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r. COMMISSION OF THE EUROPEAN COMVIUNITIES 
C0M(92) 417 final 
Brussels, 14 October 1992 
Proposal for a 
COUNCIL REGULATION (EEC) 
extending into 1993 the application of Council Regulations 
(EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90 
applying generalized tariff preferences for 1991 
in respect of certain products 
originating in developing countries, 
and adding to the list of beneficiaries of such preferences 
Draft 
DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES 
OF THE EUROPEAN COAL AND STEEL COMMUNITY. 
MEETING WITHIN THE COUNCIL 
extending into 1993 the application of Decisions 90/672/ECSC and 
90/673/ECSC applying generalized tariff preferences 
for 1991 in respect of certain steel products 
originating in developing countries 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. In the light of the fact that conclusion of the Uruguay Round 
negotiations has been put off until the end of the year, making it 
impossible to start implementing its results until the beginning of 
1994 at best, the Commission considers it preferable to postpone 
the entry into force of the new ten-year scheme of generalized 
preferences until 1 January 1994. This is because account will 
have to be taken of the possible effects of some aspects of the new 
scheme on the conclusion of the negotiations and, conversely, of 
the potential effects of the results of the Uruguay Round on the 
GSP. 
2. It is for these reasons that the Commission is proposing that the 
generalized preference scheme in operation in 1992 be carried over 
once again unchanged. It reserves the right to launch a debate on 
a global revision of the system with the objective of putting into 
operation a revised GSP in 1994. 
3. The only alteration that the Commission considers necessary at this 
stage is the addition of new countries to the list of GSP 
beneficiaries in order to take account of the most recent 
developments in the international political situation, notably the 
collapse of the USSR. 
4. Following the upheaval they have experienced, the countries which 
formerly made up the USSR are now facing a political, economic, 
social, moral and cultural crisis of such magnitude that it is the 
Community's duty to use every possible means to provide 
comprehensive assistance. 
5. Since the aim is to ease these countries' difficult transition 
towards a free market economy founded on democratic institutions, 
such assistance should not be contemplated without opening the 
Community market up to their exports to the greatest extent 
possible. This will provide their industrial and agricultural base 
with the incentives needed for restructuring, redeployment and 
revita Iizat ion. 
6. In order to open up the Community market, the Commission considers 
it necessary, as has been done in the past for other Eastern 
European countries in the same situation, to make use of the 
Community generalized preference scheme. 
7. Since the situation in question is by definition a temporary one, 
however, the Commission is proposing that access to the GSP for 
these countries be limited to three years. 
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8. The Commission furthermore takes the view that the countries of the 
former USSR should not be given access to the GSP scheme for 
textiles unless they conclude with the Community individual 
bilateral textile agreements to succeed the textile agreement with 
the USSR. 
With regard to fishery products, however, the Commission proposes 
that these countries' GSP arrangements be identical to those which 
apply to Estonia, Greenland, Latvia and Lithuania. 
9. To take into account the fact that the economies of the countries in 
question are so closely interlinked, the Commission has decided to 
begin preparations for the operation from 1 January 1993 of a system 
of regional cumulation of origin, similar to that already used for 
ASEAN, the Andean Pact and the CACM, it being taken for granted that 
its functioning will be dependent on the establishment of the 
necessary administrative procedures between the republics. The 
Commission is also proposing that regional cumulation of origin 
apply to the Baltic states. 
10. The Commission considers that the advent of the single market on 
1 January 1993 makes it necessary to change the arrangements for 
textiles, and proposes that the tariff quotas divided among the 
Member States be replaced by fixed duty-free amounts. 
The effect of this alteration will be to transfer accounting 
functions relating to preferential imports to the Commission, as 
is already the case with industrial products other than 
textiles. This change is Justified by the fact that it is 
technically impossible to deal with drawings on Community fixed 
amounts at Member-State level. 
11. The Commission takes the view that the list of least-developed 
countries should be aligned on that of the United Nations, and 
that Cambodia, Liberia, Madagascar, the Solomon Islands, 
Vanuatu, Zaire and Zambia should therefore be added. 
12. As there have been a number of nomenclature changes, the 
appropriate technical alterations will have to be made to the 
lists of products attached to the GSP scheme. 
13. It is with the above objectives in mind that the Commission is 
forwarding this proposal for a Regulation to the Council with a 
request that it be adopted in time to enable it to enter into 
force on 1 January 1993. 
proposal for a 
Council Regulation (EEC) No ... 
extending into 1993 the application of Council Regulations 
(EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90 
applying generalized tariff preferences for 1991 
in respect of certain products 
originating in developing countries, 
and adding to the list of beneficiaries of such preferences 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Articles 113 and 43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament,1 
Having regard to the opinion of the Economic and Social Committee,2 
Whereas, in accordance with the offer it made within the United Nations 
Conference on Trade and Development (UNCTAD), the European Economic 
Community introduced generalized tariff preferences in 1971 for 
finished and semi-fini shed industrial products, textile products and 
some agricultural products from developing countries; whereas the 
initial ten-year period of application of this system of preferences 
ended on 31 December 1980; 
Whereas the positive role played by this system in improving access for 
the developing countries to the markets of the preference-giving 
countries was recognized at the ninth session of the UNCTAD Special 
Committee on Preferences; whereas It was agreed at that session that 
the objectives of the generalized system of preferences would not be 
fully achieved by the end of 1980, and that it should consequently be 
extended beyond the initial period, an overall review of the system 
having started in 1990; 
Whereas the review of the system has continued into 1991 and 1992, and 
the progress of the work makes it unlikely that a scheme based on new 
guidelines will be established by 1 January 1993; whereas the review 
is, however, likely to be completed during 1993; 
1 0 J 
2 Opinion delivered on 
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Whereas the validity of the 1992 scheme of generalized preferences 
should be provisionally extended into 1993, pending the outcome of the 
review; 
Whereas Regulations (EEC) No 3831/90,1 (EEC) No 3832/90,2 (EEC) 
No 3833/90,* (EEC) No 3834/904 and (EEC) No 3835/905 were extended 
into 1992 by Regulations (EEC) No 3587/916 and (EEC) No 3588/91,7 
supplemented and amended by Regulations (EEC) No 3302/91,8 (EEC) 
No 3900/91,9 (EEC) No 282/92,10 (EEC) No 548/92,11 (EEC) 
No 1433/9212 and (EEC) No 1509/92,13 
Whereas in the light of the advent of the single market on 1 January 
1993, tariff quotas divided among the Member States should be replaced 
by fixed duty-free amounts, and whereas Regulation (EEC) No 3832/90 
must therefore be amended; 
Whereas the effect of this alteration will be to transfer accounting 
functions relating to preferential imports to the Commission; whereas 
this change is Justified by the fact that It is technically impossible 
to deal with drawings on Community fixed amounts at Member-State level. 
Whereas in the interests of efficient Joint administration of the 
fixed amounts, the Member States will be responsible for collecting 
requests for drawing and notifying importers of the Commission's 
response to those requests, in a framework of close cooperation 
between the Member States and the Commission, with the Commission 
informing the Member States of the degree to which the fixed amounts 
have been drawn on; 
Whereas the economic situations of Ukraine, Belarus, Moldova, Russia, 
Georgia, Armenia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, 
Tajikistan and Kyrgyzstan have worsened to the point that they face 
difficulties comparable to those experienced by countries which have 
in the past been eligible for preferences; 
Whereas Ukraine, Belarus, Moldova, Russia, Georgia, Armenia, 
Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan and 
Kyrgyzstan should temporarily be made eligible for the generalized 
system of preferences in order to increase their exports and thus 
accelerate economic development, promote industrialization and improve 
growth rates; 
1 0J L 370, 31.12.1990. p.1. 
2 OJ L 370, 31.12.1990, p.39. 
3 0J L 370, 31.12.1990, p.86. 
4 0J L 370. 31.12.1990. p.21. 
5 0J L 370, 31.12.1990, p.126. 
6 0J L 341, 12.12.1991, p.1. 
7 OJ L 341, 12.12.1991, p.6. 
8 0J L 315, 15.11.1991. p.46. 
9 0J L 368. 31.12.1991. p.11. 
10 0J L 31, 7.2.1992, p.1. 
11 OJ L 63, 7.3.1992. p.49. 
12 OJ L 151, 3.6.1992, p.7. 
13 0J L 159, 12.6.1992, p.1. 
- 5 -
Whereas the treatment established in 1992 for fishery products from 
Estonia, Latvia and Lithuania, which is identical to that applied to 
Greenland, should now be applied to fishery products from Ukraine, 
Belarus, Moldova, Russia, Georgia, Armenia, Azerbaijan, Kazakhstan, 
Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan; 
Whereas the list of least-developed countries should be aligned on that 
of the United Nations, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Subject to the following Articles, Regulations (EEC) Nos 3831/90, 
3832/90, 3833/90, 3834/90, 3835/90 and 3900/91, applying generalized 
tariff preferences in respect of certain products originating in 
developing countries shall apply mutatis mutandis from 1 January 1993 
until 31 December 1993. 
References in the Regulations mentioned in the first subparagraph to 
specific dates in the years 1991, 1992 or 1993 shall be taken to refer 
instead to the same dates in the years 1992, 1993 or 1994 respectively. 
Article 2 
Regulation (EEC) No 3832/90 is amended as follows: 
1. The references to "tariff quotas" and "quotas" in the first indent 
of Article 1(1), Article 1(5) and Article 14 are deleted. 
2. Article 8(1) is replaced by the following: 
"The total suspension of customs duties within the framework of the 
fixed amounts referred to In Article 1(1) concerns the categories of 
products in Annexes I and II, for each of which the volume of the 
amount is specified individually in column 6 of those Annexes, with 
regard to the countries or territories specified in column 5 of the 
same Annexes." 
3. In Annex I (pages 47 to 51), the heading for columns 6a, 7a, 6b and 
7b is replaced by the following: 
M Fixed duty-free amounts 
1.1.1993 - 30.6.1993 1.7.1993 - 31.12.1993 
(6i) (6ii) 
- 6 -
The amounts in columns 6a and 7a shall added and the total inserted 
in column 61 ; the same shall be done with the amounts in columns 6b 
and 7b, and the total inserted In column 611, in each case opposite 
the name of the appropriate country or territory. 
4. In Annex I (pages 52 to 74), the heading for columns 6 and 7 is 
replaced by the following: 
•Fixed duty-free amounts 
(6)" 
The amounts in colurns 6 and 7 shall be added and the total inserted 
in column 6, in each case opposite the name of the appropriate 
country or territory. 
5. Footnote (1) on page 47 is deleted. Footnote (1) on page 67 is 
replaced by the following: 
"For this country, the fixed duty-free amount Is calculated In items, 
and will be 168 000 items." 
6. Section I is deleted. Sections II, III and IV are renumbered I, li 
and 111 respect IveIy. 
7. The first subparagraph of Article 15(2) is deleted. 
8. Articles 8 to 18 are renumbered 2 to 11 respectively. References to 
those Articles are altered accordingly. 
Article 3 
The following are added to Part A of Annex III to Regulation (EEC) 
No 3831/90, Part A of Annex V to Regulation (EEC) No 3832/90 and Part A 
of Annex III to Regulation (EEC) 3833/90: 
072 Ukraine 
073 Belarus 
074 Moldova 
075 Russ i a 
076 Georgia 
077 Armen i a 
078 Azerbaijan 
079 Kazakhstan 
080 Turkmenistan 
081 Uzbekistan 
082 Tajikistan 
083 Kyrgyzstan 
..;-*.••¥*--. 
- 7 -
Footnote (c) in Annex II to Regulation (EEC) No 3833/90 is replaced by 
the fol lowing: 
"(c) Preferences are not to be granted in respect of products 
marked with two asterisks, originating in Armenia, 
Azerbaijan, Belarus, Estonia, Georgia, Greenland, 
Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova. Russia. 
Tajikistan. Turkmenistan. Ukraine or Uzbekistan." 
Article 4 
1. The following are added to Annex IV to Regulation (EEC) No 3831/90. 
Annex VI to Regulation (EEC) No 3832/90 and Annex V to Regulation 
(EEC) No 3833/90: 
268 Liberia 
322 Zaire 
370 Madagascar 
378 ZambI a 
696 Cambod i a 
806 Solomon Islands 
816 Vanuatu 
2. A footnote reference "(2)N is added to the names of the countries 
in question in part A of Annex III to Regulation (EEC) No 3831/90 
and in part A of Annex V to Regulation (EEC) No 3832/90. 
3. The countries in question are deleted from part A of Annex III to 
Regulation (EEC) No 3833/90. 
Article 5 
The technical amendments to the Annexes to Regulations (EEC) No 3831. 
(EEC) No 3832/90. (EEC) No 3833/90 and (EEC) No 3835/90 are contained 
in the Annex to this Regulation. 
Article 6 
This Regulation shall enter into force on 1 January 1993. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member states. 
Done at Brussels, For the Council, 
The President 
8-
ANNEXI a 
1. The following products shall be added to Annex I to Regulation (EEC) N° 3831/90: 
KjSSS^^^SSKSSSSSSSE^SIISESSSESSCBBSSESSSSBESB^^BESSESBBmSSSS 
I Order N° CN-code Ceiling 
I (ECU) 
I 10.0072 2835 25 410.000 
10.0074 2835 26 280.000 
10.0102 2849 20 00 3.343.000 
10.0104 2902 30 10 300.000 
I10.0118 2903 22 00 197.000 
10.0161 2909 42 00 180.000 
**{f'". . jtfft— *? *»'": 
2. In Annex 1 to Regulation (EEC) N° 3831/90, the following countries shall be added in 
column 4 with regard to the following products: 
Order N* Countries 
10,0040 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0110 Russia 
10.0120 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0140 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0282 Russia 
10.0400 Russia, Kazakhstan, 
Ukraine, Belarus 
. •..., i i -II ••• —<MMM_____.»_---«<p-lfcM__--- MH-MH-^ —.11 i • • • — ii i 
10.0402 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0407 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0408 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0410 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0420 Russia, Kazakhstan, 
Ukraine, Belarus 
10.0610 Russia, Ukraine, 
Belarus 
10.0630 Russia, Ukraine, 
Belarus 
10.0670 Russia, Ukraine 
10.0840 Russia, Kazakhstan, I 
Ukraine J 
10.0150 Russia, Kazakhstan, I 
Ukraine I 
10.0840 Russia, Kazakhstan, 
tUkraine 
10.0925 Russia, Ukraine 
-10-
I. Amendments to the annexes of Regulation (EEC) No 3831/90 
II. Amendments to the annexes of Regulation (EEC) No 3832790 
IH. Amendments to the annexes of Regulation (EEC) No 3833/90 
IV. Amendments to the annexes of Regulation (EEC) No 3835/90 
•-11 -
Draft 
DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF 
THE MEMBER STATES OF THE EUROPEAN COAL AND STEEL COMMUNITY, 
MEETING WITHIN THE COUNCIL 
extending into 1993 the application of Decisions 90/672/ECSC and 
90/673/ECSC applying generalized tariff preferences 
for 1991 in respect of certain steel products 
originating in developing countries 
(92/ /ECSC) 
THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE 
EUROPEAN COAL AND STEEL COMMUNITY, MEETING WITHIN THE COUNCIL, 
In agreement with the Commission, 
HAVE DECIDED AS FOLLOWS: 
Article 1 
Decisions 90/672/ECSC1 and 90/673/ECSC2 applying generalized tariff 
preferences in respect of certain steel products originating in 
developing countries shall apply mutatis mutandis from 1 January 1993 
until 31 December 1993. 
Where the Decision mentioned in the first subparagraph refer to 
specific dates in the years 1991 or 1992, those dates shall instead to 
read as dates in the years 1992 or 1993 respectively. 
Article 2 
1. The following are added to Annex IV to Decision 90/672/ECSC : 
268 Liberia 
322 Zaire 
370 Madagascar 
378 Zambia 
696 Cambodia 
806 Solomon Islands 
816 Vanuatu 
2. A footnote reference "(2)M Is added to the names of the countries in 
question in part A of Annex 111 to Decision 90/672/ECSC. 
Article 3 
The technical amendments to the Annexes to Decision 90/672/ECSC are 
contained in the Annex to this Regulation. 
Article 4 
This Decision shall enter into force on 1 January 1993. 
Done at Brussels, 
The President 
1 OJ L 370, 31.12.1990, p.133 
2 OJ L 370, 31.12.1990, p.151 
- 12 -
ANNEX 
Amendments to Annex I to Decision 90/672/ECSC 
- 13 -
FINANCIAL STATEMENT 
The financial impact of the generalized tariff preferences extended to 
developing countries is hard to quantify accurately because the rules 
for granting such preferences are flexible, and because: 
- the concessions are complex and a distinction is made between 
countries; in particular, there are quotas and tariff ceilings which 
differ from product to product and beneficiary to beneficiary; 
- the production structures of the developing countries mean that the 
degree to which they are able to comply with the rules of origin 
varies; 
- incomplete use is made of the advantages offered, either because of 
lack of Information, or, in cases in which the usual duty is low, 
because of a lack of economic gain. 
These eons (derations lie* at the root of the considerable disparity 
between the overall offer made available from 1 January and the 
quantities Imported under preferential arrangements by 31 December of a 
given year. 
Taking as its basis the overall GSP offer of ECU 27.8 billion for 1992, 
and taking account of the changes made (incorporation of the CIS and 
Georgia, withdrawal of Czechoslovakia, Hungary and Poland), the overall 
GSP offer for 1993 is estimated to be ECU 26.539 billion. 
With weighted average common customs tariff duties applicable to the 
products in question of between 5.5% and 6%, and an average take-up 
rate of 70%, the estimated figures for customs revenue uncollected as a 
result of the operation of the Community GSP scheme in 1993 are 
ECU 1.022 billion to ECU 1.115 billion. 
ISSN 0254-1475 
COM(92) 417 final 
DOCUMENTS 
EN li 02 
Catalogue number : CB-CO-92-445-EN-C 
ISBN 92-77-48014-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg