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EXCHANGE OF LETTERS

Relating to paragraph 2 of Annex I to the Agreement on the conclusion of the

negotiations between the Argentine Republic and the European Economic

Community pursuant to Article XXIV.6 of GATT and concerning the import into the

Community of bran and sharps originating in Argentina

A. Letter from the Community

Brussels . . . . . .

Sir,

I have the honour to inform you as follows:

For the implementation of paragraph 2 of Annex I to the Agreement on the conclusion of the negotiations between the Argentine Republic and the European Economic Community it is agreed that the following provisions be adopted:

1. The variable component of the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling or other working of cereals, other than of maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff and originating in Argentina shall be as calculated in accordance with Article 2 of Council Regulation (EEC) No 2744/75 of 29 October 1975 on the import and export system for products processed from cereals and from rice, as last amended by Regulation (EEC) No 1588/86, less the amount specified in paragraph 3 below.

2. Paragraph 1 shall apply provided that Argentina levies on exports of the products referred to a special charge which is equal to the amount by which the variable component of the levy is reduced and is reflected in the Community import price.

3. The amount by which the variable component of the levy is reduced shall be equal to 40 % of the average of the variable components of the levies in force during the three months preceding the month in which the amount in question was fixed.

The amount shall be fixed by the Commission not later than the 10th day of the month preceding the quarter during which the amount shall apply.

'Quarter' shall mean a period of three months beginning on 1 February, l May, l August or 1 November in each year.

However, should the entry into force of the Agreement not coincide with the beginning of one of these quarters, the first reduction in the levy shall be applicable for the month or months of the current quarter.

4. Proof that the special charge on exports has been collected shall be provided by the insertion by the customs authorities under 'Remarks' on the movement certificate of one of the following endorsements:

Taxe spéciale à l'exportation appliquée

Saerlig udfoerselsafgift opkraevet

Sonderausfuhrabgabe erhoben

Special export charge collected

Applicata tassa speciale all'esportazione

Bijzondere uitvoerheffing voldaan

Tasa especial a la exportación aplicada

Aplicada taxa especial à exportaçào

Eidikós fóros poy échei efarmostheí katá tin exagogí

(signature and official stamp)

I should be grateful if you would acknowledge this letter and confirm the agreement of your Gouvernment with its contents.

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

On behalf of

the Council of the European Communities

B. Letter from the Government of the Argentine Republic

Brussels . . . . . .

Sir,

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

'For the implementation of paragraph 2 of Annex I to the Agreeement on the conclusion of the negotiations between the Argentine Republic and the European Economic Community it is agreed that the following provisions be adopted:

1. The variable component of the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling or other working of cereals, other than of maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff and originating in Argentina shall be as calculated in accordance with Article 2 of Council Regulation (EEC) No 2744/75 of 29 October 1975 on the import and export system for products processed from cereals and from rice, as last amended by Regulation (EEC) No 1588/86, less the amount specified in paragraph 3 below.

2. Paragraph 1 shall apply provided that Argentina levies on exports of the products referred to a special charge which is equal to the amount by which the variable component of the levy is reduced and is reflected in the Community import price.

3. The amount by which the variable component of the levy is reduced shall be equal to 40 % of the average of the variable components of the levies in force during the three months preceding the month in which the amount in question was fixed.

The amount shall be fixed by the Commission not later than the 10th day of the month preceding the quarter during which the amount shall apply.

"Quarter" shall mean a period of three months beginning on 1 February, 1 May, 1 August or 1 November in each year.

However, should the entry into force of the Agreement not coincide with the beginning of one of these quarters, the first reduction in the levy shall be applicable for the month or months of the current quarter.

4. Proof that the special charge on exports has been collected shall be provided by the insertion by the customs authorities under "Remarks" on the movement certificate of one of the following endorsements:

Taxe spéciale à l'exportation appliquée

Saerlig udfoerselsafgift opkraevet

Sonderausfuhrabgabe erhoben

Special export charge collected

Applicata tassa speciale all'esportazione

Bijzondere uitvoerheffing voldaan

Tasa especial a la exportación aplicada

Aplicada taxa especial à exportação

Eidikós fóros poy échei efarmostheí katá tin exagogí

(signature and official stamp)

I should be grateful if you would acknowledge this letter and confirm the agreement of your Government with its contents.'

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.

On behalf of

the Government of the Argentine Republic

1.2.3 // COMMISSION OF THE EUROPEAN COMMUNITIES Directorate-General External Relations // // Brussels . . . . . . 1.2 // // // // H. E. Luis Ramiro Alfonsin Ambassador Mission of Argentina Avenue Louise 225 B-1050 Brussels

Sir,

I can inform you that the Community will take the necessary measures in order to open, for the period 1987/88, on an autonomous basis, a special Community import tariff quota at a duty of 20 % without levy for 1 000 metric tonnes of high-quality fresh, chilled beef falling within subheading 02.01 A II a) of the Common Customs Tariff, corresponding to the following specifications:

'Special or good-quality beef cuts obtained from exclusively pasture-grazed animals, aged between 22 and 24 months, having two permanent incisors and presenting a slaughter live weight not exceeding 460 kilograms, referred to as "special boxed beef", cuts of which may bear the letters "sc" (special cuts).'

Detailed rules for the application of this measure shall be determined by the competent authorities.

Yours faithfully,