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DOCUMENTS "COM"
COM(73)2131
Vol.1973/0387

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73 )2131 final
Brussels .14December 1973
PROPOSAL TOR A
REGULATION (EEC)OPTHECOUNCIL
ontheopening oftariff preferences (partial suspension of
customs duties )forproducts made from jute andcoir originating inIndia
andproducts made from jute originating inBangladesh
(submitted totheCouncil bytheCommission )
COM(73 )2131 final

EXPLANATORY MEMORANDUM
1.Initsoffer ongeneralized preferences made atUNCTAD theCommunity ,has
provided that thepreferential treatment will cover ,ingeneral ,allmanufactured
andsemi-manufactured products falling within Chapters 25to99oftheBrussels
Nomenclature andoriginating indeveloping countries .This preference will
consist intheelimination ofcustoms duties .
However ,asregards jute andcoir products theCommunity 'soffer only provides for
anelimination ofcustoms duties intheframework ofspecial measures tobe
determined with theexporting developing countries .
2.Inorder tocomplete these arrangements theCommission has "been authorized
tonegotiate onbehalf oftheCommunity with theapplicant countries ,namely :
India asregards jute and coir products andBangladesh asregards jute products .
Thenegotiations with India have resulted inthedrawing upoftwoAgreements ;
those with Bangaladesh areinprocess andwill shortly lead tothe same results .
There isnotprovision ,inparticular ,inthese agreements (except intheagreement
oncoir products )that theexporting countries will apply appropriate measures
inorder that exports oftheproducts intended forconsumption within theCommunity
will notexceed certain agreed ceilings .
'■i'
3.TheCommission believes that theAgreements concluded with India and ,inthe
near future ,with Bangladesh ontrade inproducts manufactured from jute andcoir
contain special measures provided forintheCommunity 'soffer ofpreferences
forthese twoproducts .Itproposes ,therefore ,toextend totheproducts concerned
from 1January 1974 theCommunity 'sgeneralized tariff preferences .

inaccordance with therules and .timetable contained intheproposed Regulation
attached hereto and summarized "below :
(a)Thegeneralized tariff preferences forproducts manufactured from jute in
India andBangladesh shall "besubject topreferential duties for 1974 as
shown foreach ofthese products ; ;
(b)Similar provisions shall apply tocoir products originating inIndia ;
(c)InDenmark ,Ireland andtheUnited Kingdom tariff adjustments arising outof
theapplication ofthepreferential duties shown intheproposed Regulation
maybeintroduced gradually inaccordance with Article 2(2)oftheAgreements .
In1974 »theUnited Kingdom andDenmark will continue toapply theduties
appearing intheir 1973 tariff toproducts coming from India andBangladesh
sothat ,inaccordance withtheJoint Declaration ofIntent\theymayavoid
adeterioration intraditional trade flows brought about bytoospeedy
aremoval ofduties which formerly applied tothese products .Asregards
Ireland ,itisconsidered appropriate that ,taking account ofthevery high
rates inforce atpresent forjute products itshould beallowed toalign its
rates gradually with those provided for ,that istosayonthedates andin
order fixed inArticle 39oftheTreaty ofAccession .
1Joint Declaration ofIntent onthedevelopment oftrade relations with Ceylon
(SriLanka ),India ,Malaysia ,Pakistan andSingapore annexed totheActof
Accession .

Proposal fora
REGULATION (EEC) OPTHECOUNCIL
on -theopening oftariff preferences (partial suspension
ofcustoms duties )forproducts made from jute andcoir
»
originating inIndia andproducts made from jute originating
inBangladesh
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Article 113thereof ;
Having regard totheproposal from theCommission ;
Whereas within theframework ofUNCTAD theEuropean Economic Community has
made anoffer concerning the granting oftariff preferences forfinished and
semi-finished products from developing countries ;whereas thepreferential
treatment provided forbythat offer covers ,ingeneral ,allfinished andsemi­
finished products falling within Chapters 25to99oftheBrussels Nomenclature
andoriginating indeveloping countries .
Whereas theoffer contains aclause stipulating that theCommunity hasmade the^
offer onthebasis that alltheprincipal industrial countries which aremembers
oftheOECD grant preferences anddevote comparable efforts tothat endand it
follows from theconclusions reached within UNCTAD that theoffer isprovisional
does notconstitute abinding commitment and ,inparticular ,maysubsequently be
withdrawn inwhole orinpart ;whereas withdrawal might bedecided on,among
other measures ,inorder tocorrect anyunfavourable situations which might arise
intheassociated countries asaresult oftheapplication ofthesystem of
generalized preferences ; ; .

-2-
Whereas,however,asregardsjuteand.coirproducts,theofferonlyincludes
theelimination ofcustomsdutieswherespecialarrangements havebeenmadewith
thedevelopingexportingcountries ;
WhereasAgreementshavejust"been betweentheCommunityandIndia
andBangladeshrespectively concerningproductsmadefromjuteandcoir;whereas
thesaidAgreementsrefer,inparticular ,tothe"JointDeclaration ofIntent
onthedevelopmentoftraderelationswithCeylon(SriLanka),India,Malaysia,
PakistanandSingapore"containedintheActannexedtotheTreatyconcerning
theAccessionof:_newMemberStatestotheEuropeanEconomicCommunity,andtothe
EuropeanAtomicEnergyCommunity,signedon22January1972,andlayingdown
specialregulations governingtradeintheseproductswiththeCommunity;
Whereas ,itisprovided,inparticular ,thattheCommission
should,autonomously andwithinthescopeofitsofferonthegrantingofgeneralize
tariffpreferencesforproductsmadefromjuteandcoir,partiallyandbystages
suspendoutCommonCustomsTariffdutiesrelatingtotheseproductsfrom1January 1
WhereasinthelightofProtocolNo23annexedtotheActjoinedtotheTreaty
concerningtheAccessionofnewMemberStatestotheEuropeanEconomicCommunity
andtotheEuropeanAtomicEnergyCommunitythenewMemberStatesareauthorized
todeferuntil1January1974theapplication ofthegeneralizedtariffpreference
schemeappliedbytheEuropeanEconomicCommunitytoproductsoriginatinginthe
I-developingcountries ;whereasitfollowsthatfromthatdatethenewMemberStates
willhavetoapplyinfullthecustomsdutiesprovidedforinthegeneralized
tariffpreference schemeoftheEuropeanEconomicCommunitytoproductsmadefrom
juteandcoir;whereas,however,Article2(2)oftheabovementioned Agreements
concerningtheseproducts1ayrdownthatinDenmark,IrelandandtheUnitedKingdom
thetariffadjustmentsresultingfromtheopeningofthepreferencesinquestion
maybeintroducedgradually ;
(1)O.J.nr.L73dated27.3.1972,p.195
(2)P.J.nr.L73dated27-3.72,p.178

Whereas,therefore,inrespectoftheproductscoveredbyArticle1ofthis
Regulation,theCommissionshoulduntil31December1974allowimportstobe
partiallyfreefromcustomsduties;whereasthebenefitofthesereductions
shouldbegrantedonlyfortheproductsoriginatinginIndiaandBangladesh ;
whereasforthisreasontheprovisionsconcerningthedefinitionoftheconcept
pftheoriginofgoodsshouldbeappliedtotariffpreferencesgrantedbythe
EuropeanEconomicCommunityforproductsfromdevelopingcountriesfortheperiod
from1Januaryuntil31December1974*

HASADOPTEDTHISREGULATION :
••.......---.Artieie1e-! :■■■■■■.ts,,
1.Prom1Januaryuntil31December1974»the?CommonCustomsTariffduties
, »
ontheproductslistedhereaftershall"besuspendedpreferentially atthe
ratesshowninrespectthereof.' '"r ':*'
Headingnumber
intheCommon
CustomsTariffDescriptionPreferential rates
ofduty
ex57*06Juteyarn
ex57.10 Wovenfabricsofjute
A.Ofawidthofnotmorethan150cm
andweighingpersquaremetre:
I.Lessthan310g;
II.Notlessthan310gbutnot
.morethan500g;
III.Morethan500g.
B.Ofawidthmorethan150cm
ex58*02Othercarpets,carpeting,rugs,mats
andmatting,and"Kilim","Schumacks"
and"Karamanie"rugsandthelike
(madeupornot):
A.Carpets,carpeting,rugs,matsand
matting:
exI.Coirmatsandmatting
ex62.03Sacksandbags,ofakindusedforthe
packingofgoods:
exA.Ofjute:
II.Other:
(a)Offabricweighingless
than310g/m^4.8
12
11.4
9
13.2
13.8
12

-5-
62.03
(cont.)(b)offabricweighingnotless"than
310g/m^butnotmorethan500g/m^
(c)offabricweighingmorethan500g/m11.4
9
2.In1974DenmarkandtheUnitedKingdomshallretainthenational
customstariffthattheyappliedin1973fortheproductsconcerned.Forjute
textileproductsfallingwithintariffheadingsex57*06,ex57-01and62.03exA
mentionedaboveIrelandshalj.alignitsnationalcustomstariffdutieswiththe
abovementioned preferential ratesonthedatesandintheorderfixedin
Article39(1)and(2)oftheActofAccession.
3.ThebenefitofthesuspensionsreferredtoinArticle1shallbereserved
forproductsoriginatinginIndia;productsoriginatinginBangladeshshallalso
benefitfromthesesuspensions ^exceptcoirmatsandmattingfallingwithintariff
heading58.02AexI.Theconceptoftheoriginofgoodsshallbeasprovided
forbytheprovisionsrelatingtheretowhichapplytoproductsbenefitting
fromtariffpreferencesgrantedbytheEuropeanEconomicCommunitytodeveloping
countriesfortheperiodfrom1Januaryuntil31December1974*
Article2
1.TheCommission,inclosecollaboration withMemberStates,shalltakeall
necessarymeasurestoensurethattheforegoingprovisionsareapplied.
2.TheMemberStatesshallregularlyinformtheCommissionofimportsbenefitting
undertheprecedingprovisions.
Article3
ThisRegulationshallenterintoforceonthethirddayfollowingitspublication
intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbeIsindinginitsentiretyanddirectlyapplicableinall
MemberStates.
DoneatBrussels, PortheCouncil
ThePresident