Proposal for a Council Regulation (EC) establishing a concession in the form of a Community tariff quota for Turkey in 1998 in respect of hazelnuts and suspending certain concessions
Date: 1998-05-05
Institutions: European Commission
Subjects: Türkiye, enlargement of the Union, nut, tariff preference, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 05.05.1998 
COM(1998) 284 final 

98/0161 (ACC) 

it/ 

Proposal for a 

COUNCIL REGULATION (EC) 

establishing a concession in the form of a Community tariff quota for Turkey in 
1998 in respect of hazelnuts and suspending certain concessions 

(presented by the Commission) 

4304/98EN2 

EXPLANATORY  MEMORANDUM 

Subject: 

Draft  Council  Regulation  establishing  a  concession  in  the  form  of  a 
Community  tariff  quota  for  Turkey  in  1998  in  respect  of  hazelnuts  and 
suspending certain concessions 

The purpose  of this draft  Regulation  is to suspend  certain  autonomous  and  conventional 
concessions granted to Turkey by the Community. 

In  1996  Turkey  banned  all  imports  of  live  bovines  and  imposed  restrictions  on  beef 
imports.  It  is the Commission's  belief that  such  measures are unjustified  and  represent a 
non-tariff  barrier to trade. 

Bearing  in  mind  the  stalemate  after  three  rounds  of  negotiations  with  Turkey  on  the 
above  subject,  the  negative  impact  of  the  ban  on  our  exports  and  the  fact  that  the 
Community  will  not  be  able  to  benefit  from  the  concessions  granted  to  it  by  Turkey 
under  the  recently  adopted  Association  Council  Decision  1/98,  it  is  proposed  that  the 
situation to be counterbalanced  by means of the following measures: 

(1) 

(2) 

Suspension  of  the  opening  of  the  autonomous  quota  for  hazelnuts  (CN  codes 
08022100 and 08022200); 

Suspension of the opening of two conventional quotas for water melons (CN code 
ex  08071100)  and  certain  processed  tomatoes  (CN  codes  20029031, 20029039, 
20029091 and 20029099). 

These  measures,  intended  to  protect  the  Community's  commercial  interests,  will  be 
repealed  by  the  Commission  once  Turkey  has  lifted  the  barriers  to  the  preferential 
Community exports. 

-A, 

4304/98EN2 

Proposal for a 
COUNCIL REGULATION (EC) 

establishing a concession in the form of a Community tariff quota for Turkey in 

1998 in respect of hazelnuts and suspending certain concessions 

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 Act of Accession of Austria, Finland and Sweden, 

Having regard to the proposal  from  the Commission, 

Whereas  under  the  Agreement  establishing  an  Association  between  the  European 

Economic  Community  and  Turkey1  concessions  were  granted  to that  country  in  respect 

of certain agricultural products; 

Whereas,  following  the  accession  of  Austria,  Finland  and  Sweden,  the  concession  for 

hazelnuts  should  be adjusted  to  take  account  of  the  trade  arrangements  for  that  product 

which existed between Austria, Finland and Sweden, on the one hand, and Turkey, on the 

other; 

Whereas, in accordance with Articles 76,  102 and  128 of the  1994 Act of Accession, the 

Community  is required to adopt the necessary measures to remedy this situation; whereas 

those  measures  should  lake  the  form  of autonomous  Community  tariff  quotas  covering 

the conventional  preferential  tari IT concessions applied by Austria, Finland and Sweden; 

Whereas  Decision  1/98  of  the  EC-Turkey  Association  Council  provides  for  the 

improvement  and  consolidation  of  trade  preferences  relating  to  the  import  into  the 

OJ I.. 217, 29.12.1964, p. 3687/64. 

- 4 ^" 

-t-

4304/98EN2 

Community  of  agricultural  products  originating  in  Turkey  and  establishes  a  series  oT 

preferential  concessions for Community exports of meat and live animals to Turkey; 

Whereas  in  1996  Turkey  applied  a  ban  on  the  import  of  live  animals  of  the  bovine 

species  (CN  code  0102)  and  restrictions  on  the  import  of  beef  (CN  codes  0201-0202); 

whereas  those  measures,  being  quantitative  restrictions,  are  incompatible  with  the 

Agreement  and  prevent the Community  from  benefiting  from  the concessions  granted  to 

it  under  Decision  1/98;  whereas,  despite  talks  from  November  1997  to  February  1998 

intended  to  achieve  a  negotiated  solution  with  Turkey  to  the  problem,  the  quantitative 

restrictions are still in place; 

Whereas,  as  a  result  of  the  restrictions,  exports  to  Turkey  of  the  products  in  question 

originating  in the Community  are blocked; whereas, in order to protect the  Community's 

commercial  interests,  the  situation  should  be  counterbalanced  by  means  of  equivalent 

measures;  whereas  the  concessions  set  out  in  the  Annexes  to  this  Regulation  should 

therefore  be suspended, 

HAS ADOPTED  THIS REGULATION; 

Article 1 

Without  prejudice  to the  import arrangements  in the Community  applicable  to  hazelnuts 

under  the  Agreement  concluded  between  the  Community  and  Turkey,  the  existing 

Community  tariff  quota  shall  be  increased  autonomously  for  1998  in  accordance  with 

Annex I to this Regulation. Articles 4 to 8 of Regulation (EC) No  1981/942 shall apply. 

Article 2 

The autonomous  tariff  quota  of  9 060  tonnes  laid  down  in  Annex  I and  the  two  tariff 

quotas laid down in Annex II are hereby suspended. 

2  O.I I,  199, 2.8.1994, p.  I.  Regulation  last  amended  by  Regulation  (HC) No 650/98  of 2?>  March  1998 

(0.11,88,24.3.1998, p. 8). 

- V-

4304/98EN2 

Article 3 

In  accordance  with  the  procedure  laid  down  in  Article  29  of  Regulation  (EC) 

No 2200/963 or, as the case may be, in the corresponding Articles of the other regulations 

on the common organisation  of markets in agricultural  products, or in Articles 6 and 7 of 

Regulation  (EC)  No  1981/94,  the  Commission  shall  repeal  the  measures  referred  to  in 

Article  2 once  the  barriers  to  preferential  exports  from  the  Community  to  Turkey  have 

been  lifted. 

Article 4 

This Regulation  shall enter into force  on the 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 Brussels, 

O.I  1.297,  21.1  1.1996,  p.  I 

Serial 
number 

CN code 

Description of goods 

Annex 1 

Size of 
conventional 
quota (in tonnes) 
d) 

Size of 
Autonomous 
quota (in tonnes) 

Rate of duty 
applicable 

09.0201 

08022100 
08022200 

Hazelnuts (Corylus spp), fresh or 
dried, in shell or shelled 

25000 

9060 

Free 

(1) Quota opened under Community preferential agreements. 

.  -'  _ . 

4304/98RN2 

I 

i 
i 
| 
j 

1 

i 

-  5"~ 

4304/98EN2 

Annex II 

Serial 

CN code 

Description of goods 

number 

Size of quota per year or 
per period  indicated 
(tonnes) 

Rate of duty 
applicable 

90217 

ex 0807 11 00 

Water melons, fresh: 

90.209 

2002 90 31 
2002 90 39 
2002 90 91 
2002 90 99 

from 16 June to 31 March 
Tomatoes prepared or preserved otherwise than by 
vinegar or acetic acid, other than whole or in pieces, 

with a dry matter content of 12% or more by weight: 

from 1 July to 31 December 

14 000 
_ 
15 000, 
with a  dry matter 
content of 28/30% 
by weight 

Free 

Free 

L  ~ 

4304/98ENff 

FINANCIAL STATEMENT 

BUDGET HEADING: Chapter  10 - Agricultural duties 

APPROPRIATIONS: ECU 623,8m 

TITLE: Draft  Council Regulation establishing a concession  in the form of a Community  tariff  quota for  Turkey  in  1998 in 
respect of hazelnuts and suspending certain  concessions 

LEGAL BASIS: Article  113 of the Treaty 

AIMS OF PROJECT: 

Provisionally to adapt the Community tariff quotas granted to Turkey following the enlargement of the Union. 

FINANCIAL  IMPLICATIONS 

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

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

PERIOD OF 12 
MONTHS 
ECU million 

CURRENT 
FINANCIAL YEAR 
(1998) 
ECU million 

FOLLOWING 
FINANCIAL YEAR 
1999 
ECU million 

-  172049  (1) 

+ 3193101  (2) 

1998 

1999 

2000 

2001 

2. 

3. 

4. 

5. 

5.0. 

5.1. 

5.0.1. 

ESTIMATED  EXPENDITURE 

5.1.1. 

ESTIMATED  REVENUE 

ECU 3m 

5.2. 

6.0. 

6.1. 

6.2. 

6.3. 

METHOD OF CALCULATION: (See Annex) 

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? 

YES 

NO 

NO 

OBSERVATIONS: 

% 

1.  Concession covering hazelnuts 

This concession is an extension of the measure adopted in 1997 (Council Regulation (EC) No 1555/97). 

4304/98ENff 

Existing duty: 3.5% 

Proposed duty: 0% 

Autonomous quota: 9 0601 

Unit value cif: USD 4.5/kg or ECU 4.1/kg 

Losses: 9 060 t x 0.035 x ECU 4.1 /kg x 90% x 1  000 = - 1 170 099 

" 

Change in import flows or impact as compared with  1997: 998 050-1  170 099 = -  172 049 

2. 

Suspended concessions 

Theoretical rise in own resources as a result of concessions suspended, assuming imports remain unchanged 

Hazelnuts: 9 0601 x 0.035 x ECU 4.1 /kg x 90% x 1  000 = 

1 170 099 

Tomatoes: 15 0001 x ECU 723/t x 16.2% = 

Watermelons: 14 0001 x ECU 192/t x 9.9% = 

1  756 890 

266 112 

Total 

+ 

3 193 101 

3. 

Should  there  be a fall  in  imports  as  a result  of  the concession  suspended,  the theoretical  increase  in own 
resources would fall by the same amount. 

ISSN 0254-1475 

COM(98) 284  final 

DOCUMENTS 

EN 

11  03  02  10 

Catalogue  number  :  CB-CO-98-293-EN-C 

ISBN 92-78-35572-0 

Office  for Official  Publications of the European Communities 

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