Proposal for a COUNCIL DECISION on the conclusion of an interim Agreement on trade and customs union between the European Economic Community and the Republic of San Marino
Date: 1992-04-03
Institutions: European Commission
Subjects: San Marino, agreement (EU), customs union, trade cooperation

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(92)114  final 

Brussels, 3  ApriI 1992 

Proposal  for a 

COUNCIL  PECISION 

on  the conclusion of an  interim  Agreement 
on  trade and customs  union 
between  the European  Economic  Community 
and  the Republic of San Marino 

(presented  by the Commission) 

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EXPLANATORY  MEMORANDUM 

On the 16 December 1991, the Community and its Member States and 

the Government of the Republic of San Marino signed a cooperation and 
customs union agreement between the EBC and San Marino. 

Given the mixed nature of this agreement, it needs to be submitted 
for ratification by National Parliament, which will hold up its entry into 
force.  The Republic of San Marino therefore wishes to conclude an interim 
agreement which can ensure the rapid implementation of the trade provisions 
of the agreement signed last 16 December. 

/Au/ads/BH/SMAC/AOCl-a* 

Proposal  for a 
COUNCIL  DECISION 
on  the conclusion of  an  interim  Agreement 
on  trade  and  customs  union 
between  the  European  Economic  Community 
and  the Republic of  San  Marino 

THE  COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the Treaty  establishing  the  European  Economic  Community, 
and  in particular  Articles  113 and  235  thereof, 

Having  regard  to the proposal  from  the  Commission, 

Having  regard  to  the opinion  of  the European  Parliament, 

Considering  that  while waiting  for  the entry  into  force of  the  cooperation 
and  customs  union  agreement  signed  in Brussels  on  the  16th  December  1991 
between  the  European  Economic  Community  and  the  Republic  of  San Marino,  the 
Community  should  approve  the  interim  agreement  on  trade  and  customs  union; 

HAS  DECIDED  AS  FOLLOWS: 

Article 1 

The  interim Agreement  on  trade  and  customs union  between  the  European 
Economic  Community  and  the Republic of  San Marino,  including  the 
declaration  it  incorporates,  is hereby  approved  on  behalf  of  the  Community. 

The  texts of  the  interim  agreement  are  attached  to  this  Decision. 

The  President  of  the Council  shall  give  the  notification  provided  for  in 
Article  19 of  the  Agreement.1 

Art icle 2 

Done  at  Brussels, 

For  the Counci 
The  President 

1  The  date of  entry  into  force of  the Agreement  will  be  published  in the 
Official  Journal  of  the European  Communities  by  the General  Secretariat 
of  the  CounciI. 

THE CDDNCIL OF THE EUROPEAN OOMMONITXES, 

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THE REPUBLIC OF SAN MARINO, 

of the one hand, 

of the other hand, 

CONSIDERING the agreement on cooperation and customs union signed on the 
16th of December 1991 between the European Community and the Republic of 
San Marino; 

CONSIDERING THAT, given the fact that this agreement requires, besides 
approval by the Community, the ratification by the National Parliaments, 
which shall delay its enforcement; 

CONSIDERING the importance that the Parties attach to the strengthening and 
to the development of their relations, notably in the commercial and 
economic field; 

CONSIDERING that the commercial and customs provisions of this Agreement 
should be rapidly implemented by means of a temporary agreement; 

HAVE AGREE) AS KXIONS: 

TITLE I 

CUSTOMS UNION 

Article 1 

A customs union is hereby established between the European Economic 
Community and San Marino for products covered by Chapters 1 to 97 of the 
Common Customs Tariff. 

1. The provisions of this Title shall apply to: 

Article 2 

(a) 

goods produced in the Community or in 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 San Marino. 

2. Products coming from third countries shall be considered to be in free 
circulation in the Community or in San Marino if the iinport 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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V 

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Article 5 

The provisions of this Title shall also apply to goods obtained or produced 
in the Community or in 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, apply to 
those goods only if the exporting Contracting Party levies the customs 
duties laid down In the Community for third country products used in their 
manufacture. 

Article 4 

1. The Contracting Parties shall refrain from introducing 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 5 

1. Trade between the Ctammunity and San Marino sha.11 be exempt from all 
import and export duties and charges having equivalent effect, subject to 
the provisions of paragraphs 2 and 3. 

2. In order that 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 calculated 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 Agreement, the Oammunity, 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. 

(b)  From the entry into force of the Agreement the Kingdom of Spain and 
the Portuguese Republic shall apply the same customs duties in 
respect of the Republic of San Marino as they apply in respect of 
the Community as constituted on 31 December 1985. 

4. In trade in agricultural products between the Community and San Marino, 
the Republic of San Marino undertakes to adopt Ganraunity veterinary, plant 
health and quality regulations where necessary for the proper functioning 
of the Agreement. 

