After its adoption, the Decision of the EU-CTC Joint Committee shall be published in the Official Journal of the European Union.

The position to be taken on the Union's behalf in the EU-CTC Joint Committee set up by the Convention of 20 May 1987 on a common transit procedure as regards amendments to the Appendices to that Convention shall be based on the draft act of that Joint Committee attached to this Decision.

(6)As the Joint Committee Decision will amend the Convention, it is appropriate to publish it in the Official Journal of the European Union after its adoption,

(4)Pursuant to Article 15(3)(a) of the Convention, the Joint Committee set up by that Convention may adopt, by decision, amendments to the Appendices to the Convention. It is appropriate to establish the position to be taken on the Union’s behalf in the Joint Committee, as the decision to amend the Convention will be binding on the Union.

(3)The accession of the United Kingdom to the Convention as a separate Contracting Party will require appropriate adaptations of the guarantee documents shown as specimens in certain Annexes to Appendix III to the Convention in order to delete the reference to the United Kingdom as a Member State of the European Union and add the reference to the United Kingdom as a common transit country

(2)The United Kingdom of Great Britain and Northern Ireland ("the United Kingdom") has expressed its wish to accede to the Convention as a separate Contracting Party from the date the Convention no longer applies to and in the United Kingdom.

(1)The Convention on a common transit procedure ("the Convention") was concluded between the European Economic Community, the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation on 20 May 1987 and entered into force on 1 January 1988.

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207, in conjunction with Article 218(9) thereof,

on the position to be taken on behalf of the European Union in the EU-CTC Joint Committee established by the Convention of 20 May 1987 on a common transit procedure as regards amendments to that Convention

The legal basis for the proposed Decision should be Article 207 TFEU in conjunction with Article 218(9) TFEU.

The amendments to the Appendices to the Convention in view of the United Kingdom's accession to the Convention pursue the objective of ensuring efficient border crossing procedures. The main objective and content of the envisaged act therefore relates to the common commercial policy.

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union's behalf. If the envisaged act pursues two aims or has two components and if one of those aims or components is identifiable as the main one, whereas the other is merely incidental, the decision under Article 218(9) TFEU must be founded on a single substantive legal basis, namely that required by the main or predominant aim or component.

The envisaged act does not supplement or amend the institutional framework of the Convention.

While the United Kingdom will not be a third country when the Joint Committee decides on these amendments to the Appendices it is however necessary to prepare the technical adaptations to the Appendices so that they could apply as soon as the United Kingdom becomes a separate Contracting party.

The decision which the Joint Committee is called upon to adopt constitutes an act having legal effect. That decision will be binding under international law in accordance with Article 20 of the Convention.

The Joint Committee is a body set up by an agreement, namely the Convention on a common transit procedure.

Article 15(3)(a) of the Convention stipulates that the Joint Committee adopts, by decisions, amendments to the Appendices to the Convention.

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing "the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement."

The proposed position is to amend the Annexes in Appendix III to the Convention which refer to the United Kingdom as a Member State of the Union in order to reflect that the United Kingdom, as from its effective accession to the Convention, is a separate Contracting Party. The amendments are therefore of a technical nature.

In accordance with Article 15(3) of the Convention, decisions amending the Convention are to be put into effect by the Contracting Parties in accordance with their own legislation.

The Joint Committee's decision amending the Convention will become binding on the Contracting Parties in accordance with Article 3 of that decision, which provides for its entry into force on the date the accession of the United Kingdom to the Convention as a separate contracting party becomes effective and subject to it.

The Commission is invited to adopt the present draft proposal for a Decision and to transmit it to the Council.

The accession of the United Kingdom to the Convention would require modifications of the guarantee documents where Contracting Parties to the Convention are mentioned. The name "the United Kingdom" will be deleted from the part designated for the Member States of the Union and placed in the part designated for the common transit countries.

Should the transitional arrangements agreed between the EU and United Kingdom negotiators enter into force as part of the withdrawal agreement currently being negotiated pursuant to Article 50 of the Treaty on European Union, the international agreements to which the Union is party, including the Convention, will apply to and in the United Kingdom from the date of withdrawal until 31 December 2020. The United Kingdom's accession to the Convention will therefore be effective only in such situation as from the date when Union law (including this Convention) no longer apply to and in the United Kingdom.

The United Kingdom of Great Britain and Northern Ireland ("the United Kingdom"), being a Member State of the European Union, has applied the Convention since its entry into force in 1988. However, when the United Kingdom withdraws from the European Union, the Convention will automatically cease to apply to the United Kingdom. Therefore, if the United Kingdom wishes to use a common transit procedure for movement of goods between the Contracting Parties and the United Kingdom also after the withdrawal from the European Union, it must accede to the Convention as a separate Contracting Party.

The task of the Joint Committee is to administer the Convention and to ensure its proper implementation. The Committee adopts, by means of decisions, amendments to the Appendices to the Convention.

Countries which are Contracting Parties to the Convention, but not members of the Union are referred to in the Convention as common transit countries.

The Convention aims to facilitate the movement of goods between the European Union and other countries which are Contracting Parties to the Convention. It entered into force on 1 January 1988.

This proposal concerns the decision establishing the position to be taken on the Union's behalf in the EU-CTC Joint Committee on common transit ("the Joint Committee") in connection with the envisaged adoption by the Joint Committee of a decision amending a number of Annexes in Appendix III to the Convention of 20 May 1987 on a common transit procedure ("the Convention").

on the position to be taken on behalf of the European Union in the EU-CTC Joint Committee established by the Convention of 20 May 1987 on a common transit procedure as regards amendments to that Convention

EUROPEAN COMMISSION Brussels,22.8.2018 COM(2018) 601 final ANNEX to the proposal for a Council Decision on the position to be taken on behalf of the European Union in the EU-CTC Joint Committee established by the Convention of 20 May 1987 on a common transit procedure as regards amendments to that Convention



Proposal for a Decision no …./2018 of the EU-CTC Joint Committee established by the Convention of 20 May 1987 on a common transit procedure of ……2018 amending that Convention THE EU-CTC JOINT COMMITTEE Having regard to the Convention of 20 May 1987 on a common transit procedure, and in particular Article 15(3)(a) thereof, Whereas: (1)Article 15(3)(a) of the Convention of 20 May 1987 on a common transit procedure (the ‘Convention’) empowers the Joint Committee set up by that Convention (the ‘Joint Committee’) to adopt by decision amendments to the Appendices to the Convention. (2)The United Kingdom of Great Britain and Northern Ireland ("the United Kingdom") has expressed its wish to accede to the Convention as a separate Contracting Party and has been invited to do so by Decision No …. /2018 of ….. 2018. (3)Accordingly, the guarantee forms should be modified to delete the United Kingdom as a Member State of the Union and to insert the United Kingdom as a common transit country. (4)In order to allow the use of guarantee forms printed in accordance with the criteria in force prior to the date the accession of the United Kingdom to the Convention as a separate contracting party becomes effective, a transitional period should be established during which the printed forms, with some adaptations, may continue to be used. (5)The entry into force of this Decision should be linked to the date the accession of the United Kingdom to the Convention as a separate contracting party becomes effective and subject to it. (6)The Convention should therefore be amended accordingly, HAS ADOPTED THIS DECISION: Article 1 Appendix III to the Convention of 20 May 1987 on a common transit procedure (the "Convention") is amended as set out in the Annex to this Decision. Article 2 The guarantee forms in Annexes C1 to C6 to Appendix III to the Convention, in the version applicable on the day before the entry into force of this decision, may continue to be used subject to the necessary geographical adaptations, for one year from the entry into force of this decision.

Article 3 This Decision shall enter into force subject to and on the date the accession of the United Kingdom to the Convention as a separate contracting party becomes effective. Done at Brussels, ………. 2018 For the Joint Committee The President Philip Kermode Appendix III to the Convention of 20 May 1987 on a common transit procedure is amended as follows: 1) Annex C1 is replaced by the following: “ANNEX C1 GUARANTOR'S UNDERTAKING – INDIVIDUAL GUARANTEE I. Undertaking by the guarantor 1. The undersigned …………………………………………………………………………………………………..………………………………………………………………………………………………….. resident at …………………………………………………………………………………………………... ……….…………………………………………………………………………………………... hereby jointly and severally guarantees, at the office of guarantee of …………………………………………………………………………………………………... up to a maximum amount of …………………………………………………………………………………………………...

