COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 24.05.1996 
COM(96)227 final 
%/()137(ACC) 
96/0138 (ACC) 
Proposal for a 
on the conclusion of the Agreement in the form of an Exchange of Letters between the 
European Community and the Arab Republic of Egypt modifying the arrangements for 
imports into the Community of rice originating in and coming from Egypt 
(presented by the Commission) 
Proposal for a 
rOTTNÇn. REGULATION (EC) 
concerning rice imports from the Arab Republic of Egypt 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. Article 19 of the current Cooperation Agreement between the Community and the 
Arab Republic of Egypt provides that the Community shall take all necessary measures 
to ensure that the levy on imports into the Community of rice originating in Egypt is 
reduced by an amount equal to 25% of the average level of levies applicable during a 
reference period, within the limits of an annual quantity of 32 000 tonnes. 
The reduction is accorded on condition that Egypt levy a special export charge equal to 
that amount and that the charge be reflected in the import price into the Community. 
2. Under the agreements concluded within the GAIT Uruguay Round, the levies 
applied to the product in question were replaced by customs duties on 1 July 1995. This 
effectively cancels the reduction stipulated in the Cooperation Agreement, and Egypt has 
therefore asked for the arrangements to be amended. 
3. Article 22 of the Cooperation Agreement requires the Community, in the event 
of any modification of the existing rules, to take appropriate account of Egypt's interests 
and accord an advantage comparable to that provided for in the Agreement. 
It is necessary to make provision for the said preferential treatment to continue, taking 
account of the change in circumstances. 
4. Under an arrangement reached with Egypt, customs duties would be reduced by 
25% from May within a quota of 32 000 tonnes and the condition dropped. 
This arrangement, which is aimed at restoring earlier advantages, has been incorporated 
ni the annexed exchange of letters. The conclusion of this agreement also entails the 
replacement of Council Regulation (EEC) No 1250/77 by a regulation reflecting the 
change in circumstances. 
5. The Commission proposes that the Council adopt the Decision concerning the 
conclusion of the exchange of letters negotiated with Egypt and the proposal for a 
Regulation aimed at implementing the measures agreed in that exchange of letters. 
I 
COUNCIL DECISION S^/o ltf(î\e*) 
• of... 1996 
on the conclusion of the Agreement in the form of an Exchange of Letters between the 
European Community and the Arab Republic of Egypt modifying the arrangements for 
imports into the Community of rice originating in and coming from Egypt 
(96/ /EC) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 in conjunction with the first sentence of Article 228(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas Article 19 of the Cooperation Agreement between the European Economic 
Community and the Arab Republic of Egypt1 provides for a reduction in the levy on 
imports into the Community of rice originating in and coming from that country within 
the limits of a maximum quantity of 32 000 tonnes a year and on condition that an export 
levy be collected; whereas the Agreement provides that the Community may modify these 
arrangements, taking account of Egypt's interests, in the event of any change in its rules; 
Whereas the Community, in the Uruguay Round agreement on agriculture, has undertaken 
to replace variable levies with customs duties; whereas this necessitates the modification 
of the Agreement with Egypt; 
Whereas the Community has to that end negotiated with the Arab Republic of Egypt an 
Agreement in the form of an Exchange of Letters modifying the arrangements in 
question; 
Whereas this Agreement should be approved, 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreement in the form of an Exchange of Letters between the European Community 
and the Arab Republic of Egypt modifying the arrangements for imports into the 
Community of rice originating in and coming from Egypt is hereby approved on behalf 
of the Community. 
The text of the A<>reement is annexed to this Decision. 
Article 2 
OJNo L 266. 27.9.1978 pi. 
The President of the Council is hereby authorized to designate the person empowered to 
sign the Agreement in order to bind the Community. 
Article 3 
The provisions implementing the Agreement, including any surveillance measures, shall 
be adopted according to the procedure laid down in Article 27 of Council 
Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the 
market in rice." 
Where the application of the Agreement calls for close cooperation with Egypt, the 
Commission may take all necessary measures to ensure such cooperation. 
Done at Brussels, ... 1996 
For the Council 
The President 
OJ No 1. 166. 25.6.1976. p.l. 
AGREEMENT 
in the form of an Exchange of Letters between the European Community and the Arab 
Republic of Egypt modifying the arrangements for imports into the Community of rice 
originating in and coming from Egypt 
Letter No 1 
^Brussels, 1996 
Sir, 
I have the honour to refer *to the Agreement in the form of an Exchange of Letters 
between the European Community and the Arab Republic of Egypt concerning the 
arrangements for imports into the Community of rice originating in and coming from 
Egypt. 
Under this Agreement the customs duties applicable to imports of rice (CN code 1006) 
originating in and coming from Egypt shall be those calculated in accordance with 
Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the 
value of the said duties. 
The application of the reduction in customs duties accorded shall no longer be subject to 
the collection by Egypt of an export levy on the product. 
This reduction in customs duties shall be applicable from 1 May 1996. 
