Proposal for a Council Regulation introducing exceptional trade measures for countries and territories participating in or linked to the European Union's stabilisation and association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) Nos 1763/1999 and 6/2000
Date: 2000-06-07
Institutions: European Commission
Subjects: EU relations, Western Balkans, liberalisation of trade, tariff quota, trade cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.6.2000
COM(2000) 351 final

2000/0144 (ACC)

Proposal for a

COUNCIL REGULATION

introducing exceptional trade measures for countries and territories participating in
or linked to the European Union's Stabilisation and Association process, amending
Regulation (EC) No 2820/98, and repealing Regulations (EC) Nos 1763/1999 and 6/2000

(presented by the Commission)

1.

2.

1

2

3

EXPLANATORY MEMORANDUM

The current EC trade regime with the Western Balkan countries already contains
unilateral trade preferences on an autonomous basis for Bosnia and Herzegovina and
Croatia1, for Albania2 and, on the basis of a Co-operation Agreement, for the former
Yugoslav Republic of Macedonia3. These preferences are similar in nature and
substance to those in the 1980 Co-operation Agreement between the European
Economic Community and the Socialist Federal Republic of Yugoslavia which was
renounced by the Council in 1991. They provide for duty-free access to the EC for
more than 80% of the imports from these countries.

Despite this high degree of duty-free access to the EC market, several important
industrial products are still governed by tariff ceilings and only limited concessions
have been made so far for agricultural products where many products are subject to
tariff quotas.

Trade promotion and co-operation is a core action of the EU both within the
EU Stabilisation and Association process and the Stability Pact for South-Eastern
Europe. The EC is by far the most important trading partner for the region. Although
current trade volumes are modest, the EC’s position means that changes to its trade
policy vis-à-vis the region have some potential to increase the economic activity and
trade in the Western Balkans in the medium term. Further opening of the EC market
for products from these countries could promote much needed foreign direct
investment, help these countries to develop their generally low export capacities and,
above all, contribute to political and economic stabilisation in the region. The
economies of the Western Balkans are relatively small and weak and given the very
low level of imports from the Western Balkan countries (0.6% of total imports), it is
unlikely that further trade liberalisation would have a negative impact on the EU.

The Lisbon European Council of 23/24 March 2000 stated that Stabilisation and
Association Agreements with Western Balkan countries, which involve the
establishment of Free Trade Areas “should be preceded by asymmetrical trade
liberalisation”. As part of the Stabilisation and Association process the Commission
proposes to further improve the existing autonomous trade preferences, which will be

Council Regulation (EC) No 6/2000 of 17.12.1999 (OJ L 2, 5.1.2000); applies since 1.1.2000 until
31.12.2001. Renewed and up-graded version of the old trade regime inherited from the former
(renounced) 1980 Co-operation Agreement EEC/SFRY and granted on an autonomous basis since, late
1991, to all former Yugoslav Republics. This Regulation also contains wine concessions, which equally
apply to Slovenia and the former Yugoslav Republic of Macedonia, pending the conclusion of specific
wine agreements with these countries. The Federal Republic of Yugoslavia was temporarily included in
the regime (9.5.97-31.12.1997) but is currently excluded due to non-compliance with the relevant
conditions (mainly respect for democratic principles).
Council Regulation (EC) No 1763/1999 of 29.7.1999 (OJ L 211, 11.8.1999); applies since 1.10.1999
until 31.12.2001. These trade preferences complement the 1992 Trade and Co-operation Agreement
between the EC and Albania (only MFN treatment) and ensured similar treatment of Albania like other
Western Balkan countries. A textile agreement had been previously in place.
Applying since 1.1.1998. Prior to this, the former Yugoslav Republic of Macedonia benefited from the
autonomous trade preferences with former Yugoslav Republics and still does for wine (cf. footnote 1).
In parallel, a textile agreement is in place.

2

3.

4.

replaced in due course by Stabilisation and Association Agreements with the
countries concerned.

With a view to supporting economic revival in Kosovo it
is equally proposed
to extend these preferences to Kosovo which, under UNSC Resolution 1244 of
10 June 1999, is subject to international civil administration by the United Nations
Mission in Kosovo (UNMIK). In accordance with UNSC Resolution 1244 (10th and
11th preambular), UNMIK’s mandate is defined as an interim administration “under
which the people of Kosovo can enjoy substantial autonomy within the Federal
Republic of Yugoslavia” and its responsibilities include “performing basic civilian
administrative functions where and as long as required”.

By Regulation No 1999/3 of 31 August 1999, UNMIK has established a customs
service of around 120 local staff working under the authority of an UNMIK Director
General of Customs. This service is present at the international borders and has
established several taxation points at the administrative boundary lines of Kosovo in
close co-operation with KFOR and CIVPOL. The EC funded Customs Assistance
Mission in Kosovo (CAM-K) is a team composed of 10 international customs
experts, which is supporting the modernisation of the UNMIK customs service and
the establishment of customs procedures harmonised with the EU practises. One of
the areas of technical assistance to the UNMIK customs service is the establishment
of effective procedural and organisational measures to enable certificates of origin to
be issued. CAM-K is also assisting with the drafting of a revision of UNMIK
administrative directive No 1999/01 which will provide the legislative framework for
the implementation of
the correct
functioning of the system. Furthermore, customs co-operation between the UNMIK
customs service and the former Yugoslav Republic of Macedonia was established on
7 March 2000 with the initialling of a Joint Statement on cross-border co-operation.

the administrative measures necessary for

The Republic of Montenegro, within the Federal Republic of Yugoslavia, has no
independent customs administration. The extension of the trade preferences to the
Republic of Montenegro is, therefore, not possible. However, in order to support
economic and democratic reforms in that Republic, it is proposed to grant limited
and specific concessions (duty-free tariff quotas) for aluminium products, produced
in one plant
in other parts of the Federal Republic of
Yugoslavia. The proposal therefore foresees arrangements applicable for certain
industrial products originating in the Federal Republic of Yugoslavia without
the Federal Republic of Yugoslavia from the
prejudice to the exclusion of
autonomous trade preferences as a whole and in full respect of Council Regulation
(EC) No 1294/99 of 15 June 19994.

in Montenegro and not

5.

The aim of the attached proposal for a Council Regulation (EC) is:

• to abolish remaining tariff ceilings for certain industrial products originating in
Albania, Bosnia and Herzegovina and Croatia and to improve access for
agricultural products including processed agricultural products and fishery
products originating in these countries;

4

OJ L 153, 19.6.1999, p. 63; Regulation as last amended by Council Regulation (EC) No 723/2000
(OJ L 86, 7.4.2000, p.1).

3

• to extend these preferences to Kosovo as defined by UNSC Resolution No 1244

of 10 June 1999;

• to grant limited concessions (tariff quotas) for Montenegrin aluminium products

originating in the Federal Republic of Yugoslavia;

• to streamline and concentrate the autonomous trade preferences for the countries
of the Western Balkans in a single new Regulation, thus repealing Regulations
(EC) Nos 6/2000 and 1763/1999;

• to remove the countries covered by the proposed Regulation from the GSP.

These measures are proposed as part of the EU Stabilisation and Association process,
in response to the specific situation in the Western Balkans. They will not be
proposed for other regions and will not constitute a precedent for the EC trade policy
with other third countries.

6.

It is proposed to link the granting of these improved preferences to the readiness of
Albania, Bosnia and Herzegovina and Croatia to engage in effective economic
reforms and in regional co-operation with the other countries concerned by the
EU Stabilisation and Association process and of all the countries and territories
concerned to respect a standstill as regards duties, quantitative restrictions or charges
having equivalent effect on imports from the EC.

The proposal establishes safeguards against the risk of fraud and non-respect of rules
of origin. The standstill provision is underpinned by a strengthened temporary
suspension clause, which equally applies in cases of evidence of fraud, non-respect
of rules of origin and/or massive increase of exports into the Community above the
level of normal production and export capacity of the beneficiary countries and
territories. The period of application of this Regulation is limited to two years.
Additionally, under the EU Stabilisation and Association process, support is being
provided to the beneficiary countries
institutional and
administrative capacities and to intensify customs cooperation.

to strengthen their

7.

Furthermore, this proposal will imply several actions, amendments and adjustments
to be made in directly connected areas:

• In order to avoid any discrimination, the granting of equivalent trade preferences
to the former Yugoslav Republic of Macedonia on a separate basis
-
complementing the existing Co-operation Agreement, by means of an exchange of
letters, prior to the signature of a Stabilisation and Association Agreement;

• The amendment of Regulation (EC) No 517/94 on quantitative limits for imports
of textiles products to include separate textile quotas for Kosovo as defined by
UNSC Resolution 1244 of 10 June 1999; in addition, the Commission intends to
propose as soon as possible the opening of negotiations for textile agreements
with Bosnia and Herzegovina and Croatia in order to liberalise trade in textiles
with them and to substitute the quotas with a double-checking system and
administrative co-operation provisions (textiles representing around 30% of their
exports to the EC) and to remove these countries from Regulation (EC)
No 517/94;

4

• The possible amendment of

the implementing provisions relating to the
Community Customs Code (Commission Regulation 2543/93) as regards products
originating in Kosovo as defined by UNSCR 1244 of 10 June 1999;

• The adjustment of the waiver currently being introduced in the WTO by the
Commission for the EC trade regime with the Western Balkan countries, taking
into account the elements of improvement and extension of the preferences as
foreseen in the proposed Regulation.

8.

The Commission proposes the attached proposal for a Council Regulation (EC) for
adoption to the Council.

5

2000/0144 (ACC)

Proposal for a

COUNCIL REGULATION

introducing exceptional trade measures for countries and territories participating in
or linked to the European Union's Stabilisation and Association process, amending
Regulation (EC) No 2820/98, and repealing Regulations (EC) Nos 1763/1999 and 6/2000

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 Commission1,

Whereas:

(1)

(2)

(3)

At its meeting in Lisbon on 23 and 24 March 2000, the European Council concluded
that Stabilisation and Association Agreements with Western Balkan countries should
be preceded by asymmetrical trade liberalisation.

The Council, in its conclusions of 24 January and 14 February 2000, also invited the
Commission to examine the question of facilitating trade with the Republic of
Montenegro within the Federal Republic of Yugoslavia.

Council Regulation (EC) No 6/2000 of 17 December 1999 concerning the
arrangements applicable to imports into the Community of products originating in the
Republics of Bosnia and Herzegovina and Croatia and to imports of wine originating
in the former Yugoslav Republic of Macedonia and the Republic of Slovenia2 offers
for certain industrial products exemption from customs duties within the limit of tariff
ceilings and limited concessions are made for agricultural goods, many of them in
form of exemption from duties within the limit of tariff quotas. Council Regulation
(EC) No 1763/993 concerning arrangements applicable to imports into the Community
of products originating in Albania provides for a similar regime containing the same
restrictions.

(4)

The general level of imports from the Western Balkan countries is less than 0.6% of
all Community imports. Further market opening is expected to contribute to the
process of political and economic stabilisation in the region while not creating
negative effects for the Community.

1

2

3

OJ C
OJ L 2, 5.1.2000, p 1.
OJ L 211, 11.8.1999, p 1.

6

(5)

(6)

(7)

(8)

(9)

(10)

It is, therefore, appropriate to further improve the Community's autonomous trade
preferences by removing all remaining tariff ceilings for industrial products and by
further improving access to the Community market for agricultural and fishery
products, including processed products.

These measures are proposed as part of the EU Stabilisation and Association process,
in a response to the specific situation in the Western Balkans. They will not constitute
a precedent for Community trade policy with other third countries.

In accordance with the EU Stabilisation and Association process, based on the earlier
Regional Approach and the Council Conclusions of 29 April 1997, the development of
bilateral relations between the European Union and the Western Balkan countries is
subject to certain conditions. The granting of autonomous trade preferences is linked
to respect for fundamental principles of democracy and human rights and to the
readiness of
the countries concerned to develop economic relations between
themselves; the granting of improved autonomous trade preferences in favour of
countries participating in the EU Stabilisation and Association process should be
linked to their readiness to engage in effective economic reforms and in regional
cooperation, in particular through the establishment of free trade areas in line with
relevant GATT/WTO standards.

Trade preferences can only be granted to countries or territories possessing a customs
administration.

Albania, Bosnia and Herzegovina, Croatia,
the former Yugoslav Republic of
Macedonia and Kosovo, as the latter is defined by the United Nations Security Council
Resolution 1244 of 10 June 19994, (hereinafter referred to as "Kosovo") fulfil these
conditions, and similar trade preferences should be granted to all of them in order to
avoid discrimination within the region;

The Republic of Montenegro within the Federal Republic of Yugoslavia does not
possess a separate customs administration. It is, therefore, impossible to grant the
same preferences to it. However, the granting of limited trade preferences for certain
Montenegrin industrial products that are not produced in other parts of
the
Federal Republic of Yugoslavia is possible without prejudice to the principle of
excluding the Federal Republic of Yugoslavia from the trade preferences as a whole
and in full compliance with Council Regulation (EC) No 1294/99 of 15 June 1999
in relation to the
concerning a freeze of
Federal Republic of Yugoslavia (FRY) and repealing Regulations (EC) No 1295/98
and (EC) No 1607/985.

funds and a ban on investment

(11)

The former Yugoslav Republic of Macedonia is already linked to the Community by a
Co-operation Agreement containing trade preferences, and the Community and its
Member States opened negotiations for a Stabilisation and Association Agreement
with that country. The equivalent of improved autonomous trade preferences under
this Regulation should, therefore, be granted to that country on a separate basis, with
the exception of concessions for wine.

