de Gucht, K.

Archive of European Integration

European CommunitiesEUROPEAN PARLIAMENTWbrking Documents1983 - 198429 ApriL 1983 DOCUMENT 1-233183REPORTdrarn up on behaLf of the comm'ittee on Economic and MonetaryAffai rson the proposaL from the Comm'iss'ion of the EuropeanCommunities (Doc. 1.94?t82. coM(€,D 697 finaL) to theCouncit for a reguIat'ion amending Regutation (EEC)No.ZvTgtT8ontheprocedureforappl.yingtheECUtoLegaLacts adopted in the customs sPhereRapporteur: Mr DE GUCHTEnglish EditionPE 84 .O?31f in.By Letter ol 24 t{ovember 19EZ the President of the CounciL of thc Europeancommunities consutted the European ParIiament on the proposa[ froor the conmissionof the European Comnunities for a CounciL ReguLation amending Regu[ation (EEC)No. 27?9tl8 on the procedure for apptying the ECU to Legal' acts adopted in thecustoilrs spherc (Doc. 1-9421E2> -0n 13 December 1gg2 the president of the European Parliament referrcd this proposalto the Connittcc on Economic and il,onctary Affairs as the committee rCsponsibte.At its meeting of 16 February 1983 the Committee on Economic and lbnctary Affairsappointed tlr DE GUCHT rapporteur-The connittce considered the Gommission proposal and the draft report at itsmeeting of 20 and 21 APri L 1983.At this meeting the conmittee unanimously decided to recommend that Partianentshoutd adopt the c6hmission proposal, subject to the foltoning amendment'The committec then unanimousty adopted the motion for a resotution as a vhole'Th- a^l l^uih.r t^^L nart in the vOte:ilr i{OREAU, chai rman,Irlr DE GUCHT, rapporteur,trtr ALBERS (deputizing for l,lr DELEAU), ilr BEAZLEY, trlr BEUiIER (deputizing foritr coLLotB), ir DELOnOZOY, trlrs DESoucHEs, Ilr Ingo FRIEDRICH, llr GIAVAZZI',Irtr HERI|AN, ilr RoGALLA (deputizing for itr !IIHR), trlr VAN RotlPUY and ilr IELSH'This report vas tabLed on ?2 April' 1983'-3- PE 84.023/finat.JA.B.CONTENTSPageProposed an0ndnent --d-- ......5EXPLANATORY STATEIIEI{T . ... .-i'r...... '..,.... 8-4- PE 84.023/final.The Committee on Economic and ltlonetaryPartiament the foLLowing amendment toresolut'ion, together trith expLanatoryProposaI from the CommissionNo- ??791?8 on the Procedurecustoms sPhereAmendment tabl'ed by the committee onEconomi c and l{onetarY Af f ai rsAmendmentIf a change in parities occurs afterthe first working day of October, thenew rates to be used for convertingthe ECU into a national currency forthe purposes of determining the tariffcIassification of goods under theCommon Customs Tariff and the anti-dumping duty shaLl' atso be appticabte,bv wav of derogation from the Pro-visions of paragraph 2, throughout thefo[[owing catendar year, except rherea change in monetary parities occursdurinq that Period-Affairs hereby submits to the Europeanthe Commission proposaI and motion for astatement :for a Councit ReguLation amending ReguLation (EEC)for appLying the ECU to Legat acts adopted in theText oroPosed bY the Commissionof the EuroPean ComqYlill99PreambIe and recitaLs unchangedArticte 1Paragraph 2 unchangedParagraph 3, first sub-paragraph unchangedSecond sub-ParagraphThird sub-paragraph unchangedParagraphs 4 and 5 unchangedArticte 2 unchangedIf a change in Parities occursafter the first working daY of0ctober, bY vaY of derogationfrom the provisions of ParagraPh 2the rates to be used for convertingthe ECU into nationat currenciesrlith effect from 1 JanuarY of thefoLLowing catendar Year for thepurposes of determining the tariffctassification of goods, thecustoms dutY aPPLicabLe under theCommon Customs Tariff or the anti-dumping dutY shaLl be thoseresutting from that change ofparities.-5- PE E4.023/finatAIIOTION FOR A RESOLUTIONcLosing the procedure for consultation of the European Partiament on the proposatfrom the Commission of the European Communities for a CounciI Regutation amendingReguLation (EEC) No. 2779178 on the procedure for apptying the ECU to [ega[ actsadopted in the customs sPhereThe European Partiament,- hav.ing regard to the proposat from the Commission to the Councit (C014(82) 6971f inat)',- having been consuLted by the Counci [ (Doc. 1-94?182),- having regard to the report of the Committee on Economic and ll'onetary Affairs( Doc . 1-233/83) '- having regard to the result of the vote on the proposaL from the Commission,(a) noting that monetary parities have been real,igned four times rithin the EMSsince 1 0ctober 1981+(b) drawing attentjon to the fact that these reatignments have led to a divergencebetween the Ecu rates currentLyjn force in the customs sphere and thoseappLied on the market,(c) hav.ing regard to the importance of ensuring that customs Legistation maintainsthe stab'it'ity necessary for administrative purposes whiLst keeping as closeLyas poss'ibLe'in touch uith econom'ic reat'ity,1. Voices its concern at the frequency of'recent reatignments in monetaryparities, bearing in mind that monetary instabiIity seriousLy affectsthe devetopment of the economies of the Member Statesi0J No. C 302, 19.11.1982, p. 5on 15 October 1981,21 February and 13 June 1982, and ?1 tttarch 198312-6-PE E4.023 lflnaL?. Stresses once again the urgent need for an effective poticy to encouragethe convergence of economies and the further consolidation of the EttlS, inaccordance with the provisions of the agreement xhich estabtished it, inorder to tack[e and etiminate the economic and monetary sources of disruptionin exchange rates which have made the present Commission proposaI necessaryiIs convinced, neverthetess, in the current state of affairs, Of the needfor rapid adjustment of the ECU exchange rates appLying to legaL acts adoptedin the customs sphere, in order to prevent the risk of deftection of tradeand shifts in the [ocation of activityi4. Approves the solution proposed by the Commission, vhich upholds existingLegistation (Regulation No. 27?gl?8)1 ", ,ug..ds reference to the firstworking day of 0ctober each year, but makes provision for an automatic re-aL.ignment in the event of any change in monetary parities in relation tothC ECU;5. Emphasizes, however, that whiLe it is important to approve the amendnent toReguLation No. ?779t?8 and ensure that it enters into force as soon aspossibte, in order to put an end to the disruption of trade ftows, it isnonetheIess necessary to proceed thereafter rith the recasting of the regutat'ionitsetf to ensure that the system is correctty understood;6. Instructs its President to forward to the Commission and the CounciL theproposaI from the Commission as voted by ParIiament and the correspondingresotution as ParLiament rs op'inion.3.1 0., to. L 333, 30.11 .1918-7- PE 84.023 /f inal-3.BEXPLANATORY STATE}IENT1. In November 1978 the CounciL adopted Regutation (EEC) No. ?7?9t?81 on theannuat revision of the exchange rates of the ECU (which reptaced the EUAunder ReguLation No. 3308/80 of 16 November 1980)2 appLying to tegal actsadopted in the customs sphere. The object of this regulation is to ensurethat customs LegisIation contjnues to reftect financiaI reatity as ctoseLyas possibLe nhiLst maintaining the stabitity necessary for administrativepurposes.2. Artic[e 2(2) of the reguLation provides that the vatue of the ECU in nationatcurrencies to be app[ied to LegaL acts adopted in the customs sphere shatl. befixed once a y'ear, on the first working day of October, ulith effect from1 January of the foltoning caLendar year-ObviousLyr lf the intended purpose of estabLishing a singte accounting unitin the customs sphere is to be attained, there is a need for the rate of ex-change betyeen currencies relating to the conversion rate of the accountingunit to be as close as possibLe to the exchage rates currently in force onthe market.Since 1 october 1981 there have been four adjustments in currency parities3ulithin the EMS-, which have Led to a divergence betueen the ECU ratescurrentLy in force in the customs sphere and economic reality. Hencetne need to estabIish nerl parities.5. Before going on to consider the Commirrron proposat, attention needs to begiven in a more general context to the extreme importance of the measures tobe taken in the Community to counter and eliminate the economic and monetarysources of disruption in exchange rates yhich make the present CommissionproposaI necessary.123oJ No. L 333, 30.11.19780J No. L 345, ?0.12.1980on 15 October 198'1, 21 February and 13 June 1982 and ?1 l.larch 1983.4.-E- PE 84.025/final.6. Indeed, the European Partiament has not negtected to voice its concern'at thefrequency of reatignments in monetary parities uhich have occurred recentLyl,bearing in mind that monetary instabiLity seriousty affects the devetopnentof the economies of the ttlember States and makes an appropriate investnentpoticy at European [eve[, and progressive Iiberatization of the capitalmarket very di f f icul.tParLiament has always stressedz the urgent need for an effective poLicy toencourage the convergence of econonies and further consolidation of the EtiSin accordance rith the provisions of the agreenent yhich estabtished it.Indeed, the devetopment of the EilS yi[[ entaiL the integration yithin theEuropean t{onetary Fund of three instruments: loan mechanisms, exchange agree-ments and the ECU. The desired result routd be to obtain more rigorousexchange agreements, not so much by estabtishing strict rules taid dorn inadvance, but rather on the basis of assessmenB by the European ibnetary Fund.However, in the present circumstances, - the risk of deflection of tradeand shifts in the location of activity, fottowing marked changes in currencyparities in the course of a single year, certainty points to the need forrapid adjustment of the ECU exchange rates as proposed by the Commission.Consideration of the Commission proposaIIn its proposat for a regulationl th" Comrnission puts foruard a sotutionwhich in principte maintains existing legistation (Regutation (EEC) No. ?779178)as regards reference to the first norking day of October, but provides foran automatic reatignment whenever there is a change in currency parity inrelation to the ECU for the purposes of certain tegal acts adopted in thecustoms sphere.0J No. C 287, 15.10.1981, p.0J No. C 117, 12.5.1980, p.Doc. 1-94218285, and 0J No. C 87, 5.4.198?, p. 7456 and 0J No. C 66, 15.3.1982, p. 457.8.9.123-9- PE 84.023/finaL10. It shouldrhoweverrbe ernphasized that, white it is important to approve theamendment to Regutation No. ?779t78 and to ensure that it enters into forceas soon as possibte, in order to put an end to the disruption of trade flotrs,it is atso necessary to proceed thereafter with the recasting of the regulationitseLf to ensure that the scheme is correctty understood.11. 1,1ith regard more particularLy to the yording of the articles proposed by theCommissjon it wouLd be advisabl.e for ArticLe 1(3)rsecond sub-paragraph to beredrafted to'improve comprehension of the text (proposed amendnent No. 1).-10- PE 84.023 /f inal.

Report drawn up on behalf of the Committee on Economic and Monetary Affairs on the proposal from the Commission of the European Communities (Doc. 1-942/82-COM(82) 697 final) to the Council for a regulation amending Regulation (EEC) No. 2779/78 on the procedure for applying the ECU to legal acts adopted in the customs sphere, Working Documents 1983-1984, Document 1-233/83, 29 April 1983

European Communities
EUROPEAN PARLIAMENT
Wbrking Documents
1983 - 1984
29 ApriL 1983 DOCUMENT 1-233183
REPORT
drarn up on behaLf of the comm'ittee on Economic and Monetary
Affai rs
on the proposaL from the Comm'iss'ion of the European
Communities (Doc. 1.94?t82. coM(€,D 697 finaL) to the
Councit for a reguIat'ion amending Regutation (EEC)
No.ZvTgtT8ontheprocedureforappl.yingtheECUtoLegaL
acts adopted in the customs sPhere
Rapporteur: Mr DE GUCHT
English Edition
PE 84 .O?31f in.

By Letter ol 24 t{ovember 19EZ the President of the CounciL of thc European
communities consutted the European ParIiament on the proposa[ froor the conmission
of the European Comnunities for a CounciL ReguLation amending Regu[ation (EEC)
No. 27?9tl8 on the procedure for apptying the ECU to Legal' acts adopted in the
custoilrs spherc (Doc. 1-9421E2> -
0n 13 December 1gg2 the president of the European Parliament referrcd this proposal
to the Connittcc on Economic and il,onctary Affairs as the committee rCsponsibte.
At its meeting of 16 February 1983 the Committee on Economic and lbnctary Affairs
appointed tlr DE GUCHT rapporteur-
The connittce considered the Gommission proposal and the draft report at its
meeting of 20 and 21 APri L 1983.
At this meeting the conmittee unanimously decided to recommend that Partianent
shoutd adopt the c6hmission proposal, subject to the foltoning amendment'
The committec then unanimousty adopted the motion for a resotution as a vhole'
Th- a^l l^uih.r t^^L nart in the vOte:
ilr i{OREAU, chai rman,
Irlr DE GUCHT, rapporteur,
trtr ALBERS (deputizing for l,lr DELEAU), ilr BEAZLEY, trlr BEUiIER (deputizing for
itr coLLotB), ir DELOnOZOY, trlrs DESoucHEs, Ilr Ingo FRIEDRICH, llr GIAVAZZI',
Irtr HERI|AN, ilr RoGALLA (deputizing for itr !IIHR), trlr VAN RotlPUY and ilr IELSH'
This report vas tabLed on ?2 April' 1983'
-3- PE 84.023/finat
.J
A.
B.
CONTENTS
Page
Proposed an0ndnent --d-- ......5
EXPLANATORY STATEIIEI{T . ... .-i'r...... '..,.... 8
-4- PE 84.023/final.
The Committee on Economic and ltlonetary
Partiament the foLLowing amendment to
resolut'ion, together trith expLanatory
ProposaI from the Commission
No- ??791?8 on the Procedure
customs sPhere
Amendment tabl'ed by the committee on
Economi c and l{onetarY Af f ai rs
Amendment
If a change in parities occurs after
the first working day of October, the
new rates to be used for converting
the ECU into a national currency for
the purposes of determining the tariff
cIassification of goods under the
Common Customs Tariff and the anti-
dumping duty shaLl' atso be appticabte,
bv wav of derogation from the Pro-
visions of paragraph 2, throughout the
fo[[owing catendar year, except rhere
a change in monetary parities occurs
durinq that Period-
Affairs hereby submits to the European
the Commission proposaI and motion for a
statement :
for a Councit ReguLation amending ReguLation (EEC)
for appLying the ECU to Legat acts adopted in the
Text oroPosed bY the Commission
of the EuroPean ComqYlill99
PreambIe and recitaLs unchanged
Articte 1
Paragraph 2 unchanged
Paragraph 3, first sub-paragraph unchanged
Second sub-Paragraph
Third sub-paragraph unchanged
Paragraphs 4 and 5 unchanged
Articte 2 unchanged
If a change in Parities occurs
after the first working daY of
0ctober, bY vaY of derogation
from the provisions of ParagraPh 2
the rates to be used for converting
the ECU into nationat currencies
rlith effect from 1 JanuarY of the
foLLowing catendar Year for the
purposes of determining the tariff
ctassification of goods, the
customs dutY aPPLicabLe under the
Common Customs Tariff or the anti-
dumping dutY shaLl be those
resutting from that change of
parities.
-5- PE E4.023/finat
AIIOTION FOR A RESOLUTION
cLosing the procedure for consultation of the European Partiament on the proposat
from the Commission of the European Communities for a CounciI Regutation amending
ReguLation (EEC) No. 2779178 on the procedure for apptying the ECU to [ega[ acts
adopted in the customs sPhere
The European Partiament,
- hav.ing regard to the proposat from the Commission to the Councit (C014(82) 697
1
f inat)',
- having been consuLted by the Counci [ (Doc. 1-94?182),
- having regard to the report of the Committee on Economic and ll'onetary Affairs
( Doc . 1-233/83) 
'
- having regard to the result of the vote on the proposaL from the Commission,
(a) noting that monetary parities have been real,igned four times rithin the EMS
since 1 0ctober 1981+
(b) drawing attentjon to the fact that these reatignments have led to a divergence
between the Ecu rates currentLyjn force in the customs sphere and those
appLied on the market,
(c) hav.ing regard to the importance of ensuring that customs Legistation maintains
the stab'it'ity necessary for administrative purposes whiLst keeping as closeLy
as poss'ibLe'in touch uith econom'ic reat'ity,
1. Voices its concern at the frequency of'recent reatignments in monetary
parities, bearing in mind that monetary instabiIity seriousLy affects
the devetopment of the economies of the Member Statesi
0J No. C 302, 19.11.1982, p. 5
on 15 October 1981,21 February and 13 June 1982, and ?1 tttarch 1983
1
2
-6-
PE E4.023 lflnaL
?. Stresses once again the urgent need for an effective poticy to encourage
the convergence of economies and the further consolidation of the EttlS, in
accordance with the provisions of the agreement xhich estabtished it, in
order to tack[e and etiminate the economic and monetary sources of disruption
in exchange rates which have made the present Commission proposaI necessaryi
Is convinced, neverthetess, in the current state of affairs, Of the need
for rapid adjustment of the ECU exchange rates appLying to legaL acts adopted
in the customs sphere, in order to prevent the risk of deftection of trade
and shifts in the [ocation of activityi
4. Approves the solution proposed by the Commission, vhich upholds existing
Legistation (Regulation No. 27?gl?8)1 
", 
,ug..ds reference to the first
working day of 0ctober each year, but makes provision for an automatic re-
aL.ignment in the event of any change in monetary parities in relation to
thC ECU;
5. Emphasizes, however, that whiLe it is important to approve the amendnent to
ReguLation No. ?779t?8 and ensure that it enters into force as soon as
possibte, in order to put an end to the disruption of trade ftows, it is
nonetheIess necessary to proceed thereafter rith the recasting of the regutat'ion
itsetf to ensure that the system is correctty understood;
6. Instructs its President to forward to the Commission and the CounciL the
proposaI from the Commission as voted by ParIiament and the corresponding
resotution as ParLiament rs op'inion.
