# Council Decision of 9 October 2014 on the position to be adopted on behalf of the European Union within the Stabilisation            and Association Council established by the Stabilisation and Association Agreement between the European Communities and their            Member States, of the one part, and the Republic of Montenegro, 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 (2014/735/EU)         

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U.K.

# Council Decision

# of 9 October 2014

# on the position to be adopted on behalf of the European Union within the Stabilisation and Association Council established                        by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part,                        and the Republic of Montenegro, 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                     

# (2014/735/EU)

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 Stabilisation and Association Agreement between the European Communities and their Member States, of the                              one part, and the Republic of Montenegro, of the other part(1) (‘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(2) (‘the Convention’) lays down provisions on the origin of goods traded under relevant agreements concluded between the contracting                              parties. Montenegro and other participants to the Stabilisation and Association Process from the Western Balkans were invited                              to join the system of pan-European diagonal cumulation of origin in the Thessaloniki agenda, endorsed by the European Council                              of June 2003. They were invited to join the Convention by a decision of the Euro-Mediterranean Ministerial Conference of October                              2007.

(3)The Union and Montenegro signed the Convention on 15 June 2011.

(4)The Union and Montenegro deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012                              and 2 July 2012, respectively. As a consequence, in application of Article 10(3) of the Convention, the Convention entered                              into force in relation to the Union and Montenegro on 1 May 2012 and on 1 September 2012, 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 Stabilisation and Association Council 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 Stabilisation and Association Council should therefore be based on the attached draft                              decision,

HAS ADOPTED THIS DECISION:

# Article 1U.K.

The position to be adopted on behalf of the European Union within the Stabilisation and Association Council established by                     the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and                     the Republic of Montenegro, 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 Stabilisation and Association Council attached to this Decision.                  

Minor changes to the draft decision of the Stabilisation and Association Council may be agreed to by the representatives of                     the Union in the Stabilisation and Association Council without further decision of the Council.                  

# Article 2U.K.

The decision of the Stabilisation and Association Council shall be published in the *Official Journal of the European Union*.                  

# Article 3U.K.

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

Done at Luxembourg, 9 October 2014.

*For the Council*                            

*The President*                            

A. Alfano                            

U.K.

DRAFT

# DECISION No ... OF THE EU-MONTENEGRO STABILISATION AND ASSOCIATION COUNCIL

# of

# replacing Protocol 3 to the Stabilisation and Association Agreement between the European Communities and their Member States,                              of the one part, and the Republic of Montenegro, of the other part, concerning the definition of the concept of ‘originating                              products’ and methods of administrative cooperation                           

THE EU-MONTENEGRO STABILISATION AND ASSOCIATION COUNCIL,

Having regard to the Stabilisation and Association Agreement between the European Communities and their Member States, of                                 the one part, and the Republic of Montenegro, of the other part, signed in Luxembourg on 15 October 2007(3), and in particular Article 44 thereof,                              

Having regard to Protocol 3 to the Stabilisation and Association Agreement between the European Communities and their Member                                 States, of the one part, and the Republic of Montenegro, of the other part,concerning the definition of the concept of ‘originating                                 products’ and methods of administrative cooperation,                              

Whereas:

(1)Article 44 of the Stabilisation and Association Agreement between the European Communities and their Member States, of the                                    one part, and the Republic of Montenegro, of the other part (‘the Agreement’) refers to Protocol 3 concerning the definition                                    of the concept of ‘originating products’ and methods of administrative cooperation (‘Protocol 3’), which lays down the rules                                    of origin and provides for cumulation of origin between the Union, Montenegro, Turkey and any country or territory participating                                    in the Union's Stabilisation and Association Process.

(2)Article 39 of Protocol 3 provides that the Stabilisation and Association Council established by Article 119 of the Agreement                                    may decide to amend the provisions of that protocol.

(3)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin(4) (‘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. Montenegro and other participants to the Stabilisation and Association Process from the Western                                    Balkans were invited to join the system of pan-European diagonal cumulation of origin in the Thessaloniki agenda, endorsed                                    by the European Council of June 2003. They were invited to join the Convention by a decision of the Euro-Mediterranean Ministerial                                    Conference of October 2007.

(4)The Union and Montenegro signed the Convention on 15 June 2011.

(5)The Union and Montenegro deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012                                    and 2 July 2012, respectively. Consequently, in application of Article 10(3) of the Convention, the Convention entered into                                    force in relation to the Union and Montenegro on 1 May 2012 and on 1 September 2012, respectively.

(6)Where the transition towards the Convention is not simultaneous for all Contracting Parties within the cumulation zone, it                                    should not lead to any less favourable situation than previously under Protocol 3.

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

HAS ADOPTED THIS DECISION:

# Article 1U.K.

Protocol 3 to the Stabilisation and Association Agreement between the European Communities and their Member States, of the                           one part, and the Republic of Montenegro, of the other part, concerning the definition of the concept of ‘originating products’                           and methods of administrative cooperation is replaced by the text set out in the Annex to this Decision.                        

# Article 2U.K.

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

It shall apply from 1 September 2014.

Done at

*For the Stabilisation and Association Council*                                  

*The President*                                  

## ANNEXU.K.Protocol 3concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

### Article 1U.K.Applicable rules of origin

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(5) (‘the Convention’) shall apply.                        

All references to the ‘relevant agreement’ in Appendix I and in the relevant provisions of Appendix II to the Convention shall                           be construed so as to mean this Agreement.                        

### Article 2U.K.Dispute settlement

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 this verification, they shall be submitted to the Stabilisation and Association Council.                        

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 3U.K.Amendments to the Protocol

The Stabilisation and Association Council may decide to amend the provisions of this Protocol.

### Article 4U.K.Withdrawal from the Convention

1.Should either the European Union or Montenegro 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 Montenegro 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 Montenegro only.                        

### Article 5U.K.Transitional provisions — cumulation

1.Notwithstanding Article 3 of Appendix I to the Convention, the rules on cumulation provided for in Articles 3 and 4 of Protocol                              3 to this Agreement, as adopted by the European Union and Montenegro on concluding the Agreement(6), shall continue to apply between the Parties to this Agreement until the Convention has become applicable for all Contracting                              Parties to the Convention listed in those Articles.                        

2.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 108, 29.4.2010, p. 3.                           

2

OJ L 54, 26.2.2013, p. 4.                           

3

OJ L 108, 29.4.2010, p. 3.                           

4

OJ L 54, 26.2.2013, p. 4.                           

5

OJ L 54, 26.2.2013, p. 4.                           

6

OJ L 108, 29.4.2010, p. 3.