it ii 
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it il COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 19 12.1995 
C()M(95) 692 linal 
95/ 0346 (ACC) 
Proposal for £ 
COUNCIL DECISION 
on the conclusion of an Agreement in the form of an exchange of letters between the 
European Community and Malta concerning authorization to issue certificates of origin 
for certain oil products transiting the territory of Malta in place of the Form A certificates 
of origin issued by some countries benefiting from the Community's Generalized Scheme 
of Preferences 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. At its 1873rd meeting on 6 October 1995 the Council authorized the Commission 
to negotiate an agreement in the form of an exchange of letters between the 
European Community and Malta authorizing the Maltese authorities to issue 
certificates of origin in place of the Form A certificates of origin issued by some 
countries benefiting from the Community's Generalized Scheme of Preferences. 
2. On the basis of this authorization, Commission departments have negotiated with 
Malta the wording of the letters to be exchanged, which are at Annex. 
A draft was communicated to the Council when the decision of 6 October was 
being prepared. 
3. Malta has requested some minimal changes to this wording. But what is essential 
is that the Maltese authorities have stated that they are prepared to cooperate 
wholeheartedly with the Community and Member State authorities to ensure 
absolute transparency of all operations carried out in Grand Harbour, Valetta. 
4. The Commission has therefore drafted the following proposal for adoption by the 
Council. 
4 
Proposal for a Council Decision 
on the conclusion of an Agreement in the form of an exchange of letters between the 
European Community and Malta concerning authorization to issue certificates of origin 
for certain oil products transiting the territory of Malta in place of the Form A certificates 
of origin issued by some countries benefiting from the Community's Generalized Scheme 
of Preferences 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas certain oil products entering the Community may be exempted totally or partially 
from the Common Customs Tariff duties applicable under the provisions of Council 
Regulation (EC) No 3281/94 of 19 December 1994 applying a four-year scheme of 
generalized preferences (1995-98) in respect of certain industrial products originating in 
developing countries;1 
Whereas, to benefit from that exemption, the said products have to comply with the 
provisions on origin set out in Regulation (EEC) No 2454/93 of 2 July 1993,2 as amended 
by Regulation (EC) No 3254/94 of 19 December 1994;3 whereas the specific criteria that 
have to be met if the products are to benefit from these preferences include the condition 
that the goods have to be transported directly from the beneficiary country to the 
Community; 
Whereas the Government of Malta has requested permission from the Community for oil 
products originating in Middle Eastern countries, benefiting from the Generalized Scheme 
of Preferences and consigned to the Community, to be exempted from the direct transport 
rule and, where the needs of transport or commerce so require, to be discharged, stored 
and reloaded in the port of Valetta without ceasing to benefit from the Generalized 
Scheme of Preferences; 
OJL348, 31.12.1994, p. 1 
OJL253, 2.7.1993, p. I. 
OJL346, 31.12.1994, p. 1 
1 
Whereas, in view of Malta's geographical position, of the special nature of the market in 
oil products and reasons inherent in the carriage of such products, the Maltese 
Government's request may be granted initially for a period of 18 months; whereas the 
Maltese authorities should therefore be authorized to issue certificates of origin in place of 
the Form A certificates of origin which have accompanied the products in question from 
the beneficiary country; whereas at the same time agreement has to be reached with the 
said authorities about the conditions that have to be met to ensure that there are no 
disturbances in this sector, 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreement in the form of an exchange of letters between the European Community 
and Malta concerning authorization to issue certificates of origin for certain oil products 
transiting the territory of Malta in place of the Form A certificates of origin issued by 
Middle Eastern countries benefiting from the Community's Generalized Scheme of 
Preferences is hereby approved on behalf of the Community. 
The text of the Agreement is annexed to this Decision. 
Article 2 
The President of the Council is authorised to designate the persons empowered to sign the 
Agreement and bind the Community. 
