AGREEMENT
IN THE FORM OF
A MEMORANDUM OF UNDERSTANDING
BETWEEN THE UNITED STATES OF AMERICA
AND THE EUROPEAN COMMUNITY
ON SPIRITUOUS BEVERAGES
MEMORANDUM OF UNDERSTANDING
ex 2208 Spirits, liqueurs and other spirituous beverages
As agreed in Singapore we have engaged in detailed negotiations regarding the elimination of duties on certain spirituous beverages.
Subject to the completion of our respective internal procedures, and with the exception of rum (2208.40) for which the special provisions set out in the Annex apply, the EC and US will eliminate their duties scheduled to be in force on 1 July 1997 for the HS96 headings listed below in 4 equal stages commencing 1 July 1997, followed by further reductions on 1 January 1998, 1 January 1999 and 1 January 2000:
HS 96
2208.20
spirits obtained by distilling grape wine or grape marc (grape brandy)
2208.30
whiskies
2208.50
gin and geneva vodka liqueurs and cordials
2208.60
vodka
2208.70
liqueurs and cordials
ex 2208.90 other than un-denatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume (covered by 2208.90.91 and 2208.90.99 by the EC and within 2208.90.80 by the US).
ANNEX
Subject: 2208.40 Rum and Taffia
A. EC Duties
1. The reductions in duties on rum with a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol with a 10% tolerance shall be as set out below:
In containers holding 2 litres or less
In containers holding more than 2 litres
Base rate
0,8 Ecu/%vol/hl + 4,1 Ecu/hl
0,8 Ecu/%vol/hl
1 July 1997
0,8 Ecu/%vol/hl + 4,1 Ecu/hl
0,8 Ecu/%vol/hl
1 July 1998
0,7 Ecu/%vol/hl +3,8 Ecu,/hl
0,7 Ecu/%vol/hl
1 July 1999
0,65 Ecu/%vol/hl +3,5 Ecu/hl
0,65 Ecu/%vol/hl
1 July 2000
0,6 Ecu/%vol/hI + 3,2 Ecu/hl
0,6 Ecu/%vol/hl
2. The EC duty on rum and taffia, other than that specified in paragraph 1 above, of a value specified in the following table shall be subject to the reduced duty rates below within the tariff quota amounts indicated until dutytreatment is reached on 1 January 2003. The tariff quota amounts cover rum in whatever size of container.
Duty rate
In containers holding 2 litres or less Value over Ecu 7,9 per litre of 100% alcohol
In containers holding 2 litres or less Value over Ecu 2,0 per litre of 100% alcohol
Tariff quota amount
Litre of 100% alcohol
1 July 1997
0,7 u/%voI/hI +3,5 Ecu/hI
0,7 Ecu/%vol/hl
890 000
1 January 1998
0,6 Ecu/%voI/hl+ 2,9 Ecu/hI
0,6 Ecu/%/vol/hl
1 950 000
1 January 1999
0,5 Ecu/%vol/hl
+2,3 Ecu/hl
0,5 Ecu/%/vol/hl
2 145 000
1 January 2000
0,4 Ecul%vol
0,4 Ecu/%vol/hl
2 359 500
1 January 2001
0,3 Ecu/%vol/hI+ 1,2 Ecu/hI
0,3 Ecu/%vol/hl
2 595 450
1 January 2002
0,2 Ecu/%vol/hl
+0,6 Ecu/hI
0,2 Ecu/%voI/hI
2 854 995
From 1 January 2003
Free
Free
unlimited
3. Rum and taffia below the price breaks indicated above as well as rum and taffia not covered by tariff quota amounts shall be subject to the same duty-free rates as shown in paragraph 1 above.
4. The European Community shall promptly notify the United States of any changes between 1 January 2000 and 1 January 2003 in the preferential treatment accorded to its imports of rum. The European Community shall, upon request, promptly enter into consultations with the United States with respect to any matter concerning US exports of rum, under paragraph 2 above, to the Community, with a view to reaching a mutually agreed solution on any matter raised in the consultations.
B. US Duties
5. The following reduction in duties shall apply to rum and taffia.
rum and taffia
(a) in containers each not holding over 4 liters valued over $3.00 per proof liter; and
(b) in containers each holding over 4 liters valued over 69 cents per proof liters
rum and taffia
(a) in containers each not holding over 4 liters valued not over $3.00 per proof liter; and
(b) in containers each holding over 69 cents per proof liter.
July 1, 1997
26.1 cents/proof liter
30.4 cents/proof liter
January 1 1998
21.7 cents/proof liter
28.1 cents/proof liter
January 1, 1999
17.4 cents/proof liter
25.9 cents/proof liter
January 1 2000
13.0 cents/proof liter
23.7 cents/proof liter
January 1 2001
8.7 cents/proof liter
23.7 cents/proof liter
January 1, 2002
4.3 cents/proof liter
23.7 cents/proof liter
January 1, 2003
0
23.7 cents/proof liter
EC - SPIRITS - Schedule CXL
CN 97
Label
Base Rate
Final Bound Rate
Jul 97
Imple-
mentation
Jan. 98
Imple-
mentation
Jan.99
Imple-
mentation
Jan. 2000
Imple-
mentation
2208
Undenatured ethyl alcohol of an alcoholic strength by volume of
less than 80% vol; spirits, liqueurs and other spirituous beverages
2208 20
Spirits obtained by distilling grape wine or grape marc
In containers holding 2 litres or less
2208 20 12
Cognac
1.12 Ecu/%
vol/hl + 7 Ecu/hl
free
0.84 Ecu/%vol + 5.3 Ecu/hl
0.56 Ecu/%
vol/hl + 3.5 Ecu/hl
0.28 Ecu/%
free
2208 20 14
Amagnac
1.12 Ecu/% vol/hl +7 Ecu/hl
free
0.84 Ecu/%vol + 5.3 Ecu/hl
0.56 Ecu/%
vol/hl + 3.5 Ecu/hl
0.28 Ecu/%vol/hl + 1.8 Ecu/hl
free
2208 20 26
Grappa
1.12 Ecu/% vol/hl +7 Ecu/hl
free
0.84 Ecu/%vol + 5.3 Ecu/hl
0.56 Ecu/%
vol/hl + 3.5 Ecu/hl
0.28 Ecu/%vol/hl + 1.8 Ecu/hl
free
2208 20 27
Brandy de Jerez
1.12 Ecu/% vol/hl +7 Ecu/hl
free
0.84 Ecu/%vol + 5.3 Ecu/hl
0.56 Ecu/%
vol/hl + 3.5 Ecu/hl
0.28 Ecu/%vol/hl + 1.8 Ecu/hl
free
2208 20 29
Other
1.12 Ecu/% vol/hl + 7
Ecu/hl
free
0.84 Ecu/%vol + 5.3 Ecu/hl
0.56 Ecu/%
vol/hl + 3.5 Ecu/hl
0.28 Ecu/%vol/hl + 1.8 Ecu/hl
free
2208 20 40
In containers holding more than 2 litres Raw distillate
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vol
0.56 Ecu/%
vol/hl
0.28 Ecu/%vol/hl
free
2208 20 62
Other Cognac
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vol
0.56 Ecu/%
vol/hl
0.28 Ecu/%vol/hl
free
2208 20 64
Armagnac
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vol
0.56 Ecu/%
vol/hl
0.28 Ecu/%vol/hl
free
2208 20 86
Grappa
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vol
0.56 Ecu/%
vol/hl
0.28 Ecu/%vol/hl
free
2208 20 87
Brandy de Jerez
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vo
0.56 Ecu/%
vol/hl
0.28 Ecu/%vol/hl
free
EC SPIRITS-Schedule CXL
CN 97
Label
Base Rate
Final Bound Rate
Jul 97
Jan 98
Jan. 99
Jan 2000
2208 20 89
Other
1.12 Ecu/% vol/hl
free
0.84 Ecu/%vol vol/hl
0.56 Ecu/% vol/hl
0.28 Ecu/% vol/hl
free
2208 30
Whiskies
Bourbon whiskey, in containers holding
2208 30 11
2 litres or less
0.2 Ecu/% vol/hl + 1.5 Ecu/hl
free
0.15 Ecu/% vol/hl + 1.13 Ecu/hl
0.1 Ecu/% vol/hl + 0.8 Ecu/hl
0.05 Ecu/% vol/hl + 0.8 Ecu/hl
free
2208 30 19
More than 2 litres
0.2 Ecu/% vol/hl
free
0.15 Ecu/% vol/hl
0.1 Ecu/% vol/hl
vol/hl
0.05 Ecu/%
free
2208 30 32
Scotch whisky
Malt whisky, in containers holding 2 litres or less
