# EUR-Lex - 52014PC0728 - EN

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# 52014PC0728

**Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in the EEA Joint Committee concerning an amendment to Protocol 4 of the EEA Agreement on rules of origin (Croatia Enlargement) /* COM/2014/0728 final - 2014/0349 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

In order to ensure the requisite legal
security and homogeneity of the Internal Market, the EEA Joint Committee is to
integrate all the relevant EU legislation into the EEA Agreement as soon as
possible after its adoption.

In this context, it is needed to amend
Protocol 4 to the EEA Agreement on rules of origin

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

The draft Decision of the EEA Joint
Committee (annexed to the proposed Council Decision) aims to amend Protocol 4
to the EEA Agreement on rules of origin in order to reflect that the Republic of Croatia became a party to the EEA Agreement. The EEA Enlargement Agreement was
signed on 11 April 2014 and has been applicable on a provisional basis since 12
April 2014.

Certain transitional arrangements
concerning the application of the rules of origin after the provisional
application of the EEA Enlargement Agreement need to be reflected in the EEA
Agreement.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Article 1(3) of Council Regulation (EC) No
2894/94 concerning arrangements for implementing the EEA Agreement provides
that the Council establishes the position to be adopted on the Union’s behalf on such Decisions, on a proposal from the Commission.

The Commission submits the Draft Decision
of the EEA Joint Committee for adoption by the Council as the Union’s position.
The Commission would hope to be able to present it in the EEA Joint Committee
at the earliest possible opportunity.

2014/0349 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be adopted, on behalf
of the European Union,
in the EEA Joint Committee concerning an amendment to Protocol 4 of the EEA
Agreement on rules of origin
(Croatia Enlargement)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207 in conjunction with Article 218(9) thereof,

Having regard to Council Regulation (EC) No
2894/94 of 28 November 1994 concerning arrangements for implementing the
Agreement on the European Economic Area[1],
and in particular Article 1(3) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       The Agreement on the
European Economic Area[2]
('the EEA Agreement') entered into force on 1 January 1994.

(2)       Pursuant to Article 98 of
the EEA Agreement, the EEA Joint Committee may decide to amend, inter alia, Protocol
4 to the EEA Agreement ('Protocol 4').

(3)       Protocol 4 contains
provisions and arrangements concerning rules of origin.

(4)       Certain transitional
arrangements concerning the application of the rules of origin after the
provisional application of the EEA Enlargement Agreement need to be reflected
in the EEA Agreement.

(5)       Protocol 4 should
therefore be amended.

(6)       The position of the Union within the EEA Joint Committee should be based on the attached draft Decision.

HAS ADOPTED THIS DECISION:

Article 1

The position to be adopted, on behalf of
the European Union, within the EEA Joint Committee on the proposed amendment to
Protocol 4 to the EEA Agreement, on rules of origin, shall be based on the
draft Decision of the EEA Joint Committee attached to this Decision.

Article 2

This Decision shall enter into force on the
date of its adoption.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 305, 30.11.1994, p. 6.

[2]               OJ L 1, 3.1.1994, p. 3.

ANNEX
DECISION OF THE EEA JOINT COMMITTEE
No .../2014
amending Protocol 4 (rules of origin) to the EEA Agreement

THE EEA JOINT COMMITTEE,

Having regard to the Agreement on the
European Economic Area (“the EEA Agreement”), and in particular Article 98
thereof,

Whereas:

(1) 
Protocol 4 to the EEA Agreement concerns the
rules of origin.

(2) 
The Republic of Croatia acceded to the European
Union on 1 July 2013.

(3) 
Following successful conclusion of the European
Union enlargement negotiations, the Republic of Croatia submitted an
application to become party to the EEA Agreement.

(4) 
The Agreement on the participation of the Republic of Croatia in the European Economic Area (“EEA Enlargement Agreement”) was
initialled on 20 December 2013.

(5) 
The EEA Enlargement Agreement was signed on 11
April 2014 and has been applicable on a provisional basis since 12 April 2014.

(6) 
Certain transitional arrangements concerning the
application of the rules of origin after the provisional application of the EEA
Enlargement Agreement need to be reflected in the EEA Agreement,

HAS ADOPTED THIS DECISION:

Article 1

Protocol 4 to the EEA
Agreement is amended as set out in the Annex to this Decision.

Article 2

This Decision shall enter into force on [...],
provided that all the notifications under Article 103(1) of the EEA Agreement
have been made to the EEA Joint Committee[1].

It shall apply from 1 July 2013.

Article 3

This Decision shall be published in the EEA
Section of, and in the EEA Supplement to, the Official Journal of the
European Union.

Done at Brussels, [...].

For the EEA Joint Committee

The President
[...]

The Secretaries
to the EEA Joint Committee
[...]

ANNEX

to
Decision of the EEA Joint Committee
No [...]

In
Protocol 4 to the EEA Agreement, the following is added after Article 40:

‘Article 41

Transitional arrangements regarding the
accession of the Republic of Croatia to the European Union

1.         Proof of origin properly issued
by an EFTA State or the Republic of Croatia or made out in the framework of a
preferential agreement applied between the EFTA States and the Republic of
Croatia shall be considered being proof of EEA preferential origin, provided
that:

(a)        the proof of origin and the
transport documents were issued or made out no later than the day before the
date of accession of the Republic of Croatia to the European Union; and

(b)        the proof of origin is submitted
to the customs authorities within the period of four months from the date of
accession of the Republic of Croatia to the European Union.

Where goods were declared for importation
from an EFTA State or the Republic of Croatia in, respectively, the Republic of
Croatia or an EFTA State prior to the date of accession of the Republic of
Croatia to the European Union, under preferential agreements applied between an
EFTA State and the Republic of Croatia at that time, proof of origin issued
retrospectively under those agreements may also be accepted in the EFTA States
or the Republic of Croatia provided that it is submitted to the customs
authorities within the period of four months from the date of accession of the
Republic of Croatia to the European Union.

2.         The EFTA States, on the one
hand, and the Republic of Croatia, on the other hand, are authorised to retain
the authorisations with which the status of ‘approved exporters’ has been granted
in the framework of agreements concluded between the EFTA States, on the one
hand, and the Republic of Croatia, on the other hand, provided that the
approved exporters apply the rules of origin of this Protocol.

The EFTA States, on the one hand, and Croatia, on the other, shall, no later than one year after the date of accession of the Republic of Croatia to the European Union, consider the necessity of replacing such
authorisations by new authorisations issued in accordance with this Protocol.

3.         Requests for subsequent
verification of proof of origin issued or made out under the preferential
agreements referred to in paragraphs 1 and 2 shall be accepted by the competent
customs authorities of the EFTA States and the Republic of Croatia for a period
of three years after the issue or making out of the proof of origin concerned
and may be made by those authorities for a period of three years after
acceptance of the proof of origin submitted
to those authorities in support of an import declaration.

4.         The provisions of the Agreement may be applied
to goods exported from either the Republic of Croatia to the EFTA States or from the EFTA States to
the Republic of Croatia, which comply with the provisions of this Protocol and that on the date of accession of the Republic of Croatia to the
European Union are either in transit or in temporary storage in a customs
warehouse or in a free zone in an
EFTA State or in the Republic of Croatia.

5.         Preferential treatment may be granted in cases as
referred to in paragraph 4, subject to the submission to the customs
authorities of the importing country, within four months from the date of accession of the Republic of Croatia to
the European Union, of a proof of origin issued retrospectively by the customs authorities of the exporting country.’

___________________

[1]               [No constitutional requirements indicated.]
[Constitutional requirements indicated.]