# EUR-Lex - 52014PC0106 - EN

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# 52014PC0106

**Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in the EU-China Joint Customs Cooperation Committee regarding mutual recognition of the Authorised Economic Operator Programme in the European Union and the Measures on Classified Management of Enterprises Program in the People’s Republic of China /* COM/2014/0106 final - 2014/0054 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The European Union (‘EU’) legislation on
Authorised Economic Operators (‘AEO’) was introduced by an amendment to the
Community Customs Code (Regulation 648/2005 adopted in April 2005). This AEO
legislation came into force in January 2008. The objective of trade partnership
programmes such as the AEO programme is to provide facilitation to reliable traders
which demonstrate compliance with customs requirements and secure their part of
the international supply chain.

Mutual recognition of trade partnership
programmes enhances end-to-end supply chain security and facilitates trade. It
consolidates internationally the approach agreed in the World Customs
Organization’s Framework of Standards to Secure and Facilitate Trade. It also
addresses the concerns of the business community to avoid proliferation of
requirements and to standardise customs security procedures.

The Co-operation and Mutual Administrative
Assistance Agreement in Customs Matters (‘CCMAAA’) between the European
Community and the Government of the People’s Republic of China (‘China’) signed
on 8 December 2004 serves as the basis for EU-China customs relations. According
to the CCMAAA, the respective customs authorities undertake to develop customs
cooperation covering all matters relating to the application of customs
legislation. In particular, they undertake to develop trade facilitation
actions in customs matters taking account of the work done by international
organisations.

Mutual recognition should allow the EU and China to provide facilitative benefits to economic operators who have invested in
compliance and supply chain security and have been certified under their
respective trade partnership programmes.

In September 2010 the EU-China Joint
Customs Cooperation Committee (‘JCCC’) requested the drafting of a roadmap
towards mutual recognition of the AEO programmes. In December 2010 this roadmap
was agreed at the EU–China Joint Customs Cooperation Steering Group (‘JCCC SG’)
meeting.

In June 2011 the in-depth comparison of the
EU’s AEO programme and China’s Measures on Classified Management of Enterprises
Program were completed by the EU-China AEO Mutual Recognition Working Group. Following
this in-depth comparison which included both desk reviews and practical
implementation checks, the EU-China JCCC SG concluded that the two programmes
can be considered mutually compatible.

In June 2012 the EU-China JCCC agreed to
launch formal negotiations. Since then, three rounds of negotiations have taken
place; the first in January 2013, the second in March 2013 and the third in October
2013 to finalise the draft decision of the EU-China JCCC on AEO mutual
recognition.

Mutual Recognition of trade partnership
programmes is a key component of the Strategic Framework for EU-China Customs
Cooperation.

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

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

There is no need for an impact assessment
insofar as the decision of the EU-China JCCC implements the CCMAAA and does not
modify its substance.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

The Council is asked to adopt a Union Position
on a draft decision of the JCCC based on Article 207(4) first subparagraph, in
conjunction with Article 218(9) of the Treaty on the Functioning of the
European Union (‘TFEU’).

The legal basis for the draft decision of
the JCCC is laid down in Article 21 of the CCMAAA.

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

4.           BUDGETARY IMPLICATION

The proposal has no direct implication for
the Union budget.

2014/0054 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be adopted, on behalf
of the European Union, in the EU-China Joint Customs Cooperation Committee
regarding mutual recognition of the Authorised Economic Operator Programme in
the European Union and the Measures on Classified Management of Enterprises
Program in the People’s Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the
European Commission,

Whereas:

(1)       The Agreement between the
European Community and the People’s Republic of China (China) on co-operation and mutual administrative assistance in customs matters (hereinafter referred
to as 'the CCMAAA') entered into force on 1 April 2005.

(2)       Pursuant to Article 6 of
the CCMAAA, the Contracting Parties undertake to develop customs cooperation on
all matters relating to the application of customs legislation; they also
undertake to develop trade facilitation actions in customs matters.

(3)       Mutual recognition of
trade partnership programmes, namely the Authorised Economic Operator Programme
in the European Union (Union) and the Measures on Classified Management of
Enterprises Program in China enhances supply chain security and safety as well
as facilitates international trade, by allowing the Parties to provide
facilitative benefits to economic operators which have invested in compliance
and secured their part of the international supply chain, and which have been
certified under their respective trade partnership programmes.

(4)       It is therefore
appropriate to establish mutual recognition of the trade partnership
programmes.

(5)       Mutual recognition is to
be established by a decision of the EU-China Joint Customs Cooperation
Committee (JCCC) which was set up under Article 21 of the CCMAAA.

(6)       The Union should therefore
take position in the JCCC as set out in the attached draft decision,

HAS
ADOPTED THIS DECISION:

Article 1

The position to be taken by the European Union
in the Joint Customs Cooperation Committee, established by the Agreement
between the European Community and the People’s Republic of China on cooperation and mutual administrative assistance in customs matters, shall be
based on the draft Decision of the Joint Customs Cooperation Committee attached
to this Decision.

Article 2

After its
adoption, the Decision of the Joint Customs Cooperation Committee shall be
published in the Official Journal of the European Union.

Article 3

This Decision
shall enter into force upon signature.

Done at Brussels,

For
the Council

The
President