COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 429 final 
Brussels, 4 November 1991 
Proposal for a 
COUNCIL DECISION 
on the conclusion of an Agreement 
in the form of an exchange of letters 
between the European Economic Community 
and the Republic of San Marino 
(presented by the Commission) 
z 
EXPLANATORY MEMORANDUM 
1. On 18 December of last year, the Council adopted directives authorizing 
the Commission to begin negotiations for an agreement in the form of an 
exchange of letters with San Marino. 
Negotiating sessions took place in Brussels on 14 February and 4 July on 
the basis of those directives. 
2. At the close of the second session, on 4 July, a draft exchange of 
letters was initialled. 
The Agreement establishes a customs union between the two parties1, to 
apply to all the products listed in Chapters 1 to 97 of the CCT except for 
the products covered by the ECSC Treaty. The customs union follows the 
usual practice of eliminating all import and export duties between the 
contracting parties, subject to special provisions regarding a form of 
import charge levied at present by San Marino. It also forbids all 
quantitative restrictions or measures with an equivalent effect in trade 
between San Marino and the Community. With regard to non-Community 
countries, San Marino will apply the Common Customs Tariff, provisions 
needed for the proper operation of the customs union, the provisions of the 
Community's common commercial policy and the agricultural regulations 
(except for refunds and compensatory amounts for exports). 
In addition to its provisions on trade, the Agreement establishes 
cooperation between the Community and San Marino in a number of fields, 
particularly industry and services, the environment, tourism and culture. 
A section on social matters provides for equal treatment for workers from 
San Marino and from the Community with regard to working conditions, 
remuneration and social security, under the terms laid down in the 
Agreement. 
Declarations attached to the Agreement deal with matters such as transport, 
teacher and student exchanges, services, intellectual, industrial and 
commercial property, recognition of qualifications and technical 
regulations. 
A Cooperation Committee will be set up to administer the Agreement. 
1 San Marino is already part of the customs territory of the Community. 
3 
The Agreement is due to enter into force on 1 July 1992. It is of 
indefinite duration, but may be reviewed. 
3. The Commission considers that the draft Agreement, in accordance with 
the Council's negotiating directives, provides a coherent basis for the 
establishment of relations between the Community and San Marino and that it 
respects San Marino's interests and special characteristics. 
4. The Commission therefore invites the Council to approve the Agreement 
and begin the process of signature and conclusion. 
It is accordingly forwarding to the Council: 
- a proposal for a Council Decision on the conclusion of an Agreement in 
the form of an exchange of letters between the European Economic Community 
and the Republic of San Marino; 
- the draft Agreement (and its annex) resulting from the version 
initialled; 
- the declarations attached to the draft Agreement. 
7 
Proposal for a 
COUNCIL DECISION 
on the conclusion of an Agreement 
in the form of an exchange of letters 
between the European Economic Community 
and the Republic of San Marino 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Articles 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas in furtherance of its external economic objectives and taking 
account of the special situation of San Marino, the Community should 
approve the Agreement in the form of an exchange of letters between the 
European Economic Community and the Republic of San Marino; 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreement in the form of an exchange of letters between the European 
Economic Community and the Republic of San Marino, including the Agreement 
and declarations it incorporates, is hereby approved on behalf of the 
Commun i t y. 
The texts of the items referred to above are attached to this Decision. 
s 
Article 2 
The President of the Council shall give the notification provided for in 
Article 30 of the Agreement.1 
Done at Brussels, 
For the CounciI 
The President 
1 The date of entry into force of the Agreement will be published in the 
Official Journal of the European Communities by the General Secretariat 
of the CounciI. 
6 
AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 
BETWEEN 
THE EUROPEAN BCXHXEC O0MMDNITÏ 
AND 
THE REPUBLIC OF SAN MARINO 
} 
A. Letter from the Republic of San Marino 
Sir, 
Please find attached the text of the Agreement between the Repnhllo of San 
Marino and the European Economic Community. I have the honour to confirm 
that the Republic of San Marino accepts the Agreement. 
Please would you confirm that the European Economic Community accepts the 
Agreement. The Agreement between the Republio of San Marino and the 
European Economic Community shall thereby be concluded, as set out In the 
attached text. 
