ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(81)781
Vol.1981/0221

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COMMISSION
OFTHE
EUROPEAN COMMUNITIESCOM(81)781 final
Brussels,
11December198'
FOROFFICIAL USEONlY
Genero!Secretarial
COMMUNICATION FROMTHECOMMISSIONTOTHECOUNCIL
Thedefinitionof"Kraft"paper
C0M(81)781final.

EXPLANATORY MEMORANDUM
■The Commission wishes toput aformal communication on
thedefinition of"Kraft "paper totheCouncil .Thetext is
attached

1.Towards theendoftheTokyo Round negotiations theUnited States made
representations totheCommunity insisting that itshould implement ,by
wayofanticipation ,thenewdefinition of"Kraft "paper worked outin
theCustoms Cooperation Council .This definition ,which wasintended to
come into effect towards 1985 ontheoccasion ofthereplacement ofthe
CCCNomenclature bythat ofthe "Harmonised System ",iswider inscope
than that applied atpresent bytheCommunity .
2.Atthetime when thenegotiations were taking place ,thepaper and
paperboard corresponding tothepresent definition -subheading
48.01 CII-wassubject toaduty of&fointheCommon Customs Tariff .
TheCCCdefinition ,which iswider thantheCommunity definition ,^^
includes -inaddition tothepaper andpaperboard falling under sub­
heading 48.01 CII-certain papers ofsubheading 48.01F. This sub­
heading -atthetime ofthenegotiations -hadaduty of12% ;but
some Customs services ofMember States erroneously applied' thelower
rate of8%tosome ofthese products .
3.Theconcessions granted bytheCommunity during theTokyo Round negotia­
tions mean that the8%duty will bereduced progressively to6%,begin­
ningfrom1.1.83 ;andthe12$dutywillbereduced to9$by1.1.87.^^
But these concessions were based onthe' current definition and certain
"Kraft "papeis exported bytheUnited States totheCommunity would con­
tinue tobedutiable atthehigher rate .
However ,anexchange ofletters hastaken place between theCommission
andtheAmerican authorities bywhich theCommission hasundertaken to
submit totheCouncil ,by1983 atlatest ,aproposal concerning the
implementation bytheCommission ofthe Customs Cooperation Council
definition .
4>Toimplement this undertaking the Commission hasmade aproposal in
May 1981 through thenormal procedures foramendment oftheCommon
Customs Tariff .This proposal would make several changes to
(1)TheCCCdefinition does notrequire aminimum content of80%of
softwood .
(2)10.5% on1.1.83 and10.1$ on1.1.84.

heading 4°.01,inorder toinclude thenewdefinition of"Kraft "paper
andalso tocreate anewsubheading forgraphic papers (attherequest
ofanumber ofMember States ). ■Since theeffect ofthese changes
would betoreduce thecustoms duty oncertain "Kraft "papers ,the
Commission hadproposed that these reductions beimplemented onan
autonomous basis -toallow acredit infuture tariff negotiations .
This proposal hasbeen discussed with the "Groupe Mixte "ofCustoms
Experts ,aswell asintheSpecial Committee under Article 113 «The
position taken bytheMember States issetoutindocument 10288/81
(Annex p.7)(GATT 144)where itisclear that onedelegation can
accept theproposal asitstands ,thatthree delegations areopposed to
anymodification oftheCCTwhile theothers would accept theproposal
oncondition that theCommunity would receive adequate dompensation
from the US.
TheCommission 'sundertaking vis-a-vis theUnited States topresent a
proposal hasbeen implemented through thenormal channels foramending
theCommon Customs Tariff .However ,.inview ofthecommitment ofthe
Commission ,undertaken during theTokyo Round ,andsince theUnited
States has made itclear that itattaches considerable interest tothis
affair ,theCommission ishereby addressing totheCouncil arequest to
consider this matter urgently .