Proposal for a COUNCIL REGULATION introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process (Codified version)

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. In the context of a people's Europe, the Commission attaches great importance to simplifying and clarifying Community law so as to make it clearer and more accessible to the ordinary citizen, thus giving him new opportunities and the chance to make use of the specific rights it gives him.

This aim cannot be achieved so long as numerous provisions that have been amended several times, often quite substantially, remain scattered, so that they must be sought partly in the original instrument and partly in later amending ones. Considerable research work, comparing many different instruments, is thus needed to identify the current rules.

For this reason a codification of rules that have frequently been amended is also essential if Community law is to be clear and transparent.

2. On 1 April 1987 the Commission therefore decided [1] to instruct its staff that all legislative measures should be codified after no more than ten amendments, stressing that this was a minimum requirement and that departments should endeavour to codify at even shorter intervals the texts for which they are responsible, to ensure that the Community rules were clear and readily understandable.

[1] COM(87) 868 PV.

3. The Conclusions of the Presidency of the Edinburgh European Council (December 1992) confirmed this [2] stressing the importance of codification as it offers certainty as to the law applicable to a given matter at a given time.

[2] See Annex 3 to Part A of such Conclusions.

Codification must be undertaken in full compliance with the normal Community legislative procedure.

Given that no changes of substance may be made to the instruments affected by codification, the European Parliament, the Council and the Commission have agreed, by an interinsitutional agreement dated 20 December 1994, that an accelerated procedure may be used for the fast-track adoption of codification instruments.

4. The purpose of this proposal is to undertake a codification of Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) No 1763/1999 and (EC) No 6/2000 [3]; the new Regulation will supersede the various Regulations incorporated in it [4]; this proposal fully preserves the substance of the acts being codified and hence does no more than bring them together with only such formal amendments as are required by the codification exercise itself.

[3] Carried out pursuant to Communication from the Commission to the European Parliament and the Council - Codification of the Acquis communautaire, COM(2001) 645 final.

[4] Annex III to this proposal.

5. The codification proposal was drawn up on the basis of a preliminary consolidation, in all official languages, of Regulation (EC) No 2007/2000 and the instruments amending it, carried out by the Office for Official Publications of the European Communities, by means of a data-processing system. Insofar as the Articles have been given new numbers, the correlation between the old and the new numbers is shown in a table set out in Annex IV to the codified Regulation.

ê 2007/2000 (adapted)

2003/0208 (CNS)

Proposal for a COUNCIL REGULATION introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament [5],

[5] OJ C [...], [...], p. [...].

Having regard to the opinion of the European Economic and Social Committee [6],

[6] OJ C [...], [...], p. [...].

Whereas:

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(1) Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) No 1763/1999 and (EC) No 6/2000 [7], has been substantially amended several times [8]. In the interests of clarity and rationality the said Regulation should be codified.

[7] OJ L 240, 23.9.2000, p. 1. Regulation as last amended by Commission Regulation (EC) No 607/2003 (OJ L 86, 3.4.2003, p. 18).

[8] See Annex III.

ê 2007/2000 Recital 1

(2) At its meeting in Lisbon on 23 and 24 March 2000, the European Council concluded that Stabilisation and Association Agreements with Western Balkan countries should be preceded by asymmetrical trade liberalisation.

ê 2007/2000 Recital 4 (adapted)

(3) ? A Community ? market opening ? to the imports from the Western Balkan countries exceeding the present level of those imports ? is expected to contribute to the process of political and economic stabilisation in the region while not creating negative effects for the Community.

ê 2007/2000 Recital 5

(4) It is, therefore, appropriate to further improve the Community's autonomous trade preferences by removing all remaining tariff ceilings for industrial products and by further improving access to the Community market for agricultural and fishery products, including processed products.

ê 2007/2000 Recital 6

(5) These measures are proposed as part of the EU Stabilisation and Association process, in a response to the specific situation in the Western Balkans. They will not constitute a precedent for Community trade policy with other third countries.

ê 2007/2000 Recital 7

(6) In accordance with the EU Stabilisation and Association process, based on the earlier Regional Approach and the Council Conclusions of 29 April 1997, the development of bilateral relations between the European Union and the Western Balkan countries is subject to certain conditions. The granting of autonomous trade preferences is linked to respect for fundamental principles of democracy and human rights and to the readiness of the countries concerned to develop economic relations between themselves. The granting of improved autonomous trade preferences in favour of countries participating in the EU Stabilisation and Association process should be linked to their readiness to engage in effective economic reforms and in regional co-operation, in particular through the establishment of free trade areas in line with relevant GATT/WTO standards. In addition, entitlement to benefit from autonomous trade preferences is conditional on the beneficiaries' involvement in effective administrative co-operation with the Community in order to prevent any risk of fraud.

ê 2007/2000 Recital 8

(7) Trade preferences can only be granted to countries or territories possessing a customs administration.

ê 2007/2000 Recital 9 and 2563/2000 Recital 4 (adapted)

(8) ? The Republic of ? Albania, Bosnia and Herzegovina and ? Serbia and Montenegro including ? Kosovo, as defined by the United Nations Security Council Resolution 1244 of 10 June 1999 (hereinafter referred to as 'Kosovo') fulfil these conditions, and similar trade preferences should be granted to all of them in order to avoid discrimination within the region. ? Kosovo is subject to international civil administration by the United Nations Mission in Kosovo (UNMIK) which has established a separate customs administration. ?

ê 2487/2001 Recital 5 (adapted)

(9) The Republic of Croatia and the Former Yugoslav Republic of Macedonia should remain a beneficiary of this Regulation only in so far as this Regulation provides for concessions which are more favourable than the concessions existing under the contractual regimes between the European Community and those countries.

ê 2007/2000 Recital 14 (adapted)

(10) For the purposes of certification or origin and administrative co-operation procedures, the relevant provisions of Commission 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 [9] should be applied.

[9] OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No ? 444/2002 (OJ L 68, 12.3.2002, p. 11) ?.

ê 2007/2000 Recital 15

(11) For the sake of rationalisation and simplification, it is appropriate to provide that the Commission may, after consulting the Customs Code Committee and without prejudice to the specific procedures provided for in this Regulation, make any necessary changes and technical amendments necessary to this Regulation.

ê 2007/2000 Recital 16

(12) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [10].

[10] OJ L 184, 17.7.1999, p. 23.

ê 2007/2000 Recital 19 (adapted)

(13) ? The ? import arrangements ? provided for by this Regulation ? should be renewed on the basis of the conditions established and in the light of the experience gained in granting these arrangements under this Regulation. It is therefore appropriate to limit the duration of the arrangements to 31 December ? 2005 ?,

ê 2007/2000 (adapted)

è1 2487/2001 Art. 1 pt. 1

HAS ADOPTED THIS REGULATION:

Article 1

Preferential arrangements

1. Subject to the special provisions laid down in Articles 3 and 4, products è1 originating in the Republic of Albania, Bosnia and Herzegovina and ? Serbia and Montenegro ? including Kosovo as defined by UNSC Resolution 1244 of 10 June 1999 ?, other than those of heading Nos 0102, 0201, 0202 and 1604 of the Combined Nomenclature, shall be admitted for import into the Community without quantitative restrictions or measures having equivalent effect and with exemption from customs duties and charges having equivalent effect.

ê 2487/2001 Art. 1 pt. 2

2. Products originating in the Republic of Croatia and the Former Yugoslav Republic of Macedonia will continue to benefit from the provisions of this Regulation when so indicated or for any measures provided in this Regulation which are more favourable than the trade concessions provided for in the framework of bilateral agreements between the European Communities and these countries.

ê 2007/2000

Article 2

Conditions for entitlement to the preferential arrangements

1. Entitlement to benefit from the preferential arrangements introduced by Article 1 shall be subject to the following:

ê 2007/2000 (adapted)

(a) compliance with the definition of the concept of 'originating products' provided for in Title IV, Chapter 2, section 2 of Regulation (EEC) No 2454/93;

(b) to the abstention of the countries and territories mentioned in Article 1 from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect from imports originating in the Community or from increasing existing levels of duties or charges or from introducing any other restrictions from the day of the entry into force of this Regulation; ? and ?

ê 2007/2000

(c) to the involvement of beneficiaries in effective administrative co-operation with the Community in order to prevent any risk of fraud.

ê 2007/2000 (adapted)

è1 2487/2001 Art. 1 pt. 3 (adapted)

2. è1 Entitlement to benefit from the preferential arrangements introduced by Article 1 shall, ? without prejudice to the conditions provided for in paragraph 1, ? be subject to the readiness of the beneficiary countries to engage ? in effective economic reforms and in regional co-operation with other countries concerned by the European Union's Stabilisation and Association process, in particular through the establishment of free trade areas in conformity with Article XXIV of the GATT 1994 and other relevant WTO provisions.

ê 2007/2000

In the event of non-compliance in this respect, the Council may take the appropriate measures by a qualified majority vote, on the basis of a Commission proposal.

