L 295/46 Official Journal of the European Communities 4.11.98 COMMISSION DECISION of 23 October 1998 under the provisions of Council Regulation (EC) No 3286/94 concerning meas- ures maintained by the Republic of Argentina on the export of bovine hides and the import of finished leather (notified under document number C(1998) 3206) (98/618/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community’s rights under international trade rules, in particular those established under the auspices of the World Trade Organisation (WTO) ('), as amended by Regulation (EC) No 356/95 (%), and in particular Articles 13 and 14 thereof, After consulting the Advisory Committee, Whereas: A. PROCEDURE (1) On 8 January 1997 the Commission received a complaint pursuant to Article 4 of Regulation (EC) No 3286/94 (hereafter the ‘Regulation’). The complaint was lodged by Cotance, the Confedera- tion of National Associations of Tanners and Dressers of the European Community, on behalf of those of its members that are engaged in produc- tion and/or finishing of bovine leather. (2)  The complainant alleged that a number of Argen- tinian measures on the export of raw and semi- tanned bovine hides and the import of finished leather are inconsistent with several provisions of the Agreement establishing the World Trade Organisation (hereafter “WTO Agreement’) and its Annexes and that these measures are causing adverse trade effects to its member companies. On that basis the complainant asked the Commission to take the necessary actions to convince Argentina to repeal these practices consisting of: (a) a de facto export ban on raw hides; (b) a customs control procedure for raw hides in which experts of the Argentinian tanning industry participate; (c) the payment of additional value added tax and a stat- () OJ L 349, 31. 12. 1994, p. 71. () OJ L 41, 23. 2. 1995, p. 3. istic duty on finished leather imports; and (d) the advance payment of turnover tax when importing finished leather. (3  The complaint contained sufficient prima facie evidence to justify the initiation of a Community examination procedure pursuant to Article 8 of the Regulation. Consequently, an examination pro- cedure was initiated on 26 February 1997 (3). 4) Following the initiation of the Community exam- ination procedure the Commission conducted an in-depth legal and factual investigation. Based on the findings of this investigation the Commission reached the conclusions which are indicated below. B. FINDINGS REGARDING THE EXISTENCE OF AN OBSTACLE TO TRADE (5) The investigation revealed that the Argentinian export regime for raw and semi-tanned bovine hides operate as a de facto export prohibition. It appears that, since 1972, the Argentinian author- ities have shown a constant will to prohibit the export of raw and semi-tanned bovine hides by means of various measures, which all have succeeded in considerably restricting and finally making impossible the export of raw and semi- tanned bovine hides. Before 1972 there were regular and important trade flows in hides between Argentina and the Community. The fact that this export regime succeeded in reaching its objective is demonstrated by the following elements: (a) the Argentinian authorities admit that there have been no (legal) exports of raw and semi-tanned bovine hides since 1987; (b) hide traders state that it is impossible to buy hides in Argentina for export purposes; and (c) the Argen- tinian tanning industry admits that the Argentinian hide market is not a free market. Furthermore, by availing themselves of Article XI:2(a) of GATT () OJ C 59, 26. 2. 1997, p. 6.