COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.11.1997 
COM(97) 603 final 
97/0322 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
concerning the conclusion of the Agreement in the form of an exchange of letters 
amending the Agreement in the form of an exchange of letters between the European 
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas 
for certain wines, and amending Regulation (EC) No 933/95 opening and providing for 
the administration of Community tariff quotas for certain wines 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. In 1993, the European Community concluded Agreements with Bulgaria, 
Hungary and Romania on the reciprocal establishment of tariff quotas for certain 
wines. These Agreements were to run initially until 31 December 1997 in the case 
of Bulgaria and Romania and until 31 December 1998 in the case of Hungary. 
2. Under Articles 76, 102 and 128 of the Act of Accession, Austria, Finland and 
Sweden are to apply the provisions of the preferential Agreements concluded by 
the Community with certain third countries, including Bulgaria, Hungary and 
Romania, from 1 January 1995. 
3. The negotiations with Bulgaria aimed at preserving reciprocal preferential 
treatment in 1998 and at continuing to promote the development of trade in wine 
have resulted in the draft exchange of letters to which this proposal relates and 
which provides for the initial Agreement to be extended by one year. The 
negotiations with Romania have not yet reached a conclusion and their outcome 
will be the subject of a later proposal. 
4. The purpose of this proposal is to ask the Council to adopt the results of the 
negotiations with Bulgaria as set out in the attached draft exchange of letters and 
take the steps required to implement them, including the amendment of Council 
Regulation (EC) No 933/95. 
Proposal for a 
COUNCIL REGULATION (EC) 
of 
concerning the conclusion of an Agreement in the form of an exchange of letters 
amending the Agreement in the form of an exchange of letters between the European 
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas 
for certain wines, and amending Regulation (EC) No 933/95 opening and providing for 
the administration of Community tariff quotas for certain wines 
THE COUNCIL OF THE EUROPEAN UNION. 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 in conjunction with the first sentence of Article 228(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas an Agreement in the form of an exchange of letters on the reciprocal 
establishment of tariff quotas for certain wines between the European Community of the 
one part and the Republic of Bugaria of the other part1 was signed on 29 November 1993; 
Whereas that Agreement expires on 31 December 1997; 
Whereas in order to preserve reciprocal preferential treatment and to continue to promote 
the development of trade in wine the Agreement should be extended until 31 December 
1998; 
Whereas Regulation (EC) No 933/95 opening and providing for the administration of 
Community tariff quotas for certain wines originating in Bulgaria, Hungary and 
Romania2 opened tariff quotas for certain wines in accordance with the Agreement in the 
form of an exchange of letters between the European Community and the Republic of 
Bulgaria; whereas, following the new Agreement in the form of an exchange of letters, 
Regulation (EC) No 933/95 has to be amended accordingly; 
Whereas, in order to facilitate the implementation of certain provisions of the Agreement, 
the Commission should be authorised to adopt the necessary legislation for 
implementation of the Agreement in accordance with the procedure laid down in 
1 GJM«L337, 31.12.1993, p. I. 
2 OJNoL96,2t.4.19*5,p. 1. 
Vl/4320/97Rev.l 
Article 83 of Council Regulation (EEC) No 822/87 of 16 March 1987 on the common 
organisation of the market in wine3; 
HAS ADOPTED THIS REGULATION: 
Article 1 
The Agreement in the form of an exchange of letters between the European Community 
of the one part and the Republic of Bulgaria of the other part on the reciprocal 
establishment of tariff quotas for certain wines is hereby approved on behalf of the 
Community. 
The text of the Agreement is attached to this Regulation. 
Article 2 
The President of the Council is hereby authorised to designate the person empowered to 
sign the Agreement in order to bind the Community. 
Article 3 
The Commission is hereby authorised to adopt the necessary acts for implementation of 
the Agreement, in accordance with the procedure laid down in Article 83 of Regulation 
(EEC) No 822/87. 
OJ No L 84, 27.3.1987, p. 1, as last amended by Regulation (EEC) No 1566/93 (OJ No L 154, 
25.6.1993, p. 39). 
H 
Article 4 
1. In Article 1(1) of Regulation (EC) No 933/95, the words "to 31 December 1997' 
are replaced by the words "to 31 December 1998". 
2. In Article 1(1) of Regulation (EC) No 933/95 the table under (a) "Wines 
originating in Bulgaria" is replaced by the following table: 
Order No 
09.7001 
09.7003 
09.7005 CN code 
0) 
ex 2204 10 
ex 2204 21 
ex 2204 29 Description 
(2) 
Quality sparkling 
wine, in containers 
holding not more than 
2 litres 
Quality wine, 
including quality wine 
with a designation of 
origin 
Quality wine, 
including quality wine 
with a designation of 
origin, and wine 
obtained from grapes 
of the 'Gamza' vine 
variety designated and 
presented under that 
name or under the 
synonym 'Kadarka' Volume of quota 
(hi) 
1 600 (1.1 -
31.12.1998) 
401 230 (1.1 -
31.12.1998) 
128 000 (1.1 -
31.12.1998) Rate of duty 
applicable 
(% of basic) 
40 
40 
40 
Article 5 
This Regulation shall enter into force on the day following its publication in the Official 
Journal of the European Communities. 
It shall apply from 1 January 1998. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, 
For the Council 
T 
AGREEMENT 
in the form of an exchange of letters amending the Agreement in the form of an exchange 
of letters between the European Community and the Republic of Bulgaria on the 
reciprocal establishment of tariff quotas for certain wines 
A. Letter from the Community 
Brussels, 1997 
Sir, 
I have the honour to refer to the Agreement of 29 November 1993 between the European 
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas 
for certain wines and to the negotiations which have taken place between the European 
Community and the Republic of Bulgaria with a view to adapting the said Agreement 
following the accession of the Republic of Austria, the Republic of Finland and the 
Kingdom of Sweden to the European Union, and to the consultations on extending the 
Agreement beyond 31 December 1997. 
I hereby confirm that the European Community and the Republic of Bulgaria have agreed 
on the following: 
I. Table 1 in the Annex to the said Agreement is replaced by the following table: 
Quantities of wine originating in the Community and qualifying for tariff reductions 
Bulgarian 
customs 
tariff code 
ex 2204 21 
ex 2204 29 
ex 2204 10 Description 
Wine of fresh 
grapes 
Quality sparkling 
wine whether or 
not produced in 
specified regions, 
in containers 
holding not more 
than two litres 1993 1994 1995 1996 1997 1998 
Quantity in hectolitres 
42 000 
1000 46 200 
1 100 50 400 
1200 54 600 
1 300 58 800 
1400 63 000 
1 500 
II. Table 2 in the Annex to the said Agreement is replaced by the following table: 
Quantities of wine originating in Bulgaria and qualifying for tariff reductions 
CN code 
ex 2204 2! 
ex 2204 29 
ex 2204 10 Description 
Quality wine, 
including quality 
wine with a 
designation of 
origin 
Quality wine, 
including quality 
wine with a 
designation of 
origin, and wine 
obtained from 
grapes of the 
'Gamza' vine 
variety designated 
and presented 
under that name 
or under the 
synonym 
'Kadarka' 
Quality sparkling 
wine, in 
containers holding 
no more than 2 
litres 1993 1994 1995 1996 1997 1998 
Quantity in hectolitres 
214 000 
118 000 
1 000 247 000 
118 000 
1 100 280 400 
118 000 
1 200 313 600 
118 000 
1 300 346 800 
118 000 
1400 401 230 
128 000 
1 600 
III. Point 3(a) of the said Agreement is replaced by the following: 
"in the case of duties applied by Bulgaria to imports of wine originating in the 
Community: 
- in 1993: 90% of the basic duty, 
- in 1994: 80% of the basic duty, 
in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad 
valorem;" 
This exchange of letters shall be approved by the contracting Parties in accordance 
with their respective procedures. 
This Agreement shall enter into force on 1 January 1998 and remain in force for an 
initial period ending on 31 December 1998. During the first half of 1998, 
consultations shall take place to determine whether and under what conditions it 
should be extended. 
3 
I should be obliged if you would confirm that your Government is in agreement with 
the contents of this letter. 
Please accept, Sir, the assurance of my highest consideration. 
On behalf of the Council of the European Union 
-? 
B. Letter from Bulgaria 
Brussels, 
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 Agreement of 29 November 1993 between the 
European Community and the Republic of Bulgaria on the reciprocal establishment of 
tariff quotas for certain wines and to the negotiations which have taken place between the 
European Community and the Republic of Bulgaria with a view to adapting the said 
Agreement following the accession of the Republic of Austria, the Republic of Finland 
and the Kingdom of Sweden to the European Union, and to the consultations on 
extending the Agreement beyond 31 December 1997. 
I hereby confirm that the European Community and the Republic of Bulgaria have agreed 
on the following: 
I. Table 1 in the Annex to the said Agreement is replaced by the following table: 
Quantities of wine originating in the Community and qualifying for tariff reductions 
Bulgarian 
customs 
tariff code 
ex 2204 21 
ex 2204 29 
ex 2204 10 Description 
Wine of fresh 
grapes 
Quality sparkling 
wine whether or 
not produced in 
specified répons, 
in containers 
holding not more 
titan two litres 1993 1994 1995 1996 1997 1998 
Quantity in hectolitres 
42 000 
1000 46 200 
1 100 50 400 
1200 54 600 
13f§ 58 800 
\m 63 000 
1 500 
II. Table 2 in the Annex to the said Agreement is replaced by the following table: 
Quantities of wine originating in Bulgaria and qualifying for tariff reductions 
CN code 
ex 2204 21 
ex 2204 29 
ex 2204 10 Description 
Quality wine, 
including quality 
wine with a 
designation of 
origin 
Quality wine, 
including quality 
wine with a 
designation of 
origin, and wine 
obtained from 
grapes of the 
'Gamza' vine 
variety designated 
and presented 
under that name 
or under the 
synonym 
'Kadarka' 
Quality sparkling 
wine, in 
containers holding 
no more than 2 
litres 1993 1994 1995 1996 1997 1998 
Quantity in hectolitres 
214 000 
118 000 
1000 247 000 
118 000 
1 100 280 400 
118 000 
1200 313 600 
118 000 
1 300 346 800 
118 000 
1400 401 230 
128 000 
1600 
III. Point 3(a) of the said Agreement is replaced by the following: 
"in the case of duties applied by Bulgaria to imports of wine originating in the 
Community: 
- in 1993: 90% of the basic duty, 
- in 1994: 80% of the basic duty, 
in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad 
valorem," 
This exchange of letters shall be approved by the contracting Parties in accordance 
with their respective procedures. 
This Agreement shall enter into force on 1 January 1998 and remain in force for an 
initial period ending on 31 December 1998. During the first half of 1998, 
consultations shall take place to determine whether and under what conditions it 
should be extended. 
x/O 
I should be obliged if you would confirm that your Government 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 
your letter. 
Please accept, Sir, the assurance of my highest consideration. 
For the Government of the Republic of Bulgaria 
il 
FINANCIAL STATEMENT 
I. BUDGET HEADING: Chapter 10 Agricultural duties Date: 
APPROPRIATIONS: 
ECU 693.2 million (*) 
2. TITLE: 
Council Regulation on the conclusion ol'thc Agreement in the form of an exchange of letters between the EC and Bulgaria 
3. LEGAL BASIS: 
Article 113 of the Treaty 
AIMS: 
To extend by one year the Agreement with Bulgaria. 
FINANCIAL IMPLICATIONS PERIOD OF 12 
MONTHS 
(ECU million) CURRENT 
FINANCIAL 
YEAR 
(97) 
(ECU million) FOLLOWING 
FINANCIAL 
YEAR 
(98) 
(ECU million) 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL AUTHORITIES 
- OTHER 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 12,7 12,7 
1998 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE ECU 12,7 m 1999 2000 2001 
5.2 METHOD OF CALCULATION: 
See Annex 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? YES/NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? YES/NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? ¥¥S/NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO 
OBSERVATIONS: 
(*) In accordance with the 1998 PDB 
The measure proposes extending and increasing the quotas granted. This will result in a loss in EC own resources, as the 
quantities involved will enter at a reduced rate rather than the full rate as at present. 
*Z 
ISSN 0254-1475 
COM(97) 603 final 
DOCUMENTS 
EN 11 03 02 
Catalogue number : CB-CO-97-625-EN-C 
ISBN 92-78-27671-5 
Office for Officiai Publications of the Eurepaw CommuBrtw» 
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