0.28 Ecu/% vol/hl + 2.1 Ecu/hl
free
0.21 Ecu/% + 1.6 Ecu/hl
0.14 Ecu/% vol/hl + 1.1 Ecu/hl
0.07 Ecu/% vol/hl + 0.5 Ecu/hl
free
2208 30 38
More than 2 litres
0.28 Ecu/% vol/hl
free
0.21 Ecu/%vol/hl + 1.6 Ecu/hl
0.14 Ecu/% vol/hl
0.07 Ecu/%vol/hl
free
2208 30 52
Blended whisky, in containers holding 2 litres or less
0.28 Ecu/% vol/hl + 2.1 Ecu/hl
free
0.21 Ecu/%vol/hl + 1.6 Ecu/hl
0.14 Ecu/% vol/hl + 1.1 Ecu/hl
0.07 Ecu/% vol/hl + 0.5 Ecu/hl
free
2208 30 58
More than 2 tires
0.28 Ecu/% vol/hl
free
0.21 Ecu/% vol/hl
0.14 Ecu/% vol/hl
0.07 Ecu/% vol/hl
free
2208 30 72
Other, in containers holding 2 litres or less
0.28 Ecu/% vol/hl + 2.1 Ecu/hl
free
0.21 Ecu/% + 1.6 Ecu/hl
0.14 Ecu/% vol/hl + 1.1 Ecu/hl
0.07 Ecu/% vol/hl + 0.5 Ecu/hl
free
2208 30 78
More than 2 litres
0.28 Ecu/% vol/hl
free
0.21 Ecu/% vol/hl
0.14 Ecu/% vol/hl
0.07 Ecu/% vol/hl
free
2208 30 82
Other, in containers holding 2 litres or less
0.28 Ecu/% vol/hl + 2.1 Ecu/hl
free
0.21 Ecu/% + 1.6 Ecu/hl
0.14 Ecu/% vol/hl + 1.1 Ecu/hl
0.07 Ecu/% vol/hl + 0.5 Ecu/hl
free
CN 97
Label
Base Rate
Final Bound
Jul 97
Jan 98
Jan 99
Jan 2000
2208 30 88
More than 2 Litres
0.28 Ecu/% vol/hl
free
0.21 Ecu/% vol/hl
0.21 Ecu/% vol/hl
0.14 Ecu/% vol/hl
0.07 Ecu/% vol/hl
2208 40
2208 40 10
Rum and Taffia:
In containers holding 2 litres or less Ex. Rum with a content of volatile substances other ethyl and methyl alchol equal to or exceeding 225 gams per hectolitre of pure alchol with a 10% tolerance.
Ex. Other
0.8 Ecu/% vol/hl + 4.1 Ecu/hl
0.8 Ecu/% vol/hl + 4.1 Ecu/hl
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
See Appendix A
See Appendix A
See Appendix A
See Appendix A
2208 40 90
In containers holding more than 2 litres Ex. Rum with a content of volatile substances other than ethyl and methyl alchol equal to or exceeding 225 grams per hectolitre of pure alchol with a 10% tolerance.
Ex: Other
0.8 Ecu/% vol/hl
0.8 Ecu/% vol/hl
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
See Appendix A
See Appendix A
See
Appendix A
2208 50
2208 50 11
Gin and geneva:
Gin, in containers holding:
2 litres or less
0.8 Ecu/% vol/hl + 4.1 Ecu/hl
free
0.6 Ecu/% vol/hl + 3.1 Ecu/hl
0.4 Ecu/% vol/hl + 2.1 Ecu/hl
0.2 Ecu/% vol/hl + 1.0 Ecu/hl
free
2208 50 19
More than 2 litres
0.8 Ecu/% vol/hl
free
0.6 Ecu/% vol/hl
0.4 Ecu/% vol/hl
0.2 Ecu/% vol/hl
free
2208 50 91
Geneva, in containers holding: 2 litres or less
1.3 Ecu/% vol/hl + 8.2 Ecu/hl
free
1.0 Ecu/% vol/hl + 6.2 Ecu/hl
0.7 Ecu/% vol/hl + 4.1 Ecu/hl
0.3 Ecu/% vol/hl + 2.1 Ecu/hl
free
2208 50 99
More than 2 litres
1.3 Ecu/% vol/hl
free
1.0 Ecu/% vol/hl
0.7 Ecu/% vol/hl
0.3 Ecu/% vol/hl
free
2208 60
Vodka
Of an alcholic strenght by volum of 45.4% vol or less in containers holding:
2 litres or less
1.1 Ecu/%
free
0.8 Ecu/% l
0.6 Ecu/% l
0.3 Ecu/%
free
.
EC SPIRITS SCHEDULE CXL
CN 97
Label
Base Rate
Final Bound Rate
Jan.97
Jan 98
Jan. 99
Jan 2000
2208 90 41
Ouzo
Other
Sprits(excluding Liquers)
Distlled from fruit
1.3 Ecu/% vol/hl + 8.2 Ecu/hl
free
1.0 Ecu/% vol/hl + 6.2 Ecu/hl
0.7 Ecu/% vol/hl + 4.1 Ecu/hl
0.3 Ecu/% vol/hl + 2.1 Ecu/hl
free
2208 90 45
Calvados
1.12 Ecu/% vol/hl + 7 Ecu/hl
free
0.84 Ecu/% vol/hl + 5.3 Ecu/hl
0.56 Ecu/% vol/hl + 3.5 Ecu/hl
0.56 Ecu/% vol/hl + 3.5 Ecu/hl
free
2208 90 48
Other
1.12 Ecu/% vol/hl + 7 Ecu/hl
free
0.84 Ecu/% vol/hl + 5.3 Ecu/hl
0.56 Ecu/% vol/hl + 3.5 Ecu/hl
0.56 Ecu/% vol/hl + 3.5 Ecu/hl
free
2208 90 52
Other
Korn
1.3 Ecu/% vol/hl +8.2 Ecu/hl
free
1.0 Ecu/% vol/hl + 6.2 Ecu/hl
0.7 Ecu/% vol/hl + 4.1 Ecu/hl
0.3 Ecu/% vol/hl + 2.1 Ecu/hl
free
2208 90 57
Other
1.3 Ecu/% vol/hl +8.2 Ecu/hl
free
1.0 Ecu/% vol/hl + 6.2 Ecu/hl
0.7 Ecu/% vol/hl + 4.1 Ecu/hl
0.3 Ecu/% vol/hl + 2.1 Ecu/hl
free
2208 90 69
Other spiritous beverages
More than 2 litres
Spirits (excluding Liquerus)
1.3 Ecu/% vol/hl + 8.2 Ecu/hl
free
1.0 Ecu/% vol/hl + 6.2 Ecu/hl
0.7 Ecu/% vol/hl + 4.1 Ecu/hl
0.3 Ecu/% vol/hl + 2.1 Ecu/hl
free
2208 90 71
Distilled from fruit
1.12 Ecu/% vol/hl
free
0.84 Ecu/% vol/hl
0.56 Ecu/% vol/hl
0.28 Ecu/% vol/hl
free
2208 90 74
Other
1.3 Ecu/% vol/hl
free
1.0 Ecu/% vol/hl
0.7 Ecu/% vol/hl
0.3 Ecu/% vol/hl
free
2208 90 78
Other spiritous beverages
1.3 Ecu/% vol/hl
free
1.0 Ecu/% vol/hl
0.7 Ecu/% vol/hl
0.3 Ecu/% vol/hl
free
EC - SPIRITS-SCHEDULE CXL-APPENDIX A
CN 97
Label
Base Rate
Final Bound Rate
IMPLEMENTATION
1997
1998
1999
2000
2001
2002
2003
2208 40
Rum and taffia
2208 40 10
In containers holding 2 litres or less
Ex: Rum with a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol with a 10% tolerance
0.8 Ecu/% vol/hl + 4.1 Ecu/hl
0.6 Ecu/% vol/hl +3.2 ECU/hl
July 1997
0.8
ECU/% vol/hl + 4.1 ECU/hl
July 1998
0.7
ECU/% vol/hl + 3.8 ECU/hl
July 1999
0.65
ECU/% vol/hl + 3.5 ECU/hl
July 2000
0.6
ECU/% vol/hl + 3.2 ECU/hl
Ex other:
Valued over ECU 7.9 per litre of 100% alcohol
0.8
ECU/% vol/hl + 4.1 ECU/hl
Free
July 1997
0.7
ECU/% vol/hl + 3.5 ECU/hl
+3.5 Ecu/hl*
July 1998
0.6
ECU/% vol/hl + 2.9 ECU/hl
July 1999
0.5
ECU/% vol/hl + 2.3 ECU/hl
July 2000
0.4
ECU/% vol/hl + 1.8 ECU/hl
Jan 2001
03
ECU/% vol/hl + 1.2 ECU/hl
Jan 2002
0.2
ECU/% vol/hl + 0.6 ECU/hl
Jan 2003
Free
Other
0.8
ECU/% vol/hl + 4.1 ECU/hl
0.6
ECU/% vol/hl + 3.2 ECU/hl
July 1997
0.8
ECU/% vol/hl +4.1 Ecu/hl
July 1998
0.7
ECU/% vol/hl + 3.8 ECU/hl
July 1999
0.65
ECU/% vol/hl + 3.5 ECU/hl
July 2000
0.6
ECU/% vol/hl + 3.2 ECU/hl
