Proposal for a COUNCIL DECISION concerning the conclusion of an Agreement in the form of an Exchange of Letters relating to the amendment of the Convention of 20 May 1987 on a common transit procedure
Date: 1991-12-05
Institutions: European Commission
Subjects: ACP-EU Convention, EFTA countries, agreement (EU), carriage of goods, customs transit

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

COM(91)490  final 

Brussels,  5  December  1991 

Proposal  for a, 

COUNCIL DECISION 

concerning  the conclusion of an Agreement 

In the form of an Exchange of Letters 

relating to the amendment of the Convention 

of 20 May 1987 on a common  transit  procedure 

(presented  by the Commission) 

-a 

EXPLANATORY  MEMORANDUM 

Subject :  " 

proposal  for  a Council  Decision  concerning  the  conclusion 

of  an agreement  in the  form of  an exchange of  letters  in respect 

of  recommandation  No 1/91  of  the  EEC-EFTA  Joint  Committee  on 

common  transit relating to the amendment of  the Convention of the 

20th May  1987 on a common  transit procedure. 

1. 

The Convention of  the 20th May  1987 put  into effect most of  the rules 

of  the  Community  Transit  System  which  relate  to  trade  between  the 

Community  and  the  EFTA  countries  and  between  those  countries 

themselves. 

2. 

In Regulation  (EEC) No 2726/90 of  17.9.90 (OJ No L 262 of  26.9.1990), 

the  Council  introduced  to  these  rules  the  amendments  necessary  for 

the realisation of  the  internal  market on  1.1.1993. 

3. 

It  is now,  therefore, considered  appropriate  to amend  the Convention 

in order  to take account of  these reforms. 

4. 

Such  is the objective of  Recommendation  No 1/91  which  the  EEC-EFTA-

Joint  Committee  adopted  formally  at  its forth  meeting which  was held 

in Helsinki  on 19.9.1991. 

5. 

It  is essential  that this Recommendation 1/91  be accepted by means of 

an agreement  concluded  in the  form of  an exchange of  letters between 

the contracting parties to the Convention. 

6. 

This  agreement  must  be  approved  on  behalf  of  the  Community  by  a 

Council  decision, the proposal  for which  is attached. 

-* 

-

Proposal  for a Council  Decision 

concerning  the conclusion of an Agreement 

In the form of an Exchange of Letters 

relating  to the amendment  of  the Convention 

of 20 May  1987 on a common  transit  procedure 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard  to the Treaty establishing the European  Economic 

Community, and  in particular Article 113 thereof, 

Having regard  to the proposal  from the Commission, 

Whereas Article  15(2) of  the Convention between  the European Economic 

Community, the Republic of Austria, the Republic of Finland, the 

Republic of  Iceland, the Kingdom of Norway, the Kingdom of Sweden and 

the Swiss Confederation on a common transit procedure1  empowers the 

Joint Committee set up by that Convention to make recommendations for 

amendments to the Convention; 

Whereas the Convention has been amended  to take account of recent 

changes to Community  transit  rules forming part of  the reforms to that 

procedure  in the  light of  the completion of  the  internal market by 

1 January 1993; 

Whereas the amendments to the Convention are set out  in the Joint 

Committee's Recommendation No 1/91;  whereas the Agreement  in the form 

of an Exchange of Letters relating  to that recommendation should be 

approved; 

1  0J No L 226, 13.8.1987, p. 1. 

-A 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement  in the form of an Exchange of Letters relating to the 

amendment  of  the Convention of 20 May  1987 on a common  transit 

procedure  is hereby  approved on behalf of  the Community. 

The  text of  the Agreement  is attached  to this Decision. 

Article 2 

The President  of  the Council  is hereby authorized  to designate the 

person empowered  to sign the Agreement  in order  to bind  the Community 

Done at Brussels, 

For  the CounciI 

The President 

- r-

AGREEMENT 

in the  form of  an Exchange of  Letters  relating  to the amendment  of  the 

Convention  between  the European  Economic Community,  the Republic of 

Austria,  the Republic of  Finland,  the Republic of  Iceland,  the Kingdom 

of  Norway,  the Kingdom  of  Sweden  and  the Swiss Confederation on a 

common  transit  procedure 

Sir, 

In  its Recommendation  No  1/91  of  19 September  1991, the  EEC-EFTA  Joint 

Committee on  common  transit  proposed  a number  of  amendments  to the 

EEC-EFTA  Convention of  20 May  1987 on  a common  transit  procedure.  The 

proposed  amendments  are set out  in the Annex. 