4

5

Subject to international civil administration by the United Nations Mission in Kosovo (UNMIK).
OJ L 153, 19.6.1999, p. 63; Regulation as last amended by Council Regulation (EC) No 723/2000
(OJ L 86, 7.4.2000, p. 1).

7

(12)

(13)

(14)

(15)

(16)

(17)

The proposed Regulation should continue to provide for concessions on wine, as
granted under Regulation (EC) No 6/2000, which apply equally to Slovenia and the
former Yugoslav Republic of Macedonia pending the conclusion of specific wine
agreements with these countries. As these concessions continue to consist of a global
tariff quota, it is appropriate to keep these provisions in one and the same Regulation.

It is, therefore, appropriate to grant the improved autonomous trade preferences to
Albania, Bosnia and Herzegovina and Croatia and to include Kosovo and to grant
limited and specific trade preferences for certain industrial products originating in the
Federal Republic of Yugoslavia.

For the purposes of certification or origin and administrative cooperation procedures,
the relevant provisions of Commission Regulation (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 Code6 should be applied.

For the sake of rationalisation and simplification, it is appropriate to provide that the
Commission may, having consulted the Customs Code Committee and without
prejudice to the specific procedures provided for in this Regulation, make any
necessary changes and technical amendments necessary to this Regulation.

Since the measures necessary for
this Regulation are
management measures within the meaning of Article 2 of Council Decision
1999/468/EC of 28 June 1999 laying down the procedures for the exercise of
implementing powers conferred on the Commission7, they should be adopted by use of
the management procedure provided for in Article 4 of that Decision;

the implementation of

The introduction of the proposed measures for agricultural products and fishery
products originating in the Republics of Albania, Bosnia and Herzegovina and Croatia
will make the inclusion of those Republics in the Community’s scheme of generalised
tariff preferences superfluous. It is therefore appropriate to remove those Republics
from the list of beneficiaries of Council Regulation (EC) No 2820/98 of
21 December 1998 applying a multiannual scheme of generalised tariff preferences for
the period 1 July 1999 to 31 December 20018.

(18) A single new Regulation containing all autonomous trade preferences would give
greater transparency to the Community trade regime with countries and territories
linked to the EU Stabilisation and Association process.
participating in or
Consequently, Council Regulations (EC) Nos 1763/1999 and 6/2000 should be
replaced.

(19)

These import arrangements should be renewed on the basis of the conditions
established by the Council and in the light of the experience gained in granting these
arrangements under this Regulation. It is therefore appropriate to limit the duration of
the arrangements to 31 December 2002,

6

7

8

OJ L 253, 11.10.1993, p. 1; Regulation as last amended by Regulation (EC) No 1662/1999 (OJ L 197,
29.7.1999, p. 25).
OJ L 184, 17.7.1999, p. 23.
OJ L 357, 30.12.1998, p. 1; Regulation as amended by Regulation (EC) No 1763/1999.

8

HAS ADOPTED THIS REGULATION:

Article 1

Preferential arrangements

1.

2.

3.

1.

2.

Subject to the special provisions laid down in Articles 3 and 4, products originating
in the Republics of Albania, Bosnia and Herzegovina and Croatia as well as in
Kosovo as defined by the United Nations Security Council Resolution 1244 of
10 June 1999 (hereinafter referred to as "Kosovo"), other than those of heading
Nos 0102, 0201, 0202 and 1604 of the Combined Nomenclature, shall be admitted
for import into the Community without quantitative restrictions or measures having
equivalent effect and with exemption from customs duties and charges having
equivalent effect.

Wine imports originating in the Republic of Slovenia and the former Yugoslav
Republic of Macedonia shall benefit from concessions provided for in Article 4.

Certain industrial products originating in the Federal Republic of Yugoslavia shall
benefit from concessions provided for in Article 5.

Article 2

Conditions for entitlement to the preferential arrangements

Entitlement to benefit from the preferential arrangements introduced by Article 1
shall be subject to the following:

(a)

(b)

compliance with the definition of the concept of "originating products"
provided for in Title IV, Chapter 2, section 2 of Regulation (EEC) No 2454/93;
and

to the abstention of the countries and territories mentioned in Article 1 from
introducing new duties or charges having equivalent effect and new
quantitative restrictions or measures having equivalent effect from imports
originating in the Community or from increasing existing levels of duties or
charges or from introducing any other restrictions from the day of the entry
into force of this Regulation.

For Albania, Bosnia and Herzegovina and Croatia, the entitlement to benefit from the
preferential arrangements introduced by Article 1 shall equally be subject to their
readiness to engage in effective economic reforms and in regional cooperation with
other countries concerned by the European Union's Stabilisation and Association
process, in particular through the establishment of free trade areas in conformity with
Article XXIV of the GATT 1994 and other relevant WTO provisions.

In the event of non-compliance in this respect, the Council may take the appropriate
measures by a qualified majority vote, on the basis of a Commission proposal.

9

1.

2.

1.

2.

Article 3

Limited concessions for certain textile products

As regards textile products originating in the countries or territories referred to in
Article 1 (1) of this Regulation and indicated in Annex III B of Regulation (EC)
No 517/94, the exemption from customs duties and charges having equivalent effect
shall be limited to the Community annual quantities set out in Regulation (EC)
No 517/94.

For re-importations following an outward processing operation in accordance with
Council Regulation (EC) No 3036/949, the exemption from customs duties shall be
limited to the Community annual quantities set in Annex VI to Regulation (EC)
No 517/94 when products are originate in countries or territories mentioned in
Article 1(1) of this Regulation.

Article 4

Agricultural products – tariff quotas

For certain fishery products originating in Albania, Bosnia and Herzegovina
and Croatia and wine originating in the countries and territories referred to in
Article 1 (1) and (2), both listed in Annex I, the customs duties applicable to imports
into the Community shall be suspended during the periods, at the levels and within
the limits of the Community tariff quotas indicated for each product in that Annex.

The customs duties applicable to imports into the Community of ‘baby-beef’
products defined in Annex II and originating in the countries and territories referred
to in Article 1(1), shall be 20% of the ad valorem duty and 20% of the specific duty
as laid down in the Common Customs Tariff, within the limit of an annual tariff
quota of 10.900 tonnes expressed in carcass weight.

The volume of the annual tariff quota of 10.900 tonnes shall be distributed among the
beneficiary republics, as follows:

(a)

1.500 tonnes (carcass weight) for ‘baby-beef’ products originating in Bosnia
and Herzegovina;

(b)

9.400 tonnes (carcass weight) for ‘baby-beef’ products originating in Croatia.

Imports into the Community of ‘baby-beef’ products defined in Annex II and
originating in Albania and in Kosovo shall not benefit from a tariff concession.

9

OJ L 322, 15.12.1994, p. 1.

10

Any request for import within these quotas shall be accompanied by an authenticity
certificate issued by the competent authorities of the exporting country and attesting
that the goods originate in the country or territory concerned and correspond to the
definition in Annex II. This certificate shall be drawn up by the Commission
according to the procedure provided for in Article 43 of Council Regulation (EC)
No 1254/199910.

Article 5

Tariff quotas for aluminium products originating
in the Federal Republic of Yugoslavia

From 1 January to 31 December each year, imports into the Community of aluminium
products originating in the Federal Republic of Yugoslavia and listed in Annex III, shall
benefit from an exemption from customs duties in accordance with the Community tariff
quotas specified in that Annex.

Article 6

Implementation of tariff quotas for "baby beef"

The detailed rules for implementing the tariff quota for ‘baby-beef’ products shall be determined
by the Commission according to the procedure provided for in Article 43 of Regulation (EC)
No 1254/99.

Article 7

Administration of tariff quotas

The tariff quotas referred to in Article 4(1) and Article 5 shall be administered by the
Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC)
No 2454/93.

Communication for that purpose between the Member States and the Commission shall be
effected, as far as possible, by telematic link.

Article 8

Access to tariff quotas

Each Member State shall ensure that importers have equal and uninterrupted access to the
tariff quotas for as long as the balance of the relevant quota volume so permits.

10

OJ L 160, 26.6.1999, p. 21.

11

Article 9

Conferment of powers

The Commission shall, in accordance with the procedure referred to in Article 10(2), adopt
the provisions necessary for the application of this Regulation, other than those provided for
in Article 6, notably:

(a)

(b)

1.

2.

3.

amendments and technical adjustments necessary following amendments to the
Combined Nomenclature codes and to the Taric-subdivisions;

necessary adjustments following the conclusion of other agreements between the
Community and the countries and territories referred to in Article 1.

Article 10

Management Committee

The Commission shall be assisted by the Customs Code Committee instituted by
Article 247 of Council Regulation (EEC) No 2913/9211, hereinafter referred to as the
‘Committee’.

Where reference is made to this paragraph, the management procedure laid down in
Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7 thereof.

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

Article 11

Cooperation

Member States and the Commission shall cooperate closely to ensure that this Regulation is
complied with.

Article 12

Temporary suspension

1.

Where the Commission finds that there is sufficient evidence of fraud or failure to
provide administrative cooperation as required for the verification of evidence of
origin, or that there is a massive increase of exports into the Community above the
level of normal production and export capacity or a failure of compliance with the
provisions of Article 2(1) by countries and territories covered by this Regulation, it
may take measures to suspend in whole or in part the arrangements provided for in
this Regulation for a period of three months, provided that is has first:

11

OJ L 302, 19.10.1992, p. 1.

12

(a)

(b)

(c)

informed the Committee;

called on the Member States to take such precautionary measures as are
necessary in order to safeguard the Community’s financial interests and/or to
secure compliance by the beneficiary countries and territories with
Article 2(1);

published a notice in the Official Journal of the European Communities
stating that there are grounds for reasonable doubts about the application of
the preferential arrangements and/or compliance with Article 2(1) by the
beneficiary country or territory concerned which may call into question its
right to continue enjoying the benefits granted by this Regulation.

2.

3.

A Member State may refer the Commission’s decision to the Council within 10 days.
The Council, acting by a qualified majority, may take a different decision within
30 days.

On conclusion of the period of suspension, the Commission shall decide either to
terminate the provisional suspension measure following consultation of
the
Committee or to extend the suspension measure in accordance with the procedure
provided for in paragraph 1.

Article 13

Amendment of Regulation (EC) No 2820/98

In Annex III to Regulation (EC) No 2820/98, the following entries are deleted:

"AL Albania(1)", "BA Bosnia and Herzegovina(1)" and "HR Croatia(1)".

Article 14

Repeals

Regulations (EC) Nos 1763/1999 and 6/2000 are hereby repealed.

Article 15

Initial pro rata application

1.

2.

By way of derogation from Article 7, paragraphs 2, 3 and 4 of this Article shall apply
for the first calendar year of the application of this Regulation.

The volumes of the tariff quotas shall be calculated as a pro rata of the basic
volumes indicated in Annexes I and III, account being taken of the part of the period
elapsed before the date of application of this Regulation.

13

3.

4.

1.

The quantities which have been imported within the framework of the tariff quotas
with order numbers 09.1515 and 09.1561 applicable within Regulations (EC)
Nos 6/2000 and 1763/1999 respectively, shall be taken into account for charging on
the respective tariff quotas in Annex I to this Regulation.

The quantities which have been imported within the framework of the tariff quotas
for "baby beef" applicable within Article 5(3) and Annex F of Regulation (EC)
No 6/2000 shall be taken into account for charging on the respective tariff quotas
referred to in Article 4(2) and Annex II of this Regulation.

Article 16

Transitional measures

The benefit of the generalised tariff preferences established by Regulation (EC)
No 2820/98 shall continue to be granted in respect of goods originating in Albania,
Bosnia and Herzegovina and Croatia which are put
into free circulation in the
Community before [the first day of the fourth month following the entry into force of
this Regulation], provided that:

(a)

(b)

the goods concerned are covered by a purchase contract concluded before the
date of entry into force of this Regulation; and

it can be shown to the satisfaction of the customs authorities that those goods
left the country of origin no later than the date of entry into force of this
Regulation.

2.

The customs authorities may regard paragraph 1(b) as having been satisfied if one of
the following documents is submitted to them:

(a)

(b)

(c)

(d)

in the case of transport by sea or waterway, the bill of loading showing that
loading took place before the date of entry into force of this Regulation;

in the case of transport by rail, the consignment note accepted by the railways
of the expediting country before the date of entry into force of this
Regulation;

in the case of transport by road, the international road transport TIR carnet
issued before the date of entry into force of this Regulation by the customs
office in the country of origin or any other appropriate document
authenticated by the relevant customs authorities of the country of origin
before that date;

in the case of transport by air, the air consignment note showing that the
airline received the goods before the date of entry into force of this
Regulation.

14

Article 17

Entry into force and application

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

It shall apply from the first day of the second month after its entry into force until
31 December 2002.

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

Done at Brussels,

For the Council
The President

15

ANNEX I

concerning the tariff quotas referred to in Article 4(1)

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 these Annexes, 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.

CN Code

Description

Quota
volume
per
year(1)

100
tonnes

Beneficiaries

Rate of
duty

Exemption

Albania,
Bosnia and
Herzegovina,
Croatia

Trout (Salmo trutta,
Oncorhynchus mykiss,
Oncorhynchus clarki,
Oncorhynchus aguabonita,
Oncorhynchus gilae,
Oncorhynchus apache and
Oncorhynchus chrysogaster):
live; fresh or chilled; frozen;
dried, salted or in brine,
smoked; fillets and other fish
meat; flours, meals and
pellets, fit for human
consumption

Carp: live; fresh or chilled;
frozen; dried, salted or in
brine, smoked; fillets and
other fish meat; flours, meals
and pellets, fit for human
consumption

Exemption

300
tonnes

Albania,
Bosnia and
Herzegovina,
Croatia

Order
No

09.1571

09.1573

0301 91 10
0301 91 90
0302 11 10
0302 11 90
0303 21 10
0303 21 90
0304 10 11
0304 10 19
0304 10 91
0304 20 11
0304 20 19
0304 90 10
0305 10 00
0305 30 90
0305 49 45
0305 59 90
0305 69 90
0301 93 00
0302 69 11
0303 79 11
0304 10 19
0304 10 91
0304 20 19
0304 90 10
0305 10 00
0305 30 90
0305 49 80
0305 59 90
0305 69 90

ex
ex

ex
ex
ex
ex

ex
ex

ex
ex
ex
ex
ex
ex
ex
ex
ex

(1)

One global volume per tariff quota shared among the beneficiaries.

16

09.1575

ex

ex
ex
ex
ex
ex
ex
ex
ex
ex
ex

ex
ex
ex
ex
ex
ex
ex
ex
ex
ex

09.1577

09.1579

0301 99 90
0302 69 61
0303 79 71
0304 10 38
0304 10 98
0304 20 95
0304 90 97
0305 10 00
0305 30 90
0305 49 80
0305 59 90
0305 69 90
0301 99 90
0302 69 94
0303 77 00
0304 10 38
0304 10 98
0304 20 95
0304 90 97
0305 10 00
0305 30 90
0305 49 80
0305 59 90
0305 69 90
1604 13 11

1604 13 19

Sea bream (Dentex dentex
and Pagellus spp.): live;
fresh or chilled; frozen;
dried, salted or in brine,
smoked; fillets and other fish
meat; flours, meals and
pellets, fit for human
consumption

Sea bass (Dicentrarchus
labrax): live; fresh or chilled;
frozen; dried, salted or in
brine, smoked; fillets and
other fish meat; flours, meals
and pellets, fit for human
consumption

Prepared or preserved
sardines

ex

1604 20 50

09.1561

1604 16 00
1604 20 40

Prepared or preserved
anchovies

Wine of fresh grapes, of an
actual alcoholic strength by
volume not exceeding 15%
vol, other than sparkling
wine

09.1515

2204 21 79

ex

2204 21 80

2204 21 83

ex

2204 21 84

2204 29 65

ex

2204 29 75

2204 29 83

ex

2204 29 84

Exemption

100
tonnes

Albania,
Bosnia and
Herzegovina,
Croatia

Exemption

600
tonnes

Albania,
Bosnia and
Herzegovina,
Croatia

6%

12.5%

Exemption

250
tonnes

1 000
tonnes

545 000
hl

Albania,
Bosnia and
Herzegovina,
Croatia
Albania,
Bosnia and
Herzegovina,
Croatia

Albania,
Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav
Republic of
Macedonia,
Kosovo,
Slovenia

17

ANNEX II

Definition of ‘baby beef’ products referred to in Article 4(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. Where ex CN codes are
indicated, the preferential scheme is to be determined by application of the CN code and corresponding
description taken together.

CN Code

Taric
sub-
division

Description

ex

0102 90 51

ex

0102 90 59

ex

0102 90 71

ex

0102 90 79

ex

0201 10 00

ex

0201 20 20

10

11
21
31
91

10

21
91

91

91

Live bovine animals :
- Other :
-- Domestic species :
--- Of a weight exceeding 300 kg :
---- Heifers (female bovines that have never calved) :
----- For slaughter :

- Not yet having any permanent teeth, of a weight of

320 kg or more but not exceeding 470 kg (1)

----- Other :

- Not yet having any permanent teeth, of a weight of

320 kg or more but not exceeding 470 kg (1)

---- Other :
----- For slaughter :

- Bulls and steers not yet having permanent teeth, of a
weight of 350 kg or more but not exceeding 500 kg (1)

----- Other :

- Bulls and steers not yet having permanent teeth, of a
weight of 350 kg or more but not exceeding 500 kg (1)

Meat of bovine animals, fresh or chilled :
- Carcases and half-carcases :

- Carcases of a weight of 180 kg or more but not
exceeding 300 kg, and half carcases of a weight of 90 kg
or more but not exceeding 150 kg, with a low degree of
ossification of the cartilages (in particular those of the
symphysis pubis and the vertebral apophyses), the meat
of which is a light pink colour and the fat of which, of
extremely fine texture,
is white to light yellow in
colour(1)

- Other cuts with bone in :
-- ‘Compensated’ quarters :

- 'Compensated' quarters of a weight of 90 kg or more
but not exceeding 150 kg, with a low degree of
ossification of the cartilages (in particular those of the
symphysis pubis and the vertebral apophyses), the meat
of which is a light pink colour and the fat of which, of
extremely fine texture,
is white to light yellow in
colour (1)

(1)

Entry under this subheading is subject to conditions laid down in the relevant Community provisions.

18

ex

0201 20 30

-- Unseparated or separated forequarters :

91

- Separated forequarters, of a weight of 45 kg or more but
not exceeding 75 kg, with a low degree of ossification of
the vertebral
the cartilages (in particular
apophyses), the meat of which is a light pink colour and
the fat of which, of extremely fine texture, is white to
light yellow in colour (1)

those of

ex

0201 20 50

-- Unseparated or separated hindquarters :

91

- Separated hindquarters of a weight of 45 kg or more but
not exceeding 75 kg (but 38 kg or more and not
exceeding 68 kg in the case of 'Pistola' cuts), with a low
degree of ossification of the cartilages (in particular
those of the vertebral apophyses), the meat of which is a
light pink colour and the fat of which, of extremely fine
texture, is white to light yellow in colour (1)

(1)

Entry under this subheading is subject to conditions laid down in the relevant Community provisions.

19

ANNEX III

Concerning the annual tariff quotas referred to in Article 5 and applicable to certain
industrial products originating in the Federal Republic of Yugoslavia

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 these Annexes, 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.

Order
number

CN Code

Description

09.1591

2818

Artificial corundum, whether or not chemically
defined; aluminium oxide; aluminium hydroxide

09.1593

7601

Unwrought aluminium

Quota volume
(in tonnes)

10 000

40 000

20

FINANCIAL STATEMENT

1.

TITLE OF OPERATION:

trade measures for
Proposal for a Council Regulation introducing exceptional
countries and territories participating in or
linked to the European Union's
Stabilisation and Association process [concerning the arrangements applicable to
imports into the Community of products originating in the Republics of Albania,
Bosnia and Herzegovina and Croatia as well as in Kosovo as defined by UNSC
Resolution 1244 of 10 June 1999, to imports of wine originating in the former
Yugoslav Republic of Macedonia and the Republic of Slovenia and to imports of
certain industrial products originating in the Federal Republic of Yugoslavia,
repealing Council Regulations (EC) Nos 6/2000 and 1763/99 and amending
Council Regulation (EC) No 2820/98 by ending GSP benefit for the Republics of
Albania, Bosnia and Herzegovina and Croatia]

2.

BUDGET HEADING INVOLVED:

Chapter 12, Article 120.

3.

LEGAL BASIS:

Article 133 of the EC Treaty.

4.

OBJECTIVE:

• The upgrading of the existing EC autonomous preferential trade arrangements
applicable to imports into the Community of products originating in the Republics
of Bosnia and Herzegovina and Croatia and to imports of wine originating in the
former Yugoslav Republic of Macedonia and the Republic of Slovenia and, on a
separate basis, to Albania (in one single new Regulation);

• The extension of these preferences to imports from Kosovo as defined by UNSC

Resolution 1244 of 10 June 1999;

• The granting of specific limited concessions for the import of certain Montenegrin

industrial products originating in the Federal Republic of Yugoslavia;

• The removal of Albania, Bosnia and Herzegovina and Croatia from the GSP.

5.

FINANCIAL IMPACT:

The existing Regulations already provided for duty-free access for at least 80% of all
imports from the countries concerned (annual losses at around 100 MEURO per
annum) The abolishment of remaining tariff ceilings for certain industrial products
and the improved accessfor agricultural products including processed agricultural
products and fisheries may increase the rate of duty-free access to the Community up
to 95%. A significant financial impact in terms of losses for the Community budget

21

is, however, unlikely, mainly because in the past the countries eligible for the trade
arrangements were unable to use fully the given preferences and this is not likely to
change quickly. All imports from the countries concerned represent less than 0.6% of
total imports of the Community.

6.

FIGHT AGAINST FRAUD:

Provisions on the management of tariff quotas and a specific temporary suspension
clause (Article 10) include the measures necessary for preventing and protecting
against fraud and irregularities in the case of failure to provide administrative
cooperation as required for the verification of evidence of origin or massive increase
of exports into the Community above the level of normal production and export
capacity of the countries and territories concerned.

22