Revised Laws of Saint Lucia (2021)

Schedule III

DEVELOPMENT OF THE OILS AND FATS SUB-SECTOR

PREAMBLE

The Member States:

Recognising that it is their policy to -

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   (ii)     enhance the long-term viability of the regional oils and fats industry;

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   (iii)     facilitate the regional marketing of oils produced from indigenous raw materials;

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   (iv)     encourage the development and marketing of a wider range of competitive value-added products especially in the less developed countries;

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   (v)     encourage the role of the private sector in determining the conduct of the trade.

Have Agreed as follows:

PART I
PRELIMINARY

Use of Terms

In this Schedule, unless the context otherwise requires:

“ancillary” means any substance actually required to be used in conjunction with oils and fats in the process leading to a finished product but which cannot be used as a substitute for oils and fats produced within the Community and which is included in Appendix I to this Schedule;

“(Intra-Regional)Price” means the f.o.b. price of raw materials, refined edible oil and hydrogenated edible fats, when exported from one Member State to another;

“oils and fats” means oilseeds, their seedlings and intermediate or final products including margarine, shortening and soaps in the form of toilet and laundry derived therefrom, provided those oilseeds and seedlings qualify as being of Community Origin;

“raw materials” means copra and other oilseeds, and unrefined oils qualifying as being of Community Origin;

“substitute” means commodities listed in Appendix II to this Schedule which are put to similar use as, and are in commercial competition with, oils and fats.

Objectives

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   (a)     to support and encourage the viability and expansion and diversification of the Oils and Fats Sub-Sector in the Community;

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   (b)     to promote intra-regional trade in oils and fats and exports to third countries;

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   (c)     to increase competitiveness of the Oils and Fats Sub-Sector;

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   (d)     to improve and promote the production of traditional and non-traditional oilseeds within the Community.

PART II
SCOPE OF THE SCHEDULE

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   1.   The intra-Community reference price of copra and coconut oils shall be determined as a result of consultations and negotiations by a Committee of Buyers and Sellers at the Meeting of representatives of Member States (hereinafter called “the Conference on Oils and Fats”). The resultant prices would be presented by the Committee of Buyers and Sellers to the Conference on Oils and Fats for acceptance and notification to COTED.

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   2.   COTED, on the recommendation of the Conference on Oils and Fats, shall endorse the intra-Community reference price for the ensuing year in respect of:

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      (a)     copra, which shall be expressed as an f.o.b. price in buyers' containers;

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      (b)     unrefined coconut oil, which shall be expressed as an f.o.b. price in buyers' containers.

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   3.   (1)   The Committee of Buyers and Sellers shall undertake consultations and negotiations to determine–

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      (a)     the quantities of copra and coconut oil to be purchased and sold by respective buyers and sellers present at the Meeting of the Conference on Oils and Fats;

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      (b)     the period and other particulars under which the transactions at (a) shall be made;

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   (2)   The determination of the Committee of Buyers and Sellers with respect to (a) and (b) shall be presented to the Conference on Oils and Fats for acceptance;

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   (3)   The Conference on Oils and Fats shall notify COTED of the quantities of copra and coconut oil to be traded, the period over which the trade shall be undertaken and other relevant particulars relating to purchase and sale of coconut oil in the Community;

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   (4)   In the determination of the quantities of coconut oil to be supplied by the sellers, the Committee of Buyers and Sellers shall give consideration to information on the availability of copra and coconut oil from the less developed countries.

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   4.   COTED shall, as necessary, determine the conditions for intra-regional trade in oils and fats, other than coconut oil.

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   5.   COTED shall, as necessary, determine the conditions for the importation and exportation of substitutes.

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   6.   Importation of ancillaries shall be free from restriction.

PART III
IMPLEMENTATION OF THE SCHEDULE

7.   (1)   Member States shall, not later than 31 January in every year, submit to the Secretary-General in such form as COTED may, from time to time prescribe, its estimates of production, domestic consumption requirements, exports and imports in respect of such oils and fats and substitutes as may be determined by COTED.

(2)   Member States shall provide the Secretary-General, upon request, with such other information as may be required in order to monitor the operation of this Schedule.

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   8.   The Secretary-General, on the basis of information supplied by Member States, shall keep the Member States informed of production and supply capabilities.

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   9.   The Meeting of the Conference on Oils and Fats shall be convened by the Secretary-General at least once per year.

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   10.   The Secretary-General shall, at the request of a Member State, and with the concurrence of the majority of the Member States, convene a Special Meeting of the Conference on Oils and Fats.

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   11.   (1)   The Conference on Oils and Fats shall consist of one delegate (with such advisers as may be considered necessary) to be nominated by each Member State;

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   (2)   Private sector and other organisations, including the farming community, shall be invited to participate as observers at Meetings of the Conference on Oils and Fats;

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   (3)   Every Meeting of the Conference on Oils and Fats shall elect its Chairman;

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   (4)   At every Meeting of the Conference on Oils and Fats, the delegates of 6 Member States, including 2 MDCs, shall form a quorum;

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   (5)   At Meetings of the Conference on Oils and Fats, private sector representatives shall play a more active role in the deliberations through the participation of buyers and sellers. In this regard, the Conference on Oils and Fats shall facilitate the establishment of a Committee of Buyers and Sellers of Copra and Coconut Oil to engage in consultations and negotiations to determine the prices and quantities governing trade in selected oils and fats;

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   (6)   The Chairman of the Committee of Buyers and Sellers shall submit conclusions to the Conference on Oils and Fats for acceptance;

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   (7)   Every Meeting of the Conference on Oils and Fats shall be serviced by the Secretariat;

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   (8)   Recommendations of the Conference on Oils and Fats shall be submitted to COTED for its approval.

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   12.   (1)   The Conference on Oils and Fats shall–

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      (a)     review the operation of this Schedule;

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      (b)     consider any matter relating to this Schedule referred to the Conference on Oils and Fats by any Member State or any Organ or Body of the Community;

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      (c)     review regional and international developments affecting the Oils and Fats Sub-Sector;

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      (d)     make recommendations to support and promote the growth and development of the Oils and Fats Sub-Sector.

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   (2)   Recommendations emanating from 14(c) and (d) shall be submitted to COTED and Ministers with responsibility for Agriculture for consideration and appropriate action.

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   13.   Member States shall be responsible for the administration of the provisions of this Schedule within their respective countries and, for that purpose, shall enact the necessary legislative or other measures required to give effect to the provisions of this Schedule.

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   14.   Where COTED is satisfied that the action taken by a Member State is not in compliance with the provisions of this Schedule and is likely to prejudice any benefits likely to be derived by another Member State, COTED may recommend measures intended to ameliorate any damage or institute any corrective measures or apply any appropriate sanctions.

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   15.   COTED may, by unanimous decision, recommend the amendment of the provisions of this Schedule or the substitution of a new Schedule therefor.

PART IV
REGULATION OF INPUTS IN THE COMMUNITY

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   16.   The Member States shall apply the rate of duty set by COTED on all imported oils, fats and their substitutes.

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   17.   (1)   (a)   In the event of insufficient supply, the Secretary-General acting on behalf of COTED may grant a suspension of the Common External Tariff in accordance with Article 72 of the Treaty.

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      (b)     In determining the adequacy of supply, the Secretary-General shall take into consideration the allocation and provisions which obtain under this Schedule.

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   (2)   (a)   The Secretary-General may issue a certificate under the Safeguard Mechanism of the Rules of Origin in accordance with Article 73 of the Treaty, in the event of insufficient supply of inputs used in the manufacture of oils and fats products.

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      (b)     In determining the adequacy of supply, the Secretary-General shall take into consideration the guidelines established by the Conference of Oils and Fats and COTED.

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   18.   The Member States may use automatic licences to monitor imports of oils and fats especially where other methods prove inadequate.

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   19.   No Member State shall use non-automatic licences to regulate or restrict the imports of oils and fats except under paragraph 22.

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   20.   (1)   If any Member State considers that–

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      (a)     its oils and fats processing industry is being injured as a result of a substantial decrease (10 per cent for LDCs and 25 per cent for MDCs) in internal demand for a domestic product; and

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      (b)     this decrease in demand is due to an increase in imports consigned from other Member States, that Member State shall take remedial measures in accordance with Chapter V of this Treaty;

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   (2)   Where in the Community, especially in any of the LDC Member States, a difficulty arises from the importation of oils, fats or their substitutes from third countries, the affected Member State shall, notwithstanding the provisions identified at paragraph 18, 19 and 21, use non-automatic licences and quantitative restrictions in accordance with its international obligations.

APPENDIX I TO SCHEDULE III

ANCILLARIES

APPENDIX II TO SCHEDULE III

SUBSTITUTES

Oil seeds which do not qualify as being of Community Origin under the provisions of Article 84.

Vegetable oils refined or unrefined, derived from materials in the above category.

Edible tallow or edible stearines.

Soaps including all soaps in block, bar, tablet or powdered form not produced within the Community.

Margarine and shortening which do not qualify as being of Common Market Origin under the provisions of Article 84.

Compound Lard.

Pure Lard.