This Agreement shall be approved by the Contracting Parties in accordance with their 
own procedures. It shall enter into force on 1 May 1996. 
1 should be obliged if you would confirm your agreement with the contents of this letter. 
Please accept, Sir, the assurance of my highest consideration. 
<®n rhêhalftof'the Council of 
lihfi JEurepean tUnion 
Letter No 2 
Cairo, ... 1996 
Sir, I have the honour to acknowledge receipt of your letter of today's date which reads 
as follows: 
"I have the honour to refer to the Agreement in the form of an Exchange of Letters 
between the European Community and the Arab Republic of Egypt concerning the 
arrangements for imports into the Community of rice originating in and coming from 
Egypt. 
Under this Agreement the customs duties applicable to imports of rice (CN code 1006) 
originating in and coming from Egypt shall be those calculated in accordance with 
Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the 
value of the said duties. 
The application of the reduction in customs duties accorded shall no longer be subject to 
the collection by Egypt of an export levy on the product. 
This reduction in customs duties shall be applicable from 1 May 1996. 
This Agreement shall be approved by the Contracting Parties in accordance with their 
own procedures. It shall enter into force on 1 May 1996. 
1 should be obliged if you would confirm your agreement with the contents of this letter. 
Please accept, Sir, the assurance of my highest consideration." 
I have the honour to confirm the agreement of the Government of the Arab Republic of 
Egypt. 
Please accept, Sir, the assurance of my highest consideration. 
On behalf of the Arab 
Republic of Egypt 
£ 
COUNCIL REGULATION (EC) NO ... %/o /i8 (V 0 
of... 
concerning rice imports from the Arab Republic of Egypt 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas the Contracting Parties have agreed, in an exchange of letters, that the customs 
duties to be applied to imports of rice (CN code 1006) originating in and coming from 
Egypt are to be those calculated in accordance with Article 12 of Council Regulation 
(EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice1 
reduced by an amount equal to 25% of the value of those duties, and that the reduction 
accorded is no longer to be subject to the collection by Egypt of an export levy on the 
product; 
Whereas Regulation (EEC) No 1250/77 concerning imports of rice from the Arab 
Republic of Egypt should be repealed accordingly/ 
HAS ADOPTED THIS REGULATION: 
Article 1 
The customs duties on imports of rice (CN code 1006) originating in and coming from 
Egypt shall be those calculated in accordance with Article 12 of Council Regulation 
(EEC) No 1418/76 reduced by an amount equal to 25%» of the value of those duties, 
within the limits of an annual volume of 32 000 tonnes. 
Article 2 
The arrangements for the implementation of this Regulation, including any surveillance 
measures, shall be adopted in accordance with the procedure laid down in Article 27 of 
Regulation (EEC) No 1418/76. 
Article 3 
Regulation (EEC) No 1250/77 is hereby repealed. 
1 OJ No L 166, 25.6.1976, p. 1. 
2 OJ No L 146, 14.6.1977, p.9. 
> 
Article 4 
This Regulation shall enter into force on the third day following its publication in the 
Official .Journal of the European Communities. 
It shall apply from 1 May 1996. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, ... 1996 
For the Council 
BUDGET HEADING: 1000 DATE:, 
APPROPRIATIONS: ECU 864 million 
TITLE: 
Council Decision on the conclusion of the Agreement in the form of an Exchange of Letters between the European 
Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice 
originating in and coming from Egypt 
3. LEGAL BASIS: Article 113 
AIMS OF PROJECT: 
Updating, in Ihc light ol'the Uruguay Round agreements, the Agreement between the Community and Egypt in respect 
of the import into the Community of 32 000 tonnes of rice. 
FINANCIAL IMPLICATIONS PERIOD OF 12 
MONTHS 
million ecu CURRENT 
FINANCIAL 
YEAR 
(96) 
million ecu FOLLOWING 
FINANCIAL 
YEAR 
(97) 
million ecu 
5.0. 
5.1. EXPENDITURE 
CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
NATIONAL ADMINISTRATION 
OTHER 
REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 7.2 2.4 4.8 
1998 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE 1999 2000 2001 
5.2. METHOD OF CALCULATION: 
32 000 tonnes x (351 x 1.8 - 300) ECU/t x 75% x 90% = ECU 7.2 million 
ECU 351/t = intervention price 
ECU 300/t = world market price 
<>.(). CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? YES/NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? ¥ES/N« 
IS A SUPPLEMENTARY BUDGET NECESSARY? V-4-S/NO 
WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? Y-I^Z-Nt > 
i OBSERVATIONS: This proposal extends the Agreement between the Community and Egypt. 
I As well as bringing the Agreement into line with the GATT agreements, this decision maintains the 
! preferential treatment currently enjoyed by Egypt. 
The 25% reduction represents a loss of own resources of ECU 2.4 million. 
3 

ISSN 0254-1475 
COM(96) 227 final 
DOCUMENTS 
EN 03 il 
Catalogue number : CB-CO-96-238-EN-C 
ISBN 92-78^04440-7 
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>