Proposal for a COUNCIL DECISION approving the Protocol (2001) amending the Annex to the Agreement on Trade in Civil Aircraft

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Signatories to the Agreement on Trade in Civil Aircraft, through their representatives, agreed on the Protocol (2001) Amending the Annex to the Agreement on Trade in Civil Aircraft (the 'Protocol') in Geneva on the sixth day of June, 2001, transposing into the Annex to the Agreement the changes introduced in the 1992, 1996 and 2002 versions of the Harmonized Commodity Description and Coding System, as well as extending the product coverage of the Agreement.

2. The Protocol deals only with customs duties and charges under Article 2 of the Agreement. Except with respect to requiring duty-free treatment for products covered by the Protocol, nothing in the Protocol or the Agreement, as modified thereby, changes or affects a Signatory's rights and obligations, as they exist on the day prior to the entry into force of the Protocol, under any of the WTO Agreements referenced in Article II of the Marrakesh Agreement Establishing the World Trade Organization.

3. The Commission therefore hereby submits to the Council a proposal for a Decision approving the Protocol (2001).

2002/0055 (ACC)

Proposal for a COUNCIL DECISION approving the Protocol (2001) amending the Annex to the Agreement on Trade in Civil Aircraft

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with Article 300(2) first sentence thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) Council Decision Nº 80/271/EEC [1] approved the conclusion of the GATT Agreement on Trade in Civil Aircraft (the 'Agreement').

[1] OJ L 71, 17.3.1980, p. 1-2.

(2) Signatories to the Agreement, through their representatives, agreed on the Protocol (2001) Amending the Annex to the Agreement on Trade in Civil Aircraft (the 'Protocol') in Geneva on the sixth day of June, 2001, transposing into the Annex to the Agreement the changes introduced in the 1992, 1996 and 2002 versions of the Harmonized Commodity Description and Coding System, as well as extending the product coverage of the Agreement.

(3) The Protocol should therefore be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Protocol (2001) Amending the Annex to the Agreement on Trade in Civil Aircraft is hereby approved. The text of the Protocol is attached to this Decision.

Article 2

The President of the Council is hereby authorized to designate the person empowered to sign the Protocol in order to express the consent of the Community to be bound thereby. Done at Brussels,

For the Council

The President

ANNEX PROTOCOL (2001) AMENDING THE ANNEX TO THE AGREEMENT ON TRADE IN CIVIL AIRCRAFT

Signatories to the Agreement on Trade in Civil Aircraft (hereinafter referred to as "the Agreement"),

HAVING carried out negotiations with a view to transposing into the Annex to the Agreement the changes introduced in the 1992, 1996 and 2002 versions of the Harmonized Commodity Description and Coding System (hereinafter referred to as "the Harmonized System"), as well as extending the product coverage of the Agreement,

HAVE, through their representatives, agreed as follows:

1. The Annex attached to this Protocol shall, upon its entry into force pursuant to paragraph 3, replace the Annex to the Agreement as established heretofore by the Protocol (1986) Amending the Annex to the Agreement on Trade in Civil Aircraft.

2. This Protocol shall be open for acceptance by Signatories to the Agreement, by signature or otherwise, until 31 October 2001, or a later date to be decided by the Committee on Trade in Civil Aircraft. [2]

[2] On 21 November 2001, the Committee decided to extend the date for acceptance of the Protocol indefinitely (TCA/7).

3. This Protocol shall enter into force, for those Signatories who have accepted it, on 1 January 2002. For each other Signatory it shall enter into force on the day following the date of its acceptance.

4. This Protocol shall be deposited with the Director-General of the World Trade Organization who shall promptly furnish to each Signatory and each Member a certified copy thereof and a notification of each acceptance thereof pursuant to paragraph 2.

5. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.

6. This Protocol deals only with customs duties and charges under Article 2 of the Agreement. Except with respect to requiring duty-free treatment for products covered by this Protocol, nothing in this Protocol or the Agreement, as modified thereby, changes or affects a Signatory's rights and obligations, as they exist on the day prior to the entry into force of this Protocol, under any of the WTO Agreements referenced in Article II of the Marrakesh Agreement Establishing the World Trade Organization.DONE at Geneva this sixth day of June 2001, in a single copy, in the English, French and Spanish languages, each text being authentic.

ANNEX PRODUCT COVERAGE

The product coverage is defined in Article 1 of the Agreement on Trade in Civil Aircraft.

Signatories agree that products covered by the descriptions listed below and properly classified under the Harmonized System headings and subheadings shown alongside shall be accorded duty-free or duty-exempt treatment, if such products are for use in civil aircraft or ground flying trainers [3] and for incorporation therein, in the course of their manufacture, repair, maintenance, rebuilding, modification or conversion.

[3] For the purpose of Article 1.1 of this Agreement "ground flight simulators" are to be regarded as ground flying trainers as provided for under 8805.29 of the Harmonized System.

These products shall not include:

an incomplete or unfinished product, unless it has the essential character of a complete or finished part, component, sub-assembly or item of equipment of a civil aircraft or ground flying trainer*, (e.g. an article which has a civil aircraft manufacturer's part number),

materials in any form (e.g. sheets, plates, profile shapes, strips, bars, pipes, tubes or other shapes) unless they have been cut to size or shape and/or shaped for incorporation in a civil aircraft or a ground flying trainer* (e.g. an article which has a civil aircraft manufacturer's part number),

raw materials and consumable goods.

For the purpose of this Annex, "Ex" has been included to indicate that the product description referred to does not exhaust the entire range of products within the Harmonized System headings and subheadings listed below.

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