PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 430/87 CONCERNING THE IMPORT ARRANGEMENTS APPLICABLE TO PRODUCTS FAILING WITHIN CN CODES 0714 10 10, 0714 10 90 AND 0714 90 10 AND ORIGINATING IN CERTAIN THIRD COUNTRIES
Date: 1989-11-14
Institutions: European Commission
Subjects: China, GATT, Indonesia, Thailand, cassava, free circulation

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM (89) 565  final 

Brussels, 14  November 1989 

Proposal for a 

COUNCIL REGULATION (EEC) 

amending Regulation (EEC) No 430/87 concerning the import 
arrangements applicable to products failing within CN codes 0714 10 10, 
0714 10 90 and 0714 90 10 and originating in certain third countries 

(presented by the Coaaission) 

EXPLANATORY  MEMORANDUM 

I.  The agreements on imports  of manioc  and  similar  products  signed by  the 
Community  in 1982 with Indonesia and Brazil at  the conclusion of 
negotiations  conducted  pursuant  to Article XXVIII of  the GATT, were 
renewed  for  three years  in 1986.  As the Contracting  Parties  concerned 
did not denounce  the agreements  within  the  time limits  laid down, it has 
meant  that  they will be renewed  automatically  on I January  1990 for a 
further  three-year  period. 

These agreements  relate  to an  import  levy subject  to a ceiling  of 6X 
ad yajorem on given quantities. 

Council  Regulation  (EEC) No 430/87 of  9 February  1987, which  constitutes 
the  legal basis  for the detailed  rules adopted  by the Commission  for  the 
administration  of  the quotas and  specifies  the quantities  of  products 
originating  in countries which are Contracting  Parties  to the GATT and 
which  benefit  under  the abovementioned arrangements should  accordingly  be 
amended. 

The amendment  does not  relate  to products originating  in Thailand.  As 
Thailand, which exports  these products, was not a Contracting  Party  to 
the GATT  In 1982, it concluded a separate agreement with  the  Community 
which was extended  in 1986 and  remains  in force until  31 December  1990. 

II.  As regards  the non-member  countries which are not Contracting  Parties  to 
the GATT, the aim of  the Commission  proposal  is to maintain at  the  level 
existing  in 1989 the annual  quantity  of  imports  benefiting  under  the  levy 
subject  to a ceiling  of  6% ad valorem.  This should  cover  the same 
three-year  period  1990-92.  However, as regards China, the  Commission 
proposes  to fix  this quantity  in respect  of  1990 only. 

III. The Commission also proposes, by an amendment  to Council Regulation  (EEC) 
No 1471/88 of  18 May  1988 concerning  the arrangements  applicable  to 
imports of sweet  potatoes and manioc  starch intended  for certain uses, to 
maintain  the quota  for sweet  potatoes originating  in China and  intended 
for uses other  than human  consumption at  the  1989 level  (600 000  tonnes). 
China will benefit  in 1990 from zero-duty  import  arrangements. 

The opening of  this tariff  quota  in 1988 stemmed  from  the  arrangement 
concluded  in October  1986 with China, which provided  in particular  for 
exports of sweet  potatoes  to the Community  from  that country  to.be 
limited  to a maximum  of 600 000  tonnes per year and  for exports of manioc 
to be  limited  to 350 000 tonnes per year. 

Proposal  for a 

COUNCIL REGULATION  (EEC) No 

/89 

of 
amending  Regulation  (EEC) No 430/37 concerning  the  import 
arrangements applicable  to products  failing within CN codes 0714  10 10, 
0714  10 90 and 0714 90 10 and originating  in certain  third  countries 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty establishing  the European  Economic  Community,  and 

in particular Article  113 thereof, 

Having  regard  to the proposal  from  the  Commission, 

Whereas  Council Regulation  (EEC) No 430/87 of  9 February  1987  (1), as  last 

amended by Regulation  (EEC) No  2411/89  (2), lays down  the arrangements 

applicable  to manioc and similar  products originating  in certain  third 

countries which  qualify on  import  into  the Community  for a levy subject  to a 

ceiling of  6% ad valorem  for  1987, 1988, 1989 and, where applicable, 1990; 

Whereas  the Cooperation Agreement  between  the European  Economic  Community  and 

the Kingdom of Thailand  on manioc  production, marketing and  trade, renewed 

pursuant  to Decision 86/222/EEC  (3), remains  in force  for successive  periods 

of four years;  whereas  the current  period  terminates at  the end of 1990; 

Whereas  the agreements with  Indonesia on  the one hand and  Brazil  (4) and  the 

other supplier countries which are Contracting  Parties  to the General 

Agreement  on Tariffs and Trade  (GATT), which are  the result of  the 

negotiations  conducted  pursuant  to Article XXVIII of  that Agreement  with a 

view to the temporary  suspension of  the tariff concession  granted  by the 

Community  on  imports of products  falling within  former subheading  Ô7.06A of 

the Common Customs Tariff  remain  in force for successive  periods of  three 

years;  whereas  they authorize  the Community  to suspend  that  concession; 

whereas  the next period  runs  from  1 January  1990 to 31 December  1992; 

(1) 0J No L 43, 13.2.1987, p. 9. 
(2) 0J No L 228, 5.8.1989, p. 1. 
(3) 0J No L 155, 10.6.19S6, p. a. 
(4) 0J No L 219, 28.7.1982, pp. DO aud 58. 

Whereas  the Community  has undertaken vis-à-vis  Contracting  Parties of  the GATT 

to accept  imports of certain quantities  of  the products  in question at a  levy 

subject  to a ceiling of  6% ad valorem  during  the period of suspension  of  the 

existing binding;  whereas, pursuant  to the most-favoured-nation  clause, it 

must  treat  third countries which are not Contracting  Parties  to the GATT and 

which benefit  from  that clause  in the same way;  whereas, pursuant  to that 

undertaking, quantities of  imported  products originating  in countries  which 

are not Contracting  Parties  to  the GATT which may qualify  for a levy  subject 

to a ceiling of 6X ad valorem  shouid  r ; fixed at  the  levels  in force for  1989 

for imports  from China and  for  those  from  the other countries  not  Contracting 

Parties  to the GATT; 

« 

Whereas  the quantities  of products qualifying  under  the abovementioned 

arrangements  should be  fixed depending  on  the origin and  the  tariff 

description of  the products  applying, 

HAS ADOPTED THIS  REGULATION: 

V 

- 3 -

Article 1 

Regulation (EEC) No 430/87 is hereby amended as follows: 

1.  The title is replaced by the following: 

"Council Regulation (EEC) No 430/87 of 9 February 1987 concerning the 

import arrangements applicable to certain products covered by CN codes 

0714 10 and 0714 90 and originating in certain third countries". 

2.  Article 1(2) is replaced by the following: 

"2. For products covered by CN codes 0714 10 91, 0714 10 99, 0714 90 11 

and 0714 90 19 and originating«in the third countries indicated below, 

the levy applicable to imports subject to a ceiling of 6% ad valorem 

shall be collected in respect only of the following quantities: 

(a) Indonesia: 825 000 tonnes a year for 1990, 1991 and 1992; 

(b) other countries which are at present Contracting Parties to the 

GATT, with the exception of Thailand and Indonesia: 145 590 tonnes 

a year for 1990, 1991 and 1992; 

(c) China: 350 000 tonnes for 1990; 

(d) third countries which are not Contracting Parties to the GATT, 

other than China, for 1990, 1991 and 1992: 

- 30 000 tonnes a year in the case of products covered by CN codes 

0714 10 99 and 0714 90 19; 

- 2 000 tonnes a year in the case of products covered by CN codes 

0714 10 91 and 0714 90 11. 

The fact that the quotas referred to in (b) and (d) are used up may 

not prevent the release for free circulation, subject to the 

collection of the levy to which a ceiling has been applied, of the 

products in question originating in the least developed countries 

(LLDC) listed in the Annex hereto, within the limit of an overall 

quantity of 5 000 tonnes per year." 

Article 2 

This Regulation shall enter into force on 1 January 1990. 

This Regulation shall be binding in its entirety and directly applicable in 

all Member States. 

F I N A N C I AL 

S T A T E M E NT 

: Date 

1. Budget heading: 100 - Expenditure  Appropriations: ECU 2 846 million (expenditure) 

100 - Revenue 

ECU 1 419 million (revenue) 

2. Title: Amendment to Regulation (EEC) No 430/87 

3. Legal basis: Article 113 of the Treaty establishing the EEC 

4. Aims of project: To lay down limits on imports of products covered by CN codes 
0714 10 91, 0714 10 99, 0714 90 11 and 0714 90 19 from certain 
non-member countries at a levy subject to a ceiling of 6% ad valorem 

5.  Financial implications (ECU million) 
5.0  Expenditure 

- charged to the EC budget 
(refunds/intervention) 
- national administration 
- other 

5.1  Receipts 

- own resources of the EC 
(levies/customs duties) 

- national 

period of 
12 months 

current 
financial year 
(1990) 

following 
financial year 
(1991) 

143 

101 

143 

10 

10 

10 

5.0.1 Estimated expenditure 
5.1.1 Estimated receipts 

1992 

143 
10 

1993 

42 
10 

5.2 Method of calculation: (I tonne of cereals  ~ 1,04 tonnes of manioc in fodder 

equivalent) 

Customs duty: 1,35 m tonnes x $135/tonne x  b% x 0,897 (doliar/ecu ratio) = 

Export refunds on cereals replaced by imported manioc: 

1,35 m tonnes x ECU 100/t x 1,099 (DR) = ECU 142,7 m, rounded up to ECU 143 m 
1,04 
1990: 8,5/ 12 months x 142,7 » ECU 101,1 million (rounded down to ECU 101 million) 
1993: 3,5/12 Months x 142,7. - ECU 41,6 million (rounded up to ECU 42 million) 

ECU 9,8 m, rounded up to ECU 10 m 

6.0 

Can the project be financed from appropriations entered in the relevant 
of the current budget ? 

chapter 
yesXXX 

6.1 

Can the project be financed by transfer between chapters of the current 

budget ? 
XXXXXX 

6.2 

Is a supplementary budget necessary ? 

6.3 

Will future budget appropriations be necessary ? 

XXXXno 

yesXXX 

Observations: The 1990 draft budget takes account of this measure. 

IMPACT ON SMES 

This proposal has no Impact on SMEs 

ISSN 0254-1475 

COM(89) 565 final 

DOCUMENTS 

EN 

11 02 

Catalogue number : CB-CO-89-524-EN-C 

ISBN 92-77-54789-8 

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