AGREEMENT in the form of an exchange of letters between the European Community and the Republic of Bulgaria on the reciprocal establishment of tariff quotas for certain wines

A. Letter from the Community

Brussels, 29 November 1993

Sir,

I have the honour to refer to the consultations which have taken place between the European Community and the Republic of Bulgaria concerning the reciprocal establishment of tariff quotas for certain wines. Since it is in the interest both of the Community and of Bulgaria to promote trade in wine in accordance with Articles 21 (5) and 14 (5) respectively of the Association Agreement and the Interim Agreement on trade and trade-related matters between the Community and Bulgaria, signed on 8 March 1993, the two Parties have agreed to grant each other reciprocal tariff concessions subject to the maximum quantities and the conditions set out below:

1. Bulgaria is to open annual tariff quotas subject to reduced customs duties as set out in point 3 for wine originating in the Community up to the following quantities:

- 42 000 hectolitres of wine falling within subheadings ex 2204 21 and ex 2204 29 of the Bulgarian customs tariff,

- 1 000 hectolitres of quality sparkling wine, whether or not produced in specific regions, within the meaning of Title III of Regulation (EEC) No 2332/92, in containers holding not more than two litres, falling within subheading ex 2204 10 of the Bulgarian customs tariff.

The abovementioned quotas will be increased each year as from 1 January 1994 in accordance with Table 1 in the Annex.

2. The Community is to open annual tariff quotas subject to reduced customs duties as set out in point 3 for wine originating in Bulgaria up to the following quantities:

- 214 000 hectolitres of quality wine, including quality wine with a designation of origin, within the meaning of Bulgarian legislation on wine-growing, in containers holding not more than two litres, falling within subheading ex 2204 21 of the combined nomenclature,

- 118 000 hectolitres of quality wine, including quality wine with a designation of origin, within the meaning of Bulgarian legislation on wine-growing and wine obtained from grapes of the 'Gamza` vine variety designated and presented under that name or under the synonym 'Kadarka`, in containers holding more than two litres falling within subheading ex 2204 29 of the combined nomenclature;

- 1 000 hectolitres of quality sparkling wine within the meaning of Bulgarian legislation on wine-growing, in containers holding not more than two litres, falling within subheading ex 2204 10 of the combined nomenclature.

The abovementioned quotas will be increased each year as from 1 January 1994 in accordance with Table 2 in the Annex.

3. The following reduced customs duties will apply to the maximum annual quantities set out in points 1 and 2:

(a) in the case of duties applied by Bulgaria to imports of wine originating in the Community:

- in 1993: 90 % of the basic duty,

- in 1994: 80 % of the basic duty,

- in 1995 and subsequent years, 70 % on the basic duty;

(b) in the case of duties applied by the Community to imports of wine originating in Bulgaria:

- in 1993: 80 % of the basic duty,

- in 1994: 60 % of the basic duty,

- in 1995 and subsequent years, 40 % of the basic duty;

4. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Bulgaria if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting Party in question in accordance with the rules governing the oenological practices and processes referred to in Title II of Regulation (EEC) No 822/87.

5. The period covered by the quotas referred to in points 1 and 2 will run from 1 January to 31 December of the same year. If this Agreement comes into force after 1 January 1993, the annual quotas set out in points 1 and 2 will be adjusted pro rata temporis.

6. Imports of wine under the concessions provided for in this Agreement will be subject to presentation of:

- an import licence valid from its date of issue to the end of the fourth month thereafter, unless the quota period expires before the latter date. Licences must be granted without discrimination between the economic operators concerned. They will entail a system of securities, introduced and administered so that the agreed quantities may actually be imported. The two Parties will exchange information regularly on the number of licences issued and used, and

- a certificate issued by a mutually recognized official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with points 1, 2 and 4.

7. The Contracting Parties must ensure that the benefits granted reciprocally are not called into question by other measures. On application, the Contracting Party in question will in particular issue import licences as referred to in point 6 for up to the quantities agreed to in point 1 and will refrain from taking any measure which may prevent them from being used.

8. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates. Both Parties may amend the latter by mutual consent.

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

10. This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on the same date as the Interim Agreement on trade and trade-related matters between the Community and Bulgaria, and in any case on 1 November at the earliest. It will apply for an initial period expiring on 31 December 1997. During the first six months of 1997, consultations will take place to decide whether and on what terms it is to be extended.

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 Union

>REFERENCE TO A FILM>

ANNEX Increase in quotas for wine referred to in points 1 and 2

>TABLE>

>TABLE>

B. Letter from Bulgaria

Brussels, 29 November 1993

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 Community and the Republic of Bulgaria concerning the reciprocal establishment of tariff quotas for certain wines. Since it is in the interest both of the Community and of Bulgaria to promote trade in wine in accordance with Articles 21 (5) and 14 (5) respectively of the Association Agreement and the Interim Agreement on trade and trade-related matters between the Community and Bulgaria, signed on 8 March 1993, the two Parties have agreed to grant each other reciprocal tariff concessions subject to the maximum quantities and the conditions set out below:

1. Bulgaria is to open annual tariff quotas subject to reduced customs duties as set out in point 3 for wine originating in the Community up to the following quantities:

- 42 000 hectolitres of wine falling within subheadings ex 2204 21 and ex 2204 29 of the Bulgarian customs tariff;

- 1 000 hectolitres of quality sparkling wine, whether or not produced in specific regions, within the meaning of Title III of Regulation (EEC) No 2332/92, in containers holding not more than two litres, falling within subheading ex 2204 10 of the Bulgarian customs tariff.

The abovementioned quotas will be increased each year as from 1 January 1994 in accordance with Table 1 in the Annex.

2. The Community is to open annual tariff quotas subject to reduced customs duties as set out in point 3 for wine originating in Bulgaria up to the following quantities:

- 214 000 hectolitres of quality wine, including quality wine with a designation of origin, within the meaning of Bulgarian legislation on wine-growing, in containers holding not more than two litres, falling within subheading ex 2204 21 of the combined nomenclature;

- 118 000 hectolitres of quality wine, including quality wine with a designation of origin, within the meaning of Bulgarian legislation on wine-growing and wine obtained from grapes of the 'Gamza` vine variety designated and presented under that name or under the synonym 'Kadarka`, in containers holding more than two litres falling within subheading ex 2204 29 of the combined nomenclature;

- 1 000 hectolitres of quality sparkling wine within the meaning of Bulgarian legislation on wine-growing, in containers holding not more than two litres, falling within subheading ex 2204 10 of the combined nomenclature.

The abovementioned quotas will be increased each year as from 1 January 1994 in accordance with Table 2 in the Annex.

3. The following reduced customs duties will apply to the maximum annual quantities set out in points 1 and 2:

(a) in the case of duties applied by Bulgaria to imports of wine originating in the Community:

- in 1993: 90 % of the basic duty,

- in 1994: 80 % of the basic duty,

- in 1995 and subsequent years, 70 % of the basic duty;

(b) in the case of duties applied by the Community to imports of wine originating in Bulgaria:

- in 1993: 80 % of the basic duty,

- in 1994: 60 % of the basic duty,

- in 1995 and subsequent years, 40 % of the basic duty.

4. For the purposes of this Agreement, wine will be deemed to originate in the Community or in Bulgaria if it has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting Party in question in accordance with the rules governing the oenological practices and processes referred to in Title II of Regulation (EEC) No 822/87.

5. The period covered by the quotas referred to in points 1 and 2 will run from 1 January to 31 December of the same year. If this Agreement comes into force after 1 January 1993, the annual quotas set out in points 1 and 2 will be adjusted pro rata temporis.

6. Imports of wine under the concessions provided for in this Agreement will be subject to presentation of:

- an import licence valid from its date of issue to the end of the fourth month thereafter, unless the quota period expires before the latter date. Licences must be granted without discrimination between the economic operators concerned. They will entail a system of securities, introduced and administered so that the agreed quantities may actually be imported. The two Parties will exchange information regularly on the number of licences issued and used, and

- a certificate issued by a mutually recognized official body appearing on a list to be drawn up jointly, to the effect that the wine in question complies with points 1, 2 and 4.

7. The Contracting Parties must ensure that the benefits granted reciprocally are not called into question by other measures. On application, the Contracting Party in question will in particular issue import licences as referred to in point 6 for up to the quantities agreed to in point 1 and will refrain from taking any measure which may prevent them from being used.

8. Consultations are to take place at the request of either Party on any problem relating to the way this Agreement operates. Both Parties may amend the latter by mutual consent.

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

10. This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on the same date as the Interim Agreement on trade and trade-related matters between the Community and Bulgaria, and in any case on 1 November at the earliest. It will apply for an initial period expiring on 31 December 1997. During the first six months of 1997, consultations will take place to decide whether and on what terms it is to be extended.

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 Government of the

Republic of Bulgaria

>REFERENCE TO A FILM>

ANNEX Increase in quotas for wine referred to in points 1 and 2

>TABLE>

>TABLE>