PROPOSAL FOR A COUNCIL REGULATION ( EEC ) OPENING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR RUM, ARRACK AND TAFIA, ORIGINATING IN THE OVERSEAS COUNTRIES AND TERRITORIES ASSOCIATED WITH THE EUROPEAN ECONOMIC COMMUNITY ( OCT ) ( 1989/90 )
Date: 1989-04-04
Institutions: European Commission
Subjects: association agreement (EU), economic cooperation, financial cooperation, industrial cooperation, overseas countries and territories

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC89) 146 final 

Brussels, 4 April 1989 

Proposal for a 

COUNCIL  REGULATION (EEC) 

opening and providing for the administration of a Community 

tariff  quota for rum, arrack and tafia, originating  in the 

overseas  countries and territories  associated  with the 

European  Economic  Community (OCT) 

(1989/90) 

(presented by the Commission) 

X 

EXPttNMOHY WMORANDUM 

1. Annex V of Oouncil Decision 86/283/EBC of 30 June 1966, provides that 

rum, arrack and tafia falling within CN-oodes 2208 40 10, 2206 40 90, 

2208 90 11 and 2208 90 19, originating in the overseas countries 

associated with the EEC shall be imported free of customs duty into the 

Oanmunity within the limits of a tariff quota, the volume of the tariff 

quota is to be determined by reference to an annual basic amount, 

calculated in hectolitres of pure alcohol, equal to the amount of the 

imports effected during the best of the latest three years for which 

statistics are available. This basic amount is subject to a growth rate 

of 27 %. 

2. By Decision 86/47/EEC, extended by Decision no 86/645/EEC the Council 

has established arrangements for trade between the Kingdom of Spain and 

the Portuguese Republic on the one hand and the overseas countries and 

territories  (OCT) on the other. The result is that the imports of the 

products in question in these two countries have the benefit of the 

tariff quota. However, as regards the quota duties, which will be 

applicable, particular provisions are provided for in the Annex of the 

abovementioned  Decision. 

Bemuse of the particularities on the rum market, the quota period 

ranges from 1 July to 30 June of the following year. 

3. The  importa  of the products in question during the last three years ware 

as follows: 

-  2  -

( in  hi  of  pure  alcolhol) 

1986 

1987 

1988 

49.15 

6.0 

10.97 

- 

-

69.28 

277.88 

. 

Benelux 

Denmark 

Germany 
Greece 

Spain 

France 

Ireland 

I t a ly 

Portugal 

United  Kingdom 

- 

- 
-

n . c. 

- 

-

-

n . c. 

85.91 

CE 

' 8 5 . 91 

80.25 

333.03 

In these circonstances, the volume of the Ooranunity tariff quota for the 

period from 1 July 1989 to 30 June 1990 should be fixed at  423 

hectolitres of pure alcohol. 

The drop in imports during the last years can be explained by the fact 

that the former production units of the products in question in the OCT 

ceased their activity during 1983, and the equipment of the distilleries 

has been transferred into the French Overseas Departments. Therefore, 

the imports into the Community reached only  333.03 hi in  1988o 

.^ 

•— 

S> To avoid discouraging investments 

vfriich are envisaged for the Dutch Antilles and to take into account the 

particular situation of this territory, the volume of the quota to be 

opened  should, however,be increased to 15 000 hi of pure alcohol. But for this 

proposed amendment of the quota volume, the previsions of Article 3 

Paragraph 3 of the abovementioned Annex V should be applied. 

-  3  -

4.  Following  the decision  of  the  Court  of  Justice  of 27 September  1988  (case 

51/87),  it  is appropriate  not  to provide  shares  for allocation  aaong 
Member  States. 

In this case it is proposed that  the whole of the quota volutes 

be held as Cose unity reserves to which all Meiber States will 

have access in accordance with the procedure provided  for in 

Article 1(2) of the proposal  for a Regulation. 

As regards the Method of adiini stration to be applied by all Meiber 
States, the Caaaission proposes the "as and when" systea. 

This is the purpose of the attached proposal. 

ANNEX  : proposal  for a  Regulation 

Proposal  for a 
COUNCIL  REGULATION  (EEC) 

opening  and providing  for  the administration  of a  Community 
tari.ff quota  for  rum, arrack  and tafia, originating  in the 
overseas  countries  and  territories  associated  with the 
European  Economic  Community  (OCT) 
(1989/90) 

THE COUNCIL OP THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Economic Oanraunity, 

Having regard to Council Décision 86/283/EBC of 30 June, 1986 en the 
association of the overseas countries and territories with the European 
Economic Community (1) and in particular articles 3 and 4 of its amex V; 

Having regard to the proposal from the Ganmissicn, 

Whereas Annex V to Decision 86/283/EBC provides that rum, arrack and tafia 
shall be  imported into the Oonmunity free of aistons duties within the 
limits of a Oannunity tariff quota; 

Whereas the Gcnnunity has established by Council Decision 86/47/EBC (2) 
extended by Decision 86/645/EBC, arrangements for trade between the Kingdom 
of Spain and the Portuguese Republic on the one hand and the overseas 
countries and territories (OCT) on the other; whereas this Decision 
foresees for the application by the two Member States of the particular 
provisions concerning the quota duties to be applied on imports of products 
originating in the OCT; whereas the annual sice of the quota is to be fixed 
on the basis of a basic annual quantity, calculated in hectolitres of pure 
alcohol, equal to the amount of imports during the best of the past three 
years for which statistics are available; whereas to this quantity a growth 
rate equal to 27 % is applied; whereas the quota period ranges from 1 July 
to 30 June of the following year; 

(1) OJ No L 175, 1.07.1966, p. 1 
(2) 0J No L  63, 5.03.1986, p. 95 
(3) 0J Mb L 380, 31.12.1986, p. 66 

- 2 -

Whereas , Co—unity  statistics for these products and the trend for the 
years 1966 to  1968 show  that.thej 

£  highest  volume of imports  into the Community of the products in question 

originating in the said countries and territories, namely 333,03  hectolitres 
of pure alcohol, occurred  in 1 9S ; 

Whereas, consequently, the quota volume should  therefore be fixed to 423 • 
hectolitres of pure alcohol ; whereas by application of the provisions of 
Article 3, Paragraph 3 of the aboveeentioned Annex V the quota  voluae in 
question  should however be increased to 15 000 hectolitres of pure alcohol. 

t'hersas it is in particular  necessary  to ensure for all Community 

importers  equal and uninterrupted  access to the abovementioned  quota 

and uninterrupted  application of the rates  laid down for that  quota 

to all imports of the products  concerned «into all Member  States  until 

the quota has been used up; 

whereas, following the decision of the Court of Justice of 27 September 

1988  (case  51/87),  — 

-* 

i t» 
appropriate not  to  provide  for  allocation  among  Member 
Sute»,  without  prejudice  to  the  drawing,  on  dM  tariff 
quota,  of  such  quantities  as  they  may  need,  under 
conditions  and  according 
to  be 
determined;  whereas  this  method  of  administration 
requires  dose  cooperation  between  the  Member  States 
and  the  Commission  and  the  latter must  in  particular-be 
able  to  monitor  the  rate at which  the  tariff  quota  is  used 
and  inform  the  Member  States  accordingly; 

to  a  procedure 

Whereas since the Kingdom of Belgium, the Kingdom of the 
Netherlands and  the Grand Duchy of Luxembourg arc united 
wuhin  and  jointly  represented  by  the  Benelux  Economie 
Union,  any operation concerning the adminisrrarion of  the 
quota shares allocated to that economic union may by carried 
out by any one of  its members. 

HAS ADOfTBD  THIS  REGULATION : 

Article  1 

From  1  July  198 9  to  30  June  1990*  the  following 
1. 
products  originating  from  the  OCT  shall  be  imported 
duty  face  into  the  Community  within  the  limit  of  the 
relevant  Community  tariff  quota  mentioned : 

Order  No 

CN  coot  • 

Description 

Quota volume 
(in  hi  of  pure 
alcohol) 

Quota duty 

09.1621 

220t40 10 
220*40 90 
220t«Hl 
22mm  19 

Rum,  amck  and  tafia 

15000 

Free 

2.  The  rules  of  origin  applicable  to  the  products 
referred  to in  paragraph  1 shall  be those set out  in  Annex 
II  to  Decision  867283/EEC 

t h i s. 

3.  Within  the  limit  of 
.  qJOta,  the  Kingdom  of  Spain  and  the  Portuguese 
Republic  shall  apply  customs  duties  calculated 
in 
accordance  with  the  1985  Act  of  Accession  and  Decision 
86747/EEC. 

Artid*  2 

in  Article  1  shall  be 
The  tariff  quota  referred  to 
administered  by  the  Commission,  which  may  take  any 
appropriate  measure  with  a view  to  ensuring  the  efficient 
administration  thereof. 

Artid*  3 

1 

free  circulation 

including  a  request 
for  a  product  covered  by 

If an importer  presents  in a Member State a declaration  of 
entry 
for 
into 
this 
preferential  benefit 
Regulation,  and  if  this  declaration  is  accepted  by  the 
customs  authorities,  the  Member  State  concerned  shall 
draw,  from  the  tariff  quota,  by  means  of  notification  to 
the  Commission,  a quantity corresponding to these  needs. 

The  requests  for  drawing, with  the  indication  of  the  date 
of  acceptance  of 
said  declaration,  must  be 
communicated  to  the  Commission  without  delay. 

the 

The  drawings are granted by the  Commission  on  the basts 
of  the  date  of  acceptance  of  the  declaration  of  entry  into 
free  circulation  by  the  customs  authorities of  the  Member 
State  concerned,  to  the  extent  that  the  available  balance 
so  permits. 

If  a  Member  State  does  not  use  the  quantities  drawn,  it 
shall  return  them  as soon  as possible  to the  tariff  quota. 

If  the  quantities  requested  are  greater  than  the  available 
balance  of  the  tariff  quota, allocation  shall  be  made  on  a' 
pro  rata  basis with  respect  to the  requests. Member Stales 
shall  be  informed  by  the  Commission  of  drawings  made. 

-  4  -

* 

jlrtstff  4 

1.  Member States shall take ail appropriate measures to 
ensure  that  their  drawings  pursuant  to Article  3  enable 
imports  to  be charged without  interruption  against their 

shares  of  the  Community quota. 

2.  Each  Member  State  shall  ensure  that  importers  of 
the products concerned have free access to the quota for 
such times as the balance of the tariff quota so permits. 

3.  Member  States  shall  charge  imports  of  die  said 
products against their drawings as and when the goods are 
entered  with  the  customs  authorities  under  cover  of 
declarations  of  entry  into  free  circulation. 

4.  The  extent  to  which  the  quota  has  been  used  up 
shall  be determined  on  the basis of  the imports charged 
in .accordance  with  paragraph  3. 

Article  i 

At  the  request  of  the  Commission, Member States shall 
inform it of imports actually charged against the quota. 

Article  6 

This Regulation shall enter into force on 1  July 

1989. 

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

Done at Brussels, 

For the Council 
Th* President 

9 

FICHE FINMCEERE 

1. 

Ligne budgétaire concernée  : Chap. 12 art.120 

2. 

Base juridique : art. 136 

3. 

Intitule de la mesure tarifaire : Proposition de règlement du 

Conseil portant ouvertuxeyfe.f^-ti'lïoi  et node de gestion d'un 

contingent tarifaire communautaire pour le rhum,  l'arak et le 

tafia, relevant des codes NC 2208 40 10, 2208 40 90,  2208 90 11 et 

2208 90 19, originaires des pays et territoires d* Outre-mer 

associes à la Oonnunautê européenne  (1989-1990) 

4* 

Objectif  :  Exécution d'une mesure autonome  (Décision relative à 

l'association des PFCM à la CEE) 

5. 

Mode de calcul : 

Qodes KC 

: 2208 40 10, 2208 40 90, 2208 90 11, 2208 90 19 

Volumes des contingents  : 15 000  hl 

Droits à appliquer  : exemption 

Droits du TDC : 
récipients contenant  moins de 2 L: 1 ECU/hL par % vol d'alcool  + 5 ECU/hl 

récipients contenant  plus de 2 l : 1 ECU/hl par % vol d'alcool. 

6. 

Perte de recettes : 
La perte s'élève à 1 519 225 ECU pour  la période du 1.7.1989 au 

30.6.1990. 

(moins de 2 l  = 3 945 hl  (plus de 2 l  = 11  055 hl) 

Pour  la période  1988/89 une perte de 1 517 130 ECU a été inscrite. 

• Jo 

FICHE  D'IMPACT  SUR  LA  COMPETITIVITE  ET  L'EMPLOI 

Cette  proposition  est  formulée  en  conformité  avec  un  engagement  contractuel 

de  la  Communauté.  L'impact  découlant  de  cette  concession  a  été  pris  en 

considération  lors  de  la  prise  de  décision  d'adoption  de  ce  contingent  et 

il  n'aura  pas  un  caractère  sérieux  sur  la  compétitivité  et  l'emploi  dans 

la  Communauté. 

Commission of the  European Communities 

COM(89)  146  final 

Proposal for a 

COUNCIL  REGULATION (EEC) 

opening and providing for the administration of a Community tariff  quota 
for  rum,  arrack  and  tafia,  originating  in  the  overseas  countries  and 
territories  associated  with  the  European  Economic  Community  (OCTs) 
(1989/90) 

(submitted to the Council by the  Commission) 

4.4.1989 

Office for  Official  Publications of the  European Communities 
L - 2985  Luxembourg 

Series:  DOCUMENTS 

1989 -  10 pp. — Format:  21.0 x 29.7  cm 

EN 

ISSN  0254-1475 

ISBN  92-77-47992-2 

Catalogue number:  CB-CO-89-128-EN-C 

COM(89)  146  final 

ISSN 0254-1475 

MENTS 

Proposal for  a 

COUNCIL  REGULATION  (EEC) 

opening  and  providing for  the  administration  of 
a  Community tariff  quota  for  rum, arrack  and 
tafia,  originating  in the  overseas  countries  and 
territories  associated  with  the  European 
Economic  Community  (OCTs)  (1989/90) 

(submitted to the  Council  by the  Commission) 

11 

02 

Catalogue number:  CB-CO-89-128-EN-C 

ISBN  92-77-47992-2 

€ 

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

4.4.1989