3 
AGREEMENT 
In the form of an exchange of letters between the European Community and Malta, 
concerning the authorisation granted by the Community to issue, for certain petroleum 
products transiting through the territory of Malta, certificates to replace Form A 
certificates delivered by certain Generalised System of Preferences beneficiary countries in 
the Middle East. 
A. Letter of the Community 
Dear Sir, 
"1. During 1993 and 1994, your country requested authorisation from the European 
Community to issue certificates to replace certificates Form A delivered by, amongst 
others, the Generalised System of Preferences beneficiary countries in the Middle 
East for certain petroleum products transiting through Maltese territory. 
2. The European Community is disposed to granting you such an authorisation under 
the following conditions: 
2.1 That authorisation is limited to the petroleum products which appear in the 
following list and originate in the countries bordering the Mediterranean and 
Black Seas and the Persian Gulf (Algeria, Morocco, Tunisia, Egypt, Saudi 
Arabia, Oman, the United Arab Emirates, Qatar, Bahrain, Kuwait, Syria, 
Lebanon, Iran, Russia, Ukraine and Georgia) insofar as they are not the 
subject of a suspension from tariff preferences in application of the provisions 
set out in Council Regulation No. 3281/94 of 19 December 1994; the said 
petroleum products must arrive in your country accompanied by a Form A 
certificate, and be destined for a European Community country and which 
figure on the following list : 
HS Code Description of the goods 
ex 2707 Oils in which the weight of the aromatic constituents 
exceeds that of the non-aromatic constituents, being 
oils similar to mineral oils obtained by distillation of 
high temperature coal tar, of which more than 65% by 
volume distils at a temperature of up to 250°C 
(including mixtures of petroleum spirit and benzole), 
for use as power or heating fuels. 
ex 2709 Crude oils obtained from bituminous minerals. 
2710 to 2712 Petroleum oils and oils obtained from bituminous 
materials, other than crude; preparations not 
elsewhere specified or included, containing by weight 
70% or more of petroleum oils or of oils obtained 
from bituminous materials, these oils being the basic 
constituents of the preparations. 
Petroleum gases and other gaseous hydrocarbons. 
Petroleum jelly; paraffin wax, microcrystalline 
petroleum wax, slack wax, ozokerite, lignite wax, peat 
wax, other mineral waxes and similar products 
obtained by synthesis or by other processes, whether 
or not coloured. 
2713 to 2715 Petroleum coke, petroleum bitumen and other residues 
of petroleum oils or of oils obtained from bituminous 
materials. 
Bitumen and asphalt, natural; bituminous or oil shale 
and tar sands; asphaltites and asphaltic rocks. 
Bituminous mixtures based on natural asphalt, on 
natural bitumen, on petroleum bitumen, on mineral tar 
or on mineral tar pitch. 
2.2 Before being conveyed totally or partly to one or more countries of the European 
Community under the cover of one or more replacement certificates, the products 
referred to above may only be subjected to unloading, storage or loading operations 
in the harbour facilities of your country. 
2.3 In application of the preceding points concerning the petroleum products 
mentionned in the first paragraph reference is made, especially in the field of 
administrative co-operation, to the pertinent provisions of the following regulations: 
Council Regulation (EEC) No. 3281/94 of 19 December 1994 applying 
Generalized Tariff Preferences for the period 1995-1998 in respect of certain 
industrial products originating in developing countries. 
Commission Regulation (EEC) No. 2454/93 of 2 July 1993 laying down 
provisions for the implementing of Council Regulation (EEC) No. 2913/92 
establishing the Community Customs Code, as last amended by Regulation 
(EC) No.3254/94. 
2.4 Your country must commit itself to ensuring the correct implementation of the 
present agreement especially with regard to the respect of the following provisions: 
2.4.1 All operations referred to at 2.2 carried out in the harbour installations of 
Malta are carried out under the control of the customs authorities of your 
country. Those authorities shall also be competent to establish replacement 
certificates (Form A). 
2.4.2 The storage of the products in the harbour facilities of your country is carried 
out in accordance with the "accounting segregation" method (1). Every three 
months the Maltese authorities shall send to the Commission services of the 
European Community a statistical statement containing the products by 
category and by country of origin, with reference to the certificate Form A 
issued by those countries, the quantities which have arrived, which are in 
storage and which have been re-exported. In the latter instance, an indication 
must be made to the country or countries of destination along with a reference 
to the replacement certificate. 
The first communication will be effected within the first fifteen days of the 
fourth month following the date of entry into force of this agreement. 
2.4.3 The replacement certificates will be accompanied by a photocopy of the initial 
certificate and will clearly indicate, in box 4, the state of attribution of the last. 
They must also be accompanied by the bill of loading or by another 
corroborating document delivered in the GSP beneficiary country in order to 
assure that the goods covered by the replacement certificate are of the same 
quality as those originally imported intially in Malta. 
2.4.4 At the request of the Commission services, a Member State of the Community 
or on the initiative of the competent Maltese authorities, joint missions will be 
carried out to assure the correct operation of the present agreement. 
3. The European Community can immediately suspend the application of the present 
arrangement in the case where there are serious doubts as to its correct operation. 
However, the competent authorities of your country shall be informed as a 
preliminary. 
4. This agreement shall be valid for an initial period of 18 months from the date of its 
entry into force. 
5. The Community would be grateful to your country for kindly confirming in writing 
that it accepts the preceding conditions". 
We have the honour Sir, to assure you of our highest consideration 
On behalf of the Council 
of the European Union 
(1) Accounting segregation: procedure permitting effective verification by customs 
services, by written controls, that the quantity of reexported products corresponds 
to the quantity of products initially imported. 
c 
B. Letter from Malta 
Dear Sir, 
I have the honour to acknowledge receipt today of your letter reading as follows: 
"1. During 1993 and 1994, your country requested authorisation from the European 
Community to issue certificates to replace certificates Form A delivered by the 
Generalised System of Preferences beneficiary countries in the Middle East for 
certain petroleum products transiting through Maltese territory. 
2. The European Community is disposed to granting you such an authorisation under 
the following conditions: 
2.1 That authorisation is limited to the petroleum products which appear in the 
following list and which are accompanied by a Form A certificate delivered in 
the countries bordering the Mediterranean and Black Seas and the Persian 
Gulf (Algeria, Morocco, Tunisia, Egypt, Saudi Arabia, Oman, the United 
Arab Emirates, Qatar, Bahrain, Kuwait, Syria, Lebanon, Iran, Russia, Ukraine 
and Georgia) insofar as they are not the subject of a suspension from tariff 
preferences in application of the provisions set out in Council Regulation No 
3281/94 of 19 December 1994; the said petroleum products must arrive in 
your country accompanied by a Form A certificate, and be destined for a 
European Community country: 
HS Code Description of the goods 
ex 2707 Oils in which the weight of the aromatic constituents 
exceeds that of the non-aromatic constituents, being 
oils similar to mineral oils obtained by distillation of 
high temperature coal tar, of which more than 65% by 
volume distils at a temperature of up to 250°C 
(including mixtures of petroleum spirit and benzole), 
for use as power or heating fuels. 
ex 2709 Crude oils obtained from bituminous minerals. 
2710 to 2712 Petroleum oils and oils obtained from bituminous 
materials, other than crude; preparations not 
elsewhere specified or included, containing by weight 
70% or more of petroleum oils or of oils obtained 
from bituminous materials, these oils being the basic 
constituents of the preparations 
Petroleum gases and other gaseous hydrocarbons. 
Petroleum jelly; paraffin wax, microcrystalline 
petroleum wax, slack wax, ozokerite, lignite wax, peat 
wax, other mineral waxes and similar products 
obtained by synthesis or by other processes, whether 
or not coloured. 
? 
2713 to 2715 Petroleum coke, petroleum bitumen and other residues 
of petroleum oils or of oils obtained from bituminous 
materials. 
Bitumen and asphalt, natural; bituminous or oil shale 
and tar sands; asphaltites and asphaltic rocks. 
