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FRAME EXTERNAL
TO ROUTINE FCO TELEGRAM NUMBER 6473 OF 28 OCTOBER
INFO UKMIS GENEVA, WASHINGTON
ARTICLE 113 COMMITTEE (DEPUTIES): 28 OCTOBER
MTN'S: CUSTOMS VALUATION
MY TELNO 6311
SUMMARY
NET
REC'
IN REG
LART
FO
R+
--HIK 121
121/616/1
2
1. THE LATEST VERSION OF THE COMMISSION DRAFT CODE WAS DISCUSSED
AMENDED AND APPROVED, SUBJECT TO A SINGLE RESERVATION BY FRANCE.
DISCUSSION
2. IN THE COURSE OF AN ARTICLE BY ARTICLE EXAMINATION OF THE LATEST
COMMISSION DRAFT CODE, A NUMBER OF RELATIVELY SMALL AMENDMENTS BY FRANCE THE UK, DENMARK AND THE COMMISSION WERE AGREED AND THERE WAS SUBSTANTIAL DISCUSSION OF MAJOR RESERVATIONS BY FRANCE AND DENMARK, THE FRENCH RESERVATION CONCERNED THE DISTINCTION DRAWN IN ARTICLE 1
BETWEEN THE TREATMENT OF TRANSACTIONS BETWEEN ASSOCIATED HOUSES AND OTHER TRANSACTIONS. CHUMAS (COMMISSION) OPPOSED THE SUGGESTION WHICH RECEIVED LITTLE SUPPORT FROM OTHERS PRESENT. THE DANES SAID THAT, DESPITE THE COMMISSION'S INTENTION TO PREVENT THIS THE DRAFT AS A WHOLE LEFT IT OPEN FOR THE US TO ADOPT ARBITRARY VALUATION PRACTICES
AND THEY WISHED THEREFORE FOR THE INCLUSION OF A NEW PARAGRAPH IN
ARTICLE 5 BASED ON CURRENT COMMUNITY VALUATION LAW. THIS SUGGESTION
TOO RECEIVED LITTLE SUPPORT BUT THE DUTCH WERE ABLE TO LIFT THEIR
RESERVATION ON THE ARTICLE WHEN THE UK PROPOSED, AND THE COMMISSION AND OTHER MEMBER STATES AGREED, THE INCLUSION OF A NEW ARTICLE TO
GO AT THE END OF THE DRAFT CODE. THE NEW ARTICLE WOULD REQUIRE
PERIODIC CONSIDERATION ON THE CRITERIA UNDER WHICH MEMBER STATES
ATTEMPT SUCCESSIVELY TO USE ARTICLES 1 TO 5 AND THEN MAKE DECISIONS
UNDER ARTICLE 5,
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