Draft DECISION OF THE EEA JOINT COMMITTEE amending Protocol 3 to the EEA Agreement, concerning products referred to in Article 8(3)(b) of the Agreement - Draft common position of the Community -

(presented by the Commission)

EXPLANATORY MEMORANDUM

Protocol 3 to the EEAA agreement was amended by Decision 140/2001 of the EEA Joint Committee. At the time of the adoption of the Decision, the EC and Norway stated in a joint declaration that: "the non agricultural component of custom duties on products in Table I of Protocol 3 must be eliminated. To this end, they agree that talks should begin as soon as possible and should be concluded within one year from the entry into force of Decision 140/2001 with a view to implementing the corresponding Joint Committee Decision on 1 July 2004 at the latest. They recognise that any derogation would be entirely exceptional, narrowly defined, confined to a very limited number of products, temporary and subject to regular review".

On this basis, discussions between Commission and Norwegian officials started in 2002 and were concluded on 11th March 2004. These resulted in tariff reductions or abolition on a number of goods, leading to improvement of market access on a reciprocal basis for Norway and the EC.

Under the terms of Article 98 of the EEAA, Protocol 3 can be amended by decision of the EEA Joint Committee.

The attached proposal in the form of a draft Common position of the Community for adoption as a Decision of the Joint Committee aims to amend annexes I and III to Protocol 3 (Community and Norwegian import regime) to take into account the results of these negotiations.

In order to allow the industry, in particular in Norway, to adapt to the new conditions, the amendments are to apply from 1 July 2004.

The Council is herewith invited to approve the attached draft Community position for adoption as an EEA Joint Committee Decision.

Draft DECISION OF THE EEA JOINT COMMITTEE amending Protocol 3 to the EEA Agreement, concerning products referred to in Article 8(3)(b) of the Agreement

THE EEA JOINT COMMITTEE,

Having regard to the Agreement on the European Economic Area, as amended by the Protocol adjusting the Agreement on the European Economic Area, hereinafter referred to as 'the Agreement', and in particular Article 98 thereof,

Whereas:

(1) Protocol 3 to the Agreement, as amended by Decision No 140/2001 of the EEA Joint Committee [1], determines the trade arrangements for certain agricultural and processed agricultural products between the Contracting Parties.

[1] OJ L 22, 24.1.2002, p. 34

(2) At the time of the adoption of Decision No 140/2001, the EC and Norway stated in a joint declaration that the non-agricultural component of customs duties on products in Table I of Protocol 3 must be eliminated. On this basis, discussions between Commission and Norwegian officials were concluded on 11 March 2004.

(3) Technical amendments have been made in the tariff nomenclatures since the adoption of Decision No 140/2001.

(4) Article 2 (2) of Protocol 3 to the Agreement stipulates that the customs duties set out in the Annexes to Table I of Protocol 3 to the Agreement can be adapted by the EEA Joint Committee taking account of mutual concessions.

(5) Following the conclusion of discussions on 11 March 2004 and the technical amendments made in the tariff nomenclatures, Annexes I and III to Table I of Protocol 3 to the Agreement should be amended,

HAS DECIDED AS FOLLOWS:

Article 1

Protocol 3 to the Agreement shall be amended as follows:

1. In Annex I to Table I, paragraphs 4 to 6 and 8 shall be replaced by paragraphs 4 to 6 and 8 of Annex I to this Decision.

2. In the Appendix to Annex I to Table I, the entry '1904 90 90' shall be replaced by '1904 90 80'.

3. In Annex III to Table I, paragraphs 2, 7 and 9 to 19 shall be replaced by paragraphs 2, 7 and 9 to 11 of Annex II to this Decision.

4. In paragraph 6 of Annex III to Table I, the entry 'cereals (other than maize (corn)) in grain form or in the form of flakes or other worked grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere specified or included' shall be replaced by 'cereals (other than maize (corn)) in grain form or in the form of flakes or other worked grains (except flour, groats and meal), pre-cooked, or otherwise prepared, not elsewhere specified or included'.

5. In the Appendix to Annex III to Table I, the entry '1905.3002' shall be replaced by '1905.3200'.

Article 2

This Decision shall enter into force on ..., provided that all the notifications under Article 103(1) of the Agreement have been made to the EEA Joint Committee [2].

[2] [No constitutional requirements indicated.] [Constitutional requirements indicated.]

It shall apply from 1 July 2004.

Article 3

This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union.

Done at Brussels,

For the EEA Joint Committee

The President

The Secretaries

to the EEA Joint Committee

ANNEX I

to Decision of the EEA Joint Committee No [...]

The following paragraphs shall replace paragraphs 4 to 6 and 8 in Annex I to Table I of Protocol 3:

'4. The customs duties for the products listed in the table below are as specified.

>TABLE POSITION>

1 [The zero rate is temporarily suspended. For Iceland, the preferential arrangement provided for by Protocol N°2 to the bilateral Free Trade Agreement between the European Community and the Republic of Iceland shall apply (zero duty rate). For Norway, Protocol 2 to the to the bilateral Free Trade Agreement between the European Community and the Kingdom of Norway will be adapted to include a duty free quota on imports of these goods originating in Norway into the Community.]

5. The ad valorem part of the customs duties for the following products is 0%:

>TABLE POSITION>

6. The ad valorem part of the customs duties for the following products is 5,8%:

2905 44 // 3824 60

8. Tariff codes set out in this Annex refer to those applicable in the Community on 1 January 2004. The terms of this Annex will not be affected by any changes that may be made in the tariff nomenclature.'

ANNEX II

to Decision of the EEA Joint Committee No [...]

The following paragraphs shall replace paragraphs 2, 7 and 9 to 19 in Annex III to Table I of Protocol 3:

'2. Tariff codes set out in this Annex refer to those applicable in Norway on 1 January 2004. The terms of this Annex will not be affected by any changes that may be made in the tariff nomenclature.

7. The customs duties for the products listed in the table below are as specified.

>TABLE POSITION>

9. The customs duty for products classified within Norwegian codes 1901.2097 and 1901.2098 (other mixes for the preparation of bakers' wares of heading 1905) and declared as free from gluten for sufferers of coeliac diseases will be 0,37 NOK/kg.

10. The customs duty for products classified within Norwegian code ex 2008.9903 (maize (corn), other than sweet corn (Zea mays var. Saccharata), not for feed purpose) will be calculated subject to the matrix system. The maximum customs duty shall, however, not exceed 12 NOK/kg.

11. The customs duty for products classified within Norwegian code 2106.9060 (emulsified fats and similar products containing more than 15% by weight of edible milk-fats) will be calculated subject to the matrix system. The maximum customs duty shall, however, not exceed 7 NOK/kg.'

>TABLE POSITION>