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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)817final
Brussels,11June1974
DRAFT
DECISIONOFTHEHEP/TURKEYCOUNCILOPASSOCIATION
authorising Turkeytoretaincertaincustomsdutiesofafiscalnature
(submittedtotheCouncil "bytheCommission)
J
COM(74)317final

ANNEXI
NotefortheCouncil
1«UnderArticle16oftheAdditionalProtocolbetweentheEECand
Turkey,..Turkeyretainstherighttoreplaceafiscalcustomsdutybyan
internaltaxingivenconditions.Itmayalsobeauthorised ,onarequest
submitt&dbefore1January1974»"toretainthesedutieswhentheCouncil
ofAssociationfindsthatthereareseriousdifficulties inthewayoftheir
replacement ,
2»Atthe55"khmeetingoftheCommitteeofAssociation ,holdinBrussels
cu30October 1973*theTurkishDelegation madeknownitscustomsdutiesof
afiscalnatureandaskedforauthorisation toretaincertainofthesefiscal
dutiesinaccordancewiththeprovisionsofArticle16,paragraph4»
Asregardsfiscaldutiesxjhicharenotthesubjectofarequestfor
retention.Turkeymustfirstlyproceedwiththealignmentofitscustoms
tariffwiththeCommonCustomsTariffunderArticle17oftheAdditional
Protocol,andsecondly,carryoutthetariffdismantlingstipulatedinArticle
8ofthesaidProtocol.UndertheprovisionsofArticle16,paragraph3j
however,itnayconverttheseduties,reducedoralignedwitatheCCT,into
aninternaltaxatthelevelofthebasicdutyof23November1970,asdefined
inArticle10,inconformitywithArticle44•
3*AsregardsthedutieswhichTurkeyhasaskedtoretain,theTurkish
Government hasintimatedthattheimmediateconversion ofthedutiesconcerned
intherequest :intoaninternaltaxwouldrunupagainstadministrative and
budgetarydifficulties .
Thesedifficulties maybesummarizedasfollows:
(a)Thereplacementofthesedutiestryaninternaltaxwouldnecessi­
tatethecreationofnewadministrative unitsinordertoexert
effectivecontrolandavoidreductioninpublicrevenue;

2.
b)TheTurkishG^vainmontisplanningaradicalreformofitsinterna
taxationsystem;itwillbonecessarytomakefar-reaching changes
inthelawsinordertoincludeinthemprovisionsconcerningthe
levyingoffiscalduties;
c)Substitution offiscaldutieswouldhavemarkedinfluenceonprice
structure,whichwouldinturndisturbtheinternalmarket.Onthe
othorhand,ifTurkeyworetoreducetherateoftheinternaltax
inordertoavoidtheresultantpricerisesanddisturbances ,this
wouldappreciably reducetheTreasuryrevenues «
4*However,theTurkishGovernmenthasconfirmedthatthegoods(orsimi
goods),otherthanmotorcars,inrespectofwhichitseeksretentionoft
customsdutyasafiscalduty,arenotmanufactured inTurkey,or.whereth
aresomanufactured ,theyaresubjecttothesamedutiesasthecustomsdu
5.TheconditionsstipulatedinArticle16,paragraph4ofthexW.ditiona
Protocolthusappeartobefulfilledasregardstheauthorisation toreta:'
customsdutiesofafiscalnatureontheproductsotherthanmotorvehicle
whicharethesubjectoftheTurkishrequest.
6.Asregardsmotorvehiclesforthetransportofpersons(havingamaxi
mumofeightscatsincludingthatofthedriver),thereisaproblemof
effectingabalancebetweenthetaxationofimportedvehicles,whicharc
leviedwiththecustomsdutyof75i°valoremdeemedbythoTurkishdelp
gationtobeacustomsdutyofafiscalnature,andthoseassembledinTur
whicharenotsubjecttoasimilarinternaltax.
Now,inaccordancewithalong-standing Communityinterpretation ,a
customsdutyofafiscalnaturemayonlybeleviedongoodswhicharenot
manufactured intheimportingcountiyorforwhichnosuitablealternative
ismanufacturedtherein,providedthatsuchproducts,shouldthoybemanu­
factured,aresubjectedto.aninternaltaxequaltothedutyofafiscal
nature•
./.•

Theexpression "customsdutiesofafiscalnature"inArticleI6of
theAdditionalProtocolmeansdutieswhichhaveafiscalcharacternotonly
innamebutinpractice,thatistosay,dutieswhichdonotaffordanyprotec­
tionfornationalindustry.
Onexaminationitappearsthatasignificantproportionofthecustoms
dutyleviedbyTurkeyonthevehiclesinquestiondoesinfactaffordsuch
protection.
Consequently ,asthisdutydoesnothavethecharacterofacustoms
dutyofafiscalnature,theCouncilofAssociationcannotauthoriseTurkey
underArticle16toretainthedutyinfull.
Inthecircumstances theCommissionproposesthattheCouncilapproves
thedraftDecisionoftheCouncilofAssociationsetoutintheAnnex,which
takesthisinterpretation intoaccountandomitsreferencetothemotor
vehiclesforwhichTurkeyhasmadearequest.

EEC -TURKEY
ASSOCIATIONANNEX II
–Council ofAssociation –
Draft
DECISION' OFTECOUNCIL OFASSOCIATION N° /74
authorising Turkey toretain certain
customs duties ofafiscal nature
THECOUNCIL OFASSOCIATION ,
Having regard totheAgreement creating anAssociation between theEuropean
Economic Community andTurkey ,signed atAnkara on12September 1963' (1)»
Having regard totheAdditional Protocol between theEuropean Economic
Community andTurkey signed atBrussels on23November 1970 ,and inparti­
cular toArticle 16thereof (2),
Whereas Turkey hasrequested anauthorisation toretain theduties ofafiscal
nature onthe ^cods listed intheAnnex uptotheend ofthetransitional
period laid down inArticle 10,Paragraph 2oftheAdditional Protocol ,
Whereas ,under Article 16,Paragraph 4oftheAdditional Protocol theCouncil
ofAssociation ,whore itfinds that thereplacement ofacustoms duty would
give rise toseriou ;difficulties ,shall authorise that country ,onreceipt
ofarequest lodged before the 1stJanuary 1974»toretain that duty on
condition that iGisrepealed bytheendofthesaid transition -.!period .
(1)OJN0217,29December 1964 ,p.3.687 /64.
(2)OJN°L293 ,29December 1972 ,P.3. •/.•

Ificreasforthosegoodsthereplacement ofcustomsdutiesofafiscalnature
byinternaltaxesisliabletocauseaseriousdisturbance oftheTurkish
marketf
WhereasTurkeyisplanningaradicalreformofitsinternaltaxationsystem;
whereasifinthesecircumstances itwererapidlytoconvertitsdutiesofa
fiscalnature,itmightafterarelativelyshortlapseoftimefinditself
compelledtocarryoutasecondreformofitssystem;whereassuchconversion
inseveralstageswouldcreateunnecessarydifficulties ,particularly for
theindustriesandadministrationsconcerned,
Whereastheaboveconsiderations providegroundsforstatingthatforthe
productsinquestio;:.thereplacementofthecustomsdutiesofafiscalnature
byinternaltaxeswouldgiverisetoseriousdifficulties inTurkey,
WhereasthepresentDecisiondoesnotprejudicesubsequentapplicationof
Article44of*"theAdditionalProtocol,
HASDECIDEDA3FOLLOWS:
Article 1
1#Turkeyshallbeauthorisedtoretaincustomsdutiesofafiscalnature
onthegoodslistedintheAnnexhereto.
2.Duringtheperiodofuseoftheauthorisation ,Turkeyshallmaintain
inforcethedutiesofafiscalnatureeffectivelyappliedonthogoods
concernedasrespectsthirdcountriesonthedateofthesignatureofthe
Additional Protoool.
Article2
ThisDecisionisaddressedtoTurkey.
DoneatBrussels, 1974.
FortheCouncilof^A^Qcigtioi }
ThePresident

