CELEX: 51983PC0677
Language: en
Date: 1983-11-16
Title: DRAFT DECISION OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE derogating from the definition of the concept of "originating products" to take account of the special situation of Mauritius with regard to certain items of fishing tackle (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 677
Vol. 1983/0246
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(83 ) 677 final
                                                  Brussels, 16 November 1983
                                        DRAFT
              DECISION OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE
derogating from the definition of the concept of "originating products" to take
 account of the special situation of Mauritius with regard to certain items of
                                   fishing tackle
                    (submitted to the Council by the Commission)
  COM(83) 677 final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
By letter No. 0715 of 23 June 1983, the ACP States requested on behalf
of Mauritius a derogation from the rules of origin for certain fishing
items. However, in accordance with explanatory note 10 on Article 30(1)
of Protocol No. 1 to the Lome Convention, more detailed information was
necessary to examine the request. Therefore the three month delay for
taking a decision on this subject began on the   29th August 1983, the
date on which the supplementary information was received.
This derogation request concerns   assembled fishing lines including tackle falling
within Tariff heading No. ex 97-07·
These products are assembled in Mauritius on the basis of a joint venture
managed by French and Mauritian partners in which the Mauritians hold
majority shares. The firm was set up in 197*+, employs about 100 Mauritians
 and manufactures 7 to 9 million pieces per year most of which are exported
to France.
 The raw materials used in the manufacture of fishing lines are imported
 from France, with the exception of the hooks which are bought from
 Norway and Japan to conform to the specific recommendations of the
 firm's customers. The firm has tried to find other sources of supply for
 the hooks but so far without success.
 It should also be noted that due to employment prol i.ems in Mauritius at
 present, the firm in question will not be in a position to operate at a
 profit unless it is allowed to purchase its raw materials on certain
 markets so as to ensure that its products are more competitive than
 those manufactured in third countries.
 Furthermore, it seems that the fishing line assembly industry is labour
  intensive and that the value added in Mauritius is around 60% to 70% of
 the value of the fishing items whereas the imported hooks represent
  around 20% to 25% of the value.
 ---pagebreak---                               - 2 -
In this context it is important to recall that Article 155 of the second
ACP-EEC Convention (applicable to Mauritius) provides for special treat­
ment for island ACP States so as to aid them to overcome specific
difficulties resulting from their geographical position.  According to
Article 30 of Protocol No. 1 to the Convention an examination of a
request for a derogation from the rules of origin should in particular
take account of this aspect.
In addition, this request should he grouped with similar requests made
on several occasions by Kenya and Malawi (derogations for fishing flies)
for which derogation from the origin rules were granted until the expiry
of the second Lomé Convention (28.2.1905)·
It should furthermore be noted that the manufacture of the Mauritian
products takes place using the rules on cumulation of origin to a large
extent as all the products used with the exception of the hooks are of
Community origin.
In the light of the above, the Commission proposes that a derogation
from the rules of origin be adopted for the abovementioned fishing items
which would be valid until the date of expiry of the Convention.
 ---pagebreak---                                      -  1-
                                    DRAFT
              DECISION OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE
derogating from the definition of the concept of "originating products" to
take account of the special situation of Mauritius with regard to certain
items of fishing tackle
THE CUSTOMS COOPERATION COMMITTEE,
Having regard to the Second ACP-EEC Convention signed at Lome on 31 October
1979 ^    (hereinafter referred to as "the Convention"),
Whereas Article 30 of Protocol 1 to the Convention, concerning the definition
of the concept of "originating products" and methods of administrative
cooperation, makes provision for derogations to be made from the rules of
origin by the Customs Cooperation Committee, in particular to facilitate
the development of existing industries or the creation of new industries;
Whereas the African, Caribbean and Pacific States (ACP) have requested a
derogation from the definition set out in Protocol 1 for items of fishing
tackle falling within heading ex 97.07       (assembled fishing lines including tackle);
Whereas non-originating products (hooks) are used in the manufacture of the
said items of fishing tackle; whereas however Mauritius makes use of the
possibilities offered by the cumulation systems on origin to obtain the
other products used in the manufacture of the finished product;
Whereas any deflection of trade should be avoided; whereas this can be
 achieved by fixing a m ^ i m u m percentage of non-originating products
 incorporated in the finished       oduct;
 Whereas in these circumstances a temporary derogation from the definition
 of the concept of originating products should be accorded to Mauritius,
 (1) OJ No. L 347 of 22.12.1980, p.2
 ---pagebreak---                                    - 2  -
HAS DECIDED AS FOLLOWS :
Article 1
By way of derogation from the provisions of Protocol 1 to the Convention,
assembled fishing lines including tackle manufactured in Mauritius, falling
within heading No. ex 97.07 of the Common Customs Tariff shall be
considered as originating in Mauritius provided that the value of the non­
originating fish hooks used for their manufacture and falling within heading
No. ex 97.07 of the Common Customs Tariff does not exceed 25% of the value
of the finished product.
Article 2
The competent authorities of Mauritius shall forward to the Commission every
three months a statement of the quantities in respect of which movement certi­
ficates EUR.1 have been issued pursuant to this Decision.
Article 3
The ACP States, the Member States and the Community shall be bound, each to
the extent to which it is concerned, to take measures necessary to implement
this Decision.
Article 4
This Decision shall enter into force on
It shall apply from              to 28 February 1985.
Done at Brussels,                          For the Customs Cooperation Council
                                                      Ihe Chairman