Proposal for a COUNCIL REGULATION (EC) amending council regulation (EC) nr 3448/93 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products
Date: 1996-02-14
Institutions: European Commission
Subjects: GATT, agricultural product, agro-industry, customs tariff, export refund

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  14.02.1996 
COM(%) 49  final 

96/003 9(CNS) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

amending Council Regulation (EC) No 3448/93 laying down the trade 
arrangements applicable to certain goods resulting from the processing of 
agricultural products 

(presented by the  Commission) 

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Explanatory  memorandum 

Introduction 

The  agreements  concluded  in  the  Uruguay  Round  multilateral  negotiations  change  the 
method  of  determining  the  import  duties  on  goods  covered  by  Regulation  (EC) 
No 3448/93  (tariff  system),  provide  the  option  of  imposing  additional  duties  on  some 
goods  under  the  conditions  laid  down  in  Article 5  of  the  Agreement  on  Agriculture 
concluded  in  the  framework  of  the  multilateral  negotiations  and  impose  a  degree  of 
discipline on granting refunds  for agricultural  products exported  in the form  of goods not 
covered by Annex II to the Treaty. 

Certain  amendments  therefore  have  to  be  made  to  Regulation  3448/93  to  delete  the 
provisions  no  longer  applicable,  to  amend  the  provisions  on  agricultural  protection,  to 
introduce  general  rules  for  determining  the  additional  duties  and  to  add  certain 
management rules to ensure compliance with the commitments made on export refunds. 

Since  the  adoption  of  Regulation  3448/93  the  preferential  agreements  concerning  the 
trade  arrangements  applicable  to  goods  not  covered  by  Annex II  to  the  Treaty  have 
continued  to  evolve.  Experience  shows  that  certain  changes  are  desirable  to  provide  a 
firmer framework  for the rules on management of these various agreements. 

1. 

Amendments due to the tariff system 

As regards the goods in Table  1 in Annex B to the Regulation, the GATT tariff  provides 
for  a straight-line  reduction  of the ad valorem duties (the non-agricultural  component  of 
the charge) on the one hand, plus replacement  of the variable components  corresponding 
to the variable  levies on imports of agricultural  products by the specific  amounts  offered 
by the Community  in the Uruguay  Round multilateral  negotiations on the other. 

As  a  result,  the  provisions  in  Regulation  (EC)  No 3448/93  concerning  the  method  of 
calculating  the  variable  components  must  be  deleted,  the  provisions  on  the  additional 
duties on sugars and flours must be amended and it must be specified  that the agricultural 
components  applicable  from  now  on  shall  be  published  in  the  Community  Customs 
Tariff. 

Regulation  1294/94 implementing Article  13 of Regulation (EC) No 3448/93 is no longer 
applicable  for  determining  the  agricultural  components  applicable  to  countries  which 
have  not  concluded  an  agreement  with the  Community  providing  for  the  application  of 
preferential  trade  arrangements  for  imports.  Nevertheless,  it  remains  in  force  for 
determining the reduced agricultural components. 

2. 

Introduction  of  general  rules  for  determining  the  additional  duties 
potentially  applicable to certain goods (special safeguard  clause) 

Certain  goods  covered  by  Regulation  (EC)  No 3448/93  may  be  liable  to  an  additional 
duty  under  the  conditions  laid  down  in Article 5 of the  Agreement  on  Agriculture.  To 

y 

allow application of this measure where appropriate, the proposal is to add an Article 10a 
containing, mutatis mutandis, the terms of the corresponding  Articles added  to the basic-
Regulations  on  the  common  organization  of  each  market  in  the  agricultural  sector  by 
Regulation (EC) No 3290/94.' 

3. 

Management  of  the  refunds  applicable  to  certain  agricultural  products 
exported in the form of goods not covered by Annex II to the Treaty 

The  Community  has  given  an  undertaking  not  to  grant  refunds  beyond  a  set  maximum 
amount  per  budget  year  for  agricultural  products  exported  in  the  form  of  goods  not 
covered  by  Annex II  to  the  Treaty.  This  amount  covers  exports  of  whisky,  which  are 
covered  by  the  special  measures  provided  for  by  Regulation  (EEC)  No 2825/93,  and 
exports of other non-Annex II goods. 

The  amounts  set  in  the  Agreement  (for  EUR-15)  range  from  ECU 717 million  for  the 
1995-96  budget  year  to  ECU 415 million  for  2000-2001  and  subsequent  years. 
Moreover, the unit refund  for agricultural products exported in the form of goods may not 
exceed the amount which may be granted for exports of the same product in the unaltered 
state. 

On the other hand, no restrictions are imposed on the volumes exported. 

While  the  list  of  agricultural  products  eligible  for  refunds  forms  an  integral  part  of  the 
Agreement, the  list of goods  in the form  of which they may be exported  is by no means 
exhaustive. 

To allow integrated management of the refunds,  it is proposed that the granting of export 
refunds  should  be made  subject  to presentation  of a certificate  and that the  Commission 
may decide a uniform  reduction  in the refund  rates in relation to the amounts granted  for 
exports of the products in the unaltered state, where the budget situation so requires. 

4. 

Amendment  of  the  general  rules  for  management  of  the  preferential 
agreements concerning goods not covered by Annex II to the Treaty 

Apart from  the technical  adjustments  necessitated  by the tariff  system, the proposal  is to 
lay  down  certain  criteria  for  application  of  agricultural  components  lower  than  those 
applicable  erga omnes  in  order  to  take  account  of  the  specific  situation  as  regards 
agricultural  prices  in  certain  countries  which  have  concluded  preferential  agreements 
with the Community. 

Also, the same rate must be used for converting the ECU into national currency for all the 
agricultural components of the charge, whether or not reduced. 

Another proposal  is to provide the same rules for the adoption of management  measures 
for the reduced-duty  import quotas, whether the quota covers only the agriculturalor  also 
the non-agricultural component of the charge. 

OJ No L 349, 31.12.1994, p.  105. 

The amounts emerging from these agreements are to be published by the Commission. 

5. 

Other measures 

It  is  proposed  that  the  Commission  make  the  various  amendments  dictated  by  the 
changes  in  the  Combined  Nomenclature  to  the  various  regulations  on  trade  in  goods 
resulting from the processing of agricultural  products to make them easier to understand. 

3 

Council Regulation 

amending Council Regulation (EC) No 3448/93 laying down the trade 
arrangements applicable to certain goods resulting from the processing of 
agricultural  products 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from  the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas Council Regulation  (EC) No 3448/93  of 6 December  19931 laid  down the trade 
arrangements  applicable  to  certain  goods  resulting  from  the  processing  of  agricultural 
products; 

Whereas  following  the  entry  into  force  of  the  agreements  resulting  from  the  Uruguay 
the  Community  negotiated  various  agreements 
Round  multilateral  negotiations, 
(hereinafter  referred  to as the "GATT agreements");  whereas several of those agreements 
concern  agriculture,  particularly the Agreement  on Agriculture (hereinafter  referred  to  as 
"the  Agreement");  whereas  under  the  Agreement  the  Community  no  longer  applies 
variable levies to  imports  of agricultural  products  or variable  components;  whereas  as a 
result  a number of provisions  of Regulation  (EC) No 3448/93  have to be adapted  to this 
new  situation  to  make their  meaning clear;  whereas other  provisions  are now  no  longer 
applicable; 

Whereas under  certain  preferential  agreements  reductions  are granted  on the  agricultural 
components within the framework  of the Community's commercial  policy; whereas these 
reductions are established with reference to the agricultural components applicable to non-
preferential  trade;  whereas  these  reduced  amounts  must  therefore  be  converted  into 
national currency at the same rate as applied for conversion of the non-reduced amounts; 

Whereas under certain preferential  agreements concessions are granted within quota limits 
relating to both agricultural and non-agricultural protection,  or non-agricultural  protection 
is subject  to  reductions  as a consequence of such agreements;  whereas it is essential  that 
the  management  of the  non-agricultural  part  of protection  should  be  subject  to  the  same 
rules as for the agricultural part; 

OJ No L 318, 20.12.1993,  p.  18. 

in  accordance  with 
Whereas  the  agreements  that  the  Community  has  concluded 
Article 228 of the Treaty concerning processed agricultural  products provide for  limits on 
the  amounts  which  can  be  granted  to  agricultural  products  listed  in  the  Agreement  and 
exported  in the form  of goods not covered by Annex II to the Treaty;  whereas this  limit 
is  expressed  solely  in  the  form  of  a  global  amount  covering  all  exports  in  the  form  of 
such goods; 

Whereas article  11 of the Agreement lays down that the amount which can be granted to 
an  agricultural  product  exported  in  the  form  of  goods  not  covered  by  Annex II  to  the 
Treaty  may  not exceed  the amount granted  when this agricultural  product  is exported  in 
the unaltered  state;  whereas on the other hand, in order to respect the undertakings  laid 
down in terms of amounts, it may become necessary to reduce the rates of the refunds  on 
exports  in  the  form  of  goods  not  covered  by  Annex II  to  the  Treaty;  whereas  these 
reductions  should  be fixed uniformly;  whereas Article 5 of the  Agreement  provides  for 
the  application  of  additional  customs  duties  in  order  to  maintain  a  minimum  level  of 
protection  against  eventual  adverse  effects  on  the  market  which  could  result  from  the 
tariff  system;  whereas  these  additional  duties  also  apply  to  certain  sensitive  goods  not 
listed in Annex II to the  Treaty, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 3448/93 is hereby amended as follows: 

1. 

In Article  1, paragraphs  1  and 2 shall be replaced by the following: 

This  Regulation  determines  the  trade  arrangements  applicable  to  certain 

"1. 
goods defined  in Annex B to this Regulation. 

2. 

For the purposes of this Regulation: 

"agricultural  products"  shall  mean  products  covered  by  Annex II  to  the 
Treaty, 

"goods"  shall  mean  products  not  covered  by  Annex II  to  the  Treaty  and 
listed in Annex B. 

3. 

For the purposes of application of certain preferential  agreements: 

"agricultural  component"  shall mean the part of the charge  corresponding 
to  the  Community  Customs  Tariff  duties  on  the  agricultural  products 
listed  in  Annex  A  or,  where  appropriate,  the  duties  applicable  to 
agricultural  products  originating  in  the  countries  concerned  for  the 
quantities  of these agricultural  products considered  to have been used,  as 
referred to in Article  13 ; 

r 

the  charge 
"non-agricultural  component"  shall  mean 
corresponding  to  the  Common  Customs  Tariff  duties,  reduced  by  the 
agricultural  component  defined  above; 

the  part  of 

"basic  products"  shall  mean  certain  agricultural  products  covered  by 
Annex  A  to  this  Regulation  or  assimilated  to  those  products  or  resulting 
from  their  processing,  for  which  the  duties  published  in  the  Common 
Customs  Tariff  serve  to  determine  the  agricultural  component  of  the 
charge applicable to the goods." 

Paragraph  3 shall be renumbered paragraph  4. 

2. 

Chapter  1 shall be replaced by the  following: 

"CHAPTER 1 

importation 

Section  I 

Trade  with  nan-member  countries 

Article  2 

1.  Save  where  otherwise  provided  in  this  Regulation,  the  Common  Customs 
Tariff  duties shall  apply  to the goods listed  in Annex  B. 

For  the  goods  listed  in  Table  1  of  Annex  B,  the  charge  shall  consist  of  an  ad 
valorem  duty,  designated  the  "fixed  component",  and  a  specific  amount  set  in 
ECU, designated  the  "agricultural  component". 

For  the  goods  listed  in  Table 2  of  Annex  B,  the  agricultural  component  of  the 
charge  shall  be  part  of  the  single  ad  valorem  duty  applicable  to  imports  of  such 
goods. 

2.  Subject  to  Articles  10  and  10a,  the  levying  of  any  customs  duty  or  charge 
having equivalent  effect  other than the charge provided  for  in paragraph  1 shall  be 
prohibited. 

3.  The  general  rules  for  interpretation  of  the  Combined  Nomenclature  and  the 
special  rules  for  application  of  the  Nomenclature  shall  apply  for  the  purposes  of 
classification  of  the  products  covered  by  this  Regulation;  the  tariff  nomenclature 
resulting  from  application  of  this  Regulation  shall  be  included  in  the  Common 
Customs  Tariff. 

4.  The  detailed  rules  for  application  of  this  Regulation  shall  be  adopted  in 
accordance  with the procedure  laid down  in Article  16. 

£ 

Article 3* 

Article 4 

1. Where the Common  Customs Tariff  lays down a maximum  charge, the charge 
provided  for in Article 2 may not exceed this maximum. 

Where  the  maximum  charge  referred  to  in  the  previous  subparagraph  may  be 
applied  only  under  specific  conditions,  these  conditions  shall  be  determined  in 
accordance with the procedure laid down in Article  11 (1) of Council  Regulation 
(EEC) No 2658/87 of 23 July  1987 on the tariff  and statistical  nomenclature  and 
on the Common Customs Tariff.2 

2.  Where the maximum charge consists of an ad valorem duty  plus an  additional 
duty  on  various  kinds  of  sugar,  expressed  as  sucrose  (AD S/Z),  or  on  flour 
(AD F/M),  such  additional  duty  shall  be  that  laid  down  in  the  Community 
Common Customs Tariff. 

Article 5* 

Section 2 

Preferential trade 

Article 6 

1. The  agricultural  component  applicable  in  the  framework  of  preferential  trade 
shall be the specific amount fixed in the Community Common Customs Tariff. 

However,  where  the  country  or  countries  concerned  satisfy  the  requirements  of 
Community  legislation  for  processed  products, adopt  the  same basic products  as 
the  Community,  cover  the  same  goods  and  use  the  same  coefficients  as  the 
Community: 

(a) 

(b) 

this  agricultural  component  may  be  determined  on  the  basis  of  the 
quantities of basic products actually used if the Community  has concluded 
a  customs  cooperation  agreement  covering  the  establishment  of  such 
quantities; 

the  duty  applicable  on  importation  of the  basic  product  may  be  replaced 
by  an  amount  established  on  the  basis  of  the  difference  between 
agricultural  prices  in  the  Community  and  those  in the  country  or  region 
concerned,  or  by  an  amount  offsetting  a jointly  established  price  for  the 
region concerned; 

* This article  is suppressed  repealed. 
2 

OJ  No L 256, 7.9.1987,  p.  1, as last amended  by Regulation  (EEC) No. 

1. 

(c) 

where  application  of  point  (b)  results  in  amounts  with  little  impact  on  the 
goods  covered,  this  arrangement  may  be  replaced  by  a  system  of  flat  rate 
amounts  or rates. 

2.  The  agricultural  components,  with  any  reductions,  applicable  to  imports  under 
a  preferential  agreement  shall  be converted  into national  currency  by  applying  the 
same exchange  rate as applicable  to non-preferential  trade. 

3.  The  ad  valorem  duties  corresponding  to  the  agricultural  component  of  the 
charge  for  the  goods  in  Table  2  of  Annex  B  may  be  replaced  by  another 
agricultural  component  where  provided  for  by a preferential  agreement. 

4.  The  detailed  rules  for  applying  this Article  shall  be  adopted  in  accordance  with 
the procedure  laid down  in Article  16. 

If necessary,  these detailed  rules shall cover in  particular: 

completion  and  circulation  of  the  documents  necessary  for  granting  these 
arrangements, 

the measures necessary  to avoid diversions of trade, 

the list of basic  products. 

5.  Where  methods  of  analysing  the  agricultural  products  used  are  necessary,  the 
methods  specified  for  the  agricultural  products  in  question  in  the  case  of  refunds 
on exports  to third  countries  shall  be  used. 

6.  The  Commission  shall  publish  the  charges  resulting  from  application  of  these 
agreements. 

Article  7 

1. Where a preferential  agreement  provides  for  the reduction  or phasing-out  of  the 
non-agricultural  part  of  the  charge,  this  shall  be  the  fixed  component  in  the  case 
of the  goods  listed  in Table  1 of Annex  B. 

2.  Where  a  preferential  agreement  provides  for  a  reduction  in  the  agricultural 
component,  whether  or not  within  the  limits of a tariff  quota,  the detailed  rules  for 
determining  and  managing  such  reduced  agricultural  components  shall  be  adopted 
in accordance  with  the  procedure  laid  down  in Article  16, provided  the  agreement 
specifies: 

the products eligible  for these  reductions, 

the  quantities  of  goods  or  value  of  any  quotas  to  which  these  reductions 
apply  or the method  of calculating these quantities  or values, 

î 

the  factors  determining  the reduction  in the agricultural  component. 

3.  The  detailed  rules  necessary  for  initiating  and  managing  reductions  in  the 
non-agricultural  components  of  the  charge  shall  be  adopted  in  accordance  with 
the  procedure  laid  down  in Article  16. 

4.  The  Commission  shall  publish  the  charges  resulting  from  application  of  these 
agreements". 

3. Article  8 is replaced  by the  following: 

"Article  8 

1.  On  exportation  of  the  goods,  the  agricultural  products  which  have  been  used 
and  which  satisfy  the  conditions  laid  down  in  Article  9(2)  of  the  Treaty  may, 
within  the  value  limits  deriving  from  the  agreements  concluded  in  accordance 
with  Article  228  of  the  Treaty,  qualify  for  refunds  established  pursuant  to  the 
regulations  on the common  organization  of the market  in the  sectors  concerned. 

No  export  refund  may  be  granted  on  agricultural  products,  incorporated  into 
goods,  not  covered  by  a common  organization  of  the  market  providing  for  export 
refunds  on products  exported  in the  form  of such  goods. 

2.  The  list  of  goods  qualifying  for  such  refunds  shall  be  established,  taking 
account  of: 

the  impact  of  the  difference  between  the  prices  on  the  Community  market 
and  on  the  world  market  of  the  agricultural  products  used  in  their 
production; 

the  need  to  cover  this  difference  in  whole  or  in  part,  to  allow  exportation 
of the agricultural  products  used  in the goods  concerned. 

list  shall  be  drawn  up  pursuant 

The 
organization  of the agricultural  markets. 

to  the  regulations  on 

the  common 

3.  Refund  rates  for  agricultural  products  exported  in  the  form  of  goods  not 
covered  by  Annex  II  to  the  Treaty  shall  be  fixed  in  accordance  with  the  same 
procedure  as  for  the  granting  of  refunds  on  the  agricultural  products  concerned 
when they  are exported  in the unprocessed  state. 

In  exceptional  cases,  however,  where  compliance  with  the  agreements  concluded 
in  accordance  with  Article 228  of  the  Treaty  or  other  commercial  agreements 
requires  a  reduction  in  the  level  of  refunds  established  under  the  procedure 
referred  to  in  the  above  subparagraph,  the  rates  of  refund  shall  be  reduced  by  the 
Commission  in the case of exportation  in the form  of goods  not covered  by  Annex 
II to the  Treaty. 

4.  For  agricultural  products  exported  in  the  form  of  goods  not  covered  by 
Annex  II  to  the  Treaty,  refunds  shall  be  granted  only  upon  request  and  upon 
presentation  of a corresponding  refund  certificate. 

5.  Compliance  with  the  limits  deriving  from  the  agreements  concluded 
in 
accordance  with  Article  228  of  the  Treaty  shall  be  ensured  on  the  basis  of  refund 
certificates  issued  for  the periods referred  to  therein. 

6. The  common  rules  for  implementing  the refund  arrangements  referred  to  in  this 
Article,  including  those  necessary  to  ensure  compliance  with  the  value  limits 
deriving  from  the  agreements  concluded  within  the  framework  of  Article 228  of 
the  Treaty,  shall  be  adopted  in  accordance  with  the  procedure  laid  down  in 
Article  16.  They  shall  take  into  account  the  particular  nature  of  the  goods  not 
covered  by  Annex  II  to  the  Treaty  and  the  need  to  lay  down  effective  and 
practicable  administrative  rules.  They  shall  include: 

(a) 

(b) 

provisions  concerning  the  issuing  and  period  of  validity  of  refund 
certificates; 

provisions  relating  to  the  redistribution  of  non-allocated  or  unused  refund 
amounts. 

7.  Where  the  arrangements  for  the  direct  offsetting  referred  to  in  Article  6(1 )(b) 
are  established  within  the  framework  of  a  preferential  agreement,  the  amounts 
payable  on  exports  to  the  country  or  countries  concerned  by  the  agreement  shall 
be  determined  jointly  and  on  the  same  basis  as  the  agricultural  component  of  the 
charge  under  the conditions  laid  down  in the  agreement. 

These  amounts  shall  be established  in accordance  with  the procedure  laid  down  in 
Article  16.  The  implementing  rules  which  may  be  necessary  pursuant  to  this 
paragraph,  and  in  particular  measures  to  ensure  that  goods  declared  for  export 
under  a preferential  arrangement  are  not  in  fact  exported  under  a  non-preferential 
arrangement  or vice versa,  shall  be adopted  by the  same  procedure. 

Where  methods  of  analysing  the  agricultural  products  used  are  necessary,  the 
methods  specified  for  the  agricultural  products  in  question  in  the  case  of  refunds 
on exports to third  countries  shall  be  used." 

4. The  following  article  shall be added  after  Article  10: 

"Article  10a 

1.  In  order  to  prevent  or  counteract  adverse  effects  on  the  Community  market 
which  may  result  from  imports  of  certain  goods  resulting  from  the  processing  of 
agricultural  products,  listed  in  Annex  C to  this  Regulation,  importation  at  the  rate 
of duty  provided  for  in the Common  Customs  Tariff  of one or  more  of  such  goods 
shall  be  subject  to  the  payment  of  an  additional  import  duty  if  the  conditions  set 
out  in  Article  5  of  the  Agreement  have  been  fulfilled  unless  the  imports  are 

y tû 

unlikely 
disproportionate  to the  intended  objective. 

to  disturb  the  Community  market  or  where  the  effects  would  be 

2. The  trigger  prices  below  which  an  additional  import  duty  may  be  imposed  shall 
be those  forwarded  to the  World  Trade Organization  by the  Community. 

The  trigger  quantities  which  must  be  exceeded  in  order  for  an  additional  import 
duty  to  be  imposed  shall  be determined,  inter  alia,  on the  basis of  imports  into  the 
Community  in  the three  years  preceding  that  in  which  the  adverse  effects  referred 
to  in paragraph  1 arise or seem  likely  to arise. 

3.  The  import  prices  to  be  taken  into  consideration  when  imposing  an  additional 
import  duty  shall  be  determined  on  the  basis  of  the  cif  import  prices  of  the 
consignment  concerned. 

4.  The  detailed  implementing  rules  shall  be  adopted  in  accordance  with  the 
procedure  laid  down  in Article  16. 

These  rules  shall  cover  in  particular: 

(a) 

(b) 

the  goods  to  which  additional  import  duties  are  applied  under  Article  5  of 
the Agreement  ; 

the  other  criteria  necessary  for  application  of  paragraph  1  in  accordance 
with  Article  5 of the said  Agreement." 

5.  In  Article  12,  paragraph  1  shall  be  deleted.  Paragraph  3  shall  be  replaced  by  the 

following: 

"3.  The  Commission  shall  adapt  this  Regulation  or  Regulations  adopted  pursuant 
thereto to any  amendments  to the Combined  Nomenclature." 

6. The text  of Article  13 shall  be replaced  by the  following: 

"1.  This  Article  shall  apply  to all  preferential  trade  for  which  determination  of  the 
agricultural  component  of  the  charge,  possibly  reduced  under  the  conditions  laid 
down  in  Article  7, is not  based  on the  actual  content  referred  to  in  Article  6(1)  (a) 
and/or  for  which  the  basic  amounts  are  not  based  on  the  price  differences  referred 
to  in Article  6(1) (b). 

2.  The  characteristics  of  the  basic  products  and  the  quantities  of  the  basic 
products  to  be  taken  into  account  shall  be  those  laid  down  by  Commission 
Regulation  (EC) No  1294/943. 

Any  amendments  to  be  made  to  this  Regulation  shall  be  adopted  in  accordance 
with the  procedure  laid down  in Article  16." 

OJ  NoL  141, 4.6.1994,  p.  12. 

7.  In  Article  14, paragraph  1 shall  be replaced  by the  following: 

"The  threshold  or  thresholds  below  which  the agricultural  components  established 
in  accordance  with  Articles  6  and  7  shall  be  fixed  at  zero  may  be  laid  down  in 
accordance  with  the  procedure  laid  down  in  Article  16.  The  non-application  of 
these  agricultural  components  may  be  made  subject  to  special  conditions,  in 
accordance  with  the  same  procedure,  in  order  to  avoid  creating  artificial  trade 
flows." 

8. Article  18 shall  be replaced  by the  following: 

the 
'The  measures  necessary 
Regulations  on  the  common  organization  of  the  market  in  agricultural  products  in  order 
to  maintain  the  existing  arrangements  shall  be  adopted  in  accordance  with  the  procedure 
laid  down  in Article  16." 

to  amendments  made 

this  Regulation 

to  adapt 

to 

9. In Annex  B, the titles under  "Table  1 " and  "Table 2" shall  be  deleted. 

10. The annex  to this Regulation  is hereby  added as Annex  C to Regulation  3448/93. 

Article  2 

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

However,  Article  1(3) shall be applicable  from  16 October  1996. 

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

Done at 

, 

For the  Council 

^ 2-

Annex 

"Annex  C 

Description  of  goods 

Yogurt,  flavoured  or containing  added  fruit,  nuts or  cocoa 

CN  Code 

0403  10 51 
0403  10 99 

0403  10 71 
0403  90  99 

Buttermilk,  curdled  milk  and  cream,  képhir and  other  fermented  or 
acidified  milk  containing  added  fruit,  nuts or  cocoa 

0710  40 

Sweet  corn  (uncooked  or cooked  by  steaming  or  boiling  in water), 
frozen 

0711  90  30 

Sweet  corn  provisionally  preserved  (for  example, by  sulphur  dioxide 
gas, in brine, sulphur  water or  in other preservative  solutions)  but 
unsuitable  in that  state for  immediate  consumption 

1517  10  10 

Margarine, excluding  liquid  margarine  containing  more than  10% but 
not more than  15% by weight  of milk  fats 

517 90  10 

Other  edible  mixtures  or preparations  of animal  or  vegetable  fats  or 
oils or  fractions  of different  fats or oils of this chapter,  other  than 
edible  fats  or oils or their  fractions  of heading  No  1516,  containing 
more than  10% but  not  more than  15% by  weight  of milk  fats 

1702  50 00 

2005  80 00 

2905 43 00 

Chemically  pure  fructose 

Sweet  corn  (Zea mays var. saccharata)  prepared  or  preserved 
otherwise  than by vinegar  or acetic acid, not  frozen 

Mannitol 

D-Glucitol  (Sorbitol): 
—  in aqueous  solution 

2905  44  11 

— containing  2% or  less by  weight  of D-mannitol, calculated  on  the 
D-glucitol  content 

— other 

2905  44  19 

li 

CN  Code 

Description  of  goods 

-  other 

2905 44 91 

— containing  2% or less by  weight of D-mannitol, calculated  on  the 
D-glucitol  content 

2905  44  99 

other 

3505  10  10 

Dextrin 

3505  10 92 

Other modified  starches, excluding  esterified  or etherified  starches, 
amilomers, cadexomers, crilanomers  and  eldexomers 

Glues  based  on  starches or on dextrins or other  modified  starches: 

3505 20  10 

- containing,  by weight,  less than  25% of starches or dextrins  or  other 
modified  starches 

3505 20 30 

- containing, by weight, 25% or more but less than  55% of  starches 
or dextrins  or other modified  starches 

3505 20 50 

- containing,  by weight,  55% or more  but  less than  80% of  starches 
or dextrins  or other modified  starches 

3505  20  90 

- containing, by weight,  80% or more of starches or dextrins or  other 
modified  starches 

11 

CN  Code 

Description  of  goods 

Finishing  agents, dye carriers  to accelerate  the dyeing  or  fixing  of 
dye  stuffs  or other products  and  preparations  (for  example,  dressings 
and  mordants), of a kind  used  in the paper,  leather or  like  industries, 
with  a basis of amylaceous  substances,  not elsewhere  specified  or 
included: 

3809  10  10 

- containing  by  weight  of such  substances  less than  55% 

3809  10 30 

- containing  by weight  of such  substances  55% or more but  less than 
70% 

3809  10 50 

- containing  by  weight  of such  substances  70% or  more but  less than 
83% 

3809  10 90 

- containing  by  weight  of such  substances  83% or  more 

3824  60  11 

Sorbitol  other than  of CN  Code  2905  44 
-  in aqueous  solution: 
-  containing  2% or less by  weight  of D-mannitol,  calculated  on  the 
D-glucitol  content 

3824  60  19 

other 

— other: 

3824  60 91 

— containing  2% or  less by  weight  of D-mannitol,  calculated  on  the 
D-glucitol  content 

3824  60  99 

— other 

U 

FINANCIAL STATEMENT 

Dale: 

1.BUDGET  HEADING  :  Article  10 

Item  1000 

APPROPRIATIONS  :budget  not yet  published 

Article  131-301  Item  3010 to  3019 

APPROPRIATIONS  : M ECU  575 

2.TITLE  : Council  Regulation  amending  Council  Regulation  (EC) No  344X/93  laying down the trade arrangements  applicable  to goods resulting  from 
processing  ol  agricultural  products 

3. LEGAL  BASIS  : Article  43  and  113 of the  Treaty 

4.  AIMS  : 1 pdating  of  Regulation  (EC)  No  344X/93  following  the entry  into  force  of the GATT  agreements 

5  FINANCIAL  IMPLICATIONS: 

Period  of  12  months 

Current  financial  year(  ) 

Following  financial 
re ar 

{)_ 

5.0.Expenditures  : 
- ("han't-d  to the  EC budget  (refunds/interventions) 
-  National  Authorities 
- Other 

5  1.  Revenue: 
-  Own  resources  ol  the  EC." (levies/customs  duties) 

5  0  1  luSTlMAIED  EXPENDITURE 

5.1.1  ESTIMATED  REVENUE 

5.2.  METHOD  OF  CALCULATION  : (No  calculable  impact) 

6.0.  CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN  THE  RELEVANT  CHAPTER 

ON  THE  CURRENT  BUDGET 

6  1  CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CIIAFfERS  OF  THE  CURRENT  BUDGET 

6.2.  WILL  A  SUPPLEMENTARY  BUDGET  BE  NECESSARY 

6.3.  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY 

yes/no 

yes/ no 

-yes/no 

yesyno 

OBSERVATIONS  : 
The  Regulation  makes  a number  of textual  changes following  the  entry  into force  of the GATT  agreements  subsequent  removal  of the variable  or  managers!'..: it 
components  to  enable the  Community  to  comply  with the  undertakings  given  at  Marrakesh. 

y44 

ISSN 0254-1475 

COM(96) 49 final 

DOCUMENTS 

EN 

03  02 

Catalogue number  : CB-CO-96-060-EN-C 

ISBN 92-78-00445-6 

Office for Official Publications of the European Communities 

L-2985 Luxembourg