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COM(73)1277
Vol.1973/0241

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1277 final
Brussels ,26July1973
PROPOSAL FORA
REGULATION (EEC)OPTHECOUNCIL
amendingCouncilRegulation (EEC)No1496/68
of27September 1968
onthedefinition ofthecustomsterritory
oftheCommunity
(submittedtotheCouncilbytheCommission )
COK(73)1277final

Explanatory memorandum
INTRODUCTION
1,Article46oftheTreatyofAccession providedthat,forsolongascustoms
dutiescontinued tobeleviedintradewithintheenlarged Community ,the
"customsterritory "forthepurposes ofestablishing thecustomsvalueshall
continue tobeasdefinedinthelawoftheCommunity andthenewMember
Statesimmediately beforeenlargement .TheTreatydidnot,however,deal
expressly withthequestion of"customsterritory "forthepurposes ofvaluing
ιimportations fromthirdcountries .Subsequently ,itwasrecognised thatthe
legalprovisions ,asenacted,wouldhaveresulted indiscrimination against
intra^-Community tradeascompared withtradebetweentheCommunity andthird
countries.Regulation (EEC)No.2744/72»dated19December 1972,wasthere­
foredraftedtoremedythissituation byapplyingthesameprovisions as
regardscustomsterritory tothirdcountryimportations ashadbeenapplied
'bytheTreatyofAccession tointra–Community trade.However,inviewof
theplanned40/=reduction inCustomsdutiesby1January1974»(withthe
consequent lessening inabsolutetermsoftheeffectsofthediscrimination ),
andofthepossibility thattheCommonCustomsTariffwouldbeappliedin
fullforalargenumberofproducts ,itwasdecidedtolimittheoperation
ofRegulation (EEC)NO.2744/72to12months. •
2.Inadopting theRegulation ,theCounciltooknoteofarequestfromthe
Frenchdelegation thattheCommission shouldreporttotheCouncilinthe
lastquarterof1973onthepossibility ofextending themeasures beyond
31December ,1973•Thepurposeofthisnoteistoreportonthismatter
andtoproposeanextensionoftheprovisions ofRegulation (EEC)No.2744/72
until30June,1977.
CU3T0MS VALUE
3.Thevalueforcustomspurposesofimported goodsinwhatis-knowna.s'the
"normalprice".This-priceisestablished .byreference toiaUnumberofrules
whichdetermine whatelementsshallbeincluded inorexcluded fromthe
Customsvalue.Oneoftheelementsnormallyincludedinthecustomsvalue
isthe"transports .costs-",i^e.costs,chargesandexpensesincidental tothe
'transportation ofthegoodsfromsellertobuyer.Indetermining the

transport costs ,andcertain other elements ofcustoms value euch asquantity
tobetaken into account andthevalue oftheright touseatrade mark ,the
concept of"customs territory "hasdecisive importance .Insofarastransport
costsare concerned ,this isbecause thevalue forduty normally includes the
transport costs ofthegoods from theseller 'spremises totheplace oftheir
introduction into aparticular customs territory .
CUSTOMS TERRITORY
4»Council Regulation (EEC)No^I496/68of27September ,1968asadopted bythe
Treaty ofAccession (Annex i)defines the'customs territory oftheCommunity
forgeneral purposes .Aspreviously indicated however ,Article 46ofthe
Treaty ofAccession provided that until customs duties within theenlarged
Community tvere finally abolished ,theterritories oftheCommunity ofthe
Six ,-ofDenmark ,ofIreland andoftheUnited Kingdom should remain separate
customs territories forthepurposes ofestablishing customs value inintra -
Community traded
r
REGULATION (EEC)No.2744/72
5.AstheTreaty ofAccession wassilent onthequestion ofimports from third
countries inthis context ,thepractical effect ofArticle 46would have
been asfollows :
(a)Intra –Community trade
Transport .costs from theseller ,spremises totheplace ofintroduction
ofthegoods into thecustoms territory oftheoriginal Community ,or
ofDenmark ,ofIreland oroftheUnited Kingdom ,according totheir
destination ,would have been included .
(b)Imports from third countries
Transport costs from theseller 'spremises totheplace .ofintroduction
ofthegoods into thecustoms territory oftheenlarged Community only
would have been included . 1

-3-
6.Thepotential discrimination againstintra-Community tradeinherent insuch
asituation canbeseenfromthofollowing simpleexample :
(a)Exportation fromItalytoIrelandviaPrance-valuefordutyincludes
transport costsallthewaytoIreland.
(b)Exportation fromYugoslavia toIrelandviaItalyandFrance-valuefor
dutyincludes transport costsonlyasfarasItalianborder.
7.Suchdiscrimation wouldclearlyhavebeeninconflict withtheobjective
ofArticle 33oftheTreatyofAccession asregardsthemaintenance ofCom­
munitypreference .Regulation (EEC)No.2744/72was,therefore ,enactedto
placeimportations fromthirdcountries onthesamefootingasintra-community
trade.Asindicated ,theRegulation providesfortheperiodupto31December ,
1973andthepossibility ofextension wastobereported on.
8.TheCustomsValuation Committee isoftheunanimous opinionthat,inthe
circumstances ,itisnecessary toretaintheprovisions oflastDecember's
Regulation (EEC)No.2744/72inforceuntil30June,1977•
CONCLUSION
9.TheCommission proposesthattheCouncilshouldadoptaregulation asper
theattacheddraft.Sucharegulation wouldhavetheeffectofmaintaining
inforceuntil30June,1977 "thearrangements madeinRegulation (ESC)
No.2744/72.
\

Proposal fora
REGULATION (ESC)OPTHECOI3NCIL
amendingCouncilRegulation (EEC)NO^I496/68
of27September ,1968
onthedefinition ofthecustomsterritory oftheCommunity -
TESCOUNCIL0?TZSEUROPEEN COEKUXITIES ,
IfevmgregardtotheTreatyestablishing theEuropean Economic Community ,and
inparticular toArticle235thereof,
Jfevingregardtotheproposal fromtheCommission ,
IfevingregardtotheopinionoftheEuropean Parliament ,
IfevingregardtotheopinionoftheEconomic andSocialCommittee ,
Whereas,inregardtothedetermination ofthecustomsvalueofgoodsimported
fromthirdcountries ,theCounciladopted,fortheyear19731Regulation (EEC)
No.2744/72of19December,1972(l)amendingCouncilRegulation (EEC)NO,1496/68
of27September ,1958(2)whichdefinedthecustomsterritory oftheCommunity ;
WhereasthatRegulation providedthat,inregardtosuchdetermination ,the
customsterritory asdefinedbytheprovisions existing intheCommunity andin
thenewMemberStateson31December ,1972,shouldcontinuetobetakeninto
consideration;
Whereasthereasonsunderlying thatRegulation ,notablythoserelatedtotrans­
portcostsandtrademarks,willcontinuetobevalidforaslongascustoms
dutiescontinue tobeleviedinintrcv-Community trade,i.e.uptothe30June,
1977»eventhough,thediscrimination against Community goodswill,inreal
terms,diminishproportionally withtheapplication ofthereductions induty
inintra–Community tradeprovidedforintheAccession Treaty;
VJhereas,contrarytowhatwasimpliedintheconsiderata onwhichRegulation
(EEC)NO.2744/72wasbased,furtherexamination hasshownthatthenumberof
headingsinthetariffsofthenewMemberStateswhichwillcarrythesamerates
ofdutyastheCommonsCustomsTariffasfrom1January,1974willbecomparti–
velysmall,
(1)J.O.No.L291,28.12.1972 ,p.145.
(2)J.O?No.L238,28.9.1968,p.1.

HAS ADOPTED TEE PRESENT REGULATION :
Article 1
Article 5ofRegulation (EEC)NO,1496/68asinserted byRegulation
(EEC)NO.2744/72ishereby amended bythesubstitution of"30June ,1977"FOR
"31December ,1973 "»
Article 2
This Regulation shall enten into force onthedayfollowing its
publication intheOfficial Journal oftheEuropean Communities .
"This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .
Done atBrussels ,
For the Council