Draft Commission Decision on the conclusion of agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products
Date: 1999-11-04
Institutions: European Commission
Subjects: ECSC, Kazakhstan, iron and steel product, trade agreement












EUR-Lex - 51999PC1730(01)S - EN






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51999PC1730(01)S

Draft Commission Decision on the conclusion of agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products  /* SEC/99/1730 final */  









Draft COMMISSION DECISION on the conclusion of agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel productsTHE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 95 first paragraph thereof,Having consulted the Consultative Committee and with the unanimous assent of the Council,(1) Whereas, following the Council Decision of 7 October 1996, the Commission opened negotiations with the Republic of Kazakhstan, culminating in an Agreement concerning trade in certain steel products covered by the European Coal and Steel Community;(2) Whereas the Agreement establishes quantitative limits for the entry into free circulation in the Community of certain steel products for the years 2000 to 2001, within a framework of progressive liberalisation and the development of competitive conditions in the Republic of Kazakhstan which justify the complete removal of quantitative restrictions,HAS DECIDED AS FOLLOWS:Article 11. The Agreement with the Republic of Kazakhstan concerning trade in certain steel products is hereby approved on behalf of the European Coal and Steel Community.2. The text of the Agreement [1] is annexed to this Decision.[1]  See page .... of this Official Journal.Article 2The President of the Commission is hereby authorized to designate the persons empowered to sign the Agreement referred to in Article 1 in order to bind the European Coal and Steel Community.Done at Brussels,  For the Commission Member of the CommissionAGREEMENTbetween the European Coal and Steel Community and the Government of the Republic of Kazakhstan on trade in certain steel productsTHE EUROPEAN COAL AND STEEL COMMUNITY,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN,of the other part,Whereas the European Coal and Steel Community (hereinafter referred to as 'the Community') and the Government of the Republic of Kazakhstan (hereinafter referred to as 'Kazakhstan') are desirous to promote the orderly and equitable development of trade in steel between the European Coal and Steel Community and Kazakhstan;Whereas the Partnership and Cooperation Agreement between the Parties signed on 23 January 1995 has entered into force on 1 July 1999,Whereas the Parties consider that an arrangement should be concluded to provide stability in respect of trade in such steel products;Whereas such an Agreement is foreseen by Article 17 (1) of the Partnership and Cooperation Agreement; whereas that Article provides that trade in ECSC products is governed by Title III of the Partnership and Cooperation Agreement, save for Article 11 thereof;Whereas Article 43 (4) of the Partnership and Cooperation Agreement provides that the Parties will examine ways to apply their respective competition laws on a concerted basis in such cases where trade between them is affected;Whereas for 1996, trade in certain products covered by the Treaty establishing the European Coal and Steel Community was the subject of an agreement between the Parties, which it is appropriate to replace with a further agreement which takes account of developments in the relationship between the Parties;Whereas this Agreement is designed to provide a framework permitting the removal of quantitative restrictions on trade in certain products covered by the Treaty establishing the European Coal and Steel Community, provided that certain conditions are met and in particular when proper competitive conditions have been established in respect of the steel products covered by the Agreement;Whereas this Agreement should be complemented by the cooperation between the Parties in respect of their steel industries, including appropriate exchanges of information, within the ECSC Contact Group as foreseen in Article 17 (2) of the Partnership and Cooperation Agreement, HAVE DECIDED to conclude this Agreement and to this end have designated as their  Plenipotentiaries:THE COMMISSION OF THE EUROPEAN COMMUNITIES, ANDTHE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN,WHO HAVE AGREED AS FOLLOWS: Article 11. Trade in the steel products covered by the ECSC Treaty set out in Annex I originating within the Parties (hereinafter called 'the products covered by this Agreement') shall be subject to the conditions set out in this Agreement.2. Trade in the steel products covered by the ECSC Treaty but not set out in Annex I shall not be subject to quantitative limits without prejudice to the application of the relevant provisions of the agreements on trade and trade-related matters in force between the Parties, in particular those relating to anti-dumping procedures and safeguard measures.Article 21. Kazakhstan agrees to establish and maintain for each calendar year quantitative limits on its exports to the Community of the steel products in accordance with Annex II. Such exports shall be subject to a double-checking system as specified in Protocol A. 2. The Parties reiterate their commitment to achieve complete liberalisation of trade in respect of the steel products covered by this Agreement provided that the competitive conditions envisaged in Protocol B have been established.3. At the request of either Party, the Parties shall consult to determine whether the competitive conditions in respect of the products covered by the Agreement are such that quantitative restrictions are no longer necessary. The consultations foreseen by paragraph 3 may be requested at any time during the application of this Agreement.4. Without prejudice to the provisions of paragraph 3, the Parties will effect a review of progress in the development of competitive conditions beginning not later than 18 months following the entry into force of this Agreement. The Parties will in any event meet to review the operation of this Agreement and to determine whether competitive conditions in respect of the products covered by the Agreement are such that quantitative restrictions are no longer necessary, not later than six months prior to the expiry of this Agreement.5. For the purposes of the consultations and evaluations foreseen in paragraphs 3 and 4, the Parties shall take account in particular of the implementation by Kazakhstan of the provisions of Protocol B concerning competition, public aid and environmental protection in respect of the products covered by the Agreement; the future development of the relationship between the Parties as foreseen by the Partnership and Cooperation Agreement; and developments in the economies of the Parties.6. Without prejudice to paragraph 3 either Party may, at any time, request consultations concerning :- the levels of the quantitative limits set out in Annex II, where the conditions in respect of the products covered by the Agreement have substantially deteriorated or improved;- the possibility of transferring unused amounts from under-utilised product groups to other groups.7. The operation of this Agreement shall, in any event, be reviewed prior to Kazakhstan becoming a member of the World Trade Organisation.Article 31. Imports into the customs territory of the Community for free circulation of steel  products covered by this Agreement shall be subject to the production of an export licence issued by the authorities of Kazakhstan and to a certificate of origin in accordance with the provisions of Protocol A.2. Imports into the customs territory of the Community of steel products covered by this Agreement shall not be subject to the quantitative limits set out in Annex II provided they are declared to be for re-export outside the Community in the same state or after processing, within the administrative system of control which exists within the Community.3. Carryover to the corresponding quantitative limits for the following calendar year of the amounts of quantitative limits not used during any calendar year is authorised up to 7 % of the relevant quantitative limit for the year in which it was not used. Kazakhstan shall notify the Community no later than 1 March of the following year if it intends to make use of this provision. 4. The quantitative limit for a given product group can be adjusted once in the course of a calendar year, subject to the consent of both Parties. Any adjustments to the quantitative limits resulting from transfers shall only affect the calendar year in progress. At the start of the following calendar year, the quantitative limits shall be those shown at Annex II, without prejudice to the provisions of paragraph 3 above. Kazakhstan shall notify the Community no later than 30 June if it intends to make use of this provision.Article 41. With a view to rendering the double-checking system as effective as possible and to minimise the possibilities for abuse and circumvention:- the Kazakh authorities shall inform the Community authorities by the 28th of each month of the export licences issued during the preceding month;- the Community authorities shall inform the Kazakh authorities by the 28th of each month of the  import authorisations issued during the preceding month.In the event of any significant discrepancy taking account of the time factors involved in respect of such information, either Party may request consultations which shall be opened immediately.2. Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of this Agreement, both Parties agree to take all necessary steps to prevent, to investigate and to take any necessary legal and/or administration action against circumvention by transhipment, re-routing, false declaration concerning the country or place of origin, falsification of documents, false declaration concerning quantities description or classification of merchandise and by whatever other means. Accordingly, the Parties agree to establish the necessary legal provisions and administrative procedures permitting effective action to be taken against such circumvention, which shall include the adoption of legally binding corrective measures against  exporters and/or importers involved. 3. Should either Party believe on the basis of information available that this Agreement is being  circumvented, it may request consultations with the other Party which shall be held immediately.4. Pending the results of the consultations referred to in paragraph 3, and if requested by the Community and on provision of sufficient evidence, Kazakhstan shall ensure that any adjustments of the quantitative limits which may result from such consultations, are carried out for the calendar year in which the request for consultations under paragraph 3 was made, or for the following year, if the limit for that calendar year is exhausted.5. Should the Parties be unable in the course of the consultations referred to in paragraph 3 to reach a mutually satisfactory solution, the Community shall have the right, where there is sufficient evidence that products covered by this Agreement originating in Kazakhstan have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits established under the Agreement. 6. Should the Parties be unable in the course of the consultations referred to in paragraph 3 to reach a mutually satisfactory solution, the Community shall have the right, where sufficient evidence shows false declaration concerning quantities description or classification has occurred, to refuse to import the products in question.7. The Parties agree to cooperate fully to prevent and to address effectively all problems arising from circumvention of this Agreement.Article 51. The quantitative limits established under this Agreement on imports of ECSC steel products into the Community shall not be broken down by the Community into regional shares.2. The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows into the Community. Should a sudden and prejudicial change in traditional trade flows arise (including regional concentration or the loss of traditional supplies), the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately.3. Kazakhstan shall endeavour to ensure that exports into the Community of products subject to quantitative limits are spaced out as evenly as possible over the year. Should a sudden and prejudicial surge of imports arise, the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately. 4. In addition to the obligation contained in paragraph 3, and without prejudice to the consultations foreseen by Article 2 paragraph 5, where licences issued by the Kazakh authorities have reached 90 % of the quantitative limits for the calendar year in question, either Party may request consultations concerning the quantitative limits for that year. Such consultations shall be held immediately. Pending the outcome of such consultations the Kazakh authorities may continue to issue export licences for the products covered by this Agreement provided they do not exceed the quantities set out in Annex II.Article 61. Where any product covered by this Agreement is being imported into the Community from Kazakhstan under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Kazakhstan with all relevant information with a view to seeking a solution acceptable to both Parties. The Parties shall commence consultations immediately.2. Should the consultations referred to in paragraph 1 above fail to lead to agreement within 30 days of the Community's request for consultations, the Community may utilise the right to take action concerning safeguard measures pursuant to the provisions of the relevant agreements on trade and trade-related matters in force between the Parties.3. The utilisation of the right to consultations under paragraph 1 shall not preclude action concerning anti-dumping procedures pursuant to the provisions of the relevant agreements on trade and trade-related matters in force between the Parties, notwithstanding the quantitative limits set out in Annex II.Article 71. The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature of the Community (hereinafter called the 'combined nomenclature', or in abbreviated form 'CN') and any amendments thereof. Any amendment to the combined nomenclature (CN) made in accordance with the procedures in force in the Community concerning the products covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing the quantitative limits of this  Agreement.2. The origin of the products covered by this Agreement shall be determined in accordance with the rules in force in the Community. Any amendment to these rules of origin shall be communicated to Kazakhstan and shall not have the effect of reducing the quantitative limits of this Agreement. The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 81. Without prejudice to the periodic exchange of information on export licences and  import authorisations pursuant to Article 4 (1), the Parties agree to exchange full statistical information relating to the products subject to the quantitative limits set out in Annex II at appropriate intervals taking account of the shortest periods in which the information in question is prepared which shall cover export licences and import authorisations issued pursuant to Article 3, import and export statistics in respect of the products in question.2. Either Party may request consultations in the event of any significant discrepancy between the information exchanged. Article 91. Without prejudice to provisions concerning consultations foreseen in respect of  specific circumstances in preceding Articles, consultations shall be held on any problems arising from the application of this Agreement at the request of either of the Parties. Any consultations shall take place in a spirit of cooperation and with a desire to reconcile the differences between the Parties.2. Where this Agreement provides that consultations shall be held immediately, the Contracting Parties undertake to use all reasonable means to ensure that this is achieved.3. All other consultations shall be governed by the following provisions:- any request for consultations shall be notified in writing to the other Party,- where appropriate, the request shall be followed within a reasonable period by a report setting out the reasons for the consultations,- consultations shall begin within one month from the date of the request,- consultations shall arrive at a mutually acceptable result within one month of their commencement, unless the period is extended by agreement between the Parties.4. Specific additional consultations may also be held by agreement between the Contracting Parties.Article 101. This Agreement shall enter into force on the day of its signature. It shall be applicable until 31 December 2001 subject to any modifications agreed by the Parties following consultations pursuant to Article 2 paragraph 3 and unless it is denounced in accordance with the provisions of paragraph 3 of this Article or terminated following the reviews foreseen in Article 2, paragraphs 3, 4 and 7.2. Either Party may at any time propose modifications to this Agreement which at the request of either Party shall be the subject of consultations.3. Either Party may denounce this Agreement, provided that at least six months' notice is given. In that event, the Agreement shall come to an end on the expiry of the period of notice and the quantitative limits in the Community established in Annex 2 of this Agreement shall be reduced on a pro rata basis up to the date on which denunciation takes effect unless the Parties decide otherwise by common agreement.4. The Community reserves the right at all times to take all appropriate measures including, where the Parties are unable to reach a mutually satisfactory solution in the consultations foreseen in paragraph 1 or where this Agreement is denounced by either Party, the reintroduction of a system of autonomous quotas in respect of exports from Kazakhstan of the products set out in Annex I to this Agreement.5. The Annexes and Protocols attached to this Agreement shall form an integral part thereof.6. In respect of the products covered by this Agreement, the provisions of this Agreement shall prevail over provisions relating to the same subject matter contained in other bilateral agreements between the Parties.Article 11This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish, Kazakh and Russian languages, each of these texts being equally authentic.Done at ............., on ...................For the Commission of the European CommunitiesFor the Government of  the Republic of KazakhstanANNEX IKAZAKHSTAN&gt;TABLE POSITION&gt;ANNEX IIQUANTITATIVE LIMITS(Tonnes)&gt;TABLE POSITION&gt;Note: The quantitative limits for 2000-2001 will be reviewed in relation to the implementation of Protocol B, as explained in Article 2 of the Agreement. Agreed minuteIn the context of the Agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products signed in .............., on ...................,  the Parties agree that:- in pursuance of the exchange of information foreseen in Article 4 (1) concerning export licences and import authorisations the parties will supply that information by reference to the Member States in addition to the Community as a whole,- pending the satisfactory outcome of the consultations foreseen by Article 5 (2), Kazakhstan will cooperate, if so requested by the Community, by not issuing export licences that would further aggravate the problems resulting from sudden and prejudicial changes in traditional trade flows; and- Kazakhstan will take due account of the sensitive nature of small regional markets within the Community both as regards their traditional needs for supplies and the avoidance of regional concentrations.For the Commission of the European CommunitiesFor the Government of the Republic of Kazakhstan Declaration N° 1In the context of the Agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products signed in ..................... on ....................., and more particularly Article 2 thereof, in conjunction with Article 7 of Protocol B, the Parties agree that technical assistance to support the implementation of Protocol B shall be provided through the Tacis Programme. The first phase of this technical assistance, starting when the agreement enters into force, shall assess the degree to which Kazakhstan already applies Protocol B and shall recommend the further steps necessary to complete the process. The outputs from this phase shall be a report and an action plan, which shall be reviewed and agreed by the Parties. If the report confirms that competitive conditions in the steel sector in Kazakhstan already comply substantially with Protocol B and if Kazakhstan commits itself to implement the remaining steps in accordance with the agreed action plan, the Parties agree to establish without delay substantially increased quantitative limits.The second phase of technical assistance shall provide support to the Parties for the implementation of the agreed action plan (adaptation of Kazakh legislation, advice on the development of appropriate institutions and training). Both Parties confirm their intention to liberalise the trade in ECSC steel products as soon as the commitments set out in Protocol B are implemented.Declaration N° 2In the context of the Agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products signed in ..................... on ....................., the Parties agree that they shall not apply with respect to the other Party quantitative restrictions, customs duties, charges or any measures having equivalent effect on the export of ferrous waste and scrap under the Combined Nomenclature heading 