Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 4088/87 fixing conditions for the application of preferential customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza Strip
Date: 1996-07-19
Institutions: European Commission
Subjects: Cyprus, Middle East, Morocco, floriculture, import, tariff preference

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  19.07.1996 
COM(96)352 final 

96/0188  (ACQ 

Proposal  for a 

COUNCIL REGULATION (EC) 

amending  Regulation  (EEC) No 4088/87 fixing  conditions for the  application 
of  preferential  customs duties  on imports  of certain flowers  originating in 
Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza  Strip 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

Council  Regulation  (EEC)  No  4088/87  fixing  conditions  for  the  application  of  preferential 
customs  duties  on  imports of  certain  flowers  originating  in Cyprus,  Israel,  Jordan,  Morocco, 
the West  Bank  and  the  Gaza  Strip  provides  for  the tariff  reduction  to be granted  on a quota 
(hence a limited  quantity) and on condition  for  certain  cut flowers  (roses and carnations) that 
an  import  price  is  respected  that  is  no  lower  than  a  percentage  (85%)  of  the  Community 
producer  price  for  the product  in  question. 

The method  of calculating Community  producer prices as defined  in Article 3 uses three-year 
arithmetical  averages excluding all extreme values. The figures  arrived at are therefore  far out 
of line with  the  actual  situation. 

It is therefore proposed that current weighted averages replace three-year arithmetical  averages 
as the method for  calculating Community producer prices. An amendment to the way in which 
import  prices  are compared  with  producer  prices  is also proposed 

SL 

Proposal  for  a 

COUNCIL REGULATION (EC) No 

of 

amending Regulation  (EEC) No 4088/87  fixing  conditions  for  the  application 
of preferential  customs  duties  on  imports  of certain flowers originating  in 
Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza  Strip 

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  Additional  Protocols  to  the  Association  or  Cooperation  Agreements  between "the 

European Economic Community and Cyprus, Israel, Jordan and Morocco provide for  preferential 

customs  duties  on  roses  and  carnations  imported  into  the  Community  within  the  limit  of  tariff 

quotas opened for all fresh cut flowers of Combined Nomenclature subheading 0603  10 originating 

in these countries; whereas under Regulation (EEC) No  1134/91 \  as amended by Regulation (EC) 
No  539/962,  the  West  Bank  and  the  Gaza  Strip  enjoy  preferential  tariff  treatment  for  certain 

agricultural  products,  including  cut  flowers  of  Combined  Nomenclature  subheading  0603  40, 

within  annual  quota  limits;  whereas  these  tariff  advantages  are  applicable  only  to  imports  for 
which certain price requirements specified  by Regulation (EEC) No 4088/873, as last amended by 

Regulation  (EEC)  No  539/96,  are  met;  whereas  the  actual  prices  to  be  respected  for  imported 

products  are determined  by  comparing  their  prices with  Community  producer  prices; 

Whereas by a Decision of the Council of 22 December  1995 the Community concluded an Interim 
Agreement  with  Israel  on trade  and trade-related  matters4; whereas this includes  an exchange  of 

letters on imports into the Community of fresh cut flowers and flower  buds suitable for  bouquets 

O J N oL  112, 4.5.1991,  p.l. 
OJ No L  79, 29.3.1996, p.6. 
OJ No L  382, 31.12.1987, p.22. 

O J N o L 7 1,  20.3.1996, p.l. 

3 

or  ornamental  purposes,  by  which  it  has  been  agreed  to  adjust  the  procedures  for  determining 

Community  producer  prices and recording  import prices; 

Whereas as a result of the negotiations with Morocco for conclusion of an Association Agreement, 

which  led  to  agreement  inter  alia  on  adjustment,  implemented  by  Council  Regulation  (EC) 
No  3057/955,  of  the  tariff  quotas  for  flowers,  the  same  adjustments  as referred  to  above  in  the 

procedures  for  determining  Community producer prices and recording  import prices were agreed 

on; 

Whereas  the  provisions  of  the  Agreements  with  the  other  Mediterranean  countries  covered  by 

Regulation (EEC) No 4088/87 on flower imports specify  no method for determining  Community 

producer  and  import prices; whereas since it is anticipated that the new procedures will be to the 

advantage  of  importers  they  should  be  applied  to  all  imports  originating  in  the  Mediterranean 

countries  covered  by Regulation  (EEC) No 4088/87; 

Whereas  Regulation  (EEC) No 4088/87  should accordingly  be amended, 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

Regulation  (EEC) No 4088/87  is hereby  amended  as  follows: 

1.  Article  2  is replaced  by: 

"Article 2 

1. 

For a given product  and origin, the preferential  customs duty shall be applicable only 

if the price of the imported product  is at least  85% of the Community  producer  price 

referred  to  in Article 3. 

OJ No L  326, 30.12.1995, p.3. 

2. 

Import  prices  applicable  for  two-week  periods  shall  be  determined  for  each  of  the 

products and origins indicated in Article  1. Determinations shall be made every  fifteen 

days for the two weeks following  the date on which they are made. 

Import  prices  shall  be  determined  on  the  basis  of  the  weighted  average  of  prices 

recorded on the representative import markets of the Community, full rate customs duty 

not deducted. 

~ 

~ 

3. 

The preferential customs duty shall be suspended and the Common Customs Tariff duty 

introduced for any given product and origin if the import price determined as specified 

in  paragraph  2  is  less  than  85% of  the  Community  producer  price  determined  as 

specified  in Article 3. 

4. 

The preferential  customs duty shall be reintroduced for any given product and origin 

if  the  import  price  determined  as  specified  in  paragraph  2  is  85% or  more  of  the 

Community producer price determined as specified  in Article 3." 

2.  Article  3 is replaced by: 

"Article 3 

-

1.  Community producer prices applicable  for two-week periods shall be determined  for 

each of the four products indicated  in Article  1. Determinations  shall  be made every 

fifteen days for the two weeks following  the date on which they are made. 

2.  Community producer prices shall be determined on the basis of the weighted average 

of producer prices recorded on the representative markets for Community production." 

3.  Article 4 is replaced by: 

"Article 4 

In the absence of prices or quotations sufficiently  representative to permit determination  of 

import and/or Community producer prices as specified in Articles 2(2) and 3(2) respectively 

they  shall be determined on the basis of the latest determinations." 

S 

4.  Article  5(2)  is replaced by: 

"2. 

In accordance with the procedure referred to in paragraph  1 the Commission shall: 

a) 

determine import prices as provided for in Article 2(2) and Community producer 

prices as provided for in Article 3; 

b)  when  appropriate  suspend  the  preferential  customs  duty  and  reintroduce  the 

Common Customs Tariff duty, or reintroduce the preferentialcustomsduty. 

However, between the periodic meetings of the Management Committee these measures 

shall be adopted by the Commission." 

Article 2 

This Regulation shall enter into force on the seventh day following  its publication in the  Official 

Journal of the European Communities. 

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

Done at 

For the Council 

6' 

FINANCIAL  STATEMENT 

DATE: 22.4.96 

BUDGET HEADING:  120 (Customs duties) 

APPROPRIATIONS: ECU  14.281m 

TITLE: 

Proposal for  a Council Regulation amending Regulation (EEC) No 4088/87 fixing  conditions for the application of 
preferential  customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco, the West Bank 
and the Gaza Strip 

LEGAL BASIS: Treaty  Article 113 

AIMS OF PROJECT: 

Application/suspension of preferential  customs duty  according to import price/Community  producer price  relationship 

FINANCIAL  IMPLICATIONS 

PERIOD OF 
12 MONTHS 

million ecu 

CURRENT 
FINANCIAL 
YEAR (96) 
million ecu 

FOLLOWING 
FINANCIAL 
YEAR (97) 
million ecu 

5.0. 

5.1. 

EXPENDITURE 
- CHARGED TO THE EC BUDGET 

(REFUNDS/INTERVENTION) 
- NATIONAL  ADMINISTRATION 
-OTHER 

REVENUE 
- OWN RESOURCES  OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

- NATIONAL 

5.0.1. 
5.1.1. 

5.2. 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

METHOD  OF CALCULATION: 

Not  quantifiable 

1998 

1999 

2000 

200T 
(ECUmillion) 

Application/non-application of the preferential  customs  duty  is not known in advance being largely  dependent  on marke 
trends. Any assessment  of financial  implications  is therefore  mere  conjecture. 

6.0. 

6.1. 

6.2. 

6.3. 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS  ENTERED  IN THE RELEVANT 
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? 

OBSERVATIONS. 

* 

ISSN 0254-1475 

COM(96) 352 final 

DOCUMENTS 

EN 

03  02  11 

Catalogue number  : CB-CO-96-359-EN-C 

ISBN 92-78-06962-0 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg