CELEX: 51995PC0692
Language: en
Date: 1995-12-19
Title: Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Community and Malta concerning authorization to issue certificates of origin for certain oil products transiting the territory of Malta in place of the Form A certificates of origin issued by some countries benefiting from the Community' s Generalized Scheme of Preferences

COMMISSION OF THE EUROPEAN COMMUNITIES
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                                                     Brussels, 19 12.1995
                                                     C()M(95) 692 linal
                                                     95/ 0346 (ACC)
                                     Proposal for £
                                COUNCIL DECISION
on the conclusion of an Agreement in the form of an exchange of letters between the
European Community and Malta concerning authorization to issue certificates of origin
for certain oil products transiting the territory of Malta in place of the Form A certificates
of origin issued by some countries benefiting from the Community's Generalized Scheme
of Preferences
                           (presented by the Commission)
 ---pagebreak---  ---pagebreak---                        EXPLANATORY MEMORANDUM
1. At its 1873rd meeting on 6 October 1995 the Council authorized the Commission
   to negotiate an agreement in the form of an exchange of letters between the
   European Community and Malta authorizing the Maltese authorities to issue
   certificates of origin in place of the Form A certificates of origin issued by some
   countries benefiting from the Community's Generalized Scheme of Preferences.
2. On the basis of this authorization, Commission departments have negotiated with
   Malta the wording of the letters to be exchanged, which are at Annex.
   A draft was communicated to the Council when the decision of 6 October was
   being prepared.
3. Malta has requested some minimal changes to this wording. But what is essential
   is that the Maltese authorities have stated that they are prepared to cooperate
   wholeheartedly with the Community and Member State authorities to ensure
   absolute transparency of all operations carried out in Grand Harbour, Valetta.
4. The Commission has therefore drafted the following proposal for adoption by the
   Council.
                                         4
 ---pagebreak---                                Proposal for a Council Decision
on the conclusion of an Agreement in the form of an exchange of letters between the
European Community and Malta concerning authorization to issue certificates of origin
for certain oil products transiting the territory of Malta in place of the Form A certificates
of origin issued by some countries benefiting from the Community's Generalized Scheme
of Preferences
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas certain oil products entering the Community may be exempted totally or partially
from the Common Customs Tariff duties applicable under the provisions of Council
Regulation (EC) No 3281/94 of 19 December 1994 applying a four-year scheme of
generalized preferences (1995-98) in respect of certain industrial products originating in
developing countries;1
Whereas, to benefit from that exemption, the said products have to comply with the
provisions on origin set out in Regulation (EEC) No 2454/93 of 2 July 1993,2 as amended
by Regulation (EC) No 3254/94 of 19 December 1994;3 whereas the specific criteria that
have to be met if the products are to benefit from these preferences include the condition
that the goods have to be transported directly from the beneficiary country to the
Community;
Whereas the Government of Malta has requested permission from the Community for oil
products originating in Middle Eastern countries, benefiting from the Generalized Scheme
of Preferences and consigned to the Community, to be exempted from the direct transport
rule and, where the needs of transport or commerce so require, to be discharged, stored
and reloaded in the port of Valetta without ceasing to benefit from the Generalized
Scheme of Preferences;
        OJL348, 31.12.1994, p. 1
        OJL253, 2.7.1993, p. I.
        OJL346, 31.12.1994, p. 1
                                                 1
 ---pagebreak--- Whereas, in view of Malta's geographical position, of the special nature of the market in
oil products and reasons inherent in the carriage of such products, the Maltese
Government's request may be granted initially for a period of 18 months; whereas the
Maltese authorities should therefore be authorized to issue certificates of origin in place of
the Form A certificates of origin which have accompanied the products in question from
the beneficiary country; whereas at the same time agreement has to be reached with the
said authorities about the conditions that have to be met to ensure that there are no
disturbances in this sector,
HAS DECIDED AS FOLLOWS:
                                         Article 1
The Agreement in the form of an exchange of letters between the European Community
and Malta concerning authorization to issue certificates of origin for certain oil products
transiting the territory of Malta in place of the Form A certificates of origin issued by
Middle Eastern countries benefiting from the Community's Generalized Scheme of
Preferences is hereby approved on behalf of the Community.
The text of the Agreement is annexed to this Decision.
                                         Article 2
The President of the Council is authorised to designate the persons empowered to sign the
Agreement and bind the Community.
                                             3
 ---pagebreak---                                         AGREEMENT
In the form of an exchange of letters between the European Community and Malta,
concerning the authorisation granted by the Community to issue, for certain petroleum
products transiting through the territory of Malta, certificates to replace Form A
certificates delivered by certain Generalised System of Preferences beneficiary countries in
the Middle East.
                                 A. Letter of the Community
Dear Sir,
"1.    During 1993 and 1994, your country requested authorisation from the European
       Community to issue certificates to replace certificates Form A delivered by, amongst
       others, the Generalised System of Preferences beneficiary countries in the Middle
       East for certain petroleum products transiting through Maltese territory.
2.     The European Community is disposed to granting you such an authorisation under
       the following conditions:
       2.1   That authorisation is limited to the petroleum products which appear in the
             following list and originate in the countries bordering the Mediterranean and
             Black Seas and the Persian Gulf (Algeria, Morocco, Tunisia, Egypt, Saudi
             Arabia, Oman, the United Arab Emirates, Qatar, Bahrain, Kuwait, Syria,
             Lebanon, Iran, Russia, Ukraine and Georgia) insofar as they are not the
              subject of a suspension from tariff preferences in application of the provisions
              set out in Council Regulation No. 3281/94 of 19 December 1994; the said
              petroleum products must arrive in your country accompanied by a Form A
             certificate, and be destined for a European Community country and which
             figure on the following list :
             HS Code                  Description of the goods
             ex 2707                  Oils in which the weight of the aromatic constituents
                                      exceeds that of the non-aromatic constituents, being
                                      oils similar to mineral oils obtained by distillation of
                                      high temperature coal tar, of which more than 65% by
                                      volume distils at a temperature of up to 250°C
                                      (including mixtures of petroleum spirit and benzole),
                                      for use as power or heating fuels.
              ex 2709                 Crude oils obtained from bituminous minerals.
              2710 to 2712            Petroleum oils and oils obtained from bituminous
                                      materials, other than crude; preparations not
                                      elsewhere specified or included, containing by weight
                                      70% or more of petroleum oils or of oils obtained
                                      from bituminous materials, these oils being the basic
                                      constituents of the preparations.
 ---pagebreak---                                     Petroleum gases and other gaseous hydrocarbons.
                                    Petroleum jelly; paraffin wax, microcrystalline
                                    petroleum 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.
           2713 to 2715             Petroleum coke, petroleum bitumen and other residues
                                    of petroleum oils or of oils obtained from bituminous
                                    materials.
                                    Bitumen and asphalt, natural; bituminous or oil shale
                                    and tar sands; asphaltites and asphaltic rocks.
                                    Bituminous mixtures based on natural asphalt, on
                                    natural bitumen, on petroleum bitumen, on mineral tar
                                    or on mineral tar pitch.
2.2 Before being conveyed totally or partly to one or more countries of the European
    Community under the cover of one or more replacement certificates, the products
    referred to above may only be subjected to unloading, storage or loading operations
    in the harbour facilities of your country.
2.3 In application of the preceding points concerning the petroleum products
    mentionned in the first paragraph reference is made, especially in the field of
    administrative co-operation, to the pertinent provisions of the following regulations:
           Council Regulation (EEC) No. 3281/94 of 19 December 1994 applying
           Generalized Tariff Preferences for the period 1995-1998 in respect of certain
           industrial products originating in developing countries.
           Commission Regulation (EEC) No. 2454/93 of 2 July 1993 laying down
           provisions for the implementing of Council Regulation (EEC) No. 2913/92
           establishing the Community Customs Code, as last amended by Regulation
           (EC) No.3254/94.
2.4 Your country must commit itself to ensuring the correct implementation of the
    present agreement especially with regard to the respect of the following provisions:
    2.4.1 All operations referred to at 2.2 carried out in the harbour installations of
           Malta are carried out under the control of the customs authorities of your
           country. Those authorities shall also be competent to establish replacement
           certificates (Form A).
