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AGREEMENT

between the European Economic Community and the Swiss Confederation on the simplification of inspections and formalities in respect of the carriage of goods

PREAMBLE

THE CONTRACTING PARTIES,

CONSIDERING the free trade agreements concluded between the European Economic Community and the Swiss Confederation;

CONSIDERING the Joint Declaration adopted in Luxembourg on 9 April 1984 by Ministers of the EFTA countries and the Member States of the Community and the Commission of the European Communities, and the statement adopted in Brussels on 2 February 1988 by Ministers of the EFTA countries and Ministers of the Member States of the Community with the aim of creating a dynamic European economic area of benefit their countries;

CONSIDERING that the Contracting Parties have ratified the International Convention on the Harmonization of Frontier Controls of Goods;

BEARING in mind the need to facilitate the passage of goods at frontiers between the European Economic Community and the Swiss Confederation;

CONSIDERING that such facilitation should be progressively developed in accordance with the achievement of the European economic area;

ACKNOWLEDGING that the conditions under which inspections and formalities are carried out may be extensively harmonized without impairing their purpose, their proper implementation or their effectiveness;

CONSIDERING that no provision of this Agreement may be interpreted as exempting the Contracting Parties from their obligations under other international agreements,

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:

CHAPTER I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Agreement:

(a) 'inspections' shall mean any operation whereby the customs authorities or any other inspection authority carries out the physical examination or visual inspection of the means of transport or of the goods themselves in order to ascertain that their nature, origin, condition, quantity and value are in conformity with the particulars contained in the documents produced;

(b) 'formalities' shall mean any formality to which the authorities subject a trader and which consists in the production or examination of documents, certificates accompanying the goods, or other particulars, irrespective of the method or medium employed, relating to the goods or the means of transport.

Article 2

Scope

1. Without prejudice to special provisions in force under agreement concluded between the European Economic Community, hereinafter called 'the Community', and the Swiss Confederation, this Agreement shall apply to inspections and formalities concerning the carriage of goods which have to cross a frontier between Switzerland and the Community, hereinafter referred to as the 'Contracting Parties'.

2. This Agreement shall not apply to inspections or formalities:

- in respect of ships and aircraft as means of transport; however, it shall apply to vehicles and goods carried by the said means of transport;

- required for the issue of health or plant health certificates in the country of origin of the goods or the country whence they were consigned.

Article 3

Territories covered

1. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down by that Treaty and, on the other hand, to the territory of the Swiss Confederation.

2. This Agreement shall also apply to the Principality of Liechtenstein for as long as that Principality remains bound to the Swiss Confederation by a customs union treaty. CHAPTER II

PROCEDURES

Article 4

Random checks and formalities

1. Save as otherwise expressly provided in this Agreement, the Contracting Parties shall take the necessary measures to ensure that:

- the various inspections and formalities provided for in Article 2 (1) are carried out with the minimum delay necessary and, in so far as possible, in one place,

- inspections are carried out by means of random checks except in duly justified circumstances.

2. For the purposes of implementing the second indent of paragraph 1, the basis for carrying out random checks shall be the total number of consignments passing through a frontier post and presented to a customs office or other inspection authority during a given period, and not the total number of goods making up each consignment.

3. The Contracting Parties shall facilitate, at the places of departure and destination of goods, the use of simplified procedures and data-processing and data-transmission techniques for the purposes of the export, transit and import of goods.

4. The Contracting Parties shall endeavour to deploy customs offices, including those in the interior of their territory, in such a way as best to take account of the requirements of commercial operators.

Article 5

Veterinary rules

In areas relating to the protection of human and animal health and the protection of animals, implementation of the principles set out in Articles 4, 8 and 14 ans the rules governing the fees to be charged in respect of the formalities and inspections carried out shall be the subject of specific recommendations to be adopted in accordance with Article 17 of this Agreement.

Article 6

Plant health rules

1. Plant health inspections of imports shall take the form only of random checks and sample testing except in duty justified circumstances. Such inspections shall be carried out at either the place of destination of the goods another place designated within the respective territories on condition that the itinerary of the goods is affected to the least possible extent.

2. The rules governing the carrying out of identify checks on imports in relation to goods covered by plant health legislation shall be determined by means of decisions and the measures pertaining to the fees to be charged in respect of plant health formalities and inspections shall be the subject of recommendations made by the joint committee in accordance with Article 17 of this Agreement.

3. Paragraphs 1 and 2 shall not apply to goods of other than Community or Swiss origin except in cases where, by their nature, they present no plant health risk or in cases where they have undergone a plant health inspection on entering the territory of the respective Contracting Parties, and are found, at the time of such inspections, to meet the requirements relating to plant health laid down in the legislation of each Contracting Party.

4. Where a Contracting Party considers that there is imminent danger of the introduction or spread of harmful organisms in its territory, it may take such temporary measures as are necessary to protect itself against that danger. The Contracting Parties shall notify one another forthwith of the measures taken and of the reasons which made them necessary.

Article 7

Delegation of powers

The Contracting Parties shall see to it that, by express delegation by the competent authorities and on their behalf, one of the other services represented, and preferably the customs service, may carry out inspections for which those authorities are responsible and, in so far as such inspections relate to the requirement to produce the necessary documents, checks on the validity and authenticity thereof and on the identity of the goods declared in such documents. In that event, the authorities concerned shall ensure that the means required for carrying out such checks are made available.

Article 8

Recognition of inspections and documents

For the purposes of implementing this Agreement and without prejudice to the possibility of carrying out random checks, the Contracting Parties shall, in the event of goods being imported or entering in transit, recognize the inspections carried out and the documents drawn up by the competent authorities of the other Contracting Party which certify that the goods comply with the legal requirements of the country of import or equivalent requirements in the country of export.

Article 9

Opening hours of frontier posts

1. Where the volume of traffic so warrants, the Contracting Parties shall see to it that:

(a) frontier posts are open, except when traffic is prohibited, so that: - frontiers can be crossed 24 hours a day with the corresponding inspections and formalities in respect of goods placed under a customs transit procedure, their means of transport and vehicles travelling unladen, save where frontier inspection is necessary in order to prevent the spread of disease or to protect animals,

- inspections and formalities relating to the movement of means of transport and goods which are not moving under a customs transit procedure may be performed from Monday to Fridy during an uninterrupted period of at least six hours, unless those days are public holidays;

(b) as regards vehicles and goods transported by air, the periods referred to in the second indent of subparagraph (a) shall be adapted in such a way as to meet actual needs and for that purpose shall be split or extended if necessary.

2. Where general compliance with the period referred to in the second indent of paragraph 1 (a) and in paragraph 1 (b) poses problems for veterinary services, the Contracting Parties shall see to it that, subject to at least 12 hours' notice being given by the carrier, a veterinary expert is available during those periods; in the case of the transport of live animals, however, this notice may be increased to 18 hours.

3. Where several frontier posts are situated in the immediate vicinity of one and the same frontier zone, the Contracting Parties may jointly agree, for certain of such posts, to derogate from paragraph 1 provided that the other posts in that zone are able to clear goods and vehicles in accordance with that paragraph.

4. As regards the frontier posts and customs offices and services referred to in paragraph 1, and under the conditions laid down by the Contracting Parties, the competent authorities shall, if specifically requested during business hours and for sound reasons, provide for inspections and formalities to be carried out, as an exception, outside business hours, on condition that, where relevant, payment is made for services so rendered.

Article 10

Express lanes

The Contracting Parties shall endeavour to establish at frontier posts, where technically possible and justified by the volume of traffic, express lanes reserved for goods placed under a customs transit procedure, their means of transport, vehicles travelling unladen and all goods subject to such inspections and formalities as do not exceed those required in respect of goods placed under a transit procedure.

CHAPTER III

COOPERATION

Article 11

Cooperation between authorities

1. In order to facilitate the crossing of frontiers, the Contracting Parties shall take the measures necessary to extend cooperation at both national and regional or local level between the authorities responsible for the organization of inspections and between the various departments carrying out inspections and formalities on either side of such frontiers.

2. Each Contracting Party shall, in so far as it is concerned, see to it that persons engaged in trade covered by this Agreement can rapidly inform the competent authorities of any problems encountered when crossing frontiers.

3. The cooperation referred to in paragraph 1 shall cover in particular:

(a) the arrangement of frontier posts in such a way as to meet traffic requirements;

(b) the conversion of frontier offices into juxtaposed inspection offices, where possible;

(c) the harmonization of the responsibilities of the frontier posts and offices situated on either side of the frontier;

(d) the seeking of appropriate solutions to any problems reported.

4. The Contracting Parties shall cooperate in order to harmonize the business hours of the various departments carrying out inspections and formalities on either side of the frontier.

Article 12

Notification of new inspections and formalities

Where a Contracting Party intends to introduce a new inspection or formality, it shall inform the other Contracting Party thereof.

The Contracting Party concerned shall ensure that the measures taken to facilitate the crossing of frontiers are not rendered inoperative through the application of such new inspections or formalities.

Article 13

Free flow of traffic

1. The Contracting Parties shall take the measures necessary to ensure that waiting time caused by the various inspections and formalities does not exceed the time required for their proper completion. To that end, they shall organize the business hours of the departments which are to carry out inspections and formalities, the staff available and the practical arrangements for processing goods and documents associated with the carrying out of inspections and formalities in such a way as to reduce waiting time in the flow of traffic to the fullest possible extent.

2. The competent authorities of countries in whose territory serious disruption in regard to the carriage of goods occurs, which is likely to jeopardize the objectives of simplifying and expediting the crossing of frontiers, shall immediately inform the competent authorities of the other countries affected by such disruption.

3. The competent authorities of each country so affected shall immediately take appropriate measures to ensure, as far as possible, the free flow of traffic. The measures shall be notified to the joint committee which shall, where appropriate, meet in emergency session at the request of a Contracting Party to discuss these measures.

Article 14

Administrative assistance

1. In order to ensure the smooth functioning of trade between the Contracting Parties and to facilitate the detection of any irregularity or infringement, the customs authorities of the countries concerned shall, upon request, or, where they consider that this would be in the interests of the other Contracting Party, on their own initiative, provide each other with all available information (including administrative findings and reports) of interest for the proper implementation of this Agreement.

2. Assistance may be withheld or denied, in whole or in part, where the requested country considers that the assistance would be prejudicial to its security, law and order or other essential interests, or would violate an industrial, commercial or professional secret.

3. If assistance is withheld or denied, the requesting country shall be notified of the decision and the reasons therefor without delay.

4. If the customs authority of a country requests assistance which it would not be able to give if requested, if shall draw attention to that fact in its request. Compliance with such a request shall be at the discretion of the customs authority to which the request is made.

5. Information obtained in accordance with paragraph 1 shall be used solely for the purposes of this Agreement and shall be accorded the same protection by the recipient country as is given to information of like nature under the national law of that country. Such information shall be used for other purposes only with the written consent of the customs authority which furnished it and subject to any restrictions laid down by that authority.

CHAPTER IV

ADMINISTRATIVE BODIES

Article 15

Joint committee

1. A joint committee is hereby established on which the Contracting Parties to this Agreement shall be represented.

2. The joint committee shall act by mutual agreement.

3. The joint committee shall meet whenever necessary but at least once a year. Any Contracting Party may request that a meeting be held.

4. The joint committee shall adopt its own rules of procedure which shall contain, inter alia, provisions for convening meetings and for appointing its chairman and his term of office.

5. The joint committee may decide to set up any subcommittee or working party that can assist it in carrying out its duties.

Article 16

Consultation groups

1. The competent authorities of the countries concerned may set up any consultation group responsible for dealing with questions of a practical, technical or organizational nature at regional or local level.

2. Such consultation groups shall meet whenever necessary at the request of the competent authorities of a country. The joint committee shall be kept regularly informed of their deliberations by the Contracting Parties responsible for them.

Article 17

Powers of the joint committee

1. It shall be the responsibility of the joint committee to administer this Agreement and ensure its proper implementation. For that purpose it shall make recommendations and take decisions.

2. In addition to the matters expressly provided for in this Agreement it shall, by means of decisions, adopt implementing measures of a technical and administrative nature with a view to reducing inspections and formalities.

3. Decisions shall be implemented by the Contracting Parties in accordance with their own rules.

4. For the purposes of the proper implementation of this Agreement, the joint committee shall be informed at regular intervals by the Contracting Parties of experience gained in its implementation and those Parties shall, at the request of any one of them, consult one another within the joint committee. Article 18

Settlement of disputes

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall be referred to the joint committee which shall seek an amicable settlement thereof.

CHAPTER V

SUNDRY AND FINAL PROVISIONS

Article 19

Payment facilities

The Contracting Parties shall see to it that any sums payable in respect of the inspections and formalities applied to trade can also be paid by means of guaranteed or certified international cheques, expressed in the currency of the country in which sum sums are due.

Article 20

Implementation of the Agreement

Each Contracting Party shall take appropriate measures to ensure that the provisions of this Agreement are effectively and harmoniously applied, taking into acount the need to make it easier for goods to cross frontiers and the need to achieve mutually satisfactory solutions of any difficulties arising out of the application of the said provisions.

Article 21

Denunciation

Any Contracting Party may denounce this Agreement by so notifying the other Contracting Party. The Agreement shall lapse 12 months following the date of such notification.

Article 22

Ratification

1. This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 July 1991 on conditions that the Contracting Parties have notified one another prior to that date that the requisite procedures have been completed.

2. If this Agreement does not enter into force on 1 July 1990, it shall enter into force on the first day of the second month following the date on which the Contracting Parties notify one another that the requisite procedures have been completed.

Article 23

Languages

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish languagesm all texts being equally authentic.

Done at . . . . ., . . . . .

For the Swiss Confederation

For the European Economic Community