Proposal for a Council Regulation implementing for the Community the tariff provisions of Decision No 2/2000 of the Joint Council under the Interim Agreement on Trade and Trade-related matters between the European Community and the United Mexican States
Date: 2000-05-31
Institutions: European Commission
Subjects: Combined Nomenclature, Mexico, customs regulations, tariff quota, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.05.2000
COM(2000) 332 final

2000/0133 (ACC)

Proposal for a

COUNCIL REGULATION

implementing for the Community
the tariff provisions of Decision No 2/2000 of the Joint Council
under the Interim Agreement on Trade and Trade-related matters
between the European Community and the United Mexican States

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Joint Council of the Interim Agreement on Trade and Trade-related matters between the
European Community and the United Mexican States signed on 8 December 1997 adopted, on
23 March 2000, Decision 2/2000 implementing, inter alia, the objectives set out in Article 3
of that Agreement. The tariff provisions of that Decision are to enter into force on 1 July
2000.

The attached proposal for a Council Regulation sets up implementing provisions necessary for
the Community, in particular, to calculate the preferential rates of duty which will apply to
goods of Mexican origin in accordance with Annex III to Decision 2/2000, and to open and
manage the tariff quotas provided by that Decision. The proposal also delegates to the
Commission the power to adopt measures for the application of that agreement and provides
for the necessary supporting procedures. Finally the proposal provides for preferential imports
under the agreement to be subject to surveillance, with a view to contributing to the fight
against fraud.

In order to ensure smooth implementation, the Council should adopt the measures in question
in time to allow publication in the Official Journal as soon as possible before 30 June 2000.

2

2000/0133 (ACC)

Proposal for a

COUNCIL REGULATION

implementing for the Community
the tariff provisions of Decision No 2/2000 of the Joint Council
under the Interim Agreement on Trade and Trade-related matters
between the European Community and the United Mexican States

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,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

The Joint Council under the Interim Agreement on Trade and Trade-related matters
between the European Community and the United Mexican States has by its Decision
No 2/20001, hereinafter referred to as the "Decision", adopted arrangements for
implementing aspects of that agreement related to trade in goods with effect from 1
July 2000.

The tariff preferences provided in the Decision are applicable to products originating
in Mexico in accordance with Annex III of the Decision.

It is necessary to lay down special provisions for applying those tariff preferences
within the Community.

The base rates for calculating tariff reductions are those set out in Decision 2/2000.

The same methods of calculation should, as a general rule, apply to ad valorem and
specific rates of duty as well as to the treatment of minimum and maximum duties
provided in the Common Customs Tariff.

The Decision stipulates that certain products originating in Mexico may be imported
into the Community within the limits of tariff quotas, at a reduced or a zero rate of
customs duty; the Decision specifies the products eligible for those tariff measures,
their volumes and duties; the most suitable method for managing the tariff quotas for
products of CN codes ex 0408 and ex 3502 is based on import licences and should be
carried out by the Commission; 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

1

OJ L

3

(EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of
Council Regulation (EEC) No 2913/92 establishing the Community Customs Code 2.

(7)

The Combined Nomenclature codes mentioned in the present Regulation are those of
2000, as provided in Council Regulation (EEC) No 2658/87 on the tariff and statistical
nomenclature and on the Common Customs Tariff 3, last amended by Regulation (EC)
No 2204/1999 4; amendments to the Combined Nomenclature and Taric codes should
not result in changes of substance in agreements or other acts concluded between the
Community and Mexico; in the interests of simplicity, provision should therefore be
made for the Commission, assisted by the Customs Code Committee, to take the
measures necessary for the implementation of this Regulation, in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the
exercise of implementing powers of the Commission 5.

(8)

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 purposes of implementing Decision No 2/2000 of the Joint Council under the
Interim Agreement on Trade and Trade-related matters between the European
Community and Mexico:

(a)

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. However it shall not mean a duty set up within the framework of a
tariff quota under Article 26 of the Treaty or under Annex 7 of Regulation
(EEC) No 2658/87.

(b)

Subject to paragraph 2, the final rate of preferential duty shall be rounded down
to the first decimal place.

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

(a)

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

(b) Euro 0,5 or less per individual euro amount in the case of specific duties.

Wherever customs duties comprise an ad valorem duty plus one or more specific
duties, the preferential reduction is limited to the ad valorem duty where it is so
provided in Article 8 of Decision No 2/2000. Where the customs duties comprise an
ad valorem duty with a minimum and maximum duty, the preferential reduction also

OJ L 253, 11.10.1993, p. 1.
OJ L 256, 07.09.1987, p. 1.
OJ L 278, 28.10.1999, p. 1.
OJ L 184, 17.07.1999, p. 23.

4

2.

3.

2

3

4

5

applies to that minimum and maximum duty. Where they comprise more than one
specific duty, the preferential reduction applies to all of these.

Article 2

Subject to paragraph 5, the customs duties on the products listed in the Annex of this
regulation and originating in Mexico shall be reduced to the levels provided and
within the limits of the tariff quotas specified in that Annex.

Save as provided in Article 4, these tariff quotas shall be managed in accordance
with Articles 308a to 308c of Regulation (EEC) No 2454/93.

With respect to the products covered by the Annex to this regulation:

(a)

(b)

the specific export document referred to in Article 8(7) of Decision No 2/2000
of the Joint Council means the movement certificate EUR 1, and

the acceptance of the declaration for release for free circulation shall be
deemed to constitute the issuing of the import licence referred to in that
provision.

The reductions of duty referred to in the Annex are expressed as a percentage of the
customs duties effectively applied to goods of Mexican origin outside the tariff
quotas in question when declared for release for free circulation.

The customs duty applicable to products of CN code 1704 10 within the tariff quota at
order No 09.1857 in the Annex of this regulation shall be 6%.

The tariff quotas referred to in the Annex of this regulation shall be opened each year
for a twelve-month period from 1 July to 30 June. These quotas shall be opened for
the first time on 1 July 2000.

The tariff quota at order No. 09.1847 in the Annex of this regulation shall be opened
for the last time on 1 July 2007.

1.

2.

3.

4.

5.

6.

7.

The annual volume of the tariff quota at order number 09.1853 in the Annex of this regulation
shall be increased successively by 500 tonnes each year from 1 July 2001.

Article 3

1.

The Commission shall open from 1 July 2000:

Article 4

(a)

an annual tariff quota of 1 000 tonnes (shell egg equivalent), at half the rate of
customs duty effectively applied to goods of Mexican origin, for products of
CN codes 0408 11 80, 0408 19 81, 0408 19 89, 0408 91 80 and 0408 99 80
originating in Mexico, and

(b)

an annual duty-free tariff quota of 3 000 tonnes (shell egg equivalent) for
albumins of CN codes 3502 11 90 and 3502 19 90 originating in Mexico.

5

2.

The management rules for these tariff quotas shall be adopted by the Commission in
accordance with the procedure laid down in Article 17 of Council Regulation (EEC)
No 2771/75.

Article 5

Without prejudice to Articles 2 to 4, the amendments and technical adaptations of the annex
of this Regulation made necessary by amendments to the Combined Nomenclature and Taric
codes or arising from decisions of the EC-Mexico Joint Council, or from the conclusion of
agreements, protocols or exchanges of letters between the Community and Mexico, shall be
adopted by the Commission in accordance with the management procedure set out
in
Article 6(2).

1.

2.

3.

1.

2.

3.

Article 6

The Commission shall be assisted by the Customs Code Committee, hereinafter
referred to as ‘the Committee’.

Where reference is made to this paragraph, Articles 4 and 7 of Decision
1999/468/EC shall apply. The period laid down in Article 4(3) of Decision
1999/468/EC shall be set at three months.

The Committee shall adopt its rules of procedure.

Article 7

Products put into free circulation with the benefit of the preferential rates provided
under the Decision 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 cooperate closely to ensure that this
measure is complied with.

6

Article 8

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 1 July 2000.

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

Done at Brussels,

For the Council
The President

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ANNEX

concerning the 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

Description

Annual tariff
quota volume
(net weight)

Tariff quota
duty (%
reduction)

09.1831

0407 00 19

Eggs of poultry other than
turkeys or geese, for hatching6

300 tonnes

09.1833

0409 00 00 Natural honey

30 000 tonnes

Cut flowers, fresh, from 1
June to 31 October

350 tonnes

50 MFN or 50
GSP7
50 MFN or 50
GSP7
100

ex0603 10
10
ex0603 10
20
ex0603 10
30
ex0603 10
40
ex0603 10
50
ex0603 10
80
ex0603 10
10
ex0603 10
20
ex0603 10
30
ex0603 10
40
ex0603 10
50
ex0603 10
80
ex0709 20
00
0710 21 00

09.1835

09.1837

09.1839

09.1841

09.1843

09.1845

09.1847

Cut flowers, fresh, from 1
June to 31 October
Cut flowers, fresh, from 1
November to 31 May

400 tonnes

350 tonnes

100

100

Cut flowers, fresh, from 1
November to 31 May
Asparagus, fresh or chilled,
from 1 March to 30 November
Frozen peas

400 tonnes

600 tonnes

500 tonnes

100

100

50 MFN or 50
GSP7
100

ex0804 40
00

Avocados, from 1 June to 30
September

20 000 tonnes

6

7

Entry under this subheading is subject to conditions laid down in the relevant Community provisions.
Whichever results in the lower duty applicable.

8

09.1849

ex0807 19
00

09.1851

0811 10 90

Melons, other than
watermelons, fresh, from 1
January to 31 January, from 1
April to 31 May and from 1
October to 31 December
Strawberries, not containing
sugar or other sweetening
matter
Prepared or preserved fish

1 000 tonnes

50 MFN or 50
GSP9

1 000 tonnes

2 000 tonnes 8

50 MFN or 50
GSP9

66.66 MFN or
66.66 GSP9

09.1853

09.1855
09.1857

1604 14 11
1604 14 18
1604 14 90
1604 19 39
1604 20 70
1703 10 00 Cane molasses
1704 10

09.1859

2005 60 00 Asparagus, prepared or

1 000 tonnes

Chewing gum, whether or not
sugar-coated

preserved otherwise than by
vinegar or acetic acid
Mixtures of fruit, prepared or
preserved

275 000 tonnes
1 000 tonnes

100
Fixed duty to be
applied
50 MFN or 50
GSP9

1 500 tonnes

50 MFN or 50
GSP9

09.1861

09.1863

09.1865

09.1867

2008 92 51
2008 92 74
2008 92 92
2008 92 93
2008 92 94
2008 92 96
2008 92 97
2008 92 98
2009 11 11
2009 11 19
2009 11 91
2009 19 11
2009 19 19
2009 19 91
2009 19 99
ex2009 11
99

2009 40 11
2009 40 19
2009 40 30
2009 40 91
2009 40 99

Orange juice, unfermented and
not containing added spirit,
except orange juice of 2009 11
99

1 000 tonnes

50 MFN or 50
GSP9

Orange juice, frozen, with a
degree of concentration higher
than 20° brix (of a density
exceeding 1,083 g/cm3 at
20°C).
Pineapple juice, unfermented
and not containing added spirit

30 000 tonnes

75 MFN or 75
GSP9

2 500 tonnes

50 MFN or 50
GSP9

8

9

From the second year of application, the volume of this tariff quota is increased annually by 500 tonnes
Whichever results in the lower duty applicable.

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal for a Council Regulation implementing for the Community the tariff
provisions of Decision No 2/2000 of the Joint Council under the Interim Agreement
of Trade and Trade-related matters between the European Community and the United
Mexican States.

2.

BUDGET HEADING(S) 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 measures and procedures for implementing the tariff
provisions of the Interim Agreement between the European Community and Mexico.

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 No 2/2000 of the
Joint Council.

6.

FRAUD PREVENTION MEASURES

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

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