Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and Malaysia
Date: 2006-03-31
Institutions: European Commission
Subjects: European Community, Malaysia, World Trade Organisation, market access, recording equipment, tariff reduction, trade agreement, vegetable oil

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 31.3.2006 
COM(2006) 146 final 

2006/0049 (ACC) 
2006/0050 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between the 
European Community and Malaysia 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of the Agreement concluded by the EC following 
negotiations in the framework of Article XXIV.6 of GATT 1994, supplementing Annex I 
to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the 
Common Customs Tariff 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

5. 

6. 

In  the  context  of  enlarging  the  customs  union  the  provisions  of  GATT  Article 
XXIV.6  oblige  the  EC  to  enter  into  negotiations  with  third  countries  having 
negotiating rights in any of the acceding Members in order to agree on compensatory 
adjustment if the adoption of the EC’s external tariff regime results in an increase in 
tariff beyond the level for which the acceding country has bound itself at the WTO, 
whilst  taking  ‘due  account  of  reductions  of  duties  on  the  same  tariff  line  made  by 
other constituents of the customs union upon its formation’. 

On  22  March  2004,  the  Council  authorised  the  Commission  to  open  negotiations 
under Article XXIV.6 of the GATT 1994 (COM proposal 6792/04 WTO 34).  

Negotiations  have  been  conducted  by  the  Commission  in  consultation  with  the 
Committee established by Article 133 of the Treaty and within the framework of the 
negotiating directives issued by the Council. 

The Commission has negotiated with the Members of the WTO holding negotiations 
rights  with  respect  to  the  withdrawal  of  specific  concessions  in  relation  to  the 
withdrawal  of  the  schedules  of  the  Czech  Republic,  the  Republic  of  Estonia,  the 
Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic 
of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia 
and the Slovak Republic, in the course of the accession to the European Community. 

The negotiations have resulted in an Agreement in the form of an exchange of letters 
with Malaysia. 

This proposal asks the Council to approve this agreement.  

EN 

2 

   EN 

 
2006/0049 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between the 
European Community and Malaysia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133 in conjunction with the first sentence of the first subparagraph of Article 300(2) 
thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

On 22 March 2004 the Council authorised the Commission to open negotiations with 
certain other Members of the WTO under Article XXIV.6 of the GATT 1994, in the 
course of the accessions to the European Community of Czech Republic, the Republic 
of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, 
the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic 
of Slovenia and the Slovak Republic.  

Negotiations  have  been  conducted  by  the  Commission  in  consultation  with  the 
Committee established by Article 133 of the Treaty and within the framework of the 
negotiating directives issued by the Council. 

The  Commission  has  finalised  negotiations  for  an  Agreement  in  the  form  of  an 
Exchange of Letters between the European Community and Malaysia. This agreement 
should be approved. 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement in the form of an Exchange of Letters between the European Community and 
Malaysia with respect to the withdrawal of specific concessions in relation to the withdrawal 
of the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the 
Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of  Hungary,  the  Republic  of 
Malta,  the  Republic  of  Poland,  the  Republic  of  Slovenia  and  the  Slovak  Republic  in  the 
course  of  accession  to  the  European  Community;  are  hereby  approved  on  behalf  of  the 
Community. 

EN 

3 

   EN 

 
The text of the Agreement is annexed to this Decision. 

Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement in the form of an Exchange of Letters referred to in Article 1 in order to 
bind the Community.  

Done at Brussels, 

For the Council 
The President 

EN 

4 

   EN 

 
 
 
AGREEMENT  

In the form of an exchange of letters between the European Community and Malaysia  

relating to the modification of concessions in the schedules of the Czech Republic, the 
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of 
Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the 
Republic of Slovenia and the Slovak Republic in the course of accession to the European 
Union. 

Letter from the European Communities 

Geneva,  

Sir, 

Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and 
Malaysia under  Article XXIV:6 and Article XXVIII  of  GATT  1994  for  the  modification  of 
concessions  in  the  schedules  of  Czech  Republic,  the  Republic  of  Estonia,  the  Republic  of 
Cyprus,  the  Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of  Hungary,  the 
Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic 
in  the  course  of  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and 
Malaysia with a view to close the negotiations opened following the EC’s notification of 19 
January 2004 pursuant to Article XXIV:6 (GATT):  

•  15119019  (Solid  palm  oil  fractions,  whether  or  not  refined,  but  not  chemically 

modified, in packing of >1 kg.): A lower applied rate of 10.0%. 

•  85254099 (Still-image video cameras): A lower applied rate of 12.5%. 

The lower applied rates indicated above are to be applied for three years. 

The exact tariff descriptions of the EC-15 shall apply to all tariff lines above. 

The  EC  shall  incorporate  in  its  schedule  CLX,  for  the  customs  territory  of  EC  25,  the 
concessions that were included in its previous schedule.  

This agreement shall enter into force on the date of signature, following the approval by the 
parties in accordance with their own procedures.  

On behalf of the European Community 

EN 

5 

   EN 

 
AGREEMENT  

In the form of an exchange of letters between the European Community and Malaysia  

relating to the modification of concessions in the schedules of the Czech Republic, the 
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of 
Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the 
Republic of Slovenia and the Slovak Republic in the course of accession to the European 
Union.  

Letter from Malaysia  

Geneva,  

Sir, 

Reference is made to your letter saying: 

“Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and 
Malaysia under  Article XXIV:6 and Article XXVIII  of  GATT  1994  for  the  modification  of 
concessions  in  the  schedules  of  Czech  Republic,  the  Republic  of  Estonia,  the  Republic  of 
Cyprus,  the  Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of  Hungary,  the 
Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic 
in  the  course  of  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and 
Malaysia with a view to close the negotiations opened following the EC’s notification of 19 
January 2004 pursuant to Article XXIV:6 (GATT):  

•  15119019  (Solid  palm  oil  fractions,  whether  or  not  refined,  but  not  chemically 

modified, in packing of >1 kg.): A lower applied rate of 10.0%. 

•  85254099 (Still-image video cameras): A lower applied rate of 12.5%. 

The lower applied rates indicated above are to be applied for three years. 

The exact tariff descriptions of the EC-15 shall apply to all tariff lines above. 

The  EC  shall  incorporate  in  its  schedule  CLX,  for  the  customs  territory  of  EC  25,  the 
concessions that were included in its previous schedule.  

This agreement shall enter into force on the date of signature, following the approval by the 
parties in accordance with their own procedures.” 

I hereby have the honour to express my government’s agreement  

On behalf of Malaysia 

EN 

6 

   EN 

 
1. 

2. 

3. 

4. 

FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 10 – Agricultural duties 

DATE: 31-01-2006 

APPROPRIATIONS: 

1.108 M€ 

TITLE: 
Proposal for a Council Decision on the conclusion of an Agreement in the form of an exchange of 
letters between the European Community and Malaysia relating to compensatory adjustment as 
provided for by Article XXIV:6 of the GATT 1994.  

LEGAL BASIS: 
Article 133 of the Treaty  

AIMS: 
To comply with Article XXIV:6 of the GATT 1994 in relation to the enlargement of the Customs 
Union as of 1 May 2004.  

5. 

FINANCIAL IMPLICATIONS: 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE  
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

12 MONTH 
PERIOD 

(Mio EUR) 
- 

CURRENT 
FINANCIAL 
YEAR 
(Mio EUR) 
- 

FOLLOWING 
FINANCIAL 
YEAR 
(Mio EUR) 
- 

5.1  REVENUES 

- 

- 1.108 (1) 

(1) 

OWN RESOURCES OF THE EC 

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

[n+2] 
- 

(1) 

[n+3] 
- 

(1) 

[n+4] 
- 

(1) 

[n+5] 
- 

(1) 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN 

THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  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? 

N/A  

N/A  

NO 

NO 

OBSERVATIONS: 

EN 

7 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement with Malaysia following negotiations in the framework of Article XXIV:6 
of the GATT 1994.  

The present proposal for a Council Regulation implements the Agreement entered into 
by the Community. 

EN 

8 

   EN 

 
2006/0050 (ACC) 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of the Agreement concluded by the EC following 
negotiations in the framework of Article XXIV.6 of GATT 1994, supplementing Annex I 
to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the 
Common Customs Tariff 

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) 

Council  Regulation  (EEC)  No  2658/87(1)  established  a  goods  nomenclature, 
hereinafter referred to as the "Combined Nomenclature", and set out the conventional 
duty rates of the Common Customs Tariff.  

By its decision XX/XXX/EC concerning the conclusion of Agreements in the form of 
an Exchange of Letters between the European Community and Malaysia, the Council 
approved, on behalf of the Community, the before mentioned Agreement with a view 
to closing negotiations initiated pursuant to Article XXIV:6 of GATT 1994.  

HAS ADOPTED THIS REGULATION: 

Article 1 

Annex  I  to  Regulation  (EEC)  No  2658/87  shall  be  supplemented  as  shown  in  the  Annex  to 
this Regulation. 

1 

OJ C , , p. . 

EN 

9 

   EN 

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

Article 2  

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

Done at Brussels,  

For the Council 
The President 

EN 

10 

   EN 

 
 
 
ANNEX 

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 concessions 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 concessions are to be determined by application of the CN code and 
corresponding description taken together. 

Part Two  
Schedule of Customs duties. 

CN code 

1511 9019 

Description 

Duty rate 

Solid  palm  oil  fractions,  whether  or  not  refined,  but  not 
chemically modified, in packing of >1kg 

An applied rate of 
10.0% (1) 

8525 4099 

Other  video  camera  recorders  other  than  those  only  able  to 
record sound and images taken by the televison “camera” 

Implemented 
through Council 
Regulation XXX 

(1)  The  lower  applied  rate  indicated  above  is  to  be  applied  for  three  years  or  until  the 
implementation of the results of the Doha Development Agenda Round reaches the tariff level 
above, whichever comes first. 

EN 

11 

   EN