WT/REG28 0/1 
9 February 2018 
(18-0781) Page: 1/17 
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION  
THE COOPERATION AND CUSTOM S UNION AGREEMENT  BETWEEN  
THE EUROPEAN UNION A ND THE REPUBLIC OF SAN MARINO   
(GOODS ) 
Report by the Secretariat  
This report, prepared for the consideration of the Cooperation and Custom s Union 
Agreement  betwee n the European Union and the Republic of San Marino , has been 
drawn up by the WTO Secretariat on its own responsibility and in full consultation with 
the Parties. The factual presentation reproduces as closely as possible the terminology 
used in the Agreem ent and in the comments provided and does not imply official 
endorsement or acceptance by the Secretariat of such terminology. The report has 
been drawn up in accordance with the rules and procedures contained in the Decision 
for a Transparency Mechanism f or Regional Trade Agreements (WT/L/671) and thus 
does not imply any value judgement by the Secretariat regarding the contents of the 
Agreement.  
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264) . Any statistical questions arising from this report may be 
addressed to Rowena Cabos (tel: +41 22 739 5185) . 
 
 WT/REG280/1  
 
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TABLE OF CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ......................  6 
2.1   Background Information  ................................ ................................ ...............................  6 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  8 
3.1.1    General provisions  ................................ ................................ ................................ .... 8 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  8 
3.1.3    Liberaliz ation schedule  ................................ ................................ ..............................  8 
3.1.3.1    European Union  ................................ ................................ ................................ ..... 8 
3.1.3.2    San Marino  ................................ ................................ ................................ ........... 10 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....10 
3.2   Rules of origin  ................................ ................................ ................................ ............ 11 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 11 
3.4   Regulatory Provisions of the Agreement  ................................ ................................ ........ 11 
3.4.1    Standards  ................................ ................................ ................................ ............... 11 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......11 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 11 
3.4.2    Safeguard mechanism  ................................ ................................ .............................. 12 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .12 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 12 
3.4.5    Customs -related procedures ................................ ................................ ...................... 12 
3.5   Sector -Specific Provisions of the Agreement  ................................ ................................ ..12 
3.5.1    Agricultura l products  ................................ ................................ ................................ 12 
4   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  13 
4.1   Transparency  ................................ ................................ ................................ ............. 13 
4.2   Current payments and capital movements  ................................ ................................ .....13 
4.3   Exceptions  ................................ ................................ ................................ ................. 13 
4.3.1    General exceptions  ................................ ................................ ................................ ..13 
4.3.2    Security exceptions  ................................ ................................ ................................ ..13 
4.4   Accession and Withdrawal ................................ ................................ ............................ 13 
4.5   Institut ional framework  ................................ ................................ ............................... 13 
4.6   Dispute settlement  ................................ ................................ ................................ .....13 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 13 
4.8   Government procurement  ................................ ................................ ............................ 15 
4.9   Intellectual property rights  ................................ ................................ .......................... 15 
4.10   Other  ................................ ................................ ................................ ...................... 15 WT/REG280/1  
 
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  4.10.1    Cooperation  ................................ ................................ ................................ .......... 15 
4.10.1.1    Small and medium -sized enterprises  ................................ ................................ .....15 
4.10.1.2    Environmental protection  ................................ ................................ ..................... 15 
4.10.1.3    Specific services (Tourism, communication, information and cultural matters)  ............ 15 
4.10.2    Trade in services  ................................ ................................ ................................ ....16 
4.10.3    Social provisions  ................................ ................................ ................................ ....16 
ANNEX 1  ................................ ................................ ................................ ........................  17 
 
 
 
 WT/REG280/1  
 
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Key Facts  
 
Parties to the Agreement:  The European Union1 and its Member 
States and San Marino  
 
Date of Signature:   16 December 1991  
 
Date of Entry into Force:  1 April 2002  (entry into force of the 
Interim Trade and Customs Union 
Agreement on 1 Decemb er 1992)  
 
Date of Notification:   24 February 2010  
 
Full implementation :  1 April 2002  
 
 
 
1  TRADE ENVIRONMENT  
1.1.  The current legal framework for EU relations with San Marino consists of three agreements:  
a. a Cooperation and Customs Union Agreement (hereinafter "t he Agreement ") that 
establish es a customs union between the European Union2 (hereinafter the EU) and San 
Marino and cover s products  under  Harmonized System ( HS) Chapters 1 to 97  except for 
the coal and steel products covered by the ECSC Treaty .3 It was signed on 16 December 
1991 and entered into force on 1 April 2002.  An Interim Agreement on Trade and 
Customs Union was in place between 1 December  1992 and 31 March 2002. The 
Agreement replicated the provisions on trade in goods contained in the Interim 
Agreement;  
b. a Monetary Agreement between the European Union and the Republic of San Marino  in 
force since 1 September 2012 , covering the use of the Euro as official currency and the 
minting of Euro coins.  The Agreement also ensures that the rules of the EU regarding 
banknotes and Euro coins, including protection against counterfeiting, are applicable in 
San Marino's  territory.  The 2012 Monetary Agreement repealed the Monetary Agreement 
between the Italian Republic, on behalf of the European Community, and the Re public of 
San Marino , which entered into force in 2001 and covered the use of the Euro as the 
official currency and the minting of Euro coins  by San Marino;  and 
c. an Agreement on the taxation of savings income, in force since 1 July 2005, provides for 
measur es equivalent to those laid down in the savings taxation directive 2003/48/EC.  An 
amending Protocol aimed at improving tax compliance by private savers was signed on 
8/12/2015 . The Protocol was provisionally applied as from  1 January 2016  and entered 
into force on 1 June 2016 . 
1.2.  The Agreement is one of the EU's 37 RTAs4 notified to the WTO. It is also the first RTA 
referring to San Marino as a Party ever notified to the WTO . 
1.1  Merchandise trade  
1.3.  The EU and San Marino differ very substantially in many aspects, in cluding the size of their 
economies and their participation in world trade. While the EU is the 2nd largest importer and 
exporter of goods in the world, the size of San Marino's trade globally is negligible. Based on 2015 
                                                
