# EUR-Lex - 52015PC0027 - EN

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# 52015PC0027

**Proposal for a COUNCIL DECISION on the position to be adopted on behalf of the European Union within the Joint Committee established by the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, as regards the replacement of Protocol 3 to that Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation, by a new protocol which, as regards the rules of origin, refers to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin /* COM/2015/027 final - 2015/0019 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The Regional Convention on
pan-Euro-Mediterranean preferential rules of origin[1]
('the Convention') lays down provisions on the origin of goods traded under
relevant Agreements concluded between the Contracting Parties. The EU and the Kingdom of Denmark in respect of the Faroe Islands signed the Convention on 15 June 2011.

The EU and the Kingdom of Denmark in respect of the Faroe Islands deposited their instrument of acceptance with the
depositary of the Convention on 26 March 2012 and 9 September 2013
respectively. As a consequence, in application of its Article 10(3), the
Convention entered into force in relation to the EU and the Faroe Islands on
1 May 2012 and on 1 November 2013 respectively.

Article 6 of the Convention provides that
each Contracting Party shall take appropriate measures to ensure that the
Convention is effectively applied. To that effect, the Joint Committee
established by the Agreement between the European
Community, of the one part, and the Government of Denmark and the Home
Government of the Faroe Islands, of the other part[2],
should adopt a Decision replacing Protocol 3 concerning the definition of the
concept of 'originating products' and methods of administrative cooperation by
a new Protocol which, with regard to the rules of origin, refers to the
Convention. The position to be taken by the EU within the Joint Committee
should be established by the Council.

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

The EU Member States were informed on the
draft Council Decision in the Customs Code Committee's Origin Section of 13 May
2013. The Contracting Parties to the Convention were last consulted at the
meeting of the Pan-Euro-Med working group of 22 and 23 October 2014.

No recourse to external expertise has been
necessary. Furthermore, it has not been necessary to conduct an impact
assessment, since the proposed amendments are technical in nature and do not
affect the substance of the protocol on rules of origin currently in effect.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

The legal basis for the Council Decision is
the first subparagraph of Article 207(4) in conjunction with Article
218(9) of the Treaty on the Functioning of the European Union.

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

Proposed instrument: Council Decision.

2015/0019 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be adopted on behalf of
the European Union within the Joint Committee established by the Agreement
between the European Community, of the one part, and the Government of Denmark
and the Home Government of the Faroe Islands, of the other part, as regards the
replacement of Protocol 3 to that Agreement, concerning the definition of the
concept of ‘originating products’ and methods of administrative cooperation, by
a new protocol which, as regards the rules of origin, refers to the Regional
Convention on pan-Euro-Mediterranean preferential rules of origin

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular the first subparagraph of
Article 207(4) in conjunction with Article 218(9) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Protocol
3 to the Agreement between the European Community, of
the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part[3] (‘the Agreement’), concerns the definition of the concept of ‘originating
products’ and methods of administrative cooperation (‘Protocol 3’).

(2)       The Regional Convention on
pan-Euro-Mediterranean preferential rules of origin[4] (‘the Convention’) lays
down provisions on the origin of goods traded under relevant agreements
concluded between the Contracting Parties.

(3)       The Union and the Kingdom of Denmark in respect of the Faroe Islands signed the Convention on 15 June 2011.

(4)       The Union and the Kingdom of Denmark in respect of the Faroe Islands deposited their instruments of acceptance with the depositary of the
Convention on 26 March 2012 and 9 September 2013 respectively. Consequently, in application of Article 10(3) of the
Convention, the Convention entered into force in relation to the Union and the Faroe Islands on 1 May 2012 and on 1 November 2013 respectively.

(5)       Article 6 of the
Convention provides that each Contracting Party is to take appropriate measures
to ensure that the Convention is effectively applied. To that effect, the Joint
Committee established by the Agreement should adopt a decision replacing
Protocol 3 by a new protocol which, with regard to the rules of origin, refers
to the Convention.

(6)       The position of the Union within the Joint Committee should therefore 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 Joint Committee established by the Agreement between
the European Community, of the one part, and the Government of Denmark and the
Home Government of the Faroe Islands, of the other part, as regards the
replacement of Protocol 3 to that Agreement, concerning the definition of the
concept of ‘originating products’ and methods of administrative cooperation, by
a new protocol which, as regards the rules of origin, refers to the Regional
Convention on pan-Euro-Mediterranean preferential rules of origin, shall be
based on the draft decision of the Joint Committee attached to this Decision.

Minor changes to the draft decision of the Joint
Committee may be agreed to by the representatives of the Union in the Joint
Committee without further decision of the Council.

Article 2

The decision of the Joint Committee shall
be published in the Official Journal of the European Union.

Article 3

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

Done at Brussels,

For
the Council

The
President

[1]               OJ L 54, 26.2.2013, p. 4.

[2]               OJ L 53, 22.2.1997, p. 2.

[3]               OJ L 53, 22.2.1997, p. 2.

[4]               OJ L 54, 26.2.2013, p. 4.

Draft
DECISION No ... OF THE EU/DENMARK-FAROE ISLANDS JOINT committee

of

replacing Protocol 3 to the Agreement between the European Community,
of the one part, and the Government of Denmark and the Home Government of the
Faroe Islands, of the other part, concerning the definition of the concept of
'originating products' and methods of administrative cooperation

The EU/denmark-faroe islands joint
committee,

Having regard to the Agreement between the
European Community, of the one part, and the Government of Denmark and the Home
Government of the Faroe Islands, of the other part[1], and in particular
Article 11 thereof,

Having regard to Protocol 3 to the Agreement
between the European Community, of the one part, and the Government of Denmark
and the Home Government of the Faroe Islands, of the other part, concerning the
definition of the concept of 'originating products' and methods of
administrative cooperation,

Whereas:

(1) 
Article 11 of the Agreement between the European
Community, of the one part, and the Government of Denmark and the Home
Government of the Faroe Islands, of the other part ('the Agreement') refers to
Protocol 3 to the Agreement ('Protocol 3') which lays down the rules of origin
and provides for cumulation of origin between the European Union, the Faroe
Islands and other Contracting Parties to the Convention.

(2) 
Article 39 of Protocol 3 provides that the Joint
Committee provided for in Article 31 of the Agreement may decide to amend the
provisions of this protocol.

(3) 
The Regional Convention on pan-Euro-Mediterranean
preferential rules of origin[2]
('the Convention') aims to replace the protocols on rules of origin currently
in force among the countries of the pan-Euro-Mediterranean area with a single
legal act.

(4) 
The European Union and the
 Kingdom of Denmark in respect of the Faroe Islands signed
the Convention on 15 June 2011.

(5) 
The European Union and the
 Kingdom of Denmark in respect of the Faroe Islands deposited
their instruments of acceptance with the depositary of the Convention on 26
March 2012 and 9 September 2013 respectively. Consequently, in application of Article 10(3) of the
Convention, the Convention entered into force in relation to the European Union
and the Faroe Islands on 1 May
2012 and on 1 November 2013 respectively.

(6) 
Protocol 3 should therefore be replaced by a new
protocol making reference to the Convention.

HAS ADOPTED THIS DECISION:

Article 1

Protocol 3 to the Agreement between the
European Community, of the one part, and the Government of Denmark and the Home
Government of the Faroe Islands, of the other part, concerning the definition
of the concept of 'originating products' and methods of administrative
cooperation shall be replaced by the text set out in the Annex to this
Decision.

Article 2

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

It shall apply from ...

Done at

For
the Joint Committee

The
President

Annex

Protocol
3

concerning
the definition of the concept of 'originating products' and methods of
administrative cooperation

Article 1

Applicable
rules of origin

1.         For the purpose of implementing
this Agreement, Appendix I and the relevant provisions of Appendix II to the
Regional Convention on pan-Euro-Mediterranean preferential rules of origin[3] ('the Convention')
shall apply.

2.         All references to the 'relevant agreement'
in Appendix I and in the relevant provisions of Appendix II to the Regional
Convention on pan-Euro-Mediterranean preferential rules of origin shall be
construed so as to mean this Agreement.

Article 2

Dispute
settlement

1.         Where disputes arise in relation
to the verification procedures of Article 32 of Appendix I to the Convention that
cannot be settled between the customs authorities requesting the verification
and the customs authorities responsible for carrying out that verification,
they shall be submitted to the Joint Committee.

2.         In all cases the settlement of
disputes between the importer and the customs authorities of the importing
country shall take place under the legislation of that country.

Article 3

Amendments
to the Protocol

The Joint Committee may decide to amend the
provisions of this Protocol.

Article 4

Withdrawal
from the Convention

1.         Should either the European Union
or the Kingdom of Denmark in respect of the Faroe
Islands give notice in writing to the depositary of the
Convention of their intention to withdraw from the Convention according to
Article 9 thereof, the European Union and the Kingdom
of Denmark in respect of the Faroe Islands shall
immediately enter into negotiations on rules of origin for the purpose of
implementing this Agreement.

2.         Until the entry into force of
such newly negotiated rules of origin, the rules of origin contained in
Appendix I and, where appropriate, the relevant provisions of Appendix II to
the Convention, applicable at the moment of withdrawal, shall continue to apply
to this Agreement. However, as of the moment of withdrawal, the rules of origin
contained in Appendix I and, where appropriate, the relevant provisions of
Appendix II to the Convention shall be construed so as to allow bilateral cumulation
between the European Union and the Faroe Islands only.

Article 5

Transitional
provisions – cumulation

Notwithstanding Articles 16(5) and 21(3) of
Appendix I to the Convention, where cumulation involves only EFTA States, the
Faroe Islands, the European Union, Turkey and the participants in the
Stabilisation and Association Process, the proof of origin may be a movement
certificate EUR.1 or an origin declaration.

[1]               OJ L 53, 22.2.1997, p. 2.

[2]               OJ L 54, 26.2.2013, p. 4.

[3]               OJ L 54, 26.2.2013, p. 4.