CELEX: 51988PC0129
Language: en
Date: 1988-03-18
Title: Proposal for a COUNCIL REGULATION (EEC) on the application of Decision of the EEC-(A) Joint Committee supplementing and amending Annexes I and III to Protocol No 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 129
Vol. 1988/0039
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(88 ) 129 final
                                                     Brussels , 1® March 1988
                                   Proposal for a
                             COUNCIL REGULATION ( EEC )
 on the application of Decision                of the EEC-(A ) Joint Committee
       supplementing and amending Annexes I and III to Protocol No 3
          concerning the definition of the concept of "originating
             products " and methods of administrative cooperation
                          ( presented by the Commission )
                                                     M?' A              N
                                                   м
                                                   И г !> -
                                                    Vv^ Sorti du ^>ecïV
 ---pagebreak---                               EXPLANATORY MEMORANDUM
This proposal for a decision by the EEC-EFTA Joint Committee covers two
points :
1.   A solution to the problem of the origin of used tyres collected in the
     Community    and sent to an EFTA country , or vice versa , for retreading or
     recycling as waste . At the moment the sorting of these used tyres of
     mixed origins poses practical problems and involves substantial costs to
     the businesses concerned . It is proposed to deal with the matter by
     incorporating in Protocol No 3 a new explanatory Note 5a to Article 4(h ),
     to the effect that tyres fit only for retreading are deemed to be
     articles fit only for the recovery    of raw materials and thus they will
     be considered as " wholly obtained" .
2.   To enable the enterprises manufacturing sodium perborate ( HS heading N°
     ex 28.40 ) to continue enjoying preferential tariff treatment under the
     EEC-EFTA agreements . Nowadays , this is no longer guaranteed in all cases
     due to recent diversification of the sources of supply .
     Indeed , where the sodium perborate is manufactured from crude natural
     sodium borates ( H.S. heading 25.28 ), it obtains preferential origin
     status , as the product is subject to a change of           heading ( from
     H.S. heading 25.28 to 25.40 ). However , where the   product is manufactured
     from disodium tetraborate pentahydrate , it cannot obtain preferential
     origin status according to the present rules , as the basic product does
     not change          heading when transformed into sodium perborate .
     It is proposed to insert in the list of operations conferring originating
     status     ( Annex III to Protocol No 3 )
                                     a new rule for sodium perborate of HS
     heading No ex 28.40 stipulating that the manufacture from disodium
     tetraborate pentahydrate confers the status of originating products .
     The change in the rules has been requested by the European Council of
     Chemical Manufacturers' Federations , unanimously supported by the
     industry .
It is proposed that the new provisions come into effect on 1 July 1988 .
 ---pagebreak---                                                                                                                               3
                                                  PROPOSAL       FOR      A
                                     COUNCIL REGULATION (EEC)
                on the application of Decision No /               of the EEC- (A)           Joint Committee
                 supplementing and amending Annexes I and [ II to Protocol No 3
            concerning the definition of the concept of " ot *. g*.uaLing ptoducts "
                                and methods of administrative cooperation
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                          Joint Committee has adopted Decision No                 /
                                                                    supplementing and amending Annexes I and III
                                                                     to this Protocol ;
                                                                    Whereas it is necessary In apply that Decision in the
 Having regard to the Treaty establishing the European              Community ,
 Economic Community , and in particular Article 113
 thereof,
                                                                    HAS ADOPTED THIS REGULATION :
 Having regard to the proposal from the Commission ,
                                                                                               A rticle 2
Whereas the Agreement between the European Economic                 Decision No     /    of the EEC-       ( A ) Joint Committee
Community and 131                         P ), signed on CC ),      shall apply in the Community .
            entered into force on CD) ;
                                                                    The text of the Decision is attached to this Regulation .
 Whereas, by virtue of Article 28 of Protocol No 3
 concerning the definition of the concept of ‘originating                                      Article 2
 products’ and methods of administrative cooperation ,
 which forms an integral part of the above Agreement, the           This Regulation shall enter into force on 1 July 1988 .
                 This Regulation shall be binding in its entirety and directly applicable in all Member
                  States .
                  Done at Brussels ,
                                                                                        / or the ( . tmm il
                                                                                          The Tresident
    ( A) Austria/ Finland/ Ice Land/Norway / Sweden/ Switzer Land
    (B) the Republie o.f Austria                         22 July 1972                      r D)    1 January 197 ;
          the Republic of Finland                          5 October 1973                          1 January 197-
          the Republie of Iceland                        22  July 1972                             1 Apn l      19~
          the Kingdom of Norway                          14  May 1 9773                            1 July       19"~
          the Kingdom of Sweden                          22  July 1972                             1 January 19-3
          the Swiss Confederation                        22  July 1972                             1 January 19~
    (1 )  Austria
                            OJ No L 300, 31.12.1972, p.          2
          Finland           CJ No L 328, 28.11.1973, p .         2
          Icelano           CJ No L 301 , 31.12.1972, p .        2
          Norway            O.l No [ 171 , 77 . Of . 1 Q73 , p .
          Sweden
                           OJ No L 300, 31.1 , . 197?, p .       97
          Switzerland      0J No L 300, 31.17.1072 , p .         1 ?9
 ---pagebreak---                                Draft Decision No . . ./ 88
                            of the EEC- ( A ) Joint Committee
                                of . 1988
           supplementing and amending Annexes I and III to Protocol No 3
        concerning the definition of the concept of " originating products "
                      and methods of administrative cooperation
THE JOINT COMMITTEE ,
Having regard to the Agreement between the European Economic Community and
( B ), signed at Brussels on ( C ),
Having regard to Protocol No 3 concerning the definition of the concept of
" originating products " and methods of administrative cooperation , hereinafter
referred to as " Protocol No 3 ", and in particular Article 28 thereof ,
Whereas the origin rules applying to used tyres collected in the Community or
in ( A ) to be sent for retreading to the other contracting party should be
specified in the light of experience to eliminate certain practical problems
arising for industry and customs administrations ; whereas to this end a new
explanatory Note to Article 4(h ) should be incorporated in Protocol No 3 ;
Whereas the Protocol No 3 origin rules applying to sodium perborate falling
within           heading No ex 28.40 should be amended to take account of
changes in manufacturing techniques and the economic conditions of
international trade in the product ,
( A ) Austria , Finland , Iceland , Norway , Sweden , Switzerland
( B ) The Republic of Austria                    ( C ) 22 July 1972
      The Republic of Finland                           5 October 1973
      The Republic of Iceland                          22 July 1972
      The Kingdom of Norway                            14 Mai 1972
      The Kingdom of Sweden                            22 July 1972
      The Swiss Confederation                          22 July 1972
 ---pagebreak--- HAS DECIDED AS FOLLOWS :
                                     Article 1
Protocol No 3 to the EEC- ( A ) Agreement is hereby amended as follows :
( 1) Note 5a on Article 4(h ), the text of which is in Annex I to this
     Decision , shall be inserted between explanatory Notes 5    and 6 in Annex I
     (" Explanatory Notes ") to Protocol No 3 .
(2)  In Annex III to Protocol No 3 (" List of working or processing required to
     be carried out on non-originating materials in order that the product
     manufactured can obtain originating status "):
     - the entry for ex Chapter 28 shall be replaced by the text in Annex II
        to this Decision ;
     - HS heading No ex 28.40    and the corresponding entries , the texts of
        which are also in Annex II to this Decision , shall be inserted after HS
        headings Nos ex 28.11 and ex 28.33 , which shall remain unchanged .
                                     Article 2
This Decision shall enter into force    on 1    July   1988 .
