WORLD TRADE WT/REG53/1
10March 1998
ORGANIZATION(98-0934)
Original:English/French/Spanish Committee onRegional Trade Agreements
CUSTOMS UNION BETWEEN THE EUROPEAN COMMUNITY
AND THE PRINCIPALITY OFANDORRA
Thefollowing textreproduces theAgreement between theEuropean Economic Community
andthePrincipality ofAndorra.1
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Agreement between TheEuropean Economic Community
andThePrincipality ofAndorra
ThePrincipality ofAndorra,
and
TheEuropean Economic Community,
Desirous ofintroducing, inrespect oftheirtrade relations, arrangements totaketheplace of
national arrangements currently inforce andrespecting thespecific situation ofthePrincipality of
Andorra,
Considering that,owing togeographical, historical andsocial andeconomic factors, Andorra 's
exceptionalsituationjustifiesspecialarrangements,particularlyasregardsexemptionfromimportduties,
turnover taxandexcise duties collected ongoods imported bytravellers from Andorra intothe
Community,
Have agreed asfollows :
Article 1
Trade between theEuropean Economic Community, ontheonehand, andthePrincipality of
Andorra, ontheother, shallbegoverned bytheprovisions setoutbelow.
1TheAnnexes andProtocols thereto have been submitted totheSecretariat forconsultation byinterested
Members (Office No.3006).WT/REG53/1
Page2
TITLE I
Customs Union
Article 2
Acustoms union shallbeestablished between theEuropean Economic Community andAndorra
fortheproducts covered byChapters 25to97oftheHarmonized System inaccordance withthe
procedure andconditions setoutunder thisTitle.
Article 3
1. Theprovisions ofthisTitleshallapply to:
(a) goods produced intheCommunity orinthePrincipality ofAndorra, including those
obtained wholly orinpartfrom products which come from third countries andare
infreecirculation intheCommunity orinthePrincipality ofAndorra;
(b) goods which come fromthirdcountries andareinfreecirculation intheCommunity
orinthePrincipality ofAndorra.
2. Products coming from third countries shall beconsidered tobeinfreecirculation inthe
Community orinthePrincipality ofAndorra iftheimport formalities havebeencomplied withand
anycustoms duties orcharges having equivalent effect which arepayable havebeenlevied, andthere
hasbeennototalorpartial drawback ofsuchduties orcharges inrespect ofthesaidproducts.
Article 4
Theprovisions ofthisTitleshallalsoapply togoods obtained intheCommunity orinthe
Principality ofAndorra, inthemanufacture ofwhich wereusedproducts coming fromthirdcountries
andnotinfreecirculation either intheCommunity orinthePrincipality ofAndorra. These provisions
shall, however, apply tothose goods onlyiftheexporting Contracting Party levies thecustoms duties
laiddown intheCommunity forthirdcountry products usedintheirmanufacture.
Article 5
TheContracting Parties shallrefrain fromintroducing between themselves anynewcustoms
duties onimports orexports orcharges having equivalent effect, andfrom increasing those already
applied intheirtrade witheachother on1January 1989.
Article 6
1. CustomsdutiesonimportsandchargeshavingequivalenteffectinforcebetweentheCommunity
andthePrincipality ofAndorra shallbeabolished inaccordance withparagraphs 2and3.
2. On1January 1991, thePrincipality ofAndorra shallabolish customs duties andcharges having
equivalent effect onimports from theCommunity.
3. (a) From 1January 1991 theCommunity, withtheexception oftheKingdom ofSpain
andthePortuguese Republic, shallabolish customs duties andcharges having equivalent
effect onimports from thePrincipality ofAndorra.WT/REG53/1
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(b) From 1January 1991theKingdom ofSpain andthePortuguese Republic shallapply
thesamecustoms duties inrespect ofthePrincipality ofAndorra astheyapply inrespect
oftheCommunity asconstituted on31December 1985.
(c) Inthecaseofprocessed agricultural products covered byChapters 25to97ofthe
HarmonizedSystemandreferredtoinRegulation(EEC)No.3033/80,sub-paragraphs(a)
and(b)shallapply tocustoms duties constituting thefixed component ofthecharge
onimports ofthose products intotheCommunity from thePrincipality ofAndorra,
while thevariable component provided forintheRegulation shallcontinue toapply.
