WRITTEN QUESTION P-0893/99

by Elly Plooij-van Gorsel (ELDR) to the Commission

(7 April 1999)

Subject: European importers misled by supplementary levy on textile products from Bangladesh

Under the GSP, imports from Bangladesh with "A" forms are allowed on to the European market under more favourable conditions. In 1997 the Bangladeshi Government, at the instigation of the Commission, declared "A" forms issued in the period 1994-1996 to be invalid.

1. Is it true that the Bangladeshi Government stated as early as 1989 that it was having difficulties managing the issue of certificates of origin?

2. Did the government make an application for a derogation at that time?

3. If so, how did the Commission react to this application?

4. Did the Commission receive any other indications in the period 1989-1994 - e.g. during working visits to Bangladesh - that the Bangladeshi Government was having problems with the lawful issuing of certificates of origin?

5. If so, did the Commission inform importers' organisations or sectoral organisations of this fact? If not, why not? If so, what form did this information take?

Answer given by Mr Monti on behalf of the Commission

(5 May 1999)

1. In 1989 the Government of Bangladesh, like all the other countries benefiting from the Generalised System of Preferences, issued certificates of preferential origin in accordance with rules whose fundamental principles had not been altered since 1971. Bangladesh has not reported any greater difficulties than other beneficiary countries beyond the normal ones involved in the day-to-day administration of the certificates. Also, since 1983 a number of Community missions, seminars and investigations have been conducted in Bangladesh. The purpose of the seminars in particular, in Bangladesh as in other beneficiary countries, was to familiarise officials and exporters with the operational management of preferences, i.e., essentially the issue of certificates of origin.

2. A request for derogation was submitted by Bangladesh in 1985.

3. In 1987, the Commission turned down the request since a majority of the Member States had opposed the derogation, fearing that derogations would principally benefit semi-finished products originating in newly industrialised countries such as South Korea, rather than Bangladesh. It was not until 1997, following a new request by Bangladesh, that the Commission's proposal for a derogation was supported by the Member States.

4. The Community mission to Bangladesh in 1993 dealt exclusively with the problems which arose from the presentation at import of GSP preferential origin certificates (Form A), dated between 1989 and 1993), purportedly issued in Bangladesh but actually accompanying textile products which were of Far-Eastern or Asian origin. More than 3 000 completely false or forged certificates of origin were identified and appropriate action taken by the Member States concerned after withdrawal of the certificates by the authorities of Bangladesh. The Community mission to Bangladesh in 1994 related to a specific investigation (based on exports from the port of Chittagong) where Pakistan origin products were presented at import into the Community with fraudulent GSP Forms A from Bangladesh. In this case, having established through joint enquiries the identity of a Bangladesh-based manufacturer involved in the fraud, the authorities of Bangladesh withdrew the certificates and imposed immediate administrative and financial penalties.

5. Following the publication of the results of the Community mission to Bangladesh in November and December 1996, a notice to importers (97/C 107/05) was published in the Official Journal concerning textile products imported into the Community from Bangladesh under the GSP scheme.