Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL introducing emergency autonomous trade preferences for Pakistan
Date: 2010-10-07
Institutions: European Commission
Subjects: Combined Nomenclature, Pakistan, common commercial policy, cooperation policy, customs regulations, customs territory (EU), customs union, development policy, legal code, simplification of formalities

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EUROPEAN COMMISSION 

Brussels, 7.10.2010 
COM(2010) 552 final 

2010/0289 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

introducing emergency autonomous trade preferences for Pakistan  

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EXPLANATORY MEMORANDUM 

Against  the  background  of  the  unprecedented  and  devastating  floods  in  Pakistan,  the 
European  Council  at  its  meeting  on  16  September  mandated  Ministers  to  agree  urgently  a 
comprehensive package of short, medium and longer term measures which will help underpin 
Pakistan's recovery and future development. These should, inter alia, include ambitious trade 
measures  granting,  exclusively  to  Pakistan,  increased  market  access  to  the  EU  through  the 
immediate and time limited reduction of duties on key imports from Pakistan. 

The  European  Council  invited  the  Commission  to  present  in  October  a  proposal  for  a 
Regulation  of  the  European  Parliament  and  of  the  Council  to  unilaterally  suspend  duties  on 
certain imports from Pakistan for a limited period of time.  

The trade concession to be offered to Pakistan need to represent a credible effort by the EU 
and  bring  about  meaningful  economic  benefits  to  Pakistan  while  taking  into  account 
sensitivities of the EU industries, as well as other WTO members, and in particular those of 
least developed countries.  

60% of Pakistan's exports to the EU are textiles and clothing. Consequently, a large number 
of products proposed for liberalisation are textiles and clothing. Yet, since the product scope 
should  be  as  broad  as  possible,  it  also  includes  other  industrial  and  agricultural  products  in 
order not to undermine Pakistan's efforts to diversify its industries and exports base.  

A list of 75 dutiable products lines of importance for Pakistan's exports has been established. 
The  selected  product  lines  amount  to  almost  €  900  million  in  import  value,  accounting  for 
about 27% of EU imports from Pakistan (€ 3.3  billion). Liberalising these 75 lines, of which 
one product line (ethanol) would be subject to an annual tariff rate quota of 100 000 tonnes 
based on past imports, would result in an estimated increase in EU imports from Pakistan of 
around  € 100 million  per  year  compared  to  2009,  while  lowering  tariff  revenue  for  the  EU 
budget  by  slightly  more  than  €  80  million.  This  in crease  in  EU  imports  is  relatively  small 
given  the  current  overall  value  of  imports  of  these  products  of  close  to  €  15  billion,  out  of 
which  nearly  €  4  billion  already  enters  the  EU  free  of  duties.  Direct  or  indirect  effects  on 
employment will be limited given that the increase in imports is low compared to current level 
of EU production (0.5%), and would also be compensated by gains through lower prices on 
the imported items. Additional support to EU industry, if needed, can also be made available 
under the European Globalisation Adjustment Fund. 

At the same time, the EU will also have to request an exemption from its obligations in the 
World Trade Organisation (WTO). An EU decision to grant Pakistan trade preferences would 
be  in  breach  of  the  basic  principle  of  GATT  Articles  I:1  (Most  favoured  nation  principle  - 
MFN)  as  these  preferences  would  not  be  granted  to  other  WTO  Members,  and  XIII  on  the 
non-discriminatory  administration  of  quantitative  restrictions.  The  EU  will  thus  have  to 
request from the WTO a waiver from GATT Articles I and XIII. This request will have to be 
adopted  by  the  WTO  General  Council  in  accordance  with  Article  IX  of  the  Agreement 
establishing the WTO.  

Article  8  of  this  Regulation  creates  procedures  under  which  implementing  acts  should  be 
adopted. These provisions can be revised to bring them in line with the future regulation to be 
adopted  pursuant  to  Article  291  TFEU  on  the  control  of  the  Commission's  exercise  of 
implementing powers. In the event that the present proposal is adopted before the Regulation 
on  the  control  of  the  Commission's  exercise  of  implementing  powers  enters  into  force,  the 
Commission envisages that it will be automatically updated to refer to the Regulation adopted 
pursuant to Article 291 by operation of that proposal. 

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2010/0289 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

introducing emergency autonomous trade preferences for Pakistan  

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  relationship  between  the  European  Union  and  the  Islamic  Republic  of  Pakistan 
(hereinafter  referred  to  as  Pakistan)  builds  on  the  Cooperation  Agreement  which 
entered into force on 1 September 20041. One of its main objectives is to secure the 
conditions  for  and  to  promote  the  increase  and  development  of  trade  between  the 
Parties. 

In July and August 2010, following heavy monsoon rains, devastating floods affected 
extensive regions of Pakistan, notably the areas of Balochistan, Khyber Pakhtunkhwa, 
Punjab, Sindh and Gilgit-Baltistan. According to United Nations sources, the flooding 
affected  some  20  million  people  and  20  per  cent  of  Pakistan's  land,  equivalent  to  at 
least 160,000 square kilometres, and leaving up to 12 million people in need of urgent 
humanitarian aid.  

Humanitarian aid is of course the primary instrument in this kind of situation and the 
Union has been at the forefront in this field since the beginning of the emergency. 

It will be important to use all available means to support Pakistan's recovery from this 
emergency and progress towards future development. 

The European Council, in a Declaration on Pakistan of 16 September 2010, resolved 
to mandate Ministers to agree urgently on a comprehensive package of short, medium 
and  longer  terms  measures  which  will  help  underpin  Pakistan's  recovery  and  future 
development,  comprising  inter  alia  ambitious  trade  measures  essential  for  economic 
recovery and growth.  

1 

OJ L 378, 23.12.2004, p. 22. 

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(6) 

(7) 

(8) 

(9) 

In  particular,  the  European  Council  underlined  its  firm  commitment  to  grant 
exclusively  to  Pakistan  increased  market  access  to  the  Union  through  the  immediate 
and time limited reduction of duties on key imports from Pakistan. 

It  is  therefore  appropriate  to  extend  autonomous  trade  preferences  to  Pakistan  by 
suspending for a limited period of time all tariffs for certain products of export interest 
to Pakistan. The provision of these trade preferences would not cause any meaningful 
adverse effects on the domestic market of the Union and would not affect negatively 
least developed Members of the World Trade Organisation (WTO). 

The  autonomous  trade  preferences  will  be  either  in  the  form  of  an  exemption  from 
customs duties upon import in the Union or in the form of tariff-rate quotas.  

Entitlement  to  benefit  from  the  autonomous  trade  preferences  is  conditional  on 
Pakistan'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 
Union in order to prevent any risk of fraud. Serious and systematic violations of  the 
conditions  for  the  entitlement  to  the  preferential  arrangement,  fraud  or  failure  to 
provide  administrative  cooperation  for  the  verification  of  origin  of  goods  should 
constitute  reasons  for  a  temporary  suspension  of  the  preferences.  In  this  respect,  the 
Commission should be permitted to adopt, if necessary, such temporary measures. 

(10)  For the purposes of defining the concept of originating products, certification of origin 
and  administrative  cooperation  procedures,  Title  IV,  Chapter  2,  Section  1  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 Code2 should apply. However, as regards cumulation of origin, 
only  materials  originating  in  the  European  Union  should  be  allowed  to  be  used  for 
these  purposes.  Regional  cumulation  and  other  types  of  cumulation  except  that  with 
the  EU  originating  materials  should  not  apply  in  relation  to  the  determination  of 
originating status of products covered by the present autonomous preferences in order 
to ensure that sufficient transformation takes place in Pakistan. 

(11)  Extending autonomous trade preferences to Pakistan would require a waiver from the 
obligations of the Union under Articles I and XIII of the General Agreement on Tariffs 
and  Trade  1994  (GATT)  pursuant  to  Article  IX  of  the  Agreement  establishing  the 
WTO.  

(12)  Given  the  urgency  of  the  situation  in  Pakistan,  the  Regulation  should  apply  as  of  1 
January 2011, provided that the WTO has approved the request from the Union for the 
waiver from its obligations under GATT Articles I and XIII.  

(13) 

In order to ensure an immediate and sustainable impact on the economic recovery of 
Pakistan in the aftermath of the floods it is recommended to limit the duration of the 
trade preferences until 31 December 2013.  

2 

OJ L 253, 11.10.1993, p. 1.  

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(14)  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 Commission3. 

(15)  Amendments  to  the  Combined  Nomenclature  may  not  give  rise  to  any  substantive 
changes  to  the  nature  of  the  autonomous  trade  preferences.  The  Commission  should 
therefore be empowered to adopt delegated acts in accordance with Article 290 of the 
Treaty on the Functioning of the European Union for the purpose of making necessary 
amendments and technical adaptations to the list of goods for which the autonomous 
trade preference applies,  

HAVE ADOPTED THIS REGULATION: 

Article 1 
Preferential arrangements 

1. 

2. 

Products originating in Pakistan included in Annex I shall be exempt from customs 
duties upon import into the Union.  

Products  originating  in  Pakistan  and  included  in  Annex  II  shall  be  admitted  for 
import into the Union subject to the special provisions laid down in Article 3. 

Article 2 
Conditions for entitlement to the preferential arrangements 

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

(a) 

(b) 

(c) 

compliance with the rules of origin of products and the procedures related thereto as 
provided  for  in  Title  IV,  Chapter  2,  Section  1,  sub-section  1  and  2  of  Regulation 
(EEC) No 2454/93. However, as regards cumulation of origin for the purpose of the 
determination  of  originating  status  of  products  covered  by  the  arrangements 
introduced in Article 1, only cumulation with the materials originating in the EU is 
allowed.  Regional  cumulation  and  other  types  of  cumulation  with  the  exception  of 
the cumulation with the EU originating materials, is not allowed; 

compliance with the methods of administrative cooperation as provided for in Title 
IV, Chapter 2, Section 1, sub-section 3 of Regulation (EEC) No 2454/93; 

certificates  of  origin  Form  A  issued  by  the  competent  authorities  of  Pakistan 
pursuant  to  this  Regulation  should  bear  the  following  endorsement  in  box  4 
“Autonomous measure – Regulation (EU) No …/20104”. 

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4 

OJ L 184, 17.7.1999, p. 23.  
OJ L xxx, xx.xx.xxxx, p. x. 

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Article 3 
Tariff quotas 

1. 

2. 

Products  listed  in  Annex  II  shall  be  admitted  for  import  into  the  Union  with  the 
exemption of customs duties within the limits of Union tariff quotas as set out in that 
Annex. 

The  tariff  quotas  referred  to  in  paragraph  1  and  listed  in  Annex  II  shall  be 
administered by the Commission in accordance with Articles 308a, 308b and 308c of 
Regulation (EEC) No 2454/93.  

Article 4 
Amendment of the Annexes 

The  Commission  may  adopt  delegated  acts  in  accordance  with  Article  5  for  the  purpose  of 
amending the Annexes in order to introduce amendments and technical adjustments necessary 
following amendments to the Combined Nomenclature codes and to the TARIC subdivisions. 

1. 

2. 

3. 

1. 

2. 

3. 

Article 5 
Exercise of the delegation 

The power to adopt the delegated acts referred to in Article 4 shall be conferred on 
the Commission for an indeterminate period of time. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

The powers to adopt delegated acts are conferred on the Commission subject to the 
conditions laid down in Articles 6 and 7. 

Article 6 
Revocation of the delegation 

The delegation of power referred to in Article 4 may be revoked at any time by the 
European Parliament or by the Council. 

The  institution  which  has  commenced  internal  procedure  for  deciding  whether  to 
revoke the delegation of power shall endeavour to inform the other institution and the 
Commission  within  a  reasonable  time  before  the  final  decision  is  taken,  indicating 
the  delegated  powers  which  could  be  subject  to  revocation  and  the  reasons  for  a 
revocation. 

The decision of revocation shall put an end to the delegation of the powers specified 
in that decision. It shall take effect immediately or at a later date specified therein. It 
shall  not  affect  the  validity  of  the  delegated  acts  already  in  force.  It  shall  be 
published in the Official Journal of the European Union. 

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1. 

2. 

3. 

1. 

2. 

1. 

Article 7 
Objections to delegated acts 

The European Parliament and the Council may object to the delegated act within a 
period of two months from the date of notification. At the initiative of the European 
Parliament or the Council this period shall be extended by one month. 

If,  on  expiry  of  that  period,  neither  the  European  Parliament  nor  the  Council  has 
objected  to  the  delegated  act  it  shall  be  published  in  the  Official  Journal  of  the 
European Union and shall enter into force on the date stated therein. 

The  delegated act may be  published  in the Official Journal  of the  European  Union 
and enter into force before the expiry of that period if the European Parliament and 
the  Council  have  both  informed  the  Commission  of  their  intention  not  to  raise 
objections.  

If the European Parliament or the Council objects to a delegated act, it shall not enter 
into  force.  The  institution  which  objects  shall  state  the  reasons  for  objecting  to  the 
delegated act. 

Article 8 
Committee procedure 

The Commission shall be assisted by the Customs Code Committee. 

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 set at one month. 

Article 9 
Temporary suspension 

Where  the  Commission  finds  that  there  is  sufficient  evidence  of  failure  to  comply 
with the conditions set out in Article 2 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) 

informed the Committee; 

(b) 

(c) 

called  on  the  Member  States  to  take  such  precautionary  measures  as  are 
necessary in order to safeguard the financial interests of the Union or to secure 
compliance by Pakistan with Article 2(1); 

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

d) 

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

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2. 

3. 

4. 

1. 

2. 

3. 

4. 

5. 

The  measures  referred  to  in  paragraph  1  shall  be  adopted  in  accordance  with  the 
procedure referred to in Article 6.  

