Introductory text

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,

Whereas:

The Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part^f1, hereinafter referred to as ‘the Agreement’, lays down the tariff preferences applicable to products originating in Chile in accordance with Annex III to the Agreement.

Decision 2002/979/EC^f2 on the signature and provisional application of certain provisions of the Agreement provides that the tariff preferences laid down in the Agreement shall be applicable on a provisional basis pending its entry into force.

The base rates for calculating tariff reductions are those set out in Annex I to the Agreement.

The same methods of calculation should apply to ad valorem rates of duty as to specific duties except in the cases specified in Article 71(2) and (3) of the Agreement.

The Agreement stipulates that certain products originating in Chile may be imported into the Community within the limits of tariff quotas, at a reduced or a zero rate of customs duty. It is necessary to specify the products eligible for those tariff measures, their volumes and duties and the methods for calculating the reductions.

It is appropriate to provide that the tariff quotas should be managed, in general, on a first-come first-served basis in accordance with Articles 308a, 308b and 308c of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code^f3. The tariff quota for certain products should be managed under a system which is based on import and export licences and which should be carried out by the Commission.

The Combined Nomenclature codes mentioned in this Regulation are those of the Combined Nomenclature for 2003, as provided in Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff^f4. Amendments to the Combined Nomenclature and Taric codes adopted after 2002 should not result in changes of substance in agreements or other acts concluded between the Community and Chile. It is appropriate, therefore, to provide that the amendments and technical adaptations to the Annex to the Regulations made necessary by amendments to the Combined Nomenclature may be adopted by the Commission, assisted by the Customs Code Committee, 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^f5. It is also appropriate to provide that the same procedure should be followed for the adoption of amendments and technical adaptations to the Annex to the Regulations required by the amendments of the Agreement, or decisions taken thereunder, or other agreements between the parties.

In the interest of combating fraud, it is necessary to provide that preferential imports into the Community may be subject to surveillance,

HAS ADOPTED THIS REGULATION: