CELEX: 51988PC0276
Language: en
Date: 1988-05-16
Title: Proposal for a DECISION OF THE JOINT COMMITTEE EEC/SWEDEN modifying Protocol No 3 on the concept of originating products and methods of administrative cooperation in order to simplify the cumulation rules#Proposal for a COUNCIL REGULATION (EEC) on the application of Decision No /88 of the EEC-Sweden Joint Committee modifying Protocol No 3 concerning the definition of the concept of 'originating products' and methods of administrative cooperation in order to simplify the cumulation rules#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 276
Vol. 1988/0086
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
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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 Community and the
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(88 ) 276 final
                                                  Brussels , 16 May 1988
                                   Proposai for a
                DECISION OF THE JOINT COMMITTEE EEC / SWEDEN
modifying Protocol No 3 on the concept of originating products and methods
            of administrative cooperation in order to simplify
                                the cumulation rules
                                   Proposal for a
                            COUNCIL REGULATION ( EEC )
                                                     \
on the application of Decision No           / 88 of the EEC-Sweden Joint Committee
         modifying Protocol; No 3 concerning the definition of the
             concept of 'originating products' and methods of
                             ■ C."                   - -j
                   administrative cooperation in order to
                                 •                   A/
                       simplify ; the cumulation rules
                        ( presented by the Commission )
 ---pagebreak---                                                                           ? оП-
                              EXPLANATORV MFMJRANDMM
I.   OBJECTIVE OF THE CTmiSSION PRDTOKAL TOR          A rFJCIRION OP        .JOINT
     ocmiTreFS ïBc/EPm-oaïwrrRiES
     The Canriissian proposes to simplify the diaqonal cumulation rules by
     multilateralizinq the existinq bilateral cumulation in trade between
     the Oonrrnunity and FTOA countries .
il . umoxmcN
     1 . The Free-Trade Agreements concluded between the Ooronunity and the
         individual ETOA countries have already been in force for If years .
         Mast of these Aqreements cover only industrial products ( Chapters
         2f to Q7 of the C.C.C.N ) includinq certain industrial products in
         which aqricultural products are incorporated ( Protocol Mo 7 of the
         Aqreements ) .
     2 . In a free trade zone , as distinct from trade within the Customs
         Union , qoods must originate in the exporting partner country in
         order to benefit from duty-free entry into the importing partner
         country .
     3 . To obtain preferential origin :
         - the goods must be wholly obtained in a partner country ( from
           local material ) or ,
         - if because    of  the   international  division   of  labour  non-local
           material or sam finished qoods have been used in the exporting
           partner country, these qoods must be sufficiently worked or
           processed there fchanqe of tariff headinq , requirsnent of a
           certain additional value or satisfaction of specific conditions ) .
         ffcwever , the   absence    of  complete   or   sufficient    working    or
         processing in an exporting partner country may be compensated by
         the   cumulation   rules .  Cumulation   permits   that   the  operations
         required to confer origin are not necessarily carried out within
         the territory of the exporting partner country , under cumulation ,
         workinq or processing of material or semi-finished qoods carried
         out in another partner country can , within certain limits , be taken
         into account .
         Ihe concept of cumulation is an incentive to utilize material
         manufactured within the free trade zone .
 ---pagebreak--- 'Ki-i        bvy - O' I'- ; ILL'AVfff V fii'.'IS 1 -,                T-y   1' '"I       W' Y.-v
1 . In trade between the Community and FFTA countries there Is quite
     naturally in the                first plane a bi latere 1           nu; .1 at leu , as the
      GtAianr-nity has concluded a Free Trade Agreement v.d ch each of the
     EFTA countries separately , arid various preferant ial tones have Vtaen
      created . This applies reaardless of whether in the country of final
     manufacture third country material is utilize ] or not . Tn order to
     ber.afit from bilateral cumuln l" i on , the finished ponds have to be
      exported from the partner country in which Hie final manircanturo
     has been carrier! out , exclusively into* I ho preforpil ial partner
      country which has suppl. Led the notorial or semi -f irhshed products
      utilised .
      In this frameverk , bilateral cumulation provides that for the
      evaluation of sufficient workinq or processinq , materials or
      semi-finished qoods oriqinatinq in one partner country are
      considered as oriqinatinq in the other partner country .
 2 . In order to take account of the connection existinq bevond the same
      preferential zone between FTC firms and firms established in
      various FFTA countries , in parallel with bilateral cumulation , the
      diagonal ( multilateral ) cumulation which links the different free-
      trade zone areas has been aqreed . 'The diaqonal cumulation refers to
      those cases where qoods are exported                       into another preferential
      partner country than that which has suppl ied the material or
      semi-finished products utilized .
      The diagonal cumulation rules are , hewsver , much more restrictive
      and complicated than those of the bilateral rules :
      a ) floods manufactured in the rewnuriit-y nr in an rprA country using
          exclusively products originating in any of the seven partner
          countries            fulfil       the       conditions  to    obtain      preferential
          treatment .
      b) The diaqonal cumulation system also applies when , together with
          oriqinatinq products , third country materials , parts , etc . are
          used . In this context the rules are as follows :
          - where a percentaqe rule in the List in Annex TIT limits the
             proportion in value of non-oriqinatinq products that can be
             incorporated under certain circumstances , the added value must
             have been acquired in each of the countries in accordance with
             the percentaqe rules and with the other rules contained in the
             said list without possibility of cumulation from one country
             to another ( Article 2(ll , A(b ) and n(b ) of Protocols N° ,11 .
             Furthermore , no non-oriqinatinq product may be incorporated if
             it only undergoes the insufficient workinq or processinq
             provided for in Article 5 ( 5 ) ;
                                                                                                 3
 ---pagebreak---                                        - 3 -
             - in the other cases , non-oriqinatinq products may be used only
               in a proportion not exceed inq in total value ^ of the value
               of the product obtained and provided that they would not have
               caused the products exported in the first place from the
               partner country to lose their status of products oriqinatinq
               in the latter had they been incorporated there ( Art . 7 ( 7 ) 1 .
IV. RH3QUEST FROM THE EFTA OTiWTRI*K AND COmtSSICW PROPOSAL
    1 . Since 197S the EPTA countries have requested a simplification of
         the oriqin rules .
    2 . In 1979 the Commission submitted two proposals to the Council
         in this respect :
         - one   concerned   the   introduction of   the alternative  percentaqe
            rules simplifyinq the percentaqe rules with reqand to the
            products within Chapter 94 to 92 of the C.C.C.M. aiminq at a
            reduction of the costs and administrative problems enqendered by
            the application of the rules set out in Protocol Mo 3 ;
         - the other concerned the simplification of the diaqonal cumulation
            rules . The Ccrrsmission proposed a uniform cumulafion system takinq
            into account the utilisation of materials , parts and components
            oriqinatinq in one of the partner countries of any of the
            Agreements without the restrictions of the old diaqonal system .
            In other words , the Commission proposed a uniform system which
            put bilateral and multilateral trade on the same level .
     3 . The Council adopted the first proposal eoncemina the alternative
         percentaqe rule in 1 Q92 .
         The Council could not , however , adopt the simplification of the
         diaqonal cumulation rule due to an objection raised by two Member
         States . The Commission has never withdrawn this proposal .
v.  EwmracN OF THE PCSJTICAL AND HorynMic STTUAmirre
         At the meetinq of 9 April 1.P94 in Tjixemboura between the Ministers
         of the EFTA Countries , of the Member States and the Commission the
          idea of a dynamic "European Economic Space " was created . This
          idea was solemnly laid down in the Luxerrihourq Declaration .
          In this spirit , the Ministers undertook in the Luxembourq Declara¬
         tion that they should continue their efforts to improve the free
          circulation of the industrial products concerned and in this
          context the field of simplification of the oriqin rules vras
          expressly mentioned .
     2 . The EFTA countries have reiterated their request that the diaqonal
          cumulation rule should be simplified .
 ---pagebreak--- VI » Jiüïxf GBfJBEiifcTr/EPiiR. SVxBTf
     1 . In the follow-up to the Luxerihcurq Peclaration , the oriqin experts
         of the Community and the EFTA countries havs teen requested to
         carry out a study on , the functionina of the cumulation rules
         applied between the Onmnunity and I he various FFTA countries ,
     2 . In this study the present di.uqonnl cumulation rules are siroriqly
         criticised :
         a ) at  first the study underlines            that    these rules are very
             difficult to understand . Pven for experts , the application o F
             the rules in question poses serious problems of interpretation .
             This situation , caused by the complexity of the rules ,               is a
             constant source of difficulties both for exporters who have to
             apply such rules and customs administrations responsible for
             ensurinq their application .
             It may be concluded that for this reason alone in many cases
             diagonal cumulation is not applied by industry and that these
             rules ,   instead     of   favour inq mutual   utilization of material
             originating      in   the    Community  and   the   KKI'A ,  make   it mare
             difficult ;
         b) secondly, the study reqrets that the substance of the provisions
             of the diagonal cumulation rule itself with its restrictions
             only very partially corresponds to the obiective of encouraginq
             the use of products oriqinatinq in the partner countries .
             In effect , in add i Mon to Hio administrative burden these rules
             impose ( need to keep accounts which at anv lmment allow for the
             oriqin of each element enterinq into the manufacture of the
             product to be exported to be traced 1 , the exporter cannot be
             certain    that     the   same   product  will    fulfil    the   conditions
             required to obtain preferential oriqin for each KM'A country of
             destination ;     sometimes he qets , and sometimes he is refused
             preferential oriqin . In other words : a product manufactured in
             the Gonmunity could be eliqible for duty-free treatment if sent
             to one FTFTA country but not if sent to another rtTA country
             dependinq purely of the sourcinq of the imputs used . It is
             difficult for manufacturers to understand why this should be so
             and difficult for them to apply in practice . Because of
             this , exporters     are    led  to  renouncinq    the    use   of  products
             oriqinatinq in the economic zone             in favour of usinq third
             country parts without any limitation as laid down in the system
             of the diaqonal cumulation .
 ---pagebreak---                                         - 5 -
VII . oopmawT OF TTTR pfgsmr oomrssicw PROPOSAL
      1 . This proposal is intended to renew the proposal the Commission made
           to the Council in 1979 .
      2 . Havinq reqard to the legal requirements ( Art . 29 of Protocol M°
           3 ), this proposal replaces the recommendation tor a Council decision
           authorizing the Commission to negotiate with the             States a
           simplification and harmonization of the cumulation rules set out in
           docvmerrt COM/78/746 final of 11 January, 1979 .
VIII . MXMMTC ESffiHWPIW OF THE PROPOSAI,
      1 . The proposal is based on the understand inn that extended free use
           of each other’s raw materials , semi-manufactures , parts and ccrnpo-
           ponents would be of mutual advantaqe and strengthen the European
           position as a whole and give an incentive to use inputs oriqinatinq
           in the Free Trade Tones in preference to third country ones .
      2 . As the principal supplier of parts and components in the Free T'ade
           Zones , the Community stands to qain from this proposal . Clearly the
           FFTA countries , for whom the preferential market is proportionately
           greater , also stand to qain .
      3 . It cannot, be denied that the suppression of the restrictions linked
           with the present diaqonal cumulation mav entail the possibility of
           a larger incorporation of third country elements . rThere are fears
           that there may be increased penetration by Japanese and other Far
           Fast components . The experts have discussed this point in detail
           and no proof of the actual risk of a qreater incorporation of third
           country material could be presented . It would appear therefore that
           these     fears  are  rather   theoretical . The  existinq  bilateral
           cumulation rule already broadly opens the possibility of
           utilization of third country material in the final product . It has
           to be    stressed that the bilateral    cumulation rule has  new been
           applied for If years in trade between the Community and FFTA
           countries and in trade between the FfTA countries without a sinqle
           complaint conceminq economic difficulties havinq been encounte¬
           red . The Commission therefore believes that the proposed diaqonal
           cumulation will in fact constitute no problam at all .
       4 . It appears unjustified to require further technical discussions on
           this point . The COrmtission believes that the matter is ripe for a
           decision on a political level .
IX.   ŒWCU1BICN5
      The Commission therefore proposes to simplify and modernise the
      diagonal cumulation in the trade between the Community and the FH*I’A
       countries by qeneralizinq the existinq bilateral cumulation and
       invites the Council to take a common position on the attached draft
      model ( Sweden) for the decisions of the Joint Committees FFC/FFTA
       countries .
 ---pagebreak---                                     Proposai for a
                     Decision of the Joint Ctanranittea
             rand-ifying Protocol     3 an the concept of aricjimtinq
              products and methods of administrative cooperation
                     in order to simplify the OLsmniaticn rules .
•ШЕ оошт ССШГГТЕЕ.
Having reqard to the Agreement between the European Economic Community and
the KingdcsTi of Sweden , signed in Brussels on 22 July 197 ?,
 Having regard to Protocol No 3 oonceminq the definition of the concept of
 "originating products " and methods of administrative cooperation , hereafter
called Protocol Nfc> 3 , and in particular Article ?.s thereof ,
Whereas , on the one hand ,      the complex nature1 of the present cumulation
 system in Protocol N° 3 is not likely to facilitate its use by opera¬
tors nor its control by customs administrations ;
Whereas , on the other hand , the present system of cumulation of oriqin does
not represent the best incentive to use materials , parts or components
 furnished by one or more of the partner countries , as , in particular , the
 cumulative origin acquired in a particular commercial relationship is not
 necessarily acceptable in the case of export to other partner countries
while the process of manufacture of the final product is strictly identical
 in the various commercial relationships concerned ;
Whereas it is necessary to introduce a sinqle unified cumulation system
based on the concept that materials , parts and components oriqinatinq in
 the other partner countries of the different agreements concluded between
 the EEC and the EFTA countries may be used in the manufacture of a product
 in the Ocinnunity or . in .Sweden without there beinq any particular provisons
 limiting the acxjuisition of cumulative oriqin ;
 Whereas therefore Articles 1 and 2 as well as the provisions in Protocol
 N° 3 referring to these Articles must be modif i ed ,
 HAS DECIDED AS FOLLOWS :
                                      Article 1
 Protocol N° 3 shall be modified as follows :
 1 . Articles 1 and 2 are replaced by the followinq text :
 ---pagebreak---                                          Article 1
Ft>r the purpose of implementing the Agreement , and without prejudice to the
provisions of Articles 2 and 2 of this protocol , the followinq products
shall be considered as :
1.      products originating in the Omnium i t.y :
        a ) products wholly obtained in the Community within the meaninq of
            Article 4 of this Protocol ;
        b ) products obtained in the Community ineomoratinq materials which
            have not been wholly obtained there , provided that :
                i)   such   materials     have   underqone    sufficient   workinq   or
                    processing in the Community within the meaninq of Article S
                    of this Protocol , or that
               ii )  such materials originate in ‘Veden , Austria , ^inland ,
                    Iceland , Norway or .'Switzerland in application of either
                    Protocols   M°    I  annexed   to   the  Agreements   between   the
                    Community and these countries or Annex P to the Convention
                    establishing the Furopean Free Trade Association , insofar
                    as the rules in these Protocols and that Annex are identi¬
                    cal ;
2.      products oriqinatinq in Sweden :
        a ) products wholly obtained in Sweden within the meaning of Article
             4 of this Protocol     •
        b) products obtained in cWedon incorporating materials which have
             not been wholly obtained there , provided that
                i)   such    materials    have   underqone    sufficient    workinq  or
                    processing in Sweden within the meaninq of Article S of
                    this Protocol , or that
               ii )  such    materials    originate   in    the   Community ,  Austria ,
                    Finland , Iceland , Norway or Switzerland in application of
                    Protocols    n°   2  annexed   to   the   Agreements  between   the
                    Community     and     these    countries     or    this    Protocol
                    or Annex B to the Convention establishing the Furopean Free
                    Trade Association , insofar as the rules in these Protocols
                    and that Annex are identical .
                                        Article 2
The products listed in Annex IT shall be temporarily excluded from the
scope of this Protocol . However the provisions conceminq administrative
cooperation and Article 22            shall   apply,   mutatis mutandis ,     to these
products . "
 ---pagebreak--- 2 . In Article 3 , fir.-t line ., the words ''provisions o.'                                            1'   are
    replaced by the words " provisions of Article 1 ".
3 . In Article 5 ( f ) the v.ords " Article 1 ( l)(b ) and (?) lb ) are replaced bv
    the words " Article 1 ( 1 ) ( b) ( i ) and ( 2 ) ( b) ( i )"
4 . In Article 6 ( 3 ) the words "there Articles 2 and 3 apply" are replaced
    by the words "Where Article 3 applies ".
5 . In Article R ( 3 ), second subparagraph , the words "mentioned in Article
    2 " are replaced by the words "mentioned in Article 1 ".
6 . Article 9 shall be modified as follows :
    a) Paragraph 3 is replaced by the follcwinq text :
        "3 . ( a) The customs authorities of the Member States of the
                  Oormrunity may issue FUR . 1 certificates for products
                  originating in Sweden , Austria , ^inland , Iceland , Norway or
                  fVhtzerland within the meaning of the Protocols or the
                  Annex referred to in Article 1 , provided that these
                  products are in Ilia n minim i t y and have undergone no work I ng
                  (H   pi T x ’enn I IH i oi I inve 1 1, >l iindi M ■ |i >ne nu I I 1 1 1 1 <-M it w n k I ng i >r
                  processing there to confer on them the status of products
                  originating in the Ocmnunity .
             ( b) The     customs         authorities of Sweden may issue PUR .                                  1
                  certificates for products originating in the Garrmunitv,
                  Austria , Finland , Iceland , Norway or ‘Switzerland within the
                  meaning of the Protocols or the Annex referred to in
                  Article 1 , provided that' these products are in Sweden and
                  have undergone no workinq or processing or have not
                  undergone sufficient working or processing there to confer
                  on 1;hem the status of products originating in Rwnden .
             ( c) Where subparaqraphs 3 ( a ) and ( b ) are applied , the issue of
                  the FUR . 1 certificates is subject to the presentation of
                  the FUR . 1 certificates issued previously ."
    b) In the first subparagraph of Article 9 ( 4 ), the words " provided for
        in the Agreement" are replaced by the words "provided for in the
        Agreements or in the Convention mentioned in Article 1 ".
    c ) The following paragraph is added :
        " ( 10 )  The provisions of paragraphs                             3 , A and n above shall
                  apply, mutatis mutandis , to invoices made out by approved
                  exporters under the condition set out in Article 13 ( 11 )
                  and ( 12 ) of this Protocol ".
 ---pagebreak---                                          - 4 -
 7 . In Article 10 ( 5 ), the words " the second subparaqraph of'are deleted .
 8 . Article 13 shall be modified as follows :
     a) in paragraph R ( a ) the words " referred to in Article 2 ( IV are
        replaced by the words " referred to in Article 1 " ;
     b) in paragraph 13 ( b), in fine , the words " the second subparagraph of"
        are deleted .
 R. In Article If ( 1 ) the words " referred fo in Art-inle 7 " are replaced by
     the words " referred to in Article 1 ".
10 . In Article 22 , 5-fth and 1.1th line , the words " the Agreements referred
     to in Article 2 " are replaced by the words " the Agreements and the
     Convention referred to in Article 1 ".
11 . In Article 23 ( 1 ), in fine , the words " referred to in Article 2 are
     replaced by the words " referred to in Article 1 ".
12 . Article 24 shall be modified as follows :
     a) in paragraph 3, the words "For the application of the last sentence
        of Article 1 ( 2 ) ( b)" are replaced by the words " For the application
        of Article 1 ( 2 ) ( b) ( ii )";
     b) paragraph 4 is replaced by the following text :
        "4 .  For the application of Article 1 ( 7 ) ( b) ( iil , products
             originating in Spain or products accompanied by a certificate
             BUR . 1 with the symbol " ES " entered in box    " Remarks ", that are
             imported into Sweden and , having undergone no workinq or
             processing or not having underqone sufficient workinq or
             processing there to confer on thorn the status of products
             originating in Sweden , are exported to Austria , Finland , Iceland ,
             Norway or Switzerland , shall benefit , on import into one of these
             five countries , only frcm a treatment identical to that which
             they would have received had they been imported directly frcm
             Spain ."
13 . In Article 25 ( 2 ), the words " Sweden or one of the five countries in
     Article 2 " are replaced by the words " Sweden , Austria , Finland , Iceland ,
     Norway or Switzerland " .
 ---pagebreak--- 14 . Article 27 shall be modified as follor/s :
     a ) in paragraph 1 , the words " Par the purpose of implementing Article 0
         ( 1 ) ( A )" are replaced by the w.mlfi " Dor the punxvse of implementing
         Article 1 ( 1 ) ( b ) ( ii )" ;
     b) in paragraph 2, the words " Bor the purpose of implementing Article 2
         ( 1 ) ( B) are replaced by the words " For the purpose of implementing
         Article 1 ( 2 ) ( b) ( ii )".
15 . Annex I (Explanatory Notes ) shall be modified as follows :
     a ) Note 2
         -    in     the  title ,  the    reference  to   Article  2  is  deleted ;
         - in subparagraph 1 and 2 , the words "except as provided for in
             Article 2 " are replaced by the words " except as provided for in
             Article 3 ".
     b ) Note 3
         - in the title , the reference to Article 2 is deleted
         - in the text of the note , the words " specified in Article 2 " are
             replaced by the words " specified in Article 1 ".
16 .  In Annex II ,      title ,  the reference to Article l       is replaced by a
     reference to Article 2 .
                                          Article 2
This Decision shall . apply from         1 January l^qq .
Done at Brussels ,
                                                  Dor the Joint CoTmittee
                                                     The President
 ---pagebreak---                                       PROPOSAL FOR A.
                                    COUNCIL REGULATION ( EEC )
              on the application of Decision No /83 of the EEC-Sweden Joint Committee
               modifying Protocol No 3 concerning the definition of the concept of 'originating products'
               and methods of adninistrative cooperation in order to sinplify the curulation rules
THE COUNCIL OF THE EUROPEAN                                  Whereas this Decision shall be applied in the Com
COMMUNITIES .                                                munity .
Having regard to the Treaty establishing the Euro ¬
pean Economic Community , and in particular                  H AS ADOPTIU       mis RÉGULATION
Article 1 13 thereof.
Having regard to the proposal from the Commis ¬
sion ,                                                                                 4 mele I
Whereas the Agreement between the European                   For the application of the Agreement between the
Economic Community and the Kingdom of                        European Economic Community and the Kingdom
Sweden ( ' ) was signed on 22 July 1972 and entered          of Sweden . Joint Committee Decision No /88 shall
into force on I January 1973 :                               apply in the Community .
Whereas by virtue of Article 2X of Protocol 3 con ¬
cerning the definition of the concept of 'originating
products’ and methods of administrative coopera ¬                                      Article 2
tion. which forms an integral part of the Agreement ,
the Joint Committee has adopted Decision No /88              This Regulation shall enter into force on the third
amending that Protocol ;                                     day following its publication in the Official Journal
                                                             of the European ( ornmumliex
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States .
              Done at Brussels .
                                                                           i'nr thr Couru il
                                                                             ! hr f*rr.\itJrni
      д
Oc OJ No L 300. 31 . 12. 1972. p. 97.
 ---pagebreak--- <,' ■:    Λ’          ·
                                                                                                             JB / sl
       , u- 1 .-} ■ t . .                   .•
                                                                  COMPETITIVENESS AND EMPLOYMENT
                                                                           IMPACT STATEMENT
                           ; " What Is the main reason fur i ri t rmlm : i m | the in'oi .unro
                                        Tha present diagonal cumulation rules are very difficult to understand .
                           ..i,. The lack of transparency of the provisions in force due to theii>
                             ■■" complexity is a constant source of ilifficuliv for the manufacturers whq
                                  <thave to apply suuh ru Ion .
                                       Features of the business in question
                            : >; The . simplification of the cumulation rules , as proposed by the
                                        Commission , should benefit all manufacturers of goods in trade between
                                    . EEC and ETTA countries , whether they are large enterprises or SIC 's .
                                 *■** iJii-'l?!.
                                       What ■ obligations
                                                    -c i •• _
                                                                does thi s mea sure impose d i i » • I ! y on busine ss
                                1 ' No 1, new obligat ions .
                          ’             This proposal replaces            the al L  exist ing   rules and          is based on the
ImiSl&f:'' - understanding that ex tended free use of each other 's new materials ,
                                        semi-manufactured parts and components in our trade with EFTA countries
                                       would be of mutual advantage and give an incentive to use imports
                                       wooid
                                   ■•■ originating in the Free Zone .
                                   \r
                                        Furthermore thu admin 1st mi. i ve coal !* should in - r < •< ii n
                                         ■»
                                                                                                                .
                    • *;»             . •* 1 1 5 •
     ^{IV                               What Indirect ob 1 iqat inns ;i ro i m l i m I.I I , n ■■ 1 1 "no l nr Im.-.il authorities
                                        likely to impose on business ?                         ~
IpSsS- –                                None .
                  V.                    Are there any special provisions in respect of 5ME 1 s ?
   ffll^PSr No (see point II) Z
                                   ' What is likely effect on :
                                     t
                                         ( a ) the competitiveness of business
                                                   EEC enterprises stand to gain from this proposal along with EFTA
yti- îW* t'1'- '•
                                         ( b) on employment
                              ;                    this cannot be estimated , the rules of origin being only one factor
                                               . which influences outside investment , they are a minor element in this
                                               ■ scontext *
                                      'Have the relevant represeritat ive organizations been consulted