2208 40 90
In containers holding more than 2 litresEx: Rum with a content of volatile substances other than ethyl and methyl alcohol equal to or exceeding 225 grams per hectolitre of pure alcohol with a 10% tolerance
0.8
ECU/% vol/hl
0.6
ECU/% vol/hl
July 1997
0.8
ECU/% vol/hl
July 1998
0.7
ECU/% vol/hl
July 1999
0.65
ECU/% vol/hl
July 2000
0.6
ECU/% vol/hl
Ex Other:
Valued over ECU 2.0 per litre of 100% alcohol
0.8
ECU/% vol/hl
free
July 1997
0.7
ECU/% vol/hl + 3.5 Ecu/hl*
July 1998
0.6
ECU/% vol/hl + 2.9 Ecu/hl
July 1999
0.5
ECU/% vol/hl+ 2.3 Ecu/hl
July 2000
0.4
ECU/% vol/hl
+ 1.8 Ecu/hl
Jan 2001
03
ECU/% vol/hl + 1.2 Ecu/hl
Jan 2002
0.2
ECU/% vol/hl + 0.6 ECU/hl
Jan 2003
Free
Other
0.8
ECU/% vol/hl + 4.1 Ecu/hl
0.6
ECU/% vol/hl
+ 3.2 Ecu/hl
July 1997
0.8
ECU/% vol/hl
+ 4.1 Ecu/hl
July 1998
0.7
ECU/% vol/hl
+ 3.8 Ecu/hl
July 1999
0.65
ECU/% vol/hl
+ 3.5 Ecu/hl
July 2000
0.6
ECU/% vol/hl
+ 3.2 Ecu/hl
2208 40 90
In containers holding more than 2 litre Ex: Rum with a content of volatile substances other than ethyl and methyl alchol equal to or exceeding 225 grams per hectorlitre of pure alchol with a 10% tolerance
0.8
ECU/% vol/hl
0.6
ECU/% vol/hl
July 1997
0.8
ECU/% vol/hl
July 1998
0.7
ECU/% vol/hl*
July 1999
0.65
ECU/% vol/hl
July 2000
0.6
ECU/% vol/hl
Ex Other:
Valued over ECU 2.0 per litre of 100% alcohol
0.8
ECU/% vol/hl
free
July 1997
0.7
ECU/% vol/hl*
July 1998
0.6
ECU/% vol/hl*
July 1999
0.5
ECU/% vol/hl*
July 2000
0.4
ECU/% vol/hl*
Jan 2001
03
ECU/% vol/hl*
Jan 2002
0.2
Ecu/% vol/hl
Jan 2003
Free
Other
0.8
ECU/% vol/hl
0.6
ECU/% vol/hl
July 1997
0.8
ECU/% vol/hl
+ 4.1 Ecu/hl
July 1998
0.7
ECU/% vol/hl
July 1999
0.65
ECU/% vol/hl
July 2000
0.6
ECU/% vol/hl
Note: In the period 1 July 1997 to 31 December 2002 these concessions shall be limited by the tariff quota amounts indicated below within which rum and taffia in whatever size container can be imported at the duty rates indicated. From 1 January 2003 there will be no tariff quota limitation:
Tariff Quota
Litres of 100% alcohol
Tariff Quota
Litres of 100% alcohol
Tariff Quota
Litres of 100% alchol
Period:
890,000
1 January 1999 31 December 1999
2,145,000
1 January 2001- 31 December 2001
2,595,450
1 July 1997- 31 December 1997
1 January 1998 - 31 December 1998
1,950,000
1 January 2000 31 December 2000
2,359,500
1 January 2002 31 December 2002
2,854,995
Done at Geneva, {Date October 3, 1997}
For the United States of America
{signature}
For the European Community
{signature}
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