AGREEMENT

in the form of an exchange of letters between the European Economic Community and the Kingdom of Sweden concerning certain arrangements in agriculture

Oporto, 2 May 1992.

Sir,

I have the honour to refer to the discussions concerning trade arrangements for certain agricultural products between the Community and Sweden which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that the results of these discussions were as follows:

I. an arrangement between the Community and Sweden concerning trade in beef, including cooked preparations. The text of this arrangement is set out in Annex I to this letter;

II. tariff quotas granted by the Community to Sweden. These concessions are set out in Annex II to this letter;

III. zero-duty tariff quotas granted by Sweden to the Community. These concessions are set out in Annex III to this letter;

IV. tariff concessions granted by Sweden to the Community. These concessions are set out in Annex IV to this letter;

V. an arrangement between the Community and Sweden concerning trade in spirit beverages. The text of this arrangement is set out in Annex V to this letter;

VI. rules of origin for the purpose of implementing the abovementioned arrangements and concessions. These rules are set out in Annex VI to this letter.

This exchange of letters shall be approved by the Contracting Parties in accordance with their own procedures.

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

On behalf of the Council of the European Communities

Oporto, 2 May 1992.

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 discussions concerning trade arrangements for certain agricultural products between the Community and Sweden which have taken place in the framework of the negotiations on an EEA Agreement, and to Protocol 42 attached to that Agreement.

I hereby confirm that the results of these discussions were as follows:

I. an arrangement between the Community and Sweden concerning trade in beef, including cooked preparations. The text of this arrangement is set out in Annex I to this letter;

II. tariff quotas granted by the Community to Sweden. These concessions are set out in Annex II to this letter;

III. zero-duty tariff quotas granted by Sweden to the Community. These concessions are set out in Annex III to this letter;

IV. tariff concessions granted by Sweden to the Community. These concessions are set out in Annex IV to this letter;

V. an arrangement between the Community and Sweden concerning trade in spirituous beverages. The text of this arrangement is set out in Annex V to this letter;

VI. rules of origin for the purpose of implementing the abovementioned arrangements and concessions. These rules are set out in Annex VI to this letter.

This exchange of letters shall be approved by the Contracting Parties in accordance with their own procedures.

I should be obliged if you would confirm that the Government of the Kingdom of Sweden 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 this letter.

For the Government of the Kingdom of Sweden

ANNEX I

ARRANGEMENT between the European Economic Community and the Kingdom of Sweden concerning reciprocal trade in beef, including cooked preparations

With the aim of fostering the harmonious development of trade in agricultural products, and taking into account the discussions which have taken place in the framework of the negotiations on an EEA Agreement, the European Economic Community and the Kingdom of Sweden have agreed to conclude the following arrangements regulating reciprocal trade in beef, including cooked preparations:

1. Sweden and the Community will open the annual zero-duty tariff quotas indicated below:

(a) On importation into Sweden

Beef and cooked preparations originating in the Community and accompanied by an approved certificate:

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(b) On importation into the Community

Beef and cooked preparations originating in Sweden and accompanied by an approved certificate:

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2. Sweden and the Community shall ensure that the mutually granted advantages are not compromised by other import measures.

3. Both Parties may consult at any time on the functioning of the Arrangement and, if necessary, modify it by mutual agreement, taking into account, in particular, developments in prices, production, sales and consumption of the relevant products in their respective markets.

In particular, if in the course of a quota year the quantities fixed for imports into Sweden and/or into the Community are reached, the Parties shall enter into consultations at the request of either in order to examine the possibility of modifying the originally agreed import quantities.

4. This Arrangement 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 the Kingdom of Sweden.

5. This Arrangement shall enter into force on the same date as the EEA Agreement.

However, should that date not coincide with the beginning of the calendar year, the provisions referred to in point 1 shall be applied pro rata temporis for the first year.

ANNEX II

TARIFF QUOTAS GRANTED BY THE EUROPEAN ECONOMIC COMMUNITY TO THE KINGDOM OF SWEDEN

1. As from the date of entry into force of the EEA Agreement, the Community will open the following annual tariff quotas for products originating in Sweden:

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2. If the actual entry into force does not coincide with the beginning of the calendar year, the abovementioned quantities shall be applied on a pro rata temporis basis for the first year.

ANNEX III

TARIFF QUOTAS GRANTED BY THE KINGDOM OF SWEDEN TO THE EUROPEAN ECONOMIC COMMUNITY

1. As from the date of entry into force of the EEA Agreement, Sweden will open the following annual zero-duty tariff quotas for products originating in the Community:

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2. If the actual entry into force does not coincide with the beginning of the calendar year, the abovementioned quantities shall be applied on a pro rata temporis basis for the first year.

ANNEX IV

TARIFF CONCESSIONS GRANTED BY THE KINGDOM OF SWEDEN TO THE EUROPEAN ECONOMIC COMMUNITY

As from the date of entry into force of the EEA Agreement, the Kingdom of Sweden will grant to the European Economic Community the following tariff concessions for products originating in the Community.

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ANNEX V

ARRANGEMENT between the European Economic Community and the Kingdom of Sweden concerning trade in spirituous beverages

With the aim of fostering the harmonious development of trade in agricultural products, and taking into account the discussions which have taken place in the framework of the negotiations on an EEA Agreement, the European Economic Community and the Kingdom of Sweden have agreed to conclude a bilateral arrangement concerning trade in spirituous beverages, the provisions of this arrangement being as follows:

1. For the products indicated below, the import duties will be reduced to zero:

(a) on importation into Sweden

- spirituous beverages, falling within HS code 2208, originating in the Community;

(b) on importation into the Community

- vodka in bottles (1), falling within HS code ex 2208 90, originating in Sweden and accompanied by an approved certificate of authenticity. This concession will be fully applied by Spain and Portugal at the end of the period of transition provided for in the 1985 Act of Accession. During the period of transition, the application of tariff reductions by Spain and Portugal will not lead to more favourable treatment being granted to Sweden than to the other Member States of the Community.

2. The Government of the Kingdom of Sweden will ensure that the published price levels made available to the public faithfully reflect any reduction of the cost of importation resulting from the concession stated above.

3. Vin och Sprit AB will include in its product assortment and retail price list certain brands of 'Weinbrand' originating in the Community.

4. Consultations will be held at the request of either party on any question relating to the operation of this arrangement.

The two Parties may, by mutual consent, amend it by reference in particular to the development in trade of the products concerned.

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

6. This arrangement 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 the Kingdom of Sweden.

7. This arrangement shall enter into force on the same date as the EEA Agreement.

(1) For the purpose of this Arrangement, vodka is defined in the following manner: vodka originating in Sweden, with an alcoholic strength of 60 % vol or less, obtained exclusively by distillation of a fermented mash of cereals, corresponding to the provisions applicable in the Community or its Member States.

ANNEX VI

RULES OF ORIGIN

1. 1. For the purpose of implementing the Agreement, a product shall be considered to be originating either in the Community or in Sweden if it has been wholly obtained there.

2. The following shall be considered as wholly obtained either in the Community or in Sweden:

(a) vegetable products harvested there;

(b) live animals born and raised there;

(c) products from live animals raised there;

(d) goods produced there exclusively from products specified in (a) to (c).

3. Packing materials and packing containers presented with a product therein shall not be included with this product for the purpose of determining whether it has been wholly obtained and it shall not be necessary to establish whether such packing materials or packing containers are originating or not.

2. Notwithstanding point 1, the products mentioned in columns 1 and 2 of the list in this Appendix, obtained either in the Community or in Sweden, and incorporating materials which have not been wholly obtained there, shall also be considered as originating, provided that the conditions set out in column 3 concerning working or processing carried out on such materials have been fulfilled.

3. 1. The preferential treatment provided for under the Agreement applies only to products which are transported directly from the Community to Sweden or from Sweden to the Community without passing through the territory of another country. However, products constituting one single consigment may be transported through territory other than that of the Community and Sweden with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the products have remained under the surveillance of the customs authorities in the country of transit or of warehousing and that they have not undergone operations other than unloading, reloading or any other operation designed to preserve them in good condition.

2. Evidence that the conditions referred to in point 3.1 have been fulfilled shall be supplied to the customs authorities of the importing country in accordance with Article 13 (2) of Protocol 4 to the EEA Agreement.

4. 1. Originating products within the meaning of this Annex shall, on importation into the Community or Sweden, benefit from the Agreement upon submission of either a movement certificate EUR.1 or an invoice declaration, issued or made out in accordance with Title V of Protocol 4 to the EEA Agreement.

2. The documents referred to in point 4.1 shall clearly indicate the origin of the products concerned by using the words 'Community' or 'Sweden', in one of the languages in which the Agreement is drawn up, followed by the letters 'AGRI' inserted between brackets. In the case of the invoice declaration, this indication shall replace the reference to 'EEA preferention origin' in the text of the declaration given in Appendix IV of Protocol 4 to the EEA Agreement.

3. Notwithstanding points 4.1 and 4.2, the certificate referred to in Annex V for vodka shall be accepted as valid proof of origin within the meaning of this Agreement without it being necessary to submit a movement certificate EUR.1 or an invoice declaration.

5. The provisions of Titles IV (drawback or exemption), V (proof of origin) and VI (arrangements for administrative cooperation) of Protocol 4 to the EEA Agreement shall apply mutatis mutandis. As far as the provisions of Title IV are concerned, it is understood that the prohibition of drawback of, or exemption from, customs duties contained in these provisions shall apply only in respect of materials which are of the kind to which the EEA Agreement applies.

Appendix

List of products, referred to in point 2, subject to other conditions than the wholly obtained criterion

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