Proposal for a COUNCIL DECISION on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt
Date: 1996-05-24
Institutions: European Commission
Subjects: Egypt, cooperation agreement (EU), import, rice, tariff quota, tariff reduction

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  24.05.1996 
COM(96)227  final 

%/()137(ACC) 

96/0138  (ACC) 

Proposal  for a 

on the conclusion  of the Agreement  in  the form  of an Exchange of Letters between  the 
European  Community  and the Arab Republic  of Egypt  modifying  the arrangements  for 
imports into the Community  of rice originating  in and  coming from  Egypt 

(presented  by the Commission) 

Proposal  for  a 

rOTTNÇn. REGULATION  (EC) 

concerning rice imports from  the Arab Republic of Egypt 

(presented  by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 
Article  19 of the current Cooperation  Agreement between  the Community  and  the 
Arab  Republic  of  Egypt  provides  that  the  Community  shall  take  all  necessary  measures 
to  ensure  that  the  levy  on  imports  into  the  Community  of  rice  originating  in  Egypt  is 
reduced  by  an  amount  equal  to  25%  of  the  average  level  of  levies  applicable  during  a 
reference  period,  within  the  limits  of  an  annual  quantity  of  32  000  tonnes. 

The  reduction  is  accorded  on  condition  that  Egypt  levy  a  special  export  charge  equal  to 
that  amount  and  that  the  charge  be  reflected  in  the  import  price  into  the  Community. 

Under  the  agreements  concluded  within  the  GAIT  Uruguay  Round,  the  levies 
2. 
applied  to the product  in  question  were replaced  by  customs  duties on  1 July  1995.  This 
effectively  cancels the reduction  stipulated  in the  Cooperation  Agreement,  and  Egypt  has 
therefore  asked  for  the  arrangements  to  be  amended. 

3. 
Article  22  of  the  Cooperation  Agreement  requires  the  Community,  in  the  event 
of  any  modification  of the  existing  rules,  to take appropriate  account  of  Egypt's  interests 
and  accord  an  advantage  comparable  to  that  provided  for  in  the  Agreement. 

It  is  necessary  to  make  provision  for  the  said  preferential  treatment  to  continue,  taking 
account  of  the  change  in  circumstances. 

Under  an  arrangement  reached  with  Egypt,  customs  duties  would  be  reduced  by 

4. 
25%  from  May  within  a  quota  of  32  000  tonnes  and  the  condition  dropped. 

This  arrangement,  which  is  aimed  at  restoring  earlier  advantages,  has  been  incorporated 
ni  the  annexed  exchange  of  letters.  The  conclusion  of  this  agreement  also  entails  the 
replacement  of  Council  Regulation  (EEC)  No  1250/77  by  a  regulation  reflecting  the 
change  in  circumstances. 

5. 
The  Commission  proposes  that  the  Council  adopt  the  Decision  concerning  the 
conclusion  of  the  exchange  of  letters  negotiated  with  Egypt  and  the  proposal  for  a 
Regulation  aimed  at  implementing  the  measures  agreed  in  that  exchange  of  letters. 

I 

COUNCIL  DECISION 

•  of...  1996 

S^/o  ltf(î\e*) 

on  the  conclusion  of  the  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the 
European  Community  and  the  Arab  Republic  of  Egypt  modifying  the  arrangements  for 
imports  into  the  Community  of  rice  originating  in  and  coming  from  Egypt 

(96/  /EC) 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  113  in  conjunction  with  the  first  sentence  of  Article  228(2)  thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

Whereas  Article  19  of  the  Cooperation  Agreement  between  the  European  Economic 
Community  and  the  Arab  Republic  of  Egypt1  provides  for  a  reduction  in  the  levy  on 
imports  into  the  Community  of  rice  originating  in  and  coming  from  that  country  within 
the limits of a maximum  quantity  of 32  000  tonnes a year and  on condition that  an  export 
levy be collected; whereas the Agreement provides that the Community  may  modify  these 
arrangements,  taking  account  of Egypt's interests,  in  the  event  of any  change  in  its rules; 

Whereas the Community, in the Uruguay  Round agreement  on agriculture, has  undertaken 
to replace  variable  levies with  customs  duties; whereas  this  necessitates  the  modification 
of  the  Agreement  with  Egypt; 

Whereas  the  Community  has  to that  end  negotiated  with  the  Arab  Republic  of  Egypt  an 
Agreement  in  the  form  of  an  Exchange  of  Letters  modifying  the  arrangements  in 
question; 

Whereas  this  Agreement  should  be  approved, 

HAS  DECIDED  AS  FOLLOWS: 

Article 1 

The Agreement  in the form  of an Exchange  of Letters between  the European  Community 
and  the  Arab  Republic  of  Egypt  modifying  the  arrangements  for  imports  into  the 
Community  of  rice  originating  in  and  coming  from  Egypt  is  hereby  approved  on  behalf 
of  the  Community. 

