Official Journal C 187 Volume 37 of the European Communities 9 July 1994

ISSN 0378-6986 Official Journal C 187 Volume 37 of the European Communities 9 July 1994

English edition Information and Notices

Notice No Contents Page

I Information

Council and Commission

94/C 187/01 Missions of third countries : Accreditations 1

Commission

94/C 187/02 Ecu 3

94/C 187/03 Communication of Decisions under sundry tendering procedures in agriculture (cereals) 4

94/C 187/04 The improvement of the fiscal environment of small and medium-sized enter prises (') 5

94/C 187/05 Notice pursuant to Article 19 (3) of Council Regulation No 17 concerning case No IV/34.331 — BFGoodrich/Messier-Bugatti (') 11

94/C 187/06 Notice of initiation of a review of Regulation (EEC) No 1798 /90 as amended by Regulations (EEC) No 2966/92 and (EEC) No 2455/93 imposing anti-dumping duties relating to imports of monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan, and Thailand and of the corresponding Commission Decisions accepting undertakings in that connection 13

94/C 187/07 Non-opposition to a notified concentration (Case No IV/M.458 — Electrolux/ AEG) 0) 14

94/C 187/08 Notification of a joint venture (Case No IV/35.076 — Juli Motorenwerk) (l) 14

94/C 187/09 Notification of a joint venture (Case IV/35.098 — Gestetner-Ricoh) (') 15

1 ( l) Text with EEA relevance (Continued overleaf) Notice No Contents (continued) page

94/C 187/ 10 State aid — C 45 /93 (N 663 /93) — United Kingdom 16

Corrigenda

94/C 187/ 11 Corrigendum to the preliminary draft Commission Regulation (EC) of 30 September 1994 on the application of Article 85 (3) of the Treaty to certain categories of technology transfer agreements (OJ No C 178 , 30 . 6 . 1994) 16 9 . 7 . 94 Official Journal of the European Communities No C 187/ 1

I (Information)

COUNCIL AND COMMISSION

Missions of third countries : Accreditations

(94/C 187/ 01 )

The President of the Council and the President of the Commission received H. E. Ambassador Arthur Alexander FOULKES who presented to them his letters of credence in his capacity as Head of the Mission of the Commonwealth of the Bahamas to the European Communities (EC , ECSC, EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador Dato' M. M. SATHIAH who presented to them his letters of credence in his capacity as Head of the Mission of the Federation of Malaysia to the European Communities (EC , ECSC , EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador Jan LISUCH who presented to them his letters of credence in his capacity as Head of the Mission of the Slovak Republic to the European Communities (EC, ECSC , EAEC) with effect from 28 June 1994 .

The President of the Council and the President of the Commission received H. E. Ambassador Khaled MADADHA who presented to them his letters of credence in his capacity as Head of the Mission of the Hashemite Kingdom of Jordan to the European Communities (EC, ECSC , EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador José Guerreira ALVES PRIMO who presented to them his letters of credence in his capacity as Head of the Mission of the People's Republic of Angola to the European Communities (EC, ECSC , EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador Somkiati ARIYAPRUCHYA who presented to them his letters of credence in his capacity as Head of the Mission of the Kingdom of Thailand to the European Communities (EC , ECSC, EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall . No C 187/2 Official Journal of the European Communities 9 . 7 . 94

The President of the Council and the President of the Commission received H. E. Ambassador Fawzy SALLOUKH who presented to them his letters of credence in his capacity as Head of the Mission of the Lebanese Republic to the European Communities (EC, ECSC, EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador Nasser ALASSAF who presented to them his letters of credence in his capacity as Head of the Mission of the Kingdom of Saudi Arabia to the European Communities (EC , ECSC, EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall .

The President of the Council and the President of the Commission received H. E. Ambassador Carlos ALZUGARAY TRETO who presented to them his letters of credence in his capacity as Head of the Mission of the Republic of Cuba to the Euroepan Communities (EC, ECSC, EAEC) with effect from 28 June 1994 . On this occasion the newly appointed Head of Mission also presented his predecessor's letters of recall . 9 . 7 . 94 Official Journal of the European Communities No C 187/3

COMMISSION

Ecu (') 8 Tuly 1994 (94/C 187/02)

Currency amount for one unit : Belgian and United States dollar 1,21770 39,6271 Luxembourg franc Canadian dollar 1,68896 Danish krone 7,53637 Japanese yen 120,187 German mark 1,91667 Swiss franc 1,61346 Greek drachma 289,327 Norwegian krone 8,41008 Spanish peseta 158,801 Swedish krona 9,52476 French franc 6,58291 Finnish markka 6,36859 Irish pound 0,799228 Austrian schilling 13,4836 Italian lira 1906,60 Icelandic krona 83,6441 Dutch guilder 2,15034 Australian dollar 1,66695 Portuguese escudo 197,609 New Zealand dollar 2,02546 Pound sterling 0,789436 South African rand 4,47780

The Commission has installed a telex with an automatic answering device which gives the conversion rates in a number of currencies. This service is available every day from 3.30 p.m . until 1 p.m . the following day. Users of the service should do as follows : — call telex number Brussels 23789; — give their own telex code ; — type the code 'cccc' which puts the automatic system into operation resulting in the transmission of the conversion rates of the ecu ; — the transmission should not be interrupted until the end of the message, which is marked by the code 'ffff'.

Note: The Commission also has an automatic telex answering service (No 21791 ) and an automatic fax answering service (No 296 10 97) providing daily data concerning calculation of the conversion rates applicable for the purposes of the common agricultural policy.

(l) Council Regulation (EEC) No 3180/78 of 18 December 1978 (OJ No L 379, 30 . 12 . 1978 , p . 1 ), as last amended by Regulation (EEC) No 1971 /89 (OJ No L 189, 4 . 7 . 1989, p . 1 ). Council Décision 80/ 1184/EEC of 18 December 1980 (Convention of Lomé) (OJ No L 349, 23 . 12 . 1980 , p. 34). Commission Decision No 3334/80/ECSC of 19 December 1980 (OJ No L 349, 23 . 12 . 1980, p . 27). Financial Regulation of 16 December 1980 concerning the general budget of the European Communities (OJ No L 345 , 20 . 12 . 1980, p . 23). Council Regulation (EEC) No 3308/80 of 16 December 1980 (OJ No L 345 , 20 . 12 . 1980 , p . 1 ). Decision of the Council of Governors of the European Investment Bank of 13 May 1981 (OJ No L 311 , 30 . 10 . 1981 , p . 1 ). No C 187/4 Official Journal of the European Communities 9 . 7 . 94

Communication of Decisions under sundry tendering procedures in agriculture (cereals) (94/C 187/03) (See notice in Official Journal of the European Communities No L 360 of 21 December 1982, page 43)

Weekly invitation to tender

Standing invitation to tender Date of Commission Maximum refund Decision

Commission Regulation (EC) No 1166/94 of 24 May 1994 opening an invitation to tender for the refund for the export of common wheat to all third countries 7 . 7 . 1994 Tenders rejected (OJ No L 130 , 25 . 5 . 1994, p. 15) Commission Regulation (EC) No 1081 /94 of 10 May 1994 opening an invitation to tender for the refund for the export of barley to all third countries 7 . 7 . 1994 ECU 68,15/tonne (OJ No L 120, 11 . 5 . 1994 , p. 21 ) Commission Regulation (EC) No 1082/94 of 10 May 1994 on a special inter vention measure for barley in Spain 7 . 7 . 1994 Tenders rejected (OJ No L 120 , 11 . 5 . 1994 , p. 24) Commission Regulation (EC) No 1386/94 of 17 June 1994 on a special inter vention measure for maize in Greece 7 . 7 . 1994 ECU 76,97/tonne (OJ No L 152 , 18 . 6 . 1994 , p. 7) 9 . 7 . 94 Official Journal of the European Communities No C 187/5

The improvement of the fiscal environment of small and medium-sized enterprises

(94/C 187/04) (Text with EEA relevance)

1 . PURPOSE OF THE COMMUNICATION both the White Paper on Growth, Competitiveness and Employment, and the Strategic Programme for the Internal Market, addressed small and medium-sized enterprises as the bedrock of the Union economy and The purpose of this communication is to set out the presented a number of issues to be explored . This approach of the Commission in the field of the taxation communication takes up from there, identifying specific of small and medium-sized enterprises . It describes problems in the area of taxation and presenting an orientations towards a more favourable tax environment overview of possible orientations . for small and medium-sized enterprises, better suited to encourage their establishment and further development. The Commission is eager to have the largest possible discussion with Member States and other interested parties about these measures or any alternatives, so as to 2.2 . Subsidiarity find the best way of dealing with the taxation of small and medium-sized enterprises in the context of the White Paper on Growth , Competitiveness and Employment. A very important consideration regarding taxation and small and medium-sized enterprises is how far the sub sidiarity principle applies . This communication is based on the common policy goal that it is in the Community's The current text only considers direct tax aspects of the interest to support small and medium-sized enterprises . It environment of small and medium-sized enterprises . As also presents an orientation on some of the most urgent far as indirect taxation is concerned, measures will be problems and suggests a number of alternative policy proposed in the light of the reports and propositions instruments ; it is up to the Member States, given their arising in the framework of the revision of the value own specific situation and their own specific legal added tax and excise duties system, before the end of the environment, to address the problems and apply any of year. the solutions the Commission has provided for . The Commission does not intend to harmonize to any extent the purely national tax treatment of small and medium-sized enterprises . Where domestic aspects are 2 . INTRODUCTION concerned, the Commission wants to recommend appro priate solutions on the basis of best practices, after having studied and compared the different systems in use in the Member States . These recommendations provide 2.1 . General an incentive to the Member States to adapt parts of their system to improve the climate for small and medium-sized enterprises . This approach is in In the Community, small and medium-sized enterprises accordance with the principle the Commission stated in play a pre-eminent role both in economic growth and its communication of 26 June 1992 (') that 'given the job creation . For instance enterprises with less than 500 importance of taxation for Member States sovereignty employees account for 99 % of the population of Union and the principle of subsidiarity, Community action on enterprises and generate 70 % of private sector business taxation should be limited to the minimum employment . Thirty per cent of all jobs in the Union are necessary to ensure that the internal market functions from self-employment or in micro-enterprises with less smoothly'. On the other hand, there are certain areas in than 10 workers ; small firms with less than 100 workers which only cross-border aspects of the taxation of small provide for 55 % of employment. At the same time, the and medium-sized enterprises are involved . If in those economic situation is not very favourable for small and areas Member States were unable to take the appropriate medium-sized enterprises . Consumers are consuming less measures individually, and if a more uniform approach and large enterprises are squeezing them on delivery was warranted, a legislative solution might be more conditions . Competition is growing, both from inside suitable . and outside the Community. To survive and grow, to improve their competitive position, and to be able to benefit from the economic stimulus of the GATS agreement, they need all the help that is available, as has been widely acknowledged by policy makers everywhere (') Commission communication to the Council and to in the Community. At the Edinburgh Council in Parliament subsequent to the conclusions of the Ruding Committee indicating guidelines on company taxation linked December 1992 improved support for small and to the further development of the internal market, medium-sized enterprises was seen as one of the key Commission of the European Communities , Brussels , 26 elements to generate growth and in December 1993 , June 1992 , SEC(92) 1118 final . No C 187/6 Official Journal of the European Communities 9 . 7. 94

2.3 . Three main problems which is applied to incorporated enterprises. Income taxes are normally progressive, that is to say that the higher the income, the higher the applicable tax rate . A first general problem faced by small and medium-sized Corporate taxes are in general proportional ; the enterprises is their capacity to attract sufficient financial applicable tax rate is constant, regardless of the amount resources. Small and medium-sized enterprises will be of profit. As a consequence, in many Member States unable to take full advantage of the single market if their unincorporated enterprises have to pay more tax on their activities are constrained by a shortage of finance . reinvested profits than incorporated enterprises, because Finding new financial resources is crucial, whether it is they are subject to the highest bracket . The entrepreneur simply to maintain the business or to invest. may then have to pay income tax at a rate of up to 60 % , which leaves only 40 % of the profit for rein vestment in the enterprise . At the same time, in most A second main problem for small and medium-sized Member States an incorporated small or medium-sized enterprises in the field of direct taxation is their incapa enterprise pays a much lower corporate tax rate on the bility to cope with administrative complexity. As the reinvested profits . The difference between corporate and White Paper indicated, administrative constraints fall non-incorporated marginal rates can be more than 30 % . disproportionately on small and medium-sized enter This puts unincorporated enterprises in a less favorable prises, while small businesses have the least capacity to position than incorporated enterprises , and in fact this pass on costs, because they have little market power and difference in taxation may lead them to a costly change the highest compliance cost. in their legal structure, even if this is otherwise inappro priate .

A third problem is the continuity of the enterprise when its ownership changes . 3.1.3 . Community orientation

These three types of problems are dealt with in this communication, which tries to find solutions to them from different angles . While the most urgent problems Unlike other issues, the issue of the different tax are addressed, there may also be others . Some other treatment of incorporated and unincorporated enter areas for special attention are already indicated at the prises has already been the focus of attention for some end of this communication, the consultation process time . A measure which would improve the self-financing could bring forward yet others . capacity of small and-medium sized enterprises was one of the recommended actions of the Ruding Committee . It was endorsed by the Commission in its communication subsequent to the conclusions of this Committee (') and 3 . FINANCIAL RESOURCES the Commission has since been studying the subject in depth, also taking into account the Member States' answers to a questionnaire . It is therefore the right time 3.1 . Self-financing to address a recommendation to the Member States on this subject, a copy of which is published in Official Journal of the European Communities No L . . . . (*). The 3.1.1 . Introduction emphasis is on a limitation of the tax charges on rein vested profits . In general , an enterprise can finance its operations by either resorting to internal resources, or by seeking access to external resources . The option of self-financing will normally be explored first. If small and 3.2 . Fiscal treatment of venture capital medium-sized enterprises can finance investment out of their own net profits they are less dependent on outside sources, and can grow without being hampered by a lack 3.2.1 . Introduction of such resources . This is especially important in times of lower economic activity, when banks may be less prepared to lend their money to small companies, because of the higher risk of failure they run and their A second topic regarding financing problems is that of inability to provide collateral . the fiscal treatment of venture capital investments . Rein forcing self-financing would provide one solution for small and medium-sized enterprises in need of additional 3.1.2 . Problem financial resources, but it may not always be sufficient, particularly if the need for money is larger. Banks are

A large number of small and medium-sized enterprises (*) In its communication of 26 June 1992 . are subject to income tax, and not to corporate tax, O OJ No L 177, 9 . 7 . 1994 . 9 . 7 . 94 Official Journal of the European Communities No C 187/7 not always in the position to lend money to high-risk 3.2.2 . Solutions in Member States small enterprises, and if they are, small and medium-sized enterprises may have to pay a higher price than large enterprises . Equity financing might even be harder to obtain. This is where venture capital can provide a suitable means to get access to external The Member States with the largest venture capital financial resources, which might also be more cost investments, the United Kingdom and France, both have effective. Venture capital is risk finance for private busi especially suitable instruments for venture capital nesses, mainly in the form of long-term equity-related investments, respectively the 'limited partnership' and the investments . 'Fonds Commun de Placements à Risques' (FCPR) and 'Société de Capital Risque' (SCR). The use of United Kingdom limited partnerships as a means of providing Venture capital has been of particular importance in the venture capital investment funds was specifically United States (where the concept originated) and was approved by the UK's Inland Revenue and the responsible amongst other things for the successful Department of Trade and Industry in 1987 . In this development of 'Silicon Valley*. In some Member States respect it is worth noting that to achieve this no changes venture capital funds play a valuable role in financing in legislation were necessary. The FCPR and SCR were small and medium-sized enterprises. A total of ECU 4,6 created by special legislation, initially enacted in 1983 billion was invested by European venture capitalist and 1985 respectively. investors in 1992 . The amounts invested per Member State, in ECU million, were the following O :

Belgium 142 An important feature of the limited partnership and the FCPR is fiscal transparency, that is to say, the results of Denmark 12 the venture capital fund are only taxed in the hands of France 986 the participants in the funds . The funds themselves are not taxed. This transparency prevents double taxation, Germany 633 which would otherwise arise because the fund would firstly be taxed on any capital gains or dividend distri Greece 12 butions in respect of the investee company, and secondly Ireland 26 the investor would be taxed on the same profits in respect of the shares in the venture capital fund. The Italy 510 general philosophy here is the so-called 'look-through' approach, in which the investor is taxed as though there Netherlands 239 was direct investment in the target enterprise, and no Portugal 44 venture capital fund in between . A second significant advantage of fiscal transparency is that investors may Spain 128 directly deduct from their income the losses resulting from the investments by the venture capital fund . United Kingdom 1 831 .

It appears that venture capital investments are unevenly distributed over the Member States . There may be different reasons for this, for instance the general state Another common feature of these structures is their of development of the financial sector, or the attitude of limited liability, thereby reducing the risk for the the banking sector towards lending to small and investors to the amount they invested . A venture capital medium-sized enterprises . Signals from the market investor might be prepared to run the risk of losing indicate that the establishment of a well-developed 100 % of the investment, but will almost certainly not be venture capital sector is also highly influenced by the prepared to lose more than that. Structures without existence of an appropriate domestic legal structure, limited liability appear not to be used in practice . which can be used as a channel for venture capital investments . It appears that some Member States have no special regimes for venture capital investments . On the other hand, a special regime for venture capital investments might in practice not be used by investors, Specific to the FCPR is a further extension of fiscal because they would consider certain crucial elements are transparency. French investors in a FCPR are not lacking. normally subject to tax until they receive the relevant income from the fund : thus, if the income of the FCPR is reinvested by the FCPR, without any distribution to the investors holding shares in the FCPR, such investors (') Based on the 1993 European Venture Capital Associauon are not taxed at that time. They are only taxed at the Yearbook by KPMG . No data available on Luxembourg . moment the FCPR distributes income to them. No C 187/ 8 Official Journal of the European Communities 9 . 7 . 94

The look-through approach could also be applied to In this light it might be noted that seen from a somewhat withholding taxes on payments of interest or dividend broader perspective , the Union as a whole could benefit from the target enterprises . Such a payment would then from a transparent solution, by which investors could set lead to the application of the double tax convention up pan-European structures , which would be treated in between the country of the investee enterprise and the the same way all over the Union . Such a structure might investor, leaving out the venture capital fund . This could lead to a increase in the capital inflow by venture capital solve the problem that tax-transparent partnerships in a investments from third countries, to the benefit of the number of cases do not fall under the scope of the Union's growth and employment. bilateral tax treaties between the Member States . When the tax treaty does not apply to the venture capital fund, the source state, where the dividend or interest is being paid, may withhold the maximum percentage of with holding taxes, without the reduction normally foreseen 4 . ADMINISTRATIVE COMPLEXITY in the tax treaties .

4.1 . Permanent establishments of small and medium-sized enterprises 3.2.3 . Community orientation

4.1.1 . Introduction

The Community has already established a number of programmets to provide direct or indirect financial support in the venture capital area like Sprint, Venture , It will be recalled that the White Paper noted that an Consort, Eurotech Capital and Seed-Capital . In the field important weakness of small and medium-sized enter of taxation, until now, no Community initiatives have prises is their ability capacity to deal with the complexity been developed . If it is true that the fact that both the of the administrative and legislative environment . This United Kingdom and France have a well-developed ability will be even smaller if it concerns the legislative venture capital sector is influenced by the availability of environment of another Member State than the one in appropriate legal structures , other Member States might which the enterprise is resident . benefit from their experience and establish similar solutions, thereby providing their small and medium-sized enterprises with additional means to find financial resources . The Commission is currently Small and medium-sized enterprises operate across studying the situation in the other Member States . The borders by either : result of this might he a more precise recommendation, on the basis of a 'best-practices' approach .

— employing a local agent, for example selling products on a commission basis, The outcome might, however, be different if the interna tional context is taken into consideration . In this context the general principle would be that the Community needs an efficient single market where investment — setting up a foreign branch, which is more often decisions are not affected by distortions in national referred to as a 'permanent establishment', or taxation systems . At present such a situation does not exist . A limited partnership , for example, is not treated as tax transparent by all Member States . This means that it cannot be effectively used for venture capital investments in all Member States . The ideal structure for a venture — incorporating a subsidiary in the other State . capital fund varies greatly between Member States . In some Member States there are no practical structures available for international funds . This creates a major obstacle to cross-border investment in venture capital The first of these alternatives is the least complex : the funds . In a single market this is a rather unfortunate SME has no 'foreign' presence for direct tax purposes so situation, which could probably only be solved by a more there is no tax disincentive to expansion in that way. uniform approach . It is for consideration whether this However, the SME equally has no control over the should lead to a proposal for a legally binding agent, and success or failure is entirely in the agent's instrument, or whether voluntary mutual recognition of hands . The other alternatives, permanent establishment fund structures as being tax transparent would be or subsidiary, give the enterprise control over its foreign sufficient . operations , but also require a direct tax presence in the 9 . 7 . 94 Official Journal of the European Communities No C 187/9 other State . In principle nothing should be done once the 5 . CONTINUITY step to establish a subsidiary is taken . The need to meet foreign accounting and regulatory requirements is an obligation that inevitably is connected with incorporated 5.1 . Transmission of enterprises status .

5.1.1 . Introduction

Accordingly, the focus is here on permanent estab lishments, because small and medium-sized enterprises 'Transmission' of ownership is something which affects would typically start their foreign operations using the virtually every business . Every firm will sooner or later less formal permanent establishment structure . For have to face a change of ownership, although it is a company law purposes , permanent establishments do not particular problem for small and medium-sized enter have to disclose any accounts which are related to their prises . National statistics show that the problem is indeed own activity. By contrast, for taxation purposes they of some magnitude, with almost 10 % of bankruptcies have to present separate accounts . These 'foreign' attributed to inadequate care being taken over the accounts are likely to involve considerable expense since business succession issue . This is not to say that it is unlikely that the accounts could be prepared on the succession problems are the sole cause of business same basis as for the home State ; negotiations with the failures . But it should be of concern when they threaten foreign authorities might also be necessary. To this the viability of otherwise healthy enterprises . It is administrative burden one has also to add further rules in estimated that a quarter of all firms employing between the field of, for instance, social contributions, value 50 and 1 000 people will come up for a change of added tax and environment policy. Presenting separate ownership over the next 10 years . Nearly three out of tax accounts is only one of the administrative obligations 100 small and medium-sized enterprises change hands arising when an enterprise sets up a business abroad, but each year. In cases of an unprepared transmission of the it is an important one, since direct tax legislation is a business, because of the death of the entrepreneur, high highly complicated matter and small and medium-sized inheritance duties can threaten the life of the enterprise enterprises have to spend a lot of time and money on itself. If the inheritance duties are too high, the direct tax compliance ; time and money which, especially enterprise may have to be liquidated to pay them, in the start-up phase, could instead have been spent in leading to the destruction of capital and the loss of jobs . trying to be successful in the new market abroad . A related issue is the restructuring that is needed to prepare for the transmission of an enterprise, such as, for example, when a prior conversion of a partnership into a limited liability company is necessary. In such cases fiscal 4.1.2 . Solutions in Member States neutrality is of great importance . Measures designed to ensure the proper transmission of firms, and thus their survival, are of equal importance for the European economy as measures to stimulate the creation of new At present, no specific rules on permanent establishments firms . of small and medium-sized enterprises exist. However, not all foreign activities of an enterprise are considered to form a permanent establishment. For instance, a 5.1.2 . Solutions in Member States building site or construction or installation project constitutes a permanent establishment only if it lasts more than a certain minimum period . If the minimum is Many Member States have rules in place to facilitate the not exceeded the enterprise is only taxed in the home transfer of an enterprise in the case of death of the country, not in the country of construction . owner. This can , for instance , take thé form of a reduction of the rate of tax to pay, or a deferral of any unrealized capital gains until the inheritants realize them .

4.1.3 . Communtty orientation 5.1.3 . Community orientations As in the case of building sites, the foreign activities of small and medium-sized enterprises could, under certain The . Commission will elaborate an orientation aiming at conditions, be taxed only in the Member State of a limitation of fiscal charges on succession or donation residence of the enterprise . This would imply a major when the enterprise's activity is continued . In the same administrative simplification for the enterprises way a cross-border problem might also need to be concerned . Obviously a number of safeguards would addressed at Community level, as succession duties can need to be developed, to prevent abuse . The Commission be based on many different grounds : nationality of the is currently examining this very complex issue, and will deceased, nationality of the receiving party, residence of decide on how to proceed further with the issue after the deceased , residence of the receiving party, location consultations on the basis of this communication . of the property. These differences can give rise to double No C 187/ 10 Official Journal of the European Communities 9 . 7 . 94 taxation. Bilateral conventions on estates, inheritances States this autumn, in order to make it possible to define and gifts can prevent such double taxation, but at concrete action points by the end of this year. present, of the 66 possible bilateral relations between Member States, only 12 are covered by treaties to These action points are about implementing the measures prevent the double taxation of inheritances . On the basis announced in the White Paper and the Strategic of the orientation extensive consultations will be started Programme for the Internal Market, with the aim of in order to finalize a possible recommendation and, if contributing substantially to the common goal of necessary, other appropriate action. economic growth and especially the creation of jobs .

6. CONCLUSION While the most urgent issues are addressed in this communication, this does not mean that it covers all This communication identifies priority issues for the relevant tax issues for small and medium-sized enter improvement of the fiscal environment of small and prises . For instance, the Commission may in the more medium-sized enterprises . The individual issues do not distant future examine the taxation of partnerships . It stand alone ; they can be interlinked, such as the issue of might also address the tax treatment of European transfer of enterprises and that of venture capital : when Economic Interest Groupings, a structure which an enterpreneur hands over a business to his or her European enterprises are now using more and more . A successors, venture capital might equally be used to help third subject for further consideration might be the finance a take-over or management buy-out . so-called 'Business Angel' concept, according to which profits from investments in shares of unquoted A first initiative, in the form of a recommendation on the companies may be rolled over if reinvested in such issue of self-financing is published in Official Journal of shares . the European Communities No L . . . ('). An orientation paper by the Commission on the transfer of enterprises The Commission repeats its invitation to Member States will follow shortly. For the other subjects, venture capital and all other interested parties to communicate their and permanent establishments, the Commission intends ideas and comments regarding this document, including to start more detailed consultation with the Member any issues omitted .

o OJ No L 177, 9 . 7 . 1994 . 9. 7. 94 Official Journal of the European Communities No C 187/ 11

Notice pursuant to Article 19 (3) of Council Regulation No 17 ( x ) concerning case No IV/34.331 — BFGoodrich/Messier-Bugatti

(94/C 187/05)

(Text with EEA relevance)

I. Notification On 3 June 1992 the Commission received, pursuant to Articles 2 and 4 of Council Regulation No 17, a formal notification of agreements between BFGoodrich Company, Akron (Ohio), USA, and Messier-Bugatti SA, Vélizy, France, to jointly design, develop, market and provide product support for wheels and brakes for Airbus A-330/340 and A-321 aircraft.

II. The parties 1 . BFGoodrich Company (BFG) and its subsidiary in France, BFGoodrich Aerospace, are active in the aerospace sector. Besides aircraft wheels and brakes, BFG provides components and related services for several aircraft systems, such as emergency-evacuation, de-icing, fuel management and engine ignition. It also manufactures instruments and avionics . Other ac tivities of the group relate to the chemical industry.

2 . Messier-Bugatti SA (Messier) is a subsidiary of the French aircraft engine manufacturer Société nationale d'étude et de construction de moteurs d'aviation SA (Snecma). Its principal activities involve the development, manufacture and marketing of aircraft wheels, landing gears, brakes and braking systems .

III . The market The geographical market for commercial aircraft wheels and brakes is worldwide . Within the European Union 1993 sales totalled approximately 148 million US$, which is 27 % of worldwide sales . ,

There are five major suppliers : — Aircraft Braking Systems (ABS), United States of America, — Bendix's Wheel and Brake Division (Bendix), United States of America, — Dunlop's Aviation Division (Dunlop), United Kingdom, and — the two parties to the notified agreement. These suppliers are members of large conglomerate groups .

The end-use segments for aircraft wheels and brakes are : commercial, military and general aviation.

The market structure in the commercial segment is characterized by the existence of a very narrow oligopoly. More than two thirds of the demand — both worldwide and EU wide — is satisfied by the three leading companies ABS, BFG and Bendix .

There are two principal customer classes : three airframe manufacturers (Boeing, McDonnell Douglas and Airbus) and the end-users, such as airlines, aircraft leasing companies and fleet operators .

The Airbus Consortium launched programmes for the A-330/340 in 1987 and for the A-321 in 1989 . Due to the high financial cost for development and production and the limited number of aircraft scheduled for production, the parties decided that it would not be financially viable

O OJ No 13, 21 . 2 . 1962 , p . 204/62 . No C 187/ 12 Official Journal of the European Communities 9 . 7 . 94

for them to submit separate proposals for these programmes . Following the suggestion of the airframe manufacturer risk sharing teams were formed .

IV. The agreements The parties have set up a joint venture in the form of two companies held 50/50 by the parties : ( 1 ) a Société Anonyme under the laws of France called Messier BFGoodrich SA ; and (2) a US corporation under the laws of Delaware (USA) called BFGoodrich Messier, Inc . (hereinafter together referred to as 'M-G').

The object of the joint venture is to coordinate the activities of the parties in relation to A-330/340 and A-321 aircraft wheels and brakes .

These activities include :

— the joint development of the products for the specific aircraft,

— the presentation to Airbus of a combined proposal for the products,

— the promotion of the products to potential purchasers,

— the manufacture of individual components ,

— the assembly of components ,

— the continuous development/improvement of the products and

— the provision of aftermarket product support.

To that effect M-G will have a non-exclusive right to use , free of charge, technical information held by the parties relating to the products concerned on the basis of an individual technology license agreement with each of them .

The parties have no intention to set up common production facilities . Each party will manu facture half of the equipment sold during the life-time of the A-330/340 and A-321 aircraft programmes on the basis of its individual subcontract agreement with M-G .

The parties have undertaken to refrain from making individual offers for the aircraft programmes concerned .

V. The Commission's intentions In this case the Commission intends to take a favourable position . Before doing so, the Commission invites interested third parties to send their observations within one month from the date of publication of this notice to the following address, quoting the reference IV/34.331 — BFGoodrich/Messier-Bugatti :

Commission of the European Communities, Directorate-General for Compétition , Directorate for Restrictive Practices , Abuse of Dominant Positions and other Distortions of Competition III, 200, rue de la Loi, B- 1 049 Brussels . 9 . 7 . 94 Official Journal of the European Communities No C 187/ 13

Notice of initiation of a review of Regulation (EEC) No 1798/90 as amended by Regulations (EEC) No 2966/92 and (EEC) No 2455/93 imposing anti-dumping duties relating to imports of monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan, and lliailand and of the corresponding Commission Decisions accepting undertakings in that connection

(94/C 187/06)

The Commission has received from the Community resulting from the existing price undertakings . This fact industry concerned a request for a review of the Regu allegedly points to the inappropriateness of price-under lation imposing anti-dumping duties and the Decisions takings as suitable measures in this proceeding . accepting the undertakings currently in force concerning imports of monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan, and It is finally alleged that the above facts have precluded Thailand, pursuant to Article 14 of Council Regulation the Community industry from obtaining relief from the (EEC) No 2423/ 88 (l). injury found . In fact, the continued penetration of the imports of monosodium glutamate at low prices from the countries concerned have led to a further price depression and renewed financial losses for the Previous procedure Community industry and have thus resulted in the aggra The Council, by Regulation (EEC) No 1798 /90 (2), as vation of the injury suffered . amended by Regulation (EEC) No 2966/92 (3 ) and by Regulation (EEC) No 2455 /93 ( 4), imposed a definitive anti-dumping duty on imports of the product concerned Procedure originating in Indonesia, the Republic of Korea, Taiwan, and Thailand with the exception of imports from certain Having decided , after consultation , that within the producers in these countries from which the Commission meaning of Article 14 of Regulation (EEC) No 2423/88 accepted undertakings (see Regulation (EEC) No there is sufficient evidence of changed circumstances to 547/90 ( 5 ), Decision 92/493 /EEC (6) and Decision justify the initiation of a review of Regulation (EEC) No 93/479/EEC O). 1798 /90 , as amended by Regulation (EEC) No 2966/92 and by Regulation (EEC) No 2455/93 and of Commission decisions accepting undertakings from a Product concerned number of producers (see Regulation (EEC) No 547/90, Decision 92/493/EEC and Decision 93/479/EEC), the The product concerned is monosodium glutamate Commission has commenced an investigation in produced in the form of crystals of various sizes and accordance with Article 7 of Regulation (EEC) No falling within CN code ex 2922 42 00 . 2423 / 88 with regard to imports of the product concerned originating in Indonesia, the Republic of Korea, Taiwan, and Thailand . Grounds for review The applicant alleges that the circumstances established Interested parties may make their views known in in the Regulation imposing the anti-dumping measures writing, in particular by replying to the questionnaire have changed and has supplied evidence to that effect. addressed to the parties known to be concerned and by providing supporting evidence . Furthermore, the Commission will hear parties who so request when The applicant contends, in particular, that the normal making their views known, provided they can show that values established originally have generally increased, they are likely to be affected by the result of the while the export prices for monosodium glutamate orig proceeding . inating in most of the countries concerned have signifi cantly decreased during 1993, thus resulting in a change as compared to the original findings of dumping . This notice is published in accordance with Article 7 ( 1 ) (a) of Regulation (EEC) No 2423/ 88 .

It is also alleged that the monosodium glutamate orig inating in the countries concerned has been imported in Time limit the Community at prices lower than the price levels Any information relating to the matter, any relevant O OJ No L 209, 2 . 8 . 1988, p . 1 . arguments and any requests for a hearing should be sent O OJ No L 167 , 30 . 6 . 1990 , p . 1 . in writing to reach the Commission of the European o OJ No L 299, 15 . 10 . 1992 , p . 1 . Communities , Directorate-General for External ( 4 ) OJ No L 225 , 4 . 9 . 1993, p . 1 . Relations (Division I-C-2), 200 rue de la Loi, B- 1 049 ( 5) OJ No L 56, 3 . 3 . 1990 . p . 23 . Brussels (8 ), not later than 30 days following the date of C) OJ No L 299 , 15 . 10 . 1992, p . 40 . O OJ No L 225 , 4 . 9 . 1993 , p . 35 . (») Telex COMEU B 21877, telefax (32 2) 295 65 05 . No C 187/ 14 Official Journal of the European Communities 9. 7 . 94 publication of this notice, or for parties known to be requested thereafter, should be sent in completed form, concerned, the date on which the letter accompanying to the above address, not later than 45 days after the the abovementioned questionnaire was received, publication of this notice . whichever date is the later. The receipt of this letter is deemed to occur seven days following the date of its If the required information and argumentation is not dispatch . received in adequate form within the time limit specified above, the Community authorities may make preliminary Any party which has not received a questionnaire should or final findings on the basis of the facts available in request such a questionnaire within two weeks of the accordance with Article 7 (7) (b) of Regulation (EEC) present publication . All questionnaires so requested, or No 2423/88 .

Non-opposition to a notified concentration (Case No IV/M.458 — Electrolux/AEG)

(94/C 187/07)

(Text with EEA relevance)

On 21 June 1994 the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6 ( 1 ) (b) of Council Regulation (EEC) No 4064/89 ('). Third parties showing a sufficient interest can obtain a copy of the decision by making a written request to :

Commission of the European Communities, Directorate-General for Competition (DG IV), Merger Task Force , 150, Avenue de Cortenberg, B- 1 049 Brussels Fax number : 02/296 43 01 .

O OJ No L 395, 30 . 12 . 1989 . Corrigendum : OJ No L 257, 21 . 9 . 1990, p . 13 .

Notification of a joint venture (Case No IV/35.076 — Juli Motorenwerk)

(94/C 187/08)

(Text with EEA relevance)

1 . On 10 May 1994 the Commission received a notification of a joint venture under the form of an incorporated company, pursuant to Article 4 of Council Regulation No 17 ( 1 ).

The joint venture will bear the name Juli Motorenwerk k.s . and will be registered in Brno in the Czech Republic . It is being set up by Linde AG and its subsidiary Stille GmbH, and two companies within the Jungheinrich group, Jungheinrich AG and Jungheinrich Beteiligungs GmbH, all of which are registered in Germany.

O OJ No 13 , 21 . 2 . 1962 , p . 204/62 . 9 . 7 . 94 Official journal of the European Communities No C 187/ 15

Jungheinrich and Linde are the largest German manufacturers of handling equipment with electric motors for propulsion, lifting of loads, steering aids or as components of diesel-electric units . The joint venture is to manufacture the electric motors and supply them to the founder companies . 2 . Upon preliminary examination, the Commission finds that the notified partnership and related agreement could fall within the scope of Regulation No 17 . 3 . The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission . Observations must reach the Commission not later than 10 days following the date of this publication . Observations can be sent by fax (fax No : (32 2) 296 98 08) or by post under reference number IV/35.076 — Juli Motorenwerk to the following address : Commission of the European Communities, Directorate-General for Competition (DG IV), Directorate B, Avenue de Cortenberg, 150, B- 1 049 Brussels .

Notification of a joint venture (Case IV/35.098 — Gestetner-Ricoh)

(94/C 187/09)

(Text with EEA relevance)

1 . On 10 June 1994, the Commission received a notification of a joint venture pursuant to Article 4 of Council Regulation No 17 ('), to be formed by Gestetner Manufacturing Limited (Gestetner) on the one hand and Ricoh UK Holdings Limited (Ricoh) and Tohoku Ricoh Company, Limited (Ricoh) on the other hand . The joint venture, to be established in the UK, will manufacture and distribute throughout the world (except Japan) digital duplicator master. Master is a laminated material produced principally for use in digital duplicators for printing A4 to A3 sized papers . Digital duplicators produce, from an original, copies by use of a positive image stencil cut from master. 2 . Upon preliminary examination, the Commission finds that the notified joint venture could fall within the scope of Council Regulation No 17 . 3 . The Commission invites interested third parties to submit their possible observations on the operation to the Commission . 4 . Observations must reach the Commission not later than 10 days following the date of this publication . Observations can be sent to the Commission by fax (fax No (32-2) 296 42 73) or by post under reference number IV/35.098 to the following address : Commission of the European Communities, Directorate-General for Competition (DG IV), Directorate C, Office 2/86, Avenue de Cortenberg 150, B- 1 049 Brussels .

o OJ No 13 , 21 . 2 . 1962 , p . 204/62 . No C 187/ 16 Official Journal of the European Communities 9 . 7 . 94

STATE AID C 45/93 (N 663/93 ) United Kingdom (94/C 187/ 10) (.Articles 92 to 94 of the Treaty establishing the European Community) Commission communication pursuant to Article 93 (2 ) of the EC Treaty to other Member States and interested parties concerning the England and Wales Milk Marketing Board reorgan ization scheme.

The Commission, by the letter the text of which is The initiating of the procedure was published in the reproduced below, informed the United Kingdom Official Journal of the European Communities No C 100 government that it has decided to terminate the of 9 April 1994 , page 9 . procedure initiated against the England and Wales Milk Marketing Board reorganization scheme ( ! ). By letter of 25 March 1994, registered on 29 March 'By letter of 15 October 1993 , registered on 19 October 1994 the United Kingdom authorities notified the 1993, the United Kingdom authorities notified the Commission in accordance with Article 93 (3) of the Commission in accordance with Article 93 (3) of the Treaty an amended reorganization scheme . This notifi Treaty the scheme of reorganization submitted to cation, according to the United Kingdom authorities, Ministers by the England and Wales Milk Marketing supersedes the notification of the Board's scheme as Board under the provisions of the Agricultural Act 1993 . notified by letters of 15 October and 3 November 1993 . By letter of 3 November 1993 , registered on 5 November 1993 , amendments to the reorganization scheme were submitted to the Commission by the United Kingdom Consequently, the Commission has decided to terminate authorities . the procedure provided for in Article 93 (2) of the Treaty initiated against the scheme notified by letter of The Commission by letter of 31 December 1993 15 October 1993 as this procedure is no longer relevant. communicated the United Kingdom authorities that it had decided to initiate the procedure provided for in Article 93 (2) of the Treaty with regard to the transfer of The Commission notifies the United Kingdom certain assets of Milk Marketing Board to Milk Marque . Government that it will inform the Governments of the other Member States and interested parties other than the„ Member States by publishing a notice in the Official C) OJ No C 100 , 9 . 4 . 1994, p . 9 . Journal of the European Communities '

CORRIGENDA

Corrigendum to the preliminary draft Commission Regulation (EC) of 30 September 1994 on the application of Article 85 (3 ) of the Treaty to certain categories of technology transfer agreements (Official Journal of the European Communities No C 178 of30 June 1994) (94/C 187/ 11 )

On page 4 in the second paragraph of point 4, seventh line : for: '. . . are (essential) for the achievement of . . .', read: '. . . are necessary for the achievement of . . .' ;

in the second paragraph of point 5 , fourth line : for: '. . . (essential) for the achievement of . . .', read: . . necessary for the achievement of . . .'.

On page 8 in Article 1 (4), fifth line : for: '. . . protected by (essential) patents . . .' read: '. . . protected by necessary patents . . .'.