Legal provisions of SEC(2004)1450 - Decision of the EU-Lebanon Cooperation Council amending Protocol 4 to the Interim Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation - Draft common position of the EC - - Main contents
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| dossier | SEC(2004)1450 - Decision of the EU-Lebanon Cooperation Council amending Protocol 4 to the Interim Agreement, concerning the definition of ... |
|---|---|
| document | SEC(2004)1450  |
| date | November 29, 2004 |
EN
COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 29.11.2004
SEC(2004) 1450 final
Draft
DECISION OF THE EU-LEBANON COOPERATION COUNCIL
amending Protocol 4 to the Interim Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation
- Draft common position of the Community -
(presented by the Commission)
EXPLANATORY MEMORANDUM
1. A system of diagonal cumulation of origin has been put in place in 1997 between the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway and Switzerland (including Liechtenstein) and extended in 1999 to Turkey.
2. At the Euro-med Trade Ministerial Meeting in Toledo of March 2002, it was agreed to extend this system of pan-European cumulation of origin to the Mediterranean partners, as the follow-up of the Barcelona Process launched by Barcelona Declaration adopted on 27 and 28 November 1995.
3. At the Euromed Trade Ministerial Meeting in Palermo on 7 July 2003, Ministers endorsed the new Protocol on rules of origin which allows the extension of the pan-European system of cumulation of origin to the Mediterranean countries. Ministers also requested the partners concerned to take the necessary steps to insert the new protocol in their agreements.
4. In particular it is necessary to reword articles on cumulation as such but also to introduce new provisions on certification of origin, to harmonise provisions concerning the prohibition of drawback of, or exemption from, customs duties, to harmonise the processing requirements laid down in the protocols for non-originating materials to obtain originating status and to introduce amendments which would make the provisions of all protocols identical.
5. Further to the outcome of the EC – Faroe Islands/Denmark Joint Committee of the 28 November 2003, it is proposed to also include the Faeroe Islands in the system of pan-Euro-Mediterranean cumulation of origin.
6. As the differences in tariff preferences granted by the Community to Turkey on the one hand and to its other European trade partners on the other hand have disappeared, it is proposed to allow also agricultural products originating in Turkey to benefit from the pan-Euro-Mediterranean cumulation of origin.
7. Accordingly, in order to introduce pan-Euro-Mediterranean cumulation of origin, the Community has to replace the protocols on rules of origin attached to the free trade agreements with the following countries: Bulgaria, Romania, Iceland, Norway, Switzerland, the Faroe Islands, Turkey, Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Palestinian Authority of the West Bank and Gaza Strip as well as the protocol on rules of origin attached to the European Economic Area Agreement. In the case of Syria, the pan-Euro-Mediterranean protocol on rules of origin is inserted in the Euro-Mediterranean Agreement being negotiated.
8. The Council is therefore asked to adopt a Community position on the extension of the system of cumulation of origin to Mediterranean partners and to present it to the institutions provided for in each of the agreements concerned.
In the case of Algeria, it is proposed to postpone the presentation of the Community position to the EU-Algeria Association Council until the entry into force of the trade provisions of the Euro-Mediterranean Agreement, signed in Valencia on 22 April 2002.
In accordance with the statement of the European Union on the occasion of the fourth meeting of the EU-Israel Association Council on 17 and 18 November 2003, the Community position should only be presented to the EU-Israel Association Council after solving the EU-Israel bilateral issue of rules of origin.
Draft
DECISION OF THE EU-LEBANON COOPERATION COUNCIL
amending Protocol 4 to the Interim Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation
THE COOPERATION COUNCIL,
Having regard to the Interim Agreement on trade and trade related matters between the European Community, of the one part, and the Republic of Lebanon, of the other part 1 , hereinafter referred to as ‘the Agreement’, signed in Luxembourg on the 17 of June 2002 , and in particular Article 32 of the Agreement and Article 38 of Protocol 4 thereof;
Whereas:
(1) The current Protocol to the Agreement provides for the bilateral cumulation of origin between the Community and Lebanon and for diagonal cumulation of origin between the Community, Lebanon and any of the countries which are signatory to a Euro-Mediterranean Association Agreement;
(2) The extension of the system of cumulation is desirable making it possible to use materials originating in the Community, Bulgaria, Romania, Iceland, Norway, Switzerland (including Liechtenstein), the Faeroe Islands, Turkey or in any other country which is participant to the Euro-Mediterranean partnership, based on the Barcelona Declaration adopted at the Euro-Mediterranean Conference held on 27 and 28 November 1995, in order to develop trade and promote regional integration;
(3) For the purposes of implementing the extended system of cumulation only between the countries having fulfilled the necessary conditions and in order to avoid circumvention of customs duties, it is necessary to introduce new provisions concerning certification of origin;
(4) For the purposes of implementing the extended system of cumulation and in order to avoid circumvention of customs duties, it is necessary to harmonise the provisions concerning the prohibition of drawback of, or exemption from, customs duties and the processing requirements laid down in the Protocol for non-originating materials to obtain originating status;
(5) The extended system of cumulation implies that the same provisions on rules of origin apply in the context of preferential agreements concluded between the countries concerned;
(6) Goods in transit or storage on the day on which this Decision becomes applicable should be covered by transitional provisions allowing them to benefit from the extended system of cumulation;
(7) The reasons which motivated the exclusion of agricultural products originating in Turkey from the system of diagonal cumulation are no longer valid;
(8) Joint Declaration on the transitional period concerning the issuing or making out documents relating to the proof of origin does not need to be maintained any longer;
(9) Some technical amendments are required in order to correct anomalies in and between the different language versions of the text;
(10) It is therefore appropriate, for the proper functioning of the Agreement and with a view to facilitate the work of users and customs administrations, to incorporate in a new text of the Protocol all the provisions in question.
HAS DECIDED AS FOLLOWS: