CELEX: 51989PC0127
Language: en
Date: 1989-03-21
Title: Draft DECISION OF THE EEC-(A) JOINT COMMITTEE amending Annex III to Protocol 3 concerning the definition of the concept of 'originating products' and methods of administrative cooperation#Proposal for a COUNCIL REGULATION (EEC) on - the implementation of Decision No /89 of the EEC-(A) Joint Committee amending Protocol 3 concerning the definition of the concept of 'originating products' and methods of administrative cooperation and - establishing provisions for the implementation of the Joint Declaration annexed to Decision No 1/88 of the EEC-(A) Joint Committee#(presented by the Commission)

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DOCUMENTS "COM"
COM (89) 127
Vol. 1989/0038
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(89 )  127 final
                                                     Brussels , 21 March 1989
                                                Draft
                            DECISION OF THE EEC-(A ) JOINT COMMITTEE
                      amending Annex III to Protocol 3 concerning the
                   definition of the       concept of 'originating products'
                          and methods of administrative cooperation
                                           Proposai for a
                                      COUNCIL REGULATION ( EEC )
                                                  on
 - the implémentation of Decision No                 / 89 of the EEC-(A ) Joint Committee
    amending Protocol 3 concerning the definition of the concept of 'originating
    products' and methods of administrative cooperation and
 - establishing provisions for the implémentation of the Joint Déclaration annexed
    to Decision No 1 / 88 of the EEC-(A ) Joint Committee
                                  ( presented by the Commission )
 ( A ) Austria / Finland / Iceland / Norway / Sweden / Switzer land
 ---pagebreak---                                      Expianetory Mémorandum
1.    The rules of origin set out in Protocol 3 to the EEC-EETA Agreements were
      amended by Decisions No . 1 /88 of the EEC-EFTA Joint Committees following
      the   introduction     of the   Harmonized    System .    These  decisions were made
      applicable in the Commuriity by Couricil Régulations ( EEC ) Nos . 1598 /88 ( 1 ),
      1599 /88 ( 2 ), 1957 /88 ( 3 ), 1958 /88 ( 4 ), 2426 /88 ( 5 ) and 2427 /88 ( 6 ) of 24
      May 1988 .
2.    Decision No .    1 /88  is accompanied by a Joint Declaration concerning the
      review of the changes to the origin rules as a result of the introduction
      of the Harmonized System .        The Declaration states that the Joint Committee
      shall , as a matter of urgency , make an examination of the need to restore
      the substance of any rule of origin as it was before Decision No . 1 /88 ,
      where it appears that an alteration results in a situation prejudicial to
      the  interest of the sectors concerned .           In such cases the Joint Committee
      must take a decision within a period of three months of the request being
      made to it by either of the parties to the Agreement .
3.    At the beginning of June 1988 the EFTA countries raised a practical problem
      which they had encountered concerning the processing of rice falling under
      heading No . 10.06 into a pre-cooked , deep-frozen preparation of rice under
      H5 heading No . 19.04 .
      Before    the   Harmonized     System  was    introduced ,   processed  products    were
      classified under CCCN heading No . 21.07 . As the rule applied at that time
      was the change of tariff heading rule , the processed product obtained
      originating status .
( 1 ) 0J No . L 149 , 15.6.1988 , p. 1 .
( 2 ) 0J No . L 149 , 15.6.1988 , p. 71 .
( 3 ) 0J No . 180 , 9.7.1988 , p. 1 .
( 4 ) 0J No . 180 , 9.7.1988 , p. 71 .
( 5 ) 0J No . 216 , 8.8.1988 , p. 1 .
( 6 ) 0J No . 216 , 8.8.1988 , p. 71 .
 ---pagebreak---    In the new HS heeding No . 19.04 , the former CCCN heeding Nos . ex 18.06 ,
   19.05 end ex 21.07 heve been regrouped .     The rule of origin epplied to this
   new heeding in Decision No . 1 / 88 corresponds to the rule which wes epplied
   to former heeding No . 19.04 , which wes e stricter rule .           The reeson for
   this wes e desire to simplify the rules of origin , in view of the feet that
   the rule in question covered most trade .
   The problem raised by the EFTA countries shows that there ere practical
   cases where the result    is a situation prejudicial to the interest of the
   sectors concerned .    The Committee on Origin is therefore unanimously in
   favour of restoring the substance of the rule as it was before Decision
   No . 1 / 88 .
4. The   practical exemple   given  above   already shows     that   it  is really not
   possible to comply with      the three-month   period    laid   down   in  the   Joint
   Déclaration .
   The first priority in such cases is an in-depth discussion by the Committee
   on Origin based on working papers prepared by the Commission departments .
   The Commission 's proposal then has to be formally adopted and transmitted
   to the Council   for discussion .    The   Council   then has to adopt       a common
   position , the Joint Committees have to adopt the decision and , finally , the
   Council has to adopt the implementing regulation .
   As there are already other cases up for review ,          which have been raised
   either by Member    States or by EFTA countries ,        it  would    seem  that   the
   decision-making   process   should  be  speeded    up  by giving     the   Commission
   authority to adopt the common position and the implementing regulations , at
   least in cases of a " technical " nature with no political implications .
 ---pagebreak---                                      - 3 -
3. Consequently , the following measures are proposée):
   (i)    a Decision of the EEC-EFTA Joint Committees amending Annex III to
          Protocol 3 ;
   ( ii ) a Council Régulation
             implementing these Joint Committee Decisions in the Community
             and
          -  laying down the provisions for implementing the Joint Declaration
             annexed to Decision No . 1 / 88 of the EEC-EFTA Joint Committees .
 ---pagebreak---                                      Draft Decision
                              of the EEC-(A ) Joint Committee
                      amending Annex III to Protocol 3 concerning
               the definition of the concept of 'originating products'
                       and methods of administrative cooperation
THE JOINT COMMITTEE
Having regard to the Agreement between the European Economic Community and ( B ),
signed in Brussels on ( C ),
Having    regard   to  Protocol    3  concerning     the  definition of the concept of
'originating products'      and methods of administrative cooperation , hereinafter
referred to as 'Protocol 3' , and in particular Article 23 thereof ,
Whereas the Joint Declaration annexed to Decision No . 1 /88 of the EEC-(A ) Joint
Committee provides for       a review of the changes made to the rules of origin
following the introduction of the Harmonized System where the amendments result
in a situation prejudicial to the interest of the sectors concerned ; whereas it
also provides for the substance of the rule of origin concerned to be restored
as from 1 January 1988 ;
( A ) Austria/ Finland/ Iceland/Norway/ Sweden/ Switzerland .
( B ) Republic of Austria                  ( C ) 22 July 1972
      Republic of Finland                        5 October 1973
      Republic of Iceland                        22 July 1972
      Kingdom of Norway                          14 May 1973
      Kingdom of Sweden                          22 July 1972
      Swiss Confederation                        22 July 1972
 ---pagebreak---                                         - 2 -
Whereas the rule of origin concerning cereals other than maize ( corn ), in grain
form , pre-cooked or otherwise prepared , which was established by Decision No .
1 /88 of the EEC-(A ) Joint Committee , should be amended to restore the substance
of this rules as it was before the introduction of the Harmonized System ,
HAS DECIDED AS F0LL0WS :
                                      Article 1
In Annex III to Protocol 3 to the EEC-(A ) Agreement the wording of the rule
relating to HS heading No . 19.04 is hereby replaced by that set out in the
Annex to this decision .
                                      Article 2
This Decision shall enter into force on 1 January 1988 .
Done at Brussels ,
                                           For the Joint Committee
                                           The President
 ---pagebreak---                                      ANNEX
HS heading Description of product          Working or processing carried out on
   No .                                    non-originating materials that
                                           confers originating status
    (1 )               (2)                                    (3)
19.04      Prepared foods obtained
           by the swelling or
           roasting of cereals or
           cereal products ( for
           example , cornflakes );
           cereals , other than maize
           ( corn ), in grain form ,
           pre-cooked or otherwise
           prepared
           - Not containing cocoa
              - Cereals , other than       Manufacture from materials of any
                maize ( corn ), in         heading . However , grains and cobs
                grain form ,               of sweet corn , prepared or preserved ,
                pre-cooked or              of heading Nos . 20.01 , 20.04 and
                otherwise prepared         20.05 and uncooked , boiled or steamed
                                           sweet corn , frozen , of heading No .
                                           07.10 , may not be used .
              - Other                      Manufacture in which :
                                           - all the cereals and their
                                             derivatives ( except maize of the
                                             species Zea indurata and durum
                                             wheat   and their derivatives used
                                             must be wholly obtained , and
                                           - the value of any materials of
                                             Chapter 17 used does not exceed 30%
                                             of the ex-works price of the
                                             product .
           - Containing cocoa              Manufacture from materials not
                                           classified within heading No . 18.06 ,
                                           provided the value of any materials
                                           of Chapter 17 used does not exceed
                                           30% of the ex-works price of the
                                           product .
 ---pagebreak---                              Proposai for a
                         Council Regulation ( EEC ) .
                                     on
       the implementation of Decision No .           /89 of the EEC-(A ) Joint Committee
       amending   Protocol   3     concerning    the   definition   of  the  concept    of
       'originating products' and methods of administrative cooperation and
       establishing  provisions      for  the   implemention   of the  Joint Declaration
       annexed to Decision No . 1 /88 of the EEC-(A ) Joint Committee
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Article 113 thereof ,
Having regard to the proposal from the Commission ,
Whereas the Agreement between the European Economic Community srid               ( B ) was
signed on ( C ) and entered into force on ( D );
Whereas , by virtue of Article 28 of Protocol 3 concerning the definition of the
concept of 'originating products'           and methods of administrative cooperation ,
which forms an integral part of the above Agreement , the Joint Committee has
adopted Decision No .            /89 amending Protocol 3 ;
( A ) Austria/Finland/ Iceland/Norway/ Sweden/ Switzerland
( B ) Republic of Austria
       Republic of Finland
       Republic of Iceland
       Kingdom of Norway
       Kingdom of Sweden
       Swiss Confederation
 ( C ) 22 July 1972            ( D ) 1 January 1973
       5 October 1973                 1 January 1974
       22 July 1972                   1 April 1973
       14 May 1973                    1 July 1973
       22 July 1972                   1 January 1973
       22 July 1972                   1 January 1973
 ---pagebreak---                                               - 2 -
Whereas the Joint Declaration annexed to Decision No . 1 /88 of the EEC-(A ) Joint
Committee      implemented    in the Community by              ( E ) provides , under certain
conditions , for a review of the changes made to the rules of origin following
the introduction of the Harmonized System ; whereas by virture of that Joint
Declaration the Joint Committee must tske a decision within a period of three
months of a request being made to it by either of the parties to the Agreement ;
Whereas this review concerns cases where the transposition of the existing
rules of origin into the Harmonized System was not entirely neutral and where
it is necessary to restore the substance of previous former rules of origin ;
Whereas with a view to a Decision of the Joint Committee a common position has
to be reached by the Community ; whereas it is then necessary to make the Joint
Committee 's Decision applicable in the Community ;
Whereas this decision-making process makes it impossible to comply with the
three-month time limit laid down in the Joint Declaration ; whereas the
procedure should therefore be speeded up and the Community 's common position
should be adopted by the Commission according to the procedure set out in
Article 14 of Council Regulation ( EEC ) No . 802 /68 of 27 June 1968 on the common
definition of the concept of the origin of goods ( 2 ), as last amended by
Commission Regulation ( EEC ) No . 3860 /87 ( 3 );              wlier.ea.s it is
also necessary to confer on the Commission the power to adopt the necessary
measures to make the Joint Committee 's Decision applicable in the Community ,
HAS ADOPTED THI5 REGULATION :
( E ) Council Régulation ( EEC ) No . 1598 /88      ( 1 ).
      ( 1 ) 0J No . L 149 , 15.6.1988 , p. 1 .
      Council Regulation ( EEC ) No . 1599/88       ( 1 ).
      ( 1 ) 0J No . L 149 , 15.6.1988 , p . 71 .
      Council Regulation ( EEC ) No . 1957 /88      H ).
      ( 1 ) 0J No . L 180, 9.7.1988 , p . 1 .
      Council Regulation ( EEC ) No . 1958/88       ( 1 ).
      ( 1 ) 0J No . L 180, 9.7.1988 , p. 71 .
      Council Regulation ( EEC ) No . 2426 /88      ( 1 ).
      ( 1 ) 0J No . 216 , 8.8.1988 , p. 1 .
      Council Regulation ( EEC ) No . 2427/88       (( 11 ))..
      ( 1 ) 0J No . 216, 8.8.1988 , p. 71 .
( 2 ) 0J No . L 148 , 28.6.1968 , p. 1 .
( 3 ) 0J No . L 363 , 23.12.1987 , p. 30 .
 ---pagebreak---                                            - 3 -
                                        Article 1
Decision No .           /89 of the EEC-(l ) Joint Committee shall apply in the
Community .
The text of the Decision is attacheci to this Régulation .
                                        Article 2
The following shall bè adopted' in accordance    with .   the procedure laid down in
Article 14 of Régulation ( EEC ) No . 802 /68 :
( a ) the Community's common position for the purposes of the Decisions        of the
      EEC-(A ) Joint Committee concerning a review of the changes made        to the
      rules of origin following the introduction of the Harmonized             System
      pursuarit to the Joint Déclaration annexed to Decision No . 1 /88       of the
      EEC-(A ) Joint Committee ;
( b ) implémentation in the Community of the Decisions referred to under ( a ).
                                        Article 3
This Régulation shall enter into force on the third dey following that of its
publication in the Official Journal of the Européen Communities .
Article 1      shall apply with : effect f rom 1 January 1988 . /- ..
This Regulation shall be binding in its entirety and directly applicable in all
Member States .
Done at Brussels ,
                                                    For the Council
                                                     The President