Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
Date: 2006-03-31
Institutions: European Commission
Subjects: European Community, Taiwan, World Trade Organisation, market access, tariff preference, trade agreement, two-wheeled vehicle

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 31.3.2006 
COM(2006) 147 final 

2006/0051 (ACC) 
2006/0052 (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 the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu 

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, amending Annex I to 
Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the 
Common Customs Tariff 

(presented by the Commission) 

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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  to  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 the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. 

This proposal asks the Council to approve this agreement.  

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2006/0051 (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 the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu 

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  the  Separate  Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu. 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 
the  Separate  Customs  Territory  of  Taiwan,  Penghu,  Kinmen  and  Matsu  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. 

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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 

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AGREEMENT  

In the form of an exchange of letters between the European Community and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu  

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 
Community.  

Letter from the European Communities 

Sir, 

Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and  the 
Separate  Customs  Territory  of  Taiwan,  Penghu,  Kinmen  and  Matsu  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  the  Separate  Customs  Territory  of 
Taiwan, Penghu, Kinmen and Matsu in order to conclude the negotiations initiated following 
the EC’s notification of 19 January 2004 to the WTO pursuant to Article XXIV:6. of GATT 
1994  

The  EC  agrees  to  incorporate  in  its  Schedule  for  the  customs  territory  of  EC  25,  the 
concessions that were included in its previous schedule of EC 15.  

The EC agrees that it will incorporate in its schedule for the EC 25 the following concession:  

87120030  (bicycles  not  motorized):  A  lowering  of  the  current  bound  EC  duty  of  15%  to 
14.0%.  

This  Agreement  shall  enter  into  force  upon  the  exchange  of  letters  of  agreement,  following 
consideration  by  the  parties  in  accordance  with  their  own  procedures.  The  EC  shall  use  its 
best endeavours to put in place the appropriate implementing measures before 1 March 2006 
and under no circumstances later than 1 July 2006. 

On behalf of the European Community 

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AGREEMENT  

In the form of an exchange of letters between the European Community and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu 

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 
Communities.  

Letter from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 

Sir, 

Reference is made to your letter stating: 

“Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and  the 
Separate  Customs  Territory  of  Taiwan,  Penghu,  Kinmen  and  Matsu  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  the  Separate  Customs  Territory  of 
Taiwan, Penghu, Kinmen and Matsu in order to conclude the negotiations initiated following 
the EC’s notification of 19 January 2004 to the WTO pursuant to Article XXIV:6. of GATT 
1994  

The  EC  agrees  to  incorporate  in  its  Schedule  for  the  customs  territory  of  EC  25,  the 
concessions that were included in its previous schedule of EC 15.  

The EC agrees that it will incorporate in its schedule for the EC 25 the following concession:  

87120030  (bicycles  not  motorized):  A  lowering  of  the  current  bound  EC  duty  of  15%  to 
14.0%.  

This  Agreement  shall  enter  into  force  upon  the  exchange  of  letters  of  agreement,  following 
consideration  by  the  parties  in  accordance  with  their  own  procedures.  The  EC  shall  use  its 
best endeavours to put in place the appropriate implementing measures before 1 March 2006 
and under no circumstances later than 1 July 2006.” 

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

On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement  with  the  Separate  Customs  Territory  of  Taiwan,  Penghu,  Kinmen  and 
Matsu 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. 

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2006/0052 (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, amending 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 the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, 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: 

Annex  I  to  Regulation  (EEC)  No  2658/87  shall  be  amended  with  the  tariffs  shown  in  the 
Annex to this Regulation. 

Article 1 

1 

OJ C [..],[..], p. [..]. 

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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 

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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 

Description 

8712 0030 

Bicycles not motorized 

Duty rate 

Implemented 
through Council 
Regulation XXX 

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