Proposal for a COUNCIL REGULATION on the conclusion of Agreements in the form of Exchanges of Letters between the European Community and the Republic of Bulgaria, the Republic of Hungary and Romania on reciprocal preferential trade concessions for certain wines and spirits, and amending Regulation (EC) No 933/95 opening and providing for the administration of Community tariff quotas for certain wines

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. In 1993, the European Community concluded agreements with Bulgaria, Hungary and Romania on the reciprocal establishment of tariff quotas for certain wines. These agreements were to run initially until 31 December 1997 (Bulgaria and Romania) and 31 December 1998 (Hungary). They have all since been extended until 31 December 2000. In 1993 the European Community also concluded agreements with these same three associated countries on the reciprocal protection and control of wine names, this time of unlimited duration.

2. The Council has authorised the Commission to start negotiations with the three countries with a view to concluding new agreements to replace the existing ones, in the form of additional Protocols to the Europe Agreements, with a scope extended to include spirits.

3 In accordance with the directives adopted by the Council the Commission and the three associated countries concerned reached agreements regarding the new preferential trade regimes and the reciprocal protection and control of wine names and spirit designations.

4 As not to interrupt the reciprocal preferential trade regime and to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions pending the procedure for the adoption and the entering into force of the additional Protocols to the Europe Agreements, the Commission and the three associated countries concerned have also agreed on agreements taking the form of three Exchanges of Letters. The bilateral tariff concessions provided for by these three agreements are identical to those of the envisaged additional Protocols to the Europe Agreements.The three draft Exchanges of Letters are attached to this proposal (Annex 2, Annex 3 and Annex 4).

5. The purpose of this proposal is to ask the Council to adopt the three Agreements in the form of Exchange of Letters with the Republic of Bulgaria, the Republic of Hungary and Romania and the measures needed to implement them, including the amendment of Council Regulation (EC) No 933/95.

2000/0319 (ACC)

Proposal for a COUNCIL REGULATION on the conclusion of Agreements in the form of Exchanges of Letters between the European Community and the Republic of Bulgaria, the Republic of Hungary and Romania on reciprocal preferential trade concessions for certain wines and spirits, and amending Regulation (EC) No 933/95 opening and providing for the administration of Community tariff quotas for certain wines

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the first sentence of Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) An Agreement in the form of an Exchange of Letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines [1] was signed on 29 November 1993 and extended by an Agreement in the form of an Exchange of Letters [2] signed on 8 February 2000.

[1] OJ L 337, 31.12.1993, p. 3.

[2] OJ L 49, 22.2.2000, p. 7.

(2) An Agreement in the form of an Exchange of Letters between the European Community and the Republic of Hungary on the reciprocal establishment of tariff quotas for certain wines [3] was signed on 29 November 1993 and extended by an Agreement in the form of an Exchange of Letters [4] signed on 3 February 2000.

[3] OJ L 337, 31.12.1993, p. 83.

[4] OJ L 49, 22.2.2000, p. 11.

(3) An Agreement in the form of an Exchange of Letters between the European Community and Romania on the reciprocal establishment of tariff quotas for certain wines [5] was signed on 26 November 1993 and extended by an Agreement in the form of an Exchange of Letters [6] signed on 11 February 2000.

[5] OJ L 337, 31.12.1993, p. 173.

[6] OJ L 49, 22.2.2000, p. 15.

(4) These three Agreements are due to expire on 31 December 2000.

(5) In accordance with the directives adopted by the Council, the Commission and the three associated countries concerned concluded negotiations on new reciprocal trade concessions for certain wines and for certain spirits and on the reciprocal protection and control of wine names and spirit designations. These results of the negotiatons will have to be integrated in the framework of the three Europe Agreements in the form of additionnal Protocols.

(6) Pending the procedure for the adoption and the entering into force of the said additional Protocols to the Europe Agreements and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, Agreements in the form of Exchanges of Letters between the European Community and the three associated countries concerned on reciprocal preferential trade concessions for certain wines and spirits should be adopted. The bilateral tariff concessions provided for by these three Agreements in the form of Exchanges of Letters should be identical to those of the envisaged additional Protocols to the Europe Agreements. These Agreements in the form of Exchanges of Letters shoud expire on the entry into force of the said additional Protocols to the Europe Agreement.

