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 Hungary 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: 1999-04-30
Institutions: European Commission
Subjects: Hungary, agreement (EU), tariff quota, wine

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 30.04.1999
COM(1999)209 final

99/0100 (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 Hungary 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)

1.

2.

3.

4.

EXPLANATORY MEMORANDUM

In 1993, the European Community concluded an Agreement with Hungary on
the reciprocal establishment of tariff quotas for certain wines. This Agreement
was to run initially until 31 December 1998. In 1993 the European Community
also concluded an Agreement with Hungary on the reciprocal protection and
control of wine names, of unlimited duration.

The Council has authorised the Commission to commence negotiations with
Hungary with a view to concluding a new agreement in the form of an additional
protocol to the Europe Agreement, to replace the two above Agreements with a
scope extended to include spirits. Pending the conclusion of these negotiations, the
Council has also authorised the Commission to commence negotiations with
Hungary with a view to extending the Agreement on the reciprocal establishment
of tariff quotas for certain wines for a further year so as to preserve reciprocal
preferential
the
treatment after 31 December 1998,
consequences of the accession of Austria, Finland and Sweden.

taking into account

The negotiations with Hungary to extend the Agreement concerning tariff quotas
for certain wines have resulted in the draft exchange of letters to which this
to be extended
proposal
provisionally for a further year, pending the conclusion of the negotiations for an
additional protocol to the Europe Agreement.

relates. This draft provides for

the Agreement

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

2

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 Hungary 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,

(1) 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
and the Republic of Hungary1 was signed on 29 November 1993;

(2) Whereas that Agreement expires on 31 December 1998;

(3) 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 1999;

(4) Whereas Council Regulation (EC) No 933/95 of 10 April 1995 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 Hungary; whereas,
following the new Agreement in the form of an Exchange of Letters, Regulation
(EC) No 933/95 has to be amended accordingly;

(5) Whereas, in order to facilitate the implementation of certain provisions of the
Agreement,
the necessary
legislation for implementation of the Agreement in accordance with the procedure
laid down in Article 83 of Council Regulation (EEC) No 822/87 of 16 March
1987 on the common organisation of the market in wine3,

the Commission should be authorised to adopt

1

2

3

OJ L 337, 31.12.1993, p. 83.
OJ L 96, 28.4.1995, p. 1. Regulation last amended by Regulation (EC) No 813/98 (OJ L 116,
18.4.1998, p. 1).
OJ L 84, 27.3.1987, p. 1, as last amended by Regulation (EC) No 1627/98 (OJ L 210, 28.7.1998,
p. 8).

3

HAS ADOPTED THIS REGULATION:

Article 1

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 Hungary 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.

Article 4

In Regulation (EC) No 933/95, Article 1 is hereby amended as follows:

1.

In Article 1(1), the table under (b) “Wines originating in Hungary” shall be
replaced by the following table:

“Order No

CN code

(1)

Description

(2)

Volume of quota
(1.1 - 31.12.1999)
(hl)

Quota duty
(% of basic
duty)

09.7007

ex 2204 29 Wines of fresh grapes

113 460

09.7009

ex 2204 10 Quality sparkling wine,

in containers

3 700

holding not more than 2 litres

09.7011

ex 2204 21 Quality wine, including wine of superior
quality and quality wine bearing the
geographical indication “Tokaj” and wine
bearing the name “Tajbor”

216 930

40

40

40”

4

2.

In the first subparagraph of Article 1(2), point (d) shall be replaced by the
following:

“(d)

quota No 09.7009:

‘This is to certify that the wine referred to in this document is a quality sparkling
wine in accordance with Hungarian Law on wine-growing’;”

3.

In the first subparagraph of Article 1(2), point (e) shall be replaced by the
following:

“(e)

quota No 09.7011:

'This is to certify that the wine referred to in this document is a quality wine,
including wine of superior quality and quality wine bearing the geographical
indication "Tokaj" and wine bearing the name "Tajbor" in accordance with
Hungarian Law on wine-growing’.”

4.

In Article 1(2), the second subparagraph shall be deleted.

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 May 1999.

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

Done at Brussels,

For the Council
The President

5

ANNEX

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 Hungary on the
reciprocal establishment of tariff quotas for certain wines

A. Letter from the Community

Brussels, ……... 1999

Sir,

I have the honour to refer to the Agreement of 29 November 1993 in the form of an
exchange of letters between the European Community and the Republic of Hungary 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 Hungary 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 extending
the Agreement beyond 31 December 1998.

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

I.

Table 1 in the Annex to the said Agreement shall be replaced by the following table:

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

Hungarian
customs
tariff code

ex 2204 21

ex 2204 29

ex 2204 10

Description

1999
Quantity in hectolitres

Wine of fresh grapes

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

51 170

63 500

3 390”

II.

Table 2 in the Annex to the said Agreement shall be replaced by the following table:

“Quantities of wine originating in Hungary and qualifying for tariff reductions

Description

1999
Quantity in hectolitres

CN code

ex 2204 21

Quality wine, including wine of superior quality and quality wine
bearing the geographical indication “Tokaj” and wine bearing
the name “Tajbor”

ex 2204 29 Wine of fresh grapes

ex 2204 10

Quality sparkling wine in containers holding not more than two
litres

6

216 930

113 460

3 700”

III.

Point 3(a) of the said Agreement shall be replaced by the following:

“In the case of duties applied by Hungary 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,

in 1999, in accordance with the principle of standstill, the duties applicable
will be as indicated in the following table:

Duties applied by Hungary to imports of wine originating in the Community

Hungarian CN code

Description

Applicable duties
in 1999

21% ad valorem

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

Wine in containers holding two litres or less

28% ad valorem

10,5% ad valorem

70% of 1999 applicable
MFN duty

Wine in containers holding more than two litres

28% ad valorem

10,5% ad valorem

70% of 1999 applicable
MFN duty

ex 2204 10

2204 21, excluding
2204 2179
2204 21 80
2204 21 94 01
2204 21 98 01
2204 21 99 01

2204 21 79
2204 21 80

2204 21 94 01
2204 21 98 01
2204 21 99 01

2204 29, excluding
2204 29 79
2204 29 80
2204 29 94 01
2204 29 98 01
2204 29 99 01

2204 29 79
2204 29 80

2204 29 94 01
2204 29 98 01
2204 29 99 01

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

7

This Agreement shall enter into force on the day of its signature. It shall apply from 1 May
1999 to 31 December 1999, in accordance with the respective legislation and regulations of
the Contracting Parties. It shall expire on 31 December 1999. During the first half of 1999,
negotiations will take place with a view to concluding an additional Protocol to the Europe
Agreement covering both wines and spirits. Moreover, the additional Protocol to the Europe
Agreement will define the modalities of a co-operation between Hungary and the European
Community to support the implementation of a programme for progressive application by
Hungary of the “acquis communautaire” in the field of wine and spirits, particularly as
regards reinforcing the supply management and control instruments in the wine sector
(including the establishment of a wine register).

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

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

On behalf of the Council of the European Union

8

B. Letter from the Republic of Hungary

Brussels, …………1999

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 in the form of an
exchange of letters between the European Community and the Republic of Hungary 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 Hungary
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 extending the Agreement beyond 31 December 1998.

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

I.

Table 1 in the Annex to the said Agreement shall be replaced by the following
table:

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

Hungarian
customs
tariff code

ex 2204 21

ex 2204 29

ex 2204 10

Description

1999
Quantity in hectolitres

Wine of fresh grapes

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

51 170

63 500

3 390”

II.

Table 2 in the Annex to the said Agreement shall be replaced by the following
table:

“Quantities of wine originating in Hungary and qualifying for tariff reductions

Description

1999
Quantity in hectolitres

CN code

ex 2204 21

Quality wine, including wine of superior quality and quality wine
bearing the geographical indication “Tokaj” and wine bearing
the name “Tajbor”

ex 2204 29 Wine of fresh grapes

ex 2204 10

Quality sparkling wine in containers holding not more than two
litres

9

216 930

113 460

3 700”

III.

Point 3(a) of the said Agreement shall replaced by the following:

“In the case of duties applied by Hungary 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.

in 1999, in accordance with the principle of standstill, the duties applicable
will be as indicated in the following table:

Duties applied by Hungary to imports of wine originating in the Community

Hungarian CN code

Description

Applicable duties
in 1999

21% ad valorem

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

Wine in containers holding two litres or less

28% ad valorem

10,5% ad valorem

70% of 1999 applicable
MFN duty

Wine in containers holding more than two litres

28% ad valorem

10,5% ad valorem

70% of 1999 applicable
MFN duty

ex 2204 10

2204 21, excluding
2204 2179
2204 21 80
2204 21 94 01
2204 21 98 01
2204 21 99 01

2204 21 79
2204 21 80

2204 21 94 01
2204 21 98 01
2204 21 99 01

2204 29, excluding
2204 29 79
2204 29 80
2204 29 94 01
2204 29 98 01
2204 29 99 01

2204 29 79
2204 29 80

2204 29 94 01
2204 29 98 01
2204 29 99 01

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

10

This Agreement shall enter into force on the day of its signature. It shall apply from
1 May 1999 to 31 December 1999, in accordance with the respective legislation and
regulations of the Contracting Parties. It shall expire on 31 December 1999. During the
first half of 1999, negotiations will take place with a view to concluding an additional
Protocol to the Europe Agreement covering both wines and spirits. Moreover, the
additional Protocol to the Europe Agreement will define the modalities of a co-operation
between Hungary and the European Community to support the implementation of a
programme for progressive application by Hungary of the “acquis communautaire” in the
field of wine and spirits, particularly as regards reinforcing the supply management and
control instruments in the wine sector (including the establishment of a wine register).

I should be obliged if you would confirm that your Government is in agreement with the
content 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 Hungary

11