EN Official Journal of the European Union L 232/42

COUNCIL DECISION

of 12 July 2005

concerning the conclusion of an agreement between the European Community and the Government of Ukraine on trade in certain steel products

(2005/638/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Partnership and Cooperation Agreement between the European Communities and their Member States and Ukraine (1) entered into force on 1 March 1998.

(2) Article 22(1) of the Partnership and Cooperation Agreement provides that trade in certain steel products shall be governed by Title III, save for Article 14 thereof, and by the provisions of an Agreement.

(3) For the years 1995 to 2001, trade in certain steel products was the subject of Agreements between the Parties, and in 2002, 2003 and up to 19 November 2004 of specific arrangements. A further Agreement was concluded on 19 November 2004 covering the period to 31 December 2004. A new Agreement covering the period to 31 December 2006 has been negotiated between the Parties.

(4) The Agreement should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement between the European Community and the Government of Ukraine concerning trade in certain steel products is hereby approved on behalf of the Community.

The text of the Agreement is annexed to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) empowered to sign the Agreement in order to bind the Community.

Done at Brussels, 12 July 2005. For the Council The President G. BROWN

(1) OJ L 49, 19.2.1998, p. 3.

EN Official Journal of the European Union L 232/43

AGREEMENT

between the European Community and the Government of Ukraine on trade in certain steel products

THE EUROPEAN COMMUNITY, hereinafter referred to as ‘ the Community ’ ,

of the one part, and

THE GOVERNMENT OF UKRAINE,

of the other part,

together referred to as ‘ the Parties ’ ,

WHEREAS the Partnership and Cooperation Agreement between the European Communities and their Member States and Ukraine, hereinafter referred to as ‘ the PCA ’ , entered into force on 1 March 1998 ;

WHEREAS the Parties are desirous to promote the orderly and equitable development of trade in steel between them;

WHEREAS Article 22(1) of the PCA provides that trade in certain steel products shall be governed by Title III with the exception of Article 14 thereof, and by the provisions of an agreement on quantitative arrangements;

WHEREAS this Agreement constitutes the Agreement referred to in Article 22(1) of the PCA;

BEARING in mind the process of accession of Ukraine to the World Trade Organisation (WTO) and the Community support for the integration of Ukraine into the international trading system;

WHEREAS for the years 1995 to 2001 trade in certain steel products was the subject of Agreements between the Parties, in 2002, 2003 and 2004 of specific arrangements and as from November 2004 of an Agreement which is therefore appropriate to replace with a further Agreement;

WHEREAS the Parties reiterate their commitment to achieve as soon as the conditions are fulfilled complete liberalisation of trade in respect of the steel products covered by this Agreement;

WHEREAS this Agreement should be accompanied by cooperation between the Parties in respect of their steel industries, including appropriate exchanges of information, within a contact group on coal and steel as foreseen in Article 22(2) to the PCA,

HAVE AGREED AS FOLLOWS:

Article 1

1. This Agreement applies to trade in steel products as set out in Annex I originating in Ukraine and the Community.

2. Trade in steel products as set out in Annex II may be subject to quantitative limits.

3. Trade in steel products not set out in Annex II shall not be subject to quantitative limits.

4. In the case of steel products and of 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 quantitative arrangements fixing the limits set out in Annex III on Ukrainian exports to the Community of the products set out in Annex II. Such exports shall be subject to a double-checking system as specified in Protocol A.

2. The Parties reiterate their commitment to achieve complete liberalisation of trade in respect of the steel products set out in Annex II as soon as the conditions have been established.

3. The Parties agree that imports into the Community from Ukraine of the steel products set out in Annex II as from 1 January 2005 until the entry into force of this Agreement shall be deducted from the quantitative limits set out in Annex III.

4. Imports of quantities in excess of those mentioned in Annex III shall be authorised where the Community industry is unable to meet the internal demand and results in a shortage of supply for one or more products listed in Annex II. 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 III.

5. Each Party may, at any time, request consultations concerning:

— the levels of the quantitative limits set out in Annex III, where the conditions in respect of the products covered by Annex II have substantially deteriorated or improved;

— the possibility of transferring unused amounts set out in Annex III from under-utilised product groups to other groups.

Article 3

1. Imports into the customs territory of the Community for free circulation of the products set out in Annex II 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 Ukraine 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 II shall not be subject to the quantitative limits set out in Annex III 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 any calendar year is authorised up to 10 % of the relevant quantitative limit set out in Annex III for a product group in question for the year in which it was not used. The Government of Ukraine 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 15 % of the quantitative limit for a given product group may be transferred to one or more other groups subject to the consent of both Parties. The quantitative limit for a given product group can be adjusted once in the course of a calendar year. 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 III, without prejudice to the provisions of paragraph 3. Ukraine 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 the Ukrainian competent authorities by the 28th of each month of the import authorisations issued during the preceding month;

— the Ukrainian competent authorities shall inform the Community by the 28th of each month of the export licences issued during the preceding month.

2. 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.

3. Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of this Agreement, the Parties 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 Parties 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.

4. Should either Party believe on the basis of information available that this Agreement is being circumvented, it may request consultations with the other Party which shall be held immediately.

5. Pending the results of the consultations referred to in paragraph 3, the Government of Ukraine 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.

6. 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, where there is sufficient evidence that steel products covered by this Agreement originating in Ukraine have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits established under Annex III.

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

8. 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 products set out in Annex II 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. The Government of Ukraine shall endeavour to ensure that exports into the Community of products set out in Annex II 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, and without prejudice to the consultations foreseen by Article 2(5), where licences issued by the Ukrainian competent authorities have reached 90 % of the quantitative limits for the calendar year in question, either Party may request consultations. Such consultations shall be held immediately. Pending the outcome of such consultations the Ukrainian competent authorities may continue to issue export licences for the products set out in Annex II provided they do not exceed the quantities set out in Annex III.

Article 6

1. Where any product set out in Annex II is being imported into the Community from Ukraine under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Ukraine 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 Partnership and Cooperation Agreement.

3. Notwithstanding the provisions of this Agreement, the provisions of Article 19 of the Partnership and Cooperation Agreement 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 made in accordance with the procedures in force in the Community concerning the products set out in Annex II 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 III.

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 the Government of Ukraine 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 II 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 receipt 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 date of its signature. It shall be applicable 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, this 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 Ukraine accedes to the WTO before the expiration of this Agreement, this Agreement shall be terminated and the quantitative limits shall be abolished as of the date of accession.

5. The Community reserves the right at all times to take all appropriate measures including, where the Parties are unable to reach a mutually satisfactory solution in the consultations foreseen in previous Articles or where this Agreement is denounced by either Party, the reintroduction of a system of autonomous quotas in respect of exports from Ukraine of the products mentioned in Annex II.

6. Annexes I, II and III, declarations 1, 2, 3 and 4, the agreed minute and Protocol A annexed 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 Ukrainian languages, each of these texts being equally authentic.

Hecho en Bruselas, el V Bruselu dne Udfærdiget i Bruxelles den Geschehen zu Brüssel am Brüsselis Έγινε στις Βρυξέλλες, στις Done at Brussels, Fait à Bruxelles, le Fatto a Bruxelles, addi' Briselē, Priimta Briuselyje Kelt Brüsszelben, Magħmul fi Brussel, Gedaan te Brussel, Sporządzono w Brukseli, dnia Feito em Bruxelas, V Bruseli V Bruslju, Tehty Brysselissä Utfärdat i Bryssel den Вчінено в м. 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 Wspólnoty Europejskiej Pela Comunidade Europeia Za Európske spoločenstvo Za Evropsko skupnost Euroopan yhteisön puolesta På Europeiska gemenskapens vägnar За Eвропейське Спивтоваріство Por el Gobierno de Ucrania Za vládu Ukrajiny For Ukraines regering Für die Regierung der Ukraine Ukraina valitsuse nimel Για την Κυβέρνηση της Ουκρανίας For the Government of Ukraine Pour le gouvernement ukrainien Per il governo dell'Ucraina Ukrainas valdības vārdā Ukrainos Vyriausybės vardu Ukrajna kormánya részéről Għall-Gvern ta' l-Ukrajna Voor de regering van Oekraïne W imieniu Rządu Ukrainy Pelo Governo da Ucrânia Za vládu Ukrajiny Za Vlado Ukrajine Ukrainan hallituksen puolesta För Ukrainas regering За Уряд Украйні

