CELEX: 51992PC0417
Language: en
Date: 1992-10-14
Title: Proposal for a COUNCIL REGULATION (EEC) extending into 1993 the application of Council Regulations (EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90 applying generalized tariff preferences for 1991 in respect of certain products originating in developing countries, and adding to the list of beneficiaries of such preferences

COMMISSION OF THE EUROPEAN COMVIUNITIES
                                                                C0M(92) 417 final
                                                                Brussels, 14 October 1992
            »
f^'*:
« . # : : •
                                               Proposal for a
                                          COUNCIL REGULATION (EEC)
                     extending into 1993 the application of Council Regulations
                       (EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90
I
                           applying generalized tariff preferences for 1991
r.                                   in respect of certain products
                                 originating in developing countries,
                     and adding to the list of beneficiaries of such preferences
                                                    Draft
                DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES
                                OF THE EUROPEAN COAL AND STEEL COMMUNITY.
                                        MEETING WITHIN THE COUNCIL
                   extending into 1993 the application of Decisions 90/672/ECSC and
                          90/673/ECSC applying generalized tariff preferences
                              for 1991 in respect of certain steel products
                                   originating in developing countries
                                       (presented by the Commission)
 ---pagebreak---                          EXPLANATORY MEMORANDUM
1. In the light of the fact that conclusion of the Uruguay Round
   negotiations has been put off until the end of the year, making it
   impossible to start implementing its results until the beginning of
   1994 at best, the Commission considers it preferable to postpone
   the entry into force of the new ten-year scheme of generalized
   preferences until 1 January 1994. This is because account will
   have to be taken of the possible effects of some aspects of the new
   scheme on the conclusion of the negotiations and, conversely, of
   the potential effects of the results of the Uruguay Round on the
   GSP.
2.  It is for these reasons that the Commission is proposing that the
   generalized preference scheme in operation in 1992 be carried over
   once again unchanged. It reserves the right to launch a debate on
   a global revision of the system with the objective of putting into
   operation a revised GSP in 1994.
3. The only alteration that the Commission considers necessary at this
   stage   is the addition of new countries to the            list of GSP
   beneficiaries     in order   to take account      of   the most  recent
   developments in the international political situation, notably the
   collapse of the USSR.
4. Following the upheaval they have experienced, the countries which
   formerly made up the USSR are now facing a political, economic,
   social, moral and cultural crisis of such magnitude that it is the
   Community's     duty  to   use   every   possible    means   to provide
   comprehensive assistance.
5. Since the aim is to ease these countries' difficult transition
    towards a free market economy founded on democratic institutions,
   such assistance should not be contemplated without opening the
   Community market up to their exports to the greatest             extent
   possible. This will provide their industrial and agricultural base
   with the incentives needed for restructuring, redeployment and
   revita Iizat ion.
6.  In order to open up the Community market, the Commission considers
    it necessary, as has been done in the past for other Eastern
   European countries in the same situation, to make use of the
   Community generalized preference scheme.
7. Since the situation in question is by definition a temporary one,
   however, the Commission is proposing that access to the GSP for
    these countries be limited to three years.
 ---pagebreak---                                    - 2 -
8. The Commission furthermore takes the view that the countries of the
    former USSR should not be given access to the GSP scheme for
    textiles unless they conclude with the Community          individual
    bilateral textile agreements to succeed the textile agreement with
    the USSR.
   With regard to fishery products, however, the Commission proposes
    that these countries' GSP arrangements be identical to those which
    apply to Estonia, Greenland, Latvia and Lithuania.
9. To take into account the fact that the economies of the countries in
    question are so closely interlinked, the Commission has decided to
    begin preparations for the operation from 1 January 1993 of a system
    of regional cumulation of origin, similar to that already used for
    ASEAN, the Andean Pact and the CACM, it being taken for granted that
    its functioning will be dependent on the establishment of the
    necessary administrative procedures between the republics. The
    Commission is also proposing that regional cumulation of origin
    apply to the Baltic states.
