52008PC0309

[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 21.5.2008

COM(2008) 309 final

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Community within the Association Council established by the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part, with regard to the establishment of a tariff dismantling schedule for products appearing in Annex IV to the Association Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

Annex IV to the Association Agreement between the European Communities and their Member States and the Kingdom of Jordan (hereinafter, "Association Agreement") includes a list of products (including textiles, used cars, furniture and sensitive processed agricultural products) exported from the EU to Jordan. These exports are worth about € 150 million per year and were excluded from immediate tariff dismantling when the Association Agreement entered into force on 1 May 2002. Article 11(5) of the Association Agreement foresees that, four years after the date of entry into force, the joint Association Council should establish a tariff dismantling schedule for these products.

The Commission carried out negotiations on the products listed in Annex IV with Jordan throughout 2006 and 2007. The draft agreement reached with Jordan foresees that tariff dismantling for products listed in Annex IV should begin in May 2008 based on 3 lists of products: the tariffs for the products on the first list will be dismantled over 2 years (all tariff lines falling under "ex 8703" - used vehicles) and the tariffs for the products on the second list over 7 years (mostly textiles and furniture). The third list consists of sensitive processed agricultural products for which tariffs will remain in place.

Particular difficulties were encountered with respect to beer (HS 2203) and vermouth (HS 2205). While showing understanding for Jordan's arguments about cultural sensitivities to imports of alcoholic beverages, the Commission decried Jordan's discriminatory treatment compared to imports of beer and vermouth under their FTA with the USA. The FTA with the USA foresees that duties will be reduced to 44.5% of the original duty level as of 2010. The Jordanian import market for beer and especially of vermouth is very small and currently dominated by imports from the Community.

While tariffs on imports of EC beer and vermouth will remain in place, Jordan agreed to jointly monitor the evolution of imports of those two products in the EC-Jordan Industry, Trade and Services sub-committee (which usually meets once a year), to assess any significant reduction of imports from the Community caused by the preferential treatment accorded to the USA. Where a significant reduction of beer and vermouth imports from the Community was proved, it was agreed that the Jordanian authorities and the Commission should review the applicable customs duties on those two products with a view to remedying the identified imbalance.

In order to facilitate the entry into effect of the tariff dismantling schedule by 1 May 2008, a written procedure for the adoption of the corresponding decision by the Association Council is envisaged.

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Community within the Association Council established by the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part, with regard to the establishment of a tariff dismantling schedule for products appearing in Annex IV to the Association Agreement

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission[1],

Whereas:

(1) The Euro-Mediterranean Agreement establishing an Association between European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part, provides in Article 11 (5) thereof that the Association Council is to re-examine the arrangements to be applied to products listed in Annex IV to the Agreement four years after the date of its entry into force, and at the time of that re-examination, establish a tariff dismantling schedule for those products.

(2) The tariff dismantling schedule for products appearing in Annex IV to the Association Agreement has been negotiated by the European Commission and the Hashemite Kingdom of Jordan,

HAS DECIDED AS FOLLOWS:

Sole article

The position to be taken by the Community within the Association Council with regard to the establishment of a tariff dismantling schedule for products appearing in Annex IV to the Association Agreement shall be based on the draft Decision annexed hereto.

Done at Brussels, […]

For the Council

The President

[…]

ANNEX

Decision of the Association Council established by the Euro-Mediterranean Agreement establishing an Association between, the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part, with regard to the establishment of a tariff dismantling schedule for products appearing in Annex IV to the Association Agreement

THE ASSOCIATION COUNCIL,

Having regard to the Euro-Mediterranean Agreement establishing an Association between, the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part (hereinafter the "Association Agreement"), signed in Brussels on 24 November 1997 and which entered into force on 1 May 2002, and in particular Articles 6, and 11(5) thereof,

Whereas:

(1) Under the Association Agreement the Community and Jordan are gradually to establish a free trade area over a transitional period lasting a maximum of 12 years starting from the date of the entry into force of the Association Agreement, in accordance with the provisions of the Agreement and in conformity with those of the General Agreement on Tariffs and Trade (1994).

