Proposal for a COUNCIL REGULATION (EC) en certain procedures for applying the Interim Agreement on Trade and Trade Relaged Measures between the European Community, the European Coal and Steel Community and the European Atomic Energy Community of the one part and the Republic of Slovenia of the other part
Date: 1996-12-18
Institutions: European Commission
Subjects: Slovenia, interim agreement (EU), protective clause, tariff quota, trade agreement (EU)

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  18.12.1996 
COM(96) 712 final 

96/0316 (ACC) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

on certain procedures for applying the Interim Agreement on Trade and Trade Related 
Measures between the European Community, the European Coal and Steel 
Community and the European Atomic Energy Community of the one part and the 
Republic of Slovenia of the other part 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

The  Community  and  its Member  States  signed  on  10 June  1996 the  Europe 
Agreement  with the  Republic  of  Slovenia.  Pending  its ratification  by the  national 
parliaments  an  Interim  Agreement  on trade  and  trade related  matters  between  the 
European  Community,  the European  Coal  and  Steel  Community  and  the  European 
Atomic  Energy  Community,  of the one  part, and  the  Republic  of  Slovenia,  of  the 
other part,  will  apply  the trade  related  provisions  of the  Agreement. 

The  Interim  Agreement,  which  was  signed  in Brussels  on  11 November  1996, will  be 
provisionally  applied  from  1 January  1997. 

The modalities  of application  of the provisions  of the Interim  Agreement  concerning 
management  of quotas  and  tariff  ceilings  and  the safeguard  and  trade  protection 
measures  are to be  laid  down  by a regulation.  The  annexed  proposal  submitted  to  the 
Council  aims  at establishing  these  modalities. 

The  Commission  requests  the Council  to adopt the proposed  Regulation. 

J. 

COUNCIL  REGULATION  (EC)  N° 
of 

on  certain  procedures  for  applying  the  Interim  Agreement  on  Trade and  Trade  Related 
Measures  between  the  European  Community,  the  European  Coal  and  Steei 
Community  and the  European  Atomic  Energy  Community  of the one  part  and  the 
Republic  of Slovenia  of the other  part 

THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty  establishing  the European  Community,  and  in  particular 
Article  113 thereof, 

Having  regard  to the proposal  from  the  Commission, 

Whereas  a Europe Agreement  establishing  an association  between the  European 
Communities  and their  Member  States, of the one part, and the  Republic  of  Slovenia, 
of the other part, was  signed  in Luxembourg  on  10 June  1996; 

Whereas  pending  the entry  into force  of the Europe  Agreement,  its provisions  on  trade 
and trade-related  matters  have been given  effect  since  1 January  1997 by  an  Interim 
Agreement  on trade and trade-related  matters between  the European  Economic 
Community,  the European  Coal  and  Steel  Community  and the European  Atomic 
Energy  Community,  of the one part, and the Republic  of  Slovenia,  of the other  part, 
hereinafter  referred  to as 'the Agreement',  signed  in Brussels  on  11 November  1996 
and  which  is applied  provisionally  from  1 January  1997(  ); 

Whereas  it is necessary  to lay  down  the procedures  for  applying  certain  provisions  of 
the  Agreement; 

Whereas, with  regard  to trade protection  measures, it is appropriate,  where  the 
provisions  of the  Agreement  render  it necessary,  to lay down  specific  provisions 
concerning  the  general  rules provided  for  in particular  in Council  Regulation  (EC)  No 
3285/94  of 22  December  1994 on common  rules for  imports  (  ) and  in  Council 
Regulation  (EC) No  384/96  of 22 December  1995 on protection  against  dumped 
imports  from  countries  not members of the  European  Community  (J); 

Whereas  account  should  be taken of the undertakings  set out  in the  Agreement  when 
examining  whether  a safeguard  measure  should  be  introduced; 

Whereas  the procedures  concerning  safeguard  clauses provided  for  in the  Treaty 
establishing  the  European  Community  are also  applicable; 

1 OJN°L 
2 OJN°L  349. 31-12-94, p 53. 
3O J N ° L 5 6.  6-03-96, p. 1. 

.3 

Whereas specific  provisions have been adopted for safeguard  measures concerning the 
textile products covered by Protocol  1  of the Agreement; 

Whereas certain provisions should be introduced  for the application  of tariff quotas 
and tariff ceilings. 

HAS ADOPTED THIS REGULATION 

TITLE 1 

Tariff Quotas and Tariff Ceilings 

Article 1 

Provisions for the application of Article  15 (2) of the Agreement concerning 
agricultural products falling  within Annex II of the Treaty and subject to a common 
market organization and concerning products falling within CN codes 0711 90 50  and 
2003  10 10, shall be adopted in accordance with the procedure provided for in Article 
23 of Regulation (EEC) No  1766/92 ( ) or in the corresponding provisions of other 
regulations establishing a common organization of the agricultural markets. 

