CELEX: 51982PC0697
Language: en
Date: 1982-11-03
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2779/78 on the procedure for applying the ECU to legal acts adopted in the customs sphere (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 697
Vol. 1982/0217
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(82 ) 697 final
                                                    Brussels . 3 November 1982
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                                COUNCIL REGULATION ( EEC )
            amending Regulation ( EEC ) No 2779 / 78 on the procedure for applying
            the ECU to legal acts adopted in the customs sphere
                     ( submitted to the Council by the Commission )
COM ( 82 ) 697 final
 ---pagebreak---                        EXPLANATORY MEMORANDUM
The problem of applying the ECU in the customs sphere arises whenever
there are major fluctuations in the values of the Community currencies ,
given that certain customs duties are expressed in terms of the ECU .
In order to ensure that customs legislation should continue to reflect
financial reality as closely as possible , "but with the stability neces-
sarry for administrative purposes , the Council adopted in the 1978
Regulation ( ESC ) No 2779/78 of 23 November 1978 ( OJ No L 333, 3p.11 .
1978 ), which provides for the annual revision of the rates of the ECU
( &JA at that time ) used in the legal acts adopted in the customs sphere
and particularly in       connection with General Rule C 3 relating to
the application of the Common Customs Tariff .
As the aim of the CCT is to ensure a uniform level of protection in
oil Member States , it is inadmissible that , in the event of one or
more European currencies being devalued or revalued , without a
subsequent rapid realigument of the equivalent values of the ECU in
national currencies , the custoas duty charged on goods imported into
a Member State wjaose currency had been strengthened! should be appre-
c /ably higher than that charged on goods imported into a Member Sta
whose currency had weakened .
By fixing as a reference value the value of the ECU ( the unit which
lias repaced the jSUA in Community legislation ) obtaining on the first
working day of October, with effect from 1 January of the following
year, Council Regulation ( EEC ) No 2779/78 does not entirely eliminate
the danger of a major divergence between the ECU/naticnal currency
exchange rates 0 This has unfavourable repercussions in the customs
field and produces a situation that undermines the basic principles
of the CGT .
Clearly, the common market cannot be guaranteed to function smoothly
unless the legal system and administrative practice in the Member
States are such, that deflection of trade and shifts in the location
of activity can be avoided .
Consequently, as lono as the differences between Member States are
fairly small , the objectives laid down by the Treaty are complied
with} however, if differences in customs duties at Community frontiers ,
due to any changes in currency parities vers to widen } these dif­
ferences would be incompatible with the basic philosophy of the customs
union .
Since 1 October 1981 , there have been three readjustments of currency
parities s on 5 Ootober 1 98 1 f 21 February 1982 and 13 June 1982 .
 ---pagebreak---                                 -2-
As a result , the ECU rates currently in force in the customs field
no longer correspond to economic reality and therefore new parities
must be established which more closely reflect ourrent eoonomic condi­
tions in the Community .
In view of the particularities of the European Monetary System , the
Commissions staff , in seeking the right answer to the problem , have
opted for a solution which in principle maintains the status quo as
regards existing legislation ( the first working day in October remaining
the reference date ) but which provides for an automatic realignment
whenever there is a new currency parity in relation to the ECU ( reva­
luation or devaluation ) for the purposes of determining the classification
of goods , or the customs duty applicable under the Common Customs larif ,
or the anti-dumping duty .
This system has the advantage that it can be incorporated easily
into Regulation ( EEC ) No 1779/78 » while at the same time reflecting
eoonomic and monetary circumstances in the Member States .
As there have been three readjustments of parities within the EMS
since 1 October 1981 , the Commission considers that this Regulation
should come into force fairly soon .
