Proposal for a COUNCIL REGULATION (EEC) extending into 1993 the application of Council Regulations (EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90 applying generalized tariff preferences for 1991 in respect of certain products originating in developing countries, and adding to the list of beneficiaries of such preferences
Date: 1992-10-14
Institutions: European Commission
Subjects: agricultural product, developing countries, generalised preferences, industrial product, textile product

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

C0M(92) 417 final 

Brussels,  14 October  1992 

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Proposal  for a 

COUNCIL REGULATION  (EEC) 

extending  into 1993 the application of Council  Regulations 
(EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90 
applying generalized tariff preferences for 1991 
in respect of certain products 
originating  in developing countries, 
and adding to the  list of beneficiaries of such preferences 

DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES 

Draft 

OF THE EUROPEAN COAL AND STEEL COMMUNITY. 

MEETING WITHIN THE COUNCIL 

extending  into 1993 the application of Decisions 90/672/ECSC and 
90/673/ECSC applying generalized tariff preferences 
for 1991  in respect of certain steel products 
originating  in developing countries 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

In  the  light  of  the  fact  that  conclusion  of  the  Uruguay  Round 
negotiations  has  been  put  off  until  the  end  of  the  year,  making  it 
impossible  to  start  implementing  its  results  until  the  beginning  of 
1994  at  best,  the  Commission  considers  it  preferable  to  postpone 
the  entry  into  force  of  the  new  ten-year  scheme  of  generalized 
preferences  until  1 January  1994.  This  is  because  account  will 
have  to be  taken  of  the  possible  effects  of  some  aspects  of  the  new 
scheme  on  the  conclusion  of  the  negotiations  and,  conversely,  of 
the  potential  effects  of  the  results  of  the  Uruguay  Round  on  the 
GSP. 

It  is  for  these  reasons  that  the  Commission  is  proposing  that  the 
generalized  preference  scheme  in  operation  in  1992  be  carried  over 
once  again  unchanged.  It  reserves  the  right  to  launch  a  debate  on 
a  global  revision  of  the  system  with  the  objective  of  putting  into 
operation  a revised  GSP  in 1994. 

The  only  alteration  that  the  Commission  considers  necessary  at  this 
stage  is  the  addition  of  new  countries  to  the  list  of  GSP 
beneficiaries  in  order  to  take  account  of  the  most  recent 
developments  in  the  international  political  situation,  notably  the 
collapse of  the USSR. 

Following  the  upheaval  they  have  experienced,  the  countries  which 
formerly  made  up  the  USSR  are  now  facing  a  political,  economic, 
social,  moral  and  cultural  crisis  of  such  magnitude  that  it  is  the 
Community's 
to  provide 
comprehensive  assistance. 

possible  means 

to  use  every 

duty 

Since  the  aim  is  to  ease  these  countries'  difficult  transition 
towards  a  free  market  economy  founded  on  democratic  institutions, 
such  assistance  should  not  be  contemplated  without  opening  the 
Community  market  up  to  their  exports  to  the  greatest  extent 
possible.  This  will  provide  their  industrial  and  agricultural  base 
with  the  incentives  needed  for  restructuring,  redeployment  and 
revita Iizat ion. 

In  order  to  open  up  the  Community  market,  the  Commission  considers 
it  necessary,  as  has  been  done  in  the  past  for  other  Eastern 
European  countries  in  the  same  situation,  to  make  use  of  the 
Community  generalized  preference  scheme. 

Since  the  situation  in  question  is  by  definition  a  temporary  one, 
however,  the  Commission  is  proposing  that  access  to  the  GSP  for 
these countries  be  limited  to three years. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

-  2 -

8. The  Commission  furthermore  takes  the  view  that  the  countries  of  the 
former  USSR  should  not  be  given  access  to  the  GSP  scheme  for 
textiles  unless  they  conclude  with  the  Community 
individual 
bilateral  textile  agreements  to  succeed  the  textile  agreement  with 
the  USSR. 
With  regard  to  fishery  products,  however,  the  Commission  proposes 
that  these  countries'  GSP  arrangements  be  identical  to  those  which 
apply  to Estonia, Greenland, Latvia  and  Lithuania. 

9. To  take  into account  the  fact  that  the economies of  the countries  in 
question  are  so  closely  interlinked,  the  Commission  has  decided  to 
begin  preparations  for  the operation  from  1 January  1993 of  a  system 
of  regional  cumulation  of  origin,  similar  to  that  already  used  for 
ASEAN,  the Andean  Pact  and  the CACM,  it being  taken  for  granted  that 
its  functioning  will  be  dependent  on  the  establishment  of  the 
necessary  administrative  procedures  between  the  republics.  The 
Commission  is  also  proposing  that  regional  cumulation  of  origin 
apply  to the Baltic  states. 

10. 

11. 

12. 

13. 

The Commission  considers  that  the advent  of  the single market  on 
1 January  1993 makes  it necessary  to change  the arrangements  for 
textiles,  and  proposes  that  the  tariff  quotas  divided  among  the 
Member  States be  replaced  by  fixed  duty-free  amounts. 
The  effect  of  this  alteration  will  be  to  transfer  accounting 
functions  relating  to preferential  imports  to the Commission,  as 
is  already  the  case  with  industrial  products  other  than 
textiles.  This  change  is  Justified  by  the  fact  that  it  is 
technically  impossible  to deal  with  drawings  on  Community  fixed 
amounts at Member-State  level. 

The  Commission  takes  the  view  that  the  list  of  least-developed 
countries  should  be  aligned  on  that  of  the  United  Nations,  and 
that  Cambodia,  Liberia,  Madagascar,  the  Solomon  Islands, 
Vanuatu,  Zaire  and  Zambia  should  therefore  be  added. 

As  there  have  been  a  number  of  nomenclature  changes,  the 
appropriate  technical  alterations  will  have  to  be  made  to  the 
lists of  products attached  to the GSP  scheme. 

It  is with  the  above  objectives  in mind  that  the  Commission  is 
forwarding  this  proposal  for  a  Regulation  to  the  Council  with  a 
request  that  it  be  adopted  in  time  to  enable  it  to  enter  into 
force on  1 January  1993. 

proposal  for a 

Council  Regulation  (EEC) No  ... 
extending  into 1993 the application of Council  Regulations 
(EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and  3835/90 
applying generalized  tariff  preferences  for  1991 
in respect  of certain  products 
originating  in developing  countries, 
and adding  to the  list of beneficiaries of  such  preferences 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic 
Community,  and  in particular  Articles  113 and 43 thereof, 

Having  regard  to the proposal  from  the Commission, 

Having  regard  to the opinion of  the European Parliament,1 

Having  regard  to the opinion of  the Economic and Social  Committee,2 

Whereas,  in accordance with  the offer  it made within  the United  Nations 
Conference  on  Trade  and  Development  (UNCTAD),  the  European  Economic 
Community  introduced  generalized  tariff  preferences  in  1971  for 
finished  and  semi-fini shed  industrial  products,  textile  products  and 
some  agricultural  products  from  developing  countries;  whereas  the 
initial  ten-year  period  of  application  of  this  system  of  preferences 
ended on 31 December  1980; 

Whereas  the positive role played  by this system  in  improving  access for 
the  developing  countries  to  the  markets  of  the  preference-giving 
countries  was  recognized  at  the  ninth  session  of  the  UNCTAD  Special 
Committee  on  Preferences;  whereas  It  was  agreed  at  that  session  that 
the  objectives  of  the  generalized  system  of  preferences  would  not  be 
fully  achieved  by  the end  of  1980, and  that  it should  consequently  be 
extended  beyond  the  initial  period,  an  overall  review  of  the  system 
having started  in 1990; 

Whereas  the  review of  the system  has continued  into  1991  and  1992, and 
the  progress  of  the work  makes  it unlikely  that  a  scheme  based  on  new 
guidelines  will  be  established  by  1 January  1993;  whereas  the  review 
is, however,  likely to be completed  during  1993; 

1  0 J 
2  Opinion  delivered on 

- 4 -

Whereas  the  validity  of  the  1992  scheme  of  generalized  preferences 
should be provisionally extended  into 1993, pending  the outcome of the 
review; 

Whereas  Regulations  (EEC)  No 3831/90,1  (EEC)  No 3832/90,2  (EEC) 
No 3833/90,*  (EEC)  No 3834/904  and  (EEC)  No 3835/905  were  extended 
into  1992  by  Regulations  (EEC)  No 3587/916  and  (EEC)  No 3588/91,7 
supplemented  and  amended  by  Regulations  (EEC)  No 3302/91,8  (EEC) 
No 3900/91,9 
(EEC) 
(EEC) 
No 1433/9212 and (EEC) No 1509/92,13 

No 282/92,10 

No 548/92,11 

(EEC) 

Whereas  in the  light of  the advent of  the single market on  1 January 
1993, tariff quotas divided among the Member States should be replaced 
by  fixed  duty-free  amounts, and  whereas  Regulation  (EEC) No 3832/90 
must therefore be amended; 

Whereas  the effect  of  this alteration will  be  to  transfer  accounting 
functions relating  to preferential  imports to the Commission; whereas 
this change  is Justified by the fact that  It is technically  impossible 
to deal with drawings on Community fixed amounts at Member-State level. 

Whereas  in  the  interests  of  efficient  Joint  administration  of  the 
fixed  amounts,  the Member  States will  be  responsible  for  collecting 
requests  for  drawing  and  notifying  importers  of  the  Commission's 
response  to  those  requests,  in  a  framework  of  close  cooperation 
between  the  Member  States  and  the  Commission,  with  the  Commission 
informing  the Member  States of  the degree  to which  the  fixed amounts 
have been drawn on; 

Whereas the economic situations of Ukraine, Belarus, Moldova, Russia, 
Georgia,  Armenia,  Azerbaijan,  Kazakhstan,  Turkmenistan,  Uzbekistan, 
Tajikistan  and  Kyrgyzstan  have  worsened  to  the  point  that  they  face 
difficulties comparable  to  those  experienced  by  countries which  have 
in the past been eligible for preferences; 

Whereas  Ukraine,  Belarus,  Moldova,  Russia,  Georgia,  Armenia, 
Azerbaijan,  Kazakhstan,  Turkmenistan,  Uzbekistan,  Tajikistan  and 
Kyrgyzstan  should  temporarily  be  made  eligible  for  the  generalized 
system  of  preferences  in  order  to  increase  their  exports  and  thus 
accelerate economic development, promote  industrialization and  improve 
growth rates; 

1  0J L 370, 31.12.1990. p.1. 
2  OJ L 370, 31.12.1990, p.39. 
3  0J L 370, 31.12.1990, p.86. 
4  0J L 370. 31.12.1990. p.21. 
5  0J L 370, 31.12.1990, p.126. 
6  0J L 341, 12.12.1991, p.1. 
7  OJ L 341, 12.12.1991, p.6. 
8  0J L 315, 15.11.1991. p.46. 
9  0J L 368. 31.12.1991. p.11. 
10 0J L 31, 7.2.1992, p.1. 
11 OJ L 63, 7.3.1992. p.49. 
12 OJ L 151, 3.6.1992, p.7. 
13 0J L 159, 12.6.1992, p.1. 

