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COM(82)132
Vol.1982/0045

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)132 final
Brussels,18March1982
,,• Recommendation fora
y COUNCILDECISION
^.amendingDecision70/552/EEContherulesapplicable,inthefields
\e>ofexportguarantees andfinanceforexport,tocertainsub-contracting
inothermembercountriesoftheEuropeanCommunities orinnon-member
'y.
V:?>vy •countries
(submittedtotheCouncilbytheCommission )
C0MC82)132final

Ah2
EXPLANATORY MEMORANDUM
1.TheCouncilDecisionofthe16December1970isbasedontheprinciple
oftheincorporation innationalsystemsof'ub-contracts emanatingfrom
othermemberstates,andinparticular,theautomaticinclusionoftheseinthe
insurancecovergrantedtotheprincipalcontractorinhisowncountry.Onthe
otherhandasconcernsfinancing,thedecisionenvisagesonlynon-
discrimination onareciprocalbasis.
2.Inpracticeinalmostallcasesinsuranceandfinancearearranged
inthesamecountry.Hence,incorporation intheinsurancecovershould
generallyleadalsotoinclusioninthefinancing.
Insuranceandfinanceshouldbetreatedinexactlythesameway.The
conceptsofnon-discrimination andreciprocitycurrentlyappliedarenot
sufficiently preciseandcangiverisetointerpretations
whichriskdestroyingthegeneralpurposeofthedecision.
3.Itisthereforeproposedtoamendthedecisioninorderto
a)eliminatetheconceptofreciprocity as/egardsfinancing;
b)introduceclearlytheautomaticincorporation ofasub-contract
inthefinancingwhichmaybemadeavailabletotheprincipal
contractor;
c)definetheconceptofnon-discrimination which,withinthe
limitsfixedbythedecision,willstipulatethatthesame
termswillbeofferedtotheprincipalcontractorirrespective
ofwhethernationalsubcontracts orsubcontracts originating
fromanothermemberstateareincorporated .

Recommendation for
/COUNCILDECISIONa
amendingDecision70/552/EEContherules
applicable,inthefieldsofexportguaranteesandfinance
forexport,topertainsub-contracting inothermembercountries
oftheEuropeanCommunities orinnon-membercountries.
THECOUNCILOFTHEEUROPEAN COMMUNITIES
havingregardtotheTreatyestablishing theEuropeanEconomic
CommunityandinparticularArticle113,
havingregardtotheRecommendation fromtheCommission,

»
-2-
(1)WhereasCouncilDecision70/552/EECfixescertainrulesapplicable,
inthefieldsofexportguarantees andfinanceforexport,tocertain
sub-contracting inotherMemberStatesoftheEuropeanCommunities orin
non-membercountries,
Whereasthegrowinginterdependence oftheeconomiesoftheMemberStates
makesitnecessarytoreinforcecooperation andtoimprovecommonsolutions
toparticularproblemswhicharise,inthefieldofsub-contracting ,through
exportguarantees andfinanceforexport,
HASADOPTEDTHISDECISION :
Article 1
Decision70/552/EECisherebyamendedasfollows:
Article 1
1.ThefirstArticleisreplacedbythefollowingtext:
ThedetailedrulesapplicableineachMemberStatetotheautomaticinclusion
ofsub-contracts withpartiesinothermembercountriesoftheEuropean
Communities orinnon-membercountriesinthecoverandthefinancewhichmay
begrantedtotheprincipalcontractoraredefinedintheprovisionsetout
intheAnnextothisDecision.
2.Point3ofsectionIIoftheAnnexisreplacedbythefollowingtext:
Thesub-contracts incorporated inthecovertobemadeavailabletothe
principalcontractoraccordingtotheprocedurereferredtoaboveshallbe
incorporated automatically inthefinancewhichmaybemadeavailableto
theprincipalcontractor .
3.Thefollowingpoint4isaddedtosectionIIoftheAnnex:
Withinthelimitsfixedby,thisDecision,thecoverandfinanceofferedto
theprincipalcontractorwillbemadeavailableunderthesameconditions,
irrespective ofwhethernationalsubcontracts ortosub-contracts originating
fromanotherMemberStateareincorporated .
(1)OJNoL284,30.12.70,p.59

-3-
Article2
ThisDecisionshallenterintoforceonthedayofitspublication inthe
OfficialJournaloftheEuropeanCommunities .
Article3
ThisDecisionisaddressedtotheMemberStates.
Brussels,
For
ThetheCouncil
Président