----

COUNCIL DECISION

of 27 June 2005

concerning the conclusion of an agreement between the European Community and the Russian Federation on trade in certain steel products

(2005/803/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

The Agreement between the European Community and the Russian Federation on trade in certain steel products is hereby approved on behalf of the Community.

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 Luxembourg, 27 June 2005.

For the Council

The President

L. LUX

----

(1)OJ L 327, 28.11.1997, p. 3.

----

AGREEMENT

between the European Community and the Russian Federation on trade in certain steel products

THE EUROPEAN COMMUNITY,

of the one part, and

THE RUSSIAN FEDERATION,

of the other part,

being the Parties to this Agreement,

WHEREAS the Partnership and Cooperation Agreement (hereinafter referred to as the ‘PCA’) establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part (1), entered into force on 1 December 1997,

WHEREAS the Parties are desirous to promote the orderly and equitable development of trade in steel between the European Community (hereinafter referred to as ‘the Community’) and the Russian Federation (hereinafter referred to as ‘Russia’),

WHEREAS Article 21 of the PCA provides that trade in the steel products of the former European Coal and Steel Community, hereinafter referred to as ‘ECSC’, shall be governed by Title III, save for Article 15 thereof, and by the provisions of an agreement; whereas this Agreement is the agreement referred to in Article 21 of the PCA,

BEARING IN MIND the process of accession of Russia to the World Trade Organisation (WTO) and Community support for the integration of Russia into the international trading system,

WHEREAS for the years 1995-2004 trade in certain steel products was the subject of agreements, which it is appropriate to replace with a further agreement which takes account of developments in the relationship between the Parties,

WHEREAS this Agreement should be accompanied by cooperation between the Parties in respect of their steel industries, including appropriate exchanges of information, within the Contact Group on coal and steel as foreseen in Protocol 1 to the PCA,

HAVE AGREED AS FOLLOWS:

Article 1

1.   This Agreement applies to trade in former ECSC steel products.

2.   Trade in steel products set out in Annex I may be subject to quantitative limits.

3.   Trade in steel products not set out in Annex I shall not be subject to quantitative limits.

4.   In the case of steel products and subject matters which are not covered by this Agreement, the relevant provisions of the PCA shall apply.

Article 2

1.   The Parties agree to establish and maintain for the period of validity of the present Agreement for each calendar year quantitative arrangements fixing the limits set out in Annex II on Russian 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.

2.   The Parties agree that imports into the Community from Russia of products included in Annex I as from 1 January 2005 until the entry into force of this Agreement shall be deducted from the quantitative limits set out in Annex II.

3.   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 which 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 on the basis of objective evidence. Following the conclusions of the consultations, the Community shall instigate its internal procedures to increase the quantitative limits set out in Annex II.

4.   In the case where countries candidate for membership of the European Union would accede before the termination of this Agreement, the Parties agree to consider to increase the quantitative limits set out in Annex II.

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 presentation of an import authorisation issued by the competent authority of a Member State based on the production of an export licence issued by the authorities of Russia, 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.

3.   Carry-over to the corresponding quantitative limits for the following calendar year of the amounts of quantitative limits not used during the first calendar year is authorised up to 7 % of the relevant quantitative limit set out in Annex II for a product group in question for the year in which it was not used. Russia shall notify the Community no later than 31 March of the following year if it intends to make use of this provision.

4.   Up to 7 % of the quantitative limit for a given product group may be transferred to one or more other groups within the same product category, that is to say within category SA or SB, subject to the consent of both Parties. The quantitative limit for a given product group can be reduced once in the course of a calendar year. Furthermore, transfers between SA and SB categories are permitted up to a maximum of 25 000 tonnes. Any adjustments to the quantitative limits resulting from transfers shall only affect the calendar year in progress. At the start of the following calendar year, the quantitative limits shall be those shown at Annex II, without prejudice to the provisions of paragraph 3. Russia shall notify the Community no later than 31 May if it intends to make use of this provision.

Article 4

1.   With a view to rendering the double-checking system as effective as possible and to minimise 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 Community and Russia 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 Community and Russia 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 the Community believe on the basis of information available that this Agreement is being circumvented, the Community may request consultations with Russia which shall be held immediately.

4.   Pending the results of the consultations referred to in paragraph 3, Russia 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:

6.   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 into the Community of the steel products set out in Annex I 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.   Russia 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, where licences issued by the Russian authorities have reached 90 % of the quantitative limits for the calendar year in question, either Party may request consultations concerning the quantitative limits for that year. Such consultations shall be held immediately. Pending the outcome of such consultations, the Russian 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 Russia under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Russia 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 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 PCA.

3.   Notwithstanding the provisions of this Agreement, the provisions of Article 18 of the PCA 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 (CN) 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 Russia 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 authorisations 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 authorisations 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 provided for 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 day of its signature. It shall remain in force until 31 December 2006 subject to any modifications agreed by the Parties and unless it is denounced or terminated in accordance with, respectively, the provisions of paragraphs 3 or 4.

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.

4.   In the event that Russia accedes to the WTO before the expiration of this Agreement, the Agreement shall be terminated as of the date of accession.

5.   The Annexes, the agreed minute, the declarations 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 Russian languages, each of these texts being equally authentic.

Hecho en Moscú, el

V Moskvě

Udfærdiget i Moskva, den

Geschehen zu Moskau am

Moskva,

Έγινε στις Μόσχα, στις

Done at Moscow,

Fait à Moscou, le

Fatto a Mosca, addì

Maskavā,

Priimta Maskvoje

Kelt Moszkvában

Magħmul/a f'Moska

Gedaan te Moskou,

Sporządzono w Moskwie

Feito em Moscovo, em

V Moskve

V Moskvi,

Tehty Moskovassa

Utfärdat i Moskva den

Совершено в Москве

Por la Comunidad Europea

Za Evropské společenství

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Ευρωπαϊκή Κοινότητα

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 Wspólonoty Europejskiej

Pela Comunidade Europeia

Za Európske spoločenstvo

Za Evropsko skupnost

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

За Европейское сообшество

Por la Federación de Rusia

Za Ruskou federaci

For Den Russiske Føderation

Für die Russische Föderation

Venemaa Föderatsiooni nimel

Για τη Ρωσική Ομοσπονδία

For the Russian Federation

Pour la Fédération de Russie

Per la Federazione russa

Krievijas Federācijas vārdā

Rusijos Federacijos vardu

A Orosz Föderáció részéről

Għall-Federazzjoni Russa

Voor de Russische Federatie

W imieniu Federacji Rosyjskiej

Pela Federação da Russa

Za Ruskú federáciu

Za Rusko federacijo

Venäjän federaation puolesta

På ryska federationen vägnar

За Российскую Федерацию

----

(1)OJ L 327, 28.11.1997, p. 3.

ANNEX I

SA Flat-rolled products

SA1. Coils

SA2. Heavy Plate

SA3. Other flat-rolled products

SA4. Alloyed products

SA5. Alloyed quarto plates

SA6. Alloyed cold rolled and coated sheets

SB Long products

SB1. Beams

SB2. Wire rod

SB3. Other longs

ANNEX II

QUANTITATIVE LIMITS

Agreed minute No 1

In the context of this Agreement, the Parties agree that:

Declaration No 1

In the case Russian operators were to set up service centres in the Community that would further process products covered by this Agreement imported from Russia, Russia declares that it could request an increase of quantitative limits mentioned in Annex II. In this case, the Community will examine such request of increase and the Parties will enter into consultations if required.

Declaration No 2

The Parties declare that they aim at achieving complete liberalisation of trade in steel products. Both Parties also recognise 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 Russia, the Community shall provide technical assistance, within relevant earmarked budgetary limits, to help Russia to adopt and implement legislative provisions compatible with those adopted and applied by the Community. The technical assistance shall be channelled through detailed projects agreed by both Parties.

Declaration No 3

The Parties agree that they shall not apply with respect to the other Party quantitative restrictions, customs duties, charges or any similar measures on the export of ferrous waste and scrap under the EC Combined Nomenclature heading 7204, without prejudice to the provisions of Article 19 of the PCA.

Notwithstanding the previous paragraph, Russia applies currently a tax on exports of ferrous waste and scrap under the EC Combined Nomenclature 7204. The tax is currently set at 15 % but not less than EUR 15 per tonne for all products of 7204, except for product 7204 41 00 where the tax is set at 5 %.

The Parties agree to continue the discussion to find a satisfactory solution. Furthermore, it is understood that the quantitative limits set out in Annex II of the Agreement would be increased by 12 % if Russia removes completely the tax or by a lower percentage to be determined if such tax is reduced, provided that no other measures that would constitute an obstacle to free export are introduced by Russia.

The products of particular interest for the Community are: 7204 10 00, 7204 21 10, 7204 41 10, 7204 49 10, 7204 49 30, 7204 49 91 and 7204 49 99.

PROTOCOL A

TITLE I

Classification

Article 1

The competent authorities of the Community undertake to inform Russia of any changes in the combined nomenclature (CN) in respect of products covered by this Agreement at least one month before the date of their entry into force in the Community.

TITLE II

Origin

Article 2

1.   Products covered by this Agreement originating in Russia (origin as defined by the relevant Community Regulations) to be exported to the Community in accordance with the arrangements established by this Agreement shall be accompanied by a certificate of Russian origin conforming to the model annexed to this Protocol.

2.   The certificate of origin shall be certified by the competent Russian organisations authorised under Russian legislation as to whether the products in question can be considered products originating in that country.

Article 3

The certificate of origin shall be issued only on application in writing by the exporter or, under the exporter’s responsibility, by his authorised representative. The competent Russian organisations authorised under Russian legislation shall ensure that the certificate of origin is properly completed and for this purpose they shall request for any necessary documentary evidence or carry out any checking 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 necessary 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

The appropriate Russian governmental authorities shall issue an export licence in respect of all consignments from Russia of steel products covered by the Agreement up to the relevant quantitative limits set out in Annex II to 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 to 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 as evidenced by their bill of lading or other transport document.

SECTION II

Importation

Article 9

The release for free circulation into the Community of the products covered by the Agreement shall be subject to the presentation of an import authorisation.

Article 10

1.   The presentation by the importer of an export licence shall be made not later than 31 March of the year following that in which the goods covered by the licence have been shipped.

2.   The competent authorities of the Community shall issue the import authorisation referred to in Article 9, within 10 working days of the presentation by the importer of the original of the corresponding export licence.

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

4.   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 11

If the competent authorities of the Community find that the total quantity of the products covered by export licences issued by the competent authorities of Russia exceed the limits set out in Annex II to the Agreement, the Community authorities shall suspend the further issue of import authorisations. In this event, the competent authorities of the Community shall immediately inform the competent authorities of Russia 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 12

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 × 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 13

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 14

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 competent Russian authorities which issued the document 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 15

The Community and Russia 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 16

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

Article 17

Russia shall send the Community (European Commission) the names and addresses of the competent Russian governmental authorities which are authorised to issue and to verify export licences and the competent Russian organisations authorised under Russian legislation to issue certificates of origin together with specimens of the stamps and signatures they use. Russia shall also notify the Community (European Commission) of any change in these particulars.

Article 18

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 Russian 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 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 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 or licence 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.

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 competent Russian organisations 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 19

1.   Where the verification procedure referred to in Article 18 or where information available to the competent authorities of the Community or of Russia indicates or appears to indicate that the provisions of this 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 Russian 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. Russia shall communicate the results of these enquiries 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 Community and Russia, officials designated by the Community may be present at the inquiries referred to in paragraph 2.

4.   In pursuance of the cooperation referred to in paragraph 1, the competent authorities of the Community and Russia shall exchange any information considered by either Party to be of use in preventing circumvention or infringement of the provisions of this Agreement. These exchanges may include information on the trade in the type of products covered by this Agreement between Russia 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 Russia 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 Russia and the Community may agree to take any measures necessary to prevent a recurrence of such circumvention or infringement.

----