CELEX: 51977PC0097
Language: en
Date: 1977-03-23
Title: Draft ACP-EEC Council of Ministers Decision derogating from the concept of originating products in order to take into account the special situation of the Republic of Malawi with regard to certain items of fishing tackle (fishing flies) (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (77) 97
Vol. 1977/0041
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(77 ) 97 final
                                                   Brussels , 23 March 1977
                                      Draft
                       ACP-EEC Council of Ministers Decision
          , ■  .
         derogating from the concept of originating products in order
         to take into account the special situation of the Republic
         of Malawi with regard to certain items of fishing tackle
                                 ( fishing flies )
              ( submitted to the Council by the Commission )
COM(77 ) 97 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
 Submission of the reques t
By letter of 6 July 1976 , the Government of the Republic of Malawi
 forwarded to the Commission through its Charge d'Affaires in Brussels
an application requesting the insertion in List B of heading No
ex 97.07 : fishing flies , so that the manufacture of a fishing fly
from a " non-originating " fish-hook falling within the same tariff
heading may be considered as conferring the origin of the country of
manufacture to the finished product . .
Artificial flies are made by assembling feathers , hairs or spangles ,
on a fish-hook by means of a thread . Malawi imports virtually all the
products needed for the manufacture of artificial flies from other
countries , so that for the operations involved to confer the status
of originating product on a finished product , they must either entail
a change in the tariff heading of the components , or be included in
List B annexed to Protocol No 1 to the Lom4 Convention . Although the
products used to "dress" the fish-hook do in fact change their tariff
heading , the fislvhook itself does not , since artificial fishing flies
and fish-hooks are classified under the same tariff heading , namely
No 97.07, and the flies obtained to not therefore acquire the status
of originating products . There only remains the possibility covering
the manufacture of these flies in List B.
An examination of the case by the Commission and the Member States
showed that although Malawi imported fish-hooks from Japan , Norway
and Sweden , it was nevertheless possible to obtain supplies within
the Community .
 ---pagebreak---                                       - 2 -
                                                                  ι
     Consequently, the Commission and the Member States felt that there was
     no case for making a change to List B.
     This position was explained to the ACP States during the meeting of the
     Customs Cooperation Committee on 17 December 1976 , at which the ACP
     spokesman then stated that Malawi would accordingly review its sources
     of fish-hook supplies and that in the immediate future a temporary
     derogation under Article 27 of Protocol No 1 to the Lom6 Convention
     wouLd enable it to make the necessary investigations .
lit Opinion of Commission departments
     This industry , which does not need large-scale investment , employs at
     present about 200 people and its exports came to approximately
     75 000 EUA in 1975 , which Malawi hopes to increase soon to 225 000 EUA .
     The value added is considerable . According to information supplied by
   • the producers , the price of the basic materials is less than a third
     of the value of the finished product and if non-originating products
     alone are taken into account , their share of the finished product falls
     to less than a quarter . In order to avoid possible deflection of trade
     and on the basis of figures supplied , a maximum content of non-originatinc,
     elements could be imposed , and this could be fixed at 25 % in order to
     to create any problems for the manufacturers concerned .
     As stated earlier , there are industries within the Community capable of
     supplying fish-hooks so that the conditions required for complying with
     the definition of the concept of originating products by application
     of the rules on cumulation , as specified in Protocol No 1 to the Lom6
     Convention , would be met .
     However , the manufacturers concerned should be given some time to make
     the necessary business contacts and to conclude supply contracts . For
     this reason a temporary derogation , timited to one year , should be
     granted to Malawi .
     The Commission therefore recommends the following draft decision .
 ---pagebreak--- Oraft ACP-EEC Council of Ministers Decision          / 77 derogating from
the concept of originating products           to take into account the
special situation of the Republic of Malawi with regard to certain items
of fishing tackle ( fishing flies )
THE ACP-EEC COUNCIL OF MINISTERS ,
Having regard to the ACP-EEC Convention of Lome , signed on 28 February 1975 ,
hereafter called "the Convention", and in particular Article 9 ( 2 ) thereof .
Whereas Article 27 of Protocol No 1 to the Convention , concerning the
definition of the concept of "originating products" and methods of admini­
strative cooperation, makes provision for derogations from the rules of origin
in particular to facilitate the development of existing industries or
the creation of new industries ;
Whereas the ACP States have submitted a request from the Government of
the Republic of Malawi for a one-year derogation from the definition set
out in the Protocol for items of fishing tackle manufactured in that State ;
Whereas , in accordance with Article 27 of Protocol No 1 , the Customs
Cooperation Committee has adopted a report on the request referred to
above ;
Whereas inorder to take into account the special situation of the Republic
of Malawi and to enable the industrial sector concerned to develop the
industry concerned and to seek new sources of supply for the raw materials
needed in the manufacture of the items referred to above , derogation should
accordingly be made, for a maximum of one year , from the definition set
out in Protocol No 1 to the Convention ;
Whereas any possible deflection of trade should be avoided and this aim
can be achieved by fixing a maximum percentage of non-originating products
incorporated in the finished product ,,
 ---pagebreak---                                         2 -
- HAS DECIDED :
  Article 1                                                             ■ .
  By way of derogation from the provisions of Protocol No 1 , items of fishing
  tackle manufactured in Malawi and falling within tariff heading No ex 97.07
  " fishing flies", shall be considered as originating in Malawi , provided that
  the value of the non-originating fish-hooks , used for their manufacture , falling
  within tariff heading Ho ex 97»07 » does not exceed 25$ of the value of the
  finished product .            >           ■
  Article 2
  The movement certificates EUR 1 issued pursuant to this Decision shall
 "bear one of the following endorsements :
     "Originating products by virtue of decision No         / 77 of the ACP-EEC
     Council of Ministers "
     \
 - "Marchandises originaires en vertu de la décision no           /77 du Conseil
     des Ministres ACP-CEE"
 - "Ursprungwaren gemäss Beschluss Nr «         / 77 des AKP-EWG Ministerrates"
  - "Merci originarie in virtù della decisione no           /77 del Consiglio
     dei Ministri ACP-CEE"
 - " Goederen van oorsprong uit hoofde van besluit nr .           / 77 van de
     ACS-EEG Raad van Ministers "
 •     Varer med oprindelsestatus i henhold til AVS-EØF Ministerrådets afgørelse
      no       nr\
  This endorsement shall be entered under the heading " Remarks .
  Article 3
  The competent authorities of the Republic of Malawi shall forward to the
  Commission every three months a statement of the quantities in respect of
  which movement certificates EUR.1 have beert issued pursuant to this
  Decision , indicating the Member States of destination .
 ---pagebreak--- Article 4
The ACP States , the Member States and the Community shall , each one for
its part , take the measures required for implementation of this Decision .
                                     r
Article 5
This Decision shall enter into force on 1 June 1977 .
It shall    apply       until 31 May 1978-
                                           •
Done at     _                              For the ACP-EEC Council of Ministers
                                          The President