Please accept, Six, the assurance of my highest consideration. 
For the Government of the Republio of San Marino 
$ 
Brussels, ... 
B. Letter from the Community 
Sir, 
I acknowledge receipt of your letter accepting the Agreement between the 
Republio of San Marino and the European Economio Community. Your letter 
reads as follows: 
"Please find attached the text of the Agreement between the Republic of San 
Ma.r1no and the European Kooncmlo Community. I have the honour to confirm 
that the Republio of San Marino accepts the Agreement. 
Please would you confirm that the European Economic Community accepts the 
Agreement. The Agreement between the Republic of San Marino and the 
European Economic Community shall thereby be concluded, as set out in the 
attached text." 
I have the honour to confirm that the European Economio Community accepts 
the text of this Agreement. The Community's acceptance of the Agreement 
will be given on completion of the necessary internal procedures and 
notified to you in accordance with Article 24 of the Agreement. 
Please accept, Sir, the assurance of my highest consideration. 
On behalf of 
the Council of the European Communities 
3 
Brussels, 4 July 1991 
HSSaSENI ON CUSTOMS UNION AND COOPERATION 
BETWEEN THE HOROPBAN BOONOMIC OOMMONnY AND 
THE REPUBLIC OF SAN MARINO 
4o 
THE REPUBLIC OF SAN MARINO 
and 
THE EOROPBW HXHQMIC COMMDNHy, 
RESOLVED to consolidate and extend the existing close relations between the 
European Economic Community and the Republic of San Marino, 
OONSIEERINGr THAT existing links between the two Parties, particularly in 
commercial, economio, social and cultural sectors, should be strengthened 
by establishing coopération between San Marino and the European Economic 
Community In respect of all matters of common Interest, 
CONSIDERING THAT, owing to the situation of San Marino and its present 
status within the customs territory of the Community, a customs union 
should be established between San Marino and the European Economic 
Community, 
HAVE AGREED AS KXIOtfS: 
Article 1 
The purpose of this Agreement between the European Economic Community and 
the Republio of San Marino is to establish a customs union between the two 
Parties and promote comprehensive cooperation between them with the aim of 
contributing to the social and economic development of San Marino and 
strengthening relations between the Parties. 
TITLE I 
CUSTOMS UNION 
Article 2 
A customs union is hereby established between the European Economie 
Community and San Marino for products covered by Chapters 1 to 97 of the 
Common Customs Tariff, except products falling within the scope of the 
Treaty establishing the European Coal and Steel Community. 
* n 
Article 5 
1. The provisions of this Title shall apply to: 
(a) goods produced in the Community or in San Marino, 1nrfl Tiding those 
obtained wholly or in part from products which come from third 
countries and are in free circulation in the Community or in San 
Marino; 
(b) goods which come from third countries and are in free circulation 
in the Community or in San Marino. 
2. Products coming from third countries shall be considered to be in free 
circulation in the Community or in San Marino If the import formalities 
have been compiled with and any customs duties or charges having equivalent 
effect which are payable have been levied, and there has been no total or 
partial drawback of such duties or charges In respect of the said products. 
Article 4 
The provisions of this Title shall also apply to goods obtained or produced 
in the Community or in San Marino, in the manufacture of which were used 
products coming from third countries and not in free circulation either in 
the Community or in San Marino. These provisions shall, however, apply to 
those goods only if the exporting Contracting Party levies the customs 
duties laid down in the Community for third country products used in their 
manufacture. 
Article 5 
1. The Contracting Parties shall refrain from introducing between 
themselves any new customs duties on imports or exports or charges 
having equivalent effect. 
2. San Merino also undertakes not to adjust duties referred to in 
paragraph 1 as applied to Imports from the Community on 1 January 1991, 
without prejudice to existing commitments between San Marino and Italy 
pursuant to the exchange of letters of 21 December 1972. 
Article 6 
1. Trade between the Community and San Marino shall be exempt from all 
Import and export duties and charges having equivalent effect, subject 
to the provisions of paragraphs 2 and 3. 