7204.Declaration N° 3In the context of the Agreement between the European Coal and Steel Community and Kazakhstan on trade in certain steel products signed in ............... on ................., and more particularly Article 2 thereof, the Contracting Parties agree that they will use their best endeavours to bring the agreement into force on 1 January 2000.If it does not prove possible to bring the Agreement into force on 1 January 2000, autonomous Community quotas will be renewed until the Agreement does enter into force and the quantities available to Kazakhstan from the date of entry into force until 31 December 2000 will be those set out in Annex II of the Agreement minus the corresponding amounts already counted against the autonomous Community quotas. PROTOCOL ATITLE ICLASSIFICATIONArticle 11. The competent authorities of the Community undertake to inform Kazakhstan of any changes in the combined nomenclature (CN) in respect of products covered by the Agreement before the date of their entry into force in the Community.2. The competent authorities of the Community undertake to inform the competent authorities of Kazakhstan of any decisions relating to the classification of products covered by the Agreement within one month of their adoption at the latest.Such a description shall include:(a) a description of the products concerned,(b) the relevant CN codes,(c) the reasons which have led to the decision.3. Where a decision on classification results in a change of classification practice of any product covered by the Agreement, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put into effect. Products shipped before the date of entry into effect of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 day's of that date.4. Where a Community decision on classification resulting in a change of classification practice of any product covered by the Agreement affects a category subject to quantitative limits, the Parties agree to enter into consultations in accordance with the procedures described  in Article 9 (3) of the Agreement with a view to honouring the obligation contained in Article 7 (1) of the Agreement.5. In case of divergent opinions between the competent authorities of Kazakhstan and the Community at the point of entry into the Community on the classification of products covered by the Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 9 with a view to reaching agreement on the definitive classification of the products concerned.TITLE IIORIGINArticle 21. Products originating in Kazakhstan according to the Community Regulations in force for export to the Community in accordance with the arrangements established by the Agreement shall be accompanied by a certificate of Kazakh origin conforming to the model annexed to this Protocol.2. The certificate of origin shall be certified by the Kazakh organisations authorised for such purposes under Kazakh legislation as to whether the products in question can be considered as products originating in Kazakhstan.Article 3The certificate of origin shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative. The Kazakh organisations authorised for such purposes under Kazakh legislation shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check which they consider appropriate.Article 4The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto cast doubt upon the statements in the certificate.TITLE IIIDOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE LIMITSSECTION IExportationArticle 51. The appropriate Kazakh governmental authorities shall issue an export licence in respect of all consignments from Kazakhstan of steel products covered by the Agreement up to the quantitative limits set out in Annex II of the Agreement.Article 61. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory of the Community.2. Each export licence must certify inter alia that the quantity of the product in question has been set off against the relevant quantitative limit established for the product concerned in Annex II of the Agreement.Article 7The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.Article 81. Exports shall be set off against the quantitative limits established for the year in which the shipment of goods has been effected even if the export licence is issued after such shipment.2. For the purposes of applying paragraph 1, shipment of goods is considered to have taken place on the date of their loading onto the exporting transport.Article 9The presentation of an export licence, in application of Article 11, shall be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped.SECTION IIImportationArticle 10The release for free circulation into the Community of steel products subject to quantitative limits shall be subject to the presentation of an import authorisation.Article 111. The competent authorities of the Community shall issue the import authorisation referred to in Article 8 above, within ten working days of the presentation by the importer of the original of the corresponding export licence. A list of the competent authorities is annexed to this Protocol.2. The import authorisations shall be valid for four months from the date of their issue for imports throughout the customs territory of the Community.3. The competent authorities of the Community shall cancel the import authorisation already issued whenever the corresponding export licence has been withdrawn. However, if the competent authorities of the Community are notified of the withdrawal or the cancellation of the export licence only after the release for free circulation of the products into the Community, the relevant quantities shall be set off against the limits established for the product.Article 12If the competent authorities of the Community find that the total quantities covered by export licences issued by the competent authorities of Kazakhstan exceed the relevant quantitative limit established for products covered by Annex II of the Agreement the Community authorities shall suspend the further issue of import authorisations in respect of products covered by the  quantitative limit in question. In this event, the competent authorities of the Community shall immediately inform the authorities of Kazakhstan and immediate consultations pursuant to Article 9 (2) of the Agreement shall be initiated.TITLE IVFORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITYArticle 131. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English. If  they are completed by hand, entries must be in ink and in printed script.These documents shall measure 210 x 297 mm. The paper used shall be white writing paper, sized, not  containing mechanical pulp, and weighing not less than 25 g/m². If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked 'original' and the other copies 'copies'. Only the original shall be accepted by the competent authorities of the Community as being valid for the  purpose of export to the Community in accordance with the provisions of the Agreement.2. Each document shall bear a standardised serial number, whether or not printed, by which it can be identified.This number shall be composed of the following elements:- two letters identifying the exporting country as follows: KZ = Kazakhstan,- two letters identifying the intended Member State of customs clearance as follows: BE = Belgium DK = Denmark DE = Germany EL = Greece ES = Spain FR = France IE = Ireland IT = Italy LU = Luxembourg NL = Netherlands AT = Austria PT = Portugal FI = Finland SE = Sweden GB = United Kingdom,- a one-digit number identifying the year in question corresponding to the last figure in the year, e.g. "0" for 2000,- a two-digit number from 01 to 99, identifying the particular issuing office concerned in  exporting country,- a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.Article 14The export licence and the certificate of origin may be issued after the shipment of  the products to which they relate. In such cases, they must bear the endorsement 'issued retrospectively'. Article 151. In the event of the theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the Kazakh governmental authorities competent to issue licences or to the Kazakh organisations authorised to issue certificates of origin under Kazakh legislation, respectively, for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement 'duplicate'.2. The duplicate shall bear the date of the original export licence or certificate of origin.TITLE VADMINISTRATIVE COOPERATIONArticle 16The Parties shall cooperate closely in the implementation of the provisions of this Protocol. To this end, contacts and exchanges of  views, including on technical matters, shall be facilitated by both Parties.Article 17In order to ensure the correct application of this Protocol, the Parties shall offer mutual assistance for the checking of the authenticity and the accuracy of export licences and certificates of origin issued or of any declarations made within the terms of this Protocol.Article 18Kazakhstan shall send the Commission of the European Communities the names and addresses of the competent Kazakh authorities which are authorised to issue and to verify export licences and certificates of origin together with specimens of the stamps and signatures they use. Kazakhstan shall also notify the Commission of any change in this information.Article 191. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the true origin of the products in question.2. In such cases, the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the appropriate Kazakh authorities giving, where appropriate, the reasons of form or substance which justify an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the licence or their copies. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.3. The provisions of paragraph 1 above shall also apply to subsequent verifications of the certificates of origin provided for in Article 2 of this Protocol.4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 above shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate, licence or declaration, applies to the goods actually exported and whether these goods are eligible for export under the arrangements established by the Agreement. The information shall also include, at the request of the Community, copies of all the documentation necessary to fully determine the facts, and in particular the true origin of the goods.Should such verifications reveal systematic irregularities in the use of certificates of origin, the Community may subject imports of the products in question to the provisions of Article 2 (1) of this Protocol.5. For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept by the appropriate Kazakh authorities for at least one year following the end of the Agreement.6. Recourse to the random verification procedure specified in this Article must not constitute an obstacle to the release for free circulation of the products in question.Article 201. Where the verification procedure referred to in Article 19 or where information available to the competent authorities of the Community or of Kazakhstan indicates or appears to indicate that the provisions of the Agreement are being circumvented or infringed, the two Parties shall cooperate closely and with the appropriate urgency in order to prevent any such circumvention or infringement.2. To this end, the appropriate Kazakh authorities shall, on their own initiative or at the request of the Community, carry out appropriate inquiries, or arrange for such inquiries to be carried out, concerning operations which are, or appear to the Community to be, in circumvention or infringement of this Protocol. Kazakhstan shall communicate the results of these inquiries to the Community, including any other pertinent information enabling the cause of the circumvention or infringement, including the true origin of the goods to be determined.3. By agreement between the Parties, officials designated by the Community may be present at the inquiries referred to in paragraph 2 above.4. In pursuance of the cooperation referred to in paragraph 1 above, the competent authorities of the Community and Kazakhstan shall exchange any information considered by either Party to be of use in preventing circumvention or infringement of the provisions of the Agreement. These exchanges may include information on the trade in the type of products covered by the Agreement between Kazakhstan and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Kazakhstan prior to their importation into the Community. This information may include at the request of the Community copies of all relevant documentation, where available.5. Where sufficient evidence shows that the provisions of this Protocol have been circumvented or infringed, the competent authorities of Kazakhstan and the Community may agree to take any measures as  are necessary to prevent a recurrence of such circumvention or infringement.EXPORT LICENCE&gt;TABLE POSITION&gt;EXPORT LICENCE&gt;TABLE POSITION&gt;CERTIFICATE OF ORIGIN&gt;TABLE POSITION&gt;CERTIFICATE OF ORIGIN&gt;TABLE POSITION&gt;LISTE OVER KOMPETENTE NATIONALE MYNDIGHEDERLISTE DER ZUSTÄNDIGEN BEHÖRDEN DER MITGLIEDSTAATENÄÉÅÕÈÕÍÓÅÉÓ ÔÙÍ ÁÑ×ÙÍ ÅÊÄÏÓÇÓ ÁÄÅÉÙÍ ÔÙÍ ÊÑÁÔÙÍ ÌÅËÙÍLISTA DE LAS AUTORIDADES NACIONALES COMPETENTESLISTE DES AUTORITES NATIONALES COMPETENTESELENCO DELLE COMPETENTI AUTORITA NAZIONALILIJST VAN BEVOEGDE NATIONALE INSTANTIESLISTA DAS AUTORIDADES NACIONAIS COMPETENTESLUETTELO TOIMIVALTAISISTA KANSALLISISTA VIRANOMAISISTALISTA ÖVER KOMPETENTA NATIONELLA MYNDIGHETERLIST OF THE COMPETENT NATIONAL AUTHORITIESBELGIQUE/BELGIËMinistère des Affaires EconomiquesAdministration des Relations EconomiquesServices LicencesRue Général Leman 60B-1040 BruxellesFax: +32-2-230 83 22  //  FRANCESetice8, rue de la Tour-des-DamesF-75436 Paris Cedex 09Fax: +33-1-55 07 46 69Ministerie van Economische ZakenBestuur van de Economische BetrekkingenDienst VergunningenGeneraal Lemanstraat 60B-1040 BrusselFax: +32-2-230 83 22  //  IRELANDLicensing UnitDepartment of Enterprise, Trade and EmploymentKildare StreetIRL-Dublin 2Fax : +353-1-631 28 26DANMARKErhvervsfremme StyrelsenSøndergade 25DK-8600 SilkeborgFax : +45-87 20 40 77  //  ITALIAMinistero del Commercio con l'EsteroDirezione gnerale per la politica commerciale e per la gestione del regime degli scambiViale America 341I-00144 RomaFax : +39-6-59 93 22 35 / 59 93 26 36DEUTSCHLANDBundesamt für Wirtschaft, Dienst 01Postfach 5171D-65762 Eschborn 1Fax : +49-61 96 40 42 12  //  LUXEMBOURGMinistère des affaires étrangèresOffice des licencesBP 113L-2011 LuxembourgTéléfax : +352-46 61 38ÅËËÁÓÕðïõñãåßï ÅèíéêÞò ÏéêïíïìßáòÃåíéêÞ Ãñáììáôåßá Ä.Ï.ÓÄéåýèõíóç Äéáäéêáóéþí ÅîùôåñéêïýÅìðïñßïõÊïñíáñïõ 1GR-105 63 ÁèÞíáFax : +301-3286029/3286059/3286039  //  NEDERLANDCentrale Dienst voor In- en UitvoerPostbus 30003, Engelse Kamp 2NL-9700 RD GroningenFax : 31-50 526 06 98ESPAÑAMinisterio de Economía y HaciendaDirección General de Comercio ExteriorPaseo de la Castellana 162E-28046 MadridFax : +34-1-563 18 23/349 38 31  //  ÖSTERREICHBundesministerium für wirtschaftliche AngelegenheitenAussenwirtschaftsadministrationLandstrasser Hauptstrasse 55-57A-1030 WienFax: 43-1-715 83 47PORTUGALMinistério da EconomiaDirecção-Geral das Relações Económicas InternacionaisAv. da República, 79P-1000 LisboaFax : 351-1-793 22 10  //  SVERIGEKommerskollegiumBox 6803S-11386 StockholmFax: 46-8-30 67 59SUOMITullihallitusPL 512FIN-00101 HelsinkiTelekopio: + 358 9 614 28 52  //  UNITED KINGDOMDepartment of Trade and IndustryImport Licensing BranchQueensway House - West PrecinctBillingham, ClevelandUK-TS23 2NFFax : 44-1642-533 557 PROTOCOL BCompetition, public aid and environmental protection in respect of the products covered by this AgreementTITLE 1ObjectivesArticle 1The aims of this Protocol shall be :- to facilitate the achievement of appropriate market conditions for liberalisation of trade in steel products through the progressive application of equivalent disciplines in respect of competition, public aid and environmental protection; and- to establish a framework for measuring progress towards the removal of restrictions on competition by enterprises or caused by State intervention in so far as they may affect the trade between the Parties in the steel products covered by the Agreement.TITLE 2COMPETITION AND PUBLIC AIDArticle 2The following practices are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Kazakhstan:i) all agreements of cooperative or concentrative nature between undertakings, decisions by association of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of Kazakhstan as a whole or in a substantial part thereof;iii) public aid in any form whatsoever and regardless whether granted by federal, state, regional or local authorities except aid for research and development, environmental protection or for the closure of plant or for appropriately defined measures in respect of social support. Public aid shall include, inter alia, acquisitions of shareholdings or provisions of capital or similar financing which cannot be regarded as a genuine provision of risk capital according to usual investment practice in a market economy.Article 31. Within 12 months of the entry into force of the agreement, the Parties will agree the necessary rules for the implementation of Article 2 in respect of the products covered by this Agreement by means of an Agreement in the Form of an Exchange of Letters.2. The Parties agree to take full account of current or future international commitments accepted by the Community and Kazakhstan concerning public aid to the steel industry.3. No later than 6 months before the expiry of the Agreement, the Parties shall apply equivalent disciplines in respect of competition, public aid and environmental protection, in so far as they may affect trade between the Community and Kazakhstan. Article 41. The Parties shall ensure transparency in the area of public aid within their respective territories, inter alia by provision of relevant information to the coal and steel Contact Group established under Article 17(2) of the Partnership and Cooperation Agreement. Either of the Parties may raise in the coal and steel Contact Group any matter relating to aid which it considers to be incompatible with this Agreement.2. In the implementation of the provisions foreseen by Articles 2 and 3, the Parties agree to cooperate closely and to keep each other fully informed of all legislative proposals prior to their coming into force.Article 51. The Parties recognize that during a transitional period expiring 2 years after the entry into force of this Agreement, and by way of derogation from Article 2 (iii) of this Protocol, Kazakhstan may grant public aid on an exceptional basis for restructuring purposes for individual steel firms, provided that:- transparency is ensured by a full and continuous exchange of information concerning the implementation of the restructuring programme, such information shall include details of the amount, intensity and purposes of the aid as well as the detailed restructuring plan providing all the relevant technical and economical data concerning the restructuring; and- the restructuring programme leads to rationalization and to a reduction of capacity in crude steel and hot-rolled production; and- the aid leads to the viability of the benefiting firms under normal market conditions at the end of the restructuring period; and- the amount of aid granted is not out of proportion to its objectives and is strictly limited, in amount and intensity, to what is absolutely necessary to bring about or restore viability.2. Kazakhstan shall inform the Community in sufficient time of any aid proposed to be granted under this Article and will provide the Community with all the necessary information which is required in order to assess whether the aid and the restructuring meet the criteria above. TITLE 3ENVIRONMENTAL PROTECTIONArticle 61. The Parties agree to cooperate in order to combat the deterioration of the environment, in particular through improvement of laws and through compliance with the precautionary principle.2. The Parties agree to keep each other fully informed of major environmental problems in the steel sector within their respective territories by way of providing the relevant information to the coal and steel Contact Group.3. The Parties undertake to comply with the relevant international environmental agreements which they have ratified and which apply, inter alia, to activities in the steel sector. The Parties undertake to ratify and to implement such agreements as soon as possible.  These agreements include, in particular, the 1979 Convention on long range transboundary air pollution and its protocols, the 1991 Convention on environmental impact assessment in a transboundary context, the 1992 Convention on the protection and use of transboundary watercourses and international lakes, the 1992 Convention on transboundary effects of industrial accidents, and the 1992 Framework Convention on climate change.TITLE 4TECHNICAL COOPERATIONArticle 7The Community will provide within available resources technical assistance to Kazakhstan for the implementation of this Protocol, in particular for the development of rules on competition and public aid and elaboration of the necessary implementation mechanisms. DECLARATION BY THE EUROPEAN COAL AND STEEL COMMUNITYON ARTICLE 3 OF PROTOCOL BThe Community declares that, until the entry into force of the rules on fair competition referred to in Article 3, paragraph 1 of Protocol B, it will measure any practices relating to Article 2 on the basis of the criteria resulting from the rules contained in Articles 85, 86 and 92 of the Treaty establishing the European Community, Articles 65 and 66 of the Treaty establishing the European Coal and Steel Community and the Community rules on State aids, including secondary legislation.