CELEX: 51974PC0814
Language: en
Date: 1974-06-05
Title: DRAFT OP DECISION OF THE JOINT COMMITTEE adding and modifying the lists A and B annexed to Protocol No 3 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 814
Vol. 1974/0125
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION O? THE EUROPEAN COMMUNITIES
                                                           COM(74)814 final
                                                           Brussels , 5 June 1974
                       f,
                                      DRAFT OP
                          DECISION OF THE JOINT COMMITTEE
       adding and modifying the lists A and B annexed to Protocol Ho 3
                  ( submitted to the Council "by the Commission)
                                                                             \
  COM (74) 814 final
 ---pagebreak---               COMMUNICATION Jj^M__THE[ COMMISSION TO THE COUNCIL
       Evolution of manufacturing techniques and international economic
conditions which have occurred for certain products , since the entry into
force of tne agreements concluded between the Community and the EFTA
countries , have brought the need to ease the specifip rules of origin
                                                         4
applying to these products , which are included in the Lists A and B
annexed to Protocol No 3 which is an integral part of the agreements .
       This is the object of the draft decision of the Joint Committee
EEC- - Sweden which is appended ; it is proposed that the Council adopts
this r.s the common position of the Community for the purposes of the
Joint Committees set up by the different ESC- EFTA agreements .     The present
draft is relative to Sv/ eden and constitutes a model for identical drafts
for all the other agreements .
       The modifications listed in the draft decision have been the object ,
from the moment the requests were made either by the Member States or the
EFTA countries , of numerous and deep discussions in the Customs Legislation
Committee as well as in the EFTA-Group where these requests were sent .
       The majority of the envisaged modifications have received the unanimous
agreement of the experts from the Member States .
       There remain , however , certain changes upon which it has not yet been
possible to agree . Among them^hose present in this draft decision , the
Commission on its pr.rt is able to adopt a favourable position . On the other
hand for other products the Commission is unable to propose the modifica­
tion of the existing rules .
                                             *
 ---pagebreak---       Among the changes listed in the annexed draft , which have uot received
unanimous agreement , the following must be mentioned :
- Felt and articles of felt , whether or not impregnated or coated : ex 59-02
   This modification , proposed for List A envisages the possibility of
   obtaining felt and felt articles from fibres or continuous polypropylene
   filament of which the value does not exceed ^0 % of that of the finished
   article . A reserve exists on the part of the Belgian and Italian dele­
   gations ; the Commission feels that the evolution of economic conditions
   concerning trade in the raw materials used justifies the modification
   which is . envisaged .
- Silk Chapter : 50.04 to 50.07
   The proposed modifications , concerning both Lists A and B , in this
   field , would allow the manufacture of originating silk yarn from carded
   or combed waste of third country origin as well as originating waste
   from uncombed or uncarded third country waste .
         Only the Italian delegation maintains a reserve an this chapter ,
   feeling that the proposed rule could endanger the production of raw silk
   in the South of Italy . The Commission feels that the envisaged modifica­
   tions will not hinder the Italian interests . In effect these modifications
 . have been asked for by the Coordination Committee of the Textile Indu­
   stries of the Community v;ho have said that they havereceived the unanimous
   agreement of all the parties concerned in the Community and in the EFTA .
- Films of ionemers : ex 39.02
   The proposed modification concerns the replacement of the rule m List B
   which allows the use of third country products tip to 20 % of the value
   of the finished product by a rule describing the manufacturing process
   to.be used to obtain originating products .
         The German , French and Italian delegations maintain a reserve on
   this . The Commission feels that the economic motivations of the Finnish
   request - that is to say the insufficiency of the level of 20 % in
   List B - are well founded taking account of the recent evolution of
 ---pagebreak--- the cost of raw materials used for manufacturing films of lonomers
aarketed under the name " Surlyn". ' If , on the one hand the upward
manipulation of the percentage rule is considered as constituting a
dangerous precedent , for other products with which at present we are
not concerned , the Finnish request can be satisfied by the replacement
of the actual percentage rule by one of process which would have the
advantage of applying only to the product concerned . In effect , the
films of ionomers in question are made by fusion of ionomer granules
only , wi thout the use of additives which would modify the characteristics
of the film .   The fusion is extruded to obtain a continuous film which
is then cooled . This operation is followed by a surfacing treatment and
the filn is then made into rolls . At the end of the process the film
is unrolled and cut to form . This process of manufacture' is stated in
the pr i-osed rule . The Finnish exports of these films amount to 100,000 kg
of a value of 1,000,000 FM .
Unwrought aluminium : ex ? 6.01
This notification concerns List B as well g&d envisaged allowing the
obtention of unwrought aluminium by a thermal or electrolytic treat­
ment of non alloyed aluminium obtained from waste and scrap .
Only the French delegation has made a reserve cn this point feeling
that the production of aluminium alloys from unalloyed aluminium does
not constitute a sufficient transformation .
Refined lead : ex 78.01
This proposed modification concerning List B envisages permitting the
manufacture -of refined lead by refining thermally bullion lead .
The Italian delegation maintains a reserve on this , feeling that it <
could put in danger the Italian production of unrefined lead . The Com­
mission feels that the proposed rule does not provide any particular
danger for the Italian production , taking into account that the needs
of E.FTA ana the EEC for lead cannot be met by Italy alone . Additionally ,
 ---pagebreak--- it is to be noted thp.t the rule proposed is tho sime as that which
already exists for copper . It has , additionally , the advantage of
favouring the refining industries in the Community .
Sewing machines ; ex 84.^1
The present rule in List A stipulates that sewing machines must be
made by working , processing or assembly in which non-originating
products and parts used do not exceed kO % of the value of the
finished product , and on condition ;
- that 50 % at least of the value of the products and parts used for
  the assembly of the head ( motor excluded ) are originating products
  and
- that the thread tension , crochet and zigzag mechanismes are criginatin
  products .
The proposed modification , which concerns Lists A and B , envisages the
elimination of the particular conditions and aligns the rule for sewing
machines with the general rule laid down for chapter 84 which only
stipulates a uniform percentage of 40 % of " non-originating materials .
This modification takes account of the fact that the particular
conditions in force for determining the origin of sewing machines
risk having the effect cf an exagerated protection . Given that the
higly industrialised countries depend on as much world wide co-opera­
tion as possible , a rule of origin as restrictive as this , based
practically on the formula that only accessories and parts of
secondary importance can have third country origin , constitutes a
barrier to liberal trade .
Rules of origin as limited as this must , in that case , be justified
as the last resort in a case cf unfair competition or a .r.as nivs threat
to the entire industrial sector . Otherwise there is no reason for cbcm »
From the viewpoint of a liberalisation of world trade and in the
absence of a massive menace from outside , the Commission feels thc.t
there is every reason to apply , for these products , the 40 % rule
laid down in general for the whole of chapter 84 .
 ---pagebreak---                                    - 5 -
       Among the requests for modifications upon which it was not
possible to agree and upon which the Commission does not feel it possible
to take a favourable view , it is necossary to mention the following :
- The copper problem - List A : headings 7k . 03 , Ok , 05 » 06 and 07 and
  additionally 85.23 in the exception to the general rule for chapter
  85 .
  This concerns a request of the United Kingdom delegation * The Belgian ,
  German and French delegations have taken a diametrically opposed view .
  The actual state of affairs can be summarised as follows :
         The present rule in List A stipulates that the products must
  be made from basic materials ( notably refined copper ) of which the
  value does not exceed 50 % • To this rule , another factor applies as
  a result of the fact thiat this rule of 50 % does not .apply to the
  copper obtained under the rule in List B which states that refined
  copper may be obtained from non-originating unrefined copper .
         The U. K. position consists of asking the replacement of the
  percentage rule in List A by a rule based cn the method of manufacture ,
  on the basis of the two folloi/ing arguments J
  - firstly , the great increase in the world price cf copper leads to the con­
    sideration of . the 50 % as inappropriate and , at lerrst not enough .
  - secondly , the factor of the List B is not sufficient to ease ' this
    difficulty bocause tha need3 of the U.K. for copper apply to copper
     of very high quality ( 99.99 % pure copper ) of which the Community
     and EFTA do not have sufficient , and which is necessary because of
     the high degree of ductability and conductability which the finished
     products need .
                                                                              \
         The most important diference in view is that of the quality of the
  copper needed . . The Belgian and German hold contrary to the U.K. that
  the production of copper in the Community is sufficient to cover the
  needs of British exports to EFTA .
                                                              • /• • e
 ---pagebreak---                                        - 6 -
   The Comma, re :" does not foel able to take a favourable position
   on the U.K. request in view of the Community capacity to produce high
   quality copper . Additionally , the Commission notes that the present
   rule in List B , v.'hich allows the refining of non-originating copper ,
   is sufficient especially taking into account the present efforts to
   create refining plant in the Community which they do not want to hinder .
- Tubes for reactor elements : ex Si . Ok
   This concerns a Norwegian request for a modification of List B consisting
   of replacing the existing rule cf r.anufacture of these tubes from
   unworked base metals by an easier rule allowing manufacture from base
   metals v/hich have been rough cast . The experts of the Member States
   have not been able to give their agreement to this request .
          The Commission is not convinced of the substantial nature of the
   process which would be prescribed by the new rule , which could present
   a danger of being anr>li<id   011 an extended scale to products net con­
   cerned in the Norwegian request .
- Graphite olectrodec : ex 85.2*t
   This request by the EFTA countries which envisages permitting the
   manufacture of this product from ungraphitised carbon electrodes , has
   not . received the agreement of the Belgian , French and Italian delega­
   tions . The Commission does not consider the envisaged process as being
   substantial , that is to say the graphitisation .
-. Works trucks : ex 87 . 07
   This Finnish request envisages allowing the utilization of 25 % of the
   non originating parts from the same tariff heading . This request is
   based on the fact that the majority of parts for the trucks ( notably
   the gear boxes and axles ) are in the same tariff heading , which causes
   a difference in treatment vis a vis the other machines in Chapter 85 ,
 ---pagebreak---                                 - 7 -
where the parts are net in the same tariff heading and which thus
benefit from the more favourable rule in List A. In the view of
the Finnish , this difference is net justified as we are concerned
here with an equal transformation .
      This request has met the opposition of the Belgian , French
Italian and German delegations . The Commission is of the opinion
that in order to satisfy the Finnish requirements this proposition
is too extensive , especially concerning the percentage of 25 %j
talcing into account the existence of the tolerance of 5 % for List B.
Additonally , the Commission considers that it is necessary to adopt a
very prudent attitude in this sector , bearing in mind the economic
implications that the modification of the existing rule would have
on the state of foreign competition .
                                 *
                             *        *
      It is therefore proposed that the Council adopts the annexed
draft as tie joint position of the Community in the various Joint
Committees EEC-EFTA . For this it is to be noted that ; the Joint
Committees are orientated towards bringing these necessary and urgent
modifications into force as from 1 July 197^.
 ---pagebreak---    AGREEMENT EEC-SWEDEN
    The Joint Committee
                                DRAFT OF
               DECISI ON No   /Ik OF THE JOINT COMMITTEE
               adding and modifying the lists A rjid B
                        annexed to Protocol No 3
THE JOINT COMMITTEE ,
Having regard to the Agreement between the European Economic Community
and the Kingdom of Sweden , signed at Brussels 0 :1 22 July 1972 ,
Having regard to Protocol No 3 concerning tho concept of "originating
products " and to the methods of administration cooperation ( afterwards referred
to as Protocol No 3 ) ? nd in particular article 28 thereof ,
Whereas experience aquircd since the entry into force of the agreement
shews that the rules of origin laid down for certain products in Protocol
No 3 , must be adapted to take account of the evolution of manufacturing
techniques of those products and the international economic conditions
concerning trade in those products ;
Whereas it is now convenient to add to     and modify these rules ,
 ---pagebreak--- DECIDES
                              F?_rst Article
1.      List A annexed to Protocol No 3 is added to by the insertion ,
   in a position determined by the numerical order of tariff headings ,
   of the rules in Anne :: I.
2.      In list A , annexed to Protocol No 3 » the rules concerning hea­
   dings or chapters Nos 50.0*f , 50.05 , 50.06 , 50.07 , 5^.03 , 59-02 , ex
   chapter 8*f are replaced by the rules in Annex II .
3»      In list A annexed to Protocol No 3 'the text contained in the
   fourth column for headings Nos 18.02 , 18.C3 , 18.0^, 18.05 and 18.06
   is to be read in conjunction with footnote ( 1 ) as follows : "( 1 ) These
   particular provisions do not apply when the products are obtained
   from products v.'hich have aquired the character of originating products
   by meeting the conditions set out in list B'u' .
        In list A annexed to Protocol No 3i the rule concerning heading
   No ex 84.^1 is cancelled .
                                 Article 2
1.      List B annexed to Protocol No 3 is added to by the insertion m
   the place determined by the numerical order cf tariff headings , of the
   rules in Annex III
2.      In list 3 annexed to Protocol No 3i the rules concerning ex chap­
   ter 39 and headings Nos ex 70.13 and ex 18^-. M are replaced by the rules
   in Annex IV .
 ---pagebreak---      The rule at the top of list B annexed to Protocol No 3 as fol­
lows : " Incorporation of non-originating materials and parts in boilers ,
machinery , mechanical appliances , etc ., of Chapters 8^f to 92 and in
boilers and radiators of heading No 73*37 does not make such products
lose their status of originating products , provided that the value
of these products , parts and pieces does not exceed 5 % of the value
of the finished product " is replaced by the following rule : " Incor­
poration of non-originating materials and parts in boilers , machinery ,
mechanical applicances etc ., of Chapters 8 ^ to 92 , in boilers and
radiators of herding No 73-37 end in the products contained in headings
No 97.07 and in No 98.03 does not make such products lose their status
of originating products , provided that the value of these products does
not exceed 3 % of the value of the finished product ."
 ---pagebreak---                                                                        ANNEX I
1I      Products obteined
                                    !I
                                                                Working or processing
                                       working or processing   that confers the status
                                       that does   not confer
   Customs Tariff
                                           the status of       of originating products
     heading No       Description                                when the following
                                       originating   nroducts    conditions are met
      ex 59-02        Felt and ar­                            Manufacture either from
           (1)        ticles of                               natural fibres or , from
                      felt , wh3-                              chomical products or
                      ther or not                              textile pulp ; manufac­
                      impregnated                              ture from fibre or con­
                      or coated                                tinuous polypropylene
                                                               filament of a denomina­
                                                              tion less than 8 denier
                                                              of which the value does
                                                              not exceed kO % of the
                                                              value of the finished
                                                              ■product
      ox 51.01        Fire resis­                             Manufacture from uncoa­
      ex 61.02        ting equip­                              ted cloth of which the
      ex 61.10        ment of                                  value does not exceed
                      cloth cove­                              40 % of the value of
                      red by foil                              the finished product
                  I . of elumini-
                      sed polyester
                  I
 ---pagebreak---                                             -    -
                                                                      ANNEX II
       Products obtained                                       V.orking or processing
                                      working or processing   that confers the status
                                      that does    not confer
  Customs Tenff                                               of originating products
                   ' Description          tne status of
    heading No                                                  when the following
                                      originatir.g   products   conditions are met
      50.0b          Silk yarn ,    I                         General rule of change
         (1 )        other than                               of tariff heading
                     yarn of noil
                     or other
                     waste silk ,   i
                                    i
                     not put up
                     for retail
                     sale
                                    !
      50.05          Yarn spun                                Manufacture from pro­
         (1 )        from silk                                ducts of heading No    ,
                     waste other                              50.03
                     than noil ,
                     not put up
                     for retail
                     sale           I
                                    I
      50.06          Yarn spun                                Mmufacture from pro­
         (1 )        from noil      I                         ducts of heading No
                     silk , not                               50.03
                     put up for
                     retail sale
      50.0?          Silk yarn                                Manufacture from pro­
         (1 )        and yarn                                 ducts of headings Nos
                     spun from                                50.01 , 50.02 or 50.03
                     noil or
                     other waste
                     silk , put up
                     for retail
                     sale
      5^.03          Flaw or                                  Manufacture from pro­
         (1 )        ramie yarn ,                             ducts either of heading
                     put up for                               No 5^.01 neither carded
                     retail sale                              or combed or of heading
                                                              No 5h . 02
   ex Chapter        Boilers , ma- :                          Working , processing or
      8h             chinory and                              assembly in which the
                     mechanical                               value of the materials
                     appliances                               and parts used does not
                 1
                     excluding                                exceed kO % of the value
                     refrigerators                            of the finished product
                 I
                     and refrige­                             (1)
                     rating equip­
                     ment ( elec­
                     trical and
                     other ) ( No
                     84.15 )
T
I
 ---pagebreak---                                                                      ANNEX III
                                                        ■ 1 1 ■" ■  ■
                 Products obtained                 '■forking or processing that
                                                      confers the         status of
 Customs Tariff
                                                   originating products when
                             Description            the following conditions
    heading No                                                     are   met
     ex .58.07      Sulphate turpentine , puri­   Purification consisting of
                    fied                          the distillation or refining
                                                  of raw sulphate turpertine
     ex 39.02       Films of îonoraers            Manufacture from a partial
                                                  salt of thermoplastic which
