Council Regulation (EC) No 1154/98 of 25 May 1998 applying the special incentive arrangements concerning labour rights and environmental protection provided for in Articles 7 and 8 of Regulations (EC) No 3281/94 and (EC) No 1256/96 applying multiannual schemes of generalised tariff preferences in respect of certain industrial and agricultural products originating in developing countries
Date: 1998-05-25
Institutions: Council of the European Union
Subjects: agricultural product, developing countries, environmental protection, generalised preferences, industrial product, labour law

4. 6. 98

EN

Official Journal of the European Communities

L 160/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1154/98

of 25 May 1998

applying the special incentive arrangements concerning labour rights and envir-
onmental protection provided for in Articles 7 and 8 of Regulations (EC) No
3281/94 and (EC) No 1256/96 applying multiannual schemes of generalised tariff
preferences in respect of certain industrial and agricultural products originating
in developing countries

THE COUNCIL OF THE EUROPEAN UNION,

ing compliance with international social and envir-
onmental standards;

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

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parlia-
ment (2),

Having regard to the opinion of the Economic and Social
Committee (3),

(1) Whereas Articles 7 and 8 of Regulations (EC) No
3281/94 (4) and (EC) No 1256/96 (5) provide that, as
from 1 January 1998, special
incentive arrange-
ments in the form of additional preferences may be
granted to developing countries covered by the
abovementioned Regulations; whereas to this end,
the Council has undertaken a review on the basis of
Commission reports on the results of work within
the International Labour Organisation (ILO), the
World Trade Organisation (WTO), the Organisa-
tion for Economic Cooperation and Development
(OECD) and the International Tropical Timber
Organisation (ITTO) on the link between trade and
labour rights and between trade and the environ-
ment;

(2) Whereas in the light of this review the results of
the international debate on social and environ-
mental clauses encourage the implementation of
positive, development-oriented incentives reward-

(1) OJ C 360, 26. 11. 1997, p. 9.
(2) OJ C 14, 19. 1. 1998.
(3) OJ C 73, 9. 3. 1998, p. 51.
(4) OJ L 348, 31. 12. 1994, p. 1. Regulation as last amended by
Regulation (EC) No 998/97 (OJ L 144, 4. 6. 1997, p. 13).
(5) OJ L 160, 29. 6. 1996, p. 1. Regulation as last amended by
Regulation (EC) No 2448/96 (OJ L 333, 21. 12. 1996, p. 12).

(3) Whereas

the

special

arrangements
provided for in Articles 7 and 8 of Regulations (EC)
No 3281/94 and (EC) No 1256/96 meet this ob-
jective;

incentive

(4) Whereas the special incentive arrangements should
be applied to countries which are beneficiaries of
the
scheme of generalised tariff preferences;
whereas this should also be the case in sectors
where they may be subject to the graduation mech-
anism; whereas, however, this should not be the
case for
to the arrangements
provided for in Article 5(1) of Regulations (EC) No
3281/94 and (EC) No 1256/96, as they are excluded
for reasons of competitive capacity irrespective of
the level of development of the country concerned;

subject

sectors

(5) Whereas, under Article 7(1) of Regulations (EC) No
the incentives
3281/94 and (EC) No 1256/96,
concerning labour rights may be granted only to
countries which request
them in writing and
provide proof that they apply legislation incorpor-
ating the substance of the standards laid down in
International Labour Organisation (ILO) Conven-
tions Nos 87 and 98 concerning the application of
the principles of
to organise and to
the right
bargain collectively and ILO Convention No 138
concerning the minimum age for admission to
employment;

(6) Whereas

the

special

arrangements
concerning labour rights should be confined to
countries, or in certain cases, to production sectors
that have actually taken steps to comply with the

incentive

L 160/2

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Official Journal of the European Communities

4. 6. 98

ILO Conventions in question; whereas provisions
must therefore be made for the special arrange-
ments to apply to certain sectors but not to others;