/Au/ads/BH/SMAC/AocI-EN 

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Article 6 

1. From the entry into force of the Agreement 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 cammercial policy of the Community; 

Community regulations on trade in agricultural products covered by 
Annex II to the Treaty establishing the European 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 Agreement. 

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 by the Cooperation Committee. 

3. By way of derogation from the first indent of paragraph 1 publications, 
wo^ks of art, scientific or teaching materials offered to the San Marino 
go/ernment, inrdgnias, medals, stamps, printed matter and other similar 
obir-ots or paper destined for use by the government shall be exempt from 
customs duties. 

Article 7 

id )  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), San Marl no shall authorize the Canmunity, 
acting on behalf of and for San Marino, to carry out customs 
clearaw^e formalities, in particular release for free circulation 
of products sent from third countries to San Marino.  Such 
formalities will effected by the Community customs offices listed 
in the Annex. 

At the end of this period, and under Article 16, San Marino may 
exercise its right to carry out customs clearance formalities, 
following agreement of the Contracting Parties. 

2. Wiere import duties are payable on goods pursuant to paragraph 1, these 
duties shall be levied on behalf 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. 

/Au/ads/BH/SMAC/AccI-EN 

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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 San Marino; 

(b)  the arrangements for assigning to the San Marino Exchequer the 
amounts collected in accordance with paragraph 2, and the 
percentage to be deducted by the European Economic Community to 
cover administrative costs in accordance with the relevant 
regulations in force within the Community; 

(c)  any other arrangements necessary for the proper implementation 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 8 

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

Article 9 

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 archaeological 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 10 

The Contracting Parties shall refrain from any domestic tax measure or 
practice leading directly or indirectly to discrimination between the 
products of one Contracting Party and si mi 1 ar 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. 

/Au/ads/BH/SMAC/AocI-EN 

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Article 11 

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

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

3. Where  exceptional cnjcumstances require immediate action making prior 
examination Impossible, the Contracting Party cxDncerned may apply forthwith 
such precautionary measures as are strictly necessary to remedy the 
situation. 

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 12 

1. In addition to the cooperation provided for in Article 13(8), the 
admi ni strative 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. 

2. Procedures for the application of paragraph 1 shall be laid down by the 
Cooperation Committee. 

TITLE II 

GENERAL AND FINAL PROVISIONS 

Article 15 

1. A Cooperation Committee is hereby set up with responsibility for 
administering the Agreement and ensuring that it is properly implemented. 

/Au/ads/BH/SMAC/AocI-EN 

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To that end it shall formulate recommendations.  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 linplementation of the Agreement, the 
Contracting Parties shall carry out exchanges of information and, at the 
request of either Party, shall consult together in the Cooperation 
Committee. 

3. The Cooperation Committee shall draw up its own rules of procedure. 

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

5. The Cooperation Committee shall take decisions by common accord. 

6. The Cooperation Committee shall be chaired by each of the Contracting 
Parties in turn in accordanoe with the arrangements 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 11, it 
shall meet within eight working days from the date on which the date is 
lodged. 

8. In accordance with the procedure laid down in paragraph 1, the 
Cooperation Committee shall establish methods of administrative cooperation 
for the purposes of applying Articles 2 and 3, taking as a basis the 
methods adopted by the Community in respect of trade between the Member 
States. 

Article 14 

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

2. If 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. 

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. 

/Au/ads/BH/SMAC/AccI-EN 

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Article 15 

In trade covered by the Agreement: 

-  the arrangements applied by San Marino in respect of Community may not 

give rise to any discrimination between the Member States, their 
nationals, or their (xaonpanies; 

-  the arrange. 3nts applied by the Community in respect of San Marino may 
not give rir.  to any discrimination between San Marino nationals or 
companies. 

Article 16 

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 application and, if necessary, 
open negotiations on its amendment in the light of that examination. 

Article 17 

Either Contracting Party may denounce this Agreement by notifying the other 
Contracting Party in writing.  In that case, the Agreement sha.11 cease to 
have effect six months after the date of such notification. 

Article 18 

The 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 San Marino. 

Article 19 

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 second month 
following notification that procedures referred to in the first 
subparagraph have been complied with. 

It will cease being applicable once the cooperation and customs union 
agreement between the European Economic Community and the Republic San 
Marino comes into operation. 

/Au/ads/BH/SMAC/AccI-EN 

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Article 20 

The Annex to this Agreement shall form an integral part thereof. 

Article 21 

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. 

/Au/ads/BH/SMAC/AccI-EN 

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ANNEX 

List of customs offices referred to in Article 7(1)(a) 

LIVORNO 

RAVENNA 

RIMINI 

PORLI (CESENA) 

TRIESTE 

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DECLARATION  Ef  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; 

/Au/ads/HH/SMAC/AccI-EN 

ISSN 0254-147 

COM(92)114fina 

DOCUMENTS 

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1102 

Catalogue number: CB-CO-92-145-EN-C 

ISBN 92-77-42738-8 

Office  for Official Publications of the European Communities 

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