# EUR-Lex - 52015PC0155 - EN

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# 52015PC0155

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL implementing the anti-circumvention mechanism providing for the temporary suspension of tariff preferences of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part /* COM/2015/0155 final - 2015/0080 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Grounds for and objectives of the
proposal

This proposal concerns the incorporation in
the European Union law of the anti-circumvention mechanism foreseen in the
EU-Georgia Association Agreement.

General context

The Association Agreement with Georgia
includes a so-called anti-circumvention mechanism, which provides for the
possibility to reintroduce the MFN customs duty rate when imports of certain
agricultural goods from Georgia exceed a given threshold without due
justification of their exact origin.

An implementing regulation of the European
Parliament and of the Council is necessary to put in place in the EU’s internal
legislation the necessary instrument to be able to apply the anti-circumvention
mechanism.

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

This proposal for an implementing
Regulation is directly derived from the text of the Agreement negotiated with
Georgia. Consequently, neither a separate consultation with interested parties
nor any impact assessment is necessary.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Summary of the proposed action

The attached proposal for a Regulation of
the European Parliament and of the Council constitutes the legal instrument for
the implementation of the anti-circumvention mechanism of the Agreement already
concluded with Georgia.

Legal basis

Article 207(2) of the Treaty on the
Functioning of the European Union.

2015/0080 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

implementing the anti-circumvention
mechanism providing for the temporary suspension of tariff preferences of the
Association Agreement between the European Union and the European Atomic Energy
Community and their Member States, of the one part, and Georgia, of the other
part

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207(2) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national parliaments,

Acting in accordance with the ordinary
legislative procedure[1],

Whereas:

(1)       On 10 May 2010, the
Council authorised the Commission to open negotiations with Georgia for the
conclusion of a new agreement between the Union and Georgia.

(2)       Those negotiations have
been concluded and the Association Agreement between the European Union and the
European Atomic Energy Community and their Member States, of the one part, and
Georgia, of the other part[2]
(‘the Agreement’) was signed on 27 June 2014 and has been provisionally applied
from 1 September 2014.

(3)       It is necessary to lay
down the procedures to guarantee the effective application of the
anti-circumvention mechanism for the temporary suspension of tariff preferences
contained in the Agreement.

(4)       There should be a
possibility to suspend the preferential customs duties for a maximum period of
six months when the imports of certain agricultural products and processed
agricultural products reach the defined annual import volumes.

(5)       For reasons of
transparency, the Commission should submit an annual report to the European
Parliament and to the Council on the implementation of the Agreement and the
application of the anti-circumvention mechanism.

(6)       The implementation of the
anti-circumvention mechanism for the temporary suspension of tariff preferences
provided for in the Agreement requires uniform conditions. In order to ensure
uniform conditions for the implementation of this Regulation, implementing
powers should be conferred on the Commission. Those powers should be exercised
in accordance with Regulation (EU) No 182/2011 of the European Parliament and
of the Council[3].

(7)       The advisory procedure
should be used for the adoption of implementing acts given that those acts have
to be implemented quickly once the relevant threshold for the categories of
products listed in Annex II-C to the Agreement has been met as they have only a
very limited period of application.

(8)       In order to prevent a
negative impact on the Union market as a result of an increase in imports, the
Commission should adopt immediately applicable implementing acts where, in duly
justified cases relating to the temporary suspension of the preferential
tariffs under the anti-circumvention mechanism provided in the Agreement,
imperative grounds of urgency so require,

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter and scope

1.           This Regulation lays down
provisions for the implementation of the anti-circumvention mechanism providing
for the temporary suspension of tariff preferences contained in the Association
Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and Georgia, of the other part.

2.           This Regulation applies to
products originating in Georgia.

Article 2

Anti-circumvention mechanism for certain
agricultural products and processed agricultural products

1.           An average annual import
volume is set for imports of the products listed in Annex II-C to the
Agreement, which are subject to the anti-circumvention mechanism set out in
Article 27 of the Agreement. On duly justified imperative grounds of urgency
relating to the import volume of one or more categories of products that reach the volume indicated in Annex II-C to the Agreement in any given
year starting on 1 January, and unless it has received a sound justification
from Georgia, the Commission shall adopt an immediately
applicable implementing act in accordance with the procedure referred to in
Article 4(2) of this Regulation. The Commission may either decide to
temporarily suspend the preferential duty applied to the product(s) concerned
or that such suspension is not appropriate.

2.           The temporary suspension
of the preferential duty shall be applicable for a maximum period of six months
from the date of publication of the decision to suspend the preferential duty.
Before the expiry of that six‑month period and on duly justified
imperative grounds of urgency relating to the suspension of the preferential
duties, the Commission may adopt an immediately applicable implementing act in
accordance with the procedure referred to in Article 4(2) of this Regulation in
order to lift the temporary suspension of the preferential duty if it is
satisfied that the volume of the relevant category of products imported in
excess of the volume referred to in Annex II-C to the Agreement results from a
change in the level of production and export capacity of Georgia for the
product(s) concerned.

Article 3

Report

1.           The Commission shall
submit an annual report to the European Parliament and to the Council on the
application, implementation and compliance with the obligations laid down in Title IV of the Agreement and of this Regulation.

2.           The report shall set out a
summary of the statistics and the evolution of trade with Georgia.

3.           The European Parliament
may, within one month of submission of the Commission's report, invite the
Commission to an ad hoc meeting of its responsible committee to present and
explain any issues related to the implementation of this Regulation.

4.           No later than three months
after submitting its report to the European Parliament and to the Council, the
Commission shall make it public.

Article 4

Committee procedure

1.           The Commission shall be
assisted by the Committee for the Common Organisation of the Agricultural
Markets established by Article 229(1) of Regulation (EU) No 1308/2013 and, as
regards processed agricultural products, the Commission shall be assisted by
the Committee on horizontal questions concerning trade in processed
agricultural products not listed in Annex I established by Article 44(1) of
Regulation (EU) No 510/2014[4].
These Committees shall be committees within the meaning of Regulation (EU) No 182/2011.

2.           Where reference is made to
this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with
Article 4 thereof, shall apply.

Article 5

Entry into force

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

It shall apply to imports from Georgia from
the date of application of the Agreement.

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

Done at Brussels,

For the European Parliament                        For
the Council

The President                                                 The
President

[1]

[2]               Council Decision 2014/494/EU of 16 June 2014 on the
signing, on behalf of the European Union, and provisional application of the
Association Agreement between the European Union and the European Atomic Energy
Community and their Member States, of the one part, and Georgia, of the other
part (OJ L 261, 30.8.2014, p. 4).

[3]               Regulation (EU) No 182/2011 of the European
Parliament and of the Council of 16 February 2011 laying down the rules and
general principles concerning mechanisms for control by Member States of the
Commission's exercise of implementing powers (OJ L
55, 28.2.2011, p. 13).

[4]               Regulation (EU) No 510/2014 of the European
Parliament and of the Council of 16 April 2014 laying down the trade
arrangements applicable to certain goods resulting from the processing of
agricultural products and repealing Council Regulations (EC) No 1216/2009 and
(EC) No 614/2009 (OJ L 150, 20.5.2014, p. 1).