ANNEX I

7201101100

7201101900

7201103000

7201109000

7201200000

7201501000

7201509000

7202112000

7202118000

7202991010

7203100000

7203900000

7204100000

7204211000

7204219000

7204290000

7204300000

7204411000

7204419100

7204419900

7204491000

7204493000

7204499000

7204500000

7206100000

7206900000

7207111100

7207111400

7207111600

7207121000

7207191210

7207191291

7207191299

7207198010

7207201100

7207201500

7207201700

7207203200

7207205200

7207208010

7208100000

7208250000

7208260000

7208270000

7208360000

7208370010

7208370090

7208380010

7208380090

7208390010

7208390090

7208400010

7208400090

7208512010

7208512091

7208512093

7208512097

7208512098

7208519100

7208519810

7208519891

7208519899

7208521000

7208529100

7208529900

7208531000

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

7211130000

7211140010

7211140090

7211190010

7211190090

7211232010

7211233010

7211233091

7211238010

7211238091

7211290010

7211900011

7212101000

7212109011

7212200011

7212300011

7212402010

7212402091

7212408011

7212502011

7212503011

7212504011

7212506111

7212506911

7212509013

7212600011

7212600091

7213100000

7213200000

7213911000

7213912000

7213914100

7213914900

7213917000

7213919000

7213991000

7213999000

7214200000

7214300000

7214911000

7214919000

7214991000

7214993100

7214993900

7214995000

7214997100

7214997900

7214999500

7215900010

7216100000

7216210000

7216220000

7216311010

7216311090

7216319000

7216321100

7216321900

7216329100

7216329900

7216331000

7216339000

7216401000

7216409000

7216501000

7216509100

7216509900

7216990010

7218100000

7218911000

7218918000

7218991100

7218992000

7219110000

7219121000

7219129000

7219131000

7219139000

7219141000

7219149000

7219211000

7219219000

7219221000

7219229000

7219230000

7219240000

7219310000

7219321000

7219329000

7219331000

7219339000

7219341000

7219349000

7219351000

7219359000

7219900010

7220110000

7220120000

7220202110

7220202910

7220204110

7220204910

7220208110

7220208910

7220900011

7220900031

7221001000

7221009000

7222111100

7222111900

7222118100

7222118900

7222191000

7222199000

7222309710

7222401000

7222409010

7224100000

7224900200

7224900300

7224900500

7224900700

7224901400

7224903100

7224903800

7225110000

7225191000

7225199000

7225200010

7225300000

7225401230

7225401290

7225404000

7225406000

7225409000

7225500000

7225910010

7225920010

7225990010

7226110010

7226191000

7226198010

7226200010

7226912000

7226919100

7226919900

7226920010

7226930010

7226940010

7226990010

7227100000

7227200000

7227901000

7227905000

7227909500

7228102000

7228201010

7228201091

7228209110

7228209190

7228302000

7228304100

7228304900

7228306100

7228306900

7228307000

7228308900

7228602010

7228608010

7228701000

7228709010

7228800010

7228800090

7301100000

7302102100

7302102300

7302102900

7302104000

7302105000

7302109000

7302400000

ANNEX II

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

7225401230

7225404000

7225406000

7225990010

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

7211232010

7211233010

7211233091

7211238010

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

SB Longs

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 III

QUANTITATIVE LIMITS

(tonnes) Products 2005 2006 SA. Flat-rolled products SA1. Coils 150 000 153 750 SA2. Heavy plate 348 000 356 700 SA3. Other flat-rolled products 97 000 99 425 SB. Long products SB1. Beams 30 000 30 750 SB2. Wire rod 125 000 128 125 SB3. Other long products 230 000 235 750 Note: SA and SB are the ‘categories’ SA1, SA2, SA3, SB1, SB2 and SB3 are the ‘product groups’

AGREED MINUTE

In the context of this Agreement, the Parties agree that:

— in pursuance of the exchange of information provided for in Article 4(1) concerning export licences and import authorisations, the parties will supply that information by reference to the Member States in addition to the Community as a whole,

— pending the satisfactory outcome of the consultations provided for in Article 5(2), the Government of Ukraine will cooperate, if so requested by the Community, by not issuing export licences that would further aggravate the problems resulting from sudden and prejudicial changes in traditional trade flows, and

— the Government of Ukraine will take due account of the sensitive nature of small regional markets within the Community both as regards their traditional needs for supplies and the avoidance of regional concentrations.

DECLARATION No 1

In the context of this Agreement, and more particularly Article 3 thereof, the Parties confirm their understanding that this Agreement does not affect existing systems concerning the import and duties in respect of the steel products mentioned in Annex II to the Agreement which are intended for certain categories of ships, boats and other vessels and for drilling or production platforms for the purposes of their construction, repair, maintenance or conversion and in respect of goods intended for fitting to or equipping such ships, boats or other vessels.

DECLARATION No 2

The Parties agree that they shall not apply quantitative restrictions, customs duties, charges or any measures having equivalent effect on the export of ferrous scrap and waste under the EC Combined Nomenclature heading 7204.

However, Ukraine is currently applying a tax on the exports of ferrous scrap of EUR 30 per tonne. The quantitative limits set out in Annex III of the Agreement take into account that tax. Ukraine is committed not to increase this tax. If Ukraine were to reduce or remove this tax on all ferrous scrap positions, the quantitative limits mentioned in Annex III would be increased accordingly up to 43 %. The increase of these quantitative limits would be directly proportional to the reduction of the levy.

In case of removal or reduction of the EUR 30 export tax on the exports of certain ferrous scrap positions, e.g., shredded scrap, the Parties shall enter the consultations immediately in order to assess the increase of the quantitative limits set out in Annex III.

DECLARATION No 3

Both Parties aim at achieving complete liberalisation of trade in steel products. In this context, both Parties intend to terminate quantitative restrictions once Ukraine becomes a WTO member. They also recognise that it is an important condition for promoting trade between them that competition, state aid and environment provisions applicable within each Party must be compatible. To this end, and upon request from Ukraine authorities, the Community shall provide technical assistance within available budgetary means to help Ukraine to adopt and implement legislative provisions compatible with those adopted and applied by the Community. Such assistance shall be specified in projects to be agreed by both Parties and identifying clearly, inter alia, the objectives, the means and the calendar.

DECLARATION No 4

In the case Ukrainian operators were to set up service centres in the Community that would further process steel products set out in Annex II imported from Ukraine, the Government of Ukraine declares that it could request an increase of quantitative limits mentioned in Annex III. In this case, the Community shall examine such request of increase and the Parties will enter into consultations as soon as possible.

PROTOCOL A

TITLE I

CLASSIFICATION

Article 1

1. The competent authorities of the Community undertake to inform the competent authorities of Ukraine of any changes in the combined nomenclature in respect of products covered by the Agreement before the date of their entry into force in the Community.

2. The competent authorities of the Community undertake to inform the competent authorities of Ukraine of any decisions relating to the classification of products covered by the Agreement within one month of their adoption at the latest.

Such a description shall include:

(a) a description of the products concerned,

(b) the relevant CN codes,

(c) the reasons which have led to the decision.

3. Where a decision on classification results in a change of classification practice of any product covered by the Agreement, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put into effect. Products shipped before the date of entry into effect of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 days of that date.

4. Where a Community decision on classification resulting in a change of classification practice of any product covered by the Agreement affects a category subject to quantitative limits, the Parties agree to enter into consultations in accordance with the procedures described in Article 9(3) of the Agreement with a view to honouring the obligation contained in Article 7(1) of the Agreement.

5. In case of divergent opinions between the competent authorities of Ukraine and the Community at the point of entry into the Community on the classification of products covered by the Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 9 of the Agreement with a view to reaching agreement on the definitive classification of the products concerned.

TITLE II

ORIGIN

Article 2

1. Products originating in Ukraine according to the Community Regulations in force for export to the Community in accordance with the arrangements established by the Agreement shall be accompanied by a certificate of Ukrainian origin conforming to the model annexed to this Protocol.

2. The certificate of origin shall be certified by the authorised Ukrainian organisations as to whether the products in question can be considered products originating in Ukraine.

Article 3

The certificate of origin shall be issued only on application in writing by the exporter or, under the exporter's responsibility, by his authorised representative. The authorised Ukrainian organisations shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check which they consider appropriate.

Article 4

The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto cast doubt upon the statements in the certificate.

TTITLE III

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE LIMITS

SECTION I

Exportation

Article 5

The appropriate Ukrainian governmental authorities shall issue an export licence in respect of all consignments from Ukraine of steel products covered by the Agreement up to the quantitative limits set out in Annex III of the Agreement.

Article 6

1. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory of the Community.

2. Each export licence must certify inter alia that the quantity of the product in question has been set off against the relevant quantitative limit established for the product concerned in Annex III of the Agreement.

Article 7

The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.

Article 8

1. Exports shall be set off against the quantitative limits established for the year in which the shipment of goods has been effected even if the export licence is issued after such shipment.

2. For the purposes of applying paragraph 1, shipment of goods is considered to have taken place on the date of their loading onto the exporting means of transport.

Article 9

The importer shall present an export licence not later than 31 March of the year following that in which the goods covered by the licence have been shipped.

SECTION II

Importation

Article 10

The release for free circulation into the Community of steel products subject to quantitative limits shall be subject to the presentation of an import authorisation.

Article 11

1. The competent authorities of the Community shall issue the import authorisation referred to in Article 10 within ten working days of the presentation by the importer of the original of the corresponding export licence.

2. The import authorisations shall be valid for four months from the date of their issue for imports throughout the customs territory of the Community.

3. The competent authorities of the Community shall cancel the import authorisation already issued whenever the corresponding export licence has been withdrawn. However, if the competent authorities of the Community are notified of the withdrawal or the cancellation of the export licence only after the release for free circulation of the products into the Community, the relevant quantities shall be set off against the limits established for the product.

Article 12

If the competent authorities of the Community find that the total quantities covered by export licences issued by the competent authorities of Ukraine exceed the relevant quantitative limit established for products covered by Annex III of the Agreement, the Community authorities shall suspend the further issue of import authorisations in respect of products covered by the quantitative limit in question. In this event, the competent authorities of the Community shall immediately inform the competent authorities of Ukraine and immediate consultations pursuant to Article 9(1) of the Agreement shall be initiated.

TITLE IV

FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITY

Article 13

1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English. If they are completed by hand, entries must be in ink and in block letters.

These documents shall measure 210 x 297 mm. The paper used shall be white writing paper, sized, not containing mechanical pulp, and weighing not less than 25 g/m2. If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked ‘original’ and the other copies ‘copies’. Only the original shall be accepted by the competent authorities of the Community as being valid for the purpose of export to the Community in accordance with the provisions of the Agreement.

2. Each document shall bear a standardised serial number, whether or not printed, by which it can be identified.

This number shall be composed of the following elements:

— two letters identifying the exporting country as follows: UA = Ukraine

— two letters identifying the intended Member State of customs clearance as follows: BE = Belgium CZ = Czech Republic DK = Denmark DE = Germany EE = Estonia EL = Greece ES = Spain FR = France IE = Ireland IT = Italy CY = Cyprus LV = Latvia LT = Lithuania LU = Luxembourg HU = Hungary MT = Malta NL = Netherlands AT = Austria PL = Poland PT = Portugal SI = Slovenia SK = Slovakia FI = Finland SE = Sweden GB = United Kingdom;

— a one-digit number identifying the year in question corresponding to the last figure in the year, e.g. ‘5’ for 2005,

— a two-digit number from 01 to 99, identifying the particular issuing office concerned in exporting country,

— a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.

Article 14

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases, they must bear the endorsement ‘issued retrospectively’.

Article 15

1. In the event of theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the Ukrainian governmental authorities competent to issue licences or to the Ukrainian organisations authorised to issue certificates of origin under Ukrainian legislation, respectively, for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement ‘duplicate’.

2. The duplicate shall bear the date of the original export licence or certificate of origin.

TITLE V

ADMINISTRATIVE COOPERATION

Article 16

The Parties shall cooperate closely in the implementation of the provisions of this Protocol. To this end, contacts and exchanges of views, including on technical matters, shall be facilitated by both Parties.

Article 17

In order to ensure the correct application of this Protocol, the Parties shall offer mutual assistance for the checking of the authenticity and the accuracy of export licences and certificates of origin issued or of any declarations made within the terms of this Protocol.

Article 18

The competent authorities of Ukraine shall send the Commission of the European Communities the names and addresses of the competent Ukrainian authorities which are authorised to issue and to verify export licences and certificates of origin together with specimens of the stamps and signatures they use. The competent authorities of Ukraine shall also notify the Commission of any change in this information.

Article 19

1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the true origin of the products in question.

2. In such cases, the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the appropriate Ukrainian authorities giving, where appropriate, the reasons of form or substance which justify an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the licence or their copies. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.

3. The provisions of paragraph 1 shall also apply to subsequent verifications of the certificates of origin provided for in Article 2.

4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate, licence or declaration, applies to the goods actually exported and whether these goods are eligible for export under the arrangements established by the Agreement. The information shall also include, at the request of the Community, copies of all the documentation necessary to fully determine the facts, and in particular the true origin of the goods.

Should such verifications reveal systematic irregularities in the use of certificates of origin, the Community may subject imports of the products in question to the provisions of Article 2(1).

5. For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept by the appropriate Ukrainian authorities for at least one year following the end of the Agreement.

6. Recourse to the random verification procedure specified in this Article must not constitute an obstacle to the release for free circulation of the products in question.

Article 20

1. Where the verification procedure referred to in Article 19 or where information available to the competent authorities of the Community or of Ukraine indicates or appears to indicate that the provisions of the Agreement are being circumvented or infringed, the two Parties shall cooperate closely and with the appropriate urgency in order to prevent any such circumvention or infringement.

2. To this end, the appropriate Ukrainian authorities shall, on their own initiative or at the request of the Community, carry out appropriate inquiries, or arrange for such inquiries to be carried out, concerning operations which are, or appear to the Community to be, in circumvention or infringement of this Protocol. The competent authorities of Ukraine shall communicate the results of these inquiries to the Community, including any other pertinent information enabling the cause of the circumvention or infringement, including the true origin of the goods to be determined.

3. By agreement between the Parties, officials designated by the Community may be present at the inquiries referred to in paragraph 2.

4. In pursuance of the cooperation referred to in paragraph 1, the competent authorities of the Community and Ukraine shall exchange any information considered by either Party to be of use in preventing circumvention or infringement of the provisions of the Agreement. These exchanges may include information on the trade in the type of products covered by the Agreement between Ukraine and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Ukraine prior to their importation into the Community. This information may include, at the request of the Community, copies of all relevant documentation, where available.

5. Where sufficient evidence shows that the provisions of this Protocol have been circumvented or infringed, the competent authorities of Ukraine and the Community may agree to take any measures as are necessary to prevent a recurrence of such circumvention or infringement.