Draft DECISION OF THE EC-TURKEY CUSTOMS COOPERATION COMMITTEE on the acceptance, as proof of Community or Turkish origin, of movement certificates EUR.1 or invoice declarations issued by certain countries that have signed a preferential agreement with the Community or Turkey

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The EC-Turkey customs union covers all industrial products except ECSC products. It is governed by Decision No 1/95 of the EC-Turkey Association Council on implementing the final phase of the Customs Union and Decision No 1/96 of the EC-Turkey Customs Cooperation Committee laying down detailed rules for the application of the above Decision No 1/95.

2. Under Decision No 1/96, proof of compliance with the necessary conditions for implementation of the provisions on the free circulation of goods between the Community and Turkey is provided by a movement certificate A.TR issued by the customs authorities of Turkey or of a Member State.

3. Following Turkey's inclusion in the system of pan-European cumulation of the rules of origin on 1 January 1999, where products of Community or Turkish origin are exported to a country covered by that system (the EFTA, Central and Eastern European, EEA and Baltic countries) and, without being processed or having undergone only minimal operations, are then sent to Turkey or the Community, the above countries must issue the goods in question with a movement certificate EUR.1 or invoice declaration stating that they are of Community or Turkish origin, as appropriate.

4. Since this type of proof of origin is not provided for under Decision No 1/96, neither the Community nor Turkey can grant the other the preferential tariff treatment provided for in the Decision on customs union.

5. Since Turkey's inclusion in the system of pan-European cumulation of the rules of origin was designed to enable Community or Turkish products to be used in diagonal cumulation with the European countries referred to above, this proposal is intended to allow the Community and Turkey to accept movement certificates EUR.1 or invoice declarations issued by countries included in the system of pan-European cumulation of the rules of origin, as proof of origin for products covered by Decision No 1/95.

That is the purpose of this draft. The Commission requests that the Council present it for approval to the EC-Turkey Customs Cooperation Committee.

Draft DECISION OF THE EC-TURKEY CUSTOMS COOPERATION COMMITTEE on the acceptance, as proof of Community or Turkish origin, of movement certificates EUR.1 or invoice declarations issued by certain countries that have signed a preferential agreement with the Community or Turkey

THE CUSTOMS COOPERATION COMMITTEE,

Having regard to the Agreement of 12 September 1963 establishing an association between the EEC and Turkey,

Having regard to Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union [1], and in particular Articles 16 and 28 thereof,

[1] OJ L 35, 13.2.1996, p. 1.

Whereas:

(1) Decision No 1/96 of the EC-Turkey Customs Cooperation Committee of 20 May 1996, laying down detailed rules for the application of Decision No 1/95 [2] provides that proof that the necessary conditions for implementation of the provisions on free circulation of industrial products between the Community and Turkey have been met is to be provided by a movement certificate A.TR.

[2] OJ L 200, 9.8.1996, p. 14.

(2) The Community and Turkey have signed preferential agreements with the following European countries: Bulgaria, the Czech Republic, Estonia, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia and Switzerland.

(3) Under those agreements, preferential origin is proven by movement certificates EUR 1 or invoice declarations.

(4) Where products of Community or Turkish origin, within the meaning of the aforementioned agreements, are first exported from the Community or Turkey to one of the countries referred to above and, without being processed or having undergone only minimal operations, are then sent to Turkey or the Community respectively, the above countries must issue the products in question with a movement certificate EUR.1 or invoice declaration stating that they are of Community or Turkish origin, as appropriate.

(5) Under those circumstances, neither the Community nor Turkey can grant the other the preferential tariff treatment provided for by Decision No 1/95,

HAS DECIDED AS FOLLOWS:

Article 1

1. Products covered by Decision No 1/95 of the EC-Turkey Association Council that originate in the Community, within the meaning of the agreements which the latter has signed with Bulgaria, the Czech Republic, Estonia, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia and Switzerland, shall receive the preferential tariff treatment provided for in the above Decision in Turkey if they are accompanied by a movement certificate EUR 1 or an invoice declaration issued in one of the above countries stating that they are of Community origin.

2. Products covered by Decision No 1/95 of the EC-Turkey Association Council that originate in Turkey, within the meaning of the agreements which the latter has signed with Bulgaria, the Czech Republic, Estonia, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia and Switzerland, shall receive the preferential tariff treatment provided for in the above Decision in the Community if they are accompanied by a movement certificate EUR 1 or an invoice declaration issued in one of the above countries stating that they are of Turkish origin.

Article 2

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

Done at Brussels,

For the Customs Cooperation Committee

The President

FINANCIAL STATEMENT

1. Title of operation

Draft Decision of the EC-Turkey Customs Cooperation Committee on the acceptance, as proof of Community or Turkish origin, of movement certificates EUR.1 or invoice declarations issued by certain countries that have signed a preferential agreement with the Community or Turkey

2. Budget heading(s) involved

None

3. Legal basis

Article 133 of the Treaty - Association Agreement between the European Economic Community and Turkey of 21 September 1963

4. Description of operation

The Decision is intended to enable Community or Turkish products covered by the EC-Turkey Customs Union to be covered by pan-European cumulation of the rules of origin.

5. Financial impact

None.