Agreement on Cooperation and Customs Union between the European Economic Community and the Republic of San Marino - Declarations
Date: 1991-12-16
Institutions: Belgium, Denmark, European Economic Community, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, San Marino, Spain, United Kingdom
Subjects: San Marino, cooperation agreement (EU), customs union, tariff agreement, trade agreement, trade cooperation

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Official Journal of the European Communities

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on Cooperation and Customs Union between the European Economic Community and the
Republic of San Marino

AGREEMENT

HIS MAJESTY THE KING OF THE BELGIANS,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE HELLENIC REPUBLIC,

HIS MAJESTY THE KING OF SPAIN,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

THE PRESIDENT OF THE PORTUGUESE REPUBLIC,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

whose States are Contracting Parties to the Treaty establishing the European Economic Community, and

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part, and

THE REPUBLIC OF SAN MARINO,

of the other part,

RESOLVED to consolidate and extend the extend the existing close relations between the European Economic Community
and the Republic of San Marino,

CONSIDERING THAT existing links between the two Parties, particularly in the commercial, economic, social and cultural
sectors, should be strengthened by establishing cooperation between San Marino and the European Economic Community
in respect of all matters of common interest,

CONSIDERING THAT, owing to the situation of San Marino and its present status within the customs territory of the
Community, a customs union should be established between the Republic of San Marino and the European Economic
Community,

HAVE AGREED AS FOLLOWS:

Article 1

Article 3

The purpose of
this Agreement between the European
Economic Community and the Republic of San Marino is to
establish a customs union between the two Parties and
promote comprehensive cooperation between them with the
aim of contributing to the social and economic development of
the Republic of San Marino and strengthening relations
between the Parties.

TITLE I

CUSTOMS UNION

Article 2

A customs union is hereby established between the European
Economic Community and the Republic of San Marino for
products covered by Chapters 1 to 97 of
the Common
Customs Tariff, except products falling within the scope of the
Treaty establishing the European Coal and Steel Community.

1.

The provisions of this Title shall apply to:

(a) goods produced in the Community or in the Republic of
San Marino,
including those obtained wholly or in part
from products which come from third countries and are in
free circulation in the Community or in San Marino;

(b) goods which come from third countries and are in free
circulation in the Community or in the Republic of San
Marino.

2.
Products coming from third countries shall be considered
to be in free circulation in the Community or in the Republic
of San Marino if the import formalities have been complied
with and any customs duties or charges having equivalent
effect which are payable have been levied, and there has been
no total or partial drawback of such duties or charges in
respect of the said products.

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Article 4

tions where necessary for the proper functioning of the Agree-
ment.

The provisions of this Title shall also apply to goods obtained
or produced in the Community or in the Republic of San
Marino in the manufacture of which were used products
coming from third countries and not in free circulation either
in the Community or in San Marino. These provisions shall,
however,
exporting
Contracting Party levies the customs duties laid down in the
Community for third country products used in their manufac-
ture.

apply to those goods only if

the

Article 5

1.
The Contracting Parties shall refrain from introducing
between themselves any new customs duties on imports or
exports or charges having equivalent effect.

2.
The Republic of San Marino also undertakes not to adjust
duties referred to in paragraph 1 as applied to imports from
the Community on 1 January 1991, without prejudice to
existing commitments between San Marino and Italy pursuant
to the Exchange of Letters of 21 December 1972.

Article 6

1.
Trade between the Community and the Republic of San
Marino shall be exempt from all import and export duties and
charges having equivalent effect, subject to the provisions of
paragraphs 2 and 3.

that

In order

2.
the charges having equivalent effect
currently applied to imports from the Community may be
abolished on 1 January 1996, the Republic of San Marino
undertakes to introduce, within six months of the entry into
force of this Agreement, a supplementary tax corresponding to
that currently levied on imported goods, to be chargeable on
domestic products
intended for home consumption. The
supplementary tax will apply in full on the above date. It shall
be applicable as a countervailing measure and shall be calcu-
lated on the added value of domestic products at rates equal to
those applied to imported goods of a similar kind.

3. (a) On the

entry into force of

the
Community, with the exception of the Kingdom of Spain
and the Portuguese Republic, shall admit imports from
the Republic of San Marino exempt from customs duty.

the Agreement,

(b) From the entry into force of

the
Kingdom of Spain and the Portuguese Republic shall
apply the same customs duties in respect of the Republic
of San Marino as
the
Community as constituted on 31 December 1985.

they apply in respect of

the Agreement,

4.
In trade in agricultural products between the Community
and San Marino, the Republic of San Marino undertakes to
adopt Community veterinary, plant health and quality regula-

Article 7

1.
From the entry into force of the Agreement the Republic
of San Marino shall apply in respect of countries not members
of the Community:

— the Common Customs Tariff,

— laws, regulations and administrative provisions applicable
to customs matters in the Community and necessary for
the proper functioning of the customs union,

— the common commercial policy of the Community,

— Community regulations on trade in agricultural products
covered by Annex II to the Treaty establishing the Euro-
pean Economic Community, with the exception of refunds
and compensatory amounts accorded for exports,

— Community veterinary, plant health and quality regulations
where necessary for the proper functioning of the Agree-
ment.

The provisions referred to in this paragraph shall be those
applicable at the time in the Community.

2.
The provisions referred to in the second to fifth indents
of paragraph 1 shall be determined in greater detail be the
Cooperation Committee.

3.
By way of derogation from the first indent of paragraph
1, publications, works of art, scientific or teaching materials
and medical supplies or equipment offered to the Government
of
insignia, medals, stamps,
printed matter and other similar objects or paper destined for
use by the Government shall be exempt from customs duties.

the Republic of San Marino,

Article 8

1. (a) Over a period of five years from the entry into force of
the Agreement, and beyond that period if no agreement
can be reached in accordance with 1(b), the Republic of
San Marino shall authorise the Community, acting on
behalf of, and for, San Marino, to carry out customs
clearance formalities, in particular release for free circula-
tion of products sent
from third countries to San
Marino. Such formalities will be effected by Community
customs offices.

(b) At the end of this period, and under Article 26, the
Republic of San Marino may exercise its right to carry
out customs clearance formalities, following agreement
of the Contracting Parties.

2. Where import duties are payable on goods pursuant to
paragraph 1, these duties shall be levied on behalf of the
Republic of San Marino. San Marino shall undertake not to
refund these sums directly or
indirectly to the parties
concerned, subject to the provisions of paragraph 4.

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3.

The Cooperation Committee shall decide on:

(a) possible changes

to the list of

the customs offices
competent to clear the goods referred to in paragraph 1
and the procedure for forwarding the said goods to the
Republic of San Marino;

(b) the

for

arrangements

assigning to the San Marino
Exchequer the amounts collected in accordance with para-
graph 2, and the percentage to be deducted by the Euro-
pean Economic Community to cover administrative costs
in accordance with the relevant regulations in force within
the Community;

question shall provide the Cooperation Committee with all
relevant information required for a detailed examination of the
situation with a view to seeking a solution acceptable to the
Contracting Parties. At the request of the other Contracting
Party, consultations shall take place within the Cooperation
Committee before the Contracting Party concerned takes
appropriate measures.

exceptional

3. Where
immediate
action making prior examination impossible, the Contracting
Party concerned may apply forthwith such precautionary meas-
ures as are strictly necessary to remedy the situation.

circumstances

require

(c) any other arrangements necessary for the proper imple-

mentation of this Article.

4.
The taxes and levies on imports of agricultural products
may be used by San Marino for aiding production or exports.
San Marino undertakes, however, not to accord higher export
refunds or compensatory amounts than those accorded by the
European Economic Community for exports to third countries.

Article 9

Quantitative restrictions on imports and exports and all meas-
ures having equivalent effect between the Community and the
Republic of San Marino shall be prohibited from the entry into
force of the Agreement.

