CELEX: 51973PC2148
Language: en
Date: 1973-12-14
Title: PROPOSAL FOR A RECOMMENDATION (EEC) OF THE COUNCIL opening, allocating and providing for the administration of a tariff quota for cocao butter and a tariff quota for instant coffee originating in developing countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 2148
Vol. 1973/0391
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                           COM(73 ) 2148 final
                                                           Brussels , 14 December 1973
                                 PROPOSAL TOR A
                        RECOMMENDATION ( EEC ) OP THE COUNCIL
           opening , allocating and providing for the administration
           of a tariff quota for cocao "butter and a tariff quota for
           instant coffee originating in developing countries
                 ( submitted to the Council "by the Commission)
COM ( 73 ) 2148 final
 ---pagebreak---              EKPUFATnpy                MEMORANDUM
            Tha Council has authori z°d the Commission to negociate a trade
agreement between the ^TEC and Brazil and to this end it drew up negotiating
directives on 5 March 1°73 and directives supplementary thereto on 3 December
1973 . These directives are in particular concerned with the tariff treatment
of cocoa butter and instant coffee imported into the Community .
            As from 1 January 1 Q 7^ the United Kingdom in particular will bring
her customs tariff into line with the OCT and this could normally entail a
substantial increase in import duties on cocoa butter and instant coffee .
Brazil is by far the largest supplier of instant coffee to the United Kin.erdom
and also supplies her with a substantial amount, of cocoa butter . In the light
of this situation , Brazil has requested the Community to agree either to a
reduction in the OCT for the two products to the level of the duty applicable
to cocoa beans and to raw coffee respectively , or alternatively to the opening
                                                                             »
of tariff quota.s , reserved for the United Kingdom , at the level of British
customs duties for the two products in question .
            Such a solution would /rive rise to a certain number of difficulties .
There could in fact be no rruestion either of reducing erga omnes the COT duties
to the extent renues+.ed , in view of Brazil 's marketing policy for the two
products and in the -interests both of producers in associated countries and
of European manufacturers nor of compromising the unity of the Community market
by isolating the British market for the two products .
            Since Brazil is a developing country and a member of the " 77 " Group ,
the Commission prefered to seek a solution within the framework of the Commu­
nity system of generalized preferences in favour of developing countries .
                                                                         •A
 ---pagebreak---                                    - 2 -
 It proposes to       cocoa butter and instant coffee subject to tariff
 preferences according to snecial rules . These consist in opening Community
 tariff quotas for an amount of 21.600 metric tons for cocoa butter and of
 18.750 metric tons for instant coffee , such quotas being allocated to allow
 the United Kingdom a substantial share . The Commission does not propose to
 introduce a Communtitv reserve share for this quota . This is an exceptional
 and transitional case and one for which a choice of a special allocation scale
 can only be fully meaningful if such scale be applied to the entire quota from
the time it is opened . Moreover , if this scale is applied , one may reckon that the
share will be used up at a more or less constant rate throughout the exercise . This
attitude is to be interpreted in the light of the solution adopted by the Council
regarding. the introduction of reserve shares in " generalized preferences " tariff
                                                                              quotas .
             The measures proposed , which diverge somewhat from the usual
 arrangements in respect of general i zed preferences , have the advantage of
 satisfayinpr Brazilian exporters and British consumers , while at the same time
 protecting the interests of associated countries and of European manufacturers .
 Moreover , they afford additional advantages to all developing' countries which
                                            K
 benefit under the Community 's svstem of ^ener-al i zed preferences .      »
 ---pagebreak---                                Proposal for a
                      REOULATTCW ( RTCC ) OV THR COTINCTI ,
        opening , allocating and providing for the administration
        of a tariff oiiota for nonao butter and a tariff quota for
        instant   coffee  originating     in  developing    countries
THR COUNCIL OP THTC EUROPE ATT OOTWTMTTTKS ,
Having regard to    the Treaty establ ishi ng the European Economic Community ,
and in particular Article 113 thereof :
Having regard to the proposal from +><* r'nrnmission :
                                                                                »
Whereas , within the context of ITN^TATi , the European Economic Community offered,
to grant tariff preferences on certain processed agricultural products falling
within Chapters 1 to 2A of the Common Customs Tariff , originating in developing
countries : whereas the preferential treatment provided for in this offer con­
sists , on the one hand , in respect of certain goods subject to the trade arran­
gements laid down in Regulation ( EEC ) n° 1059/^9 » in reducing the fixed component
of the levy applicable to these goods under that Regulation and , on the other    «
hand , in respect of products subject to the uniform customs duty , in reducing
this duty ; whereas , for the products involved , preferential imports will be
able to be made without restriction on quantity ; whereas , however , in view' of
the fact that cocoa butter and instant coffee are sensitive products , and in
view of the necessity to protect the interests of associated countries in this
field , special arrangements should be laid down for these two products , such
                                                                        ι
arrangements consisting in a granting of a reduction m the customs duty appli­
cable to these products within the limits of Community tariff quotas ;
 ---pagebreak---                                      - 2 -
Whereas the offer by the Community includes a clause stating that it is made
on the assumption that the main industrial ized countries which are members of
the OECD would participate in granting preferences and would make similar
efforts in this direction : whereas , moreover , it is evident from the conclusions
worked out in UNCTAD that this offer , while being of a temporary nature , does
not constitute a binding commitment and in particular , may be withdrawn wholly
or in part at a later d^te ; whereas this possibility may be adopted inter alia
with a view to remedying any unfavourable situations which might arise in the
associated countries following the implementation of the generalized preference
scheme ;
Whereas in respect of cocoa butter and instant coffee originating in the
countries and territories listed in Annex I\      the Community should therefore
open for 1974 two Community tariff cruotas within the respective limits of
21.600 metric tons and at a customs duty of 8°£ for cocoa butter and of 18.750
metric tons and a duty of        for instant coffee ;
Whereas under Protocol N° 23 to the Act annexed to the Treaty concerning the
accession of new Member States to the European Economic Community and to the
European Atomic Enerpy Community ("O , si<rned on 22 January 1972 , the new Member
                                                                                 »
States are authorized to defer until 1 January l°7A the a.ppli . Cf.tion of the
generalized tariff preferences scheme applied by the European Economic Community
to products originating in d«vel orti. np- countries ; whereas, accordingly, from that
date the new Member States will be obliged to apnlv the full customs duties
provided for in the genera.li7.ed tariff preferences scheme of the European Economic
Community for coffee and cocoa butter and the calculation of the amount of the
shares must be based on the assumption that the new Member States are to play
                                                                                    «
a full part in the general i zed preferences scheme ;
Whereas however , in respect of the ahovemen+.ioned products , such a scheme of
generalized preferences would , on the basis of the provisions of the Act referred
to above , involve applying in l Q 7 /i customs duti.es in excess of - or very close to
those which will be applied by the new Member States to third countries in
general ; whereas this situation would not be in accordance either with the
spirit of the Protocol *T° 9 ^ nor with the nature of the generalized preferences
                                                                                   ./•
( 1 ) OJ N° L 1*8 , 29 June 19^8 , p. 1
 ---pagebreak---  scheme , whereas in order to maintain , in accordance with Protocol N° 23 ,
an equivalent preferential margin in respect of these products also , provision
should be made for the new Member States to apply to them reduced customs duties ,
the rules for which are based upon the principle of maintaining the same prefe­
rential margin between the duties applied by the new Member States under the
provisions of the aforementioned Act and the duties applied by way of generalized
preferences , as that which exists between the CCT duties and the suspended
duties referred to above in respect of instant coffee and cocoa butter ; whereas
however , with a view to p-rantin ^ the beneficiary developing countries the best
possible treatment , in accordance with the spirit which motivated the introduc­
tion of the preference scheme , the above mentioned suspended duties should be
applied in cases where the duties calculated according to the said rules are
found to exceed them ;
Whereas only those products originating in the countries and territories
considered should be allowed to benefit from these tariff quotas ; whereas to
this end the provisions regarding: the definition of the concept of " originating
products " should be applied in respect of the application of tariff preferences
granted by the European Economic Community to products from developing countries ,
for the period from 1 January to 31 December 1974 ; whereas however provision
should be made for an amendment, to the list A annexed to those provisions concer-
                                                                         >
ning cooa butter .
Whereas it is necessary to ensure equal and continuous axcess for all Community
importers to the above mentioned rruotas and the uninterrupted application of the
rate laid down for those ouotas to all imports of the products concerned into all
Member States until those auotas are used up ; whereas , having regard to the
principle set out above , the Community nature of the quotas can be respectecl
by allocating the Communutv tariff quota among Member States ; whereas moreover ,
to this end and in the context of the utilization system , the actual charges
against the quotas may relate only to products which are entered for home use
and are accompanied by a certificate of origin ;    «      '
Whereas the statistical information available which only covers a.relatively
short period and. which should in this particular casebe considered in conjunction
with the forecasts which can be made for the quota year , the quota shares
therefore can be drawnup as follows :
 ---pagebreak---                                   -Λ  -
                                                  metric tons
                                       cocoa  butter          instant ooffee
Germany                                      800                     900
Bénélux                                  12.300                    1.550
France                                       100                     250
Italy                                         50                      50
Denmark                                       50                      50
Irèland                                       S0                      50
United Kingdom                            8.?S0                   15.900
Whereas , without, affecting the Community nature of the tariff quotas under
consideration it arrears -possible to -provide temporarily for a utilization
scheme based on a single allocation among the Member States ; whereas moreover
the allocation set out by this Regulation in no way prejudices the possibi­
lity of adopting the general method of allocation of Community tariff quotas
comprising the constitution of a reserve ; whereas at the present juncture it
appears feasible that such allocation could as a rule be made according to
the quota amounts set out in the table above ;                              *
                                                                          >
Whereas the percentages of the shares of the Member States in the Community
tariff quotas do not in this oase^PDear to compromise equal access for
Community importers to the Community tariff quota , given the period for
application and the amounts of such quotas ; whereas , for the same reason it
would seem appropriate to leave each Member State to choose how to administer
its share ;                                                                   «
Whereas provision should be made for measures enabling any serious disturbance
within the sector of the Community 's economic activity to be avoided and to
this end , the Commission should be empowered to reintroduce in part or in
full the Common Customs Tariff duties in order to avoid such' disturbance 5
Whereas , since the Kingdom of "Belgium , the Kingdom of the Netherlands and
the Grand Duchy of Luxembourg are united in and represented by the Benelux
Economic Union , all transactions concerning the administration of the share
allocated to the Beneluy Economic Union may carried out by any one of its
members ;
HAS ADOPTED THIS REGULATION
 ---pagebreak---                                        -   S  -
                                     Art i M »    ]
 1 . Prom 1 January to 31 December l 0 ? 71 two Community tariff quotas shall be opened
 within the European Economic Communi ty for imports of cocoa "butter falling within
 tariff heading ex lB.O/! and for instant coffee falling within tariff heading
 20.02 t ex A of the Common Customs Tari ff respeoti vel y . Within the framework of
these tariff cruotas of a volume of 21.600 ko +. H r, tons for cocoa butter and of
18.750 metric tons for instant coffee respectively the Common Customs Tariff
duties shall be suspended at a level of fK          for cocoa butter and at a level of
9% for instant coffee respectively .
Denmark , Ireland and the United Kingdom shall apply to the abovementioned products
reduced customs duties derived from the multiplication of the basic duties , aligned
with the Common Customs Tariff in accordance with the provisions of the Act of
Accession for 1 97 ^, by a coefficient equal to the preferential margin existing
between the aforementi oned suspended duties and the applicable Common Customs
Tariff duties .
However they shall apply the abovementioned susnpnded duties of the duties derived
from such calculations exceed them .
2 . These tariff quotas shall, apply solely to products originating in the countries
and territories listed in Anner A. However , those imports which enjoy exemption
from customs duties under other preferential tariff arrangements granted by*the
Community may not be charged against these tariff cruotas .                        '
For the purposes of the Regulation , the concept of originating products shall be
as laid down by the provisions of Population N°              /7 3 of the Commission ( l )
applicable to the products en.iovinf tariff preferences granted by the European
Economic Community to developing countries for the period from 1 January to 31
December 1974 , account being taken of the insertion in the list A annexed to
                                                                                          «
those provisions of the special rule which appears in Annex B.
                                     Arti.nl P    2
The Community Tariff quotas mentioned in Article 1 shall be allocated in shares
the amounts of which are set out below in respect of each Member .Htaiie „
                                           Cocoa butter - in metric tons - instant coffee
Germany                                         800                                  900
Bénélux                                    12.300                                1.550
France                                          100                                  250
Italy                                            SO                                   50
Denmark                                          SO                                   50
Ire 1 and                                        50                                   50
United Kingdom                               H. 250                            15.900
( 1 ) OJ N° L            /73                                                                /.
 ---pagebreak---                                          Ar +. irl * ^
The Nemher States shall ensure freo across to the shares which have been allocated
to them for importers of the products concerned. who are established on their
territories .
                                         Art ici * A
Member States shall inform + v>e Commissi on monthly of imports of the products in
question actually charged against their shares .- both in value emressed in units
of account and in rruantit"*'' expressed       in metric tons .
                                         Article     S
If the Community should find that the'rroduot benefiting under the arrangements
provided for in Article 1 are being imported into the Community in quantities or
at prices such as to put or be likely to nut Community producers of similar or
directly competitive products at a serious di sadvantap-e or to create an infavoura–
ble situation in associated countries , the customs dnti efyfcpplied wi thin the Commu­
nity may be reintroduced in part, or in fnll for imnorts of the products in question
from the country or countries or territory             or territories which are the cause of
such di pjadirantapre . Such measures tn ? v nifn "hp taken in the event of a serious
disadvantage , either actual or foreseeable which is confined to a single region
of the Communitv .
                                                                                      *
                                         Arti cip h
                                                                                    à
1 . In order to ensure that Article S i s a.pnlied , the Commission may , by way of a
Regulation , re-introduce Common Customs Tariff duties for a fixed period .
2 . If the Commission has acted at the rermest of a. Member State the former shall
give its decision within a maximum period of 6 working days from the date of
receipt of the request and shall inform the Member State of the action it has taken
                                                                                          «
3 . Each Member State may refo-n the measure taken by the Commission to ihe Council
within a period of sir working days following the date it was notified . The fact
that the matter has been referred to the Council shall not constitute the suspen­
sion of the measure . The Council shall meet without delay . Acting on a qualified
majority , it may amend or repeal the measure in rruestion .
                                         ArticleJ7
The provisions of Article 5 and 6 shall not prejudice the application of the
protective clauses drawn up in connection with the common commercial policy
pursuant to Article 113 of the Treaty .
                                                                                        ./•
 ---pagebreak---                                   _ 7 _
                                Artici *» o
This Regulation shall enter into force on 1 January 1P7 ^^
                               This Reflation shall be binding in its entirely
                               and directly applicable in all Member States .
Done at Brussels ,                                          For the Council
                                                            The President
 ---pagebreak---                                             – Κ­
                                        Α Ν Ν π: γ    Λ
                         • List of developing countries and territories
                       benefiting under the Generalized Tariff Preferences
                          i             INDEPENDENT COUNTRIES
Afghanistan                      Honduras                            Qatar
Algeria                          India                                       "/
Argent ma                        Indonesia                           Rwanda
Bahamas                          Iran                                Soudi Arabia
Bahrain                          Iraq                                Sénégal
Bangladesh                       Ivory Coast                         Sierra Leone
Barbados                         Jamaica                             Singapore
Bhutan                           Jordan                              Somalia
Bolivia                          Kenya                               South Vietnam
Botswana                         Khmer Republic                      Southern Yemen
Brazil                           Korea , Republic of ( South Korea ) Sri Lanka
Burma                            Kuwait                              Sudan
Burundi                          Laos                                Swaziland
Cameroun                         Lebanon                             Syria
Central African Republic         Lesotho                             Tanzania
Chad                             Liberia                             Thailand
Chile                            Libya                               Togo
Colombia                         Malagasy Republic *                 Tonga
                                                                                          »
Congo . People * s Republic of   Malawi                              Trinidad and Tobago
Costa Rica                       Malaysia                            Tunisia
Cuba                             Maldive Islands                     Uganda
Cyprus                           Mali                                Union of Arab Emirates :
Dahomey                          Mauritania                            Abu Dhabi
Dominican Republic               Mauritius                             Ajman
Ecuador                          Mexico                                Dubai
                                                                                                «
Egypt , Arab Republic of         Morocco                               Fujairah
El Salvador                      Nauru                                 Ras al Khaimah
Equatorial Guinea                Nepal                                 Sharjah
Ethiopia                         Nicaragua                             Umm al Qaiwam
Fiji                             Niger                               Upper Volta
Gabon                            Nigeria , Federal Republic of       Uruguay
Gambia                           Oman                                Venezuela
                                                                                     ι
Ghana                            Pakistan                            Western Samoa
Guatemala                        Panama                              Yemen
Guinea , - Republic of           Paraguay                            Yugoslavia
Guyana                           Peru                                Zaire , Democratic Republic of
Haiti                            Philippines                         Zambia
 ---pagebreak---                                 COUNTRIES AND TERRITORIES
dependent or administered , or for the conduct of whose external affairs Member States
          of the Community or third countries are wholly or partly responsible
Afars and Issas ( Territory of the )
Angola ( including Cabinda )
3prmuda
B^itish Honduras
British Indian Ocean Territory ( Chagos Archipelago , Des Roches )
British Oceania ( Territories under the jurisdiction of the Western Pacific High Commission
Brunei
Cape Verde Islands
Cayraan Islands and Dependencies
Comoro Archipelago
Cook Islands
Falkland Islands ( Malvinas ) and Dependencies
French Polynesia
French Southern and Antarctic Territories
Gibraltar
Hong Kong
Macao
Mozambique
Netherlands Antilles
New Caledonia and Dependencies
New Guinea ( Australian ) and Papua
Pacific Islands administered by the United States of America or under United States^
Papua ( see Australian New Guinea )                                           trusteeship
Portuguese Guinea
Portuguese Timor
St Helena ( including Ascension , Gough Island , and Tristan da Cunha )
Saint Pierre and Miquelon
Sâo Tomé and Principe                                       »
Seychelles ( including Arairantes )                                                            >
Sikkim
Spanish territory m Africa
Surinam
Territories for which New Zealand is responsible ( Niuwe Island , Tokelau Islands )
Turks and Caicos Islands
Virgin Islands of the United States ( St Croix , St Thomas , 3t John , etc .)
Wallis and Futuna Islands
West Ijidies
Note :  The above lists may be amended subsequently to take account of changes in the
        international status of countries or territories .
  Gilbert and Ellice Islands , British Solomon Islands , New Hebrides' Condominium , 'Canton ,
  Enderbury and Pitcairn Islands .
?
  The Pacific Islandr administered by the United States of America include : Guam ,        >
  American Samoa ( including Swain 's Island ), Midway Islands , Johnston and Sand Islands ,
  Wake Island and the Trust Territory of the Pacific Islands ( the Caroline , Mariana and
  Marshall Islands ).
^Leeward Islands , Antigua, Montserrat , St Kitts-Nevis-Anguilla, British Virgin Islands ,
  Windward Islands , Dorainica , Grenada , St Lucia , St Vincent .
 ---pagebreak---                                           - io -
                                                                                             r
                                        nun         B
        The following heading and rule relating thereto is inserted into list A , annexed
        to the provisions to which the second Rn.bnaragraDh of Article 1 applies .
      Products obtained      Opening and processing   which     Onenmg and processing which
                             does not confer the status of      confers the status of " ori­
CCT                             " originating products "        ginating products " when the
             Description                                        conditions below are fulfille
head ^ng
N° *■
18.04        Cocoa butter                                       Manufacturing from " origi­
           ( fat or oil )                                       nating cocoa beans "