# EUR-Lex - 52012PC0144 - EN

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# 52012PC0144

**Proposal for a COUNCIL DECISION on the conclusion of the Agreement between the European Union and Canada on customs cooperation with respect to matters related to supply chain security /* COM/2012/0144 final - 2012/0073 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           Context of the proposal

The customs relations between the EU and Canada
are based on the Agreement on customs cooperation and mutual assistance in
customs matters[1]
(CMAA) that entered into force on 1 January 1998.

In December 2005, the Canada Border Services
Agency (CBSA) signalled its interest to move forward with closer cooperation
between the EU and Canada on supply chain security. Following a series of
exchanges of views, an agreement was found between the Commission and the CBSA
on the possible scope of the new agreement expanding the EU-Canada customs
cooperation.

On 26 November 2009, the Council adopted a
decision authorising the Commission to open negotiations with Canada. The
negotiations were launched in May 2011.

The negotiations have resulted in the draft
Agreement between the European Union and Canada on customs cooperation with
respect to matters related to supply chain security (the draft Agreement) which
builds on and expands the CMAA. The draft Agreement
will establish a legal basis for EU-Canada customs cooperation on matters of
supply chain security and risk management, including reinforcing the
customs related aspects for securing the logistics chain of international trade
while at the same time facilitating legitimate trade; establishing minimum
standards, to the extent practicable, for risk management techniques and
related requirements and programmes; working towards and, where appropriate,
establishing mutual recognition of risk management techniques, risk standards,
security controls, container security and trade partnership programmes
including equivalent trade facilitation measures; exchanging information for supply
chain security and risk management subject to the confidentiality of
information and personal data protection requirements set out in Article 16 of
the CMAA and in the relevant legislation of the Contracting Parties; establishing
contact points for this purpose; introducing, where appropriate, an interface
for data exchange, including for pre-arrival or pre-departure data; developing
a strategy that allows the customs authorities to partner cooperatively in the
area of cargo inspection; collaborating, to the extent practicable, in any
multilateral fora where issues related to supply chain security may be
appropriately raised and discussed. The draft Agreement constitutes an
expansion of the CMAA in line with Article 23 of the CMAA, which sets down that
the Contracting Parties may expand the CMAA with a view to increasing the
levels of customs cooperation and supplementing them by means of agreements on
specific sectors or matters. The CMAA will remain the overall umbrella for
customs cooperation between the Contracting Parties and the institutional
set-up of the CMAA is proposed to be extended also to cover the draft
Agreement. In practice, the EU-Canada Joint Customs Cooperation Committee
(JCCC), established under Article 20 of the CMAA, will administer both
agreements and will be empowered to adopt the necessary implementing decisions
in accordance with the respective domestic legislation of the Contracting Parties[2], e.g. on mutual recognition of
risk management techniques, risk standards, security controls and trade
partnership programmes.

2.           Results of consultations
with the interested parties and impact assessments

Member States were consulted in the framework
of the Council Working Party on Customs Union.

There is no need for an impact assessment.

3.           Legal elements of the
proposal

The Council is asked to adopt a decision on the
conclusion of the draft Agreement based on Article 207(4) first subparagraph,
in conjuncture with Article 218(6)(a) of the Treaty on the Functioning of the
European Union.

The proposal falls under the common commercial
policy, exclusive competence of the Union. The subsidiarity principle therefore
does not apply.

4.           Budgetary implications

The proposal has no budgetary implications for
the Union budget.

5.           Other

The draft Agreement is consistent with the
objectives and actions identified by the Commission for the implementation of
the EU Internal Security Strategy.[3]

A proposal for a Council decision on the signing,
on behalf of the Union, of the draft Agreement is submitted in parallel to this
proposal for a Council decision on the conclusion of the draft Agreement.

2012/0073 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the Agreement between
the European Union and Canada on customs cooperation with respect to matters
related to supply chain security

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207(4) first
subparagraph, in conjunction with Article 218(6)(a) thereof,

Having regard to the proposal from the
European Commission,

Having regard to the consent of the
European Parliament,

Whereas:

(1)       The European Union and
Canada should expand their customs cooperation to cover matters of supply chain
security and related risk management with a view to increasing end-to-end
supply chain security and at the same time facilitating legitimate trade.

(2)       In accordance with Council
Decision [.../...] of [...][4],
the Agreement between the European Union and Canada on customs cooperation with
respect to matters related to supply chain security was signed on [ ], subject
to its conclusion at a later date.

(3)       The agreement should be
approved on behalf of the European Union,

HAS ADOPTED THIS DECISION:

Article 1

The Agreement between the European Union and
Canada on customs cooperation with respect to matters related to supply chain
security is hereby approved on behalf of the Union.

The text of the Agreement is attached to
this Decision.

Article 2

The President of the Council shall
designate the person empowered to proceed, on behalf of the European Union, to
the notification provided for in Article 9 of the Agreement, in order to
express the consent of the European Union to be bound by the Agreement.

Article 3

This
Decision shall enter into force on [ ....] [5].

Done at Brussels,

For
the Council

The
President

ANNEX

DRAFT

Agreement between the European Union and Canada on customs
cooperation with respect to matters related to supply-chain security

THE EUROPEAN UNION and CANADA, ("the
Contracting Parties"),

Recognizing the need to increase end-to-end
supply chain security for Canada and the European Union and at the same time
facilitate legitimate trade;

Acknowledging the long-standing, close and
productive relations between the Customs Authorities of Canada and of the
European Union;

Recognizing that these relations can be
improved by closer cooperation on container security and other matters related
to supply-chain security based, to the greatest extent practicable, on mutual
recognition of risk management techniques, risk standards, security controls
and trade partnership programmes;

Aiming to provide a framework to explore
future cooperative means to enhance supply chain security practices that would
increase customs related efficiencies to ensure end-to-end supply chain
security and to facilitate legitimate trade for the benefit of their respective
trade communities;

Aiming to develop a strategy that allows
Canada and the European Union to cooperate in the area of cargo inspection;

Building upon the core elements of the
World Customs Organization's SAFE Framework of Standards to Secure and Facilitate
Global Trade;

Referring to the Agreement between Canada
and the European Community on Customs Cooperation and Mutual Assistance in
Customs Matters, which entered into force on 01 January 1998 ("the
CMAA"), and desiring to expand the scope of that Agreement by means of an
agreement on a specific matter, in accordance with Article 23 of the CMAA;

Acknowledging that a Joint Customs
Cooperation Committee (JCCC) was established under Article 20 of the CMAA to
see to the proper functioning of the CMAA and, inter alia, take the measures
necessary for customs cooperation in accordance with the objectives of the CMAA
and for the expansion of the CMAA with a view to increasing the level of
customs cooperation and supplementing it on specific sectors or matters;

HAVE AGREED ON THE FOLLOWING:

Article 1

For the purpose of this Agreement, "Customs
Authority" means:

- in the European Union: the competent
services of the European Commission and the customs authorities of the Member
States of the European Union;

- in Canada: the governmental
administration designated by Canada as responsible for administering its
customs laws.

Article 2

The Contracting Parties shall cooperate on
matters of supply-chain security and related risk management.

Article 3

The Contracting Parties shall manage this
cooperation through their respective Customs Authorities.

Article 4

The Contracting Parties shall cooperate by:

(a)
reinforcing the customs-related aspects of securing
the logistics chain of international trade while at the same time facilitating
legitimate trade;

(b)
establishing minimum standards, to the extent
practicable, for risk management techniques and related requirements and
programmes;

(c)
working towards and, where appropriate,
establishing mutual recognition of risk management techniques, risk standards,
security controls, container security and trade partnership programmes
including equivalent trade facilitation measures;

(d)
exchanging information for supply-chain security
and risk management; any exchange of information under this Agreement shall be
subject to the confidentiality of information and personal data protection
requirements set out in Article 16 of the CMAA as well as any confidentiality
and privacy requirements set out in the legislation of the Contracting Parties;

(e)
establishing contact points for exchanging
information for supply-chain security;

(f)
introducing, where appropriate, an interface for
data exchange, including for pre-arrival or pre-departure data;

(g)
developing a strategy that allows the customs
authorities to cooperate in the area of cargo inspection;

(h)
collaborating, to the extent practicable, in any
multilateral fora where issues related to supply chain security may be
appropriately raised and discussed.

Article 5

The JCCC,
established under Article 20 of the CMAA, shall see to the proper functioning
of this Agreement and shall examine all issues arising from its application. It
shall be empowered to adopt decisions to implement this Agreement in accordance
with the respective domestic legislation of the Contracting Parties, on
aspects, such as data transmission and mutually agreed benefits, of: mutual
recognition of risk management techniques, risk standards, security controls
and trade partnership programmes.

Article 6

The JCCC shall
set up the appropriate working mechanisms, including working groups, to support
its work to implement this Agreement and to address in particular the following
aspects:

a)         identifying any regulatory or
legislative changes required to implement this Agreement;

b)         identifying and establishing
measures to enhance information exchange mechanisms;

c)         identifying and establishing
best practices, including best practices for the harmonisation of advance
electronic cargo information requirements with international standards on
inbound, outbound and transit shipments;

d)         defining and establishing risk
analysis standards for the information required to identify high-risk shipments
imported into, transhipped through, or transiting Canada and the European
Union;

e)         defining and establishing measures
to harmonize risk assessment standards;

f)          defining minimum control
standards and methods by which those standards may be met;

g)         improving and establishing
standards for trade partnership programmes designed to improve supply-chain
security and facilitate the movement of legitimate trade;

h)         defining and carrying out
concrete steps to establish mutual recognition of risk management techniques,
risk standards, security controls and trade partnership programmes including
equivalent trade facilitation measures.

Article 7

1. If difficulties or disputes arise
between the Contracting Parties regarding the implementation of this Agreement,
the Customs Authorities of the Contracting Parties shall endeavour to resolve
the matter through consultation and discussion.

2. The Contracting Parties may also consent
to other forms of dispute resolution.

Article 8

1. This Agreement may be amended by
agreement in writing of the Contracting Parties.

2. An amendment shall enter into force 90
days after the date on which the second notification is sent, through an
exchange of notes through diplomatic channels, indicating that the Contracting
Parties have completed their respective internal procedures required for its
entry into force.

Article 9

This Agreement shall enter into force on
the first day of the month following the date on which the Contracting Parties
have notified each other of the completion of the procedures necessary to bring
the Agreement into force.

Article 10

1. This Agreement shall remain in force for
an unlimited period of time.

2. Either Contracting Party may terminate
this Agreement by serving a notice of termination through diplomatic channels
on the other Contracting Party.

3. This termination shall become effective
on the first day of the month following the expiration of a period of six
months after the date of receipt of notice of termination by the other
Contracting Party.

4. If this Agreement is terminated, any decisions
of the JCCC will remain in effect, unless the Contracting Parties decide
otherwise.

In Witness whereof, the undersigned, being
duly authorized, have signed this Agreement.

Done at , in two original copies, this day
of 201­ , in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish,
French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese,
Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish languages,
each version being equally authentic.

FOR THE EUROPEAN UNION        FOR CANADA

[1]               OJ L 7 of 13.01.98, p. 38

[2]               The EU position for legally binding JCCC decisions
is established by the Council acting on a proposal from the Commission.

[3]               See in particular Objective 4, Action 3 (Common risk
management for movement of goods across external borders) of the Communication
from the Commission to the European Parliament and the Council – The EU
Internal Security Strategy in Action: Five steps towards a more secure Europe;
COM(2010)673 final.

[4]               OJ L , , p. .

[5]               The date of entry into force of the Agreement will be
published in the Official Journal of the European Union by the General
Secretariat of the Council.