COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 30.06.1998 
COM(1998) 399 final 
98/0224 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
concerning the tariff treatment 
applicable upon importation of 
certain types of food supplements originating in Switzerland 
(presented by the Commission) 

Explanatory Memorandum 
1. The Swiss authorities have repeatedly raised the question of the duty applied 
to certain types of food supplements intended to maintain general health or 
well-being, and in particular to the preparations called Swiss Caps (essentially 
dried garlic in capsule form, intended to contribute to the health of the user). 
2. The Swiss authorities have indicated that in the past some imports of these 
products have been allowed at a zero rate of duty, as they have been classified 
as pharmaceutical products. The Community, however, is of the view that 
these products are to be classified as food preparations under CN code 2106 90 
92 and are therefore subject to a duty of 16.4%. The Swiss side agrees to this 
classification, but requests that a zero duty be applied. 
3. The Commission is prepared to comply with this request, as the Swiss side 
agrees to apply the same definition and zero duty rate to its imports from the 
Community. 
4. The Commission therefore proposes to reduce to zero the rate of duty applied 
to certain nutritional complements of Swiss origin, defined as: 
"Food supplements based on plant extracts, fruit concentrates or honey, with 
added vitamins and, sometimes, very small quantities of iron compounds, 
often put up in packaging indicating that they are intended to maintain general 
health, 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." 
5. This autonomous measure is conditional on the adoption of an entirely 
equivalent measure by Switzerland, e.g. zero duly rate, definition of the 
product and date of introduction. It will be re-examined if Protocol 2 of the 
EC-Switzerland Free Trade Agreement is adapted. 
6. In order to ensure the proper application of the decision a new Taric 
subheading will be created which will enable the Community to limit its 
application to the products concerned. 
7. The Commission will monitor market developments for this product and, if 
disruptions occur or imports increase significantly, may suspend the present 
measure. 
8. For these reasons, the Commission recommends that the Council adopt the 
attached proposal for a Council Regulation. 
I 
Proposai for a Council Regulation (EC) concerning the tariff treatment 
applicable upon importation of certain types of food supplements 
originating in Switzerland 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, and in particular 
Article ! 13 thereof, 
Having regard to the proposal from the Commission, 
Whereas, in the European Community, certain types of food supplements intended to 
maintain general health or well-being are classified under CN code 2106 90 92 as 
food preparations and are subject to a duty of 16.4%; 
Whereas it seems appropriate for the European Community to grant a zero duty rate 
on imports of these products from Switzerland; 
Whereas CN Code 2106 90 92 includes goods not covered by the present Regulation, 
so that a specific description of the products concerned is needed; 
Whereas this measure will be re-examined if Protocol 2 of the Free Trade Agreement 
between the EC and Switzerland is amended. 
HAS ADOPTED THIS RECULA LION: 
Article 1 
The following Ibod preparations originating in Switzerland and classifiable under 
CN code ex 2106 90 92 shall be subject to zero duly upon importation into the 
Community: 
"Food supplements based on plant extracts, fruit concentrates or honey, with added 
vitamins and, sometimes, very small quantities of iron compounds, often put up in 
packaging indicating that they are intended to maintain general health, 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." 
Article 2 
A new Taric subheading will be created which will enable the Community to limit the 
application of this Regulation to the products concerned. 
3 
Article 3 
The Commission will monitor trade developments for the products concerned and 
may suspend Ihe présent measure if any disruption occurs or imports increase 
significantly, according to the procedure laid down in Article 16 of Regulation (EC) 
No 3448/93. 
Article 4 
This Regulation shall enter into force on the third day following its publication in the 
Official Journal of the European Communities. It shall apply from 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, For the Council 
The President 
H 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Proposal fora Council Regulation (EC) concerning the tariff treatment applicable 
upon importation of certain types of food supplements originating in Switzerland. 
2. BUDGET HEADING INVOLVED 
Chapter 12, Article 120 
3. LEGAL BASIS 
Article 113 of the Treaty establishing the European Community. 
4. DESCRIPTION OF OPERATION 
a. The Swiss authorities have repeatedly raised the question of the duty applying 
to certain types of food supplements intended to maintain general health or 
well-being, and in particular to the preparations called Swiss Caps. 
b. The Swiss authorities have indicated that in the past some imports of these 
products have been allowed at a zero rate of duty, as they have been classified 
as pharmaceutical products. The Community, however, is of the view that the 
products are to be classified as food preparations under CN code 2106 90 92 
and are therefore subject to a duty of 16.4%. The Swiss side agrees to this 
classification, but requests that a zero duty be applied. 
c. The Commission is prepared to comply with this request. Movement on this 
dossier will demonstrate good will on the part of the Union in seeking a 
solution to other long-standing bilateral problems. 
d. The Commission therefore proposes to reduce to zero the rate of duty applied 
to certain nutritional complements of Swiss origin, defined as: 
"food supplements based on plant extracts, fruit concentrates or honey, with 
added vitamins and, sometimes, very small quantities of iron compounds, 
often put up in packaging indicating that they are intended to maintain general 
health, 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." 
This proposal is conditional on the application by Switzerland of the same 
measure, the zero duty rate and the definition of the product. 
< 
e. This change will be implemented on an autonomous basis and must be 
considered a transitional measure. It will definitely be considered within the 
lulu i c adaptation of Protocol 2 of I IK- EC-Swilzerland free Trade Agreement. 
I. In order to ensure the proper application o\' the decision a new Tarie 
subheading will be created which will enable the Community to limit its 
application to the products concerned. 
g. The Commission will monitor market developments for the product concerned 
and, if disruptions occur or imports increase significantly, may suspend the 
present measure. 
5 CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Compulsory / Non-compulsory expenditure 
Loss of revenue 
5.2 Differentiated / Non-differentiated appropriations 
N/A 
5.3 Type of revenue involved 
Customs duties 
6. TYPE OF EXPENDITURE OR REVENUE 
Loss of revenue due to change in customs rating from 16.4 % to zero rating. 
7. FINANCIAL IMPACT 
The calculation oflhc loss of revenue due to the change in customs rating is based on 
figures provided by Switzerland, according to which the annual value of the 
Community's imports of the goods in question is CI IF 10 to 15 million. The current 
customs rating is 16.4%. Therefore the maximum loss of revenue will be 
ECU 1.5 million a year ((CHF 15 million / 1.63316) x 16.4% = ECU 1.5 million). 
£ 
ISSN 0254-1475 
COM(98) 399 final 
DOCUMENTS 
EN 02 03 11 
Catalogue number : CB-CO-98-410-EN-C 
ISBN 92-78-37437-7 
Office for Official Publications of the European Communities 
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