Annex I included in Annex II to Regulations (EC)
No 3281/94 and (EC) No 1256/96 respectively;

arrangements

(7) Whereas, under Article 8(1) of Regulations (EC) No
3281/94 and (EC) No 1256/96, the special incen-
tive
environmental
protection may be granted only to countries that
request them and provide proof that they apply
legislation incorporating the substance of
the
standards of
the International Tropical Timber
Organisation (ITTO);

concerning

(8) Whereas requests for the special social and envir-
onmental incentive arrangements must be subject
to a publication procedure enabling interested
persons to make known their views; whereas the
decision on whether to grant special arrangements
must be taken after the Commission has examined
the requests closely and the Generalised Prefer-
favourable
ences Committee has delivered a
opinion;

(9) Whereas operation of the incentive arrangements
concerning labour rights is contingent on certifica-
tion by the authorities of the beneficiary countries
of product conformity with the abovementioned
standards and the application of administrative
cooperation procedures similar to those used to
verify the origin of goods;

(12) Whereas the only internationally recognised envir-
onmental standards at the moment are for tropical
forests; whereas the special incentive arrangements
concerning environmental protection will therefore
timber
apply solely to the products of
processing;

tropical

(13) Whereas the international criteria for the preserva-
tion of tropical forests cannot for the time being be
used to monitor logging operations; whereas at this
stage it is preferable, for the purposes of the special
incentive arrangements for the environment, to vet
countries thoroughly in advance without prejudice
to subsequent use of ex-post verification as soon as
conditions so permit; whereas the additional prefer-
ential margins granted under such arrangements
may be the same as those adopted in the social
field;

(14) Whereas, however, owing to the great sensitivity of
the products referred to in Part 1 of Annex I to
Regulations (EC) No 3281/94 and (EC) No 1256/
96, the additional reduction in duty from which
these products may benefit under
the special
incentive arrangements should be limited to 40 %;

(10) Whereas

for

the purposes of certification and
administration cooperation procedures,
recourse
should be had to the relevant provisions of
Commission Regulation (EEC) No 2454/93 of 2
July 1993 laying down provisions for the imple-
mentation of Council Regulation (EEC) No 2913/
92 establishing the Community Customs Code (1);
whereas however
should be
provided in order to safeguard the justified interest
of importers using the special incentives arrange-
ments;

special procedures

(11) Whereas the additional preferential margin must
be attractive if the arrangements are to be fully
effective as an incentive; whereas this objective
could be met by doubling the basic preferential
margin for products of Annex I to Regulation (EC)
No 3281/94, fixing the offer for products of Annex
I to Regulation (EC) No 1256/96 at about 66 % of
the basic preferential margin for agricultural prod-
ucts, and setting the margin at 25 % and 15 % of
the Common Customs Tariff duty for products of

(1) OJ L 253, 11. 10. 1993, p. 1. Regulation as last amended by

Regulation (EC) No 75/98 (OJ L 7, 13. 1. 1998, p. 3).

(15) Whereas

for

the procedures

implementing the
this Regulation are based on the
provisions of
measures set out in the Commission communica-
tion to the European Parliament and the Council
on the management of preferential tariff arrange-
ments,
in particular with regard to identifying
government authorities in the beneficiary countries,
their assumption of responsibility, their training
and the organisation of surveys in those countries;

(16) Whereas in the context of introducing new multi-
annual schemes of generalised tariff preferences to
replace the schemes established under Regulations
(EC) No 3281/94 and (EC) No 1256/96, considera-
tion should be given to the improvements to be
arrangements
made
special
concerning environmental protection,
including
the possibility of extending its scope depending on
the outcome of implementing this Regulation;

incentive

to the

(17) Whereas in certain circumstances it may be appro-
priate to withdraw some or all of a country’s advan-
tages under
incentive arrangements
temporarily; whereas this is the case where benefi-
ciary States fail to honour their commitments,

the special

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L 160/3

HAS ADOPTED THIS REGULATION:

TITLE I

SPECIAL INCENTIVE ARRANGEMENTS CONCERN-
ING LABOUR RIGHTS

Article 1

incentive arrangements provided for

The special
in
Article 7 of Regulations (EC) No 3281/94 and (EC) No
1256/96 shall be introduced according to the terms and
conditions laid down in this Title.

The reduction in duty referred to in the previous

4.
paragraphs shall not be accorded to:

(cid:190) the countries and sectors referred to in Article 5(1) of
Regulations (EC) No 3281/94 and (EC) No 1256/96,

(cid:190) countries excluded from preferences under Article 6
of Regulations (EC) No 3281/94 and (EC) No 1256/
96.

The application of

5.
incentive arrange-
ments shall not result in a more favourable treatment
than that applied under Article 3(2) of Regulation (EC)
No 1256/96.

the special

Article 2

S e c t i o n 1

1.
The preferential duty applying to the products
referred to in Article 2(1), (2) and (3) of Regulation (EC)
No 3281/94 which comply with the conditions of this
Title shall be reduced by an amount equal to:

(cid:190) 15 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 1 of Annex I,

(cid:190) 25 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 2 of Annex I,

(cid:190) 35 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 3 of Annex I.

2.
The preferential duty applying to the products
referred to in Article 2(1), (2) and (3) of Regulation (EC)
No 1256/96 which comply with the conditions of this
Title shall be reduced by an amount equal to:

(cid:190) 10 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 1 of Annex I,

(cid:190) 20 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 2 of Annex I,

(cid:190) 35 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 3 of Annex I.

3.

(a) The duty applying to the products listed in Annex
I and included in Part 1 of Annex II to Regulation
(EC) No 3281/94 which comply with the condi-
tions of this Title shall be reduced by an amount
equal to 25 % of the Common Customs Tariff
duty applying to the product in question;

(b) the duty applying to the products listed in Annex I
and included in Part 1 of Annex II to Regulation
(EC) No 1256/96 which comply with the condi-
tions of this Title shall be reduced by an amount
equal to 15 % of the Common Customs Tariff
duty applying to the product in question.

Procedure for granting the arrangements

Article 3

1. Without prejudice to the following Articles,
the
reductions specified in Article 2 shall apply to products
originating in the beneficiary countries listed in Annex
III to Regulations (EC) No 3281/94 and (EC) No 1256/96
on condition that the authorities of such countries have
applied to the Commission in writing to take advantage
of the special incentive scheme, giving details of:

(cid:190) their domestic legislation incorporating the substance
of the standards laid down in ILO Conventions Nos
87 and 98 concerning application of the principles of
the right to organise and to bargain collectively and
Convention No 138 concerning the minimum age of
admission to employment; the full text of such legisla-
tion must be attached, together with an authentic
translation into one of the Community languages,

(cid:190) the measures taken to implement and monitor that
legislation effectively, any sectoral
limits on their
application, any breaches observed and a breakdown
of such breaches by production sector,

(cid:190) a commitment by the government of the country in
question to take full responsibility for monitoring
application of the special arrangements and the rel-
evant administrative cooperation procedures.

2.
The Commission shall publish a notice in the Offi-
cial Journal of the European Communities, announcing
that such a request has been made by a beneficiary
country
information
concerning the request may be sent to the Commission
by any interested natural or legal person; it shall set the
period during which interested persons may make known
their views.

and stating

any useful

that

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Official Journal of the European Communities

4. 6. 98

Article 4

the committee referred to in Article 17 of Regulation (EC)
No 3281/94.

The Commission shall

1.
requests
submitted by the beneficiary countries, and depending on
the content, may put any further questions which it
considers useful.

examine

the

2.
The Commission shall seek whatever information it
considers necessary and may check this information
where appropriate with the persons referred to in Article
3(2) or any other natural or legal person.

3.
In the beneficiary countries, and in cooperation with
them, the Commission may carry out checks to verify all
or part of the information gathered. The Commission
shall request the authorities of the beneficiary country
concerned to cooperate in these inquiries. The Commis-
sion may be assisted in this task by the Member States.

4.
The Commission shall complete the examination of
a request no later than one year from the date of receipt.
The Commission may if necessary extend this deadline
and shall inform the Committee referred to in Article 17
of Regulation (EC) No 3281/94 of any such extension.

5.
The Commission shall submit the findings of its
examination to the Committee referred to in Article 17 of
Regulation (EC) No 3281/94.

