Proposal for a COUNCIL REGULATION ( EEC ) opening and providing for the administration of a Community preferential ceiling for certain petroleum products refined in Turkey and establishing Community surveillance for imports thereof ( 1992 )
Date: 1991-10-15
Institutions: European Commission
Subjects: Türkiye, market supervision, petroleum product, tariff quota

COMMISSION  OF  THE EUROPEAN  COMMUNITIES 

C0M(91) 376  final 

Brussels,  15  October  1991 

i^*SjH«^? 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

opening  and  providing  for  the  administration  of  a Community  preferential 

ceiling  for  certain  petroleum  products  refined  in Turkey  and 

establishing  Community  surveillance  for  imports  thereof 

(1992) 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

Following  negotiations  held  with  Turkey  with  a view  to amending  the 

EEC-Turkey  Association  Agreement  and  the Additional  Protocol  thereto 

consequent  on  the  accession  of  new Member  States,  the Community  signed 

on  30  June  1973  In Ankara  a Supplementary  Protocol, which  entered  into 

force  on  1 March  1986. 

This  Supplementary  Protocol  provides  inter  alia  for  the opening  of  an 

annual  Community  duty-free  tariff  quota  of  340 000  tonnes  for  certain 

petroleum  products  falling within  Chapter  27 of  the  combined 

nomenclature. 

In addition,  the  decision  taken  by  the Council  of  Association  in June 

1973  that  Turkey  should  not  receive  less  favourable  treatment  than 

that  granted  to  the  countries  qualifying  for  generalised  tariff 

preferences  led  the Commission  and  the Turkish  authorities  to  study 

the  problem  of  giving  Turkey  and  the  developing  countries  equivalent 

tariff  treatment. 

The  Community  tariff  quotas opened  for  the  developing  countries  during 

the  years  1971  to  1973 were  converted  with  effect  from  1 January  1974 

into  the  Community  ceilings,  ther  levels of  which  were  calculated  by 

the usual  method. 

-  For  1975  these  volumes  were  fixed  at  the  1974  levels  plus 12%, 

-  for  1976  at  the  1975  levels plus  15%, 

-  for  1977  at  the  1976  levels plus  4.6% overall, 

-  for  1978,  1979 and  1980 at  the  same  levels  as  in 1977, 

-  for  1981  at  the  1980  levels plus 2%, 

-  for  1982  at  the  1981  levels plus 10%, 

-  for  1983  at  the  1982  levels plus  5%, 

-  for  1984 at  the  1983  levels, 

-  for  1985  at  the  1984  levels plus 25%, 

-  for  1986  at  the  1985  levels plus  4.527, 

-  for  1987,  1988, 1989  and  1990 at  the  1986  levels, 

-  for  1991  at  the  1990  levels plus  5%. 

-2-

For  1992, with  the  said  volumes  not  yet  fixed  in  the  framework  of  the 

GSP,  the  Commission  reserves  the  right  to modify  its proposal  at 

Council  level,  to  take  into account  any  increase which  may  be  decided. 

After  studying  the  problem,  the Commission  finally  recognized  that,  in 

view of  the  provisions  of  paragraph  4 of  the Sole Article  of  Annex I 

to  the Additional  Protocol,  the  tariff  quota  of  340 000  tonnes  laid 

down  for  Turkey  should  be  converted,  as  from  1976,  into a  Community 

ceiling,  the volume of  which  should  be  increased  in the  same 

proportIons  as  had  been  applied  under  the Generalized  System  of 

Preferences. 

The only  purpose  of  the attached  proposal  for  a Regulation  is to open, 

for  the  products  In question,  a Community  ceiling  for  1992 of  740  250 

tonnes  and  to establish  Community  surveillance of  imports of  these 

products, taking  into account  the  provisions  of  Regulations  (EEC) No 

2573/87 of  11 August  1987<1) and  1059/88 of  28 March  1988<2>,  laying 

down  the  arrangements  applicable  to  trade of  Spain,  Portugal  and 

Greece  with  Turkey. 

3. 

The  application  of  ceilings  and  the possibility  of  re-establishing 

customs  dut les require  the  adoption  of  precise  common  rules  to be 

applied  uniformly  by  all  Member  States. These  requirements  may  be met 

by  the establishment  of  a Community  surveillance  system  for  goods 

actually  imported  from  the partner  country.  To  this  end,  the  Member 

States  must  take  adequate  measures  to ensure  that  statistical  returns 

can  be  collected  quickly  at  Community  level.  In this  respect,  account 

should  be  kept  only  of  imports of  the products  in question  as  and  when 

they  are  entered  with  the customs  authorities  for  free  circulation. 

Statistics  will  be  compiled  by  each  Member  States  at  the end  of  each 

month  and  will  be  forwarded  to  the Commission  by  the  fifteenth  day  of 

the  following  month  in order  to enable  it  to  telex  to all  Member 

States  complete  statistics  of  imports  of  the  products  in question 

(1) 0J  No  L  250,  1.9.1987,  p. 1 

(2) 0J  No  L  104, 23.4.1988, p. 4 

-3-

during  the  preceding  month.  The  system  of  surveiI lance  wiI I require  a 

diligent  effort  as well  as  close  cooperation  between  the  Member 

States'competent  authorities  and  the  Commission  departments. 

As  regards  implementation  of  the mechanism  for  re-establishing  customs 

duties,  the  following  system  will  be  applied:  as  soon  as  the  total 

monthly  statistics  compiled  by  the  Commission  departments  indicate 

that  75% of  the  celling  has  been  used  up,  the  latter  will  notify  the 

Member  States  and  consultations may  then  be  held,  for  instance  within 

the  Economic  Tariff  Problems  Group,  either  at  a Member  State's  request 

or  on  the Commission's  initiative. The  purpose  of  such  consultations 

will  be  to examine  whether  the  customs  duties  applicable  to  third 

countries  should  be  re-established  when  the  ceiling  has  been  used  up. 

Imports  of  the  products  in quest in will  continue  to  be  notified  on a 

monthly  basis. 

The  Commission  will  thus  be  able  to act  quickly  to  adopt  a  regulation 

re-establishing  customs  duties  on  imports  from  the  partner  country 

until  the  end  of  the  calendar  year. 

In such  a  case,  customs  duties  will  naturally  be  re-established  from 

the  date  indicated  in the  regulation  ending  the  reduction  of  customs 

dut les. 

4. 

The  attached  proposal  lays  down  that  authority  to  apply  the  rules  on 

ceilings  and  re-establishment  of  customs  duties  should  be  transferred 

from  the  Council  to  the  Commission. 

This  proposal  for  a  regulation  merely  gives  a general  framework  within 

which  such  authority  is to  be  exercised  so  as  to enable  the  mechanisms 

envisaged  to  be  adjested  flexibly  and  quickly  in consultation  with  the 

Member  States. 

-4-

Moreover,  it  is precisely  with  this  aim  of  optimum  efficiency  and 

speed  that,  under  the  proposed  regulation,  the  task  of  re-establishing 

the  customs  duties  applicable  to  third  countries  in  respect  of  imports 

from  the  partner  country  will  fall  to  the  Commission. 

Annex:  Proposal  for  a Council  Regulation. 

Proposal  for  a 

COUNCIL  REGULATION  (EEC)  No 

/9l 

of 

opening  and  providing  for  the  administration  of  a Community  preferential  ceiling  for  certain 
petroleum  products  refined  in  Turkey  and  establishing  Community  surveillance  for  imports 
thereof  (1992) 

THE  COUNCIL  Ol  THE  EUROPEAN  COMMUNITIES, 

should, 
surveillance; 

therefore,  be  made  subject 

to  a  system  of 

Having  regard  to  the  Treaty  establishing  the  European 
in  particular  Article  113 
Economic  Community,  and 
thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

Whereas  Article  7  of  the  Supplementary  Protocol  to  the 
Association  Agreement  between  the  European  Economic 
Community  and  Turkey  consequent  on  the accession  of  new 
Member  States  to  the  Community  (')>  which  was  signed  in 
Ankara  on  30 June  1973  and  entered  into  force  on  1  March 
1986  (*), provides  for  the total  suspension  of customs  duties 
applicable  to  certain  petroleum  products  refined  in  Turkey 
falling  within  Chapter  27  of  the  Common  Customs  Tariff 
within  the  limits  of  an  annual  Community  tariff  quota  of 
340  000  tonnes;  whereas,  for  the  products  concerned,  a 
provisional  adjustment  should  be  made  to  those 
tariff 
preferences,  consisting  essentially  of  substituting  for  the 
Community  tariff  quota  a  Community  ceiling  amounting, 
after  successive  increases,  to  740  250  tonnes,  above  which 
the  customs  duties  applicable  to  third  countries  may  be 
re-established; 

the  arrangements  applicable 

the  Council  adopted  Regulation 
laying  down 

(EEC)  No 
Whereas 
1059/88 
to 
Greece's  trade  with  Turkey  (3);  whereas,  the  Council  also 
adopted  Regulation  (EEC)  No  2573/87  laying  down  the 
arrangements  for  trade  between  Spain  and  Portugal,  on  the 
one hand, and  Algeria, Egypt, Jordan, Lebanon, Tunisia  and 
Turkey, on the other  (4); whereas the tariff  quota  in question 
applies  therefore  to  the  current  Community; 