Article 2 

Provisions for the application of tariff quotas and tariff ceilings provided for in 
1. 
the Annexes II, VI (other than those covered by Article  1) and Villa of the Agreement 
and in Annex I to Protocol  1  of the Agreement, including amendments and technical 
adaptations made necessary by amendments to the combined nomenclature and Taric 
codes, or arising from the conclusion by the Council of agreements, protocols or 
exchanges of letters between the Community and Slovenia, shall be adopted by the 
Commission, assisted by the Customs Code Committee set up by Article 247 of 
, according to the procedure set out in 
Council Regulation (EEC) N° 2913/92 
paragraph 2. 

The representative of the Commission shall submit to the Committee a draft of 

2. 
the measures to be taken. The Committee shall deliver its opinion on the draft  within a 
time limit which the chair may lay down according to the urgency of the matter. The 
opinion shall be delivered by the majority  laid down in Article  148 (2) of the Treaty in 
the case of decisions which the Council is required to adopt on a proposal from the 
Commission. The votes of the representatives of the Member States within the 
Committee shall be weighted in the manner set out in that Article. The chairman shall 
not vote. 

4  OJ N°  181.  1 -07-92. p. 21.  Regulation  as last amended by Regulation (EC) N° L923/96 (OJ Nc  L126, 
25.4.96. page 37) 
5OJ  N°  L302,  14.10.1992, p. 1. 

H 

The  Commission  shall  adopt the measures, which  apply  immediately.  However,  if 
these  measures  are not  in accordance  with  the opinion  of the Committee, they  shall  be 
communicated  by the Commission  to the Council  forthwith.  In that  event : 

the Commission  shall  defer  application  of the measures  which  it has decided  for 
three months  from  the date of such  communication, 
the  Council,  acting  by qualified  majority,  may take a different  decision  within 
the period  referred  to in the  first  indent. 

3. 
The  Committee  may  examine any  question  concerning  the application  of  tariff 
quotas  and tariff  ceilings, which  is raised  by  its chair either at the  latter's  initiative  or 
at the  request  of a Member  State. 

4. 
As soon  as the tariff  ceilings are reached,  the Commission  may  adopt  a 
regulation  re establishing,  until  the end of the calendar year, the customs  duties 
applicable  to third  countries. 

TITLE  II 

Protective  measures 

Article 3 

The  Council  may,  in accordance  with the procedures  provided  for  in Article  113 of 
the Treaty,  decide  to refer  to the Cooperation  Council  established  by  the  Agreement 
with  regard  to the measures provided  for  in Articles 23 and 45  (2) of the  Agreement. 
Where necessary, the Council  shall  adopt these measures  in accordance  with  the  same 
procedure. 

The  Commission  may,  on  its own  initiative  or at the request  of a Member  State, 
present  the necessary  proposals to this  end. 

Article  4 

1.  In the case of a practice that may justify  application  by the  Community  of  the 
measures  provided  for  in Article  33 of the Agreement,  the Commission,  after 
examining  the case, on  its own  initiative  or at the request  of a Member  State,  shall 
decide  whether  such  practice  is compatible  with  the Agreement.  Where  necessary,  it 
shall  propose  the adoption  of safeguard  measures  to the Council, which  shall  act  in 
accordance  with  the procedure  laid  down  in Article  113 of the Treaty,  except  in  the 
cases  of aid  to which  Regulation  (EC) No  3284/94 (6 )applies, when  measures  shall  be 
taken  according  to the procedures  laid down  in that Regulation.  Measures  shall  be 
taken  only  under  conditions  set out  in Article  33 (6) of the  Agreement; 

OJN°L349.  31-12-94. p. 22. 

** 
6 

2.  In the case of a practice  that may  cause measures to be applied  to the  Community 
by  Slovenia  on  the  basis of Article  33 of the Agreement,  the Commission  after 
examining  the case, shall  decide  whether  the  practice  is compatible  with  the  principles 
set out  in the  Agreement.  Where  necessary,  it shall  take appropriate  decisions  on  the 
basis of criteria which  result  from  the application  of Articles  85, 86 and  92 of  the 
Treaty. 

Article  5 

In the case  of a practice  which  is liable to warrant the application,  by the  Community, 
of the measures  provided  for  in Article 24 of the Agreement, the  introduction  of anti 
dumping  measures  shall  be decided  upon  in accordance  with the provisions  laid  down 
in Regulation  (EC) No  384/96 (  ) and the procedure  provided  for  in Article  28 (2)  and 
(3) (b) or (d) the  Agreement. 

Article  6 

1.  Where  a Member  State requests the Commission  to apply  safeguard  measures  as 
provided  for  in Articles  25 and 26 of the Agreement,  it shall  provide the  Commission, 
in support  of its request,  with  the  information  needed  to justify  it. If the  Commission 
decides  not to apply  safeguard  measures,  it shall  inform  the Council  and  the  Member 
States  accordingly  within  five  working  days of receipt of the request  from  the 
Member  State. 

Any  Member  State may  refer  this decision of the Commission  to the  Council  within 
10 working  days of its  notification. 

If the  Council,  acting by  qualified  majority,  indicates  its intention to adopt  a  different 
decision, the Commission  shall  inform  Slovenia thereof forthwith  and  shall notify  it 
of the opening  of the consultations  within the Cooperation  Council  as provided  for  in 
Article  28 (2) and  (3) of the  Agreement. 

The  Council, acting by  a qualified  majority,  may  take a different  decision  within  20 
working  days of the conclusion  of the consultations  with  Slovenia  within  the 
Cooperation  Council. 

2.  The  Commission  shall  be assisted  by the  committee  established  by  Regulation 
(EC) No  3491/93  (8) (hereinafter  referred  to as 'the Committee*). 

The  Committee  shall  meet when  convened  by  its chairman.  The  latter  shall 
communicate  any  appropriate  information  to the Member  States at the  earliest 
opportunity. 

7 OJ N° L 56, 6-03-96, p. 1. 
8  OJN°L  319, 21-12-93, p. 1. 

G 

3.  Where  the  Commission,  at the request  of a Member  State or  on  its own  initiative, 
decides  that  the  safeguard  measures  provided  for  in Articles 25  and  26 of the 
Agreement  should  be  applied: 

it shall  inform  the  Member  States  forthwith  if acting  on  its own  initiative  or,  if it  is 
responding  to a Member  State's request,  within  five  working  days  of the date  of 
receipt  of that  request, 

it shall  consult  the  Committee, 

at the  same time  it shall  inform  Slovenia  and notify  the Cooperation  Council  of 
the opening  of consultations  as referred  to in Article 28  (2) and  (3) of  the 
Agreement, 

at the  same time  it shall  provide the Cooperation  Council  with  all the  information 
necessary  for  these  consultations. 

In any  event, the consultations  within the Cooperation  Council  shall  be 
4. 
deemed  to be completed  30 days after  the notification  referred  to in paragraph  1 and 
paragraph  3. 

At the end  of the  consultations  or on expiry  of the period  of 30 days, and  if no  other 
arrangement  proves  possible, the Commission  after  consulting  the Committee,  may 
take  appropriate  measures  to implement  Articles  25 and  26 of the  Agreement. 

5. 
The decision  referred  to  in paragraph  4 shall  be notified  forthwith  to the 
Council, the  Member  States  and  Slovenia,  it shall  also be notified  to the  Cooperation 
Council. 

The  decision  shall  be applicable  immediately. 

Any  Member  State  may  refer  the Commission  decision  referred  to in 
6. 
paragraph  4 to the Council  within  10 working  days of receiving  notification  of the 
decision. 

If the  Commission  has not taken  a decision  within the meaning  of the  second 
7. 
subparagraph  of paragraph  4 within  10 working  days of the end  of the  consultations 
with the Cooperation  Council  or, as the case may  be, the end  of the periods  of  30 
days, any  Member  State which  has referred  the matter to the  Commission  in 
accordance  with paragraph  3 may  refer  it to the  Council. 

In the cases referred  to in paragraph  6 and  7 the Council, acting by  a  qualified 

8. 
majority,  may  adopt  a different  decision  within  two  months. 

1 

Article  7 

Where exceptional circumstances arise within the meaning of Article 28 (3) 

1. 
(d) of the Agreement, the Commission may take immediate safeguard  measures in the 
cases referred  to in Articles 25 and 26 of the Agreement. 

If the Commission receives a request from  a Member State, it shall take a 

2. 
decision thereon within five working days of receipt of the request. 

The Commission shall notify  the Council and the Member States of its decision. 

Any Member State may refer the Commission's decision to the Council in 

3. 
accordance with the procedure provided for in Article  6 (6). 

The procedure set out in Article 6 (7) and (8) shall be applicable. 

If the Commission has not taken a decision within the time limit mentioned in 
paragraph 2, any Member State which has referred the matter to the Commission  may 
refer it to the Council in accordance with the procedures laid down in the first and 
second subparagraphs of this paragraph. 

Article  8 

The procedures laid down in Articles 6 and  7 shall not apply to products covered 
by Protocol  1  of the Agreement. 

Article  9 

By way of derogation from  Articles 6 and 7, if the circumstances demand that 
measures are taken concerning agricultural products on the basis of Articles  16 and 25 
of the Agreement or on the basis of provisions in the Annexes covering these 
products, such measures shall be taken according to procedures provided for by the 
rules establishing a common organization of the agricultural markets, or in  specific 
provisions adopted pursuant to Article 235 of the Treaty and applicable to products 
resulting from  the processing of agricultural products, provided that the conditions 
established pursuant to Article  16 or Article 28 (2) and (3) of the Agreement are met. 

Article  10 

Notification  to the Cooperation Council as required by the Agreement shall be the 
responsibility  of the Commission, acting on behalf of the Community. 

? 

Article  11 

This regulation does not preclude the application of safeguard  measures provided  for 
in the Treaty establishing the European Community, in particular in Articles  109h and 
109i, according to the procedures laid down therein. 

Article  12 

This regulation shall enter into force on the day following that of its publication  in the 
Official  Journal of the European Communities. 

It shall apply from  1  January  1997 

This regulation shall be binding in its entirety and directly applicable in all Member 
States. 

Done at Brussels, 

For the Council 

The President 

a 

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COM(96) 712 final 

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