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DOCUMENTS "COM"
COM(82)271
Vol.1982/0106

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COMMISSION
OFTHE
EUROPEAN COMMUNITIESCOM(82))271 final
Brussels,-,3th-19g2
FOROFFICIAL USEONLY
GeneralSecretariat
NEGOTIATIONS FORTHEACCESSION
OFSPAINTOTHECOMMUNITY
CUSTOMSUNIONANDFREEMOVEMENT OFGOODS
INTHEINDUSTRIAL SECTOR(EEC)
(Commission communication totheCouncil)
C0M(82)271final

EXPLANATORY MEMORANDUM
Inthecontextofthenegotiations fortheaccession ofSpain,theCommission
hasagreedtopresentproposals onthefieldsto"becovered "bytheConference
atMinisterial leveltoheheldon21and22June.
On26February Spainpresented astatement oncustomsunionandthefree
movementofgoodsintheindustrial sector(EEC)whichrequiresaresponse
fromtheCommission .
Thatisthepurposeofthisdraftcommunication .Accordingly ,theCommission
nowhastoapprovethedocument anddecideonitstransmission tothe
Council.

COMMISSION
OFTHE
EUROPEAN )COMMUNITIESBmssels.
T/TAS/IO6
NEGOTIATIONS FORTHEACCESSION
CPSPAINTOTHECOMMUNITY
CUSTOMS UNION ANDFREEMOVEMENT <FGOODS
INTHEINDUSTRIAL SECTOR(EEC)
(Commission Communication totheCouncil)
Provisionol oddress :RuedeloLoi200,B–1040Brussels–Téléphoné 350040-358040–Telegrophic oddress:«COMEURBrussels•–
Telex:<COMEURBRU 21877>

CONTENTS
Page
INTRODUCTION
PART I:GENERAL CONSIDERATIONS 1
I. SCOPE OPTHE PROPOSALS 1
II.RELATIVE SITUATION OFSPAIN 'SECONOMY INAN
ENLARGED COMMUNITY 2
PART II:SPECIFIC PROPOSALS 6
A. PERIOD OFAPPLICATION OFTHETRANSITIONAL TARIFF
MEASURES 6
B.QUANTITATIVE RESTRICTIONS ONIMPORTS 10
C.QUANTITATIVE RESTRICTIONS ONEXPORTS 16
D.MEASURES HAVING ANEFFECT EQUIVALENT TOQUANTITATIVE
RESTRICTIONS 18
E. TEXTILES 20
F. SAFEGUARD CLAUSE 22
G.FREE CIRCULATION 23
H. DUMPING 31
I.ANTI-SUBSIDY MEASURES 33
J.MIXED MANUFACTURING OPERATIONS 34
K. INWARD PROCESSING TRAFFIC 37
L.FREE ZONES 40
M.BASIC DUTIES 45
N.CIVIL AIRCRAFT 46
0.COMMUNITY ARRANGEMENTS FOR TRAVELLERS AND SMALL PACKAGES
OFANON-COMMERCIAL NATURE 48
P.MONOPOLIES 50
Q. SPANISH CUSTOMS TERRITORY 51
R.ADMINISTRATIVE COOPERATION 52
S. IDENTICAL TREATMENT FOR ORIGINATING PRODUCTS AND PRODUCTS
INFREE CIRCULATION .53a
T.APPLICATION OFTHE TW0-440NTH INTERVAL 54
U.INTERIM PERIOD 55
ANNEXES
I»Three tables
II.PRODUCTS FOR WHICH SPAIN 'SBASIC DUTIES SHOULD BE
LIMITED TO28%ADVALOREM FORINTRA-COMMUNITY
DISMANTLING ..
III .QUANTITATIVE RESTRICTIONS' ONIMPORTS INTO SPAIN OF
COMMUNITY INDUSTRIAL PRODUCTS ASFROM ACCESSION

INTRODUCTION
1.ThisCommunication concernstheimplementation bytheCommunity andSpain
oftheacquiscommunautaire inthefieldofcustoms unionandfreemovement
ofgoodsintheindustrial sectorintheenlarged Community .Itcontains
thereplieswhichtheCommission considers shouldbemadetotheSpanish
requestsfortransitional measures ortemporary derogations inthisfield.
Italsoconcerns thetransitional measures whichshouldlikewise "be
accordedtotheCommunity .
2.InPartItheCommission establishes thescopeofthepresentproposals
andmakesanumberofobservations ontherelative situation
ofSpain'seconomyinthecontextofanenlarged Community whichincludes
Spain.
3.InPartIItheCommission makesspecific proposals relatingtoeaoh
oftheSpanishorCommunity requests.Theseproposals arebasedon
Community positions asalreadysetoutintheCommunity'sstatement of
26October 1981.Theyaretheresultofdetailed examination ofthe
positions presented andclarified bytheSpanishdelegation initsstatement
2of26February 1982,andofcertainsupporting documents produced by
Spainandassessments madebytheCommission departments inthecourse
oftechnical discussions withSpanishexperts.
JcONF-E/67/81.
CONF-E/14/82.

PART Is GENERAL CONSIDER AT101®
I. SCOFE CFTHE PROPOSAIS
1.Theproposals setoutinthis Communication relate only toindustrial
products covered bytheEECTreaty .ECSC products andagricultural products
covered byAnnex IItotheEECTreaty fall outside thescope oftheproposals .
Furthermore ,theproducts specified inRegulations (EEC)No3033/80and
No3035/80(processed agricultural products ),No2730/75(glucose and
lactose )andNo2783/75(albumin ),andcotton inbulk falling within OCT
heading No55*01 ,arealso excluded .
The proposals donotdeal with questions arising outoftheadoption by
Spain ofpreferential tariff arrangements (contractual orotherwise )
applied inrespect ofnon-member countries .
Theproducts andquestions referred toabove have been orwill bedealt
with bytheCommission under therelevant chapters .
2.TheCommission departments ,responding inparticular toSpanish statement
CONF-E /56/8I,have already adopted aposition (SEC(82)393 of5March 1982 )
ontheSpanish national monopolies ofacommercial nature involving oiland
tobacco .TheSpanish statement of26February 1982 specifically excluded
national monopolies (CONF-E /14/82,1.2,page 4)•
3.Thequestions ofthespecific customs arrangements applicable tothe
Canary Islands ,Ceuta andMelilla andthespecial economic andtaxarrangements
(Law30/72of22July )fortheCanary Islands arenotdealt with inthe
proposals ,asSpain hasnotyetstated itsposition onthese matters
(CONF-E /14/82,1.2,page 4).
4.InAnnex Itothecomparative table ofSpanish andCommunity positions
(T/TAS/105,30March 1982)]theCommission departments indicated inrespect
ofthechapter under consideration thepoints onwhich agreement could be
reached attheConference .Thepresent document does not ,therefore ,goover
those points again butstates theCommission 'sview ontheaspects setout
inAnnex IItothecomparative table (points still bebeexamined ).
Seeworking papers No120(E )of7April 1982 andHo121(e )of22April 1982 .

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II.RELATIVE SITUATION OFSPAIN 'SECONOMY INANENLARGED COMMUNITY
1.From themacroeconomic point ofview ,themain features ofSpain 's
economy arehigh rates ofinflation (198I :14.8$),lowgrowth (1981 :0.5$ )
andavery high rate ofunemployment (I98I :14»5$ )»Forceful
action isneeded ,torestore macroeconomic equilibria .However ,atleast
some ofthese features areshared bycertain Member States :Italy ,
Ireland andGreece hadhigher rates ofinflation in1981 ,forexample ,
while over the1974-79 period theUnited Kingdom ,Belgium andLuxembourg
hadlower growth rates .Ontheother hand ,unemployment isdistinctly
higher thanintheCommunity countries (seeTable 1)^.Although the
situation would appear tobequite serious ,there areanumber of
pointers suggesting thepossibility ofanimprovement ontheinflation
front ,following theslowing-down ofimport prices andagreements on
wage moderation .
P.TheSpanish economy iscertainly less open totheoutside world than
theMember States' economies .Similarly ,thestructure ofSpanish industry
isnotgeared tomeeting theneeds ofamarket asextensive asthat of
theCommunity .There will have tobesome restructuring inthis field .
Spanish exports andimports ofgoods account foradistinctly lower
proportion ofGDPthan isthecase intheEEC .In1980 Spain 'sexports
andimports accounted foronly 9$and16$respectively ofGDP .Taking
twoextreme examples inthepresent Community ,France exports 17%and
imports 21$ofitsGDP ,while inthecase ofBelgium –themost open
oftheCommunity countries -exports account for55$ofGDPandimports
for61$ .
Therelatively closed nature oftheSpanish market isapparent from Spain 's
market shares intheOECD (seeTable 2)1.InI98O ,Spain 'sshare of
exports ofgoods from theOECD group ofcountries wasonly 1.76$ (France :
9«35$ »Italy :6.6$ ;Germany :15«95$ »United Kingdom :9*62$ ).
Annex I.

Thefigure formanufactures was1.69%(Germany :18.47$ ;Prance :9.34/^;
Italy :7.43$ ;United Kingdom :8.95$ );forintermediate products the
figure was2.30$ (Germany :18.91$ ;France :11.19$ »Italy :6.65$ ;
United Kingdom :8.85$ ).
Another indicator ofSpain 'srelative position interms ofcompetitiveness
andspecialization isprovided byitsmarket share (standardized )in
theOECD .Anindex greater than oneindicates specialization inrelation
totheaverage fortheOECD area (seeTable 3*foracomparison
with theCommunity ).This isthecase with metal manufactures ,steel ,
vehicles ,textiles ,leather andfootwear ,paper ,wooden furniture and
plastics .
3.Spain 'sdependence onimported energy isvery marked .Despite therise
inenergy prices between 1973 and1980 ,Spain 'suseofenergy perunit of
GDPincreased over this period ,whereas alltheMember States improved
their ratios .TheInternational Energy Agency estimates that inI98O
Spain wasusing 4$more energy than in1973 toproduce oneunit ofGDP .
Incontrast ,Belgium hadimproved itsproductivity by20.5$ »Germany by
17.3$ andItaly by15.8$ .
However ,examination oftheenergy efficiency index represented bytotal
fuel oilconsumption perunit ofproduction shows that in1980 ,taking asabasis
theIEA'Saverage of100 ,thefigure forSpain was79»compared with
80forItaly andeven 97fortheUnited Kingdom .(Countries turning
inbetter performances were Denmark (60)andGermany (69)). However ,
implementation ofthenational energy plan approved in1979 should
improve thesituation byincreasing coal production andviaenergy-saving
measures .
4.Thecrisis sectors inSpain arelargely thesame ones asinthe
EECcountries .Steel ,shipbuilding ,leather ,textiles ,wood ,clothing
andconstruction arestruggling intheface oflowdemand andarecontinuing
tooperate atbelow capacity .Incontrast tothetrend intheCommunity countries
*Annex I.

-4-
production ofcrude steel hasrisen inSpain inthelast three years ,
notwithstanding thecrisis inthis sector both inSpain and
throughout theworld .Restructuring isunder way ,however ,insectors
such assteelmaking anddomestic electrical appliances ,andalso in
textiles andelectrical motor vehicle components .
5.Thefact that Spanish industry isgeared totherelatively limited
domestic market partly explains thesmall size ofSpanish firms .Even
allowing forthedynamic contribution ofsmall andmedium-si zed
enterprises totheeconomy ,itisclear that they cannot enjoy
economies ofscale orhave easy access toexternal sources offinance .
InSpain 99*7$ ofallmanufacturing firms areinthecategory ofsmall
andmedium-sized enterprises ,though this situation isnotpeculiar
toSpain .IntheMember States thecorresponding figures range from
97.5% in "theUnited Kingdom to99•9$inItaly .However ,small and
medium-sized enterprises inSpain employ ahigher proportion of
theindustrial workforce than intheCommunity countries .Thus 8C$ >
ofthetotal manufacturing workforce inSpain isemployed insmall
andmedium-sized enterprises ,compared with 31.7$ intheUnited Kingdom ,
47.7$ inFrance and67.1$ inItaly .Efforts toassist small and
medium-sized enterprises areunder way ,though atpresent they are
ofapiecemeal nature and onalimited scale .
6.Asregards wage costs ,care isneeded ininterpreting andcomparing
thefigures available ,given theeffects offluctuating exchange rates
anddifferent definition ofwages andvalue added .
According tothesource quoted bytheSpanish document (Dresdner Bank ,
Wirtschaftsberichte ,No3,September I98I ),thelevel ofhourly wage
rates islowinSpain bycomparison with those oftheMember States -except
theUnited Kingdom ,where hourly wage costs arecomparable –andIreland
andGreece ,where they arelower .Buthourly productivity inSpain is
low (49compared with 100forGermany ),which explains thehigh level of

-5-
wagecostsperunitofproduction ,namely114.Thisfigureisstill
lower,however,thanthoseforBelgium (115),Italy(119)and.
theUnitedKingdom (123).Itispartlytheresultofthehighlevel
ofsocialsecuritycharges (employers' contributions asaproportion
oftotalcompulsory deductions are:Spain,39«7$»France,29.7^5
Italy,27.7$).Thepartialtaxationofemployers' contributions
plannedinconjunction withtheadoption ofVATshould,however,
reducethescaleofthisproblem.
7.Tosumup,asSpain'ssituation doesnotdifferverymarkedly from
thatexistinginanumberofMemberStates,theduration oftheperiod
ofapplication requested inrespectoftransitional measures and
temporary derogations seemsexcessive ;however,atransitional period,
provideditisnotcutdowntoomuch,couldcontribute tothe
betterintegration ofSpainintotheCommunity .

PARTII;SPECIFIC PROPOSALS
A.PERIOD OFAPPLICATION OFTHETRANSITIONAL TARIFF MEASURES
1Community position
Initsstatement of26October198lttheCommunity proposedthat,asa
transitional measure,atimetable bedrawnupfortheprogressive reduction
insymmetrical annualinstalments ofthecustomsdutiesstillapplied between
theCommunity andSpain(thesamepercentage reduction tobeapplicable
forbothparties).Thistimetable willhavetobeofshortdurationin
ordertoeliminate rapidlytheimbalance intariffconditions atpresent
governing tradebetweenthepartiesunderthe1970Agreement .TheCommunity
statedthatshortdeadlines wouldbeanincentive tofirmstoadjustto
freemovement ofgoodsintheenlarged Community and,whereappropriate ,
tostepupeffortsaimedatrestructuring orconversion .
Itaddedthatsuchatimetable wouldhavetheadditional advantage of
doingawaywithanyneedforaspecialmechanism forbringingtariff
arrangements intobalance.Dismantling oftariffs onbothsidesover
aperiodandataratesimilartothatadoptedforearlierenlargements
couldnotbeenvisaged unlessSpain,immediately onaccession ,substantially
reduceditscustomsdutiesonCommunity goodssoastoterminate without
1delaytheimbalance inrespectofmarketaccessreferred toabove.
TheCommunity alsoproposed thatprovision bemadefortransitional measures
forSpain'sadoption oftheCCT,statingthatthetimetable foralignment
oftheSpanish customstariffontheCCTwouldhavetobeidentical to
thatadoptedfortheabolition ofcustomsdutiesbetweentheEECandSpain,
inorderinparticular toavoidanydeflection oftradeintheeventof
2discrepancy betweenthetwotimetables .
SeeCONF-E/67/81,pages12and13»
SeeCONF–E/67/81,bottomofpage14«

-7-
2.Spanish position
Initsstatement of26February 1982 ,theSpanish Delegation said that
itcould innosense accept theCommunity position that provision bemade
forashort timetable foreliminating customs duties between theCommunity
andSpain .Itfelt that theCommunity position didnotaccord with the
requirements oftheoverall interests oftheenlarged Community .After
recalling that itwasinfavour ofasingle transitional period ,the
Spanish Delegation pointed outthat therequirements forintegrating
I
Spanish industry into theCommunity necessitate atransitional period
"close to,butnotexceeding theindicated limit oftenyears ".Itjustified
itsposition onstructural grounds andonconsiderations relating to
differences incosts ,productivity ,competitiveness ,theimpaot ofthe
crisis and ,lastly ,Spain 'sacceptance ,with allthat itimplies ,ofVAT
1asfrom accession .
With regard toSpain 'sadoption oftheCCT ,theSpanish Delegation went
ontoagree that therate ofalignment ontheCCTshould beidentical to
therate laid down fortariff dismantling between thepresent Community and
Spain ^.
3.Commission proposals
After studying thearguments presented by "theSpanish Delegation inits
latest statement ,andonthebasis oftheobservations ontheSpanish eoonomy
contained inPart Iofthis document ,theCommission isable tomake the
following proposals with regard totheduration oftheperiod ofapplication
oftransitional tariff measures ^.Itwould point outthatthisperiod
must bethesame fortariff movements relating totheestablishment ofthe
EECcustoms union (industrial products )andtariff movements intheECSC
IseeCONF-E /14/82,pages 16-19 and22-24 .
-SeeCONF-E /14/82,page 29,point 4»
JAsindicated inCONF-E /67/81,page 14,thetimetable foralignment of
theSpanish customs tariff ontheCCTwill have tobeidentical tothat
adopted fortheabolition ofcustoms duties between theEECandSpain .

-8-
andexternalrelations chapters (industrial products).Ontheother
hand,theduration oftheperiodofapplication forthesemeasures must
heentirely withoutprejudice totheperiodofapplication ofother
transitional measures whichmightbeprovided forinthecustomsunion
chapter (forexample,quantitative restrictions ),letaloneotherchapters.
(a)TheCommission considers thatSpain'srequestforaperiod"closeto,
butnotexceeding "tenyearsisexcessive ,eventakingintoaccountthe
effects ,asregardsopeninguptheSpanishmarket,ofSpain'sapplication
oftheCommunity VATsystemasfromaccession .
However,itsharestosomeextentSpain'sconcernthattooshortaperiod
cou]dcauserealdifficulties forSpanishindustry .
ForthisreasontheCommission -bearinginmindthefairlyhighlevel
ofthecustomsdutiesstillappliedbetweentheCommunity andSpain,
1notably bythelatter-considers thatthetimetable fortariffmovements
shouldbesimilartothatadoptedinthecaseofprevious accessions .
Ittherefore proposes thatalltransitional measures inrespectofall
products shouldterminate notlaterthanfiveyearsafterthedateof
accession .
(b)Accordingly theCommission proposes (withoutrulingoutthepossibility
oftheprocessbeingspeededup)thattheabolition ofcustomsduties
betweentheCommunity andSpainandthealignment oftheSpanishcustoms
tariff ontheCCTshouldbecarried outinsixannualinstalments .Tothis
enditproposes thefollowing timetable fortariffmovements tobeeffected
bytheCommunity andSpain:
1Marchofthefirstyear(yearofentryintoforceoftheaccession treaty):20/
1Januaryofthesecondyear:20%
1Januaryofthethirdyear:15%
1Januaryofthefourthyear:15%
1Januaryofthefifthyear:15/
1Januaryofthesixthyear:15%
1i.e.progressive abolition ofcustomsdutiesonimports betweenSpainandthe
Community andtheprogressive alignment ofSpanishcustomsdutiesvis-a-vis
non-Community countries (ergaomnes)ontheCCT.

-9-
(c)TheCommission continues toholdtheview,however,thatitis
essential tomoverapidlytoeliminate theimbalance inSpanishand
Community marketaccessresulting fromdifferences inthetariff
dismantling providedforinthe1970Agreement *Itoonsiders that
thisrestoration ofbalanceinthetariff-dismantling processcould
beachieved bycuttingbackthehighestSpanishduties.Accordingly ,
provision couldbemadeforSpanishbasicdutiesvis-4L-visthe
Community tobelimitedtoamaximumof28%advalorem.AsSpanish
dutiesstandatpresent,suchamaximumratewouldaffect29Spanish
customstariffsubheadings inrespectofwhichthedutiesatpresent
applicable vis-£-vistheCommunity arehigherthanthisrate(mainly
cars,othermotorvehicles andlorries,electric motors,refrigerators
andtoys).
Inordertoavoiddeflection oftradetothedetriment ofSpain,the
basicdutiesadoptedasastarting pointforalignment ontheCommon
CustomsTariffshouldalsobecutbackandshouldconsider the
preferential marginwhichtheCommunity benefits byvirtueofthe
1C)70Agreement .
AnnexII

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B.QUANTITATIVE RESTRICTIONS ONIMPORTS
1.Community position
Initsstatement of26October1981theCommunity saidthat,disregarding
thespecifio problemoftextileproducts ,quantitative restrictions on
importsandmeasures havingequivalent effectbetweentheCommunity and
Spainshouldbeabolishedasfromaccessionforallproducts ^.
2.Position ofSpain
2Initsstatement of26February 1982theSpanishdelegation repeatedthat
itcouldacceptthe"acquiscommunautaire "inthisarea.Nevertheless ,it
wishedtobeallowedtomaintain,overthetransitional period,quantitative
restrictions ontheimportofcertainproducts fromtheCommunity which
arecurrently subjecttorestrictions .Itattachedalistofproducts,with
somecomments,toitsstatement .
Afterstressing theeffortsSpainhadmadeinthematterofliberalization
since1957»theSpanishdelegation explained thats
"Firstly,Spainisnotaskingforanyquantitative restrictions forproducts
notonListDofthe1970Agreement .Secondly ,itisnotproposing any
quantitative restrictions forproducts currently undergoing short-term
liberalization ,norisitaskingforquantitative restrictions foranumber
ofproducts onListDofthe1970Agreement whicharenotundergoing short-term
liberalization .
However,onanexceptional andverylimitedbasis,thecomposition and
structure ofthelistofquantitative restrictions couldbeamendedbefore
SeeCONF-E/67/8I,page32,point2.
SeeCONF–E/14/82,pages36to40.

