2001/76/EC: Council Decision of 22 December 2000 replacing the Decision of 4 April 1978 on the application of certain guidelines in the field of officially supported export credits - Arrangement on guidelines for officially supported export credits

Coming into Force09 January 2001
End of Effective Date08 December 2011
Celex Number32001D0076
ELIhttp://data.europa.eu/eli/dec/2001/76(1)/oj
Published date02 February 2001
Date22 December 2000
Official Gazette PublicationOfficial Journal of the European Communities, L 32, 02 February 2001
EUR-Lex - 32001D0076 - EN 32001D0076

2001/76/EC: Council Decision of 22 December 2000 replacing the Decision of 4 April 1978 on the application of certain guidelines in the field of officially supported export credits - Arrangement on guidelines for officially supported export credits

Official Journal L 032 , 02/02/2001 P. 0001 - 0054


Council Decision

of 22 December 2000

replacing the Decision of 4 April 1978 on the application of certain guidelines in the field of officially supported export credits

(2001/76/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Community is party to the OECD Arrangement on guidelines for officially supported export credits, hereinafter referred to as "the Arrangement";

(2) The Arrangement is the subject of a Council Decision of 4 April 1978, which was extended by Decision 93/112/EEC(1) and last amended by Decision 97/530/EC(2);

(3) The participants in the Arrangement have drawn up a new consolidated text which comprises all the amendments approved by them since the revision of the Arrangement, which was made applicable by Decision 93/112/EEC;

(4) In accepting the amendments and additions to the Arrangement made by Decision 97/530/EC, the Community had inter alia subscribed to a statement of principle by the participants in the Arrangement in which they expressed their intention to investigate guiding principles with a view to producing convergence among export credit premiums;

(5) The participants in the Arrangement drew up a series of additional guiding principles covering the establishment of minimum benchmarks for sovereign risk and country risk in connection with the premiums attached to officially supported export credits; those guiding principles were incorporated into the new consolidated text of the Arrangement in a manner and form compatible with the Arrangement;

(6) The text contained in the Annex to the Decision of 4 April 1978 should therefore be replaced by the consolidated text of the Arrangement; that Decision, Decision 93/112/EEC and Decision 97/530/EC should consequently be repealed,

HAS ADOPTED THIS DECISION:

Article 1

The guidelines contained in the Arrangement annexed to this Decision shall apply in the Community.

Article 2

The Decision of 4 April 1978 and the Annex thereto shall be replaced by this Decision and its Annex.

Consequently, the Decision of 4 April 1978, Decision 93/112/EEC and Decision 97/530/EC shall be repealed.

Article 3

This Decision is addressed to the Member States.

Done at Brussels, 22 December 2000.

For the Council

C. Pierret

The President

(1) OJ L 44, 22.2.1993, p. 1.

(2) OJ L 216, 8.8.1997, p. 77.

ANNEX

(TRANSLATION)

ARRANGEMENT ON GUIDELINES FOR OFFICIALLY SUPPORTED EXPORT CREDITS

TABLE OF CONTENTS

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INTRODUCTION

Purpose and Application

The main purpose of the Arrangement on Guidelines for Officially Supported Export Credits, referred to throughout this document as the Arrangement, is to provide a framework for the orderly use of officially supported export credits.

The Arrangement seeks to encourage competition among exporters from the OECD-exporting countries based on quality and price of goods and services exported rather than on the most favourable officially supported terms.

The Arrangement applies to officially supported export credits with repayment terms of two years or more, relating to exports of goods and/or services or to financial leases, i.e. a lease equivalent in effect to a contract of sale. The Arrangement also addresses the circumstances in which official support in the form of trade-related tied and partially untied aid - referred to throughout as tied aid - may be given and/or mixed with officially supported export credits.

"Official support"(1) can take the form of direct credits/financing, refinancing, interest rate support, aid financing (credits and grants), export credit insurance and guarantees. Direct credits/financing, refinancing and interest rate support are referred to as official financing support.

The Arrangement places limitations on the terms and conditions of export credits that benefit from official support. Such limitations include minimum premium benchmarks, the minimum cash payments to be made at or before the starting point of credit, maximum repayment terms and minimum interest rates which benefit from official financing support. There are also restrictions on the provision of tied aid. Finally, the Arrangement includes procedures for derogations from and possible exceptions to these restrictions, as well as procedures for prompt and prior notification, consultation, exchange of information and review.

Military equipment and agricultural commodities are excluded from the application of the Arrangement. Special guidelines apply to ships, nuclear power plant and aircraft.

Best Endeavours

The Arrangement sets out the most generous repayment terms and conditions that may be supported. All Participants recognise the risk that over time, these maximum repayment terms and conditions may come to be regarded as normal practice. They therefore undertake to take the necessary steps to prevent this risk from materialising.

Traditionally, certain trade or industrial sectors may also have enjoyed less generous repayment terms and conditions than the maximum allowed under the Arrangement. The Participants shall continue to respect such customary terms and conditions and shall do everything in their power to maintain the customary credit terms and conditions.

Status

The Arrangement, developed within the OECD framework, came into being in April 1978 following agreement among its Participants. The Arrangement is a "Gentlemen's Agreement" among the Participants. The Arrangement is not an OECD Act, although it receives the administrative support of the OECD Secretariat (the Secretariat).

CHAPTER I

SCOPE OF THE ARRANGEMENT

1. PARTICIPATION

(a) The Participants to the Arrangement are: Australia, Canada, the European Community (which includes the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom), Japan, Korea, New Zealand, Norway, Switzerland and the United States;

(b) the Participants agree to respect and to apply the terms of the Arrangement. Other countries willing to apply these Guidelines may become Participants following prior invitation of the existing Participants.

2. SCOPE OF APPLICATION

The Arrangement shall apply to all official support for exports of goods and/or services, or to financial leases, which have repayment terms (as defined in Article 8) of two years or more. This is regardless of whether the official support for export credits is given by means of direct credits/financing, refinancing, interest rate support, guarantee or insurance. The Arrangement shall also apply to official support in the form of tied aid.

3. SPECIAL SECTORAL APPLICATIONS AND EXCLUSIONS

The Participants shall apply special guidelines to the following sectors:

(a) Ships

The Arrangement shall apply to ships not covered by the Understanding on Export Credits for Ships (Annex I). Where a Participant intends to support terms for a ship covered by the Understanding - and therefore not by this Arrangement - that would be more favourable than those terms permitted by this Arrangement, the Participant shall notify all other Participants of such terms. The appropriate procedures for notification are set out in Article 49.

(b) Nuclear Power Plant

The Arrangement shall apply, except that where a corresponding provision exists in the Sector Understanding on Export Credits for Nuclear Power Plant (Annex II), which complements the Arrangement, the Sector Understanding shall prevail. The Arrangement shall apply to official support provided for the decommissioning of nuclear power plant, i.e. the closing down or dismantling of nuclear power plant.

(c) Aircraft

The Arrangement shall apply, except that where a corresponding provision exists in the Sector Understanding on Export Credits for Civil Aircraft (Annex III), which complements the Arrangement, the Sector Understanding shall prevail.

(d) Exclusions

The Arrangement does not apply to official support relating to exports of:

- Military Equipment, or

- Agricultural Commodities.

4. REVIEW

The Participants shall review, at least annually, the functioning of the Arrangement. Its provisions can be revised by review as set out in Articles 82, 83 and 84.

5. WITHDRAWAL

The Arrangement is of indefinite duration, nevertheless a Participant may withdraw by notifying the other Participants in writing by means of instant communication, e.g. the OECD Online Information System (OLIS), telex, telefax. The withdrawal takes effect sixty calendar days after receipt of the notification by the Participants.

6. MONITORING

The Secretariat shall monitor the implementation of the Arrangement.

CHAPTER II

PROVISIONS FOR EXPORT CREDITS

7. CASH PAYMENTS

(a) The Participants shall require purchasers of goods and services which are the subject of official support to make cash payments of a minimum of 15 per cent of the export contract value at or before the starting point of credit as defined in Article 9;

(b) the export contract value is the total amount to be paid by or on behalf of the purchaser for goods and/or services exported, i.e. excluding local costs as defined in Article 25 and also interest. In the case of a lease, it excludes the portion of the lease payment that is equivalent to interest;

(c) official support for such cash payments can only take the form of insurance and guarantees, i.e. pure cover, against the usual pre-credit risks;

(d) for the assessment of cash payments, the export contract value may be reduced proportionally if...

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