91998E3948

WRITTEN QUESTION E-3948/98

by Johanna Maij-Weggen (PPE) to the Commission

(4 January 1999)

Subject: Award of DG VIII supply contracts

Under present development-aid arrangements, contracts are awarded by the Commission to third-party suppliers. Can the Commission state what conditions, in particular rules of origin, govern the supply to developing countries of such products as agricultural machinery? Do the same rules of origin also apply to machine components? Can use also be made of undertakings that are established in developing countries, including the recipient country?

Can the Commission set out the reasons for imposing the condition that products may originate only in the Community? Does the Commission not consider that it would be of some assistance to developing countries if products or product components were also allowed to originate in developing countries?

Are the same conditions applied to other programmes such as PHARE or TACIS?

Answer given by Mr Pinheiro on behalf of the Commission

(11 February 1999)

Where aid to non-member countries from the European Development Fund (EDF) is concerned, Article 294(1)(b) of the Lomé Convention stipulates that "supplies must originate in the Community and/or the ACP States, in accordance with the provisions of Annex LIV", a provision which is repeated in Article 4.1(b) of the general regulations, general conditions and procedural rules on conciliation and arbitration for works, supply and service contracts financed by the European Development Fund (EDF). Where contracts funded under Phare and Tacis are concerned, an equivalent clause in inserted in the standard instructions to tenderers. In both cases, eligibility extends to products originating in any beneficiary country on equal terms with Community products.

Furthermore, in duly justified cases, permission can be given (Article 296 of the Lomé Convention; Articles 4 and 6 of the general regulations, general conditions and procedural rules) for firms from non-ACP (African, Caribbean and Pacific) developing countries to tender. Similar exceptions can be made for Phare and Tacis contracts under Article 114(2) of the Financial Regulation applicable to the general budget of the European Communities(1).

(1) OJ L 356, 31.12.1977.