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DOCUMENTS "COM"
COM(74)814
Vol.1974/0125

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COMMISSION O?THEEUROPEAN COMMUNITIES
COM(74)814final
Brussels,5June1974
f,
DRAFTOP
DECISIONOFTHEJOINTCOMMITTEE
addingandmodifyingthelistsAandBannexedtoProtocolHo3
(submittedtotheCouncil "bytheCommission)
\
COM(74)814final

COMMUNICATIO NJj^M__THE [COMMISSION TOTHECOUNCIL
Evolution ofmanufacturing techniques andinternational economic
conditions which have occurred forcertain products ,since theentry into
force oftneagreements concluded between theCommunity andtheEFTA
countries ,have brought theneed toease thespecifip rules oforigin
4
applying tothese products ,which areincluded intheLists AandB
annexed toProtocol No3which isanintegral part oftheagreements .
This isthe object ofthe draft decision oftheJoint Committee
EEC --Sweden which isappended ;itisproposed that theCouncil adopts
this r.sthecommon position oftheCommunity forthepurposes ofthe
Joint Committees setupbythedifferent ESC-EFTA agreements .Thepresent
draft isrelative toSv/eden and constitutes amodel for identical drafts
for all the other agreements .
Themodifications listed inthe draft decision have been theobject ,
from themoment therequests were made either bytheMember States orthe
EFTA countries ,ofnumerous and deep discussions intheCustoms Legislation
Committee aswell asintheEFTA-Group where these requests were sent .
Themajority oftheenvisaged modifications have received theunanimous
agreement oftheexperts from theMember States .
There remain ,however ,certain changes upon which ithasnotyetbeen
possible toagree .Among them^hose present inthis draft decision ,the
Commission onits pr.rt isable toadopt afavourable position .Ontheother
hand forother products theCommission isunable topropose themodifica­
tion ofthe existing rules .
*

Among the changes listed intheannexed draft ,which have uot received
unanimous agreement ,the following must bementioned :
-Felt andarticles offelt ,whether ornotimpregnated orcoated :ex59-02
This modification ,proposed forList Aenvisages thepossibility of
obtaining felt and felt articles from fibres orcontinuous polypropylene
filament ofwhich thevalue does not exceed ^0%ofthat ofthefinished
article .Areserve exists onthepart oftheBelgian and Italian dele­
gations ;theCommission feels that the evolution ofeconomic conditions
concerning trade intherawmaterials used justifies themodification
which is .envisaged .
-Silk Chapter :50.04 to50.07
Theproposed modifications ,concerning both Lists Aand B,inthis
field ,would allow themanufacture oforiginating silk yarn from carded
orcombed waste ofthird country origin aswell asoriginating waste
from uncombed oruncarded third country waste .
Only theItalian delegation maintains areserve anthis chapter ,
feeling that theproposed rule could endanger theproduction ofrawsilk
intheSouth ofItaly .TheCommission feels that the envisaged modifica­
tions will not hinder the Italian interests .Ineffect these modifications
.have been asked forbytheCoordination Committee oftheTextile Indu­
stries oftheCommunity v;hohave said that they havereceived theunanimous
agreement ofall theparties concerned intheCommunity and intheEFTA .
-Films ofionemers :ex39.02
Theproposed modification concerns thereplacement oftherulemList B
which allows theuseofthird country products tipto20%ofthevalue
ofthefinished product byarule describing themanufacturing process
to.be used toobtain originating products .
TheGerman ,French and Italian delegations maintain areserve on
this .The Commission feels that the economic motivations ofthe Finnish
request -that istosaytheinsufficiency ofthelevel of20%in
List B-arewell founded taking account oftherecent evolution of

the cost ofrawmaterials used formanufacturing films oflonomers
aarketed under thename "Surlyn ". 'If,onthe onehand theupward
manipulation ofthepercentage rule isconsidered asconstituting a
dangerous precedent ,forother products with which atpresent weare
notconcerned ,theFinnish request canbesatisfied bythereplacement
oftheactual percentage rule byone ofprocess which would have the
advantage ofapplying only totheproduct concerned .Ineffect ,the
films ofionomers inquestion aremade byfusion ofionomer granules
only ,without theuse ofadditives which would modify thecharacteristics
ofthe film .The fusion isextruded toobtain acontinuous film which
isthen cooled .This operation isfollowed byasurfacing treatment and
thefiln isthen made into rolls .Atthe end oftheprocess thefilm
isunrolled and cut toform .This process ofmanufacture' isstated in
thepri-osed rule .TheFinnish exports ofthese films amount to100,000 kg
ofavalue of1,000,000 FM.
Unwrought aluminium :ex?6.01
This notification concerns List Baswell g&denvisaged allowing the
obtention ofunwrought aluminium byathermal orelectrolytic treat­
ment ofnon alloyed aluminium obtained from waste and scrap .
Only theFrench delegation has made areserve cnthis point feeling
that theproduction ofaluminium alloys from unalloyed aluminium does
not constitute asufficient transformation .
Refined lead :ex78.01
This proposed modification concerning List Benvisages permitting the
manufacture -ofrefined lead byrefining thermally bullion lead .
The Italian delegation maintains areserve onthis ,feeling that it <
could put indanger the Italian production ofunrefined lead .The Com­
mission feels that theproposed rule does notprovide anyparticular
danger for the Italian production ,taking into account that theneeds
ofE.FTA ana theEEC forlead cannot bemet byItaly alone .Additionally ,

itistobenoted thp.t therule proposed isthosime asthat which
already exists forcopper .Ithas ,additionally ,theadvantage of
favouring therefining industries intheCommunity .
Sewing machines ;ex84.^1
Thepresent rule inList Astipulates that sewing machines must be
made byworking ,processing orassembly inwhich non-originating
products andparts used donotexceed kO%ofthevalue ofthe
finished product ,and oncondition ;
-that 50%atleast ofthevalue oftheproducts andparts used for
theassembly ofthehead (motor excluded )areoriginating products
and
-that thethread tension ,crochet and zigzag mechanismes arecriginatin
products .
Theproposed modification ,which concerns Lists Aand B,envisages the
elimination oftheparticular conditions and aligns therule forsewing
machines with thegeneral rule laid down forchapter 84which only
stipulates auniform percentage of40%of "non-originating materials .
This modification takes account ofthe fact that theparticular
conditions inforce fordetermining theorigin ofsewing machines
risk having theeffect cfanexagerated protection .Given that the
higly industrialised countries depend onasmuch world wide co-opera­
tion aspossible ,arule oforigin asrestrictive asthis ,based
practically ontheformula that only accessories andparts of
secondary importance canhave third country origin ,constitutes a
barrier toliberal trade .
Rules oforigin aslimited asthis must ,inthat case ,bejustified
asthe last resort inacase cfunfair competition ora .r.asnivs threat
tothe entire industrial sector .Otherwise there isnoreason for cbcm »
From theviewpoint ofaliberalisation ofworld trade and inthe
absence ofamassive menace from outside ,the Commission feels thc.t
there isevery reason toapply ,forthese products ,the40%rule
laid down ingeneral forthewhole ofchapter 84.

-5-
Among therequests formodifications upon which itwas not
possible toagree andupon which theCommission does not feel itpossible
totake afavourable view ,itisnecossary tomention thefollowing :
-Thecopper problem -List A:headings7k.03,Ok,05»06and07and
additionally 85.23 intheexception tothegeneral rule forchapter
85.
This concerns arequest oftheUnited Kingdom delegation *TheBelgian ,
German andFrench delegations have taken adiametrically opposed view .
The actual state ofaffairs can besummarised asfollows :
Thepresent rule inList Astipulates that theproducts must
bemade from basic materials (notably refined copper )ofwhich the
value does notexceed 50%•Tothis rule ,another factor applies as
aresult ofthefact thiat this rule of50%does not .apply tothe
copper obtained under therule inList Bwhich states that refined
copper may beobtained from non-originating unrefined copper .
The U.K.position consists ofasking thereplacement ofthe
percentage rule inList Abyarule based cnthemethod ofmanufacture ,
onthe basis ofthe two folloi /ingarguments J
-firstly ,thegreat increase intheworld price cfcopper leads tothecon­
sideration of .the50%asinappropriate and ,atlerrst notenough .
-secondly ,thefactor oftheList Bisnotsufficient toease 'this
difficulty bocause thaneed3 oftheU.K. for copper apply tocopper
ofvery high quality (99.99 %pure copper )ofwhich theCommunity
andEFTA donot have sufficient ,andwhich isnecessary because of
thehigh degree ofductability and conductability which thefinished
products need .
\
Themost important diference inview isthat ofthequality ofthe
copper needed ..TheBelgian andGerman hold contrary tothe U.K. that
theproduction ofcopper intheCommunity issufficient tocover the
needs ofBritish exports toEFTA .
•/••e

-6-
TheComma ,re:"does notfoel able totake afavourable position
onthe U.K. request inview oftheCommunity capacity toproduce high
quality copper .Additionally ,theCommission notes that thepresent
rule inList B,v.'hich allows therefining ofnon-originating copper ,
issufficient especially taking into account thepresent efforts to
create refining plant intheCommunity which they donotwant tohinder .
-Tubes for reactor elements :exSi.Ok
This concerns aNorwegian request for amodification ofList Bconsisting
ofreplacing the existing rule cfr.anufacture ofthese tubes from
unworked base metals byaneasier rule allowing manufacture from base
metals v/hich have been rough cast .Theexperts oftheMember States
have notbeen able togive their agreement tothis request .
The Commission isnot convinced ofthe substantial nature ofthe
process which would beprescribed bythenewrule ,which could present
adanger ofbeing anr>li<id 011anextended scale toproducts net con­
cerned intheNorwegian request .
-Graphite olectrodec :ex85.2*t
This request bytheEFTA countries which envisages permitting the
manufacture ofthis product from ungraphitised carbon electrodes ,has
not .received theagreement oftheBelgian ,French and Italian delega­
tions .TheCommission does not consider theenvisaged process asbeing
substantial ,that istosay thegraphitisation .
-.Works trucks :ex87.07
This Finnish request envisages allowing theutilization of25%ofthe
nonoriginating parts from the same tariff heading .This request is
based onthefact that themajority ofparts forthetrucks (notably
thegear boxes andaxles )are inthesame tariff heading ,which causes
adifference intreatment visavistheother machines inChapter 85,

-7-
where theparts are net inthe same tariff heading andwhich thus
benefit from the more favourable rule inList A.Inthe view of
theFinnish ,this difference isnet justified asweare concerned
here with anequal transformation .
This request hasmettheopposition oftheBelgian ,French
Italian andGerman delegations .TheCommission isoftheopinion
that inorder tosatisfy theFinnish requirements this proposition
istooextensive ,especially concerning thepercentage of25%j
talcing into account theexistence ofthetolerance of5%forList B.
Additonally ,the Commission considers that itisnecessary toadopt a
very prudent attitude inthis sector ,bearing inmind the economic
implications that themodification oftheexisting rule would have
onthestate offoreign competition .
*
* *
Itistherefore proposed that theCouncil adopts theannexed
draft astie joint position oftheCommunity inthevarious Joint
Committees EEC-EFTA .For this itistobenoted that ;the Joint
Committees areorientated towards bringing these necessary andurgent
modifications into force asfrom 1July 197^.

AGREEMENT EEC-SWEDEN
The Joint Committee
DRAFT OF
DECISI ONNo /IkOFTHEJOINT COMMITTEE
adding andmodifying thelists Arjid B
annexed toProtocol No3
THE JOINT COMMITTEE ,
Having regard totheAgreement between theEuropean Economic Community
and theKingdom ofSweden ,signed atBrussels 0:122July 1972 ,
Having regard toProtocol No3concerning tho concept of"originating
products "and tothemethods ofadministration cooperation (afterwards referred
toasProtocol No3)?ndinparticular article 28thereof ,
Whereas experience aquircd since the entry into force ofthe agreement
shews that therules oforigin laid down forcertain products inProtocol
No3,must beadapted totake account oftheevolution ofmanufacturing
techniques ofthose products and theinternational economic conditions
concerning trade inthose products ;
Whereas itisnow convenient toadd to andmodify these rules ,

DECIDES
F?_rst Article
1. List Aannexed toProtocol No3isadded tobytheinsertion ,
inaposition determined bythenumerical order oftariff headings ,
ofthe rules inAnne ::I.
2. Inlist A,annexed toProtocol No3»the rules concerning hea­
dings orchapters Nos 50.0*f ,50.05 ,50.06 ,50.07 ,5^.03 ,59-02 ,ex
chapter 8*farereplaced bytherules inAnnex II.
3» Inlist Aannexed toProtocol No3'the text contained inthe
fourth column forheadings Nos18.02 ,18.C3 ,18.0 ^,18.05 and18.06
istoberead inconjunction with footnote (1)asfollows :"(1)These
particular provisions donotapply when theproducts areobtained
from products v.'hich have aquired thecharacter oforiginating products
bymeeting the conditions set out inlist B'u'.
Inlist Aannexed toProtocol No3itherule concerning heading
Noex84.^1 iscancelled .
Article 2
1. List Bannexed toProtocol No3isadded tobytheinsertion m
the place determined bythe numerical order cftariff headings ,ofthe
rules inAnnex III
2. Inlist 3annexed toProtocol No3itherules concerning exchap­
ter39andheadings Nosex70.13 andex18^-.Marereplaced bytherules
inAnnex IV.

The rule atthe top oflist Bannexed toProtocol No3asfol­
lows :"Incorporation ofnon-originating materials andparts inboilers ,
machinery ,mechanical appliances ,etc.,ofChapters 8^fto92andin
boilers andradiators ofheading No73*37 does notmake such products
lose their status oforiginating products ,provided that the value
ofthese products ,parts andpieces does notexceed 5%ofthevalue
ofthe finished product "isreplaced bythefollowing rule :"Incor­
poration ofnon-originating materials andparts inboilers ,machinery ,
mechanical applicances etc.,ofChapters 8^to92,inboilers and
radiators ofherding No73-37 end intheproducts contained inheadings
No97.07 andinNo98.03 does notmake such products lose their status
oforiginating products ,provided that thevalue ofthese products does
notexceed 3%ofthevalue ofthefinished product ."

ANNEX I
1 !
I Products obteined Iworking orprocessing
that does not confer
the status of
originating nroductsWorking orprocessing
that confers the status
oforiginating products
when the following
conditions are metCustoms Tariff
heading No Description
ex59-02
(1)Felt and ar­
ticles of
felt ,wh3-
ther ornot
impregnated
orcoatedManufacture either from
natural fibres or,from
chomical products or
textile pulp ;manufac­
ture from fibre orcon­
tinuous polypropylene
filament ofadenomina­
tion less than 8denier
ofwhich the value does
not exceed kO%ofthe
value ofthe finished
■product
ox51.01
ex61.02
ex61.10
I
IFire resis­
ting equip­
ment of
cloth cove­
red byfoil
.ofelumini -
sedpolyesterManufacture from uncoa­
ted cloth ofwhich the
value does not exceed
40%ofthevalue of
the finished product

--
ANNEXII
Productsobtainedworkingorprocessing
thatdoesnotconfer
tnestatusof
originatir.g productsV.orkingorprocessing
thatconfersthestatus
oforiginating products
whenthefollowing
conditions aremetCustomsTenff
headingNo'Description
50.0b
(1)Silkyarn,
otherthan
yarnofnoil
orother
wastesilk,
notputup
forretail
saleI
i
iGeneralruleofchange
oftariffheading
50.05
(1)Yarnspun
fromsilk
wasteother
thannoil,
notputup
forretail
sale!
IManufacture frompro­
ductsofheadingNo,
50.03
50.06
(1)Yarnspun
fromnoil
silk,not
putupfor
retailsale
Silkyarn
andyarn
spunfrom
noilor
otherwaste
silk,putup
forretail
saleI
IMmufacture frompro­
ductsofheadingNo
50.03
50.0?
(1)Manufacture frompro­
ductsofheadingsNos
50.01,50.02or50.03
Manufacture frompro­
ductseitherofheading
No5^.01neithercarded
orcombedorofheading
No5h.025^.03
(1)Flawor
ramieyarn,
putupfor
retailsale
exChapter
8h
1
IBoilers,ma-:
chinoryand
mechanical
appliances
excluding
refrigerators
andrefrige­
ratingequip­
ment(elec­
tricaland
other)(No
84.15)Working,processingor
assemblyinwhichthe
valueofthematerials
andpartsuseddoesnot
exceedkO%ofthevalue
ofthefinishedproduct
(1)
T
I

ANNEX III
Products obtained■ 1 1■" ■■
'■forking orprocessing that
confers the status of
originating products when
the following conditions
are metCustoms Tariff
heading NoDescription
ex .58.07 Sulphate turpentine ,puri­
fiedPurification consisting of
the distillation orrefining
ofraw sulphate turpertine
ex39.02 Films ofîonoraers Manufacture from apartial
salt ofthermoplastic which
isacopolymer ofethelene
and ofmetacrylic acid par­
tially neutralises bymetal­
lic icns ,principally of
zinc e.nd sodium '
ex50.03 Silk waste caraed orcombea Carding orcombing waste silk
ex59.14 - Incandescent gasmantles Manufacture from tubular gas-
mantle fabric
3X75.01 β Unwr ought nickel except
nickel alloysRefining ofwasto byelectro­
lysis ,bymelting or .byche­
mical means ofwaste and sera
ex76.01i
iUnwrought aluminium
ιManufacture bythermal or
electrolytic treatment of
unalloyed aluminium and
scrap
ex78.01 Refined lead Manufacture bythermal refi­
ning from bullion lead
r : j
ex83.O6 |
!
iIndoor ornauents made -from
base metals other than sta­
tuettesWorking orprocessing where
non originating products are
used which donot exceed
30%ofthevalue ofthe
finished product

-7-
Products ootar.ned
Customs Tariff
heading No
85.
65.15
ex9^.61Description
Microphones and stands the­
refore ;loudspeakers ;andis
frequency electric amplifiers
Radio telegraphic and radio -*
telephonic transmission and
reception apparatus (inclu­
ding receivers incorporating
sound recorder orreprodu­
cers )andtelevision cameras ;
radio navigational aid appa­
ratus ,radar apparatus and
radio remote control appa­
ratus,Working orprocessing .that
confers the status of
originating products v/hen
the following conditions
are met
Chairs and other seats
(other than those falling
within heading So9^-02 )
whether ornot convertible
into beds made ofbase
metalsWorking ,processing orassem­
bly inwhich thevalue ofthe
non-originating materials anc
parts used does not exceed
^•0%ofthevalue ofthe fi­
nished product andprovided
that atleast 50%ofthema­
terials and parts used are o­
riginating products (1)
Working ,processing orassem­
bly inwhich the value ofthe
nor-originating materials and
parts used does not exceed
^0%ofthevalue ofthe fi­
nished product andprovided
that atleast 50%ofthema­
terials andparts used are
originating products (1)
Working ,processing orassem­
bly inwhich unstuffed cotton
cloth isused ofaweight of
3>OOgm /m2orless inthe form
ready touse ,ofwhich the
value does not Exceed 25%
ofthe value ofthe final
product (2)
ex Other furniture ofbase
metalWorking ,processing orassem­
bly inwhich unstuffed cotton
cloth isused ofaweight of ...
300gr /m2orless intheform
ready touse ,ofwhich the
value does notexceed 25%
ofthe value ofthe final
product (2)
(1).Theapplication ofthis rule must nothave theeffect ofallowing the
exceeding ofthepercentage of3%fornon-originating transistors laid
down inlist Afor the same tariff heading
(2)This rule does notapply vfhen thegeneral rule ofchange oftariff hea­
ding isapplied totheother non-originating parts which arepart ofthe
composition ofthe final product

8–
ANNEXEIV
Productsobtained Workingorprocessingthat
confersthestatusof
originating productswhen
thefollowingconditions
aremetCustomsTanff
headingNo Description
exChapter
39Artificialplasticmaterials,
celluloseethersandesters,
artificial resinsandarticles
madeofthesematerials ,ex­
ceptingfilmsofionemers
(ox39-02)Workingorprocessingin
whichthevalueofthenon-
originating materialsused
doesnotexceed20%ofthe
valueofthefinishedpro­
duct
70.13Glassware (otherthanarti­
cles.fullinginheadingNo
70.19)ofakindconmonly
usedfortable,kitchen,
toiletorofficepurposes,
forindoordecoration crsi­
milarusesCuttingofglaéàobjecta
ofwhichthevaluedoes
notexceed50%ofthevalue
ofthefinishedproductor
decoration ,exceptingseries
printingdoneentirelyby
hand,ofmouthblownglass
objectsofwhichthevalue
doesnotexceed50%ofthe
valueofthefinalproduct
ex8*f-HlSewingmachines,including
furniturespeciallydesi­
gnedforsewingmachinesworking,processing orassem­
blyinwhichthevalueofthe
non-originating materialsanc
partsuseddoesnotexceed
^0%ofthevalueofthefi­
nishedproduct