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AGREEMENT

in the form of an Exchange of Letters between the European Economic Community and the Republic of Austria on the reciprocal establishment of tariff quotas for certain quality wines

A. Letter from the Community

Brussels, . . . . . .

Sir,

I have the honour to refer to the consultations which have taken place between the European Economic Community and the Republic of Austria on the reciprocal establishment of tariff quotas for certain quality wines. Since it is in the interests of the Community and of Austria to foster, within the meaning of Article 15 of the Agreement between the European Economic Community and the Republic of Austria, signed on 22 July 1972, the development of trade in this sector, the two Parties have agreed to apply the following provisions:

1. Austria shall open an annual zero-duty tariff quota for 85 000 hectolitres of quality wines produced in specified regions (quality wines psr) as referred to in Regulation (EEC) No 823/87, other than sparkling wines, originating in the Community, in containers holding two litres or less, falling within subheading ex 2204 21 A of the Austrian customs tariff.

A volume of 17 000 hectolitres of the quota shall be reserved for Spain.

However, from 1 March of each quota period Austria shall grant all Member States access to the outstanding balance of the volume reserved for Spain which Spain has not used by 1 March.

Until Regulation (EEC) No 823/87 is implemented by Portugal, the Portuguese quality wines listed in Annex I shall be considered to be quality wines psr.

2. For as long as Austria imposes quantitative restrictions on imports of wine, the quantity reserved for the Community in the annual quota opened by Austria for quality wines shall be at least equal to the quota of 85 000 hectolitres referred to above.

3. Austria shall also open an annual zero-duty tariff quota for 2 000 hectolitres sparkling quality wines produced in specified regions, as referred to in Regulation (EEC) No 823/87, originating in the Community, in containers holding two litres or less, falling within subheading ex 2204 10 of the Austrian customs tariff.

4. The Community shall open an annual zero-duty tariff quota for 85 000 hectolitres of quality wines which comply with the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within CN code ex 2204 21.

However, imports into Spain and Portugal of wine originating in Austria shall be subject to duties equal to those applied by Spain and Portugal respectively to imports from the Community as constituted on 31 December 1985.

5. The Community shall also open an annual zero-duty tariff quota for 2 000 hectolitres of sparkling quality wines which comply with the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within CN code ex 2204 10.

However, imports into Spain and Portugal of sparkling quality wines originating in Austria shall be subject to duties equal to those applied by Spain and Portugal respectively to imports from the Community as constituted on 31 December 1985. 6. The quota period for the quotas referred to in points 1 to 5 above shall run from 1 July of each year to 30 June of the following year (1).

7. Consignments of wine covered by the concessions provided for in this Agreement must be accompanied by an import certificate, which shall be valid from the date of issue until the end of the fourth month following the month of issue but not valid after the end of the quota period concerned or, where appropriate, after 1 March as referred to in the third subparagraph of point 1 or 15 May 1989 as referred to in footnote (1) to point 6. The system for granting certificats shall be administered in a way which permits the agreed quantities to be imported. To that end the two Parties shall regularly exchange information on the number of licences issued and used. It is further agreed that the granting of an import certificate may not be linked to any undertaking to buy a given quantity of local wine.

The wine in question must be accompanied by a certificate issued by a mutually recognized official body certifying that it complies with the provisions of point 1 to 5; the list of official bodies shall be drawn up by agreement between the Parties.

8. The Contracting Parties shall ensure that the agreed mutual advantages are not jeopardized by other measures.

9. Consultations shall be held at the request of either Party on any problem relating to the operation of this Agreement, which may be amended by agreement between the Parties.

10. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of Austria.

11. This Agreement shall enter into force on 1 January 1989 and shall apply for an initial period ending on 30 June 1992. During the second half of 1991 consultations shall be held to decide whether it should be extended and, if so, in what form.

I should be obliged if you would confirm that your Government is in agreement with the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the

Council of the European Communities

(1) However, for the first half of 1989, the quota volumes shall be 50 % of the annual volumes and the date of 1 March referred to in the third subparagraph of point 1 shall be replaced by 15 May 1989.

B. Letter from the Republic of Austria

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'I have the honour to refer to the consultations which have taken place between the European Economic Community and the Republic of Austria on the reciprocal establishment of tariff quotas for certain quality wines. Since it is in the interests of the Community and of Austria to foster, within the meaning of Article 15 of the Agreement between the European Economic Community and the Republic of Austria, signed on 22 July 1972, the development of trade in this sector, the two Parties have agreed to apply the following provisions:

1. Australia shall open an annual zero-duty tariff quota for 85 000 hectolitres of quality wines produced in specified regions (quality wines psr) as referred to in Regulation (EEC) No 823/87, other than sparkling wines, originating in the Community, in containers holding two litres or less, falling within subheading ex 2204 21 A of the Austrian customs tariff.

