Council Regulation (EC) No 2501/2001 of 10 December 2001 applying a scheme of generalised tariff preferences for the period from 1 January 2002 to 31 December 2004

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission^f1,

Having regard to the opinion of the European Parliament^f2,

Having regard to the Opinion of the Economic and Social Committee^f3,

Whereas:

Since 1971, the Community has granted trade preferences to developing countries, in the framework of its scheme of generalised tariff preferences.

The Community's common commercial policy must be consistent with and consolidate the objectives of development policy, in particular the eradication of poverty and the promotion of sustainable development in the developing countries.

A communication from the Commission to the Council of 1 June 1994 sets out the guidelines for the application of the scheme of generalised tariff preferences for the period 1995 to 2004.

Regulation (EC) No 2820/98^f4 implements the scheme of generalised tariff preferences until 31 December 2001. Thereafter, the scheme should continue to apply until 31 December 2004, in accordance with the guidelines.

The scheme should incorporate the provisions of Regulation (EC) No 416/2001 extending duty-free access without any quantitative restrictions to products originating in the least developed countries. The benefit of this arrangement should be granted to all countries recognized and classified by the United Nations as least developed countries.

The special arrangements to combat drug production and trafficking should be closely monitored.

Preferences should be differentiated according to the sensitivity of products. It would be sufficient to differentiate between two product categories, non-sensitive and sensitive products.

Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should enjoy a tariff reduction.

Such reduction should be sufficiently attractive in order to motivate traders to use the opportunities offered by the scheme. As far as ad valorem duties are concerned, the reduction should therefore be a flat rate of 3,5 percentage points of the most favoured nation (MFN) duty rate. Specific duties should be reduced by 30 %. Where duties specify a minimum duty, that minimum duty should not apply.

Where preferential duty rates, calculated in accordance with Regulation (EC) 2820/98, provide a higher tariff reduction, they should continue to apply.

Duties should be totally suspended where preferential treatment results in ad valorem duties of 1 % or less or in specific duties of EUR 2 or less.

The provisions on the exclusion of beneficiary countries on grounds of the degree of their development should be applied once a year. However, countries should be excluded only where they meet the criteria for exclusion during three consecutive years, and they should be readmitted where they do not meet those criteria during three consecutive years.

During the first year of application of this Regulation, the countries previously excluded should remain excluded.

The provisions on graduation of sectors should be applied once a year. However, sectors should be graduated only where they meet the criteria for graduation during three consecutive years, and they should be readmitted where they do not meet those criteria during three consecutive years.

During the first year of application of this Regulation, the sectors previously graduated should remain graduated.

The tariff preferences under the special incentive arrangements should be as high as the preferences offered under the general arrangements, thus doubling the latter.

The special incentive arrangements should grant tariff preferences in all sectors that had been graduated, equivalent to the preferences available under the general arrangements.

The special incentive arrangements for the protection of labour rights should require effective application of all standards referred to in the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work.

The available assessments, comments, decisions, recommendations and conclusions of the various supervisory bodies of the ILO, including in particular Article 33 procedures should, serve as the point of departure for the examination of requests for the special incentive arrangements for the protection of labour rights, as well as for the investigation as to whether temporary withdrawal is justified on the grounds of violations of ILO Conventions.

The general rules concerning proof of origin and methods of administrative cooperation laid down in Commission Regulation (EEC) No 2454/93^f5 and the rules concerning the customs debt, in particular Article 220(2)(b) of Regulation (EEC) No 2913/92^f6, apply to tariff preferences, including those granted under the special incentive arrangements for the protection of labour rights.

The special incentive arrangements for the protection of the environment should take into account new developments concerning internationally agreed standards and certification schemes.

The reasons for temporary withdrawal should include serious and systematic violation of any standards referred to in the ILO Declaration on Fundamental Principles and Rights at Work.

Temporary withdrawal of all tariff preferences in respect of imports of products originating in Myanmar should remain in force.

The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission^f7,

HAS ADOPTED THIS REGULATION: