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I Acts whose publication is obligatory

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COUNCIL REGULATION (EC) No 2222/2004

of 19 November 2004

on administering imports of certain steel products from Ukraine

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Scope

1.   This Regulation applies to imports of steel products listed in Annex I, originating in Ukraine.

2.   The steel products shall be classified in product groups as set out in Annex I.

3.   The classification of products listed in Annex I shall be based on the combined nomenclature (CN) established by Council Regulation (EEC) No 2658/87 (4). The procedures for the application of this paragraph are laid down in Chapter II section 1.

4.   The origin of the products referred to in paragraph 1 shall be determined in accordance with the rules in force in the Community.

5.   The procedures for verification of the origin of the products referred to in paragraph 1 are laid down in Chapters II and III.

Article 2

Quantitative limits

1.   The importation into the Community of the steel products listed in Annex I originating in Ukraine shall be subject to the annual quantitative limits laid down in Annex V. The release for free circulation in the Community of the products listed in Annex I originating in Ukraine shall be subject to the presentation of an import authorisation issued by the Member States' authorities in accordance with the provisions of Article 4.

The authorised imports shall be counted against the quantitative limits laid down for the year in which the products are shipped in the exporting country.

2.   In order to ensure that quantities for which import authorisations are issued do not at any time exceed the total quantitative limits for each product group, the competent authorities shall issue import authorisations only upon confirmation by the Commission that there are still quantities available within the quantitative limits for the relevant product group of steel products in respect of the supplier country, for which an importer or importers have submitted applications to the said authorities.

3.   Imports of products as from 1 January 2004 for which a licence was required pursuant to Council Decision 2003/893/EC shall be counted against the relevant limits for 2004 laid down in Annex V.

4.   For the purposes of this Regulation and as from the date of its application, shipment of products shall be considered as having taken place on the date on which they were loaded onto the exporting means of transport.

Article 3

Suspensive arrangements

1.   The quantitative limits referred to in Annex V shall not apply to products placed in a free zone or free warehouse or imported under the arrangements governing customs warehouses, temporary importation or inward processing (suspension system).

2.   Where the products referred to in paragraph 1 are subsequently released for free circulation, either in the unaltered state or after working or processing, Article 2(2) shall apply and the products so released shall be counted against the relevant quantitative limit set out in Annex V.

Article 4

Specific rules for the administration of Community quantitative limits

1.   For the purpose of applying Article 2(2), before issuing import authorisations, the competent authorities of the Member States shall notify the Commission of the amounts of the requests for import authorisations, supported by original export licences, which they have received. By return, the Commission shall notify its confirmation that the requested amount(s) of quantities are available for importation in the chronological order in which the notifications of the Member States have been received (‘first come, first served basis’).

2.   The requests included in the notifications to the Commission shall be valid if they establish clearly in each case the exporting country, the product group concerned, the amounts to be imported, the number of the export licence, the quota year and the Member State in which the products are intended to be put into free circulation.

3.   As far as possible, the Commission shall confirm to the authorities the full amount indicated in the requests notified for each product group of products. Moreover, the Commission shall contact the Ukrainian authorities immediately in cases where requests notified exceed the limits in order to seek clarification and a rapid solution.

4.   The competent authorities shall notify the Commission immediately after being informed of any quantity that is not used during the duration of validity of the import authorisation. Such unused quantities shall automatically be transferred into the remaining quantities of the total Community quantitative limit for each product group.

5.   The notifications referred to in paragraphs 1 to 4 above shall be communicated electronically within the integrated network set up for this purpose, unless for imperative technical reasons it is necessary to use other means of communication temporarily.

6.   The import authorisations or equivalent documents shall be issued in accordance with Chapter II.

7.   The competent authorities of the Member States shall notify the Commission of any cancellation of import authorisations or equivalent documents already issued in cases where the corresponding export licences have been withdrawn or cancelled by the competent Ukrainian authorities. However, if the Commission or the competent authorities of a Member State have been informed by the competent Ukrainian authorities of the withdrawal or cancellation of an export licence after the related products have been imported into the Community, the quantities in question shall be set off against the quantitative limit for the year during which shipment of products took place.

Article 5

Statistics

1.   Member States shall notify the Commission monthly, within one month of the end of each month, of the total quantities of the steel products listed in Annex I that have entered into free circulation during that month, indicating the combined nomenclature code and using the statistical units and, where appropriate, supplementary units used in that code. Imports shall be broken down in accordance with the statistical procedures in force.

2.   In order to enable market trends in the products covered by this Regulation to be monitored, Member States shall communicate to the Commission, before 31 March of each year, statistical data on the imports of the preceding year.

Article 6

Circumvention

1.   Where, following the enquiries carried out in accordance with the procedures set out in Chapter III, the Commission notes that the information in its possession constitutes proof that products listed in Annex I originating in Ukraine have been transhipped, rerouted or otherwise imported into the Community in circumvention of the quantitative limits referred to in Article 2 and that there is a need for the necessary adjustments to be made, it shall request that consultations be opened so that agreement may be reached on an equivalent adjustment of the corresponding quantitative limits.

2.   Pending the outcome of the consultations referred to in paragraph 1, the Commission may ask Ukraine to take the necessary precautionary steps to ensure that adjustments to the quantitative limits agreed following such consultations may be carried out for the year in which the request for consultations was lodged or for the following year, if the quantitative limits for the current year are exhausted, where there is clear evidence of circumvention.

3.   If the Community and Ukraine fail to arrive at a satisfactory solution and if the Commission notes that there is clear evidence of circumvention, it shall deduct from the quantitative limits an equivalent volume of products originating in Ukraine.

Article 7

This Regulation shall not constitute in any way a derogation from the provisions of the bilateral Agreement on trade in certain steel products (5) which the Community has concluded with Ukraine and which, in all cases of conflict, shall prevail.

CHAPTER II

MODALITIES APPLICABLE TO THE MANAGEMENT OF THE QUANTITATIVE-LIMITS

SECTION 1

Classification

Article 8

The classification of the steel products covered by this Regulation shall be based on the combined nomenclature (CN).

Article 9

On the initiative of the Commission or of a Member State, the tariff and statistical nomenclature section of the Customs Code Committee, which was established by Council Regulation (EEC) No 2658/87 shall examine urgently, in accordance with the provisions of the aforementioned Regulation, all questions concerning the classification of products covered by this Regulation within the combined nomenclature in order to classify them in the appropriate product groups.

Article 10

The Commission shall inform Ukraine of any changes in the combined nomenclature (CN) affecting products covered by this Regulation on their adoption by the competent authorities of the Community.

Article 11

The Commission shall inform the competent Ukrainian authorities of any decisions adopted in accordance with the procedures in force in the Community relating to classification of products covered by this Regulation, within one month at the latest of their adoption. Such communication shall include:

Article 12

1.   Where a classification decision adopted in accordance with Community procedures in force results in a change of classification practice or a change in the product group of any product covered by this Regulation, the competent authorities of the Member States shall provide 30 days' notice, from the date of the Commission's notification, before the decision is put into effect.

2.   Products shipped before the date of application of the decision shall remain subject to earlier classification practice, provided that the goods in question are entered to importation within 60 days of that date.

Article 13

Where a classification decision adopted in accordance with the Community procedures in force referred to in Article 12 involves a product group subject to a quantitative limit, the Commission shall, where necessary, initiate consultations without delay in accordance with Article 9, in order to reach agreement on any necessary adjustments to the corresponding quantitative limits provided for in Annex V.

Article 14

1.   Without prejudice to any other provision on this subject, where the classification indicated in the documentation necessary for importation of the products covered by this Regulation differs from the classification determined by the competent authorities of the Member State into which they are to be imported, the goods in question shall be provisionally subject to the import arrangements which, in accordance with the provisions of this Regulation, are applicable to them on the basis of the classification determined by the aforementioned authorities.

2.   The competent authorities of the Member States shall inform the Commission of the cases referred to in paragraph 1, indicating in particular:

3.   The competent authorities of the Member States shall not issue a new import authorization for steel products subject to a Community quantitative limit laid down in Annex V following re-classification until they have obtained confirmation from the Commission that the amounts to be imported are available in accordance with the procedure laid down in Article 4.

4.   The Commission shall notify the exporting countries concerned of the cases referred to in this Article.

Article 15

In the cases referred to in Article 14, as well as in those cases of a similar nature raised by the competent Ukrainian authorities, the Commission, if necessary, shall enter into consultations with Ukraine, in order to reach agreement on the classification definitively applicable to the products involved in the divergence.

Article 16

The Commission, in agreement with the competent authorities of the importing Member State or States and of Ukraine, may, in the cases referred to in Article 15, determine the classification definitively applicable to the products involved in the divergence.

Article 17

When a case of divergence referred to in Article 14 cannot be resolved in accordance with Article 15, the Commission shall adopt, in accordance with the provisions of Article 10 of Regulation (EEC) No 2658/87, a measure establishing the classification of the goods in the Combined Nomenclature.

SECTION 2

Double-checking system

(for administering quantitative limits)

Article 18

1.   The competent Ukrainian authorities shall issue an export licence in respect of all consignments of steel products subject to the quantitative limits laid down in Annex V up to the level of the said limits.

2.   The original of the export licence shall be presented by the importer for the purposes of the issue of the import authorisation referred to in Article 21.

Article 19

1.   The export licence for quantitative limits shall conform to the specimen set out in Annex II and shall certify, inter alia, that the quantity of goods in question has been set off against the quantitative limit established for the product group concerned.

2.   Each export licence shall cover only one of the product groups listed in Annex I.

Article 20

Exports shall be set off against the quantitative limits established for the year in which the products covered by the export licence have been shipped within the meaning of Article 2(4).

Article 21

1.   To the extent that the Commission has confirmed, pursuant to Article 4, that the amount requested is available within the quantitative limit in question, the competent authorities of the Member States shall issue an import authorisation within a maximum of five working days of the presentation by the importer of the original of the corresponding export licence. This presentation must be effected not later than 31 March of the year following that in which the goods covered by the licence were shipped. Import authorisations shall be issued by the competent authorities of any Member State, irrespective of the Member State indicated on the export licence, to the extent that the Commission, pursuant to Article 4, has confirmed that the amount requested is available within the quantitative limit in question.

2.   The import authorisations shall be valid for four months from the date of their issue. Upon duly motivated request by an importer, the competent authorities of a Member State may extend the duration of validity for a further period not exceeding four months.

3.   Import authorisations shall be drawn up in the form set out in Annex III and shall be valid throughout the customs territory of the Community.

4.   The declaration or request made by the importer in order to obtain the import authorisation shall contain:

5.   Importers shall not be obliged to import the total quantity covered by an import authorisation in a single consignment.

Article 22

The validity of import authorisations issued by the authorities of the Member States shall be subject to the validity of export licences and the quantities indicated in the export licences issued by the competent Ukrainian authorities on the basis of which the import authorisations have been issued.

Article 23

Import authorisations or equivalent documents shall be issued by the competent authorities of the Member States in conformity with Article 2(2) and without discrimination to any importer in the Community wherever the place of his establishment may be in the Community, without prejudice to compliance with other conditions required under current rules.

Article 24

1.   If the Commission finds that the total quantities covered by export licences issued by Ukraine for a particular product group in any agreement year exceed the quantitative limit established for that product group, the competent licence authorities in the Member States shall be informed immediately in order that they may suspend the further issue of import authorisations. In this event, consultations shall be initiated forthwith by the Commission.

2.   The competent authorities of a Member State shall refuse to issue import authorisations for products originating in Ukraine which are not covered by export licenses issued in accordance with the provisions of this chapter.

SECTION 3

Common provisions

Article 25

1.   The export licence referred to in Article 18 and the certificate of origin referred to in Annex II may include additional copies duly indicated as such. They shall be drawn up in English.

2.   If the documents referred to above are completed by hand, entries must be in ink and in block letters.

3.   The export licences or equivalent documents and certificates of origin shall measure 210 × 297 mm. The paper shall be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m2. Each part shall have a printed guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

4.   Only the original shall be accepted by the competent authorities in the Community as being valid for import purposes in accordance with the provisions of this Regulation.

5.   Each export licence or equivalent document and the certificate of origin shall bear a standardized serial number, whether or not printed, by which it can be identified.

6.   This number shall be composed of the following elements:

Article 26

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear the endorsement ‘issued retrospectively’.

Article 27

In the event of the theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate licence or certificate issued in this way shall bear the endorsement ‘duplicate’.

The duplicate shall bear the date of the original licence or certificate.

SECTION 4

Community import licence — Common form

Article 28

1.   The forms to be used by the competent authorities of the Member States for issuing the import authorisations referred to in Article 21 shall conform to the specimen of the import licence set out in Annex III.

2.   Import licence forms and extracts thereof shall be drawn up in duplicate, one copy, marked ‘Holder's copy’ and bearing the number 1 to be issued to the applicant, and the other, marked ‘Copy for the issuing authority’ and bearing the number 2, to be kept by the authority issuing the licence. For administrative purposes the competent authorities may add additional copies to form 2.

3.   Forms shall be printed on white paper free of mechanical pulp, dressed for writing and weighing between 55 and 65 g/m2. Their size shall be 210 × 297 mm; the type space between the lines shall be 4,24 mm (one sixth of an inch); the layout of the forms shall be followed precisely. Both sides of copy No 1, which is the licence itself, shall in addition have a red printed guilloche pattern background so as to reveal any falsification by mechanical or chemical means.

4.   Member States shall be responsible for having the forms printed. The forms may also be printed by printers appointed by the Member State in which they are established. In the latter case, reference to the appointment by the Member State must appear on each form. Each form shall bear an identification of the printer's name and address or a mark enabling the printer to be identified.

5.   At the time of their issue the import licences or extracts shall be given an issue number determined by the competent authorities of the Member State. The import licence number shall be notified to the Commission electronically within the integrated network set up under Article 4.

6.   Licences and extracts shall be completed in the official language, or one of the official languages, of the Member State of issue.

7.   In box 10 the competent authorities shall indicate the appropriate steel product group.

8.   The marks of the issuing agencies and debiting authorities shall be applied by means of a stamp. However, an embossing press combined with letters or figures obtained by means of perforation, or printing on the licence may be substituted for the issuing authority's stamp. The issuing authorities shall use any tamper-proof method to record the quantity allocated in such a way as to make it impossible to insert figures or references.

9.   The reverse of copy No 1 and copy No 2 shall bear a box in which quantities may be entered, either by the customs authorities when import formalities are completed, or by the competent administrative authorities when an extract is issued. If the space set aside for debits on a licence or extract thereof is insufficient, the competent authorities may attach one or more extension pages bearing boxes matching those on the reverse of copy No 1 and copy No 2 of the licence or extract. The debiting authorities shall so place their stamp that one half is on the licence or extract thereof and the other half is on the extension page. If there is more than one extension page, a further stamp shall be placed in like manner across each page and the preceding page.

10.   Import licences and extracts issued, and entries and endorsements made, by the authorities of one Member State shall have the same legal effect in each of the other Member States as documents issued, and entries and endorsements made, by the authorities of such Member States.

11.   The competent authorities of the Member States concerned may, where indispensable, require the contents of licences or extracts to be translated into the official language or one or the official languages of that Member State.

CHAPTER III

ADMINISTRATIVE COOPERATION

Article 29

The Commission shall supply the Member States' authorities with the names and addresses of authorities in Ukraine competent to issue certificates of origin and export licences together with specimens of the stamps used by these authorities.

Article 30

For the steel products subject to a double-checking system Member States shall notify the Commission within the first ten days of each month of the total quantities, in the appropriate units and by country of origin and group of products, for which import authorisations have been issued during the preceding month.

Article 31

1.   Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent authorities of the Community have reasonable doubt as to the authenticity of the certificate of origin or export licence or as to the accuracy of the information regarding the true origin of the products in question.

In such cases the competent authorities of the Community shall return the certificate of origin or the export licence or a copy thereof to the competent Ukrainian governmental authority, giving, where appropriate, the reasons of form or substance for an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate of origin or export licence or copy thereof. The competent authorities shall also forward any information that has been offered suggesting that the particulars given on the said certificate or the said licence are inaccurate.

2.   The provisions of paragraph 1 shall also apply to subsequent verifications of declarations of origin.

3.   The results of the subsequent verifications carried out in accordance with paragraph 1 shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate, licence or declaration applies to the goods actually exported and whether the goods are eligible for export to the Community under this chapter. The competent authorities of the Community may also request copies of all documentation necessary to determine the facts fully, including, in particular, the origin of the goods.

4.   Should such verifications reveal abuse or major irregularities in the use of declarations of origin, the Member State concerned shall inform the Commission of this fact. The Commission shall pass the information on to the other Member States. The Community may decide that imports of the products in question to the Community shall be accompanied by a certificate of Ukrainian origin referred to in Article 25(1).

5.   Random recourse to the procedure specified in this Article shall not constitute an obstacle to the release for free circulation of the products in question.

Article 32

1.   Where the verification procedure referred to in Article 31 or where information available to the competent authorities of the Community indicates that the provisions of this chapter are being contravened, the said authorities shall request Ukraine to carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or appear to be in contravention of the provisions of this chapter. The results of these enquiries shall be communicated to the competent authorities of the Community together with any other pertinent information enabling the true origin of the goods to be determined.

2.   In pursuance of the action taken under the terms of this chapter, the competent authorities of the Community may exchange any information with the competent governmental authorities of the Republic of Ukraine which is considered to be of use in preventing the contravention of the provisions of this chapter.

3.   Where it is established that the provisions of this chapter have been contravened, the Commission may take such measures as are necessary to prevent recurrence of such contravention.

Article 33

The Commission shall coordinate the action undertaken by the competent authorities of the Member States under the provisions of this chapter. The competent authorities of the Member States shall inform the Commission and the other Member States of action which they have undertaken and the results obtained.

CHAPTER IV

FINAL PROVISIONS

Article 34

Repeal

Council Decision 2003/893/EC is hereby repealed.

Article 35

Entry into force

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 November 2004.

For the Council

President

J. P. H. DONNER

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(1)OJ L 49, 19.2.1998, p. 3.

(2)  See page 23 of this Official Journal.

(3)OJ L 333, 20.12.2003, p. 84.

(4)OJ L 256, 7.9.1987, p. 1. Regulation as last amended by Commission Regulation (EC) No 2344/2003 (OJ L 346, 31.12.2003, p. 38).

(5)  See footnote 3.

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ANNEX I

SA Flat-rolled products

SA1. (coils)

SA2. (heavy plate)

SA3. (SB Longs)

SB Longs

SB1. (beams)

SB2. (wire rod)

SB3. (other longs)

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ANNEX II

EXPORT LICENCE

EXPORT LICENCE

ORIGINAL

ORIGINAL

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ANNEX III

EUROPEAN COMMUNITY IMPORT LICENCE

EUROPEAN COMMUNITY IMPORT LICENCE

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ANNEX IV

LISTA DE LAS AUTORIDADES NACIONALES COMPETENTES

SEZNAM PŘÍSLUŠNÝCH VNITROSTÁTNÍCH ORGÁNŮ

LISTE OVER KOMPETENTE NATIONALE MYNDIGHEDER

LISTE DER ZUSTÄNDIGEN BEHÖRDEN DER MITGLIEDSTAATEN

PÄDEVATE RIIKLIKE ASUTUSTE NIMEKIRI

ΔΙΕΥΘΥΝΣΕΙΣ ΤΩΝ ΑΡΧΩΝ ΕΚΔΟΣΗΣ ΑΔΕΙΩΝ ΤΩΝ ΚΡΑΤΩΝ ΜΕΛΩΝ

LIST OF THE COMPETENT NATIONAL AUTHORITIES

LISTE DES AUTORITÉS NATIONALES COMPÉTENTES

ELENCO DELLE COMPETENTI AUTORITÀ NAZIONALI

VALSTU KOMPETENTO IESTAŽU SARAKSTS

ATSAKINGŲ NACIONALINIŲ INSTITUCIJŲ SĄRAŠAS

AZ ILLETÉKES NEMZETI HATÓSÁGOK LISTÁJA

LISTA TA' L-AWTORITAJIET KOMPETENTI NAZZJONALI

LIJST VAN BEVOEGDE NATIONALE INSTANTIES

LISTA WŁAŚCIWYCH ORGANÓW KRAJOWYCH

LISTA DAS AUTORIDADES NACIONAIS COMPETENTES

ZOZNAM PRÍSLUŠNÝCH ŠTÁTNYCH ORGÁNOV

SEZNAM PRISTOJNIH NACIONALNIH ORGANOV

LUETTELO TOIMIVALTAISISTA KANSALLISISTA VIRANOMAISISTA

FÖRTECKNING ÖVER BEHÖRIGA NATIONELLA MYNDIGHETER

BELGIQUE/BELGIË

ČESKÁ REPUBLIKA

EESTI

ΕΛΛΑΣ

ESPAÑA

DANMARK

DEUTSCHLAND

ITALIA

FRANCE

IRELAND

ÖSTERREICH

KYPROS

LATVIJA

LIETUVA

POLSKA

PORTUGAL

SLOVENIJA

LUXEMBOURG

MAGYARORSZÁG

MALTA

NEDERLAND

SLOVENSKÁ REPUBLIKA

SUOMI

SVERIGE

UNITED KINGDOM

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ANNEX V

QUANTITATIVE LIMITS

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II Acts whose publication is not obligatory

Council

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COUNCIL DECISION

of 19 November 2004

concerning the conclusion of the Agreement between the European Community and the Government of Ukraine on trade in certain steel products

(2004/895/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133, in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

HAS DECIDED AS FOLLOWS:

Article 1

1.   The Agreement between the European Community and the Government of Ukraine on trade in certain steel products is hereby approved on behalf of the Community.

2.   The text of the Agreement is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) empowered to sign the Agreement in order to bind the Community.

Done at Brussels, 19 November 2004.

For the Council

President

J. P. H. DONNER

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(1)OJ L 49, 19.2.1998, p. 3.

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AGREEMENT

between the European Community and the Government of Ukraine on trade in certain steel products

THE EUROPEAN COMMUNITY, hereinafter referred to as ‘the Community’,

of the one part, and

THE GOVERNMENT OF UKRAINE,

of the other part,

together referred to as ‘the Parties’,

WHEREAS the Partnership and Cooperation Agreement between the European Communities and their Member States, and Ukraine, entered into force on 1 March 1998;

DESIROUS to promote the orderly and equitable development of trade in steel between the Community and Ukraine;

WHEREAS Article 22(1) of the Partnership and Cooperation Agreement provides that trade in certain steel products shall be governed by Title III, save for Article 14 thereof, and by the provisions of an Agreement;

BEARING in mind the process of accession of Ukraine to the World Trade Organisation (WTO) and the Community's support for the integration of Ukraine into the international trading system;

WHEREAS for the years 1995-2001 trade in certain steel products was the subject of agreements between the Parties, and in 2002, 2003 and 2004 of specific arrangements. It is therefore appropriate to replace these as far as 2004 is concerned with a further agreement which takes account of developments in the relationship between the Parties;

WHEREAS the Parties reiterate their commitment to achieve as soon as the conditions are fulfilled complete liberalisation of trade in respect of the steel products covered by this Agreement;

WHEREAS this Agreement should be accompanied by cooperation between the Parties in respect of their steel industries, including appropriate exchanges of information, within a contact group on coal and steel as foreseen in Article 22.2 to the Partnership and Cooperation Agreement,

HAVE AGREED AS FOLLOWS:

Article 1

1.   This agreement applies to trade in the steel products set out in Annex I to this Agreement originating within the Parties.

2.   Trade in steel products not set out in Annex I shall not be subject to quantitative limits and shall be governed by the relevant provisions of the Partnership and Cooperation Agreement, in particular those relating to anti-dumping procedures and safeguard measures.

3.   In the case of a subject matter which is not covered by this Agreement, the relevant provisions of the Partnership and Cooperation Agreement shall apply.

Article 2

1.   The Parties agree to establish and maintain for the period of validity of the present Agreement quantitative arrangements fixing the limits set out in Annex II of this Agreement on Ukrainian exports to the Community of the products set out in Annex I. Such exports shall be subject to a double-checking system as specified in Protocol A of this Agreement (hereinafter referred to as ‘Protocol A’).

2.   The Parties reiterate their commitment to achieve complete liberalisation of trade in respect of the steel products set out in Annex I as soon as the conditions have been established.

3.   For the product groups included in Annex I, quantities covered by imports authorisations issued by the Community, on the basis of the Council Decision 2003/893/EC of 15 December 2003, as from 1 January 2004 until the entry into force of this Agreement, will be deducted from the quantitative limits set out in Annex II.

4.   Imports of quantities in excess of those mentioned in Annex II shall be authorised where the Community industry is unable to meet the internal demand and results in a shortage of supply for one or more products listed in Annex I. Consultations shall take place immediately at the request of either Party to determine the level of the shortage. Following the conclusions of the consultations and on the basis of objective evidence, the Community shall instigate its internal procedures to increase the quantities set out in Annex II.

5.   Each Party may, at any time, request consultations concerning:

Article 3

1.   Imports into the customs territory of the Community for free circulation of the products set out in Annex I shall be subject to the production of an export licence issued by the authorities of Ukraine and to proof of origin in accordance with the provisions of Protocol A.

2.   Imports into the customs territory of the Community of the products set out in Annex I shall not be subject to the quantitative limits set out in Annex II provided they are declared to be for re-export outside the Community in the same state or after processing, within the administrative system of control which exists within the Community.

Article 4

1.   With a view to rendering the double-checking system as effective as possible and to minimize the possibilities for abuse and circumvention:

In the event of any significant discrepancy taking account of the time factors involved in respect of such information either Party may request consultations which shall be opened immediately.

2.   Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of this Agreement, the Parties agree to take all necessary steps to prevent, to investigate and to take any necessary legal and/or administration action against circumvention, notably by transhipment, re-routing, false declaration concerning the country or place of origin, falsification of documents, false declaration concerning quantities, description or classification of merchandise. Accordingly, the Parties agree to establish the necessary legal provisions and administrative procedures permitting effective action to be taken against such circumvention, which shall include the adoption of legally binding corrective measures against exporters and/or importers involved.

3.   Should either Party believe on the basis of information available that this Agreement is being circumvented, it may request consultations with the other Party which shall be held immediately.

4.   Pending the results of the consultations referred to in paragraph 3, the Government of Ukraine shall, as a precautionary measure, and if so requested by the Community, take all necessary measures to ensure that, where sufficient evidence of circumvention is provided, adjustments of the quantitative limits liable to be agreed following the consultations referred to in paragraph 3, shall be carried out for the calendar year in which the request for consultations under paragraph 3 was made, or for the following year, if the limit for that calendar year is exhausted.

5.   Should the Parties be unable in the course of the consultations referred to in paragraph 3 to reach a mutually satisfactory solution, the Community shall have the right, where there is sufficient evidence that products set out in Annex I originating in Ukraine have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits established under Annex II.

6.   Should the Parties be unable in the course of the consultations referred to in paragraph 3 to reach a mutually satisfactory solution, the Community shall have the right, where sufficient evidence shows false declaration concerning quantities description or classification has occurred, to refuse to import the products in question.

7.   The Parties agree to cooperate fully to prevent and to address effectively all problems arising from circumvention of this Agreement.

Article 5

1.   The quantitative limits established under this Agreement on imports of steel products set out in Annex I into the Community shall not be broken down by the Community into regional shares.

2.   The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows into the Community. Should a sudden and prejudicial change in traditional trade flows arise (including regional concentration or the loss of traditional customers), the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately.

3.   Ukraine shall endeavour to ensure that exports into the Community of products set out in Annex I are spaced out as evenly as possible over the year. Should a sudden and prejudicial surge of imports arise, the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately.

4.   In addition to the obligation contained in paragraph 3, and without prejudice to the consultations foreseen by Article 2(7), where licences issued by the Ukrainian authorities have reached 90 % of the quantitative limits, either Party may request consultations. Such consultations shall be held immediately. Pending the outcome of such consultations the Ukrainian authorities may continue to issue export licences for the products set out in Annex I provided they do not exceed the quantities set out in Annex II.

Article 6

1.   Where any product set out in Annex I is being imported into the Community from Ukraine under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Ukraine with all relevant information with a view to seeking a solution acceptable to both Parties. The Parties shall commence consultations promptly.

2.   Should the consultations referred to in paragraph 1 above fail to lead to agreement within 30 days of the Community's request for consultations, the Community may utilise the right to take action concerning safeguard measures pursuant to the provisions of the Partnership and Cooperation Agreement.

3.   Notwithstanding the provisions of this Agreement, the provisions of Article 19 of the Partnership and Cooperation Agreement shall apply.

Article 7

1.   The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature of the Community (hereinafter called the ‘combined nomenclature’, or in abbreviated form ‘CN’). Any amendment to the combined nomenclature made in accordance with the procedures in force in the Community concerning the products set out in Annex I or any decision relating to the classification of goods shall not have the effect of reducing the quantitative limits of the products set out Annex II.

2.   The origin of the products covered by this Agreement shall be determined in accordance with the rules in force in the Community. Any amendment to these rules of origin shall be communicated to the Government of Ukraine and shall not have the effect of reducing the quantitative limits of this Agreement. The procedures for control of the origin of the products referred to above are laid down in Protocol A.

Article 8

1.   Without prejudice to the periodic exchange of information on export licences and import authorizations pursuant to Article 4(1), the Parties agree to exchange available statistical information relating to trade in the products set out in Annex I at appropriate intervals, taking account of the shortest periods in which the information in question is prepared, which shall cover export licences and import authorizations issued pursuant to Article 3 and import and export statistics in respect of the products in question.

2.   Either Party may request consultations in the event of any significant discrepancy between the information exchanged.

Article 9

1.   Without prejudice to provisions concerning consultations foreseen in respect of specific circumstances in preceding Articles, consultations shall be held on any problems arising from the application of this Agreement at the request of either Party. Any consultations shall take place in a spirit of cooperation and with a desire to reconcile the differences between the Parties.

2.   Where this Agreement provides that consultations shall be held immediately, the Parties undertake to use all reasonable means to ensure that this is achieved.

3.   All other consultations shall be governed by the following provisions:

Article 10

1.   This Agreement shall enter into force on the date of its signature. It shall be applicable until 31 December 2004 subject to any modifications agreed by the Parties and unless it is denounced in accordance with the provisions of paragraph 3 of this Article.

2.   Either Party may at any time propose modifications to this Agreement which shall require the mutual consent of the Parties and take effect as agreed by them.

3.   Either Party may denounce this Agreement, provided that at least six months' notice is given. In that event, the Agreement shall come to an end on the expiry of the period of notice and the limits established by this Agreement shall be reduced on a pro rata basis up to the date on which denunciation takes effect unless the Parties decide otherwise by common agreement.

4.   Annexes I and II, declarations 1, 2, 3 and 4, the agreed minute and Protocol A attached to this Agreement shall form an integral part thereof.

Article 11

This Agreement shall be drawn up in duplicate in the Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish, Swedish and Ukrainian languages, each text being equally authentic.

Hecho en Bruselas, el

V Bruselu dne

Udfærdiget i Bruxelles den

Geschehen zu Brüssel am

Brüsselis

'Eγινε στην Βρυξέλλες, στις

Done at Brussels,

Fait à Bruxelles, le

Fatto a Bruxelles, addì

Briselē,

Priimta Briuselyje

Kelt Brüsszelben,

Magħmul fi Brussel,

Gedaan te Brussel,

Sporządzono w Brukseli, dnia

Feito em Bruxelas,

V Bruseli

V Bruslju,

Tehty Brysselissä

Udfärdat i Bryssel den

Вчинено в м.

Por la Comunidad Europea

Za Evropské společenství

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Eυρωπαϊκή Koινóτητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Eiropas Kopienas vārdā

Europos bendrijos vardu

Az Európai Közösség részéről

Għall-Komunità Ewropea

Voor de Europese Gemeenschap

W imieniu Wspólnoty Europejskiej

Pela Comunidade Europeia

Za Európske spoločenstvo

Za Evropsko skupnost

Euroopan yhteisön puolesta

För Europeiska gemenskapen

За Eвропейське Спiвтовариство

За Кабiнет Мiнiстрiв Украïни

ANNEX I

SA Flat-rolled products

SA1. (coils)

SA2. (heavy plate)

SA3. (other flat rolled products)

SB Longs

SB1. (beams)

SB2. (wire rod)

SB3. (other longs)

ANNEX II

QUANTITATIVE LIMITS

Note: SA and SB are the ‘categories’.