Article 10

The Agreement shall not preclude prohibitions or restrictions
on imports, exports or goods in transit justified on grounds of
public morality, public policy or public security, the protection
of health and life of humans, animals or plants, the protection
of national treasures possessing artistic, historic or archaeolog-
ical value, the protection of industrial or commercial property,
or controls relating to gold and silver. Such prohibitions or
restrictions shall not, however, constitute a means of arbitrary
discrimination or a disguised restriction on trade between the
Contracting Parties.

Article 11

The Contracting Parties shall refrain from any domestic tax
measure or practice leading directly or indirectly to discrim-
ination between the products of one Contracting Party and
similar products from the other Contracting Party.

Products sent to the territory of one of the Contracting Parties
shall not be eligible for a refund of domestic charges which is
higher than the charges which have been levied directly or
indirectly.

Article 12

the Contracting Parties,

If serious disturbances arise in any sector of the economy
1.
of one of
the Contracting Party
concerned may take the necessary safeguard measures in
accordance with the procedures, and subject to the conditions,
of the paragraphs below.

In the case referred to in paragraph 1, before taking the
2.
measures provided for therein or,
in the cases covered by
paragraph 3, as soon as possible, the Contracting Party in

4.
In the selection of measures, priority must be given to
those which least disturb the functioning of the Agreement.
Such measures must not exceed the limits of what is strictly
necessary to counteract the difficulties that have arisen.

The safeguard measures must be notified immediately to the
Cooperation Committee, which shall hold regular consultations
on them, particularly with a view to their abolition as soon as
circumstances permit.

Article 13

1.
In addition to the cooperation provided for in Article
23(8), the administrative authorities of the Contracting Parties
responsible for implementing the provisions of this Agreement
shall assist each other in other cases so as to ensure compliance
with the provisions.

Procedures for the application of paragraph 1 shall be

2.
laid down by the Cooperation Committee.

TITLE II

COOPERATION

Article 14

The Community and the Republic of San Marino shall institute
cooperation with the aim of strengthening existing links
between them on as broad a basis as possible for the mutual
benefit of the Parties, taking account of their respective powers.
Cooperation shall focus on the priority areas referred to in
Articles 15 to 18 of this Title.

Article 15

The Contracting Parties undertake to encourage the growth and
diversification of
the
economy of San Marino, focusing their cooperation activities
on small and medium-sized enterprises.

the industrial and services sectors of

Article 16

The Contracting Parties undertake to cooperate on matters
relating to environmental protection and improvement with
the aim of resolving the problems caused by contamination of
water, soil and air, by erosion and by deforestation. They will
pay special attention to the problems of pollution in the
Adriatic Sea.

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Article 17

In accordance with their respective laws,
the Contracting
Parties shall support cooperation in the tourism sector through
operations such as the exchange of officials and experts on
tourism, exchanges of information and tourist statistics, and
training in hotel management and administration.
In this
context, the Contracting Parties shall pay particular attention to
the promotion of out-of-season tourism in San Marino.

Article 18

The Contracting Parties agree to undertake joint operations in
to
communications,
strengthen existing links between them.

cultural matters

information

and

Such operations may take the following forms:

— exchanges of information on subjects of mutual interest in

the fields of culture and information,

— events of a cultural nature,

— cultural exchanges,

— academic exchanges.

Article 19

The Contracting Parties may enlarge the scope of this Agree-
ment by mutual consent in order to supplement the areas of
cooperation through agreements on specific sectors or activi-
ties.

TITLE III

SOCIAL PROVISIONS

Article 20

The treatment accorded by each Member State to workers of
San Marino nationality employed in its territory shall be free
from any discrimination based on nationality in relation to its
own nationals as regards working conditions or remuneration.

The Republic of San Marino shall accord the same treatment to
workers who are nationals of a Member State and employed in
its territory.

Article 21

1.
Subject to the provisions of the following paragraphs,
workers of San Marino nationality and any members of their
in the field of social
families living with them shall enjoy,
security, treatment free from discrimination based on nation-
ality in relation to nationals of Member States in which they
are employed.