I have  the honour  to confirm  that  the Community  is  in agreement  with 

those amendments  and  I propose  that, subject  to any  change which may  be 

made,  they  come  into force on  1 January  1993.  I should  be obliged  if 

you would  confirm  that  the Government  of  ...  is  in agreement  with  the 

amendments  and  the proposed  date on which  they  are  to enter  into force. 

Please  accept,  Sir, the assurance of my  highest  consideration. 

On  behalf of  the Council 

of  the European  Communities 

-6-

Brussels, 

Sir, 

I have  the honour  to acknowledge  receipt  of  your  letter  which  reads as 

fo11ows: 

"In  its Recommendation  No  1/91  of  19 September  1991, the  EEC-EFTA  Joint 

Committee  on  common  transit  proposed  a number  of  amendments  to the 

EEC-EFTA  Convention of  20 May  1987 on  a common  transit  procedure.  The 

proposed  amendments  are  set  out  in the Annex. 

I have  the honour  to confirm  that  the Community  is  in agreement  with 

those amendments  and  I propose  that, subject  to any  change which may  be 

made,  they  come  into  force on  1 January  1993.  I should  be obliged  if 

you would  confirm  that  the Government  of  ...  is  in agreement  with  the 

amendments  and  the proposed  date on which  they  are  to enter  into 

force." 

I have  the honour  to confirm  that  the Government  of  ...  is  in agreement 

with  the contents of  your  letter  and on  the proposed  date on which  the 

amendments  are  to enter  into force. 

Please  accept, Sir, the assurance of my  highest  consideration. 

For  the  Government 

-f-

of  the EEC-EFTA  Joint  Committee on Common Transit 

Recommendation  No 1/91 

of 

for  the amendment  of  the Convention 

of 20 May  1987 

on a common  transit  procedure 

THE JOINT COMMITTEE, 

Having  regard  to  the  Convention  of  20 May  1987  on  a  common  transit 

procedure, and  in particular  Article  15(2)(a) thereof, 

Whereas  the  Convention  of  the  20  May  1987  gave  effect  to  the  Commun icty 

Transit  rules  on  trade  between  the  Community  and  the  EFTA  countries  and 

between  those countries themselves; 

Whereas substantial  changes have recently  been made  to the basic  provisions 

of  the Commmunity  Transit  system  in operation  within  the European  Economic 

Community  with  a  view  to  the  achievement  of  the  internal  market  on 

1.1.1993;  whereas  steps  should  accordingly  be  taken  to  modify  the 

Convent ion; 

Whereas  it  is  considered  necessary  to  arrange  for  the  simultaneous  entry 

into  force  of  these  modifications  and  of  the  changes  in  the  Community 

Transit  system; 

HEREBY RECOMMENDS  that  the Contracting  Parties to the Convention: 

amend  it, with  effect  from  1.1.1993  along  the  lines  set  out  in  the 

proposal  annexed  to this Recommendation, 

review,  before  1 November  1992, this Recommendation  on  the basis  of 

a  report  from  the  Commission  of  the  European  Communities  on  the 

harmonization  of  provisions  on  the  achievement  of  the  internal 

market. 

- »-

inform  each  other,  by  means  of  an  exchange  of  letters,  of  their 

acceptance of  this Recommendation. 

Done at  Helsinki, 19 September  1991. 

For  the Joint  Committee 

The Chairman 

- y-

Proposed  amendment  to the Convention 

between  the European  Economic  Community, 

the Republic of Austria, the Republic of Finland,  the Republic of  Iceland, 

the Kingdom of Norway, the Kingdom of Sweden and  the Swiss Confederation 

on a common  transit  procedure 

The  Convention  between  the  European  Economic  Community,  the  Republic  of 

Austria,  the  Republic of  Finland,  the  Republic of  Iceland,  the Kingdom  of 

Norway,  the  Kingdom  of  Sweden  and  the  Swiss  Confederation  is  amended  as 

fol lows: 

A. 

Article 2  is replaced  by the following  text: -

"Article 2 

1. 

The common  transit  procedure  shall  hereinafter  be described  as the T1 

procedure or  the T2 procedure, as the case may be. 

2. 

The  T1  procedure  may  be  applied  to  any  goods  carried  in  accordance 

with Article  1, paragraph  1. 

3. 

The  T2  procedure  shall  apply  to  goods  carried  in  accordance  with 

Article  1, paragraph  1: 

(a) in the Community: 

only  when  the  goods  are  Community  goods.  By  "Community  goods" 

is meant goods: 

entirely  obtained  in  the  customs  territory  of  the  Community 

without  the  addition  of  goods  from  third  countries  or 

territories  which  are  not  part  of  the  customs  territory  of 

the Community. 

-40-

from  countries or  territories  not  forming  part  of  the  customs 

territory  of  the  Community  which  have  been  released  for  free 

circulation  in a Member  State. 

obtained  in the customs  territory of  the Community  from  goods 

referred  to either  exclusively  in the second  indent  or  in the 

first  and  second  indents. 

However,  without  prejudice  to  this  Convention,  or  to  other 

Agreements  concluded  by  the  Community,  goods  which,  although 

fulfilling  the  conditions  laid  down  in one  of  the  preceding 

three  indents, are  reintroduced  into  the customs  territory  of 

the  Community  after  being  exported  outside  that  territory 

shall  be deemed  not  to be Community  goods. 

(b)  in an  EFTA  country: 

only  when  the  goods  have  arrived  in  that  EFTA  country  under  the 

T2  procedure  and  are  reconsigned  under  the  special  conditions 

laid down  in Article 9 be Iow. 

4. 

The  special  conditions  laid  down  in  this  Convention  in  respect  of 

placing  goods under  the T2 procedure  shall  apply  also  to the  issue of 

documents  certifying  the  Community  status of  goods  and  goods  covered 

by  such  a document  shall  be  treated  in the  same  way  as goods  carried 

under  the  T2  procedure,  except  that  the  document  certifying  the 

Community  status of  the goods  need  not  accompany  them." 

-41-

B. 

Article 3  is replaced by the following  text:-

"ArticlQ 3 

1. 

For  the purposes of  this Convention, the term: 

(a) "transit"  shall  mean  a  procedure  under  which  goods  are  carried 

under  the control  of  the competent  authorities from one office of 

a  Contracting  Party  to  another  office  of  the  same  Contracting 

Party  or  that  of  another  Contracting  Party  over  at  least  one 

frontier; 

(b) "country",  shall  mean  any  EFTA  country  and  any  Member  State  of 

the  Community; 

(c) "third  country"  shall  mean  any  State  which  is  neither  an  EFTA 

country nor a Member  State of  the Community. 

2. 

In the application of  the rules  laid down  in this Convention  for  the 

T1  or  T2  procedure,  the  EFTA  countries  and  the  Community  and  its 

Member  States shall  have the same rights and obligations." 

C. 

Article 4  is replaced by the following  text:-

"Article 4 

1. 

This Convention  shall  be without  prejudice  to the application of  any 

other  international  agreement  concerning  a transit  procedure, subject 

to any  limitations to such  application  in respect  of  the carriage of 

goods  from  one  point  in  the  Community  to  another  point  in  the 

Community  and to any  limitations on  the  issue of documents certifying 

the Community  status of goods. 

-41-

2. 

This Convention shall  be without prejudice also to: 

(a) movements of goods under  a temporary  admission procedure; 

and 

(b) agreements concerning  frontier  traffic." 

D. 

Article 6  is replaced by  the following text:-

"Article 6 

Provided  that  the  implementation of any measures applicable to the goods  is 

ensured,  countries  may,  within  the  T1  or  T2  procedure,  introduce  among 

themselves  simplified  procedures,  by  means  of  bilateral  or  multilateral 

agreements,  which  shall  conform  to  criteria  to  be  laid  down  ,  where 

necessary,  in Appendix  II and which shall  be applicable to certain  types of 

traffic or  to designated undertakings. 

Such  agreements  shall  be  communicated  to  the  Commission  of  the  European 

Communities and to the other countries." 

Implementation of  the transit  procedure 

E. 

Article 7  is replaced by the following text:-

"Article 7 

1. 

Subject  to  any  special  provisions  of  this  Convention,  the  competent 

offices of  the  EFTA  countries  are  empowered  to  assume  the  functions 

of  offices  of  departure, offices  of  transit, offices  of  destination 

and offices of guarantee. 

2. 

The competent  offices of  the Member  States of  the Community  shall  be 

empowered  to  issue  T1  or  T2  documents  for  transit  to  an  office  of 

destination  situated  in  an  EFTA  country.  Subject  to  any  special 

provisions of  this Convention, they shall  also be empowered  to issue, 

for  goods  consigned  to  an  EFTA  country,  documents  certifying  the 

Community  status of those goods. 

- 4 3-

3. 

Where  several  consignments  of  goods  are  grouped  together  and  loaded 

on  a  single  means  of  transport,  within  the  meaning  of  Article  12, 

paragraph  2, of Appendix  I, and are dispatched  as a consolidated  load 

by  one  principal  in a single  T1  or  T2 operation,  from one  office of 

departure  to one office of destination  for delivery  to one consignee, 

a  Contracting  Party  may  require  that  those  consignments  shall,  save 

in exceptional, duly  Justified cases, be  included  in one single T1 or 

T2 declaration with  the corresponding  loading  lists. 

4. 

Notwithstanding  the  requirement  for  the Community  status of  goods  to 

be certified where applicable, a person completing export  formalities 

at  the  frontier  customs  office  of  a  Contracting  Party  shall  not  be 

required  to  place  the  goods  consigned  under  the  T1  or  the  T2 

procedure,  irrespective  of  the  customs  procedure  under  which  the 

goods will  be placed  at  the neighbouring  frontier  customs office. 

5. 

Notwithstanding  the  requirement  for  the Community  status of goods  to 

be  certified  where  applicable,  the  frontier  customs  office  of  the 

Contracting  Party  where  export  formalities  are  completed  may  refuse 

to place  the goods under  the T1 or  T2 procedure  if that  procedure  is 

to end at  the neighbouring  frontier  customs office." 

F. 

Article 9  is replaced  by the following  text:-

"Article 9 

1. 

Goods which  are  brought  into an  EFTA  country  under  the  T2  procedure 

and may be reconsigned  under  that  procedure  shall  remain at all  times 

under  the  control  of  the  customs  authorities  of  that  country  to 

ensure  that  there  is no change  in their  identity or state. 

-4h-

2. 

Where  such  goods  are  reconsigned  from  an  EFTA  country  after  having 

been  placed,  in  that  EFTA  country,  under  a  customs  procedure  other 

than  a  transit  or  a  warehousing  procedure,  no  T2  procedure  may  be 

applled. 

This provision  shall, however, not  apply  to goods which  are  admitted 

temporarily  to  be  shown  at  an  exhibition,  fair  or  similar  public 

display  and  which  have  received  no  treatment  other  than  that  needed 

for  their  preservation  in  their  original  state  or  for  splitting  up 

consignments. 

3. 

Where  goods  are  reconsigned  from  an  EFTA  country  after  storage under 

a warehousing  procedure,  the T2 procedure may  be applied only  on  the 

following conditions: 

that  the goods  have  not  been  warehoused  over  a period  exceeding 

five  years;  however,  as  regards  goods  falling  within  Chapters 1 

to  24  of  the  Nomenclature  for  the  Classification  of  Goods  in 

Customs  Tariffs  (International  Convention  on  the  Harmonized 

Commodity  Description  and  Coding  System  of  14  June  1983),  that 

period  shall  be  limited  to six months, 

that  the  goods  have  been  stored  in  special  spaces  and  have 

received  no  treatment  other  than  that  needed  for.  their 

preservation  in  their  original  state,  or  for  splitting  up 

consignments without  replacing  the packaging; 

that any  treatment  has taken place under  customs supervision. 

-49-

Any  T2  document  or  any  document  certifying  the  Community  status  of 

goods  issued  by  a  competent  office  of  an  EFTA  country  shall  bear  a 

reference  to  the  corresponding  T2  document  or  document  certifying  the 

Community  status  of  goods  under  which  the goods  arrived  in  that  EFTA 

country  and  shall 

include  all  special  endorsements  appearing 

thereon." 

Article  10  is replaced  by  the  following  text:-

"Article  10 

Except  where  otherwise  provided  for  in  paragraph  2  below  or  in  the 

Appendices,  any  T1  or  T2  operation  shall  be  covered  by  a  guarantee 

valid  for  all  Contracting  Parties  involved  in that  operation. 

The  provisions  of  paragraph  1 shall  not  prejudice  the  right: 

(a) of  Contracting  Parties  to  agree  among  themselves  that  the 

guarantee  shall  be  waived  for  T1  or  T2 operations  involving  only 

their  territories; 

(b) of  a Contracting  Party  not  to  require  a guarantee  for  the part  of 

a  T1  or  T2  operation  between  the  office  of  departure  and  the 

first  office  of  transit. 

-u-

For  the  purposes  of  the  flat  rate  guarantee  as  provided  for  in 

Appendices  I  and  II,  the  "ecu"  means  the  total  of  the  following 

amounts: 

0,6242 

German mark 

0,08784 

Pound sterIing 

1,332 

French  francs 

151,8 

Italian  lira 

0,2198 

Dutch guiIder 

3,301 

0,130 

Belgian  francs 

Luxembourg  franc 

0,1976 

Danish krone 

0,008552 

Irish pound 

1,440 

6,885 

1,393 

Greek  drachmas 

Spanish  pesetas 

Portuguese escudos 

The value of  the ecu  in a given currency  shall  be equal  to the sum of 

the  exchange  values  in  that  currency  of  the  amounts  set  out  in the 

first  sub-paragraph." 

Article  11  is replaced by  the following  text:-

"Article 11 

As  a  general  rule,  identification  of  the  goods  shall  be  ensured  by 

sealing. 

The following  shall  be sealed: 

(a) the  space  containing  the  goods, when  the means  of  transport  has 

already  been  approved  under  other  regulations  or  recognized  by 

the office of departure as suitable  for sealing; 

(b) each  individual  package  in other  cases. 

-4> 

3. 

Means  of  transport  may  be  recognized  as  suitable  for  sealing  on 

condition  that: 

(a) seals can be simply  and effectively  affixed  to them; 

(b) they  are  so  constructed  that  no  goods  can  be  removed  or 

introduced without  leaving visible  traces of  tampering  or without 

breaking  the seals; 

(c) they contain no concealed spaces where goods may be hidden; 

(d) the  spaces  reserved  for  the  load  are  readily  accessible  for 

inspection by the competent  authorities. 

4. 

The  office  of  departure  may  dispense  with  sealing  if, having  regard 

to other  possible measures  for  identification, the description of  the 

goods  in  the T1  or  T2 declaration  or  in the  supplementary  documents 

makes  them  readily  identifiable." 

I. 

In  the  German  version,  at  Article  12/1  (a)  and  (b)  the  word 

"GrenzUbergangsstelle" 

is 

replaced 

by 

the 

word 

"DurchgangszolIstelle". 

J. 

Article  13  is replaced by  the following  text:-

"Article 13 

1. 

The  competent  authorities  of  the  countries  concerned  shall  furnish 

each  other  with  any  information  at  their  disposal  which  is  of 

importance  in  order  to  verify  the  proper  application  of  this 

Convent ion. 

2. 

Where necessary,  the competent  authorities of  the countries concerned 

shall  communicate  to  one  another  all  findings,  documents,  reports, 

records  of  proceedings  and  information  relating  to  transport 

operations  carried  out  under  the  T1  or  T2  procedure  as  well  as  to 

irregularities or  infringements  in connection with  such operations. 