-11
thetreaty ofaccession issigned ,ifthedevelopment oftheSpanish
economy (particularly itsindustrial sector )make this necessary inthe
meantime ."
TheSpanish delegation stresses that "this list represents theminimum of
quantitative restrictions to "bemaintained temporarily upon accession ;
this minimum isequivalent to1.4% ofSpanish imports onthe66/68
basis andonly 1.2% ofthese imports interms of1980 figures ."
Lastly ,theSpanish delegation states that thequantitative restrictions
applicable asfrom accession would take theform ofannual quotas which ,
starting from the last notice before accession would beincreased gradually
until all theproducts concerned hadbeen fully liberalized attheendof
thetransitional period .Inanyevent ,products whose quotas hadnotbeen
fully utilized fortwoconsecutive years inthetransitional period would
bedefinitively liberalized .
3.Commission proposals
After studying theSpanish request ,and inthelight ofthetechnical
contacts that took place on22April ,theCommission isnowable to
adopt aposition onSpain *srequest fortransitional measures .
(a)TheCommission notes theliberalization measures undertaken bySpain
andSpain 'scontention that thequantitative restrictions still inforce
are still necessary .However ,thequestion ofwhether transitional measures
should beenvisaged cannot beconsidered generally but only onaproduct -by-product
basis .

-12-
(b)TheCommission canonlyadoptapositionwithregardtothelistas
submitted bySpain.Withrespecttoanyrequests involving otherproducts
(towhichtheSpanishstatementrefers),theCommunity shouldreserveits
position completely .
1(c)AsregardsthelistputforwardbySpain,theCommission proposes
thattheSpanishrequestfortransitional measures bemetforalimited
numberofproducts only,theproductsinquestion beingasfollows:
Présentquota 2
No Product
7 Sulphur
19 Powdersandexplosives ,excluding matches(36.06)
65 Domestic sewingmachines andpartsthereof
69 Specialvehiclesforthetransport ofearth,rock
andminerals
70 Wheeledtractorsofacylinderoapacityof4000cm^
orless
73 Specialpurposemotorlorriesandvans
76 Ships,boatsandothervessels,excluding pleasure
craft
80 Ammunition
ItisonlyfortheseproductsthattheCommission departments havereceived
sufficient groundsfromtheSpanishauthorities .
Thosegroundstakevariousforms:
(i)Theexistence ofareconversion planforshipbuilding :
1-Annexin.
T^orthetariffheadings seeAnnexIII.
.I
I

-13-
-ships ,"boats andother vessels ,excluding pleasure craft .
(ii)Theneed tofacilitate theharmonious adjustment ofthetechnology
used inSpain tothat used "byCommunity industry incertain particular sectors
-domestic sewing machines andparts thereof ;
-special vehicles forthetransport ofearth ,rock andminerals ;
-wheeled tractors ofacylinder capaoity of4000cm^orless ;
-special purpose motor lorries andvans .
(iii)Adaptation "being carried outinthepyrites mining sector (production
ofsulphuric acid ):
–sulphur .
(iv)Lastly ,considerations ofsecurity canalso "beinvoked (limit onthe
total volume oftheproducts inquestion that isavailable ):
-powders andexplosives ,excluding matches ;
-ammunition .
(d)Fortheproducts which ithasselected ,theCommission proposes that
thepossibility given toSpain ofmaintaining quantitative restrictions
onimports should have amaximum duration ofthree years from accession .
That period should suffice toenable theindustry inquestion toadapt
tothenewsituation arising from Spain 'smembership oftheCommunity .

-14-
Attheend.ofthatthree-year period,theimportation ofthesaidproducts
intoSpainwould'betotallyliberalized vis–IU-vi3theCommunity .If,however,
duringthefirsttwoyearsimportsprovetobelessthanSCffoofthequota
opened,Spainwillhavetoabolishtherestrictions inquestion asfromthe
thirdyear.
(e)Thequantitative restrictions whichSpainwillbeauthorized tomaintain
wouldtaketheformofannualquantitative quotasincreased eachyear.
(i)Thevolumeoftheinitialquotasshouldbefixedinthetreatyofaccession
and,asfaraspossible,involumeterms(weightornumber).Theinitial
quotasfixedinvaluetermswillhavetobeexpressed inECU.
Theinitialamountsofthequotaswillbecalculated inthelightofactual
traderecorded inthethreemostrecentyearsforwhichfiguresareavailable .
(ii)Theminimumrateofprogressive annualincreaseinthequotasis
40rfoatthebeginning ofeachyearwithregardtothequotasexpressed in
unitsofaccountand30%atthebeginning ofeachyearforthequotas
expressed involumeterms.Theincreaseisaddedtoeachquotaandthe
following increase calculated onthetotalfigurethusobtained .
(iii)Withregardtothemanagement ofthequotas,thefollowing principles
willhavetobeapplied :
-thequotaswillhavetobeglobalandopenwithoutdiscrimination toall
MemberStates;

-15-
-thequotaswillhavetobeopenedinasingleinstalment atthe"beginning
ofthecalendaryearandnotlaterthan31January;
-thequotaswillhaveto"beopentoallimporters withoutrestriction ;
-thevalidity oftheimportlicenceshouldbenotlessthansixmonths;
-Spainundertakes togivenoticeannually oftheopeningofthequotas
andtoprovidesix-monthly dataontheiruse.
(f)Withregardtothequantitative restrictions whichSpainwillbe
authorized tomaintain ,intheformofquotas,stepswillhavetobetaken
toensurethatthearrangements whichSpainappliestotheotherMemberStates
arenotlessfavourable thanthoseappliedtonon-member countries .

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C.QUANTITATIVE RESTRICTION OUEXPQRTS
1.Commanity position
TheCommunity statedon18September 1979thataccession wouldmeanthat
allexportrestrictions mustbeabolished onbothsidesinaccordance with
detailed arrangements tobeestablished atalaterstageinthenegotiations .
Itstressedthat,uponaccession ,thearrangements stillinforcecould
notunderanycircumstancesbemademorerestrictive norcouldanyfurther
1restrictions beintroduced .
Initsstatement on26October 1981theCommunity reserveditsposition
2oncertainproducts inrespectofwhichprohibition andsurveillance
measures werestillbeingapplied onexports.Nevertheless ,theCommunity
stressed thetrendtowardsliberalization oftherestrictive arrangements
currentlybeingapplied^.
2.Position ofSpain
Initsstatement on26February 1982theSpanishdelegation reiterated
itsposition thatthetwopartiesshouldceasetoapplyquantitative
exportrestrictions asfromaccession^.
1SeeCONF-E/8/79,page13.
Theserestrictive measures applytocopperandleadash,wasteand
scrap(Regulation Nc302/81).Foraluminium scrap,thequotasystem
consists ofasimpleauthorization arrangement withoutquantitative
restrictions .Hidesandskinsaresubjecttoasystemofexport
surveillance .
^SeeCQNP-E/67/81,page33.
SeeCONF-E/14/82,page4lapoint3.

-17-
3.Commission proposals
TheCommission isoftheopinion that therestrictive arrangements currently
"being applied "bytheCommunity could heabolished without risk vis–vis
Spain onthedate ofaccession .Ittherefore proposes acceptance of
theSpanish request that the'acquis communautaire 1'inthis field (Article 34
oftheEECTreaty )heapplied initsentirety asfrom accession .
This must innowayprejudge theposition theCommission will adopt in
theECSC chapter with regard toscrap .

-18-
D.MEASURES HAVING Ai*EPPECT EQUIVALENT TOQUANTITATIVE RESTRICTIONS
1.Community position
Initsstatement of26October1981,"theCommunity stressedthat,
disregarding thespecific problemoftextileproducts ,itconsidered that
suchmeasures shouldbeabolished asfromaccession# TheCommunity entirely
reserveditsposition ontheSpanishre(Juestforatemporary derogation in
theautomobile industry andpointedoutthattheinformation currently inits
possession wasinadequate toallowittomakeavalidassessment ofthe
request •
2.Position ofSpain
Initsstatement of26February 1982,theSpanishdelegation ,while
reaffirming andexpressing supportfortheCommunity principle thatall
measures havingequivalent effectshouldbeabolished onaccession ,upheld
itsrequestforatemporary derogation fornational automobile partsand
components •
3.Commission proposals
(a)TheCommission considers thatallmeasureshavinganeffectequivalent
toquantitative restrictions (onimportsandexports)mustbeabolished^.
(b)WithregardtotheSpanishrequestsintheautomobile sector,the
technical contactswiththeSpanishauthorities (17March1982)enabled
theCommission departments toaddtotheirinformation ontherequestput
forwardbySpain.Thatrequestforaderogation relatessolelytothe
regulations fixingtheminimumlocalcontentat60foandcoverssolelythe
manufacture ofprivatecars.Itdoesnottherefore relatetothepresent
constraints onexports.
SeeCONF-E/67/8I,page34.
peeCONF-E/I4/82,page42.
TheCommission reserves theright,however,toproposeaspecific temporary
derogation fromthefreemovement ofgoodsifitprovesnecessary todosoto
arriveatasolution inthematterofpatents.

-19-
TheCommission considers thattheSpanishrequestconcerning theminimum
percentage obligation laiddowninthecurrentSpanishlegislation is
justified forthefollowing threemainreasons:
(i)theimportance oftheautomobile industryinSpainandthe
difficulties itiscurrently experiencing (declining demand
andproduction ,increasing imports);
(ii)thedecision-making centresinthisindustryareoutsideSpain;
accordingly ,the6dfolocalcontentfigureisatpresentan
essential factorforthedurability ofundertakings already
givenbytheSpanish Government asregardsthemotorindustry ;
(iii)thedesiretoprotecttheSpanishindustry,notablythecomponent
sector,fromincreasing Japanese competition .
IntheCommission 'sview,thisderogation willhavetocometoanend
threeyearsafterthedateofaccession .

-20-
E.TEXTILES
1»Community position
Initsstatement of26October1981theCommunity proposedthat,asa
transitional measureforalimitedperiodtobedetermined byjoint
agreement ,andforcertainsensitive textileproductstobedetermined
later,provision bemadeintheinstruments ofaccession foradministrative
cooperation which:
-wouldinvolvestatistical surveillance enablingtradetrendsinthis
sectortobeidentified asquicklyaspossible and,ifthesituation
sorequired ,appropriate consultations totakeplace;
-wouldmakeitpossible toavoidtheoccurrence ofseriousdifficulties
likelytopersistintheCommunity oraMemberStatebyensuring harmonious
development oftradeintextilesintheenlarged EEConthebasisof
criteria agreeduponinadvance,including theannualgrowthrate*
Administrative cooperation wouldhavetobeorganized alongthelinesof
thatwhichexistedpreviously •
2.Position ofSpain
Initsstatement of26February 1982,theSpanishdelegation saidthat
it"regardsasunacceptable anarrangement designed tooperateinpractice
asaquantitative restriction ontheimportofSpanishtextileproducts
2intotheCommunity "•
^SeeCONF-E/67/8I,
SeeCOjxF-E/14/82,page35»
page42.

-21-
3.Commission proposals
Atthe9thmeetingoftheConference atMinisterial levelon
26October198l»theCommission hadmaintained thattherewasnoneed
toenvisagespecialtreatment forSpainintheacoession negotiations .
Firstly,Spanishexportsarenotconcentrated oncertainregionsof
theCommunity .Secondly,thoseexportsarenolongerverycompetitive ,with
theexception ofafewspecificcategories ,andtheSpanishindustryhas
morereasontofearaninvasionofCommunity ,andaboveallPortuguese ,
textileproducts.TheCommission couldnotinanycaseenvisagespecial
arrangements fortheseproductsafteraccession .
TheCommissionstillholdstheviewthattheCommunity shouldnotrequest
specialarrangements fortheseproducts afteraccession *

-22-
F.SAFEGUARD CLAUSE
1,Community position
Initsstatement of26October1981theCommunity reservedtherightto
returntotheperiodofapplication ofthegeneral,reciprocal safeguard clause
forthischapteratalaterstageinthenegotiations .
Inaddition ,theCommunity madeitclearthatprovision inthischapter
forageneral,reciprocal safeguard clausedidnotprejudice theposition
itwouldadoptinotherchapters ofthenegotiations ortheneedforspecial
safeguard mechanisms •
2,Position ofSpain
Initsstatement of26February 1982theSpanishdelegation considered that
foreconomic reasons andtoensureoverallbalanceinthenegotiations ,this
2clausemustbeapplicable toallchapters ofthenegotiations •
3.Commission proposals
TheCommission isworking onthebasisthatnospecific safeguard clause
isrequired intheindustrial customsunionchapterbutthatageneral,reciprocal
safeguard clausealongthelinesofArticle136ofthe1972ActofAccession
orArticle 130ofthe1979ActofAccession ofGreeceshouldsuffice *Such
aclausewouldhavetoremaininforceforthewholeoftheperiodof
application ofthetransitional measures ortemporary derogations inthevarious
fields.Itsperiodofapplication shouldnottherefore belimitedtothatof
thetariffdismantling timetables orsimilartransitional mechanisms .This
safeguard clausewouldenablethetwopartiestocopewithanysectoral
difficulties (sectorsincrisis)viatheapplication ,undertheCommission's
control,ofadequatetransitional measures ofatarifforquantitative nature.
pSeeCONF-E/67/8I,page16.
SeeCQWF-E/I4/8I,page6.

-23-
G.FREECIRCULATION
1«Community position
Initsstatement of26October1981theCommunity considered that,
fromaccession ,Spainwouldalsohavetoapplytheprinciple offree
movementtothird-country productsinfreecirculation inaMemberState
oftheenlarged Community (Articles 9and10oftheEECTreaty)and
stressed morethanoncethatapplication ofArticle115oftheTreaty
madeitpossibletocounteranydeflection oftradelikelytoentail
oraggravate economicdifficulties a
2aPosition ofSpain
2Initsstatement of26February 1982theSpanishdelegation indicated
problems whichfailingsuitable measures might,initsview,arise
duringthetransitional periodasaresultoftheprinciple offree
movement ofgoodsbeingappliedtoproducts originating inthirdcountries
whichwereinfreecirculation intheCommunity #
TheSpanishdelegation statedthatitagreedwiththeCommunity^view
that"itwillnotbepossible toestimate thecaseswherethereisa
realriskofdeflection oftradeuntiltheduration ofthetransitional
measures andthearrangements fordismantling tariffsbetweenSpainand
theMemberStatesoftheCommunity andaligning theSpanishcustomstariff
ontheCommonCustomsTariffhavebeenestablished''^
TheSpanishdelegation therefore considered itnecessary ,whileabiding
bytheprinciple offreemovementofgoodsinfreecirculation (Articles 9
and10oftheTreatyofRome),toadoptmeasureduringthetransitional
periodtopreventdeflections oftradewhiledisturbing thefunctioning ofthe
commonmarketaslittleaspossiblea
SeeCOWF-E/67/8I,page36,SeealsoCO.UF-E/47/8O,page8#
0SeeCOJyF-E/14/82,pages43to46a
SeeC0I>iF-E/3/82,page21lastparagrapha

-24-
Giventhattheexistence ofsuchmeasures wasalreadyenvisaged ,inArticle115
oftheTreatyofRome,theSpanishdelegation considered that,forthe
preceding cases,itwasnecessary todetermine theobjective conditions
underwhichaseriesofgoodsinpre-established situations couldbeexcluded
fromfreecirculation .Initsopinion,theseconditions wouldhavetobe
studiedcasebycaseandappearintheinstruments ofaccession ,insuch
awaythatSpainwasauthorized bythemostsuitable procedure tomaintain
theappropriate measures duringthetransitional period.
3.Commission proposals
(a)TheCommission welcomestheSpanishdelegation'smostrecentdeclaration
inwhichSpainstatesitsreadiness toaccepttheprinciple offreemovement
ofgoodsbasedonArticles 9and10oftheTreaty#
Withregardtothemeasures tobetakentoavoidanydeflection oftrade,
theCommission continues tobelievethatanapplication ofArticle 115
adaptedtotheparticular situation resulting fromtheaccession ofSpain
issufficient andthatitisnotnecessary toincludeaspecialprovision
intheactofaccession .Onthebasisofthestudypresented bythe
Spanishdelegation on23January1980anditsstatement of25November I98O,
theCommission departments havecarriedoutanin-depth examination which-
despiteitshypothetical nature-enablestheCommission toadoptamore
concrete position.
C0NF-E/61/80,Annex2.

-25to30-
Itemerges from that examination that therisk ofdeflection oftrade
could become reality "butthat thenumber oftariff headings liable
tosuch deflection would decrease aswork progresses onthe alignment
oftheSpanish customs tariff onthe CCT .
Asregards themachinery tobeadopted totake account oftheproblems
liable toarise inthis connection ,theguidelines oftheprocedure to
beenvisaged could bebased onthesolution resulting from theapplication
oftheCommission Decision of20December 1979 (80/47/EEC)-OJMbL16
of22January 19^0 ,p.14-covering inthis case thedeflection oftrade
caused bythedifference inthe levels ofthecustoms duties applied vis-a-vis
third countries inSpain andinthe other Member States#

-31-
H. DUMPING
1-.Community position
Initsstatement of26October 1981 theCommunity submitted that ,
asforprevious accessions ,theinstruments ofaccession should ,inolude
adumping clause applying for theduration ofthetransitional measures
concerning trade between thepresent Community andSpain .Since this
clause would notbeconfined totrade under this chapter ,the
Community proposed returning tothepoint ingreater detail atalater
stage innegotiations ^.
2.Spanish position
Initsstatement of26February 1982 ,theSpanish delegation reiterated
2theposition itexpressed intheExternal Relations chapter that as
from accession itwould beimpossible forthe twoparties tomaintain
ortoestablish between them anyanti–dumping duties which migfrt affect
intra-Community trade .
Itpointed outthat from thedate ofaccession Spain would belong to
thecustoms union oftheEuropean Communities asaMember State ,with
asingle market thus being established .
Consequently ,itconsidered that anyproblems which might arise in
trade between Spain andtheother Member States would have tobesettled
inaccordance with theprocedures laid down forintra-Community trade
relations ,suchastherules oncompetition ^.
?SeeCONF-E /67/81,page 16.
SeeCONF-E /70/8O,page 5»footnote .
SeeCONF-E /14/82,page 5»

3.Commission proposals
TheCommission pointed ,outthataclausetothateffecthadbeen
includedinArticle 91oftheEECTreaty,Article 136ofthe.1972Treaty
andArticle 131oftheTreatyofAccession ofGreece.Initsview,
therewasnoreasonnottoprovideforsuchaclauseinthecaseof
Spain'saccession .

-33-
I.ANTI-SUBSIDY MEASURES
1•Community position
TheCommunity hadstated ,that,inviewoftheapplication bySpainof
allCommunity provisions onVATbythedateofaccession atthelatest,
theanti-subsidy dutieswouldhavedisappeared asaresultbythetime
ofaccessionatthelatest^.
2.Spanishposition
TheSpanishposition onthisitemisthesameasonthepreceding item
(H.Dumping).
3.Commission proposal
IntheCommission 'sviewArticles 92etseq«oftheEECTreatyare
adequate andtherefore nospecific provision isnecessary .
SeeCONF-E/67/81,page17andCONF-E/h/82,page5.