(7) Council Regulation (EC) No 933/95 of 10 April 1995 opening and providing for the administration of Community tariff quotas for certain wines originating in Bulgaria, Hungary and Romania [7] should be amended in accordance with the said transitional Agreements in the form of Exchanges of Letters.

[7] OJ L 96, 28.4.1995, p. 1. Regulation last amended by Regulation (EC) No 388/2000 (OJ L 49, 22.2.2000, p. 4).

(8) In order to facilitate the implementation of certain provisions of the Agreements, the Commission should be authorised to adopt the necessary legislation for their implementation in accordance with the procedure laid down in Article 75 of Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine [8],

[8] OJ L 179, 14.7.1999, p. 1.

HAS ADOPTED THIS REGULATION:

Article 1

The Agreement in the form of an Exchange of Letters between the European Community and the Republic of Bulgaria on reciprocal preferential trade concessions for certain wines and spirits is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Regulation (Annex 2).

Article 2

The Agreement in the form of an Exchange of between the European Community and the Republic of Hungary on reciprocal preferential trade concessions for certain wines and spirits is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Regulation (Annex 3).

Article 3

The Agreement in the form of an Exchange of Letters between the European Community and Romania on reciprocal preferential trade concessions for certain wines and spirits is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Regulation (Annex 4).

Article 4

The President of the Council is hereby authorised to designate the person empowered to sign the Agreement in order to bind the Community.

Article 5

The Commission is hereby authorised to adopt the necessary acts for implementation of the Agreements, in accordance with the procedure laid down in Article 75 of Regulation (EC) No 1493/1999.

Article 6

Article 1 of Regulation (EC) No 933/95 is replaced by the following:

'Article 1

1. From 1 January 2001, and without prejudice to paragraph 2, the customs duties applicable on importation of the following products originating in Bulgaria, Hungary and Romania shall be suspended at levels and within the limits of tariff quotas as indicated with respect to each product:

(a) Wines originating in Bulgaria:

>TABLE POSITION>

(1) See attached Taric codes.

(2) Notwithstanding the rules for interpreting the combined nomenclature, the wording for the description of the products is to be considered as indicative only, the preferential scheme being determined, within the context of Article 1(1), by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

(b) Wines originating in Hungary:

>TABLE POSITION>

(1) See attached Taric codes.

(2) Notwithstanding the rules for interpreting the combined nomenclature, the wording for the description of the products is to be considered as indicative only, the preferential scheme being determined, within the context of Article 1(1), by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

(c) Wines originating in Romania:

>TABLE POSITION>

(1) See attached Taric codes.

(2) Notwithstanding the rules for interpreting the combined nomenclature, the wording for the description of the products is to be considered as indicative only, the preferential scheme being determined, within the context of Article 1(1), by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

2. Admission under the tariff quotas referred to in paragraph 1 shall be confined to wines accompanied by a document VI 1 or an extract VI 2, completed in accordance with the provisions of Commission Regulation (EEC) No 3590/85 [9].'

[9] OJ L 343, 20.12.1985, p. 1. Regulation last amended by Regulation (EC) No 960/98 (OJ L 135, 8.5.1998, p. 4).

Article 7

The Annex to Regulation (EC) No 933/95 is replaced by Annex 1 to this Regulation.

Article 8

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

It shall apply from 1 January 2001.

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

Done at Brussels,

For the Council

The President

Annex 1 Taric codes

>TABLE POSITION>

>TABLE POSITION>

Annex 2

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and the Republic of Bulgaria on reciprocal preferential trade concessions for certain wines and spirits

A. Letter from the Community

Brussels, ..........

Sir,

I have the honour to refer to the Agreement of 29 November 1993 in the form of an Exchange of Letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and the Republic of Bulgaria with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and the Republic of Bulgaria have agreed on the following:

1. Imports into Bulgaria of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

2. Imports into the Community of the following products originating in Bulgaria shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Bulgaria :

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) if it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of the Republic of Bulgaria.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

B. Letter from Bulgaria

Brussels, ...........

