on the position to be taken on behalf of the European Union in the Customs Sub-Committee established by the Association Agreement between the European Union and its Member States, of the one part, and Ukraine, 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

CORRIGENDUM This document corrects document COM (2018)510 final of 3.07.2018. Concerns all language versions. Addition of the inter-institutional reference. The text shall read as follows:

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on the Union’s behalf in the Customs Sub-Committee established by the Association Agreement ('the Agreement') between the European Union, of the one part, and Ukraine, 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

2.1.Protocol I to the Association Agreement

The Agreement establishes a preferential trade regime. This regime provides for market access between the Union and Ukraine. 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 September 2017.

2.2.The EU-Ukraine Customs Sub-Committee

Article 39(1) of Protocol I provides that the Customs Sub-Committee established by the Agreement may decide to amend Protocol I to the Association Agreement. More specifically, article 39(2) of Protocol I provides that the Customs Sub-Committee may decide, following the accession of Ukraine to the Regional Convention of the pan-Euro-Mediterranean rules of origin to replace the rules of origin set out in this Protocol by those appended to the Convention.

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

The EU-Ukraine 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 taken on the Union's behalf

The Convention lays down provisions on the origin of goods traded under relevant Agreements concluded between the Contracting Parties. The Union signed the Convention on 15 June 2011. Ukraine requested to accede to the Convention on 12 September 2016 and with its Decision No 1/2017 of 16 May 2017, the Joint Committee of the Convention decided that Ukraine should be invited to accede to the Convention.

The Union deposited its instrument of acceptance with the depositary of the Convention on 26 March 2012. Ukraine deposited its instrument of acceptance with the depositary of the Convention on 19 December 2017. As a consequence, in application of its Article 10(2) and 10(3), the Convention entered into force in relation to the Union on 1 May 2012 and in relation to Ukraine on 1 February 2018 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-Ukraine 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