J.MIXEDMANUFACTURING OPBRATIOfflS
1•Community position
Initsstatement of26October 1981theCommunity notedthestatement
madebytheSpanishdelegation on16March1981,inwhichitmaintained
itsrequestforatemporary derogation exclusively formaterials tobe
incorporated incapitalgoodsitemsforpowerstations,andstatedthat
itwouldinprinciple beprepared tomakeprovision foratemporary
derogation forSpainfortheabovecapitalgoodsitems,butbeforetaking
suchadecisionitwouldconsideritessential thatalistofthesegoods
orcomponents besubmitted immediately withdetails(site,powerandany
othertechnical specifications )enablingtheconventional ornuclear
powerstationsforwhichtheyareintended tobeidentified .
Thefollowing conditions mustalsobemet:
(a)thetemporary derogation inquestion wouldapplyonlytothe
tariffaspect;notemporary derogation couldbeenvisaged for
measures equivalent ineffecttoquantitative restrictions .
1SeeCONF-E/17/8I,page2

-35-
(b)thetemporary derogation shouldconcernonlyproducts importedin
thecontextofmixedmanufacturing operations ,inaccordance with
thespecialauthorizations inforce# Whensuchauthorizations lapse
orthegoodsinquestion havebeenimported ,otherimportsshouldbe
subjecttothenormaltariffarrangements resulting fromtheactof
accession ;
(c)asinthecaseofpreviousaccessions ,thetemporary derogation should
bethesubjectofaprotocol specifying therelevant conditions ;
(d)itwastheCommunity'sintention thatthistemporary derogation should
applyonlytocapitalgoodswhichwerethesubjectofspecialauthorizations
inforceonthedateofaccession ;theduration ofthederogation wouldbe
thesameasforthespecialauthorization ,althoughitwouldnotbepossible
forthederogation toapplyforalongerperiodthantransitional tariff
1measures .
2»Spanishposition
Initsstatement of26February 1982theSpanishdelegations
(a)considered thatwithregardtothetariffaspectthistemporary derogation
didnotseemnecessary sincethetariffreductions whichwouldbegranted
underthistemporary derogation forpartsandsparepartsforcapitalgoods
imported undermixedmanufacture arrangements wouldbeminimal compared
withtheresultofapplyingthisdefinition ofbasicduties;
(b)pointedout,onthesubjectofthepercentage ofmaterials ofSpanish
origin,thatthiscondition was,initsview,theessential basis
ofthemixedmanufacture arrangements# Ittherefore reiterated thata
temporary derogation mustbeintroduced ,bymeansofanappropriate
protocol.Thistemporary derogation wouldaffectsolelythemaintenance
ofthepercentage ofmaterials ofSpanishorigininthecaseofparts
2andsparepartsforthosecapitalgoodswhichwerenotimported •
JseeCONF-E/67/81,pages37and40
SeeCOKP-E/I4/82,pages46to49.

-36-
3»Commission proposals
TheCommission maintains itsviewthatthetemporary derogation itcan
envisage shouldconcernonlythetariffaspectoftheSpanishrequest and
thatafavourable response cannot "begiventotherequestformaintenance
oftheminimumpercentage ofmaterials ofSpanishoriginstipulated bycurrent
Spanishlegislation .

-37-
K.INWARD PROCESSING TRAFFIC
1,Spanish position
Initsstatement of26February 1982 ,theSpanish delegation took theview
that the authorizations for inward processing traffic granted "before accession
must bemaintained ontheterms onwhich they were granted until theexpiry
oftheir period ofvalidity ,which could notexceed theduration ofthe
transitional period .
Asforauthorizations forinward processing traffic granted during the
transitional period ,theSpanish delegation stated itsintention ofapplying
theCommunity rules onthis point asfrom accession ;however ,itcalled for
atemporary derogation from Articles 24to25oftheCouncil Directive of
4March 1973 (69/73/EEC).Insupport ofitsrequest ,itinstanced thefrequent
useunder Spanish inward processing traffic arrangements ofthesystem of
prior exports offinished products ("reposicion "),which also meant that the
principle ofequivalence would have tobeapplied with some degree of
flexibility "*".
2.Community position
SofartheCommunity hasreserved itsposition .
3.Commission proposal
(a)Authorizations granted prior toaccession
Inview oftheexplanation given bytheSpanish delegation during the
technical talks that were held ,theCommission acknowledged that cancelling the
authorizations issued prior tothedate ofentry into force ofthe actof
accession andreplacing them byauthorizations complying with alltheCommunity
SeeCONF-E /I4/82,pages 49-51 .

-38-
rules inforce would "belikely togive rise todifficulties forSpanish
traders which hadmade their arrangements regarding theprocessing tobe
carried outinthelight oftheSpanish rules applicable prior toaccession#
TheCommission therefore regards acertain amount offlexibility onthese
authorizations asbeing justified#
Under thecurrent Spanish lawonthis matter theauthorizations issued
arenormally valid fortwoyears# TheCommission therefore proposes toagree
toauthorizations forinward processing traffic issued before accession being
maintained ontheterms onwhich they were granted until theexpiry oftheir
period ofvalidity ,butfornolonger than twoyears after thedate of
accession#
(b)Temporary derogation from application ofArticles 24and25ofthe
Council Directive of4March 1969 (69/73/EEC)
Thederogation requested concerns thesystem ofinward processing carried
outbyequivalent compensation#
This system permits theprior exportation ofcompensating products derived
from theprocessing ofgoods (compensation goods )ofthesame kind andquality
andhaving the same technical characteristics asthose ofthe substituted
goods imported subsequently (import goods)#
Spanish law ,however ,merely requires that import goods beofasimilar kind
tocompensation goods andhave similar characteristics# Inanyoase ,the
amount ofthecustoms duties fortheauthorized import goods may
never exceed theamount ofthecustoms duties forthecompensation goods used

-39-
inthemanufacture oftheexported compensating products..Also,
undertheSpanishrulesthereissomeflexibility concerning the
actualimportation oftheimportgoods,whichcouldalsotakeplace,
contrarytotheCommunity rules,afterpriorauthorization ,on
behalfofsomeoneelse.
TheSpanishDelegation referred totheeoonomic importance toSpain
oftheequivalent compensation processing trafficsystemas,invalue
terms,itcovered56.7$ "theinwardprocessing operations carried
outin1978(48.8%withtheEEC;65,8%withnon-EECcountries).
Inviewofthecomplexity ofcertainprocessing trafficoperations it
isquitepossiblethatanimmediate changeover totheCommunity rules
applicable toprocessing byequivalent compensation willcauseserious
injurytothefirmsconcerned .Ittherefore seemsjustified to
enableSpaintointroduce progressively ,i.e.inamanneradaptedto
eachspecific case,theCommunity rulesapplicable toprocessing by
equivalent compensation ,althoughitsnationallegislation shouldbe
alignedontheotherrulesoftheinwardprocessing directives
immediately uponaccession .
TheCommission considersitreasonable thatthederogation periodshould
correspond tothatproposed abovefortheauthorizations granted,i.e.
itshouldbefixedattwoyearsfromthedateofaccession .

-40-
L. FREE ZONES
1. Spanish position
Initsstatement of26February 1982 ,theSpanish delegation recalled
1that ithadmade arequest inNovember 1980 tomaintain ,during the
transitional period ,thepresent Spanish arrangements inforce
regarding free zones ,exclusively forthose undertakings which qualify
for such arrangements atthetime ofaccession .
Italso recalled that ithadforwarded ,initsstatement of
2
1December 1981 "alist detailing allundertakings authorized to
date tosetupinbusiness intheSpanish free zones ",while pointing
out that "very restrictive criteria hadbeen followed inimplementing
thelegislation onfree zones "3.
2. Community position
The Community has sofarreserved itsposition .
3.Commission proposals
(a)List offirms setupinbusiness intheSpanish free zones
TheCommission noted the list forwarded bytheSpanish delegation in
itsstatement of1December 1981 detailing "allundertakings
authorized todate tosetupinbusiness intheSpanish free zones ".
Inview ofthewording ofthat statement ,theCommission feels that
itcanconsider thelist asexhaustive for thepresent .
SeeC0NF-E /61/80,page 16.
2SeeCONF-E /74/81,page 6.
3SeeCONF-E /14/82,page 51.

-41-
(b)Capital goods
The .Commission considers that provision should bemade forcapital
goods installed inthefree zones prior toaccession bythefirms
included inthelist referred toabove under (a)andintended to
beused inthose zones tocontinue tobeused after accession even
ifthe goods donotmeet theconditions laid down dnArticles 9and'Ttf oftheTretty
TheCommission hasdecided infavour ofsuch aderogation since collection
ofthecustoms duties onallthecapital goods would cause unacceptable
injury tothefirms which have setupinbusiness inthefree zones in
accordance with theSpanish provisions applicable thereto prior to
accession .
TheCommission feels ,however ,that allcapital goods installed
after accession must meet the conditions laid down inthe above
Directive .Furthermore ,allcapital goods nolonger used inthe
free zones butdefinitively imported into thecustoms territory
oftheenlarged Community must besubject totheappropriate
customs duties .
(c)Usual forms ofhandling
Council Directive 71/235/EECof21June 1971 determines exhaustively
theoperations carried outinfree zones andcustoms warehouses
which areregarded as"usual forms ofhandling ". According to
Directive 69/75/EEConfree zones ,anyhandling other than theusual
forms ofhandling referred toabove maybecarried outonly under
theconditions andinaccordance with therules applying toinward
processing .