(2) In accordance with the Association Agreement, the Association Council is to re-examine the arrangements to be applied to products listed in Annex IV to the agreement, containing a list of industrial products originating in the Community, four years after the date of its entry into force, and at the time of that re-examination, establish a tariff dismantling schedule for those products.

(3) The tariff dismantling schedule for products appearing in Annex IV to the Association Agreement has been negotiated by the European Commission and Jordan,

HAS DECIDED AS FOLLOWS:

Article 1

Imports into Jordan of the products originating in the Community listed in Annex IV to the Association Agreement shall be subject to the tariff dismantling schedule detailed in Article 2. The schedule shall apply with effect from 1 May 2008.

Article 2

1. Customs duties applicable on imports into Jordan of products originating in the Community listed in list (1) of the Annex to this Decision shall be eliminated over two years, beginning on 1 May 2008, and such products shall be duty free with effect from 1 May 2009. The phasing out of the customs duties shall take place in accordance with the following schedule:

(a) on 1 May 2008, the duty shall be reduced to 3% of the basic duty;

(b) on 1 May 2009, the remaining duty shall be abolished.

2. Customs duties applicable on imports into Jordan of products originating in the Community listed in list (2) of the Annex to this Decision shall be eliminated over seven years beginning on 1 May 2008, and such products shall be duty free with effect from 1 May 2014. The phasing out of the customs duties shall take place in accordance with the following schedule:

(a) on 1 May 2008, the duty shall be reduced to 90% of the basic duty;

(b) on 1 May 2009, the duty shall be reduced to 80% of the basic duty;

(c) on 1 May 2010, the duty shall be reduced to 70% of the basic duty;

(d) on 1 May 2011, the duty shall be reduced to 60% of the basic duty;

(e) on 1 May 2012, the duty shall be reduced to 50% of the basic duty;

(f) on 1 May 2013, the duty shall be reduced to 40% of the basic duty;

(g) on 1 May 2014, the remaining duty shall be abolished.

3. Customs duties applicable on imports into Jordan of products originating in the Community listed in list (3) of the Annex to this Decision shall not be abolished. The Jordanian authorities and European Commission shall jointly review in the industry, trade and services sub-committee the evolution of Community imports into Jordan of beer (HS 2203) and vermouth (HS 2205), to assess any significant reduction of Community imports caused by the preferential treatment accorded to other trading partners. In the event where a significant reduction of Community imports was proved, the Jordanian authorities and the European Commission shall review the applicable customs duties on those two products with a view to remedying the identified imbalance.

Article 3

This Decision shall enter into force the day of its adoption by the Association Council.

Done at …,

For the Association Council

The President

List 1 |

HS Code | Description |

ex 870310000(*) | - Vehicles specially designed for travelling on snow; golf cars and similar vehicles |

ex 870321300(*) | --- Vehicles specially designed as ambulances and hearses |

ex 870321400(*) | --- Furnished vehicles prepared for picnics (campers) |

ex 870321900(*) | --- Other |

ex 870322300(*) | --- Vehicles specially designed as ambulances and hearses |

ex 870322400(*) | --- Furnished vehicles prepared for picnics (campers) |

ex 870322900(*) | --- Other |

ex 870323130(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870323140(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870323190(*) | ---- Other |

ex 870323210(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870323220(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870323290(*) | ---- Other |

ex 870323310(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870323320(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870323390(*) | ---- Other |

ex 870324100(*) | --- Vehicles specially designed as ambulances and hearses |

ex 870324200(*) | --- Furnished vehicles prepared for picnics (campers) |

ex 870324900(*) | --- Other |

ex 870331300(*) | --- Vehicles specially designed as ambulances and hearses |

ex 870331400(*) | --- Furnished vehicles prepared for picnics (campers) |

ex 870331900(*) | --- Other |

ex 870332130(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870332140(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870332190(*) | ---- Other |

ex 870332210(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870332220(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870332290(*) | ---- Other |

ex 870333110(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870333120(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870333190(*) | ---- Other |

ex 870333210(*) | ---- Vehicles specially designed as ambulances and hearses |

ex 870333220(*) | ---- Furnished vehicles prepared for picnics (campers) |

ex 870333290(*) | ---- Other |

ex 870390300(*) | --- Vehicles specially designed as ambulances and hearses |

ex 870390400(*) | --- Furnished vehicles prepared for picnics (campers) |

ex 870390590(*) | ---- Other |

ex 870390600(*) | ---- Others, of a cylinder capacity exceeding 2000 cc but not exceeding 2500 cc. |

ex 870390700(*) | ---- Others, of a cylinder capacity exceeding 2500 cc |

ex 870390900(*) | --- Other |

(*) Used vehicles defined as vehicles with more than six months after registration and having run at least 6 000 km.

