CELEX: 51977PC0245
Language: en
Date: 1977-06-06
Title: Proposal for a COUNCIL REGULATION (EEC) opening, allocating and providing for the administration of a Community tariff quota for wines known as "Cyprus sherry" falling within subheading ex 22.05 C III of the Common Customs Tariff, originating in Cyprus, and introducing subsidies for similar wine products produced in the Community (1977) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 245
Vol. 1977/0088
 ---pagebreak--- Disclaimer
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 ---pagebreak---               •      '                                    \         •
COMMISSION OF THE EUROPEAN COMMUNITIES
                         •                      COM(77)245 final
                                                Brussels . 6 June 1977
                                                       /V "           V '*>X
                                                      /V A : "N^X
                                                          Scrli
                                Proposal for 'a
                           COUNCIL PECULATION ( EEC )
            !
                           •              i'
                  opening, allocating and providing for the
                 \
                  administration of a Community tariff quota
           for wines known as " Cyprus sherry" falling
                  within subheading ex 22.05 C III of the
                   Common Customs Tariff, originating in Cyprus ,
                  and introducing subsidies for similar wine
                  products produced in the -Community ( 1977 )
              ( submitted to the. Council by the Commission )
                                  .  -
COM(77 ) 245 final
                                             Ν
 ---pagebreak---                            EXPLANATORY MEMORANDUM
On the basis of Article 12 of the Protocol laying down certain
provisions relating to the Agreement establishing an Association
between the European Economic Community and the Republic of
Cyprus following the Accession of new Member States to the
European Economic Community' , certain liqueur wines exported
by Cyprus under the label of "Cyprus sherry" are imported into
the United Kingdom and Ireland at reduced rates of duty and
with exemption from the countervailing charge , subject to
annual tariff quotas . These arrangements apply only until
30 June 1977 .
In conjunction with the above measure , the Community provide -" for
subsidies in favour ,of the Community wines , similar to Cyprus
sherry , that are imported into the two Member States in question .
Persuant to t'ae Act of Accession , the products in question will
be subject to the Common Customs Tariff duties as from I July 1977
In order to make it possible to maintain the trade flows for the
products in question , Community arrangements should be established
in the form of a Community tariff quota to be exempt from duties
and the countervailing charge . The system of subsidies applied
up to now should also be retained .
                                  *
At the present time it seems appropriate to fix the quota volume
at 100 000 hectolitres for a period from 1 July to 31 December
1977 .
This is the purpose of the proposal annexed hereto .
 OJ No L 133 , 21.5.1973 , page 88 .
 ---pagebreak---                                   Proposal for a
                     Council Regulation ( EEC)
              opening , allocating and providing for the administration
              of a Community tariff quota for wines known as "Cyprus
              sherry" falling within subheading ex 22.05 C III of the
              Common Customs Tariff , originating in Cyprus ( 1977 ),
              and introducing subsidies for similar wine products
              produced in the Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community , and in particular Article 43 and 113 thereof ,
Having regard to the proposal from the . Commission ,
                             n
Having regard to the Opinion of the European Parliament ,
Whereas the exchange of letters referred to in Article 12 of the
Protocol laying down certain provisions relating to the Agreement
establishing an Association between the European Economic Community
and the Republic of Cyprus consequent on the Accession of new
                                                     2
Member States to the European Economic Community makes provision
for special interim arrangements for tjie' wine product exported under
the label of "Cyprus sherry" and intended for direct human consump­
tion , which involve the non-application of countervailing charges
on imports of this wine into Ireland and the United Kingdom, up
to a maximum annual quota of 200 000 hectolitres ;
                                                     3
Whereas , to than end , Regulation (EEC ) No 1253 /72 , as amended by
                                4
Regulation (EEC) No 3576/ 73 , as last extended and amended by
            1                -«
                                                                 •••/•••
'oj No        ,
20J No L 133 , 21.5.1973 , page 88
30J No L 133 , 21.5.1973 , page 115 .
^03 Ho L 35*?, 2b,*Z. 4<n3 (        ~bb .
 ---pagebreak---  Regulation ( EEC ) No 1606/ 76 , introduced arrangements for imports of
 the wine product exported under the label of "Cyprus sherry",
 originating in and coming from Cyprus , and provided for subsidies
 for similar wine products produced in the Community as originally
 constituted and exported to Ireland and the United Kingdom ;
 whereas the arrangements in question apply only until 30 June 1977 ;
 Whereas , as from 1 July 1977 , imports of the product in question into
 the United Kingdom and Ireland , the traditional markets for the wine
 known as "Cyprus Sherry" should , under the Act of Accession , be subject
 to the Common Customs Tariff duties ;
 Whereas , to make it possible to maintain traditional trade flows
 for the product in question and in particular to allow for the
marketing of existing stocks , Community arrangements should be
 established in the form of a Community tariff quota exempt from
 customs duties and the countervailing charge ;
Whereas these arrangements should not disrupt the market for the
 Community wines that are similar to "Cyprus sherry"; whereas , to
 avoid causing an imbalance in the conditions of competition
between "Cyprus sherry" and similar Community wines , provision
 should be made for subsidies in favour of the latter based on the
 difference , on the markets of the importing Member States , between
 the prices of Community liqueur wines and the price of "Cyprus sherry";
Whereas a Community tariff quota should be opened under the conditions
 set out above with a limit of 100 000 hectolitres for the period
 1 July to 31 December 1 977:5
Whereas entry under the above Community tariff quota must be
conditional on the presentation of the A.' CY . 1 movement certificate
and a document which is based on the V.I.I model annexed hereto and
complies with Regulation (EEC) No 2115 / 76 ;
             i -             !
           1" 1 ■ 1                                             ··· / ···
                             I
^OJ No L 175 , 1.7.1976, page 6
^OJ No L 237 , 28.8.1976, page 1 .
 ---pagebreak---                                                     - 3
 Whereas it is in particular necessary to ensure for
 all Community importers equal and uninterrupted
 access to the abovementioned quota and uninter­
 rupted application of the rates laid down for that
 quota to all imports of the products concerned into
 all Membei Strires until the quota has been used up ;
 whereas, having regard to the principles mentioned
  above, the Community nature of the quota can be
  respected .by allocating the Community tariff quota
  among the Member States; whereas, in order to
  reflect more accurately the actual development of
  the market in the products concerned, such allocation
  should be in proportion to the needs of the Member
  States, assessed by reference to both the statistics of
  each State's imports of the said products from Cyprus
  over a representative period and the economic
   outlook for the quota period concerned;
 Whereas in this case, however, neither Community
 nor national statistics showing the breakdown for each
 of the types of wines in question are available;
 whereas, in these circumstances, the quota volumes
 should be allocated in initial shares, taking into
 account demand for these wines on the markets of the
 various Member States an(j the requirements
 that certain Member States have made
 known ;
Whereas, in order to take into account import trends
for the products concerned in the different Member
States, each of the uuota amounts should be divided
into two instalment, the first instalment being
allocated among the Member States and the second
forming a reserve intended ultimately to cover the ...
requirements of the Member States which have used
up their initial quota shares; whereas, in order to
ensure a certain degree of security to importers in
each Member State, the first instalment of the Com­
munity quotas should be determined at a level which,
 under present circumstances, may }?e99 % of each
 of the quota amounts;                 ,   ,
 Whereas the initial quota shares of the Member
 States may be used up at different times; whereas, in
 order to take this fact into account and avoid any
 break in continuity, it is important that any Member
 State having used up almost the whole of its initial
 quota share should draw an additional quota share
 from the reserve; whereas this must fee done by each
 ---pagebreak---             Member State as and when each of ks additional
            quota shares is almost entirely used up, and repeated
            as many times as the reserve allows; whereas the
           initial, and additional quota shares must be available
           for use until the end of the quota period; whereas
           this method of administration calls for close
           cooperation between Member States and the Com­
           mission, which must, in particular be able to observe
           the extent to which the quota amounts are used and
           inform Member States thereof;
           Whereas if, at a given date in die quota period, a
          considerable quantity of the initial share is left over
          in a Member State, it is essential that each State
          should return a significant proportion to the reserve
          to prevent a part of the Community quota from
          remaining unused in one Member State while it could
          be used in others:
          Whereas, since the Kingdom of Belgium, the King­
         dom of the Netherlands and the Grand Duchy of
         Luxembourg are united in and represented by the
         Benelux Economic Union, any measure concerning
         the administration of the quota shares allocated to
         that economic union may. be carried out by any of
         its members,
         HAS ADOPTED THIS REGULATION:
                                 Article 1
        1. From 1 July until 31 December 1977,
        the Common Customs Tariff duties in respect of the
        following products originating in Cyprus 'shall be
       totally suspended within the limits
       of a Community tariff quota of
        100 000 hectolitres :
CCT heading No                                     Description
ex 22.05 C III a ) 2
ex 22.05 C III b ) 3
ex 22.05 C IV a ) 2                                Liqueur wines known as
                                                   "Cyprus sherry"
ex 22.05 C IV b ) 3
 ---pagebreak---                                                          - 5 -
                                                  -5-
   2. The Protocol on the definition of the concept
   of 'originating products' and on methods of
   administrative cooperation, annexed to the Agree­
   ment ■between the European Economic Community and
   Cyprus » shall be applicable.
  3 . The entry of the wines in question under the tariff quota referred
           to in paragraph 1 shall be conditional on the presentation of a
          V.I.I document . That document shall comply with the provisions
          of Regulation (EEC) No 2115 / 76 .
  4 . Within the limits of the above tariff quota , the products reffered
           to in paragraph 1 shall be exempt from the countervailing charges
          provided for in Regulation (EEC) No 8 1 6/70^as ^amended by
          Regulation (EEC ) No 1-1 60/ 76-.                  (3.)
                               Article 2
               quotas laid down in Article 1 shall be
   divided into two instalments.
  2. A first instalment, amounting to 99 000
  hectolitres, shall be allocated among the Member
. States; (he respective shares, which subject to
  Article 5 shaM be valid until 31 December 1977,
  shall be as follows :
                                         ( in hectolitres )
       Bénélux                                      100
       Denmark                                      100
       Germany                                      100
       France                                       100
       Ireland                                      900
       Italy                                        100
      United Kingdom                             97 600
3 . The second instalment amounting to 1 000 hectolitres shall
        constitute the reserve .
                             Article 3
  1 . If 90% or more of the initial share of a Member
 State, as laid down in Article 2 (2), or 90% of that
 share less the amount returned into fhe reserve,
 where the provisions of Article 5 have been applied
  has been exhausted, that Member State shall proceed
  without delay, by notifying the Commission, to draw
 a second share equal to 15% of its initial share,
  rounded up to the next unit where appropriate, to
  the extent that the amount in the reserve allows.
    ■■ –-■■■ M    |    ,, ,, „ „ | ^                                »*»/•••
U ) VJ               /'v L 61                         77, J*-* .
 ---pagebreak---                                         - 6 -
2. If, after one or other of its initial shares have
been exhausted, 90% or more of the second share
drawn by a Member State has been used, that
Member State shall proceed in the manner specified
in paragraph 1 to draw a third share equal to 7-5%
of its initial share, rounded up to the next unit
 where appropriate, to the extent that the amount in
 the reserve allows.
3. If, after one or other of its second shares have
 been exhausted, 90% or more of the third share
 drawn by a Member State has been used, that
 Member State shaH, in accordance with the same
 conditions, draw a fourth share equal to the third .
 This process shall be applied until the reserve is
 exhausted.
 4. Notwithstanding the provisions of paragraphs 1 ,
 2 and 3, the Member States may proceed to draw
 shares smaller than those fixed in those paragraphs,
 if there is reason to believe that those shares might
 not 'be used up. They shall inform the Commission
of the reasons which led them to apply this
 paragraph.                                           .
                          Article 4
Each of the additional shares drawn pursuant to
 Article 3 shall be vaHd until 31 December 1977.
                          Article S
The Member States shall return to the reserve, not later than
  1 November               1977, the unused portion of
 their initial share which, on 15 October 1977 , is
in excess of 20% of the initial amount. They . may
return a greater portion if there are grounds for
■believing that such portion may not be used in full.
 The Member States shall, not later than 1 'November
 1977, notify the Commission of the total quantities
of the said goods imported up to and including
  15 October 1977, and charged against the
appropriate Community tariff quota and any
 quantities of the initial share returned to the reserve.
                          Article 6
The Commission shall keep account of the shares
opened by Member States in accordance with
Articles 2 and 3 and shall inform each of them of
the extent to which the reserve has been used as
soon as it receives the notifications.
 ---pagebreak---  The Commission shall, not later than 5 November
  1977, notify Member States of 'the artiount in the
  reserve after rhe return of shares pursuant to
  Article 5.
 The Commission shall ensure that any drawing which
 uses up tlhe reserve is limited to the balance
  available and, for nhis purpose, shall specify the
  amount thereof to the Member State which makes
  the final drawing.
                          Article 7
' 1 . The Member States shaU take all appropriate
   measures to ensure that, when additional shares are
  drawn pursuant to Article 3, it is possible for charges
  to be made without interruption against their ,
  accumulated sihares of the Community quota.
  2. The Member States shall ensure that importers
  of the said goods established in their territory have
  free access to the shares allocated to them.
  3. The Member States shall charge imports of the
  said goods against their shares as and when the
  goods are entered for home use.
  4. The extent to which a Member State has used
  up its share shaH be determined on the basis of the
  imports charged in accordance wish paragraph 3 .
                      Article 8
   1 . During the period 1 July to 31 December 1977 ,
   subsidies shall be granted on the Community liqueur
  wines similar to "Cyprus sherry" that are dispatched
   from the producer Member States to other Member
   States of the Community which have actually
   imported liqueur wine known as "Cyprus sherry".
   2 . The subsidies referred to in paragraph 1 shall
  be calculated on the basis of the difference , on
   the markets of the importing Member States ,
   between the prices of Community liqueur wine
   and those of "Cyprus sherry".
 ---pagebreak---                                                     - 8 -
                                              Article 9
                       Detailed rules concerning the amount of the
                        subsidy and the Community wine products
                        eligible for aid , shall be adopted in
                        accordance with the procedure laid down
                        in Article 7 of Regulation No 24 on the
                        progressive establishment of a common
                        organisation of the market in wine ( 1 ).
                                                  Article ' «
                          On receipt of a request from 'the Commission,
                          Member States shall inform it of imports actually
                          charged against their shares.
                                                 Article 1 1
                          The Member      States   and    the  Commission  shall '
                          cooperate closely in order to ensure that this
                          Regulation is observed.
                                                 Article    12
                          This   Regulation     snail    enter  into force   on
                         the third day following its publication
                         in the Official Journal of the European
                        CCommunities .
                          It shall apply from 1 July 1.977 .
           This Regulation shall be binding in its entirety and directly applicable in all Member
           States.
           Done at Brussels,                   -
                                                                           For the Council
                                                                            The President
( 1 ) OJ No     30, 20.4.1962 , page 989 / 62 .