-42-
Therelevant Spanish legislation also establishes anumber of
operations ,some ofwhich arenotincluded inDirective 71/235/EEC:,
such asthehulling androasting ofcoffee andcocoa ;thegrinding
ofwood ;theextraction ,solidification andhydrogenation of
vegetable oils ;denaturalization ;thecutting-up into pieces of
ferrous scrap andrags oroftyres andinner tubes ;and any
operation likely toincrease thevalue ofthegoods without altering
their nature .
TheSpanish request isforthese operations tobecontinued during
the transitional period .
Under Community legislation theoperations inquestion would not
beauthorized astheproducts obtained areintended tobecleared
forhome usewith theappropriate duties being collected .In
actual fact ,theoperations referred toabove areakin tothose
currently carried out incertain Member States under the
"Umwandlungsverkehr "arrangements .Inorder tosettle these
arrangements atCommunity level theCommission presented aproposal
foraregulation totheCouncil in1972 which hasnotyetbeen adopted .
Even ifitwere likely that theregulation would beimplemented prior to
Spain 'saccession ,inview ofthestage reached atpresent inthediscussions
any such newCommunity arrangements would notcover alltheoperations listed
intheSpanish delegation 'sstatement .Despite this situation ,asolution
tothe Spanish problem depends atleast partly onthe fate ofthe
proposal for aregulation that istobepresented .
Inorder tobeable toadopt aposition atthis stage ,theCommission
considers that the Spanish delegation 'srequest for aderogation in
this matter should bedealt with asoneissue .With regard tothe
substance oftherequest theCommission acknowledges that banning
these operations asfrom accession would belikely tocause serious
injury tofirms towhich authorizations have been granted previously

-43-
tuidertheSpanishlegislation .
Asinthecaseofinwardprocessing theCommission holdstheview
thatatwo-year derogation periodasfromthedateofaccession
couldbeconsidered areasonable periodtoenableSpanishfirms
toadaptmoreeasilytoCommunity i*ules.Takingintoaccountthefact
thattheproposalforaregulation coverssomeofthehandlingoperations
listedintheSpanishstatement ,onlyoperations notcoveredbytheregulation
wouldbeaffected bythetemporary derogation tobegranted.
Inthatevent,onlythoseoperations notcoveredbytheregulation
wouldbeaffected bythetemporary derogation .
(d)Inwardprocessing inthefreezones
(i)Spainhasrequested thatfirmswhichhavesetupinbusiness
inthesezonespriortoaccession shouldcontinue tobesubjectto
thecurrentSpanishrulesregarding freezonesduringthe
transitional period.
UndertheSpanishruless
-products suchasrawmaterials andsemi-manufactures intendedfor
theauthorized firms(seeunder(a)above)maybeimported
duty-free orwithrepayment (inthecaseofnational goodsor
goodscontaining aminimumpercentage ofSpanishmaterials);
–ifproducts obtained inthefreezonebyusingtheinputsreferred
toaboveleavethatzonethereleaseoftheseproducts forhome
usegivesrisetothepaymentofdutiestobecalculated onthe
inputs,exceptwhereallthepartsandcomponents are"offoreign
origin";inthatevent,thedutiesaretobecollected onthe
basisofthetariffposition fortheproductobtained andthevalue
ofthepartsandcomponents usedinthemanufacture .

-44-
(ii)Thesepractices arecontrarytoCommunity customslegislation ,
inparticular Directive 69/75/kEC(freezones).According to
Article 4ofthatDirective ,goodsnotmeetingtheconditions laiddownin
Articles 9and10oftheTreatycannot "beclearedforhomeuseorused
infreezones.
Moreover ,inaccordance withArticle8(2)ofthatDirective ,goods
whichhavebeensubjected infreezonestohandling otherthanthe
formsofhandling permitted underCommunity legislation maybe
clearedforhomeuseonlyundertheconditions andinaccordance with
therulesapplicable toinwardprocessing .Therelevant Spanish
legislation doesnottakeaccountofthoserules.
Ashasalready beenstatedinthecaseofprocessing ingeneralthe
Commission doesnotdenythatanimmediate changeover tothecurrent
Community rulescouldcreatedifficulties ,andevencauseserious
injury,forfirmswhichhaveenjoyedspecialfacilities underthe
Spanishlegislation .However,theCommission isunabletoaccept
aderogation periodexceeding thatproposed onageneralbasisfor
inwardprocessing .TheCommission considers thatthedefinitive
introduction ofCommunity lawoninwardprocessing shouldbecompleted
atthelatesttwoyearsafteraccession .
Inthiscontext,theCommission wouldliketopointoutthatthe
suggested temporary derogations referonlytofirmsatpresentsetup
inbusiness inthefreezones.Thismeansthatallfirmssubsequently
setting upinbusiness inthosezonescouldnotbecoveredbythose
derogations astheacquiscommunautaire wouldbeapplicable tothem
withoutexception immediately uponaccession .

-45-
M.BASICDUTIES
1..Community position
Initsstatement of26October 1981theCommunity statedthatthe
basicdutiesonthebasisofwhichreductions wouldhavetobemade
bySpainandtheCommunity ,andSpainwouldhavetomakethealignment
ontheCCT,wouldbedefinedasthedutiesactuallyappliedonimports
bySpainortheCommunity on1Januaryoftheyearinwhichthe
instruments ofaccession weresigned •
2.Spanishposition
Initsstatement of26February 1982theSpanishdelegation proposed
thatthedatetobeconsidered forfixingbasicdutiesshouldbe
1Januaryor1Julyoftheyearinwhichinstruments ofaccession were
signed^.
3.Commission proposals^
IntheCommission 'sview,inordertoavoidlast-minute tariff
amendment swhichwouldaffectthebasicduties,thereference date
forthebasicdutiesshouldbeatleastthreemonthspriortothe
dateofsignature oftheactofaccession ,itbeingunderstood that
thedateofreference shouldbeeither 1Januaryor1July.
! ^SeeCONF-E/67/8I,page19.
j. ^SeeCONF-E/14/82,page25.
t Seealsotheproposals underitemSbelow.
>
I

-46-
N.CIVILAIRCRAFT
1.Community position
Initsstatement of26October 1981theCommunity drewtheSpanish
delegation 'sattention totheAgreement ontradeincivilaircraft ,
concluded duringtheGATTmultilateral tradenegotiations andsigned
bytheCommunity anditsMemberStates.UnderthisAgreement ,the
signatories agreedtoabolish ,bythedateofentryintoforceofthe
Agreement ,allimportdutiesonalistofproducts annexedtothe
Agreement (aircraft ,enginesandotherequipment intendedforusein
themanufacture ,repair,maintenance ,etc.,ofaircraft).
TheCommunity therefore considered thatSpainshould:
-becomeaPartytothisAgreement uponaccession ;
-and,inordertopreclude possible conflict betweentheobligations
arisingoutofthisAgreement andthetimetable foralignment onthe
CCT,abolishuponaccession thecustomsdutiesontheproductslisted
intheAnnextotheAgreement"' ".
2.Spain'sposition
Initsstatement of26February 1982,theSpanishdelegation stated
thatthisAgreement concluded withinGATTwasstillbeingexamined and
closelyanalysed bytheSpanishauthorities withaviewtoits
ratification bySpain.Whenadecision hadbeentaken,theSpanish
delegation wouldinformtheCommunity delegation ofitingoodtimeand
2ofthetermsandthedetails suchratification mightincorporate .
SeeCONF-E/67/8I,pages25and26.
SeeCONF-E/14/82,page30,point10.

-47-
3.Commission proposals
TheCommission stands "byitsopinionthatSpainshouldapplythis
Agreement infulluponaccession .

-48-
0.COMMUNITY ARRANGEMENTS FORTRAVELLERS ANDSMALLPACKAGES OFA
NON-COMMERCIAL NATURE
1.Community position
Initsstatement of26October1981theCommunity stateditsviewthat
itwasacorollary toSpain'sfullapplication oftheCCTonaccession
tosuchgoodscomingfromthirdcountries thatthesamegoodswouldhave
tobeadmitted duty-free betweentheMemberStatesandSpainupon
accession ,withtheseduty-free arrangements beingharmonized withthe
existing taxarrangement .
2.Spain'sposition
Thestatement madebytheSpanishdelegation onthispointon26February 1982
referstotheadoption ofpartial Community exemption asthebasicduty
fromwhichtocommenceintra-Community dismantling .Thus,therateof10$
willbetakenasastartingpointforasingledutyapplicable toarticles
contained intravellers' luggageortosmallconsignments ofanon-commercial
nature,inquantities andundertheconditions laiddownintheCCT,with
thisdutybeinggradually eliminated inthesamewayasanyothertypeof
customsduty.
Commenting onsucharrangements applicable inintrar-Community traffic,the
Spanishdelegation reminded theCommunity thatitwasawaiting areplyto
itsproposal on"theadoption ofpartial Community exemption asthebasic
dutyfromwhichtocommence Community dismantling ...,inquantities and
2undertheconditions laiddownintheCCT"•
JseeCONF-E/67/81,page23.
SeeCONF-E/14/82,page28,point4;seealsoCONF-E/74/81,page2.

-49-
3.Commission' sproposals
IntheCommission 'sviewtheCommunity shouldmerelytakenoteofSpain's
statement totheeffectthatintra^-Community dismantling would "be
carriedoutprogressively inthemannersetoutinthegeneralplan,
butshouldemphasize thatitsproposal aimedabovealltoavoidthe
administrative complications thatarehoundtoarisefromtheprogressive
introduction oftariffdismantling intocustomsprocedures fortravellers
andsmallpackages ofanon-commercial nature.
ί

-50-
P.MONOPOLIES
Seepartone.1.2.(pagel).whichreferstoSEC(82)393 .

Q.SPANISH CUSTOMS TERRITORY
See'partone,1.3.(pagel).

-52-
R.ADMINISTRATIVE COOPERATION
1.Initsstatement of26February 1982 Spain stated :
"2.TheSpanish delegation likewise agrees that "save forexceptions to
bedetermined ,theCommunity provisions inforce asregards customs
legislation fortrade with third countries will still apply under the
same conditions totrade between theCommunity andSpain foraslong as
these customs duties arelevied between them^...
However ,such application should notpresuppose forSpanish products any
difference intreatment from that received byproducts from other Member
States within theCommunity which wasnotstrictly essential topermit
satisfactory implementation ofthetransitional measures' •"(CONF-E /14/82,
p.36).
(Seeworking paper No121 (E),Annex I,point II.H.,page 12)
2.Commission proposals
TheCommission wishes todraw attention tothef?ct that theacts relating
totheprevious accessions themselves contain such provisions .Hence ,
they result from thenegotiations (e.g. seethefirst paragraph of
Article 4?(l )oftheActofAccession ofGreece ).
Moreover ,the Commission can confirm that the methods ofadministrative
cooperation established bytheCommission fortr^de within theenlarged
Commmunity have always been geared toensuring that intrr-Community tr-.de
during thetransition runs smoothly andtotaking only such measures as
absolutely necessary .
SeeAnnex Iof120 (E)of7April 1932 .

-53-
Generally speaking ,theCommission would point outthat thesole purpose
ofapplying customs legislation ontrade with non-member countries to
trade within theCommunity istoensure that residual duties arecollected
during thetransition .

