Proposal for a Council Regulation establishing additional customs duties on imports of certain products originating in the United States of America
Date: 2003-11-05
Institutions: European Commission
Subjects: United States, anti-subsidy proceeding, common commercial policy, common tariff policy, customs duties, import (EU), originating product, trade dispute

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 5.11.2003
COM(2003) 661 final

2003/0264 (ACC)

Proposal for a

COUNCIL REGULATION

establishing additional customs duties on imports of certain products originating
in the United States of America

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  history  of  this  case  goes  back  to  1971  to  the  Domestic  International  Sales  Corporation
(DISC) scheme, which was declared an illegal export subsidy by a GATT panel in 1976 (the
panel ruling was adopted in 1981). The US replaced the DISC scheme with the FSC scheme
in 1984. At the time the EU contested the legality of the FSC but did not pursue it due to the
opening of the Uruguay Round trade negotiations.

Following further complaints by EU companies, and in view of the increasing amount of FSC
subsidies being  granted by  the US,  the  EU  resumed  bilateral  contacts  with  the  US  in  1997.
Since  no  progress  was  made,  the  EU  requested  a  WTO  panel  to  pronounce  itself  on  the
dispute. The Panel in its report of October 1999, found the FSC to constitute an illegal export
subsidy  under  both  the  Subsidies  Agreement  and  (in  relation  to  agricultural  products)  the
Agriculture  Agreement.  The  US  appealed  against  the  Panel  Ruling  but  the  Appellate  Body
confirmed  the  panel  findings  on  the  illegality  of  the  FSC  scheme.  The  US  was  then  given
until 1 October 2000 (extended to 1 November 2000) to withdraw the FSC scheme.

In an effort to comply, on 15 November 2000, President Clinton signed the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000 (ETI Act) into law. The ETI Act, however, did
not modify the substance of the export subsidy scheme and as a result on 17 November 2000,
the EU launched a further panel proceeding on compliance and at the same time presented a
request  for  countermeasures  for  an  amount  of  US  $  4,043  million.  While  the  compliance
panel was established in December 2000, it was agreed that, during the compliance procedure,
the arbitration procedure on the amount of countermeasures would be suspended and that it
would  be  automatically  reactivated  upon  adoption  by  the  WTO  of  the  Appellate  Body’s
findings.

On 20 August 2001, the WTO compliance panel examining the ETI  Act issued its report in
full  support  of  the  EU.  In  particular,  the  panel  found  that  the  ETI  Act  also  constituted  a
prohibited export subsidy under WTO rules and  that  it  did not  amount to withdrawal  of the
FSC  subsidy.  The  US  appealed  but  in  January  2002  the  WTO  Appellate  Body  once  more
confirmed the panel findings.

Consequently,  on  28  January  2002  the  panel  and  Appellate  Body  reports  were  adopted  and
the arbitration procedure was reactivated. The report of the arbitrators was originally due on
29  March  2002  (60  days  from  adoption  of  the  reports)  but,  upon  the  initiative  of  the
arbitrators,  it  was  delayed  until  the  end  of  August  2002.  On  30  August  2002  the  WTO
arbitrators  authorised  the  EU  to  impose  sanctions  at  the  level  of  US  $  4,043  million  by
increasing the customs duties on certain selected products up to 100%.

On 13 September the Commission published a Notice in the Official Journal containing a list
of products proposed to be covered by any retaliatory measures. In line with WTO practice,
the  list  was  set  at  a  higher  level  than  the  amount  set  by  the  arbitrator  in  order  to  allow  for
exclusion of products following the consultation of interested parties. The aim of the public
consultation,  which  lasted  60  days,  was  to  minimise  the  negative  consequences  that  any
eventual sanctions could create to EU interests; in that respect, the Commission had included
in  the  list  products  on  which  the  US  import  share  was  low  (below  20%  import  share)  i.e.
products on which the EC is not substantially dependent for its supply on the US. Following
the public consultation procedure, the Commission consulted Member States and agreement
was  reached  on  a  final  list  of  products  of  an  equivalent  value  to  the  level  of  permitted
countermeasures which was notified to the WTO. Finally, on 7 May 2003, at a special DSB
meeting, the EC was authorised by the DSB to impose countermeasures.

2

Within the list notified to the WTO there were four products which had been transferred from
the  steel  countermeasures  list  (Regulation  1031/2002,  OJ  L  157  of  15  June  2002).  These
products  are  excluded  from  the  application  of  this  Regulation  to  avoid  a  potential  double
imposition of countermeasures on the same products.

in  view  of 

It is considered that the  imposition,  in stages,  of  additional  import  duties  of  up  to  100%  ad
valorem,  on  all  imports  of  the  US  origin  products  covered  by  the  WTO  authorisation  is  an
appropriate  countermeasure 
the  DSB
recommendations. However, a gradual approach to the imposition of countermeasures both in
terms of timing and level is considered preferable. The application to all the products in the
list (excluding the four products from the steel list, see above) of initially a low level of duties
(5%)  which  is  to  be  increased  monthly  up  to  the  level  of  17%  is,  therefore,  foreseen.
Thereafter,  the  Commission  will  present  a  proposal  to  the  Council  for  further  action  in  the
light of developments.

the  US  failure 

implement 

to 

On these selected products, the tariff bindings granted by the Community to the US shall be
suspended from 1 March 2004 and such suspension shall be notified to the WTO by that date.
The  above  timing  would  allow  the  US  to  comply  with  the  WTO  ruling  before  the
countermeasures are actually imposed. The suspension of tariff  bindings  shall  be  temporary
and shall only be applied until such time as the WTO inconsistent measure has been removed.
The  Commission  will  make  a  proposal  for  the  repeal  of  the  Regulation  even  before  the
countermeasures  are  applied  on  1  March  2004  in  case  the  US  has  fully  complied  with  the
WTO rulings and recommendations before that date.

3

2003/0264 (ACC)

Proposal for a

COUNCIL REGULATION

establishing additional customs duties on imports of certain products originating
in the United States of America

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) 

(4) 

1

2

On  20  March  2000,  at  the  request  of  the  European  Communities,  the  WTO  Dispute
Settlement  Body  (DSB)  adopted  the  panel  and  the  Appellate  Body  reports  which
established that the tax treatment of Foreign Sales Corporations (FSC) by the United
States of America constituted a prohibited export subsidy under the WTO Agreement.

On  15  November  2000,  the  United  States  of  America  enacted  the  FSC  Repeal  and
Extraterritorial Income Exclusion Act of 2000. On 29 January 2002, the DSB adopted
the  panel  and  Appellate  Body  reports  which  established  that  the  above  Act  also
constituted a prohibited export subsidy under the WTO and that it did not amount to
withdrawal  of  the  FSC  subsidy.  Consequently,  on  7  May  2003,  the  European
Communities was authorised by the DSB to impose countermeasures up to a level of
US$  4,043  million  in  the  form  of  additional  100%  ad  valorem  duties  on  certain
products originating in the United States of America.

It is considered that, initially, the imposition in stages of additional import duties of up
to a 17% ad valorem on imports of selected products originating in the United States
of  America  is  an  appropriate  countermeasure,  in  view  of  the  failure  of  the  United
States  of  America  to  implement  the  DSB  recommendations.  After  the  above
mentioned  level  of  additional  duties  is  reached,  the  Commission  shall  present  a
proposal to the Council for further action in the light of developments.

In respect of these selected products, the tariff concessions of the Community should
be  suspended  from  1  March  2004.  The  suspension  of  tariff  bindings  should  be
temporary and shall only be applied until such time as the WTO inconsistent measure
has been removed. The origin of any product to which this Regulation applies shall be
determined in accordance with the provisions of (EEC) Regulation N° 2913/922.

OJ C […], […], p. […].
Council  Regulation  (EEC)  No  2913/92  establishing  the  Community  Customs  Code  (OJ  L  302,
19.10.1992, p. 1), as last amended by (EC) Regulation N° 2700/2000 (OJ L 311 of 12.12.2000, p. 17).

4

                                                
(5) 

(6) 

(7) 

Products for which an import licence with an exemption from, or a reduction of, duty
has  been  issued  prior  to  the  date  of  entry  into  force  of  this  regulation  should  not  be
subject to these additional customs duties.

Products  for  which  it  can  be  proved  that  they  have  been  exported  from  the  United
States  of  America  to  the  Community  prior  to  the  date  of  first  application  of  the
additional customs duties should not be subject to these additional customs duties.

Products  affected  by  the  suspension  of  concessions  should  be  placed  under  the
customs  procedure  “processing  under  customs  control”  only  pursuant  to  an
examination in the Committee of the Customs Code3.

HAS ADOPTED THIS REGULATION:

Article 1

The  tariff  concessions  of  the  Community  are  hereby  suspended  as  from  1  March  2004  in
respect  of  products  originating  in  the  United  States  of  America  listed  in  the  Annex  to  this
Regulation.

Article 2

1.

An  ad  valorem  duty  additional  to  the  customs  duty  applicable  under  Council
Regulation  (EEC)  No.  2913/92  shall  be  imposed  on  the  products  originating  in  the
United States of America listed in the Annex to this Regulation, as follows:

5% from 1 March 2004 to 31 March 2004 inclusive

6% from 1 April 2004 to 30 April 2004 inclusive

7% from 1 May 2004 to 31 May 2004 inclusive

8% from 1 June 2004 to 30 June 2004 inclusive

9% from 1 July 2004 to 31 July 2004 inclusive

10% from 1 August 2004 to 31 August 2004 inclusive

11% from 1 September 2004 to 30 September 2004 inclusive

12% from 1 October 2004 to 31 October 2004 inclusive

13% from 1 November 2004 to 30 November 2004 inclusive

14% from 1 December 2004 to 31 December 2004 inclusive

3

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 Code
(OJ  L  253,  11.10.1993,  p.  1),  as  last  amended  by  (EC)  Regulation  N°  1335/2003  (OJ  L  187  of
26.7.2003, p. 16).

5

                                                
15% from 1 January 2005 to 31 January 2005 inclusive

16% from 1 February 2005 to 28 February 2005 inclusive

17% from 1 March 2005

2.

3.

After 1 March 2005, the Commission shall present a proposal to the Council for the
revision of the Regulation in the light of developments.

The  origin  of  any  product  to  which  this  Regulation  applies  shall  be  determined  in
accordance with the provisions of Council Regulation (EEC) N° 2913/92.

The Council shall decide on the repeal of this Regulation once the United States of America
have fully implemented the recommendation of the WTO Dispute Settlement Body.

Article 3

Article 4

1.

2.

3.

Products listed in the Annex for which an import licence with an exemption from or
a  reduction  of  duty  has  been  issued  prior  to  the  date  of  entry  into  force  of  this
regulation shall not be subject to the additional duty.

Products listed in the Annex for which it can be demonstrated that they are already
on their way to the Community on the date of entry into force of this Regulation, and
whose destination cannot be changed, shall not be subject to the additional duty.

Products listed in the Annex may be placed under the customs procedure “processing
under  customs  control”  in  accordance  with  Article  551(1)  first  subparagraph  of
Commission  Regulation  (EEC)  n°  2454/93  only  where  the  examination  of  the
economic conditions has taken place in the Committee of the Customs Code unless
the products and operations are mentioned in Annex 76, Part A of that Regulation.

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

Article 5

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

Done at Brussels, […]

For the Council
The President
[...]

6

ANNEX

The  products  on  which  additional  duties  are  to  apply  are  identified  by  their  eight-digit  CN
codes. The description of these codes can be found in Annex I to Council Regulation (EEC)
No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (as
last amended by Commission Regulation (EC) No. 1832/2002, OJ  L 290, 28.10.2002, p. 1).
The description of the two-digit CN Chapters is given for information purposes only.

