[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 30.9.2005

COM(2005)464 final

2005/464(ACC)

Proposal for a

COUNCIL DECISION

on a Community position within the EU-Chile Association Council concerning the liberalisation of the tariff treatment of wines, spirit drinks and aromatised drinks listed in Annex II of the Association Agreement between the European Community and the Republic of Chile

(presented by the Commission)

EXPLANATORY MEMORANDUM

The EU Chile Association Agreement[1], in its Article 60(5), foresees the possibility that the Association Council takes decisions accelerating the elimination of a customs duty or otherwise improves conditions of access for the product(s) concerned.

The Commission has negotiated with Chile the elimination of customs duties on imports into Chile of wines, spirit and aromatised drinks originating in the Community of headings 2204, 2205, 2206, 2207 and 2208[2]. This decision is also linked to modifications of the Agreement on trade in wines and of the Agreement on trade in spirit drinks and aromatised drinks of which conclusions the Member States were fully consulted.

In practical terms, this decision will permit duty free access for all wines, spirit drinks and aromatised drinks originating in the Community of headings 2204, 2205, 2206, 2207 and 2208 as of the entry into force of this Decision.

The Commission therefore proposes that the Council adopts the enclosed decision on the position to be taken by the Community within the EU-Chile Association Council with a view to the adoption of a decision by the Association Council accelerating the elimination of customs duties on imports into Chile of wines, spirits drinks and aromatised drinks originating in the Community.

2005/464(ACC)

Proposal for a

COUNCIL DECISION

on a Community position within the EU-Chile Association Council concerning the liberalisation of the tariff treatment of wines, spirit drinks and aromatised drinks listed in Annex II of the Association Agreement between the European Community and the Republic of Chile

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the second subparagraph of Article 300(2) thereof;

Having regard to the proposal from the Commission,

Whereas:

(1) the Association Agreement between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, signed in Brussels on 18 November 2002, provides for the Association Council established by the Agreement to take Decisions on certain aspects of its implementation and in particular for accelerating the elimination of a customs duty or otherwise improve conditions of access for certain products.

(2) The Commission has negotiated with Chile the elimination of customs duties on imports into Chile of wines, spirit and aromatised drinks originating in the Community of headings 2204, 2205, 2206, 2207 and 2208.

(3) The Community position on the Association Council Decision reflecting this outcome should be adopted,

HAS DECIDED AS FOLLOWS:

Sole Article

The annexed decision is adopted as a Community position within the EU-Chile Association Council.

Done at Brussels,

For the Council

The President

ANNEX

DECISION OF THE EUROPEAN UNION – CHILE ASSOCIATION COUNCIL

No..../2005

of [date]

eliminating customs duties of wines, spirit drinks and aromatised drinks listed in Annex II of the EU-Chile Association Agreement

THE ASSOCIATION COUNCIL,

Having regard to the Association Agreement between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, signed in Brussels on 18 November 2002 (hereafter “Association Agreement”) and in particular Article 60(5) thereof;

Whereas:

(1) Article 60(5) of the Association Agreement empowers the Association Council to take decisions in order to accelerate the reduction of customs duties more rapidly than is provided for in Article 72, or otherwise improve the conditions of access under such Article;

(2) Such decisions supersede the terms established in Article 72 for the product concerned;

HAS DECIDED AS FOLLOWS:

Article 1

Chile shall eliminate the customs duties applicable to wines, spirit drinks and aromatised drinks contained in Annex II of the Association Agreement originating in the Community, as provided for in the Annex to this Decision.

Article 2

This Decision supersedes the terms established in Article 72 of the Association Agreement with respect to imports into Chile of the products concerned.

Article 3

This Decision shall enter into force sixty days after the day of its adoption.

Done at

For the Association Council

ANNEX

Products for which Chile eliminates customs duties on goods originating in the Community on the date of entry into force of this Decision:

Partida S.A. | Glosa | Base | Categoría |

2204 | Vino de uvas frescas, incluso encabezado, mosto de uva, excepto el de la partida 2009 |

2204 10 00 | - Vino espumoso | 6 | Year 0 |

- los demás vinos; mosto de uva en el que la fermentación se ha impedido o cortado añadiendo alcohol: |

2204 21 | -- en recipientes con capacidad inferior o igual a 2 l: |

--- Vinos blancos con denominación de origen: |

2204 21 11 | ---- Sauvignon blanc | 6 | Year 0 |

2204 21 12 | ---- Chardonnay | 6 | Year 0 |

2204 21 13 | ---- Mezclas | 6 | Year 0 |

2204 21 19 | ---- los demás | 6 | Year 0 |

--- Vinos tintos con denominación de origen: |

2204 21 21 | ---- Cabernet sauvignon | 6 | Year 0 |

2204 21 22 | ---- Merlot | 6 | Year 0 |

2204 21 23 | ---- Mezclas | 6 | Year 0 |

2204 21 29 | ---- los demás | 6 | Year 0 |

2204 21 30 | --- los demás vinos con denominación de origen | 6 | Year 0 |

2204 21 90 | --- los demás | 6 | Year 0 |

2204 29 | -- los demás: |

--- Mosto de uva fermentado parcialmente y, apagado con alcohol (incluidas las mistelas): |

2204 29 11 | ---- Tintos | 6 | Year 0 |

2204 29 12 | ---- Blancos | 6 | Year 0 |

2204 29 19 | ---- los demás | 6 | Year 0 |

--- los demás: |

2204 29 91 | ---- Tintos | 6 | Year 0 |

2204 29 92 | ---- Blancos | 6 | Year 0 |

2204 29 99 | ---- los demás | 6 | Year 0 |

2204 30 | - los demás mostos de uva: |

-- Tintos: |

2204 30 11 | --- Mostos concentrados | 6 | Year 0 |

2204 30 19 | --- los demás | 6 | Year 0 |

-- Blancos: |

2204 30 21 | --- Mostos concentrados | 6 | Year 0 |

2204 30 29 | --- los demás | 6 | Year 0 |

2204 30 90 | -- los demás | 6 | Year 0 |

2205 | Vermut y demás vinos de uvas frescas preparados con plantas o sustancias aromáticas |

2205 10 | - en recipientes con capacidad inferior o igual a 2 l : |

2205 10 10 | -- vinos con pulpa de fruta | 6 | Year 0 |

2205 10 90 | -- los demás | 6 | Year 0 |

2205 90 00 | - los demás | 6 | Year 0 |

2206 00 00 | Las demás bebidas fermentadas (por ejemplo: sidra, perada, aguamiel); mezclas de bebidas fermentadas y mezclas de bebidas fermentadas y bebidas no alcohólicas, no expresadas ni comprendidas en otra parte | 6 | Year 0 |

2207 | Alcohol etílico sin desnaturalizar con grado alcohólico volumétrico superior o igual al 80 % vol; alcohol etílico y aguardiente desnaturalizados, de cualquier graduación |

2207 10 00 | - Alcohol etílico sin desnaturalizar con grado alcohólico volumétrico superior o igual al 80 % vol | 6 | Year 0 |

2207 20 00 | - Alcohol etílico y aguardiente desnaturalizados, de cualquier graduación | 6 | Year 0 |

2208 | Alcohol etílico sin desnaturalizar con grado alcohólico volumétrico inferior al 80 % vol; aguardientes, licores y demás bebidas espirituosas |

2208 20 | - Aguardiente de vino o de orujo de uvas: |

2208 20 10 | -- de uva (pisco y similares) |

ex 2208 20 10 | --- Cognac, Amagnac, Grappa y Brandy de jerez | 6 | Year 0 |

ex 2208 20 10 | --- los demás | 6 | Year 0 |

2208 20 90 | -- los demás |

ex 2208 20 90 | --- Cognac, Amagnac, Grappa y Brandy de jerez | 6 | Year 0 |

ex 2208 20 90 | --- los demás | 6 | Year 0 |

2208 30 | - Whisky: |

2208 30 10 | -- de envejecimiento inferior o igual a 6 años | 6 | Year 0 |

2208 30 20 | -- de envejecimiento superior a 6 años pero inferior o igual a 12 años | 6 | Year 0 |

2208 30 90 | -- los demás | 6 | Year 0 |

2208 40 | - Ron y demás aguardientes de caña: |

2208 40 10 | -- Ron | 6 | Year 0 |

2208 40 90 | -- los demás | 6 | Year 0 |

2208 50 | - «Gin» y ginebra: |

2208 50 10 | -- «Gin» | 6 | Year 0 |

2208 50 20 | -- Ginebra | 6 | Year 0 |

2208 60 00 | - Vodka | 6 | Year 0 |

2208 70 00 | - Licores | 6 | Year 0 |

2208 90 | - los demás: |

2208 90 10 | -- Tequila | 6 | Year 0 |

2208 90 90 | -- los demás | 6 | Year 0 |

FINANCIAL STATEMENT |

1. | BUDGET HEADING: 05 02 09 | APPROPRIATIONS: 1 227,84 Mio € |

2. | TITLE: Council Decision on a Community position within the EU-Chile Association Council concerning the liberalisation of the tariff treatment of wines, spirit drinks and aromatised drinks listed in Annex II of the Association Agreement between the European Community and the Republic of Chile |

3. | LEGAL BASIS: Article 133 of the EC Treaty |

4. | AIMS: Under this EU-Chile Association Council Decision, Chile will eliminate imports duties on wines, spirit drinks and aromatised drinks originating in the Community. |

5. | FINANCIAL IMPLICATIONS | 12 MONTH PERIOD (EUR million) | CURRENT FINANCIAL YEAR 2005 (EUR million) | FOLLOWING FINANCIAL YEAR 2006 (EUR million) |

5.0 | EXPENDITURE – CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTIONS) – NATIONAL AUTHORITIES – OTHER | – | – | – |

5.1 | REVENUE – OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) – NATIONAL | – | – | – |

2007 | 2008 | 2009 | 2010 |

5.0.1 | ESTIMATED EXPENDITURE | – | – | – | – |

5.1.1 | ESTIMATED REVENUE | – | – | – | – |

5.2 | METHOD OF CALCULATION: |

6.0 | CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? |

6.1 | CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? |

6.2 | WILL A SUPPLEMENTARY BUDGET BE NECESSARY? |

6.3 | WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? |

OBSERVATIONS: The tariff elimination schedule of concerned products refers to EU originating products imported into Chile; as it is not expected that the trade volume will change significantly, it can be assumed that there will be no implication with the Community budget. |

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[1] OJ L 352, 20.12.2002, p. 19.

[2] OJ L 352, 20.12.2002, pp. 652–654 (Annex II).