On  conclusion  of  the  period  of  suspension,  the  Commission  shall  decide  either  to 
terminate the provisional suspension measure 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 the extension of suspension measures. 

Article 10 
Entry into force and application 

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

It shall apply from 1 January 2011 provided that the tariff preferences provided for in 
this Regulation are permitted by a waiver granted by the World Trade Organisation. 
In case the World Trade Organisation grants such a waiver after 1 January 2011, it 
shall apply from such later date on which the waiver takes effect.  

The Commission shall publish a notice in the Official Journal of the European Union 
to inform operators of the date on which the waiver is granted by the World Trade 
Organization. If after 1 January 2011 the date specified shall be the date from which 
the tariff preferences apply pursuant to the second sentence of paragraph 2. 

This Regulation shall apply until 31 December 2013. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX I 

Products for which the customs duty is exempted 

The  products  on  which  the  measures  are  to  apply  are  identified  by  their  eight-digit  CN  codes.  The 
description of these codes can be found in Annex I to Council Regulation (EEC) No 2658/87 of 23 July 
1987 on the tariff and statistical nomenclature and on the Common Customs Tariff. The description of 
the CN codes is given for information purposes only. 

CN Code  Description 

07123900 

41079210 

41079910 

42032100 

DRIED MUSHROOMS AND TRUFFLES, WHOLE, CUT, SLICED, BROKEN OR IN POWDER, BUT 
NOT FURTHER PREPARED (EXCL. MUSHROOMS OF THE GENUS "AGARICUS", WOOD 
EARS (AURICULARIA SPP) AND JELLY FUNGI (TREMELLA SPP) 
GRAIN SPLITS LEATHER "INCL. PARCHMENT-DRESSED LEATHER", OF THE PORTIONS, 
STRIPS OR SHEETS OF HIDES AND SKINS OF BOVINE "INCL. BUFFALO" ANIMALS, 
FURTHER PREPARED AFTER TANNING OR CRUSTING, WITHOUT HAIR ON (EXCL. 
CHAMOIS LEATHER, PATENT LEATHER AND PATENT LAMINATED LEATHER 
LEATHER (INCL. PARCHMENT-DRESSED LEATHER) OF THE PORTIONS, STRIPS OR 
SHEETS OF HIDES AND SKINS OF BOVINE "INCL. BUFFALO" ANIMALS, FURTHER 
PREPARED AFTER TANNING OR CRUSTING, WITHOUT HAIR ON (EXCL. UNSPLIT FULL 
GRAINS LEATHER, GRAIN SPLITS LEATHER, CHAMOIS 
SPECIALLY DESIGNED GLOVES FOR USE IN SPORT, OF LEATHER OR COMPOSITION 
LEATHER 

42032910  PROTECTIVE GLOVES OF LEATHER OR COMPOSITION LEATHER, FOR ALL TRADES 

42032991 

42032999 

52051200 

52052200 

52052300 

52052400 

52053200 

52054200 

52081190 

52081216 

52081219 

MEN'S AND BOYS' GLOVES, MITTENS AND MITTS, OF LEATHER OR COMPOSITION 
LEATHER (EXCL. SPECIAL SPORTS GLOVES AND PROTECTIVE GLOVES FOR ALL TRADES) 
GLOVES, MITTENS AND MITTS, OF LEATHER OR COMPOSITION LEATHER (EXCL. MEN'S 
AND BOYS', SPECIAL SPORTS GLOVES AND PROTECTIVE GLOVES FOR ALL TRADES) 
SINGLE COTTON YARN, OF UNCOMBED FIBRES, CONTAINING >= 85% COTTON BY WEIGHT 
AND WITH A LINEAR DENSITY OF 232,56 DECITEX TO < 714,29 DECITEX "> MN 14 TO MN 
43" (EXCL. SEWING THREAD AND YARN PUT UP FOR RETAIL SALE)" 
SINGLE COTTON YARN, OF COMBED FIBRES, CONTAINING >= 85% COTTON BY WEIGHT 
AND WITH A LINEAR DENSITY OF 232,56 DECITEX TO < 714,29 DECITEX "> MN 14 TO MN 
43" (EXCL. SEWING THREAD AND YARN PUT UP FOR RETAIL SALE)" 
SINGLE COTTON YARN, OF COMBED FIBRES, CONTAINING >= 85% COTTON BY WEIGHT 
AND WITH A LINEAR DENSITY OF 192,31 DECITEX TO < 232,56 DECITEX "> MN 43 TO MN 
52" (EXCL. SEWING THREAD AND YARN PUT UP FOR RETAIL SALE)" 
SINGLE COTTON YARN, OF COMBED FIBRES, CONTAINING >= 85% COTTON BY WEIGHT 
AND WITH A LINEAR DENSITY OF 125 DECITEX TO < 192,31 DECITEX "> MN 52 TO MN 80" 
(EXCL. SEWING THREAD AND YARN PUT UP FOR RETAIL SALE)" 
MULTIPLE "FOLDED" OR CABLED COTTON YARN, OF UNCOMBED FIBRES, CONTAINING >= 
85% COTTON BY WEIGHT AND WITH A LINEAR DENSITY OF 232,56 DECITEX TO < 714,29 
DECITEX "> MN 14 TO MN 43" PER SINGLE YARN (EXCL. SEWING THREAD AND YARN PUT 
UP FOR RETAIL SALE)" 
MULTIPLE "FOLDED" OR CABLED COTTON YARN, OF COMBED FIBRES, CONTAINING >= 
85% COTTON BY WEIGHT AND WITH A LINEAR DENSITY OF 232,56 DECITEX TO < 714,29 
DECITEX "> MN 14 TO MN 43" PER SINGLE YARN (EXCL. SEWING THREAD AND YARN PUT 
UP FOR RETAIL SALE)" 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING <= 100 G/M2, UNBLEACHED (EXCL. FABRICS FOR THE MANUFACTURE OF 
BANDAGES, DRESSINGS AND MEDICAL GAUZES) 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 100 G TO 130 G/M2, UNBLEACHED, WITH A WIDTH OF <= 165 CM 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 100 G TO 130 G/M2, UNBLEACHED, WITH A WIDTH OF > 165 CM 

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52081300 

52081900 

52082190 

52082219 

52082296 

52082900 

52083900 

52085100 

52085200 

52085990 

52091100 

52091200 

52091900 

52092200 

52092900 

52093200 

52093900 

52111200 

54078100 

54078200 

55095300 

WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
<= 200 G/M2, IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. CROSS TWILL, 
UNBLEACHED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
<= 200 G/M2, UNBLEACHED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, 
INCL. CROSS TWILL, AND PLAIN WOVEN FABRICS) 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING <= 100 G/M2, BLEACHED (EXCL. FABRICS FOR THE MANUFACTURE OF 
BANDAGES, DRESSINGS AND MEDICAL GAUZES) 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 100 G TO 130 G/M2, BLEACHED, WITH A WIDTH OF > 165 CM 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 130 G TO 200 G/M2, BLEACHED, WITH A WIDTH OF <= 165 CM 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
<= 200 G/M2, BLEACHED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. 
CROSS TWILL, AND PLAIN WOVEN FABRICS) 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
<= 200 G/M2, DYED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. 
CROSS TWILL, AND PLAIN WOVEN FABRICS) 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING <= 100 G/M2, PRINTED 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 100 G TO 200 G/M2, PRINTED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
<= 200 G/M2, PRINTED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. 
CROSS TWILL, AND PLAIN WOVEN FABRICS) 
PLAIN WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND 
WEIGHING > 200 G/M2, UNBLEACHED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. CROSS TWILL, 
UNBLEACHED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, UNBLEACHED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, 
INCL. CROSS TWILL, AND PLAIN WOVEN FABRICS) 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. CROSS TWILL, BLEACHED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, BLEACHED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. 
CROSS TWILL, AND PLAIN WOVEN FABRICS) 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. CROSS TWILL, DYED 
WOVEN FABRICS OF COTTON, CONTAINING >= 85% COTTON BY WEIGHT AND WEIGHING 
> 200 G/M2, DYED (EXCL. THOSE IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. 
CROSS TWILL, AND PLAIN WOVEN FABRICS) 
WOVEN FABRICS OF COTTON, CONTAINING PREDOMINANTLY, BUT < 85% COTTON BY 
WEIGHT, MIXED PRINCIPALLY OR SOLELY WITH MAN-MADE FIBRES AND WEIGHING > 200 
G/M2, IN THREE-THREAD OR FOUR-THREAD TWILL, INCL. CROSS TWILL, UNBLEACHED 
WOVEN FABRICS OF YARN CONTAINING PREDOMINANTLY, BUT < 85% SYNTHETIC 
FILAMENT BY WEIGHT, INCL. MONOFILAMENT OF >= 67 DECITEX AND A MAXIMUM 
DIAMETER OF <= 1 MM, MIXED PRINCIPALLY OR SOLELY WITH WOOL, UNBLEACHED OR 
BLEACHED 
WOVEN FABRICS OF YARN CONTAINING PREDOMINANTLY, BUT < 85% SYNTHETIC 
FILAMENT BY WEIGHT, INCL. MONOFILAMENT OF >= 67 DECITEX AND A MAXIMUM 
DIAMETER OF <= 1 MM, MIXED PRINCIPALLY OR SOLELY WITH WOOL, DYED 
YARN CONTAINING PREDOMINANTLY, BUT < 85% POLYESTER STAPLE FIBRES BY 
WEIGHT, MIXED PRINCIPALLY OR SOLELY WITH COTTON (EXCL. SEWING THREAD AND 
YARN PUT UP FOR RETAIL SALE) 

EN 

10 

   EN 

55131120 

55132100 

55134100 

61012090 

61033200 

61034200 

61072100 

61083100 

61099020 

61112090 

PLAIN WOVEN FABRICS CONTAINING PREDOMINANTLY, BUT < 85% POLYESTER STAPLE 
FIBRES BY WEIGHT, MIXED PRINCIPALLY OR SOLELY WITH COTTON AND WEIGHING <= 
170 G/M2, UNBLEACHED OR BLEACHED, WITH A WIDTH OF <= 165 CM 
PLAIN WOVEN FABRICS CONTAINING PREDOMINANTLY, BUT < 85% POLYESTER STAPLE 
FIBRES BY WEIGHT, MIXED PRINCIPALLY OR SOLELY WITH COTTON AND WEIGHING <= 
170 G/M2, DYED 
PLAIN WOVEN FABRICS CONTAINING PREDOMINANTLY, BUT < 85% POLYESTER STAPLE 
FIBRES BY WEIGHT, MIXED PRINCIPALLY OR SOLELY WITH COTTON AND WEIGHING <= 
170 G/M2, PRINTED 
MEN'S OR BOYS' ANORAKS, INCL. SKI JACKETS, WINDCHEATERS, WIND-JACKETS AND 
SIMILAR ARTICLES OF COTTON, KNITTED OR CROCHETED (EXCL. SUITS, ENSEMBLES, 
JACKETS, BLAZERS, BIB AND BRACE OVERALLS AND TROUSERS) 
MEN'S OR BOYS' JACKETS AND BLAZERS OF COTTON, KNITTED OR CROCHETED (EXCL. 
WIND-JACKETS AND SIMILAR ARTICLES) 
MEN'S OR BOYS' TROUSERS, BIB AND BRACE OVERALLS, BREECHES AND SHORTS OF 
COTTON, KNITTED OR CROCHETED (EXCL. SWIMWEAR AND UNDERPANTS) 
MEN'S OR BOYS' NIGHTSHIRTS AND PYJAMAS OF COTTON, KNITTED OR CROCHETED 
(EXCL. VESTS AND SINGLETS) 
WOMEN'S OR GIRLS' NIGHTDRESSES AND PYJAMAS OF COTTON, KNITTED OR 
CROCHETED (EXCL. T-SHIRTS, VESTS AND NEGLIGES) 
T-SHIRTS, SINGLETS AND OTHER VESTS OF WOOL OR FINE ANIMAL HAIR OR MAN-MADE 
FIBRES, KNITTED OR CROCHETED 
BABIES' GARMENTS AND CLOTHING ACCESSORIES, OF COTTON, KNITTED OR 
CROCHETED (EXCL. GLOVES, MITTENS, MITTS AND HATS) 

61121200  TRACK-SUITS OF SYNTHETIC FIBRES, KNITTED OR CROCHETED 

61159500 

61161020 

61161080 

61169200 

61169300 

62019300 

62034319 

62042280 

62046231 

62046290 

62079100 

62089100 

FULL-LENGTH OR KNEE-LENGTH STOCKINGS, SOCKS AND OTHER HOSIERY, INCL. 
FOOTWEAR WITHOUT APPLIED SOLES, OF COTTON, KNITTED OR CROCHETED (EXCL. 
GRADUATED COMPRESSION HOSIERY, PANTYHOSE AND TIGHTS, WOMEN'S FULL-
LENGTH OR KNEE-LENGTH STOCKINGS, MEASURING PER SINGLE YARN< 67 DECITEX 
GLOVES, IMPREGNATED, COATED OR COVERED WITH RUBBER, KNITTED OR 
CROCHETED 
MITTENS AND MITTS, IMPREGNATED, COATED OR COVERED WITH PLASTICS OR RUBBER, 
KNITTED OR CROCHETED, AND GLOVES, IMPREGNATED, COATED OR COVERED WITH 
PLASTICS, KNITTED OR CROCHETED 
GLOVES, MITTENS AND MITTS, OF COTTON, KNITTED OR CROCHETED (EXCL. 
IMPREGNATED, COATED OR COVERED WITH PLASTICS OR RUBBER, AND FOR BABIES) 
GLOVES, MITTENS AND MITTS, OF SYNTHETIC FIBRES, KNITTED OR CROCHETED (EXCL. 
IMPREGNATED, COATED OR COVERED WITH PLASTICS OR RUBBER, AND FOR BABIES) 
MEN'S OR BOYS' ANORAKS, WINDCHEATERS, WIND JACKETS AND SIMILAR ARTICLES, OF 
MAN-MADE FIBRES (NOT KNITTED OR CROCHETED AND EXCL. SUITS, ENSEMBLES, 
JACKETS, BLAZERS, TROUSERS AND TOPS OF SKI SUITS) 
MEN'S OR BOYS' TROUSERS AND BREECHES OF SYNTHETIC FIBRES (EXCL. KNITTED OR 
CROCHETED, INDUSTRIAL AND OCCUPATIONAL, BIB AND BRACE OVERALLS AND 
UNDERPANTS) 
WOMEN'S OR GIRLS' ENSEMBLES, OF COTTON (NOT KNITTED OR CROCHETED AND EXCL. 
INDUSTRIAL AND OCCUPATIONAL CLOTHING, TRACKSUITS, SKI ENSEMBLES AND 
SWIMWEAR) 
WOMEN'S OR GIRLS' COTTON DENIM TROUSERS AND BREECHES (EXCL. INDUSTRIAL 
AND OCCUPATIONAL, BIB AND BRACE OVERALLS AND PANTIES) 
WOMEN'S OR GIRLS' COTTON SHORTS (EXCL. KNITTED OR CROCHETED, PANTIES AND 
SWIMWEAR) 
MEN''S OR BOYS'' SINGLETS AND OTHER VESTS, BATHROBES, DRESSING GOWNS AND 
SIMILAR ARTICLES OF COTTON (EXCL. KNITTED OR CROCHETED, UNDERPANTS, 
NIGHTSHIRTS AND PYJAMAS) 
WOMEN'S OR GIRLS' SINGLETS AND OTHER VESTS, BRIEFS, PANTIES, NEGLIGES, 
BATHROBES, DRESSING GOWNS, HOUSECOATS AND SIMILAR ARTICLES OF COTTON 
(EXCL. KNITTED OR CROCHETED, SLIPS, PETTICOATS, NIGHTDRESSES AND PYJAMAS, 
BRASSIERES, GIRDLES, CORSETS AND SIMILAR ARTICLES 

EN 

11 

   EN 

62114290  WOMEN'S OR GIRLS' GARMENTS, OF COTTON, N.E.S. (NOT KNITTED OR CROCHETED) 

62114310 

62160000 

63026000 

63029100 

63039100 

63039290 

63039990 

63049200 

63071090 

63079099 

64039993 

64039996 

64039998 

WOMEN'S OR GIRLS' APRONS, OVERALLS, SMOCK-OVERALLS AND OTHER INDUSTRIAL 
AND OCCUPATIONAL CLOTHING, OF MAN-MADE FIBRES (EXCL. KNITTED OR CROCHETED) 
GLOVES, MITTENS AND MITTS, OF ALL TYPES OF TEXTILE MATERIALS (EXCL. KNITTED OR 
CROCHETED AND FOR BABIES) 
TOILET LINEN AND KITCHEN LINEN, OF TERRY TOWELLING OR SIMILAR TERRY FABRICS 
OF COTTON (EXCL. FLOORCLOTHS, POLISHING CLOTHS, DISHCLOTHS AND DUSTERS) 
TOILET LINEN AND KITCHEN LINEN OF COTTON (EXCL. OF TERRY FABRICS, 
FLOORCLOTHS, POLISHING CLOTHS, DISHCLOTHS AND DUSTERS) 
CURTAINS, INCL. DRAPES, AND INTERIOR BLINDS, CURTAIN OR BED VALANCES OF 
COTTON (EXCL. KNITTED OR CROCHETED, AWNINGS AND SUNBLINDS) 
CURTAINS, INCL. DRAPES, AND INTERIOR BLINDS, CURTAIN OR BED VALANCES OF 
SYNTHETIC FIBRES (EXCL. NONWOVENS, KNITTED OR CROCHETED, AWNINGS AND 
SUNBLINDS) 
CURTAINS, INCL. DRAPES, AND INTERIOR BLINDS, CURTAIN OR BED VALANCES OF 
TEXTILE MATERIALS (EXCL. OF COTTON AND SYNTHETIC FIBRES OR OF NONWOVENS, 
KNITTED OR CROCHETED, AWNINGS AND SUNBLINDS) 
ARTICLES FOR INTERIOR FURNISHING, OF COTTON (EXCL. KNITTED OR CROCHETED, 
BLANKETS AND TRAVELLING RUGS, BEDLINEN, TABLE LINEN, TOILET LINEN, KITCHEN 
LINEN, CURTAINS, INCL. DRAPES, INTERIOR BLINDS, CURTAIN OR BED VALANCES, 
BEDSPREADS, LAMPSHADES AND ART 
FLOORCLOTHS, DISHCLOTHS, DUSTERS AND SIMILAR CLEANING CLOTHS, OF ALL TYPES 
OF TEXTILE MATERIALS (EXCL. KNITTED OR CROCHETED AND NONWOVENS) 
MADE-UP ARTICLES OF TEXTILE MATERIALS, INCL. DRESS PATTERNS, N.E.S. (EXCL. OF 
FELT, AND KNITTED OR CROCHETED) 
FOOTWEAR NON-IDENTIFIABLE AS MEN'S OR WOMEN'S FOOTWEAR, WITH OUTER SOLES 
OF RUBBER, PLASTICS OR COMPOSITION LEATHER AND UPPERS OF LEATHER, WITH IN-
SOLES OF A LENGTH OF >= 24 CM (EXCL. FOOTWEAR COVERING THE ANKLE; WITH A 
PROTECTIVE METAL TOECAP 
MEN'S FOOTWEAR WITH OUTER SOLES OF RUBBER, PLASTICS OR COMPOSITION 
LEATHER, WITH UPPERS OF LEATHER (NOT COVERING THE ANKLE), WITH IN-SOLES OF A 
LENGTH >= 24 CM (EXCL. 6403.11-00 TO 6403.40.00, 6403.99.11, 6403.99.36, 6403.99.50) 
FOOTWEAR WITH OUTER SOLES OF RUBBER, PLASTICS OR COMPOSITION LEATHER AND 
UPPERS OF LEATHER, WITH IN-SOLES OF A LENGTH OF >= 24 CM, FOR WOMEN (EXCL. 
FOOTWEAR COVERING THE ANKLE; WITH A PROTECTIVE METAL TOECAP; WITH A MAIN 
SOLE OF WOOD, WITHOUT IN-SOLE 

EN 

12 

   EN 

 
ANNEX II 

Product subject to annual duty free tariff quotas referred to in Article 3. 

The  products  on  which  the  measures  are  to  apply  are  identified  by  their  eight-digit  CN  codes.  The 
description of these codes can be found in Annex I to Council Regulation (EEC) No 2658/87 of 23 July 
1987 on the tariff and statistical nomenclature and on the Common Customs Tariff. The description of 
the CN codes is given for information purposes only. 

Order No 

CN Code 

Description 

2011 

2012 

2013 

09.2401 

2207 1000 

UNDENATURED 
ETHYL 
ALCOHOL,  OF 
ACTUAL 
ALCOHOLIC 
STRENGTH  OF 
>= 80% 

100 
tonnes 

000 

100 
tonnes 

000 

100 
tonnes 

000 

EN 

13 

   EN 

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

1. 

NAME OF THE PROPOSAL: 

Regulation  of  the  European  Parliament  and  of  the  Council  introducing  emergency 
autonomous trade preferences for Pakistan 

2. 

BUDGET LINES: 

Chapter 12, Article 120  

Amount budgeted for the year concerned: € 14 079.7 million (B2010) 

3. 

FINANCIAL IMPACT  

(cid:133) 

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 

Revenue5 

2010

2011 

Article 120 

Impact on own resources 

- 

- 61.8 

Situation following action 

2012 

2013 

[n+3] 

[n+4] 

[n+5] 

Article 120… 

 - 61.8 

 - 61.8 

5 

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. 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
4. 

ANTI-FRAUD MEASURES 

The  Regulation  would  make  the  entitlement  to  the  preferential  arrangements  by  Pakistan 
subject  to  Pakistan's  compliance  with  the  rules  of  origin  of  products  and  the  procedures 
related thereto, compliance with the methods of administrative cooperation, and involvement 
in effective administrative cooperation with the Union in order to prevent any risk of fraud. 

5. 

OTHER REMARKS 

The loss in tariff revenue is calculated as the difference between the tariff revenue based on 
current EU imports and tariffs vis-à-vis Pakistan (the proposal covers less than € 900million 
worth of EU imports from Pakistan) and the tariff revenue which would be obtained if these 
imports  from  Pakistan  were  liberalised.  This  yields  an  estimated  loss  in  tariff  revenue  of 
€ 77.6 million. To this figure one needs to add tr ade diversion (by country and product) which 
might result in a loss of revenue of € 6.7 million.  

In total the gross loss in customs duties amounts to € 82.4 million, while the net loss would be 
25%  lower  (Member  States'  collection  costs)  at  € 61.8 million.  These  figures  build  on  the 
assumption that Pakistan currently fully makes use of its preferential access to the EU market. 
To  convert  these  figures  into  annual  figures,  it  is  assumed  that  the  underlying  trade  flows 
remain constant.  

EN 

15 

   EN