Proposal for a Council Regulation (EC) concerning the tariff treatment applicable upon importation of certain types of food supplements originating in Switzerland
Date: 1998-06-30
Institutions: European Commission
Subjects: Switzerland, common customs tariff, import, prepared foodstuff, tariff exemption

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.06.1998 
COM(1998) 399  final 

98/0224 (ACC) 

Proposal for a 

COUNCIL REGULATION (EC) 

concerning  the tariff  treatment 

applicable  upon  importation  of 

certain types  of food  supplements  originating  in  Switzerland 

(presented by the Commission) 

Explanatory  Memorandum 

The Swiss authorities have repeatedly raised the question of the duty applied 
to certain types of food  supplements intended to maintain general health or 
well-being, and in particular to the preparations called Swiss Caps (essentially 
dried garlic in capsule form, intended to contribute to the health of the user). 

The  Swiss  authorities  have  indicated  that  in  the  past  some  imports  of  these 
products have been allowed at a zero rate of duty, as they have been  classified 
as  pharmaceutical  products.  The  Community,  however,  is  of  the  view  that 
these products are to be classified  as food  preparations under CN code 2106 90 
92 and are therefore  subject  to a duty of  16.4%.  The Swiss side agrees to this 
classification,  but requests that a zero duty be applied. 

The  Commission  is  prepared  to  comply  with  this  request,  as  the  Swiss  side 
agrees  to apply  the  same definition  and  zero duty  rate to  its  imports  from  the 
Community. 

The Commission  therefore  proposes to reduce to zero the rate of duty  applied 
to certain nutritional complements of Swiss origin, defined as: 

"Food  supplements  based  on plant  extracts, fruit concentrates  or  honey,  with 
added  vitamins  and,  sometimes,  very  small  quantities  of  iron  compounds, 
often  put up in packaging indicating that they are intended to maintain general 
health,  containing  no  milk  fats,  sucrose,  isoglucose,  glucose  or  starch  or 
containing, by weight,  less than  1.5%  milk fat,  5% sucrose or isoglucose, 5% 
glucose or starch." 

This  autonomous  measure  is  conditional  on  the  adoption  of  an  entirely 
equivalent  measure  by  Switzerland,  e.g.  zero  duly  rate,  definition  of  the 
product  and  date  of  introduction.  It  will  be  re-examined  if  Protocol  2 of the 
EC-Switzerland  Free Trade Agreement  is adapted. 

In  order  to  ensure  the  proper  application  of  the  decision  a  new  Taric 
subheading  will  be  created  which  will  enable  the  Community  to  limit  its 
application to the products concerned. 

The  Commission  will  monitor  market  developments  for  this  product  and,  if 
disruptions  occur  or  imports  increase  significantly,  may  suspend  the  present 
measure. 

For  these  reasons,  the  Commission  recommends  that  the  Council  adopt  the 
attached proposal for a Council Regulation. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

I 

Proposai for a Council Regulation (EC) concerning the tariff treatment 
applicable upon importation of certain types of food supplements 
originating in Switzerland 

THE COUNCIL OF THE EUROPEAN  UNION 

Having regard to the Treaty establishing the European Community, and in particular 
Article  ! 13 thereof, 

Having regard to the proposal from  the Commission, 

Whereas, in the European Community, certain types of food supplements intended to 
maintain general health or well-being are classified  under CN code 2106 90 92 as 
food preparations and are subject to a duty of 16.4%; 

Whereas it seems appropriate for the European Community to grant a zero duty rate 
on imports of these products from  Switzerland; 

Whereas CN Code 2106 90 92 includes goods not covered by the present  Regulation, 
so that  a specific  description of the products concerned  is needed; 

Whereas this measure will be re-examined if Protocol 2 of the Free Trade Agreement 
between the EC and Switzerland is amended. 

HAS ADOPTED THIS RECULA LION: 

Article  1 

The following  Ibod preparations originating  in Switzerland and classifiable  under 
CN code ex 2106 90 92 shall be subject to zero duly upon importation into the 
Community: 

"Food supplements based on plant extracts, fruit concentrates or honey, with added 
vitamins and, sometimes, very small quantities of iron compounds, often put up in 
packaging indicating that they are intended to maintain general health, containing no 
milk fats, sucrose, isoglucose, glucose, or starch or containing, by weight, less than 
1.5% milk fat, 5% sucrose or isoglucose, 5% glucose or starch." 

