CELEX: 51987PC0508
Language: en
Date: 1987-10-16 00:00:00
Title: Recommendation for a COUNCIL DECISION concerning the conclusion of an Additional Protocol to the Cooperation Agreement between the European Economic Community and the Socialist Federal Republic of Yugoslavia establishing new trade arrangements (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 508
Vol. 1987/0257
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
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Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(87 ) 508 final
                                                 Brussels , 16 October 1987
                            Recommendation for a
                              COUNCIL DECISION
concerning the conclusion of an Additional Protocol to the Cooperation
  Agreement between the European Economic Community and the Socialist
          Federal Republic of Yugoslavia establishing new trade
                                arrangements
                       (presented by the Commission )
C0M(87 ) 508 final
 ---pagebreak---                                                                & oh- Cà F /V
          Communication from the Commission to the Council
   on the results of the negotiations concerning the conclusion
       of an Additional Protocol to the Cooperation Agreement
     between the European Economic Community and the Socialist
Federal Republic of Yugoslavia establishing new trade arrangements
 ---pagebreak---                                                                        I
                                                                6- oh-
          Communication from the Commission to the Council
   on the results of the negotiations concerning the conclusion
       of an Additional Protocol to the Cooperation Agreement
     between the European Economic Community and the Socialist
Federal Republic of Yugoslavia establishing new trade arrangements
 ---pagebreak---                                                                                      ь
                              EXPLANATORY MEMORANDUM
1.        On 25 November 1985 the Counci l adopted directives authorizing the Commission
to enter into negotiations with Yugoslavia on the conclusion of a protocol
amending the trade arrangements provided for in the Cooperation Agreement
signed in Belgrade on 2 April 1980 .
          The first round of negotiations based on these directives was held
on 10 February 1986 but no agreement was reached because of the scope of the
Yugoslav requests .
2.        On 21 October 1986 the Council adopted further negotiating directives
supplementing those of 25 November 1985 .
          A second round of negotiations was held on 2 December 1986 . Although
the Community 's offer had been improved substantially both in the industrial
sector ( appreciable increases in the ceilings for certain products ) and in the
agricultural sector ( greater concessions for a wider range of products ) the
Yugoslav delegation felt that it was inadequate .
          In particular Yugoslavia wanted :
(i )      a better offer for the tariff ceilings on certain industrial products ,
especially fourteen products which make up a substantial part of their exports
to the Community ;
( ii )    improved access for certain agricultural products in particular babybeef ,
                                                             «
fruit , vegetables and tobacco ).
3.        A third meeting held from 8 to 10 July this year brought the positions of
the two sides closer . The Community délégation agreed to certain increases
( in the region of 5 - 10 % ) in tariff ceilings on industrial products of major
importance to Yugoslavia , while the Yugoslav delegation dropped its demands for
further agricultural concessions . Consequently on 10 July 1987, the heads of the
two delegations initialled the draft protocol establishing new trade arrangements .
 ---pagebreak---                                         - 2 -
4.         The Commission considers that the draft protocol , in accordance with
the Council 's negotiating directives , marks a new phase in the consolidations
and strengthening of relations between the Community and Yugoslavia .    This
phase will be particularly important for Yugoslavia , which is going through
a difficult period and also for relations between the Community and other
European countries .
5.         The Commission therefore calls on the Council to adopt this protocol
and to implement the necessary procedures for its signature and conclusion .
           It therefore presents :
( i ) a Recommendation for a Council Decision concerning thè conclusion of thè
Additional Protocol to thè Cooperation Agreement between thè European Economie
Community and thè Socialist Federai Republic of Yugoslavia ;
( ii ) the initialled draft Protocol and its Annexes ;
( iii ) the Final Act and the déclarations and exchanges of letters annexed to it .
 ---pagebreak---                                 RECOMMENDATION
                            FOR A COUNCIL DECISION
         concerning the conclusion of an Additional Protocol
 to the Cooperation Agreement between the European Economic Community
    and the Socialist Federal Republic of Yugoslavia establishing
                            new trade arrangements
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 Recommendation from the Commission ,
Whereas the Additional Protocol to the Cooperation Agreement between the
European Economie Community and the Socialist Fédéral Republic of Yugoslavia
signed in Belgrade on 2 April 1980        should be approved ,
HAS ADOPTED THIS DECISION :
                                     Article 1
       The Additional Protocol to the Cooperation Agreement between the
European Economic Community and the Socialist Federal Republic of Yugoslavia
establishing new trade arrangements , the Annexes thereto and the Final Act ,
which are an integral part thereof , are hereby approved on behalf of the
Community .
       The texts of the Protocol , the annexes and the Final Act are attached
                   2
to this Decision .
 1  OJ L 41 , H. 2 . 1983 , p.1
 2  The date of entry into force of the Protocol will be published in the
    Official Journal of the European Communities , by the General Secrétariat
    of the Council .
 ---pagebreak---                                                                                k
                                     - 2 -
                                  Article 2
       The President of the Council shall   give the notification provided for
in Article 8 of the Protocol . **
                                  Article 3
       This Decision shall enter into force on the day following that of
its publication in the Official Journal of the European Communities .
                                                    For the Council ,
Done at Brussels ,
                                                    The President ,
  The date of entry into force of the Protocol will be published in the
  Official Journal of the European Communities by the General Secrétariat
  of the Council .
 ---pagebreak--- Additional Protocol to the Cooperation Agreement between the European Economic
Community and the Socialist Federal Republic of Yugoslavia establishing new
trade arrangements
THE EUROPEAN ECONOMIC COMMUNITY
of the one part , and
THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA
of the other part ,
Having regard to the Cooperation Agreement between the European Economic
Community and the Socialist Federal Republic of Yugoslavia , signed at Belgrade
on 2 April 1980, hereinafter referred to as the " Agreement ",
Considering that the Agreement provided that the first stage of the
progressive removal of barriers affecting the bulk of trade between the
Contracting Parties should last five years and that the first stage
accordingly ended on 30 June 1985 ;
Considering that the trade arrangements to be applied subsequently should be
determined in accordance with Article 58 of the Agreement ;
Considering that the Community and the Socialist Federal Republic of
Yugoslavia wish to strengthen their relations still further in order to take
account of the new dimension created by the accession to the European
Communities of Spain and Portugal on 1 January 1986;
Considering that in the spirit of the Preamble to the Agreement and Article 14
thereof trade between the Socialist Federal Republic of Yugoslavia and the
Community should be enabled to develop and that certain provisions therefore
need to be laid down ,
Hâve accordingly decided to conclude a Protocol adapting certain provisions of
the Agreement , and to this end hâve designated as their Plenipotentiaries :
The Council of the European Communities ,
The Federal Executive Council    of   the  Assembly of   the   Socialist Federal
Republic of Yugoslavia ,
Who, having exchanged their Full Powers ,    found in good and due form,     have
agreed as follows :
 ---pagebreak---                                                                                   «
                                       - 2 -
                                     Artide 1
1 . Annexes A, 6 and C to this Protocol shall replace Annexes I , III and IV
    respectively    to  Protocol 1  to the   Agreement .  Without prejudice to
    Article 1(4) of Protocol 1 to the Agreement , the amounts indicated in the
    said Annexes shall be increased annually by 5X from the year following the
    entry into force of this Protocol .
                                     Article 2
1 . Customs duties applicable under the Agreement to imports into the Community
    of products listed in Annex D to this Protocol originating in Yugoslavia
    shall be dismantled over the same periods and at the same rates as provided
    in the Act of Accession of Spain and Portugal in respect of imports into
    the Community as constituted on 31 December 1985 of the same products from
    Spain and Portugal . This provision shall be applied in accordance with the
    rules hereinafter set out in this Article .
    For the purposes of such dismantling, where the level of customs duties in
    force for imports from Spain into the Community as constituted on
    31 December 1985 differs from that for imports from Portugal , products
    originating in Yugoslavia shall be subject to the higher of the two rates .
2 . Where the customs duty on a product listed in Annex D is lower for
    Yugoslavia than for Spain, Portugal or both , thè process of dismantling
    shall commence once thè duty on thè product from Spain and Portugal has
    fallen below that applying to imports originating in Yugoslavia .
3 . Customs duties on products originating in Yugoslavia in respect of which
    annual Community tariff quotas are indicated in Annex D shall be dismantled
    within the limits of such quotas .
    Once the volume of imports of these products exceeds the quotas ,         the
    Community shall apply the customs duties prevailing under the Agreement .
4 . For the purposes of dismantling customs duties on certain products listed
    in Annex D , originating in Yugoslavia , an annual reference quantity,
    indicated in the said Annex , is hereby established .
    Should the volume of imports of one of these products exceed the reference
    quantity, the Community , having regard to an annual review of trade flows
    which it shall carry out , may make the product in question subject to a
    Community tariff quota as provided for in paragraph 3, the volume of which
    shall be equal to the reference quantity .
5 . For products listed in Annex D other than those mentioned in paragraphs 3
    and 4, the Community may establish a reference quantity as provided for in
    paragraph 4 if it discovers , in the light of the annual review of trade
    flows which it shall carry out , that the volume of imports threatens to
    cause difficulties on the Community market .
6 . In the case of tobáceo of the 'Prilep' type falling within subheading
    24.01 B of the Common Customs Tariff , originating in and coming from
    Yugoslavia, paragraphs 1 , 2 and 3 shall apply in accordance with the
    special provisions governing tariff reductions set out in Article 23(2 ) and
     ( 3) of the Agreement .
 ---pagebreak---                                       - 2a -
7 . In the case of "Slj ivovica" plum spirit falling within subheading
    22.09 C IV ex a ) of the Common Customs Tariff , paragraphs 1 , 2 and 3 shall
    apply to products originating in Yugoslavia accompanied by a certificate of
    authenticity to be defined by the competent authorities .
 ---pagebreak---                                             - 3 -
8 . In the       case of   sweet clear-fleshed    cherries preserved   in alcohol   and
       intended for the manufacture of chocolate products ,             falling within
       subheading 20.06 B I e ) 2 ex bb ) of the Common Customs Tariff , originating
       in Yugoslavia , paragraphs 1 , 2 and 3 shall apply in accordance with
       conditions to be laid down by exchange of letters between the Contracting
       Parties .
                                         Article 3
1 . Customs duties on imports into the Community of morello cherries falling
       within     subheadings   08.07 C ex I or ex II ,    08.10 ex D ,     08.11 ex E ,
       20.03 ex A or ex B or       20.06 B ex II of the        Common Customs Tariff,
       originating in Yugoslavia , shall be dismantled in accordance with the rules
       laid down in Article 2(1 ) and ( 2 ), subject to quantitative conditions to be
       laid down by exchange of letters between the Contracting Parties .
       The dismantling of customs duties on morello cherries falling within
       subheadings 08.10 ex D , 20.03 ex A or ex B or 20.06 B ex II of the Common
       Customs Tariff shall further be subject to compliance with a minimum price
       for imports into the Community to be laid down by exchange of letters
       between the Contracting Parties .
                                         Article 4
Article 22 of the Agreement shall be replaced by the following :
" 1 . Customs duties on imports into the Community of wine of fresh grapes
        falling within subheadings 22.05 C ex I or ex II of the Common Customs
        Tariff presented in containers holding two litres or less , originating in
        Yugoslavia , shall be reduced by 30% within the limits of an annual
        Community tariff quota of 12 000 hectolitres . The Community shall apply
        the customs duties resulting from the provisions of paragraph 4 to imports
        in excess of the quota .