1

2

4

CN
Chapters

Live animals

Description chapter

01019019

01061200

01062000

01063200

01069000

01061100

01061990

01063100

01063990

Meat and edible meat offal

02032211

02032990

02050019

02085000

02101981

02032955

02044310

02083000

02089040

02032959

02050011

02084090

02089095

Dairy  produce;  birds'  eggs;  natural  honey;  edible  products  of  animal
origin, not elsewhere specified or included

04021019

04041002

04069069

04081180

04022119

04061020

04069081

04089180

04031091

04062090

04069086

04090000

04039091

04069021

04069087

04100000

5

Products of animal origin not elsewhere specified or included

05010000

05040000

05059000

05090010

05021000

05051010

05079000

05119110

05029000

05051090

05080000

05119910

7

7

Products of animal origin not elsewhere specified or included

07020000

07094000

07102100

07109000

07123900

07031019

07095910

07102200

07114000

07129030

07061000

07095990

07102900

07115900

07131090

07069090

07096010

07108051

07119080

07132000

07081000

07096099

07108059

07123100

07133100

07082000

07099060

07108085

07123200

07139090

07092000

07099090

07108095

07123300

07141099

8

Edible fruit and nuts; peel of citrus fruits or melons

10

11

12

08011100

08043000

08071900

08104030

08121000

08011900

08044000

08072000

08111011

08131000

08012100

08051030

08091000

08111090

08134095

08013200

08052090

08092005

08112031

08135099

08030019

08055010

08093010

08119050

08030090

08055090

08093090

08119070

08042090

08059000

08094005

08119080

Cereals

10081000

10082000

10083000

Products of the milling industry; malt; starches; inulin; wheat gluten

11023000

11062090

11071099

11032040

11063010

11081990

Oil seeds and oleaginous fruits; miscellaneous grains; seeds and fruit;
industrial or medical plants; straw and fodder

12040090

12076090

12092600

12114000

12149091

12051090

12079920

12099910

12119075

12149099

12059000

12079998

12101000

12122000

12071090

12091000

12111000

12129980

8

12072090

12092280

12112000

12130000

12074090

12092311

12113000

12141000

15

Animal or vegetable fats and oils and their cleavage products; prepared
edible fats; animal or vegetable waxes

15010011

15071090

15121991

15153010

15159091

15020090

15079090

15131930

15153090

15200000

15041010

15081090

15131999

15154000

15211000

15041099

15111010

15132991

15155019

15219091

15050010

15119099

15141990

15155099

15219099

15050090

15121191

15149990

15159040

15220099

16

Preparations  of  meat,  of  fish  or  of  crustaceans,  molluscs  or  other
aquatic invertebrates

16023119

16041411

16052010

16054000

16024110

16041416

16052091

16059030

16030010

16043010

16052099

17

Sugars and sugar confectionery

17011190

17024010

17049065

17049081

17019910

17029099

17049071

17049099

17022090

17041019

17049075

19

Preparations of cereals, flour, starch or milk; pastrycooks' products

19011000

19022099

19043000

19053191

19059020

19012000

19023010

19049080

19053199

19059030

19019091

19023090

19051000

19053211

19059045

19021910

19041010

19053111

19053219

19021990

19041090

19053119

19053299

19022091

19042099

19053130

19059010

9

20

Preparations of vegetables, fruit, nuts or other parts of plants

20011000

20055900

20060038

20093931

20097919

20019070

20056000

20079939

20093939

20097999

20019096

20057010

20079958

20094110

20098038

20021010

20057090

20079993

20094199

20098071

20021090

20059050

20093111

20094930

20098097

20031030

20059070

20093119

20094999

20041099

20059080

20093199

20097199

21

Miscellaneous edible preparations

21011111

21022011

21042000

21069020

21011119

21023000

21050010

21069059

21021090

21039010

21050091

23

Residues and waste from the food industries; prepared animal fodder

23011000

23040000

23063000

23065000

23099041

23012000

23050000

23064100

23066000

23031090

23061000

23064900

23070090

33

34

Essential oils and resinoids; perfumery, cosmetic or toilet preparations

33012310

33012931

33074100

Soap,  organic  surface-active agents, washing preparations,  lubricating
preparations,  artificial  waxes,  prepared  waxes,  polishing  or  scouring
preparations,  candles  and  similar  articles,  modelling  pastes,  dental
waxes and dental preparations with a basis of plaster

