Council Regulation (EC) No 728/2006 of  15 May 2006  suspending and conditionally repealing Regulation (EC) No 2193/2003 establishing additional customs duties on imports of certain products originating in the United States of America
Date: 2006-05-15
Institutions: Council of the European Union
Subjects: CCT duties, United States, common commercial policy, suspension of customs duties, trade relations

15.5.2006

EN

Official Journal of the European Union

L 127/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 728/2006

of 15 May 2006

suspending and conditionally repealing Regulation (EC) No 2193/2003 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
Community, and in particular Article 133 thereof,

establishing the European

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

On 7 May 2003, the Community was authorised by the
Dispute Settlement Body (DSB) of the World Trade Orga-
nization (WTO) to impose countermeasures up to a level
of USD 4 043 million in the form of additional 100 % ad
valorem duties on certain products originating in the
United
8
December 2003 the Community adopted Council Regu-
lation (EC) No 2193/2003 establishing
additional
customs duties on imports of certain products origi-
nating in the United States of America (1).

of America. Consequently,

States

on

The Community, pending the outcome of further WTO
litigation regarding the WTO compatibility of the tran-
sition and grandfathering provisions of the FSC Repeal
and Extraterritorial Income Act of 2000 (FSC-ETI Act)
and of the American Jobs Creation Act of 2004 (JOBS
Act), amended and suspended the application of Regu-
lation (EC) No 2193/2003 by the adoption of Regulation
(EC) No 171/2005.

Regulation (EC) No 171/2005 stipulates that reintro-
duction of additional duties would only take effect
again on 1 January 2006 or 60 days after the DSB
confirms, whichever date is later, the incompatibility of
certain aspects of the abovementioned Act with WTO
law.

(1) OJ L 328, 17.12.2003, p. 3. Regulation as amended by Regulation

(EC) No 171/2005 (OJ L 28, 1.2.2005, p. 31).

(4)

(5)

(6)

On 14 March 2006 the DSB confirmed the WTO incom-
patibility of
the challenged US measures following a
panel and Appellate Body ruling on the matter. The
Commission on 3 May 2006 published a notice
informing that an additional duty of 14 % ad valorem
would become applicable on 16 May 2006.

The US Congress has now adopted legislation repealing
the grandfathering provisions of the FSC-ETI Act and of
the JOBS Act for the next taxable years and therefore
imposed under Council Regulation
countermeasures
(EC) No 2193/2003, as amended by Council Regulation
(EC) No 171/2005, have achieved their objective to a
sufficient extent and reintroduction of countermeasures
would be unnecessarily disruptive.

into law,

Since the President of the United States has to sign the
the reintroduction of sanctions should
Bill
such signature has
continue to be suspended until
taken place,
countermeasures
and
imposed under Regulation (EC) No 2193/2003, as
amended by Council Regulation (EC) No 171/2005,
should only become effective once this signature has
taken place,

repeal of

the

HAS ADOPTED THIS REGULATION:

Article 1

The suspension of

1.
the application of additional duties
provided for in Articles 1 and 2 of Regulation (EC) 171/2005
is hereby extended until 29 May 2006.

2.
In the event that the President of the United States signs
the Bill adopted by the Congress of the United States repealing
the grandfathering provisions of the FSC-ETI Act and of the
JOBS Act on or before 26 May 2006 Regulation (EC) No
2193/2003 shall be repealed with effect from 29 May 2006.

L 127/2

EN

Official Journal of the European Union

15.5.2006

After the abovementioned signature has taken place, the
3.
Commission shall promptly publish a notice in the Official
Journal of the European Union announcing that such signature
has
and that Council Regulation (EC) No
2193/2003 is repealed with effect from 29 May 2006.

taken place

signature has taken place and that countermeasures as provided
for in Regulation (EC) No 2193/2003 become applicable again
with effect from 30 May 2006.

4.
In the event that no such signature takes place by 26 May
2006, the Commission shall promptly publish a notice in the
Official Journal of the European Union announcing that no such

Article 2

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

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

Done at Brussels, 15 May 2006.

For the Council
The President

U. PLASSNIK