This Decision shall enter into force on the day of its adoption

The Council Secretariat General shall establish the instrument of full powers to sign the Agreement, subject to its conclusion, for the person(s) indicated by the negotiator of the Agreement.

The text of the Agreement to be signed is attached to this Decision.

The signing on behalf of the European Union of the Agreement between the European Union and the Swiss Confederation on supplementary rules in relation to the instrument for financial support for external borders and visa, as part of the Internal Security Fund, for the period 2014 to 2020 is hereby approved, subject to the conclusion of the said Agreement.

(6)The Agreement should be signed on behalf of the Union, subject to its conclusion at a later date,

(5)This Decision constitutes a development of the provisions of the Schengen acquis in which Ireland does not take part, in accordance with Council Decision 2002/192/EC; Ireland is therefore not taking part in the adoption of this Decision and is not bound by it or subject to its application.

(4)This Decision constitutes a development of the provisions of the Schengen acquis in which the United Kingdom does not take part, in accordance with Council Decision 2000/365/EC; the United Kingdom is therefore not taking part in the adoption of this Decision and is not bound by it or subject to its application.

(3)In accordance with Articles 1 and 2 of Protocol No 22 on the position of Denmark, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Decision and is not bound by it or subject to its application. Given that this Decision builds upon the Schengen acquis, Denmark shall, in accordance with Article 4 of that Protocol, decide within a period of six months after the Council has decided on this Decision whether it will implement it in its national law.

(2)On 14 July 2014, the Council authorised the Commission to open negotiations with the Kingdom of Norway, the Republic of Iceland, the Swiss Confederation and the Principality of Liechtenstein for an Agreement on the modalities of their participation in the Internal Security Fund – Borders and Visa. The negotiations with the Swiss Confederation were successfully concluded by the initialling of the Agreement on 21 April 2017.

(1)Regulation (EU) No 515/2014 of the European Parliament and of the Council provides that the countries associated with the implementation, application and development of the Schengen acquis are to participate in the instrument for financial support for external borders and visa, and that arrangements are to be concluded on their financial contributions and the supplementary rules necessary for such participation, including provisions ensuring the protection of the Union's financial interests and the powers of audit of the Court of Auditors.

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 77(2), in conjunction with Article 218(5) thereof,

on the signing, on behalf of the European Union, of the Agreement between the European Union and the Swiss Confederation on supplementary rules in relation to the instrument for financial support for external borders and visa, as part of the Internal Security Fund, for the period 2014 to 2020

The Commission has made a separate proposal for a Council Decision on the conclusion of the attached Agreement between the European Union and the Swiss Confederation on supplementary rules in relation to the instrument for financial support for external borders and visa, as part of the Internal Security Fund, for the period 2014 to 2020. The Council shall adopt this Decision after obtaining the consent of the European Parliament.

In the light of the abovementioned considerations, the Commission proposes that the Council decide that the Agreement be signed on behalf of the Union and authorise the President of the Council to appoint the person(s) duly empowered to sign on behalf of the Union.

Article 17 of the Agreement specifies the applicable reporting and monitoring arrangements. By 15 February each year and until 2022 included, Switzerland is to submit an annual implementation report to the Commission for the previous financial year.

This proposal constitutes a development of elements of the Schengen acquis in which the United Kingdom and Ireland do not take part and they will therefore not be bound or subject to its application, in accordance with Council Decisions 2000/365/EC and 2002/192/EC respectively.

In accordance with Articles 1 and 2 of Protocol No 22 on the position of Denmark annexed to the TEU and TFEU, Denmark does not take part in the adoption of this decision and will not be bound by it or be subject to its application. In accordance with Article 4 of the aforementioned Protocol, Denmark will decide within six months after the Council has adopted this proposal whether it will implement the proposed decision in its national law.

Regulation (EU) No 515/2014 constitutes a development of the Schengen acquis. In this regard, the present Agreement with Switzerland also builds on the Schengen acquis.

