Proposal for a Council Regulation concerning the implementation of Agreements concluded by the EC following negotiations in the framework of Article XXVIII 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: 2007-04-10
Institutions: European Commission
Subjects: Brazil, Combined Nomenclature, Thailand, common customs tariff, customs duties, meat product, poultrymeat, tariff quota, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.4.2007 
COM(2007) 176 final 

2007/0060 (ACC) 
2007/0061 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of Agreements in the form of agreed minutes on the modification of 
concessions with respect to poultry meat between the European Community and the 
Federal Republic of Brazil, and between the European Community and the Kingdom of 
Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and 
Trade 1994 (GATT 1994) 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of Agreements concluded by the EC following 
negotiations in the framework of Article XXVIII 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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1. 

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6. 

7. 

EXPLANATORY MEMORANDUM 

On 5 May 2006, the Council authorised the Commission to open negotiations under 
Article XXVIII  of  the  GATT  1994  (COM  proposal  8114/06  WTO  63  AGRI  123) 
with a view to modify the bound duties on three poultry meat products provided for in 
the EC Schedule CXL annexed to the GATT 1994.  

The  Commission  notified  to  the  World  Trade  Organisation  its  intention  to  modify 
concessions  for  salted  poultry  meat  under  heading  0210 99 39  and  to  extend  these 
negotiations  to  cooked  chicken  meat  under  heading  1602 32 19  and  to  turkey  meat 
preparations under heading 1602 31 of the Combined Nomenclature. 

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  Federal  Republic  of  Brazil,  holding  a 
principal supplying interest in products of HS codes 0210 99 39 (salted poultry meat), 
1602 31 (prepared turkey meat) and holding a substantial interest in products of HS 
codes 1602 32 19 (cooked chicken meat) and with the Kingdom of Thailand, holding 
a substantial interest in products of HS code 0210 99 39 (salted poultry meat) and a 
principal  supplying  interest  in  products  of  HS  code  1602 32 19  (cooked  chicken 
meat). 

The negotiations have resulted in Agreements in the form of Agreed minutes with the 
Kingdom  of  Thailand  on  23 November  2006  and  Federal  Republic  of  Brazil  on 
6 December 2006. 

This  proposal  asks  the  Council  to  approve  the  decision  on  the  conclusion  of 
Agreements in the form of agreed minutes. 

Following this decision, the Council is invited to approve the proposal for a Council 
Regulation concerning the implementation of the Agreements concluded. 

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2007/0060 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of Agreements in the form of agreed minutes on the modification of 
concessions with respect to poultry meat between the European Community and the 
Federal Republic of Brazil, and between the European Community and the Kingdom of 
Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and 
Trade 1994 (GATT 1994) 

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 Commission1, 

Whereas: 

(1) 

(2) 

(3) 

On  5  May  2006,  the  Council  authorised  the  Commission  to  open  negotiations  under 
Article XXVIII of the GATT 1994 with a view to modification of the bound duties on 
three  poultry  meat  products  provided  for  in  EC  Schedule  CXL  annexed  to  the 
GATT 1994. The Commission notified to the World Trade Organisation its intention to 
modify  concessions  for  salted  poultry  meat  under  heading  0210 99 39  and  to  extend 
these  negotiations  to  cooked  chicken  meat  under  heading  1602 32 19  and  to  turkey 
meat preparations under heading 1602 31 of the Combined Nomenclature.  

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  reached  Agreements  in  the  form  of  Agreed  Minutes  with  the 
Federal  Republic  of  Brazil,  holding  a  principal  supplying  interest  in  products  of  HS 
codes 0210 99 39, 1602 31 and holding a substantial interest in products of HS codes 
1602 32 19,  on  6 December  2006,  and  with  the  Kingdom  of  Thailand,  holding  a 
substantial  interest  in  products  of  HS  code  0210 99 39,  and  a  principal  supplying 
interest in products of HS code 1602 32 19, on 23 November 2006. These Agreements 
should therefore be approved, 

1 

OJ C …, …, p. …. 

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HAS DECIDED AS FOLLOWS:  

Article 1 

The  Agreements  in  the  form  of  Agreed  Minutes  between  the  European  Community  and  the 
Federal  Republic  of  Brazil,  and  between  the  European  Community  and  the  Kingdom  of 
Thailand,  pursuant  to  Article XXVIII  of  the  GATT  1994  relating  to  the  modification  of 
concessions  with  respect  to  poultry  meat  products  of  HS  codes  0210 99 39  (salted  poultry 
meat), 1602 31 (prepared turkey meat) and 1602 32 19 (cooked chicken meat) provided for in 
EC  Schedule  CXL  annexed  to  the  GATT  1994  is  hereby  approved  on  behalf  of  the 
Community. 

The texts of the Agreements are annexed to this Decision. 

The Commission shall adopt the detailed rules for implementing the agreements in accordance 
with the procedure laid down in Article 3 of this Decision. 

Article 2 

Article 3 

The Commission shall be assisted by the Management Committee for Poultry meat and Eggs 
in order to implement the management of the Tariff rate quotas. 

Where reference is made to this Article, Articles 4 and 7 of Decision 1999/468/EC shall apply.  

The period laid down in Article 4(3) of Decision 1999/468/EC shall be one month. 

Article 4 

The President of the Council is hereby authorised to designate the persons empowered to sign 
the Agreements in order to bind the Community2. 

Done at Brussels,  

For the Council 
The President 

2 

The date of entry into force of the agreement will be published in the Official Journal of the European 
Union. 

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ANNEX 

A. Agreed minutes between the European Community  
and the Federal Republic of Brazil 

Negotiations under Article XXVIII of GATT 1994 relating to the modification of concessions 
with respect to poultry provided for in EC Schedule CXL annexed to GATT 1994. 

In  the  negotiations  between  the  European  Community  (hereinafter  'EC')  and  the  Federative 
Republic  of  Brazil  (hereinafter  'Brazil')  under  Article  XXVIII  of  GATT  1994  for  the 
modification of concessions with respect to poultry provided for in EC Schedule CXL annexed 
to  the  General  Agreement  on  Tariffs  and  Trade  1994  (GATT  1994),  the  Delegations  of  the 
Commission of the European Communities and Brazil reached the Agreement outlined below. 

The Delegations of the Commission of the European Communities and Brazil will submit this 
Agreement for approval to their respective authorities. 

1. 

Bound  Rates  of  Duty:  the  bound  rate  of  duty  for  items  0210 90 20  (currently 
0210 99 39), 1602 31 and 1602 32 19 shall be €1 300/ton, €1 024/ton and €1 024/ton 
respectively. 

2. 

Tariff Rate Quotas: the EC shall open the following annual TRQs: 

a) 

b) 

c) 

for item 0210 90 20 ("salted") a quota of 264 245 tons, of which 170 807 tons 
shall be allocated to Brazil. The in-quota rate shall be 15.4% ad valorem; 

for item 1602 31 ("turkey") a quota of 103 896 tons, of which 92 300 tons shall 
be allocated to Brazil. The in-quota rate shall be 8.5% ad valorem; 

for item 1602 32 19 ("cooked") a quota of 250 953 tons, of which 79 477 tons 
shall be allocated to Brazil. The in-quota rate shall be 8% ad valorem. 

Imports  under  the  TRQs  referred  to  in  paragraph 2  shall  take  place  on  the  basis  of 
certificates of origin issued in a non-discriminatory way by the competent authorities 
in Brazil. 

The concessions contained in the present agreement shall be subject to the modalities 
eventually agreed to in the DDA of WTO. 

The  quota  volumes  allocated  among  the  countries  with  principal  supplying  interest 
and substantial interest shall follow the general principles of GATT Article XIII. The 
concessions that may result from the application of such principles shall not be less 
favourable than those negotiated under the present agreement. 

The two parties commit themselves to implement the provisions of this agreement as 
soon as possible in accordance to their internal procedures. 

At the request of either party to the present agreement, consultations shall take place 
in relation to the implementation of the present agreement. 

3. 

4. 

5. 

6. 

7. 

For the Delegation of the Commission  
of the European Communities 

For the Delegation of Brazil 

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B. Agreed minutes between the European Community and the Kingdom of Thailand 

Negotiations under Article XXVIII of GATT 1994 relating to the modification of concessions 
with respect to poultry provided for in EC Schedule CXL annexed to GATT 1994. 

In  the  negotiations  between  the  European  Community  (hereinafter  'EC')  and  the  Federative 
Kingdom  of  Thailand  (hereinafter  'Thailand')  under  Article  XXVIII  of  GATT  1994  for  the 
modification of concessions with respect to poultry provided for in EC Schedule CXL annexed 
to  the  General  Agreement  on  Tariffs  and  Trade  1994  (GATT  1994),  the  Delegations  of  the 
Commission  of  the  European  Communities  and  Thailand  reached  the  Agreement  outlined 
below. 

The Delegations of the Commission of the European Communities and Thailand will submit 
this Agreement for approval to their respective authorities. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Bound  Rates  of  Duty:  the  bound  rate  of  duty  for  items  0210 90 20  (currently 
0210 99 39) and 1602 32 19 shall be €1 300/ton and €1 024/ton respectively. 

Tariff Rate Quotas: the EC shall open the following annual TRQs: 

a) 

b) 

for  item  0210 90 20  ("salted")  a  quota  of  264 245  tons,  of  which  92 610 tons 
shall be allocated to Thailand. The in-quota rate shall be 15.4% ad valorem; 

for item 1602 32 19 ("cooked") a quota of 250 953 tons, of which 160 033 tons 
shall be allocated to Thailand. The in-quota rate shall be 8% ad valorem. 

Imports  under  the  TRQs  referred  to  in  paragraph 2  shall  take  place  on  the  basis  of 
certificates of origin issued in a non-discriminatory way by the competent authorities 
in Thailand. 

The concessions contained in the present agreement shall be subject to the modalities 
eventually agreed to in the DDA of WTO. 

The  quota  volumes  allocated  among  the  countries  with  principal  supplying  interest 
and substantial interest shall follow the general principles of GATT Article XIII. The 
concessions that may result from the application of such principles shall not be less 
favourable than those negotiated under the present agreement. 

The two parties commit themselves to implement the provisions of this agreement as 
soon as possible in accordance to their internal procedures. 

At the request of either party to the present agreement, consultations shall take place 
in relation to the implementation of the present agreement. 

For the Delegation of the Commission  
of the European Communities 

For the Delegation of Thailand 

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2007/0061 (ACC) 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of Agreements concluded by the EC following 
negotiations in the framework of Article XXVIII 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 Commission3, 

Whereas: 

(1) 

(2) 

Council Regulation (EEC) No 2658/874 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  between  the 
European Community  and  the  Federal Republic of Brazil, and between the European 
Community  and  the  Kingdom  of  Thailand,  the  Council  approved,  on  behalf  of  the 
Community,  the  before  mentioned  Agreements  with  a  view  to  closing  negotiations 
initiated pursuant to Article XXVIII of GATT 1994, 

HAS ADOPTED THIS REGULATION: 

In Regulation (EEC) No 2658/87 Annex I of Part Two (Schedule of Customs Duties) shall be 
amended with the duties shown in the Annex to this Regulation. 

Article 1 

Article 2 

Annex  7  of  Section  III  of  Part  Three  (WTO  tariff  quotas  to  be  opened  by  the  Competent 
Community  Authorities)  shall  be  amended  with  the  tariff  quotas  and  supplemented  with  the 
volumes and duties shown in the Annex of this Regulation. 

3 
4 

OJ C …, …, p. …. 
OJ L 256, 7.9.1987, p. 1. 

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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 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. 

Part Two – Schedule of Customs Duties 

CN code 

Description 

Duty rate 

0210 99 39 

Salted poultry meat 

€1 300/ton 

1602 31 

Prepared turkey meat 

1602 32 19 

Cooked chicken meat 

€1 024/ton 

€1 024/ton 

CN code 

Description 

Duty rate 

Part Three – Tariff Annexes 

0210 99 39 

Salted poultry meat 

1602 31 

Prepared turkey meat 

1602 32 19 

Cooked chicken meat 

Open a tariff rate quota 
264 245 tons, of which 
170 807 tons shall be allocated to 
Brazil and 92 610 tons to Thailand, 
in-quota rate 15.4% 

Open a tariff rate quota 
103 896 tons, of which 92 300 tons 
shall be allocated to Brazil, 
in-quota rate 8.5% 

Open a tariff rate quota 
250 953 tons, of which 79 477 tons 
shall be allocated to Brazil and 
160 033 tons to Thailand, in-quota 
rate 8.0% 

The exact tariff description of the EC-25 shall apply to all tariff lines and quotas above. 

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FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
Chapter 10 – Agricultural duties 

APPROPRIATIONS: 
€1 486.7 Mio 

TITLE: 
–  Council Decision on the conclusion of Agreements in the form of agreed minutes on the modification 
of  concessions  with  respect  to  poultry  meat  between  the  European  Community  and  the  Federal 
Republic of Brazil, and between the European Community and the Kingdom of Thailand pursuant to 
Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994), and 

–  Council  Regulation  concerning  the  implementation  of  Agreements  concluded  by  the  EC  following 
negotiations  in  the  framework  of  Article XXVIII  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 

LEGAL BASIS: 
Article 133 of the EC Treaty and first sentence of the first subparagraph of Article 300(2) 

AIMS: 
–  to  approve  the  conclusion  of  agreements  between  the  EC  and  the  Federal  Republic  of  Brazil  and 
between  the  EC  and  the  Kingdom  of  Thailand,  on  the  modification  of  concessions  with  respect  to 
poultry meat imports and 

–  to  amend  and  supply  Annex  I  to  Regulation  (EEC)  No  2658/87  on  the  tariff  and  statistical 
nomenclature and on the common customs tariff, following the conclusion of agreements concluded 
by the EC with Brazil and Thailand. 

5. 

FINANCIAL IMPLICATIONS (1) 

12 MONTH PERIOD

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
– 

CURRENT FINANCIAL 
YEAR 2007 
and FOLLOWING YEARS 
(EUR million) 
– 

5.1  REVENUE 

–92.5 

–92.5 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

– 

2008 
– 
–92.5 

2009 
– 
–92.5 

2010 
– 
–92.5 

2011 
– 
–92.5 

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? 

YES NO 

YES NO 
YES NO 
YES NO 

OBSERVATIONS: 
(1) 

Since  the  duty  rate  outside  quota  will  be  prohibitive,  it's  expected  that  only  the  quantity  within  quota 
will be imported. With respect to the revenue, it can be estimated that the measure would imply a loss of 
a net amount of approximately –€92.5 Mio. 

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