This Decision shall enter into force on the date of its adoption.

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

Minor changes to the draft Decision may be agreed to by the representatives of the Union in the Joint Committee without a further decision of the Council.

The position to be taken by the European Union within the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, as regards the amendment of Appendix II to the Convention, shall be based on the draft Decision of the Joint Committee attached to this Decision.

(6)The position of the Union within the Joint Committee of the Convention should therefore be based on the attached draft Decision,

(5)Those special provisions derogating from those provision laid down in appendix I should be laid down in a new annex on trade covered by the Central European Free Trade Agreement (CEFTA) involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process which is to be included to Appendix II. Appendix II to the Convention should be amended accordingly.

(4)Decision 3/2015 aims at facilitating trade amongst CEFTA parties by easing the conditions for cumulation laid down in Article 3 of Appendix I to the Convention concerning cumulation of origin and by suppressing the prohibition of drawback of, or exemption from, customs duties laid down in Article 14 of Appendix I to the Convention. These derogation provisions only apply for the purposes of determining the origin of goods in trade between the CEFTA parties.

(3)The Joint Committee set up under the Central European Free Trade Agreement (CEFTA) to which the Republic of Moldova and the participants in the Union’s Stabilisation and Association Process (hereafter ‘CEFTA Parties’) are Parties, adopted Decision 3/2015 on 26 November 2015, laying down special provisions derogating from the provisions laid down in Appendix I to the Convention.

(2)Article 1 of Appendix II to the Convention provides that the Contracting Parties may apply, in their bilateral trade, special provisions derogating from the general provisions laid down in Appendix I to that Convention. Those special provisions are laid down in the Annexes to Appendix II.

(1)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the "Convention"), which sets out the rules regarding the origin of goods traded in the context of free trade agreements between countries of the pan-Euro Mediterranean area, as well as with countries who are party to the Union's Stabilisation and Association Process, entered into force on 1 January 2012.

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 adopted, on behalf of the European Union, in the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin with regard to the amendment of Appendix II to that Convention

The derogations on which the EU needs to take a position in the Joint Committee of the Convention only concern preferential trade between CEFTA parties. There is therefore no need to conduct an impact assessment.

The Contracting Parties to the Convention and the Member States were informed of the request at the meeting of the Joint Committee of the Convention of 28 September 2016.

The decision to be taken by the Joint Committee of the Convention falls under this provision.

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides that when a decision having legal effect needs to be taken in a body set up by an international agreement, the Council, on a proposal from the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position to be adopted on the European Union’s behalf.

The legal basis for the Council Decision is Article 207 in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.

It is to be noted that similar derogations are already applicable in the trade between certain Contracting Parties.

Article 4(3) of the Convention stipulates that amendments to the Convention and to the Appendixes shall be adopted by decision of the Joint Committee of the Convention. In accordance with Article 3(2) the Joint Committee shall act by unanimity.

It is also ensured that these derogating provisions have no effect on trade with other Contracting Parties of the Convention. Article 1 of Decision 3/2015 stipulates that products that acquired origin in a CEFTA party by application of these derogations shall be excluded from cumulation under the general provisions of the Convention.

The other provisions of Decision 3/2015 ensure the smooth implementation of these derogating provisions.

The Decision 3/2015 of the Joint Committee of CEFTA contains provisions derogating from the provisions of Appendix I to the Convention and requires therefore an amendment of Appendix II to the Convention. Firstly, it derogates from Article 14 of Appendix I, which states the principle of a prohibition of duty drawback. Secondly, it derogates from Article 3 of Appendix I concerning cumulation since full cumulation is not covered by this provision.

The Joint Committee of the Central European Free Trade Agreement (CEFTA), involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process (hereafter ‘CEFTA Parties’) introduced by its Decision 3/2015 of 26 November 2015 a possibility of duty drawback and of full cumulation in the trade between the CEFTA parties. All CEFTA parties are Contracting Parties to the Convention.

Article 1 of Appendix II to the Convention provides that the Contracting Parties may apply in their bilateral trade special provisions derogating from the general provisions laid down in Appendix I. These special provisions are laid down in the Annexes to Appendix II.

The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (hereafter 'the Convention') lays down provisions on the origin of goods traded under relevant Agreements concluded between the Contracting Parties.

on the position to be adopted, on behalf of the European Union, in the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin with regard to the amendment of Appendix II to that Convention

EUROPEAN COMMISSION Brussels, 21.3.2017 COM(2017) 133 final ANNEX to the Proposal for a Council decision on the position to be adopted, on behalf of the European Union, in the Joint Committee of the Regional Convention of pan-Euro-Mediterranean preferential rules of origin with regard to the amendment of Appendix II to that Convention



ATTACHMENT DECISION OF THE JOINT COMMITTEE OF THE REGIONAL CONVENTION on pan-Euro-Mediterranean preferential rules of origin N° of amending the provisions of Appendix II to the Regional Convention on pan-Euro-mediterranean preferential rules of origin by introducing a possibility of duty drawback and of full cumulation in the trade covered by the Central European Free Trade Agreement (CEFTA) involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process The Joint Committee, Having regard to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, hereafter ‘the Convention’, Whereas: (1)Article 1(2) of the Convention provides that Appendix II sets out special provisions applicable between certain Contracting Parties and derogating from the provisions laid down in Appendix I. (2)Article 1 of Appendix II to the Convention provides that the Contracting Parties may apply in their bilateral trade special provisions derogating from the provisions laid down in Appendix I and that those provisions are laid down in the annexes to Appendix II. (3)The Republic of Serbia acting as the chair of the CEFTA subcommittee on Customs and rules of origin in the framework of the Central European Free Trade Agreement (CEFTA) involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process (hereafter ‘CEFTA Parties’) informed the secretariat of the Joint Committee of the Convention about Decision 3/2015 of 26 November 2016 of the Joint Committee of the Central European Free Trade Agreement introducing a possibility of duty drawback and of full cumulation in the trade between the Republic of Modova and the participants in the European Union’s Stabilisation and Association Process in the framework of the CEFTA. (4)Article 4(3)(a) of the Convention provides that the Joint Committee shall adopt by unanimity amendments to the Convention including amendments to the Appendixes, HAS ADOPTED THIS DECISION: Article 1 Appendix II to the Convention, containing the derogations to the provisions of Appendix I to the Convention, is amended and complemented by Annexes XIII, G and H to Appendix II of the Convention, contained in the Annexes of this Decision. Article 2 Annexes XIII, G and H to Appendix II of the Convention, contained in the Annexes to this Decision, specify the conditions for application of the prohibition of duty drawback and full cumulation in the trade between the CEFTA parties. Article 3

The Annexes shall form an integral part of this Decision. Article 4 This Decision shall enter into force on the date of its adoption by the Joint Committee. The date of application shall be … Done at Brussels, For the Joint Committee The Chair



Annex I Annex XIII of Appendix II Trade covered by the Central European Free Trade Agreement (CEFTA) involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process Article 1 Exclusions from cumulation of origin Products having acquired their origin by application of the provisions foreseen in this Annex shall be excluded from cumulation as referred to in Article 3 of Appendix I. Article 2

