CELEX: 51991PC0344
Language: en
Date: 1991-09-23
Title: Proposal for a COUNCIL REGULATION ( EEC ) establishing provisions for the implementation of the Joint Declaration annexed to Decision No. 1/89 of the EEC­Malta Association Council

IOMV1ISSION OF THE EUROPEAN COMMUNITIES
                                            C0M(91) 344 final
                                            Brussels, 23 September 1991
                               Proposal for a
                         COUNCIL REGULATION (EEC)
  establishing provisions for the implementation of the Joint Declaration
  annexed to Decision No. 1/89 of the EEC-Malta Association Council
                                    Draft
              DECISION OF THE ^EC-MALTA ASSOCIATION COUNCIL
           amending Annex 111 of Protocol No. 2 concerning the
           definition of the concept of "originating products"
                 and methods of administrative cooperation
                       (presented by the Commission)
 ---pagebreak---                          Explanatory Memorandum
1.  The rules of origin set out in Protocol 2 to the EEC-Malta
    Association Agreement were amended by Decision No. 1/89 of the EEC-
    Mai ta Association Council following the introduction of the
    Harmonized System. This decision was made applicable in the
    Community by Council Regulation (EEC) No. 2229/89 of 18 July 1989
    (1), with effect from 1.1.1990.
2.  Decision No. 1/89 is accompanied by a Joint Declaration concerning
    the review of the changes to the origin rules as a result of the
    introduction of the Harmonized System. The Declaration states that
    the Association Council shall, as a matter of urgency, make an
    examination of the need to restore the substance of any rule of
    origin as it was before Decision No. 1/89, where it appears that an
    alteration results in a situation prejudicial to the interest of the
    sectors concerned. In such cases the Association Council must take a
    decision within a period of three months of the request being made to
    it by either of the parties to the Agreement.
3.  On 26 April 1991 Malta raised a practical problem which it has
    encountered concerning embroidered aprons and overalls falling under
    HS heading No. ex 6211.
    Before the Harmonized System was introduced, women's aprons and
    overalls were classified under CCCN heading No. 61.02, "Women's,
    girls' and infants' outer garments". For embroidered products of
    that heading, the origin rule which applied at that time was
    "Manufacture from fabrics, not embroidered, the value of which does
    not exceed 40% of the value of the finished product"
    In the HS, CCCN heading No. 61.02 was split up into various headings,
    and the "embroidery" origin rule is taken up in the HS transposition
    of the origin rules in relation to headings ex 6202, ex 6204, ex
    6206, ex 6209 and ex 6217.
    However, certain items covered by the definition "women's and girls'
    outerwear" of CCCN heading 61.02 fall, in the HS, under heading No.
    6211; but that HS heading was not included in the list of headings to
    which the "embroidery" origin rule applies. This has the effect of
    making the general rule for ex Chapter 62 applicable to these
    products, which     requires manufacture    from   the  yarn stage.
    Consequently, embroidered aprons and overalls which used to acquire
    originating status now do not.
    The problem raised by Malta shows that there are practical cases
    where the result of Decision 1/89 is a situation prejudicial to the
     interest of the sectors concerned. The Committee on Origin is
    therefore unanimously in favour of restoring the substance of the
    rule in question as it was before Decision No. 1/89.
(1) OJ MO. L 217, 27.7.1989, p. 1
 ---pagebreak--- 4.  The practical example given above already shows that it is not really
    possible to comply with the three-month period laid down in the Joint
    Declaration.
    The first requirement    in such cases is an in-depth discussion by the
    Committee on Origin, based on working documents prepared by the
    Commission departments. The Commission's proposal then has to be
    formally adopted and transmitted to the Council for discussion. The
    Council then has to adopt a common position and the Association
    Council has to adopt the decision (but it is no longer necessary to
    also adopt an implementing regulation).
    As there are already other cases up for review, which have been
    raised either by Member States or by EFTA countries in the context of
    other Agreements but for products which have identical origin rules
    in the EEC-Malta Agreement, it would seem that the decision-making
    process should be speeded up by giving the Commission authority to
    adopt the common position in these cases, which are of a technical
    nature, with no political implications.
    Moreover Council Regulations to this effect (1) have already been
    adopted in the context of the EEC-EFTA Free Trade Agreements, for
    the reasons set out above.
5.  Consequently, the following measures are proposed:
    (i)     a Decision of the EEC-Malta Association Council        amending
            Annex 111 to Protocol No. 2 of the Agreement;
    (ii)    a Council Regulation conferring on the Commission the power
            to adopt the common position on cases submitted under the
            Joint Declaration annexed to Decision 1/89 of the EEC-Malta
            Assoc iat ion Counc iI.
(1) OJ L 278, 27.9.1989, pp. 1, 5, 9, 13, 17 and 21.
