Explanatory Memorandum to COM(2008)540 - Amendment of Regulation (EC) No 55/2008 introducing autonomous trade preferences for Moldova

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dossier COM(2008)540 - Amendment of Regulation (EC) No 55/2008 introducing autonomous trade preferences for Moldova.
source COM(2008)540 EN
date 10-09-2008
On 21 January 2008 the Council adopted Regulation (EC) No 55/2008 i introducing autonomous trade preferences for the Republic of Moldova i (ATPs Regulation) and replacing the GSP preferences to which Moldova was previously entitled. It entered into force on 31 January and is applied since 1 March 2008. The regulation offers all products originating in Moldova free access to the EU markets, except for certain agricultural products listed in Annex I to the regulation for which limited concessions have been given either in the form of exemption from customs duties within the limit of tariff quotas or of reduction of customs duties. These are certain meat and dairy products, eggs, cereals, sugar, wine and certain fruits and vegetables.

Explanation of the provisions

Following the entry into force of this Regulation importers have brought to our attention that the current wording of Article 14 of the ATPs Regulation created a de facto gap between the application of the GSP preferences and the application of the ATPs, whereas the intention was to ensure that GSP preferences would continue to apply for all eligible exports until the ATPs were fully in place. According to the current wording goods covered by the GSP, which have been exported to the EU between the entry into force of the ATPs (31 January 2008) and the start of the application of the regime (1 March 2008) would not be covered by either regime if the purchase contract was not made before 31 January 2008 and it could be shown that the goods left Moldova no later than 31 January 2008. To correct this situation the wording in Article 14 i, 14(1)(a), 14(1)(b), 14(2)(a), 14(2)(b), 14(2)(c) and 14(2)(d) has to be changed from 'the date of entry into force' to 'the date of application'.

Furthermore, in preparing the application of the regulation and the management of the quotas listed in Annex I, a few inconsistencies between the quota descriptions and the applicable CN codes were detected. The proposed corrections do not contradict or change the methodology used to determine the size of the quotas for each product group, which was based on the best export performance of the years 2004 -2006 with yearly increases corresponding to the potential increases in production and export capacity of Moldova until 2012. The proposed changes to Annex I of Regulation 55/2008 are the following:

1. Quota nr. 09.0504 (meat): Delete the word 'domestic' in the description to make the description correspond to the CN codes.

2. Quota nr. 09.0509 (common wheat): The CN code 1001 90 99 was omitted by mistake and should be added in order to make the quota correspond to the offer which was based on exports of all common wheat and meslin in accordance with the methodology mentioned above.

3. Quota nr. 09.0514 (wine): Delete 'of an actual alcoholic strength by volume not exceeding 15%' in the description to make the description correspond to the CN codes.

1.

Budgetary implications



The proposed Regulation does not incur costs charged to the EC budget or have any impact on the EC budget in the form of loss of customs revenue beyond what was originally estimated for the entry into force of the additional preferences for Moldova.