All periods of

insurance, employment or

residence
2.
completed by such workers in the various Member States shall
be added together for the purpose of pensions and annuities in
respect of old age, death and invalidity, and also for the
purpose of medical care for the workers and for members of
their families resident in the Community.

The workers in question shall receive family allowances
in the

families who are resident

their

3.
for members of
Community.

4.
The workers in question shall be able to transfer freely to
San Marino, at the rates applied by virtue of the law of the
debtor Member State or States, any pensions or annuities in
respect of disability, old age, death, industrial accident or occu-
pational disease.

5.
The Republic of San Marino shall accord to workers who
are nationals of a Member State and employed in its territory,
and to members of their families, treatment similar to that
specified in paragraphs 1, 3 and 4.

Article 22

Before the end of the first year following the entry into
1.
force of
the Cooperation Committee shall
adopt provisions to implement the principles set out in Article
21.

this Agreement,

The Cooperation Committee shall adopt detailed rules for
2.
administrative cooperation providing the necessary manage-
ment and control guarantees for the application of the provi-
sions referred to in paragraph 1.

3.
The provisions adopted by the Cooperation Committee
shall not affect the rights or obligations arising from bilateral
agreements between San Marino and Member States of the
Community where those agreements provide for more favour-
able treatment of nationals of San Marino or the Member
States.

TITLE IV

GENERAL AND FINAL PROVISIONS

Article 23

1.
A Cooperation Committee is hereby set up with responsi-
bility for administering the Agreement and ensuring that it is
properly implemented. To that end it shall formulate recom-
mendations. It shall take decisions in the cases provided for in
the Agreement. The decisions
shall be executed by the
Contracting Parties in accordance with their own regulations.

2. With a view to the proper implementation of the Agree-
ment, the Contracting Parties shall carry out exchanges of
information and, at the request of either Party, shall consult
together in the Cooperation Committee.

The Cooperation Committee shall draw up its own rules

3.
of procedure.

4.
The Cooperation Committee shall be composed, on the
one hand, of representatives of the Commission, assisted by
delegates of the Member States and, on the other, of represen-
tatives of the Republic of San Marino.

The Cooperation Committee shall

5.
common accord.

take decisions by

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The Cooperation Committee shall be chaired by each of
6.
the Contracting Parties in turn in accordance with the arrange-
ments to be established in its Rules of Procedure.

7.
The Cooperation Committee shall meet at the request of
either of the Contracting Parties, to be lodged at least one
month before the date of the intended meeting. Where the
Committee is convened under Article 12, it shall meet within
eight working days of the date on which the date is lodged.

In accordance with the procedure laid down in paragraph
8.
the Cooperation Committee shall establish methods of
1,
administrative cooperation for
the purposes of applying
Articles 3 and 4, taking as a basis the methods adopted by the
Community in respect of trade between the Member States.

Article 24

1.
Any disputes arising between the Contracting Parties over
the interpretation of the Agreement shall be put before the
Cooperation Committee.

Article 26

This Agreement is concluded for an unlimited duration. Within
no more than five years of its entry into force, the two Parties
shall begin consultations to examine the results of its applica-
tion and, if necessary, open negotiations on its amendment in
the light of that examination.

Article 27

Either Contracting Party may denounce this Agreement by
notifying the other Contracting Party in writing. In that case,
the Agreement shall cease to have effect six months after the
date of such notification.

Article 28

This Agreement replaces provisions of agreements concluded
between Member States of the Community and the Republic of
San Marino that conflict with it, or which are identical.

Article 29

If

2.
the Cooperation Committee does not succeed in
settling the dispute at its next meeting, each Party may notify
the other of the designation of an arbitrator; the other Party
shall then be required to designate a second arbitrator within
two months.

This Agreement shall apply, on the one hand, to the territories
in which the Treaty establishing the European Economic
Community is applied and under the conditions laid down in
that Treaty and, on the other, to the territory of the Republic of
San Marino.

The Cooperation Committee shall designate a third arbitrator.

The arbitrators' decisions shall be taken by majority vote.

Each Party in the dispute shall be required to take the measures
needed to ensure the application of the arbitrators' decision.

Article 25

In trade covered by the Agreement:

— the arrangements applied by the Republic of San Marino in
respect of the Community may not give rise to any discrim-
ination between the Member States, their nationals, or their
companies,

Article 30

This Agreement will be approved by the Contracting Parties in
accordance with their own procedures.

This Agreement shall enter into force on the first day of the
the procedures
second month following notification that
referred to in the first subparagraph have been complied with.

Article 31

The Annex to this Agreement shall
thereof.

form an integral part

Article 32

— the arrangements applied by the Community in respect of
San Marino may not give rise to any discrimination
between San Marino nationals or companies.

This Agreement is drawn up in two originals in the Danish,
Dutch, English, French, German, Greek, Italian, Portuguese and
Spanish languages, each text being equally authentic.

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Hecho en Bruselas, el dieciséis de diciembre de mil novecientos noventa y uno.

Udfærdiget i Bruxelles, den sekstende december nitten hundrede og enoghalvfems.

Geschehen zu Brüssel am sechzehnten Dezember neunzehnhunderteinundneunzig.

Έγινε στις Βρυξέλλες, στις δέκα έξι ∆εκεµβρίου χίλια εννιακόσια ενενήντα ένα.

Done at Brussels on the sixteenth day of December in the year one thousand nine hundred and ninety-one.

Fait à Bruxelles,

le seize décembre mil neuf cent quatre-vingt-onze.

Fatto a Bruxelles, addì sedici dicembre millenovecentonovantuno.

Gedaan te Brussel, de zestiende december negentienhonderd eenennegentig.

Feito em Bruxelas, em dezasseis de Dezembro de mil novecentos e noventa e um.

Pour Sa Majesté le Roi des Belges

Voor Zĳne Majesteit de Koning der Belgen

For Hendes Majestæt Danmarks Dronning

Für den Präsidenten der Bundesrepublik Deutschland

Για τον Πρόεδρο της Ελληνικής ∆ηµοκρατίας

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Por Su Majestad el Rey de España

Pour le Président de la République française

For the President of Ireland

Thar ceann Uachtarán na hEireann

Per il presidente della Repubblica italiana

Pour Son Altesse Royale le Grand-Duc de Luxembourg

Voor Hare Majesteit de Koningin der Nederlanden

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Pelo Presidente da República Portuguesa

For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland

Por el Consejo de las Comunidades Europeas

For Rådet for De Europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

Για το Συµβούλιο των Ευρωπαϊκών Κοινοτήτων

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen

Pelo Conselho das Comunidades Europeias

Per la Repubblica di San Marino

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ANNEX

List of customs offices referred to in Article 8(1)(a)

Livorno

Ravenna

Rimini

Trieste

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DECLARATION BY THE COMMUNITY

Where the scale of trade flows so warrants, the Community is prepared to negotiate on behalf of, and for,
the Republic of San Marino with countries with which it has concluded preferential agreements for an
appropriate form of recognition of equivalent treatment for products originating in San Marino and
products originating in the Community.

DECLARATION BY THE COMMUNITY

on transport

At an appropriate moment and in the light, notably, of progress made in drawing up a Community
transport policy, the Community will
look into the issue of San Marino's access to the market for
international transport of passengers and goods by road.

DECLARATION BY THE COMMUNITY

on the Erasmus programme

The Community will examine with a positive ear San Marino's wish to participate, when the time is ripe, in
the Erasmus programme for exchanges of students and teachers.

DECLARATION BY THE COMMUNITY

on certain subjects which may be raised in the Cooperation Committee

The Community is ready to examine, within the framework of its powers and the Cooperation Committee,
in particular:
any problems that may arise between San Marino and the Community in the fields of,

— trade in services,

— intellectual,

industrial and commercial property rights,

— recognition of qualifications,

— assessment of products' conformity with technical regulations.

DECLARATION BY THE MEMBER STATES

concerning the minutes of the negotiations

Each Member State will look favourably on requests made by San Marino concerning authorisations for the
transport of passengers or freight by road.