 ---pagebreak---       2.4.2 The storage of the products in the harbour facilities of your country is carried
             out in accordance with the "accounting segregation" method (1). Every three
             months the Maltese authorities shall send to the Commission services of the
             European Community a statistical statement containing the products by
             category and by country of origin, with reference to the certificate Form A
             issued by those countries, the quantities which have arrived, which are in
             storage and which have been re-exported. In the latter instance, an indication
             must be made to the country or countries of destination along with a reference
            to the replacement certificate.
            The first communication will be effected within the first fifteen days of the
             fourth month following the date of entry into force of this agreement.
     2.4.3 The replacement certificates will be accompanied by a photocopy of the initial
             certificate and will clearly indicate, in box 4, the state of attribution of the last.
             They must also be accompanied by the bill of loading or by another
            corroborating document delivered in the GSP beneficiary country in order to
            assure that the goods covered by the replacement certificate are of the same
            quality as those originally imported intially in Malta.
     2.4.4 At the request of the Commission services, a Member State of the Community
            or on the initiative of the competent Maltese authorities, joint missions will be
            carried out to assure the correct operation of the present agreement.
3.   The European Community can immediately suspend the application of the present
     arrangement in the case where there are serious doubts as to its correct operation.
     However, the competent authorities of your country shall be informed as a
     preliminary.
4.   This agreement shall be valid for an initial period of 18 months from the date of its
     entry into force.
5.   The Community would be grateful to your country for kindly confirming in writing
     that it accepts the preceding conditions".
We have the honour Sir, to assure you of our highest consideration
                                                    On behalf of the Council
                                                    of the European Union
(1)  Accounting segregation: procedure permitting effective verification by customs
     services, by written controls, that the quantity of reexported products corresponds
     to the quantity of products initially imported.
                                                     c
 ---pagebreak---                                    B. Letter from Malta
Dear Sir,
I have the honour to acknowledge receipt today of your letter reading as follows:
"1.   During 1993 and 1994, your country requested authorisation from the European
      Community to issue certificates to replace certificates Form A delivered by the
      Generalised System of Preferences beneficiary countries in the Middle East for
      certain petroleum products transiting through Maltese territory.
2.    The European Community is disposed to granting you such an authorisation under
      the following conditions:
      2.1   That authorisation is limited to the petroleum products which appear in the
            following list and which are accompanied by a Form A certificate delivered in
            the countries bordering the Mediterranean and Black Seas and the Persian
            Gulf (Algeria, Morocco, Tunisia, Egypt, Saudi Arabia, Oman, the United
            Arab Emirates, Qatar, Bahrain, Kuwait, Syria, Lebanon, Iran, Russia, Ukraine
            and Georgia) insofar as they are not the subject of a suspension from tariff
            preferences in application of the provisions set out in Council Regulation No
            3281/94 of 19 December 1994; the said petroleum products must arrive in
            your country accompanied by a Form A certificate, and be destined for a
            European Community country:
            HS Code                  Description of the goods
            ex 2707                  Oils in which the weight of the aromatic constituents
                                     exceeds that of the non-aromatic constituents, being
                                     oils similar to mineral oils obtained by distillation of
                                     high temperature coal tar, of which more than 65% by
                                     volume distils at a temperature of up to 250°C
                                     (including mixtures of petroleum spirit and benzole),
                                     for use as power or heating fuels.
            ex 2709                  Crude oils obtained from bituminous minerals.
            2710 to 2712             Petroleum oils and oils obtained from bituminous
                                     materials, other than crude; preparations not
                                     elsewhere specified or included, containing by weight
                                     70% or more of petroleum oils or of oils obtained
                                     from bituminous materials, these oils being the basic
                                     constituents of the preparations
                                     Petroleum gases and other gaseous hydrocarbons.
                                     Petroleum jelly; paraffin wax, microcrystalline
                                     petroleum 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.
                                                  ?
 ---pagebreak---            2713 to 2715             Petroleum coke, petroleum bitumen and other residues
                                    of petroleum oils or of oils obtained from bituminous
                                    materials.
                                    Bitumen and asphalt, natural; bituminous or oil shale
                                    and tar sands; asphaltites and asphaltic rocks.
                                    Bituminous mixtures based on natural asphalt, on
                                    natural bitumen, on petroleum bitumen, on mineral tar
                                    or on mineral tar pitch.
2.2 Before being conveyed totally or partly to one or more countries of the European
    Community under the cover of one or more replacement certificates, the products
    referred to above may only be subjected to unloading, storage or loading operations
    in the harbour facilities of your country.
2.3 In application of the preceding points concerning the petroleum products
    mentionned in the first paragrap reference is made, especially in the field of
    administrative co-operation, to the pertinent provisions of the following regulations:
           Council Regulation (EEC) No. 3281/94 of 19 December 1994 applying
           Generalized Tariff Preferences for the period 1995-1998 in respect of certain
           industrial products originating in developing countries.
           Commission Regulation (EEC) No. 2454/93 of 2 July 1993 laying down
           provisions for the implementing of Council Regulation (EEC) No. 2913/92
           establishing the Community Customs Code, as last amended by Regulation
           (EC) No. 3254/94.
2.4 Your country must commit itself to ensuring the correct implementation of the
    present arrangement especially with regard to the respect of the following
    provisions:
    2.4.1 All operations referred to at 2.2 which carried out in the harbour installations
           of Malta are carried out under the control of the customs authorities of your
           country. Those authorities shall also be competent to establish replacement
           certificates (Form A).
    2.4.2 The storage of the products in the harbour facilities of your country is carried
           out in accordance with the "accounting segregation" method (1). Every three
           months the Maltese authorities shall send to the Commission services of the
           European Community a statistical statement containing the products by
           category and by country of origin, with reference to the certificate Form A
           issued by those countries, the quantities which have arrived, which are in
           storage and which have been re-exported. In the latter instance, an indication
           must be made to the country or countries of destination along with a reference
          to the replacement certificate.
           The first communication will be effected within the first fifteen days of the
           fourth month following the date of entry into force of this agreement.
                                                 î
 ---pagebreak---       2.4.3 The replacement certificates will be accompanied by a photocopy of the initial
             certificate and will clearly indicate, in box 4, the state of attribution of the last.
             They must also be accompanied by the bill of loading or by another
             corroborating document delivered in the GSP beneficiary country in order to
             assure that the goods covered by the replacement certificate are of the same
             quality as those originally imported intially in Malta.
      2.4.4 At the request of the Commission services, a Member State of the Community
             or on the initiative of the competent Maltese authorities, joint missions will be
             carried out to assure the correct operation of the present agreement.
3.    The European Community can immediately suspend the application of the present
      arrangement in the case where there are serious doubts as to its correct operation.
      However, the competent authorities of your country shall be informed as a
      preliminary.
4.    This agreement shall be valid for a period of 18 months from the date of its entry
      into force.
5.    The Community would be grateful to your country for kindly confirming in writing
      that it accepts the preceding conditions".
I have the honour to confirm the agreement of my government to the above.
I have the honour Sir, to assure you of my highest consideration
                                                          For the Government of Malta
(1)   Accounting segregation: procedure permitting effective verification by customs
      services, by written controls, that the quantity of reexported products corresponds
      to the quantity of products initially imported.
                                                      3
 ---pagebreak---                                 FINANCIAL STATEMENT
The agreement is neutral in financial terms. It makes no new concessions. It consists
simply of an arrangement by which certain oil products will continue to benefit from the
generalized tariff preferences even if the products are stored in Malta whilst in transit to
the Community.
Information regarding existing or planned prevention and protection measures:
       operations will be strictly limited to storage-related handling (paragraph 2.2 of the
       agreement);
       the arrangement provided for in paragraph 2.4.3 of the agreement has been
       included to make it possible to check that the quantities and qualities of products
       entering Malta correspond to the quantities and qualities exported to the
       Community.
                                                     D
                                                 >
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(95) 692 final
                                              DOCUMENTS
EN                                                                        11 12
                                     Catalogue number : CB-C0-95-727-EN-C
                                                              ISBN 92-77-98070-2
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