Article 10 and the Annex of the draft Agreement describe the provisions related to the annual financial contributions of the associated country to the budget of the Internal Security Fund – Borders and Visa and their possible adaptation to the situation described as per the Annex.

Not applicable, considering that the proposal is linked to the programme management and aims at signing an international agreement which was negotiated on the basis of the negotiating directives established by the Council.

The Agreement contains as well provisions to protect the financial interests of the Union against fraud and measures to ensure compliance with the provisions relevant for the financial management and control as laid down in the Treaty on the Functioning of the European Union ('TFEU') and in Union law based on the TFEU.

Furthermore the draft Agreement foresees also the modalities for the designation of the Responsible Authority and for the annual reporting system.

The draft Agreement foresees the annual financial contribution of Switzerland to the budget of the Internal Security Fund – Borders and Visa by an annual sum calculated in accordance with its GDP as a percentage of GDP of all States participating in the Fund [Article 10 and the Annex]. Annual payments are specified in Article 11.

The final content of it can be summarised as follows:

The Member States have been informed and consulted in the relevant Council Working Groups.

The Commission considers that the objectives set by the Council in its negotiating directives were attained and that the draft Arrangement is acceptable to the Union.

The negotiations were held jointly with all associated countries. Two rounds of negotiations took place. The final text of the draft Agreement with Switzerland was initialled on 21 April 2017.

The Commission received the Council authorisation to open negotiations with Norway, Iceland, Switzerland, and Liechtenstein on an Agreement on the modalities of these countries’ participation in the Internal Security Fund – Borders and Visa on 14 July 2014.

The Commission presented on 28 May 2014 a recommendation to the Council in order to authorise the Commission to open negotiations with Norway, Iceland, Switzerland, and Liechtenstein on an international Agreement establishing such supplementary rules.

Although Article 19(4) of the agreement as initialled provides for the possibility to apply the agreement provisionally as from the day following its signature, without prejudice to constitutional requirements, the Swiss authorities have informed the Commission that under the terms of Swiss governmental and administrative organisation law such provisional application is not possible. Therefore, the present proposal for a Council Decision does not include the provisional application of the agreement. The agreement will enter into force under the terms of its Article 19(2) and (3) on the first day of the first month following the day of the last notification on the completion of the ratification procedure.

On the basis of Article 5(7) of Regulation (EU) No 515/2014 the conclusion of the Agreement with Switzerland is necessary for the establishment of the arrangements on this country's contribution to the instrument for financial support for external borders and visa for the period 2014-2020 and on the supplementary rules necessary for this participation.

Having as its aim the conclusion of arrangements between the Union and Switzerland on this country's contribution to the instrument for financial support for external borders and visa for the period 2014-2020 and on the supplementary rules necessary for this participation, the present proposal for the signature of the Agreement is based on Articles 77(2) and 218(5) of the Treaty on the Functioning of the European Union.

In order to protect the Union's financial interests against fraud and other irregularities, Regulation (EU) No 514/2014 provides for Commission staff, the Court of Auditors and OLAF to be granted suitable access to carry out controls. Article 5(9) of Regulation (EU) No 514/2014 adds that cooperation agreements with third countries will expressly empower the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot controls and inspections. Consequently, this is provided for in the draft Agreement.

As regards budgetary and financial controls, the Member States are subject to horizontal obligations (e.g. the competence of the Court of Auditors and of the European Anti-Fraud Office (OLAF)), derived either directly from the Treaty or from secondary Union legislation. These obligations apply to the Member States directly and are therefore not laid down in Regulation (EU) No 515/2014. However, in application of Article 5(7) of Regulation (EU) No 515/2014, they must be extended to the associated country by means of the draft Agreement.