    2 . The tariff reduction provided for in paragraph 1 shall apply to wines as
        agreed by exchange of letters between the respective competent authorities
        of the Contracting Parties following verification of the equivalence of
        Yugoslav and Community legislation with regard to wine entitled to a
        designation of origin .
    3 . Paragraphs 1 and 2 shall remain in force until , under the dismantling of
        customs duties referred to in paragraph 4, the levels of customs duties
        provided for in respect of wines referred to in paragraph 1 have been
        reduced by 30% as provided for in paragraph 1 .
    4 . Customs duties on imports into the Community of wine of fresh grapes
        falling within subheadings 22.05 C I or C II of the Common Customs Tariff ,
  '     originating in Yugoslavia ,    shall be dismantled in accordance with the
        rules laid down in Article 2(1 ) and ( 2 ) of this Protocol .    This provision
        shall apply within the limits of an annual Community tariff quota of
  1     545 000 hl .    The Community shall apply the duties of the Common Customs
 i
  !     Tariff to imports in excess of the quota .
    5 . Paragraphs 1 , 3 and 4 shall apply on condition that the prices on import
        into the Community of wine originating in Yugoslavia plus the customs
        duties actually levied are not less at any given time than the Community
        reference prices or the prices resulting from the application of the
        spécifie provisions of paragraphs 6 and 7 .
 ---pagebreak---                                 - Sa­
in the case of wine of fresh grapes falling within subheaiiings 22.05 CI
or C TI oî the Comaon Custoas Tariff presented in containers of 2 titres
 ---pagebreak---                                        - 4 -
      or less , originating in Yugoslavia , the fixed amount added to the price
      referred to in Article 17 of Regulation ( EEC ) No 337 / 79 on the common
      organization of the market in wine shall be phased out at the rate
      indicated below within the limits of an annual volume of 29 000 hi :
      On the entry into force of this Protocol
                        the fixed amount shall be reduced to   75 X;
      on 1 January 1988 the fixed amount shall be reduced to   62 . 5%;
      on 1 January 1989 the fixed amount shall be reduced to   50 X ;
      on 1 January 1990 the fixed amount shall be reduced to   37 . 5X ;
      on 1 January 1991 the fixed amount shall be reduced to   25 X;
      on 1 January 1992 the fixed amount shall be reduced to   12 . 5X;
      on 1 January 1993 the fixed amount shall be reduced to    0 X.
 7 . From the entry into force of this Protocol , the Community may fix a
      special frontier price for wine of fresh grapes falling within subheadings
      22.05 C I or C II of the Common Custom Tariff presented in containers of
      more than 2 litres if it finds on the basis of information available at
      the end of the marketing year current at the entry into force of this
      Protocol that there has been a fall in the level of exports of these wines
      to the Community compared to the previous marketing year . The said
      previous marketing year shall serve as a reference year . Exports in
      subsequent marketing years shall be compared to exports in the reference
      year .
      Such special frontier price shall be fixed each year before the marketing
      year and shall apply within the limit of an annual volume of 516 000 hi .
      The situation shall be reviewed before 1 January 1990 ."
                                     Article 5
In the case of "baby-beef " products as defined in Annex E to this Protocol ,
the following Article shall replace Article 24 of the Agreement and Article 1
of the Additional Protocol consequent on the accession to the Community of the
Hellenic Republic .
" 1 . Within the limits of a first annual Community quota of 25 000 tonnes , the
      amount levied on imports into the Community shall be equal to 20X of the
      basic levy . This provision shall apply on condition that the free-at -
      frontier offer price, plus the customs duty and the reduced levy, is not
      less than the Community intervention price for category A U 3 plus 5X .
  2 . Within the limits of a second annual Community quota of 25 400 tonnes , to
      be used when the quota referred to in paragraph 1 has been used up, the
      amount levied on imports into the Community shall be equal to 50X of the
      basic levy . This provision shall apply on condition that the free-at-
      frontier offer price, plus the customs duty and the reduced levy, is not
      less than that resulting from application of the normal levy .
 ---pagebreak---                                        - 5 -
 3w Yugoslavia shall supoly the competent autnorities of the Community with
     ail relevant information on axport prices , quantities and présentation of
     the products exported ( live animais , carcases , quarters ).
 4 . To help stabilize the internal Community market , Yugoqlavia shall maintain
     adequately phased deliveries and shall take all steps necessary to ensure
     a balanced expansion of its exports to the Community , in particular by
     exercising effective control over each consignment by means of a document
     certifying chat the goods originated in and came from Yugoslavia and
     correspond exactly to the descriptions appearing in Annex E. The text of
     that certificate shall be agreed between the competent authorities of the
     two Parties .
5.   The arrangements for implementing paragraphs 3 and 4 shall be determined
     in the context of the cooperation between the competent authorities of
     Yugoslavia and the Community .
6.   When the Community market price is less than 98% of the guide price ,
     paragraphs 2 and 3 shall apply to a quantity of 4 200 tonnes a month . If
     that quantity has not been fully taken up during a given month , the unused
     remainder may be carried forward only to the following month , up to a
     limit of 3 200 tonnes . However , quantities not exported during the period
     1 January to 31 May may be carried forward to the period 1 June to
     30 September, up to a limit of 6 000 tonnes . Monthly exports during the
     latter period may not exceed 7 400 tonnes ."
 ---pagebreak---                                         - 6 -
                                      Article 6
1 . Articles 2, 3 and 4 of this Protocol shall apply until 31 Oecember 1995 .
    Articles 1 and 5 shall apply until 31 Oecember 1991 .
2 . Subject to paragraph 1 ,    Articles 15 to 20 of the Agreement are hereby
    extended until 31 December 1991 and Articles 21 ,      23 and 25 to 40 until
    31 Oecember 1995 .
3 . The negotiations provided for in Article 58(2 ) of the Agreement shall start
    one year before the dates referred to in paragraphs 1 and 2 for the
    arrangements expiring on those dates .
                                      Article 7
This Protocol , including the Annexes hereto and the declarations and exchanges
of letters included in the Final Act , shall form an integral part of the
Cooperation Agreement between the European Economic Community and the
Socialist Federal Republic of Yugoslavia .
                                      Article 8
1 . This Protocol shall be subject to ratification, acceptance or approval in
    accordance with the Contracting Parties' own procedures and the Parties
    shall notify one another of the completion of the procedures necessary for
    that purpose .
2 . This Protocol shall enter into force on the first day of the month
    following that during which the notifications provided for in paragraph 1
    have been carried out .
                                      Article 9
This Protocol is drawn up in duplicate in the Danish , Dutch , English , French ,
German , Greek , Italian, Portuguese , Spanish and Serbo-Croat languages , each of
these texts being equally authentic .
In   witness   whereof   the undersigned     Plenipotentiaries  have signed   this
Protocol .
Done at Brussels on the
For the Council of the European Communities ,
For the Socialist Fédéral Republic of Yugoslavia ,
 ---pagebreak---                                                  AN\EX A
                                  -oncer .ling certain industrial products referred to in Article 1
     CCT
   ht.dir.f,                                     Dcscnpoon                               Oiiing appl i cable in 1988
                                                                                        (tonnes )
      No
  31.02 (>)     Mirerai or Chemical fertiüzers, nitrogenous:
                R. Uiea cuntaining more than 45 % by weight of nitrogen on the
                    dry anhydrous product                                              3 536
                C. Other                                                              31    035
  31.05 i 1 )   Orner fertihzers ; goods of the présent Chapter in tablets , lozenges
                and similar forrns or in packings of a gross weight not exceeding
                10 kg                                                                 49 315
    39.03       Regenerated cellulose; cellulose nitrate, cellulose acetate and other
                cellulose csters, cellulose etncrs and other Chemical derivatives of
                cellulose, plasndzed or not ( for example, collodions, celluloidi ;
                vulcanized fibre :
                B.   Other :
                       I. Regenerated cellulose                                        1    452
                      II . Cellulose nitrates                                               910
    40.11       Rubber tyres, tyre cases, interchangeable tyre treads, inner tubes
                and tyre flaps, for wheels of all kinds :
                B. Other:
                       ex II . Other :
                                    Other than of the kinds used
                                    on bicycles or cycles with
                                     auxiliary motor or on motor ¬
                                     cycles or motor-scooters;
                                     tyre flaps ( separately
                                    consigned ); tyre cases with
                                    sewn-in inner tubes , for
                                    racing bicycles                                     4 743
     42.03       Articles of apparel and clothing accessories, of leather or of
                 composition leather:
                 A. Articles of apparel
                 B. Gloves, including mittens and mitts:
                       II. Spécial, for sports                                              464
                      III . Other
                 C. Other clothing accessories
     44.15       Plywood, blockboard, laminboard, battenboard and similar
                 laminated wood products (including veneered panels and sheets);
                 inlaid wood and wood marquetry                                       126 637 m “
     44.18       Reconstituted wood , being wood shavings, wood chips, sawdust,
                 wood flour or other ligneous waste agglomerated with natural or
                 artificial resins or other organic binding substances, in sheets,
                 blocks or the like                                                     32 536
(*) Yugoslavit may DOC export to Italy quantifie* exceeding those bound under GATT.
 ---pagebreak---                          - 8 -
     CCT                                                                             Ceiling
 heading                                   Description
     No                                                                              i η Ί 988
  64.01     Footwear with outer sole:, and uppers of rubber or artificial plastic
            material
                                                                                            549
 64.02      Footwear with outer soles of leather or composition leather
            footwear ( other than footwear falling within heading No 64.01 )
            with outer soles of rubber or artificial plastic material :
            A. Footwear with uppers of leather                                              643
            B.   Other                                                                      272
 70.05      Unworked drawn or blown glass (including flashed glass), in
            rectangles                                                                  6 801
 70.14      Illuminating glassware, signalling glassware and optical elements
            of glass, not optically worked nor of optical glass :
            A. Articles for electrical lighting fittings :
                 11. Other ( for example, diffusers , ceiling lights, bowls, cups,
                     lampshades , globes, tulip-shaped pieces )                         2 122
 73.18      Tubes and pipes and blanks therefor, of iron ( other than of ca$t
            iron) or steel, excluding high-pressure hydro-electric conduits            12 947
74.03       Wrought bars , rods , angles , shapes and
            sections , of copper ; copper wire                                          4 010
   .  _ _ _
  74.04     Wrought plates, sheers and strip, of copper                                   I 071
  74.07     Tubes and pipes and blanks therefor, of copper ; hollow bars of
             copper                                                                      2 975
  76.02      Wrought bars, rods , angles , shapes and sections, of aluminium ;
             aluminium wire                                                              1  786
  76.03      Wrought plates, sheets and strip, of aluminium                              3 915
  79.03      Wrought plates, sheets and strip, of zinc, zinc foil ; zinc powders
             and flakes                                                                  2 947
  85.01      Electrical goods of the following descriptions: generators, motors,
             converters ( rotary or static), transformers, rectifiers and rectifying
             apparatus, inductors :
             B. Other machines and apparatus :
                  I. Generator», motors ( whether or not equipped with » peed
                      reducing, changing or step-up gear) and rotary converters          5 550
             C. Parts                                                                    2 321
  85.23      Insulated ( including enamelled or anodized ) electric wire, cable,
             bars, strip and the like { including co-axial cable), whether nr not
             fined with connectors :
             B.   Other                                                                  2 397
  85 . 25    lnsulators of any material                                                     420
 ---pagebreak---                                                                                                       Α'
 сст
                                                                                 CeiLing applicable in
hcad.ng                                 Dcicription
  No                                                                             1988  ( tonnes )
87 14   Other veliicles ( including trailers ), not mechanically propelled , and
        parts thereof:
        B.  T : allers and semi-trailers :
             11 . Other                                                            2 609
94.01   Chairs and other seats (other than those falling within heading
        No 94.02), whether or not convertible into beds, and parts
        thereof:
        B.  Other
            ex II . Other :
                      – Excluding seats spedally designed for motor
                          vehicles                                                 8 094
94.03   Other furniture and parts thereof ;
                                                                                   7 122
        B. Other_
 ---pagebreak---                                                   10 -
                                                 ANNEX        B
                                    concerning certain petroleum products referred to in Article 1
      CCT                                                                                  Cei ling appli cable in
    heading                                         Description
      No                                                                                   1988    ( tonnes )
    27.10         Petroleum oils and oils obtained from bituminous minerais, other
                  than crude ; préparations not elsewhere specified or induded ,
                  contaimng not less than 70 % by weight of petroleum oils or of
                  oils obtained from bituminous minerais, these oils being the basic
                  constituents of the préparations :
                  A. Light oils :
                       111 . For other purposes
                 B.    Medium oils :
                       III. For other purposes
                  C. Heavy oils :
                          I. Gas oils :
                              c) For other purposes
                        II . Fuel oils :
                              c) For other purposes
                       III. Lubricating oils ; other oils :
                              c) To be mixed in accordance with the terms of
                                 Additional Note 7 to Chapter 27 ( a)
                              d) For other purposes
    27.11         Petroleum gases and other gaseous hydrocarbons :                      )■   693 884
                  A. Propane of a purity not less than 99 % ;
                       I. For use as a power or heating fuel
                  B.   Other :
                       I. Commercial propane and commercial butane:
                              c) For other purposes
    27.12         Petroleum jelly :
                  A. Crude :
                       III . For other purposes
                  B.    Other
     27.13        Paraffin wax, micro-crystalline wax, slack wax, ozokerite, lignite
                  wax, peat wax and other mineral waxes, whether or not coloured :
                  B.    Othen
                          I. Crude :
                              c) For other purposes
                         II . Other
     27.14        Petroleum bitumen, petroleum coke and other residues of
                  petroleum oils or of oils obtained from bituminous minerals:
                  C. Other :
                         II . Other
             1
(a) Entry under this subheading is subject to conditions to be determined by the competent authorities.
 ---pagebreak---                   - 11
                                                                                     Λ
                                    ANNEX       c
                        concerning certain primary products referred to in Article 1
 ccr                                                                     Cei ling
heading                             Description                          in 1988
  No
73.02   Ferro-alloys:
        C. Ferro-silicon                                                   6 995
        D. Ferro-silico-manganese                                          1 123
        E. Fcrro-chromium and ferro-silico-chromium :
            I. Ferro-chromium :                                            1 725
                Of which, ferro-chromium containing, by weight, not more
                than 0Ί0 % of carbon and more than 30 % but not more
                than 90 % of chromium (low-carbon ferro-chromium)            861
79.01   Unwrought zinc; zinc waste and scrap:
        A. Unwrought                                                      2 465
 ---pagebreak---                                        - 12 -
                                                                               IP
                                       ANNEX D
         concerning the agricultural products referred to in Article 2
  CCT
heading                          Description
  No
 01.01    Live horses , asses , mules and hinnies :
          A. Horses :            ^
             II . For slaughter
 07.01    Vegetables , fresh or chilled :
          ex H. Onions, shallots and garlic :         g
                 - Garlic , from 1 February to 31 May
             Q. Mushrooms and truffles :
                    II . Chanterelles
                   III . Flap mushrooms
                 ex IV . Other :
                         - excluding truffles
             S. Sweet peppers'3
 07.02    Vegetables (whether or not cooked ), preserved by freezing :
          ex B. Other :.
                 - Peas*
 07.03    Vegetables provisionally preserved in brine , in sulphur water or in
          other preservative solutions , but not specially prepared for
          immediate consumption :
          ex E. Other vegetables :
                 - Mushrooms , excluding cultivated mushrooms
  Entry under this subheading is subject to conditions to be determined by the
2 competent authorities .
3 Within the limits of an   annual Community tariff quota of 300 tonnes .
4 Within the limits of an   annual Community tariff quota of 1 200 tonnes .
  Within the limits of an annual Community tariff quota of 1 300 tonnes .
 ---pagebreak---                                                                              U
                                      - 13 -
  CCT
heading                         Description
  No
 07.04  Dried, dehydrated or evaporated vegetables , whole, cut , sliced,
        broken or in powder , but not further prepared :
           A. Onions
        ex B. Other :
                - Mushrooms , excluding cultivated mushrooms
                - Sweet peppers
 07.05  Dried leguminous vegetables , shelled , whether or not skinned or
        split :
        B. Other :
           ex I. Peas ( including chick peas ) and beans ( Phaseolus spp .):
                   - Beans ( Phaseolus spp .)
 08.08  Berries , fresh :
        ex D. Raspberries , black currants and red currants :
                - Raspberries , from 15 May to 15 June
           F. Other :
                ex II . Other :
                        - Blackberries , from 15 May to 15 June
 08.12  Fruit , dried , other than that falling within heading No 08.01 ,
        08.02, 08.03, 08.04 or 08.05 :
        ex G. Other :
                - Morello cherries
 09.04  Pepper of the genus Piper ; pimento of the genus Capsicum or the
        genus Pimenta :
        B. Crushed or ground
 09.09  Seeds of anise, badian, fennel , coriander , cumin,' caraway and
        juniper
 12.03  Seeds , fruit and spores , of a kind used for sowing
 ---pagebreak---                                            - 14 -
   CCT
heading                              Description
   No
  20.01  | Vegetables and fruit , prepared or preserved by vinegar or acetic
         j acid, with or without sugar, whether or not containing salt , spices
           or mustard :
           ex B. -Cucumbers
                      Cucumbersaifd
                                 1 gherkins :
           ex C. Other :
                   - Sweet peppers
  20.02    Vegetables prepared or preserved otherwise than by vinegar or acetic
           acidE.:             ^
                   Sauerkraut
           ex H. Other, including mixtures :
                   - The product known as " AJVAR ", obtained from sweet peppers ,
                      to which spices , extracts of spices or distillates of
                      natural spices , and sometimes aubergines and tomatoes , are
                      added, containing at least 9% of dry extracts , used mainly
                      as a salad
  20.06    Fruit otherwise prepared or preserved, whether or not containing
           added sugar or spirit :
           B. Other :
               I. Containing added spirit :
                   e ) Other fruits :
                       2 . Other :
                           ex bb ) Other :
                                    - Sweet clear-fleshed cherries , of a diameter not
                                      exceeding 18.9 millimetres, stoned, intensjejj
                                      for the manufacture of chocolate products
2  Up to an annual reference quantity of 3 000 tonnes .
3  Up to an annual reference quantity of 150 tonnes .
4  Up to an annual Community tariff quota of 3 000 tonnes .
  End use will be monitored in accordance with the                 relevant  Community
  provisions .
 ---pagebreak---                                         - 15 -
  CCT
heading                           Description
  No
 22.09    Spirits ( other than those of heading No 22.08 ); liqueurs and other
          spirituous beverages ; compound alcoholic preparations ( known as
          " concentrated extracts ") for the manufacture of beverages :
          C. Spirituous beverages :
              IV . Vodka with an alcoholic strength of 45.4% voi or less and
                   plum , pear or cherry spirit ( excluding liqueurs ), in
                   containers holding :
                   ex a ) Two litres or less :         ^
                          - " Sljivovica " plum spirit
 24.01    Unmanufactured tobacco ; tobacco refuse :
          ex B. Other :                    ^
                  - of the "Pri lep" type
2 Within the limits of an annual Community tariff quota of 5 420 hectolitres
  Within the limits of an annual Community tariff quota of 1 500 tonnes .
 ---pagebreak---                                                   16 -
                                                      ANNEX E
                                concerning the products referred to in Article 5
      CCT
     heading                                                  Description
       No
    01.02          Live animals of the bovine species :
                   A. Domestic species :
                       II . Other :
                              a) Not yet having any permanent teeth, of a weight of not less than 350 kg
                                   but not more than ÇO0 kg, in the case of male animals, or of not less than
                                   320 kg but not more than 4^0 kg in the case of female animals (a)
    02.01         Meat and edible offals of the animals falling within heading No 01.01 , 01.02, 01.03
                  or 01.04 , fresh , chilled or frozen :
                  A.   Meat :
                        11 . Of bovine animals :
                             ( a ) Fresh or chilled :
                            €X 1 . Carcases , half-carcases or ‘compensated' quarters :
                                        – Carcases of a weight of not less than 180 kg but not more than
                                            300 kg and half-carcases or ‘compensated' quarters, of a weight
                                             of not less than 90 kg but not more than 1515 kg, with a low
                                             degree of ossification of the cartilages ( more especially those of
                                             the symphysis pubis and the vertebral apophyses ), the meat of
                                             which is of a light pink colour and the fat of which , of
                                             extremely fine structure, is white to light yellow in colour (a)
                            eX 2. Separated or unseparated forequarters :
                                       –     Separated forequarters of a weight of not less than 45 kg but
                                             not more than 75" kg, with a low degree of ossification of the
                                             cartilages ( more especially those of the vertebral apophyses ), the
                                             meat of which is of a light pink colour and the fat of which, of
                                             extremely fine structure, is white to light yellow in colour ( a)
                            ex 3 . Separated or unseparated hindquarters :
                                       – Separated hindquarters of a weight not less than 45 kg but not
                                             more than IS kg ( not less than 38 kg but not more than 68 kg
                                             in the case of ‘Pistola' cuts), with a low degree of ossification of
                                             the cartilages ( more especially those of the vertebral apophyses),
                                             the meat of which is of a light pink colour and the fat of which ,
                                             of extremely fine structure, is white to light yellow in colour ( a )
(a) Entry under this subheading is subject to conditions to be determined by the competent authorities.
 ---pagebreak---                                     FINAL ACT
The plenipotentiaries of the Council of the European Communities ,
of the one part , and of
the Federal Executive Council of       the Assembly of the Socialist    Federal
Republic of Yugoslavia ,
of the other part ,
meeting for the purpose of signing the Additional Protocol to the Cooperation
Agreement between the European Economie Community and the Socialist Federal
Republic of Yugoslavia ,
hâve , on signing this Agreement ,
adopted or taken note of the following declarations :
1 . Joint déclaration by the Contracting Parties on Articles 1 , 2, 3, 4 and 5
    of the Protocol
2 . Déclaration by the Community on Article 5 of the Protocol
3 . Déclaration by Yugoslavia on Article 5 of the Protocol
and taken note of the following :
- exchange of letters on Article 2 (?) of the Protocol ,
 ---pagebreak---                                                                                 iV
                                     - 2 -
- exchange of Letters on Article 3 of the Protocol
- exchange of letters on the application of certain agricultural provisions of
  the Additional Protocol establishing new trade arrangements .
The déclarations and exchanges of letters listed above are annexed to this
Final Act .
The Plenipotentiaries have agreed that the declarations and exchanges of
letters shall be subject , in the same manner as the Cooperation Agreement , to
any procedures that may be necessary to ensure their validity .