Bituminous mixtures based on natural asphalt, on 
natural bitumen, on petroleum bitumen, on mineral tar 
or on mineral tar pitch. 
2.2 Before being conveyed totally or partly to one or more countries of the European 
Community under the cover of one or more replacement certificates, the products 
referred to above may only be subjected to unloading, storage or loading operations 
in the harbour facilities of your country. 
2.3 In application of the preceding points concerning the petroleum products 
mentionned in the first paragrap reference is made, especially in the field of 
administrative co-operation, to the pertinent provisions of the following regulations: 
Council Regulation (EEC) No. 3281/94 of 19 December 1994 applying 
Generalized Tariff Preferences for the period 1995-1998 in respect of certain 
industrial products originating in developing countries. 
Commission Regulation (EEC) No. 2454/93 of 2 July 1993 laying down 
provisions for the implementing of Council Regulation (EEC) No. 2913/92 
establishing the Community Customs Code, as last amended by Regulation 
(EC) No. 3254/94. 
2.4 Your country must commit itself to ensuring the correct implementation of the 
present arrangement especially with regard to the respect of the following 
provisions: 
2.4.1 All operations referred to at 2.2 which carried out in the harbour installations 
of Malta are carried out under the control of the customs authorities of your 
country. Those authorities shall also be competent to establish replacement 
certificates (Form A). 
2.4.2 The storage of the products in the harbour facilities of your country is carried 
out in accordance with the "accounting segregation" method (1). Every three 
months the Maltese authorities shall send to the Commission services of the 
European Community a statistical statement containing the products by 
category and by country of origin, with reference to the certificate Form A 
issued by those countries, the quantities which have arrived, which are in 
storage and which have been re-exported. In the latter instance, an indication 
must be made to the country or countries of destination along with a reference 
to the replacement certificate. 
The first communication will be effected within the first fifteen days of the 
fourth month following the date of entry into force of this agreement. 
î 
2.4.3 The replacement certificates will be accompanied by a photocopy of the initial 
certificate and will clearly indicate, in box 4, the state of attribution of the last. 
They must also be accompanied by the bill of loading or by another 
corroborating document delivered in the GSP beneficiary country in order to 
assure that the goods covered by the replacement certificate are of the same 
quality as those originally imported intially in Malta. 
2.4.4 At the request of the Commission services, a Member State of the Community 
or on the initiative of the competent Maltese authorities, joint missions will be 
carried out to assure the correct operation of the present agreement. 
3. The European Community can immediately suspend the application of the present 
arrangement in the case where there are serious doubts as to its correct operation. 
However, the competent authorities of your country shall be informed as a 
preliminary. 
4. This agreement shall be valid for a period of 18 months from the date of its entry 
into force. 
5. The Community would be grateful to your country for kindly confirming in writing 
that it accepts the preceding conditions". 
I have the honour to confirm the agreement of my government to the above. 
I have the honour Sir, to assure you of my highest consideration 
For the Government of Malta 
(1) Accounting segregation: procedure permitting effective verification by customs 
services, by written controls, that the quantity of reexported products corresponds 
to the quantity of products initially imported. 
3 
FINANCIAL STATEMENT 
The agreement is neutral in financial terms. It makes no new concessions. It consists 
simply of an arrangement by which certain oil products will continue to benefit from the 
generalized tariff preferences even if the products are stored in Malta whilst in transit to 
the Community. 
Information regarding existing or planned prevention and protection measures: 
operations will be strictly limited to storage-related handling (paragraph 2.2 of the 
agreement); 
the arrangement provided for in paragraph 2.4.3 of the agreement has been 
included to make it possible to check that the quantities and qualities of products 
entering Malta correspond to the quantities and qualities exported to the 
Community. 
> D 

ISSN 0254-1475 
COM(95) 692 final 
DOCUMENTS 
EN 11 12 
Catalogue number : CB-C0-95-727-EN-C 
ISBN 92-77-98070-2 
Office for Official Publications of the European Communities 
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