SA1, SA2, SA3, SB1, SB2 and SB3 are the ‘product groups’.

AGREED MINUTE

In the context of the Agreement between the European Community and Ukraine on trade in certain steel products signed in Brussels on 22 November 2004, the Parties agree that:

DECLARATION No 1

In the context of the Agreement between the European Community and the Government of Ukraine on trade in certain steel products signed in Brussels on 22 November 2004, and more particularly Article 3 thereof, the Parties confirm their understanding that this Agreement does not affect existing systems concerning the import and duties in respect of the steel products mentioned in Annex I to the Agreement which are intended for certain categories of ships, boats and other vessels and for drilling or production platforms for the purposes of their construction, repair, maintenance or conversion and in respect of goods intended for fitting to or equipping such ships, boats or other vessels.

DECLARATION No 2

It is the objective of both Parties to liberalise fully the trade of ferrous scrap, and to ensure that quantitative restrictions or any measures having equivalent effect on the export of ferrous scrap and waste under the EC Combined Nomenclature heading 7204, such as customs duties or charges, are eliminated. However, Ukraine is not able currently to fully implement this objective and is applying a tax on the exports of ferrous scrap of EUR 30 per tonne. The quantitative limits set out in Annex II of this Agreement take into account that tax.

As a first step, the Ukraine is committed not to increase this tax. If Ukraine were to reduce or remove the tax for the exports of ferrous scrap on an erga omnes basis, then those quantitative limits would be revised as follows:

The increases referred to above are understood to cover the year 2004. If the reduction of the tax is implemented during the course of this year, then the increases referred therein will be adjusted pro rata.

The Parties agree that any modification of the quantities set out in Annex II resulting from this Declaration will take place by agreement between the European Commission and the competent Ukrainian authorities.

DECLARATION No 3

Both Parties aim at achieving complete liberalisation of trade in steel products. In this context, both Parties intend to terminate quantitative restrictions once Ukraine becomes a WTO member. They also recognize that it is an important condition for promoting trade between them that competition, state aid and environment provisions applicable within each Party must be compatible. To this end, and upon request from Ukraine authorities, the Community shall provide technical assistance within available budgetary means to help Ukraine to adopt and implement legislative provisions compatible with those adopted and applied by the Community. Such assistance shall be specified in projects to be agreed by both Parties and identifying clearly, inter alia, the objectives, the means and the calendar.

DECLARATION No 4

In the case Ukrainian operators were to set up service centres in the European Union that would further process products imported from Ukraine and covered by this Agreement, Ukraine declares that it could request an increase of quantitative limits mentioned in Annex II. In this case, the Commission could examine such request of increase if the market situation allows it and will respond to Ukraine within 60 days.

PROTOCOL A

TITLE I

CLASSIFICATION

Article 1

1.   The competent authorities of the Community undertake to inform Ukraine of any changes in the combined nomenclature (CN) in respect of products covered by the Agreement before the date of their entry into force in the Community.

2.   The competent authorities of the Community undertake to inform the competent authorities of Ukraine of any decisions relating to the classification of products covered by the Agreement within one month of their adoption at the latest.

Such a description shall include:

3.   Where a decision on classification results in a change of classification practice of any product covered by the Agreement, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put into effect. Products shipped before the date of entry into effect of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 day's of that date.

4.   Where a Community decision on classification resulting in a change of classification practice of any product covered by the Agreement affects a category subject to quantitative limits, the Parties agree to enter into consultations in accordance with the procedures described in Article 9(3) of the Agreement with a view to honouring the obligation contained in Article 7(1) of the Agreement.

5.   In case of divergent opinions between the competent authorities of Ukraine and the Community at the point of entry into the Community on the classification of products covered by the Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 9 with a view to reaching agreement on the definitive classification of the products concerned.

TITLE II

ORIGIN

Article 2

1.   Products originating in Ukraine according to the Community Regulations in force for export to the Community in accordance with the arrangements established by the Agreement shall be accompanied by a certificate of Ukrainian origin conforming to the model annexed to this Protocol.

2.   The certificate of origin shall be certified by the Ukrainian organisations authorised for such purposes under Ukrainian legislation as to whether the products in question can be considered as products originating in Ukraine.

Article 3

The certificate of origin shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative. The Ukrainian organisations authorised for such purposes under Ukrainian legislation shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check which they consider appropriate.

Article 4

The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto cast doubt upon the statements in the certificate.

TITLE III

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE LIMITS

SECTION I

Exportation

Article 5

1.   The appropriate Ukrainian governmental authorities shall issue an export licence in respect of all consignments from Ukraine of steel products covered by the Agreement up to the quantitative limits set out in Annex II of the Agreement.

Article 6

1.   The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory of the Community.

2.   Each export licence must certify inter alia that the quantity of the product in question has been set off against the relevant quantitative limit established for the product concerned in Annex II of the Agreement.

Article 7

The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.

Article 8

1.   Exports shall be set off against the quantitative limits established for the year in which the shipment of goods has been effected even if the export licence is issued after such shipment.

2.   For the purposes of applying paragraph 1, shipment of goods is considered to have taken place on the date of their loading onto the exporting transport.

Article 9

The presentation of an export licence, in application of Article 11, shall be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped.

