Proposal for a COUNCIL REGULATION adopting autonomous and transitional measures concerning the import of certain processed agricultural products originating in Hungary and the export of certain processed agricultural products to Hungary

(presented by the Commission)

EXPLANATORY MEMORANDUM

Council guidelines authorised the Commission to enter into negotiations with the Republic of Hungary with a view to improving the trade arrangement for processed agricultural products in preparation for accession.

After these negotiations a trade agreement was concluded between the European Commission and Hungary which is scheduled to enter into force on 1 June 2003. On the Community side this agreement introduces concessions in the form of complete liberalisation of trade for certain processed agricultural products and duty free quotas for others - for imports outside of these quotas the current trade provisions as laid down by Protocol No 2 of the European Agreement between the European Communities and Hungary will continue to apply.

The Community concessions are granted subject to the adoption of Hungary of reciprocal measures. In order to give effect to this agreement, on the Community side, it is necessary to adopt certain autonomous measures concerning the import of certain processed agricultural products originating in Hungary.

2003/0082 (ACC)

Proposal for a COUNCIL REGULATION adopting autonomous and transitional measures concerning the import of certain processed agricultural products originating in Hungary and the export of certain processed agricultural products to Hungary

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular Article 133, (2) and (4) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) Protocol No 3 to the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, hereinafter referred to as "Europe Agreement with Hungary" and approved by Decision 93/742/Euratom, ECSC, EC of the Council and of the Commission of 13 December 1993 [1], provides for tariff concessions for processed agricultural products originating in Hungary. Protocol No 3 was amended by the Adaptation Protocol [2] adjusting trade aspects of the Europe Agreement with Hungary. It was improved by Decision No 2/2002 (2002/528/EC) of the EC-Hungary Association Council. [3]

[1] OJ L 347, 31.12.1993, p. 1

[2] OJ L 28, 2.2.1999, p. 3

[3] OJ L 172, 2.7.2002, p. 24.

(2) A trade agreement has recently been concluded which amends the Adaptation Protocol. It aims to improve economic convergence in preparation for accession and should enter into force not later than 1 June 2003. On the Community side this agreement lays down concessions in the form of completed liberalisation of trade for certain processed agricultural products and duty free quotas for others. For imports outside of these quotas the current provisions continue to apply.

(3) The procedure for adopting a decision to amend the Adaptation Protocol will not be completed in time for it to enter into force on 1 June 2003. It is therefore necessary to provide for the application of the concessions made to Hungary on an autonomous basis from 1 June 2003.

(4) For the importation of certain goods no duties should be applied. For certain other goods tariff quotas should be opened; those quotas should be reduced pro rata to the quotas used in accordance with Regulation (EC) No 748/2002.

(5) For goods originating in the European Union and exported to Hungary, which shall benefit from duty free or duty free quotas in Hungary, no export refunds shall be granted. This will be subject to a decision by the Commission under the procedure laid down in Council Decision No 1999/468/EC of 28 June 1999. [4]

[4] OJ L 184, 17.7.1999, p. 23.

(6) Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code [5] provides for a system for managing tariff quotas. The tariff quotas granted by this Regulation should be managed by the Community authorities and the Member States in accordance with this system.

[5] OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 444/2002 (OJ L 68, 12.3.2002, p. 11).

(7) The measures necessary to implement this Regulation should be adopted in accordance with Council Decision No 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. [6]

[6] OJ L 184, 17.7.1999, p. 23

HAS ADOPTED THIS REGULATION:

Article 1

1. From 1 June 2003 on imports of processed agricultural products originating in Hungary listed in the Annex I no duties shall be applied.

2. The products listed in Annex I together with all products under HS heading 0403 and all products under HS heading 2208 (with the exception of HS subheading 2208 20), shall not be eligible for export refunds under Commission Regulation (EC) No 1520/2000 [7].

[7] OJ L 117, 15.7.2000, p. 1, Regulation as last amended by Regulation (EC) No 1052/2002 (OJ L 160, 18.6.2002, p. 16)

Article 2

1. The tariff quotas referred to in Annex II shall be open from 1 June 2003 to 31 December 2003 and for 2004 under the conditions laid down therein. Other preferential duties are listed in Annex II under the conditions laid down therein.

2. The quantities of goods subject to tariff quotas opened under Regulation (EC) No. 748/2002 [8], and put in free circulation from 1 January to 31 May 2003, shall be fully counted against the quantities provided in the corresponding tariff quotas set out in Annex II.

[8] OJ L 115, 1.5.2002, p. 15

Article 3

The tariff quotas referred to in Article 2 shall be managed by the Commission in accordance with Article 308a, Article 308b and Article 308c of Regulation (EEC) No 2454/93.

Article 4

The Commission may suspend the measures provided for in Article 1 and 2 in case of non-application of the reciprocal preferences agreed by Hungary in conformity with the procedure set out in Article 5.

Article 5

1. The Commission shall be assisted by the Committee referred to in Article 16 of Council Regulation (EC) No 3448/93, hereinafter referred to as "the Committee"...

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

3. The period laid down in Article 4 (3) of Decision 1999/468/EC shall be set at one month.

4. The Committee shall adopt its rules of procedure.

Article 6

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

It shall apply as from 1 June 2003.

This Regulation shall be binding in its entirely and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

[...]

ANNEX I Processed agricultural products for the imports on which no duties and export-refunds are applied

CN Code // Description

(1) // (2)

0509 00 // Natural sponges of animal origin:

0509 00 90 // -Other

0903 00 00 // Maté

1212 // Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included:

1212 20 00 // -Seaweeds and other algae

CN Code // Description

(1) // (2)

1302 // Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

// -Vegetable saps and extracts:

1302 12 00 // --Of liquorice

1302 13 00 // --Of hops

1302 14 00 // --Of pyrethrum or of the roots of plants containing rotenone

1302 19 // --Other:

1302 19 30 // ---Intermixtures of vegetable extracts, for the manufacture of beverages or of food preparations

// ---Other:

1302 19 91 // ----Medicinal

1302 20 // -Pectic substances, pectinates and pectates:

1302 20 10 // --Dry

1302 20 90 // --Other

// -Mucilages and thickeners, whether or not modified, derived from vegetable products:

1302 31 00 // --Agar-agar

1302 32 // --Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or sugar seeds:

1302 32 10 // ---Of locust beans or locust bean seeds

1401 // Vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned,bleached or dyed cereal straw, and lime bark):

1401 10 00 // -Bamboos

1401 20 00 // -Rattans

1401 90 00 // -Other

1402 00 00 // Vegetable materials of a kind used primarily as stuffing or as padding (for example, kapok, vegetable hair and eel-grass), whether or not put up as a layer with or without supporting material:

1403 00 00 // Vegetable materials of a kind used primarily in brooms or in brushes (for example, broomcorn piassava, couch-grass and istle), whether or not in hanks or bundles:

1404 // Vegetable products not elsewhere specified or included:

1404 10 00 // -Raw vegetable materials of a kind used primarily in dyeing or tanning

1404 20 00 // -Cotton linters

1404 90 00 // -Other

1505 // Wool grease and fatty substances derived therefrom (including lanolin):

1505 00 10 // -Wool grease, crude

1505 00 90 // -Other

1506 00 00 // Other animal fats and oils and their fractions, whether or not refined, but not chemically modified

1515 // Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified:

1515 90 15 // -- Jojoba and oiticica oils; myrtle wax and Japan Wax; their fractions

1516 // Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not refined, but not further prepared:

1516 20 // -Vegetable fats and oils and their fractions:

1516 20 10 // --Hydrogenated castor oil, so called "opal-wax"

CN Code // Description

(1) // (2)

1518 00 // Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading No 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified or included:

1518 00 10 // -Linoxyn

// -Other:

1518 00 91 // --Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading No1516

// --Other:

1518 00 95 // ---Inedible mixtures or preparations of animal or of animal and vegetable fats and oils and their fractions

1518 00 99 // ---Other

1520 00 00 // Glycerol, crude; glycerol waters and glycerol lyes

1521 // Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured:

1521 10 00 // - Vegetable waxes

1521 90 // -Other:

1521 90 10 // --Spermaceti, whether or not refined or coloured

// --Beeswax and other insect waxes, whether or not refined or coloured:

1521 90 91 // ---Raw

1521 90 99 // ---Other

1522 00 // Degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes:

1522 00 10 // -Degras

1702 // Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

1702 50 00 // -Chemically pure fructose

1702 90 // -Other, including invert sugar:

1702 90 10 // --Chemically pure maltose

1803 // Cocoa paste, whether or not defatted:

1803 10 00 // -Not defatted

1803 20 00 // -Wholly or partly defatted

1804 00 00 // Cocoa butter, fat and oil

1805 00 00 // Cocoa powder, not containing added sugar or other sweetening matter

CN Code // Description

(1) // (2)

1901 // Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included:

1901 10 00 // -Preparations for infant use, put up for retail sale

1901 20 00 // -Mixes and doughs for the preparation of bakers' wares of heading No 1905

1901 90 // -Other:

// --Malt extract:

1901 90 11 // ---With a dry extract content of 90% or more by weight

1901 90 19 // ---Other

// --Other:

1901 90 91 // ---Containing no milk fats, sucrose, isoglucose, glucose or starch or containing less than 1,5% milk fat, 5% sucrose (including invert sugar) or isoglucose, 5% glucose or starch, excluding food preparations in powder form of goods of heading Nos 0401 to 0404

1903 00 00 // Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or similar forms

1904 // Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); 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:

1904 10 // -Prepared foods obtained by the swelling or roasting of cereals or cereal products:

1904 10 10 // --Obtained from maize

1904 10 30 // --Obtained from rice

1904 10 90 // --Other:

1904 20 // -Prepared foods obtained from unroasted cereal flakes or from mixtures of unroasted cereal flakes and roasted cereal flakes or swelled cereals:

1904 20 10 // --Preparation of the Müsli type based on unroasted cereal flakes

// --Other:

1904 20 91 // ---Obtained from maize

1904 20 95 // ---Obtained from rice

1904 20 99 // ---Other

1904 30 00 // Bulgur wheat

1904 90 // -Other:

1904 90 10 // --Rice

1904 90 80 // --Other

2001 // Vegetables, fruits, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid:

2001 90 // -Other:

2001 90 40 // --Yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch

2001 90 60 // --Palm hearts

2004 // Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading No 2006

2004 10 // -Potatoes:

// --Other

2004 10 91 // ---In the form of flour, meal or flakes

CN Code // Description

(1) // (2)

2005 // Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading No 2006

2005 20 // -Potatoes:

2005 20 10 // --In the form of flour, meal or flakes

2008 // Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

// -Nuts, ground-nuts and other seeds, whether or not mixed together:

2008 11 // --Ground-nuts:

2008 11 10 // ---Peanut butter

// -Other, including mixtures other than those of subheading 2008 19:

2008 91 00 // --Palm hearts

2008 99 // --Other:

// ---Not containing added spirit:

// ----Not containing added sugar:

2008 99 85 // -----Maize (corn), other than sweet corn (Zea mays var. saccharata)

2008 99 91 // -----Yams, sweet potatoes and similar edible parts of plants, containing 5% or more by weight of starch

2101 // Extracts, essences and concentrates, of coffee, tea or maté, and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

// -Extracts, essences and concentrates of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

2101 11 // --Extracts; essences or concentrates:

2101 11 11 // ---With a coffee-based dry matter content of 95% or more by weight

2101 11 19 // ---Other

2101 12 // --Preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

2101 12 92 // ---Preparations with a basis of these extracts, essences or concentrates of coffee

2101 12 98 // ---Other

2101 20 // -Extracts, essences and concentrates, of tea or maté, and preparations with a basis of these extracts, essences and concentrates or with a basis of tea or maté:

2101 20 20 // --Extracts, essences or concentrates

// --Preparations:

2101 20 92 // ---With a basis of extracts, essences or concentrates of tea or maté

2101 20 98 // ---Other

2101 30 // -Roasted chicory and other roasted coffee substitutes and extracts, essences and concentrates thereof:

// --Roasted chicory and other roasted coffee substitutes:

2101 30 11 // ---Roasted chicory

2101 30 19 // ---Other

// --Extracts, essences and concentrates of roasted chicory and other roasted coffee substitutes:

2101 30 91 // ---Of roasted chicory

2101 30 99 // ---Other

CN Code // Description

(1) // (2)

2103 // Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard:

2103 10 00 // -Soya sauce

2103 20 00 // -Tomato ketchup and other tomato sauces

2103 30 // -Mustard flour and meal and prepared mustard:

2103 30 10 // --Mustard flour

2103 30 90 // --Prepared mustard

2103 90 // -Other:

2103 90 10 // --Mango chutney, liquid

2103 90 30 // --Aromatic bitters of an alcoholic strength by volume of 44,2 to 49,2% vol containing from 1,5 to 6% by weight of gentian, spices and various ingredients and from 4 to 10% of sugar, in containers holding 0,5 litre or less

2103 90 90 // --Other

2104 // Soups and broths and preparations therefor; homogenised composite food preparations:

2104 10 // -Soups and broths and preparation therefor:

2104 10 10 // --Dried

2104 10 90 // --Other

2104 20 00 // -Homogenised composite food preparations

2105 00 // Ice cream and other edible ice, whether or not containing cocoa:

2105 00 10 // -Containing no milk fats or containing less than 3% by weight of such fats

// -Containing by weight of milk fats:

2105 00 91 // --3% or more but less than 7%

2105 00 99 // --7% or more

2106 // Food preparations not elsewhere specified or included:

2106 10 // -Protein concentrates and textured protein substances:

2106 10 20 // --Containing no milk fats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5% milk fat, 5% sucrose or isoglucose, 5% glucose or starch

2106 10 80 // --Other

2106 90 2106 90 20 // -Other: --Compound alcoholic preparations, other than those based on odoriferous substances, of a kind used for the manufacture of beverages

// --Other:

2106 90 92 // ---Containing no milk fats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5% milk fat, 5% sucrose or isoglucose, 5% glucose or starch:

CN Code // Description

(1) // (2)

3301 // Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic by products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils:

3301 90 // -Other:

3301 90 10 // --Terpenic by-products of the deterpenation of essential oils

// --Extracted oleoresins

3301 90 21 // --- Of liquorice and hops

3301 90 30 // --- Other

3301 90 90 // -- Other

3302 // Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as a raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages:

3302 10 // -Of a kind used in the food or drink industries

// --Of the type used in the drink industries:

// ---Preparations containing all flavouring agents characterizing a beverage:

3302 10 10 // ----Of an actual alcoholic strength by volume exceeding 0,5%

// ----Other:

3302 10 21 // -----Containing no milkfats, sucrose, isoglucose, glucose, or starch or containing, by weight, less than 1,5% milkfat, 5%sucrose or isoglucose, 5% glucose or starch

3302 10 29 // -----Other

3501 // Casein, caseinates and other casein derivates; casein glues:

3501 10 // -Casein:

3501 10 10 // --For the manufacture of regenerated textile fibres

3501 10 50 // --For industrial uses other than the manufacture of foodstuffs or fodder

3501 10 90 // --Other

3501 90 // -Other:

3501 90 90 // --Other

3823 // Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols:

// -Industrial monocarboxylic fatty acids, acid oils from refining:

3823 11 00 // --Stearic acid

3823 12 00 // --Oleic acid

3823 13 00 // --Tall oil fatty acids

3823 19 // --Other:

3823 19 10 // ---Distilled fatty acids

3823 19 30 // ---Fatty acid distillate

3823 19 90 // ---Other

3823 70 00 // -Industrial fatty alcohols

ANNEX II

DUTIES APPLICABLE UPON IMPORT INTO THE EUROPEAN COMMUNITY OF GOODS ORIGINATING IN HUNGARY [9]

[9] The Commission will adopt a Regulation with the duties applicable for trade above the agreed quotas which will be in force from 1 January 2004 on the basis of the duties provided for in Decision No. 2/2002 of the Association Council (OJ L 172 of 2 July 2002, p. 24). The duties applicable from 1 June 2003 to 31 December 2003 and referred to in the last column of this Annex by "EAR, AD S/ZR or AD F/MR" are mentioned in Annex II and III of Commission Regulation (EC) No 238/2003.

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