No C 270/12 Official  Journal  of the  European  Communities 26.11.  75 
Voting: 
For: 27, against:  43, abstentions:  11. 
Item  4.12.2 
Insert  the following  after  paragraph  4.12.2: 
'4.12.3.  Agriculture  can  only  thrive  if agricultural  producers  have  adequate  incomes. 
The large-farm  policy  has  proved  essential  for the profitability  of certain  crops  produced 
on a large  scale,  but it must  leave  room  for farms  which  may  be smaller  but are doubtless 
more  specialized. 
4.12.4.  Steps  should  therefore  be taken  to promote  the  development  of cooperatives 
and the restructuring  of certain  excessively  fragmented  holdings.' 
Voting: 
For: 34, against:  43, abstentions:  8. 
Item  4.13.2 
After  4.13.2  add  a new  paragraph  4.14  as follows: 
'Social  policy  embraces  all  aspects  of the  life  of the  people  of Europe.  Applied 
continuously  and  progressively,  it is the ultimate  end  of economic  policy  in all its forms, 
and must  be pursued  using  all organized  economic  and  social  forces  and  with  the support 
of all the Community  institutions.' 
Reason 
The absence  of any  explicit  reference  to social  policy  in this  chapter  of the Opinion  would  be 
a grave  omission  which  might  prejudice  one  of the  most  important  and  constant  concerns 
of the Economic  and  Social  Committee. 
Voting: 
For: 26, against:  26, abstentions:  24. 
Opinion  on the  Simplification  Programme 
The text  referred  to the  Committee  has  not  been  published  in the  Official  Journal  of 
the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 21  March  1975,  the  Council  referred  the  abovementioned  programme  to the 
Economic  and  Social  Committee  under  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 132nd  plenary  session, 
held  in Brussels  on 16 and  17 July  1975. 
The Opinion  is published  below: 
26.11.  75 Official  Journal  of the  European  Communities No C 270/13 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  made  by the Council  of 
the European  Communitites  on 21 March  1975  for 
an Opinion  on the Simplification  Programme; 
Having  regard  to  Article  198  of  the  Treaty 
establishing  the European  Economic  Community; 
Having  regard  to the decision  taken  by its Bureau  at 
its meeting  on 18 March  1975,  instructing  the Section 
for Industry,  Commerce,  Crafts  and  Services  to draw 
up an Opinion  and  a report  on the matter; 
Having  regard  to the Opinion  adopted  by the Section 
for Industry,  Commerce,  Crafts  and  Services  on 2 
July 1975; 
Having  regard  to the discussions  at its meeting  on 17 
July 1975  (132nd  Plenary  Session  of 16 and  17 July 
1975), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote 
The Committee  welcomes  the programme  to simplify 
customs  procedures  submitted  by the  Commission, 
subject  to the following  comments: 
1. GENERAL  COMMENTS 
1.1. The  Committee  notes  that  it has  become  an 
urgent  necessity  to halt  the increasing  complication  of 
Community  customs  rules,  and  simplify  existing 
procedures,  for  the  sake  of both  the  customs 
authorities,  who  have  already  made  it quite  clear  that 
it is impossible  for  them  to apply  accurately  rules 
which  are  too  detailed  and  change  too  frequently, 
and the  user,  who  has  to comply  with  formalities 
which  are  burdensome  and  often  quite  out  of 
proportion  to their  objective. 
1.2. In  view  of this,  the  Committee  emphasizes 
that the  proposed  simplification  arrangements  — 
which  could  have  been  even  greater  in number  — 
must  be designed  to make  things  easier  for both  the 
authorities  and  the economic  sectors  concerned.  The 
most  significant  degree  of simplification  is obtained 
when  administrative  procedures  and  commercial 
practices  are harmonized  in such  a way  that  the user 
can comply  with  the  formalities  required  easily  by 
using  documents  and  providing  information  which 
are available  within  his own  firm. 
1.3. At  the  same  time,  the Committee  trusts  that 
efforts  will  be made  to simplify  the formalities  which still have  to be complied  with  by individuals  when 
they cross  frontiers  within  the  Community.  It is 
desirable  that  travellers  should  be able  to benefit 
from  the  same  advantages  as those  granted  to 
commercial  transactions  and  that  they  should  not  be 
deterred  by having  to carry  out difficult  formalities. 
1.4. However,  the  Committee  is astonished  that 
the considerable  efforts  which  have  already  been 
made  to facilitate  Community  trade  and  bring  about 
the customs  union  have  so often  remained  a dead 
letter.  In particular,  it deplores  the fact  that  a number 
of proposals  which  have  been  before  the Council  for 
some  years  have  not  yet  been  the  subject  of any 
decision  nor have  even  been  discussed. 
1.5. In  these  circumstances,  it fears  that  the 
simplification  programme,  which  it broadly  approves, 
will also  remain  nothing  more  than  a set of good 
intentions.  While  recognizing  the  need  to find 
adequate  technical  solutions  to the problems,  some  of 
which  are  delicate,  it emphasizes  that  significant 
results  can  only  be achieved  by a political  will  to 
push  ahead  with  the customs  union  and  make  things 
easier  for  economic  operators.  It trusts,  therefore, 
that Community  customs  legislation  will  be sup-
plemented  by rules  which  will  enable  disputes  between 
the customs  authorities  and  parties  liable  to duty  to 
be resolved.  The  existence  of such  Community 
legislation  is necessary  to several  of the simplification 
measures  proposed,  particularly  the  abolition  of 
transit  advance  notes  (item  6.3). 
1.6. The  Committee  further  considers  that  the 
proposed  codification  of Community  legislation 
cannot  be fully  effective  unless,  in addition  to merely 
bringing  together  existing  texts,  it is inspired  by clear 
and precise  principles,  which  should  constitute  the 
doctrinal  basis  of Community  law.  "While  recognizing 
that the  customs  union  is incomplete  and  still 
evolving,  the  Committee  observes  that  these 
principles  could  already  be worked  out  on the basis 
of current  legislation  as a whole  and  lead  to logical 
and efficient  codification. 
2. SPECIFIC  COMMENTS 
2.1. Annex  A 
2.1,1.  Tariff  questions 
2.1.1.1.  The  Committee  approves  the  desire  to 
simplify  tariff  nomenclature. 
2.1.1.2.  It  would  be a good  idea  if ECSC  goods 
and the  tariffs  applicable  to imports  from  Greece, 
Algeria,  etc.,  were  also  now  to be incorporated  in a 
common  customs  tariff,  so that  the  Community 
would  be  assigned  the  prerogatives  in customs 
matters  which  the Member  States  still  have. 
No C 270/14 Official  Journal  of the  European  Communities 26. 11.75 
2.1.1.3.  The  Committee  wonders,  however, 
whether  'integrated  tariffs'  which  also  cover  tariff 
preferences  and  statistical  subdivisions  will  not,  in 
fact,  as far  as the  user  is concerned,  lead  to an 
excessively  detailed  nomenclature. 
2.1.1.4.  The  Commission's  work  — as regards 
both  timing  and  content  — should  be coordinated 
with  the  parallel  activities  of  the  Customs 
Cooperation  Council  (CCC)  in Brussels,  which  is 
dealing  with  the  'harmonized  system'.  It would 
hardly  be rational  for the two  institutions  to arrive  at 
divergent  results. 
2.1.1.5.  For  this  reason,  the  Committee  proposes 
to the Commission  that: 
— it arrange  for  the  production  of an integrated, 
long-term  plan  for the Common  Customs  Tariff 
and external  trade  statistics, 
— it contact  the  Brussels  CCC  to ensure  that  the 
latter  carries  out  an initial  examination  of this 
plan in order  to prevent  the preliminary  work  of 
the CCC  from  creating  irreversible  de facto 
situations  before  the  results  of  the 
abovementioned  survey  are known, 
— it put forward  the common  view  of the Member 
States  of the  European  Community  during  the 
preliminary  work  of the CCC  in order  to ensure 
that,  even  in the event  of a 'harmonized  system', 
the needs  of the  Community  economy  are  taken 
into consideration  in the best  way  possible. 
