Proposal for a Council Regulation introducing autonomous trade preferences for Moldova and amending Regulation (EC) No 980/2005 and Commission Decision 2005/924/EC
Date: 2007-11-14
Institutions: European Commission
Subjects: CCT duties, Moldova, developing countries, generalised preferences, governance, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.11.2007 
COM(2007) 705 final 

2007/0245 (ACC) 

Proposal for a 

COUNCIL REGULATION 

introducing autonomous trade preferences for Moldova and amending Regulation (EC) 
No 980/2005 and Commission Decision 2005/924/EC 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In the European Neighbourhood Policy Action Plan (ENP Action Plan) for Moldova, which 
was agreed in 2005, the EU committed itself to consider the possibility of granting Moldova 
additional  Autonomous  Trade  Preferences  (ATPs),  provided  that  Moldova  substantially 
improves its system of controls and certification of origin of goods.  

The main reason for including this commitment in the Action Plan was that Moldova is the 
poorest country  on  the  European  continent and to offer Moldova an improved access to  the 
EU  market  would  support  the  development  of  its  economy  through  increased  export 
performance.  Furthermore  it  was  clear  that  entering  into  negotiations  on  a  Free  Trade 
Agreement  with  Moldova  is  not  an  option  as  Moldova  does  not  possess  the  competitive 
strength to take on reciprocal obligations of such an arrangement with the EU. 

In  2006  Moldova  reformed  its  customs  legislation  and  reached  a  satisfactory  level  of 
implementation of the new legislation at the beginning of 2007. 

Until Romania's accession to the European Union on the 1 January 2007, Moldova had a free 
trade  regime  with  Romania.  While  on  the  whole  the  effect  of  the  2007  enlargement  was 
negligible for Moldova, it had a negative impact on a few key export products of Moldova. 

Explanation of the provisions 

The  present  proposal  provides  for  duty  and  quota  free  access  to  the  EU  markets  for  all 
products  originating  in  Moldova,  except  for  certain  agricultural  products  for  which  limited 
concessions are given in the form of exemption from customs duties within the limit of tariff 
quotas or reduction of customs duties.  

The  agricultural  products  for  which  limited  concessions  are  foreseen  are  those  which  are 
currently subject to significant internal market reforms and which are considered as sensitive 
products  on  the  EU  market.  The  methodology  used  for  determining  the  size  of  the  tariff 
quotas  was  based  on  best  export  performance  of  Moldova  in  the  years  2004  to  2006,  with 
linear  yearly  increases  corresponding  to  the  potential  increases  in  production  and  export 
capacity of Moldova until 2012.  

Currently Moldova does not fulfil the applicable sanitary and phytosanitary (SPS) standards 
for meat and dairy products, which is why there are no exports of those products to the EU. 
Therefore,  the  tariff  quotas  for  meat  and  dairy  products  were  based  on  similar  concessions 
given to other third countries and the estimated maximum export capacity of Moldova until 
the year 2012. Despite the absence of exports for the time being, it was seen as important to 
establish quotas for these products so as to encourage Moldova to continue working towards 
fulfilling the relevant SPS criteria. 

The  proposal  also  includes  provisions  on  temporary  suspension  of  preferences  in  case  of 
fraud, irregularities and failure to comply with the rules of origin of products and procedures 
related thereto, or with any of the other conditions laid down in the proposed Regulation. It 
also includes a safeguards clause in case products originating in Moldova cause, or threaten to 
cause, serious difficulties to Community producers. Finally, it avoids any overlapping in trade 
preferences with the EU generalised system of preferences. 

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Budgetary implications 

The proposed Regulation does not incur costs charged to the EC budget. As the general level 
of imports from Moldova is merely 0.03% of all Community imports, further market opening 
is  not  expected  to  create  negative  effects  for  the  Community.  Currently  86%  of  all  imports 
from Moldova enter the EU free of duties and the estimated annual loss of customs revenue if 
additional preferences are granted to Moldova would be approximately €1.5 million. 

