IOMV1ISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 344 final 
Brussels, 23 September 1991 
Proposal for a 
COUNCIL REGULATION (EEC) 
establishing provisions for the implementation of the Joint Declaration 
annexed to Decision No. 1/89 of the EEC-Malta Association Council 
Draft 
DECISION OF THE ^EC-MALTA ASSOCIATION COUNCIL 
amending Annex 111 of Protocol No. 2 concerning the 
definition of the concept of "originating products" 
and methods of administrative cooperation 
(presented by the Commission) 
Explanatory Memorandum 
1. The rules of origin set out in Protocol 2 to the EEC-Malta 
Association Agreement were amended by Decision No. 1/89 of the EEC-
Mai ta Association Council following the introduction of the 
Harmonized System. This decision was made applicable in the 
Community by Council Regulation (EEC) No. 2229/89 of 18 July 1989 
(1), with effect from 1.1.1990. 
2. Decision No. 1/89 is accompanied by a Joint Declaration concerning 
the review of the changes to the origin rules as a result of the 
introduction of the Harmonized System. The Declaration states that 
the Association Council shall, as a matter of urgency, make an 
examination of the need to restore the substance of any rule of 
origin as it was before Decision No. 1/89, where it appears that an 
alteration results in a situation prejudicial to the interest of the 
sectors concerned. In such cases the Association Council must take a 
decision within a period of three months of the request being made to 
it by either of the parties to the Agreement. 
3. On 26 April 1991 Malta raised a practical problem which it has 
encountered concerning embroidered aprons and overalls falling under 
HS heading No. ex 6211. 
Before the Harmonized System was introduced, women's aprons and 
overalls were classified under CCCN heading No. 61.02, "Women's, 
girls' and infants' outer garments". For embroidered products of 
that heading, the origin rule which applied at that time was 
"Manufacture from fabrics, not embroidered, the value of which does 
not exceed 40% of the value of the finished product" 
In the HS, CCCN heading No. 61.02 was split up into various headings, 
and the "embroidery" origin rule is taken up in the HS transposition 
of the origin rules in relation to headings ex 6202, ex 6204, ex 
6206, ex 6209 and ex 6217. 
However, certain items covered by the definition "women's and girls' 
outerwear" of CCCN heading 61.02 fall, in the HS, under heading No. 
6211; but that HS heading was not included in the list of headings to 
which the "embroidery" origin rule applies. This has the effect of 
making the general rule for ex Chapter 62 applicable to these 
products, which requires manufacture from the yarn stage. 
Consequently, embroidered aprons and overalls which used to acquire 
originating status now do not. 
The problem raised by Malta shows that there are practical cases 
where the result of Decision 1/89 is a situation prejudicial to the 
interest of the sectors concerned. The Committee on Origin is 
therefore unanimously in favour of restoring the substance of the 
rule in question as it was before Decision No. 1/89. 
(1) OJ MO. L 217, 27.7.1989, p. 1 
4. The practical example given above already shows that it is not really 
possible to comply with the three-month period laid down in the Joint 
Declaration. 
The first requirement in such cases is an in-depth discussion by the 
Committee on Origin, based on working documents prepared by the 
Commission departments. The Commission's proposal then has to be 
formally adopted and transmitted to the Council for discussion. The 
Council then has to adopt a common position and the Association 
Council has to adopt the decision (but it is no longer necessary to 
also adopt an implementing regulation). 
As there are already other cases up for review, which have been 
raised either by Member States or by EFTA countries in the context of 
other Agreements but for products which have identical origin rules 
in the EEC-Malta Agreement, it would seem that the decision-making 
process should be speeded up by giving the Commission authority to 
adopt the common position in these cases, which are of a technical 
nature, with no political implications. 
Moreover Council Regulations to this effect (1) have already been 
adopted in the context of the EEC-EFTA Free Trade Agreements, for 
the reasons set out above. 
5. Consequently, the following measures are proposed: 
(i) a Decision of the EEC-Malta Association Council amending 
Annex 111 to Protocol No. 2 of the Agreement; 
(ii) a Council Regulation conferring on the Commission the power 
to adopt the common position on cases submitted under the 
Joint Declaration annexed to Decision 1/89 of the EEC-Malta 
Assoc iat ion Counc iI. 
(1) OJ L 278, 27.9.1989, pp. 1, 5, 9, 13, 17 and 21. 