 ---pagebreak---                    Proposal for Council Regulation ( EEC )
                   for applying the ECU to legal acts adopted in
                   the Customs sphere
THE COUNCIL OP THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community , and in particular Articles 28 and 43 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ( l ),
Having regard to the opinion of the Economic and Social Cormittee ( 2 ),
Having regard to the opinion of the Court of Auditors has been obtained,
Whereas Council Regulation ( EEC ) No 2779/78 // \/      conjunction with
Council Regulation ( EEC , Euratom ) No 3308 / 80 ' ,
lays down the detailed rules for applying the ECU to legal acts
adopted in the customs sphere }
Whereas Artiole 2 of Regulation ( EEC ) No 2779 / 78 provides that th ^ v-alu®
of the ECU in national currencies to he applied to legal acts adopted
in the customs sphere shall be fixed once a year ; whereas the rates
to be applied are those obtaining on the first working day of October,
with effect from 1 January of the following calendar year ;
Whereas this annual system of converting the ECU into national cur­
rencies is designed to maintain the stability neoessary in the customs
field : whereas , however , it is necessary, when there is an adjustment in the
                                          • • •/• • •
(1
 (2>                          o <
 ( 3) 0J No L 333 , 30.11.1978 / P-5
 (4 ) 0J No L 345 , 20.12.1980 / p.1
 ---pagebreak---                                      -4-
  parity of one or more Community currencies during the course of the
  year , to change the rate to "be used for converting the ECU into
  national currencies in such a way as to obviate too marked a departure
  from economic reality and the •                risks of disruption of trade-
  flows ;
  Whereas "by applicatipn of Council Regulation ( EEC ) Wo 1167/76 of 17
  May 1976 amending Annex IV to Regulation ( EEC ) No 816/70 laying down
  additional provisions for the common organisation of the market in wine
  and the Common Customs Tariff as regards the exchange rates applicable
  to       customs duties on certain wines ( 1 ), the rate to he used for
  converting the ECU , in which the customs duty applicable to the products
  falling under subheading               22.05 C of the Common Customs Tariff
  is expressed , into national currencies , is the representative rate if
  such a rate is laid down tinder the common agricultural policy ; whereas
  it is therefore neoessary to provide for an adequate solution for this
  eventuality ,
  HAS ADOPTED THIS REGULATION :
                                 Article 1
  Paragraphs 2 , 3 and. 4 of Artiole 2 of Regulation ( EEC ) No 2779/78 are
  hereby replaced by the following :
" 2 . The value of the ECU in national currencies to be applied to legal
      acts adopted in the customs sphere shall be fixed once a year . The
      rates to be applied shall be those obtaining on the first working
      day of October, with effect from 1 January of the following calendar
      year. If a rate is not available for a particular national currecy,
      the rate to be applied for that currency shall be that obtaining
      on the last day for which a rate was published in the Official
      Journal of the European Communities .
      The rates to be used for each ca lendar " year are set out in the pre­
       liminary provisions of the annex to the annual regulation amending
      Regulation ( EEC ) No 950 / 68 on the Common Customs Tariff .
                                            • • •/ • • •
( 1 ) 0J No L 135 of 24.5.1976 , page 42
 ---pagebreak---                                        -5-
  3 . However, where a change in the parity of one or more national cur­
        rencies occurs during a calendar year, the rates to he used for
         converting the ECU into national currencies , for the purposes of
        determining the tariff classification of the goods , the customs duty
        applicable under the Common Customs Tariff or the anti-dumping
        duty shall he those obtaining on the first day following the date
        of that change on which such rates are available for all the Communi­
        ty currencies , with effeot from the third day after the date on
        which these rates are available .
        If a change in parities occurs after the first working day of October
        oy way of derogation from the provisions of paragraph 2 the rates        '
        to be used for converting the ECU into national currencies with
        effect from 1 January of the following calendar year for the purposes
        of determining the tariff classification of goods , the customs duty applicable
         under the Common Customs Tariff or the anti-dumping duty
        shall be those resulting from that change of parities .
        The rates resulting fron. the application of this paragraph shall be
        published in the C series of the Official Journal of the European Communities .
 4 . The provisions of paragraph 2 do not derogate from the rules laid
        down for the conversion of the ECU into national currencies within
        the framework of the documentary evidence specified in certain pre­
        ferential arrangements or in the agreements concluded with certain
        third countries .
5 . Byway of derogation from the provisions of paragraphs 2 and 3, the rate to
     ■ be used for the conversion into national currencies of the ECU in
        which the customs duty applicable to products falling under sub­
        heading 22.05 C of the Common Customs Tariff is expressed , sha 1 1 be thf> representa­
       tive rate wber? such a rate is laid down under the common agricultural policy ."
                                  Article 2
        This Regulation shall enter into force on the day following its pub­
        lication in the Official Journal of the European Communities .
        This Regulation shall be binding in its entirety and directly appli­
        cable in all Member States .
       Done at Brussels ,                           for the Council .
                                                      The President