COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 16.02.1998 
COM(1998) 77 final 
98/0061 (ACC) 
Proposal for a 
COUNCIL DECISION 
on the position to be taken by the Community within the Association Council 
established by the Europe Agreement between the European Communities and 
their Member States, of the one part, and the Republic of Latvia, of the other 
part, signed on 12 June 1995, with regard to the adoption of the modifications to 
Protocol 3 of the Europe Agreement included in Joint Committee Decision N° 
1/97 of 20 March 1997 under the Agreement on Free Trade and Trade Related 
Matters between the European Communities and their Member States, of the 
one part, and the Republic of Latvia, of the other part, signed on 18 July 1994 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. The Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Latvia, 
of the other part, has been signed on 12 June 1995. Following completion of all 
ratification procedures, the Europe Agreement with Latvia will enter into force on 
1 February 1998. 
The Association Council, established by Article 110 of the Europe Agreement, 
shall adopt at its first meeting, as provided for in Article 131 of the Europe 
Agreement, all the modifications to this Agreement - in particular to the protocols 
and annexes- necessary to align it with changes to the Agreement on Free Trade 
and Trade Related Matters decided by the Joint Committee, between the signature 
and the entry into force of the Europe Agreement. 
It is proposed that Decision N° 1/97 of the Joint Committee of 20 March 1997 
(entered into force on 1 April 1997), amending Protocol 3 on rules of origin 
(mainly the definition of the concept of "originating products" and methods of 
administrative cooperation) of the Agreement on Free Trade between the European 
Communities and Latvia be adopted at the first meeting of the Association 
Council, so as to align the Europe Agreement with the changes made to the Free 
Trade Agreement between the signature and entry into force of the Europe 
Agreement. 
2. It is therefore proposed that the Council approves the attached proposal for a 
Council decision. 
T_ 
Proposal for a Council Decision 
on the position to be taken by the Community within the Association Council 
established by the Europe Agreement between the European Communities and 
their Member States, of the one part, and the Republic of Latvia, of the other 
part, signed on 12 June 1995, with regard to the adoption of the modifications to 
Protocol 3 of the Europe Agreement included in Joint Committee Decision N° 
1/97 of 20 March 1997 under the Agreement on Free Trade and Trade Related 
Matters between the European Communities and their Member States, of the 
one part, and the Republic of Latvia, of the other part, signed on 18 July 1994 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 in connection with Article 228 (2), first sentence, 
Having regard to the Commission proposal, 
Having regard to the Council and Commission Decision of 22 December 1997 on the 
conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Latvia, of the other part, and in particular Article 2(1) thereof, 
Whereas Article 110 of the Europe Agreement establishes an Association Council, 
Whereas Article 131 of the said Agreement provides that the Association Council 
shall adopt at its first meeting all the modifications to this Agreement- in particular to 
the protocols and annexes- necessary to align it with changes to the Agreement on 
Free Trade and Trade Related Matters decided by the Joint Committee between the 
signature and entry into force of the said Agreement, 
HAS DECIDED AS FOLLOWS: 
The position to be adopted by the Community within the Association Council 
established by Article 110 of the Europe Agreement, signed on 12 June 1995, 
establishing an association between the European Communities and their Member 
States, of the one part, and the Republic of Latvia, of the other part, with regard to the 
adoption of the modifications to Protocol 3 of the Europe Agreement included in Joint 
Committee Decision N° 1/97 of 20 March 1997 under the Agreement on Free Trade 
and Trade Related Matters between the European Communities and Latvia, shall be 
based on the Association Council draft decision, annexed to the present Decision. 
Done at Brussels on, 
For the Council, 
The President 
DRAFT DECISION No 2/98 OF THE ASSOCIATION COUNCIL 
between the European Communities and their Member States, of the one part, 
and the Republic of Latvia, of the other part 
of 1998 
adopting modifications to Protocol 3 of the Europe Agreement, signed on 12 June 1995, 
included in Joint Committee Decision N° 1/97 of 20 March 1997 under the Agreement on 
Free Trade and Trade Related Matters between the European Communities and their Member 
States, of the one part, and the Republic of Latvia, of the other part, 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an Association between the European 
Communities and their Member States, of the one part, and the Republic of Latvia, of the 
other part, signed on 12 June 1995, and in particular Articles 110 and 131 thereof, 
Whereas pursuant to Article 131 of the Europe Agreement, the Association Council shall 
adopt at its first meeting all the modifications to this Agreement- in particular to the 
protocols and annexes- necessary to align it with changes to the Agreement on Free Trade 
and Trade Related Matters decided by the Joint Committee between the signature and entry 
into force of the said Agreement, 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Association Council decides to modify Protocol 3 on Rules of Origin annexed to the 
Europe Agreement, signed on 12 June 1995, establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of Latvia, 
of the other part, in accordance with the Joint Committee Decision N° 1/97 of the Joint 
Committee of 20 March 1997 (together with relevant joint declarations) under the Free Trade 
Agreement and Trade Related Matters between the European Communities and their 
Member States, of the one part, and the Republic of Latvia, of the other part. 
Article 2 
The Decision shall be published in the Official Journal of the European Communities and 
Latvijas Vestnesis (Latvian Official Journal) 
Article 3 
The Decision shall enter into force on the day of its adoption. 
Done at Brussels on, 
For the Association Council 
ThePresident(s) 
OJN°Llll of 28 April 1997 
V 
ANNEX 
DECISION No 1/97 OF THE JOINT COMMITTEE, BETWEEN THE EUROPEAN 
COMMUNITIES, OF THE ONE PART, AND THE REPUBLIC OF LATVIA, OF 
THE OTHER PART 
of 20 March 1997 
amending Protocol 3 to the Agreement on free trade and trade-related matters between 
the European Community, the European Atomic Energy Community and the 
European Coal and Steel Community, of the one part, and the Republic of Latvia, of 
the other part 
(97/268/ECSC, EC, Euratom) 
THE JOINT COMMITTEE, 
Having regard to the Agreement on free trade and trade-related matters between the 
European Community, the European Atomic Energy Community and the European 
Coal and Steel Community, of the one part, and the Republic of Latvia, of the other 
part, signed in Brussels on 18 July 1994, and in particular Article 36 of Protocol 3 
thereof, 
Whereas an extended system of cumulation is desirable making possible the use of 
materials originating in the European Community, Poland, Hungary, the Czech 
Republic, the Slovak Republic, Bulgaria, Romania, Lithuania, Slovenia, Estonia, 
Latvia, the European Economic Area, Iceland, Norway or Switzerland, in order to 
facilitate trade and improve the effectiveness of the Agreement; whereas 
modifications to the definition of the concept of originating products are required; 
Whereas, in order for the Agreement to apply to goods originating in Andorra or San 
Marino, it is necessary to provide for such a possibility by way of a Joint Declaration 
on Protocol 3; 
Whereas for the purposes of implementing the extended system of cumulation and in 
order to avoid circumvention of customs duties, it is necessary to introduce new 
provisions into Protocol 3 concerning the prohibition of drawback of, or exemption 
from, customs duties; 
Whereas in order to further facilitate trade and to simplify administrative burdens, it is 
necessary to amend the processing requirements laid down in the Protocol for non-
originating materials to obtain originating status and the provisions concerning proof 
of origin; 
<r 
Whereas, certain processing requirements for non-originating materials to obtain 
originating status need to be amended to take account of the evolution of processing 
techniques; whereas, in the light of experience, the presentation of the list of 
processing rules could be improved by extending it to cover all headings of the 
Harmonized System (HS); whereas, technical modifications of these processing rules 
are required to take account of modifications to the HS which take effect from 1 
January 1996; 
Whereas, it is therefore appropriate for the proper functioning of the Agreement to 
incorporate in a single text all the provisions in question with a view to facilitating the 
work of users and customs administrations, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 shall be replaced by the text attached hereto, together with the relevant 
Joint Declarations. 
Article 2 
This Decision shall enter into force on 1 April 1997. 
Done at Brussels, 20 March 1997. 
For the Joint Committee 
The Chairmen 
For the Community For Latvia 
S. BROUWER A. KIRSTEINS 
Q 
ISSN 0254-1475 
COM(98) 77 final 
DOCUMENTS 
EN 11 02 01 06 
Catalogue number : CB-CO-98-079-EN-C 
ISBN 92-78-31020-4 
Office for Official Publications of the European Communities 
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