List 2 |

HS Code | Description |

570110000 | - Of wool or fine animal hair |

570190000 | - Of other textile materials |

570210000 | - Kelem, Schumacks, Karamanie and similar hand-woven rugs |

570220000 | - Floor coverings of coconut fibres (coir) |

570231000 | -- Of wool or fine animal hair |

570239000 | -- Of other textile materials |

570241000 | -- Of wool or fine animal hair |

570249000 | -- Of other textile materials |

570251000 | -- Of wool or fine animal hair |

570259000 | -- Of other textile materials |

570291000 | -- Of wool or fine animal hair |

570299000 | -- Of other textile materials |

570310000 | - Of wool or fine animal hair |

570390000 | - Of other textile materials |

570410000 | - Tiles, having a maximum surface area of 0.3 m² |

570500000 | Other carpets and other textile floor coverings, whether or not made up. |

610110000 | - Of wool or fine animal hair |

610190000 | - Of other textile materials |

610210000 | - Of wool or fine animal hair |

610230000 | - Of man-made fibres |

610290000 | - Of other textile materials |

610312000 | -- Of synthetic fibres |

610319000 | -- Of other textile materials |

610321000 | -- Of wool or fine animal hair |

610322000 | -- Of cotton |

610323000 | -- Of synthetic fibres |

610329000 | -- Of other textile materials |

610339000 | -- Of other textile materials |

610349000 | -- Of other textile materials |

610412000 | -- Of cotton |

610413000 | -- Of synthetic fibres |

610423000 | -- Of synthetic fibres |

610429000 | -- Of other textile materials |

610431000 | -- Of wool or fine animal hair |

610439000 | -- Of other textile materials |

610444000 | -- Of artificial fibres |

610449000 | -- Of other textile materials |

610459000 | -- Of other textile materials |

610461000 | -- Of wool or fine animal hair |

610469000 | -- Of other textile materials |

610610000 | - Of cotton |

610811000 | -- Of man-made fibres |

610819000 | -- Of other textile materials |

610829000 | -- Of other textile materials |

610832000 | -- Of man-made fibres |

610839000 | -- Of other textile materials |

610899000 | -- Of other textile materials |

611090000 | - Of other textile materials |

611190000 | - Of other textile materials |

611220000 | - Ski suits |

611231000 | -- Of synthetic fibres |

611239000 | -- Of other textile materials |

611241000 | -- Of synthetic fibres |

611249000 | -- Of other textile materials |

611300000 | Garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07. |

611410000 | - Of wool or fine animal hair |

611490000 | - Of other textile materials |

611599900 | --- Other |

611610000 | - Impregnated, coated or covered with plastics or rubber |

611691000 | -- Of wool or fine animal hair |

611692000 | -- Of cotton |

611693000 | -- Of synthetic fibres |

611699000 | -- Of other textile materials |

611710000 | - Shawls, scarves, mufflers, mantillas, veils and the like |

611720000 | - Ties, bow ties and cravats |

611780000 | - Other accessories |

611790900 | --- Other |

620113000 | -- Of man-made fibres |

620119000 | -- Of other textile materials |

620199000 | -- Of other textile materials |

620219000 | -- Of other textile materials |

620291000 | -- Of wool or fine animal hair |

620299000 | -- Of other textile materials |

620590000 | - Of other textile materials |

620610000 | - Of silk or silk waste |

620640000 | - Of man-made fibres |

620690000 | - Of other textile materials |

620711000 | -- Of cotton |

620719000 | -- Of other textile materials |

620722000 | -- Of man-made fibres |

620729000 | -- Of other textile materials |

620792000 | -- Of man-made fibres |

620799000 | -- Of other textile materials |

620811000 | -- Of man-made fibres |

620819000 | -- Of other textile materials |

620821000 | -- Of cotton |

620822000 | -- Of man-made fibres |

620829000 | -- Of other textile materials |

620891000 | -- Of cotton |

620892000 | -- Of man-made fibres |

620899000 | -- Of other textile materials |

620910000 | - Of wool or fine animal hair |

620990000 | - Of other textile materials |

621010000 | - Of fabrics of heading 56.02 or 56.03 |

621040000 | - Other men's or boys' garments |

621050000 | - Other women's or girls' garments |

621111000 | -- Men's or boys' |

621112000 | -- Women's or girls' |

621120000 | - Ski suits |

621131000 | -- Of wool or fine animal hair |

621133000 | -- Of man-made fibres |

621139000 | -- Of other textile materials |

621141000 | -- Of wool or fine animal hair |

621143000 | -- Of man-made fibres |

621149000 | -- Of other textile materials |

621220000 | - Girdles and panty-girdles |

621230000 | - Corselettes |

621290000 | - Other |

621310000 | - Of silk or silk waste |

621320000 | - Of cotton |

621390000 | - Of other textile materials |

621600000 | Gloves, mittens and mitts. |

621710000 | - Accessories |

621790900 | --- Other |

630900100 | --- Footwear |

630900900 | --- Other |

640110000 | - Footwear incorporating a protective metal toe-cap |

640191000 | -- Covering the knee |

640192000 | -- Covering the ankle but not covering the knee |

640199000 | -- Other |

640212000 | -- Ski-boots, cross-country ski footwear and snowboard boots |

640219000 | -- Other |

640220000 | - Footwear with upper straps or thongs assembled to the sole by means of plugs |

640230000 | - Other footwear, incorporating a protective metal toe-cap |

640291000 | -- Covering the ankle |

640299000 | -- Other |

640510000 | - With uppers of leather or composition leather |

640520000 | - With uppers of textile materials |

640590000 | - Other |

640610000 | - Uppers and parts thereof, other than stiffeners |

640620000 | - Outer soles and heels, of rubber or plastics |

640691000 | -- Of wood |

640699000 | -- Of other materials |

940120000 | - Seats of a kind used for motor vehicles |

940130000 | - Swivel seats with variable height adjustment |

940140000 | - Seats other than garden seats or camping equipment, convertible into beds |

940150000 | - Seats of cane, osier, bamboo or similar materials |

940161000 | -- Upholstered |

940169000 | -- Other |

940171000 | -- Upholstered |

940179000 | -- Other |

940180900 | --- Other |

940190000 | - Parts |

940210100 | --- Barbers' chairs |

940310000 | - Metal furniture of a kind used in offices |

940320000 | - Other metal furniture |

940330000 | - Wooden furniture of a kind used in offices |

940340000 | - Wooden furniture of a kind used in the kitchen |

940350000 | - Wooden furniture of a kind used in the bedroom |

940360000 | - Other wooden furniture |

940370000 | - Furniture of plastics |

940380000 | - Furniture of other materials, including cane, osier, bamboo or similar materials |

940390000 | - Parts |

940410000 | - Mattress supports |

940421000 | -- Of cellular rubber or plastics, whether or not covered |

940429000 | -- Of other materials |

940430000 | - Sleeping bags |

940490000 | - Other |

940510000 | - Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares |

940520000 | - Electric table, desk, bedside or floor-standing lamps |

940530000 | - Lighting sets of a kind used for Christmas trees |

940540900 | --- other |

940550900 | --- Other |

940560000 | - Illuminated signs, illuminated name-plates and the like |

940591900 | --- Other |

940592900 | --- Other |

940599900 | --- Other |

940600900 | --- Other |

List 3 |

HS Code | Description |

220300000 | Beer made from malt. |

220510000 | - Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances, in containers holding 2 litres or less |

220590000 | - Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances : other |

240210000 | - Cigars, cheroots and cigarillos, containing tobacco |

240220000 | - Cigarettes containing tobacco |

240290100 | --- Cigars |

240290200 | --- Cigarettes |

240399900 | --- Other |

[1] OJ C […], […], p. […].