SECTION II

Importation

Article 10

1.   For the product groups included in Annex I of this Agreement, quantities covered by import authorisations issued by the Community, on the basis of the Council Decision 2003/893/EC of 15 December 2003, as from 1 January 2004 until the entry into force of this Agreement, will be deducted from the quantitative limits set out in Annex II.

2.   The release for free circulation into the Community of steel products subject to quantitative limits shall be subject to the presentation of an import authorisation.

Article 11

1.   The competent authorities of the Community shall issue the import authorisation referred to in Article 10(2), within ten working days of the presentation by the importer of the original of the corresponding export licence.

2.   The import authorisations shall be valid for four months from the date of their issue for imports throughout the customs territory of the Community.

3.   The competent authorities of the Community shall cancel the import authorisation already issued whenever the corresponding export licence has been withdrawn. However, if the competent authorities of the Community are notified of the withdrawal or the cancellation of the export licence only after the release for free circulation of the products into the Community, the relevant quantities shall be set off against the limits established for the product.

Article 12

If the competent authorities of the Community find that the total quantities covered by export licences issued by the competent authorities of Ukraine exceed the relevant quantitative limit established for products covered by Annex II of the Agreement the Community authorities shall suspend the further issue of import authorisations in respect of products covered by the quantitative limit in question. In this event, the competent authorities of the Community shall immediately inform the authorities of Ukraine and immediate consultations pursuant to Article 9(2) of the Agreement shall be initiated.

TITLE IV

FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITY

Article 13

1.   The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English. If they are completed by hand, entries must be in ink and in printed script.

These documents shall measure 210 x 297 mm. The paper used shall be white writing paper, sized, not containing mechanical pulp, and weighing not less than 25 g/m2. If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked ‘original’ and the other copies ‘copies’. Only the original shall be accepted by the competent authorities of the Community as being valid for the purpose of export to the Community in accordance with the provisions of the Agreement.

2.   Each document shall bear a standardised serial number, whether or not printed, by which it can be identified.

This number shall be composed of the following elements:

Article 14

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases, they must bear the endorsement ‘issued retrospectively’.

Article 15

1.   In the event of the theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the Ukrainian governmental authorities competent to issue licences or to the Ukrainian organisations authorised to issue certificates of origin under Ukrainian legislation, respectively, for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement ‘duplicate’.

2.   The duplicate shall bear the date of the original export licence or certificate of origin.

TITLE V

ADMINISTRATIVE COOPERATION

Article 16

The Parties shall cooperate closely in the implementation of the provisions of this Protocol. To this end, contacts and exchanges of views, including on technical matters, shall be facilitated by both Parties.

Article 17

In order to ensure the correct application of this Protocol, the Parties shall offer mutual assistance for the checking of the authenticity and the accuracy of export licences and certificates of origin issued or of any declarations made within the terms of this Protocol.

Article 18

Ukraine shall send the Commission of the European Communities the names and addresses of the competent Ukrainian authorities which are authorised to issue and to verify export licences and certificates of origin together with specimens of the stamps and signatures they use. Ukraine shall also notify the Commission of any change in this information.

Article 19

1.   Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the true origin of the products in question.

2.   In such cases, the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the appropriate Ukrainian authorities giving, where appropriate, the reasons of form or substance which justify an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the licence or their copies. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.

3.   The provisions of paragraph 1 above shall also apply to subsequent verifications of the certificates of origin provided for in Article 2 of this Protocol.

4.   The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 above shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate, licence or declaration, applies to the goods actually exported and whether these goods are eligible for export under the arrangements established by the Agreement. The information shall also include, at the request of the Community, copies of all the documentation necessary to fully determine the facts, and in particular the true origin of the goods. Should such verifications reveal systematic irregularities in the use of certificates of origin, the Community may subject imports of the products in question to the provisions of Article 2(1) of this Protocol.

5.   For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept by the appropriate Ukrainian authorities for at least one year following the end of the Agreement.

6.   Recourse to the random verification procedure specified in this Article must not constitute an obstacle to the release for free circulation of the products in question.

Article 20

1.   Where the verification procedure referred to in Article 19 or where information available to the competent authorities of the Community or of Ukraine indicates or appears to indicate that the provisions of the Agreement are being circumvented or infringed, the two Parties shall cooperate closely and with the appropriate urgency in order to prevent any such circumvention or infringement.

2.   To this end, the appropriate Ukrainian authorities shall, on their own initiative or at the request of the Community, carry out appropriate inquiries, or arrange for such inquiries to be carried out, concerning operations which are, or appear to the Community to be, in circumvention or infringement of this Protocol. Ukraine shall communicate the results of these inquiries to the Community, including any other pertinent information enabling the cause of the circumvention or infringement, including the true origin of the goods to be determined.

3.   By agreement between the Parties, officials designated by the Community may be present at the inquiries referred to in paragraph 2 above.

4.   In pursuance of the cooperation referred to in paragraph 1 above, the competent authorities of the Community and Ukraine shall exchange any information considered by either Party to be of use in preventing circumvention or infringement of the provisions of the Agreement. These exchanges may include information on the trade in the type of products covered by the Agreement between Ukraine and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Ukraine prior to their importation into the Community. This information may include at the request of the Community copies of all relevant documentation, where available.

5.   Where sufficient evidence shows that the provisions of this Protocol have been circumvented or infringed, the competent authorities of Ukraine and the Community may agree to take any measures as are necessary to prevent a recurrence of such circumvention or infringement.

EXPORT LICENCE

EXPORT LICENCE

CERTIFICATE OF ORIGIN

CERTIFICATE OF ORIGIN

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