Proposal for a Council Decision on the position to be taken by the Community within the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, signed on 12 June 1995, with regard to the adoption of the modifications to Protocol 3 of the Europe Agreement included in Joint Committee Decision No 1/97 of 20 March 1997 under the Agreement on Free Trade and Trade Related Matters between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, signed on 18 July 1994
Date: 1998-02-16
Institutions: European Commission
Subjects: Latvia, customs duties, liberalisation of trade, originating product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.02.1998 
COM(1998) 77  final 

98/0061 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the Community within the Association Council 
established by the Europe Agreement between the European Communities and 
their Member States, of the one part, and the Republic of Latvia, of the other 
part, signed on 12 June 1995, with regard to the adoption of the modifications to 
Protocol 3 of the Europe Agreement included in Joint Committee Decision N° 
1/97 of 20 March 1997  under the Agreement on Free Trade and Trade Related 
Matters between the European Communities and their Member States, of the 
one part, and the Republic of Latvia, of the other part, signed on 18 July 1994 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

1. The  Europe  Agreement  establishing  an  association  between  the  European 
Communities and their Member States, of the one part, and the Republic of Latvia, 
of the other part, has been signed on  12 June  1995. Following completion  of all 
ratification  procedures, the Europe Agreement with Latvia will enter into force on 
1 February 1998. 

The  Association  Council,  established  by  Article  110 of  the  Europe  Agreement, 
shall  adopt  at  its  first  meeting,  as  provided  for  in  Article  131  of  the  Europe 
Agreement, all the modifications to this Agreement - in particular to the protocols 
and annexes- necessary to align it with changes to the Agreement on Free Trade 
and Trade Related Matters decided by the Joint Committee, between the signature 
and the entry into force of the Europe Agreement. 

It  is proposed  that  Decision N°  1/97  of the  Joint  Committee  of  20 March  1997 
(entered  into  force  on  1 April  1997),  amending  Protocol  3  on  rules  of  origin 
(mainly  the  definition  of  the  concept  of  "originating  products" and  methods  of 
administrative cooperation) of the Agreement on Free Trade between the European 
Communities  and  Latvia  be  adopted  at  the  first  meeting  of  the  Association 
Council, so as to align the Europe Agreement with the changes made to the Free 
Trade  Agreement  between  the  signature  and  entry  into  force  of  the  Europe 
Agreement. 

2.  It  is  therefore  proposed  that  the  Council  approves  the  attached  proposal  for  a 

Council decision. 

T_ 

Proposal for a Council Decision 

on the position to be taken by the Community within the Association  Council 
established by the Europe Agreement between the European  Communities  and 
their Member States, of the one part, and  the Republic of Latvia, of the  other 
part, signed on 12 June 1995, with regard  to the adoption  of the modifications  to 
Protocol 3 of the Europe Agreement included  in Joint  Committee Decision N° 
1/97  of 20 March  1997 under the Agreement on Free Trade and Trade  Related 
Matters between the European  Communities and their Member  States, of the 
one part, and the Republic of Latvia, of the other part, signed  on  18 July  1994 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to the Treaty  establishing  the European  Community,  and  in  particular 
Article  113 in connection with Article 228 (2), first sentence, 

Having regard to the Commission proposal, 

Having regard to the Council and Commission Decision of  22 December  1997 on the 
conclusion  of  the  Europe  Agreement  establishing  an  association  between  the 
European Communities and their Member States, of the one part, and the Republic of 
Latvia, of the other part, and in  particular Article 2(1) thereof, 

Whereas Article  110 of the Europe Agreement establishes an Association Council, 

Whereas  Article  131  of  the  said  Agreement  provides  that  the  Association  Council 
shall adopt at its first meeting all the modifications  to this Agreement- in particular to 
the  protocols  and  annexes-  necessary  to  align  it  with  changes  to  the  Agreement  on 
Free  Trade  and  Trade  Related  Matters  decided  by  the  Joint  Committee  between  the 
signature and entry into force of the said Agreement, 

HAS DECIDED AS FOLLOWS: 

The  position  to  be  adopted  by  the  Community  within  the  Association  Council 
established  by  Article  110  of  the  Europe  Agreement,  signed  on  12  June  1995, 
establishing  an  association  between  the  European  Communities  and  their  Member 
States, of the one part, and the Republic of Latvia, of the other part, with regard to the 
adoption of the modifications  to Protocol 3 of the Europe Agreement included in Joint 
Committee  Decision N°  1/97  of 20 March  1997 under  the Agreement  on Free  Trade 
and  Trade  Related  Matters  between  the  European  Communities  and  Latvia,  shall  be 
based on the Association Council draft  decision, annexed to the present Decision. 

Done at Brussels on, 

For the Council, 
The President 

DRAFT DECISION No  2/98 OF THE ASSOCIATION  COUNCIL 

between the European Communities and their Member States, of the one part, 
and the Republic of  Latvia, of the other part 

of 

1998 

adopting modifications  to Protocol 3 of the Europe Agreement, signed on  12 June  1995, 
included in Joint Committee Decision N°  1/97 of 20 March  1997  under the Agreement on 
Free Trade and Trade Related Matters between the European Communities and their Member 
States, of the one part, and the Republic of Latvia, of the other part, 

THE ASSOCIATION  COUNCIL, 

Having  regard  to the  Europe  Agreement  establishing  an  Association  between  the  European 
Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of  Latvia,  of  the 
other part, signed on  12 June  1995, and in particular Articles  110 and  131 thereof, 

Whereas  pursuant  to  Article  131  of  the  Europe  Agreement,  the  Association  Council  shall 
adopt  at  its  first  meeting  all  the  modifications  to  this  Agreement-  in  particular  to  the 
protocols  and  annexes-  necessary  to  align  it  with  changes  to  the  Agreement  on  Free  Trade 
and  Trade  Related  Matters  decided  by the Joint  Committee  between  the  signature  and  entry 
into force of the said  Agreement, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Association  Council  decides  to  modify  Protocol  3  on  Rules  of  Origin  annexed  to  the 
Europe  Agreement,  signed  on  12  June  1995,  establishing  an  association  between  the 
European Communities and their Member States, of the one part, and the Republic of Latvia, 
of  the  other  part,  in  accordance  with  the  Joint  Committee  Decision  N°  1/97  of  the  Joint 
Committee of 20 March  1997 (together with relevant joint declarations) under the Free Trade 
Agreement  and  Trade  Related  Matters  between  the  European  Communities  and  their 
Member States, of the one part, and the Republic of Latvia, of the other part. 

The  Decision  shall  be  published  in the  Official  Journal  of  the  European  Communities  and 
Latvijas Vestnesis (Latvian Official  Journal) 

Article 2 

Article 3 

The Decision  shall enter into force on the day of its adoption. 

Done at Brussels on, 

For the Association Council 

ThePresident(s) 

O J N ° L l ll  of 28 April  1997 

V 

ANNEX 

DECISION No  1/97  OF THE JOINT COMMITTEE, BETWEEN THE EUROPEAN 
COMMUNITIES, OF THE ONE PART, AND THE REPUBLIC OF LATVIA, OF 
THE OTHER PART 

of 20 March 1997 

amending Protocol 3 to the Agreement on free trade and trade-related matters between 
the European Community, the European Atomic Energy Community and the 
European Coal and Steel Community, of the one part, and the Republic of Latvia, of 
the other part 

(97/268/ECSC, EC, Euratom) 

THE JOINT COMMITTEE, 

Having  regard  to the  Agreement  on free trade  and trade-related  matters  between  the 
European  Community,  the  European  Atomic  Energy  Community  and  the  European 
Coal  and  Steel  Community,  of the one part,  and the  Republic  of Latvia,  of the other 
part,  signed  in  Brussels  on  18 July  1994, and  in particular  Article  36  of  Protocol  3 
thereof, 

Whereas  an  extended  system  of  cumulation  is  desirable  making  possible  the  use  of 
materials  originating  in  the  European  Community,  Poland,  Hungary,  the  Czech 
Republic,  the  Slovak  Republic,  Bulgaria,  Romania,  Lithuania,  Slovenia,  Estonia, 
Latvia,  the  European  Economic  Area,  Iceland,  Norway  or  Switzerland,  in  order  to 
facilitate 
the  Agreement;  whereas 
modifications to the definition of the concept of originating products are required; 

the  effectiveness  of 

trade  and 

improve 

Whereas, in order for the Agreement to apply to goods originating in Andorra or San 
Marino, it is necessary to provide for such a possibility  by way of a Joint Declaration 
on Protocol 3; 

Whereas for the purposes of implementing the extended  system of cumulation  and in 
order  to  avoid  circumvention  of  customs  duties,  it  is  necessary  to  introduce  new 
provisions  into  Protocol  3 concerning  the prohibition  of  drawback  of,  or  exemption 
from, customs duties; 

Whereas in order to further  facilitate trade and to simplify  administrative burdens, it is 
necessary  to  amend  the  processing  requirements  laid  down  in  the  Protocol  for  non-
originating  materials to obtain  originating  status  and the provisions  concerning  proof 
of origin; 

<r 

Whereas,  certain  processing  requirements  for  non-originating  materials  to  obtain 
originating  status need to be amended to take account of the evolution  of processing 
techniques;  whereas,  in  the  light  of  experience,  the  presentation  of  the  list  of 
processing  rules  could  be  improved  by  extending  it  to  cover  all  headings  of  the 
Harmonized System (HS);  whereas, technical modifications  of these processing rules 
are  required  to  take  account  of  modifications  to  the  HS  which  take  effect  from  1 
January 1996; 

Whereas,  it  is  therefore  appropriate  for the  proper functioning  of the  Agreement  to 
incorporate in a single text all the provisions in question with a view to facilitating the 
work of users and customs administrations, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Protocol  3  shall  be  replaced  by the  text  attached  hereto,  together  with  the  relevant 
Joint Declarations. 

This Decision shall enter into force on 1  April 1997. 

Article 2 

Done at Brussels, 20 March 1997. 

For the Joint Committee 
The Chairmen 

For the Community 

S. BROUWER 

For Latvia 

A. KIRSTEINS 

Q 

ISSN 0254-1475 

COM(98) 77 final 

DOCUMENTS 

EN 

11  02  01  06 

Catalogue number  :  CB-CO-98-079-EN-C 

ISBN 92-78-31020-4 

Office  for Official  Publications of the European Communities 

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