CELEX: 51977PC0486
Language: en
Date: 1977-10-13
Title: Draft ACP-EEC-COUNCIL OF MINISTERS DECISION derogating from the concept of originating products to take into account the special situation of Mauritius with regard to its production of canned tuna (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
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DOCUMENTS "COM"
COM (77) 486
Vol. 1977/0152
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(77 ) 486 final .
                                                 Brussels . 13 October 1977
                                Draft
                 ACP-EEC-COUNCIL OF MINISTERS DECISION
      derogating from the concept of originating products to
        take into account the special situation of Mauritius
            with regard to its production of canned tuna
            ( submitted to the Council "by the Commission)
 COM(77 ) 486 final .
 ---pagebreak---                                Explanatory Note
. Présentation of the recmest
   At a meeting of the Customs Co-operation Committee on 22 May , the Chairman
   of the ACP Working Party informed the Community of a request from
   Mauritius , based on Article 27 of Protocol No 1 annexed to the Lome Convention
   for a derogation from the definition of the concept of originating products
   as regards an annual quantity of 3 120 tonnes of canned tuna for a period
   of two years .
  On this occasion the Mauritian representative put forward the following
   arguments :
   Since 1972 , Mauritius has had a tuna canning industry ; this was started up
  by a Japanese company which got its supplies from Madagascar , since that
  country already had a fishing venture and was able to supply the quantities
  required to ensure the profitability of the operation .    Since the fish
  came under the heading of originating products , the canned tuna was admitted
  into the Community under the preferential arrangments .    This situation
  deteriorated in 1975 following political changes in Madagascar and the
  fishing company was wound up , which at the same time cut off the cannery 's
  sources of supply .   Other ACP suppliers were sought and a load of 600 tonnes
  from Ghana enabled the company to keep going for some time .    When a
  contract with the Ivory Coast was terminated a few days before loading ,
  the cannery had to close for several weeks and its 278 employees were laid
  off .
  At present work has resumed and the tuna is bought from fishermen in the
  Maldive Islands and dispatched to Mauritius subject to t-he payment of a
  very high freight charge which adds heavily to the cost price of the
  finished product ; since this no longer counts as an originating article
  the customs duty applicable to third countries namely 24$» must be paid
  on entry into the Community .
  Mauritius has restructured this canning industry , first of all by acquiring
  51$ of the company 's capital , with the aim of increasing its participation
  to 1&fo at a later stage , and also by creating its own fishing fleet . The
  preparatory stage for this is already under way ( training of crews ).
 ---pagebreak---  This derogation has been requested so as to enable the factory to sell
 on the Community market up to the time when the products can "be considered
 as originating - namely within two years .
Exports in 1975 were as follows :
Belgium :             11,200 boxes
Netherlands :         28,000
Germany :             65,700   "
France :              28,000   "
United States :        7,850   "            ( one box is approximately equal to
Reunion :              1,827   "              13 kg net weight )
Comores :               • 400  "
Burundi :                 500  "
Total                143,127 boxes          or 1 860 tonnes
During 1975i about 3,190 t of fish were treated and this yielded 2 520 t
of canned fish .
Exports to the Community in 1976 only came to about 600 t , because of the
difficulties referred to above .
Prices were US $ 22 per "box, whereas production costs came to US $ 24 , "but
losses were temporarily offset "by "bank credit .
Opinion of the Commission departments
A. Situation of_the_C£mmimity_tuna warning industry
The request from Mauritius can only be examined bearing in mind the
effects which the importation of more than 3,000 t of canned fish could
have on the Community industry .  Therefore a close look should "be taken at
the present situation in this "branch of industry .
Only two Member States , namely France and Italy , are involved in tuna
fishing. In 1975 , tuna catches came to about 54»000 t ( France : 50,000 t of
which half comes from the West African Coast , Italy :/]. 1 , 000 t ). Moreover
imports of tuna are made by France ( 8,000 ) and Italy ( 50,000 t ) and are
intended almost exclusively for the canning industry .
 ---pagebreak---                                                                           3
The Community tuna canning industry is concentrated in Italy and Prance .
 Italy produced 36,500 t in 1975 and France produced 26,300 t . At the
 same time , the Community imported 38,920 t . The main suppliers are Japan ,
 Senegal , Ivory Coast (which is becoming an increasingly large supplier),
 and Taiwan .  In 1975 Mauritius supplied 1,573 t .
 France is the main importer with 16,547      followed "by Germany ( 10,474 t )
and the United Kingdom ( 5,335 t ) . Exports are negligible . Intra-Comnnmity
trade cornes to about 2,500 t .
Apparent consumption comes to about 100,000 t of canned fish , with the
 self-supply rate around the 60^o mark .
B. Légal aspect
The request , submitted and supported by all the ACP States , complies entirely
with the criteria specified in Article 27 of Protocol n° 1 to the Convention .
The object is to maintain an existing industry which is in temporary
difficulties due to unforeseen circumstances and whose access to the
Community market is jeopardized by having to pay a very high customs duty ,
which could also threaten the future development of the industry.
C. Conclusion
The request from Mauritius has a legal basis and corresponds to the
provisions of Article 27 of Protocol n° 1 and as previously mentioned ,
since Community imports come to about 39 » 000 t , it does not appear that
serious disturbances could result from granting the Requested derogation .
However , if the Community market is seen as the only outlet , there are
bound to be difficulties . Consequently , it would.be wiser to grant a
derogation for a quantity slightly higher than that of exports in 1975 »
namely 1 , 600 t .                                                           ,
Consequently, the Commission proposes the following draft decision.
 ---pagebreak---                                Bra ft
             ACP-EEC COUNCIL OP MINISTERS DECISION
             derogating from the concept of originating
             products to take into account the special
             situation of Mauritius with regard to its
                      production of canned tuna
THE ACP-EEC COUNCIL OP MINISTERS .
                                      /
Having regard to the ACP-EEC Convention of Lome - signed on 28 February 1975
 hereinafter called the "Convent ion", and in .particular Article 9(2 ) thereof
 ---pagebreak---                                                                              2.
  Whereas Article 27 of Protocol No 1 to the Convention , concerning the
  definition of the conoept of " originating products" and methods of
  admini st rat ive co-operation , states that derogations from the rules of
  origin may "be made , in particular to facilitate the development of
  existing industries or the creation of new industries ;
  Whereas the ACP States have submitted a request from the Government of
' Mauritius for a derogation from the definition set out in the said
  Protocol for canned tuna produced "by that State ;    whereas a one-year
  derogation should be sufficient to satisfy that request ;
  Whereas , in accordance with Article 27 of Protocol No 1 , the Customs
  Co-operation Committee has adopted a report on the said request ;
  Whereas , in order not to hinder the future development of an existing
  industry , the very existence of which is at present threatened as a
  result of unforeseen circumstances , temporary derogation should be
  granted from the definition in the Protocol ,
  HAS DECIDED AS FOLLOWS :
                                     Article 1
        By way of derogation from the special provisions of List A in
  Annex II to Protocol no 1 , canned tuna produced by Mauritius and falling
  within tariff heading No ex 16.04 shall be considered as originating in
  Mauritius subject to the following conditions *
                                     Article 2
        This derogation shall relate to 1600 tonnes of canned tuna falling
  within tariff heading No ex 16.04 imported into the Community from
  to
                                     Article 3
        Movement certificates EUR 1 issued pursuant to this Decision shall
  bear one of the following endorsements :
 ---pagebreak---  - "marchandises originaires en vertu de la décision n°       du Conseil des
     Ministres ACP-CEE",
 - "Ursprungswaren gemäss Beschluss Nr .         des AKP-EWG-Ministerrates",
 - " merci originarie in virtù della decisione n .      del Consiglio dei
     ministri ACP-CEE ",
 - " goederen van oorsprong uit hoofde van Besluit nr .      van de ACS-EEG-
     Raad van Ministers ",
 - " originating products "by virtue of Decision No        of the ACP-EEC
     Council of Ministers ".
 - " varer med oprindelsesstatus i henhold til AVS/EØF-ministerradets afgp
    reise nr .      ".
 This endorsement shall be entered under the heading"Remarks ".
                                    Article 4
        The competent authorities of Mauritius shall take the necessary steps
 to carry out quantitative checks on exports of the products referred to in
Article 2 and shall forward to the Commission every three months a statement
 of the quantities in respect of which movement certificates EUR 1 have
"been issued pursuant to this Decision .
                                    Article 5
        The ACP States , the Member States and the Community shall
each    take the measures necessary to implement this Decision .
     »                              Article 6
        This Decision shall enter into force on
        It shall apply until ............
Done at Brussels
For the ACP-EEC Council of Ministers
                The President