COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a European Parliament and Council Regulation (EC) amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code

1. BACKGROUND

Proposal (COM (1998) 226 final - 1998/0134 (COD) sent to the European Parliament and Council on: // 8 June 1998 [1]

[1] OJ C 228, 21.7.1998, p. 8

European Parliament adopted opinion on first reading on: // 12 March 1999 [2]

[2] OJ C 175, 21.6.1999, p. 420

Amended proposal (COM (1999) 236 final) forwarded to Council on: // 2 June 1999

Common position adopted (unanimously): // 25 May 2000

Opinion adopted by ESC on: // 27/28 January 1999 [3]

[3] OJ C 101, 12.4.1999, p. 6

2. PURPOSE OF THE COMMISSION'S PROPOSAL

The proposal seeks to encourage simplification of formalities (declarations lodged by means of a data-processing technique), more flexible rules, a more efficient procedure for recovery of duties and, under the amended proposal, a better base on which to apply the principle of "good faith" to preferential imports.

3. COMMENTS ON THE COMMON POSITION

3.1 General comments

The Commission notes that a number of Parliament's amendments on first reading removed proposals dealing with the Commission's implementing powers under the committee procedure.These amendments related to the question of committee procedure which had not been resolved at the time of first reading. The Commission hopes that in view of the adoption of the new Comitology decision of 29 June 1999 Parliament will be able to accept the Commission's proposals which have been retained in the Council's common position.

3.2 Amendments proposed by the European Parliament on first reading

a) Amendments incorporated into the amended proposal and the common position

- Parliament amendment 2 (Article 62);

- Parliament amendments 3 and 14 (Article 77): the amended proposal which presented certain aspects of Parliament's amendments in more succinct form was not incorporated as such into the common position. The common position, which talks in general about declarations lodged by means of a data-processing technique without allowing any differentiation in implementing arrangements, follows Parliament's line. Since Parliament and the Council both take the same position, the Commission does not intend to press for the differentiated approach which formed the basis for its own proposal;

- Parliament amendment 6 (Article 118 (4)).

b) Parliament amendments incorporated into the amended proposal which are included in the common position in an amended form

- Parliament amendment 4 (Article 115): the delegation of powers is defined in more detail;

- Parliament amendment 13 (Article 220(2)(b)): although the wording of the amendment has been incorporated, the common position clarifies and expands the conditions under which the principle of "good faith" can be applied under preferential tariff arrangements. It provides a fair balance between the protection of economic operators' economic interests in good faith and protection of the Community's financial interests and is therefore acceptable to the Commission.

c) Amendments not accepted by the Commission but taken into account by the common position

- Parliament amendments 1 (Article 5(2), second subparagaph) and 10 (Article 221 (3), first sentence): since both the Council and Parliament have rejected the Commission's proposals, the Commission will not maintain its position under the legislative procedure;

- Parliament amendment 8 (Article 152): the Commission will not press for its proposal to be accepted as the common position deals with the question of substance satisfactorily under Article 153.

d) Amendments endorsed by neither the Commission nor the Council

- Parliament amendment 5 (Article 117(c)) and 7 (Article 133 (e)): since the problems concerning committee procedure have now been resolved, the Commission hopes that Parliament will be able to review its position. The proposed provisions are required to complete the reform of customs procedures with economic impact whose objectives include the abolition of bureaucratic formalities;

- Parliament amendment 10 (Article 221(3), second sentence): the suspension of the statutory period during the appeal procedure is designed to protect the Community's financial interests;

- Parliament amendment 11 (final Article): this provision is no longer required.

- Parliament amendment 15 (Article 13): the wording adds nothing to what is already stated in Article 10 of the EC Treaty.

3.3 New provisions introduced by the Council

The common position incorporates the transposal in the Community Customs Code of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. [4] Although this was not the purpose of the Commission's proposal, this seems an appropriate step being the most direct way of applying the new principles of committee procedure under which Parliament has the "right of scrutiny" in the legislative procedure.

[4] OJ L 184, 17.7.1999, p. 23

3.4 Proposals not included in the common position which had not been amended by Parliament on first reading

a) Points 3 and 13 (Articles 49 and 144) of the Commission proposal:

During discussions within the Council these two points were deleted in an attempt to reach on overall compromise between delegations. As they are of minor economic importance, the Commission does not consider it is worth delaying the final phase of the legislative procedure. It will therefore not insist on retaining these two points.

b) Points 20 and 21 (Articles 215(6) and 220(1)) of the Commission proposal:

- Article 215(6): this is of interest to economic operators who wish to benefit from the single market. They would like to be able to pay import duties at the place in the Community where their companies have their headquarters and goods to be released for free circulation in this or another Member State. The current provisions on simplified procedures (simplified declaration) do not meet this requirement.

The Commission considers that Parliament should support the Commission's proposal which seems to have been rejected by some delegations in the Council for reasons which are not clear.

- Article 220(1): this proposal is designed to protect the Community's financial interests where investigations into the existence of customs debt are not yet completed as the statutory period draws to an end. The Commission's proposal is to give customs authorities the power to set the debt on a provisional basis where there is reasonable doubt about an operation's conformity with the rules.

The Commission hopes that Parliament will support its proposal on the second reading.

4. GENERAL CONCLUSIONS

The Commission agrees with the Council's common position except on the two points discussed under 3.4(b) on which it maintains its initial/amended proposal.

ANNEX Declaration by the Commission for the minutes of the meeting of the Internal Market Council on 16 March 2000.

Subject: Community Customs Code

The Commission is pleased that the Council has unanimously adopted a political agreement with a view to a common position on its proposal for an amendment of Regulation (EEC) No 2913/92 establishing the Community Customs Code.

The Commission can agree most of the amendments made to its proposal by the Council, in particular that concerning Article 220(2)(b) as drawn up by Coreper on 3 March 2000. This constitutes a fair balance between the protection of the interests of operators in good faith and the protection of the financial interests of the Community.

Two points in the Commission's proposal which the Council has not taken up were supported by the European Parliament in its first reading opinion. These concern Article 215(6)(centralised simplified procedure) and Article 220(1) ("precautionary measures"). The Commission remains of the opinion that on these two points its own proposal, supported by the Parliament, is still completely justified.