Whereas  the  application  of  ceilings requires  the  Community 
to  be  regularly  informed  of  the  trend  of  imports  of  the 
relevant  products  originating  in  Turkey;  whereas  imports 

Whereas  this  objective  may  be  achieved  by  means  of  an 
administrative  procedure  based  on  offsetting  imports  of  the 
products  in  question  against  the  ceiling  at  Community  level 
as  and  when  these  products  are  entered  with  the  customs 
authorities  for  free  circulation;  whereas  this  administrative 
possible 
procedure  must  make 
re-establishment  of customs tariff  duties as soon as the ceiling 
is  reached  at  Community  level; 

provision 

the 

for 

Whereas  this  administrative  procedure  requires  close  and 
particularly  swift  cooperation  between  the  Member  States 
and  the Commission;  whereas  the  latter  must,  in  particular, 
be  able  to  follow  the  progress  of  quantities  charged  against 
the  ceiling  and  keep  the  Member  States  informed;  whereas 
this  coopération  has  to  be  particularly  close  since  the 
Commission  must  be  able  to  lake  the  appropriate  measures 
to 
is 
reached, 

re-establish  customs 

tariff  duties 

the  ceiling 

if 

HAS ADOPTED THIS  REGULATION: 

Article  1 

From  1  January  to  31  December  19% 

1. 
the  duties 
applicable  to  imports  into  the  Community  of  the  petroleum 
products refined  in Turkey  and indicated  in paragraph  2 shall 
be suspended  in full  within  the limits of  a Community  ceiling 
of  740  250  tonnes. 

Within the limits of this ceiling, the Kingdom of Spain and  the 
Portuguese  Republic  shall  apply  the  duties  calculated  in 
accordance  with  Regulation  (EEC)  No  2 5 7 3 / 8 7. 

The  petroleum  products  to  which  paragraph  I  applies 

2. 
shall  be  the  following: 

N 

CN  code 

Description 

13.0010 

2710 00 

Petroleum oils and oils obtained from  bituminous minerals, other than crude 
preparations not elsewhere specified or included, containing by weight 70% 
or more of petroleum oils or of oils obtained from bituminous minerals, these 
oils being the  basic constituents  of  the  preparations: 
— Light oils: 
— — For  other  purposes: 

(')  OJ  N o l.  361, .11.  12.  1977, p.  2. 
(2)  OJ  No  I. 48,  26. 2.  1986, p.  36. 
(')  OJ  No  1. 104, 23. 4.  1988, p.  4. 
(<)  OJ  No  I. 2S0,  1. 9.  1987,  p.  1. 

I  >I'M  11)11 IOI! 

Oui. 
Nu 

(N 

I  1.0010 
(mut'il) 

2 7 1 0 0 0 21 

2710  00  25 

Spcual  &pnils: 

.  _ 

._  _  White  spirit 

Other 

Other: 

—  —  —  —  Motor  spirit: 

2710  00  31 

—  —  —  —  —  Aviation  spirit: 

2710 00 33 
2710 00 35 
2710 00 37 
2710 00 39 

27100051 
27100055 
27100059 

—  —  —  —  —  Other,  with  a  lead  content: 

—  —  —  —  —  —  Not  exceeding  0,013  g/1 

-

-

-

-

-- 

Exceeding  0,013  g/1 

—  —  —  -  Spirit  type  jet  fuel 

—  -  —  —  Other  light  oils 

— Medium  oils: 

-  For  other  purposes: 

-  —  Kerosene: 

Jet  fuel 

Other 

Other 

—  Heavy  oils: 

—  —  Gas oils: 

2710 00 69 

—  —  —  For  other  purposes 

—  —  Fuel  oils: 

2710 00 79 

— —  —  For  other  purposes 

—  —  Lubricating  oils; other  oils: 

2710 00 95 

—  —  —  To  be mixed in accordance with the terms of additional  note 6  (CN) 

2710 00 99 

—  —  —  For  other  purposes 

to  this  chapter (*) 

2711 

Petroleum  gases  and  other  gaseous  hydrocarbons: 

—  l i q u e f i ed 

2711 12 

—  -  Propane: 

2711 12 99 
2711 13 
2711 13 90 

2712 

-  Other: 

_  ....  _ 

For  other  purposes 

—  -  Butanes: 

—  -  —  For  other  purposes 

Petroleum  jelly,  paraffin  wax,  microcrystalline  petrolum  wax,  slack  wax, 
ozokerite,  lignite wax,  peat  wax, other  mineral  waxes, and  similar  products 
obtained  by  synthesis  or  by  other  processes,  whether  or  not  coloured: 

2712 10 

—  Petroleum  jelly: 

2712 10 10 

—  —  Crude 

2712 10 90 

2712 20 00. 

Other 

—  Paraffin  wax  containing  by  weight  less  than  0,75 %  of  oil 

2712 90 

—  Other: 

—  -  Other: 

—  —  —  Crude: 

_ _ _ . .-  Eor  other  purposes 

Other 

Petroleum coke, petroleum  bitumen and other  residues of petroleum  oils or of 
oils  obtained  from  bituminous  minerals: 

—  Other  residues  of  petroleum  oils  or  of  oils  obtained  from  bituminous 

minerals: 

Other 

2712 90 39 
2712 90 90 

2713 

2713 90 

2713 90 90 

(')  Entry  under  this  code  is  subject  to  conditions  laid  down  in  the  relevant  Community  provisions. 

Imports  of  the  petroleum  products  referred  to  in 

3. 
paragraph  1 shall  be  subject  to  Community  surveillance. 

4. 
Quantities  shall  be  charged  against  the  ceiling  as  and 
when  products  are  entered  with  the  customs  authorities  for 
free  circulation. 

5. 
The  extent  to  which  the  ceiling  is  used.up  shall 
be  determined  at  Community  level  on  the  basis  of  the 
in 
imports  charged  against  it,  in  the  manner  specified 
paragraph  4. 

6.  Member  States  shall  inform  the  Commission,  at  the 
intervals  and  within  the  time  limits  specified  in  Article  3, of 
imports  effected  in  accordance  with  the  rules  referred  to  in 
this  Article. 

Article  2 

As  soon  as  the  ceiling  referred  to  Article  1  (1)  has  been 
reached  at  Community  level,  the  Commission  may  adopt  a 
regulation  re-establishing,  until  the end of the calendar  year, 
the  collection  of  the  duties  normally  applicable. 

Article  3 

Member  States  shall  send  the  Commission  statements  of 
the quantities charged  for  the preceding month  no  later  than 
the  15th  day  of  each  month.  At  the  Commission's  request, 
they  shall  send  statements  of  the  quantities  charged  for 
periods of  10 days, to  be forwarded  within  five clear days of 
the  end  of  each  10-day  period. 

Article  4 

The Commission  shall take all appropriate measures, in c lost-
cooperation  with 
the 
implementation  of  this  Regulation. 

the  Member  States, 

to  ensure 

Article  5 

This  Regulation  shall  enter  into  force  on  1 January  1992 

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

Done  at  Brussels, 

/•or  the  (Council 

The  President 

FINANCIAL RECORD 

1.  Budget  line concerned  : Chap. 12 art. 120 

2.  Legal  base  : art  113 of  the Treaty 

3.  Heading of  the tariff measure  : Proposal  for a Council  Regulation 

(EEC) opening and providing  for  the administration of a Community 

preferential  ceiling for certain petroleum products refined  in Turkey 

and establishing Community  surveillance for  imports thereof  (1992). 

4.  Object ive : Respect of contractual  engagements as regards Turkey. 

5.  Method of calculation : 

CN code: 2710 to 2714 

Volume of  the ceiling  : 740 250 t 

Duty to apply: 0 % 

Normal  duties  : Various duties (average duty  : 5 %) 

6.  Loss of receipts : 

Value 1 tonne  : 68 ecus (average value) 

Total value  : 50 337 000 ecus 

Loss : 

-  in case of total utilisation : 

50 337 000 ecus X 5/100  : 2 516 850 ecus. 

ISSN 0254-1475 

COM(91) 376 final 

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