34012010

34060011

34060019

34060090

35

Albuminoidal substances; modified starches; glues; enzymes

35011050

35011090

35019090

35030080

35071000

10

41

Raw hides and skins (other than furskins) and leather

41044119

41063210

41071910

41079990

41141090

41044919

41063290

41071990

41120000

41142000

41051090

41071119

41079110

41131000

41151000

41053099

41071190

41079190

41132000

41152000

41063110

41071219

41079210

41139000

41063190

41071291

41079910

41141010

42

Articles  of  leather;  saddlery  and  harness;  travel  goods,  handbags  and
similar containers; articles of animal gut (other than silk-worm gut)

42010000

42022210

42029180

42032100

42040010

42021110

42022900

42029211

42032910

42050000

42021190

42023100

42029215

42032991

42061000

42021291

42023210

42029291

42032999

42069000

42021990

42023290

42029298

42033000

42022100

42029110

42031000

42034000

Furskins and artificial fur; manufactures thereof

43039000

Wood and articles of wood; wood charcoal

43

44

44011000

44071038

44083921

44112110

44181050

44012100

44071091

44083931

44112990

44181090

44012200

44072490

44083935

44122210

44182010

44013010

44072560

44083955

44122291

44182050

44013090

44072690

44083985

44122299

44182080

44020000

44072905

44083995

44122300

44183010

44031000

44072969

44091011

44122920

44183091

44032031

44072983

44091018

44122980

44183099

44032039

44072985

44092011

44129210

44185000

11

44032099

44072995

44092091

44129291

44189010

44034100

44079131

44092098

44129299

44189090

44034910

44079200

44102100

44129920

44190090

44034995

44079930

44102900

44129980

44201011

44039210

44079950

44103100

44140010

44209091

44039951

44079996

44103200

44140090

44209099

44042000

44081015

44103300

44151090

44211000

44071015

44083121

44103900

44152020

44219091

44071031

44083125

44111110

44152090

44071033

44083130

44111910

44170000

48

Paper and paperboard; articles of paper pulp, of paper or of paperboard

48010000

48041990

48059210

48101491

48162000

48024010

48042110

48059291

48101499

48163000

48024090

48042190

48059310

48101910

48169000

48025490

48042910

48059391

48102291

48181090

48025500

48042990

48061000

48102919

48184011

48026110

48043159

48062000

48102920

48184013

48026190

48043959

48064010

48102991

48184019

48026210

48043990

48064090

48102999

48184091

48026290

48044110

48081000

48103100

48201010

48026910

48051200

48092010

48109210

48202000

48030010

48051910

48092090

48109290

48204010

48041190

48051990

48099000

48109990

48239030

48041911

48052400

48101391

48111000

48041915

48052500

48101399

48131000

48041919

48059110

48101411

48143000

48041931

48059191

48101419

48149090

12

49

52

54

57

Printed books, newspapers, pictures and other products of the printing
industry; manuscripts, typescripts and plans

49070010

49070030

Cotton

52079000

Man-made filaments

54061000

Carpets and other textile floor coverings

57011010

57019090

57023990

57025900

57032019

57011091

57021000

57024100

57029100

57039000

57011093

57023100

57024200

57029200

57049000

57011099

57023200

57024990

57029900

57050010

57019010

57023910

57025100

57031000

57050090

61

Articles of apparel and clothing accessories, knitted or crocheted

61011090

61041100

61045100

61079200

61123190

61012010

61041200

61045200

61081100

61124990

61012090

61041300

61045300

61082100

61141000

61019010

61041900

61045900

61082900

61152019

61019090

61042100

61046110

61083110

61152090

61021010

61042200

61046190

61083190

61159100

61022090

61042300

61046910

61083211

61169100

61031100

61042900

61046999

61089190

61169200

61033100

61043100

61059090

61089200

61169900

61033200

61043200

61062000

61089990

61171000

61033300

61043300

61069030

61112090

61172000

61033900

61043900

61069090

61113090

61178010

13

61034110

61044100

61071200

61119000

61178090

61034190

61044200

61071900

61121100

61179000

61034910

61044400

61072100

61121200

61034999

61044900

61079190

61121900

62

Articles of apparel and clothing accessories, not knitted or crocheted

62011100

62032990

62042380

62069010

62102000

62011900

62033100

62043290

62069090

62111100

62019100

62033210

62043310

62071100

62111200

62019900

62033290

62043919

62071900

62112000

62021210

62033310

62043990

62072100

62113100

62021290

62033390

62044100

62072200

62113241

62021310

62034110

62044990

62079110

62113342

62021390

62034190

62045100

62079190

62113900

62021900

62034233

62045200

62081100

62114100

62029100

62034259

62045300

62081990

62123000

62029200

62034331

62045910

62082100

62132000

62029900

62034919

62045990

62082200

62141000

62031200

62034990

62046110

62082900

62142000

62031910

62041100

62046233

62089119

62143000

62031990

62041200

62046950

62089190

62144000

62032210

62041300

62051000

62089200

62149010

62032280

62041990

62059010

62089900

62149090

62032310

62042100

62059090

62092000

62152000

62032380

62042210

62061000

62093000

62159000

62032911

62042280

62062000

62099000

62179000

14

63

Other  made-up  textile  articles;  sets;  worn  clothing  and  worn  textile
articles; rags

63012091

63023210

63029310

63041990

63061200

63012099

63023290

63029390

63049200

63061900

63019090

63023990

63029900

63049300

63062100

63021010

63024000

63031100

63049900

63062200

63021090

63025110

63031200

63052000

63064900

63022100

63025190

63039100

63053289

63069100

63022290

63025390

63039210

63053290

63069900

63022990

63025900

63039290

63053399

63090000

63023110

63029110

63039990

63059000

63109000

63023190

63029190

63041910

63061100

64

Footwear, gaiters and the like; parts of such articles

64019210

64023000

64034000

64042090

64062010

64019290

64029100

64035911

64051090

64062090

64019910

64029931

64035950

64052091

64069910

64019990

64029991

64035991

64052099

64021210

64031200

64039196

64061011

64021290

64032000

64039996

64061019

64022000

64033000

64042010

64061090

69

Ceramic products

69010090

69049000

69109000

69120050

69139093

69021000

69059000

69119000

69120090

69141000

69022091

69060000

69120010

69131000

69149010

69041000

69101000

69120030

69139010

15

70

Glass and glassware

70021000

70052935

70109051

70132951

70169080

70031990

70052980

70109053

70132959

70181011

70033000

70053000

70109055

70132991

70181019

70042099

70071920

70109057

70132999

70181030

70049010

70071980

70109061

70133110

70181051

70049092

70080081

70109067

70133190

70181059

70049098

70080089

70109071

70133200

70181090

70051025

70101000

70112000

70133910

70189090

70051030

70102000

70131000

70133991

70193100

70051080

70109041

70132111

70133999

70199030

70052130

70109043

70132119

70139190

70200030

70052180

70109045

70132191

70159000

70052925

70109047

70132199

70161000

71

Natural  or  cultured  pearls,  precious  or  semi-precious  stones,  precious
metals, metals clad with precious metal, and articles thereof; imitation
jewellery; coins

71012100

71049000

71081380

71141900

71171910

71012200

71059000

71101980

71151000

71171999

71023100

71069110

71110000

71161000

71179000

71031000

71069220

71131100

71162011

71181010

71039100

71081200

71131900

71162019

71181090

71039900

71081310

71132000

71162090

71189000

72

Iron and steel

72022910

72072090

72119019

72172030

72224010

72022990

72082700

72119090

72172050

72224093

16

72023000

72083790

72122090

72172090

72241000

72024199

72083890

72123090

72173019

72249001

72024910

72083910

72126099

72173039

72249019

72024950

72083990

72139990

72173090

72249091

72025000

72085130

72141000

72179010

72249099

72026000

72085299

72142000

72179090

72251910

72028000

72089010

72143000

72189111

72253000

72029100

72089090

72149110

72189911

72254020

72029200

72091500

72149990

72189991

72254050

72029300

72091690

72155030

72192110

72255000

72029919

72091790

72159090

72192190

72261990

72029930

72091899

72163111

72192210

72269110

72029980

72092500

72163211

72192290

72269190

72031000

72092690

72163291

72192300

72279095

72041000

72092790

72163310

72193100

72282019

72043000

72099090

72163390

72201100

72283020

72044930

72104990

72165010

72202099

72283089

72044991

72105010

72165099

72210010

72284010

72044999

72107090

72166110

72210090

72284090

72061000

72109031

72166190

72221119

72285020

72071116

72111920

72166900

72221129

72286081

72071210

72111990

72171010

72221191

72291000

72071914

72112351

72171039

72221910

72071919

72112950

72171050

72223051

72072079

72112990

72171090

72223091

17

73

Articles of iron or steel

73021031

73051900

73102111

73160000

73231000

73029030

73053100

73102191

73170020

73239100

73029090

73053900

73102199

73170061

73239200

73030010

73061011

73121079

73181100

73239410

73030090

73063021

73121082

73181290

73239490

73041010

73063059

73121084

73181300

73239910

73041030

73063071

73121086

73191000

73239991

73043959

73063090

73121088

73192000

73242100

73043991

73065099

73142090

73209010

73251050

73043993

73066031

73143100

73211110

73251092

73043999

73066090

73143900

73211200

73261100

73044910

73069000

73144110

73218110

73261910

73045111

73072310

73144190

73218190

73262030

73045191

73079311

73152000

73218290

73045931

73079319

73158100

73218300

73045993

73084010

73158210

73219000

73051100

73089010

73158290

73221900

74

Copper and articles thereof

74011000

74032100

74072110

74091100

74152100

74031100

74032200

74072210

74092100

74152900

74031200

74032300

74072290

74111019

74181900

74031300

74050000

74081100

74112190

74191000

74031900

74071000

74081990

74112900

74199100

18

76

Aluminium and articles thereof

76012010

76042910

76071110

76129010

76151990

76012099

76051100

76071910

76129098

76152000

76020011

76051900

76082030

76141000

76020019

76061193

76082091

76149000

76041090

76061210

76101000

76151100

76042100

76061291

76121000

76151910

82

Tools,  implements,  cutlery,  spoons  and  forks,  of  base  metal;  parts
thereof of base metal

82011000

82023900

82075030

82119180

82152010

82012000

82051000

82076030

82119200

82152090

82013000

82053000

82078011

82119400

82159100

82014000

82055100

82079010

82141000

82159910

82015000

82055910

82100000

82142000

82159990

82019000

82074010

82111000

82151020

82023100

82074090

82119130

82151030

83

Miscellaneous articles of base metal

83011000

83030090

83061000

83091000

83013000

83051000

83062100

83099010

83030030

83059000

83062910

84

Nuclear  reactors, boilers, machinery  and  mechanical appliances; parts
thereof

84021200

84194000

84322100

84485900

84614071

84031010

84198191

84322930

84501111

84615011

84031090

84198927

84333090

84501119

84615019

84073210

84201010

84342000

84512110

84623991

84073290

84209110

84378000

84513030

84629110

84073310

84219130

84379000

84514000

84641090

19

84073491

84221100

84383000

84518010

84642020

84081011

84229010

84384000

84521019

84642095

84081019

84231010

84401020

84521090

84649020

84081024

84238110

84401030

84522100

84659110

84081028

84238130

84401040

84522900

84659300

84081039

84238150

84411030

84531000

84659500

84081049

84238190

84411040

84532000

84659910

84081091

84238210

84413000

84543010

84661010

84081099

84238290

84425029

84551000

84662091

84082031

84243005

84431200

84552200

84669120

84082035

84243090

84431910

84553010

84672210

84082051

84248191

84431931

84563011

84672910

84082055

84251190

84431935

84563019

84681000

84089036

84251991

84431939

84571090

84691200

84089099

84261100

84432100

84573090

84692000

84109010

84261900

84439010

84581920

84693000

84128010

84262000

84440010

84581940

84702100

84137040

84263000

84451100

84581980

84702900

84137050

84269110

84451300

84589120

84703000

84137070

84269990

84453090

84589180

84704000

84137080

84271010

84454000

84589900

84721000

84142091

84271090

84461000

84591000

84732190

84146000

84272011

84462100

84592100

84742010

84161010

84272019

84462900

84593100

84743200

84163000

84272090

84463000

84593900

84751000

84181099

84282030

84471210

84594010

84773000

84182151

84283991

84471290

84594090

84778019

20

84182159

84284000

84472092

84595100

84798930

84182191

84285000

84472098

84595900

84798960

84182199

84286000

84481100

84596110

84801000

84182200

84289079

84481900

84596910

84803090

84182900

84295210

84483100

84602911

84805000

84183091

84301000

84483310

84602919

84806010

84184091

84306900

84483390

84603100

84806090

84185011

84311000

84484200

84603900

84807110

84185019

84313910

84484900

84609090

84818011

84185099

84321010

84485110

84613090

84859010

84191100

84321090

84485190

84614011

85

Electrical machinery and equipment and parts thereof; sound recorders
recorders  and
image  and  sound 
television 
and 
reproducers, and parts and accessories of such articles

reproducers, 

85022092

85161011

85181020

85271290

85281291

85043400

85161019

85192100

85271391

85281294

85053000

85162100

85193100

85271900

85281295

85061091

85162910

85193900

85272170

85281298

85061095

85162950

85194000

85272198

85299051

85063090

85163200

85199200

85273111

85366110

85064090

85164010

85199339

85273119

85393210

85066090

85164090

85199389

85273198

85393250

85068011

85165000

85199912

85273290

85434000

85068015

85166010

85201000

85273920

85438915

85073093

85166051

85202000

85273980

85445920

85074090

85166059

85203211

85279092

85451910

85079091

85166070

85203219

85281220

85462091

85091090

85166080

85203230

85281254

85481021

21

85094000

85166090

85203299

85281256

85481029

85099090

85167100

85203311

85281258

85481099

85101000

85167200

85203319

85281262

85121000

85167910

85203390

85281266

85142080

85167920

85211030

85281272

85152910

85167980

85229093

85281276

85153918

85171910

85232010

85281281

85158091

85172200

85254019

85281290

95

Toys, games and sports requisites; parts and accessories thereof

95010010

95033090

95039032

95051090

95066210

95010090

95034910

95039034

95059000

95066290

95021010

95034930

95039035

95061110

95066910

95021090

95034990

95039037

95061129

95067010

95029100

95035000

95039051

95061200

95067030

95029900

95036010

95039055

95061900

95069910

95031010

95036090

95042010

95064010

95072010

95031090

95037000

95042090

95064090

95073000

95032090

95038010

95049010

95065100

95033010

95038090

95049090

95065900

95033030

95039010

95051010

95066100

22

1.

2.

3.
4.

5.

5.0

5.1

6.0

6.1

FINANCIAL STATEMENT

DATE October 2003
APPROPRIATIONS:

BUDGET HEADING:
1.2.0
TITLE:
COUNCIL REGULATION establishing additional customs duties on imports of certain products
originating in the United States of America
LEGAL BASIS: Article 133
AIMS:
Suspend tariff bindings on certain US products as a result of the US failure to implement DSB
recommendations with regards to the FSC/ETI dipsute
FINANCIAL IMPLICATIONS

12 MONTH
PERIOD

(EUR million)
Nil

CURRENT
FINANCIAL
YEAR
2003
(EUR million)
Nil

FOLLOWING
FINANCIAL
YEAR
2004
(EUR million)
Nil

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
NATIONAL
-

OWN RESOURCES OF THE EC

290 million €

Nil

290 million €

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:

2004
Nil

2005
Nil

290 million € 614 million €

Estimated maximum revenue increase through additional duties on certain US products multiplied by
trade value
CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?

Not
Applicable

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS:
The suspension of tariff bindings shall be temporary and shall only be applied until such time as the
WTO inconsistent measure has been removed.

Not
Applicable
NO
NO

23