The aim of the draft Agreement with Switzerland is to establish the arrangements referred to in Article 5(7) of Regulation (EU) No 515/2014 and to enable the Commission to assume ultimate responsibility for implementation of the budget of the instrument in this associated country and determine its contribution to the Union budget in respect of this instrument.

Article 5(7) of Regulation (EU) No 515/2014 provides that the countries associated with the implementation, application and development of the Schengen acquis participate in the instrument in accordance with its provisions and that arrangements are to be concluded on their financial contributions and the supplementary rules necessary for such participation, including provisions ensuring the protection of the Union's financial interests and the power of audit of the Court of Auditors, as the respective Association Agreements do not provide for such rules.

The purpose of the ISF Borders and Visa is to establish a solidarity mechanism binding the participating states by the same European rules on the control of external borders in each other's interests and on each other's behalf. The ISF Borders and Visa will serve to accomplish a key objective of the Schengen acquis, namely to share responsibility for an 'efficient, high and uniform level of control at the external borders', as set out in Article 15 of Regulation (EU) 2016/399 of the European Parliament and of the Council. It is thus a development of the Schengen acquis.

Regulation (EU) No 514/2014 of the European Parliament and of the Council of 16 April 2014 laying down general provisions on the Asylum, Migration and Integration Fund and on the instrument for financial support for police cooperation, preventing and combating crime, and crisis management also entered into force on 21 May 2014 and became applicable as of 1 January 2014. Under Article 19 of Regulation (EU) No 515/2014, the provisions of Regulation (EU) No 514/2014 apply to the instrument for financial support for external borders and visa, as part of the Internal Security Fund (hereinafter referred to as 'the ISF Borders and Visa').

Regulation (EU) No 515/2014 of the European Parliament and of the Council of 16 April 2014, establishing, as part of the Internal Security Fund, the instrument for financial support for external borders and visa and repealing Decision No 574/2007/EC entered into force on 21 May 2014 and became applicable as of 1 January 2014.

on the signing, on behalf of the European Union, of the Agreement between the European Union and the Swiss Confederation on supplementary rules in relation to the instrument for financial support for external borders and visa, as part of the Internal Security Fund, for the period 2014 to 2020

EUROPEAN COMMISSION Brussels,14.2.2018 COM(2018) 64 final ANNEX to the Proposal for a COUNCIL DECISION on the signing on behalf of the European Union, of the Agreement between the European Union and the Swiss Confederation on supplementary rules in relation to the instrument for financial support for external borders and visa, as part of the Internal Security Fund, for the period 2014 to 2020



ANNEX THE EUROPEAN UNION, hereinafter referred to as 'the Union' and THE SWISS CONFEDERATION, hereinafter referred to as 'Switzerland', Hereinafter referred to as 'the Parties' HAVING REGARD to the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation's association with the implementation, application and development of the Schengen acquis ('Association Agreement with Switzerland'), WHEREAS: (1)The Union established the instrument for financial support for external borders and visa, as part of the Internal Security Fund by Regulation (EU) No 515/2014 of the European Parliament and of the Council. (2)Regulation (EU) No 515/2014 constitutes a development of the Schengen acquis within the meaning of the Association Agreement with Switzerland. (3)As Regulation (EU) No 514/2014 of the European Parliament and of the Council has a direct impact on the application of the provisions of Regulation (EU) No 515/2014, thus affecting the latter's legal framework, and as the procedures set out in the Association Agreement with Switzerland have been applied for the adoption of Regulation (EU) 514/2014 which was notified to Switzerland, the Parties acknowledge that Regulation (EU) No 514/2014 constitutes a development of the Schengen acquis within the meaning of the Association Agreement with Switzerland insofar as it is necessary for the implementation of Regulation (EU) No 515/2014. (4)Article 5(7) of Regulation (EU) No 515/2014 provides that the countries associated with the implementation, application and development of the Schengen acquis – among which Switzerland – participate in the instrument in accordance with its provisions and that arrangements should be concluded to specify financial contributions by those countries and supplementary rules necessary for such participation, including provisions ensuring the protection of the Union's financial interests and the power of audit of the Court of Auditors. (5)The instrument for financial support for external borders and visa, as part of the Internal Security Fund ('the ISF – Borders and Visa') constitutes a specific instrument in the context of the Schengen acquis designed to provide for burden sharing and financial support in the field of external borders and visa policy in Member States and associated States. (6)Article 60 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council provides for rules on indirect management that are applicable where third countries, including associated States, are entrusted with budget implementation tasks. (7) Article 17(4) of Regulation (EU) No 514/2014 provides for the eligibility of expenditure incurred in 2014 by a Responsible Authority not yet formally designated, thereby ensuring a smooth transition between the External Borders Fund and the Internal Security Fund. Similarly it is important that the same concern be reflected in this Agreement. Given that this Agreement did not come into force before the end of 2014, it is essential to ensure the eligibility of expenditure incurred before and until the formal designation of the Responsible Authority, provided that the management and control systems applied before are essentially the same as the ones in force after the formal designation of the Responsible Authority. (8)To facilitate the calculation and use of the annual contributions due by Switzerland to the ISF – Borders and Visa, its contributions for the period 2014-2020 will be paid in five annual instalments from 2016 to 2020. From 2016 to 2018, the annual contributions are set in fixed amounts while the contribution due for the years 2019 and 2020 will be determined in 2019 on the basis of the gross domestic product of all States participating in the ISF – Borders and Visa taking into account the payments effectively made, HAVE AGREED AS FOLLOWS: Article 1

Scope This Agreement sets out the supplementary rules necessary for the participation of Switzerland in the ISF – Borders and Visa in accordance with Regulation (EU) No 515/2014. Article 2 Financial management and control 1. Switzerland shall take the necessary measures to ensure compliance with the provisions relevant for the financial management and control which are laid down in the Treaty on the Functioning of the European Union ('TFEU') and in Union law based on the TFEU. The provisions of the TFEU and of the secondary law referred to in the first sub- paragraph are the following: (a)Article 287(1), (2) and (3) TFEU; (b)Articles 30, 32 and 57, Article 58(1)(c)(i), Article 60 and Articles 79(2) and 108(2) of Regulation (EU, Euratom) No 966/2012; (c)Articles 32, 38, 42, 84, 88, 142 and 144 of Commission Delegated Regulation (EU) No 1268/2012; (d)Council Regulation (Euratom, EC) No 2185/96; (e)Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council. The Parties may decide to amend this list by mutual agreement. 2. Switzerland shall apply the provisions referred to in paragraph 1 in its territory in accordance with this Agreement. Article 3 Respect for the principle of sound financial management The funds allocated to Switzerland under the ISF – Borders and Visa shall be used in accordance with the principle of sound financial management. Article 4 Respect for the principle on conflict of interest All financial actors and any other person involved in budget implementation and management, including acts preparatory thereto, audit or control acting in the territory of Switzerland shall be prohibited from taking any action which may bring their own interests into conflict with those of the Union. Article 5

Enforcement Decisions taken by the Commission which impose a pecuniary obligation on persons other than States shall be enforceable in the territory of Switzerland. Enforcement shall be governed by the rules of civil procedure in force in Switzerland. The order for its enforcement shall be appended to the decision, without other formality than verification of the authenticity of the decision, by the national authority which the government of Switzerland shall designate for this purpose and shall make known to the Commission. When these formalities have been completed on application by the Commission, the Commission may proceed to enforcement in accordance with the national law, by bringing the matter directly before the competent authority. Enforcement may be suspended only by a decision of the Court of Justice of the European Union. However, the courts of Switzerland shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner. Article 6 Protection of the financial interests of the Union against fraud 1.Switzerland shall (a)counter fraud and any other illegal activities affecting the financial interests of the Union through measures which shall act as a deterrent and be such as to afford effective protection in Switzerland; (b)take the same measures to counter fraud affecting the financial interests of the Union as they take to counter fraud affecting its own financial interests; and (c)coordinate its action aimed at protecting the financial interests of the Union with the Member States and the Commission. 2.Switzerland shall adopt equivalent measures to those adopted by the Union in accordance with Article 325(4) TFEU which are in force at the date of signature of this Agreement. The Parties may decide by mutual agreement to adopt equivalent measures to any subsequent measures adopted by the Union in accordance with this Article. Article 7 On-the spot checks and inspections by the Commission (OLAF) Without prejudice to its rights under Article 5(8) of Regulation (EU) No 514/2014, the Commission (the European Anti-Fraud Office OLAF) shall be authorised to carry out on-the spot checks and inspections in the territory of Switzerland as regards the ISF – Borders and Visa in accordance with the terms and conditions laid down in Regulation (Euratom, EC) No 2185/96. The authorities of Switzerland shall facilitate on-the-spot checks and inspections which may, if those authorities so wish, be carried out jointly with them. Article 8 Court of Auditors In accordance with Article 287(3) TFEU and with Part One, Title X, chapter 1 of Regulation (EU, Euratom) No 966/2012, the Court of Auditors shall have the possibility to perform audits on the premises of any body which manages revenue or expenditure on behalf of the Union in the territory of Switzerland as regards the ISF – Borders and Visa including on the premises of any natural or legal person in receipt of payments from the budget.

In Switzerland, audits by the Court of Auditors shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent national departments. The Court of Auditors and the national audit bodies of Switzerland shall cooperate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The Court of Auditors shall have at least the same rights as the Commission as laid down in Article 5(7) of Regulation (EU) No 514/2014 and Article 7 of this Agreement. Article 9 Public procurement Switzerland shall apply its national law on public procurement in accordance with the provisions of Annex 4 to the Agreement Establishing the World Trade Organization (Agreement on Government Procurement) and the Agreement between the European Community and the Swiss Confederation on certain aspects of government procurement. Switzerland shall provide the Commission with a description of its public procurement procedures. Moreover, it shall provide information on the public procurement procedures applied in each annual implementation report referred to in Article 54 of Regulation (EU) No 514/2014. Article 10 Financial contributions 1.For the years 2016 to 2018, Switzerland shall make annual payments to the budget of the ISF – Borders and Visa in accordance with the following table: (All amounts in EUR) 2016 2017 2018 Switzerland 25 106 140 25 106 140 25 106 140 2.The contributions of Switzerland for the years 2019 and 2020 shall be calculated in accordance with its respective Gross Domestic Product (GDP) as a percentage of the GDP of all States participating in the ISF – Borders and Visa in accordance with the formula described in the Annex. 3.The financial contributions referred to in this Article shall be due by Switzerland irrespective of the date of adoption of its national programme referred to Article 14 of Regulation (EU) No 514/2014. Article 11 Use of financial contributions 1.The total of the annual payments of 2016 and 2017 shall be assigned as follows: (a)75% to the mid-term review referred to in Article 8 of Regulation (EU) No 515/2014; (b)15% to the development of IT systems referred to in Article 15 of Regulation (EU) No 515/2014, subject to the adoption of the relevant Union legislative acts by 30 June 2017;

(c)10% to Union actions referred to in Article 13 of Regulation (EU) No 515/2014 and emergency assistance referred to in Article 14 of Regulation (EU) No 515/2014. Where the amount referred to in point (b) is not allocated or spent, the Commission shall, pursuant to the procedure set in the second sub-paragraph of Article 5(5)(b) of Regulation (EU) 515/2014, re-allocate it to the specific actions referred to in Article 7 of Regulation (EU) No 515/2014. If this Agreement does not enter in force or is not applied on a provisional basis by 1 June 2017, the full contribution of Switzerland shall be used in accordance with paragraph 2 of this Article. 2.The total of the annual payments of 2018, 2019 and 2020 shall be assigned as follows: (a)40% to specific actions referred to in Article 7 of Regulation (EU) No 515/2014; (b)50% to the development of IT systems referred to in Article 15 of Regulation (EU) No 515/2014, subject to the adoption of the relevant Union legislative acts by 31 December 2018; (c)10% to Union actions referred to in Article 13 of Regulation (EU) No 515/2014 and emergency assistance referred to in Article 14 of Regulation (EU) No 515/2014. Where the amount referred to in point (b) is not allocated or spent, the Commission shall, pursuant to the procedure set in the second sub-paragraph of Article 5(5)(b) of Regulation (EU) 515/2014, re-allocate it to the specific actions referred to in Article 7 of Regulation (EU) No 515/2014. 3.The additional amounts assigned to the mid-term review, Union actions, specific actions or the programme on the development of IT systems shall be used in accordance with the relevant procedure laid down in one of the following provisions: (a)Article 6(2) of Regulation (EU) No 514/2014; (b)Article 8(7) of Regulation (EU) No 515/2014; (c)Article 7(3) of Regulation (EU) No 515/2014; (d)the second subparagraph of Article 15 of Regulation (EU) 515/2014. 4. Each year, the Commission may use up to 181 424 EUR of the payments made by Switzerland to finance the administrative expenditure related to staff or external staff necessary for supporting the implementation by Switzerland of Regulation (EU) No 515/2014 and this Agreement. Article 12 Confidentiality Information communicated or acquired in any form whatsoever pursuant to this Agreement shall be covered by professional secrecy and protected in the same way as similar information is protected by the provisions applicable to the Union institutions and by the laws of Switzerland. Such information shall not be communicated to persons other than those within the Union institutions, in the Member States or in Switzerland whose functions require them to know it, nor may it be used for purposes other than to ensure effective protection of the financial interests of the Parties. Article 13 Designation of Responsible Authority 1. Switzerland shall notify the Commission of the formal designation at ministerial level of the Responsible Authority responsible for the management and control of expenditure under the ISF – Borders and Visa, as soon as possible after the approval of the national programme.

2. The designation referred to in paragraph 1 shall be made subject to the body complying with the designation criteria on internal environment, control activities, information and communication, and monitoring laid down in or on the basis of Regulation (EU) No 514/2014. 3. The designation of a Responsible Authority shall be based on an opinion of an audit body, which may be the Audit Authority, which assesses the Responsible Authority’s compliance with the designation criteria. That body may be the autonomous public institution responsible for monitoring, evaluating and auditing the administration. The audit body shall function independently of the Responsible Authority and shall carry out its work in accordance with internationally accepted audit standards. Switzerland may base its decision on designation on whether the management and control systems are essentially the same as those in place for the previous period and whether they have functioned effectively. If the existing audit and control results show that the designated body no longer complies with the designation criteria, Switzerland shall take the necessary measures to ensure that deficiencies in the implementation of the tasks of that body are remedied, including by ending the designation. Article 14 Definition of financial year For the purpose of this Agreement, the financial year referred to in Article 60(5) of Regulation (EU, Euratom) No 966/2012 shall cover expenditure paid and revenue received and entered into the accounts of the Responsible Authority in the period commencing on 16 October of the year 'N-1' and ending on 15 October of year 'N'. Article 15 Eligibility of expenditure By way of derogation from Article 17(3)(b) and (4) of Regulation (EU) No 514/2014, expenditure shall be eligible where it has been paid by the Responsible Authority before the Responsible Authority's formal designation in accordance with Article 13 of this Agreement, provided that the management and control systems applied before are essentially the same as the ones in force after the formal designation of the Responsible Authority. Article 16 Request for payment of the annual balance 1. By 15 February of the year following the financial year, Switzerland shall submit to the Commission the documents and information required in points (b) and (c) of the first subparagraph of Article 60(5) of Regulation (EU, Euratom) No 966/2012. By way of derogation from Article 44(1) of Regulation (EU) No 514/2014 and in accordance with the third subparagraph of Article 60(5) of Regulation (EU, Euroatom) No 966/2012, Switzerland shall submit to the Commission the opinion referred to in the second subparagraph of Article 60(5) of Regulation (EU, Euratom) No 966/2012 by 15 March of the year following the financial year. The documents submitted referred to in this paragraph shall serve as the request for payment of the annual balance. 2. The documents referred to in paragraph 1 shall be drawn up according to the models adopted by the Commission on the basis of Article 44(3) of Regulation (EU) No 514/2014. Article 17 Implementation report By way of derogation from Article 54(1) of Regulation (EU) No 514/2014 and in accordance with the third subparagraph of Article 60(5) of Regulation (EU, Euratom) No 966/2012, Switzerland shall submit to the Commission an annual report on the implementation of the national programme in the previous financial year by 15 February each year until and including 2022 and may, at the appropriate level, publish this information. The first annual report on the implementation of the national programme shall be submitted on 15 February following the entry into force of this Agreement or the start of its provisional application. The first report shall cover the financial years from 2014 onwards until the financial year before the first annual report was due in accordance with the second subparagraph. Switzerland shall submit a final report on the implementation of the national programme by 31 December 2023.

Article 18 Electronic data exchange system In accordance with Article 24(5) of Regulation (EU) No 514/2014, all official exchanges of information between Switzerland and the Commission shall be carried out using an electronic data exchange system provided for by the Commission for that purpose. Article 19 Entry into force 1.The Secretary General of the Council of the Union shall act as depositary of this Agreement. 2.The Parties shall approve this Agreement in accordance with their own procedures. They shall notify each other of the completion of those procedures. 3.This Arrangement shall enter into force on the first day of the first month following the day of the last notification referred to in paragraph 2. 4.Except for Article 5, the Parties shall apply this Agreement provisionally as from the day following that of its signature, without prejudice to constitutional requirements. Article 20 Validity and termination 1.Either the Union or Switzerland may terminate this Agreement by notifying the other Party of its decision. The Agreement shall cease to apply three months after the date of such notification. Projects and activities in progress at the time of termination shall continue according to the conditions laid down in this Agreement. The Parties shall settle by mutual agreement any other consequences of termination. 2.This Agreement shall be terminated when the Association Agreement with Switzerland is terminated in accordance with Article 7(4), Article 10(3) or Article 17 of the Association Agreement with Switzerland. Article 21 Languages This Agreement shall be drawn up in a single original in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of those texts being equally authentic.

ANNEX Formula to calculate the financial contributions for the years 2019 and 2020 and payment details (1)The financial contribution of Switzerland to the ISF – Borders and Visa referred to in the second and third subparagraphs of Article 5(7) of Regulation 515/2014 is calculated as follows for the years 2019 and 2020: For each single year from 2013 to 2017, the final figures of the Gross Domestic Product (GDP) of Switzerland available on 31 March of 2019 shall be divided by the sum of the GDP figures of all the States participating in the ISF – Borders and Visa for the respective year. The average of the obtained five percentages for the years 2013 to 2017 shall be applied to the sum of the actual annual appropriations for the ISF – Borders and Visa for the years 2014 to 2019 and the annual commitment appropriation for the ISF – Borders and Visa for the year 2020 as included in the draft General budget of the European Union for the financial year 2020 adopted by the Commission to obtain the total amount to be paid by Switzerland over the whole period of implementation of the ISF – Borders and Visa. From this amount, the annual payments effectively made by Switzerland in accordance with Article 10(1) of this Agreement shall be subtracted in order to obtain the total amount of its contributions for the years 2019 and 2020. Half of this amount shall be paid in 2019 and the other half in 2020.