 ---pagebreak---                                  Proposal for*a *••
                    COUNCIL REGULATION (EEC) No.            /91
                                of               1991
establishing   provisions for the       implementation of  the Joint    Declaration
annexed to Decision no. 1/89 of the EEC-Malta Association Council
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 113 thereof,
Having regard to the proposal from the Commission
Whereas   the Agreement   establishing      an Association  between   the  European
Economic Community and M a l t a C ) was signed on 5 December 1970;
Whereas the Joint Declaration annexed to Decision No. 1/89 of the EEC-Malta
Association Council    implemented     in the Community by Regulation (EEC) No.
2229/89 of    18 July   1989* 2 ) provides, under     certain   conditions,   for a
review   of  the   changes   made     to   the  rules  of  origin   following    the
introduction of the Harmonized System; whereas, by virtue of that Joint
Declaration, the Association Council must take a decision within a period
of three months of a request being made to it by either of the parties to
the Agreement;
Whereas this review concerns cases where the transposition of the existing
rules of origin    into the Harmonized System was not entirely neutral and
where it is necessary to restore the substance of previous rules of origin;
(1)    OJ No. L 61, 14.3.1971, p. 2
(2)    OJ No. L 217, 27.7.1989, p. 2
 ---pagebreak---                                                                                ~s~
Whereas for the purposes of the Decisions to be taken by the Association
Council, a common position has to be reached by the Community;
Whereas this decision-making process makes it impossible to comply with the
three-month   time  limit  laid down   in the Joint Declaration; whereas the
procedure   should   therefore  be   speeded  up   and the   Community's   common
position should be adopted by the Commission according to the procédure set
out in Article 14 of Council Regulation (EEC) No. 802/68 of 27 June 1968 on
the common concept of the origin of g o o d s O ) , as last amended by Council
Regulation (EEC) No. 456/91< 4 );
HAS ADOPTED THIS REGULATION
                                    Article 1
The Community's common position for the purposes of the Decisions of the
EEC-Malta Association Council concerning a review of the changes made to
the rules of origin following the introduction of the Harmonized System
pursuant to the Joint Declaration annexed to Decision No. 1/89 of the said
Association Council shall be adopted in accordance with the procedure laid
down in Article 14 of Regulation (EEC) No. 802/68.
                                    Article 2
This Regulation shall enter      into force on the third day       following  its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
Done at Brussels,
                                             For the CounciI
                                             The President
(3)    OJ No. L 148, 28.6.1968, p. 1
(4)    OJ No. L 54, 28.2.1991, p. 4
 ---pagebreak---                                      Draft
           DECISION NO.   /91 OF THE EEC-MALTA ASSOCIATION COUNCIL
                             Of               1991
             amending Annex 111 of Protocol No. 2 concerning the
             definition of the concept of "originating products"
                  and methods of administrative cooperation
THE ASSOCIATION COUNCIL,
Having regard to the Agreement creating an Association between the European
Economic Community and Malta, signed on 5 December 1970,
Having regard to Protocol No. 2 concerning the definition of the concept of
"originating products" and methods of administrative cooperation, and in
particular Article 25 thereof,
Whereas  the   Joint  Declaration   annexed  to  Decision  No.  1/89 of the
Association Council provides for a review of the changes made to the rules
of origin following the introduction of the Harmonized System where the
amendments result in a situation prejudicial to the interest of the sectors
concerned; whereas it also provides for the substance of the rule of origin
concerned to be restored as from 1 January 1990;
Whereas the rule of origin concerning "other garments, women's or girls",
embroidered, which was established by Decision No. 1/89 of the Association
Council, should be amended to restore the substance of this rule as it was
before the introduction of the Harmonized System,
 ---pagebreak---                                                                    *
HAS DECIDED AS FOLLOWS:
                                 Article 1
In Annex   III to Protocol  No. 2 to the Agreement    between  the European
Economic Community  and Malta   the wording of   the entry  relating to HS
headings Nos. ex 6202, ex 6204, ex 6206, ex 6209 and ex 6217 is hereby
replaced by that set out in the Annex to this Decision;
                                 Article 2
This Decision shall enter into force on 1 January 1990.
Done at Brussels,
                                         For the Association Council
                                              The President
 ---pagebreak---                                                                            8
                                    ANNEX
HS Heading    Description of product      Working or processing carried out
  No.                                     on non-originating materials that
                                          confers originating status
  (1)                     (2)                          (3)
ex 6202       Women * s, girls' and       Manufacture from yarn (1)
ex 6204       babies' clothing and        or
ex 6206       "other made-up clothing     Manufacture from unembroidered
ex 6209       accessories", embroi-       fabric provided the value of the
ex 6211       dered                       unembroidered fabric used does not
and                                       exceed 40% of the ex works price
ex 6217                                   of the product (1)
(1)   See Introductory Note 7 for the treatment of textile trimmings and
      accessories
 ---pagebreak---                                                                                   9
                                                                     ISSN 0254-1475
                                                              COM(91) 344 final
                                                      DOCUMENTS
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