CELEX: 51974PC0817
Language: en
Date: 1974-06-11
Title: DRAFT DECISION OF THE EEC/TURKEY COUNCIL OF ASSOCIATION authorising Turkey to retain certain customs duties of a fiscal nature (submitted to the Council by the Commission) J

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 817
Vol. 1974/0125
 ---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(74)817 final
                                                         Brussels , 11 June 1974
                                      DRAFT
              DECISION OF THE HEP/ TURKEY COUNCIL OP ASSOCIATION
    authorising Turkey to retain certain customs duties of a fiscal nature
                 ( submitted to the Council "by the Commission)
                                                                            J
   COM(74) 317 final
 ---pagebreak---                                                                  ANNEX I
                              Note for the Council
1«         Under Article 16 of the Additional Protocol between the EEC and
   Turkey ,.. Turkey retains the right to replace a fiscal customs duty by an
   internal tax in given conditions . It may also be authorised , on a request
   submit t&dbe fore 1 January 1974 » "to retain these duties when the Council
   of Association finds that there are serious difficulties in the way of their
   replacement ,
2»         At the 55"kh meeting of the Committee of Association , hold in Brussels
   cu 30 October 1 973 * the Turkish Delegation made known its customs duties of
   a fiscal nature and asked for authorisation to retain certain of these fiscal
   duties in accordance with the provisions of Article 1 6 , paragraph 4 »
           As regards fiscal duties xjhich are not the subject of a request for
   retention . Turkey must firstly proceed with the alignment of its customs
   tariff with the Common Customs Tariff under Article 17 of the Additional
   Protocol , and secondly , carry out the tariff dismantling stipulated in Article
   8 of the said Protocol . Under the provisions of Article 16 , paragraph 3j
   however , it nay convert these duties , reduced or aligned wit a the CCT , into
   an internal tax at the level of the basic duty of 23 November 1970 , as defined
   in Article 10 , in conformity with Article 44 •
3*         As regards the duties which Turkey has asked to retain , the Turkish
   Government has intimated that the immediate conversion of the duties concerned
   in the request : into an internal tax would run up against administrative and
   budgetary difficulties .
           These difficulties may be summarized as follows :
           ( a) The replacement of these duties try an internal tax would necessi­
                 tate the creation of new administrative units in order to exert
                 effective control and avoid reduction in public revenue ;
 ---pagebreak---                                                                               2.
         b ) The Turkish G^vainmont is planning a radical reform of its interna
             taxation system ; it will bo necessary to make far-reaching changes
             in the laws in order to include in them provisions concerning the
             levying of fiscal duties ;
         c ) Substitution of fiscal duties would have marked influence on price
             structure , which would in turn disturb the internal market . On the
             othor hand , if Turkey wore to reduce the rate of the internal tax
             in order to avoid the resultant price rises and disturbances , this
             would appreciably reduce the Treasury revenues «
4*       However, the Turkish Government has confirmed that the goods ( or simi
   goods ), other than motor cars , in respect of which it seeks retention of t
   customs duty as a fiscal duty , are not manufactured in Turkey , or. where th
   are so manufactured , they are subject to the same duties as the customs du
5.      The conditions stipulated in Article 1 6 , paragraph 4 of the xW.ditiona
   Protocol thus appear to be fulfilled as regards the authorisation to reta:'
   customs duties of a fiscal nature on the products other than motor vehicle
   which are the subject of the Turkish request .
6.      As regards motor vehicles for the transport of persons ( having a maxi
   mum of eight scats including that of the driver), there is a problem of
   effecting a balance between the taxation of imported vehicles , which arc
   levied with the customs duty of 75 i°      valorem deemed by tho Turkish delp
   gation to be a customs duty of a fiscal nature , and those assembled in Tur
   which are not subject to a similar internal tax .
        Now , in accordance with a long-standing Community interpretation , a
   customs duty of a fiscal nature may only be levied on goods which are not
   manufactured in the importing countiy or for which no suitable alternative
   is manufactured therein , provided that such products , should thoy be manu­
   factured, are subjected to .an internal tax equal to the duty of a fiscal
   nature •
                                                                       ./ . •
 ---pagebreak---         The expression " customs duties of a fiscal nature " in Article I 6 of
the Additional Protocol means duties which have a fiscal character not only
in name but in practice , that is to say , duties which do not afford any protec­
tion for national industry .
        On examination it appears that a significant proportion of the customs
duty levied by Turkey on the vehicles in question does in fact afford such
protection .
        Consequently , as this duty does not have the character of a customs
duty of a fiscal nature , the Council of Association cannot authorise Turkey
under Article 16 to retain the duty in full .