2.1.2.  Agriculture 
2.1.2.1.  The  work  planned  by the Commission  in 
the agricultural  sector  proves  that  the  Commission 
itself  does  not  foresee  the  possibility  of  the 
complicated  provisions  and  measures  in this  field 
being  simplified  significantly.  It is obvious  that  here 
the Commission  has no other  plans  than  to carry  out 
adjustments  which  were  going  to have  to be made  in 
any case. 
2.1.2.2.  However,  it would  be advisable  for a start 
to be made  without  delay  on drawing  up rules  of a 
purely  practical  nature  which  grouped  together  in 
one document  the customs  provisions  which  could  be 
applied  to any  one  operation. 
2.1.3.  Computerization 
2.1.3.1.  The  Committee  shares  the  Commission's 
concern  to maintain  a certain  consistency  and 
possibility  of communication  between  the  computer 
systems  which  have  been  or are  being  developed  in 
the Member  States  for  the  customs  or statistical processing  of trade  transactions.  It therefore  approves 
of the  studies  proposed,  while  noting  that  their 
findings  must  be applied  in a flexible  and  pragmatic 
manner.  In particular,  the Committee  believes  that  it 
is more  important  to link  up Member  States'  systems 
to each  other  than  to set up a data-processing  system 
for managing  the customs  union  at Community  level; 
such  a system  would  of necessity  be extremely 
cumbersome. 
2.1.3.2.  However,  direct  transmission  of informa-
tion regarding  rules,  particularly  with  respect  to 
agriculture,  in a streamlined  centralized  system, 
would  offer  many  advantages. 
2.1.3.3.  Finally,  the  widespread  use  of computers 
in this  context  must  not  be allowed  to involve 
considerable  expense  for  small  and  medium-sized 
firms. 
2.1.4.  Customs  value 
2.1.4.1.  An  entirely  new  direction  must  be given  to 
the Commission's  present  and  future  activities  in this 
field.  It is doubtful  whether  the  present  significance 
of customs  values  still  justifies  all the apparatus  made 
necessary  by current  legislation,  which  is becoming 
more  and  more  extensive  and  differentiated.  The 
importance  of  customs  duties  as  a factor  in 
calculations  is in any  case  limited  by the  GATT 
negotiations,  unilateral  tariff  reductions,  association 
agreements,  preferential  trade  agreements  and 
generalized  preferences  in favour  of the  developing 
countries.  The  legal  and  administrative  provisions 
concerning  the  customs  value  of goods  should 
therefore  be thoroughly  streamlined  and  simplified. 
2.1.5.  Origin 
2.1.5.1.  The  Commission's  efforts  to harmonize 
and simplify  rules  of origin  and  standardize  forms 
and procedures  are  welcomed,  especially  since 
present  differences  lead  to considerable  difficulties  in 
practice. 
2.1.5.2.  Extending  the  use  of form  EUR  2 to cover 
postal  consignments 
2.1.5.2.1.  The  EUR  2 form  should  not  be used 
solely  in the  framework  of preferential  agreements 
which  have  been  or which  are  to be concluded.  Its 
use should  be extended  very  soon  to cover  all types 
of consignments  with  the maximum  value  being  raised 
from  1 000 to  2 000 units  of  account  per 
consignment. 
26. 11.75 Official  Journal  of the  European  Communities No C 270/15 
2.1.6.  Community  transit 
2.1.6.1.  Possibility  of  abolishing  internal  transit 
documentation  after  the  end  of  the 
transitional  period. 