Proposal for*a *•• 
COUNCIL REGULATION (EEC) No. /91 
of 1991 
establishing provisions for the implementation of the Joint Declaration 
annexed to Decision no. 1/89 of the EEC-Malta Association Council 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 113 thereof, 
Having regard to the proposal from the Commission 
Whereas the Agreement establishing an Association between the European 
Economic Community and MaltaC) was signed on 5 December 1970; 
Whereas the Joint Declaration annexed to Decision No. 1/89 of the EEC-Malta 
Association Council implemented in the Community by Regulation (EEC) No. 
2229/89 of 18 July 1989*2) provides, under certain conditions, for a 
review of the changes made to the rules of origin following the 
introduction of the Harmonized System; whereas, by virtue of that Joint 
Declaration, the Association Council must take a decision within a period 
of three months of a request being made to it by either of the parties to 
the Agreement; 
Whereas this review concerns cases where the transposition of the existing 
rules of origin into the Harmonized System was not entirely neutral and 
where it is necessary to restore the substance of previous rules of origin; 
(1) OJ No. L 61, 14.3.1971, p. 2 
(2) OJ No. L 217, 27.7.1989, p. 2 
~s~ 
Whereas for the purposes of the Decisions to be taken by the Association 
Council, a common position has to be reached by the Community; 
Whereas this decision-making process makes it impossible to comply with the 
three-month time limit laid down in the Joint Declaration; whereas the 
procedure should therefore be speeded up and the Community's common 
position should be adopted by the Commission according to the procédure set 
out in Article 14 of Council Regulation (EEC) No. 802/68 of 27 June 1968 on 
the common concept of the origin of goodsO), as last amended by Council 
Regulation (EEC) No. 456/91<4); 
HAS ADOPTED THIS REGULATION 
Article 1 
The Community's common position for the purposes of the Decisions of the 
EEC-Malta Association Council concerning a review of the changes made to 
the rules of origin following the introduction of the Harmonized System 
pursuant to the Joint Declaration annexed to Decision No. 1/89 of the said 
Association Council shall be adopted in accordance with the procedure laid 
down in Article 14 of Regulation (EEC) No. 802/68. 
Article 2 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
a 11 Member States. 
Done at Brussels, 
For the CounciI 
The President 
(3) OJ No. L 148, 28.6.1968, p. 1 
(4) OJ No. L 54, 28.2.1991, p. 4 
Draft 
DECISION NO. /91 OF THE EEC-MALTA ASSOCIATION COUNCIL 
Of 1991 
amending Annex 111 of Protocol No. 2 concerning the 
definition of the concept of "originating products" 
and methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Agreement creating an Association between the European 
Economic Community and Malta, signed on 5 December 1970, 
Having regard to Protocol No. 2 concerning the definition of the concept of 
"originating products" and methods of administrative cooperation, and in 
particular Article 25 thereof, 
Whereas the Joint Declaration annexed to Decision No. 1/89 of the 
Association Council provides for a review of the changes made to the rules 
of origin following the introduction of the Harmonized System where the 
amendments result in a situation prejudicial to the interest of the sectors 
concerned; whereas it also provides for the substance of the rule of origin 
concerned to be restored as from 1 January 1990; 
Whereas the rule of origin concerning "other garments, women's or girls", 
embroidered, which was established by Decision No. 1/89 of the Association 
Council, should be amended to restore the substance of this rule as it was 
before the introduction of the Harmonized System, 
* 
HAS DECIDED AS FOLLOWS: 
Article 1 
In Annex III to Protocol No. 2 to the Agreement between the European 
Economic Community and Malta the wording of the entry relating to HS 
headings Nos. ex 6202, ex 6204, ex 6206, ex 6209 and ex 6217 is hereby 
replaced by that set out in the Annex to this Decision; 
Article 2 
This Decision shall enter into force on 1 January 1990. 
Done at Brussels, 
For the Association Council 
The President 
ANNEX 8 
HS Heading 
No. 
(1) Description of product 
(2) Working or processing carried out 
on non-originating materials that 
confers originating status 
(3) 
ex 6202 
ex 6204 
ex 6206 
ex 6209 
ex 6211 
and 
ex 6217 Women * s, girls' and 
babies' clothing and 
"other made-up clothing 
accessories", embroi­
dered Manufacture from yarn (1) 
or 
Manufacture from unembroidered 
fabric provided the value of the 
unembroidered fabric used does not 
exceed 40% of the ex works price 
of the product (1) 
(1) See Introductory Note 7 for the treatment of textile trimmings and 
accessories 
9 
ISSN 0254-1475 
COM(91) 344 final 
DOCUMENTS 
EN il 02 
Catalogue number : CB-CO-91-393-EN-C 
ISBN 92-77-75697-7 
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