIRECTIVE
ontheharmonization ofprovisions Laiddownby
law,regulationoradministrative actionin
respectofstandardexchangeofgoodsexported
:forrepair
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle100thereof;
HavingregardtotheproposalfromtheCommission,
(1)HavingregardtotheopinionoftheEuropeanParliament ,
(2)
HavingregardtotheopinionoftheEconomicandSocialCommittee ,
WhereastheCounciladopted,on18December1975,Directive76/119/EECon
theharmonization ofprovisionslaiddownbylaw,regulation andadminis­
trativeactioninrespectofoutwardprocessing ;whereasthebenefitof
thesearrangements maybegrantedonlywhereitispossibleforthecompetent
authoritiestoidentifytheexportedgoodsashavingbeenincorporated in
thecompensating products;
Whereasitiseconomicallyjustifiabletoallow,incertainlimitedcases,
recoursetostandardexchange,thatistosaytheimportation withtotalor
partialrelieffromimportdutiesofreplacementproductswhichtakethe
placeofgoodsexportedforthepurposesofbeingprocessed,workedor
repaired;whereasthisis"thecase,inparticular,whenthegoodshave"been
exportedforrepair,includingrestoration andoverhaul;whereas,however,
recoursetostandardexchangeshouldnotToeallowedunlessthegoodsexported
arewithinthetermsofArticle9(2)oftheTreaty;whereas,"bytheirvery#
nature,agricultural productsorgoodsresultingfromtheprocessingof
agricultural productsarehardlysuitableforrepair;whereas,furthermore ,
./.
(1)0JNo
(2)0JNo
(3)0JNoL24,30.1.1976,p.58.

-2-
standard exchange such asitshould beorganised ,isnot compatible with
themachinery ofthecommon agricultural policy orwith thespecific arrangements
applicable ,pursuant toArticle 235of "theTreaty ,togoods resulting from the
theprocessing ofagricultural products ;whereas theproducts andgoods subject
tothat machinery or "tothose arrangements should therefore beexcluded from the
scope ofthese provisions ;
Whereas common rules must beLaid down intheMember States inrespect of
standard exchange ;whereas these arrangements resemble intheir aims and
detailed provisions those foroutward processing ,andwhereas they should in
these circumstances besubject tothe same rules asthose provided for by
Directive 76/119/EEC,except where thepresent Directive lays down special
provisions ;whereas these special provisions concern inparticular the
scope ofthearrangements andthe right toimport replacement products
(equivalent compensation ),including the right todosobefore thegoods to
berepaired areexported ;whereas under standard exchange ,inorder tofacilitate
control ,recourse maynot behadtothetriangular system ,unless provisions
allowing recourse thereto areadopted inaccordance with theCommittee
(1)procedure setout inArticle 28(2 )and (3)ofDirective 69/73/EEC ;
Whereas ,inorder toensure theuniform application ofsuch common rules ,
provision should bemade for aCommunity procedure whereby theappropriate
implementing provisions maybeadopted within asuitable period oftime ,
HAS ADOPTED THIS DIRECTIVE :
(1)OJNoL58,8.3.1969 ,p.1.

Article 1
ThisDirectivedeterminestheruleswhichmustbeincorporated inthe
provisionslaiddownbylaw,regulationoradministrative actionin
MemberStatesinrespectofarrangements forstandardexchangeofgoods
exportedforrepair,hereinaftercalled"standardexchange".
Artiele2
1.Standardexchangemeansthecustomsarrangements wherebyreplacement
productsreplacinggoodsofwhateverkindandwhateveroriginexported
outsidethecustomsterritoryoftheCommunityforrepair,whichincludes
restoration andoverhaul,-may"beimportedwhollyorpartlyfreeofimportdutiesj
suchgoodsarehereinafterreferredtoas"exportedgoods".
2.Standardexchangeshallbesubjecttorulesidenticaltothoseprovided
forbyCouncilDirective76/119/EEC,withtheexceptionofsuchspecial
provisionsasareprovidedforinthepresentDirective.
3.Standardexchangearrangements maynotapplytogoodswhichhaveentered
theCommunityunderinwardprocessingarrangements,nortogoodsfalling
underthecommonagricultural policyorthespecificarrangements appli­
cable,pursuanttoArticle235oftheTreaty,tocertaingoodsresulting
fromtheprocessingofagricultural products.
Article3
1.Wherecircumstances sowarrant,replacementproductsmay,underconditions
laiddownbythecompetentauthorities,beimportedbeforetheexportation
oftheexportedgoods.Suchpriorimportationshallbetreatedinthe
samewayasimportation inaccordancewithArticle2(1).
2.Thepriorimportationofareplacementproductshallrequiretheprovision
ofaguaranteecoveringtheamountoftheimportduties;theguarantee
shallbedischargedonpaymentoftheimportdutiesduepursuantto
Article8.
ν

-4-
Article 4
1.Replacement products must fall within thesame Tariff subheading andmust
possess thesame commercial quality and technical characteristics
astheexported goods aretohave following therepair inquestion .
2.Where theexported goods have been used before exportation ,,thereplacement
products must also have been used andmaynot benewproducts .
Thecompetent authorities may,however ,grant derogations from this rule ,
ifthereplacement products have been supplied free ofcharge under a
guarantee imposed bycontract orbystatute Tonthecondition that the
importation ofthereplacement product takes place witfiin 12months after
thedate when theexported goods were first entered for home use .
Article 5
1.Thecompetent authorities oftheMember State ofexportation shall grant
thebenefit ofstandard exchange upon app Iication ,bygeneral orspecial
authorization andbefore theexportation ofthegoods ortheprior
importation ofthe replacement products .
2.Thecompetent authorities maygrant thebenefit ofstandard exchange upon
application submitted not later than thetime ofimportation ofthe
replacement products ,ifthegoods were exported under anoutward
processing authorization .
3.Thecompetent authorities shall withhold thebenefit ofstandard exchange
where itwould give rise toanunjustified advantage asregards exemption
from import duties .
Article 6
1.Theperiod within which theimportation ofreplacement products must
take place shall notexceed sixmonths .However ,this period maybe
extended bythecompetent authorities onsubmission bytheholder of

-5-
theauthorization ofadulyjustifiedrequest,providedthatthetotal
periodshallnotexceed12months.Thisperiodshallbecalculatedfrom
thedateofacceptance bythecompetentauthoritiesoftheexportdocuments
fortheexportedgoods.
2.Inthecaseofpriorimportation,theperiodwithinwhichtheexportation
oftheexportedgoodsmustbecarriedoutshallnotexceedonemonth.
However,thisperiodmaybeextendedbythecompetentauthorities on
submissionbytheholderoftheauthorization ofadulyjustifiedrequest,
providedthatthetotalperiodshallnotexceedtwomonths.Thisperiod
shallbecalculatedfromthedateofacceptance bythecompetentauthorities
ofthedocumentsrelatingtotheimportation ofthereplacementproducts.
Article7
1.Hieimportation ofreplacementproductsmay"becarriedoutonlybythe
holderoftheauthorisation oronhis"behalf.
2.Replacement productsmustbeimportedintotheMemberStatefromwhich
theexportedgoodshavebeenoraretobeexported.
3.Thecompetentauthorities mayprescribeintheauthorization thatthe
exportandimporttransactions mustbecarriedoutatthesamecustoms
office.
4.However,provisionspermittingreplacementproductstobeimportedinto
aMemberStateotherthanthatofexportation maybeadoptedinaccordance
withtheprocedurelaiddowninArticle10.
Artiele8
1.Thetotalorpartialexemptionfromimportdutiesprovidedforin
Article2shallbegrantedinaccordancewiththeruleslaiddownby
Articles10and11ofDirective76/119/EEC,thereplacementproducts
beingtreatedinthesamewayasthere-importedproductsreferredto
inthesaidArticles.

-6-
2.However,wherethereplacementproductsarethesubjectofpriorirrportation,
theamountoftheimportdutieswhichwouldbeapplicabletothegoodsif
theywereimportedintotheCommunityfromthecountryfromwhichthe
replacementproductscomeshallbedeterminedbyreferencetotherate
ortheamountapplicableonthedateofacceptance bythecompetent
authoritiesoftheexportdocumentforthegoodsinquestion;thisdate
shallalsobetakentodeterminethequantity,natureandvalueofthe
saidgoods.
Artiele9
TheCommitteeforCustomsProcessingArrangements,setupbyArticle26of
Directive69/73/EEC,mayexamineanymatterrelatingtotheapplicationof
thisDirectivewhichisbroughtupbyitsChairmaneitheronhisowninitiative
orattherequestoftherepresentative ofaMemberState.
Article10
Thenecessaryprovisionsforinplementing Article3andArticles5to7
shallbeadoptedaccordingtotheprocedurelaiddowninArticle28C2)and
(3)ofDirective69/73/EEC.
Article11
MemberStatesshallbringintoforcethelaws,regulations oradministrative
provisionsneededinordertocomplywiththisDirectivewithinsixmonths
of.itsnotification .
MemberStatesshallcommunicatetotheCommissiontheprovisionswhichthey
adoptinordertoimplementthisDirective.TheCommissionshallinformthe
otherMemberStatesthereof.
Artrcle12
ThisDirectiveisaddressedtotheMemberStates.
DoneatBrussels, FortheCouncil

FIlU-JvfTTALM^ORMÏDUM
DraftpropoesulforaCounoilDirectiveontheharmonisation ofprovisions
laiddown,"bylaw,regulationoradministrative teetioninrespectofstandard
csoii&wg®ofgoodsexportedforrepair.
!Rieproposeddireotiv©referredtoabovewillentailareduotionof
inoou©inthefonaofiiaportduties.
Itisnotpossibletoputafigureonthiareduotion,butitwill,
withoutdoubt,"b©veryslight.