CELEX: 51975PC0668
Language: en
Date: 1975-12-19
Title: Proposal for a COUNCIL DIRECTIVE on the application of the Council Directive of 4 March 1969, concerning inward processing authorisations for certain products originating from EFTA states and the Faroe Islands (submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 668
Vol. 1975/0245
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 ---pagebreak--- COMMISSION CP THE SUS0ESAN COMMUNITIES
                                                 COM(75 ) 668 final
                                                 Brussels , 19 December 1975
                                        Proposal for a
                                      COUNCIL  DIRECTIVE
             on the application of the Council Directive of 4 March 1969 *
             concerning inward processing authorisations for certain pro­
             ducts originating from EFTA states and the Faroe Islands
                      ( sabmitted. "by the Commission to the Council )
  GOi ;( 75 ) 663 final
 ---pagebreak---                           EXPLANATORY    MEMORANDUM
I. The Problem
1.1 . Under Article 5 of the Council Directive of k March 19^9 on the harmoni­
       sation of provisions laid down by law , regulation or administrative
       action in respect of inward processing ( 69/73/EEC ) competent authorities
     - of the Member States may grant inward processing authorisations in all
       cases where the procedu© contributes towards providing the most fa­
       vourable conditions for the export of goods resulting from such proces­
       sing without conflicting with essential interests of producers within
       the Community .  The authorities must thus weigh up the interests at
       issue .
1.2 . Processors in Denmark and the United Kingdom can obtain products ori­
       ginating from EFTA states free of duty without resorting to the inward
       processing procedure . Processcrs operating in the Community as originally
       constituted on the other hand , must resort to the inward processing pro­
       cedure to obtain these products free of duty . This implies - the' examina­
       tion of the conditions provided for in Article 5 ( 1 ) of the Directive
       69/73/EEC .  Moreover that examination must relate to the Community as "
       currently established .              /                   ' * .■■
1.3 . Products originating from the EFTA states and the Faroe Islands , as a
       general rule according to the calendar of tariff reductions, benefit from
       a reduction to 20 % of the basic customs duty on importation into the
       Community * from I January 1976 .
       These tariff reductions arise from agreements concluded between the
       European Economic Community and the EFTA states , and the rules on imports
       originating from the Faroe Islands .
       These customs duties will be abolished on I July 1977 for        - most of
       these products .
 ---pagebreak---                                            - 2 -
1.4 . Aa a result of this reduction in basic duties the use of the inward
                                               I
        processing procedure cannot conflict with the essential interests of
        Community producers : it appears opportune therefore to grant to
        processor® in the Community as originally established and in Ireland , 1
        the same treatment . as that granted to British and Danish processors .
        To this end it is necessary to consider the conditions of Article 5 ( 1 )
        of Directive 69/73/&EC as being fulfilled * ,
1.5 * The abandonment of the evaluation of the . interests at stake for certain
        processing traffic with the EFTA states and the Faroe Islands would
        lead moreover to an administrative simplification which would be inclu­
        ded within the framework of simplification set out in Article 5 ( 2 ) and
        ( 3 ) of Directive 69/73/EEC , in Directive 7M&7/EEC and in the draft
        Directive on repaired goods ( Doc . GUD/299/75, RPA 4-92 ).
     . The goods which mefcrbtf taken into account for such a simplification are
        examined below . #                          : :                  - ■>
2 . The goods concerned ^        v .   v
2*1 . The goods intended for inward processing which are to be taken into
        account , are products originating from the following' EFTA countries :
            - Austria       (Reg. (EEC) 2836/72 , O.J. L 300 of 31.12.1972 , p . 1 ) .
   "        - Sweden    '   (Reg. (EEC ) 2838/72 , O.J. L 300 df 31. 12 . 1972 , p. 96 )
            - Switzerland (Reg . (EEC ) 2840/73 ," O.J.' L 300 of 31. 12 . 1972 ," p. 188)
      ' 0 - Iceland ^ " (Reg. (EEC ) 2842/72 , O.J. L 301 of 31. 12 . 1972 , p . 1 )
            - Portugal      (Reg. (EEC ) 2844/72 , O.J. L 301 of JI, 12 . 1972 , p. 164 )
            - Norway      " (Reg. (EEC ) 1691/73 , O.J. L 171 of 27 . 06.1973 , p. 1 )
  '"          Finland       (Beg. (EEC ) 3177/73 , O.J. L 328 of 28.11.1973 , P- 1 )
2.2 . The products concerned (Article 2 of the agreements ) are : 1                    :
                                                                       1      '  s ..,
                                                                                ./.
 ---pagebreak--- 2.2.1 . products falling under Chapters 25 - 99 of the Common Customs
        Tariff with the exception of the following products ( which
        appear in the annexes to the agreements )
                         A     S     CH     IS     P      Ν     SF
         ex 55.01                    Χ
            35.02        Χ     Χ     Χ      Χ      Χ      Χ      χ
            35.05        Χ
         ex 38.12        Χ
         ex 38.19        Χ
         ex 38.19        Χ
         ex 39-06        Χ
            ^ 5.01       Χ     χ      χ     χ      χ      χ      χ
            54.01        χ     χ      χ     χ      χ      χ      χ
            57.01        χ     χ      χ     χ      χ      χ  . - χ
2.2.2 . products in Protocol No . 2 referred to in Article 9 of the
        agreements ( processed agricultural products ) subject to the
        particular rules provided for in the protocols .
The originating products referred to in 2.2 . shall , from I January
197^, in principle only be subject to a customs duty reduced to 20 %
of the basic duty (Articles 3 and 5 of the agreements ). This principle
is subject to the following exceptions ( particular rules of Protocol
No 1 referred to in Article 8 of the agreements ):
2.3.1 . products . in Chapters 48 and 49 of the CCT ( with the exception
        of 48.09 ); the programme of tariff reduction extends until
        1984 .
2.3.2 * products in Articles 2 and 3 of Protocol No 1 ; the programme
        of tariff reductions continues until 1980 , and the products
        are set out in the following table :
 ---pagebreak---   28.56   r
  45.02
 45.03
 45.04
 55.05
 55.09
 56.01
 56.02
 56.07
 57.10
 59.04
 60.04
 60.05
 61.01 , 61.02
 61.05 , 61.04
 ex 73-02
 ex 73.15
 73.18    ,
 76.01
 76.02 ,. 76.03
 77.01
'78.01
 79.01
 81.01
 81.02
 81.03
 81.0b
 ---pagebreak---                                           - 5 -
2.b . Finally , under ths terms of Regulation (EEC ) No 2051/7^ (OJ No L 212
      of 2.8.197^ p. 33 ) and Regulation (EEC ) Ho . 3I&k/?k ( OJ No L 3^ of
      23.12.197*0 products originating from the Faroe Islands and falling
      within Chapters 25-99 of the Common Customs Tariff , have to be taken
      into account .
      However there are excluded from the field cf application of these
      Regulations :
            - jjroducts referred to in Council Regulation ( EEC ) No 2682/72
               of 12 December 1972 laying down general rules for granting
               export refunds on certain agricultural products exported in
               the form of goods not covered by Annex II to the Treaty , and
               the criteria for fixing the amount of such refunds ,
            - products referred to in Council Regulation No I70/67/EEC of
               27 June 1967 on the Common System of trade for ovalbumin and
               lactaLbumin , repealing Regulation No 48 /67/EEC .
3 . Conclusions                         '                                 .
3.1 . Given the administrative simplification sought for , it seems to the
      Commission that in principle , the goods to be subject to this simpli­
      fication ( point 2 ) should be those which fall within Chapters 25 - 99
      of the Common Customs Tariff ( point 2.2.1 .), but not processed agri­
      cultural products ( point 2.2.2 .) on which , since theamount varies ,
      there is a variable element to be collected . These products must be
      compared to goods in Chapters 17 - 2.k of the Common Customs Tariff to
      which the projected rules do not apply .
3.2 . Due to the special timetable for their tariff reduction goods falling ,
      within Chapters *f8 and ^9 of the CCT ( point 2.3.1 .) should be excepted
      from this principle .   Another exception should be made for the goods
      referred to in point 2.3«2 . for the same reason .
