THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to the proposal from the Commission,

Whereas Article 18 of the Cooperation Agreement between the European Economic Community and the Republic of Lebanon, hereinafter referred to as the ‘Cooperation Agreement’, provides for special arrangements for imports of olive oil falling within CN codes 1509 and 1510, wholly obtained in Lebanon and transported direct from that country to the Community;

Whereas, for olive oil falling within CN codes 1509 10 10, 1509 10 90 and 1510 00 10, the special arrangements provide for a flat-rate deduction of ECU 0,7245 per 100 kilograms from the applicable levy, representing the reduction provided for in Article 18 (l)(a) of the Cooperation Agreement; whereas, provided that Lebanon levies an export charge, those arrangements provide for a further reduction of that levy corresponding to the amount of the special charge, but not exceeding ECU 5,796 per 100 kilograms, representing the reduction provided for in Article 18 (1) (b) of the Cooperation Agreement;

Whereas the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations provides that the variable levies applied to imports of agricultural products are to be replaced by fixed customs duties from 1 July 1995;

Whereas continuation of the arrangements calls for the adoption of new implementing rules and the repeal of Council Regulation (EEC) No 1620/77 of 18 July 1977 on imports of olive oil originating in Lebanon;

Whereas, in accordance with the Cooperation Agreement, the special export charge should be reflected in the price of the olive oil upon importation into the Community; whereas, to ensure the correct application of the arrangements in question, the necessary measures should be adopted to ensure that the charge is paid at the latest when the oil is imported;

Whereas if the present conditions of the special arrangements provided for in the Cooperation Agreement are amended, in particular as regards the amounts, or if a new agreement is concluded, it may be necessary to adjust this Regulation to incorporate those changes; whereas provision should be made for those adjustments to be adopted by the Commission in accordance with the procedure laid down in Article 38 of Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organization of the market in oils and fats;

Whereas, by Regulation (EC) No 2146/95, the Commission introduced an autonomous system as a transitional measure expiring on 30 June 1997; whereas this Regulation should therefore apply from 1 July 1997,

HAS ADOPTED THIS REGULATION: