Proposal for a Council Regulation (EC) concerning the conclusion of the Agreement in the form of an exchange of letters amending the Agreement in the form of an exchange of letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines, and amending Regulation (EC) No 933/95 opening and providing for the administration of Community tariff quotas for certain wines
Date: 1997-11-20
Institutions: European Commission
Subjects: Bulgaria, tariff quota, trade agreement (EU), wine

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels, 20.11.1997 
COM(97) 603 final 

97/0322  (ACC) 

Proposal  for a 

COUNCIL  REGULATION (EC) 

concerning the conclusion of the Agreement in the form of an exchange of letters 
amending the Agreement in the form of an exchange of letters between the European 
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas 
for certain wines, and amending Regulation (EC) No 933/95 opening and providing for 
the administration of Community tariff quotas for certain wines 

(presented  by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 

2. 

3. 

4. 

In  1993,  the  European  Community  concluded  Agreements  with  Bulgaria, 
Hungary  and Romania on the reciprocal  establishment  of tariff  quotas for  certain 
wines. These Agreements were to run initially until 31 December  1997 in the case 
of Bulgaria and Romania and until 31 December  1998 in the case of Hungary. 

Under  Articles  76,  102 and  128  of  the  Act  of  Accession,  Austria,  Finland  and 
Sweden  are to apply  the provisions of the preferential  Agreements concluded  by 
the  Community  with  certain  third  countries,  including  Bulgaria,  Hungary  and 
Romania, from  1  January  1995. 

The  negotiations  with  Bulgaria  aimed  at  preserving  reciprocal  preferential 
treatment in  1998 and at continuing to promote the development of trade in wine 
have  resulted  in  the  draft  exchange  of  letters  to  which  this  proposal  relates  and 
which  provides  for  the  initial  Agreement  to  be  extended  by  one  year.  The 
negotiations  with Romania have not yet reached  a conclusion  and their  outcome 
will be the subject of a later proposal. 

The  purpose  of  this  proposal  is  to  ask  the  Council  to  adopt  the  results  of  the 
negotiations with Bulgaria as set out in the attached  draft  exchange of letters and 
take the  steps required  to implement  them,  including  the amendment  of  Council 
Regulation (EC) No 933/95. 

Proposal for a 

COUNCIL REGULATION (EC) 

of 

concerning the conclusion of an Agreement in the form of an exchange of letters 
amending the Agreement in the form of an exchange of letters between the European 
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas 
for certain wines, and amending Regulation (EC) No 933/95 opening and providing for 
the administration of Community tariff quotas for certain wines 

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  an  Agreement  in  the  form  of  an  exchange  of  letters  on  the  reciprocal 
establishment of tariff quotas for certain wines between the European Community  of the 
one part and the Republic of Bugaria of the other part1 was signed on 29 November 1993; 

Whereas that Agreement expires on 31 December 1997; 

Whereas in order to preserve reciprocal preferential  treatment and to continue to promote 
the development  of trade in wine the Agreement  should be extended  until  31 December 
1998; 

Whereas  Regulation  (EC)  No  933/95  opening  and  providing  for  the  administration  of 
Community  tariff  quotas  for  certain  wines  originating  in  Bulgaria,  Hungary  and 
Romania2 opened tariff quotas for certain wines in accordance with the Agreement in the 
form  of  an  exchange  of  letters  between  the  European  Community  and  the  Republic  of 
Bulgaria;  whereas, following  the new Agreement  in the form  of an exchange of letters, 
Regulation (EC) No 933/95 has to be amended accordingly; 

Whereas, in order to facilitate the implementation of certain provisions of the Agreement, 
the  Commission  should  be  authorised 
for 
implementation  of  the  Agreement  in  accordance  with  the  procedure  laid  down  in 

the  necessary 

legislation 

to  adopt 

1  GJM«L337, 31.12.1993, p. I. 

2  OJNoL96,2t.4.19*5,p.  1. 

Article 83 of  Council  Regulation  (EEC) No  822/87  of  16 March  1987 on  the  common 
organisation of the market in wine3; 

HAS ADOPTED THIS REGULATION: 

Vl/4320/97Rev.l 

Article  1 

The Agreement  in the form  of an exchange of letters between the European  Community 
of  the  one  part  and  the  Republic  of  Bulgaria  of  the  other  part  on  the  reciprocal 
establishment  of  tariff  quotas  for  certain  wines  is  hereby  approved  on  behalf  of  the 
Community. 

The text of the Agreement is attached to this Regulation. 

Article 2 

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

Article 3 

The Commission  is hereby  authorised to adopt the necessary  acts for  implementation  of 
the Agreement,  in accordance  with the procedure  laid down  in Article  83 of  Regulation 
(EEC) No 822/87. 

OJ  No  L  84,  27.3.1987,  p.  1,  as  last  amended  by  Regulation  (EEC)  No  1566/93  (OJ  No  L  154, 
25.6.1993, p. 39). 