Article 2 

A new Taric subheading will be created which will enable the Community to limit the 
application  of this Regulation  to the products concerned. 

3 

Article 3 

The Commission  will monitor trade developments  for the products concerned and 
may suspend Ihe présent  measure if any disruption occurs or imports increase 
significantly,  according to the procedure laid down in Article  16 of Regulation (EC) 
No 3448/93. 

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 

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

Done at Brussels, 

For the Council 

The President 

H 

FINANCIAL STATEMENT 

1. 

TITLE OF OPERATION 

Proposal  fora  Council  Regulation (EC) concerning the tariff treatment applicable 
upon importation of certain types of food supplements originating in Switzerland. 

2. 

BUDGET HEADING  INVOLVED 

Chapter  12, Article 120 

3. 

LEGAL BASIS 

Article  113 of the  Treaty establishing the European Community. 

4. 

a. 

b. 

c. 

DESCRIPTION  OF OPERATION 

The Swiss authorities have repeatedly  raised  the question  of the duty  applying 
to  certain  types  of  food  supplements  intended  to  maintain  general  health  or 
well-being, and  in particular to the preparations called Swiss Caps. 

The  Swiss  authorities  have  indicated  that  in  the  past  some  imports  of  these 
products have been allowed at a zero rate of duty, as they have been  classified 
as pharmaceutical  products.  The Community, however, is of the view that the 
products are  to  be classified  as food  preparations  under  CN code 2106 90 92 
and  are  therefore  subject  to  a duty  of  16.4%.  The  Swiss  side  agrees  to  this 
classification,  but requests that a zero duty be applied. 

The Commission  is prepared  to comply  with  this request.  Movement  on this 
dossier  will  demonstrate  good  will  on  the  part  of  the  Union  in  seeking  a 
solution to other long-standing bilateral problems. 

d. 

The Commission  therefore  proposes  to reduce to zero the rate of duty  applied 
to certain nutritional complements of Swiss origin, defined as: 

"food  supplements  based  on  plant  extracts,  fruit  concentrates  or  honey,  with 
added  vitamins  and,  sometimes,  very  small  quantities  of  iron  compounds, 
often  put up in packaging indicating that they are intended  to maintain  general 
health,  containing  no  milk  fats,  sucrose,  isoglucose,  glucose  or  starch  or 
containing, by weight,  less than  1.5%  milk fat,  5% sucrose  or isoglucose, 5% 
glucose or starch." 

This  proposal  is  conditional  on  the  application  by  Switzerland  of  the  same 
measure, the zero duty rate and the definition  of the product. 

< 

e. 

I. 

g. 

This  change  will  be  implemented  on  an  autonomous  basis  and  must  be 
considered  a transitional  measure.  It  will  definitely  be considered  within  the 
lulu i c adaptation of Protocol  2 of I IK- EC-Swilzerland  free  Trade  Agreement. 

In  order  to  ensure  the  proper  application  o\'  the  decision  a  new  Tarie 
subheading  will  be  created  which  will  enable  the  Community  to  limit  its 
application to the products concerned. 

The Commission will monitor market developments for the product concerned 
and,  if  disruptions  occur  or  imports  increase  significantly,  may  suspend  the 
present measure. 

5 

CLASSIFICATION  OF EXPENDITURE  OR  REVENUE 

5.1 

Compulsory / Non-compulsory  expenditure 

Loss of revenue 

5.2 

Differentiated  / Non-differentiated  appropriations 

N/A 

5.3 

Type of revenue involved 

Customs duties 

6.  TYPE OF EXPENDITURE OR REVENUE 

Loss of revenue due to change in customs rating from  16.4 % to zero rating. 

7. 

FINANCIAL IMPACT 

The calculation  oflhc  loss of revenue due to the change  in customs rating  is based on 
figures  provided  by  Switzerland,  according  to  which  the  annual  value  of  the 
Community's  imports of the goods in question  is CI IF  10 to  15 million. The current 
customs  rating 
loss  of  revenue  will  be 
ECU  1.5 million a year ((CHF  15 million /  1.63316) x  16.4% = ECU  1.5 million). 

is  16.4%.  Therefore 

the  maximum 

£ 

ISSN 0254-1475 

COM(98) 399 final 

DOCUMENTS 

EN 

02  03  11 

Catalogue  number  :  CB-CO-98-410-EN-C 

ISBN  92-78-37437-7 

Office  for Official  Publications of the European  Communities 

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t