ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)668
Vol.1975/0245

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COMMISSION CPTHESUS0ESAN COMMUNITIES
COM(75)668final
Brussels,19December1975
Proposalfora
COUNCILDIRECTIVE
ontheapplicationoftheCouncilDirectiveof4March1969*
concerninginwardprocessingauthorisations forcertainpro­
ductsoriginating fromEFTAstatesandtheFaroeIslands
(sabmitted ."bytheCommissiontotheCouncil)
GOi;(75)663final

EXPLANATORY MEMORANDUM
I.TheProblem
1.1 .Under Article 5oftheCouncil Directive ofkMarch 19^9 ontheharmoni­
sation ofprovisions laid down bylaw ,regulation oradministrative
action inrespect ofinward processing (69/73/EEC)competent authorities
-oftheMember States maygrant inward processing authorisations inall
cases where theprocedu© contributes towards providing themost fa­
vourable conditions for the export ofgoods resulting from such proces­
sing without conflicting with essential interests ofproducers within
theCommunity .Theauthorities must thus weigh uptheinterests at
issue .
1.2 .Processors inDenmark and theUnited Kingdom canobtain products ori­
ginating from EFTA states free ofduty without resorting tothe inward
processing procedure .Processcrs operating intheCommunity asoriginally
constituted ontheother hand ,must resort totheinward processing pro­
cedure toobtain these products free ofduty .This implies -the'examina­
tion oftheconditions provided forinArticle5(1)oftheDirective
69/73/EEC .Moreover that examination must relate totheCommunity as "
currently established . / '* .■■
1.3 .Products originating from theEFTA states andtheFaroe Islands ,asa
general rule according tothecalendar oftariff reductions ,benefit from
areduction to20%ofthebasic customs duty onimportation into the
Community *from IJanuary 1976 .
These tariff reductions arise from agreements concluded between the
European Economic Community andtheEFTA states ,and therules onimports
originating from theFaroe Islands .
These customs duties will beabolished onIJuly 1977 for -most of
these products .

-2-
1.4 .Aaaresult ofthis reduction inbasic duties the use ofthe inward
I
processing procedure cannot conflict with the essential interests of
Community producers :itappears opportune therefore togrant to
processor® intheCommunity asoriginally established andinIreland , 1
thesame treatment .asthat granted toBritish andDanish processors .
Tothis end itisnecessary toconsider theconditions ofArticle 5(1)
ofDirective 69/73/&ECasbeing fulfilled * ,
1.5 *The abandonment ofthe evaluation ofthe .interests atstake for certain
processing traffic with theEFTA states and theFaroe Islands would
lead moreover toanadministrative simplification which would beinclu­
dedwithin theframework ofsimplification setoutinArticle 5(2)and
(3)ofDirective 69/73/EEC ,inDirective 7M&7 /EECandinthedraft
Directive onrepaired goods (Doc .GUD/299/75,RPA 4-92).
.Thegoods which mefcrbtf taken into account forsuch asimplification are
examined below . # : : -■>
2.Thegoods concerned ^ v .v
2*1 .Thegoods intended forinward processing which aretobetaken into
account ,areproducts originating from the following' EFTA countries :
-Austria (Reg.(EEC)2836/72,O.J. L300of31.12.1972 ,p.1) .
" -Sweden '(Reg.(EEC)2838/72,O.J. L300df31.12.1972 ,p.96)
-Switzerland (Reg.(EEC)2840/73,"O.J.' L300of31.12.1972 ,"p.188)
'0-Iceland ^" (Reg.(EEC)2842/72,O.J. L301of31.12.1972 ,p.1)
-Portugal (Reg.(EEC)2844/72,O.J. L301ofJI,12.1972 ,p.164)
-Norway "(Reg.(EEC)1691/73,O.J. L171of27.06.1973 ,p.1)
'" Finland (Beg.(EEC)3177/73,O.J.L328of28.11.1973 ,P-1)
2.2.Theproducts concerned (Article 2oftheagreements )are :1 :
1 ' s..,
./.

2.2.1 .products falling under Chapters 25-99oftheCommon Customs
Tariff with theexception ofthefollowing products (which
appear intheannexes totheagreements )
A S CH IS P Ν SF
ex55.01 Χ
35.02 Χ Χ Χ Χ Χ Χ χ
35.05 Χ
ex38.12 Χ
ex38.19 Χ
ex38.19 Χ
ex39-06 Χ
^5.01 Χ χ χ χ χ χ χ
54.01 χ χ χ χ χ χ χ
57.01 χ χ χ χ χ χ . -χ
2.2.2 .products inProtocol No.2referred toinArticle 9ofthe
agreements (processed agricultural products )subject tothe
particular rules provided for intheprotocols .
Theoriginating products referred toin2.2 .shall ,from IJanuary
197^,inprinciple only besubject toacustoms duty reduced to20%
ofthebasic duty (Articles 3and5oftheagreements ).This principle
issubject tothefollowing exceptions (particular rules ofProtocol
No1referred toinArticle 8oftheagreements ):
2.3.1 .products .inChapters 48and49oftheCCT (with theexception
of48.09 );theprogramme oftariff reduction extends until
1984 .
2.3.2 *products inArticles 2and 3ofProtocol No1;theprogramme
oftariff reductions continues until 1980 ,andtheproducts
are set out inthe following table :

28.56 r
45.02
45.03
45.04
55.05
55.09
56.01
56.02
56.07
57.10
59.04
60.04
60.05
61.01,61.02
61.05,61.04
ex73-02
ex73.15
73.18,
76.01
76.02,.76.03
77.01
'78.01
79.01
81.01
81.02
81.03
81.0b

-5-
2.b .Finally ,under thsterms ofRegulation (EEC )No2051/7^(OJNoL212
of2.8.197 ^p.33)andRegulation (EEC )Ho .3I&k/?k (OJNoL3^of
23.12.197*0 products originating from theFaroe Islands andfalling
within Chapters 25-99 oftheCommon Customs Tariff ,have tobetaken
into account .
However there areexcluded from the field cfapplication ofthese
Regulations :
-jjroducts referred toinCouncil Regulation (EEC)No2682/72
of12December 1972 laying down general rules forgranting
export refunds oncertain agricultural products exported in
the form ofgoods not covered byAnnex IItotheTreaty ,and
thecriteria forfixing theamount ofsuch refunds ,
-products referred toinCouncil Regulation NoI70/67/EECof
27June 1967 ontheCommon System oftrade forovalbumin and
lactaLbumin ,repealing Regulation No48/67/EEC .
3.Conclusions ' .
3.1 .Given theadministrative simplification sought for ,itseems tothe
Commission that inprinciple ,thegoods tobesubject tothis simpli­
fication (point 2)should bethose which fall within Chapters 25-99
oftheCommon Customs Tariff (point 2.2.1 .),butnotprocessed agri­
cultural products (point 2.2.2 .)onwhich ,since theamount varies ,
there isavariable element tobecollected .These products must be
compared togoods inChapters 17-2.koftheCommon Customs Tariff to
which theprojected rules donot apply .
3.2 .Due tothespecial timetable fortheir tariff reduction goods falling ,
within Chapters *f8and^9oftheCCT (point 2.3.1 .)should beexcepted
from this principle .Another exception should bemade for the goods
referred toinpoint 2.3«2 .for the same reason .

-r6-
3*3 .Inrelation toIreland aspecial time-table fortariff reductions -is
foreseen forgoods referred toinArticle 3ofProtocol -No.1ofthe
agreement concluded between theEuropean Eoonomic Community arid
Portugal .Forthis reason those goods should beexcluded from the
»
simplification process sought forthis Member State . •
3.b .Forthesake ofcompleteness itshould bepointed outthat headings
^5»0I and35*02 oftheCCThave notbeen taken into account ,since
they areexcluded from alltheagreements ,Similarly headings 5^.01
and 57.01 are excluded because their rate iszero .
3-5 .Finally itseems equally necessary totheCommission topropose that
this simplification should apply togoods originating from theFaroe
Islands (paint 2.4 )
3.6 .Theproposed Directive isintentionally limited toessentials toallow
asolution toreached atthebeginning of1976 .This does notexclude
subsequent simplifications .

Proposal for a
: ,,■■■:• ■;-r-- COUNCIL DIRECTIVE 5 '--
ontheapplication df'the'Council Directive of March 1969 ,
concerning inward processing authorisations
forcertain products originating from
EFTA states and the Faroe Islands .
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ;
Having regard totheCouncil Directive ofbMarch 1969 (1)onthe
harmonisation ofprovisions laid down bylaw ,regulation oradminis­
trative action inrespect ofinward processing ,asamended bythe
ActofAccession (2),'and inparticular Article 29thereof ;
Having regard totheproposal from theCommission ;
Whereas ,within theterms ofArticle 5(1)oftheDirective 69/73/EEC
thegranting ofinward processing presupposes that itwill contribute
towards providing themost favourable conditions fortheexport of
goods resulting from such processing without conflicting with essen­
tial interests ofproducers within theCommunity ;
Whereas processors in'Denmark and theUnited Kingdom canobtain pro­
ducts originating from EFTA states free ofduty without thenecessity
ofresorting tothe inward processing procedure }
Whereas ontheother hand processors established within theCommunity
asoriginally established ,and inIreland ,must resort totheinward
processing procedure inorder toobtain these products free ofduty ;
whereas resorting tothis procedure' invo'lves theexamination ofthe
(1)69/73/EEC ,O.J. No.L58of8.3,1969 *P-1.
(2)O.J. No.L73of26.3.1972 .p.1^.

conditions toreferred to 'inArticle -5fi)}VWhereas that examination
must relate totheCommunity ascurrently established ; *• » •i
Whereas ,according tothe .time-table oftariff reductions ,products
originating from EFTA states ,on .importation into theCommunity ,asa
general rule benefit from areduction to20%ofthebasic customs
duties asfrom 1January 19?6 >whereas these duties aretobeabolished
from 1July 197?formost products :whereas this tariff reduction re­
♦• T
suits from agreements concluded between theEuropean Economic Community
and the EFTA states aslisted below ;
Austria :Regulation (EEC )No.2836/72 (1)
Sweden :Regulation (EEC )No.2838/72(2)
Switzerland Regulation (EEC)No.2840/72'(3) 1
Iceland --:Regulation (EEC )No.2842/72(4)
Portugal > :Regulation (EEC)No*2844/72(5) •'
Norway : :Regulation (EEC)' No.I69I/-73 (£)■ ' •1 ''•■':
Finland :Regulation (EEC )No,3177/73(7)
Whereas asaresult ofthis reduction inbasic duties resorting tothe
inward processing procedure cannot conflict with theessential interests
ofproducers within theCommunity ;whereas itappears opportune togrant
toprocessors intheCommunity asoriginally constituted ,ant ?,inIreland ,
treatment equivalent tothat granted toprocessors intheUnited Kingdom
andDenmark ;whereas tothat end itisnecessary toconsider thecondi­
tions ofArticle 5(1)oftheDirective 69/73/BECasbeing fulfilled ;
• • ■ ; ■ •;■ •••• ■ :■V.
(1)OJNo.L300of31.12.1972 ,p.1.
(2)OJNo.L300of3I.I2..I972 ,p.96.
* •'•' >
(3)OJNo.L300of31.12 .1972 ,p.188.
(4)OJ .No.L^01òi3i.i2.i972 ,p.I».>
(5)OJNo.L301of31.12.1972 ,p.I.
(6)OJNo.L171of27.06 .I973 »p.I.
(?)OJNo.L328of28.11.19*73 ,P. °

Whereas thegoods concerned are those falling within Chapters 25-99
oftheCommon Customs Tariff insofarastherate ofduty onimportation
isreduced to20%ofthebasic rate ofduty setoutintheagreements
mentioned above *
Whereas since therates ofbasic duty Arealmost always identical tothe
rate ofduty intheCommon Customs Tariff ,these rates can beretained
forreasons ofadministrative simplification ; ' :
Whereas itisnecessary toexclude from theprojected rules those proces­
sedagricultural products onwhich there isavariable element based on
Article 5(1)(b)ofCouncil Regulation No.1059/69(I)of28May1969
determining the system oftrade applicable toeertain goods processed
from agricultural products ,aslast amended byRegulation (EEC)~No ..
1589/75(2);whereas ineffect these products arecomparable tothe >
products inChapters 17-2 **oftheCommon Customs Tariff towhich these rules
donot apply ;
Whereas theenvisaged rules must also beapplied toproducts originating
from theFaroe Islands ,which byvirtue ofRegulation (EEC )No.2051/7^(3)
ofIAugust 197^benefit from a--procedure analogous tothat from which
products originating intheEFTA states benefit ,onimportation into the
Community
HAS ADOPTED THIS DIRECTIVE : '
> • •-*
Article 1
1.When goods falling within Chapters 25-99oftheCommon Customs Tariff
originating inAustria ,Sweden ,Switzerland ,Iceland ,Portugal ,Norway
Finland ortheFaroe Islands are introduced into theCommunity ,there
./.
■;- '' : , .' t
(1)OJNo.LIklof12.06.1969 ,p.1.
(2)OJNo.L.I63 of26.06.19 75,p.9.
(3)OJNo.L212of02.08.197% p.33.

mkm j
i
'tobeprocessed under inward processing arrangements ,■these operations ;
shall beconsidered ,under theterms ofArticle 5(1)oftheCouncil Direc <
tive of4March 1969 ontheharmonisation ofprovisions laid down bylaw ,!
regulation oradministrative action inrespect ofinward processing ,as ^^
contributing towards providing themost favourable conditions fortheex- «
port ofgoods resulting from such processing without conflicting with "!
essential interests ofproducers within theCommunity ,insofar asthe
rate ofimport duty isreduced to20%ofthebasic rate ofduty inthe
Common Customs Tariff .
The origin ofthegoods shall bedetermined byProtocol No.3annexed to
each agreement concluded between theEuropean Economic ;Community and ^the
states mentioned inthis paragraph ,orbyRegulation -(EEC).No3184/7^of
the aCommission of .6December 197^.CI)concerning thedefinition ofthe
concept oforiginating products andmethods ;.ofadministrative cooperation
for theapplication ©ftecustoms procedure applicable .to'certain products
originating inandcoming from theFaroe Islands . •*...
2,Theprovisions ofparagraph 1shall notapply togoods ®nwhich avariable
■(element ischarged on(.the .basis ofArticle -5:<(■1}(b)ofRegulation {EEC)
No..1059/69. .♦ ,, . ,
Article 2 ' /. .
1.TheMember States shall bring into force themeasures necessary tocomply j
with this Directive not later than and shall inform theCommission
immediately . - _ ' 1
2.The Commission shall communicate theinformation totheother Member Statei
-Article 3 ;.<■
This Directive shall beapplicable until 30Juno 1977 • 1
fm- t*■ '"
m '
(I)OJNo.L3kkof23.12.19 74,P.1 ... ">/•

5
Article 4
i This Directive isaddressed tothe Member States .
S
Done atBrussels , For the Council
The President