H 

Article 4 

1. 

2. 

In Article  1(1) of Regulation (EC) No 933/95, the words "to 31 December 1997' 
are replaced by the words "to 31 December 1998". 

In Article  1(1) of Regulation (EC) No 933/95 the table under (a) "Wines 
originating in Bulgaria" is replaced by the following table: 

Order No 

CN code 

Description 

Volume of quota 

0) 

(2) 

(hi) 

Rate of duty 
applicable 
(% of basic) 

09.7001 

ex 2204 10 

09.7003 

ex 2204 21 

09.7005 

ex 2204 29 

1  600 
31.12.1998) 

(1.1 

-

401  230  (1.1  -
31.12.1998) 

128  000  (1.1  -
31.12.1998) 

40 

40 

40 

Quality sparkling 
wine, in containers 
holding not more than 
2 litres 

Quality wine, 
including quality wine 
with a designation of 
origin 

Quality wine, 
including quality wine 
with a designation of 
origin, and wine 
obtained from grapes 
of the 'Gamza' vine 
variety designated and 
presented under that 
name or under the 
synonym  'Kadarka' 

Article 5 

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

It shall apply from  1  January 1998. 

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

Done at Brussels, 

For the Council 

T 

AGREEMENT 

in the form of an exchange of letters amending the Agreement in the form of an exchange 
of letters between the European Community and the Republic of Bulgaria on the 
reciprocal establishment of tariff quotas for certain wines 

A. Letter from the Community 

Brussels, 

1997 

Sir, 

I have the honour to refer to the Agreement of 29 November  1993 between the European 
Community  and the Republic of Bulgaria on the reciprocal establishment  of tariff  quotas 
for  certain  wines and to the negotiations  which have taken place between the  European 
Community  and  the  Republic  of  Bulgaria  with  a view  to  adapting  the  said  Agreement 
following  the  accession  of  the  Republic  of  Austria,  the  Republic  of  Finland  and  the 
Kingdom  of  Sweden  to the  European  Union,  and  to the consultations  on extending  the 
Agreement beyond 31 December  1997. 

I hereby confirm that the European Community and the Republic of Bulgaria have agreed 
on the following: 

I.  Table  1  in the Annex to the said Agreement is replaced by the following table: 

Quantities of wine originating in the Community and qualifying  for tariff reductions 

Bulgarian 
customs 
tariff code 

ex 2204 21 

ex 2204 29 

ex 2204 10 

Description 

1993 

1994 

1995 

1996 

1997 

1998 

Quantity  in hectolitres 

Wine  of 
grapes 

fresh 

42 000 

46 200 

50 400 

54 600 

58 800 

63 000 

1000 

1 100 

1200 

1 300 

1400 

1 500 

Quality  sparkling 
wine  whether  or 
in 
not  produced 
specified  regions, 
in 
containers 
holding  not  more 
than two litres 

II. Table 2 in the Annex to the said Agreement is replaced by the following table: 

Quantities of wine originating in Bulgaria and qualifying  for tariff  reductions 

CN code 

Description 

1993 

1994 

1995 

1996 

1997 

1998 

Quantity in hectolitres 

214 000 

247 000 

280 400 

313 600 

346 800 

401 230 

118 000 

118 000 

118 000 

118 000 

118 000 

128 000 

1 000 

1 100 

1  200 

1  300 

1400 

1 600 

ex 2204 2! 

ex 2204 29 

ex 2204 10 

Quality wine, 
including quality 
wine with a 
designation of 
origin 

Quality wine, 
including quality 
wine with a 
designation of 
origin, and wine 
obtained  from 
grapes of the 
'Gamza'  vine 
variety designated 
and presented 
under that name 
or under the 
synonym 
'Kadarka' 

Quality  sparkling 
wine, 
in 
containers holding 
no  more  than  2 
litres 

III.  Point 3(a) of the said Agreement is replaced by the following: 

"in  the  case  of  duties  applied  by  Bulgaria  to  imports  of  wine  originating  in  the 
Community: 

- 

- 

in 1993: 90% of the basic duty, 

in 1994: 80% of the basic duty, 

in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad 
valorem;" 

This  exchange  of  letters  shall  be  approved  by  the  contracting  Parties  in  accordance 
with their respective procedures. 

This Agreement  shall  enter  into  force  on  1 January  1998 and remain  in force  for  an 
initial  period  ending  on  31  December  1998.  During  the  first  half  of  1998, 
consultations  shall  take  place  to  determine  whether  and  under  what  conditions  it 
should be extended. 

3 

I should  be obliged  if you would confirm  that your Government  is in agreement  with 
the contents of this letter. 

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

On behalf of the Council of the European  Union 

-? 

B. Letter from Bulgaria 

Brussels, 

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  of  29  November  1993  between  the 
European  Community  and  the  Republic  of  Bulgaria  on  the  reciprocal  establishment  of 
tariff quotas for certain wines and to the negotiations which have taken place between the 
European  Community  and  the  Republic  of  Bulgaria  with  a  view  to  adapting  the  said 
Agreement  following  the accession of the Republic of Austria, the Republic of  Finland 
and  the  Kingdom  of  Sweden  to  the  European  Union,  and  to  the  consultations  on 
extending the Agreement beyond 31 December 1997. 

I hereby confirm that the European Community and the Republic of Bulgaria have agreed 
on the following: 

I.  Table  1  in the Annex to the said Agreement is replaced by the following table: 

Quantities of wine originating in the Community and qualifying  for tariff reductions 

Bulgarian 
customs 
tariff code 

ex 2204 21 

ex 2204 29 

ex 2204 10 

Description 

1993 

1994 

1995 

1996 

1997 

1998 

Quantity in hectolitres 

Wine  of 
grapes 

fresh 

42 000 

46 200 

50 400 

54 600 

58 800 

63 000 

1000 

1 100 

1200 

13f§ 

\m 

1 500 

Quality  sparkling 
wine  whether  or 
not  produced  in 
specified  répons, 
in 
containers 
holding  not  more 
titan two litres 

II. Table 2 in the Annex to the said Agreement is replaced by the following table: 

Quantities of wine originating in Bulgaria and qualifying  for tariff  reductions 

CN code 

Description 

1993 

1994 

1995 

1996 

1997 

1998 

Quantity  in hectolitres 

214 000 

247 000 

280 400 

313 600 

346 800 

401 230 

118 000 

118 000 

118 000 

118 000 

118 000 

128 000 

1000 

1 100 

1200 

1 300 

1400 

1600 

ex 2204 21 

ex 2204 29 

ex 2204 10 

Quality 
wine, 
including  quality 
a 
wine  with 
designation 
of 
origin 

Quality 
wine, 
including  quality 
a 
wine  with 
designation 
of 
origin,  and  wine 
from 
obtained 
the 
grapes 
vine 
'Gamza' 
variety  designated 
and 
presented 
under  that  name 
or 
the 
under 
synonym 
'Kadarka' 

of 

Quality  sparkling 
in 
wine, 
containers holding 
no  more  than  2 
litres 

III.  Point 3(a) of the said Agreement is replaced by the following: 

"in  the  case  of  duties  applied  by  Bulgaria  to  imports  of  wine  originating  in  the 
Community: 

- 

- 

in 1993: 90% of the basic duty, 

in  1994: 80% of the basic duty, 

in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad 
valorem," 

This  exchange  of  letters  shall  be  approved  by  the  contracting  Parties  in  accordance 
with their respective procedures. 

This  Agreement  shall  enter  into  force  on  1 January  1998 and  remain  in  force  for  an 
initial  period  ending  on  31  December  1998.  During  the  first  half  of  1998, 
consultations  shall  take  place  to  determine  whether  and  under  what  conditions  it 
should be extended. 

x /O 

I should  be obliged if you would confirm  that your Government  is in agreement with 
the contents of this letter." 

I have the honour to confirm  that my Government is in agreement with the contents of 
your letter. 

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

For the Government of the Republic of Bulgaria 

il 

FINANCIAL STATEMENT 

I. 

BUDGET HEADING: Chapter  10 Agricultural duties 

Date: 
APPROPRIATIONS: 
ECU 693.2 million  (*) 

TITLE: 
Council  Regulation  on the conclusion  ol'thc Agreement  in the form  of an exchange of letters between  the EC and  Bulgaria 

2. 

3. 

LEGAL BASIS: 
Article  113 of the Treaty 

AIMS: 
To extend  by one year the Agreement with Bulgaria. 

FINANCIAL  IMPLICATIONS 

5.0 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 

-  NATIONAL  AUTHORITIES 
-  OTHER 

5.1. 

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: 
See Annex 

PERIOD OF 12 
MONTHS 

(ECU million) 

CURRENT 
FINANCIAL 
YEAR 
(97) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR 
(98) 
(ECU  million) 

12,7 

12,7 

1998 

1999 

2000 

2001 

ECU  12,7 m 

6.0 

6.1 

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? 
WILL A SUPPLEMENTARY  BUDGET BE NECESSARY? 
WILL FUTURE  BUDGET APPROPRIATIONS BE NECESSARY? 

6.2 
6.3 
OBSERVATIONS: 

YES/NO 

YES/NO 

¥¥S/NO 
YES/NO 

(*) In accordance with the  1998 PDB 

The measure proposes extending and increasing the quotas granted. This will result in a loss in EC own resources, as the 
quantities  involved will enter at a reduced rate rather than the full rate as at present. 

*Z 

ISSN 0254-1475 

COM(97) 603 final 

DOCUMENTS 

EN 

11  03  02 

Catalogue number  : CB-CO-97-625-EN-C 

ISBN 92-78-27671-5 

Office for Officiai Publications of the Eurepaw CommuBrtw» 

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