CELEX: 51986PC0317(01)
Language: en
Date: 1986-06-10
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) SETTING UP A SYSTEM OF COMPENSATION FOR LOSS OF EXPORT EARNINGS FOR LESS-DEVELOPED COUNTRIES NOT SIGNATORY TO THE LOME CONVENTION

22.7.86                                    Official Journal of the European Communities                               No C 183/5
                                                                  II
                                                          (Preparatory Acts)
                                                     COMMISSION
              Proposal for a Council Regulation setting up a system of compensation for loss of export
                           earnings for less-developed countries not signatory to the Lome Convention
                                                         COM(86)     317final
                                   (Submitted by the Commission to the Council on 11 June 1986)
                                                           (86/C 183/03)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                              HAS ADOPTED THIS REGULATION:
Having regard to the Treaty establishing the European
                                                                                                 TITLE I
Economic Community, and in particular Article 235
thereof,                                                                      OBJECTIVES AND GENERAL PROVISIONS
                                                                                                 Article 1
Having regard to the proposal from the Commission,                     1.   As part of its development cooperation policy the
                                                                      Community shall give effect to a system to compensate
                                                                      for losses of export earnings those countries on the
Having regard        to    the  opinion     of   the  European        United Nations' list of least-developed countries which
Parliament,                                                           are not signatory to the Third ACP-EEC Convention.
Whereas in pursuance of the Community development                     2.     The said system shall cover the period 1986 to 1990
cooperation policy it is desirable to give effect on certain          and transfers shall start as from the financial year 1987.
conditions to a system to compensate least-developed
countries not signatory to the Lome Convention for
losses of export earnings;
                                                                                                 Article 2
                                                                       1.   With the aim of remedying the effects of the
Whereas the importance and significance of development
                                                                      instability of export earnings and of aiding the countries
reside, inter alia, in its objective of promoting the welfare
                                                                      concerned in their development efforts, the system shall
and respecting the fundamental                 rights of the
                                                                      operate to help stabilize the said countries' earnings from
communities concerned; whereas it is therefore necessary
                                                                      exports to the Community of products on which their
to obtain the fullest guarantees that the system will
                                                                      economies are dependent, which are affected by fluc-
operate to the benefit of those communities;
                                                                      tuations in price or quantity or both, and which are
                                                                      included in the list referred to in Article 3.
Whereas for the purposes of implementation, the aims
and outlines of the system should be established in a
framework regulation;                                                  2.    The system referred to in paragraph 1 shall help
                                                                      stabilize export earnings by means of non-repayable
                                                                      transfers of financial resources, hereinafter referred to as
Whereas to ensure that the system attains its objectives it           'transfers'.
is necessary to provide that recipients should benefit only
if they undertake to abide by certain conditions;
                                                                       3.    Transfers must be used for projects, programmes or
                                                                      operations either:
Whereas for the purposes of administering the system a
procedure for prior consultation of the Member States
should be established;                                                 (a) in the sector in which the loss of export earnings
                                                                           occurred, where appraisal of the transfer request
                                                                           indicates that the said loss was caused by circum-
Whereas the Treaty does not provide for the necessary                      stances which such projects, programmes or
powers,                                                                    operations might remedy, or
 ---pagebreak--- No C 183/6                              Official Journal of the European Communities                                 22.7.86
(b) in other appropriate sectors for the purposes of                                          Article 7
    diversification, provided the recipient country and
    the Commission so agree.                                       Transfer requests shall be addressed to the Commission,
                                                                   which shall examine them in conjunction with the
                                                                   recipient country concerned. Such examination shall
                                                                   consider the statistical data, calculation of the transfer
                          Article 3                                basis and of any reduction which may be applicable, and
1.    The system shall apply to earnings from each of the          the use to be made of the funds to be transferred.
recipient countries' exports to the Community of
                                                                                              Article 8
products listed in the Annex.
                                                                   1.    Following the examination referred to in Article 7,
                                                                   the Commission shall take a transfer approval decision in
2.    Each recipient country shall certify that products to        accordance with the procedure provided for in Ar-
which the system applies have originated in its territory.         ticle 10.
                                                                   2.    The conditions for use of the transferred funds
                                                                   shall be set out in an agreement between the Commission
                         TITLE II
                                                                   and the authorities of the recipient country.
      FUNDING AND FINANCIAL MANAGEMENT
                                                                                              Article 9
                          Article 4
                                                                   Rules for the implementation of this Regulation shall be
The budgetary cost of the system to be put into effect             adopted by the Council acting by a qualified majority on
pursuant to Article 1 is estimated at a maximum of 50              the basis of a proposal from the Commission.
million ECU for the five year period from the financial
year 1987 to the financial year 1991.                                                        Article 10
                                                                   1.    An Advisory Committee on the System of
                                                                   Compensation for Loss of Export Earnings for
                          Article 5                                Non-ACP Least-Developed              Countries, hereinafter
                                                                   referred to as the 'Committee', chaired by a represen-
The funds required for putting into effect the system
                                                                   tative of the Commission and composed of represen-
established under this Regulation shall be shown in the
                                                                   tatives of the Member States, is hereby established under
general budget of the European Communities.
