Draft DECISION No 3/99 OF THE EC-EFTA JOINT COMMITTEE ON COMMON TRANSIT of 2 December 1999 renewing the ban on the use of the comprehensive guarantee imposed by Decision Nos 1/96 and 2/96 of the Joint Committee

(presented by the Commission)

EXPLANATORY MEMORANDUM

Subject: Draft Decision No 3/99 of the EC-EFTA Joint Committee on Common Transit renewing the ban on the comprehensive guarantee imposed by Decision Nos 1/96 and 2/96 of the Joint Committee

1. The Convention of 20 May 1987 provides for the application of a system of common transit by the Contracting Parties.

2. Under Article 34B of Appendix II to the Convention, use of the comprehensive guarantee may be temporarily prohibited, at the request of one or more Contracting Parties, for goods presenting an exceptional risk of fraud.

3. By virtue of Decision Nos 1/96 and 2/96, as last extended and amended by Decision Nos 1/97 and 1/98, the Joint Committee adopted measures temporarily banning the use of the comprehensive guarantee for the transport of cigarettes of HS subheading 2402 20 and other sensitive goods, which presented an exceptional risk of fraud.

4. Protection of the financial interests at risk in those operations makes it necessary to maintain these measures for a period of 12 months, both for Community transit and common transit, in order to ensure maximum effectiveness.

5. This is the purpose of draft Decision 3/99 of the Joint Committee. This draft has been endorsed by the EC-EFTA working party on Common Transit.

6. This draft Decision is being put to the Council with a view to obtaining a common position permitting its adoption at the next meeting of the EC-EFTA Joint Committee on Common Transit, which will take place in Lillehammer.

Draft

DECISION No 3/99 OF THE EC-EFTA JOINT COMMITTEE ON COMMON TRANSIT

of 2 December 1999

renewing the ban on the use of the comprehensive guarantee imposed by Decision Nos 1/96 and 2/96 of the Joint Committee

THE EC-EFTA JOINT COMMITTEE ON COMMON TRANSIT,

Having regard to the Convention of 20 May 1987 on a common transit procedure, [1] and in particular Article 34B of Appendix II thereto, [2]

[1] OJ L 226, 13.8.1987, p. 2.

[2] OJ L 238, 29.8.1997, p. 27.

Whereas:

(1) By virtue of Decisions Nos 1/96 [3] and 2/96, [4] as last extended and amended by Decision Nos 1/97 [5] and 1/98, [6]the Joint Committee adopted measures temporarily banning the use of the comprehensive guarantee for the transport of cigarettes of HS subheading 2402 20 and other sensitive goods, which presented an exceptional risk of fraud.

[3] OJ L 226, 7.9.1996, p. 20.

[4] OJ L 226, 7.9.1996, p. 22.

[5] OJ L 186, 16.7.1997, p. 27.

[6] OJ L 325, 3.12.1998, p. 22.

(2) Protection of the financial interests at risk in those operations makes it necessary to maintain the measures for a further 12 months pending full application of the new rules on the comprehensive guarantee as part of the reform of the common transit procedure.

HAS ADOPTED THIS DECISION:

Article 1

The provisions of Decision Nos 1/96 and 2/96 of the EC-EFTA Joint Committee on common transit are renewed for a period of 12 months.

Article 2

This Decision shall enter into force on 1 January 2000.

Done at Lillehammer, 2 December 1999.

For the Joint Committee

The Chairman