31.12.98 Official Journal of the European Communities L 358/85 COUNCIL REGULATION (EC) No 2863/98 of 30 December 1998 amending Regulation (EC) No 70/97 concerning the arrangements applicable to imports into the Community of products originating in the Republics of Bosnia and Herzegovina and Croatia and to imports of wine originating in the former Yugoslav Republic of Macedonia and the Republic of Slovenia 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 Council Regulation (EC) No 70/97 of 20 December 1996 concerning the arrangements applicable to imports into the Community of products originating in the Republics of Bosnia and Herzegovina and Croatia and to imports of wine originating in the former Yugoslav Republic of Macedonia and the Republic of Slovenia (%) expires on 31 December 1998; Whereas these arrangements will eventually have to be replaced by provisions contained in bilateral agreements to be negotiated with the countries in question; whereas in the meantime the arrangements granted by Regulation (EC) No 70/97 should be maintained; whereas the amounts of the tariff ceilings for industrial products should be increased annually by 5 % as provided for in Article 4(1) of that Regulation; whereas, following the amendments to the combined nomenclature and to the Taric subdivisions, Regulation (EC) No 70/97 should be amended accordingly; Whereas Commission Regulation (EC) No 12/97 () amended Title IV, Chapter 2 of Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (°); whereas Article 1(3) of Regulation (EC) No 70/97 should therefore be amended accordingly; Whereas, in order to avoid damage to the Community industry for cucumbers, it is necessary to grant the concession for these products in the framework of a tariff quota instead of a reference quantity; Whereas, in accordance with the conclusions of the Council of 29 April 1997, the development of bilateral relations between the European Union and the successor republics of the former Yugoslavia, other than Slovenia, is subject to certain conditions; whereas the renewal of auto- nomous trade preferences is linked to respect for funda- (") OJ L 16, 18. 1. 1997, p. 1. Regulation as last amended by Regulation (EC) No 2636/97 (O] L 356, 31. 12. 1997, p. 16). ® OJ L9, 13. 1. 1997, p. 1. () OJ L 253, 11. 10. 1993, p. 1. Regulation as last amended by Regulation (EC) No 75/98 (OJ L 7, 13. 1. 1998, p. 3). mental principles of democracy and human rights and to the readiness of the countries concerned to allow the development of economic relations between themselves; whereas it is, therefore, appropriate to monitor the compliance by Bosnia and Herzegovina, Croatia and the Federal Republic of Yugoslavia with these conditions; whereas the Council adopted conclusions on 9 November 1998 on progress in these countries in respect of these conditions; Whereas there has been some progress in Bosnia and Herzegovina and Croatia in strengthening democracy and human rights and in developing relations with their neighbours; whereas it is therefore appropriate for these countries to continue to be included in the autonomous trade regime for 1999; Whereas when the autonomous trade preferences were extended to the Federal Republic of Yugoslavia on 29 April 1997, the Council issued a declaration setting out its expectations in terms of democratisation, in particular the full and speedy implementation of the ‘Gonzalez’ report; whereas it also noted that in the absence of progress towards meeting these criteria, the decision granting auto- nomous trade preferences would be reviewed; whereas no significant progress has been made with regard to the relevant conditions, it is not appropriate at this time to include the Federal Republic of Yugoslavia in the auto- nomous trade regime for 1999, without prejudice to the possibility of including the Federal Republic of Yugo- slavia at a later stage should conditions so permit, HAS ADOPTED THIS REGULATION: Article 1 Regulation (EC) No 70/97 is hereby amended as follows: 1. in Article 1(3), ‘section 3 of Commission Regulation (EEC) No 2454/93’, shall be replaced by ‘section 2 of Commission Regulation (EEC) No 2454/93’; 2. the second subparagraph of Article 14 shall be replaced by the following: ‘It shall apply from 1 January 1997 to 31 December 1999.;