Proposal for a Council Decision on the Community position concerning the amendment of Protocol 4 to the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part
Date: 2007-03-30
Institutions: European Commission
Subjects: Denmark, Faroes, animal feedingstuffs, common tariff policy, liberalisation of trade, tariff preference, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.3.2007 
COM(2007) 157 final 

2007/0059 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the Community position concerning the amendment of Protocol 4 to the Agreement 
between the European Community, of the one part, and the Government of Denmark 
and the Home Government of the Faroe Islands, of the other part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

With a view to the further liberalisation of trade flows and the strengthening of the economic 
ties  between  the  European  Community  and  the  Faroe  Islands,  it  is  proposed  to  double  the 
existing Community tariff concession for Faroese fish feed. 

The  Council  is  invited  to  decide  on  the  common  position  to  be  adopted  within  the  Joint 
Committee  of  the  Agreement  between  the  European  Community,  of  the  one  part,  and  the 
Government of Denmark and the Home Government of the Faroe Islands, of the other part, 
about the modification of Protocol 4 to this Agreement. 

The  decision  of  the  Joint  Committee  shall  be  published  in  the  Official  Journal  of  the 
European Union.  

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2007/0059 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the Community position concerning the amendment of Protocol 4 to the Agreement 
between the European Community, of the one part, and the Government of Denmark 
and the Home Government of the Faroe Islands, of the other part 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Agreement  between  the  European  Community,  of  the  one  part,  and  the 
Government of Denmark and the Home Government of the Faroe Islands, of the other 
part1 (hereinafter called the "Agreement") entered into force on 1 January 1997. 

Article  31(1)  of  the  Agreement  sets  up  a  Joint  Committee  to  be  responsible  for  the 
administration of the Agreement and ensure its proper functioning.  

Article  34  of  the  Agreement  provides  that  the  Joint  Committee  may  modify  the 
Protocols to the Agreement.  

The  Faroe  authorities  have  put  forward  a  request  for  modifying  Protocol 4  and 
increasing to 50 000 tonnes the tariff concessions from the Community for the fish feed 
products. Parties have consulted each other within the Joint Committee, in accordance 
with the provisions of Article 31(2) of the Agreement.  

The rules of procedures adopted by the Joint Committee according to Article 31(3) of 
the  Agreement  foresee  that  the  Decisions  of  the  Joint  Committee  are  signed  by  the 
Chairman  and  that  the  office  of  Chairman  is  held  alternatively,  from  1  January  to 
31 December,  by  a  representative  of 
the  Denmark-Faroe  Islands  and  by  a 
representative of the European Community, 

1 

OJ L 53, 22.2.1997, p. 2. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

The position of the European community in the Joint Committee established by Article 31 of 
the  Agreement  between  the  European  Community,  of  the  one  part,  and  the  Government  of 
Denmark and the Home Government of the Faroe Islands, of the other part, is attached to this 
decision. This position shall be expressed by the Commission. 

Article 2 

The decision of the Joint Committee shall be published in the Official Journal of the European 
Union after adoption. 

Done at Brussels,  

For the Council 
The President 

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DRAFT DECISION 

of the EC/Denmark-Faroe Islands Joint Committee amending Protocol 4 to the 
Agreement between the European Community, of the one part, and the Government of 
Denmark and the Home Government of the Faroe Islands, of the other part 

The Joint Committee, 

Having regard to the Agreement between the European Community, of the one part, and the 
Government of Denmark and the Home Government of the Faroe Islands, of the other part2, 
hereinafter referred to as "the Agreement", and in particular Article 34(1) thereof, 

Whereas: 

(1) 

(2) 

(3) 

Under  Article  1  of  Protocol  4  to  the  Agreement,  the  Community  has  granted  tariff 
concessions for Faroese fish feed, in respect of an annual tariff quota of 5 000 tonnes. 

Under decision No 2/98 of the EC/Denmark-Faroe Islands Joint Committee3, this tariff 
quota has been increased to 10 000 tonnes from 1 January 2000 onwards. 

The Faroe authorities have put forward a request for increasing the tariff concessions 
from the Community for these products. 

(4) 

A doubling of the existing annual tariff quota should be allowed. 

(5) 

(6) 

Fish feed, which benefits from the preferential import regime, may not contain added 
gluten. 

This  quota  is  subject  to  a  review  clause.  The  Joint  Committee,  in  accordance  with 
Article 31(2) of the Agreement, will regularly exchange information to that purpose. 

(7) 

To that end Article 1 of Protocol 4 to the Agreement should be amended, 

2 
3 

OJ L 53, 22.2.1997, p. 2. 
OJ L 263, 26.9.1998, p. 37. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

In  Article  1  of  Protocol  4  to  the  Agreement,  the  text  in  the  table  relating  to  CN  codes 
ex 2309 90 10, ex 2309 90 31 and ex 2309 90 41 shall be replaced by the following text: 

CN code 

Description 

Rate of duty 

Tariff quota 
(in tonnes) 

ex 2309 90 104 
ex 2309 90 315 
ex 2309 90 416 

Fish feed 

0 

20 000 

1. 

