CELEX: 51997PC0603
Language: en
Date: 1997-11-20
Title: Proposal for a Council Regulation (EC) concerning the conclusion of the Agreement in the form of an exchange of letters amending the Agreement in the form of an exchange of letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines, and amending Regulation (EC) No 933/95 opening and providing for the administration of Community tariff quotas for certain wines

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    Brussels, 20.11.1997
                                                    COM(97) 603 final
                                                    97/0322 (ACC)
                                     Proposal for a
                           COUNCIL REGULATION (EC)
   concerning the conclusion of the Agreement in the form of an exchange of letters
 amending the Agreement in the form of an exchange of letters between the European
Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas
for certain wines, and amending Regulation (EC) No 933/95 opening and providing for
            the administration of Community tariff quotas for certain wines
                            (presented by the Commission)
 ---pagebreak---  ---pagebreak---                        EXPLANATORY MEMORANDUM
1. In 1993, the European Community concluded Agreements with Bulgaria,
   Hungary and Romania on the reciprocal establishment of tariff quotas for certain
   wines. These Agreements were to run initially until 31 December 1997 in the case
   of Bulgaria and Romania and until 31 December 1998 in the case of Hungary.
2. Under Articles 76, 102 and 128 of the Act of Accession, Austria, Finland and
   Sweden are to apply the provisions of the preferential Agreements concluded by
   the Community with certain third countries, including Bulgaria, Hungary and
   Romania, from 1 January 1995.
3. The negotiations with Bulgaria aimed at preserving reciprocal preferential
   treatment in 1998 and at continuing to promote the development of trade in wine
   have resulted in the draft exchange of letters to which this proposal relates and
   which provides for the initial Agreement to be extended by one year. The
   negotiations with Romania have not yet reached a conclusion and their outcome
   will be the subject of a later proposal.
4. The purpose of this proposal is to ask the Council to adopt the results of the
   negotiations with Bulgaria as set out in the attached draft exchange of letters and
   take the steps required to implement them, including the amendment of Council
   Regulation (EC) No 933/95.
 ---pagebreak---                                        Proposal for a
                              COUNCIL REGULATION (EC)
                                            of
      concerning the conclusion of an Agreement in the form of an exchange of letters
   amending the Agreement in the form of an exchange of letters between the European
 Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas
  for certain wines, and amending Regulation (EC) No 933/95 opening and providing for
              the administration of Community tariff quotas for certain wines
THE COUNCIL OF THE EUROPEAN UNION.
Having regard to the Treaty establishing the European Community, and in particular
Article 113 in conjunction with the first sentence of Article 228(2) thereof,
Having regard to the proposal from the Commission,
Whereas an Agreement in the form of an exchange of letters on the reciprocal
establishment of tariff quotas for certain wines between the European Community of the
one part and the Republic of Bugaria of the other part1 was signed on 29 November 1993;
Whereas that Agreement expires on 31 December 1997;
Whereas in order to preserve reciprocal preferential treatment and to continue to promote
the development of trade in wine the Agreement should be extended until 31 December
1998;
Whereas Regulation (EC) No 933/95 opening and providing for the administration of
Community tariff quotas for certain wines originating in Bulgaria, Hungary and
Romania2 opened tariff quotas for certain wines in accordance with the Agreement in the
form of an exchange of letters between the European Community and the Republic of
Bulgaria; whereas, following the new Agreement in the form of an exchange of letters,
Regulation (EC) No 933/95 has to be amended accordingly;
Whereas, in order to facilitate the implementation of certain provisions of the Agreement,
the Commission should be authorised to adopt the necessary legislation for
implementation of the Agreement in accordance with the procedure laid down in
1
     GJM«L337, 31.12.1993, p. I.
2
     OJNoL96,2t.4.19*5,p. 1.
 ---pagebreak---                                                                               Vl/4320/97Rev.l
Article 83 of Council Regulation (EEC) No 822/87 of 16 March 1987 on the common
organisation of the market in wine3;
HAS ADOPTED THIS REGULATION:
                                            Article 1
The Agreement in the form of an exchange of letters between the European Community
of the one part and the Republic of Bulgaria of the other part on the reciprocal
establishment of tariff quotas for certain wines is hereby approved on behalf of the
Community.
The text of the Agreement is attached to this Regulation.
                                            Article 2
The President of the Council is hereby authorised to designate the person empowered to
sign the Agreement in order to bind the Community.
                                            Article 3
The Commission is hereby authorised to adopt the necessary acts for implementation of
the Agreement, in accordance with the procedure laid down in Article 83 of Regulation
(EEC) No 822/87.
    OJ No L 84, 27.3.1987, p. 1, as last amended by Regulation (EEC) No 1566/93 (OJ No L 154,
    25.6.1993, p. 39).
                                                  H
 ---pagebreak---                                            Article 4
1.       In Article 1(1) of Regulation (EC) No 933/95, the words "to 31 December 1997'
         are replaced by the words "to 31 December 1998".
2.       In Article 1(1) of Regulation (EC) No 933/95 the table under (a) "Wines
         originating in Bulgaria" is replaced by the following table:
   Order No         CN code            Description         Volume of quota      Rate of duty
                                                                                 applicable
                       0)                   (2)                   (hi)          (% of basic)
09.7001           ex 2204 10    Quality sparkling          1 600 (1.1       -        40
                                wine, in containers        31.12.1998)
                                holding not more than
                                2 litres
09.7003           ex 2204 21    Quality wine,              401 230 (1.1 -            40
                                including quality wine     31.12.1998)
                                with a designation of
                                origin
09.7005           ex 2204 29    Quality wine,              128 000 (1.1 -            40
                                including quality wine     31.12.1998)
                                with a designation of
                                origin, and wine
                                obtained from grapes
                                of the 'Gamza' vine
                                 variety designated and
                                 presented under that
                                 name or under the
                                 synonym 'Kadarka'
                                           Article 5
This Regulation shall enter into force on the day following its publication in the Official
Journal of the European Communities.
It shall apply from 1 January 1998.
This Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at Brussels,
                                                                       For the Council
                                          T
 ---pagebreak---                                              AGREEMENT
  in the form of an exchange of letters amending the Agreement in the form of an exchange
        of letters between the European Community and the Republic of Bulgaria on the
                       reciprocal establishment of tariff quotas for certain wines
                                     A. Letter from the Community
                                                                                   Brussels,   1997
 Sir,
 I have the honour to refer to the Agreement of 29 November 1993 between the European
 Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas
 for certain wines and to the negotiations which have taken place between the European
 Community and the Republic of Bulgaria with a view to adapting the said Agreement
 following the accession of the Republic of Austria, the Republic of Finland and the
 Kingdom of Sweden to the European Union, and to the consultations on extending the
 Agreement beyond 31 December 1997.
 I hereby confirm that the European Community and the Republic of Bulgaria have agreed
 on the following:
 I. Table 1 in the Annex to the said Agreement is replaced by the following table:
      Quantities of wine originating in the Community and qualifying for tariff reductions
Bulgarian         Description        1993       1994       1995           1996       1997    1998
customs
tariff code
                                                          Quantity in hectolitres
ex 2204 21
               Wine of       fresh    42 000     46 200     50 400         54 600     58 800  63 000
               grapes
ex 2204 29
ex 2204 10     Quality sparkling       1000       1 100      1200            1 300     1400    1 500
               wine whether or
               not produced in
               specified regions,
               in       containers
               holding not more
               than two litres
 ---pagebreak---  II. Table 2 in the Annex to the said Agreement is replaced by the following table:
     Quantities of wine originating in Bulgaria and qualifying for tariff reductions
CN code             Description     1993    1994       1995          1996    1997    1998
                                                     Quantity in hectolitres
ex 2204 2!      Quality wine,       214 000 247 000   280 400       313 600  346 800 401 230
                including quality
                wine with a
                designation of
               origin
ex 2204 29     Quality wine,        118 000 118 000   118 000        118 000 118 000 128 000
                including quality
               wine with a
               designation of
               origin, and wine
               obtained from
               grapes of the
               'Gamza' vine
               variety designated
               and presented
               under that name
               or under the
               synonym
               'Kadarka'
ex 2204 10     Quality sparkling      1 000   1 100      1 200         1 300   1400    1 600
               wine,             in
               containers holding
               no more than 2
               litres
     III. Point 3(a) of the said Agreement is replaced by the following:
     "in the case of duties applied by Bulgaria to imports of wine originating in the
     Community:
     -     in 1993: 90% of the basic duty,
     -     in 1994: 80% of the basic duty,
           in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad
           valorem;"
     This exchange of letters shall be approved by the contracting Parties in accordance
     with their respective procedures.
     This Agreement shall enter into force on 1 January 1998 and remain in force for an
     initial period ending on 31 December 1998. During the first half of 1998,
     consultations shall take place to determine whether and under what conditions it
     should be extended.
                                                  3
 ---pagebreak--- I should be obliged if you would confirm that your Government is in agreement with
the contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                       On behalf of the Council of the European Union
                                             -?
 ---pagebreak---                                         B. LetterfromBulgaria
                                                                                Brussels,
 Sir,
 I have the honour to acknowledge receipt of your letter of today's date which reads as
 follows:
 "I have the honour to refer to the Agreement of 29 November 1993 between the
 European Community and the Republic of Bulgaria on the reciprocal establishment of
 tariff quotas for certain wines and to the negotiations which have taken place between the
 European Community and the Republic of Bulgaria with a view to adapting the said
 Agreement following the accession of the Republic of Austria, the Republic of Finland
 and the Kingdom of Sweden to the European Union, and to the consultations on
 extending the Agreement beyond 31 December 1997.
 I hereby confirm that the European Community and the Republic of Bulgaria have agreed
 on the following:
 I. Table 1 in the Annex to the said Agreement is replaced by the following table:
      Quantities of wine originating in the Community and qualifying for tariff reductions
Bulgarian         Description       1993        1994     1995           1996       1997    1998
customs
tariff code
                                                        Quantity in hectolitres
ex 2204 21
              Wine of         fresh  42 000      46 200   50 400         54 600     58 800  63 000
              grapes
ex 2204 29
ex 2204 10    Quality sparkling       1000        1 100    1200            13f§      \m      1 500
              wine whether or
              not produced in
              specified répons,
              in       containers
              holding not more
              titan two litres
 ---pagebreak--- II. Table 2 in the Annex to the said Agreement is replaced by the following table:
    Quantities of wine originating in Bulgaria and qualifying for tariff reductions
  CN code          Description      1993    1994      1995           1996     1997    1998
                                                     Quantity in hectolitres
ex 2204 21    Quality        wine,  214 000 247 000   280 400        313 600  346 800 401 230
              including quality
              wine      with      a
              designation        of
              origin
ex 2204 29    Quality        wine,  118 000 118 000   118 000        118 000  118 000 128 000
              including quality
              wine      with      a
              designation        of
              origin, and wine
              obtained        from
              grapes of the
               'Gamza'         vine
               variety designated
               and       presented
               under that name
               or     under     the
               synonym
               'Kadarka'
ex 2204 10     Quality sparkling      1000    1 100     1200            1 300   1400    1600
               wine,             in
               containers holding
               no more than 2
               litres
     III. Point 3(a) of the said Agreement is replaced by the following:
     "in the case of duties applied by Bulgaria to imports of wine originating in the
     Community:
     -     in 1993: 90% of the basic duty,
     -     in 1994: 80% of the basic duty,
           in 1995 and subsequent years: 70% of the basic duty but not exceeding 28% ad
           valorem,"
     This exchange of letters shall be approved by the contracting Parties in accordance
     with their respective procedures.
     This Agreement shall enter into force on 1 January 1998 and remain in force for an
      initial period ending on 31 December 1998. During the first half of 1998,
     consultations shall take place to determine whether and under what conditions it
      should be extended.
                                                   x/O
 ---pagebreak--- I should be obliged if you would confirm that your Government is in agreement with
the contents of this letter."
I have the honour to confirm that my Government is in agreement with the contents of
your letter.
Please accept, Sir, the assurance of my highest consideration.
                                       For the Government of the Republic of Bulgaria
                                         il
 ---pagebreak---          FINANCIAL STATEMENT
                                                                                            Date:
I.    BUDGET HEADING: Chapter 10 Agricultural duties                                        APPROPRIATIONS:
                                                                                            ECU 693.2 million (*)
2.    TITLE:
      Council Regulation on the conclusion ol'thc Agreement in the form of an exchange of letters between the EC and Bulgaria
3.    LEGAL BASIS:
      Article 113 of the Treaty
      AIMS:
      To extend by one year the Agreement with Bulgaria.
      FINANCIAL IMPLICATIONS                                           PERIOD OF 12                CURRENT        FOLLOWING
                                                                          MONTHS                  FINANCIAL        FINANCIAL
                                                                                                     YEAR             YEAR
                                                                                                      (97)             (98)
                                                                        (ECU million)            (ECU million)    (ECU million)
5.0   EXPENDITURE
      - CHARGED TO THE EC BUDGET
          (REFUNDS/INTERVENTION)
      - NATIONAL AUTHORITIES
      -   OTHER
5.1.  REVENUE
      - OWN RESOURCES OF THE EC                                                12,7                                     12,7
          (LEVIES/CUSTOMS DUTIES)
      - NATIONAL
                                                                           1998              1999            2000        2001
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE                                                ECU 12,7 m
5.2   METHOD OF CALCULATION:
      See Annex
6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE                                                      YES/NO
      RELEVANT CHAPTER OF THE CURRENT BUDGET?
6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE                                                     YES/NO
      CURRENT BUDGET?
6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                                           ¥¥S/NO
6.3   WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                                     YES/NO
OBSERVATIONS:
      (*) In accordance with the 1998 PDB
       The measure proposes extending and increasing the quotas granted. This will result in a loss in EC own resources, as the
       quantities involved will enter at a reduced rate rather than the full rate as at present.
                                                                *Z
 ---pagebreak---                                                                  ISSN 0254-1475
                                                         COM(97) 603 final
                                             DOCUMENTS
EN                                                              11 03 02
                                    Catalogue number : CB-CO-97-625-EN-C
                                                           ISBN 92-78-27671-5
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