                                                                   the auspices of the Commission. The secretariat of the
                                                                   Committee shall be provided by the Commission.
                         TITLE III                                 2.    The Committee shall examine matters on which the
                                                                   Commission has requested an opinion. In requesting
  RULES AND PROCEDURES FOR IMPLEMENTATION                          such opinion, the Commission may set a time-limit by
                          Article 6                                which it must be delivered. The Committee shall not vote
                                                                   on opinions, but each member of the Committee may
1.    The transfers referred to in Article 2 (2) shall be          require that his views be entered in the minutes.
allocated on the basis of requests from the recipient
countries.                                                                                   Article 11
                                                                   The Commission shall report annually to the European
                                                                   Parliament and the Council on the administration of the
2.    In addition to the necessary statistical data, transfer
                                                                   system during the preceding year.
requests shall include substantial information concerning
the situation in the sector or sectors in which the loss of                                  Article 12
earnings has occurred and the projects, programmes and
operations to which the recipient country has allocated            This Regulation shall enter into force on . . .
or undertakes to allocate the funds in accordance with             This Regulation shall be binding in its entirety and
the objectives and provisions set out in Article 2.                directly applicable in all Member States.
 ---pagebreak--- 22. 7. 86                               Official Journal of the European Communities                                  No C 183/7
                                                             ANNEX
                                                  Product coverage (see Article 3)
                                                                                   NIMEXE Code
           1. Groundnuts, shelled or not                                           12.01-31 to 12.01-35
           2. Groundnut oil                                                        15.07-74 and 15.07-87
           3. Cocoa beans                                                          18.81-00
           4. Cocoa paste                                                          18.03-10 to 18.03-30
           5. Cocoa butter                                                         18.04-00
           6. Raw or roasted coffee                                                09.01-11 to 09.01-17
           7. Extracts, essences or concentrates of coffee                         21.02-11 to 21.02-15
           8. Cotton, not carded or combed                                         55.01-10 to 55.01-90
           9. Cotton linters                                                       55.02-10 to 55.02-90
          10. Coconuts                                                             08.01-71 to 08.01-75
          11. Copra                                                                12.01-42
          12. Coconut oil                                                          15.07-29, 15.07-77 and 15.07-92
          13. Palm oil                                                             15.07-19, 15.07-61 and 15.07-63
          14. Palm nut and kernel oil                                              15.07-31, 15.07-78 and 15.07-93
          15. Palm nuts and kernels                                                12.01-44
          16. Raw hides and skins                                                  41.01-11 to 41.01-95
          17. Bovine cattle leather                                                41.02-05 to 41.02-98
          18. Sheep and lamb skin leather                                          41.03-10 to 41.03-99
          19. Goat and kid skin leather                                            41.04-10 to 41.04-99
          20. Wood in the rough                                                    44.03-20 to 44.03-99
          21. Wood roughly squared or half-squared,                                44.04-20 to 44.04-98
              but not further manufactured
          22. Wood sawn lengthwise, but not further prepared                       44.05-10 to 44.05-79
          23. Fresh bananas                                                        08.01-31
          24. Tea                                                                  09.02-10 to 09.02-90
          25. Raw sisal                                                            57.04-10
          26. Vanilla                                                              09.05-00
          27. Cloves — whole fruit, cloves and stems                               09.07-00
          28. Sheep's or lambs' wool, not carded or combed                         53.01-10 to 53.01-40
          29. Fine animal hair of Angora goats — mohair                            53.02-95
          30. Gum arabic                                                           13.02-91
          31. Pyrethrum — flowers, leaves, stems, peel and roots; saps             12.07-10 and 13.03-15
              and extracts from pyrethrum
          32. Essential oils, not terpeneless, of cloves,                          33.01-23
              of niaouli and of ylang-ylang
          33. Sesame seed                                                          12.01-68
          34. Cashew nuts and kernels                                              08.01-77
          35. Pepper                                                               09.04-11 and 09.04-70
          36. Shrimps and prawns                                                   03.03-43
          37. Squid                                                                03.03-68
          38. Cotton seeds                                                         12.01-66
          39. Oil-cake                                                             23.04-01 to 23.04-99
          40. Rubber                                                               40.01-20 to 40.01-60
          41. Peas                                                                 07.01-41 to 07.01-43
                                                                                   07.05-21 and 07.05-61
          42. Beans                                                                07.01-45 and 07.01-47
                                                                                   07.05-25, 07.05-65 and ex 07.05-99
          43. Lentils                                                              07.05-30 and 07.05-70
          44. Nutmeg                                                               09.08-13, 09.08-60
          45. Shea nuts                                                            12.01-70
          46. Shea nut oil                                                         ex 15.07-82 and ex 15.07-98
          47. Mangoes                                                              ex 08.01-99
          48. Dried bananas                                                        08.01-35-11
          49. Mace                                                                 09.08-16 and 09.08-70
          50. Jute                                                                 57.03-10 to 57.03-50