Explanatory Memorandum to COM(2012)115 - Implementation of the Agreements in the framework of GATT 1994 and amendment of Regulation 2658/87 on nomenclature and Common Customs Tariff - Main contents
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| dossier | COM(2012)115 - Implementation of the Agreements in the framework of GATT 1994 and amendment of Regulation 2658/87 on nomenclature and ... |
|---|---|
| source | COM(2012)115  |
| date | 16-03-2012 |
Negotiations under Article XXVIII of GATT 1994 concluded on poultry in 2007 (OJ L138 30.5.2007) covered tariff lines on poultry meat under heading 0210 as well as one processed poultry line, 1602 32 19 in the EC Schedule CXL: cooked preparations containing more than 57% of poultry meat. Limiting the negotiations to the processed poultry line 1602 32 19 was considered to sufficiently prevent potential substitution effects. Subsequent import data, however, showed a dramatic import surge of processed poultry meat under tariff line 1602 32 30: preparations containing 25% or more but less than 57% by weight of poultry meat or offal. This indicated that exporters seemed to take advantage of a relative gap in the EU level of protection, substituting poultry preparations containing more than 57% of poultry meat with preparations containing less than 57%, under tariff line 1602 32 30. Comparable substitution effects were to be expected under other 1602 tariff lines in the future. In order to comprehensively address these substitution effects affecting the EU poultry industry, the Commission requested from the Council the authorisation to renegotiate the concessions on poultry meat under Chapter 16 of the CN.
On 25 May 2009 the Council authorised the Commission to open negotiations under Article XXVIII of the GATT 1994 (COM proposal 8615/09 WTO 72 AGRI 166) with a view to the renegotiation of concessions on poultry meat tariff lines under Chapter 16 of the CN.
On 16 June 2009 the communication of the EU's intention to modify the concessions on items 1602 20 10, 1602 32 11, 1602 32 30, 1602 32 90, 1602 39 21, 1602 39 29, 1602 39 40 and 1602 39 80 included in Schedule CXL of the European Communities was circulated to the other WTO Members.
Negotiations have been conducted by the Commission in consultation with the Trade Policy Committee and within the framework of the negotiating directives issued by the Council.
The Commission has negotiated with the Federal Republic of Brazil and with the Kingdom of Thailand holding each principal supplying interests and/or substantial interests in various of the tariff lines concerned.
The Commission has negotiated with the Federal Republic of Brazil, holding a principal supplying interest in products of HS codes 1602 32 11 (Processed chicken meat, uncooked, containing 57% or more by weight of poultry meat or offal), 1602 32 30 (Processed chicken meat, containing 25% or more but less than 57% by weight of poultry meat or offal) and 1602 32 90 (Processed chicken meat, containing less than 25% by weight of poultry meat or offal) and with the Kingdom of Thailand, holding a principal supplying interest in products of HS codes 1602 39 21 (Processed duck, geese, guinea fowl meat, uncooked, containing 57% or more by weight of poultry meat or offal), 1602 39 29 (Processed duck, geese, guinea fowl meat, cooked, containing 57% or more by weight of poultry meat or offal), 1602 39 40 (Processed duck, geese, guinea fowl meat, cooked, containing more than 25% but less than 57% by weight of poultry meat or offal) and 1602 39 80 (Processed duck, geese, guinea fowl meat, cooked, containing less than 25% by weight of poultry meat or offal) and a substantial interest in products of HS code 1602 32 30 (Processed chicken meat, containing more than 25% but less than 57% by weight of poultry meat or offal) and 1602 32 90 (Processed chicken meat, containing less than 25% by weight of poultry meat or offal).
The negotiations have resulted in Agreements in the form of exchanges of letters initialled with the Kingdom of Thailand on 22 November 2011 and with the Federal Republic of Brazil on 7 December 2011.
The agreements were negotiated on the basis of the Combined Nomenclature codes in force at the time.
In the newest version of Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff as laid down in Commission Regulation (EU) No 1006/2011 published in OJ L 282 of 28 October 2011, the tariff lines 1602 39 40 and 1602 39 80 have been merged into a new tariff line 1602 39 85. It is therefore appropriate to reflect this new situation in the present implementing regulation.
The autonomous Customs duty rates for the tariff lines covered by the negotiations are currently set at levels below the new conventional duty rates resulting from the modification of concessions pursuant to Article XXVIII of GATT 1994. However, under Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, the autonomous customs duties apply when they are below the conventional duties.
The autonomous rate of duty fixed in the Common Customs Tariff should therefore be increased to the level of the conventional duty in the present implementing regulation.
See Financial Fiche in Annex.