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'I have the honour to refer to the Agreement of 29 November 1993 in the form of an Exchange of Letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and the Republic of Bulgaria with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and the Republic of Bulgaria have agreed on the following:

1. Imports into Bulgaria of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

2. Imports into the Community of the following products originating in Bulgaria shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Bulgaria :

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) if it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of the Republic of Bulgaria.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.'

I have the honour to confirm that my Government is in agreement with the content of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Bulgaria

Annex 3

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and the Republic of Hungary on reciprocal preferential trade concessions for certain wines and spirits

A. Letter from the Community

Brussels, ..........

Sir,

I have the honour to refer to the Agreement of 29 November 1993 in the form of an Exchange of Letters between the European Community and the Republic of Hungary on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and the Republic of Hungary with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and the Republic of Hungary have agreed on the following:

1. Imports into Hungary of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

(1) This concession replaces, for the products concerned, the concessions from Hungary provided for by the Protocol 3 to the Europe Agreement. From 1 January 2002 and each successive years, applicable duty will be reduced by 4% ad valorem.

2. Imports into the Community of the following products originating in Hungary shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Hungary:

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) f it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on the list drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of the Republic of Hungary.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

B. Letter from the Republic of Hungary

Brussels,

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'I have the honour to refer to the Agreement of 29 November 1993 in the form of an Exchange of Letters between the European Community and the Republic of Hungary on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and the Republic of Hungary with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and the Republic of Hungary have agreed on the following:

1. Imports into Hungary of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

(1) This concession replaces, for the products concerned, the concessions from Hungary provided for by the Protocol 3 to the Europe Agreement. From 1 January 2002 and each successive years, applicable duty will be reduced by 4% ad valorem.

2. Imports into the Community of the following products originating in Hungary shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Hungary :

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) if it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on the list drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of the Republic of Hungary.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.'

I have the honour to confirm that my Government is in agreement with the content of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Hungary

Annex 4

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and Romania on reciprocal preferential trade concessions for certain wines and spirits

A. Letter from the Community

Brussels, ..........

Sir,

I have the honour to refer to the Agreement of 26 November 1993 in the form of an Exchange of Letters between the European Community and Romania on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and Romania with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and Romania have agreed on the following:

1. Imports into Romania of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

2. Imports into the Community of the following products originating in Romania shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Romania:

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) if it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of Romania.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

B. Letter from Romania

Brussels, ..........

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'I have the honour to refer to the Agreement of 26 November 1993 in the form of an Exchange of Letters between the European Community and Romania on the reciprocal establishment of tariff quotas for certain wines and to the negotiations which have taken place between the European Community and Romania with a view to concluding an additional Protocol to the Europe Agreement covering both wines and spirits.

I hereby confirm that, following the negotiations and pending the procedure for the adoption and the entering into force of the additional Protocol to the Europe Agreement and in order to implement from 1 January 2001 the results of the negotiations on new bilateral trade concessions for certain wines and spirits, the European Community and Romania have agreed on the following:

1. Imports into Romania of the following products originating in the Community shall be subject to the concessions set out below.

>TABLE POSITION>

2. Imports into the Community of the following products originating in Romania shall be subject to the concessions set out below.

>TABLE POSITION>

3. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Romania:

(a) if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting party in question, and

(b) if it has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Regulation (EC) N° 1493/1999.

4. Imports of wine under the concessions provided for in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with point 3 (b).

5. The Contracting Parties shall ensure that the trade concessions granted reciprocally are not called into question by other measures.

6. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates.

7. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, in the territory of Romania.

8. This Agreement will be approved by the Contracting Parties in accordance with their respective procedures.

This Agreement shall enter into force on 1 January 2001. It shall expire on the entry into force of the additional Protocol to the Europe Agreement on wines and spirits.

I should be obliged if you would confirm that your Government is in agreement with the content of this letter.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Romania

>TABLE POSITION>