COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.05.1995 
COM(95) 169 final 
95/0112 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
Laying down the rates of duty to be applied on 4801 Newsprint in rolls or sheets 
following the accession of Austria, Finland and Sweden. 
(presented by the Commission) 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL PROPOSING 
THE ADOPTION OF A REGULATION ALLOWING THE ACCELERATION OF 
AGREED DUTY REDUCTIONS TO 0 % ON IMPORTS OF NEWSPRINT 
1. Pursuant to the Act of Accession, the three acceding Member States have applied the 
European Community's Common Customs Tariff as of 1 January 1995, with some 
exceptions4. This has lead to the raising of certain tariffs applied by them. In some 
cases the acceding Member States had to raise their tariff above a level which they had 
agreed before in GATT not to exceed (so-called "tariff bindings").5 
2. This is allowed in GATT under Art. XXIV, which is the provision whiclrallows the 
creation of inter alia customs unions. However, in some cases, the customs union 
, must - under Art. XXIV para. 6 of the GATT - offer compensation, which may take 
the form of reductions of duties on either the same, or on other tariff lines.6 
3. Canada has requested the EU to give compensation immediately. Failing agreement 
Canada has announced retaliatory measures involving increases in duties on certain 
products mainly originating from the Community (including vodka and lead crystal 
glassware). 
4. Therefore, in order to avid these retaliatory measures, it is proposed to make some 
acceleration on an autonomous basis of the phased duty reductions to 0% already 
agreed in the Uruguay Round on imports of newsprint into the Community. This 
would result in the 0% rate being achieved on 1 January 2002. 
5. For their reasons the Commission proposed to the Council to adopt the Regulation 
contained with Annex to this Communication. 
4E.g Art. 99 and Art 101 
'Compare Art. II of the GATT. 
6GATT 1994 Understanding on Art. XXIV para. 5. 
1 
PROPOSAL FOR A COUNCIL REGULATION 
Laying down the rates of duty to be applied on 4801 Newsprint in rolls or sheets 
following the accession of Austria, Finland and Sweden. 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, in particular Article 
113 thereof, 
Having regard to the proposal from the Commission, 
— Whereas, pursuant to Article 2 of the Act concerning their conditions of accession to 
the Community, Austria, Finland and Sweden have applied the Common Customs 
Tariff as of 1 January 1995, 
— Whereas following the authorisation by the Council at its meeting on 8 February 1995 
to open negotiations under Article XXIV, paragraph 6, of the General Agreement on 
Tariffs and Trade 1994 (GATT 1994), in order to resolve instances where applications 
of the Common Customs Tariff by the new Member States leads to modification or 
withdrawal of tariff concessions previously granted by them; 
— Whereas the application of the Common Customs Tariff by the new Member States 
has lead to a reduction of some import duties and increase of some other duties; 
— Whereas, pending the conclusion of a global agreement from negotiations between 
the Community and third countries it is appropriate to apply autonomous measures 
designed to alleviate the adverse impact on certain exports by third countries 
following enlargement; 
— Whereas the measures to be applied are without prejudice to the results of the ongoing 
negotiations under Article XXIV: 6 and do not prejudge the intention of the 
Community to conclude an agreement which takes into account the global impact of 
enlargement on trade with third countries; 
— Whereas in this context, it is appropriate to accelerate on an autonomous basis the 
reduction in duty to 0% already foreseen on 4801 Newsprint in rolls or sheets; 
HAS ADOPTED THIS REGULATION 
Article 1 
The autonomous rates of duty on 4801 Newsprint in rolls or sheets shall be as set out in 
the Annex to this Regulation. 
Article 2 
This regulation shall enter into force the day following its publication in the Official 
Journal. 
This Regulation shall be binding in its entirety and directly applicable in all Member States 
Done at Brussels For the Council 
i> 
ANNEX 
CN Code 1995 Duty rate reduced to 
4801 00.10 
Newsprint, in rolls or sheets, mentioned in 4.2 % * 
the additional note 1 to chapter 48 
4801 00.90 
Newsprint, in rolls or sheets, other than 5.3% * 
that mentioned in the additional note 1 to 
chapter 48 
* On 1 January of the following years the duty shall be reduced to: 
1996-4.0% 
1997 - 3.0% 
1998-2.4% 
1999-1.8% 
2000-1.2% 
2001-0.6% 
2002 - 0.0% 
4 
FINANCIAL STATEMENT 
Section 1 Financial Implications 
1. Proposal for a Council Regulation providing some acceleration of the phased 
reduction to 0% a newsprint already agreed to by the Community in the Uruguay 
Round. 
2. Budget heading: (loss of revenue: non known). 
3. Legal basis: Article 113 
4. Description: The application of the Common External Tariff duty rates by the 3 new 
Member Stales from 1 January 1995 has resulted in increases in duly payments on 
imports from third countries beyond levels previously in force. 
The proposed regulation would avoid the retaliatory measures announced by Canada 
involving large increases in duties of certain exports by the Community (including 
vodka and lead crystal glassware) 
5. Type of revenue: Loss of revenue for duties paid on third country imports. 
6. Change in level of revenue: 
It is estimated that the loss of revenue will be in the order of 16 MECU. This covers 
the last 7 months of 1995 and the period 1996 to 2003. This figure is calculated by 
taking the sum of duty collected normally paid on imports of newsprint (over and 
above the duty free quota) and deducting from lliis figure the sums that would be 
actually collected on the basis of the duty rates indicated in the annex. 
PM. Sections 2 and 3 do not seem applicable. 
h:\GBRESOLDOC 

ISSN 0254-1475 
COM(95) 169 final 
DOCUMENTS 
EN 02 
Catalogue number : CB-CO-95-214-EN-C 
ISBN 92-77-88978-0 
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