Cumulation of origin For the purpose of implementing Article 2(1)(b) of Appendix I, working or processing carried out in the Republic of Moldova or the participants in the European Union’s Stabilisation and Association Process, hereafter referred to as the ‘CEFTA Parties’, shall be considered as having been carried out in any other CEFTA Party when the products obtained undergo subsequent working or processing in the Party concerned. Where, pursuant to this provision, the originating products obtained in two or more of the Parties concerned, they shall be considered as originating in the CEFTA party concerned only if the working and processing goes beyond the operations referred to in Article 6 of Appendix I. Article 3 Proofs of Origin 1. Without prejudice to Article 16(4) and (5) of Appendix I, a movement certificate EUR.1 shall be issued by customs authorities of a CEFTA Party if the products concerned can be considered as products originating in a CEFTA Party with application of the cumulation referred to in Article 2 of this Annex, and fulfil the other requirements of Appendix I. 2. Without prejudice to Article 21 (2) and (3) of Appendix I, an origin declaration may be made out if the products concerned can be considered as products originating in a CEFTA Party, with application of the cumulation referred to in Article 2 of this Annex, and fulfil the other requirements of Appendix I. Article 4 Supplier’s declarations 1. When a movement certificate EUR.1 is issued or an origin declaration is made out in a CEFTA Party for originating products, in the manufacture of which goods coming from other CEFTA Parties which have undergone working or processing in these Parties without having obtained preferential originating status, have been used, account shall be taken of the supplier’s declaration given for those goods in accordance with this Article. 2. The supplier’s declaration referred to in paragraph 1 of this Article shall serve as evidence of the working or processing undergone in the CEFTA Parties by the goods concerned for the purpose of determining whether the products in the manufacture of which these goods are used, can be considered as products originating in the CEFTA Parties or fulfil the other requirements of Appendix I. 3. A separate supplier’s declaration shall, except in the cases provided in paragraph 4 of this Article, be made out by the supplier for each consignment of goods in the form prescribed in Annex G to this appendix on a sheet of paper annexed to the invoice, the delivery note or any other commercial document describing the goods concerned in sufficient detail to enable them to be identified.

4. Where a supplier regularly supplies a particular customer with goods for which the working or processing undergone in the CEFTA Parties is expected to remain constant for a considerable period of time, he may provide a single supplier’s declaration to cover subsequent consignments of those goods (hereinafter referred to as a “long-term supplier’s declaration”). A long-term supplier’s declaration may normally be valid for a period of up to one year from the date of making out the declaration. The customs authority of a CEFTA Party where the declaration is made out lays down the conditions under which longer periods may be used. The long-term supplier’s declaration shall be made out by the supplier in the form prescribed in Annex H of this Appendix and shall describe the goods concerned in sufficient detail to enable them to be identified. It shall be provided to the customer concerned before he is supplied with the first consignment of goods covered by that declaration or together with his first consignment. The supplier shall inform his customer immediately if the long-term supplier’s declaration is no longer applicable to the goods supplied. 5. The supplier’s declarations referred to in paragraphs 3 and 4 of this Article shall be typed or printed in English, in accordance with the provisions of the national law of the CEFTA Party concerned where the declaration is made out, and shall bear the original signature of the supplier in manuscript. The declaration may also be handwritten; in such a case, it shall be written in ink in printed characters. 6. The supplier making out a declaration shall be prepared to submit at any time, at the request of the customs authority of the CEFTA Party where the declaration is made out, all appropriate documents proving that the information given on that declaration is correct. Article 5 Supporting documents Supplier’s declarations proving the working or processing undergone in the CEFTA Parties by materials used, made out in one of these parties, shall be treated as a document referred to in Articles 16(3) and 21(5) of Appendix I and Article 4(6) of this Annex used for the purpose of proving that products covered by a movement certificate EUR.1 or an origin declaration may be considered as products originating in a CEFTA Party and fulfil the other requirements of Appendix I.

Article 6 Preservation of supplier’s declarations The supplier making out a supplier’s declaration shall keep for at least three years copies of the declaration and of all the invoices, delivery notes or other commercial documents to which that declaration is annexed as well as the documents referred to in Article 4(6) of this Annex. The supplier making out of a long-term supplier’s declaration shall keep for at least three years copies of the declaration and of all the invoices, delivery notes or other commercial documents concerning goods covered by that declaration sent to the customer concerned, as well as the documents referred to in Article 4(6) of this Annex. This period shall begin from the date of expiry of validity of the long-term supplier’s declaration. Article 7 Administrative cooperation Without prejudice to Articles 31 and 32 of Appendix I, in order to ensure the proper application of this Annex, the CEFTA Parties shall assist each other, through the competent customs authorities, in checking the authenticity of the movement certificates EUR.1, the origin declarations or the supplier’s declarations and the correctness of the information given in these documents. Article 8 Verification of supplier’s declarations 1. Subsequent verifications of supplier’s declarations or long-term supplier’s declarations may be carried out at random or whenever the customs authority of the Party where such declarations have been taken into account to use a movement certificate EUR.1 or to make out an origin declaration have reasonable doubts as to the authenticity of the document or the correctness of the information given in this document. 2. For the purposes of implementing the provisions of paragraph 1 of this Article, the customs authority of the Party referred to in paragraph 1 of this Article shall return the supplier’s declaration or the long-term supplier’s declaration and invoices, delivery notes or other commercial documents concerning goods covered by such declaration, to the customs authority of the Party where the declaration was made out, giving, where appropriate, the reasons of substance or form of the request for verification.

They shall forward, in support of the request for subsequent verification, any documents and information that have been obtained, suggesting that the information given in the supplier’s declaration or the long-term supplier’s declaration is incorrect. 3. The verification shall be carried out by the customs authority of the Party where the supplier’s declaration or the long-term supplier’s declaration was made out. For this purpose, they shall have the right to call for any evidence and carry out any inspection of the supplier’s accounts or any other check which they consider appropriate. 4. The customs authority requesting the verification shall be informed of the results thereof as soon as possible. These results shall indicate clearly whether the information given in the supplier’s declaration or the long-term supplier’s declaration is correct and make it possible for them to determine whether and to what extent such declaration could be taken into account for issuing a movement certificate EUR.1 or for making out an origin declaration. Article 9 Penalties Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products. Article 10 Prohibition of drawback, or of exemption from, customs duties The prohibition in paragraph 1 of Article 14 of Appendix I shall not apply in bilateral trade between CEFTA Parties. ANNEX II ANNEX G of Appendix II

Supplier’s declaration for goods which have undergone working or processing in the CEFTA Parties without having obtained preferential origin status The supplier’s declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced. SUPPLIER’S DECLARATION for goods which have undergone working or processing in the CEFTA Parties without having obtained preferential origin status I, the undersigned, supplier of the goods covered by the annexed document, declare that: 1. The following materials which do not originate in the CEFTA Parties have been used in the CEFTA Parties to produce these goods: Description of the goods supplied() Description of non-originating materials used Heading of non-originating materials used() Value of non-originating materials used() Total value 2. All the other materials used in the CEFTA Parties to produce these goods originate in the CEFTA Parties; 3. The following goods have undergone working or processing outside CEFTA Parties, in accordance with Article 11 of Appendix I to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin and have acquired the following total added value there:

Description of the goods supplied …………………………………………. …………………………………………. …………………………………………. …………………………………………. Total added value acquired outside the CEFTA Parties …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. (Place and date) …………………………………………. …………………………………………. …………………………………………. (Address and signature of the supplier; in addition the name of the person signing the declaration has to be indicated in clear script) ANNEX III

ANNEX H of Appendix II Long-term supplier’s declaration for goods which have undergone working or processing in the CEFTA Parties without having obtained preferential origin status The long-term supplier’s declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced. LONG-TERM SUPPLIER’S DECLARATION for goods which have undergone working or processing in the CEFTA Parties without having obtained preferential originating status I, the undersigned, supplier of the goods covered by this document, which are regularly supplied to ……………………………………… , declare that: 1. The following materials which do not originate in the CEFTA Parties have been used in the CEFTA Parties to produce these goods: Description of the goods supplied() Description of non-originating materials used Heading of non-originating materials used() Value of non-originating materials used() Total value