Explanatory Memorandum to COM(2010)628 - Conclusion of the Protocol with Andorra extending to customs security measures the Agreement with Andorra

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The attached proposal for a Council Decision constitutes the legal instrument for the conclusion of a protocol between the European Union and the Principality of Andorra with a view to extending to customs security measures the scope of the Agreement in the form of an Exchange of Letters between the European Economic Community and the Principality of Andorra concluded on 28 June 1990 i.

The Community Customs Code i and its Implementing Rules i, which lay down the rules for the customs treatment of goods that are imported or exported, were amended in 2005 i and 2006 i respectively to make provision for customs security measures. Among these security arrangements is a provision that traders should submit certain information prior to importing or exporting goods, which will make it possible to carry out a risk analysis of such operations prior to the entry or exit of the consignments in question.

In principle, these security measures apply to trade with all non-member countries. However, the Community Customs Code allows for different rules concerning the obligation to provide pre-arrival and pre-departure information where international agreements provide for special security arrangements. It was thus held necessary and in the mutual interest of the European Union and the Principality of Andorra to establish amended rules for customs security in their bilateral trade in goods. Given the geographical position of the Principality of Andorra and the special ties it has with the European Union in the form of a customs union, such an arrangement is needed to ensure in particular that trade runs smoothly while maintaining a high level of security.

Following negotiations, the arrangement consisted in abolishing the requirement for a prior declaration for goods traded between the European Union and the Principality of Andorra. The abolition of this requirement is subject to the condition that the Contracting Parties undertake to guarantee in their respective territories an equivalent level of security through measures based on legislation in force in the European Union.

In addition to provisions for customs-security measures, the arrangement also includes a set of rules to ensure that the Agreement and the acquis communautaire remain in alignment and to provide that, if the equivalence of the respective security measures is no longer maintained, either party may take rebalancing measures, including suspending application of the relevant title of the Agreement.

There is a new Article 12h concerning the protection of professional secrecy and personal data. The exchange of personal data in the context of these measures is governed by provisions in Regulation (EC) No 45/2001 i for the processing of data by the European Commission, and by Directive 95/46/EC i for the processing of data by Member States. Processing of data by the Principality of Andorra is subject to national data protection legislation. The Principality has ratified Council of Europe Convention No 108 for the Protection of Individuals with regard to Automatic Processing of Personal Data and has a level of protection which is in line with the legislation in force in the European Union.

It is specified that, unlike the customs union, this arrangement also applies to agricultural products.

The objective of this proposal is to conclude a Protocol amending the Agreement of 28 June 1990 between the European Economic Community and the Principality of Andorra in order to extend its scope to customs security measures. Accordingly, a new Title IIA introducing an 'arrangement concerning customs security measures' will be added to the 1990 Agreement. Consequently, a proposal for a Council Decision concerning the signing and provisional application of this Protocol is submitted separately.

The proposal has no financial implications for the budget of the European Union.