Done at Brussels ,                                For the Joint Committee
                                                          The Chairman
 ---pagebreak---                                                             ANNEX I
                                EXPLANATORY NOTES
Note 5a -  Article 4 ( h )
In the case of used tyres , the term " used articles collected there fit only
for the recovery of raw materials " does not only cover used tyres fit only for
the recovery of raw materials but also used tyres fit only for retreading or
for use as waste .
 ---pagebreak---                                                            ANNEX II
               List of working or processing to be carried out
     on non-originating materials in order that the product manufactured
                         can obtain originating status
      HS                                            Working or processing
   Heading                 Description            carried out on non-origi¬
      No                                            nating materials that
                                                  confers originating status
      (1)                (2)                                  (3)
  ex Chap 28     Inorganic chemicals ; organic   Manufacture in which all
                 or inorganic compounds of       the materials used are
                 precious metals , of rare       classified in a heading
                 earth metals , of radioactive   other than that of the
                 elements or of isotopes ;       product . However , materials
                 except for headings Nos . ex    classified in the same
                 28.11 , ex 28.33 and ex         heading may be used
                 28.40 ; for which the rules     provided their value does
                 are set out below               not exceed 20 % of the
                                                 ex-works price of the
                                                 product
ex Chap 28.40    Sodium perborate                Manufacture from di sodium
                                                 tetraborate pentahydrate
 ---pagebreak---                                            2
            COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT
I.   What is the main reason for introducing the measure ?
     a)   Used tyre cases
          To solve the problem of the origin of used tyre cases which
          are collected in the Community or in an EFTA country for
          recycling as waste or for retreading .
          At present , the sorting of these used tyre cases of mixed
          origins causes a lot of practical problems and entails considerable
          costs for the enterprises .
     b)   Sodium perborate
          To allow the enterprises manufacturing the product to go on
          benefitting from preferential tariff treatment in the framework
          of the EEC-EFTA Agreements . Nowadays , this is no longer
          guaranteed in all cases due to recent diversification of the
          sources of supply .
          Where the sodium perborate is manufactured from crude natural
          sodium borates ( H.S. heading ex 25.28 ), it obtains preferential
          origin status, as the product is subject to a change of tariff
          heading ( from H.S. heading 25.28 to 25.40 ). However , where
          the product is manufactured from disodium tetraborate pentahydrate ,
          it cannot obtain preferential origin status according to the
          present rules , as the basic product does not change tariff
          heading when transformed into sodium perborate .
II . Features of the business in question
     The proposed amendments should benefit all exporters of the two
     industries concerned whether they are big enterprises or SME 's .
 ---pagebreak--- III . What obligations does this measure impose directly on business ?
      No new obligations    -  The two problems will be solved as follows :
      a)    Used tyre cases
            In Protocol No 3 a new Explanatory Note 5a - Article 4 ( h ) is
            to be inserted assimilating the tyre cases in question to used
            articles fit only for the recovery of raw materials and thus
            they will be considered as wholly obtained .
      b)    Sodium perborate
            In the List of the working or processing that confers the
            status of originating products a new rule is to be inserted
            with regard to sodium perborate of HS heading ex 28.40 stipulating
            that the manufacture from disodium tetraborate pentahydrate
            confers the status of originating products .
IV .  What indirect obligations are national , regional or local authorities
      likely to impose on businesses ?
      No ne
V.    Are they any special provisions in respect of SME 's ?
      No ( see point II )
VI .  What is the likely effect on :
      a)    the competitiveness of businesses ?
            As originating products can benefit from a preferential tariff
            treatment within the framework of the EEC-EFTA Free Trade
            Agreements , products originating in any of the contracting
            parties will be more competitive in relation to third country
            products in the partner country .
      b)    on employment ?
            This cannot be estimated .
 ---pagebreak--- VII . Have the relevant representative organisations been consulted ?
      a)   Used tyre cases
           No
      b)   Sodium perborate
           The request for a change of the rule was introduced by the
           European Council of Chemical Manufacturers' Federation ( CEFIC )
           and unanimously supported by the sector concerned .
                                                                            \