Explanatory Memorandum to COM(1999)689 - Arrangements applicable to imports into the EC of products from the Republics of Bosnia and Herzegovina and Croatia and to imports of wine from Macedonia and Slovenia

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dossier COM(1999)689 - Arrangements applicable to imports into the EC of products from the Republics of Bosnia and Herzegovina and Croatia and to ...
source COM(1999)689 EN
date 14-12-1999
After the denunciation of the 1980 Cooperation Agreement between the European Economic Community and the Socialist Republic of Yougoslavia in 1991 the Council decided that preferential trade arrangements contained in that agreement shall continue to apply on an autonomous basis to all countries which emerged from former Yugoslavia with the exception of the Federal Republic of Yugoslavia.  i Currently, the autonomous trade arrangements continue to apply to Bosnia and Herzegovina and to Croatia with which no bilateral agreements have yet entered into force.

These trade arrangements essentially comprise exemption from customs duties and the abolition of quantitative restrictions for industrial products (except for some products subject to tariff ceilings) and special concessions for various agricultural products. Furthermore, in the absence of a special wine agreement to be concluded with Slovenia and the former Yugoslav Republic of Macedonia, autonomous and transitional concessions for imports of wines originating in these countries are equally granted.

Council Regulation (EC) No 70/97, as last amended by Regulation (EC) No 2863/98, concerning the arrangements applicable to imports into the Community of products originating in the Republics of Bosnia and Herzegovina and Croatia and to imports of wine originating in the former Yugoslav Republic of Macedonia and the Republic of Slovenia, expires on 31 December 1999.

In the context of the Stabilisation and Association process for countries of South-Eastern Europe, the Commission already indicated its intention to split in future the existing system of autonomous trade preferences into separate trade preferences for the countries concerned in order to ensure a transparent and equitable share of these preferences between these countries, and to prepare possible future negotiations for bilateral agreements.  i In addition, the Council, in its conclusions of 13 September 1999 had invited the Commission to examine further improvement.The aim of the attached proposal for a Council Regulation (EC) is:

- the renewal of these trade arrangements for a two-years period until 31 December 2001;

- the technical adjustments necessary following the amendments to the Combined Nomenclature and to other relevant EC legislation;

- the inclusion of a temporary suspension clause in order to safeguard the Community's financial interests in cases of fraud or failure to provide administrative cooperation as required for the verification of evidence of origin by the countries concerned;

- the annual increase by 5% of the amounts of the tariff ceilings for industrial products;

- the split of the global trade preferences into country specific ones - with the exception of the concessions for wine - for the countries currently eligible to preferences under the Regulation while taking into account existing trade flows and earmarking the corresponding volume for the future potential use by the Federal Republic of Yugoslavia once conditions are met for its inclusion into this Regulation;

- the abolition of six tariff ceilings for industrial products and an additional increase of the volumes for 16 of the remaining 32 tariff ceilings.

As Council Regulation (EC) No 70/97 has been amended several times, it seems desirable to make the above mentioned changes in a single new regulation.

The Commission suggests the attached proposal for a Council Regulation (EC) for adoption to the Council.