CELEX: 51984PC0397
Language: en
Date: 1984-07-18
Title: Draft DECISION OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE derogating from the definition of originating products to take account of the special situation of Jamacia with regard to tufted carpets of tariff heading ex 58.02 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (84) 397
Vol. 1984/0173
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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
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COMC84) 397 final
                                                 Brussels, 18 July 1984
                             Draft
              DECISION OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE
    derogating from the definition of originating products to take account of
    the special situation of Jamacia with regard to tufted carpets of tariff
    heading ex 58.02
               (submitted to the Council by the Commission)
 C0MC84) 397 final
 ---pagebreak---                              EXPLANATORY MEMORANDUM
By letter No. ACP/64/9 dated 12 September 1983, the ACP States submitted a
request on behalf of the Jamacian Government for a derogation from the rules
of origin for carpets of tariff heading 58.02 manufactured in Jamacia. In
conformity with the provisions of Article 30 and explanatory note No. 10 of
Protocol No. 1, additional information necessary for the examination of the
file was furnished by the Jamacian authorities in a letter to the Commission
received on 22 May 1984, the date considered as the date of referral of the
request to the Community as laid down in Article 30 (6 ).
 The exports concerned from Jamacia to the Community do not acquire originating
 status within the meaning of the second Lomé Convention, due to the use of
 non-originating backing in the manufacture of the carpets.
 The ACP request is based on the following considerations :
 - the manufacture of the tufted carpets under consideration involves very
    elaborate technical processes and the value added in Jamacia by labour and
    manufacturing costs alone represents 56,5 % of the cost of the finished
    carpet ;
  - the backings used are made of jute imported from Bangladesh or synthetic
    material imported from the USA. There used to be a firm in Jamacia which
    manufactured jute backings but this firm has ceased operations with the
     result that such backings have now to be imported from Bangladesh. The
     importation of synthetic backings from the Community is not feasible given
     the law cost of the product itself and the high cost of transport ;
  - the Jamacian firm concerned employs 75 people and contributes towards
     the upkeep of important parallel   local industry ;
   - the uncertainty surrounding the application of customs duty has caused all
     the Community buyers to cancel   their orders until this question has been
      settled.
                                                                    ..·/··
 ---pagebreak---                                 - 2 -
In the light of these facts and having regard to the present context of
the négociations on the renewal of the Lomé Convention, the Commission is
of the opinion that the derogation requested should be granted for an annual
quantity of 150,000 square yards of tufted carpet of tariff heading 58.02 A II a),
for a period of two years. This period should allow the Jamacian firm concerned
to change its sources of supply so as to fulfill the rules of origin. However
given that the Convention expires on 28 February 1985, the period of application
of this proposal is limited to this date and for a quantity of  80,000 square
yards (which represents a proportional calculation). II should however be
agreed in adopting this text that the derogation shall be quasi-automatically
renewed for the remainder of the period after 28 February 1985.
 ---pagebreak---                                 Draft
      DECISION No.   /84 OF THE ACP-EEC CUSTOMS COOPERATION COMMITTEE
                            of
 derogating from the definition of originating products to take account of the
special situation of Jamacia with regard to tufted carpets of tariff heading ex
58.02
THE CUSTOMS COOPERATION COMMITTEE,
Having regard to the ACP-EEC Convention signed at Lomé on 31 October 1979 (1),
hereinafter referred to as 'the Convention" ;
Whereas Article 30 of Protocol No. 1 of the Convention, concerning the
definition of the concept of originating products and methods of administrative
cooperation, provides that derogations from the rules of origin may be adopted
by the Customs Cooperation Committee where the development of existing industries
or the creation of new industries justifies them ;
 Whereas the African, Caribbean and Pacific States (ACP) have requested a
 derogation from the definition set out in Protocol No. 1 for tufted carpets
 manufactured in Jamacia ;
 Whereas the Jamacian industry should be allowed to adapt its production to the
 conditions required for the acquisition of origin under the Convention ;
 Whereas any deflection of trade should be avoided   ; whereas this can be
 achieved by limiting the scope of the derogation to the use of non-originating
 backings alone ;
 Whereas a portion of the said backings originate in another developing country ;
  whereas under Article 30(5) of Protocol No. 1 this possibility should be taken
  into account in examining the derogation request ;
  Whereas in these circumstances, a temporary derogation from the definition of
  originating products should be accorded to Jamacia,
                                                                      •.. /· ·.
   (1) OJ No. L 347 of 22.12.1980
 ---pagebreak---                               - 2 -
HAS DECIDED AS FOLLOWS :
Article 1
By way of derogation from the particular provisions of List A of Annex II
to Protocol No. 1, tufted carpets falling within heading 58.02 A II a) of
the Common Customs Tariff, manufactured in Jamacia, in the production of which
non-originating backing falling within tariff headings 51.04 or 57.10 of the
Common Customs Tariff is used, shall be considered as originating in Jamacia
provided that the other conditions applicable to heading 58.02 are respected.
Article 2
The derogation referred to in Article 1 shall be in respect of a quantity
of  80,000 square yards of tufted carpets exported from Jamacia between
the date of entry into force of this decision and 28 February 1985.
Article 3
The Jamacian authorities shall take the steps necessary to check the
quantities of exports of products referred to in Article 1 and shall
forward to the Commission every three months a statement of the quantities
in respect of which EUR.l movement certificates have been issued pursuant
to this Decision.
Article 4
The ACP States, the Member States and the Goranunity shall be bound, each to
the extent to which it is concerned, to take the measures necessary to
implement this Decision.
Article 5
This Decision shall enter into force on the day of its adoption.
It shall apply until 28 February 1985.
Done at                                           For the Customs
                                              Cooperation Committee
                                                    The Chairman