Proposal for a COUNCIL REGULATION ( EEC ) establishing provisions for the implementation of the Joint Declaration annexed to Decision No. 1/89 of the EEC­Malta Association Council
Date: 1991-09-23
Institutions: European Commission
Subjects: Malta, agreement (EU), originating product

IOMV1ISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(91) 344 final 

Brussels, 23 September  1991 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

establishing  provisions  for  the  implementation  of  the  Joint  Declaration 
annexed to Decision No. 1/89 of the EEC-Malta Association Council 

Draft 

DECISION OF THE ^EC-MALTA ASSOCIATION COUNCIL 

amending Annex  111 of Protocol No. 2 concerning the 
definition of the concept of "originating products" 
and methods of administrative cooperation 

(presented by the Commission) 

Explanatory Memorandum 

1. 

2. 

The  rules  of  origin  set  out  in  Protocol  2  to  the  EEC-Malta 
Association Agreement  were amended  by Decision  No. 1/89 of  the EEC-
Mai ta  Association  Council  following  the  introduction  of  the 
Harmonized  System.  This  decision  was  made  applicable  in  the 
Community  by  Council  Regulation  (EEC) No.  2229/89  of  18  July  1989 
(1), with effect from 1.1.1990. 

Decision  No.  1/89  is accompanied  by  a  Joint  Declaration  concerning 
the  review  of  the  changes  to  the origin  rules  as  a  result  of  the 
introduction  of  the Harmonized  System.  The  Declaration  states  that 
the  Association  Council  shall,  as  a  matter  of  urgency,  make  an 
examination  of  the  need  to  restore  the  substance  of  any  rule  of 
origin as  it was before Decision No. 1/89, where  it appears that an 
alteration  results  in a situation prejudicial  to the  interest of the 
sectors concerned.  In such cases the Association Council must take a 
decision within a period of three months of the request being made to 
it by either of the parties to the Agreement. 

3. 

On  26  April  1991  Malta  raised  a  practical  problem  which  it  has 
encountered  concerning  embroidered  aprons and overalls falling under 
HS heading No. ex 6211. 

Before  the  Harmonized  System  was  introduced,  women's  aprons  and 
overalls  were  classified  under  CCCN  heading  No.  61.02,  "Women's, 
girls'  and  infants'  outer  garments".  For  embroidered  products  of 
that  heading,  the  origin  rule  which  applied  at  that  time  was 
"Manufacture  from  fabrics, not embroidered,  the value of  which  does 
not exceed 40% of the value of the finished product" 

In the HS, CCCN heading No. 61.02 was split up  into various headings, 
and  the "embroidery" origin rule  is taken up  in the HS transposition 
of  the  origin  rules  in  relation  to  headings  ex  6202,  ex  6204, ex 
6206, ex 6209 and ex 6217. 

However, certain  items covered by the definition  "women's and girls' 
outerwear" of CCCN heading 61.02  fall, in the HS, under  heading No. 
6211; but that HS heading was not  included  in the  list of headings to 
which  the  "embroidery" origin rule applies.  This  has the effect of 
making  the  general  rule  for  ex  Chapter  62  applicable  to  these 
products,  which  requires  manufacture  from  the  yarn  stage. 
Consequently, embroidered  aprons and overalls which  used  to acquire 
originating status now do not. 

The  problem  raised  by  Malta  shows  that  there  are  practical  cases 
where  the result of Decision  1/89  is a situation prejudicial  to the 
interest  of  the  sectors  concerned.  The  Committee  on  Origin  is 
therefore  unanimously  in  favour  of  restoring  the  substance  of  the 
rule  in question as  it was before Decision No. 1/89. 

(1)  OJ MO. L 217, 27.7.1989, p. 1 

4. 

The  practical  example  given  above  already  shows  that  it  is not  really 
possible  to comply  with  the  three-month  period  laid  down  in the  Joint 
Declaration. 

The  first  requirement  in such  cases  is an  in-depth  discussion  by  the 
Committee  on  Origin,  based  on  working  documents  prepared  by  the 
Commission  departments.  The  Commission's  proposal  then  has  to  be 
formally  adopted  and  transmitted  to  the  Council  for  discussion.  The 
Council  then  has  to  adopt  a  common  position  and  the  Association 
Council  has  to  adopt  the  decision  (but  it  is  no  longer  necessary  to 
also  adopt  an  implementing  regulation). 

As  there  are  already  other  cases  up  for  review,  which  have  been 
raised  either  by Member  States or  by  EFTA  countries  in the context  of 
other  Agreements  but  for  products  which  have  identical  origin  rules 
in  the  EEC-Malta  Agreement,  it  would  seem  that  the  decision-making 
process  should  be  speeded  up  by  giving  the  Commission  authority  to 
adopt  the  common  position  in  these  cases,  which  are  of  a  technical 
nature,  with  no political  implications. 

Moreover  Council  Regulations  to  this  effect  (1)  have  already  been 
adopted  in  the  context  of  the  EEC-EFTA  Free  Trade  Agreements,  for 
the  reasons  set  out  above. 

5. 

Consequently,  the  following  measures  are  proposed: 

(i) 

(ii) 

a  Decision  of  the  EEC-Malta  Association  Council  amending 
Annex  111  to Protocol  No. 2 of  the  Agreement; 

a  Council  Regulation  conferring  on  the  Commission  the  power 
to  adopt  the  common  position  on  cases  submitted  under  the 
Joint  Declaration  annexed  to  Decision  1/89  of  the  EEC-Malta 
Assoc iat ion Counc iI. 

(1) 

OJ  L 278, 27.9.1989, pp.  1, 5, 9,  13, 17 and  21. 

Proposal  for*a  *•• 

COUNCIL  REGULATION  (EEC) No. 

/91 

of 

1991 

establishing  provisions  for  the  implementation  of  the  Joint  Declaration 

annexed  to Decision  no. 1/89 of  the EEC-Malta  Association  Council 

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  the  Agreement  establishing  an  Association  between  the  European 

Economic Community  and M a l t a C) was signed on  5 December  1970; 

Whereas  the  Joint  Declaration  annexed  to Decision  No.  1/89  of  the  EEC-Malta 

Association  Council  implemented  in  the  Community  by  Regulation  (EEC)  No. 
2229/89  of  18  July  1989*2)  provides,  under  certain  conditions,  for  a 

review  of  the  changes  made  to  the  rules  of  origin  following  the 

introduction  of  the  Harmonized  System;  whereas,  by  virtue  of  that  Joint 

Declaration,  the  Association  Council  must  take  a  decision  within  a  period 

of  three  months  of  a  request  being  made  to  it by  either  of  the  parties  to 

the Agreement; 

Whereas  this  review  concerns  cases  where  the  transposition of  the  existing 

rules  of  origin  into  the  Harmonized  System  was  not  entirely  neutral  and 

where  it  is necessary  to restore  the substance of  previous  rules of origin; 

(1) 
(2) 

OJ  No. L 61, 14.3.1971, p. 2 
OJ  No. L 217, 27.7.1989, p. 2 

~s~ 

Whereas  for  the  purposes  of  the  Decisions  to  be  taken  by  the  Association 

Council, a common  position  has to be reached  by  the  Community; 

Whereas  this decision-making process makes  it  impossible  to comply  with  the 

three-month  time  limit  laid  down  in  the  Joint  Declaration;  whereas  the 

procedure  should  therefore  be  speeded  up  and  the  Community's  common 

position should  be adopted  by  the Commission  according  to the procédure set 

out  in Article  14 of Council  Regulation  (EEC) No. 802/68 of  27 June  1968 on 

the  common  concept  of  the  origin  of  g o o d s O ),  as  last  amended  by  Council 
Regulation  (EEC) No. 456/91<4); 

HAS ADOPTED THIS REGULATION 

Article 1 

The  Community's  common  position  for  the  purposes  of  the  Decisions  of  the 

EEC-Malta  Association  Council  concerning  a  review  of  the  changes  made  to 

the  rules  of  origin  following  the  introduction  of  the  Harmonized  System 

pursuant  to  the  Joint  Declaration  annexed  to Decision  No.  1/89  of  the  said 

Association  Council  shall  be  adopted  in accordance  with  the  procedure  laid 

down  in Article  14 of  Regulation  (EEC) No. 802/68. 

Article  2 

This  Regulation  shall  enter  into  force  on  the  third  day  following  its 

publication  in the Official  Journal  of  the European  Communities. 

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

a 11 Member  States. 

Done at Brussels, 

For  the CounciI 

The President 

(3)  OJ  No. L 148, 28.6.1968, p. 1 
(4)  OJ  No. L 54, 28.2.1991, p. 4 

Draft 

DECISION NO.  /91  OF  THE  EEC-MALTA  ASSOCIATION  COUNCIL 

Of 

1991 

amending  Annex  111 of  Protocol  No. 2 concerning  the 

definition of  the concept  of  "originating  products" 

and methods of  administrative  cooperation 

THE ASSOCIATION  COUNCIL, 

Having  regard  to  the Agreement  creating  an Association  between  the  European 

Economic Community  and Malta, signed on  5 December  1970, 

Having  regard  to Protocol  No. 2 concerning  the definition  of  the concept  of 

"originating  products"  and  methods  of  administrative  cooperation,  and  in 

particular  Article  25  thereof, 

Whereas  the  Joint  Declaration  annexed  to  Decision  No.  1/89  of  the 

Association  Council  provides  for  a  review  of  the  changes  made  to  the  rules 

of  origin  following  the  introduction  of  the  Harmonized  System  where  the 

amendments  result  in a situation  prejudicial  to  the  interest  of  the  sectors 

concerned;  whereas  it also provides  for  the substance  of  the  rule of  origin 

concerned  to be  restored  as  from  1 January  1990; 

Whereas  the  rule  of  origin  concerning  "other  garments,  women's  or  girls", 

embroidered,  which  was  established  by  Decision  No.  1/89  of  the  Association 

Council,  should  be  amended  to  restore  the  substance  of  this  rule  as  it  was 

before  the  introduction  of  the Harmonized  System, 

HAS DECIDED AS  FOLLOWS: 

Article 1 

* 

In  Annex  III  to  Protocol  No.  2  to  the  Agreement  between  the  European 

Economic  Community  and  Malta  the  wording  of  the  entry  relating  to  HS 

headings  Nos.  ex  6202,  ex  6204,  ex  6206,  ex  6209  and  ex  6217  is  hereby 

replaced  by  that  set out  in the Annex  to this  Decision; 

Article  2 

This Decision  shall  enter  into force on  1 January  1990. 

Done  at  Brussels, 

For  the Association Council 

The  President 

ANNEX 

8 

HS Heading 

Description of product 

Working or processing carried out 
on  non-originating  materials  that 
confers originating status 

(2) 

(3) 

Women * s, girls' and 
babies' clothing and 
"other made-up clothing 
accessories", embroi 
dered 

Manufacture from yarn (1) 
or 
Manufacture from unembroidered 
fabric provided the value of the 
unembroidered fabric used does not 
exceed 40% of the ex works price 
of the product  (1) 

No. 

(1) 

ex 6202 
ex 6204 
ex 6206 
ex 6209 
ex 6211 
and 
ex 6217 

(1)  See  Introductory  Note  7  for  the  treatment  of  textile  trimmings and 

accessories 

9 

ISSN 0254-1475 

COM(91) 344 final 

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