                                                  is a copolymer of ethelene
                                                  and of metacrylic acid par­
                                                  tially neutralises by metal­
                                                  lic icns , principally of
                                                  zinc e.nd sodium '
     ex 50.03       Silk waste caraed or combea   Carding or combing waste silk
     ex 59 . 14-    Incandescent gas mantles      Manufacture from tubular gas-
                                                  mantle fabric
     β3X 75.01      Unwr ought nickel except      Refining of wasto by electro­
                    nickel alloys                 lysis , by melting or. by che­
                                                  mical means of waste and sera
                                                i
                                                i
     ex 76.01       Unwrought aluminium           Manufacture by thermal or
                                                  electrolytic treatment of
                                                ι unalloyed aluminium and
                                                  scrap
     ex 78.01       Refined lead                  Manufacture by thermal refi­
                                                  ning from bullion lead
r :               j
     ex 83.O6     | Indoor ornauents made -from   Working or processing where
                  ! base metals other than sta­   non originating products are
                    tuettes                       used which do not exceed
                  i
                                                  30 % of the value of the
                                                  finished product
 ---pagebreak---                                         - 7 -
                  Products ootar.ned                , Working or processing . that
                                                        confers the   status of
 Customs Tariff                                       originating products v/hen
     heading No              Description               the following conditions
                                                                are  met
          85 .      Microphones and stands the­     Working , processing or assem­
                    refore ; loudspeakers ; andis bly in which the value of the
                    frequency electric amplifiers non-originating materials anc
                                                    parts used does not exceed
                                                    ^•0 % of the value of the fi­
                                                    nished product and provided
                                                    that at least 50 % of the ma­
                                                    terials and parts used are o­
                                                    riginating products ( 1 )
          65.15     Radio telegraphic and radio-*   Working , processing or assem­
                    telephonic transmission and     bly in which the value of the
                    reception apparatus ( inclu­    nor-originating materials and
                    ding receivers incorporating    parts used does not exceed
                    sound recorder or reprodu­      ^0 % of the value of the fi­
                    cers ) and television cameras ; nished product and provided
                    radio navigational aid appa­ that at least 50 % of the ma­
                    ratus , radar apparatus and     terials and parts used are
                    radio remote control appa­      originating products ( 1 )
                    ratus
       ex 9^.61     Chairs and other seats          Working , processing or assem­
                    ( other than those falling      bly in which unstuffed cotton
                    within heading So 9^-02 )        cloth is used of a weight of
                    whether or not convertible       3>OOgm/m2 or less in the form
                    into beds made of base           ready to use , of which the
                    metals                           value does not Exceed 25 %
                                                     of the value of the final
                                                    product ( 2 )
       ex           Other furniture of base         Working , processing or assem­
                    metal                           bly in which unstuffed cotton
                                                     cloth is used of a weight of . . .
                                                     300gr/m2 or less in the form
                                                     ready to use , of which the
                                                     value does not exceed 25 %
                                                     of the value of the final
                                                    product ( 2 )
( 1 ) .The application of this rule must not have the effect of allowing the
       exceeding of the percentage of 3 % for non-originating transistors laid
       down in list A for the same tariff heading
( 2 ) This rule does not apply vfhen the general rule of change of tariff hea­
       ding is applied to the other non-originating parts which are part of the
       composition of the final product
 ---pagebreak---                                       8 –
                                                        ANNEXE IV
              Products obtained                Working or processing that
                                                 confers the status   of
Customs Tanff                                  originating products when
  heading No             Description            the following conditions
                                                         are  met
 ex Chapter     Artificial plastic materials , Working or processing in
    39          cellulose ethers and esters ,  which the value of the non-
                artificial resins and articles originating materials used
                made of these materials , ex­  does not exceed 20 % of the
                cepting films of ionemers      value of the finished pro­
                ( ox 39-02 )                   duct
       70.13    Glassware ( other than arti­   Cutting of glaéà objecta
                cles .fulling in heading No          of which the value does
                70.19 ) of a kind conmonly     not exceed 50 % of the value
                used for table , kitchen ,     of the finished product or
                toilet or office purposes ,    decoration , excepting series
                for indoor decoration cr si­   printing done entirely by
                milar uses                     hand , of mouth blown glass
                                               objects of which the value
                                               does not exceed 50 % of the
                                               value of the final product
   ex 8*f-Hl    Sewing machines , including    working , processing or assem­
                furniture specially desi­      bly in which the value of the
                gned for sewing machines       non-originating materials anc
                                               parts used does not exceed
                                               ^0 % of the value of the fi­
                                               nished product