on the position to be adopted on behalf of the European Union within the Customs Sub-Committee established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, as regards the replacement of Protocol I to that Agreement, concerning the definition of the concept of 'originating products' and methods of administrative cooperation, by a new protocol which refers to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin

EXPLANATORY MEMORANDUM

1.SUBJECT-MATTER OF THE PROPOSAL

The present proposal concerns the decision establishing the position to be adopted on behalf of the Union in the Customs Sub-Committee established by the Association Agreement ('the Agreement') between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, in connection with the envisaged adoption of a decision as regards the replacement of Protocol I to that Agreement, concerning the definition of the concept of 'originating products' and methods of administrative cooperation, by a new protocol which refers to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin ('the Convention')

2.CONTEXT OF THE PROPOSAL

2.1Protocol I to the Association Agreement

The Agreement establishes a preferential trade regime – the Deep and Comprehensive Free Trade Area (DCFTA). This regime increases market access between the EU and Georgia. Protocol I to the Agreement concerns the definition of the concept of 'originating products' and methods of administrative cooperation. The agreement entered into force on 1 July 2016.

2.2.The EU-Georgia Customs Sub-Committee

Article 38 of Protocol I provides that the Customs Sub-Committee established by the Agreement may decide to amend Protocol I to the Association Agreement.

2.3.The envisaged act of the EU-Georgia Customs Sub-Committee

The EU-Georgia Customs Sub-Committee is to adopt a decision regarding the replacement of Protocol I to the Agreement, concerning the definition of the concept of 'originating products' and methods of administrative cooperation, by a new protocol which refers to the Convention. The purpose of the envisaged act is to ensure the effective implementation of the Convention.

3.POSITION TO BE ADOPTED ON BEHALF OF THE UNION

The Convention lays down provisions on the origin of goods traded under relevant Agreements concluded between the Contracting Parties. The EU signed the Convention on 15 June 2011. Georgia requested to accede to the Convention on 23 September 2015 and with its Decision No 1 of 28 September 2016, the Joint Committee of the Convention decided that Georgia should be invited to accede to the Convention.

The EU and Georgia deposited their instrument of acceptance with the depositary of the Convention on 26 March 2012 and 17 May 2017 respectively. As a consequence, in application of its Article 10(3), the Convention entered into force in relation to the EU and Georgia on 1 May 2012 and on 1 July 2017 respectively.

Article 6 of the Convention provides that each Contracting Party shall take appropriate measures to ensure that the Convention is effectively applied. The proposed decision of the EU-Georgia Customs Sub-Committee is a procedural step necessary for achieving the main objective of the Convention, which is to replace the protocols on rules of origin in the Agreements between Contracting Parties to the Convention by a Protocol which refers to the Convention.

No recourse to a stakeholder's consultation was therefore necessary.

Furthermore, it has not been necessary to conduct an impact assessment, since the proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect.

4.LEGAL BASIS

4.1.Procedural legal basis