-4e-

Furthermore,  where  necessary,  they  shall  communicate  to one  another 

all  findings  relating  to goods  in respect  of which  mutual  assistance 

is provided  for  and which  have  been subject  to a customs warehousing 

procedure. 

Where  irregularities  or  infringements  are  suspected  in  connection 

with  goods  which  have  been  brought  into  one  country  from  another 

country or  have passed  through  a country or  have been  stored  under a 

warehousing  procedure,  the  competent  authorities  of  the  countries 

concerned  shall  on request  communicate  to one another  all  information 

concerning: 

(a) the conditions under which  those goods were  carried: 

whatever  the  way  in which  they  were  reconsigned,  where  they 

arrived  in  the  country  to  which  the  request  is  addressed 

under  cover  of  a T1  or  T2  document  or  a  document  certifying 

the Community  status of  the goods, or 

whatever  the  way  in  which  they  arrived,  where  they  were 

reconsigned  from  the  country  to  which  the  request  is 

addressed  under  cover  of  a  T1  or  T2  document  or  a  document 

certifying  the Community  status of  the goods; 

(b) the  conditions  of  any  warehousing  of  those  goods  where  they 

arrived  in  the  country  to  which  the  request  is  addressed  under 

cover  of  a  T2  document  or  a  document  certifying  the  Community 

status  of  the  goods  or  where  they  were  reconsigned  from  that 

country under  cover of a T2 document  or a document  certifying  the 

Community  status of  the goods. 

4. 

Any  request  made  under  paragraphs  1 to  3  shall  specify  the  case or 

cases to which  it refers. 

- - f f-

5. 

If  the  competent  authority  of  a  country  requests  assistance  which  it 

would  not  be  able  to  give  if  requested,  it  will  draw  attention  to 

that  fact  in  the  request.  Compliance  with  such  a  request  will  be 

within  the  discretion  of  the  competent  authority  to whom  the  request 

is made. 

6. 

Information  obtained  in  accordance  with  paragraphs  1  to  3  shall  be 

used  solely  for  the  purpose  of  this  Convention  and  shall  be  accorded 

the  same  protection  by  a  receiving  country  as  is  afforded  to 

information  of  like  nature  under  the  national  law  of  that  country. 

Such  information may  be  used  for  other  purposes  only  with  the  written 

consent  of  the  competent  authority  which  furnished  it  and  subject  to 

any  restrictions  laid  down  by  that  authority." 

lo-

COMMISSION STATEMENT  CONCERNING 

IMPACT ON ECONOMIC ACTIVITY 

Subject: 

proposal  for  a Council  decision  concerning  the  conclusion 

of  an  agreement  by  an  exchange  of  letters  relating  to  an 

amendment  to the Convention of  20 May  1987 on Common transit. 

The  agreement  by  exchange  of  letters  which  is  the  subject  of  this 

proposed Council  decision relates  to the acceptance of Recommendation 

1/91  adopted  by  the  Joint  EEC/EFTA  Committee  on  Common  transit  on 

19.9.91. This Recommendation amends  the EEC/EFTA Convention on Common 

transit  in such  a way  as  to make  the  necessary  amendments  following 

the recently  introduced modifications to the Community Transit  regime 

in  the  light  of  the  completion  of  the  internal  market  on  1.1.93, 

which  involves  an area without  internal  borders  and  within  which  in 

particular  the free circulation of goods  is guaranteed. 

It should be noted  that  the said Convention does constitute  in itself 

a  measure  of  harmonisation  and  simplification  in  trade  between  the 

Community  and  the EFTA countries and  is  intended  to promote economic 

activity  between the Parties. 

This  agreement  on  Recommendation  1/91  follows  the  same  line  in 

improving  EEC/EFTA  trade  procedures  and  will  have  therefore  a 

positive economic  impact. 

BSN 0254-1475 

COM(91) 490 final 

DOCUMENTS 

EN 

07 

Catalogue number : CB-CO-91-545-EN-C 

ISBN 92-77-78116-5 

Office for Official Publications of the European Communities 
L-2985 Luxembourg