Article 5

1.
The Commission shall decide, in accordance with
the procedure laid down in Article 16, either to apply the
special incentive arrangements to products originating in
the requesting country on condition that the monitoring
and administrative cooperation arrangements defined in
the following Articles of this Title are observed, or not to
apply the special incentive arrangements if it considers
implementing
that the requesting country’s legislative,
and monitoring provisions do not ensure effective
application of ILO Conventions Nos 87, 98 and 138.

2. Where the special incentive arrangements cannot be
applied in accordance with the procedures laid down in
paragraph 1, the Commission may decide, in accordance
with the procedure laid down in Article 16, that the
special incentive arrangements be granted to some sectors
it
if, after the examination provided for in Article 4,
considers that ILO Conventions Nos 87, 98 and 138 are
effectively applied only in those sectors.

3. Requesting countries
shall be notified by the
Commission of decisions taken pursuant to paragraphs 1
and 2 and of the date on which they enter into force.

In particular, if the Commission decides not to grant
4.
incentive arrangements to a country or to
the special
exclude some sectors, it shall explain the reasons for its
decision to the applicant country if so requested. Such
dialogue shall be conducted in close coordination with

S e c t i o n 2

Monitoring procedure and administrative coopera-
tion methods

Article 6

Products referred to in Article 2 originating in coun-
1.
tries which have been notified of a decision granting
them entitlement to the special incentive arrangements
shall be admitted under the arrangements provided for in
Article 2 from the date of entry into force of that decision
on presentation of a statement by the beneficiary coun-
try’s relevant authorities duly identified during the exam-
ination of the request, certifying that the products in
question and their components manufactured in that
country or in a country entitled to regional cumulation
within the meaning of Article 72 of Regulation (EEC) No
2454/93, have been manufactured under conditions
complying with the domestic legislation referred to in the
first indent of Article 3(1) and are therefore eligible for
the special incentive arrangements.

The statement referred to in paragraph 1 shall bear

2.
the following endorsement, as appropriate:

‘ILO Conventions Nos 87, 98, 138 (cid:190) Article 7 of
Regulation (EC) No 3281/94'

‘ILO Conventions Nos 87, 98, 138 (cid:190) Article 7 of
Regulation (EC) No 1256/96'

and shall be entered in box 4 of the certificate of origin
form A or on the invoice declaration provided for in
Article 90 of Regulation (EEC) No 2454/93.

This statement shall be validated by a stamp of the bene-
ficiary country’s authority referred to in paragraph 1, in
accordance with the provisions of Article 93 of Regulation
(EEC) No 2454/93.

In the case of products listed in Part 1 of Annex II to
3.
Regulations (EC) No 3281/94 and (EC) No 1256/96 to
which full graduation applies, the certificate of origin
form A or the invoice declaration shall be valid solely in
respect of the special incentive arrangements and not for
any other preferential treatment.

Article 7

1.
The provisions of Article 81(3) to (6), Article 84 and
Articles 93 to 95 of Regulation (EEC) No 2454/93 shall
apply mutatis mutandis to the statements referred to in
Article 6 of this Regulation.

2.
The issuing authorities for the statements referred to
in Article 6 may be different from those for certificates of
origin form A.

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L 160/5

3. With regard to Article 94(5) of Regulation (EEC) No
2454/93, the Commission shall establish a non-exhaustive
list of criteria specifying cases of reasonable doubt which
may arise for these incentives, in cooperation with the
Committee referred to in Article 17 of Regulation (EC)
No 3281/94, at the latest by the time at which a request
for special preferences is granted. The Commission shall
publish this list in the Official Journal of the European
Communities.

4.

(a) The customs authorities in the Community shall
inform the Commission, which shall immediately
publish a notification in the Official Journal of
the European Communities:

(cid:190) that reasonable doubt exists about the entitle-
ment to the special incentives, making clear
the products, producers and exporters to which
it applies, when the second communication
referred to in Article 94(5) of Commission
Regulation (EEC) No 2454/93 is sent, and
concerns the benefits granted in this Regula-
tion, or

(cid:190) that a particular product from particular produ-
cers and exporters is not entitled to the special
incentives, when it has been so established
using the procedure in Article 94 of Commis-
sion Regulation (EEC) No 2454/93.