10.     The Commission considers that the advent of the single market on
        1 January 1993 makes it necessary to change the arrangements for
        textiles, and proposes that the tariff quotas divided among the
        Member States be replaced by fixed duty-free amounts.
        The effect of this alteration will be to transfer accounting
        functions relating to preferential imports to the Commission, as
         is already the case with industrial products other than
        textiles. This change is Justified by the fact that it is
        technically impossible to deal with drawings on Community fixed
        amounts at Member-State level.
11.     The Commission takes the view that the list of least-developed
        countries should be aligned on that of the United Nations, and
        that Cambodia, Liberia, Madagascar, the Solomon         Islands,
        Vanuatu, Zaire and Zambia should therefore be added.
12.     As there have been a number of nomenclature changes, the
        appropriate technical alterations will have to be made to the
         lists of products attached to the GSP scheme.
13.      It is with the above objectives in mind that the Commission is
        forwarding this proposal for a Regulation to the Council with a
        request that it be adopted in time to enable it to enter into
        force on 1 January 1993.
 ---pagebreak---                                  proposal for a
                     Council Regulation (EEC) No ...
       extending into 1993 the application of Council Regulations
        (EEC) Nos 3831/90, 3832/90, 3833/90, 3834/90 and 3835/90
            applying generalized tariff preferences for 1991
                      in respect of certain products
                  originating in developing countries,
      and adding to the list of beneficiaries of such preferences
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European           Economic
Community, and in particular Articles 113 and 43 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,1
Having regard to the opinion of the Economic and Social Committee,2
Whereas, in accordance with the offer it made within the United Nations
Conference on Trade and Development (UNCTAD), the European Economic
Community   introduced generalized tariff preferences      in 1971 for
finished and semi-fini shed industrial products, textile products and
some agricultural products from developing countries; whereas the
initial ten-year period of application of this system of preferences
ended on 31 December 1980;
Whereas the positive role played by this system in improving access for
the developing countries to the markets of the preference-giving
countries was recognized at the ninth session of the UNCTAD Special
Committee on Preferences; whereas It was agreed at that session that
the objectives of the generalized system of preferences would not be
fully achieved by the end of 1980, and that it should consequently be
extended beyond the initial period, an overall review of the system
having started in 1990;
Whereas the review of the system has continued into 1991 and 1992, and
the progress of the work makes it unlikely that a scheme based on new
guidelines will be established by 1 January 1993; whereas the review
is, however, likely to be completed during 1993;
1  0J
2  Opinion delivered on
 ---pagebreak---                                  - 4 -
Whereas the validity of the 1992 scheme of generalized preferences
should be provisionally extended into 1993, pending the outcome of the
review;
Whereas Regulations (EEC) No 3831/90,1 (EEC) No 3832/90,2 (EEC)
No 3833/90,* (EEC) No 3834/904 and (EEC) No 3835/905 were extended
into 1992 by Regulations (EEC) No 3587/916 and (EEC) No 3588/91,7
supplemented and amended by Regulations (EEC) No 3302/91,8 (EEC)
No 3900/91,9     (EEC)    No 282/92,10   (EEC)    No 548/92,11    (EEC)
           12                      13
No 1433/92 and (EEC) No 1509/92,
Whereas in the light of the advent of the single market on 1 January
1993, tariff quotas divided among the Member States should be replaced
by fixed duty-free amounts, and whereas Regulation (EEC) No 3832/90
must therefore be amended;
Whereas the effect of this alteration will be to transfer accounting
functions relating to preferential imports to the Commission; whereas
this change is Justified by the fact that It is technically impossible
to deal with drawings on Community fixed amounts at Member-State level.
Whereas in the interests of efficient Joint administration of the
fixed amounts, the Member States will be responsible for collecting
requests for drawing and notifying importers of the Commission's
response to those requests, in a framework of close cooperation
between the Member States and the Commission, with the Commission
informing the Member States of the degree to which the fixed amounts
have been drawn on;
Whereas the economic situations of Ukraine, Belarus, Moldova, Russia,
Georgia, Armenia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan,
Tajikistan and Kyrgyzstan have worsened to the point that they face
difficulties comparable to those experienced by countries which have
in the past been eligible for preferences;
Whereas   Ukraine, Belarus, Moldova, Russia, Georgia, Armenia,
Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan and
Kyrgyzstan should temporarily be made eligible for the generalized
system of preferences in order to increase their exports and thus
accelerate economic development, promote industrialization and improve
growth rates;
1  0J L 370, 31.12.1990. p.1.
2  OJ L 370, 31.12.1990, p.39.
3  0J L 370, 31.12.1990, p.86.
4  0J L 370. 31.12.1990. p.21.
5  0J L 370, 31.12.1990, p.126.
6  0J L  341, 12.12.1991, p.1.
7  OJ L 341, 12.12.1991, p.6.
8  0J L 315, 15.11.1991. p.46.
9  0J L  368. 31.12.1991. p.11.
10 0J L 31, 7.2.1992, p.1.
11 OJ L 63, 7.3.1992. p.49.
12 OJ L 151, 3.6.1992, p.7.
13 0J L 159, 12.6.1992, p.1.
 ---pagebreak---                                   - 5 -
Whereas the treatment established in 1992 for fishery products from
Estonia, Latvia and Lithuania, which is identical to that applied to
Greenland, should now be applied to fishery products from Ukraine,
Belarus, Moldova, Russia, Georgia, Armenia, Azerbaijan, Kazakhstan,
Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan;
Whereas the list of least-developed countries should be aligned on that
of the United Nations,
HAS ADOPTED THIS REGULATION:
                                Article 1
Subject to the following Articles, Regulations (EEC) Nos 3831/90,
3832/90, 3833/90, 3834/90, 3835/90 and 3900/91, applying generalized
tariff preferences in respect of certain products originating in
developing countries shall apply mutatis mutandis from 1 January 1993
until 31 December 1993.
References in the Regulations mentioned in the first subparagraph to
specific dates in the years 1991, 1992 or 1993 shall be taken to refer
 instead to the same dates in the years 1992, 1993 or 1994 respectively.
                                Article 2
Regulation (EEC) No 3832/90 is amended as follows:
1. The references to "tariff quotas" and "quotas" in the first    indent
    of Article 1(1), Article 1(5) and Article 14 are deleted.
2. Article 8(1) is replaced by the following:
    "The total suspension of customs duties within the framework of the
    fixed amounts referred to In Article 1(1) concerns the categories of
    products in Annexes I and II, for each of which the volume of the
    amount is specified individually in column 6 of those Annexes, with
    regard to the countries or territories specified in column 5 of the
    same Annexes."
3. In Annex I (pages 47 to 51), the heading for columns 6a, 7a, 6b and
    7b is replaced by the following:
    M
                 Fixed duty-free amounts
      1.1.1993 - 30.6.1993   1.7.1993 - 31.12.1993
          (6i)                    (6ii)
 ---pagebreak---                                        - 6 -
      The amounts in columns 6a and 7a shall added and the total inserted
       in column 61 ; the same shall be done with the amounts in columns 6b
      and 7b, and the total inserted In column 611, in each case opposite
      the name of the appropriate country or territory.
4. In Annex I (pages 52 to 74), the heading for columns 6 and 7 is
      replaced by the following:
                             •Fixed duty-free amounts
                                        (6)"
      The amounts in colurns 6 and 7 shall be added and the total inserted
       in column 6, in each case opposite the name of the appropriate
      country or territory.
5. Footnote (1) on page 47 is deleted.          Footnote  (1) on page 67  is
      replaced by the following:
 "For this country, the fixed duty-free amount Is calculated In items,
                           and will be 168 000 items."
6. Section I is deleted.        Sections II, III and IV are renumbered I, li
      and 111 respect IveIy.
7. The first subparagraph of Article 15(2) is deleted.
8. Articles 8 to 18 are renumbered 2 to 11 respectively.       References to
       those Articles are altered accordingly.
                                     Article 3
The following are added to Part A of Annex III to Regulation (EEC)
No 3831/90, Part A of Annex V to Regulation (EEC) No 3832/90 and Part A
of Annex III to Regulation (EEC) 3833/90:
072            Ukraine
073            Belarus
074            Moldova
075            Russ i a
076            Georgia
077            Armen i a
078            Azerbaijan
079            Kazakhstan
080            Turkmenistan
081            Uzbekistan
082            Tajikistan
083            Kyrgyzstan
 ..;-*.••¥*--.
 ---pagebreak---                                     - 7 -
Footnote (c) in Annex II to Regulation (EEC) No 3833/90 is replaced by
the fol lowing:
      "(c) Preferences are not to be granted in respect of products
           marked with two asterisks, originating in Armenia,
            Azerbaijan, Belarus, Estonia, Georgia, Greenland,
       Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova. Russia.
            Tajikistan. Turkmenistan. Ukraine or Uzbekistan."
                                  Article 4
1. The following are added to Annex IV to Regulation (EEC) No 3831/90.
    Annex VI to Regulation (EEC) No 3832/90 and Annex V to Regulation
    (EEC) No 3833/90:
    268     Liberia
    322     Zaire
    370     Madagascar
    378     ZambI a
    696     Cambod i a
    806     Solomon Islands
    816     Vanuatu
2. A footnote reference " ( 2 ) N is added to the names of the countries
    in question in part A of Annex III to Regulation (EEC) No 3831/90
    and in part A of Annex V to Regulation (EEC) No 3832/90.
3. The countries in question are deleted from part A of Annex III to
    Regulation (EEC) No 3833/90.
                                  Article 5
The technical amendments to the Annexes to Regulations (EEC) No 3831.
(EEC) No 3832/90. (EEC) No 3833/90 and (EEC) No 3835/90 are contained
 in the Annex to this Regulation.
                                  Article 6
This Regulation shall enter into force on 1 January 1993.
This Regulation shall be binding          in its  entirety  and  directly
applicable in all Member states.
Done at Brussels,                                    For the Council,
                                                     The President
 ---pagebreak---                                                              8-
                                                          ANNEXI a
1. The following products shall be added to Annex I to Regulation (EEC) N° 3831/90:
KjSSS^^^SSKSSSSSSSE^SIISESSSESSCBBSSESSSSBESB^^BESSESBBmSSSS
I             Order N°                                CN-code              Ceiling
I                                                                          (ECU)
I      10.0072                                 2835 25               410.000
      10.0074                                  2835 26              280.000
      10.0102                                  2849 20 00          3.343.000
      10.0104                                  2902 30 10           300.000
I     10.0118
      10.0161
                                               2903 22 00
                                               2909 42 00
                                                                     197.000
                                                                     180.000
                    **{f'". . jtfft— *? *»'":
 ---pagebreak--- 2. In Annex 1 to Regulation (EEC) N° 3831/90, the following countries shall be added in
column 4 with regard to the following products:
               Order N*                                           Countries
            10,0040                                    Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0110                                     Russia
           10.0120                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0140                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
            10.0282                                    Russia
           10.0400                                     Russia, Kazakhstan,
 . •..., i i -II • • • —<MMM_____.»_---«<p-lfcM__--- M
                                                       Ukraine, Belarus
                                                        H  -  M H  - ^     —.11 i • •• — i i
           10.0402                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0407                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0408                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0410                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0420                                     Russia, Kazakhstan,
                                                       Ukraine, Belarus
           10.0610                                     Russia, Ukraine,
                                                       Belarus
           10.0630                                     Russia, Ukraine,
                                                       Belarus
           10.0670                                     Russia, Ukraine
           10.0840                                     Russia, Kazakhstan,                I
                                                       Ukraine                           J
           10.0150                                     Russia, Kazakhstan,                I
                                                       Ukraine                           I
           10.0840                                     Russia, Kazakhstan,
                                                       Ukraine
t          10.0925                                     Russia, Ukraine
 ---pagebreak---                                  -10-
I.  Amendments to the annexes of Regulation (EEC) No 3831/90
II. Amendments to the annexes of Regulation (EEC) No 3832790
IH. Amendments to the annexes of Regulation (EEC) No 3833/90
IV. Amendments to the annexes of Regulation (EEC) No 3835/90
 ---pagebreak---                                     •-11 -
                           Draft
          DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS OF
      THE MEMBER STATES OF THE EUROPEAN COAL AND STEEL COMMUNITY,
                        MEETING WITHIN THE COUNCIL
    extending into 1993 the application of Decisions 90/672/ECSC and
           90/673/ECSC applying generalized tariff preferences
              for 1991 in respect of certain steel products
                   originating in developing countries
                               (92/      /ECSC)
THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE
EUROPEAN COAL AND STEEL COMMUNITY, MEETING WITHIN THE COUNCIL,
In agreement with the Commission,
HAVE DECIDED AS FOLLOWS:
                                 Article 1
Decisions 90/672/ECSC1 and 90/673/ECSC2 applying generalized tariff
preferences in respect of certain steel products originating in
developing countries shall apply mutatis mutandis from 1 January 1993
until 31 December 1993.
Where the Decision mentioned in the first subparagraph refer to
specific dates in the years 1991 or 1992, those dates shall instead to
read as dates in the years 1992 or 1993 respectively.
                                  Article 2
1. The following are added to Annex IV to Decision 90/672/ECSC :
268 Liberia
322 Zaire
370 Madagascar
378 Zambia
696 Cambodia
806 Solomon Islands
816 Vanuatu
2. A footnote reference "(2) M Is added to the names of the countries in
question in part A of Annex 111 to Decision 90/672/ECSC.
                                  Article 3
The technical amendments to the Annexes to Decision 90/672/ECSC are
contained in the Annex to this Regulation.
                                 Article 4
This Decision shall enter into force on 1 January 1993.
Done at Brussels,
                                                    The President
1  OJ L 370, 31.12.1990, p.133
2  OJ L 370, 31.12.1990, p.151
 ---pagebreak---                            - 12 -
                              ANNEX
Amendments to Annex I to Decision 90/672/ECSC
 ---pagebreak---                               - 13 -
FINANCIAL STATEMENT
The financial impact of the generalized tariff preferences extended to
developing countries is hard to quantify accurately because the rules
for granting such preferences are flexible, and because:
-  the concessions are complex and a distinction is made between
   countries; in particular, there are quotas and tariff ceilings which
   differ from product to product and beneficiary to beneficiary;
-  the production structures of the developing countries mean that the
   degree to which they are able to comply with the rules of origin
   varies;
-   incomplete use is made of the advantages offered, either because of
    lack of Information, or, in cases in which the usual duty is low,
   because of a lack of economic gain.
These eons (derations lie* at the root of the considerable disparity
between the overall offer made available from 1 January and the
quantities Imported under preferential arrangements by 31 December of a
given year.
Taking as its basis the overall GSP offer of ECU 27.8 billion for 1992,
and taking account of the changes made (incorporation of the CIS and
Georgia, withdrawal of Czechoslovakia, Hungary and Poland), the overall
GSP offer for 1993 is estimated to be ECU 26.539 billion.
With weighted average common customs tariff duties applicable to the
products in question of between 5.5% and 6%, and an average take-up
rate of 70%, the estimated figures for customs revenue uncollected as a
result of the operation of the Community GSP scheme in 1993 are
ECU 1.022 billion to ECU 1.115 billion.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(92) 417 final
                                                      DOCUMENTS
EN                                                                         l i 02
                                Catalogue number : CB-CO-92-445-EN-C
                                                             ISBN 92-77-48014-9
Office for Official Publications of the European Communities
L-2985 Luxembourg