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Member States shall, in accordance with a schedule to be recommended by the Trade, Customs,
Taxation, Statistics, Money and Payments Commission, abolish existing differences in their external
Customs tariffs.
Member States undertake to apply the common Customs nomenclature and Customs statistical
nomenclature adopted by Council.
Article 38
Community Tariff Treatment
For the purposes of this Treaty, goods shall be accepted as eligible for Community tariff treatment if
they have been consigned to the territory of the importing Member States from the territory of another
Member State and originate from the Community.
The rules governing products originating from the Community shall be as contained in the relevant
Protocols and Decisions of the Community.
The Trade, Customs, Taxation, Statistics, Money and Payments Commission shall from time to time
examine whether the rules referred to in paragraph 2 of this Article can be amended to make them
simpler and more liberal. In order to ensure their smooth and equitable operation, the Council may
from time to time amend them.
Article 39
Trade Deflection
For the purposes of this Article, trade is said to be deflected if,
(a)
(b)
Imports of any particular product by a Member State from another Member State
increase,
(i)
as a result of the reduction or elimination of duties and charges on that
product; and
(ii)
because duties and charges levied by the exporting Member States on imports
of raw materials used for manufacture of the product in question are lower
than the corresponding duties and charges levied by the importing Member
State; and
this increase in imports causes or could cause serious injury to production which is
carried on in the territory of the importing Member State.
15.
The Council shall keep under review the question of trade deflection and its causes. It shall
take such decisions as are necessary, in order to deal with the causes of this deflection.
16.
In case of trade deflection to the detriment of a Member State resulting from the abusive
reduction or elimination of duties and charges levied by another Member State, the Council shall
study the question in order to arrive at a just solution.
Article 40
Fiscal Charges and Internal Taxation