 ---pagebreak---                                                                                ANNEX /
                             Country of crigin                                                                                                    No A ooq 000
   Y.1.1                DOCUMENT FOR THE IMPORTATION OF WINES . GRAPE JUICE                                                                         ORIGINAL
                                                                 OR GRAPE MUST                                                                 to be retained by
                                                                                                                                                   the importer
                                                                          A. CERTIFICATE
      I , the undersigned ( 'J
     guarantee that the consignment described beiow : ~ is tended for direct human consumption (aj
                                                                       – is not intended for direct human consumption (a)
   Number of packages, nature,                        Description and colour                           Number                                       Volume ( 2 )
         marks and reference Nos                              of product                              of bottles
     consigned by ( 3 )
    to (4 )                                                                                                    ■
    complies with the provisions governing production and entry into circulation in                                   '
    is/is not intended for human consumption (a )
    if intended for direct human non?!':nption and has not been subjected toPenological processes permitted under current Community
    provisions relating to the import in question .                                            *                                                             .
    ( a ) Delete as appropriate.            ( Place )                       ,                                                                        ( Date)
        Name and address of officiai agency
                                                                                                        (Signature and stamp)
                                                                       B. ANALYSIS REPORT
    I , the undersigned ( 6)
    certify that the consignment decribed ir the above certificate has the following analytical characteristics :
    For grape musts or grape juice :
   ( a ) density                                                                     ( f) volatile acidity
   For wine and grape musts still in fermentation :                                  (g ) citric acidity
   ( b ) total alcoholic strength                                                    ( h) total sulphur dioxide
   (c) actual alcoholic strength                                                     ( i ) presence of products obtained from varieties resulting
   For all products •                                                                       from interspecific crossings (direct-producer hybrids) or
                                                                                            from other varieties not of the species vitis vinifera ( 7) ....
   ( d ) total dry extract
    (e ) total acidity
                                                           ( Place)                                                                                  (Date)
        Name and address of laboratory
                                                                                                        (Signature and stamp)
M Name and official title of person in charge of the official agency.                     jM Name of country of origin of the wine
   Give amount in figures in hi and litres.                                               (•} Name and official title of person in charge of the laboratory,
3| Full name and address of consignor.                                                    j'l Answer 'yes' or 'no'.
*) Full name and address of consignee.
 ---pagebreak---                                                                    ATTRIBUTIONS
                   1                               2
                                                              I               3                               4                    5
                                                                                                                                       ^
               Volume                                             Reference number and     Full name and address of
                                        Reference number and      date of accompanying    the consignee named on            Stamp of the
     A. Available                        date of the extracts             documents ( ' )    the extract or on the            responsible
                                                                                                                               authority
   ^ B. Attributed                                                or customs documents     accompanying document
                                                                                              \
     A.
  )
     B.
     A.
     B.
     .  •«
                                                                .  j  •                          ' *> *« u : .i - .. -»» s.
    A.
     B.
    A.
                                                                        i
    B.
    A.
    B.
                                           i
    A.
    B.
                                                                    «
(' ) Where required by Community rules.
 ---pagebreak---   INANCIAL    STATEMENT
1 . Budget line concerned : Ch . 12 Art . 120
2 . Legal basis : Articles A3 and 113
3 . Title of the tariff measure :
      Proposal for a Council Regulation (EEC) opening , allocating and
      providing for the administration of a Community tariff quota
      for wines known as "Cyprus sherry" falling within subheading
      ex 22.05 C III of the Common Customs Tariff , originating in
      Cyprus , and introducing subsidies for similar wine products
      produced in the Community ( 1977 )
4. Objectives :
      Extension of tariff arrangements due to expire on 30 June 1977 .
5 . Method of calculation
    - CCT No               ex 22.05 C III
    - Quota volume         100 000 hl
    - Quota duty r ^ te    exemption
    - Duty rate CCT        between 14 and 19 u.a. /hl
6 . Loss of receipts :
      approximative ^ 300 000 u.a . ( estimate)