2.1.6.1.1.  Such  a proposal  is tempting  in principle, 
but it gives  rise  to many  problems.  The  complexity  of 
marketing  channels,  in particular,  is such  that  the 
'free  circulation'  status  of goods  cannot  always  be 
deduced  simply  from  the  absence  of supporting 
documentation  (system  of  'negative  proof'). 
Moreover,  the Community  transit  form  is often  used, 
for the purposes  of national  procedures,  both  at the 
departure  and  the arrival  point,  as a simplified  form 
for exports  or imports.  If it were  abolished,  the user 
would  be obliged  to fill in national  documents  in its 
place.  Furthermore,  there  is reason  to fear  that 
customs  authorities  would  look  for the information 
which  is at present  supplied  by the transit  declaration 
in the  various  commercial  documents  which  they 
would  require  to be produced. 
2.1.6.2.  Guarantees 
2.1.6.2.1.  The  Committee  agrees  that  'goods  in free 
circulation  which  are subject  only  to VAT'  should  be 
exempt  from  the guarantee. 
2.1.6.3.  Transit  advice  note 
2.1.6.3.1.  The  Committee  is also  in favour  of 
transit  advice  notes  being  abolished,  subject  to a 
replacement  system  being  found  which  is practical 
and does  not increase  the burden  placed  on the user. 
2.1.6.4.  Standardization  of the  documents  used  in 
intra-Community  trade 
2.1.6.4.1.  It  is the Committee's  view  that  efforts  to 
standardize  such  documents  will  of necessity  be 
fragmentary  as long  as the Member  States  continue 
to apply  legal  provisions  and  procedures  which  differ 
from  one  another  and  as long  as it is still  possible, 
for instance,  to add  national  details  to Community 
forms.  So far,  all known  preliminary  work  on the 
introduction  of new  export  and  shipping  documents 
has shown  the  difficulties  of the  various  services  in 
reaching  agreement  on  a minimum  of common 
details. 
2.1.7.  Customs  clearance  procedure 
2.1.7.1.  The  reduction  of  the  amount  of 
information  required  in  certain  Community 
i 
Done  at Brussels,  17 July  1975. documents  is a laudable  objective  but  steps  should 
first be taken  to ensure  that  the  information  thus 
deleted  will  not be required  elsewhere. 
2.1.8.  Basing  customs  controls  on  companies' 
accounts 
2.1.8.1.  Physical  controls  give  a very  incomplete 
indication  as to the  economic  elements  of a trans-
action.  The  Committee  therefore  considers  that 
controls  based  on accounts  are generally  more  reliable 
for the  purposes  of customs  authorities  and  less 
burdensome  for firms.  The  Committee  calls  upon  the 
customs  authorities  to make  a move  in this  direction, 
although  it recognizes  that  physical  controls  are still 
sometimes  necessary. 
2.2. Annex  B 
2.2.1.  Item  1.3 
2.2.1.1.  The  Committee  recognizes  that  the 
Commission's  remarks  are well-founded  and  considers 
that an improvement  in working  methods  is desirable. 
But, it finds  it difficult  to believe  that  the  Member 
States  would  agree  to be completely  bound  by 
preparatory  work.  Passage  through  the  Community 
machinery  in fact  enables  compromises  to be worked 
out which  could  not have  been  achieved  at the initial 
stage. 
2.2.2.  Item  1.4 
2.2.2.1.  The  Committee  finds  it difficult  to take  a 
stand  on the  question  of who  should  do what.  It 
would  point  out,  however,  that  it would  be preferable 
for the permanent  staff  to be increased  rather  than 
have  administrative  work  done  at meetings  of 
national  experts,  which  are  costly  in both  time  and 
money. 
2.2.3.  Item  1.5  —  Nomenclature  Committee 
Procedures 
2.2.3.1.  The  hold-ups  mentioned  by  the 
Commission  demonstrate  the  need  for  a political 
will — a point  emphasized  in the  first  part  of this 
Opinion. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE