Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of an additional protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

(presented by the Commission)

EXPLANATORY MEMORANDUM

Ten new Member States acceded to the European Union on 1 May 2004. Under Article 6(2) of the Act concerning the Accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustment of the Treaties on which the European Union is founded (hereinafter 'the Act of Accession'), the accession of the new Member States to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part (hereinafter 'the Europe Agreement') shall be agreed by the conclusion of a protocol to this agreement. Article 6(2) provides for a simplified procedure, as these protocols are to be concluded by the Council of the European Union, acting unanimously on behalf of the Member States, and the third country concerned. This procedure is without prejudice to the Community's own competences.

Consequently, the Commission has negotiated this Additional Protocol for the EC part on behalf of the European Community and for the national competence part on behalf of the Member States on the basis of negotiation directives adopted by the Council on 9 March 2004, and in consultation with a committee of the representatives of the Member States.

The Additional Protocol provides for the necessary technical adaptations of the Europe Agreement that ensue from the accession of the new contracting parties, in particular regarding:

* Institutional provisions: the Additional Protocol includes a number of adjustments brought about by the institutional and legal developments within the EC (expiry of the ECSC Treaty, EMU), as well as by the accession of the new Member States to this mixed agreement and an increase in the number of official languages.

* Agricultural products: the Europe Agreement provides for substantial trade liberalisation between the European Union and Romania, which in a few cases is limited to tariff quotas, notably on agricultural products. Tariff quotas for basic agricultural products have been reviewed on the basis of traditional trade between the new Member States and Romania. The Additional Protocol makes adjustments to these where required.

* Rules of origin: the multilingual provisions in Protocol 4 to the Europe Agreement concerning the definition of the concept of originating products and methods of administrative co-operation have been completed with the languages of the new Member States. Transitional provisions concerning goods in transit at the date of accession have been introduced.

* Processed agricultural products: Protocol 3 on trade between Romania and the Community in processed agricultural products referred to in Article 20 of the Europe Agreement foresees in its Article 1 that the Association Council may add products and increase the quantities of certain products eligible for concessions. These adjustments are thus made separately, by means of Association Council Decisions.

Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of the additional protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

THE COUNCIL OF THE EUROPEAN UNION,

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to the Treaty establishing the European Atomic Energy Community,

Having regard to the Treaty concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic (hereinafter referred to as the "new Member States") to the European Union, and in particular Article 6(2),

Having regard to the proposal from the Commission, [1]

[1] OJ C [...] [...], p. [...]

Whereas:

(1) The Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part (hereinafter referred to as "the Europe Agreement") [2], was signed in Brussels on 1 February 1993 and entered into force on 1 February 1995;

[2] OJ L 357, 31.12.1994, p. 2, as amended

(2) the Treaty concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union (hereinafter referred to as "the Treaty of Accession") [3], was signed in Athens on 16 April 2003 and entered into force on 1 May 2004;

[3] OJ L 236, 23.9.2003

(3) an Additional Protocol to the Europe Agreement is necessary to take account of the accession of the ten new Member States;

(4) consultations on this Additional Protocol have taken place in accordance with Article 28(2) of the Europe Agreement, so as to ensure that account is taken of the mutual interests of the Community and Romania;

(5) the Additional Protocol should therefore be approved;

HAVE DECIDED AS FOLLOWS:

Article 1

The Additional Protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union, is hereby adopted.

The text of the Additional Protocol is attached to this Decision.

Article 2

The Commission shall adopt detailed rules for the application of the Protocol in accordance with the procedure referred to in Article 4(2).

Article 3

1. The order numbers as attributed to the tariff quotas in Annex I to this Decision may be changed by the Commission in accordance with the procedure referred to in Article 4(2). Tariff quotas with an order number above 09.5100 shall be administered by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93 [4].

[4] OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 2286/2003 (OJ L 343, 31.12.2003, p.1)

2. Quantities of goods subject to tariff quotas and released for free circulation as from 1 July 2004 under the concessions provided for in Annex A(b) of the protocol approved under Council Decision 2003/18/EC [5] shall be fully counted against the quantities provided for in the fourth column in Annex A(b) to the protocol attached to this Decision as Annex II, except for quantities for which import licences were issued before 1 July 2004.

[5] OJ L 8, 14.1.2003, p. 18

Article 4

1. The Commission shall be assisted by the Management Committee for Sugar as laid down in Article 42 of Council Regulation (EC) No 1260/2001 [6] on the common organisation of the market in the sugar sector or, where appropriate, by the committee instituted by the relevant provisions of the other Regulations on the common organisation of agricultural markets.

[6] OJ L 178, 30.6.2001, p. 1

2. Where reference is made to this paragraph, Articles 4 and 7 of Council Decision 1999/468/EC [7] shall apply. The period provided for in Article 4(3) of Council Decision 1999/468/EC shall be one month.

[7] OJ L 184, 17.7.1999, p. 23

The Committee shall adopt its rules of procedure.

Article 5

The President of the Council is hereby authorised to designate the person empowered to sign the Additional Protocol on behalf of the European Community.

Article 6

The President of the Council shall, on behalf of the European Community and its Member States, give the notification provided for in Article 9 of the Additional Protocol. The President of the Commission shall give such notification on behalf of the European Atomic Energy Community.

Done at Brussels, [...]

For the Council

The President

[...]

For the Commission

The President

[...]

ANNEX I

Order numbers for EU tariff quotas for products originating in Romania

(as referred to in Article 3)

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ANNEX II

ADDITIONAL PROTOCOL

to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

the Kingdom of Belgium,

the Czech Republic,

the Kingdom of DENMARK,

the Federal Republic OF Germany,

the Republic of ESTONIA,

the Hellenic REPUBLIC,

the Kingdom of SPAIN,

the French REPUBLIC,

Ireland,

the ITALIAN Republic,

the REPUBLIC of Cyprus,

the REPUBLIC of Latvia,

the REPUBLIC of Lithuania,

the Grand DUCHY of Luxembourg,

the Republic of Hungary,

the Republic of Malta,

the KINGDOM of the Netherlands,

the Republic of Austria,

the Republic of Poland,

the PORTUGUESE Republic,

the Republic of Slovenia,

the Slovak REPUBLIC,

the Republic of FINLAND,

the Kingdom of Sweden,

the United Kingdom of Great Britain and Northern Ireland,

Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY and the Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'Member States' represented by the Council of the European Union, and

the EUROPEAN COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'the Community' represented by the Council of the European Union and the European Commission,

of the one part,

and ROMANIA,

of the other part,

HAVING REGARD TO the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union and thereby to the Community on 1 May 2004;

HAVING REGARD TO the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part (hereinafter referred to as 'the Europe Agreement'), which was signed in Brussels on 1 February 1993 and entered into force on 1 February 1995;

HAVING REGARD TO the Treaty concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union (hereinafter referred to as 'the Treaty of Accession'), signed in Athens on 16 April 2003 and entered into force on 1 May 2004;

CONSIDERING that, pursuant to Article 6(2) of the Treaty of Accession, the accession of the new Contracting Parties to the Europe Agreement has been agreed by the conclusion of a protocol to the Europe Agreement;

HAVE Agreed as follows:

Section I

contracting Parties

Article 1

The Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic (hereinafter referred to as 'the new Member States') shall be Parties to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, signed in Brussels on 1 February 1993 and entered into force on 1 February 1995 (hereinafter referred to as 'the Europe Agreement') and shall respectively adopt and take note, in the same manner as the other Member States of the Community, of the texts of the Europe Agreement, as well as of the Agreements in the form of an exchange of letters, the Joint Declarations, and the Unilateral Declarations annexed to the Final Act signed on the same date.

EXPIRY OF THE ECSC TREATY

Article 2

To take account of recent institutional developments within the European Union, the Parties agree that, following expiry of the Treaty establishing the European Coal and Steel Community (ECSC), existing provisions in the Europe Agreement referring to the European Coal and Steel Community shall be deemed to refer to the European Community, which has taken over all rights and obligations contracted by the European Coal and Steel Community.

Section II

AGricultural Products

Article 3

Basic agricultural products

The arrangements for import into the Community applicable to certain agricultural products originating in Romania as set out in Annexes A(a) and A(b) and the arrangements for import into Romania applicable to certain agricultural products originating in the Community as set out in Annexes B(a) and B(b) to this Protocol shall replace those set out in the Europe Agreement, as amended by the protocol adjusting the trade aspects of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, to take account of the outcome of negotiations between the parties on new mutual agricultural concessions [8].

[8] OJ L 8, 14.1.2003, p. 22

Section III

Rules of Origin

Article 4

Protocol 4 [9], referred to in Article 35 (Rules of origin), shall be amended as follows:

[9] Protocol 4 of the Europe Agreement establishing an association between the European Economic Communities and their Member States, of the one part, and Romania, of the other part (OJ L 357 of 31/12/1994), as last amended by Decision No 1/97 of the EU-Romania Association Council of 31/01/1997 (OJ L 54 of 24/02/1997)

1. Article 4(1) should be replaced by the following:

"1. Subject to the provisions of paragraphs 2 and 3, materials originating in Bulgaria, Iceland, Norway or Switzerland within the meaning of the Agreements between the Community and Romania and these countries shall be considered as originating in the Community or Romania when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing."

2. Article 18(4) shall be replaced by the following:

(...)

Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

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3. Article 19(2) shall be replaced by the following:

(...)

The duplicate issued in this way must be endorsed with one of the following words:

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4. Annex IV shall be replaced by the following:

(...)

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(...)

Section IV

Economic and Monetary union

Article 5

The text of Article 86 on monetary policy shall be replaced with the following:

'At the request of Romanian authorities, the Community shall provide technical assistance designed to support the efforts of Romania towards the gradual approximation of its policies to those of the Economic and Monetary Union. This will include informal exchange of information concerning the principles and the functioning of the Economic and Monetary Union.'

Section V

Article 6

Proof of origin and administrative cooperation [12]

[12] Referred to in the Act of Accession, Annex IV No 5, paragraphs 3 to 5

1. Proofs of origin properly issued by either Romania or a new Member State in the framework of preferential agreements applied between them shall be accepted in the respective countries provided that:

(a) the acquisition of such origin confers preferential tariff treatment on the basis of the preferential tariff measures contained in the Europe Agreement;

(b) the proof of origin and the transport documents were issued no later than the day before the date of accession;

(c) the proof of origin is submitted to the customs authorities within the period of four months from the date of accession.

Where goods were declared for importation in either Romania or a new Member State, prior to the date of accession, under preferential agreements or autonomous arrangements applied between Romania and that new Member State at that time, proof of origin issued retrospectively under those agreements or arrangements may also be accepted provided that it is submitted to the customs authorities within the period of four months from the date of accession.

2. Romania and the new Member States are authorised to retain the authorisations with which the status of "approved exporters" has been granted in the framework of preferential agreements or autonomous arrangements applied between them, provided that:

(a) such a provision is also provided for in the agreement concluded prior to the date of accession between Romania and the Community; and

(b) the approved exporter apply the rules of origin in force under that agreement.

These authorisations shall be replaced no later than one year after the date of accession, by new authorisations issued under the conditions of the Agreement.

3. Requests for subsequent verification of proof of origin issued under the preferential agreements or autonomous arrangements referred to in paragraphs 1 and 2 above shall be accepted by the competent customs authorities of either Romania or the Member States for a period of three years after the issue of the proof of origin concerned and may be made by those authorities for a period of three years after acceptance of the proof of origin submitted to those authorities in support of an import declaration.

Article 7

Goods en route or in temporary storage

1. The provisions of the Europe Agreement shall be applied to goods exported from either Romania to one of the new Member States or from one of the new Member States to Romania, which comply with the provisions of Protocol 4 on rules of origin to the Europe Agreement and that on the date of accession are either en route or in temporary storage, in a customs warehouse or in a free zone in Romania or in that new Member State.

2. Preferential treatment shall be granted in such cases, subject to the submission to the customs authorities of the importing country, within four months of the date of accession, of a proof of origin issued retrospectively by the customs authorities of the exporting country.

Section VI

General and final provisions

Article 8

This Protocol and the Annexes thereto shall form an integral part of the Europe Agreement.

Article 9

1. This Protocol shall be approved by the Community, by the Council of the European Union on behalf of the Member States, and by Romania in accordance with their own procedures.

2. The Parties shall notify each other of the accomplishment of the corresponding procedures referred to in the preceding paragraph. The instruments of approval shall be deposited with the General Secretariat of the Council of the European Union.

Article 10

1. This Protocol shall enter into force on the first day of the first month following the date of the deposit of the last instrument of approval.

2. This Protocol, with the exception of the trade provisions, shall apply provisionally with effect from 1 May 2004.

Article 11

This Protocol is drawn up in duplicate in the Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovene, Slovak, Spanish, and Swedish languages and the official language of Romania, each of these texts being equally authentic.

Article 12

The text of the Europe Agreement, including the Annexes and Protocols forming an integral part thereof, and the Final Act together with the declarations annexed thereto shall be drawn up in the Czech, Estonian, Hungarian, Latvian, Lithuanian, Maltese, Polish, Slovene and Slovak languages, and these texts shall be authentic in the same way as the original texts. The Association Council shall approve these texts.

Done at Brussels on [....] in the year 2004

FOR THE MEMBER STATES

FOR THE COUNCIL AND THE COMMISSION OF THE EUROPEAN COMMUNITIES

FOR ROMANIA

ANNEX A(a)

Custom duties on imports applicable in the Community to products originating

in Romania and listed below shall be abolished - CN codes (1)

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(1) As defined in Commission Regulation (EC) No 1789/2003 of 11 September 2003 amending Annex I to Council Regulation (EEC) N° 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 281 of 30.10.2003, p. 1)

(2) This concession is only applicable to products not benefiting from any kind of export subsidies.

ANNEX A(b)

Imports into the Community of the following products originating in Romania

shall be subject to the concessions set out below

(MFN= Most Favoured Nation duty)

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(1) Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording of the description of the products is to be considered as having no more than indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN code. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

(2) In cases where a MFN minimum duty exists, the applicable minimum duty is equal to the MFN minimum duty multiplied by the percentage indicated in this column.

(3) This concession is only applicable to products not benefiting from any kind of export subsidies.

(4) Excluding tenderloin presented alone.

(5) The exemption applies only to the ad valorem part of the duty.

(6) Entry price system: for all imports (within and outside the tariff quotas, as applicable) of CN codes 0702 (tomatoes), 0707.00.05 (cucumbers), 0709.90.70 (courgettes), 0809.10 (apricots) and 0809.20 (cherries), five additional stages (10%, 12%, 14% 16% and 18%) are herewith introduced which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(6a) For imports from Romania to the Community of 4 000 tonnes of cucumbers other than for processing (CN code ex 0707 00 05), the entry price level (from which specific duties will be reduced to zero) will be reduced by 10% from July 2004, 20% from July 2005 and 30% from July 2006.

(6b) Imports from Romania to the Community of 10,000 tons of cucumbers destined for processing (CN code ex 0707 00 05) will be exempted from ad valorem and the specific duty. Entry under this subheading is subject to conditions laid down in the relevant Community provisions - see Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 (OJ L 253, 11.10.1993, p.71) and subsequent amendments.

(7) Entry price system: for all imports (within and outside the tariff quotas) of CN codes 0808.10.20, 0808.10.50, 0808.10.90 (apples), the following concessions should be applied:

- Five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 1 January to 14 February, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature;

- Three additional stages (14%, 16% and 18%) are herewith introduced for the period 15 February to 31 March, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature

- Two additional stages (16% and 18%) are herewith introduced for the period 1April to 15 July, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature

- Five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 16 July to 31 December, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(8) Entry price system: for all imports of CN code 0808.20.50 (pears), the following concessions should be applied:

- Five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 1 January to 31 March, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature;

- Two additional stages (16% and 18%) are herewith introduced for the periods 1 to 30 April and 1 to 15 July, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature;

- Five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 16 July to 31 December, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(9) Entry price system: for all imports of CN code 0809.30 (peaches and nectarines), the following concessions should be applied:

- Three additional stages (10%, 12% and 14%) are herewith introduced for the period 11 June to 31 July, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature;

- Five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the periods 1 August to 30 September, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(10) Entry price system: for all imports of CN code ex 0809.40.05 (plums other than destined for processing, in immediate containers of a net capacity weight exceeding 250 kg), three additional stages (10%, 12% and 14%) are herewith introduced which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

In addition imports from Romania to the Community of plums destined for processing in immediate containers of a net capacity weight exceeding 250kg (CN code ex. 0809.40.05) will be exempted from ad valorem and the specific duty. Entry under this subheading is subject to conditions laid down in the relevant Community provisions - see Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 (OJ L 253, 11.10.1993, p.71) and subsequent amendments.

(11) Quantities of goods subject to this existing tariff quota and released for free circulation as from 1 July 2004 before the entry into force of this Protocol shall be fully counted against the quantity provided for in the fourth column.

ANNEX B(a)

Custom duties on imports applicable in Romania to products originating

in the Community and listed below shall be abolished - Romanian tariff codes (1)

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(1) As defined in Law No 680/2003, MO I No 928/23.12.2003.

(2) This concession is only applicable to products not benefiting from any kind of export subsidies.

ANNEX B(b)

Imports into Romania of the following products originating in the Community

shall be subject to the concessions set out below

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* The wording of the description of the products is to be considered as having no more than indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the code. Where ex codes are indicated, the preferential scheme is to be determined by application to the code and corresponding description taken together.

(1) This concession is only applicable to products not benefiting from any kind of export subsidies.

(2) Quantities of goods subject to this existing tariff quota and released for free circulation as from 1 July 2004 before the entry into force of this Protocol shall be fully counted against the quantity provided for in the fourth column.

(3) This product is subject to a 1,000 head increase in July 2005.

(4) This concession will be managed on a calendar year basis 1 January- 31 December. The annual quantity will increase to 60,000 tons from 1 January 2005 and to 80,000 tons from 1 January 2006.

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