Proposal for a Council Regulation (EC) on certain procedures for applying the Trade, Development and Co- operation Agreement between the European Community and the Republic of South Africa
Date: 1999-07-28
Institutions: European Commission
Subjects: South Africa, cooperation agreement (EU), originating product, tariff quota, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 28.07.1999
COM (1999) 402 final

99/0174 (ACC)

Proposal for a

COUNCIL REGULATION (EC)

on certain procedures for applying the Trade, Development and Co-operation
Agreement between the European Community and the Republic of South Africa

(presented by the Commission)

EXPLANATORY MEMORANDUM

to satisfactory completion of

Subject
the Trade,
Development and Co-operation Agreement between the European Community and the
Republic of South Africa is expected to enter into force on 1 January 2000.

the approval procedures,

The present Regulation opens necessary tariff quotas and provides detailed rules on
calculation of preferential rates of duty, the surveillance of preferential imports and
the management of the tariff quotas. It enables the Commission to adopt the necessary
provisions to open and manage a tariff quota on cheese and curd. It also enables the
Commission to adopt amendments and technical adaptations to the present regulation,
which may result from future amendments to the Combined Nomenclature and Taric
codes as well as adaptations arising from the conclusion of agreements, protocols or
exchanges of letters between the Community and the Republic of South Africa.

In order to ensure smooth implementation, the Council should adopt the measures in
time to allow the publication in the Official Journal before 31 October 1999.

2

Proposal for a

COUNCIL REGULATION (EC)

on certain procedures for applying the Trade, Development and Co-operation
Agreement between the European Community and the Republic of South Africa

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof,

Having regard to the proposal from the Commission,

(1) Whereas the Council has concluded a Trade, Development and Co-operation
Agreement between the European Community and the Republic of South
Africa, hereinafter referred to as “the Agreement”, and decided by Decision
1999/…/EC 1 that the Agreement enters into force on 1 January 2000;

(2) Whereas it

is necessary to lay down the procedures for applying certain

provisions of the Agreement;

(3) Whereas the preferential rates of duty to be applied by the Community under the
Agreement should normally be calculated on the basis of the conventional rate
of duty in the Common Customs Tariff for the products concerned; whereas
they should, however, be calculated from the autonomous rate of duty where no
conventional rate is given for the products concerned or where the autonomous
rate is lower than the conventional rate; whereas it is unnecessary to include in
the coverage of this Regulation products for which the Common Customs Tariff
duty is free; whereas the calculation must in no case be based on duties applied
under conventional or autonomous tariff quotas;

(4) Whereas the Agreement stipulates that certain products originating in the
Republic of South Africa may be imported into the Community, within the
limits of tariff quotas, at a reduced or a zero rate of customs duty; whereas the
Agreement specifies the products eligible for those tariff measures,
their
volumes and duties; whereas the most suitable method for managing the tariff
quota for products of CN code ex 0406 is based on import licences and should
be carried out by the Commission; whereas the other tariff quotas should be
managed, as a rule, on a first-come first-served basis in accordance with Articles
308a to 308c of Regulation (EEC) No 2454/93 of 2 July 1993 2 laying down

1

2

OJ L …
OJ L 253, 11.10.1993, p. 1. Regulation last amended by Regulation (EC) No 502/1999 (OJ L 65,
12.3.1999, p. 1).

3

provisions for the implementation of Council Regulation (EEC) No 2913/92
establishing the Community Customs Code 3;

(5) Whereas amendments to the Combined Nomenclature and Taric codes and
adaptations arising from the conclusion of agreements, protocols or exchanges
of letters between the Community and the Republic of South Africa do not
involve changes of substance; whereas, in the interest of simplicity, provision
should therefore be made for the Commission, assisted by the Customs Code
Committee, to make the necessary amendments and technical adaptations to this
Regulation;

(6) Whereas in the interest of combating fraud, provisions should be made to

submit preferential imports into the Community to surveillance;

HAS ADOPTED THIS REGULATION:

Article 1

1.

For the application of preferential duty under the Agreement, the expression
“duty effectively applied” shall be taken to mean either:

–

–

the lowest rate of duty appearing in column 3 or 4, taking into account
the periods of application mentioned or referred to in that column, of
the second part of Annex I of Council Regulation (EEC) No 2658/87 of
23 July 1987 on the tariff and statistical nomenclature and on the
Common Customs Tariff 4, or

the GSP rate according to Article 2 of Council Regulation (EC) No
2820/98 of 21 December 1998 applying a multiannual scheme of
the period 1 July 1999 to 31
generalised tariff preferences for
December 2001 5,

whichever is the lower. However, that expression shall not be taken to refer
to a duty set up within the framework of a tariff quota under Article 26 of the
Treaty or under Annex 7 of Regulation (EC) No 2658/87.

For the purposes of the Annex to this regulation, the term "MFN" shall be
taken to mean the lowest rate of duty appearing in column 3 or 4, taking into
account the periods of application mentioned or referred to in that column, of
the second part of Annex I of Regulation (EEC) No 2658/87.

Subject to paragraph 4, the final rate of preferential duty calculated in
accordance with this Regulation shall be rounded down to the first decimal
place.

OJ L 302, 19.10.1992, p. 1. Regulation last amended by Regulation (EC) No 82/97 (OJ L 17,
21.1.1997, p. 1).
OJ L 256, 7.9.1987, p. 1. Regulation last amended by Regulation (EC) No 2261/98 (OJ L 292,
30.10.1998, p. 1).
OJ L 357, 30.12.1998, p. 1.

4

2.

3.

3

4

5

4.

1.

2.

3.

Where the result of calculating the rate of preferential duty in application of
paragraph 3 is one of the following, the preferential rate shall be considered a
full exemption:

–

–

1 % or less in the case of ad valorem duties, or

EUR 0.5 or less per individual euro amount in the case of specific
duties.

Article 2

The customs duties on the products listed in the Annex, originating in the
Republic of South Africa, shall be reduced to the levels provided in the
Annex and within the limits of the tariff quotas specified in that Annex.

These tariff quotas shall be managed in accordance with Articles 308a to
308c of Commission Regulation (EEC) No 2454/93.

The reductions of tariff quota duty referred to in the Annex are expressed as
a percentage of the customs duties effectively applied to South African
goods, as defined in Article 1 (1) on the day of entry into force of the
Agreement.

Article 3

The Commission shall open an annual duty-free tariff quota for cheese and curd of
CN codes 0406 10 20, 0406 10 80, 0406 20 90, 0406 30 10, 0406 30 31, 0406 30 39,
0406 30 90, 0406 40 90, 0406 90 01, 0406 90 21, 0406 90 50, 0406 90 69, 0406 90
78, 0406 90 86, 0406 90 87, 0406 90 88, 0406 90 93 and 0406 90 99 originating in the
Republic of South Africa. The initial annual volume of this tariff quota shall be 5 000
tonnes. An annual growth factor of 5% shall apply to this volume.

1.

2.

1.

Article 4

After the first year, the tariff quotas referred to in Articles 2 and 3 shall be
increased each year by the percentage specified as the annual growth factor
in the Annex. The resulting figure shall be rounded up to the next complete
unit.

If this Regulation does not enter into force on 1 January 2000, the quota
volumes provided in Article 3 and in the Annex shall be reduced pro rata on
a monthly basis for application in the year 2000.

Article 5

the amendments and technical
Without prejudice to Articles 2 to 4,
adaptations of this regulation made necessary by amendments to the
Combined Nomenclature and Taric codes or arising from the conclusion of

5

agreements, protocols or exchanges of letters between the Community and
the Republic of South Africa, shall be adopted by the Commission, assisted
by the Customs Code Committee, in accordance with the procedure set out in
paragraph 2 of this Article.

The representative of the Commission 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 delivered by the majority laid
down in Article 205 (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, which shall apply immediately.
However, if these measures are not in accordance with the opinion of the
Committee, they shall be communicated by the Commission to the Council
forthwith. In that event:

–

–

the Commission may defer application of the measures which it has
decided for a period of not more than one month from the date of
such communication;

the Council, acting by qualified majority, may take a different decision
within the period referred to in the first indent.

The Committee may examine any question concerning the application of
tariff quotas which is raised by its chairman either at the latter’s initiative or
at the request of a Member State.

Article 6

Products put into free circulation with the benefit of the preferential rates
provided under the Agreement, other than those covered by Article 2, shall
be subject to surveillance. The Commission in consultation with the Member
States shall decide the products to which this surveillance applies.

Article 308d of Regulation (EEC) No 2454/93 shall apply.

The Member States and the Commission shall co-operate closely to ensure
that this measure is complied with.

2.

3.

1.

2.

3.

6

Article 7

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

It shall apply from the date of entry into force of the Agreement. That date will be
published 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,

For the Council
The President

7

ANNEX

concerning products referred to in Article 2

Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for 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
as they exist at the time of adoption of the current regulation. Where ex CN codes are indicated, the
preferential scheme is to be determined by application of the CN code and corresponding description
taken together.

Order
No

CN code

Taric
code

Description

Annual tariff quota
volume, and annual
growth factor6

Tariff quota
duty (%
reduction)

09. 1803

0603 10 15

Fresh orchids, from 1.6 to 31.10

500 tonnes

50 MFN or 80
GSP7

0603 10 51

0603 10 65

Fresh roses, from 1.1 to 31.5, from
1.11 to 31.12

(agf 3 %)

Fresh chrysanthemums, from 1.1 to
31.5, and from 1.11 to 31.12

09. 1805

0603 10 29

fresh flowers,

from 1.6 to

600 tonnes

Other
31.10

50 MFN or 80
GSP7

(agf 3 %)

09. 1807

ex0603 10 69 10

Proteas, from 1.1 to 31.5, and from
1.11 to 31.12

900 tonnes

100

09. 1809

0603 90 00

Other than fresh flowers

(agf 5 %)

500 tonnes

(agf 3 %)

75 MFN or 80
GSP7

09. 1811

0811 10 90

Strawberries, frozen

250 tonnes

100

(agf 3 %)

annual growth factor (agf) = % of base year volume.

6
7 Whichever results in the lower duty applicable.

8

Order
No

CN code

Taric
code

Description

Annual tariff quota
volume, and annual
growth factor8

Tariff quota
duty (%
reduction)

09. 1813

2008 40 51

Pears, not containing added spirit

40 000 tonnes

50 MFN

gross weight

(agf 3 %)

Apricots, not containing added spirit

Peaches, not containing added spirit

2008 40 59

2008 40 71

2008 40 79

2008 40 91

2008 40 99

2008 50 61

2008 50 69

2008 50 71

2008 50 79

2008 50 92

2008 50 94

2008 50 99

2008 70 61

2008 70 69

2008 70 71

2008 70 79

2008 70 92

2008 70 94

2008 70 99

8

annual growth factor (agf) = % of base year volume.

9

Order
No

CN code

Taric
code

Description

Annual tariff quota
volume9, and annual
growth factor10

Tariff quota
duty (%
reduction)

09. 1815

2008 92 59

Mixtures of fruit, other than tropical
fruit

18 000 tonnes

50 MFN

2008 92 74

2008 92 78

2008 92 98

gross weight

(agf 3 %)

09. 1817

2008 92 72

Mixtures of tropical fruit

2 000 tonnes

50 MFN

gross weight

(agf 3 %)

09. 1819

2009 11 99

Frozen orange juice

700 tonnes

50 MFN

(agf 3 %)

09. 1821

2009 40 30

Pineapple juice

5 000 tonnes

50 MFN

Apple juice

(agf 3 %)

2009 70 11

2009 70 19

2009 70 30

2009 70 91

2009 70 93

2009 70 99

09. 1823

2204 10 19

Sparkling wine

450 000 litres

100

2204 10 99

(agf 5 %)

9
10

Net weight, unless otherwise stated.
annual growth factor (agf) = % of base year volume.

10

Order
No

CN code

Taric
code

Description

Annual tariff quota
volume, and annual
growth factor11

Tariff quota
duty (%
reduction)

09. 1825

2204 21 79

Other wine

32 000 000 litres

100

2204 21 80

2204 21 83

2204 21 84

(agf 3 %)

09.1827

7202 41 10

containing
Ferro-chromium,
weight more than 4 % of carbon

by

515 000 tonnes

100

7202 41 91

7202 41 99

11

annual growth factor (agf) = % of base year volume.

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal for a Council Regulation (EC) on certain procedures for applying the Co-
operation Agreement between the European Community and the Republic of South
Africa.

2.

BUDGET HEADING INVOLVED

Chapter 12, Article 120

3.

LEGAL BASIS

Article 133 of the Treaty

4.

4.1

DESCRIPTION OF OPERATION

General objective

To provide for the necessary procedures for applying customs aspects of the Trade,
Development and Co-operation Agreement between the European Community and
the Republic of South Africa.

5.

FINANCIAL IMPACT

This Regulation does not entail any financial losses or gains, other than those
foreseen in the financial statement made on the occasion of the Decision adopting the
Agreement.

6.

FRAUD PREVENTION MEASURES

Provisions on the management of tariff quotas include the measures necessary for
preventing and protecting against fraud and irregularities. An additional provision
allows surveillance of preferential imports on a selective basis.

12