EUROPE 



Included in the European area are two new groupings of countries that have resulted in many changes in 

 tobacco duties in recent years. The European Community (EC), made up of West Germany, France, Italy, 

 Belgium-Luxembourg, and the Netherlands, is an economic union. They have estabhshed common external duty 

 rates and have no duties between members. 



The EC grouping includes Germany, the world's second-largest importer of tobacco. The EC imports about 

 600 million pounds of tobacco annually. 



The EC has included Greece and Turkey as associate members. Greek tobacco is admitted duty free and 

 currently Turkey has a duty-free quota of 39.5 million pounds in the EC. 



The EC took action to include duty preference on tobacco imported from Associated Overseas Countries or 

 Territories. EC members receive reverse preferences in the Associated Countries. 



The other grouping is the European Free Trade Association (EFTA). It is a free-trade association, mainly for 

 industrial products and not an economic union. EFTA members include the United Kingdom, Denmark, Sweden, 

 Norway, Austria, Switzerland, and Portugal. Duties on unmanufactured tobacco, an agricultural product, were not 

 changed; however, duties on cigarettes and other manufactured tobacco, classed as industrial products, were 

 imiformly reduced to zero (0) when traded between members. 



Within the EFTA grouping is the United Kingdom, the world's largest importer of tobacco. EFTA countries 

 import about 450 million prounds of unmanufactured tobacco a year. 



AUSTRIA (Member of EFTA) 



Item 



1968 



1957 



Specific rate 



(local 



currency) 



Total duty. 

 U.S. equiv. 



Specific rate 



(local 



currency) 



Total duty, 

 U.S. equiv. 1 



Tobacco: 



Unmanufactured. 



Waste 



Manufactured: 



Cigars 



Cigarettes. . . 



Other, n.e.s . 



Schilling per 

 100 kg. 



^ 750 

 ^400 



^ 30,320 

 ^ 34,640 

 ^ 17,320 



U.S. dol per lb. 



0.13 

 .07 



5.29 

 6.04 

 3.02 



Schilling per 

 100 kg. 



870 



870 

 870 

 870 



U.S. dol. per lb. 

 0.15 



.15 

 .15 

 .15 



Conversion rate, 1957 & 1968: 26.00 schillings (100 groschen) = USSl.OO. 



These two items were reduced 50 percent to these rates in the Kennedy Round Negotiations. These items were fully 

 ahead of schedule and are the final rates. 



Tariff rate reductions for manufactured tobacco products granted by Austria in the Kennedy Round Negotiations were 

 reduced two-fifths on January 1, 1968. The final rates will be realized in three equal installments on January 1, 1970, 1971 

 and 1972 respectively. Rates on manufactured tobacco products from EFTA Members are Zero 0. 



NOTE: Except for negligible quantities imported by individuals, all imports of leaf tobacco and tobacco products are made 

 by the Austrian Tobacco Monopoly which is exempt from the payment of import duties and equalization taxes. 



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