Proposal for a Council Regulation (EC) concerning certain procedures for applying the Europe Agreement on establishing an association between the European Community, the European Coal and Steel Community and the European Atomic Energy Community, of the one part, and the Republic of Lithuania, of the other part
Date: 1998-01-13
Institutions: European Commission
Subjects: Lithuania, association agreement (EU), import, protective clause, textile product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  13.01.1998 
COM(97)  740 final 

98/0001  (ACC) 

Proposal  for a 

COUNCIL REGULATION (EC) 

concerning certain procedures for applying the Europe Agreement on 
establishing an association between the European Community, the European 
Coal and Steel Community and the European Atomic Energy Community, of the 
one part, and the Republic of Lithuania, of the other part 

(presented  by the Commission) 

EXPLANATORY MEMORANDUM 

The Europe Agreements with Lithuania has been signed on 12 June 1995. Ratification 
procedures have now been almost completed by Member States. 

The modalities of application of the provisions of the Europe 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. 

Similar  Council  Regulations  have  been  adopted  for  the  application  of  this  type  of 
measures  when  the  Europe  Agreements  entered  into  force  with  other  associated 
countries of Central Europe, eg Poland, Hungary, Bulgaria and Romania 

The Commission requests the Council to adopt the proposed Regulation. 

z 

COUNCIL REGULATION (EC) No 
of 
on certain procedures for applying the Europe Agreement on establishing an 
association  between the European Community, the European Coal and Steel 
Community  and the European Atomic Energy Community, of the one part, and 
the Republic of Lithuaniaa, of the other part 

THE COUNCIL OF THE EUROPEAN UNION, 

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 Lithuania, 
of  the other part, was signed in Brussels on  12 June  1995; 

Whereas,  pending  the  entry  into  force  of the  Europe  Agreement,  hereinafter  referred 
to  as  "the  Agreement",  its  provisions  on  trade  and  trade-related  matters  have  been 
applied  since  1 January  1995 by an Agreement on free-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,  signed  in  Brussels  on  19 
December  1994  , and the Republic of Lithuania, of the other part; 

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  ; 

Whereas, account should be taken of the undertakings set out in the Agreement  before 
deciding whether a safeguard  measure should be introduced; 

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

1  OJ No L 375, 31.121994, p.l 
2  OJ No L 349, 31.12.1994, p.53 
3  OJNoL56,  6.3.1996,  p.l 

3 

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

Whereas certain provision should be introduced for the application of tariff quotas and 
tariff ceilings, 

HAS ADOPTED THIS REGULATION: 

TITLE I 

Tariff quotas and tariff ceilings 

Article 1 

The  rules  for  the  application  of Articles  19 and  20 of the  Agreement  are  adopted  by 
the  Commission  according to the procedure  provided  for  in Article  23 of  Regulation 
(EEC)  n°  1766/92  , or,  according  to the  case,  in the  relevant  provisions  of the  other 
regulations  on on the common  organisation  of the markets, or of the regulation  (EC) 
n°  3448/93  or  by  the  Commission,  assisted  by  the  Customs  Code  Committee, 
according to the procedure provided for in Article 2 (2) of this regulation. 

Article 2 

1.  Provisions  for  the  application  of  tariff  quotas  and  tariff  ceilings  provided  for  in 
Annexes  VI  and  XIV  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  Lithuania,  shall  be  adopted  by  the 
Commission,  assisted  by  the  Customs  Code  Committee  set  up  by  Article  247  of 
Regulation  (EEC) No  2913/92  , according  to the procedure  set out in paragraph  2 of 
this Article. 

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

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: 

4  OJ  No  L181,  1.7.1992, p. 21. Regulation  as  last  amended  by  Regulation  (EC) N°923/96  (OJ N°  L 
126, 24.5.1996, p 37) 
5  OJNoL302,  19.10.1992, p.l 

^P 

-  the  Commission  may  defer  application  of  the  measures  which  it  has  decided  for  a 
period of not more than 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 procedure provided for  in Article  113 of the 
Treaty, decide to refer  to the Association  Council  established  by the Agreement  with 
regard  to  the  measures  provided  for  in  Articles  28  and  124  (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  64  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  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 64 (6) of the Agreement. 

2. In the case  of a practice  that may  cause measures to be applied  to the  Community 
by  Lithuania  on  the  basis  of  Article  64  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. 

6  OJNo.  349, 31.12.1994, p.22 

f 

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 29 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 33 (2) and (3) 
(b) or (d) of the Agreement. 

Article 6 

1. Where  a  Member  State  requests  the  Commission  to  apply  safeguard  measures  as 
provided  for in Articles 30 and 31 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 
ten working days of its  notification. 

If the Council, acting by qualified  majority,  indicates its intention to adopt a  different 
decision, the  Commission  shall  inform  Lithuania thereof  forthwith  and  shall  notify  it 
of the  opening  of the consultations within the Association  Council  as provided  for  in 
Article 33 (2) and (3) of the Agreement. 

The  Council,  acting  by  a  qualified  majority,  may  take  a  different  decision  within 
twenty  working  days of the conclusion of the consultations with Lithuania within the 
Association Council. 

2. The Commission shall be assisted by the committee established by Regulation (EC) 
3491/937  (hereina^r  referred  to as 'the Committee'), composed  of representatives  of 
the Member States and chaired by a representative of the Commission. 

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

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  30  and  31  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  Lithuania and notify  the Association  Council  of the 
opening of consultations as referred  to in Article 33 (2) and (3) of the Agreement, 

7  OJ No L 319, 21.12.1993, p.l 

S 

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

4.  In  any  event,  the consultations  within the Association  Council  shall  be  deemed  to 
be completed 30 days after the notification  referred to in paragraphs  1  and 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 30 and 31 of the Agreement. 

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

The decision shall be applicable  immediately. 

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

7.  If  the  Commission  has  not  taken  a  decision  within  the  meaning  of  the  second 
subparagraph  of paragraph  4 within  10 working  days  of the  end  of the  consultations 
with the Association 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. 

8.  In  the  cases  referred  to  in  paragraphs  6  and  7 the  Council,  acting  by  a  qualified 
majority,  may take a different  decision within two months. 

Article 7 

1. Where  exceptional  circumstances  arise within the meaning  of Article  33 (3) (d) of 
the Agreement, the Commission may take immediate  safeguard  measures in the cases 
referred  to in Articles 30 and 31 of the Agreement. 

If  the  Commission  receives  a  request  from  a  Member  State,  it  shall  take  a  decision 
thereon within five working days of receipt of the request. 

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

3.  Any  Member  State  may  refer  the  Commission's  decision  to  the  Council  in 
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  the 
second subparagraph  of paragraph  1, 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  textile  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 21 and 30 
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  organisation  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 21 or Article 33 (2) and (3) of the Agreement are met. 

Article 10 

Notification  to  the  Association  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  the date of enrty into force of the Agreement. 

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

Done at Brussels, 

For the Council 
The President 

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