in favour of the European Union (comprising the Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, the Republic of Croatia, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden) and the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, the Republic of Serbia, the Swiss Confederation, the Republic of Turkey, the United Kingdom of Great Britain and Northern Ireland , the Principality of Andorra and the Republic of San Marino , any amount for which the person providing this guarantee : ………………………………………………………………………………………………….. may be or become liable to the abovementioned countries for debt in the form of duty and other charges with …………….. respect to the goods described below covered by the following customs operation : …………………………………………………………………………………………………... …………………………………………………………………………………………………... Goods description: ……………………………………………………………………………... …………………………………………………………………………………………………... ………………………………………………………………………………………………….. ………………………………………………………………………………………………….. 2. The undersigned undertakes to pay upon the first application in writing by the competent authorities of the countries referred to in point 1 and without being able to defer payment beyond a period of 30 days from the date of application the sums requested unless he or she or any other person concerned establishes before the expiry of that period, to the satisfaction of the customs authorities, that the special procedure other than the end-use procedure has been discharged, the customs supervision of end-use goods or the temporary storage has ended correctly or, in case of the operations other than special procedures and temporary storage, that the situation of goods has been regularised. At the request of the undersigned and for any reasons recognized as valid, the competent authorities may defer beyond a period of 30 days from the date of application for payment the period within which he or she is obliged to pay the requested sums. The expenses incurred as a result of granting this additional period, in particular any interest, must be so calculated that the amount is equivalent to what would be charged under similar circumstances on the money market or financial market in the country concerned. 3. This undertaking shall be valid from the day of its approval by the office of guarantee. The undersigned shall remain liable for payment of any debt incurred during the customs operation covered by this undertaking and commenced before any revocation or cancellation of the guarantee took effect, even if the demand for payment is made after that date. 4. For the purpose of this undertaking, the undersigned gives his or her address for service in each of the other countries referred to in point 1 as : Country Surname and forenames, or name of firm, and full address The undersigned acknowledges that all correspondence and notices and any formalities or procedures relating to this undertaking addressed to or effected in writing at one of his or her addresses for services shall be accepted as duly delivered to him or her. The undersigned acknowledges the jurisdiction of the courts of the places where he or she has an address for service. The undersigned undertakes not to change his or her address for service or, if he or she has to change one or more of those addresses, to inform the office of guarantee in advance. Done at…………………………on……………………………………………………………. ………………………………………………………………………………………………….. (Signature)

II. Approval by the office of guarantee Office of guarantee…………………………………………………………………………….. ……………………………………………………………………………………………… ………………………………………………………………………………………………….. Guarantor’s undertaking approved on………………………………………… to cover the customs operation effected under customs declaration/temporary storage declaration No…………………………..of ……………………………………………………………..... …………………………………………………………………………………………… (Stamp and Signature) 2) Annex C2 is replaced by the following: “ANNEX C2 GUARANTOR'S UNDERTAKING - INDIVIDUAL GUARANTEE IN THE FORM OF VOUCHERS I. Undertaking by the guarantor 1. The undersigned ………………………………………………………………………………………………….. ………………………………………………………………………………………………….. resident at …………………………………………………………………………………………………..

………………………………………………………………………………………………….. hereby jointly and severally guarantees, at the office of guarantee of …………………………………………………………………………………………………... in favour of the European Union (comprising the Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, the Republic of Croatia, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden) and the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, the Republic of Serbia, the Swiss Confederation, the Republic of Turkey, the United Kingdom of Great Britain and Northern Ireland, the Principality of Andorra and the Republic of San Marino, any amount of the holder of the procedure for which the holder of the procedure may be or become liable to the abovementioned countries for debt in the form of duty and other charges due in connection with the import or export of the goods placed under the Union or common transit procedure, in respect of which the undersigned has undertaken to issue individual guarantee vouchers up to a maximum of EUR 10 000 per voucher. 2. The undersigned undertakes to pay upon the first application in writing by the competent authorities of the countries referred to in point 1 and without being able to defer payment beyond a period of 30 days from the date of application the sums requested, up to EUR 10 000 per individual guarantee voucher, unless he or she or any other person concerned establishes before the expiry of that period, to the satisfaction of the competent authorities, that the operation has been discharged. At the request of the undersigned and for any reasons recognised as valid, the competent authorities may defer beyond a period of 30 days from the date of application for payment the period within which he or she is obliged to pay the requested sums. The expenses incurred as a result of granting this additional period, in particular any interest, must be so calculated that the amount is equivalent to what would be charged under similar circumstances on the money market or financial market in the country concerned. 3. This undertaking shall be valid from the day of its approval by the office of guarantee. The undersigned shall remain liable for payment of any debt incurred during the Union or common transit operation covered by this undertaking and commenced before any revocation or cancellation of the guarantee took effect, even if the demand for payment is made after that date. 4. For the purpose of this undertaking, the undersigned gives his or her address for service in each of the other countries referred to in point 1 as Country Surname and forenames, or name of firm, and full address The undersigned acknowledges that all correspondence and notices and any formalities or procedures relating to this undertaking addressed to or effected in writing at one of his or her addresses for services shall be accepted as duly delivered to him or her. The undersigned acknowledges the jurisdiction of the courts of the places where he or she has an address for service. The undersigned undertakes not to change his or her address for service or, if he or she has to change one or more of those addresses, to inform the office of guarantee in advance. Done at…………………………………………………………………………………………. on………………………………………………………………………………………………. …………………………………………………………………………………………………. (Signature) II. Approval by the office of guarantee

Office of guarantee ………………………………………………………………………………………………… …………………………………………………………………………………………………. Guarantor's undertaking approved on………………………………………………………….. ………………………………………………………………………………………………….. (Stamp and Signature) 3) Annex C4 is replaced by the following: “ANNEX C4 GUARANTOR'S UNDERTAKING – COMPREHENSIVE GUARANTEE I. Undertaking by the guarantor 1. The undersigned …………………………………………………………………………………………... …………………………………………………………………………………………... resident at …………………………………………………………………………………………... …………………………………………………………………………………………... hereby jointly and severally guarantees, at the office of guarantee of …………………………………………………………………………………………... up to a maximum amount of……………………………………………………………. in favour of the European Union (comprising the Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Republic of Croatia, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden) and the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, the Republic of Serbia, the Swiss Confederation, the Republic of Turkey, the United Kingdom of Great Britain and Northern Ireland , the Principality of Andorra and the Republic of San Marino ,



any amount for which the person providing this guarantee …………………………………….. may be or become liable to the abovementioned countries for debt in the form of duty and other charges which may be or have been incurred with respect to the goods covered by the customs operations indicated in point 1a and/or point 1b. The maximum amount of the guarantee is composed of an amount of: ………………………………………………………………………………………. (a) being 100/50/30 % of the part of the reference amount corresponding to an amount of customs debts and other charges which may be incurred, equivalent to the sum of the amounts listed in point 1a, and ………………………………………………………………………………………. (b) being 100/30 % 7 of the part of the reference amount corresponding to an amount of customs debts and other charges which have been incurred, equivalent to the sum of the amounts listed in point 1b, 1a. The amounts forming the part of the reference amount corresponding to an amount of customs debts and, where applicable, other charges which may be incurred are following for each of the purposes listed below : (a) temporary storage …, (b) Union transit procedure/common transit procedure …, (c) customs warehousing procedure …, (d) temporary admission procedure with total relief from import duty …, (e) inward processing procedure …, (f) enduse procedure … (g) if another – indicate the other kind of operation …. 1b. The amounts forming the part of the reference amount corresponding to an amount of customs debts and, where applicable, other charges which have been incurred are as follows for each of the purposes listed below (a) release for free circulation under normal customs declaration without deferred payment …, (b) release for free circulation under normal customs declaration with deferred payment …,

(c) release for free circulation under a customs declaration lodged in accordance with Article 166 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code …, (d) release for free circulation under a customs declaration lodged in accordance with Article 182 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code …,

(e) temporary admission procedure with partial relief from import duty …, (f) enduse procedure … , (g) if another – indicate the other kind of operation …. 2. The undersigned undertakes to pay upon the first application in writing by the competent authorities of the countries referred to in point 1 and without being able to defer payment beyond a period of 30 days from the date of application the sums requested up to the limit of the abovementioned maximum amount, unless he or she or any other person concerned establishes before the expiry of that period, to the satisfaction of the customs authorities, that the special procedure other than the enduse procedure has been discharged, the customs supervision of enduse goods or the temporary storage has ended correctly or, in case of the operations other than special procedures, that the situation of goods has been regularised. At the request of the undersigned and for any reasons recognised as valid, the competent authorities may defer beyond a period of 30 days from the date of application for payment the period within which he or she is obliged to pay the requested sums. The expenses incurred as a result of granting this additional period, in particular any interest, must be so calculated that the amount is equivalent to what would be charged under similar circumstances on the money market or financial market in the country concerned. This amount may not be reduced by any sums already paid under the terms of this undertaking unless the undersigned is called upon to pay a debt incurred during a customs operation commenced before the preceding demand for payment was received or within 30 days thereafter. 3. This undertaking shall be valid from the day of its approval by the office of guarantee. The undersigned shall remain liable for payment of any debt arising during the customs operation covered by this undertaking and commenced before any revocation or cancellation of the guarantee took effect, even if the demand for payment is made after that date. 4. For the purpose of this undertaking, the undersigned gives his or her address for service in each of the other countries referred to in point 1 as: Country Surname and forenames, or name of firm, and full address The undersigned acknowledges that all correspondence and notices and any formalities or procedures relating to this undertaking addressed to or effected in writing at one of his or her addresses for services shall be accepted as duly delivered to him or her. The undersigned acknowledges the jurisdiction of the courts of the places where he or she has an address for service. The undersigned undertakes not to change his or her address for service or, if he or she has to change one or more of those addresses, to inform the office of guarantee in advance. Done at ………………………………………………………………………………………… on ………………………………..…………………………….……………………………….. …………………………………………………………………………………………………... (Signature)



II. Approval by the office of guarantee Office of guarantee ………………………………………………………………………………………………