(b) The part of any customs debt which corresponds to
the benefits granted under this Regulation shall be
considered not to be incurred unless it is incurred
after the date of publication of the notification
referred to in subparagraph (a) and the debt
concerns
and exporter
specially mentioned therein, or unless the condi-
tions justifying the application of Article 221(3) of
Regulation (EEC) No 2913/92 (1), second sentence,
exist.

a product, producer

TITLE II

SPECIAL INCENTIVE ARRANGEMENTS CONCERN-
ING ENVIRONMENTAL PROTECTION

Article 8

The special incentive arrangements referred to in Article
8 of Regulations (EC) No 3281/94 and (EC) No 1256/96
shall be introduced under the terms and conditions laid
down in this Title.

Article 9

This Title shall be applicable to the products listed in the
Annex.

(1) OJ L 302, 19. 10. 1992, p. 1.

Article 10

1.
The preferential duty applying to the products
referred to in Article 2(1), (2) and (3) of Regulation (EC)
No 3281/94 which comply with the conditions of this
Title shall be reduced by an amount equal to:

(cid:190) 15 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 1 of Annex I,

(cid:190) 25 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 2 of Annex I,

(cid:190) 35 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 3 of Annex I.

The preferential duty applying to the products
2.
referred to in Article 2(1), (2) and (3) of Regulation (EC)
No 1256/96 which comply with the conditions of this
Title shall be reduced by an amount equal to:

(cid:190) 10 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 1 of Annex I,

(cid:190) 20 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 2 of Annex I,

(cid:190) 35 % of the Common Customs Tariff duty applying
to the product in question for the products listed in
Part 3 of Annex I.

3.

(a) The duty applying to the products listed in Annex
I and included in Part 1 of Annex II to Regulation
(EC) No 3281/94 which comply with the condi-
tions in this Title shall be reduced by an amount
equal to 25 % of the Common Customs Tariff
duty applying to the product in question.

(b) The duty applying to the products listed in Annex
I and included in Part 1 of Annex II to Regulation
(EC) No 1256/96 which comply with the condi-
tions in this Title shall be reduced by an amount
equal to 15 % of the Common Customs Tariff
duty applying to the product in question.

The reduction in duty referred to in paragraphs 1

4.
and 2 shall not apply:

(cid:190) to the countries and sectors referred to in Article 5(1)
of Regulations (EC) No 3281/94 and (EC) No 1256/
96,

(cid:190) to countries excluded from preferences under Article
6 of Regulations (EC) No 3281/94 and (EC) No 1256/
96.

The application of

incentive arrange-
5.
ments shall not result in a more favourable treatment
than that applied under Article 3(2) of Regulation (EC)
No 1256/96.

the special

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4. 6. 98

S e c t i o n 1

and shall inform the Committee referred to in Article 17
of Regulation (EC) No 3281/94 of any such extension.

Procedure for granting the arrangements

5.
The Commission shall submit the findings of its
examination to the Committee referred to in Article 17 of
Regulation (EC) No 3281/94.

Article 11

Article 13

1. Without prejudice to the following Articles,
the
reductions specified in Article 10 shall apply to products
originating in the beneficiary countries listed in Annex
III to Regulations (EC) No 3281/94 and (EC) No 1256/96
on condition that the authorities of such countries have
applied to the Commission in writing to take advantage
of the special incentive scheme, giving details of:

(cid:190) their domestic legislation incorporating the substance
of the ITTO standards; the full text of such legislation
must be attached, together with an authentic transla-
tion into one of the Community languages,

(cid:190) the measures taken to implement that legislation,

(cid:190) their commitment to maintain that legislation and the

implementing measures.

2.
The Commission shall publish a notice in the Offi-
cial Journal of the European Communities announcing
that such a request has been made by a beneficiary
country
information
concerning the request may be sent to the Commission
by any interested natural or legal person; it shall set the
period during which interested persons may make known
their views.

and stating

any useful

that

Article 12

The Commission shall

requests
1.
submitted by the beneficiary countries and, depending on
the content, may put any further questions which it
considers useful.

examine

the

2.
The Commission shall seek whatever information it
considers necessary and may check this information
where appropriate with the persons referred to in Article
11(2) or any other natural or legal person.

3.
In the beneficiary countries, and in cooperation with
them, the Commission may carry out checks to verify all
or part of the information gathered. The Commission
the beneficiary country
shall offer the authorities of
concerned every opportunity to cooperate in these en-
quiries. The Commission may be assisted in this task by
the Member States.

4.
The Commission shall complete the examination of
a request no later than one year from the date of receipt.
The Commission may if necessary extend this deadline

The Commission shall decide in accordance with the

1.
procedure laid down in Article 16:

(cid:190) either to apply the special incentive arrangements to
products originating in the requesting country,

(cid:190) or, if it is considered that the requesting country’s
legislation is not sufficient to ensure effective applica-
tion of the substance of the ITTO standards, not to
apply the special
to that
country.

incentive arrangements

shall be notified by the
2. Requesting countries
Commission of decisions taken pursuant to paragraph 1
and of the date on which they enter into force.

3.
In particular, if the Commission decides not to grant
the special incentive arrangements to a country, it shall
explain the reasons for its decision to the applicant
country if so requested. Such dialogue shall be conducted
in close coordination with the Committee referred to in
Article 17 of Regulation (EC) No 3281/94.

S e c t i o n 2

Monitoring procedure and administrative coopera-
tion methods

Article 14

1. Certificates of origin form A issued for products
referred to in Article 10 and the invoice declarations
provided for in Article 90 of Regulation (EEC) No 2454/
93 shall bear the following endorsement, as appropriate:

(cid:190) ‘Environmental clause (cid:190) Article 8 of Regulation

(EC) No 3281/94'

(cid:190) ‘Environmental clause (cid:190) Article 8 of Regulation

(EC) No 1256/96'.

2.
In the case of products listed in Part 1 of Annex II to
Regulations (EC) No 3281/94 and (EC) No 1256/96 to
which full graduation applies, the certificate of origin
form A or the invoice declaration shall be valid solely in
respect of the special incentive arrangements and not for
any other preferential treatment.

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TITLE III

PROCEDURES AND GENERAL AND FINAL PROVI-
SIONS

Article 15

1. Without prejudice to the second subparagraph of
Article 94(2) of Commission Regulation (EEC) No 2454/
93, a country may have its entitlement to the special
incentive arrangements totally or partially withdrawn
temporarily if
that
sufficient evidence that
country has not
fulfilled its obligations within the
meaning of Articles 3 and 11 of this Regulation. Such
total or partial withdrawal shall be without prejudice to
the possible application of Article 9 of Regulations (EC)
No 3281/94 and (EC) No 1256/96.

there is

The withdrawal decision referred to in paragraph 1
2.
shall be adopted in accordance with the procedure laid
down in Article 16.

Article 16

1.
The Commission shall be assisted by the Committee
referred to in Article 17 of Regulation (EC) No 3281/94.

2.
The Commission representative shall submit to the
Committee a draft of the measures to be taken. The
Committee shall deliver its opinion on the draft within a
time limit which the Chairman may lay down according
to the urgency of the matter. The opinion shall be deliv-
ered by the majority laid down in Article 148(2) of the
Treaty in the case of decisions which the Council
is
required to adopt on a proposal from the Commission.
The votes of the representatives of the Member States
within the Committee shall be weighted in the manner
set out in that Article. The Chairman shall not vote.

The Commission shall adopt the measures envisaged if
they are
the
Committee.

in accordance with the opinion of

If the measures envisaged are not in accordance with the
opinion of the Committee, or if no opinion is delivered,
the Commission shall, without delay, submit
to the
Council a proposal relating to the measures to be taken.
The Council shall act by a qualified majority.

If, within three months of referral to the Council, the
Council has not acted, the proposed measures shall be
adopted by the Commission.

Article 17

effects of

On the basis of an annual report from the Commission,
the Generalised Preferences Committee set up under
Article 17 of Regulation (EC) No 3281/94 shall examine
the
arrangements,
including the progress made by the beneficiary countries
and the measures being considered to remedy reported
shortcomings. Those measures shall be adopted in accord-
ance with the procedures laid down in Article 16.

incentive

special

the

Article 18

For the highly sensitive products referred to in Part 1 of
Annex I to Regulations (EC) No 3281/94 and (EC) No
1256/96 the reduction in duty resulting from the applica-
tion of this Regulation may not exceed 40 %.

Article 19

This Regulation shall enter into force the day after its
publication in the Official Journal of the European
Communities. It shall cease to apply on the date of expiry
of Regulations (EC) No 3281/94 and (EC) No 1256/96.

Decisions taken under the present Regulation shall auto-
matically expire with the expiry of Regulations (EC) No
3281/94 and (EC) No 1256/96.

incentive arrangement
Decisions granting the special
adopted under the present Regulation shall automatically
expire when all benefits under Regulations (EC) No 3281/
94 and (EC) No 1256/96 cease to apply to the beneficiary
country in question.

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

Done at Brussels, 25 May 1998.

For the Council

The President

R. COOK

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4. 6. 98

ANNEX

LIST OF PRODUCTS REFERRED TO IN ARTICLE 9 (1)

CN code

(1)

Description of goods

(2)

Wood sawn or chipped lengthwise,
sanded or finger-jointed, of a thickness exceeding 6 mm:

sliced or peeled, whether or not planed,

– Of tropical wood specified in subheading note 1 to this chapter:

– – Virola, mahogany (Swietenia spp.), imbuia and balsa:

4407 24 10

– – – Finger-jointed, whether or not planed or sanded

– – – Other:

4407 24 30

– – – – Planed

4407 24 50

– – – – Sanded

– – Dark red meranti, light red meranti and meranti bakau:

4407 25 10

– – – Finger-jointed, whether or not planed or sanded

– – – Other:

– – – – Planed:

4407 25 31

– – – – – Blocks, strips and friezes for parquet or wood-block flooring, not assem-

bled

4407 25 39

– – – – – Other

4407 25 50

– – – – Sanded

– – White lauan, white meranti, white seraya, yellow meranti and alan:

4407 26 10

– – – Finger-jointed, whether or not planed or sanded

– – – Other:

– – – – Planed:

4407 26 31

– – – – – Blocks, strips and friezes for parquet or wood-block flooring, not assem-

bled

4407 26 39

– – – – – Other

4407 26 50

– – – – Sanded

– – Other:

– – – Keruing, ramin, kapur, teak,

jelutong, kempas, okoum(cid:130),
jongkong, merbau,
ob(cid:130)ch(cid:130), sapelli, sipo, acajou d’Afrique, makor(cid:130), iroko, tiama, mansonia, ilomba,
dib(cid:130)tou, limba, azob(cid:130), palissandre de Rio, palissandre de Para and palissandre
de Rose:

4407 29 10

– – – – Finger-jointed, whether or not planed or sanded

– – – – Other:

– – – – – Planed:

4407 29 20

– – – – – – Palissandre de Rio, palissandre de Para and palissandre de Rose

– – – – – – Other:

4407 29 31

– – – – – – – Blocks, strips and friezes for parquet or wood-block flooring, not

assembled

4407 29 39

– – – – – – – Other

4407 29 50

– – – – – – Sanded

– – – Other:

4. 6. 98

EN

Official Journal of the European Communities

L 160/9

CN code

(1)

Description of goods

(2)

4407 29 70

– – – – Finger-jointed, whether or not planed or sanded

– – – – Other:

4407 29 83

– – – – – Planed

4407 29 85

– – – – – Sanded

Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a
thickness not exceeding 6 mm:

– Of tropical wood specified in subheading note 1 to this chapter:

4408 31

– – Dark red meranti and meranti bakau

– – Other:

– – – White lauan, sipo, limba, okoum(cid:130), ob(cid:130)ch(cid:130), acajou d’Afrique, sapelli, virola,
mahogany (Swietenia spp.), palissandre de Rio, palissandre de Para and palis-
sandre de Rose:

4408 39 11

– – – – Finger-jointed, whether or not planed or sanded

– – – – Other:

4408 39 21

– – – – – Planed

4408 39 25

– – – – – Sanded

– – – – – Other:

4408 39 31

– – – – – – Of a thickness not exceeding 1 mm

4408 39 35

– – – – – – Of a thickness exceeding 1 mm

– – – Other:

4408 39 51

– – – – Finger-jointed, whether or not planed or sanded

– – – – Other:

4408 39 61

– – – – – Planed

4408 39 65

– – – – – Sanded

– – – – – Other:

– – – – – – Other:

– – – – – – Of a thickness not exceeding 1 mm:

4408 39 81

– – – – – – – – Makor(cid:130), iroko, tiama, mansonia, ilomba, dib(cid:130)tou, azob(cid:130), white
meranti, white seraya, yellow meranti, alan, keruing, ramin,
kapur, teak, jongkong, merbau, jelutong, kempas, imbuia and
balsa

4408 39 89

– – – – – – – – Other

– – – – – – Of a thickness exceeding 1 mm:

4408 39 91

– – – – – – – – Makor(cid:130), iroko, tiama, mansonia, ilomba, dib(cid:130)tou, azob(cid:130), white
meranti, white seraya, yellow meranti, alan, keruing, ramin,
kapur, teak, jongkong, merbau, jelutong, kempas, imbuia and
balsa

4408 39 99

– – – – – – – – Other

Plywood, veneered panels and similar laminated wood:

– Plywood consisting solely of sheets of wood, each ply not exceeding 6 mm:

L 160/10

EN

Official Journal of the European Communities

4. 6. 98

CN code

(1)

Description of goods

(2)

4412 13

– – With at least one outer ply of tropical wood specified in subheading note 1 to this

chapter

– Other, with at least one outer ply of non-coniferous wood:

4412 22

– – With at least one ply of tropical wood specified in subheading note 1 to this

chapter

– Other:

4412 92

– – With at least one ply of tropical wood specified in subheading note 1 to this

chapter

Wooden frames for paintings, photographs, mirrors or similar objects:

4414 00 10

– Of tropical wood, as specified in additional note 2 to this chapter

Builders’
parquet panels, shingles and shakes:

joinery and carpentry of wood, including cellular wood panels, assembled

– Windows, french windows and their frames:

4418 10 10

– – Of tropical wood, as specified in additional note 2 to this chapter

– Doors and their frames and thresholds:

4418 20 10

– – Of tropical wood, as specified in additional note 2 to this chapter

Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar
articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture
not falling in Chapter 94:

– Statuettes and other ornaments, of wood:

4420 10 11

– – Of tropical wood, as specified in additional note 2 to this chapter

– Other:

– – Wood marquetry and inlaid wood:

4420 90 11

– – – Of tropical wood, as specified in additional note 2 to this chapter

– – Other:

4420 90 91

– – – Of tropical wood, as specified in additional note 2 to this chapter

ex 9401 50 00

Seats of cane or bamboo

ex 9401 61 00

Other seats, upholstered, with wooden frames, of tropical wood, as specified in sub-
heading note 1 to Chapter 44

Furniture of tropical wood, as specified in subheading note 1 to Chapter 44:

ex 9403 30

ex 9403 40

ex 9403 50

ex 9403 60

ex 9403 90 30

– Of a kind used in offices

– Of a kind used in the kitchen

– Of a kind used in the bedroom

– Other

Parts of furniture of subheadings 9403 30, 9403 40, 9403 50, 9403 60 and 9403 80 00, of
tropical wood, as specified in subheading note 1 to Chapter 44, bamboo or cane

(1) Subject to the rules for interpreting the Combined Nomenclature, the wording of the description of the products is to be
considered as having no more than an indicative value, the preferential scheme being determined, within the context of this
Annex, by the coverage of the CN codes. Where ‘ex' CN codes are indicated, the preferential scheme is to be determined by
application of the CN code and corresponding description taken together.