PROTOCOL for the adaptation of trade aspects of the Europe Agreement between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the results of the agricultural negotiations of the Uruguay Round, including the improvements of the existing preferential regime

THE EUROPEAN COMMUNITY, hereinafter referred to as 'the Community`,

of the one part, and

THE GOVERNMENT OF THE CZECH REPUBLIC,

of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, hereinafter referred to as 'the Europe Agreement`, was signed in Brussels on 4 October 1993 and entered into force on 1 February 1995;

WHEREAS the Republic of Austria, the Republic of Finland and the Kingdom of Sweden joined the European Union on 1 January 1995;

WHEREAS, under the terms of Articles 76, 102 and 128 of the 1994 Act of Accession, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden have to apply, as of 1 January 1995, the provisions of the preferential agreements concluded by the Community with certain third countries, among them the Czech Republic;

WHEREAS the Community has adopted as from 1 January 1995 transitional measures in the form of autonomous tariff quotas taking into account the preferential tariff concessions applied by the Republic of Austria, the Republic of Finland and the Kingdom of Sweden towards the Czech Republic, and whereas the Czech Republic has adopted as from 1 January 1995 transitional measures in the form of tariff quotas taking into account the preferential tariff regime applied by the Czech Republic towards the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, notably concerning agricultural and processed agricultural products;

WHEREAS the commitments of the Community and the Czech Republic in the framework of the negotiations of the Uruguay Round require amendments of the import tariff regimes in the Community and the Czech Republic, in particular those concerning agricultural and processed agricultural products;

WHEREAS the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the implementation of the results of the Uruguay Round are likely to affect the bilateral concessions in the framework of the Europe Agreement, and it is therefore necessary to adapt the Agreement through a protocol for the adaptation of trade aspects of this Agreement;

WHEREAS the Council decided by Decision 95/131/EC (1) to apply on a provisional basis from 1 January 1995 the bilateral agreement which was negotiated by the Commission on behalf of the Community, amending the Additional Protocol to the Europe Agreement on trade in textile products between the European Community and the Czech Republic to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union;

WHEREAS the Council decided by Decision 96/224/EC (2) to apply on a provisional basis from 1 January 1996 the bilateral agreement which was negotiated by the Commission on behalf of the Community, following the review and amendment of the Additional Protocol to the Europe Agreement on trade in textile products between the European Community and the Czech Republic;

WHEREAS the Community's tariff concessions for fish and fishery products originating in the Czech Republic take account of the enlargement of the Community with the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden as well as the quantities set out in the Exchange of Letters of 22 September 1994,

HAVE DECIDED to determine by mutual agreement the adaptations to be made on trade provisions of the Agreement following the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, of the one part, and the entry into force of the results of the Uruguay Round in the agricultural field, of the other part, and to this end have designated as their Plenipotentiaries:

THE EUROPEAN COMMUNITY:

Manfred SCHEICH,

Ambassador,

Permanent Representative of the Republic of Austria,

Chairman of the Permanent Representatives Committee,

Günther BURGHARDT,

Director-General of the Directorate-General for External Political Relations of the Commission of the European Communities,

THE GOVERNMENT OF THE CZECH REPUBLIC:

Josef KREUTER,

Ambassador,

Head of the Mission of the Czech Republic to the European Union,

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Article 1

The Additional Protocol to the Europe Agreement on trade in textile products shall be amended as follows:

1. The first subparagraph of Article 2(3) shall be replaced by the following:

'3. The origin of products covered by this Protocol shall be determined in accordance with the rules of non-preferential origin in force in the Community.`

2. Annex II shall be replaced by the text in Annex A to this Protocol.

3. Article 2(3) of Appendix A shall be replaced by the following:

'3. The certificate of origin referred to in paragraph 1 shall not be required for the importation of goods covered by a movement certificate EUR.1 or a form EUR.2 issued in conformity with Protocol 4 to the Europe Agreement in cases where those documents clearly establish that the Czech Republic is to be considered as the country of origin on the basis of the rules on non-preferential origin in force in the Community.`

4. The second indent of the second subparagraph of Article 14(2) of Appendix A, shall be amended as follows:

'- two letters identifying the intended Member State of customs clearance as follows:

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5. The Annex to Appendix A setting out the model of the certificate of origin shall be replaced by the text in Annex B to this Protocol.

6. The Annex to Appendix A setting out the model of the export licence shall be replaced by the text in Annex C to this Protocol.

7. The Annex to Appendix B shall be replaced by the text in Annex D to this Protocol.

8. The Annex to Appendix C shall be replaced by the text in Annex E to this Protocol.

Article 2

With regard to processed agricultural products:

1. The text of Protocol 3 to the Europe Agreement shall be replaced by the text in Annex F to this Protocol.

2. Article 9(1) of the Europe Agreement shall be replaced by the following:

'1. The provisions of this Chapter shall apply to products originating in the Community and the Czech Republic listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I and Protocol 3.`

3. Article 19(2) of the Europe Agreement shall be replaced by the following:

'2. "Agricultural products" means the products listed in Chapters 1 to 24 of the Combined Nomenclature and the products listed in Annex I and Protocol 3, but excluding fishery products as defined by Regulation (EEC) No 3678/91.`

Article 3

With regard to agricultural products:

1. Annexes XIa and XIb and Annex XII to the Europe Agreement shall be replaced by the texts in Annexes G and H to this Protocol respectively.

2. Article 21(2) and (3) of the Europe Agreement shall be replaced by the following paragraphs:

'2. The preferential regime granted to imports into the Community of products originating in the Czech Republic is set out in Annex XI.

3. The preferential regime granted to imports into the Czech Republic of products originating in the Community is set out in Annex XII.`

3. Article 21(4) of the Europe Agreement shall be repealed.

4. Annexes XIV to the Europe Agreement shall be repealed.

Article 4

With regard to fisheries:

1. Annex XV to the Europe Agreement shall be replaced by the text in Annex I to this Protocol.

2. The first sentence of Article 24 of the Europe Agreement shall be replaced by the following:

'The preferential trade regime granted to fishery products originating in the Czech Republic is laid down in Annex XIII.`

3. Annexes XVI and XVII shall become Annexes XIV and XV.

Article 5

The Annexes shall form an integral part of this Protocol. This Protocol shall form part of the Europe Agreement.

Article 6

This Protocol shall be approved by the Community and the Government of the Czech Republic in conformity with their own procedures. The parties shall take the appropriate measures for the implementation of this Protocol.

Article 7

This Protocol shall enter into force on the first day of the second month following the Contracting Parties' notification of the accomplishment of the corresponding procedures according to Article 6.

Article 8

This Protocol shall be drawn up in two copies in the following languages: Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Czech, each of these texts being equally authentic.

Hecho en Bruselas, el veintisiete de octubre de mil novecientos noventa y ocho.

Udfærdiget i Bruxelles den syvogtyvende oktober nitten hundrede og otteoghalvfems.

Geschehen zu Brüssel am siebenundzwanzigsten Oktober neunzehnhundertachtundneunzig.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò åßêïóé åðôÜ Ïêôùâñßïõ ÷ßëéá åííéáêüóéá åíåíÞíôá ïêôþ.

Done at Brussels on the twenty-seventh day of October in the year one thousand nine hundred and ninety-eight.

Fait à Bruxelles, le vingt-sept octobre mil neuf cent quatre-vingt-dix-huit.

Fatto a Bruxelles, addì ventisette ottobre millenovecentonovantotto.

Gedaan te Brussel, de zevenentwintigste oktober negentienhonderd achtennegentig.

Feito em Bruxelas, em vinte e sete de Outubro de mil novecentos e noventa e oito.

Tehty Brysselissä kahdentenakymmenentenäseitsemäntenä päivänä lokakuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkahdeksan.

Som skedde i Bryssel den tjugosjunde oktober nittonhundranittioåtta.

Dáno v Bruselu dvacátého sedmého dne m Oesíce Oríjna tisíc dev Oet set devadesát osm.

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Ãéá ôçí ÅõñùðáúêÞ Êïéíüôçôá

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

>REFERENCE TO A GRAPHIC>

Za vládu OCeské republiky

>REFERENCE TO A GRAPHIC>

(1) OJ L 94, 26.4.1995, p. 1.

(2) OJ L 81, 30.3.1996, p. 310.

ANNEX A

'ANNEX II

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ANNEX B

'Annex referred to in Article 2(1) of Appendix A

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ANNEX D

'Annex to Appendix B

(The full product descriptions of the categories listed in this Annex are to be found in Annex I)

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ANNEX E

'Specimen referred to in Appendix C

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ANNEX F

'PROTOCOL 3

on trade between the Czech Republic and the Community in processed agricultural products

Article 1

1. The Community and the Czech Republic shall apply to processed agricultural products the duties listed in Annex I and Annex II respectively in accordance with the conditions mentioned therein, whether limited by quota or not.

2. The Association Council may decide:

- the extension of the list of processed agricultural products under this Protocol,

- the amendment of the duties mentioned in the Annexes,

- the increase or abolition of tariff quotas.

3. The Association Council may replace the duties established by this Protocol by a regime established on the basis of the respective market prices of the Community and the Czech Republic of the agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol. It will establish the list of goods subject to these amounts and as a consequence, the list of basic products; to this end, it will decide the general rules of application.

Article 2

The duties applied conforming to Article 1 may be reduced by decision of the Association Council:

- when in trade between the Community and the Czech Republic the duties applied to the basic products are reduced, or

- in response to reductions resulting from mutual concessions relating to processed agricultural products.

The reductions provided for under the first indent of the first subparagraph will be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deducted from the duties applied to these basic agricultural products.

Article 3

The Community and the Czech Republic will inform each other of the administrative arrangements adopted for the products covered by this Protocol.

These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

ANNEX I

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ANNEX II

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ANNEX G

'ANNEX XI

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APPENDIX TO ANNEX XI

Minimum import price arrangement for certain soft fruit for processing

1. Minimum import prices are fixed as follows for the following products for processing originating in the Czech Republic:>TABLE>

2. The minimum import prices, as set out in Article 1, will be respected on a consignment by consignment basis. In the case of a customs declaration value being lower than the minimum import price, a countervailing duty will be charged equal to the difference between the minimum import price and the customs declaration value.

3. If the import prices of a given product covered by this Appendix show a trend suggesting that the prices could go below the level of the minimum import prices in the immediate future, the European Commission will inform the Czech Republic authorities in order to enable them to correct the situation.

4. At the request of either the Community or the Czech Republic, the Association Committee shall examine the functioning of the system or the revision of the level of the minimum import prices. If appropriate, the Association Committee shall take the necessary decisions.

5. To encourage and promote the development of trade and for the mutual benefit of all parties concerned, a consultation meeting will be organised three months before the beginning of each marketing year in the European Community. This consultation meeting will take place between the European Commission and the interested European producers' organisations for the products concerned, on the one part and the authorities', producers' and exporters' organisations of all the associated exporting countries, on the other part.

During this consultation meeting, the market situation for soft fruit including, in particular, forecasts for production, stock situation, price evolution and possible market development, as well as possibilities to adapt supply to demand, will be discussed.`

ANNEX H

'ANNEX XII

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ANNEX I

'ANNEX XIII

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EXCHANGE OF LETTERS between the Community and the Government of the Czech Republic regarding entry prices applied to the import of fruit and vegetables into the Community

A. Letter from the Czech Republic

Sir,

The Agreement on the adaptation of the agricultural part of the Europe Agreement following the implementation of the Uruguay Round and the enlargement of the European Community signed today between the European Community and the Czech Republic does not contain any provisions regarding the entry price regime applied to the import of fruit and vegetables into the Community.

It has been agreed that the Parties will continue consultations on this sector in order to find a solution. Taking into account, inter alia, the experience of the last marketing years, the solution should allow the continuation of trade relations traditionally established between the Community and the Czech Republic for the products concerned. In the meantime, the Czech Republic will not be treated less favourably than other associated countries in this context.

In addition, both parties will continue talks in the framework of the relevant procedures of the Europe Agreement on any other unresolved issues in order to find as soon as possible mutually acceptable solutions.

I should be obliged if you would confirm the agreement of the Council of the European Union to the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Czech Republic

B. Letter from the Community

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'The Agreement on the adaptation of the agricultural part of the Europe Agreement following the implementation of the Uruguay Round and the enlargement of the European Community signed today between the European Community and the Czech Republic does not contain any provisions regarding the entry price regime applied to the import of fruit and vegetables into the Community.

It has been agreed that the Parties will continue consultations on this sector in order to find a solution. Taking into account, inter alia, the experience of the last marketing years, the solution should allow the continuation of trade relations traditionally established between the Community and the Czech Republic for the products concerned. In the meantime, the Czech Republic will not be treated less favourably than other associated countries in this context.

In addition, both parties will continue talks in the framework of the relevant procedures of the Europe Agreement on any other unresolved issues in order to find as soon as possible mutually acceptable solutions.

I should be obliged if you would confirm the agreement of the Council of the European Union to the contents of this letter.`

I have the honour to confirm that the Council of the European Union is in agreement with the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union