ΔΝΚΕΧ
RatesofcustomsdutiesofafiscalnaturereferredtoinArticle 1
T'cidingN°
ofTurkish
customsTariff
at23.11.1970DescriptionRate
ofduty-
advaloremorin
Turkishpounds(L.T.)
per100kg
netweight
1 2 3
27.10
-11
-21
I «31
IPETROLEUMOILSANDOILSOBTAINEDFROMBITUMINOUS MINERALS,OTHERTHAN
CRUDE;PREPARATIONS NOTELSEWHERESPECIFIEDORINCLUDED,CONTAINING
NOTLESSTHAN70$BYWEIGHTOPPETROLEUMOILSOROPOILSOBTAINED
PROMBITUMINOUS MINERALS,THESEOILSBEINGTHEBASICCONSTITUENTS
OPTHEPREPARATIONS :
exa)Lightoilshavingaclosedflashpointof"below30°C:
~Hotcrspirit
exb)Mediumoilshavingaclosedflashpointinanairtightchamber
of30°Corover,hutbelow55°0,orthosehavingaclosed
flashpointof55°C'oroverofwhichmorethan65°jo(inoluding
losses)distilsattemperatures upto250°C:
•»Kerosene
c)Heavyoilshavingaclosedflashpointof55°0orover:
ex1.Fueldistillates,ofwhich80%distilswithoutunder­
goingcracking:
–GasOïl19,15L.T.
7.80L.T.
8.75L.T.
«

2
[.
HeadingN°
ofTurkish
customsTariff
at23.11.1970DescriptionRate
ofduty
advaloremorin
Turkishpounds(L.T«)
per100kg
netweight
1 2 3
27.10
(continued)
-41
-42
-43
-50c)ex2.Residualfuels,ofwhichlessthan80Jodistilswithout
undergoingcracking:
–Lightfueloxl
–Médiumfueloil
–Heavyfueloil
3.Engineoils(includingthosefromwhichthecharacteristic
colourandodourhavebeenremoved)7«50L.T.
7.50L.T.
7.50L.T.
8.00L.T.
ex27.11
-30PETROLEUM GASESANDOTHERGASEOUSHYDROCARBONS :
–Petroleumgasesinliquidform15%
ex27.13 PARAFFINWAX,PETROLEUMORSHALEWAX,SLACKWAX,OZOKERITE,LIGNITE
WAX,PEATWAXANDOTHERMINERALWAXES,WHETHERORNOTCOLOURED:
–Paraffinwax20%
28.c3
-21
-22CARBON(CARBONBLACK,ACETYLENEBLACKS,ANTHRACENE BLACKS,OTHER
SMOKEBLACKS,ETC.):
exb)Other:
–Carbonblack
-Acetyleneblacks30%
30#
./

I iIRats I
HeadingN°
ofTurkish
customsTariff
at23.11.1970...Description -ofduty
advaloremorin
Turkishpounds(L.T.)
per100kg ;
netweight
1 2 3
29.37 LACTONESANDLACTAMS;SULTONESANDSULTAMS:
exo)Other:
-39 –Caprolactam 15%
33.01 ESSENTIALOILS(TERPEIIELESS ORNOT);CONCRETESANDABSOLUTES;
RESINOIDS :
exb)Other:
-22 I–Ofmint 100%
-23 –Ofcitronnella 25i
-24 I –Oflemon 100%
-25 I –Ofmelissa 00
-26 -Ofylang-ylang'100%
-29 -Other100%-
I
33.04 MIXTURESOPTWOORMOREODORIFEROUS SUBSTANCES(NATURALORARTIFICIAL)
ANDMIXTURES(INCLUDINGALCOHOLICSOLUTIONS)WITHABASISOFONEOR
MOREOFTHESESUBSTANCES,OFAKINDUSEDASRAW24ATERIALSINTHE
PERFUMERY,FOOD,DRINKOROTHERINDUSTRIES .............-150% -

4.
HeadingN°
ofTurkish
customsTariff
at23.11.1970DescriptionRata'
ofduty
advaloremorin
.Turkishpounds(L.T.)
per100kg
netweight
ΓΓ2 3
40.01' NATURALRUBBER,BALATA,GUTTA-PERCHA ANDSIMILARNATURALGUMS,
UNIIANTJFACTURED(INCLUDINGLATEX.WHETHERORNOTSTABILIZED):
-10a)Crêpe j
exb)Other: ;40%.
-21 -Latex 22%
-22 –Smokedsheets 22%
40.02 SYNTHETIC RUBBERS,INCLUDINGSYNTHETICLATEX,WHETHERORNOT
STABILIZED;FACTICEDERIVEDFROMOILS:
exa)Syntheticrubberandlatex,forthemanufactureandrotrcading
ofrubbertyresandinnertubesforalltypesofmotorvehicle
'(subjecttotheconditionsandquantitiesto-belaiddownby
theMinistryofIndustry);: '
"11 -Syntheticrubber ; 0%