CELEX: 51996PC0352
Language: en
Date: 1996-07-19
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 4088/87 fixing conditions for the application of preferential customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza Strip

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           Brussels, 19.07.1996
                                           COM(96)352 final
                                           96/0188 (ACQ
                            Proposal for a
                   COUNCIL REGULATION (EC)
amending Regulation (EEC) No 4088/87 fixing conditions for the application
 of preferential customs duties on imports of certain flowers originating in
    Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza Strip
                   (presented by the Commission)
 ---pagebreak---  ---pagebreak---                              EXPLANATORY MEMORANDUM
Council Regulation (EEC) No 4088/87 fixing conditions for the application of preferential
customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco,
the West Bank and the Gaza Strip provides for the tariff reduction to be granted on a quota
(hence a limited quantity) and on condition for certain cut flowers (roses and carnations) that
an import price is respected that is no lower than a percentage (85%) of the Community
producer price for the product in question.
The method of calculating Community producer prices as defined in Article 3 uses three-year
arithmetical averages excluding all extreme values. The figures arrived at are therefore far out
of line with the actual situation.
It is therefore proposed that current weighted averages replace three-year arithmetical averages
as the method for calculating Community producer prices. An amendment to the way in which
import prices are compared with producer prices is also proposed
                                          SL
 ---pagebreak---                                             Proposal for a
                              COUNCIL REGULATION (EC) No
                                                 of
          amending Regulation (EEC) No 4088/87 fixing conditions for the application
           of preferential customs duties on imports of certain flowers originating in
              Cyprus, Israel, Jordan, Morocco, the West Bank and the Gaza Strip
 THE COUNCIL OF THE EUROPEAN UNION,
 Having regard to the Treaty establishing the European Community, and in particular Article 113
 thereof,
 Having regard to the proposal from the Commission,
 Whereas the Additional Protocols to the Association or Cooperation Agreements between "the
 European Economic Community and Cyprus, Israel, Jordan and Morocco provide for preferential
 customs duties on roses and carnations imported into the Community within the limit of tariff
quotas opened for all fresh cut flowers of Combined Nomenclature subheading 0603 10 originating
in these countries; whereas under Regulation (EEC) No 1134/91 \ as amended by Regulation (EC)
No 539/962, the West Bank and the Gaza Strip enjoy preferential tariff treatment for certain
agricultural products, including cut flowers of Combined Nomenclature subheading 0603 40,
within annual quota limits; whereas these tariff advantages are applicable only to imports for
which certain price requirements specified by Regulation (EEC) No 4088/873, as last amended by
Regulation (EEC) No 539/96, are met; whereas the actual prices to be respected for imported
products are determined by comparing their prices with Community producer prices;
Whereas by a Decision of the Council of 22 December 1995 the Community concluded an Interim
Agreement with Israel on trade and trade-related matters4; whereas this includes an exchange of
letters on imports into the Community of fresh cut flowers and flower buds suitable for bouquets
          O J N o L 112, 4.5.1991, p.l.
          OJ No L 79, 29.3.1996, p.6.
          OJ No L 382, 31.12.1987, p.22.
          O J N o L 7 1 , 20.3.1996, p.l.
                                             3
 ---pagebreak--- or ornamental purposes, by which it has been agreed to adjust the procedures for determining
Community producer prices and recording import prices;
Whereas as a result of the negotiations with Morocco for conclusion of an Association Agreement,
which led to agreement inter alia on adjustment, implemented by Council Regulation (EC)
No 3057/955, of the tariff quotas for flowers, the same adjustments as referred to above in the
procedures for determining Community producer prices and recording import prices were agreed
on;
Whereas the provisions of the Agreements with the other Mediterranean countries covered by
Regulation (EEC) No 4088/87 on flower imports specify no method for determining Community
producer and import prices; whereas since it is anticipated that the new procedures will be to the
advantage of importers they should be applied to all imports originating in the Mediterranean
countries covered by Regulation (EEC) No 4088/87;
Whereas Regulation (EEC) No 4088/87 should accordingly be amended,
HAS ADOPTED THIS REGULATION:
                                             Article 1
Regulation (EEC) No 4088/87 is hereby amended as follows:
1.   Article 2 is replaced by:
                                            "Article 2
     1.    For a given product and origin, the preferential customs duty shall be applicable only
           if the price of the imported product is at least 85% of the Community producer price
           referred to in Article 3.