-  5 -

Whereas  the  treatment  established  in  1992  for  fishery  products  from 
Estonia,  Latvia  and  Lithuania,  which  is  identical  to  that  applied  to 
Greenland,  should  now  be  applied  to  fishery  products  from  Ukraine, 
Belarus,  Moldova,  Russia,  Georgia,  Armenia,  Azerbaijan,  Kazakhstan, 
Turkmenistan, Uzbekistan, Tajikistan and  Kyrgyzstan; 

Whereas  the  list of  least-developed countries should  be aligned  on that 
of  the United  Nations, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Subject  to  the  following  Articles,  Regulations  (EEC)  Nos  3831/90, 
3832/90,  3833/90,  3834/90,  3835/90  and  3900/91,  applying  generalized 
tariff  preferences  in  respect  of  certain  products  originating  in 
developing  countries  shall  apply  mutatis  mutandis  from  1 January  1993 
until  31 December  1993. 

References  in  the  Regulations  mentioned  in  the  first  subparagraph  to 
specific  dates  in the years  1991, 1992 or  1993 shall  be  taken  to  refer 
instead  to the same dates  in the years  1992, 1993 or  1994 respectively. 

Regulation  (EEC) No 3832/90  is amended  as follows: 

Article 2 

1. The  references  to  "tariff  quotas"  and  "quotas"  in  the  first  indent 

of Article  1(1), Article  1(5) and Article  14 are  deleted. 

2. Article 8(1)  is replaced  by  the following: 

"The  total  suspension  of  customs  duties within  the  framework  of  the 
fixed amounts  referred  to  In Article  1(1) concerns  the categories of 
products  in Annexes  I and  II, for  each  of  which  the  volume  of  the 
amount  is specified  individually  in column 6 of  those  Annexes, with 
regard  to  the  countries or  territories  specified  in column 5 of  the 
same Annexes." 

3.  In Annex  I (pages 47  to 51), the heading  for  columns  6a, 7a, 6b  and 

7b  is replaced  by  the following: 

M 

Fixed  duty-free  amounts 

1.1.1993  - 30.6.1993 

1.7.1993  -  31.12.1993 

(6i) 

(6ii) 

- 6 -

The amounts  in columns 6a and 7a  shall  added  and  the  total  inserted 
in column 61 ; the same shall  be done with  the amounts  in columns 6b 
and 7b, and  the  total  inserted  In column  611,  in each  case  opposite 
the name of  the appropriate country or  territory. 

4.  In  Annex  I  (pages  52  to  74), the  heading  for  columns  6  and  7  is 

replaced by  the following: 

•Fixed duty-free amounts 
(6)" 

The amounts  in colurns 6 and 7 shall  be added  and  the  total  inserted 
in  column 6,  in  each  case  opposite  the  name  of  the  appropriate 
country or  territory. 

5. Footnote  (1) on  page  47  is  deleted.  Footnote  (1)  on  page  67  is 

replaced by  the following: 

"For  this country,  the fixed duty-free amount  Is calculated  In items, 
and will  be 168 000 items." 

6. Section  I is deleted.  Sections  II,  III and  IV are  renumbered  I, li 

and  111 respect IveIy. 

7. The first  subparagraph of Article 15(2)  is deleted. 

8. Articles 8 to 18 are renumbered  2 to 11 respectively.  References  to 

those Articles are altered  accordingly. 

Article  3 

The  following  are  added  to  Part A  of  Annex  III  to  Regulation  (EEC) 
No 3831/90, Part A of Annex  V to Regulation  (EEC) No 3832/90 and Part  A 
of Annex  III to Regulation  (EEC) 3833/90: 

072 
073 
074 
075 
076 
077 
078 
079 
080 
081 
082 
083 

Ukraine 
Belarus 
Moldova 
Russ i a 
Georgia 
Armen i a 
Azerbaijan 
Kazakhstan 
Turkmenistan 
Uzbekistan 
Tajikistan 
Kyrgyzstan 

..;-*.••¥*--. 

- 7 -

Footnote (c) in Annex  II to Regulation (EEC) No 3833/90  is replaced by 
the fol lowing: 

"(c)  Preferences are not to be granted  in respect of products 
marked with two asterisks, originating in Armenia, 
Azerbaijan, Belarus, Estonia, Georgia, Greenland, 
Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova. Russia. 
Tajikistan. Turkmenistan. Ukraine or Uzbekistan." 

Article 4 

1. The following are added to Annex  IV to Regulation  (EEC) No 3831/90. 
Annex VI  to Regulation  (EEC) No 3832/90 and  Annex V  to Regulation 
(EEC) No 3833/90: 

268 
322 
370 
378 
696 
806 
816 

Liberia 
Zaire 
Madagascar 
ZambI a 
Cambod i a 
Solomon Islands 
Vanuatu 

2. A  footnote  reference  " (2)N  is added  to the names of  the countries 

in question  in part A of  Annex  III  to Regulation  (EEC) No 3831/90 
and in part A of Annex V to Regulation (EEC) No 3832/90. 

3. The countries  in question are deleted  from part A of Annex  III to 

Regulation (EEC) No 3833/90. 

Article 5 

The technical  amendments to the Annexes to Regulations  (EEC) No 3831. 
(EEC) No 3832/90. (EEC) No 3833/90 and  (EEC) No 3835/90 are contained 
in the Annex to this Regulation. 

Article 6 

This Regulation shall enter  into force on 1 January 1993. 

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

Done at Brussels, 

For the Council, 

The President 

8-

ANNEXI a 

1.  The following products shall be added to Annex I to Regulation (EEC) N°  3831/90: 

KjSSS^^^SSKSSSSSSSE^SIISESSSESSCBBSSESSSSBESB^^BESSESBBmSSSS 

Order N° 

CN-code 

I 

I 

I  10.0072 

10.0074 

10.0102 

10.0104 

10.0118 

10.0161 

I

2835 25 

2835 26 

2849 20 00 

2902 30 10 

2903 22 00 

2909 42 00 

Ceiling 

(ECU) 

410.000 

280.000 

3.343.000 

300.000 

197.000 

180.000 

**{f'". 

. jtfft— *?  *»'": 

2.  In Annex 1 to Regulation (EEC)  N°  3831/90,  the following  countries  shall be added in 
column 4 with regard to the following products: 

Order N* 

10,0040 

10.0110 

10.0120 

10.0140 

10.0282 

10.0400 

Countries 

Russia, Kazakhstan, 
Ukraine, Belarus 

Russia 

Russia, Kazakhstan, 
Ukraine,  Belarus 

Russia, Kazakhstan, 
Ukraine,  Belarus 

Russia 

Russia, Kazakhstan, 
Ukraine, Belarus 

.  • . . .,  i 

i 

-II  • ••  —< MM M _ _ _ _ _ . » _ - - - « < p - l f c M _ _ - --  M

H

-

M

H

-^ 

—.11 

i 

•  •  •  — 

ii  i 

10.0402 

10.0407 

10.0408 

10.0410 

10.0420 

10.0610 

Russia,  Kazakhstan, 
Ukraine, Belarus 

Russia, Kazakhstan, 
Ukraine, Belarus 

Russia, Kazakhstan, 
Ukraine, Belarus 

Russia, Kazakhstan, 
Ukraine, Belarus 

Russia, Kazakhstan, 
Ukraine,  Belarus 

Russia,  Ukraine, 
Belarus 

10.0630 

Russia,  Ukraine, 

10.0670 

10.0840 

10.0150 

10.0840 

Belarus 

Russia,  Ukraine 

Russia, Kazakhstan, 
Ukraine 
Russia,  Kazakhstan, 
Ukraine 

Russia, Kazakhstan, 
Ukraine 

I 
J 
I 
I 

10.0925 

Russia,  Ukraine 

t

-10-

I. 

Amendments to the annexes of Regulation  (EEC) No 3831/90 

II.  Amendments to the annexes of Regulation (EEC) No 3832790 

I H.  Amendments to the annexes of Regulation  (EEC) No 3833/90 

IV.  Amendments to the annexes of Regulation  (EEC) No 3835/90 

•-11 -

Draft 

DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF 
THE MEMBER  STATES OF THE EUROPEAN COAL AND STEEL  COMMUNITY, 
MEETING WITHIN THE COUNCIL 
extending  into 1993 the application of Decisions 90/672/ECSC and 
90/673/ECSC applying generalized  tariff  preferences 
for  1991  in respect  of certain steel  products 
originating  in developing  countries 

(92/ 

/ECSC) 

THE  REPRESENTATIVES  OF  THE  GOVERNMENTS  OF  THE  MEMBER  STATES  OF  THE 
EUROPEAN  COAL AND STEEL COMMUNITY, MEETING WITHIN THE COUNCIL, 

In agreement  with  the Commission, 

HAVE DECIDED AS FOLLOWS: 

Article 1 

Decisions  90/672/ECSC1  and  90/673/ECSC2  applying  generalized  tariff 
preferences  in  respect  of  certain  steel  products  originating  in 
developing  countries  shall  apply  mutatis  mutandis  from  1 January  1993 
until  31 December  1993. 

Where  the  Decision  mentioned  in  the  first  subparagraph  refer  to 
specific  dates  in the years  1991  or  1992, those dates  shall  instead  to 
read as dates  in the years  1992 or  1993 respectively. 

Article 2 

1. The following are added  to Annex  IV to Decision 90/672/ECSC : 
268 Liberia 
322 Zaire 
370 Madagascar 
378 Zambia 
696 Cambodia 
806 Solomon  Islands 
816 Vanuatu 

2. A footnote  reference  "(2)M  Is added  to the names of  the countries  in 
question  in part A of Annex  111  to Decision 90/672/ECSC. 

Article 3 

The  technical  amendments  to  the  Annexes  to  Decision  90/672/ECSC  are 
contained  in the Annex  to this Regulation. 

Article 4 

This Decision shall  enter  into force on  1 January  1993. 

Done at Brussels, 

The President 

1  OJ L 370, 31.12.1990, p.133 
2  OJ L 370, 31.12.1990, p.151 

- 12 -

ANNEX 

Amendments  to Annex  I to Decision  90/672/ECSC 

FINANCIAL  STATEMENT 

- 13 -

The  financial  impact  of  the generalized  tariff  preferences  extended  to 
developing  countries  is hard  to  quantify  accurately  because  the  rules 
for granting such preferences are flexible, and because: 

-  the  concessions  are  complex  and  a  distinction  is  made  between 
countries;  in particular, there are quotas and  tariff  ceilings which 
differ  from product  to product  and beneficiary  to beneficiary; 

-  the production  structures of  the developing  countries mean  that  the 
degree  to  which  they  are  able  to  comply  with  the  rules  of  origin 
varies; 

-  incomplete  use  is made of  the advantages  offered,  either  because of 
lack  of  Information,  or,  in cases  in which  the  usual  duty  is  low, 
because of a  lack of economic gain. 

These  eons (derations  lie* at  the  root  of  the  considerable  disparity 
between  the  overall  offer  made  available  from  1 January  and  the 
quantities  Imported  under  preferential  arrangements  by 31 December  of a 
given year. 

Taking as  its basis the overall  GSP offer  of  ECU 27.8 billion  for 1992, 
and  taking  account  of  the  changes  made  (incorporation  of  the  CIS  and 
Georgia, withdrawal  of Czechoslovakia, Hungary  and Poland),  the overall 
GSP offer  for  1993  is estimated  to be ECU 26.539 billion. 

With  weighted  average  common  customs  tariff  duties  applicable  to  the 
products  in  question  of  between  5.5%  and  6%,  and  an  average  take-up 
rate of 70%, the estimated  figures for customs revenue uncollected  as a 
result  of  the  operation  of  the  Community  GSP  scheme  in  1993  are 
ECU  1.022 billion to ECU  1.115 billion. 

ISSN 0254-1475 

COM(92) 417 final 

DOCUMENTS 

EN 

li  02 

Catalogue number : CB-CO-92-445-EN-C 

ISBN 92-77-48014-9 

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