Article 3

Limited concessions for certain textile products

ê 2007/2000 (adapted)

è1 2487/2001 Art. 1 pt. 4 (adapted)

è2 2487/2001 Art. 1 pt. 5 (adapted)

1. è1 As regards textile products originating in ? Serbia and Montenegro ? ? and indicated in Annex III B of Council Regulation (EC) No 517/94 [11], the exemption from customs duties and charges having equivalent effect shall be limited to the Community annual quantities set out in ? that ? Regulation.

[11] OJ L 67, 10.3.1994, p. 1.

2. For re-importations following an outward processing operation in accordance with Council Regulation (EC) No 3036/94 [12], the exemption from customs duties shall be limited to the Community annual quantities set out in Annex VI to Regulation (EC) No 517/94 è2 when products originate in ? Serbia and Montenegro ? ?.

[12] OJ L 322, 15.12.1994, p. 1.

ê 2007/2000

Article 4

Agricultural products -- tariff quotas

ê 2487/2001 Art. 1 pt. 6 (adapted)

1. For ? the ? fishery products and wine, ? listed in Annex I and ? originating in the countries and territories referred to in Article 1, the customs duties applicable to imports into the Community shall be suspended ? in accordance with the rules ? set out in that Annex.

ê 2007/2000

è1 2487/2001 Art. 1 pt. 7(a)

2. The customs duties applicable to imports into the Community of 'baby-beef' products defined in Annex II and originating in the countries and territories referred to in Article 1(1), shall be 20% of the ad valorem duty and 20% of the specific duty as laid down in the Common Customs Tariff, within the limit of an annual tariff quota of è1 11 475 ? tonnes expressed in carcase weight.

The volume of the annual tariff quota of è1 11 475 ? tonnes shall be distributed among the beneficiary Republics, as follows:

(a) 1 500 tonnes (carcase weight) for 'baby-beef' products originating in Bosnia and Herzegovina;

ê 2563/2000 Art. 1 pt. 6(b) (adapted)

(? b ?) 9 975 tonnes (carcase weight) for 'baby-beef' products originating in ? Serbia and Montenegro ? including Kosovo.

ê 2563/2000 Art. 1 pt. 6(c)

Imports into the Community of 'baby-beef' products defined in Annex II and originating in Albania shall not benefit from a tariff concession.

ê 2007/2000 (adapted)

Any request for import within these quotas shall be accompanied by an authenticity certificate issued by the competent authorities of the exporting country and attesting that the goods originate in the country or territory concerned and correspond to the definition in Annex II. This certificate shall be drawn up by the Commission according to the procedure provided for in Article 43 of Council Regulation (EC) No 1254/1999 [13].

[13] OJ L 160, 26.6.1999, p. 21.

ê 2563/2000 Art. 1 pt. 7 (adapted)

3. Notwithstanding other provisions of this Regulation, and in particular Article ? 11 ?, given the particular sensitivity of the agricultural and fishery markets, if imports of agricultural and fishery products cause serious disturbance to the Community markets and their regulatory mechanisms, the Commission may take the appropriate measures in accordance with the ? procedure referred to in Article 9(2) ?.

ê 2007/2000 Art. 6

Article 5

Implementation of tariff quotas for 'baby beef'

The detailed rules for implementing the tariff quota for 'baby-beef' products shall be determined by the Commission in accordance with the procedure laid down in Article 43 of Regulation (EC) No 1254/1999.

ê 2007/2000 Art. 7

Article 6

Administration of tariff quotas

The tariff quotas referred to in Article 4(1) shall be administered by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93.

Communication for that purpose between the Member States and the Commission shall be effected, as far as possible, by telematic link.

ê 2007/2000 Art. 8

Article 7

Access to tariff quotas

Each Member State shall ensure that importers have equal and uninterrupted access to the tariff quotas for as long as the balance of the relevant quota volume so permits.

ê 2007/2000 Art. 9 (adapted)

Article 8

Conferment of powers

The Commission shall, in accordance with the procedure referred to in Article ? 9 ? (2), adopt the provisions necessary for the application of this Regulation, other than those provided for in Article ? 5 ?, in particular:

ê 2007/2000

(a) amendments and technical adjustments necessary following amendments to the Combined Nomenclature codes and to the TARIC-subdivisions;

(b) necessary adjustments following the conclusion of other agreements between the Community and the countries and territories referred to in Article 1.

ê 2007/2000 Art. 10 (adapted)

Article 9

Committee

1. The Commission shall be assisted by the Customs Code Committee instituted by Article 247 ? a ? of Council Regulation (EEC) No 2913/92 [14], hereinafter referred to as the 'Committee'.

