§ 50. Sir D. Walker-Smithasked the Sectary of State for Foreign and Commonwealth Affairs if he will specify the agreements purporting to give effect to the solutions agreed for the tariff treatment of industrial materials set out in Annex B of Command Paper No. 4715, 334W "The United Kingdom and the European Communities", stating in each case the parties to the agreement, the date of its conclusion, and whether it be oral or in writing.
§ 13. Mr. RipponArrangements for the tariff treatment of industrial materials were reached in the Conference between the United Kingdom and Community delegations at their meetings at Ministerial level on 11th to 12th May and 7th June. The agreements reached will, in due course, be formally embodied in the Treaty of Accession and its associated instruments.
Following are the details :
Details of the arrangements for the tariff treatment of industrial materials
Tea
* C.E.T. 09.02(A)Tea in packets of not more than 3 kg.— 11.5 per cent.Duty rate reduced to 5 per cent. for an indeterminate period.09.02(B)Tea in packets of more than 3 kg.— 9.0 per cent.Duty rate wholly suspended at 0 per cent. for an indeterminate period.U.K. 09.02m.f.n free preferential free.The E.E.C. has decided that, as from 1st January, 1971, the date of the entry into force of the Yaounde II Convention, the C.E.T. duty suspensions are to be continued indefinitely on*—tea in packets of not more than 3 kg. at the level of—5 per cent.—tea in packets of more than 3 k.g.—0 per cent.Phosphorus
C.E.T. 28.04(C)IV 9.6 per cent. (6 per cent if American Selling Price method of valuation were abolished by the United States).U.K. 28.04(B) m.f.n 8 per cent. (5 per cent. if A.S.P. is abolished); preferential : free.* The Common External Tariff of the E.E.C. and the U.K. tariff are given at the rates they will be on 1st January, 1972 after the final reductions to implement the Kennedy Round agreements.On some items a further reduction was conditional on the United States Congress passing legislation to abolish the American Selling Price method of valuation, which they have not yet done.It has been agreed to open a tariff quota in favour of the U.K. from 1st January, 1974, until the end of the transitional period of a volume corresponding to the U.K.'s needs, but not exceeding 40,000 tonnes per annum. During 1974, 1975 and 1976, this quota will carry a zero duly. The Council of the enlarged Community may decide, unanimously, to 335W change the duty applicable to this tariff quota, taking account of the competition situation, supply and production on the phosphorus market. For 1977, the Council of the enlarged Community will decide, unanimously, on the duty which this tariff quota is to carry. If no decision is taken by the Council, the quota will carry a duty equal to half of the C.E.T. duty.From 1st January, 1978, the C.E.T. will be applied in full. The U.K. will apply, from 1st April, 1973, a zero duty in respect of imports from the present member States of the Community. While agreeing this solution, the possibility was taken into account, which is open to all member States of the enlarged Community, to request, if necessary, application of Article 28 of the Treaty of Rome with a view to taking the appropriate tariff measures.Unwrought Aluminium
C.E.T. 76.01(A)—9 per cent.U.K. 76.01(A) alloys m.f.n : 5 per cent. preferential : free.U.K. 76.01(B) other m.f.n : 3 per cent. preferential : free.As from 1st January, 1971, the C.E.T. has been reduced from 9 per cent. to 7 per cent., and the Community tariff quota abolished.Silicon Carbide
C.E.T. 28.56(A)—8.6 per cent. ( 8 per cent. if A.S.P. were abolished).U.K. 28.56(B) mfn : free ; preferential : free.It has been agreed that no derogation from the C.E.T. is necessary, given the prospects of enlargements of the Community, i.e.—on the assumption Norway joins, the Community will be self-sufficient.Ferro-Silicon
C.E.T. 73.02(C)—10 per cent.U.K. 73.02(B) mfn : free ; preferential : free.It has been agreed that there is no need to introduce special measures in favour of the U.K., given the prospects for the enlargements of the Community, in particular the accession of Norway, and in view of the fact that all the member States of the enlarged Community will have the possibility of requesting, if necessary, the application of Article 28 of the Treaty of Rome, with a view to taking the appropriate tariff measures.Ferro-Chrome