(d) Bywayofderogation from sub-paragraphs (a),(b)and(c),imports covered bythe
provisions relating totaxrelief fortravellers referred toinArticle 13shallbeexempt
from customs duties from 1January 1991.
Article 7
1. Forproducts covered bythecustoms union, thePrincipality ofAndorra shalladopt, witheffect
from 1January 1991:
- theprovisions onimport formalities applied bytheCommunity tothirdcountries,
- thelaws, regulations andadministrative provisions applicable tocustoms matters in
theCommunity andnecessary fortheproper functioning ofthecustoms union.
Theprovisions referred tointhefirstandsecond indents shallbethose currently applicable inthe
Community.
2. Theprovisions referred tointhesecond indent ofparagraph 1shallbedetermined bytheJoint
Committee provided forinArticle 17.
Article 8
1. (a) Over aperiod offiveyears, andbeyond thatperiod ifnoagreement canbereached
inaccordance with(b),thePrincipality ofAndorra shallauthorize theCommunity,
acting onbehalf ofandforthePrincipality ofAndorra, toenter goods sentfromthird
countries tothePrincipality ofAndorra forfreecirculation. Entry intofreecirculation
willbeeffected bytheCommunity customs offices listed inAnnex I.
(b) Attheendofthisperiod, andunder Article 20,thePrincipality ofAndorra mayexercise
rightofentryintofreecirculation foritsgoods, following agreement bytheContracting
Parties.
2. Where import duties arepayable ongoods pursuant toparagraph 1,theseduties shallbelevied
onbehalf ofthePrincipality ofAndorra. ThePrincipality ofAndorra shallundertake nottorefund
these sums directly orindirectly totheparties concerned.
3. TheJoint Committee provided forinArticle 17shalldetermine:
(a) possible changes ofthelistoftheCommunity customs offices competent toclearthe
goods referred toinparagraph 1andtheprocedure forforwarding thesaidgoods to
thePrincipality ofAndorra referred toinparagraph 1;WT/REG53/1
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(b) thearrangements forassigning totheAndorran Exchequer theamounts collected in
accordance withparagraph 2,andthepercentage tobededucted bytheCommunity
tocover administrative costsinaccordance withtherelevant regulations inforcewithin
theCommunity;
(c) anyother arrangements necessary fortheproper implementation ofthisArticle.
Article 9
Quantitativerestrictionsonimportsandexportsandallmeasureshavingequivalenteffectbetween
theCommunity andthePrincipality ofAndorra shallbeprohibited from 1January 1991.
Article 10
1. ShouldeitherContractingPartyconsiderthatdisparitiesarisingfromtheotherParty'sapplication,
inrespect ofimports fromthirdcountries, ofcustoms duties, quantitative restrictions oranymeasures
having equivalent effect, orofanyother measure ofcommercial policy, threaten todeflect trade or
tocause economic difficulties initsterritory, itmaybring thematter before theJointCommittee, which
shall, ifnecessary, recommend appropriate methods foravoiding anyharm liable toresult therefrom.
2. Where deflections occur oreconomic difficulties ariseandtheParty concerned considers that
theycallforimmediate action, thatParty mayitself takethenecessary surveillance orprotection
measures, notifying theJoint Committee without delay; theJoint Committee mayrecommend that
thesaidmeasures beamended orabolished.
3. Inthechoice ofsuchmeasures, preference shall begiven tothose which leastdisturb the
operation ofthecustoms union and,inparticular, thenormal development oftrade.
TITLE II
Arrangements forproducts notcovered bythecustoms union
Article 11
1. Products covered byChapters 1to24oftheHarmonized System which originate inthe
Principality ofAndorra shallbeexempt from import duties when imported intotheCommunity.
2. Rules oforigin andmethods ofadministrative cooperation aresetoutintheAppendix.
Article 12
1. ThearrangementsappliedtogoodsfromthirdcountriesimportedintothePrincipalityofAndorra
shallnotbemore favourable thanthose applied toimports ofCommunity goods.