-53a-
S,IDENTICAL TREATMENT FORORIGINATINQ PRODUCTS ANDPRODUCTS INFREE
CIRCULATION
1.TheCommunity andSpainagreethat,fromthedateefaccession free
movement ofgoodsbetweentheCommunity andSpainwillapplybothtogoods
originating intheCommunity andtogoodsinfreecirculation inoneof
theMemberStatesandwillmeanthattherulesoforiginlaiddowninthe
1970Agreement willceasetoapply.
(SeeworkingpaperNo121,AnnexI,point1.3,page3)
2.Commission proposal
TheCommission proposesthatitbestipulated intheaccession treatythat
uponaccession *productsinfreecirculation shallbesubjecttothesame
2treatment (tarifforotherwise )asoriginating products.
Inorderthatthetreatment accorded underthe1970Agreement tooriginating
products canbecomeapplicable toallproductsthatfulfiltheconditions
setoutinArticles 9and10oftheEECTreaty,thedefinition
ofbasicdutieswillhavetobeadjusted .Tothisend,provision couldbe
madeforthebasicdutyoneachproduct,whichisthestarting pointfor
thesuccessive reductions ,tobethedutyactuallyappliedtotheproduct
originating intheCommunity orinSpain.
However,wherethefirsttariffmovements donottakeplaceuntiltwo
monthsafterthedateofaccession (seeT.below),thisprinciple will
applyonlyfromthatdate.
2Subjecttothepossible application ofArticle 115oftheEECTreaty.
0

-54-
T.APPLICATION OFTHETWO-MONTH INTERVAL
1.TheCommunity andSpainagreethat
"Aninterval oftwomonths mustbeallowed between thedateofaccession
andthedateofthefirsttariffmovements tobemadeonbothsides,so
astoallowtheCommunity authorities tointroduce themeasures resulting
fromtheActofAccession "andthat
"inaddition ,immediately uponaccession ,nodutieshigherthajithebasic
dutieswillbeleviedwithintheCommunities ."
(SeeworkingpaperNo121,AnnexI,point1.6,page4)
2.TheCommission considersitnecessary tomakethefollowing points
regarding thetwo-month interval :
(a)Theaimoftheintervalisonly
-toeliminate importcustomsdutiesbetweentheCommunity andSpain;
-forSpaintoapplytheCCT;
-toenablethearrangements fortravellers andsmallpackages ofa
non-commercial naturetobeapplied.
(b)Duringthesetwomonthsthecustomsarrangements inforcepriorto
accession remainapplicable (subjecttothestandstill referredto
in1.above).Consequently ,itwillbenecessary duringthistwo-
monthperiodtocontinue applying theprovisions ofthe1970Agreement
ontheoriginofgoods.Duringthisinterval thenecessary stepscan
betaken-onthebasisoftheactofaccession -topermitthe
transition attheendofthetwomonthsfromthesystemoperating
underthe1970Agreement tothatembodied inArticles 9and10ofthe
EECTreaty(seeS.above).

-55-
U. INTERIM PERIOD
1.Initsstatement of26February 1982 theSpanish delegation repeated
that ,"during theinterim period ,itisvital forconsideration tobe
given tothearrangements allowing Spanish interests tobetaken into
account when determining thetariff suspensions referred toinArticle 28
oftheTreaty ofRome ,andthat these arrangements should apply asfrom
accession .TheSpanish delegation isstill waiting forthereaction of
the Community delegation onthis point ".
(CONF-E /14/82,p.34)
2.Commission proposals
The Commission cosiders that theanswer tothis request should take the
form ofareference tothe "information andconsultation procedure for
theadoption ofcertain decisions "applicable during theinterim period
between thesigning andtheentry intoforce oftheaccession treaty *.
SeeOJNoL291 ,page 191 »inrespect ofGreece .
I

νϋ*
TABLE 1:MAIN ECONOMIC AGGREGATESANNEX N° I
Γ· Real GDP Consumer/
Unemployment Balance on General
> ■■ growth prices current government
*account as deficit as
%ofGDP %ofGDP
1974-79 1981 1981 1981 I98I
BELGIUM 1,9 7,6 11,5 -7,2 -12,4
DENMARK 2,7 11,5
t '8,3 -3,3 -9,8 '
FRANCE 3,0 13,1 ' 7,8 -1,4 - 2,1
GERMANY 2,8 6,0 4,8 -1,4 - 4,0
GREECE 5,2 23,5 3,1 -2,8 -3,9
IRELAND 3,6 20,0 10,4 -14,8 -14,3
ITALY 2,3 19,2 8,9 -2,3 -9,0
LUXEMBOURG 0,3 8,1 1,0 18,6 -3,0
NETHERLANDS 2'2V 6.7 7,5 .0,6 - 4,1 .
UNITED KINGDOM 1/8 11,6 10,5 1,2 -2,2
*SPAIN .2,2 14,8 14,5 -3,0 -4,0
1
TABLE 2;SHARE OFEXPORTS ANDIMPORTS INTOTAL OECD (1980 )
- j TOTAL GOODS MANUFACTURES INTERMEDIATE GOODS
EXP IMP EXP IMP EXP IMP
_SPAIN 1,76 2,55 1,69 1,89 2,30 2,26
-EEC 55,12 53,88 55,07 57,36 60,01 60,69
BELGIUM ', ' 5,37 5,36 5,11 5,80 7,13 6,00
■-!DENMARK ;v!. 1,38 1,45 1,03 1,66 0,95 1,89
FRANCE 9,35 10,14 · •9,34 10,74 11,19 12,72
GERMANY !; 15,95 14,03 18,47 15,18 18,91 15,24
GREECE ,43 ,79 ,28 #92 ,48 ,89
IRELAND *71 ,84 ,55 1,11 ,61 1,15
ITALY 6;60 7,45 7,43 6,79 6,65 7,82
NETHERLANDS 6,15 5,72 4,18 6,03 5,73 6,74
UNITED KINGDOM 9,62 8,90
I
1,8,95 10,06 8,85 9,12

TABLE3;SPECIALIZATION INDICES-EXPORTSfl980)
1EjEECIDjΡ1INL Β1OK IRLIK6*
1983j
F003.BEV.T0d 1.77
AÍRPROGSFluo.42
HIÑERA FUELS.58"
HETALS UNHORKEO 1.17.
OTH.RáW.MATS·J¿J
HONHET.M1N.PRD 1.64'
IRONANDSTEEL1«76-
HETALPRODUCTS 1.42
BASICCHEMICALS «79*
CHEMICAL PROOS,98-
AHIC.IACHlN .«*&_
cLECTR.HACH· «66
POWc*GENMACH.79'
OTH.MACHINERY v.69-
3fF.T=LECOM cOU
OPTCLOCKPHOTO.21"
*C*DVEHICLES -1.04-
OIKTRANS EQU«65
TcKTlLES 1·0<»"
CLDTHINS "·«78-
LEATHER SHOES\5«u.
PAPER'·,·r*\β23
*33¡>FORNITURE 1.45"
PLASTICRUB3ER -1.31-
OTHMÍ.NJFG333S.47
TOTAL»OOJiTS i«03"
RAWMATERIALS -ι.«.
TOTAL*ANJFP*0«9*
INTE^MEO.PROS."1.11
vtCJIP£HcNT -.7Q-
CURKENTCO^SUKP^.i^j1930 j
1·35
•46
1.29
•68j
•93
1.14
I.Ol
1.19
1.12l.ll
.95
.99
.96
1.03
.75
.84
•.91·
.76
1.13
1.35
1.29.
.63
1.20
1.22
1.95
1.00
1.00
1.00
1.09
.92
1.331980 j
.53
.25
.631
.52
.21
1.13
1.18
1.27
1.25
1.13
1.02.
1.33
1.24'
1.47.
.51
1.0Γ
1.43
.SO
1.33
.94
.72.
.67
1.17
1.33
.97
1.00
.<»3
1.16
l.19
1.22
1.0019831
1.57
.54
•6%■
•73.
•32
1.12-
►1.28-
1.06
1.19
1.29-
.59
1.07
l.05"
.86-
.63
•78
1.13-
.77
1.02
1.29-
1.04.
.67
.82"
1.28-
•61
1.03'
1.00
1.03
1.25-
.92
•95-1933
•69
.18
.89"'
.1«
.18
1.49
.97
1.65
.57
.67-
1.45
.91
•ÍS"
1.28
.74
.*7
.77
•36
1.62
3.58
5.66.
.53
2.74
1.23
1.55
1.031
.59
1.13
l.crr
.87
1.821983
1.96
1.13
3.52
1.13
.34
.59
.56
.72
1.66'
.93
.38
.83
.30
.43
.73
.72
^m
•58
.75
•39
•66
.61
ri.42
•36
i.03
2.35
.33
•48
•82193J
.93
.33
ri.32
,1.04
2.79
1.63
1.91.
.83
.83"
1.21-
.71
•43
.39-
..45.
.58
.59
.·.99.
.25
1.74
i.oe
•33
•65
1.39-
.1.38.
1*66
i.eo "
1.16
.95
1.1.33"
'.61'
i1.241983
.·67.
•33
"2.08"
-.35
2.75
1.1.7
-.42-
.·92
.1.07 -
1.26-
.1.33.
.87
1.33-
-1.03-
•83
"1.04"
-.62-
.1.76
.88
1.03-
..73.
.57
*.56"
-.86-
1.29
I.03"
-1.22-
.93
•92
-.96*
•87.1933
3.62
.53
.10
.92
.22
•66
•16
•82
1·61
I.Ol
•28
•84
•18
•38
1·68
•92
•23
•14
1.62
1.58
.89.
•46
•43"
•93.
1.94
1.33"
1·75-
•77
·8>
.55-
1.171933
3.21.
2.11
.55
-.36.
.19
.68'
.45-
.93.49'
1.34
.1.54
.83
".46
>1.18.
.52
'.95
-.17
.63
.79"
•1.38-
-.86.
.56
3.32
-.83.
.63
"1.03
-1.82
.75
.69
-.69
.«94.1933
2.55
•74
"2.49'
.2.46.
1.12
2.19-
■1.09-
.80
".79"
.65-
.31.14"
•05-
..05.
.08
".04'
.06-
.02
"2.87
4.93
.3.33.
.33
■.39
-·43.
•17
"1«33'
2.18
•64
1.12
·06ι
.1.35J
,1
Source;Commission ,onthebasisofOECDdata.

PRODUCTS FOR WHICH SPAIN 'SBASIC DUTIES SHOULD BELIMITED
TO28$ADVALOREM FORINTRA-CQMMUNITY DISMANTLING
ANDTO34%ADVALOREM FORALIGNMENT ONTHECOMMON CUSTOMS TARIFFANNEX II
Spani sh
tariff
heading
NoRate ofduty ($)
Description Non-
Community
countriesEC
1 2 3 4
35.05 DEXTRINS ANDDEXTRIN GLUES ;SOLUBLE ORROASTED STARCHES ;STARCH GLUES :
A·Dextrins ;soluble orroasted starches 28.4 28.4
B.Glues made from dextrin orfrom starch ,containing byweight ofthose materials :
»
I.less than 25$ 28.4 28.4
II.25$ormore butless than 55$ 28.4 28.4
III.55$ormore butless than 80$ 28.4 28.4
IV.80$ormore 28.4 28.4

-2-
SpanishRateofduty(%)
tariff
heading
NoDescription Non-
Comirunity
countriesEC
1 2 3 d
84.15 REFRIGERATORS AM)REFRIGERATING EQUIPMENT (ELECTRICAL ANDOTHER):
C.Other:
II.Other:
(a)Refrigerators ofthetypesnormally usedinthehome,including those
fittedwithadeep-freeze compartment 31 31
(b)Horizontal orvertical deep–freezersofthetypenormally usedinthe
home,withafreezing capacity ofnotmorethan300litres 28.4 28.4
(c)Refrigerating equipment ofaweightofnotmorethan50kg 28.4 28.4
84.40 MACHINERY FORWASHING,CLEANING ,DRYING,BLEACHING ,DYEING,DRESSING ,FINISHING OR
COATINGTEXTILE YARNS,FABRICS ORMADE-UPTEXTILEARTICLES (INCLUDING LAUNDRY AND
DRY-CLEANING MACHINERY);FABRICFOLDING,REELING ORCUTTING MACHINES ;MACHINES
OFAKINDUSEDINTHEMANUFACTURE OFLINOLEUM OROTHERFLOORCOVERINGS FOR

-3-
Spanish
tariff
heading
NoRate ofduty (λ)
Description Non-
Community
countriesEC
1 2 3 4
84.40
(cont'd )APPLYING THEPASTE TOTHEBASE FABRIC OROTHER SUPPORT ;MACHINES OPATYPE USED
FORPRINTING AREPETITIVE DESIGN ,REPETITIVE WORDS OROVERALL COLOUR ONTEXTILES ,
LEATHER ,WALLPAPER ,WRAPPING PAPER ,LINOLEUM OROTHER MATERIALS ,ANDENGRAVED OR
ETCHED PLATES ,BLOCKS ORROLLERS THEREFOR :
B. Clothe3–washing machines ,each ofadrylinen capacity notexceeding 6kg;
domestic wringers :
I.Electrically operated :
(a)Clothes –washing machines :-
1.Automatic and semi-automatic 28.4 28.4
85.OI ELECTRICAL GOODS OFTHEFOLLOWING DESCRIPTIONS :GENERATORS ,MOTORS ,CONVERTERS
(ROTARY ORSTATIC ),TRANSFORMERS ,RECTIFIERS ANDRECTIFYING APPARATUS ,
INDUCTORS :
B.Other machines andapparatus :
\
I.Generators ,motors (whether ornotequipped with speed reducing ,changing
orstei>-up gear )androtary converters :-

-4-
SpanishRateofduty(?')
tariff
heading
NoDescription Non-
Community
countriesEC
1 2 3 4
85.01
(cont'd)Β.I.(a)Synchronous motorsofanoutputofnotmorethan18W
(b)Other:29.8 29.8
1.Generating setswitheitherasparkignition oracompression
ignition engine,havingaunitweight:
(aa)ofnotmorethan5OOkg 29.8 29.8
2.d.c.generators ,havingamitweight:
(aa)ofnotmorethan5OOkg 29.8 29.8
3.a.c.generators (alternators )havingaunitweight:
(aa)ofnotmorethan5OOkg 29.8 29.8
4.Rotaryconverters andmotorshavingaunitweight:
(aia)ofnotmorethan5OOkg 29.8 29.8
87.02
iMOTORVEHICLES FORTHETRANSPORT OPPERSONS fGOODSORMATERIALS (INCLUDING SPORTS
MOTORVEHICLES ,OTHERTHAN,THOSEOPHEADING NO87.Ο9):
A.Porthetransport ofpersons,including vehicles designedforthetransport
ofbothpassengers andgoods:

-5-
Spanish
tariff
heading
NoRateofduty(f-)
Description Non-
Community
countriesEC
1 2 3 4
87.02
(cont'd)A.I·Witheitherasparkignition oracompression ignition engines
(b)Other:
1.Withnotmorethan9seats,inclduing thedriver's seat 48.9 36.7
II·Withotherengines :
-
(a)Withnotmorethan9seats,including thedriver'sseat 48.9 36.7
B.Porthetransport ofgoodsormaterials :
II·Other:
(a)Witheitherasparkignitionoracompression ignitionengine:
1.Motorlorrieswitheitherasparkignition engineofacylindercapacityof28OOcnßormoreoracompression ignitionengineof
acylindercapacityof25OOcnßormore:-
(aa)Dumpersofacylindercapacity :
11·Oflessthan10000crn^:

-6-
SpanishRateofduty(λ)
tariff
heading
NoDescription Non-
Community
countriesEC .
1 2 3 4
87.02
(cont'd)B·II.(a)1,(aa)11.(aaa)ofanunladenweightinworkingorderof
lessthanI4000kg:
222.Other 37.4 37.4
22·of10000cm^ormore:
(ccc)ofanunladenweightinworkingorderof
lessthanI4Θ00kg:
222.Other 37.4 37.4
(bb)Other:
11.ofaweightoflessthan2000kg 42.2 31.6
2.Other:
(aa)Duopers:
11.ofVweightoflessthan2000kg 42.2 31.6
•(bb)Other:

-τ-
Spanish
tariff
heading
NoDescriptionRateofdutv(f~l
Non–
Community
eountries
1
87.02
(cont'd)
87.05B.II.(a)2.(bb)11.ofaweightoflessthan2000kg
(b)Withotherengines:
1.ofaweightoflessthan2000kg
BODIES(INCLUDING CABS),FORTHEMOTORVEHICLES FALLINGWITHING HEADING NO87.01,
87.02OR87.03:
A.Fortheindustrial assembly of:
Agricultural walkingtractorsfallingwithinsubheading 87.01A,
Motorvehiclesforthetransport ofpersons,including vehicles designedfor
thetransport ofbothpassengers andgoods,withaseatingcapacity ofless
than15,
Motorvehiclesforthetransport ofgoodsormaterials ,witheitherasparkignitionengineofacylindercapacityoflessthan2800cm^oracompression
ignitionengineofacylindercapacityoflessthan2500cm^,
Specialpurposemotorlorriesandvansofheading No87.03(a)
\
B.Other
(a)(CCT)Entryunderthissubheading issubjecttoconditions tobedetermined bythe
competent authorities .42.2
42.2
38.7
38.731.6
31.6
29
29

-8-
Spanish
tariff
heading
NoDescriptionRateofduty(/Í)
Non-
Community
countriesEC
1 2 3 4
87.O9 MOTORCYCLES,AUTO-CYCLES AUDCYCLESPITTEDWITHANAUXILIARY MOTOR,WITHOR-
WITHOUT SIDE-CARS ;SIDE-CARS OPALLKINDS: 39.3 29.5
97.02 DOLLS:
A.Dolls(dressedorundressed): 38.7 29
B.Partsandaccessories :
I·Heads 38.7 29
97.03 OTHERTOYS;WORKING MODELSOFAKINDUSEDFORRECREATIONAL PURPOSES :
A.Ofwood:
I·Spring-operated 38.7 29
B.Other:
I·Spring-operated
\38.7 29

ANNEX III
QUANTITATIVE RESTRICTIONS ONIMPORTS INTO SPAIN OF
COMMUNITY INDUSTRIAL PRODUCTS ASPROM ACCESSION "
Quota No Description -Tariff heading
7 Sulphur 25.03
16 Alcohol-based ,varnishes 32.09 JL_XX,.λ
'19 Powders and explosives "29.03 "B.I a
36.01
36.02
.Ex36.04
36.05
36.06
26 Polymerisation and copo lymeri sation
products (waste andscrap )Ex39.02 C
27 Articles ofartificial plastic
materials39.07 A
39.07 ΒI
39.07 ΒIII
Ex39.07 ΒV
33 Cotton yarn 55.05
55.06
35 Woven fabrics ofcotton 55.09
36 Lace
Velvet and knitted orcrocheted
fabric ofcotton58.04 C
Ex58.09 ΒI
.58.09 ΒII
60.01 CI
3.8 Carpets 58.01
58.02 λ
40 Knitted orcrocheted garments
ofcottonEx -60.04 λ
Ex60.04 Β
Ex60.05 AII
Ex60.05 ΒIII
41
♦Outer garments ofcotton Ex61.01 λ*
Ex61.01 Β
Ex61.02 A
Ex61.02 Β
42 Under garments ofcotton
í
i
f
tjßl-03 Aîî
61.03 ΒII
61.03 CII
61.04 AI
EX61.04 ΒI
f

Annex III (cont'd)
Quota No Description Tariff heading
44 Other made-up articles ofcotton ;Ex62.02 AII
Ex62.02 ΒI
Ex62.02 ΒII
Ex62.02 ΒIII
Ex62.02 ΒIV
62.03
•Ex62.05 λ
Ex62.05 Β
Ex62.05 C
.Ex62.05 E
65 Domestic sewing machines andparts 84.41 λI
thereof 84.41 AIIb1
Ex84.41 AIII ï.
66 Colour television receivers■Ex85.15 AIII b2aa
69 Special vehicles forthetransport 87.02BIIalaallbbb
ofearth ,rocks andminerals 87.02BIIalaallccc
87.02BIIalaa22bbb222
87.02BIIalaa22ccc222
70 Wheeled tractors ofacylinder capacity87.01 A
of4000cnßorless 87.01 Bí
71 Motor coaches and buses 87.02 AIA
73 Special purpose motor lorries andvans87.03
76 Ships ,boats andother vessels Ex89.01
89.03
79 Firearms ,excluding military firearms 93.02
93.04 A
93.05
ι, 93.06
80 Ammunition 93.07
NB«This isthe list presented bySpain initsstatement .
Amore detailed list ,also indicating thecustoms duties atpresent levied
"bySpain vis–a^-vis theCommunity ,will "bedistributed "separately#