1 European Economic Community (EEC) at the moment of the signature of the Agreement . 
2 By virtue of the Treaty of Lisbon, as of 1 December 2009, the European Union replaces and succeeds 
the European Community, with which the Agreement had been conclud ed in 1991.  
3 The Treaty establishing the European Coal and Steel Community (ECSC Treaty)  has become obsolete 
since its expiry in 2002 . 
4 Including the Rome Treaty, but not counting the successive EU enlargements.  WT/REG280/1  
 
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  trade data5, San Marino was the EU 's 139th largest source of imports6 and 143rd destination for 
exports7, while, the EU was , by far, San Marino's largest source of imports8 and destination for 
exports .9   
1.4.  Developments in global (for the EU only) and intra -Party trade are presented in Chart  1.1 
over the period s 2000-2016 (EU global trade and bilateral trade with San Marino, based on 
Eurostat data); and 2011 -2015 (San Marino's global trade and with the EU), based on San 
Marino's data) .  
Chart 1.1 EU-San Marino : Merchandise bilateral trade and with world  
0.00.51.01.52.02.53.03.54.04.55.0
0.00.51.01.52.02.53.03.54.04.55.0
2011 2012 2013 2014 2015B. San Marino 2011 -2015 
(€billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
0.00.20.40.60.81.0
02004006008001,0001,2001,4001,6001,8002,000
2000 2002 2004 2006 2008 2010 2012 2014 2016A. EU 2000 -2016 
(€billions)
Imports from San Marino (Right Axis)
Exports to San Marino (Right Axis)
Total Imports
Total Exports
 
Source:  Eurostat and Tax office, San Marino.  
 
1.5.  The commodity structure of trade between the EU and San Marino10, as well as the structure 
of the EU 's trade with  the world, during the period 1999-2001 (EU15) and the period 2013 -2015 
(EU28) , is shown in Chart 1.2, on the basis of Harmonized System (HS) Sections. The share of 
machinery  (essentially washing and bottling machines and woodworking machines)  in San Marino's 
total import share from the EU ha s increased on average, from 29% to 41%, between the first 
period (1999 -2001) and the second (2013 -2015). Plastics, chemical products, and textiles 
constitute most of the remaining EU imports originating in San Marino.  
                                                
5 Sources: for the EU: Eurostat (Data excl uding intra -EU trade); and for San Marino: Ufficio informatica, 
tecnologia, dati e statistica della Repubblica di San Marino (Office of Economic planning, data processing and 
statistics of the Republic of San Marino) . 
6 In 2015 , the five top sources of imp orts for the EU  were: China (20.3%); the US (14.4%); Russia 
(7.9%); Switzerland (5.9%); and Norway (4.3%).  
7 In 2015 , the five top destinations for EU's exports were: the US (20.7%); China (9.5%); Switzerland 
(8.4%); Turkey (4.4%); and Russia (4.1%) .  
8 In 2015 , the five top sources of imports for San Marino  were: the EU(28) (91.5%); China (4.3%); the 
US (0.5%); Switzerland (0.5%); and India (0.4%).  
9 In 2015 , the five top destinations for San Marino's  exports were: the EU(28) (92%); Russia (1.2%); 
Switze rland (1%), China (0.8%); and the US (0.7%).  
10 Based on Eurostat data.  WT/REG280/1  
 
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  Chart 1.2 EU: Produ ct composition of merchandise trad e with San Marino and the world  
29
2322653327EU imports from San Marino (%)
28
14
9776433332227EU's Global Imports (%)
41
226555333223EU imports from San Marino (%)
26
22
96664333327EU's Global Imports(%)Total: €68million Total: €947 billion
Total: €1,703 billion Total: €71 millionA.Annual average 1999 -2001
B. Annual average 2013 -2015
Prepared 
foodsVegetablesLive 
animals
PlasticsChemicalsMinerals
TextilesWood pulpRaw hides 
and skins
MachineryBase 
metalsPrecious 
stones
MiscellaneousOpticalVehicles
OtherWorks of art
 
