CELEX: 51991PC0376
Language: en
Date: 1991-10-15
Title: Proposal for a COUNCIL REGULATION ( EEC ) opening and providing for the administration of a Community preferential ceiling for certain petroleum products refined in Turkey and establishing Community surveillance for imports thereof ( 1992 )

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       C0M(91) 376 final
                                                       Brussels, 15 October  1991
                                         Proposal for a
i^*SjH«^?
                                   COUNCIL REGULATION (EEC)
            opening and providing for the administration of a Community   preferential
                  ceiling for certain petroleum products refined   in Turkey and
                     establishing Community surveillance for imports thereof
                                               (1992)
                                 (presented by the Commission)
 ---pagebreak---                       EXPLANATORY MEMORANDUM
Following negotiations held with Turkey with a view to amending the
EEC-Turkey Association Agreement and the Additional Protocol thereto
consequent on the accession of new Member States, the Community signed
on 30 June 1973 In Ankara a Supplementary Protocol, which entered into
force on 1 March 1986.
This Supplementary Protocol provides inter alia for the opening of an
annual Community duty-free tariff quota of 340 000 tonnes for certain
petroleum products falling within Chapter 27 of the combined
nomenclature.
In addition, the decision taken by the Council of Association in June
1973 that Turkey should not receive less favourable treatment than
that granted to the countries qualifying for generalised tariff
preferences led the Commission and the Turkish authorities to study
the problem of giving Turkey and the developing countries equivalent
tariff treatment.
The Community tariff quotas opened for the developing countries during
the years 1971 to 1973 were converted with effect from 1 January 1974
 into the Community ceilings, ther levels of which were calculated by
the usual method.
-   For 1975 these volumes were fixed at the 1974 levels plus 12%,
-   for 1976 at the 1975 levels plus 15%,
-   for 1977 at the 1976 levels plus 4.6% overall,
-   for 1978, 1979 and 1980 at the same levels as in 1977,
-   for 1981 at the 1980 levels plus 2%,
-   for 1982 at the 1981 levels plus 10%,
-   for 1983 at the 1982 levels plus 5%,
-   for 1984 at the 1983 levels,
-   for 1985 at the 1984 levels plus 25%,
-   for 1986 at the 1985 levels plus 4.527,
-   for 1987, 1988, 1989 and 1990 at the 1986 levels,
-   for 1991 at the 1990 levels plus 5%.
 ---pagebreak---                                       -2-
     For 1992, with the said volumes not yet fixed in the framework of the
     GSP, the Commission reserves the right to modify its proposal at
     Council  level, to take into account any increase which may be decided.
     After studying the problem, the Commission finally recognized that, in
     view of the provisions of paragraph 4 of the Sole Article of Annex I
     to the Additional Protocol, the tariff quota of 340 000 tonnes laid
     down for Turkey should be converted, as from 1976, into a Community
     ceiling, the volume of which should be increased in the same
     proportIons as had been applied under the Generalized System of
     Preferences.
     The only purpose of the attached proposal for a Regulation is to open,
     for the products In question, a Community ceiling for 1992 of 740 250
     tonnes and to establish Community surveillance of imports of these
     products, taking into account the provisions of Regulations (EEC) No
     2573/87 of 11 August 1987< 1 ) and 1059/88 of 28 March 1988< 2 >, laying
     down the arrangements applicable to trade of Spain, Portugal and
     Greece with Turkey.
3.   The application of ceilings and the possibility of re-establishing
     customs dut les require the adoption of precise common rules to be
     applied uniformly by all Member States. These requirements may be met
     by the establishment of a Community surveillance system for goods
     actually  imported from the partner country. To this end, the Member
     States must take adequate measures to ensure that statistical     returns
     can be collected quickly at Community   level. In this respect, account
     should be kept only of imports of the products in question as and when
     they are entered with the customs authorities for free circulation.
     Statistics will be compiled by each Member States at the end of each
     month and will be forwarded to the Commission by the fifteenth day of
     the following month in order to enable it to telex to all Member
     States complete statistics of imports of the products in question
(1) 0J No L 250, 1.9.1987, p. 1
(2) 0J No L 104, 23.4.1988, p. 4
 ---pagebreak---                                    -3-
   during the preceding month. The system of surveiI lance wiI I require a
   diligent effort as well as close cooperation between the Member
   States'competent authorities and the Commission departments.
   As regards implementation of the mechanism for re-establishing customs
   duties, the following system will be applied: as soon as the total
   monthly statistics compiled by the Commission departments indicate
   that 75% of the celling has been used up, the latter will notify the
   Member States and consultations may then be held, for instance within
   the Economic Tariff Problems Group, either at a Member State's request
   or on the Commission's initiative. The purpose of such consultations
   will be to examine whether the customs duties applicable to third
   countries should be re-established when the ceiling has been used up.
    Imports of the products in quest in will continue to be notified on a
   monthly basis.
   The Commission will thus be able to act quickly to adopt a regulation
   re-establishing customs duties on imports from the partner country
   until the end of the calendar year.
    In such a case, customs duties will naturally be re-established from
   the date indicated in the regulation ending the reduction of customs
   dut les.
4. The attached proposal lays down that authority to apply the rules on
   ceilings and re-establishment of customs duties should be transferred
   from the Council to the Commission.
   This proposal for a regulation merely gives a general framework within
   which such authority is to be exercised so as to enable the mechanisms
   envisaged to be adjested flexibly and quickly in consultation with the
   Member States.
 ---pagebreak---                                     -4-
     Moreover, it is precisely with this aim of optimum efficiency and
     speed that, under the proposed regulation, the task of re-establishing
     the customs duties applicable to third countries in respect of imports
     from the partner country will fall to the Commission.
Annex: Proposal for a Council Regulation.
 ---pagebreak---                                                              Proposal for a
                                             COUNCIL REGULATION (EEC) No                        /9l
                                                         of
                    opening and providing for the administration of a Community preferential ceiling for certain
                    petroleum products refined in Turkey and establishing Community surveillance for imports
                                                              thereof (1992)
THE COUNCIL Ol THE EUROPEAN COMMUNITIES,                                  should, therefore,        be made subject     to a system of
                                                                          surveillance;
Having regard to the Treaty establishing the European                     Whereas this objective may be achieved by means of an
Economic Community, and in particular Article 113                         administrative procedure based on offsetting imports of the
thereof,                                                                  products in question against the ceiling at Community level
                                                                          as and when these products are entered with the customs
Having regard to the proposal from the Commission,                        authorities for free circulation; whereas this administrative
                                                                          procedure must make provision for the possible
                                                                          re-establishment of customs tariff duties as soon as the ceiling
Whereas Article 7 of the Supplementary Protocol to the                    is reached at Community level;
Association Agreement between the European Economic
Community and Turkey consequent on the accession of new                   Whereas this administrative procedure requires close and
Member States to the Community (')> which was signed in                   particularly swift cooperation between the Member States
Ankara on 30 June 1973 and entered into force on 1 March                  and the Commission; whereas the latter must, in particular,
 1986 (*), provides for the total suspension of customs duties            be able to follow the progress of quantities charged against
applicable to certain petroleum products refined in Turkey                the ceiling and keep the Member States informed; whereas
falling within Chapter 27 of the Common Customs Tariff                    this coopération has to be particularly close since the
within the limits of an annual Community tariff quota of                  Commission must be able to lake the appropriate measures
340 000 tonnes; whereas, for the products concerned, a                    to re-establish customs tariff duties if the ceiling is
provisional adjustment should be made to those tariff                     reached,
preferences, consisting essentially of substituting for the
Community tariff quota a Community ceiling amounting,
 after successive increases, to 740 250 tonnes, above which
 the customs duties applicable to third countries may be                  HAS ADOPTED THIS REGULATION:
 re-established;
                                                                                                        Article 1
 Whereas the Council adopted Regulation (EEC) No
 1059/88 laying down the arrangements applicable to                        1.    From 1 January to 31 December 19% the duties
 Greece's trade with Turkey ( 3 ); whereas, the Council also              applicable to imports into the Community of the petroleum
 adopted Regulation (EEC) N o 2573/87 laying down the                      products refined in Turkey and indicated in paragraph 2 shall
 arrangements for trade between Spain and Portugal, on the                 be suspended in full within the limits of a Community ceiling
 one hand, and Algeria, Egypt, Jordan, Lebanon, Tunisia and               of 740 250 tonnes.
 Turkey, on the other ( 4 ); whereas the tariff quota in question
 applies therefore to the current Community;                               Within the limits of this ceiling, the Kingdom of Spain and the
                                                                           Portuguese Republic shall apply the duties calculated in
                                                                           accordance with Regulation (EEC) No 2 5 7 3 / 8 7 .
 Whereas the application of ceilings requires the Community
 to be regularly informed of the trend of imports of the                   2.    The petroleum products to which paragraph I applies
 relevant products originating in Turkey; whereas imports                  shall be the following:
                        N               CN code                                      Description
                  13.0010          2710 00        Petroleum oils and oils obtained from bituminous minerals, other than crude
                                                  preparations not elsewhere specified or included, containing by weight 70%
                                                  or more of petroleum oils or of oils obtained from bituminous minerals, these
                                                  oils being the basic constituents of the preparations:
                                                  — Light oils:
                                                  — — For other purposes:
  (') OJ N o l . 361, .11. 12. 1977, p. 2.
  (2) OJ No I. 48, 26. 2. 1986, p. 36.
  (') OJ No 1. 104, 23. 4. 1988, p. 4.
  (<) OJ No I. 2S0, 1. 9. 1987, p. 1.
 ---pagebreak---       Oui.
                         ( N                                                   I >I'M 11)11 IOI!
        Nu
 I 1.0010                                            Spcual &pnils:
(mut'il)
                    27100021              .   _ ._ _ White spirit
                    2710 00 25                           Other
                                                     Other:
                                          — — — — Motor spirit:
                    2710 00 31            — — — — — Aviation spirit:
                                          — — — — — Other, with a lead content:
                    2710 00 33            — — — — — — Not exceeding 0,013 g/1
                    2710 00 35            - - - - - -           Exceeding 0,013 g/1
                    2710 00 37            — —— -         Spirit type jet fuel
                    2710 00 39            —-      — — Other light oils
                                           — Medium oils:
                                              -   For other purposes:
                                              -   — Kerosene:
                    27100051                             Jet fuel
                    27100055                             Other
                    27100059                         Other
                                          — Heavy oils:
                                          — — Gas oils:
                    2710 00 69            — — — For other purposes
                                          — — Fuel oils:
                    2710 00 79             — — — For other purposes
                                          — — Lubricating oils; other oils:
                    2710 00 95            — — — T o be mixed in accordance with the terms of additional note 6 (CN)
                                                     to this chapter (*)
                    2710 00 99            — — — For other purposes
                    2711                  Petroleum gases and other gaseous hydrocarbons:
                                          — liquefied
                    2711 12                — - Propane:
                                                  -  Other:
                    2711 12 99             _ .... _      For other purposes
                    2711 13               —-      Butanes:
                    2711 13 90            — -     — For other purposes
                    2712                  Petroleum jelly, paraffin wax, microcrystalline petrolum wax, slack wax,
                                          ozokerite, lignite wax, peat wax, other mineral waxes, and similar products
                                          obtained by synthesis or by other processes, whether or not coloured:
                    2712 10               — Petroleum jelly:
                    2712 10 10            — — Crude
                    2712 10 90                    Other
                    2712 20 00.           — Paraffin wax containing by weight less than 0,75 % of oil
                    2712 90               — Other:
                                          — -     Other:
                                          — — — Crude:
                    2712 90 39             _ _ _ . . -   Eor other purposes
                    2712 90 90                       Other
                                          Petroleum coke, petroleum bitumen and other residues of petroleum oils or of
                    2713
                                          oils obtained from bituminous minerals:
                                           — Other residues of petroleum oils or of oils obtained from bituminous
                    2713 90
                                              minerals:
                     2713 90 90                   Other
 (') Entry under this code is subject to conditions laid down in the relevant Community provisions.
 ---pagebreak--- 3.    Imports of the petroleum products referred to in                                      Article 3
paragraph 1 shall be subject to Community surveillance.
                                                                 Member States shall send the Commission statements of
4.    Quantities shall be charged against the ceiling as and
                                                                 the quantities charged for the preceding month no later than
when products are entered with the customs authorities for
                                                                 the 15th day of each month. At the Commission's request,
free circulation.
                                                                 they shall send statements of the quantities charged for
                                                                 periods of 10 days, to be forwarded within five clear days of
5.    The extent to which the ceiling is used.up shall           the end of each 10-day period.
be determined at Community level on the basis of the
imports charged against it, in the manner specified in
paragraph 4.
6.    Member States shall inform the Commission, at the                                     Article 4
intervals and within the time limits specified in Article 3, of
imports effected in accordance with the rules referred to in     The Commission shall take all appropriate measures, in c lost-
this Article.
                                                                 cooperation with the Member States, to ensure the
                                                                 implementation of this Regulation.
                           Article 2
As soon as the ceiling referred to Article 1 (1) has been
                                                                                            Article 5
reached at Community level, the Commission may adopt a
regulation re-establishing, until the end of the calendar year,
the collection of the duties normally applicable.                This Regulation shall enter into force on 1 January 1992
                  This Regulation shall be binding in its entirety and directly applicable in all Member
                  States.
                  Done at Brussels,
                                                                                        /•or the (Council
                                                                                          The President
 ---pagebreak--- FINANCIAL RECORD
1.   Budget line concerned : Chap. 12 art. 120
2.   Legal base : art 113 of the Treaty
3.   Heading of the tariff measure : Proposal for a Council Regulation
     (EEC) opening and providing for the administration of a Community
     preferential ceiling for certain petroleum products refined in Turkey
     and establishing Community surveillance for imports thereof (1992).
4.   Object ive : Respect of contractual engagements as regards Turkey.
5.   Method of calculation :
     CN code: 2710 to 2714
     Volume of the ceiling : 740 250 t
     Duty to apply: 0 %
     Normal duties : Various duties (average duty : 5 %)
6.   Loss of receipts :
     Value 1 tonne : 68 ecus (average value)
     Total value : 50 337 000 ecus
     Loss :
     - in case of total utilisation :
       50 337 000 ecus X 5/100 : 2 516 850 ecus.
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(91) 376 final
                                                      DOCUMENTS
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                                Catalogue number : CB-CO-91-427-EN-C
                                                             ISBN 92-77-76158-X
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