A volume of 17 000 hectolitres of the quota shall be reserved for Spain.

However, from 1 March of each quota period Austria shall grant all Member States access to the outstanding balance of the volume reserved for Spain which Spain has not used by 1 March.

Until Regulation (EEC) No 823/87 is implemented by Portugal, the Portuguese quality wines listed in Annex I shall be considered to be quality wines psr.

2. For as long as Austria imposes quantitative restrictions on imports of wine, the quantity reserved for the Community in the annual quota opened by Austria for quality wines shall be at least equal to the quota of 85 000 hectolitres referred to above.

3. Austria shall also open an annual zero-duty tariff quota for 2 000 hectolitres of sparkling quality wines produced in specified regions, as referred to in Regulation (EEC) No 823/87, originating in the Community in containers holding two litres or less, falling within subheading ex 2204 10 of Austrian customs tariff.

4. The Community shall open an annual zero-duty tariff quota for 85 000 hectolitres quality wines which comply with the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within CN code ex 2204 21.

However, imports into Spain and Portugal of wine originating in Austria shall be subject to duties equal to those applied by Spain and Portugal respectively to imports from the Community as constituted on 31 December 1985.

5. The Community shall also open an annual zero-duty tariff quota for 2 000 hectolitres of sparkling quality wines which comply with the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within CN code ex 2204 10.

However, imports into Spain and Portugal of sparkling quality wines originating in Austria shall be subject to duties equal to those applied by Spain and Portugal respectively to imports from the Community as constituted on 31 December 1985.

6. The quota period for the quotas referred to in points 1 to 5 above shall run from 1 July of each year to 30 June of the following year (1).

7. Consignments of wine covered by the concessions provided for in this Agreement must be accompanied by an import certificate, which shall be valid from the date of issue but not valid after the end of the quota period concerned or, where appropriate, after 1 March as referred to in the third subparagraph of point 1 or 15 May 1989 as referred to in footnote (1) to point 6. The system for granting certificates shall be administered in a way which permits the agreed quantities to be imported. To that end the two Parties shall regularly exchange information on the number of licences issued and used. It is further agreed that the granting of an import certificate may not be linked to any undertaking to buy a given quantity of local wine.

The wine in question must be accompanied by a certificate issued by a mutually recognized official body certifying that it complies with the provisions of points 1 to 5; the list of official bodies shall be drawn up by agreement between the Parties.

8. The Contracting Parties shall ensure that the agreed mutual advantages are not jeopardized by other measures.

9. Consultations shall be held at the request of either Party on any problem relating to the operation of this Agreement, which may be amended by agreement between the Parties.

10. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of Austria.

11. This Agreement shall enter into force on 1 January 1989 and shall apply for an initial period ending on 30 June 1992. During the second half of 1991 consultations shall be held to decide whether it should be extended and, if so, in what form.

I should be obliged if you would confirm that your Government is in agreement with the contents of this letter.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Republic of Austria

(1) However, for the first half of 1989, the quota volumes shall be 50 % of the annual volumes and the date of 1 March referred to in the third subparagraph of point 1 shall be replaced by 15 May 1989.

ANNEX

List of wines produced in Portugal to be considered to be quality wines produced in specified regions

1. Wines produced in accordance with the Portuguese legislation in force concerning the 'denominação de origem controlada':

- Dão,

- Vinho Verde,

- Douro,

- Bucelas,

- Colares,

- Bairrada,

- Algarve (whether or not associated with one of the following terms: Lagoa, Lagos, Portimão or Tavira) and wines produced in accordance with the Portuguese legislation in force concerning the 'indicação de proveniência regulamentada',

- Trás-os-Montes,

- Beiras,

- Ribatejo-Oeste.

2. Liqueur wines produced in accordance with the Portuguese legislation in force concerning the 'denominação de origem controlada':

- Vinho do Porto, which may also bear the following names: Porto, vin de Porto, Oporto, Port, Port wine, Portwein, Portvin, Portwijn,

- Vinho da Madeira, which may also bear the following names: Madeira, Madeirawein, Madeira wine, vin de Madère, Madera, vino di Madera, Madeirawijn,

- Moscatel de Setúbal or Setúbal,

- Carcavelos.