Note:  Data for 1999 -2001 is EU(15)  and for 2013 onwards is EU(28) . 
Source:  Eurostat.  
 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed on 16 Decembe r 1991  and entered into force on 1 April 2002.  An 
Interim Agreement on Trade and Customs Union was in place between 1 December  1992 and 
31 March 2002.  The Agreement replicated the provisions on trade in goods contained in the 
Interim Agreement. It was notified on 24 February 2010  under Article  XXIV:7(a) of GATT 1994 
(see document WT/REG280 /N/1) . 
2.2.  The Custom s Union between the EU and San Marino  is established in Article 1  of the 
Agreement . The text of the Agreement, together with its annexes, is available on the Parties'  
official website s: 
European Union :   
 1992 interim agreement : http://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=urise rv:OJ.L_.1992.359.01.0013.01.ENG&toc=OJ:L:1992:359:TOC  
 2002 agreement :http://eur -lex.europa.eu/legal -
content/EN/TXT/?qid=1399392072653&uri=CELEX:2200 2A0328(01)  WT/REG280/1  
 
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  San Marino :  
 2002 agreement :http://www.esteri.sm/on -line/en/home/foreign -affairs/san -marino -and-
the-eu/agreements/cooperation -and-customs -union -agreement.html  
 
2.3.  The 2002 Agreement is composed of 32 Articles .11 Box 2.1 below summarizes th e structure of 
the Agreement. One Annex and five Declarations are attached to and form an integral part of the 
Agreeme nt.   
Box 2.1 Structure of the Agreement  
Titles, Annex, and 
Declarations  Title/description  
Preamble   
Title I  Customs Union  
Title II  Cooperation  
Title III  Social provisions  
Title IV  General and final prov isions  
  
Annex  List of customs offices (Art. 8(1)(a))  
  
Declarations (5)  - by the EU (negotiations on behalf of San Marino)  
- by the EU (on transport)  
- by the EU (on the Erasmus programme)  
- by the EU (on certain subjects which may be raised in the Co operation 
Committee)  
- by the (EU) Member States (concerning the minutes of the negotiations)  
Source:  WTO Secretariat based on the Agreement.  
2.4.  A series of Protocols to the Agreement have also been concluded consequent upon the 
successive accessions to the EU as part of the EU enlargement process. Moreover, the EU -San 
Marino Cooperation Committee has, since 1992, adopted a number of Decisions on matters 
covered by the Agreement in the context of its administration and implementation.  
2.5.  In addition to the Agree ment,  bilateral relations between the EU and San Marino are 
completed by  the agreements mentioned above in paragraphs  1.1.b and 1.1. c. Moreover, since 
2015, negotiations on the conclusion of an Association Agreement are being conducted between 
the Parties.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  The Agreement covers all products of HS Chapters 1 to 97  except for the coal and steel 
products covered by the ECSC Treaty12 (hereinafter referred to as the "ECSC products") .  
3.2.  San Marino applies laws, regulations and administr ative provisions applicable to customs 
matters in the EU and necessary for the proper functioning of a customs union between the 
Parties. Moreover, the Agreement also establishes, in Article 7, that from the entry into force of 
the Agreement, San Marino sh all apply, inter alia , the (EU) Common Customs Tariff13; and the 
common commercial policy of the EU.  Further Decisions of the Cooperation Committee have 
accompanied San Marino's progressive adoption of the EU acquis. For example, on 23 June 2010, 
the Partie s adopted the "Omnibus" decision No 1/2010 establishing various implementing 
measures for the Agreement.  
                                                
11 The Interim Agreement replicates the provisions of Title 1 of the Agreement (Customs Union), and of 
Title IV of the Agreement (General and final provisions).  
12 The Parties clarify th at the exemption for ESCC products still exists, even if the Treaty itself has 
disappeared. Before its expiry, there was a gradual transition of the two sectors into the Treaty establishing 
the EC. The rules of the latter Treaty have applied since the expi ry of the ECSC Treaty. 279 products (8 -digit 
tariff lines under the HS 2002 nomenclature) composed the category of former ECSC products, essentially 
constituted of a selection of products from HS Chapters 26 and 27 (some ores and coal products), and 72 and  
73 (some iron and steel products).  
13 Publications, works of art, scientific or teaching materials and medical supplies or equipment offered 
to the Government of San Marino, insignia, medals, stamps, printed matter and other similar objects or paper 
destin ed for use by the Government of San Marino shall be exempt from customs duties (Article 7, third 
paragraph).  WT/REG280/1  
 
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  3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.3.  Article 5 forbids the introduction of new customs duties on imports or cha rges having 
equivalent effect. It also makes a mention of the exchange of letters of 1972 between San Marino 
and Italy14, still in force, which contain the applicable procedures as a consequence of the 
introduction of the VAT in Italy. This lat ter aspect do es not imply the introduction of any new 
customs duties on imports.  
3.4.  Quantitative restrictions on imports and all measures having equivalent effect between the 
EU and San Marino shall be prohibited from the entry into force of the Agreement ( Article 9). 
3.5.  The Parties agree to apply national tr eatment to each other's imports ( Article 11).  
3.1.2   Liberalization of trade and tariff lines  
3.6.  In the Agreement, both Parties agree to conditionally exempt each other's products from all 
import and export duties and charges ha ving equivalent effect.  
3.7.  Transitional mechanisms were put in place in an interim phase to progressively achieve the  
objective set out in the Agreement.  
3.8.  Additional transitional mechanisms are also designed to adjust to successive EU 
enlargements .15  
3.1.3   Liberal ization schedule  
3.9.  As the Agreement establishes a Custom s Union, import and export duties and charges having 
equivalent effect  have been abolished  for products originating  in one of the P arties or in free 
circulation there, except for ECSC products . With res pect to the ECSC products, the MFN rate is 
applicable to products originating in San Marino. It should be noted that for a varying number of 
these products, the applied MFN , may be  duty-free.16 It should also be pointed out that records  
show that San Marino 's exports to the EU of  products under the ECSC have been negligible 
between 2000 and 2016 .17 In the case of San Marino, no duty is collected with respect to imports 
from the EU.  
3.1.3.1   European Union  
3.10.   The EU's applied tariff in 2002  consisted of 10,400  lines at the HS eight -digit level 
(HS 2002). 90.35 % of the tariff rates were ad valorem  and 1,004  lines had non -ad valorem  
tariffs.18 In 2016, using HS 2012, the EU's applied tariff consisted of 9,414 lines also at the 
HS eight-digit level. 89.4% of the tariff rates w ere ad valorem  and 998 lines had non -ad valorem  
tariffs.19  
3.11.   Table 3.1 shows tariff elimination commitments by the EU  under the Agreement  based on 
the HS 2002 nomenclature and HS 2012 for 2002 and 2016 tariffs, respectively .  
                                                
14 The text of the Exchange of letters is available at http://www.esteri.sm/on -line/home/affari -
esteri/trattati -internazionali/convenzioni -bilaterali/accordi -bilaterali -con-litalia/documento1026016.html    
15 The Agreement specifically adjust s to the EU enlargement to Spain and Portugal. Eventual 
enlargements were accommodated to through specific Protocols.  
16 This is in particular been the case for all coal products.  
17 Since 2000, Eurostat data only show imports by the EU originating in San Ma rino in 2006 for some 
iron and no -alloy steel (72069000); in 2008 for some bulb sections "bulb flat" (HS 72165091); and, in 
2014)waste and scrap of tinned iron or steel (72043000). These imports respectively represent 0.4%, 
0.0003%, and 0.2 of the EU globa l imports of the concerned products, thus a negligible part of trade.  
18 Duties for 638 lines were specific; 198 consisted in compound duties, 78 lines had mixed duties; and 
4 lines were with other duties.  
19 Duties for 652 lines were specific; 199 consisted  in compound duties, 64 lines had mixed duties; and 
83 lines were with other duties.  WT/REG280/1  
 
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  3.12.   Using the HS 2012 nomenclature, the sit uation was the following in 2002 : 2,248 lines were 
duty free on an MFN basis, representing 25.1% of the EU's total tariff, corresponding to 17.4% of 
its imports from San Marino during 1999-2001. The 7,90 7 tariff lines (according to the HS 2002 
nomen clature) that became duty free in 2002, immediately following the entry into forc e of the 
Agreement corresponded to 76% of the EU tariff (in 2002), leaving 245 tariff lines dutiable .20 
These products remain ing dutiable consisted of  former ESCS products for which the applicable MFN 
rate was not 0%. As a result  almost 100% of the EU's tariff was duty free in 2002, under the 
Agreement, representing the totality of the EU's imports from San Marino. Table 3.1 below also 
shows the corresponding figures with respec t to the situation in 2016, as applicable to the EU28, 
using the period 2013 -2015 as reference to calculate the percentage of the EU's total imports from 
San Marino. It also shows that almost the entire EU tariff was duty free, with only 7 (former ESCS 
products for which the MFN applied rate was not 0%) tariff lines remain ing dutiable21, 
corresponding to 100% of EU imports from San Marino being duty free .  
Table  3.1 European Union  
Tariff elimination commitments under the Agreement and corresponding average t rade 
Duty phase -out 
period  Number of lines  % of total lines 
in EU's tariff 
schedule  Value of EU's 
imports from  
San Marino  
€ million  % of EU's total 
imports  
from San Marino  
 
2002  2016  2002  2016  1999 -
2001 2013 -
2015  1999 -
2001  2013 -
2015  
MFN 2,248  2,360  21.6 25.1 11.0 9.6 15.9 17.4 
Under the 
Agreement  7,907  7,047  76.0 74.9 58.0 45.3 84.1 82.6 
Remain dutiable*  245 7 2.4 0.1 0.0 0.0 0.0 0.0 
Total  10,400  9,414  100.0  100.0  69.0 54.8 100.0  100.0  
* Tariff lines belong to the European Coal and Steel Community (ECSC) Treaty products for which  MFN 
rate is dutiable.  
Note:  Based on the HS 2002 and HS 2012 nomenclature for 2002 and 201 6 tariffs, respectively.  
Source:  WTO estimates based on data from EU authorities and WTO -IDB and WTO -TPR. 
 