[14] OJ L 302, 19.10.1992, p. 1.

ê 2007/2000

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

The period referred to in Article 4(3) of Decision 1999/468/EC shall be one month.

3. The Committee shall adopt its rules of procedure.

ê 2007/2000 Art. 11 (adapted)

Article 10

Co-operation

Member States and the Commission shall co-operate closely to ensure that this Regulation, and in particular the provisions set out in Article ? 11 ? (1), are complied with.

ê 2007/2000 Art. 12 (adapted)

Article 11

Temporary suspension

1. Where the Commission finds that there is sufficient evidence of fraud or failure to provide administrative co-operation as required for the verification of evidence of origin, or that there is a massive increase of exports into the Community above the level of normal production and export capacity or a failure of compliance with the provisions of Article 2(1) by countries and territories ? referred to in Article 1 ?, it may take measures to suspend in whole or in part the arrangements provided for in this Regulation for a period of three months, provided that it has first:

ê 2007/2000

(a) informed the Committee;

(b) called on the Member States to take such precautionary measures as are necessary in order to safeguard the Community's financial interests and/or to secure compliance by the beneficiary countries and territories with Article 2(1);

(c) published a notice in the Official Journal of the European Union stating that there are grounds for reasonable doubts about the application of the preferential arrangements and/or compliance with Article 2(1) by the beneficiary country or territory concerned which may call into question its right to continue enjoying the benefits granted by this Regulation.

2. A Member State may refer the Commission's decision to the Council within 10 days. The Council, acting by a qualified majority, may take a different decision within 30 days.

ê 2007/2000 (adapted)

3. On conclusion of the period of suspension, the Commission shall decide either to terminate the provisional suspension measure following consultation of the Committee or to extend the suspension measure in accordance with paragraph 1.

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Article 12

Repeal

Regulation (EC) No 2007/2000 is repealed.

References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex IV.

ê 2007/2000 Art. 17 (adapted)

è1 2563/2000 Art. 1 pt. 12

Article 13

Entry into force and application

This Regulation shall enter into force on the ? twentieth ? day following that of its publication in the Official Journal of the European Union.

It shall apply until è1 31 December 2005 ?.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, [...]

For the Council

The President

[...]

ê 2487/2001 Art. 1 pt. 8 (adapted)

è1 607/2003 Art. 1, 1st indent

è2 607/2003 Art. 1, 2nd indent

è3 607/2003 Art. 1, 3rd indent

è4 607/2003 Art. 1, 4th indent

ANNEX I

CONCERNING THE TARIFF QUOTAS REFERRED TO IN ARTICLE 4(1)

Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together.

>TABLE POSITION>

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ê 2007/2000

ANNEX II

Definition of 'baby beef' products referred to in Article 4(2)

Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together.

>TABLE POSITION>

__________

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ANNEX III

Repealed Regulation with its successive amendments

Council Regulation (EC) No 2007/2000 (OJ L 240, 23.9.2000, p. 1) //

Council Regulation (EC) No 2563/2000 (OJ L 295, 23.11.2000, p. 1) //

Commission Regulation (EC) No 2487/2001 (OJ L 335, 19.12.2001, p. 9) //

Commission Regulation (EC) No 607/2003 (OJ L 86, 3.4.2003, p. 18) // only article 1

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ANNEX IV

Correlation Table

Regulation (EC) No 2007/2000 // This Regulation

Articles 1 - 3 // Articles 1 - 3

Article 4(1) // Article 4(1)

Article 4(2), first subparagraph // Article 4(2), first subparagraph

Article 4(2), second subparagraph, introductory wording // Article 4(2), second subparagraph, introductory wording

Article 4(2), second subparagraph, (a) // Article 4(2), second subparagraph, (a)

Article 4(2), second subparagraph, (d) // Article 4(2), second subparagraph, (b)

Article 4(2), third subparagraph // Article 4(2), third subparagraph

Article 4(2), fourth subparagraph // Article 4(2), fourth subparagraph

Article 4(3) // Article 4(3)

Article 5 // --

Article 6 // Article 5

Article 7 // Article 6

Article 8 // Article 7

Article 9 // Article 8

Article 10 // Article 9

Article 11 // Article 10

Article 12 // Article 11

Article 13 // --

Article 14 // --

Article 15 // --

Article 16 // --

-- // Article 12

Article 17 // Article 13

Annexe I // Annexe I

Annexe II // Annexe II

-- // Annexe III

-- // Annexe IV

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