AGREEMENT

in the form of an exchange of letters between the European Economic Community and the Republic of Austria 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 Austria, 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 negotiations were as follows:

I. an arrangement between the Community and Austria on reciprocal trade in cheese. The text of this arrangement is set out in Annex I to this letter;

II. an arrangement between the Community and Austria on reciprocal tariff quotas for fruit and vegetable juices. The text of this arrangement is set out in Annex II to this letter;

III. an arrangement between the Community and Austria on reciprocal tariff quotas for certain wines. The text of this arrangement is set out in Annex III to this letter;

IV. an arrangement between the Community and Austria on reciprocal tariff quotas in the pigmeat sector. The text of this arrangement is set out in Annex IV to this letter;

V. tariff concessions granted by Austria to the Community. These concessions are 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 Republic of Austria 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 Austria, 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 negotiations were as follows:

I. an arrangement between the Community and Austria on reciprocal trade in cheese. The text of this arrangement is set out in Annex I to this letter;

II. an arrangement between the Community and Austria on reciprocal tariff quotas for fruit and vegetable juices. The text of this arrangement is set out in Annex II to this letter;

III. an arrangement between the Community and Austria on reciprocal tariff quotas for certain wines. The text of this arrangement is set out in Annex III to this letter;

IV. an arrangement between the Community and Austria on reciprocal tariff quotas in the pigmeat sector. The text of this arrangement is set out in Annex IV to this letter;

V. tariff concessions granted by Austria to the Community. These concessions are 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 Republic of Austria 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 Republic of Austria

ANNEX I

ARRANGEMENT between the European Economic Community and the Republic of Austria on reciprocal trade in cheese

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 Republic of Austria have agreed to conclude a new arrangement concerning their reciprocal trade in cheese, the provisions of this arrangement being as follows:

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

A. On importation into Austria

Cheese falling within HS code ex 0406, originating in the Community, accompanied by an approved certificate:

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B. On importation into the Community

Cheese falling within HS code ex 0406, originating in Austria, accompanied by an approved certificate:

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2. Austria undertakes to take the necessary measures to ensure that:

- approved certificates will be delivered only for quantities it has agreed to export to the Community, as laid down in B,

- the licences for import into Austria will be granted on a regular basis and in such a way that the quantities agreed for import into Austria from the Community can actually be imported.

The provisions concerning this matter and in particular the procedures of the distribution of licences, and any possible changes, will be brought to the notice of the Commission of the European Communities and of exporters and/or importers.

The Community and Austria will take steps to ensure that the benefits which they grant each other will not be jeopardized by other import measures.

3. Austria and the Community undertake, each on its own behalf, to ensure that the prices charged by their exporters are not such as to create difficulties on the importing country's market.

They agree, in this connection, to exchange at regular intervals price quotations and any other useful information concerning the market in domestic and imported cheeses.

Should difficulties arise concerning the price charged, consultations will be held at the request of either Party, as promptly as possible, with a view to the adoption of appropriate corrective measures.

4. The two Parties may consult each other at any stage concerning the operation of this arrangement, and, where necessary, change it, by common accord, in the light, in particular, of market price trends, production, marketing and consumption of domestic and imported cheese.

In particular, if a substantial increase in imports of cheese into the Community and/or Austria is observed, the two Parties will hold consultations, at the request of either Party, in order to examine whether the quantities laid down by this arrangement may be changed.

5. 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 Republic of Austria.

6. This arrangements shall enter into force on the same date as the EEA Agreement.

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.

7. The arrangement between the European Economic Community and the Republic of Austria concerning reciprocal trade in cheese, signed on 31 July 1987, shall lapse at the time of entry into force of this arrangement.

ANNEX II

ARRANGEMENT between the European Economic Community and the Republic of Austria on the reciprocal establishment of tariff quotas for fruit and vegetable juices

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 Republic of Austria have agreed to conclude an arrangement concerning their reciprocal trade in fruit and vegetable juices, the provisions of this arrangement being as follows:

1. Austria shall open an annual zero-duty tariff quota of 10 000 tonnes for fruit and vegetable juices, falling within HS code 2009, originating in the Community.

2. For as long as Austria imposes quantitative restrictions on imports of fruit and vegetable juices, the quantity reserved for the Community in the annual quota opened by Austria shall be at least equal to the quota of 10 000 tonnes referred in point 1.

3. The Community shall open an annual zero-duty tariff quota of 10 000 tonnes of fruit and vegetable juices originating in Austria, falling within HS code 2009, of which a maximum of 500 tonnes of juice other than apple and pear juices.

4. The Contracting Parties reserve the possibility to apply, where appropriate, a price compensation for added sugar.

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

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

7. 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 Republic of Austria.

8. 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 points 1 and 3 shall be applied pro rata temporis for the first year.

ANNEX III

ARRANGEMENT between the European Economic Community and the Republic of Austria on the reciprocal establishment of tariff quotas for certain wines

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 Republic of Austria have agreed to conclude a new arrangement concerning their reciprocal trade in certain wines, the provisions of this arrangements being as follows:

1. Austria shall open an annual zero-duty tariff quota for 150 000 hectolitres of 'quality wines produced in specified regions', as referred to in Regulation (EEC) No 823/87, other than sparkling wines, originating in the Community, in containers holding two litres or less, as well as 'Retsina' wine in the same containers, both falling within subheading ex 2204 21 A of the Austrian Customs Tariff.

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 and 'Retsina' wine shall be at least equal to the quota of 150 000 hectolitres referred to in point 1.

3. Austria shall also open an annual zero-duty tariff quota for 4 000 hectolitres of 'quality sparkling 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 150 000 hectolitres of quality wines as referred to in the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within HS code ex 2204 21.

However, imports into Portugal of wine originating in Austria shall be subject to duties equal to those applied by Portugal to imports from the Community as constituted on 30 December 1985.

5. The Community shall also open an annual zero-duty tariff quota for 4 000 hectolitres of sparkling quality wines as referred to in the Republic of Austria's 1985 law on wine, originating in Austria, in containers holding two litres or less, falling within HS code ex 2204 10.

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

6. Consignments of wine covered by the concessions provided for in this arrangement are dependent on the presentation of an import licence, which shall be valid from the date of issue until the end of the fourth month of issue but not valid after the end of the quota year. The system for granting licences 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 licence may not be linked to any undertaking to buy a given quantity of local wine.

The wine in question must be moreover 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.

The issue and, in the framework of administrative cooperation, the verification of the certificates referred to in the second subparagraph of this point shall be carried out by the respective competent authorities.

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

8. 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.

9. 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 Republic of Austria.

10. 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 points 1 to 5 shall be applied pro rata temporis for the first year.

11. This arrangement shall replace the 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, signed on 23 December 1988.

ANNEX IV

ARRANGEMENT between the European Economic Community and the Republic of Austria on reciprocal trade in the pigmeat sector

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 Republic of Austria have agreed to conclude an arrangement for certain products in the pigmeat sector, the provisions of this arrangement being as follows:

1. As from the date of entry into force of the EEA Agreement, the Community and Austria will open, on a reciprocal basis, annual tariff quotas for the following products orginating in the other Contracting Party:

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2. For imports into the Community, the Commission of the European Communities will administer the relevant quotas on a quarterly basis by a system of import licences.

3. If the actual entry into force does not coincide with the beginning of the calendar year, the quantities referred to in point 1 shall be applied on a pro rata temporis basis for the first year.

ANNEX V

TARIFF CONCESSIONS GRANTED BY THE REPUBLIC OF AUSTRIA TO THE EUROPEAN COMMUNITY

As from the date of the entry into force of the EEA Agreement, the Republic of Austria will abolish import duties for the products listed below originating in the European Community.

0603 -- Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared:

10 -Fresh: ex 10 -Strelitzia, Anthurium, Protea, Ornithogallum

0709 -- Other vegetables, fresh or chilled:

30 -Aubergines (eggplants)

90 -other: A -Pumpkins of all kinds: ex A -Courgettes

0802 -- Other nuts, fresh or dried, whether or not shelled or peeled:

(10) -Almonds:

11 --in shell

12 --shelled

(20) -Hazelnuts or filberts (Corylus spp.):

21 --in shell

22 --shelled

(30) -Walnuts:

31 --in shell

32 --shelled

90 -other: A -Pine-kernels

0803 00 Bananas, including plantains, fresh or dried

0804 -- Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried:

20 -Figs: B -dried

30 -Pineapples

0805 -- Citrus fruit, fresh or dried:

10 -Oranges

20 -Mandarines (including tangerines and satsumas); clementines, wilkings and similar citrus hybrids

30 -Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantfolia)

0806 -- Grapes, fresh or dried:

20 -dried

0812 -- Fruit and nuts, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption:

90 -other: ex 90 -Apricots

0813 -- Fruit, dried, other than that of heading Nos 0801 to 0806; mixtures of nuts or dried fruits of this Chapter:

10 -Apricots

50 -Mixtures of nuts or dried fruits of this Chapter

0905 00 Vanilla

0910 -- Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices:

20 -Saffron 1211 -- Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered:

10 -Liquorice roots

20 -Ginseng roots

90 -Other

1509 -- Olive oil and its fractions, whether or not refined, but not chemically modified:

10 -virgin

90 -other

2002 -- Tomatoes prepared or preserved otherwise than by vinegar or acetic acid:

10 -Tomatoes, whole or in pieces

2005 -- Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen:

70 -Olives

90 -other vegetables and mixtures of vegetables: A -other vegetables: 3 -Capers 5 -Artichokes

2008 -- Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

20 -Pineapples (1)

30 -Citrus fruit (1)

2208 -- Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages:

30 -Whiskies: ex 30 -Irish Whiskey (2)

40 -Rum and taffia (2)

90 -other: ex D -Spirituous beverages containing eggs, egg yolk or sugar (sucrose or invert sugar): 1 -Irish cream liqueurs (2) 2 -Ouzo (2) (1) Subject to price compensation for added sugar.

(2) Subject to conditions to be determined by the competent authorities.

ANNEX VI

RULES OF ORIGIN

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

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

(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 paragraph 1, the products mentioned in columns 1 and 2 of the list in the Appendix, obtained either in the Community or in Austria 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 Austria or from Austria to the Community without passing through the territory of another country. However, products constituting one single consignment may be transported through territory other than that of the Community and Austria 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 subparagraph 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 Austria, 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 subparagraph 1 shall clearly indicate the origin of the products concerned by using the words 'Community' or 'Austria', 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 preferential origin' in the text of the declaration given in Appendix IV of Protocol 4 to the EEA Agreement.

3. Notwithstanding subparagraphs 1 and 2, the certificates respectively referred to in Annex I for cheese and Annex III for wines 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 conditions other than the wholly obtained criterion

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