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2007/0245 (ACC) 

Proposal for a 

COUNCIL REGULATION 

introducing autonomous trade preferences for Moldova and amending Regulation (EC) 
No 980/2005 and Commission Decision 2005/924/EC 

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 Commission, 

Whereas:  

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

1 
2 
3 

The  relationship  between  the  European  Union  (EU)  and  Moldova  builds  on  the 
Partnership and Cooperation Agreement that entered into force on 1 July 19981. One 
of  its  main  objectives  is  to  promote  trade  and  investment  and  harmonious  economic 
relations between the Parties and so to foster their sustainable economic development. 

In the European Neighbourhood Policy Action Plan (ENP Action Plan) for Moldova, 
which  was  agreed  in  2005,  the  EU  committed  itself  to  consider  the  possibility  of 
granting  Moldova  additional  Autonomous  Trade  Preferences  (ATPs),  provided  that 
Moldova  substantially  improved  its  system  of  controls  and  certification  of  origin  of 
goods.  In  2006  Moldova  reformed  its  customs  legislation  and  a  satisfactory  level  of 
implementation of the new legislation was reached at the beginning of 2007. 

Until  Romania's  accession  to  the  EU  on  1  January  2007,  Moldova  had  a  free  trade 
regime with Romania. On the whole the effect of the 2007 enlargement was negligible 
for Moldova, but it had a negative impact on a few key export products of Moldova.  
Pursuant  to  Commission  Decision  2005/924/EC  of  21  December  20052,  Moldova 
already  benefits  from  the  special  incentive  arrangement  for  sustainable  development 
and  good  governance  (the  GSP+)  provided  for  in  Council  Regulation  (EC)  No 
980/2005  of  27  June  2005  applying  a  scheme  of  generalised  tariff  preferences3 
(GSPs).  

The  general  level  of  imports  from  Moldova  is  merely  0.03%  of  all  Community 
imports. Further market opening is expected to support the development of Moldova's 
economy through increased export performance while not creating negative effects for 
the Community.  

It  is  therefore  appropriate  to  extend  autonomous  trade  preferences  to  Moldova  by 
removing all remaining tariff ceilings for industrial products and by improving access 
to the Community market for agricultural products. 

OJ L 181, 24.6.1998, p. 1 
OJ L 337, 22.12.2005, p. 50 
OJ L 169, 30.6.2005, p. 1. Regulation as amended by Commission Regulation (EC) No 606/2007 (OJ L 
141, 2.6.2007, p. 4) 

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(7) 

(8) 

(9) 

In  accordance  with  ENP  Action  Plan,  the  level  of  ambition  of  the  EU  –  Moldova 
relationship will depend on the degree of Moldova's commitment to common values as 
well  as  its  capacity  to  implement  jointly  agreed  priorities,  including  the  readiness  to 
engage  in  effective  economic  reforms.  Furthermore,  to  benefit  from  the  additional 
tariff  preferences  under  the  GSP+  regime,  Moldova  has  fulfilled  the  conditions  of 
ratifying  and  effectively  implementing  core  international  conventions  on  human  and 
labour  rights,  environmental  protection  and  good  governance.  To  ensure  Moldova 
maintains the level of progress it has achieved, the granting of additional autonomous 
trade preferences will be subject to continued implementation of and compliance with 
the  priorities  and  conditions  set  in  the  ENP  Action  Plan  and  the  special  incentive 
arrangement for sustainable development and good governance, the GSP+.  

In addition, entitlement to benefit from autonomous trade preferences is conditional on 
Moldova's compliance with the relevant rules of origin of products and the procedures 
related thereto as well as involvement in effective administrative cooperation with the 
Community in order to prevent any risk of fraud. 

The  reasons  for  temporary  suspension  of  preferences  should  include  serious  and 
systematic  violations  of  the  conditions  for  the  entitlement  to  the  preferential 
arrangements,  fraud  or  failure  to  provide  administrative  cooperation  for  the 
verification of origin of goods and failure of Moldova to show continued engagement 
in the implementation of the priorities set in the ENP Action Plan and the conventions 
listed in Annex II. 

(10) 

It is necessary to provide for the reintroduction of Common Customs Tariff duties for 
any  products  causing,  or  threatening  to  cause  serious  difficulties  to  a  Community 
producer  of  like  or  directly  competing  products,  subject  to  an  investigation  by  the 
Commission. 

(11)  For the purposes of defining the concept of originating products, certification of origin 
and  administrative  cooperation  procedures,  Title  IV,  Chapter  2,  section  2  of 
Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for 
the  implementation  of  Council  Regulation  (EEC)  No  2913/92  establishing  the 
Community Customs Code4 will apply.  

(12)  For the sake of rationalisation and simplification, it is appropriate to provide that the 
Commission  may,  having  consulted  the  Customs  Code  Committee  and  without 
prejudice  to  the  specific  procedures  provided  for  in  this  Regulation,  make  any 
necessary changes and technical amendments to this Regulation. 

(13)  The measures necessary for the implementation of this Regulation should be adopted 
in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the 
procedures for the exercise of implementing powers conferred on the Commission5. 

(14)  The  introduction  of  the  proposed  measures  for  products  originating  in  Moldova  will 
make  the  inclusion  of  Moldova  in  the  Community's  scheme  of  generalised  tariff 
preferences superfluous. It is therefore appropriate to remove Moldova from the list of 
beneficiaries of Council Regulation (EC) No 980/2005 of 27 June 2005 and from the 
list of the beneficiary countries which qualify for the special incentive arrangement for 
sustainable development and good governance in Decision 2005/924/EC. 

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5 

OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Commission Regulation (EC) No 214/2007 
(OJ L 62, 1.3.2007, p. 6) 
OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 1). 

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(15)  These  import  arrangements  should  be  renewed  on  the  basis  of  the  conditions 
established by the Council and in the light of the experience gained in granting these 
arrangements under this Regulation. It is therefore appropriate to limit the duration of 
the arrangements to 31 December 2012 

HAS ADOPTED THIS REGULATION: 

Article 1  

Preferential arrangements 

1. 

2. 

Products  originating  in  Moldova,  other  than  those  included  in  tables  1  and  2  in 
Annex  I,  shall  be  admitted  for  import  into  the  Community  without  quantitative 
restrictions  or  measures  having  equivalent  effect  and  with  exemption  of  customs 
duties and charges having equivalent effect. 

Products  originating  in  Moldova  and  included  in  Annex  I  shall  be  admitted  for 
import into the Community subject to the special provisions laid down in Article 3. 

Article 2 

Conditions for entitlement to the preferential arrangements 

1. 

Entitlement  to  benefit  from  the  preferential  arrangements  introduced  by  Article  1 
shall be subject to: 

(a) 

(b) 

(c) 

(d) 

compliance  with  the  rules  of  origin  of  products  and  the  procedures  related 
thereto as provided for in Title IV, Chapter 2, section 2 of Regulation (EEC) 
No 2454/93;  

compliance with the methods of administrative co-operation as provided for in 
Articles 121 and 122 of Regulation (EEC) No 2454/93; 

the  involvement  of  Moldova  in  effective  administrative  co-operation  with  the 
Community in order to prevent any risk of fraud; 

the  abstention  of  Moldova  from  introducing  new  duties  or  charges  having 
equivalent  effect  and  new  quantitative  restrictions  or  measures  having 
equivalent effect for imports originating in the Community or from increasing 
existing  levels  of  duties  or  charges  or  from  introducing  any  other  restrictions 
from the day of the entry into force of this Regulation; 

(e)  Moldova's continued engagement in the implementation of the priorities set in 
the  ENP  Action  Plan  for  Moldova  of  2005,  in  particular  as  regards  effective 
economic reform; and  

(f)  Moldova  maintaining  the  ratification  and  effective  implementation  of  the 
conventions listed in Annex II and accepting regular monitoring and review of 
its implementation record in accordance with the implementation provisions of 
the conventions it has ratified.  

2. 

The  Commission  shall  keep  under  review  the  status  of  ratification  and  effective 
implementation of the relevant conventions referred to in paragraph 1(e). 

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3. 

1. 

2. 

3. 

In  the  event  of  non-compliance  with  the  conditions  set  in  paragraph  1,  the 
Commission may in accordance with Article 10 of this Regulation, take measures to 
suspend the arrangements provided for in Article 1. 

Article 3 

Tariff quotas and price thresholds for certain agricultural products 

Products  listed  in  Table  1  of  Annex  I  shall  be  admitted  for  import  into  the 
Community with exemption of customs duties within the limits of Community tariff 
quotas as set out in this table.  

Products  listed  in  Table  2  of  Annex  I  shall  be  admitted  for  import  into  the 
Community with exemption of the ad valorem component of the import duty. 

Notwithstanding  other  provisions  of  this  Regulation,  in  particular  Article  10,  if 
imports of agricultural products cause serious disturbance to the Community markets 
and their regulatory mechanisms, the Commission may take the appropriate measures 
in accordance with the procedure laid down in the applicable Community law to the 
products in question.  

Article 4 

Implementation of tariff quota for dairy products 

The  detailed  rules  for  implementing  the  tariff  quota  for  headings  0401  to  0406  shall  be 
determined by the Commission in accordance with the procedure referred to in Article 42 of 
Regulation (EC) No 1255/1999 on the common organisation of the market in milk and milk 
products6. 

Article 5 

Administration of tariff quotas  

The tariff quotas referred to in Article 3(1) and listed in Annex I, except tariff quota for dairy 
products referred to in Article 4, shall be administered by the Commission in accordance with 
Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93. 

Article 6 

Access to tariff quotas  

Member  States  shall  ensure  that  importers  have  equal  and  uninterrupted  access  to  the  tariff 
quotas for as long as the balance of the relevant quota volume so permits.  

6 

OJ L 160, 26.6.1999, p. 48 

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Article 7 

Conferment of powers  

The Commission shall, in accordance with the procedure referred to in Article 8(2), adopt the 
provisions  necessary  for  the  application  of  this  Regulation,  other  than  those  referred  to  in 
Article 4, notably: 

(a) 

(b) 

1. 

2. 

amendments  and  technical  adjustments  necessary  following  amendments  to  the 
Combined Nomenclature codes and to the TARIC subdivisions; 

necessary  adjustments  following  the  conclusion  of  other  agreements  between  the 
Community and Moldova. 

Article 8 

Management Committee 

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  instituted  by 
Article 248a of Council Regulation (EEC) No 2913/927. 

Where  reference  is  made  to  this  paragraph,  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 9 

Cooperation 

Member States and the Commission shall cooperate closely to ensure that this Regulation, and 
in particular the provisions set out in Article 10(1), are complied with. 

Article 10 

Temporary suspension 

1. 

Where the Commission finds that there is sufficient evidence of fraud, irregularities 
or systematic failure by Moldova to comply or to ensure compliance with the rules of 
origin  of  products  and  the  procedures  related  thereto  and  to  provide  administrative 
cooperation as referred to in Article 2(1), or a failure to comply with any of the other 
the conditions defined in Article 2(1), it may take measures to suspend in whole or in 
part the preferential arrangements provided for in this Regulation for a period of not 
more than six months, provided that it has first: 

(a) 

(b) 

informed the Committee; 

called  on  the  Member  States  to  take  such  precautionary  measures  as  are 
necessary  in  order  to  safeguard  the  Community's  financial  interests  and/or  to 
secure compliance by Moldova with Article 2(1); 

7 

OJ  L  302,  19.10.1992,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  648/2005  of  the 
European Parliament and the Council (OJ L 117, 4.5.2005, p. 13). 

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(c) 

published  a  notice  in  the  Official  Journal  of  the  European  Union  stating  that 
there are grounds for reasonable doubts about the application of the preferential 
arrangements and/or compliance with Article 2(1) by Moldova which may call 
into  question  its  right  to  continue  enjoying  the  benefits  granted  by  this 
Regulation; 

(d) 

informed  Moldova  of  any  decision  taken  in  accordance  with  this  paragraph, 
before it becomes effective. 

A Member State may refer the Commission's decision to the Council within 10 days. 
The  Council,  acting  by  qualified  majority,  may  take  a  different  decision  within  30 
days.  

On  conclusion  of  the  period  of  suspension,  the  Commission  shall  decide  either  to 
terminate  the  provisional  suspension  measure  following  consultation  of  the 
Committee  or  to  extend  the  suspension  measure  in  accordance  with  the  procedure 
provided for in paragraph 1. 

Member  States  shall  communicate  to  the  Commission  all  relevant  information  that 
may justify the suspension of preferences or its extension. 

Article 11 

Safeguard clause 

Where  a  product  originating  in  Moldova  is  imported  on  terms  which  cause,  or 
threaten  to  cause,  serious  difficulties  to  a  Community  producer  of  like  or  directly 
competing  products,  Common  Customs  Tariff  duties  on  that  product  may  be 
reintroduced at any time by the Council acting on a proposal from the Commission. 

At the request of a Member State or on the Commission's initiative, the Commission 
shall take a formal decision to initiate an investigation within a reasonable period of 
time.  Where  the  Commission  decides  to  initiate  an  investigation,  it  shall  publish  a 
notice  in  the  Official  Journal  of  the  European  Union  announcing  the  investigation. 
The  notice  shall  provide  a  summary  of  the  information  received  and  state  that  any 
relevant  information  should  be  sent  to  the  Commission.  It  shall  specify  the  period, 
which  shall  not  exceed  4  months  from  the  date  of  publication  of  the  notice,  within 
which interested parties may make their views known in writing. 

The  Commission  shall  seek  all  information  it  deems  necessary  and  may  verify  the 
information received with Moldova and any other relevant source. It may be assisted 
by officials of the Member States on whose territory verification might be sought, if 
that Member State so requests. 

In  examining  whether  there  are  serious  difficulties,  the  Commission  shall  take 
account, inter alia, of the following factors concerning Community producers where 
the information is available: 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

–  market share, 

–  production, 

–  stocks, 

–  production capacity, 

–  capacity utilisation, 

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–  employment, 

–  imports, 

–  prices. 

5. 

6. 

7. 

1. 

2. 

1. 

The  investigation  shall  be  completed  within  6  months  after  the  publication  of  the 
notice  referred  to  in  paragraph  2.  The  Commission  may,  in  case  of  exceptional 
circumstances  and  after  consultation  of  the  Committee,  extend  this  period  in 
accordance with the procedure referred to in Article 8(2). 

The  Commission  shall  take  a  decision  within  3  months,  in  accordance  with  the 
procedure  referred  to  in  Article  8(2).  Such  decision  shall  enter  into  force  within  1 
month as from its publication. 

Where exceptional circumstances requiring immediate action make an investigation 
impossible,  the  Commission  may,  after  informing  the  Committee,  take  any 
preventive measure which is strictly necessary. 

Article 12 

Amendments to Regulation (EC) 980/2005 and Commission Decision 2005/924/EC  

In  Annex  I  to  Regulation  (EC)  980/2005,  the  entry  'MD  Moldova,  Republic  of'  is 
deleted. 

In the Sole Article of Decision 2005/924/EC, the entry 'MD Republic of Moldova' is 
deleted. 

Article 13 

Transitional measures 

The benefit of the generalised tariff preferences established by Regulation (EC) No 
980/2005  shall  continue  to  be  granted  in  respect  of  goods  originating  in  Moldova 
which are put into free circulation in the Community before the first day of the third 
month following the entry into force of this Regulation, provided that:  

(a) 

(b) 

the goods concerned are covered by a purchase contract concluded before the 
date of entry into force of this Regulation; and 

it can be shown to the satisfaction of the customs authorities that those goods 
left  the  country  of  origin  no  later  than  the  date  of  entry  into  force  of  this 
Regulation. 

2. 

The customs authorities may regard paragraph 1(b) as having been satisfied if one of 
the following documents is submitted to them: 

(a) 

(b) 

(c) 

in  the  case  of  transport  by  sea  or  waterway,  the  bill  of  loading  showing  that 
loading took place before the date of entry into force of this Regulation; 

in the case of transport by rail, the consignment note accepted by the railways 
of the expediting country before the date of entry into force of this Regulation; 

in  the  case  of  transport  by  road,  the  international  road  transport  TIR  carnet 
issued  before  the  date  of  entry  into  force  of  this  Regulation  by  the  customs 

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office in the country of origin or any other appropriate document authenticated 
by the relevant customs authorities of the country of origin before that date; 

(d) 

in the case of transport by air, the air consignment note showing that the airline 
received the goods before the date of entry into force of this Regulation. 

Article 14 

Application of the Community Veterinary legislation 

The  provisions  of  this  Regulation  do  not  affect  any  restrictions  or  import  rules  which  are 
included in the Community Veterinary legislation. 

Article 15 

Entry into force and application 

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

It  shall  apply  from  (the  first  day  of  the  second  month  after  its  entry  into  force)  until  31 
December 2012. 

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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PRODUCTS SUBMITTED TO QUANTITATIVE LIMITS OR PRICE THRESHOLDS REFERRED TO IN ARTICLE 3 

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 preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. 
Where  ex  CN  codes  are  indicated,  the  preferential  scheme  is  to  be  determined  by  application  of  the  CN  code  and  corresponding  description  taken 
together. 

ANNEX I 

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1. Products subject to annual duty free tariff quotas 

Order No 

CN Code 

Description 

09.0504 

0201 
0204 

to 

Fresh, chilled and frozen meat of bovine animals, domestic 
swine and sheep and goats 

09.0505 

ex 0207 

09.0506 

ex 0210 

Meat and edible offal of the poultry of heading 0105, fresh, 
chilled or frozen, other than fatty livers of subheading 
0207.34 

Meat and edible meat offal of swine and bovine animals, 
salted, in brine, dried or smoked; edible flours and meals 
of meat or meat offals of domestic swine and bovine 
animals 

09.4210 

0401 to 0406 

Dairy products 

09.0507 

0407.00 

Birds' eggs, in shell 

09.0508 

ex 0408 

Bird's eggs, not in shell and egg yolks, other than unfit for 
human consumption 

09.0509 

1001.90.91 

Common Wheat 

09.0510 

1003.00.90 

09.0511 

1005.90 

Barley 

Maize 

1601  00  91  and 
1601 00 99 

Sausages and similar products, of meat, meat offal or 
blood; food preparations based on these products 

09.0512 

ex 1602 

Other prepared or preserved meat, meat offal or blood: 
- of fowls of the species Gallus domesticus, uncooked, 
- of domestic swine, 
- of bovine animals, uncooked 

09.0513 

1701.99.10 

White Sugar 

09.0514 

2204  21 
2204 29 

and 

Wine of fresh grapes, of an actual alcoholic strength by 
volume not exceeding 15% vol, other than sparkling wine 

2008 (1) 

3 000 (2) 

2009 (1) 

3 000 (2) 

2010 (1) 

4 000 (2) 

2011 (1) 

4 000 (2) 

2012 (1) 

4 000 (2) 

400 (2) 

400 (2) 

500 (2) 

500 (2) 

500 (2) 

400 (2) 

400 (2) 

500 (2) 

500 (2) 

500 (2) 

1 000 (2) 
90 (3) 

200 (2) 

25 000 (2) 
20 000 (2) 
15 000 (2) 

1 000 (2) 
95 (3) 

200 (2) 

30 000 (2) 
25 000 (2) 
20 000 (2) 

1 500 (2) 
100 (3) 

300 (2) 

35 000 (2) 
30 000 (2) 
25 000 (2) 

1 500 (2) 
110 (3) 

300 (2) 

40 000 (2) 
35 000 (2) 
30 000 (2) 

1 500 (2) 
120 (3) 

300 (2) 

50 000 (2) 
45 000 (2) 
40 000 (2) 

500 (2) 

500 (2) 

600 (2) 

600 (2) 

600 (2) 

20 000 (2) 

60 000 (4) 

25 000 (2) 

70 000 (4) 

30 000 (2) 

35 000 (2) 

45 000 (2) 

80 000 (4) 

100 000 (4) 

120 000 (4) 

 (1) From 1 January until 31 December, except for 2008 from the first day of application of the Regulation until 31 December (2) tonnes (net weight). (3) million units, (4) hectolitres 

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2. Products for which the ad valorem component of the import duty is exempted 

CN Code 

Description 

0702 

0707 

0709 90 70 

0709 90 80 

0806  

0808 10 

0808 20 

0809 10 

0809 20 

0809 30 

0809 40 

Tomatoes, fresh or chilled 

Cucumbers and gherkins, fresh or chilled 

Courgettes, fresh or chilled 

Globe artichokes 

Grapes, fresh or dried 

Apples, fresh 

Pears and quinces 

Apricots 

Cherries 

Peaches, including nectarines 

Plums and sloes 

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ANNEX II 

CONVENTIONS REFERRED TO IN ARTICLE 2(1)(e) 

International Covenant on Civil and Political Rights 

International Covenant on Economic, Social and Cultural Rights 

International Convention on the Elimination of All Forms of Racial Discrimination 

Convention on the Elimination of All Forms of Discrimination Against Women 

Convention  Against  Torture  and  other  Cruel,  Inhuman  or  Degrading  Treatment  or 
Punishment 

Convention on the Rights of the Child 

Convention on the Prevention and Punishment of the Crime of Genocide  

Convention concerning Minimum Age for Admission to Employment (No 138) 

Convention concerning the Prohibition and Immediate Action for the Elimination of 
the Worst Forms of Child Labour (No 182) 

Convention concerning the Abolition of Forced Labour (No 105) 

Convention concerning Forced or Compulsory Labour (No 29) 

Convention concerning Equal Remuneration of Men and Women Workers for Work 
of Equal Value (No 100) 

Convention  concerning  Discrimination  in  Respect  of  Employment  and  Occupation 
(No 111) 

Convention  concerning  Freedom  of  Association  and  Protection  of  the  Right  to 
Organise (No 87) 

Convention concerning the Application of the Principles of the Right to Organise and 
to Bargain Collectively (No 98) 

International  Convention  on  the  Suppression  and  Punishment  of  the  Crime  of 
Apartheid 

Montreal Protocol on Substances that Deplete the Ozone Layer 

Basel  Convention  on  the  Control  of  Transboundary  Movements  of  Hazardous 
Wastes and Their Disposal 

Stockholm Convention on Persistent Organic Pollutants 

Convention on International Trade in Endangered Species of Wild Fauna and Flora 

Convention on Biological Diversity 

Cartagena Protocol on Biosafety 

Kyoto Protocol to the Unites Nations Framework Convention on Climate Change 

United Nations Single Convention on Narcotic Drugs (1961) 

United Nations Convention on Psychotropic Substances (1971) 

United Nations Convention against illicit Traffic in Narcotic Drugs and Psychotropic 
Substances (1988) 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 

23. 

24. 

25. 

26. 

27. 

United Nations Convention against Corruption (Mexico) 

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

1. 

NAME OF THE PROPOSAL: 

Council  Regulation  introducing  autonomous  trade  preferences  for  Moldova  and 
amending Regulation (EC) No 980/2005 and Commission Decision 2005/924/EC 

2. 

BUDGET LINES: 

Chapter and Article: Article 120 

Amount  budgeted  for  the  year  concerned:  16  431  900  000  (preliminary  draft 
budget 2008) 

3. 

FINANCIAL IMPACT  

(cid:133) 

(cid:59) 

Proposal has no financial implications 

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 

Revenue8 

12 month period, 
starting dd/mm/yyyy

[Year n] 

Article 120 

€ 1.125.000,00 

01/02(01)/2008 

2008 

Article 120 

€ 1.125.000,00 

01/01/2009 

2009 

Article 120 

€ 1.125.000,00 

01/01/2010 

2010 

Article 120 

€ 1.125.000,00 

01/01/2011 

2011 

Article 120 

€ 1.125.000,00 

01/01/2012 

2012 

8 

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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16 

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Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

Article … 

Article … 

4. 

ANTI-FRAUD MEASURES 

Article  10  of  the  Regulation  provides  for  temporary  suspension  of  the  preferences 
where the Commission finds that there is sufficient evidence of fraud, irregularities 
or systematic failure by Moldova to comply or to ensure compliance with the rules of 
origin  of  products  and  the  procedures  related  thereto  and  to  provide  administrative 
cooperation  as  defined  in  Article  2(1)  of  the  Regulation.  Subject  to  the  procedure 
defined in Article 10, the Commission may take measures to suspend in whole or in 
part the arrangements provided for in the Regulation for a period of not more than six 
months.  On  conclusion  of  the  period  of  suspension,  the  Commission  shall  decide 
either  to  terminate  the  provisional  suspension  measure  following  the  procedures 
provided for in Article 10(1) or to extend the suspension measure. 

5. 

OTHER REMARKS 

According  to  our  analysis  of  the  financial  implications  of  granting  Moldova 
additional autonomous trade preferences in terms of tariff revenue, the estimated loss 
would  amount  to  a  gross  amount  of  approximately  €  1.500.000  (net  amount 
1.125.000).  The  value  of  imports  from  Moldova  in  2006  amounted  to  around  €325 
million,  which  corresponds  to  0.03%  of  total  EU  imports.  About  €  279  million  or 
86%  of  imports  from  Moldova  entered  the  EU  free  of  duties,  either  at  MFN-zero 
rates  or  GSP-zero  rates  in  2006.  Consequently,  the  remaining  €  46  million  or  14% 
were imported at positive tariff rates. 

Of the remaining imports for which duties are still levied, the loss of tariff revenue 
will  come  from  EU  imports  of  vegetable  products  (Section  II)  and  prepared 
foodstuffs (Section IV), where eligibility for preferences is lower. About 90% of the 
imports from Moldova in Section II are cereals (HS10). In Section IV, it is mainly 
beverages,  spirits  and  vinegar  (HS22)  which  are  imported  at  positive  duties,  and 
among these the imports of wine dominate. The greatest changes in tariff revenue are 
thus likely to occur in EU imports of cereal and wine. 

The  MFN  duty  for  the  cereal  products  concerned  (HS  100190  and  HS  100300)  is 
€95/1000  kg  and  €93/1000  kg  respectively.  However,  associated  MFN  quotas  at 
€12/1000 kg and €16/1000 kg exist in parallel, in which almost all Moldovan exports 
of cereals take place. EU import duties on wine depend on the type of wine. About 
80% of the value of the imported wine faces a duty of €13.1/hectolitre. Remaining 
imports come in at a duty of €15.4/hectolitre and €18.6/hectolitre. Assuming that the 
quantities  of  cereals  (wheat  26  801  tons,  barley  23  275  tons)  and  wine  (65  370 
hectolitres) imported to the EU in 2006 would be subject to tariff free quotas under 
the proposed Regulation, the potential loss of tariff revenue is estimated to be in the 

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range of €1.5 million. This figure corresponds to less than 0.5% of the total value of 
EU  imports  from  Moldova  and  less  than  a  tenth  of  a  percent  of  total  EU  tariff 
revenue. 

Introducing  ATP's  for  Moldova  might  also  generate  exports  in  product  categories 
included  in  the  proposal,  which  have  not  identified  in  this  estimate,  because 
hypothetical  revenue  that  could  have  been  generated  by  future  exports  cannot  be 
considered as loss of tariff revenue. 

EN 

18 

   EN