Proposal for a COUNCIL REGULATION (EC) extending the validity of Council Regulation (EC) No 665/94 on the introduction of transitional tariff measures for Bulgaria, the Czech Republic, Slovakia, Hungary, Poland, Romania, Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgystan, Latvia, Lithuania, Moldova, Uzbekistan, Russia, Tajikistan, Turkmenistan, Ukraine, Croatia, Bosnia- Herzegovina, Slovenia and the former Yugoslav Republic of Macedonia, until 31 December 1994 to take account of German unification
Date: 1994-12-07
Institutions: European Commission
Subjects: CCT duties, Central and Eastern Europe, Western Balkans, originating product, suspension of customs duties

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94) 580 final 
Brussels, 07.12.1994 

94/0288  (ACC) 

Proposal  for a 

COUNCIL REGULATION  (EC) 

extending the validity of Council Regulation (EC) No  665/94  on the introduction of transitional 
tariff measures for Bulgaria, the Czech Republic,  Slovakia, 
Hungary, Poland, Romania, Armenia, Azerbaijan, Belarus, Estonia, Georgia, 
Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Uzbekistan, Russia, 
Tajikistan, Turkmenistan, Ukraine, Croatia, Bosnia-Herzegovina,  Slovenia 
and the former Yugoslav Republic of Macedonia,  until 31 December  1994 
to take account of German unification 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 

By Regulation  (EC) No  665/94 of 21 March  19941  and by Decision No  1478/94/ECSC of 27 
June  19942, the Community  had authorised  Germany to  maintain for  its five  new  "Landers"  for 
1994 the preferences  which ex-DDR used  to grant  certain countries of Central-and  Eastern 

Europe and  of the current  CIS within the framework  of its policy for  supplying some of its 

processing  industries. 

2. 

As these arrangements  end on 31 December  1994, the German  authorities have on 21 October 

and 9 November  1994 asked  for  a last extention  for  1995. 

Given the experience of administering these measures, the Commission  considers it can  propose 

this last  extension. 

1  OJ No L  83 of 26.03.1994, p. 1. 
2  OJNoL  159 of 28.06.1994, p. 37. 

À 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

Forlaengelse af gyldigheden af Ridets Forordning (EF) nr. 665/94  om indfiarelse  af 
overgangsforanstaltninger for Bulgarian, 
den Tjekkiske  republik, Slovakiet, Ungarn, Polen, Rumxnien, 
Arménien, Aserbajdsjan,  Hvidcrusland, Estland,  Géorgien, 
Kasakhstan, Kirgistan, Letland, Litauen, Moldova,  Usbekistan, 
Rusland, Tadjikistan,  Turkmenistan, Ukraine, Kroatien, 
Bosnien-Hercegovina, Slovenien og den  forhenvacrende 
jugoslaviske  republik Makedonien indul den  31.  decembcr  1994 
for  at tage hensyn til Tysklands  forening 

THE  COUNCIL  OF THE  EUROPEAN  UNION 

Having  regard to the  Treaty  establishing  the  European 
Community,  and  in  particular  Articles  28  and  113 
thereof, 

Having  regard to the proposal  from  the  Commission, 

Whereas 
fully 
the  Common  Customs  Tariff 
applicable  to  the  territory  of  the  former  German 
Democratic  Republic  as  from  3  October  1990,  the 
date of German  unification; 

is 

Whereas  the former  German  Democratic  Republic  had 
agreements  with  Bulgaria, 
concluded  numerous 
Czechoslovakia,  Hungary,  Poland,  Romania, 
the 
USSR  and  Yugoslavia  which  provided  for  a  yearly 
exchange  of  specific  goods  in  maximum  quantities  or 
to maximum  values at a zero  rate of duty;  whereas the 
former  German  Democratic  Republic  had  concluded 
long-term  cooperation  and  investment  agreements  with 
Czechoslovakia,  Poland  and  the  USSR  which  will give 
rise  to  reciprocal  deliveries  of  goods  at  zero  rates  of 
duty for  many years to come; 

Whereas  agreements  of  the  first  type  have  not  been 
renewed  after  31  December  1990  and  agreements  of 
the  second  type  will  be  re:negotiated  at  Community, 
German  or  private  enterprise  level,  but  whereas  this 
process of re-negotiation  will  take  some time; 

Whereas  the  maximum  quantities  or  values  mentioned 
legally  binding 
in  these  agreements  do  not  entail 
obligations  between 
whereas  non-
enforcement  thereof  cannot  therefore  give  rise  to  any 
compensation  by the  Community; 

the  parties; 

it 

is  necessary, 

therefore,  during 

Whereas 
a 
transitional  period  to  attenuate  the  impact  resulting 
from  German  unification  on  both  types  of  agreement 
as  otherwise  serious  repercussions  on  enterprises  in 
former  German  Democratic 
the 
Republic  and 
the  Czech  Republic, 
Slovakia,  Hungary,  Poland,  Romania  Armenia, 
Azerbaijan,  Belarus,  Estonia,  Georgia,  Kazakhstan, 
Kyrgyzstan,  Latvia,  Lithuania,  Moldova,  Uzbekistan, 

in  Bulgaria, 

territory  of 

the 

Russia,  Tajikistan,  Turkmenistan,  Ukraine,  Croatia. 
Bosnia-Herzegovina, 
former 
Slovenia 
Yugoslav  Republic  of  Macedonia  could  result  and, 
indeed, 
these 
countries might  be adversely affected  thereby; 

the  economies  of 

the  stability  of 

and 

the 

in  Bulgaria, 

Whereas  for  these  reasons  it  is  appropriate  to  suspend 
temporarily  the  duties  of the  Common  Customs  Tariff 
for  products  originating 
the  Czech 
Republic,  Slovakia,  Hungary,  Poland,  Romania, 
Armenia,  Azerbaijan,  Belarus,  Estonia,  Georgia, 
Kazakhstan,  Kyrgyzstan,  Latvia,  Lithuania,  Moldova, 
Uzbekistan,  Russia, 
Turkmenistan^ 
Ukraine,  Croatia,  Bosnia-Herzegovina,  Slovenia  ana 
the  former  Yugoslav  Republic  of  Macedonia,  which 
arc  covered  by 
the  abovementioned  agreements 
between  the  former  German  Democratic  Republic  and 
these  countries,  up  to  the  maximum  quantities  or 
values  laid down  therein; 

Tajikistan, 

Whereas  it  is  appropriate,  in  view  of  the  special 
circumstances  of  German  unification,  for  the  said 
suspension  of  duties  to  be  applicable  to  the  products 
concerned  only  in  so  far  as  they  are  put  into  free 
circulation  in  the  territory  of  the  former  German 
Democratic  Republic; 

it 

to  make 
Whereas 
determining  the  origin  of  the  goods 
covered  by the said  suspension  of duties; 

is  necess<rv 

for 
provision 
which  will  be 

Whereas,  in  view  of  the  difficulties  in  applying  these 
measures  and  the  fact  that  some of their  consequences 
arc  not  foreseeable,  it  is  appropriate  to  emphasize  the 
transitional  character  of  these  measures  and  extend 
their  duration  to  a  one-year  period  up  to  31  December 
1995 for  a last time; 

Whereas  a  similar  transitional  arrangement  was  set  up 
until  31  December  1992  bv  Regulation  (EEC)  No 
3568/90  of  4  December  19901  and  by  Decision  No 
90/3788/ECSC7  extended  untilJl  December  1993 by 
Regulation  (EEC)  No  1343/935  and  by  Decision  No 
these  arrangements  have  been 
93/1535/ECSC^; 
replaced  by  Regulation  (EC)  No  665/945  and  by 
Decision No  1478/94/ECSC^for  the year  1994; 

OJNoL353,of  17.12.1990, p. 1. 
OJNo L 364, of 28.12.1990, p. 27. 
OJNoL  133, of 27.05.1993, p. 1. 
OJNoL  151, of 22.06.1993, p. 23. 
OJNoL  83, of 26.03.1994, p. 1. 
OJNoL  159, of 28.06.1994, p. 37. 

2_ 

Whereas  it  is  appropriate  to  provide  for  special 
measures and a procedure to put tnem in place  in case 
the temporary suspension of duties causes or threatens 
to  cause  senous  injury  to  a  branch  of  Community 
industry; 

Whereas  these  measures  arc  solely  related  to  the 
customs  tariff  and,  in  any  event,  must  not  prejudice 
the  application  of  Community  measures  under  the 
common commercial policy. 

HAS ADOPTED THIS REGULATION. 

Article 1 

In  Article  1 of  Regulation  (EC)  No  665/94  the  year 
1994 is replaced by the year 1995 

Article 2 

This Regulation shall eater into force on the third 
day following its publication in the Official  Journal of 
the European Communities. 

It shall apply from 1  January 1995. 

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

Done at Brussels, 

1995. 

For the Council 
The President 

s 

FINANCIAL STATEMENT 

1.  Budget heading involved: Chap. 12 Art. 120 

2.  Legal basis: Art. 28 and  113 of the Treaty 

3.  Title of tariff measure: Proposal for a Council Regulation (EC) extending the validity of Council 

Regulation (EC) No 665/94 of 21 March 1994 on the introduction of transitional tariff measures for 
Bulgaria, the Czech Republic, Slovakia, Hungary, Poland, Romania, Armenia, Azerbaijan, Belarus, 
Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Uzbekistan, Russia, 
Tajikistan, Turkmenistan, Ukraine, Croatia, Bosnia-Herzegovina,  Slovenia and the former Yugoslav 
Republic of Macedonia, until 31 December  1994 to take account of German unification. 

4.  Purpose: to maintain the trade flows between companies in the ex-German Democratic Republic 
and their suppliers, which were traditional within the framework  of relations between former 
members of COMECON. 

5.  Method of calculation: Following information communicated by the German authorities, the 1992 

importations under the said preferential  regime amounted to 786,9 millions of DM. Apart from steel 
and agricultural products, these importations amount to 352 millions DM. The average duty for the 
industrial products being 5 %, the duty losses may be estimated for one year at  17,6 millions lof DM 
(9,16 millions of ecus). 

y 

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