 ---pagebreak---                                                                                 й
                                       - 3 -
                 JOINT DECLARATION BY THE CONTRACTING PARTIES
                 ON ARTICLES 1 / 2 , Z, 4 AND 5 OF THE PROTOCOL
The Contracting Parties agree that / should the date of entry into force of the
Protocol not coincide with the beginning of the calendar or marketing year as
the case may be, the ceilings referred to in Article 1 and the quantitative
limits referred to in Articles 2, Z, 4 and 5 of the Protocol will be applied
pro rata .
The Contracting Parties further agree that imports into the Community of
products originating in Yugoslavia for which ceilings or quantitative limits
have been laid down in this Protocol shall be calculated as from 1 January
each year .
 ---pagebreak---                                      - 4 -
                         DECLARATION BY THE COMMUNITY
                         ON ARTICLE 5 OF THE PROTOCOL
The Community declares that it is prepared to hold consultations with
Yugoslavia during the period of application of this Protocol with a view to
improving the arrangements in the beef and veal sector in the light of
Community market trends and taking into account its relations with Yugoslavia .
 ---pagebreak---                                                                                 ùv
                                      - 5 -
                         CECI DATION BY YUGOSLAVIA ON
                           ARTICLE i OF THE PROTOCO-
YjgosLavia undertakss to maint a in regularly phased deliveries of baby-beef te
me Commun ity in order to avoid disrupting the Community markets .
 ---pagebreak---    EXCHANGE OF LETTERS ON
ARTICLE 2(&) OF THE PROTOCOL
 ---pagebreak---       ( OMISSION
         OF THE
ÊUROPEAN COMMUNITIES                                       Brussels, 10 July 1987
Directorate-General for
External Relations
Sir ,
Article 2 of the Additional Protocol establishing new trade arrangements
provides for the dismantling subject to certain conditions of customs duties
on sweet clear-fleshed cherries preserved in spirit ,             intended for the
manufacture     of     chocolate    products ,     falling     within     subheading
20.06 B I e ) 2 ex bb ).
This dismantling of duties applies to a tariff quota of 3 000 tonnes , minus
imports at reduced duty under an autonomous Community erga omnes tariff
suspension . Accordingly, only after the imports possible under such autonomous
tariff suspension have been made will the Community open a tariff quota for a
quantity equal to the difference between 3 000 tonnes and the volume of
Yugoslav products already imported under the tariff suspension .
The above provisions shall remain in forcé until the duty provided for        in the
Addi ti onal Protocol reaches a level equal to or lower than that             of an
autonomous tariff suspensión which the Community grants erga omnes . The      tariff
quota laid down in the Additional Protocol shall then be used first ,         before
Yugoslavia can benefit from any autonomous Community tariff suspensión .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents .
Please accept , Sir , the assurance of my highest considération .
                                                    p.p . Eberhard Rhein
                                                 Head of the Delegation of
                                              the European Economic Community
Mr Ranko Radulovic
Head of the Yugoslav Delegation
 ---pagebreak---                                                          Brussels , 10 July 1987
Sir ,
I acknowledge receipt of your letter which reads as follows :
" Article 2 of the Additional Protocol establishing new trade arrangements
provides for the dismantling subject to certain conditions of customs duties
on sweet clear-fleshed cherries preserved        in spirit ,   intended for the
manufacture     of     chocolate    products ,    falling    within     subheading
20.06 B I e ) 2 ex bb ).
This dismantling of duties applies to a tariff quota of 3 000 tonnes , minus
imports at reduced duty under an autonomous Community erga omnes tariff
suspension . Accordingly, only after the imports possible under such autonomous
tariff suspension have been made will the Community open a tariff quota for a
quantity equal to the difference between 3 000 tonnes and the volume of
Yugoslav products already imported under the tariff suspension .
The above provisions shall remain in forcé until the duty provided for      in the
Additional Protocol reaches a level equal to or lower than that              of an
autonomous tariff suspensión which the Community grants erga omnes . The    tariff
quota laid down in the Additional Protocol shall then be used first ,       before
Yugoslavia can benefit from any autonomous Community tariff suspensión .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents ."
Please accept , Sir , the assurance of my highest considération .
                                                        Ranko Radulovic
                                                  Head of the Yugoslav Delegation
Mr Eberhard Rhein
Head of the Delegation of the
European Economie Commun ity
 ---pagebreak--- F.XCH /'NGE OF LETTERS ON ARTICLE 3 OF THE PROTOCOL ---pagebreak---       COMMISSION
        OF THE
EUROPEAN COMMUNITIES                                     Brussels , 10 July 1987
Directorate-General for
External Relations
Sir ,
Article 3 of the Additional Protocol establishing new trade arrangements
provides for the elimination of customs duties on Morello cherries falling
within subheadings 08.07 C ex I or ex II , 08.10 ex D , 08.11 Ex E, 20.03 ex A
or ex B or 20.068ex II of the Common Customs Tariff , subject to certain
quantitative and. price conditions .
The Community will eliminate the customs duties applicable to these products
for the quantities herein stipulated in accordance with the rules laid down in
Article 2(1 ) and ( 2 ) of the Additional Protocol establishing new trade
arrangements , on condition that Yugoslavia undertakes to restrict its exports
to the Community to an annual volume of 3 000 tonnes in the case of morello
cherries falling within subheadings 08.07 C ex I or ex II and 19 900 tonnes in
the case of those falling within headings 08.10 ex D, 08.11 ex E , 20.03 ex A
or ex B or 20.06 B ex II . The Community reserves the right to suspend issue of
the import certificates provided for in the case of the products concerned
should these quantities be exceeded .
Yugoslavia further undertakes to comply with a minimum price on import into
the Community for morello cherries falling within subheadings 08.10 ex D,
20.03 ex A or ex B or 20.06 B ex II . The Community will fix the minimum price ,
after consultation with the Yugoslav authorities , on the basis of the minimum
price payable to the producer in the context of Community assistance for
processing , plus the costs of processing within the Community . Account will be
taken where necessary of the minimum price on import into the Community for
the marketing year preceding that for which the price is to be fixed and of
the customs duty actually applied . The Community reserves the right to apply a
countervailing charge should the minimum import price not be complied with .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents .
Please accept , Sir , the assurance of my highest considération .
                                                  p.p . Eberhard Rhein
                                               Head of the Delegation of
                                            the European Economic Community
Mr Ranko Radulovic
Head of the Yugoslav Delegation
 ---pagebreak---                                                         Brussels , 10 July 1987
Sir ,
I acknowledge receipt of your letter which reads as follows :
"Article 3 of the Additional Protocol establishing new trade arrangements
provides for the elimination of customs duties on Morello cherries falling
within subheadings 08.07 C ex I or ex II , 08.10 ex D , 08.11 Ex E, 20.03 ex A
or ex B or 20.06£ex II of the Common Customs Tariff , subject to certain
quantitative and price conditions .
The Community will eliminate the customs duties applicable to these products
for the quantities herein stipulated in accordance with the rules laid down in
Article 2(1 ) and ( 2 ) of the Additional Protocol establishing new trade
arrangements , on condition that Yugoslavia undertakes to restrict its exports
to the Community to an annual volume of 3 000 tonnes in the case of morello
cherries falling within subheadings 08.07 C ex I or ex II and 19 900 tonnes in
the case of those falling within headings 08.10 ex D , 08.11 ex E, 20.03 ex A
or ex B or 20.06 B ex II . The Community reserves the right to suspend issue of
the import certificates provided for in the case of the products concerned
should these quantities be exceeded .
Yugoslavia further undertakes to comply with a minimum price on import into
the Community for morello cherries falling within subheadings 08.10 ex D ,
20.03 ex A or ex B or 20.06 B ex II . The Community will fix the minimum price ,
after consultation with the Yugoslav authorities , on the basis of the minimum
price payable to the producer in the context of Community assistance for
processing , plus the costs of processing within the Community . Account will be
taken where necessary of the minimum price on import into the Community for
the marketing year preceding that for which the price is to be fixed and of
the customs duty actually applied . The Community reserves the right to apply a
countervailing charge should the minimum import price not be complied with .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents ."
                                                            *
Please accept , Sir , the assurance of my highest considération .
                                                       Ranko Radulovic
                                                 Head of the Yugoslav Delegation
Mr Eberhard Rhein
Head of the Delegation of the
European Economie Community
 ---pagebreak---             EXCHANGE OF LETTERS
ON THE APPLICATION OF CERTAIN AGRICULTURAL
   PROVISIONS OF THE ADDITIONAL PROTOCOL
    ESTABLISHING NEW TRADE ARRANGEMENTS
 ---pagebreak---       COMMISSION
        OF THE
EUROPEAN COMMUNITIES                                       Brussels , 10 July 1987
Directorate-General for
External Relations
Sir ,
Ail arrangements for    the application of the agricultural provisions of the
Coopération Agreement    agreed between the Contracting Parties by exchange of
letters or by other     means shall remain in force for the duration of the
arrangements provided    for in the Additional Protocol establishing new trade
arrangements for each   of the products concerned .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents .
Please accept . Sir , the assurance of my highest considération .
                                                    p.p . Eberhard Rhein
                                               Head of the Delegation of
                                            the European Economic Community
Mr Ranko Radulovic
Head of the Yugoslav Delegation
 ---pagebreak---                                                         Brussels , 10 July 1987
Sir ,
I acknowledge receipt of your letter which reads as follows :
" Ail arrangements for the application of the agricultural provisions of the
Coopération Agreement agreed between the Contracting Parties by exchange of
letters or by other means shall remain in force for the duration of the
arrangements provided for in the Additional Protocol establishing new trade
arrangements for each of the products concerned .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents ."
Please accept , Sir , the assurance of my highest considération .
                                                       Ranko Radulovic
                                                 Head of the Yugoslav Delegation
Mr Eberhard Rhein
Head of the Delegation of the
European Economie Community
 ---pagebreak---    EXCHANGE OF LETTERS ON CONCENTRATION
AND PRICES OF EXPORTS OF CERTAIN PRODUCTS
 ---pagebreak---       COMMISSION
        OF THE
EUROPEAN COMMUNITIES                                     Brussels, 10 July 1987
Directorate-General for
External Relations
Sir ,
The concentration of exports of certain Yugoslav products on the markets of
certain Member States and the price levels for certain products threaten to
cause difficulties on certain Community markets .
The Community requests the Yugoslav authorities to endeavour to avoid such
difficulties where it is in their power to do so .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents , so
that these matters may be included on the agenda of the next meeting of the
Cooperation Council .
Please accept , Sir , the assurance of my highest considération .
                                                  p.p . Eberhard Rhein
                                               Head of the Delegation of
                                            the European Economic Community
Mr Ranko Radulovic
Head of the Yugoslav Delegation
 ---pagebreak---                                                        Brussels , 10 July 1987
Sir ,
I acknowledge receipt of your letter which reads as follows :
" The concentration of exports of certain Yugoslav products on the markets of
certain Member States and the price levels for certain products threaten to
cause difficulties on certain Community markets .
The Community requests the Yugoslav authorities to endeavour to avoid such
difficulties where it is in their power to do so .
I should be grateful if you would acknowledge receipt of this letter and
confirm at the same time your delegation 's agreement with its contents , so
that these matters may be included on the agenda of the next meeting of the
Cooperation Council ."
Please accept . Sir, the assurance of my highest considération .
                                                      Ranko Radulovic
                                                Head of the Yugoslav Delegation
Mr Eberhard Rhein
Head of the Delegation of the
European Economie Community