2. Products covered byheadings No.24.02 and24.03 oftheHarmonized System which are
manufactured intheCommunity fromrawtobacco andwhich meettheconditions ofArticle 3(1)shall
beeligible, when imported intothePrincipality ofAndorra, forapreferential ratecorresponding to
60percentoftherateapplied inthePrincipality ofAndorra forthesame products vis-à-vis third
countries.WT/REG53/1
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TITLE III
Common Provisions
Article 13
1. Exemptions fromimport duties, turnover taxandexcise duties levied onimports bytravellers
between theContracting Parties andapplicable togoods contained inthepersonal luggage oftravellers
coming from oneoftheContracting Parties shallbethose currently applicable intheCommunity in
respect ofthirdcountries, provided imports ofthose goods arestrictly non-commercial.
2. With regard totheproducts covered byTitleIIofthisAgreement andlisted below, the
exemptions referred toinparagraph 1shallbegranted within thefollowing quantitative limits foreach
traveller entering theCommunity from thePrincipality ofAndorra:
milkpowder 2.5kilograms
condensed milk 3kilograms
fresh milk 6kilograms
butter 1kilograms
cheese 4kilograms
sugar andconfectionery 5kilograms
meat 5kilograms
3. Bywayofderogation from theprovisions ofparagraph 1andprovided thatthegoods have
beenacquired under thedomestic market conditions ofoneoftheContracting Parties andmeet the
above conditions:
- thetotalvalue oftheexemptions applicable togoods covered byTitleIshallbeset
perperson atthree times thevalue oftheexemption granted bytheCommunity to
travellers from thirdcountries,
- thefollowing quantitative limits shallapply tothegoods listed below:
(a) Tobacco products
cigarette 300items
or
cigarillos 150items
(cigars weighing nomore than3geach)
or
cigars 75items
or
smoking tobacco 400grams
(b) Alcohol andalcoholic beverages
distilled beverages andspirituous beverages having analcoholic
strength byvolume ofmore than22percentvol; undenatured
ethyl alcohol of80percentvol.ormore,1.5litres totalWT/REG53/1
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or
spirituous distilled beverages, aperitifs based onwine oralcohol,
taffia, sakeorsimilar beverages withanalcoholic strength by
volume notexceeding 22percentvol., sparkling wine, dessert
wine3litres total
and
stillwine 5litres total
(c) Perfume 75gram
and
toilet water 3/8litres
(d) Coffee 1,000 grams
or
extracts andessences ofcoffee 400grams
(e) Tea 200grams
or
extracts andessences oftea 80gram
4. Within thequantitative limits laiddown inthesecond indent ofparagraph 3,thevalue ofthe
goods listed therein shallnotbetaken intoconsideration fordetermining theexemptions referred to
inparagraph 1.
Article 14
TheContracting Parties shallrefrain fromanydomestic taxmeasure orpractice leading directly
orindirectly todiscrimination between theproducts ofoneContracting Party andsimilar products from
theother Contracting Party.
Products senttotheterritory ofoneoftheContracting Parties shallnotbeeligible forarefund
ofdomestic charges which ishigher thanthecharges which havebeenlevied directly orindirectly.
Article 15
1. Inaddition tothecooperation provided forinArticles 11(2) and17(8), theadministrative
authorities oftheContracting Parties responsible forimplementing theprovisions ofthisAgreement
shallassist eachother inother cases soastoensure compliance withtheprovisions.
2. Arrangements fortheapplication ofparagraph 1shallbedetermined bytheJointCommittee
referred toinArticle 17.
Article 16
TheAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security, theprotection of
health andlifeofhumans, animals orplants, theprotection ofnational treasures possessing artistic,
historic orarchaeological value, theprotection ofindustrial orcommercial property orcontrols relatingWT/REG53/1
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togoldandsilver. Suchprohibitions orrestrictions shallnot,however, constitute ameans ofarbitrary
discrimination oradisguised restriction ontrade between theContracting Parties.
Article 17
1. AJoint Committee shallbesetupwithresponsibility foradministering thisAgreement and
ensuring thatitisproperly implemented. Tothatend,itshallformulate recommendations. Itshall
takedecisions inthecases provided forintheAgreement. Thedecisions shallbeexecuted bythe
Contracting Parties inaccordance withtheirownregulations.