1 < 
2. In order that the charges having equivalent effect currently applied to 
imports from the GDmmunity may be abolished on 1 January 1996, 
San JfaHtm undertakes to introduce, within six months of the entry into 
force of the Agreement, a supplementary tax corresponding to that 
currently levied on imported goods, to be chargeable an domestic 
products intended for home consumption. The supplementary tax will 
apply in full on the above date. It shall be apjxLioable as a 
countervailing measure and shall be calculated on the added value of 
domestlo products at rates equal to those applied to imported goods of a 
similar kind. 
3. (a) On the entry into force of the Agreement the Community, with the 
exception of the Klnglnm of Spain and the Portuguese Republic, 
shall admit imports from San Marino exempt from customs duty. 
(b) From the entry into force of the Agreement the Kingdom of Spain and 
the Portuguese Republio shall apply the same customs duties in 
respect of San Marino as they apply in respect of the Community as 
constituted on 31 December 1985. 
4. In trade in agricultural products between the Community and San Marino, 
San Marino undertakes to adopt Community veterinary, plant health and 
quality regulations where necessary for the proper functioning of the 
Agreement. 
Article 7 
1. From the entry into force of the Agreement San Marino shall apply in 
respect of countries not members of the Community: 
the Common Customs Tariff; 
laws, regulations and administrative provisions applicable to 
customs matters in the Ganraunity and necessary for the proper 
functioning of the customs union; 
the common commercial policy of the Community; 
Community regulations on trade In agricultural products covered by 
Annex II to the Treaty establishing the European Economic 
Community, with the exception of refunds and compensatory amounts 
accorded for exports; 
Community veterinary, plant health and quality regulations where 
necessary for the proper functioning of the Agreement. 
13 
The provisions referred to in this paragraph shall be those applicable 
at the time in the Community. 
2. The provisions referred to in the second to fifth Indents of paragraph 1 
shall be determined in greater detail by the Cooperation Committee. 
3. By way of derogation from the first indent of paragraph 1 publications, 
works of art, scientific or teaching materials and medical supplies or 
equipment offered to the San Marino government, insignlas, medals, 
stamps, printed matter and other similar objects or paper destined for 
use by the government shall be exempt from customs duties. 
Article 8 
1. (a) Over a period of five years from the entry into force of the 
Agreement, and beyond that period if no agreement can be reached in 
aocordanoe with 1(b), San Marino shall authorize the Community, 
acting on behalf of and for San Marino, to carry out customs 
clearance formalities, in particular release for free circulation 
of products sent from third countries to San Marino. Such 
formalities will be effected by Community customs of floes. 
(b) At the end of this period, and under Article 26, San Mu-Htm may 
exercise its right to carry out customs clearance formalities, 
following agreement of the Contracting Parties. 
2. Where import duties are payable on goods pursuant to paragraph 1, these 
duties shall be levied on behalf of San Marino. San Marino shall undertake 
not to refund these sums directly or Indirectly to the parties concerned, 
subjeot to the provisions of paragraph 4. 
3. The Cooperation Committee shall decide on: 
(a) possible changes to the list of the customs of floes competent to 
clear the goods referred to In paragraph 1 and the procedure for 
forwarding the said goods to San Marino; 
(b) the arrangements for assigning to the San Marino Exchequer the 
amounts collected in accordance with paragraph 2, and the 
percentage to be deducted by the European Economio Community to 
cover administrative costs in accordance with the relevant 
regulations in force within the Community; 
(o) any other arrangements necessary for the proper implementation of 
this Artiole. 
4. The taxes and levies on imports of agricultural products may be used by 
San MfrHtm for aiding production or exports. San Marino undertakes, 
however, not to accord higher export refunds or compensatory amounts than 
those accorded by the European Economio Community for exports to third 
countries. 
Article 9 
Quantitative restrictions on Imports and exports and all measures having 
equivalent effect between the Community and San Marino shall be prohibited 
from the entry into force of the Agreement. 
Article 10 
The Agreement shall not preclude prohibitions or restrictions on imports, 
exports or goods in transit justified on grounds of public morality, public 
policy or public security; the protection of health and life of humans, 
animals or plants; the protection of national treasures possessing 
artistic, historic or archaeologioal value; the protection of industrial or 
commercial property; or controls relating to gold and silver. Such 
prohibitions or restrictions shall not, however, constitute a means of 
arbitrary discrimination or a disguised restriction on trade between the 
Contracting Parties. 
Article 11 
The Contracting Parties shall refrain from any domestic tax measure or 
practice leading directly or Indirectly to discrimination between the 
products of one Contracting Party and similar products from the other 
Contracting Party. 
Products sent to the territory of one of the Contracting Parties shall not 
be eligible for a refund of domestio charges which is higher than the 
charges which have been levied directly or Indirectly. 
is 
Article 12 
1. If serious disturbances arise in any sector of the economy of one of the 
Contracting Parties, the Contracting Party oonoemed may take the necessary 
safeguard measures in accordance with the procedures, and subject to the 
conditions, of the paragraphs below. 
2. In the case referred to in paragraph 1, before taking the measures 
provided for therein or, In the oases covered by paragraph 3, as soon as 
possible, the Contracting Party in question shall provide the Cooperation 
Committee with all relevant information required for a detailed examination 
of the situation with a view to seeking a solution acceptable to the 
Contracting Parties. At the request of the other Contracting Party, 
consultations shall take place within the Cooperation Committee before the 
Contracting Party oonoemed takes appropriate measures. 
3. Where exceptional circumstances require Immediate action making prior 
examination impossible, the Contracting Party concerned may apply forthwith 
such precautionary measures as are strictly necessary to remedy the 
situation. 
4. In the selection of measures priority must be given to those which least 
disturb the functioning of the Agreement. Such measures must not exceed 
the limits of what is strictly neoessary to counteract the difficulties 
that have arisen. 
The safeguard measures must be notified immediately to the Cooperation 
Committee, which shall hold regular consultations on them, particularly 
with a view to their abolition as soon as circumstances permit. 
Article 13 
1. In addition to the cooperation provided for in Article 22(8), the 
administrative authorities of the Contracting Parties responsible for 
implementing the provisions of this Agreement shall assist each other in 
other oases so as to ensure oomplianoe with the provisions. 
2. Procedures for the application of paragraph 1 shall be laid down by the 
Cooperation Committee. 
46 
TITLE II 
COOPERATION 
Article 14 
The Community and San Marino shall institute cooperation with the aim of 
strengthening existing links between them on as broad a basis as possible 
for the mutual benefit of the Parties, taking account of their respective 
powers. Cooperation shall focus on the priority areas referred to in 
Articles 15 to 18 of this Title. 
Article 16 
The Contracting Parties undertake to encourage the growth and 
diversification of the industrial and services sectors of the economy of 
San Marino, focusing their cooperation activities on small and medium-sized 
enterprises. 
Article 16 
The Contracting Parties undertake to cooperate on matters relating to 
environmental protection and improvement with the aim of resolving the 
problems caused by contamination of water, soil and air, by erosion and by 
deforestation. They will pay special attention to the problems of 
pollution in the Adriatic Sea. 
Article 17 
In accordance with their respective laws, the Contracting Parties ffl-w-ii 
support cooperation in the tourism sector through operations such as the 
exchange of officials and experts on tourism, exchanges of information and 
tourist statistics, and training in hotel management and administration. 
In this context the Contracting Parties shall pay particular attention to 
the promotion of out-of-season tourism In San Marino. 
Article 18 
The Contracting Parties agree to undertake joint operations in 
communications, information and cultural matters to strengthen existing 
links between them. 
^9 
Such operations may take the following forms: 
- exchanges of information on subjects of mutual Interest in the fields of 
culture and information; 
- events of a cultural nature; 
- cultural exchanges; 
- aoademio exchanges. 
Article 19 
The Contracting Parties may enlarge the scope of this Agreement by mutual 
consent in order to supplement the areas of coopération through agreements 
on specific sectors or activities. 
TITLE HI 
SOCIAL PROVISIONS 
Article 20 
The treatment accorded by each Member State to workers of San Marino 
nationality employed in its territory shall be free from any discrimination 
based on nationality in relation to its own nationals as regards working 
conditions or remuneration. 
San Marino shall accord the same treatment to workers who are nationals of 
a Member State and employed in its territory. 
Article 21 
1. Subject to the provisions of the following paragraphs, workers of 
San Marino nationality and any members of their families living with 
them shall enjoy, in the field of social security, treatment free from 
discrimination based on nationality In relation to nationals of Member 
States in which they are employed. 
2. All periods of insurance, employment or residence completed by such 
workers in the various Member States shall be added together for the 
purpose of pensions and annuities in respect of old age, death and 
invalidity, and also for the purpose of medical care for the workers and 
for members of their families resident in the Community. 
s 
3. The workers in question shall receive family allowances for members of 
their families who are resident in the Community. 
4. The workers in question shall be able to transfer freely to San Marino, 
at the rates applied by virtue of the law of the debtor Member State or 
States, any pensions or annuities in respect of disability, old age, 
death, Industrial accident or occupational disease. 
5. San Marino shall accord to workers who are nationals of a Member State 
and employed in its territory, and to members of their families, 
treatment similar to that specified In paragraphs 1, 3 and 4. 
Article 22 
1. Before the end of the first year following the entry into foroe of this 
Agreement, the Cooperation Committee shall adopt provisions to implement 
the principles set out In Article 21. 
2. The Cooperation Committee shall adopted detailed rules for 
administrative cooperation providing the necessary management and 
control guarantees for the application of the provisions referred to in 
paragraph 1. 
3. The provisions adopted by the Cooperation Committee shall not affect the 
rights or obligations arising from bilateral agreements between 
San Marino and Member States of the Community where those agreements 
provide for more favourable treatment of nationals of San Marino or the 
Member States. 
TITLE IV 
GBŒRAL AND FERAL PROVISIONS 
Article 23 
1. A Cooperation Committee is hereby set up with responsibility for 
administering -the Agreement and ensuring that it is properly 
Implemented. To that end it shall formulate recommendations. It «v^n 
take decisions in the oases provided for in the Agreement. The 
decisions shall be executed by the Contracting Parties in accordance 
with their own regulations. 
2. With a view to the proper implementation of the Agreement, the 
Contracting Parties shall carry out exchanges of information and, at the 
request of either Party, shall consult together In the Cooperation 
Committee. 
3. The Cooperation Committee shall draw up its own rules of procedure. 
^3 
4. The Cooperation Committee shall be composed, on the one hand, of 
representatives of the Commission, assisted by delegates of the Member 
States and, on the other, of representatives of San Marino. 
5. The Cooperation Committee shall take decisions by oommon accord. 
6. The Cooperation Committee shall be chaired by each of the Contracting 
Parties in turn in accordance with the arrangements to be established in 
its rules of procedure. 
7. The Cooperation Committee shall meet at the request of either of the 
Contracting Parties, to be lodged at least one month before the date of 
the intended meeting. Where the Committee is convened under Article 12, 
it shall meet within eight working days from the date on which the date 
is lodged. 
8. In accordance with the procedure laid down in paragraph 1, the 
Cooperation Committee shall establish methods of administrative 
cooperation for the purposes of applying Articles 3 and 4, taking as a 
basis the methods adopted by the Community in respect of trade between 
the Member States. 
Article 24 
1. Any disputes arising between the Contracting Parties over the 
interpretation of the Agreement shall be put before the Cooperation 
Committee. 
2. If the Cooperation Committee does not succeed in settling the dispute at 
its next meeting, each Party may notify the other of the designation of 
an arbitrator; the other Party shall then be required to designate a 
second arbitrator within two months. 
The Cooperation Committee shall designate a third arbitrator. 
The arbitrators' decisions shall be taken by majority vote. 
Each Party in the dispute shall be required to take the measures needed 
to ensure the application of the arbitrators' decision. 
Article 25 
In trade covered by the Agreement: 
- the arrangements applied by San Marino in respect of Community may not 
give rise to any discrimination between the Member States, their 
nationals, or their companies; 
£o 
- the arrangements applied by the Community in respect of San Marino may 
not give rise to any discrimination between San Murine nationals or 
companies. 
Article 26 
TMq Agreement is concluded for an unlimited duration. Within no more than 
five years of its entry into force, the two Parties shall begin 
consultations to examine the results of its application and, if necessary, 
open negotiations on its amendment In the light of that examination. 
Article 27 
Either Contracting Party may denounce this Agreement by notifying the other 
Contracting Party in writing. In that case, the Agreement shall cease to 
have effect six months after the date of such notification. 
Article 28 
This Agreement replaces provisions of agreements concluded between Member 
States of the Community and San Marino that conflict with it, or which are 
identical. 
Article 29 
The Agreement shall apply, on the one hand, to the territories In which the 
Treaty establishing the European Economic Community is applied and under 
the conditions laid down in that Treaty and, on the other, to the territory 
of San Marino. 
Article 30 
1. This Agreement shall enter into force on 1 July 1992, on condition that 
the Contracting Parties have notified each other before that date of the 
completion of the procedures necessary to that effect. 
2. After the date provided for in paragraph 1, the Agreement shall enter 
into force on the first day of the half-year following notification. 
Article 31 
The Annex to this Agreement shall form an Integral part thereof. 
Article 32 
This Agreement is drawn up in two originals in the Danish, Dutch, 
English, French, German, Greek, Italian, Portuguese and Spanish languages, 
each text being equally authentic. 
^ 
ANNEX 
List of customs offices referred to In Article 8(1) (a) 
IAvorno 
Ravenna 
Rimini 
Trieste 
^3 
DECLARATION BY THE OOMMnNTTY 
Where the scale of trade flows so warrants, the Community is prepared to 
negotiate on behalf of and for the Republio of San Marino with countries 
with which it has concluded preferential agreements for an appropriate form 
of récognition of equivalent treatment for products originating in 
San Marino and products originating in the Community; 
^ 
DECLARATION BY THE COMMONITY ON TRANSPORT 
At an appropriate moment and in the light, notably, of progress made in 
drawing up a Community transport policy, the Community will look Into the 
issue of San Marino's access to the market for international transport of 
passengers and goods by road. 
3.S 
DECLARATION BY THE OOMMDNITY ON THE ERASMDS PROGRAMME 
The Community takes note of San Marino's wish to participate, when the time 
is ripe, in the Erasmus programme for exchanges of students and teachers. 
^G 
DECLARATION BY THE OOMMDNITY ON CERTAIN SDBJBCTS 
WHICH MAY BE RAISED IN THE COOPERATION COMMITTEE 
The Community is ready to examine within the framework of the Cooperation 
Committee any problems that may arise between San Marino and the Community 
In the fields of: 
- trade in services; 
- Intellectual, industrial and commercial property rights; 
- recognition of qualifications; 
- assessment of products' oonformity with technical regulations. 
2. 9 
DECLARATION BY THE MEMBER STATES CONCERNING 
THE MINUTES OF THE NBQOTIATICftTS 
Each Member State will look favourably on requests made by San Marino 
concerning authorizations for the transport of passengers or freight by 
road. 
a £ 
JOINT DECLARATION 
In the event that the deadline of 1 July 1992 specified in Article 30(1) Is 
not met, the dates stipulated in Article 6(2) will be adjusted in 
accordance with Article 30(2). 
^9 
FINANCIAL STATEMENT 
The draft Agreement with San Marino has no implications for the Community 
budget. 
While Article 8 stipulates that the Community, acting on behalf of and for 
San Marino, will collect import duties on products from third countries, 
passing the sums concerned to the San Marino Exchequer after deduction of a 
percentage to cover administrative costs, such transactions will not 
constitute new expenditure from the Community budget, being legally due to 
San Mar ino. 
s 
£ME 
In trade terms, the establishment of a customs union with San Marino will 
have no effect on SME in the Community, since San Marino is already part of 
the Community's customs territory. 
The aim of the other provisions of the Agreement is to achieve a better 
integration of San Marino into the Community sphere, and they will not 
affect the situation of SME in the Community. 
31 ISSN 0254-1475 
COM (91) 429 final 
DOCUMENTS 
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Catalogue number : CB-CO-91-471-EN-C 
ISBN 92-77-76824-X 
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