3.
1 0., to. L 333, 30.11 .1918
-7- PE 84.023 /f inal-
3.
B
EXPLANATORY STATE}IENT
1. In November 1978 the CounciL adopted Regutation (EEC) No. ?7?9t?81 on the
annuat revision of the exchange rates of the ECU (which reptaced the EUA
under ReguLation No. 3308/80 of 16 November 1980)2 appLying to tegal acts
adopted in the customs sphere. The object of this regulation is to ensure
that customs LegisIation contjnues to reftect financiaI reatity as ctoseLy
as possibLe nhiLst maintaining the stabitity necessary for administrative
purposes.
2. Artic[e 2(2) of the reguLation provides that the vatue of the ECU in nationat
currencies to be app[ied to LegaL acts adopted in the customs sphere shatl. be
fixed once a y'ear, on the first working day of October, ulith effect from
1 January of the foltoning caLendar year-
ObviousLyr lf the intended purpose of estabLishing a singte accounting unit
in the customs sphere is to be attained, there is a need for the rate of ex-
change betyeen currencies relating to the conversion rate of the accounting
unit to be as close as possibLe to the exchage rates currently in force on
the market.
Since 1 october 1981 there have been four adjustments in currency parities
3
ulithin the EMS-, which have Led to a divergence betueen the ECU rates
currentLy in force in the customs sphere and economic reality. Hence
tne need to estabIish nerl parities.
5. Before going on to consider the Commirrron proposat, attention needs to be
given in a more general context to the extreme importance of the measures to
be taken in the Community to counter and eliminate the economic and monetary
sources of disruption in exchange rates yhich make the present Commission
proposaI necessary.
1
2
3
oJ No. L 333, 30.11.1978
0J No. L 345, ?0.12.1980
on 15 October 198'1, 21 February and 13 June 1982 and ?1 l.larch 1983.
4.
-E- PE 84.025/final.
6. Indeed, the European Partiament has not negtected to voice its concern'at the
frequency of reatignments in monetary parities uhich have occurred recentLyl,
bearing in mind that monetary instabiLity seriousty affects the devetopnent
of the economies of the ttlember States and makes an appropriate investnent
poticy at European [eve[, and progressive Iiberatization of the capital
market very di f f icul.t
ParLiament has always stressedz the urgent need for an effective poLicy to
encourage the convergence of econonies and further consolidation of the EtiS
in accordance rith the provisions of the agreenent yhich estabtished it.
Indeed, the devetopment of the EilS yi[[ entaiL the integration yithin the
European t{onetary Fund of three instruments: loan mechanisms, exchange agree-
ments and the ECU. The desired result routd be to obtain more rigorous
exchange agreements, not so much by estabtishing strict rules taid dorn in
advance, but rather on the basis of assessmenB by the European ibnetary Fund.
However, in the present circumstances, - the risk of deflection of trade
and shifts in the location of activity, fottowing marked changes in currency
parities in the course of a single year, certainty points to the need for
rapid adjustment of the ECU exchange rates as proposed by the Commission.
Consideration of the Commission proposaI
In its proposat for a regulationl th" Comrnission puts foruard a sotution
which in principte maintains existing legistation (Regutation (EEC) No. ?779178)
as regards reference to the first norking day of October, but provides for
an automatic reatignment whenever there is a change in currency parity in
relation to the ECU for the purposes of certain tegal acts adopted in the
customs sphere.
0J No. C 287, 15.10.1981, p.
0J No. C 117, 12.5.1980, p.
Doc. 1-942182
85, and 0J No. C 87, 5.4.198?, p. 74
56 and 0J No. C 66, 15.3.1982, p. 45
7.
8.
9.
1
2
3
-9- PE 84.023/finaL
10. It shouldrhoweverrbe ernphasized that, white it is important to approve the
amendment to Regutation No. ?779t78 and to ensure that it enters into force
as soon as possibte, in order to put an end to the disruption of trade flotrs,
it is atso necessary to proceed thereafter with the recasting of the regulation
itseLf to ensure that the scheme is correctty understood.
11. 1,1ith regard more particularLy to the yording of the articles proposed by the
Commissjon it wouLd be advisabl.e for ArticLe 1(3)rsecond sub-paragraph to be
redrafted to'improve comprehension of the text (proposed amendnent No. 1).
-10- PE 84.023 /f inal.


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