3.13.   Table 3.2 depicts the EU's tariff elimination, by HS section with regard to San Marino and 
shows that the remaining dutiable tariffs ( 245 lines) are  all found un der Section XV  (base metal) , 
as they belong to the category of former ECSC products for which the MFN applied rate is not 0% .  
Table  3.2 European Union  
Tariff elimination commitments under the Agreement , by HS Section, 2002  HS Section  MFN Av erage  
% No. of lines  MFN duty -free 
lines  Number of 
additional duty -
free lines under 
the Agreement  Remain 
dutiable*  Avg. Final 
Tariff  
(Dutiable)  2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
I 8.7 9.8 811 931 117 107 694 824     
II 5.4 5.5 563 557 147 150 416 407     
III 6.0 5.9 128 128 22 23 106 105     
IV 14.6 14.9 852 840 87 95 765 745     
V 0.7 0.8 256 234 193 170 63 64     
VI 4.2 4.3 1,311  1,168  365 303 946 865     
VII 4.9 4.6 375 301 84 62 291 239     
VIII 2.9 3.1 158 130 48 45 110 85     
IX 2.7 2.4 190 213 87 99 103 114     
X 1.4 0.0 257 195 68 195 189      
XI 8.4 8.0 1,301  1,159  52 39 1,249  1,120      
XII 8.0 8.2 114 106 2 2 112 104     
                                                
20 The 245 remain dutiable tariff lines correspond to a selection of iron and steel products classified in 
Chapters 72 and 73 (HS 2002).  
21 The 7 remain dutiable tariff line s correspond to a selection of iron and steel products classified in 
Chapter 72.  WT/REG280/1  
 
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HS Section  MFN Av erage  
% No. of lines  MFN duty -free 
lines  Number of 
additional duty -
free lines under 
the Agreement  Remain 
dutiable*  Avg. Final 
Tariff  
(Dutiable)  2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
2002  
2016  
XIII 3.8 4.0 258 240 38 33 220 207     
XIV 0.7 0.6 63 56 48 45 15 11     
XV 2.2 1.8 1,117 953 131 500 741 446 245 7 1.0 2.1 
XVI 2.1 2.3 1,683  1,375  522 307 1,161  1,068      
XVII 4.5 4.9 293 269 44 30 249 239     
XVIII 2.2 2.5 396 322 139 89 257 233     
XIX 2.3 2.2 30 22 5 4 25 18     
XX 2.6 2.6 237 208 42 55 195 153     
XXI 0.0 0.0 7 7 7 7       
Total  4.9 5.1 10,400  9,414  2,248  2,360  7,907  7,047  245 7 1.0 2.1 
* Tariff lines belong to the European Coal and Steel Community (ECSC) Treaty products where MFN is 
dutiable.  
Note:  For the calculation of averages, specific rates are excluded a nd the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2002 and HS 2012 nomenclature for 2002 and 2016 tariffs, respectively.  
Source:  WTO estimates based on data from EU authorities and WTO -TPR. 
 
3.1.3.2   San Marino  
3.14.   Prior to the entry into force  of the Agreement22, San Marino was considered to be part of 
the customs territory of the EU (then the EEC) as a result of the convention of friendship and good 
neighbourhood of 31 March 1939, concluded between San Marino and Italy . Consequently, goods 
from San Marino were considered to be EU goods and there was no differen ce in  treatment 
between both  categories of  goods . 
3.15.   From the entry into force of the Agreement, all in goods originating in the EU , except for 
ECSC products, were imported duty free into San  Marino .  
3.16.   Under the Agreement, and  according to Article 6, San Marino committed to abolish all 
charges having equivalent effect to customs duties, which may have been applied in 1991, within a 
transitional period of five years (ending on 1 January 1996). In order to fulfil this commitment , 
San Marino was to introduce, within six months of the entry into force of the Agreement, a 
"supplementary tax " corresponding to the charge  having equivalent effect that was levied on 
imported goods. Such "supplementary ta x" is chargeable on domestic products intended for home 
consumption. It has been  applied since on 1 January 1996 and had to be applicable as a  so-called  
"countervailing measure" .23 The level of the tax was calculated based on the added value of 
domestic pro ducts at rates equal to those applied to imported goods of a similar kind. The 
"supplementary tax" corresponds to that currently levied on imported goods, to be chargeable on 
domestic products intended for home consumption.  It is calculated on the added va lue of domestic 
products at rates equal to those applied to imported goods of a similar kind, according  to a mechanism 
described in San Marino's Law No 140 of 1995.    
3.1.4   Tariff rate quotas  
3.17.   The Agreement does not contain any provision and/or commitment by a P arty on tariff rate 
quotas.  
                                                
22 And in fact even prior to the application of the Interim Agreement on Trade and Customs Union (in 
1992). 
23 The term "countervailing measure" is however not to be confused wi th the term "countervailing 
measure" used in the context of, for instance, the WTO Agreement on subsidies and countervailing measures.  WT/REG280/1  
 