The following text shall be added to Article 1 of Protocol 4: 

Article 2 

"As  regards  the  tariff  quota  opened  for  fish  feed  under  CN  codes  ex 2309 90 10, 
ex 2309 90 31 and ex 2309 90 41, the following shall apply: 

"Faroe  authorities  shall  certify  that  fish  feed  exported  to  the  EU  under  this 
preferential quota does not contain added gluten, in addition to the gluten naturally 
present  in  the  cereals  that  may  enter  in  the  compounding  of  the  fish  feed.  The 
European  Community  may  proceed  to  controls  in  the  Faroe  Islands  of  the 
compounding of the fish feed, especially its gluten content. " 

2. 

The conduct of controls of the compounding of fish feed is attached to this decision. 
If the inspection brings evidence that the conditions required for granting this trade 
preference are not met, the Commission may suspend this preference for as long as 
no proper conditions are in place. 

Article 3 

The  Joint  Committee  shall  monitor  the  utilisation  of  this  tariff  quota.  Depending  on  the 
utilisation  of  the  quota  and  the  evolution  of  market  conditions,  this  Joint  Committee  shall 
review this tariff quota in four years time. 

4 

5 

6 

Fish feed that benefit from the preferential import regime may not contain added gluten, in addition to 
the gluten naturally present in the cereals that may enter in the compounding of this feed. 
Fish feed that benefit from the preferential import regime may not contain added gluten, in addition to 
the gluten naturally present in the cereals that may enter in the compounding of this feed. 
Fish feed that benefit from the preferential import regime may not contain added gluten, in addition to 
the gluten naturally present in the cereals that may enter in the compounding of this feed. 

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The volume increase of the tariff quota for the calendar year 2007 shall be calculated pro rata 
temporis as of the entry into force of this Decision. 

Article 4 

Article 5 

This  decision  shall  enter  into  force  on  the  first  day  of  the  second  month  following  its 
adoption. 

Done at Brussels, 

For the Joint Committee 
The President 

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ANNEX 

Conduct of the controls of the compounding of fish feed 

Article 1 

Faroe  authorities  shall  communicate  to  the  Commission  the  control  provisions  they  have 
adopted as regards Articles 1 and 2 of this decision. Faroe authorities shall make available to 
the  Commission  all  information  necessary  for  the  control  of  the  gluten  content  of  fish  feed 
exported  to  the  EU  and  shall  take  all  appropriate  measures  to  facilitate  the  checks  the 
Commission deems appropriate in this connection.  

Article 2 

The European Community may proceed with controls of fish feed compound in the Faroe 
Islands. Fish feed undertakings shall give immediate access to their factories and to their stock 
records in order to allow inspectors to trace the raw materials that have been used. Inspectors 
shall be allowed to take samples for analysis.  

Inspectors  shall  be  entitled  to  control  the  compounding  of  fish  feed,  the  raw  and  processed 
materials, and the books and other documents, including documents and metadata drawn up or 
received or recorded on an electronic medium, relating to stock records. 

Article 3 

Inspections shall be carried out by experts of the Commission or of the Member States, herein 
referred to as the "inspectors". The experts from the Member States who are to be entrusted 
with the task of carrying out these inspections shall be appointed by the Commission.  

Article 4 

Those inspections shall be made on behalf of the Community, which shall bear the expenditure 
incurred by their inspectors. 

Inspectors shall inform Faroe authorities of an inspection so that Faroe agents may take part in 
such inspections. 

Detailed arrangements on the way the controls are carried out may be conducted directly by 
the Commission with Faroe authorities. 

Article 5 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL 

Proposal for a Council Decision on a Community position concerning the amendment of 
Protocol 4 to the Agreement between the European Community, of the one part, and the 
Government  of  Denmark  and  the  Home  Government  of  the  Faroe  Islands,  of  the  other 
part. 

2. 

BUDGET LINES 

Chapter 10 – Article 1000 – Agricultural duties. 
Amount budgeted for the year 2007: – 1 486.9 Mio €. 

3. 

FINANCIAL IMPACT 

Proposal  has  no  financial  impact  on  expenditure  but  has  a  financial  impact  on 
revenue – the effect is as follows: 

(€ million to one decimal place): 

Budget line 

Revenue7 

12-month period, starting 1.1.2007 

Article 100 – 1000 

Impact on own resources 

Article … 

Impact on own resources 

– 0,17 

– 

Situation following action 

2008 

2009 

2010 

2011 

Article 100 – 1000  

Article …  

4. 

5. 

ANTI-FRAUD MEASURES 

OTHER REMARKS 

This is the maximum potential impact. Nevertheless, it should be noted that the current 
level  of  imports  is  lower  than  10 000  tonnes  and,  consequently,  the  expected  financial 
impact would be much lower, even zero. 

7 

Regarding traditional own resources (agricultural duties, sugar levies, customs duties) the amounts indicated 
must be net amounts, i.e. gross amounts after deduction of 25% of collection costs. 

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