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 and supplementing Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff.
Date: 2006-11-23
Institutions: European Commission
Subjects: Brazil, CCT duties, Combined Nomenclature, agreement (EU), tariff nomenclature, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.11.2006 
COM(2006) 715 final 

2006/0233 (ACC) 
2006/0234 (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 Brazil. 

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 and 
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) 

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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  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 Brazil. 

This proposal asks the Council to approve this agreement.  

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2006/0233 (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 Brazil. 

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  Brazil.  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 
Brazil 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 Brazil  

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 

Brussels,  

Sir, 

Following the initiation of negotiations between the European Communities (EC) and Brazil 
under Article XXIV:6 and Article XXVIII of GATT 1994 for 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  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and  Brazil  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 concessions contained 
in the Annex to this Agreement. 

This  Agreement  shall  enter  into  force  upon  the  date  on  which  the  EC  and  Brazil  have 
exchanged  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 November and no later than 1 January 2007. 

On behalf of the European Community  

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AGREEMENT  

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

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 Brazil  

[place],  

Sir, 

Reference is made to your letter stating: 

“Following the initiation of negotiations between the European Communities (EC) and Brazil 
under Article XXIV:6 and Article XXVIII of GATT 1994 for 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  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and  Brazil  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 concessions contained 
in the Annex to this agreement. 

This  Agreement  shall  enter  into  force  upon  the  date  on  which  the  EC  and  Brazil  have 
exchanged  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 November and no later than 1 January 2007. 

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

On behalf of Brazil 

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Annex 

-  a  country  allocated  (Brazil)  tariff  rate  quota  10124  tonnes  of  raw  cane  sugar  for  refining 
(tariff item number 1701 1110), at in quota rate of 98€/t, 

-  a  country  allocated  (Brazil)  tariff  rate  quota  2332  tonnes  of  ‘cuts  of  fowls  of  the  species 
Gallus domesticus’ (tariff item numbers 0207 1410, 0207 1450, 0207 1470), at in quota rate 
of 0%, 

- add 49 tonnes (erga omnes) in the EC tariff rate quota for ‘chicken carcass, fresh, chilled or 
frozen’, (tariff item numbers 0207 1110, 0207 1130, 0207 1190, 0207 1210, 0207 1290), at 
in-quota rate of 131-162 €/t, 

- add 4070 tonnes (erga omnes) in the EC tariff rate quota for ‘chicken cuts, fresh, chilled or 
frozen’ (tariff item numbers 0207 1310, 0207 1320, 0207 1330, 0207 1340, 0207 1350, 0207 
1360, 0207 1370, 0207 1420, 0207 1430, 0207 1440, 0207 1460), at in-quota rate of 93-512 
€/t, 

- add 1605 tonnes (erga omnes) in the EC tariff rate quota for ‘cuts of fowls’ (tariff item 
number 0207 14 10), at in quota rate of 795 €/t, 

- add 201 tonnes (erga omnes) in the EC tariff rate quota for ‘turkey meat, fresh, chilled or 
frozen (tariff item numbers 0207 2410, 0207 2490, 0207 2510, 0207 2590, 0207 2610, 0207 
2620, 0207 2630, 0207 2640, 0207 2650, 0207 2660, 0207 2670, 0207 2680, 0207 2730, 0207 
2740, 0207 2750, 0207 2760, 0207 2770), at in-quota rate of 93-425€/t, 

- add 2485 tonnes (erga omnes) in the EC tariff rate quota for ‘turkey cuts, frozen’ (tariff item 
numbers 0207 2710, 0207 2720, 0207 2780), at in-quota rate of 0%, 

- open a tariff rate quota  242  074  tonnes (erga omnes)  for  maize  (tariff  item numbers 1005 
9000, 1005 1090), at in quota rate of 0%, 

-  open  a  tariff  rate  quota  2838  tonnes  (erga  omnes)  for  preserved  pineapples,  citrus  fruit, 
pears, apricots, cherries, peaches and strawberries (tariff item numbers 2008 2011, 2008 2019, 
2008 2031, 2008 2039, 2008 2071, 2008 3011, 2008 3019, 2008 3031, 2008 3039, 2008 3079, 
2008 4011, 2008 4019, 2008 4021, 2008 4029, 2008 4031, 2008 4039, 2008 5011, 2008 5019, 
2008 5031, 2008 5039, 2008 5051, 2008 5059, 2008 5071, 2008 6011, 2008 6019, 2008 6031, 
2008 6039, 2008 6060, 2008 7011, 2008 7019, 2008 7031, 2008 7039, 2008 7051, 2008 7059, 
2008 8011, 2008 8019, 2008 8031, 2008 8039, 2008 8070), at in quota rate of 20%, 

- open a tariff rate quota 7044 tonnes (erga omnes) for fruit juices (tariff item numbers 2009 
1111, 2009 1119, 2009 1911, 2009 1919, 2009 2911, 2009 2919, 2009 3911, 2009 3919, 2009 
4911, 2009 4919, 2009 7911, 2009 7919, 2009 8011, 2009 8019, 2009 8032, 2009 8033, 2009 
8035, 2009 8036, 2009 8038, 2009 9011, 2009 9019, 2009 9021, 2009 9029), at in quota rate 
of 20%, 

- eliminate the ad valorem duty of 9% on protein concentrates (tariff item number 2106 1080), 

- open a tariff rate quota 107 tonnes (erga omnes) for chocolate (tariff item number 1806), at 
in quota rate of 43%, 

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- reduce the EC bound duty of 11.2 MIN 22.0€/100 kg/net MAX 56.0€/100 kg/net to 10 MIN 
22.0€/100 kg/net MAX 56.0€/100 kg/net for tobacco (tariff item number 2401 1090), 

-  adjust  the  description  of  the  EC  tariff  rate  quota  for  high  quality  beef  (5000  tonnes)  to: 
'boneless  high  quality  meat  of  bovine  animals  fresh,  chilled  or  frozen',  indicating  supplying 
country Brazil. 

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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

DATE: 11-07-2006 
APPROPRIATIONS: 
4.960 M € 

BUDGET HEADING: 
Chapter 10 – Agricultural duties 
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 Brazil 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 X of the GATT 1994 in relation to the enlargement of the Customs Union as of 1 
May 2004 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
[n] 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
[n+1] 
(EUR million) 

(EUR million) 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

- 4.960 M€ (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] 

[n+3] 

[n+4] 

[n+5] 

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? 
OBSERVATIONS: 

N/A 

N/A 
NO 
NO 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement with Brazil 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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2006/0234 (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 and 
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 2658/872 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  Brazil,  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: 

In Regulation (EEC) No 2658/87 Annex I shall be amended with the duties and supplemented 
with the volumes shown in the annex to this Regulation. 

Article 1 

Annex  7  of  Section  III  of  Part  Three  (WTO  tariff  quotas  to  be  opened  by  the  Competent 
Community authorities) shall be amended as follows:  

Article 2 

1 
2 

OJ C , , p. . 
OJ  L  256,  7.9.1987,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  […]/2006  (OJ  L  […], 
[…], p. […] 

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a)  adjust  the  definition  of  the  EC  tariff  rate  quota  of  5000  tonnes  'Boneless  "high  quality" 
meat: "Beef cuts obtained from steers (novilhos) or heifers (novilhas) aged between 20 and 24 
months,  which  have  been  exclusively  pasture  grazed,  have  lost  their  central  temporary 
incisors but do not have more than four permanent incisor teeth, which are of a good maturity 
and  which  meet  the  following  beef  carcase  classification  requirements:  meat  from  B  or  R 
class carcases with rounded to straight conformation and a fat-cover class of 2 or 3; the cuts 
bearing  the  letters  "sc"  (special  cuts)  or  an  "sc"  (special  cuts)  label  as  a  sign  of  their  high 
quality  will  be  boxed  in  cartons  bearing  the  words  "high  quality  beef"'  to  'Boneless  high 
quality meat of bovine animals fresh, chilled or frozen'. 

b) Insert under "other terms and conditions" the text: "Supplying country Brazil" 

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

Article 3 

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 

2106 1080 

Protein concentrates 

2401 1090 

Tobacco 

Duty rate 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Reduce the EC 
bound duty of 11.2 
MIN 22.0 € / 100 
kg / net MAX 56.0 
€ / 100 kg / net to 
10 MIN 22.0 € / 
100 kg / net MAX 
56.0 € / kg / net 

Part Three 
Tariff Annexes 

CN code 

Description 

Duty rate 

1701 1110 

Raw cane sugar for refining 

Frozen cuts of fowls of the species Gallus domesticus 

0207 1410 
0207 1450 
0207 1470 

0207 1110 

Chicken carcass, fresh, chilled or frozen 

A country allocated 
(Brazil) tariff rate 
quota 10124 tonnes 
at in-quota rate of 
98 € / tonne 

A country allocated 
(Brazil) tariff rate 
quota 2332 tonnes 
at in-quota rate of 
0% 

Implemented 

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Chicken cuts, fresh, chilled or frozen 

0207 1130 
0207 1190 
0207 1210 
0207 1290  

0207 1310 
0207 1320 
0207 1330 
0207 1340 
0207 1350 
0207 1360 
0207 1370 
0207 1420 
0207 1430 
0207 1440 
0207 1460 

0207 1410 

Cuts of fowls 

Turkey meat, fresh, chilled or frozen 

Turkey cuts, frozen 

0207 2410 
0207 2490 
0207 2510 
0207 2590 
0207 2610 
0207 2620 
0207 2630 
0207 2640 
0207 2650 
0207 2660 
0207 2670 
0207 2680 
0207 2730 
0207 2740 
0207 2750 
0207 2760 
0207 2770 

0207 2710 
0207 2720 
0207 2780 

1005 9000 
1005 1090 

Maize 

through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

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Preserved  pineapples,  citrus  fruit,  pears,  apricots,  cherries, 
peaches and strawberries 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Fruit juices 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

2008 2011 
2008 2019 
2008 2031 
2008 2039 
2008 2071 
2008 3011 
2008 3019 
2008 3031 
2008 3039 
2008 3079 
2008 4011 
2008 4019 
2008 4021 
2008 4029 
2008 4031 
2008 4039 
2008 5011 
2008 5019 
2008 5031 
2008 5039 
2008 5051 
2008 5059 
2008 5071 
2008 6011 
2008 6019 
2008 6031 
2008 6039 
2008 6060 
2008 7011 
2008 7019 
2008 7031 
2008 7039 
2008 7051 
2008 7059 
2008 8011 
2008 8019 
2008 8031 
2008 8039 
2008 8070 

2009 1111 
2009 1119 
2009 1911 
2009 1919 
2009 2911 
2009 2919 
2009 3911 
2009 3919 
2009 4911 
2009 4919 

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2009 7911 
2009 7919 
2009 8011 
2009 8019 
2009 8034 
2009 8035 
2009 8036 
2009 8038 
2009 9011 
2009 9019 
2009 9021 
2009 9029 

1806 

Chocolate 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

The exact tariff description of the EC-15 shall apply to all tariff lines and quotas above. 

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