EXPLANATORY MEMORANDUM
1.CONTEXT OF THE DELEGATED ACT
The EU Generalised Scheme of Preferences has assisted, since 1971, developing countries in their efforts to reduce poverty, promote good governance and sustainable development by providing preferential access to the Union market and, consequently, helping them to generate additional revenues through international trade. Regulation (EU) No 978/2012 of the European Parliament and the Council 1 (ʻthe GSP Regulationʼ) provides the legal framework for the implementation of the Generalised Scheme of Preferences (‘GSP’). It was designed to concentrate GSP on the developing countries most in need: the least developed countries and other low and lower-middle income countries, as a reflection of the current global economic and trade landscape.
The list of products on which tariff preferences shall be applied for the general arrangement of GSP is established by Annex V to the GSP Regulation. This list is based on the Combined Nomenclature (ʻCNʼ). Article 6(2) of the GSP Regulation provides that the Commission shall be empowered to adopt delegated acts to amend Annex V in order to incorporate changes made necessary by amendments to the CN.
The list of products on which tariff preferences shall be applied for under the special incentive arrangement for sustainable development and good governance is established by Annex IX to the GSP Regulation. This list is based on the CN. Article 11(2) of the GSP Regulation provides that the Commission shall be empowered to adopt delegated acts to amend Annex IX to take into account amendments to the CN affecting the products listed in that Annex.
The CN as established by Council Regulation (EEC) No 2658/87 has been amended by Commission Implementing Regulation (EU) 2016/1821, which entered into force on 1 January 2017. Annex V and Annex IX to the GSP Regulation should therefore be amended in order to ensure consistency with the CN product list.
2.CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT
In line with paragraph 4 of the Common Understanding on delegated acts between the European Parliament, the Council and the European Commission, appropriate and transparent consultations, including at expert level, have been carried out on this delegated act. The Commission Expert Group on the Generalised Scheme of Preferences was consulted in writing on 1 September 2017.
3.LEGAL ELEMENTS OF THE DELEGATED ACT
Article 6(1) of Regulation (EU) No 978/2012 (the GSP Regulation) refers to the list of products in Annex V on which tariff preferences shall be applied for the general arrangement of GSP referred to in Article 1(2)(a) of the GSP Regulation.
Article 6(2) of the GSP Regulation provides that the Commission shall be empowered to adopt delegated acts to amend Annex V in order to incorporate changes made necessary by amendments to the Combined Nomenclature.
Article 11(1) of the GSP Regulation provides that the products to which tariff preferences shall be applied under the special incentive arrangement for sustainable development and good governance referred to in Article 1(2)(b) of the GSP Regulation are listed in Annex IX.
Article 11(2) of the GSP Regulation provides that the Commission shall be empowered to adopt delegated acts to amend Annex IX to take into account amendments to the CN affecting the products listed in that Annex.
The CN as established by Council Regulation (EEC) No 2658/87 has been amended by Commission Implementing Regulation (EU) 2016/1821, which entered into force on 1 January 2017.
Annex V and Annex IX to the GSP Regulation should therefore be amended in order to ensure consistency with the CN product list.
COMMISSION DELEGATED REGULATION (EU) …/...
of 14.12.2017
amending Annexes V and IX to Regulation (EU) No 978/2012 of the European Parliament and of the Council applying a scheme of generalised tariff preferences
THE EUROPEAN COMMISSION,