The  text  of  the  A<>reement  is  annexed  to  this  Decision. 

Article  2 

O J No  L  266.  27.9.1978  p i. 

The  President  of  the  Council  is hereby  authorized  to  designate  the  person  empowered  to 
sign  the  Agreement  in  order  to  bind  the  Community. 

Article  3 

The  provisions  implementing  the  Agreement,  including  any  surveillance  measures,  shall 
in  Article  27  of  Council 
be  adopted  according 
Regulation  (EEC)  No  1418/76  of  21  June  1976  on  the  common  organization  of  the 
market  in  rice." 

the  procedure 

laid  down 

to 

Where  the  application  of  the  Agreement  calls  for  close  cooperation  with  Egypt,  the 
Commission  may  take  all  necessary  measures  to  ensure  such  cooperation. 

Done  at  Brussels,  ...  1996 

For  the  Council 
The  President 

OJ  No  1.  166.  25.6.1976.  p.l. 

AGREEMENT 

in  the  form  of  an  Exchange  of  Letters  between  the  European  Community  and  the  Arab 
Republic  of  Egypt  modifying  the  arrangements  for  imports  into  the  Community  of  rice 
originating  in  and  coming  from  Egypt 

Letter  No 1 

^Brussels, 

1996 

Sir, 

I  have  the  honour  to  refer *to the  Agreement  in  the  form  of  an  Exchange  of  Letters 
between  the  European  Community  and  the  Arab  Republic  of  Egypt  concerning  the 
arrangements  for  imports  into  the  Community  of  rice  originating  in  and  coming  from 
Egypt. 

Under  this  Agreement  the  customs  duties  applicable  to  imports  of  rice  (CN  code  1006) 
originating  in  and  coming  from  Egypt  shall  be  those  calculated  in  accordance  with 
Article  12  of  Regulation  (EEC)  No  1418/76  reduced  by  an  amount  equal  to  25% of  the 
value  of  the  said  duties. 

The  application  of the reduction  in  customs  duties  accorded  shall  no longer  be  subject  to 
the  collection  by  Egypt  of  an  export  levy  on  the  product. 

This  reduction  in  customs  duties  shall  be  applicable  from  1 May  1996. 

This  Agreement  shall  be  approved  by  the  Contracting  Parties  in  accordance  with  their 
own  procedures.  It  shall  enter  into  force  on  1 May  1996. 

1 should  be  obliged  if you  would  confirm  your  agreement  with  the contents  of this  letter. 

Please  accept,  Sir,  the  assurance  of  my  highest  consideration. 

<®n rhêhalftof'the  Council  of 
lihfi JEurepean tUnion 

Letter  No  2 

Cairo,  ...  1996 

Sir,  I have  the  honour  to  acknowledge  receipt  of  your  letter  of  today's  date which  reads 
as  follows: 

"I  have  the  honour  to  refer  to  the  Agreement  in  the  form  of  an  Exchange  of  Letters 
between  the  European  Community  and  the  Arab  Republic  of  Egypt  concerning  the 
arrangements  for  imports  into  the  Community  of  rice  originating  in  and  coming  from 
Egypt. 

Under  this  Agreement  the  customs  duties  applicable  to  imports  of  rice  (CN  code  1006) 
originating  in  and  coming  from  Egypt  shall  be  those  calculated  in  accordance  with 
Article  12  of  Regulation  (EEC)  No  1418/76  reduced  by  an  amount  equal  to  25% of  the 
value  of  the  said  duties. 

The  application  of the  reduction  in  customs  duties  accorded  shall  no longer  be  subject  to 
the  collection  by  Egypt  of  an  export  levy  on  the  product. 

This  reduction  in  customs  duties  shall  be  applicable  from  1 May  1996. 

This  Agreement  shall  be  approved  by  the  Contracting  Parties  in  accordance  with  their 
own  procedures.  It  shall  enter  into  force  on  1 May  1996. 

1 should  be  obliged  if you  would  confirm  your  agreement  with  the contents  of this  letter. 

Please  accept,  Sir,  the  assurance  of  my  highest  consideration." 

I  have  the  honour  to  confirm  the  agreement  of the  Government  of the  Arab  Republic  of 
Egypt. 

Please  accept,  Sir,  the  assurance  of  my  highest  consideration. 

On  behalf  of 
Republic  of  Egypt 

the  Arab 

£ 

COUNCIL  REGULATION  (EC) NO  ... 
of... 
concerning  rice imports from  the Arab Republic of Egypt 

%/o  / i8  (V  0 

THE COUNCIL  OF THE EUROPEAN  UNION, 

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

Having  regard  to the proposal  from  the  Commission, 

Whereas the Contracting Parties have agreed, in an exchange of letters, that the customs 
duties to be applied  to imports  of rice (CN code  1006) originating  in  and  coming  from 
Egypt  are  to  be  those  calculated  in  accordance  with  Article  12 of  Council  Regulation 
(EEC) No  1418/76  of 21 June  1976 on the common  organization  of the market  in rice1 
reduced  by  an amount  equal to 25% of the value of those duties, and that the reduction 
accorded  is no  longer to be subject  to the  collection  by Egypt  of  an export  levy  on the 
product; 

Whereas  Regulation  (EEC)  No  1250/77  concerning  imports  of  rice  from  the  Arab 
Republic  of  Egypt  should  be repealed  accordingly/ 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

The customs  duties  on imports of rice (CN code  1006) originating  in  and  coming  from 
Egypt  shall  be  those  calculated  in  accordance  with  Article  12  of  Council  Regulation 
(EEC)  No  1418/76  reduced  by  an  amount  equal  to  25%» of  the  value  of  those  duties, 
within  the limits of  an  annual  volume of  32 000 tonnes. 

Article 2 

The arrangements  for  the implementation  of this Regulation,  including  any  surveillance 
measures,  shall  be adopted  in  accordance with the procedure laid  down  in  Article  27 of 
Regulation  (EEC) No  1418/76. 

Regulation  (EEC) No  1250/77 is hereby  repealed. 

Article 3 

1 
2 

OJ No L  166, 25.6.1976, p. 1. 
OJ No L  146,  14.6.1977, p.9. 

> 

Article  4 

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

It  shall  apply  from  1 May  1996. 

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

Done  at  Brussels,  ...  1996 

For  the  Council 

BUDGET  HEADING: 1000 

TITLE: 

DATE:, 

APPROPRIATIONS:  ECU  864  million 

Council  Decision  on the  conclusion  of the  Agreement  in the  form  of an  Exchange  of Letters  between  the  European 
Community  and  the  Arab  Republic  of Egypt  modifying  the  arrangements  for  imports  into  the  Community  of  rice 
originating  in and  coming  from  Egypt 

3. 

LEGAL  BASIS:  Article  113 

AIMS  OF  PROJECT: 

Updating,  in Ihc  light  ol'the  Uruguay  Round  agreements,  the  Agreement  between  the  Community  and  Egypt  in  respect 
of  the  import  into  the  Community  of 32  000  tonnes  of rice. 

FINANCIAL  IMPLICATIONS 

5.0. 

EXPENDITURE 

CHARGED  TO  THE  EC  B U D G ET 
(REFUNDS/INTERVENTION) 
NATIONAL  ADMINISTRATION 
OTHER 

5.1. 

R E V E N UE 
-  O WN  RESOURCES  OF  THE EC 
(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1. 
5.1.1. 

ESTIMATED  EXPENDITURE 
ESTIMATED  R E V E N UE 

5.2. 

METHOD  OF  CALCULATION: 

PERIOD  OF 12 
MONTHS 

million  ecu 

CURRENT 
FINANCIAL 
YEAR 
(96) 
million  ecu 

FOLLOWING 
FINANCIAL 
YEAR 
(97) 
million ecu 

7.2 

2.4 

4.8 

1998 

1999 

2000 

2001 

32  000  tonnes  x  (351  x  1.8 -  300)  ECU/t  x 7 5%  x  90%  =  ECU  7.2 million 

ECU  351/t  =  intervention  price 
ECU  300/t  = world  market  price 

<>.(). 

6.1 

CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  E N T E R ED  IN THE  R E L E V A NT 
CHAPTER  OF THE CURRENT BUDGET? 

CAN  THE PROJECT  BE FINANCED  BY TRANSFER  BETWEEN  CHAPTERS  OF THE  CURRENT 
BUDGET? 

IS A SUPPLEMENTARY  BUDGET  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE NECESSARY? 

YES/NO 

¥ES/N« 

V-4-S/NO 

Y-I^Z-Nt > 

i  OBSERVATIONS: 
I 
! 

This  proposal  extends the  Agreement  between  the  Community  and  Egypt. 
As well  as bringing  the  Agreement  into  line with  the  GATT agreements,  this  decision  maintains the 
preferential  treatment  currently  enjoyed  by  Egypt. 
The  25% reduction  represents  a  loss of  own  resources  of  ECU  2.4  million. 

3 

ISSN 0254-1475 

COM(96) 227  final 

DOCUMENTS 

EN 

03 

il 

Catalogue number  : CB-CO-96-238-EN-C 

ISBN 92-78^04440-7 

Office  for Official  Publications of the European  Communitics 

L-2985 Luxembourg 

>