 ---pagebreak---                                      -r 6 -
3*3 . In relation to Ireland a special time-table for tariff reductions - is
      foreseen for goods referred to in Article 3 of Protocol- No . 1 of the
      agreement concluded between the European Eoonomic Community arid
      Portugal . For this reason those goods should be excluded from the
                                                          »
      simplification process sought for this Member State . •
3.b . For the sake of completeness it should be pointed out that headings
      ^5»0I and 35*02 of the CCT have not been taken into account , since
      they are excluded from all the agreements , Similarly headings 5^.01
      and 57.01 are excluded because their rate is zero .
3-5 . Finally it seems equally necessary to the Commission to propose that
      this simplification should apply to goods originating from the Faroe
      Islands ( paint 2.4 )
3.6 . The proposed Directive is intentionally limited to essentials to allow
      a solution to reached at the beginning of 1976 . This does not exclude
      subsequent simplifications .
 ---pagebreak---                                   Proposal for a
   :        ,,■■■:•   ■ ; - r-- COUNCIL  DIRECTIVE 5 ' - -
on the application df' the 'Council Directive of           March 1969 ,
             concerning inward processing authorisations
                    for certain products originating from
                       EFTA states and the Faroe Islands .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community ;
Having regard to the Council Directive of b March 1969 ( 1 ) on the
harmonisation of provisions laid down by law , regulation or adminis­
trative action in respect of inward processing , as amended by the
Act of Accession ( 2 ), 'and in particular Article 29 thereof ;
Having regard to the proposal from the Commission ;
Whereas , within the terms of Article 5 ( 1 ) of the Directive 69/73/EEC
the granting of inward processing presupposes that it will contribute
towards providing the most favourable conditions for the export of
goods resulting from such processing without conflicting with essen­
tial interests of producers within the Community ;
Whereas processors in' Denmark and the United Kingdom can obtain pro­
ducts originating from EFTA states free of duty without the necessity
of resorting to the inward processing procedure }
Whereas on the other hand processors established within the Community
as originally established , and in Ireland , must resort to the inward
processing procedure in order to obtain these products free of duty ;
whereas resorting to this procedure' invo'lves the examination of the
 ( 1 ) 69/73/EEC , O.J. No . L 58 of 8.3,1969 * P - 1 .
 ( 2 ) O.J. No . L 73 of 26.3.1972 . p. 1^ .
 ---pagebreak--- conditions to referred to ' in Article- 5 fi ) } VWhereas that examination
must relate to the Community as currently established ; *•                       »      • i
Whereas , according to the . time-table of tariff reductions , products
originating from EFTA states , on . importation into the Community, as a
general rule benefit from a reduction to 20 % of the basic customs
duties as from 1 January 19?6 > whereas these duties are to be abolished
from 1 July 197? for most products : whereas this tariff reduction re­
                                               ♦ • T
suits from agreements concluded between the European Economic Community
and the EFTA states as listed below ;
        Austria           : Regulation (EEC ) No .   2836/72   (1)
        Sweden            : Regulation (EEC ) No .   2838/72   (2)
        Switzerland         Regulation (EEC ) No.    2840/72'  (3)                   1
        Iceland       - - : Regulation (EEC ) No .   2842/72   (4)
        Portugal > : Regulation (EEC) No *           2844/72   ( 5)         • '
        Norway :          : Regulation (EEC)' No .   I69I/-73  ( £ )■ '      • 1 ' ' • ■' :
        Finland           : Regulation (EEC ) No ,   3177/73   (7)
Whereas as a result of this reduction in basic duties resorting to the
inward processing procedure cannot conflict with the essential interests
of producers within the Community ; whereas it appears opportune to grant
to processors in the Community as originally constituted , ant?, in Ireland ,
treatment equivalent to that granted to processors in the United Kingdom
and Denmark ; whereas to that end it is necessary to consider the condi­
tions of Article 5 ( 1) of the Directive 6 9/73/BEC as being fulfilled ;
                                 •     •    ■        ;   ■    • ;■      •••• ■     : ■ V.
( 1 ) OJ No. L 300 of 31. 12 . 1972 , p. 1 .
( 2 ) OJ No . L 300 of 3I.I2..I972 , p. 96 .
             *  •' •'              >
( 3 ) OJ No . L 300 of 31.12 . 1972 , p. 188 .
( 4 ) OJ. No . L ^01 òi 3i.i2.i972 , p. I» .>
(5 ) OJ No . L 301 of 31. 12 . 1972 , p. I.
( 6 ) OJ No . L 171 of 27.06 . I973 » p. I.
(?) OJ No. L 328 of 28.11.19*73 , P.          °
 ---pagebreak--- Whereas the goods concerned are those falling within Chapters 25 - 99
of the Common Customs Tariff in so far as the rate of duty on importation
is reduced to 20 % of the basic rate of duty set out in the agreements
mentioned above *
Whereas since the rates of basic duty Are almost always identical to the
rate of duty in the Common Customs Tariff , these rates can be retained
for reasons of administrative simplification ;               '    :
Whereas it is necessary to exclude from the projected rules those proces­
sed agricultural products on which there is a variable element based on
Article 5 ( 1 ) ( b ) of Council Regulation No . 1059/69 ( I) of 28 May 1969
determining the system of trade applicable to eertain goods processed
from agricultural products , as last amended by Regulation (EEC)~No . .
1589/75 ( 2); whereas in effect these products are comparable to the >
products in Chapters 17-2** of the Common Customs Tariff to which these rules
do not apply ;
Whereas the envisaged rules must also be applied to products originating
from the Faroe Islands , which by virtue of Regulation (EEC ) No . 2051/7^ ( 3 )
of I August 197^ benefit from a- -procedure analogous to that from which
products originating in the EFTA states benefit , on importation into the
Community
HAS ADOPTED THIS DIRECTIVE :                      '
                                    >  • •- *
                                    Article 1
1 . When goods falling within Chapters 25 - 99 of the Common Customs Tariff
      originating in Austria , Sweden , Switzerland , Iceland , Portugal , Norway
      Finland or the Faroe Islands are introduced into the Community , there
                                                                          ./.
                      ■ ; -  ' ' :   ,        . '                             t
( 1 ) OJ No . L Ikl of 12.06.1969 , p. 1 .
 ( 2 ) OJ No . L.I63 of 26.06.1975 , p . 9 .
 ( 3 ) OJ No . L 212 of 02.08.197% p. 33 .
 ---pagebreak---                                             m k m                                                   j
                                                                                                     i
     '   to be processed under inward processing arrangements , ■ these operations ;
    shall be considered , under the terms of Article 5 ( 1 ) of the Council Direc<
    tive of 4 March 1969 on the harmonisation of provisions laid down by law , !
    regulation or administrative action in respect of inward processing , as ^ ^
    contributing towards providing the most favourable conditions for the ex-                            «
    port of goods resulting from such processing without conflicting with                           " !
    essential interests of producers within the Community , insofar as the
    rate of import duty is reduced to 20 % of the basic rate of duty in the
    Common Customs Tariff .
    The origin of the goods shall be determined by Protocol No . 3 annexed to
    each agreement concluded between the European Economic ; Community and^ the
    states mentioned in this paragraph, or by Regulation- (EEC ). No 3184/7^ of
     the a Commission of. 6 December 197^. CI) concerning the definition of the
    concept of originating products and methods ;.of administrative cooperation
     for the application ©f te customs procedure applicable .to' certain products
     originating in and coming from the Faroe Islands .                        •*. ..
2 , The provisions of paragraph 1 shall not apply to goods ®n which a variable
 ■( element is charged on(. the. basis of Article- 5 : <(■ 1 } (b ) of Regulation {EEC )
    No.. 1059/69 .        .♦        ,, .       ,
                                          Article 2             '           /.                    .
1 . The Member States shall bring into force the measures necessary to comply j
     with this Directive not later than                 and shall inform the Commission
     immediately .                -                                                   _ '              1
2 . The Commission shall communicate the information to the other Member Statei
                                        - Article 3 ;.<■
     This Directive shall be applicable until 30 Juno 1977 •                f m -       t * ■   ' "
                                                                                                       1
                                                              m                               '
( I) OJ No . L 3kk of 23.12.1974 , P. 1                   ...                       "      >/ •
 ---pagebreak---                                      5
                                 Article 4
i This Directive is addressed to the Member States .
S
  Done at Brussels ,                            For the Council
                                                The President