COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 11.06.1998 
COM(1998) 378 final 
98/0211 (ACC) 
Proposal for a 
COUNCIL DECISION 
concerning the approval of a Memorandum of Understanding 
between the European Community and the Dominican Republic 
on import protection for milk powder in the Dominican Republic 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. At the end of 1994 the Dominican Republic (DR) submitted a request for 
rectification of its Marrakech list for 8 tariff concessions, of which only one (milk 
powder) was of an economic interest to the Community. The DR, as a developing 
country, has claimed that it had not understood the "tariffication process" used during 
the Uruguay Round negotiations for converting non-tariff barriers into ordinary 
customs duties. 
The Community has been the first supplier of milk powder to the DR for the last many 
years. 
2. In the Marrakech list the DR had bound all agricultural products at a ceiling of 
40%. The proposal for rectification included creation of a tariff rate quota with an in-
quota-rate of 20% as "compensation" for the introduction of a proposed duty rate of 
102%. 
3. Over the last three years several meetings have taken place between the 
Commission services and the DR, which is a Member of the Lomé Convention, with a 
view to arriving at a mutually satisfactory solution on this issue. 
4. The result of the discussions between the Commission and the DR is that the 
DR has offered a tariff quota of 32.000 tonnes of which 70% would be reserved for 
the Community. The Community will manage its share of the tariff quota according 
to a mechanism of export licences as established by Community regulations. The in-
quota-duty-rate is 20%, whereas the out-of-quota-duty-rate in the first year will be 
84%, which will be reduced to 56% over 7 years. 
5. It is the Commission's general view that an agreement on the lines indicated 
above is preferable to leaving the DR with the alternative of opening GATT Article 
XXVIII negotiations, from which the Community has little to gain. 
6. The purpose of this proposal is to ask the Council to approve the result as laid 
down in the Memorandum of Understanding attached to the proposed Decision 
(annex A). 
z. 
Proposal-for a 
COUNCIL DECISION 
of.. 
concerning the approval of a Memorandum of Understanding 
between the European Community and the Dominican Republic 
on import protection for Milk powder in the Dominican Repub'k 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 113 in 
conjunction with Article 228 (2) first sentence thereof, 
Having regard to the proposal from the Commission, 
Whereas the Dominican Republic have requested a rectification of its Marrakech list for 8 tariff 
concessions, of which only one (milk powder) is of an economic interest to the Community, 
Whereas the Dominican Republic have offered a tariff quota of 32.000 tonnes of which 70% would be 
reserved for the Community, 
Whereas the Community will manage its share of the tariff quota according to a mechanism of export 
licenses as established by Community regulations 
HAS ADOPTED THIS DECISION 
Article I 
The Memorandum of Understanding between the European Community and the Dominican Republic 
on import protection for milk powder in the Dominican Republic is hereby approved on behalf of ihe 
Community. 
The text of the Memorandum of Understanding is attached to this Decision 
Article 2 
The President of the Council is hereby authorised to designate the person empowered to sign the 
Memorandum of Understanding in order to bind the Community. 
S 
Article 3 
The Commission shall, in accordance with the procedure laid down in Article 30 of Council Regulation 
(EEC) No. 804/68 of 27 June 1968 on the common organisation of the market in milk and milk 
products1, adopt detailed rules for the implementation of paragraph 3 of the Memorandum of 
Understanding as referred to in Article 1. 
Article 4 
This decision shall be published in the Official Journal of the European Communities. 
Done at Brussels, 
For the Council 
OJ N° L 148, 28.6.1968, p. 13. Regulation as last amended by Regulation (EC) N° 1587/96 
(OJ No L 206, 16.8.1996, p. 21 ) 
V 
ANNEXA 
X 
MEMORANDUM OF UNDERSTANDING 
Schedule XXIII 
Part I - Tariff for the Most Favoured Nation 
Section 1-B: Tariff Quota 
1. The Government of the Dominican Republic will rectify following this 
Memorandum of Understanding its Agricultural Schedule (Schedule XXIII annex to 
the Protocol of Marrakech) in order to include the following Tariff Quota: 
Description of Product: Powder mill 
Tariff heading (HS) Number: 0402.10 
0402.21 
0402.29 
Applicable tariff: 20% 
Base rate: 84% 
Bound rate: 56% 
Size of Tariff Quota: 32,000 M/T 
Period of Application: 1998-2004 
2. The Tariff Quota established by this Agreement will be distributed among suppliers 
according to Article XIII of the General Agreement on Tariffs and Trade (GATT 94) 
in the following way: 
European Community 22,400 M.T. 70% 
New Zealand 4,800 M.T. 15% 
Other suppliers 4,800 M.T. 15% 
TOTAL 32,000 M.T. 100% 
3. The European Community will manage its share of the Tariff Quota according to a 
mechanism of export licenses as established by the European Community 
regulations. 
4. Any WTO Member can participate in the Tariff Quota as "other supplier". 
5. The European Commission will inform the Dominican Republic of any existing or 
foreseen difficulty in supplying the European Community's share of the tariff quota, 
ïf the European Community cannot supply its share of the tariff quota allocated 
through this agreement, the Dominican Republic will have the rieht, after 
€ 
notification two months in advance to the European Community, to reallocate the 
unused quantity of the tariff quota among other suppliers if the supply problem is 
not resolved in that period. It is understood that this provision will not be used in 
order to impair the European Community's possibilities of continuing to supply the 
products it was supplying during the years prior to this agreement. 
6. The Dominican Republic does not intend that the introduction of this Agreement 
should have the effect of artificially constraining supply and therefore increasing 
prices on its domestic market. It will, therefore, keep its market situation under 
review and will, as appropriate, make increases in the tariff quota consistent with 
this objective. 
7. As well, through this Agreement it is established that the Rectification of the 
Schedule XXIII, as previously described in the first paragraph of this Memorandum, 
is valid from year 1998 (the fourth year) of the commitments established by the 
Uruguay Round. 
8. The Dominican Republic will implement its Agricultural Schedule (Schedule XXIII 
annex to the Protocol of Marrakech) including the rectification as per this 
Memorandum. The tariff quota will operate on a 1 July-30 June basis. Transitional 
arrangements will apply in respect of 1998/99 if the new arrangement enters into 
force after 1 st July. 
For the Dominican Republic For the European Community 

ISSN 0254-1475 
COM(98) 378 final 
DOCUMENTS 
EN 03 11 10 02 
Catalogue number : CB-C0-98-388-EN-C 
ISBN 92-78-37204-8 
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