        OJ No L 326, 30.12.1995, p.3.
 ---pagebreak---    2.    Import prices applicable for two-week periods shall be determined for each of the
         products and origins indicated in Article 1. Determinations shall be made every fifteen
         days for the two weeks following the date on which they are made.
         Import prices shall be determined on the basis of the weighted average of prices
         recorded on the representative import markets of the Community, full rate customs duty
         not deducted.                                                      ~       ~
   3.    The preferential customs duty shall be suspended and the Common Customs Tariff duty
         introduced for any given product and origin if the import price determined as specified
         in paragraph 2 is less than 85% of the Community producer price determined as
         specified in Article 3.
   4.    The preferential customs duty shall be reintroduced for any given product and origin
         if the import price determined as specified in paragraph 2 is 85% or more of the
         Community producer price determined as specified in Article 3."
2. Article 3 is replaced by:
                                          "Article 3                                        -
    1.   Community producer prices applicable for two-week periods shall be determined for
         each of the four products indicated in Article 1. Determinations shall be made every
         fifteen days for the two weeks following the date on which they are made.
   2.    Community producer prices shall be determined on the basis of the weighted average
         of producer prices recorded on the representative markets for Community production."
3. Article 4 is replaced by:
                                          "Article 4
   In the absence of prices or quotations sufficiently representative to permit determination of
   import and/or Community producer prices as specified in Articles 2(2) and 3(2) respectively
   they shall be determined on the basis of the latest determinations."
                                            S
 ---pagebreak--- 4.   Article 5(2) is replaced by:
     "2.   In accordance with the procedure referred to in paragraph 1 the Commission shall:
           a)    determine import prices as provided for in Article 2(2) and Community producer
                 prices as provided for in Article 3;
           b)    when appropriate suspend the preferential customs duty and reintroduce the
                 Common Customs Tariff duty, or reintroduce the preferentialcustomsduty.
           However, between the periodic meetings of the Management Committee these measures
           shall be adopted by the Commission."
                                             Article 2
This Regulation shall enter into force on the seventh day following its publication in the Official
Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at                                                                           For the Council
                                               6'
 ---pagebreak---         FINANCIAL STATEMENT                                                              DATE: 22.4.96
        BUDGET HEADING: 120 (Customs duties)                                             APPROPRIATIONS: ECU 14.281m
        TITLE:
        Proposal for a Council Regulation amending Regulation (EEC) No 4088/87 fixing conditions for the application of
        preferential customs duties on imports of certain flowers originating in Cyprus, Israel, Jordan, Morocco, the West Bank
        and the Gaza Strip
        LEGAL BASIS: Treaty Article 113
        AIMS OF PROJECT:
        Application/suspension of preferential customs duty according to import price/Community producer price relationship
       FINANCIAL IMPLICATIONS                                    PERIOD OF                CURRENT              FOLLOWING
                                                                 12 MONTHS               FINANCIAL              FINANCIAL
                                                                                          YEAR (96)              YEAR (97)
                                                                  million ecu             million ecu            million ecu
5.0.   EXPENDITURE
       - CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTION)
       - NATIONAL ADMINISTRATION
       -OTHER
5.1.   REVENUE
       - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                                                  1998             1999               2000             200T
                                                                                                                  (ECUmillion)
5.0.1. ESTIMATED EXPENDITURE
5.1.1. ESTIMATED REVENUE
5.2.   METHOD OF CALCULATION:
          Not quantifiable
       Application/non-application of the preferential customs duty is not known in advance being largely dependent on marke
       trends. Any assessment of financial implications is therefore mere conjecture.
6.0.   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT
       CHAPTER OF THE CURRENT BUDGET?
6.1.   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT
       BUDGET?
6.2.   IS A SUPPLEMENTARY BUDGET NECESSARY?
6.3.   WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
OBSERVATIONS.
                                                             *
 ---pagebreak---  ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(96) 352 final
                                              DOCUMENTS
EN                                                                    03 02 11
                                    Catalogue number : CB-CO-96-359-EN-C
                                                              ISBN 92-78-06962-0
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