# 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 former Yugoslav Republic of Macedonia, of the other part, as regards the replacement            of Protocol 4 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 (2014/734/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 former Yugoslav Republic of Macedonia, of the other part, as regards the replacement of Protocol 4 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                     

# (2014/734/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 4 to the Stabilisation and Association Agreement between the European Communities and their Member States, of the                              one part, and the former Yugoslav Republic of Macedonia, of the other part(1) (‘the Agreement’) concerns the definition of the concept of ‘originating products’ and methods of administrative cooperation,                              (‘Protocol 4’).

(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 to the Convention. The former Yugoslav Republic of Macedonia 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 the former Yugoslav Republic of Macedonia signed the Convention on 15 June 2011.

(4)The Union and the former Yugoslav Republic of Macedonia deposited their instruments of acceptance with the depositary of the                              Convention on 26 March 2012 and 14 June 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 the former Yugoslav Republic of Macedonia on 1 May 2012 and                              on 1 August 2012 respectively.

(5)Article 6 of the Convention provides that each contracting party to the Convention 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 4 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.

1.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 former Yugoslav Republic of Macedonia, of the other part, as regards the replacement of Protocol 4 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.                  

2.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-FORMER YUGOSLAV REPUBLIC OF MACEDONIA STABILISATION AND ASSOCIATION COUNCIL

# of

# replacing Protocol 4 to the Stabilisation and Association Agreement between the European Communities and their Member States,                              of the one part, and the former Yugoslav Republic of Macedonia, of the other part, concerning the definition of the concept                              of ‘originating products’ and methods of administrative cooperation                           

THE EU-FORMER YUGOSLAV REPUBLIC OF MACEDONIA 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 former Yugoslav Republic of Macedonia, of the other part(3), and in particular Article 40 thereof,                              

Having regard to Protocol 4 to the Stabilisation and Association Agreement between the European Communities and their Member                                 States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, concerning the definition of the                                 concept of ‘originating products’ and methods of administrative cooperation,                              

Whereas:

(1)Article 40 of the Stabilisation and Association Agreement between the European Communities and their Member States, of the                                    one part, and the former Yugoslav Republic of Macedonia, of the other part (‘the Agreement’)refers to Protocol 4 to the Agreement                                    (‘Protocol 4’) which lays down the rules of origin and provides for cumulation of origin between the Union, the former Yugoslav                                    Republic of Macedonia, Turkey and any country or territory participating in the Union's Stabilisation and Association Process.

(2)Article 39 of Protocol 4 provides that the Stabilisation and Association Council provided for in Article 108 of the Agreement                                    may decide to amend the provisions of Protocol 4.

(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. The former Yugoslav Republic of Macedonia 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 the former Yugoslav Republic of Macedonia signed the Convention on 15 June 2011.

(5)The Union and the former Yugoslav Republic of Macedonia deposited their instruments of acceptance with the depositary of the                                    Convention on 26 March 2012 and 14 June 2012, respectively. Consequently, in application of Article 10(3) of the Convention,                                    the Convention entered into force in relation to the European Union and the former Yugoslav Republic of Macedonia on 1 May                                    2012 and on 1 August 2012, respectively.

(6)Where the transition towards the Convention is not simultaneous for all contracting parties to the Convention within the cumulation                                    zone, it should not lead to any less favourable situation than previously under Protocol 4.

(7)Protocol 4 should therefore be replaced by a new protocol making reference to the Convention,

HAS ADOPTED THIS DECISION:

# Article 1U.K.

Protocol 4 to the Stabilisation and Association Agreement between the European Communities and their Member States, of the                           one part, and the former Yugoslav Republic of Macedonia, 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 2U.K.

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

It shall apply from ....

Done at ...,

*For the EU-former Yugoslav Republic of Macedonia Stabilisation and Association Council*                                  

*The President*                                  

## ANNEXU.K.Protocol 4concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

### Article 1U.K.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(5) (‘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 2U.K.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 Stabilisation and Association Council.                        

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 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 the former Yugoslav Republic of Macedonia 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                              former Yugoslav Republic of Macedonia 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 former Yugoslav Republic of Macedonia 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 this                              Protocol, as amended by the Protocol to the Stabilisation and Association Agreement between the European Communities and their                              Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, to take account of the accession                              of the Republic of Bulgaria and Romania to the European Union(6), shall continue to apply between the European Union and the former Yugoslav Republic of Macedonia until the Convention has                              entered into application with relation to all Contracting Parties listed in Articles 3 and 4 of this Protocol.                        

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 84, 20.3.2004, p. 13.                           

2

OJ L 54, 26.2.2013, p. 4.                           

3

OJ L 84, 20.3.2004, p. 13.                           

4

OJ L 54, 26.2.2013, p. 4.                           

5

OJ L 54, 26.2.2013, p. 4.                           

6

OJ L 99, 10.4.2008, p. 2.