C.E.T. 73.02(E)I—8 per cent.U.K. 73.02(A) mfn : free ; preferential : free.There is no need for special measures in favour of the U.K., taking into account, on the one hand, the zero-duty Community tariff quota for super-refined ferro-chromium bound under G.A.T.T., in which the Applicant States will participate upon accession, and, on the other hand, the possibility open to all member States of requesting, if necessary, the application of Article 28 of the Treaty of Rome with a view to taking the appropriate tariff measures.Wood Pulp
C.E.T. 47.01A and B—3 per cent.U.K. 47.01 A mfn : free preferential : free.336WWood pulp is covered by Protocol No. VII to the "List G" Agreement, signed 2nd March, 1960. (See page 213 of the Treaty of Rome, as published by H.M.S.O.). This provides for member States to introduce reduced duty or nil duty quotas to cover the whole of their requirements, subject to their informing the Commission. In June, 1966, the Council agreed that after the reduction of the C.E.T. duty on woodpulp from 6 to 3 per cent. following the Kennedy Round this 3 per cent. duty would be suspended, according to a timing to be determined. The date has still to be determined. However, the E.E.C. has given an assurance that, upon accession, the applicant States will benefit from the same conditions of supply—i.e. zero duty—as the present member States, without limits or restrictions, until such time as the C.E.T. is totally suspended.Newsprint
C.E.T. 48.01(A)—7 per cent.U.K. 48.01(B) (3)(e) mfn : free preferential : free.On top of the zero-duty tariff quota of 626,000 metric tonnes bound under G.A.T.T., which will, however, be reduced to take account of Norway's accession, it has been agreed that the enlarged Community will open an autonomous zero-duty Community tariff quota which will be decided by the Council when it is established that all possibilities of supply on the internal market of the enlarged Community have been exhausted during a given trading year.It has also been agreed to redefine the "newsprint" tariff heading, with a view of lowering the minimum weight limit from 48g. to 40g. per square metre.Unwrought Lead
C.E.T. 78.01(A) $13.2 per metric ton (ad valorem incidence about 4 per cent.).U.K. 78.01(A) mfn : 5 per cent. preferential : free.1. On 1st July, 1971, a new sub-heading will be created under Tariff Heading No. 78.01, defined as follows :argentiferous lead : unwrought lead containing not less than 0.02 per cent. silver, intended for refining.This new sub-heading is to be given an ad valorem duty of 4.5 per cent.For 1971 and up to the entry into force of a total suspension, of unlimited duration, of the duty on argentiferous lead, a Community zero-duty tariff quota will be opened. Its amount will be equal to the sum of the requests put forward by the Member States concerned, plus a reserve. In 1971 the total volume of this quota will be 130,000 metric tonnes.As from 1st January, 1974, the applicant States will participate in the Community tariff quota for argentiferous lead.As from 1st January, 1975, the duty on argentifeous lead will be suspended at 2 per cent.As from 1973, there will be an annual review of the possibility of a total suspension, 337W for an unlimited period, of the duty on argentiferous lead.2. With regard to "refined lead" (unwrought lead of heading 78.01 which does not fall under the new argentiferous lead sub-heading referred to above) the following measures are envisaged ;On 1st January, 1974, the present duty of $13.2 per metric ton will be changed to an ad valorem duty of 4.5 per cent. with a minimum charge of $11 per metric ton. For 1971, 1972 and 1973, a Community zero-duty tariff will be opened, with a volume of, respectively, 65,000, 60,000 and 55,000 tonnes.From 1st January, 1974, the applicant States will participate in this Community tariff quota. In order to take account of the enlargement of the Community, the phased reduction in the volume of the Community tariff quota will be interrupted during 1974, so that the total amount of the quota will not be reduced below that of 1973. The phased reduction will be resumed in 1975 so that the quota is completely abolished by the end of the transitional period.The situation will be re-examined before the abolition of the quota, with a view to deciding on a possible limited reduction of the duty (with a minimum charge of $11 per metric ton).Unwrought Zinc
C.E.T. 79.01(A) $13.2 per metric ton=6 per cent.U.K. 79.01(A) mfn : £1.50 per ton preferential : free.From 1971 a degressive zero-duty Community tariff quota will be opened, which will disappear at the end of the transitional period. In 1971 its volume will be 30,000 tonnes (including reserve).With regard to the phased reduction after 1971, a solution similar to that for refined lead is envisaged.As from 1st January, 1974, an ad valorem duty of 4.5 per cent. will be applied, with a minimum charge of $11 per metric ton.Wattle Extract
C.E.T. 32.01(A)—9 per cent., also on chestnut extract.U.K. ex-32.01(B) mfn : 8 per cent. (5 per cent. if A.S.P. is abolished); preferential : free.It has been agreed to suspend partially the C.E.T. duty, for an indefinite period, to a rate of 3 per cent., taking into account the possibility open to all Member States of the enlarged Community to request, if necessary, application of Article 28 of the Treaty of Rome.From 1st July, 1973, the U.K. will apply a Zero duty on imports of wattle and chestnut extracts from the present member States.Plywood
C.E.T. 44.15(A)—13 per cent.U.K. 44.15(A) mfn : 5 per cent. preferential : free.338WUnder Tariff Heading No. 44.15 there will be a new sub-heading, defined as follows :plywood of coniferous species
- (a) of a thickness greater than 9 mm. of which the faces are not further prepared than the peeling process
- (b) sanded, of a thickness greater than 18.5 mm."
For this sub-heading, from 1st January, 1974, two autonomous zero-duty Community tariff quotas will be opened, the amount of which will be decided annually by the Council when it is established that all possibilities of supply on the internal market of the enlarged Community have been exhausted during a given trading year.From 1st April, 1973, the applicant States will apply a zero-duty to imports from the present member States. Note was taken of the fact of the large zero-duty imports of plywood from Finland into the U.K., and also imports from countries which will benefit from the Community's generalised preference scheme. It was agreed that if these conditions were to undergo important changes, the situation would be re-examined.Alumina
C.E.T. 28.20(A)—8.8 per cent (5.5 per cent. if A.S.P. were abolished).U.K. 28.20(B) mfn : 9 per cent. (8 per cent. if A.S.P. is abolished); preferential : free.It has been agreed that the C.E.T. will be suspended to 5.5 per cent. from 1st January, 1975, at the latest. Imports of alumina into the United Kingdom will be duty free until 1st January, 1976, will as from that date pay half the suspended rate, and will from 1st July, 1977, pay the full 5.5 per cent. rate.This agreement took account of the possibility open at all times to all the member States of the enlarged Community to request, if necessary, the application of Article 28 of the Treaty of Rome with a view to taking any appropriate tariff measures which the particular conditions of the aluminium industry might call for.Account was also taken of relations between the enlarged Community and the independent developing Commonwealth countries, particularly those in the Caribbean, it being understood that the situation would be re-examined should the decisions to be finally adopted not entail the application of a zero-duty on imports of alumina from these countries.
§ Sir D. Walker-Smithasked the Secretary of State for Foreign and Commonwealth Affairs if he will clarify paragraph 141 of Command Paper No. 4715, "The United Kingdom and the European Communities", identifying those industrial materials in respect of which agreements have been made, and those in respect of which it has been concluded that no agreements will be required.
§ Mr. RipponIn the case of silicon carbide, ferro-chrome, ferro silicon and 339W aluminium, it was agreed in the conference that no special measures would be required, on the assumption that Norway becomes a member of the enlarged Community. The measures agreed for the other commodities are set out in the document I have today circulated in the OFFICIAL REPORT.