2. Withaviewtotheproper performance ofthisAgreement, theContracting Parties shallcarry
outexchanges ofinformation and,attherequest ofeither Party, shallconsult together intheJoint
Committee.
3. TheJoint Committee shalldraw upitsownrules ofprocedure.
4. TheJointCommittee shallbecomposed, ontheonehand, ofrepresentatives oftheCommunity
and,ontheother, ofrepresentatives ofthePrincipality ofAndorra.
5. TheJoint Committee shalltakedecisions bycommon accord.
6. TheJointCommittee shallbechaired byeachoftheContracting Parties inturninaccordance
withthearrangements tobelaiddown initsrules ofprocedure.
7. TheJointCommittee shallmeetattherequest ofeither oftheContracting Parties, tobelodged
atleastonemonth before thedateoftheintended meeting. Where theJointCommittee isconvened
under Article 10,itshallmeetwithin eightworking daysfromthedateonwhich therequest islodged.
8. Inaccordance withtheprocedure laiddown inparagraph 1,theJointCommittee shalldetermine
methods ofadministrative cooperation forthepurposes ofapplying Articles 3and4,taking asabasis
themethods adopted bytheCommunity inrespect oftrade between theMember States; itmayalso
amend provisions intheAppendix, referred toinArticle 11.
Article 18
1. Anydisputes arising between theContracting Parties overtheinterpretation oftheAgreement
shallbeputbefore theJoint Committee.
2. IftheJointCommittee doesnotsucceed insettling thedispute atitsnextmeeting, eachParty
maynotify theother ofthedesignation ofanarbitrator; theother Party shallthenberequired to
designate asecond arbitrator within twomonths.
3. TheJoint Committee shalldesignate athirdarbitrator.
4. Thearbitrator 'sdecisions shallbetaken byamajority vote.
5. Each Party involved inthedispute shallberequired totakethemeasures needed toensure
theapplication ofthearbitrator 'sdecision.WT/REG53/1
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Article 19
Intrade covered bythisAgreement:
- thearrangements applied bythePrincipality ofAndorra vis-à-vis theCommunity may
notgiverisetoanydiscrimination between theMember States, theirnationals ortheir
companies.
- thearrangements applied bytheCommunity vis-à-vis thePrincipality ofAndorra may
notgiverisetoanydiscrimination between Andorran nationals orcompanies.
TITLE IV
General andFinal Provisions
Article 20
ThisAgreement isconcluded foranunlimited duration. Within fiveyears ofitsentry into
force, thetwoParties shallbegin consultations toexamine theresults ofitsapplication and,ifnecessary,
toopennegotiations onitsamendment inthelightofthatexamination.
Article 21
Either Contracting Party maydenounce thisAgreement bynotifying theotherContracting Party
inwriting. Inthatcase, theAgreement shallcease tohaveeffect sixmonths afterthedateofsuch
notification.
Article 22
ThisAgreement shallapply, ontheonehand, totheterritories inwhich theTreaty Establishing
theEuropean Economic Community isapplied andunder theconditions laiddown inthatTreaty and,
ontheother, totheterritory ofthePrincipality ofAndorra.
Article 23
Annexes IandIIandtheAppendix tothisAgreement shallform anintegral partthereof.
Article 24
1. ThisAgreement shallenterintoforceon1July1990, oncondition thattheContracting Parties
havenotified eachother before thatdateofthecompletion oftheprocedures necessary tothateffect.
2. After thedateprovided forinparagraph 1,thisAgreement shallenter intoforce onthefirst
dayofthesecond month following notification.
3. Ifparagraph2applies,thedate1January1991containedinvariousprovisionsofthisAgreement
shallbereplaced bythedate1July1991.WT/REG53/1
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Article 25
TheprovisionsofthisAgreementshallreplacethoseappliedbytheCommunity,andinparticular
byFrance andSpain, prior totheAgreement 'sentry intoforce, under the1967 Exchange ofLetters
withthePrincipality ofAndorra.
Article 26
ThisAgreement isdrawn upintwooriginals intheDanish, Dutch, English, French, German,
Greek, Italian, Portuguese, Spanish andCatalan languages, eachtextbeing equally authentic.
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