Proposal for a COUNCIL REGULATION amending Regulation (EC) No 3050/95 temporarily suspending the autonomous Common Customs Tariff duties on a number of products intended for the construction, maintenance and repair of aircraft

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. By Council Regulation (EC) No 3050/95 of 22 December 1995 Common Customs Tariff duties for a number of products intended for the use in aircraft had been suspended in full. However, the import duties for these products are only suspended when they are subject to an end use control in accordance the provisions of Community's Custom Code i.e. when they are used solely for civil aircraft.

2. Similar tariff suspensions combined with the same end use provisions of the Customs Code were introduced in the Combined Nomenclature in connection with the GATT aircraft agreement. The end use for these products was not only restricted to the use in civil aircraft but also included parts for ground flying trainers for civil use.

3. In view of the above it is appropriate to align the end use provision of Council Regulation (EC) No 3050/95 with provisions of the Combined Nomenclature and to extend the end use of the autonomous tariff suspension introduced with Council Regulation (EC) No 3050/95 to ground flying trainers for civil use. The extension will also simplify the administration and control of the end use for the economic operators and the customs authorities.

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 3050/95 temporarily suspending the autonomous Common Customs Tariff duties on a number of products intended for the construction, maintenance and repair of aircraft

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],

[1] OJ C , , p. .

Whereas:

(1) By Council Regulation (EC) No 3050/95 [2] Common Customs Tariff duties for a number of products intended for the construction, maintenance and repair of aircraft were suspended in full. However, import duties for these products are only suspended when they are subject to an end-use control in accordance with the provisions of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code [3](hereinafter: "Customs Code") and of Commission Regulation No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code [4], that is to say, when they are used for civil aircraft only.

[2] OJ L 320, 31.12.1995, p. 1.

[3] OJ L 302, 19.10.1992, p.1. The Regulation as last amended by Regulation (EC) N°2700/2000 ( OJ L 311, 12.12.2000, p.17).

[4] OJ L 253, 11.10.1993, p.1. The Regulation as last amended by Regulation (EC) N°993/2001(OJ L 141, 28.5.2001, p.1).

(2) Similar tariff suspensions combined with the same end -use provisions of the Customs Code were introduced in Section II, B, of the Preliminary Provisions of the Combined Nomenclature in connection with the GATT aircraft agreement. The end -use for these products was the manufacture, repair, maintenance, rebuilding, modification or conversion, not only of civil aircraft, but also of ground flying trainers for civil use.

(3) In view of the above it is appropriate to amend Regulation (EC) No 3050/95 in order to align its end- use provision with the provisions of the Combined Nomenclature and to extend the autonomous tariff suspension introduced by Regulation (EC) No 3050/95 to ground flying trainers for civil use. The extension will also simplify the administration and control of the end -use for the economic operators and the customs authorities,

HAS ADOPTED THIS REGULATION:

Article 1

In Article 1 of Regulation (EC) No 3050/95, the first sentence is replaced by the following :

"The autonomous Common Customs Tariff duties for the products listed in the Annex shall be totally suspended, provided that those products are intended for the construction, maintenance and repair of aircraft of an unladen weight exceeding 2 000 kilograms and of ground flying trainers for civil use."

Article 2

This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Communities.

It shall apply from 1 April 2002.

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

Done at Brussels,

For the Council

The President

FINANCIAL STATEMENT

1. Title of operation

Proposal for a Council Regulation amending Regulation (EC) No 3050/95 temporarily suspending the autonomous Common Customs Tariff duties on a number of products intended for the construction, maintenance and repair of aircraft.

2. Budget heading(s) involved

Chap. 12 art. 120 (1210 + 1060).

3. Legal basis

Article 26 of the Treaty

4. Description of operation

4.1 General objective

The draft proposal extends the application of the autonomous tariff suspension, introduced with Council Regulation (EC) No 3050/95, to ground flying trainers for civil use in order to bring them in line with the tariff suspensions introduced in connection with the GATT aircraft agreement.

4.2 Period covered and arrangements for renewal

The same as Council Regulation (EC) No 3050/95

5. Classification of expenditure or revenue

Common Customs Tariff duties

6. Type of expenditure or revenue

- Other:

- Suspension of Common Customs Tariff duties

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

The loss of own resources (CCT duties) is estimated on the basis of the lost revenue in year 2000 for the imports of the products subject to tariff suspensions in accordance with Council Regulation (EC) No 3050/95. The future loss of revenue for these products used for civil ground flying trainers had been estimated at 3 % of total loss of revenue.

Total loss of revenue in 2000 for products intended for the construction, maintenance and repair of aircrafts 2.867.000 EUR

Estimated loss for ground flying trainers (3% of the above) 86.010 EUR

7.2 Itemised breakdown of cost

Loss of revenue in EUR

>TABLE POSITION>

8. Fraud prevention measures

The end-use of the products covered by this Regulation will be controlled 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.