Brussels, 10.12.2004

COM(2004) 794 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1255/96 temporarily suspending the autonomous common customs tariff duties on certain industrial, agricultural and fishery products

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Commission, assisted by the Economic Tariff Questions Group, has reviewed all the requests for temporary suspension of autonomous common customs tariff duties presented to it by the Member States, including requests for extending suspensions at present in force.

The attached proposal concerns certain industrial, agricultural and fishery products.

Requests for suspension relating to the above products were examined in the light of the criteria set out in the communication from the Commission concerning autonomous tariff suspensions and quotas (see OJ C 128, 25.4.1998, p. 2).

Following this review, the Commission considers that the suspension or the reduction of duties is justified for the products listed in the Annex I to the attached proposal for a Regulation.

Products for which suspension is no longer in the Community’s economic interests have been withdrawn and are set out in Annex II.

The two annexes to this Regulation thus correspond respectively, to the list of products for which suspension is proposed, or for which the wording (including the nomenclature code) has to be changed, and the list of products removed from the Annex to Regulation (EC) No 1255/96.

Amendments to the description of certain products listed in the Annex to Regulation (EC) No 1255/96, where they have become necessary, have been taken into account as follows:

- addition of the nomenclature code for the product (listed in the Annex to Regulation (EC) No 1255/96) in Annex II,

- addition of the new amended product description in Annex I.

The period of validity of the proposed measure is unspecified, since its purpose is to amend the annex to Council Regulation (EC) No 1255/96, the period of validity of which is itself unspecified.

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1255/96 temporarily suspending the autonomous common customs tariff duties on certain industrial, agricultural and fishery products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 26 thereof,

Having regard to the proposal from the Commission[1],

Whereas:

(1) It is in the interest of the Community to suspend partially or totally the autonomous common customs tariff duties for a number of new products not listed in the Annex to Council Regulation (EC) No 1255/96 of 27 June 1996 temporarily suspending the autonomous common customs tariff duties on certain industrial, agricultural and fishery products[2].

(2) A number of products which are referred to in the said Regulation should be withdrawn from the list in the Annex because it is no longer in the Community’s interest to maintain suspension of autonomous common customs tariff duties or because the description needs to be altered in order to take account of technical product developments and economic trends on the market.

(3) Accordingly, products whose description needs to be altered should be regarded as new products.

(4) It is therefore appropriate to amend Regulation (EC) No 1255/96 accordingly.

(5) Since this Regulation is to apply from 1 January 2005, it should enter into force immediately,

HAS ADOPTED THIS REGULATION:

The Annex to Regulation (EC) No 1255/96 is amended as follows:

1. the products set out in Annex I to this Regulation are inserted;

2. the products for which the codes are set out in Annex II to this Regulation are deleted.

Article2

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union .

It shall apply with effect from 1 January 2005.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

ANNEX I

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ANNEX II

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FINANCIAL STATEMENT

1. Title of operation

Proposal for a Council Regulation amending Regulation (EC) No 1255/96 temporarily suspending the autonomous common customs tariff duties on certain industrial, agricultural and fishery products.

2. Budget heading(s) involved

Chapter 12 Article 120.

3. Legal basis

Article 26 of the EC Treaty.

4. Description of operation

Suspension of the common customs tariff duties for the above products.

7. Financial impact

In order to reduce the economic problems arising from the period of validity of previous Regulations, Council Regulation (EC) No 1255/96, now in force, does not have an expiry date.

This proposal contains only the amendments which must be made to the annex to the existing Regulation in order to take account of the following:

1. new requests for suspension which have been presented and accepted;

2. technical product developments and economic trends on the market resulting in the lifting of certain existing suspensions;

3. amendments to Nomenclature codes.

This time the amendments take the form of a consolidated annex.

Obviously only the amendments described in 1 and 2 have a financial impact.

Addition

This Annex, in addition to the amendments resulting from changes to CN codes, contains 33 new products. The uncollected duties corresponding to these suspensions, calculated on the basis of expected imports into the requesting Member State for 2005, total MEUR 9.8.

On the basis of the existing statistics for the preceding years, it would appear, however, that this amount must be increased by an average factor, estimated at 1.8, to take account of imports into other Member States using the same suspensions. This means a loss of revenue of some MEUR 17.7.

Withdrawal:

9 products have been withdrawn from this annex reflecting the reintroduction of customs duties. This represents an increase of MEUR 3.3 in resources , as calculated from requests for suspension or available statistics (2001).

Estimated cost of this operation

Taking available statistics (2001) as a basis, the impact on the loss of revenue resulting from this Regulation may therefore be estimated at 17.7 – 3.3 = MEUR 14.4 (gross amount, expenses incurred in collection included) x 0.75 = MEUR 10.8 for the period 1.1.2005-31.12.2005.

The shortfall in traditional own resources will have to be made up by the Member States by topping up the GNP component.

8. Fraud prevention measures

Checks on the end-use of some of the products covered by this Council Regulation will be carried out in accordance with Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of the Community Customs Code.

[1] OJ C , , p.

[2] OJ L 158, 29.6.1996, p. 1. Regulation last amended by Regulation (EC) No 1048/2003 (OJ L 161, 30.6.2003, p. 1).