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,

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 25000 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:

- the Community authorities shall inform Russia by the 28th of each month of the import authorisations issued during the preceding month,

- the Russian authorities shall inform the Community by the 28th of each month of the export licences issued during the preceding month.

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:

(a) where there is sufficient evidence that products covered by this Agreement originating in Russia have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits established under the Agreement;

(b) where sufficient evidence shows false declaration concerning quantities description or classification has occurred, to refuse to import the products in question.

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:

- any request for consultations shall be notified in writing to the other Party,

- where appropriate, the request shall be followed within a reasonable period by a report setting out the reasons for the consultations,

- consultations shall begin within one month from the date of the request,

- consultations shall endeavour to arrive at a mutually acceptable result within one month of their commencement, unless the period is extended by agreement between the Parties.

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

+++++ TIFF +++++

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

+++++ TIFF +++++

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

+++++ TIFF +++++

[1] OJ L 327, 28.11.1997, p. 3.

--------------------------------------------------

ANNEX I

SA Flat-rolled products

SA1. Coils

7208100000

7208250000

7208260000

7208270000

7208360000

7208370010

7208370090

7208380010

7208380090

7208390010

7208390090

7211140010

7211190010

7219110000

7219121000

7219129000

7219131000

7219139000

7219141000

7219149000

7225200010

7225301000

7225309000

SA2. Heavy Plate

7208400010

7208512010

7208512091

7208512093

7208512097

7208512098

7208519110

7208519190

7208519810

7208519891

7208519899

7208529110

7208529190

7208521000

7208529900

7208531000

7211130000

SA3. Other flat-rolled products

7208400090

7208539000

7208540000

7208900010

7209150000

7209161000

7209169000

7209171000

7209179000

7209181000

7209189100

7209189900

7209250000

7209261000

7209269000

7209271000

7209279000

7209281000

7209289000

7209900010

7210110010

7210122010

7210128010

7210200010

7210300010

7210410010

7210490010

7210500010

7210610010

7210690010

7210701010

7210708010

7210903010

7210904010

7210908091

7211140090

7211190090

7211233091

7211238091

7211290010

7211900011

7212101000

7212109011

7212200011

7212300011

7212402010

7212402091

7212408011

7212502011

7212503011

7212504011

7212506111

7212506911

7212509013

7212600011

7212600091

7219211000

7219219000

7219221000

7219229000

7219230000

7219240000

7219310000

7219321000

7219329000

7219331000

7219339000

7219341000

7219349000

7219351000

7219359000

7225401290

7225409000

SA4. Alloyed products

7226200010

7226912000

7226919100

7226919900

7226990010

SA5. Alloyed quarto plates

7225401230

7225404000

7225406000

7225990010

SA6. Alloyed cold rolled and coated sheets

7225500000

7225910010

7225920010

7226920010

SB Long products

SB1. Beams

7207198010

7207208010

7216311010

7216311090

7216319000

7216321100

7216321900

7216329100

7216329900

7216331000

7216339000

SB2. Wire rod

7213100000

7213200000

7213911000

7213912000

7213914100

7213914900

7213917000

7213919000

7213991000

7213999000

7221001000

7221009000

7227100000

7227200000

7227901000

7227905000

7227909500

SB3. Other longs

7207191210

7207191291

7207191299

7207205200

7214200000

7214300000

7214911000

7214919000

7214991000

7214993100

7214993900

7214995000

7214997110

7214997190

7214997910

7214997990

7214999510

7214999590

7215900010

7216100000

7216210000

7216220000

7216401000

7216409000

7216501000

7216509100

7216509900

7216990010

7218992000

7222111100

7222111900

7222118110

7222118190

7222118910

7222118990

7222191000

7222199000

7222309710

7222401000

7222409010

7224900289

7224903100

7224903800

7228102000

7228201010

7228201091

7228209110

7228209190

7228302000

7228304100

7228304900

7228306100

7228306900

7228307000

7228308900

7228602010

7228608010

7228701000

7228709010

7228800010

7228800090

7301100000

--------------------------------------------------

ANNEX II

QUANTITATIVE LIMITS

Note: SA and SB are product categories.

SA1 to SA6 and SB1 to SB3 are product groups.

(tonnes) |

Products | 2005 | 2006 |

SA. Flat products

SA1. Coils | 908268 | 930975 |

SA2. Heavy plate | 190593 | 195358 |

SA3. Other flat products | 389741 | 399485 |

SA4. Alloyed products | 97080 | 99507 |

SA5. Alloyed quarto plates | 21509 | 22047 |

SA6. Alloyed cold-rolled and coated sheets | 100095 | 102597 |

SB. Long products

SB1. Beams | 44948 | 46072 |

SB2. Wire rod | 172676 | 176993 |

SB3. Other long products | 292376 | 299685 |

--------------------------------------------------