CELEX: 51973PC0611
Language: en
Date: 1973-04-18 00:00:00
Title: Recommendation from the Commission for a Decision of the Council concerning the development of a harmonised commodity description and coding system#Draft Décision of the Representatives of the Governments of the Member States of the ECSC meeting in Council concerning the preparation of a harmonised commodity description and coding system (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 611
Vol. 1973/0124
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(73)611 final
                                                Brussels , 18 April 1973
                    Recommendation from the Commission
                       for a Decision of the Council
                     concerning the development of a
                     harmonised commodity description
                            and coding system
                                    Draft
                                  Décision
                   of the Representatives of the Governments
                      of the Member States of the ECSC
                               meeting in Council
                   concerning the preparation of a harmonised
                    commodity description and coding system
                ( submitted to the Council by the Commission )
   COM(73 ) 611 final
 ---pagebreak---                                 Backgrovnd
5\ib ject : Negotiations leading to the development of a harmonised
              commodity description and coding system .
                     The Customs Co-operation Council , whose tasks include
that of running the Brussels Nomenclature , has since 1970 been studying
the possibility of establishing a harmonised commodity description and
coding system which is capable of satisfying the needs , to the greatest
possible extent , of the various participants in international trade
 ( e.g. , customs administrations , statisticians * transport firms ).    Such
a systeim would allow simplification of international trade procedures ,
particularly if electronic techniques were used . -
                     The Study Group set up for this purpose has just
finished some preliminary work culminating in the production of a
rerort , in which the experts of certain States r ( e,g . Member States of
the Community , USA , Canada ), of the Commission and of certain inter­
national organisations have all participated *               .. .
                     At its session in May 1973 1 the Customs Cooperation
Council will have to pronounce . for or against the harmonised commodity
description and coding system after examining the various elements of
the report .     In fact , it may be anticipated that their decision will
depend upon the attitude of the Community .
                     Three basic questionis arise on this subject :
                     - what is the / benefit of. the harmonised commodity
description and coding system ?
                     * what will be the repercussions at Community level ?
                     - what procedure will need to be adopted in order to
guarantee the Community 's participation as such in the decisions and
work concerning the harmonised system in question ?
 ---pagebreak--- 1 * Benefit of the system
                   At the present moment , therJ is no unique commodity
description sytem in existence at international trade level .       A fortiori
no generalised coding system exists either .
           I
               1   In . practice- Several nomenclatures are used for the
description of commodities .      They may be diveded into two categories :
                   a ) the nomenclatures based on the Brussels Tariff
Nomenclature ( B.T.N.).' The following are examples :
                 - the Common Customs Tariff and "
                 - the Nimexe ( Import-export statistics ), both of which
are being applied in the Community.
                 - the Customs tariffs of 115 countries (e . g ., Sweden ,
Norway , Finland , Austria , Switzerland , Spain , Morocco , Tunisia ,
Israel , Turkey , Iran , Japan and Jugoslavia .
                   As a result of their common base ( B.T.N. ) it is
possible for correlations between these various nomenclatures to be
established   without too many difficulties .
                   b ) other hotaensis^ure t whose structures - are
very varied .  The following are examples :
         ^       - the S»I«T»C »-" ( Standard International Trade GlasSificati
used for statistical purposes
                 - the N.A.T.O. nomenclature
                 - the nomenclatures of transport organisations : e.g.
                   I.A.T.A. , Railways , 3oad Haulage, and the Freight
                   Tariff of the Association of VJest India Trans-Atlantic
                   Steamship Lines
                 - the classification established by Comecon
                 - the Customs tariffs of certain countries : e.g.
                   Canada and U.S. A. .
                   Correlations between these different nomenclatures
could only be established at the cost .of extreme complications .
 ---pagebreak---                      It is therefore clear that the adoption of a common
  or harmonised nomenclature T in the various cases mentioned above , would
  result in the simplification and classification of international trade
  data . If the items of this nomenclature were given a numerical code
  which was suitable for use in computers , one result would be the
  possibility of a considerable improvement in the information which is
  indispensable for the harmonicus development of trade .
                     The use of just such a nomenclature , which is a true .„_
  common language for all those involved in international trade , not
  only offers clear advantages but in fact is essential in the face of
  the increasing volume and the wider diversity of international trade .
  II . Repercussions at Community level
                     In the field of international trade relations , the
  European Communities use the Common Customs Tariff ( agricultural
  products and industrial products ) and the Nimexe ( import-export
  statistics )* These two nomenclatures sire inter-related : the latter
  incorporates the former almost in its entirety , and in very many cases
  develops it . Both are based on the Brussels Nomenclature .
                     The Study Group , in its report , proposes to the Customs
  Co-operation Council : that the basic structure to be used in setting up
. the harmonised system envisaged should be the Brussels Nomenclature .
          '          Most of the subheadings of the Common Customs Tariff
  and of the Nimexe will , inter alia , be taken into consideration for
  the development . of this basic nomenclature . Nevertheless the Common
  Customs Tariff ^nd the Nimexe will need fundamental modification- when
  the harmonised system is adopted and implemented ..
                     For this reason , the basic numerical code , which
  currently comprises *+ digits for the Common Customs Tariff , will
  change to 6 digits .
                     Moreover the number of headings or subheadings , which
  amount to about 3»600 for this same Tariff , will exceed 8 , 000 , which is
  the total envisaged for the system itself .
 ---pagebreak---                                        - 5 -
     III . Procédure
6.                   /  As has been said above , the Study Group has completed
     the preparatory phase of its work . The Customs Co-operation Council
     will give its view on the basis of the report produced .
                        The Member States of the Community , in their capacity
     as contracting parties to the Customs Co-operation Council , have
     participated in the Study Group in the person of their experts . The
     Commission had been invited to participate in the Group 's work by
     the same token as had a certain number of inter-Governmental organisa­
     tions (e.g. O.E.C.D. , UNCTAD , NATO ) or of international non-Govern-
     mental organisations ( e.g. I .A .T . A. , International Chamber of Shipping ,
     International Union of Railways ). Officials of the Commission , then ,
     played an active part in the preliminary studies at the same time as did
     the experts of the Member States , with whom a common front had
     previously been established .
                        It follows from the considerations set out above that
     the subject of the harmonised system is the exclusive responsibility
     of the Community .
                        In effect , such a system directly affects the
     Community , notably in regard to the essential instruments of its
     common commercial policies , which are the nomenclature of the Common
     Customs Tariff and the Nimexe ( Regulation (EEC ) No 14^5/72 of the
     Council , 26.6.72 ).
                        It is clear therefore that the development of a
     harmonised commodity description and coding system - in an international
     context - appertains to the provisions of Articles 113 and 11^ of the
     Treaty .
7.                      In this situation the Commission recommends the Council
     to give it authorisation to open negotiations leading to the above-
     mentioned development :
       <                - with the assistance either of the Special Committee
     of Article 113 for the products covered by the EEC Treaty , or of the
     representatives of the Member States for the products covered by the
                                /
   1 ECSC Treaty
                        • on the basis of directives arising from the Study
     Group' s report ,
                                                                     * • •/ . • •
 ---pagebreak---                  To this end , the Commission proposes that the_ -----
Council should adopt the Decision set out in Annex I and the
accompanying directives for negotiation ( Annex II ); it further
proposes that the Representatives of the Governments of the Member
States of the SCSC meeting in Council should adopt the Decision set
out in Annex III and the accompanying directives for negotiation
( Annex IV ).
 ---pagebreak---                                                         ANNEX I
               Recommendation from the Commission
                   for a Decision of the Council
                  concerning the development of a
                harmonised commodity description
                         and coding system
The Council of th-5 European Communities ,
Having regard to the recommendation from the Commission ,
Having regard to Article 113 of the Treaty establishing the European
Economic Community ,
Whereas under the auspices of the Customs Cooperation Council the
development of a harmonised commodity description and coding system
is envisaged for particular use within the tariff and statistical
fields ;
Whereas such a system is not only desirable but , in the medium term ,
is indispensable in order of facilitate international trade ;
Whereas it is in the interest of the Community to participate in the
development of a harmonised commodity description and coding system ,
HAS ADOPTED THIS DECISION :
                           Sole Article
                  The Commission is authorised to open negotiations
within the Customs Co-operation Council leading to the development of
a harmonised commodity description and. coding system in accordance
with the directives set out in the Annex and subject to subsequent
directives .
                  The Commission shall conduct these negotiations in
consultation with the Special Committee provided for in Article 113
who shall assist them in this task »
                  This decision is addressed to the Member States .
                                             Done at Brussels ,
                                             By the Council
                                             The President
 ---pagebreak---                                                          ANNITX II
                    i ' 'J * '»          .      '
                      Directives for negotiation
                  During the .. development work the Community 6hall
seek that the harmonised commodity description and coding system is
established as follows :
- a structured nomenclature based essentially on the Brussels
  Nomenclature , of which each item is capable of development in order
  to meet every user 's individual reeds ,
- a 6-digit code developed as ar. extension of the ^~dig:Lt code of
  the , Brussels Homanclature , with a unique code number for each
  3-tem ,
- a list of commodity descriptions ,
- an alphabetical index ,           -
- explanatory notes ( eventually ).
                   In the structured nomenclature and in the description
list , the products shall be identified as far as possible by reference
to their technological characteristics .
 ---pagebreak---                                 Draft
                             Décision
             of the Representatives of the Governments
                of the Member States of t-ht HCSC
                           meeting in Council
             concerning the preparation of a harmonised
              commodity description and coding system
The Representatives of the Governments of the Member States ox the
European Coal and Steel Community meeting in Council
HAS ADOPTED THIS DECISION s
                             Article 1
                 The Commission' is authorised to open negot *.rit2©B3
within the Customs Co-operation Council leading to the preparation,
of a harmonised commodity description and coding system .
These negotiations will be conducted in accordance with the directive
set out in the Annex and subject to subsequent directives .
                 The Commission shall conduct these negotiations in
consultation with the Representatives of the Member States who thail
assist them in this task .
                             Article 2
                 The Member States shall take the necessary measures
for the execution of the present decision .
                                                    Done at Brussels ,
                                                    The President
 ---pagebreak---                                                                ANNEX IV
                             ι
                     Directives for negotiatien
                  During the development work the Community shall seek
that the harmonised commodity description and coding system is
established as follows :       .
- a structured nomenclature based essentially on the Brussels Nomen­
  clature . Each item must be capable of development in order to meet
  every user*s individual needs ,        v
- a 6-c.igit code developed as an extension of the 4-digit code of the
  Brussels Nomenclature , with a unique code number for each item ,
- a list of commodity descriptions ,
- an alphabetical index ,
- explanatory notes . ( eventually ) .                     >
                  In the structured nomenclature and in the description
list , the products will be identified as far as possible by reference
to their technological characteristics .                    "(