         In the circumstances the Commission proposes that the Council approves
the draft Decision of the Council of Association set out in the Annex, which
takes this interpretation into account and omits reference to the motor
vehicles for which Turkey has made a request .
 ---pagebreak---                                                                      ANNEX II
     EEC - TURKEY
      ASSOCIATION
– Council of Association –
                                       Draft
                     DECISION' OF T E COUNCIL OF ASSOCIATION N°  /74
                          authorising Turkey to retain certain
                            customs duties of a fiscal nature
          THE COUNCIL OF ASSOCIATION ,
          Having regard to the Agreement creating an Association between the European
          Economic Community and Turkey , signed at Ankara on 12 September 1963' ( 1 ) »
          Having regard to the Additional Protocol between the European Economic
          Community and Turkey signed at Brussels on 23 November 1970 , and in parti­
          cular to Article 1 6 thereof ( 2),
          Whereas Turkey has requested an authorisation to retain the duties of a fiscal
          nature on the ^cods listed in the Annex up to the end of the transitional
          period laid down in Article 10 , Paragraph 2 of the Additional Protocol ,
          Whereas , under Article 16 , Paragraph 4 of the Additional Protocol the Council
          of Association , whore it finds that the replacement of a customs duty would
          give rise to seriou ; difficulties , shall authorise that country , on receipt
          of a request lodged before the 1st January 1 974 » to retain that duty on
          condition that iG is repealed by the end of the said transition-.! period.
          ( 1 ) OJ N0 217 , 29 December 1964 , p. 3.687/64.
          ( 2) OJ N° L 293 , 29 December 1972 , P. 3 .                                 •/.•
 ---pagebreak--- If ic re as for those goods the replacement of customs duties of a fiscal nature
by internal taxes is liable to cause a serious disturbance of the Turkish
market f
Whereas Turkey is planning a radical reform of its internal taxation system ;
whereas if in these circumstances it were rapidly to convert its duties of a
fiscal nature , it might after a relatively short lapse of time find itself
compelled to carry out a second reform of its system ; whereas such conversion
in several stages would create unnecessary difficulties , particularly for
the industries and administ rat ions concerned,
Whereas the above considerations provide grounds for stating that for the
products in quest io;:. the replacement of the customs duties of a fiscal nature
by internal taxes would give rise to serious difficulties in Turkey ,
Whereas the present Decision does not prejudice subsequent application of
Article 44 of* "the Additional Protocol ,
HAS DECIDED A3 FOLLOWS :
                              Article 1
1#         Turkey shall be authorised to retain customs duties of a fiscal nature
    on the goods listed in the Annex hereto .
2.         During the period of use of the authorisation , Turkey shall maintain
    in force the duties of a fiscal nature effectively applied on tho goods
    concerned as respects third countries on the date of the signature of the
    Additional Protoool .
                             Article 2
 This Decision is addressed to Turkey .
Done at Brussels ,                    1974 .
                                                For the Council of^A^Qcigtioi}
                                                          The President
 ---pagebreak---                                                       Δ Ν Κ Ε Χ
                        Rates of customs duties of a fiscal nature referred to in Article 1
                                                                                                    Rate
    T'ciding N°                                                                                   of duty-
    of Turkish                                                                                ad valorem or in
                                              Description
  customs Tariff                                                                            Turkish pounds ( L.T. )
   at 23.11.1970                                                                                 per 100 kg
                                                                                                 net weight
          1                                         2                                                  3
        27.10    PETROLEUM OILS AND OILS OBTAINED FROM BITUMINOUS MINERALS , OTHER THAN
                 CRUDE ; PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED , CONTAINING
                 NOT LESS THAN 70 $ BY WEIGHT OP PETROLEUM OILS OR OP OILS OBTAINED
                 PROM BITUMINOUS MINERALS , THESE OILS BEING THE BASIC CONSTITUENTS
                 OP THE PREPARATIONS :
                 ex a) Light oils having a closed flash point of "below 30° C :
            - 11        ~ Hotcr spirit                                                            19,15 L.T.
                 ex b) Medium oils having a closed flash point in an airtight chamber
                        of 30° C or over , hut below 55° 0 , or those having a closed
                        flash point of 55° C' or over of which more than 65 °jo ( inoluding
                        losses ) distils at temperatures up to 250° C :
            - 21        •» Kerosene                                                                7.80 L.T.
                    c ) Heavy oils having a closed flash point of 55° 0 or over :
                        ex 1 . Fuel distillates , of which 80 % distils without under­
                               going cracking :
I           « 31               – Gas Oïl                                                           8.75 L.T.
I                                                                                                    «
 ---pagebreak---                                                                                                                        2
[ .                                                                                                   Rate
     Heading N°                                                                                     of duty
     of Turkish                                                                                 ad valorem or in
                                                   Description                                Turkish pounds ( L.T«)
 customs Tariff
   at 23.11.1970                                                                                   per 100 kg
                                                                                                   net weight
          1                                             2                                                  3
        27.10          c ) ex 2 . Residual fuels , of which less than 80 Jo distils without
    ( continued)                  undergoing cracking :
              - 41                – Light fuel oxl                                                     7 « 50 L.T.
              - 42                – Médium fuel oil                                                    7.50 L.T.
              - 43                – Heavy fuel oil                                                     7.50 L.T.
              - 50            3 . Engine oils ( including those from which the characteristic
                                  colour and odour have been removed)                                  8.00 L.T.
    ex 27.11        PETROLEUM GASES AND OTHER GASEOUS HYDROCARBONS :
              - 30  – Petroleum gases in liquid form                                                         15 %
    ex 27.13        PARAFFIN WAX , PETROLEUM OR SHALE WAX, SLACK WAX , OZOKERITE , LIGNITE
                    WAX , PEAT WAX AND OTHER MINERAL WAXES , WHETHER OR NOT COLOURED :
                                                                                                             20 %
                    – Paraffin wax
        28 . c 3    CARBON (CARBON BLACK , ACETYLENE BLACKS , ANTHRACENE BLACKS , OTHER
                    SMOKE BLACKS , ETC .) :
                     ex b) Other :
               - 21         – Carbon black                                                                   30 %
               - 22         - Acetylene blacks                                                               30 #
                                                                                                                   . /
 ---pagebreak--- I                 i                                                                             I             Rats            I
    Heading N°                                                                                             of duty
    of Turkish                                                                                        ad valorem or in
                                         .. .    Description         -                              Turkish pounds ( L.T. )
  customs Tariff
   at 23.11.1970                                                                                          per 100 kg       ;
                                                                                                          net weight
         1                                            2                                                         3
       29.37          LACTONES AND LACTAMS ; SULTONES AND SULTAMS :
                      ex o ) Other :
           - 39              – Caprolactam                                                                      15 %
       33.01          ESSENTIAL OILS ( TERPEIIELESS OR NOT); CONCRETES AND ABSOLUTES ;
                      RESINOIDS :
                      ex b) Other :
           - 22     I        – Of mint                                                                         100 %
           - 23              – Of citronnella                                                                   25 i
           - 24  I           – Of lemon                                                                        100 %
                             – Of melissa                                                                       00
           - 25  I
           - 26              - Of ylang-ylang                                                               '  100 %
           - 29              - Other                                                                           100 %      -
                 I
       33.04          MIXTURES OP TWO OR MORE ODORIFEROUS SUBSTANCES (NATURAL OR ARTIFICIAL )
                      AND MIXTURES ( INCLUDING ALCOHOLIC SOLUTIONS ) WITH A BASIS OF ONE OR
                      MORE OF THESE SUBSTANCES , OF A KIND USED AS RAW 24ATERIALS IN THE
                      PERFUMERY , FOOD , DRINK OR OTHER INDUSTRIES                     ........   ..... -      150%         -
 ---pagebreak---                                                                                                                   4.
                                                                                                     Rata'
    Heading N°                                                                                     of duty
    of Turkish                                                                                 ad valorem or in
  customs Tariff                              Description                                  . Turkish pounds ( L.T. )
   at 23.11.1970                                                                                  per 100 kg
                                                                                                  net weight
Γ        Γ                                         2                                                    3
       40.01 '   NATURAL RUBBER , BALATA , GUTTA-PERCHA AND SIMILAR NATURAL GUMS ,
                 UNIIANTJFAC TURED ( INCLUDING LATEX . WHETHER OR NOT STABILIZED):
           - 10
                     a) Crêpe                                                           j            40 %    .
                 ex b) Other :                                                          ;
           - 21          - Latex                                                                      22 %
           - 22          – Smoked sheets                                                              22 %
       40.02     SYNTHETIC RUBBERS , INCLUDING SYNTHETIC LATEX , WHETHER OR NOT
                 STABILIZED ; FACTICE DERIVED FROM OILS :
                 ex a) Synthetic rubber and latex, for the manufacture and rotrcading
                         of rubber tyres and inner tubes for all types of motor vehicle
                       ' ( subject to the conditions and quantities to- be laid down by
                         the Ministry of Industry) ;                                      :               '
           " 11          - Synthetic rubber                                             ;              0 %