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  3.2  Rules of origin  
3.18.   The Agreement does not contain a specific section on rules of origin. It simply states that 
the customs union shall apply to goods produc ed in the EU or in San Marino, including those 
obtained wholly or in part f rom products which come from third -parties and are in free circulation 
in the EU or in San Marino. The Agreement also applies to goods which come from third -parties 
and are in free circulation in the EU or in San Marino ( Article 3, paragraph 1). Third -party products 
are considered to be in "free circulation" in the EU or in San Marino "if the import formalities have 
been complied with and any customs duties or charges having equivalent effect which are payable 
have been levied, and there has been no total o r partial drawback of such duties or charges in 
respect of the said products" ( Article 3, paragraph 2).  
3.19.   Goods obtained or produced in the EU or in San Marino in the manufacture of which third 
party products were used and which were  not in free circulation  either in the EU or in San Marino 
are also covered by the Agreement ( Article 4). In this case however, the Agreement only applies if 
the exporting Party levies the customs duties laid down in the EU for third -party products used in 
their manufacture.  
3.3  Expo rt duties and charges, and quantitative restrictions  
3.20.   Article 5 forbids the introduction of new customs duties on exports  or charges having 
equivalent effect.   
3.21.   Quantitative restrictions on exports  and all measures having equivalent effect between the 
EU an d San Marino shall be prohibited from the entry into force of the Agreement ( Article 9). 
3.4  Regulatory Provisions of the Agreement  
3.4.1   Standards  
3.22.   While the Agreement does not contain any specific section on standards, a few specific 
provisions address some SPS and  TBT-related matters .24 More importantly, Article 7 contains San 
Marino's overall commitment to apply, in respect of countries that are non-members of the EU, 
inter alia , the laws, regulations and administrative provisions applicable to customs matters in t he 
EU, including in relation to standards, and necessary for the proper functioning of the customs 
union.  San Marino also commits specifically to apply EU veterinary, plant health and quality 
regulations where necessary for the proper functioning of the Ag reement.  
3.4.1.1   Sanitary and phytosanitary measures  
3.23.   In addition to San Marino's commitment to apply the EU acquis "where necessary for the 
proper functioning of the Agreement",  Art. 6 (on exemption of import and export duties)  contains 
San Marino's undertaking to adopt EU veterinary, plant health and quality regulations where 
necessary for the proper functioning of the Agreement. Moreover, Decisions, such as No 1/94 of 
the Cooperation Committee of 28 June 1994 addressing EU veterinary regulations to be adopted 
by San Marino, also cover SPS measures.  In particular, it lists the EU veterinary acts (essentially 
Directives) whose provisions are to be adopted by San Marino. It also lists the EU veterinary acts 
whose provisions on imports from third -parties must, where relevant, be complied with by San 
Marino.  On 23 June 2010, the  Parties adopted the  "Omnibus" decision No 1/2010 of the EU -San 
Marino Cooperation Committee, which, inter alia , recognizes that, in order to apply particular 
customs regimes, and to apply the l egislation relating to international trade in endangered species 
of wild fauna and flora, the customs territory of the EU and the territory of San Marino shall be 
considered a single customs territory.  
3.4.1.2   Technical barriers to trade  
3.24.   In addition to San Marino' s commitment to apply the EU acquis "where necessary for the 
proper functioning of the Agreement", the Agreement otherwise does not cover technical barriers 
                                                
24 As the Agreement pre -dates the WTO Agreement, no reference to the WTO is made under the 
Agreement.  WT/REG280/1  
 
- 12 - 
 
  to trade in detail . A Declaration by the EU is nevertheless attached to the Agreement, which  states  
the EU's readiness to examine within the framework of its powers and the Cooperation committee, 
any problems that may arise between the Parties in relation to the assessment of product 
conformity with technical regulations .25 
3.4.2   Safeguard mechanism  
3.25.   Article 12  contains rules on safeguard measures . It allows the Parties to take necessary 
measures if serious disturbances arise in any sector of the economy of one of the Parties.  It 
includes disciplines on transparency, including on notification and consultation; f oresees the 
possibility to take provisional measures, applying the precautionary principle as necessary to 
remedy the situation; and establishes that in the selection of measures, priority must be given to 
those which least disturb the functioning of the A greement, while not exceeding the limits of what 
is strictly necessary to counteract the difficulties that have arisen.  
3.26.   The Agreement does not make any reference to GATT/WTO provisions on safeguard 
measures and/or on BOP measures, and does not establish an y sector -specific and/or special or 
other safeguard mechanism.  
3.4.3   Anti-dumping and countervailing measures  
3.27.   The Agreement does not contain any  provision on  antidumping and/or countervailing 
measures .26 
3.4.4   Subsidies and State -aid 
3.28.   Taxes and levies on imports of agri cultural products  may be used by San Marino for aiding 
productio n or exports (Article 8). The Agreement does not contain any other specific provision on 
subsidies and/or State-aid. 
3.4.5   Customs -related procedures  
3.29.   San Marino authorizes EU customs offices to act on behalf of, and for , San Marino to carry 
out customs clearance formalities  over a period of five years from the entry into force of the 
Agreement. At the end of this period, the Republic of San Marino may exercise its right to carry 
out customs clearance  formalities, following agreement of the Contracting Parties (Article 8). The 
Cooperation Committee decides on the list of the customs offices competent to clear goods as well 
as on the arrangement s for assigning to the San Marino Exchequer the relevant am ounts collected 
with respect to trade (Art. 8, paragraph 3).  
3.5  Sector -Specific Provisions of the Agreement  
3.5.1    Agricultural products   
3.30.    San Marino shall apply in respect of third -parties, inter alia , EU regulations on trade in 
agricultural products, with the ex ception of refunds and compensatory amounts accorded for 
exports (Article 7 .1, fourth indent). Moreover, San Marino shall also apply EU veterinary, plant 
health and quality regulations where necessary for the proper functioning of the Agreement 
(Article 7 .1, fifth indent), as determined in greater detail by the Cooperation Committee (Art icle 7, 
second paragraph). Provisions on subsidies applicable to San Marino for agricultural products are 
also contained in Article 8 (paragraph  4). 
                                                
25 Fourth indent of t he Declaration by the [EU] on certain subjects with may be raised in the 
Cooperation Committee.  
26 Though a reference to the term "countervailing measure" is contained in Article 6, in connection with 
the "supplementary tax", the measures referred in Articl e 6 is not connected to the imposition of a tariff but 
rather refers to an internal tax applicable, on certain conditions, only to goods domestically produced.  
Moreover, as the Agreement pre -dates the WTO Agreement, no reference to the WTO is made under th e 
Agreement.  WT/REG280/1  
 
- 13 - 
 
  4  GENERAL PROVISIONS O F THE AGREEMENT  
4.1  Transparency  
4.1.  The Agreement does not contain specific provisions on transparency besides a request to the 
Parties to exchange information in certain fields. Transparency is essentially addressed through the 
role given to the Cooperation committe e for administering the Agreement and ensuring, inter alia, 
through channelling exchange of information between the Parties, its proper implementation 
(Article 23).  
4.2  Current payments and capital movements  
4.2.  The Agreement does not contain any provision on paym ents and capital movements.  
4.3  Exceptions  
4.3.  Provision on general exception s is contained in Article 10.  
4.3.1   General exceptions  
4.4.  Elements similar to some of those contained in  Article XX of GATT 1994  (general exception) 
allow the Parties to take  measures justified on  grounds of public morality, public policy or public 
security, the protection of health and life of humans, animals or plants, the protection of national 
treasures possessing artistic, historic or archaeological  value, the protection of industrial or 
comme rcial property, or controls relating to gold and silver . Such measures may be taken provided 
they do not constitute a means of arbitrary discrimination or a disguised restriction on trade 
between the Parties.  
4.3.2   Security exceptions  
4.5.  The Agreement is silent on the possibility of the  Parties to take measures generally contained 
in provisions on security exception s.  
4.4  Accession and Withdrawal  
4.6.  The Agreement does not contain any accession provisions. Termination is, however, 
governed by Article 27. 
4.5  Institutional fram ework  
4.7.  A Cooperation Committee is established for administering the Agreement and ensuring its 
proper implementation (Article 23).  
4.6  Dispute settlement  
4.8.  The Agreement foresees that disputes arising between the Parties shall be put before the 
Cooperation Commi ttee. If it is not possible to settle the dispute, each Party may notify to the 
other an arbitrator. In turn, the Cooperation Committee shall designate a third arbitrator.  
4.9.  The arbitrators' decisions shall be taken by majority vote and each Party to the di spute shall 
be required to take the measures needed to ensure the application of the arbitrators' decision 
(Article 24).  
4.7  Relationship with other agreements concluded by the Parties  
4.10.   The Agreement replaces provisions of agreements concluded between EU Membe r States 
and San Marino that conflict with it, or which are identical (Article 28) . 
4.11.   The regional trade agreements entered into  by the EU are listed in Table 5.1.  Through a 
Declaration attached to the Agreement, the EU states its preparedness, where the sca le of trade WT/REG280/1  
 
- 14 - 
 
  flows so warrants, to negotiat e on behalf of, and for, San Marino with countries with which the EU 
has concluded preferential agreements for an appropriate form of recognition of equivalent 
treatment for products originating in San Marino and p roducts originating in the EU. With the 
exception of the EU -Mexico FTA of 2000 (currently being renegotiated), t he recognition of 
San Marino has been successfully negotiated in all recent FTAs concluded by the EU.  
Table 4.1 European Union: Participation in other RTAs (notified and non -notified in 
force), as of 24 November 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EUROPEAN UNION  
EU – Canada  21-Sep-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU – Colombia, Peru – Accession of 
Ecuador  1-Jan-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU – SADC  10-Oct-16 Goods  2017 GATT Art. XXIV  
EU - Côte d'I voire 03-Sep-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Central America  01-Aug-13a Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern  and Southern Africa 
States Interim EPA  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Papua New Guinea / Fiji  20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - Cariforum States EPA  01-Nov-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT A rt. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - Former Yugoslav Republic of 
Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestinian Authority  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art.  XXIV 
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  WT/REG280/1  
 
- 15 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EU – Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU - Kosovo  01-Apr-16 Goods  Not notified  
a The notifications made in February 2013 (see WT/REG3 32/N/1 and S/C/N/680) stated that: 
"Provisional  application of the Agreement by all signatory parties is expected in the course of the 
second quarter 2013";  
 Further notifications to confirm the dates of entry into force between the EU and Central American  
countries  are awaited.  
Source:  WTO Secretariat.  
 
4.8  Government procurement  
4.12.   The Agreement does not contain any provision on government procurement.  
4.9  Intellectual property rights  
4.13.   The Agreement does not specifically cover intellectual property rights. Neverthele ss, a 
Declaration by the EU attached to the Agreement, states the EU's readiness to examine within the 
framework of its powers and the Cooperation committee, any problems that may arise between 
the Parties in relation to intellectual, industrial and commer cial property rights .27 
4.10  Other  
4.10.1   Cooperation  
4.14.   The Agreement identifies several priority areas for cooperation between the Parties.  The 
possibility to enlarge the scope of areas of cooperation between the Parties beyond what is 
identified in the Agreement is als o anticipated by the Agreement ( Article 19). 
4.10.1.1   Small and medium -sized enterprises  
4.15.   Growth and diversification of the industrial and services sectors of the economy of 
San Marino, with a focus on small and medium -sized enterprises, is encouraged ( Article 15).  
4.10.1.2   Environmental protection  
4.16.   The Parties agree to cooperate on matters relating to environmental protection and 
improvement with the aim of resolving the problems caused by contamination of water, soil and 
air, by erosion and by deforestation ( Article 16). Sp ecial attention is to be paid to the problems of 
pollution in the Adriatic Sea.  
4.10.1.3   Specific services (Tourism, communication, information and cultural matters)  
4.17.   Priority sectors for cooperation include the tourism sector for which cooperation is envisaged 
through operations such as the exchange of officials and experts on tourism, exchange of 
information and tourism statistics, and training in hotel management and administration. The 
Parties agree to pay particular attention to the promotion of out -of-season t ourism in San Marino 
(Article 17). The Parties also agree to undertake joint operations in communications, information 
and cultural matters. Such operations may take the forms of exchanges of information; cultural 
events; cultural exchanges; or academic ex changes ( Article 18).  
4.18.   Three Declarations by the EU, attached to the Agreement, state the EU's readiness to 
examine matters related to San Marino's access to the market for international transport of 
passengers and goods by road28; San Marino's wish to part icipate, in relation to education 
                                                
27 Second indent of the Declaration by the [EU] on certain subjects with may be raised in the 
Cooperation Committee.  
28 Declaration by the [EU] on transport.  WT/REG280/1  
 
- 16 - 
 
  services, in the Erasmus programme for exchanges of students and teachers .29 Moreover, a 
Declaration by the [EU] Member States establishes  that each Member State will look favourably on 
requests by San Marino concerning aut horisations for the transport of passengers or freight by 
road.30 
4.10.2   Trade in services  
4.19.   The Agreement does not specifically cover trade in services, other than through identifying 
some services sectors as matters for cooperation between the Parties (see above).  Nevertheless, a 
Declaration by the EU attached to the Agreement, states the EU's readiness to examine within the 
framework of its powers and the Cooperation committee, any problems that may arise between 
the Parties in relation to trade in services .31 In the same context, the Declaration also identifie s 
recognition of qualifications as a n area in which  the EU stands ready to examine in case problems 
may arise between San Marino and the EU.  
4.10.3   Social provisions  
4.20.   The Agreement establishes the principle of non -discrimination based on nationality between 
the Parties as regards working conditions or remunerations by workers ( Article 20). Moreover, 
non-discriminatory treatment is also granted in the field of social security, concerning, inter alia , 
the calculation of periods of insurance, employment or residence for the purpose of pensions and 
annuities in respect of old age, death and invalidity, and for the purpose of medical care, as well as 
the transfer from one system to the other ( Article  21).  
                                                
29 Declaration by the [EU] on the Erasmus programme.  
30 Declaration by the Members Sates concerning the minutes of the negotiations.  
31 First indent of the Declaration by the [EU] on certain subjects with may be raised in the Cooperation 
Committee.  WT/REG280/1  
 
- 17 - 
 
  ANNEX 1 
INDICATOR S OF TRADE LIBERALIZ ATION UNDER THE AGRE EMENT  
European Union  
1. Table A1.1 shows tariff liberalization by the EU  in relation to imports from San Marino  (by 
total, agricultural and non -agricultural products). In 2002, when the Agreement entered into force , 
The EU's average applied MFN rate was 4.89% overall ( 9.13% for non -agricultural products and 
4.16% for agricultural products). 21.62% of the EU's  tariff was duty free on an MFN basis; 22.35 % 
of non -agricultural products and 18.8% of agricultural products were  duty free. At the time of 
entry i nto force of the Agreement (2002 ), San Marino's  exporters enjoyed a relative margin of 
preference of 4.87% vis-à-vis the prevailing MFN tariff; 4.13% for non -agricultural goods and 
100% for agricultural products. The share  of duty free lines applicable to imports from San Marino  
immediately at the entry into force of the Agreement was 97.64 % (100% for agricultural products 
and 97.04 % for non -agricultural products) . Table A1.1 below also shows the corresponding figures 
for 2016, using the HS 2012 classification nomenclature.  
Table A1.1 European Union: Indicators of MFN tariff rates and preferential rates for 
imports from San Marino  
Origin 
of goods  Year ALL PRODUCTS  Agricultural products a Non-agricultural 
products  
Average applied 
tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2002 4.89 6.37 21.62  9.13 12.60  18.80  4.16 5.35 22.35  
 2016 5.11 7.01 25.07  9.10 12.72  19.13  4.35 5.95 26.77  
San 
Marino*  2002 0.02 1.04 97.64  0.00 0.00 100.0  0.03 1.04 97.04  
 2016 0.002  2.06 99.93  0.00 0.00 100.0  0.00 2.06 99.90  
* Remaining dut iable tariff lines belong to the European Coal and Steel Community (ECSC) Treaty 
products where MFN is not duty -free. 
a WTO Definition.  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are inclu ded. 
 Based on the HS 20 02 and HS 2012 nomenclature  for 2002 and 2016 tariffs, respectively.  
Source:  WTO estimates based on data from EU authorities and WTO -TPR. 
 
San Marino  
2. As indicated above, the entirety of San Marino's imports originating in the EU have been  
duty free since the entry into force of the Interim Agree ment on Trade and Customs Union, which 
was implemented on 1 December 199 2, pending the entry into force on 1 April 2002 of the 
Cooperation and Customs Union Agreement  (the "Agreement").  
_____ ____