Proposal for a Council Decision on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Kazakhstan establishing a double-checking system without quantitative limits in respect of the export of certain steel products covered by the EC and ECSC Treaties from the Republic of Kasakhstan to the European Community
Date: 1999-11-04
Institutions: European Commission
Subjects: ECSC Treaty, Kazakhstan, export monitoring, iron and steel product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 4.11.1999
COM(1999) 556 final

99/0229 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community and the Republic of Kazakhstan establishing
a double-checking system without quantitative limits in respect of the export of
certain steel products covered by the EC and ECSC Treaties from the Republic
of Kasakhstan to the European Community

EXPLANATORY MEMORANDUM

The Community’s Partnership and Cooperation Agreement with Kazakhstan provides
for agreements on quantitative arrangements concerning exchanges of ECSC steel
products.

On 19 July 1999, Kazakh and Commission negotiators concluded lengthy
is intended to
negotiations on the attached proposal. The new ECSC agreement
establish a structured framework for, on the one hand, progressive liberalisation of
trade in steel products and, on the other hand, progressive adaptation of Kazakhstan’s
steel sector to normal competitive conditions, particularly in the areas of competition
policy, state aid and environmental protection.

The new ECSC agreement covers the period 2000-2001. It contains provisions for
reviewing Kazakhstan’s progress towards fulfilling the conditions for complete
liberalisation. There is also a review clause in the event that Kazakhstan joins the
WTO during the period covered by the agreement.

During the negotiations on the new ECSC steel Agreement, the Parties agreed to
establish a double-checking system without quantitative limitations in order to
monitor the trade in certain EC and ECSC Treaty steel products which fall outside the
scope of the ECSC Agreement. The aim of the double-checking system is to improve
transparency and to avoid possible diversions of trade. It is without prejudice to the
application of the relevant provisions of the agreements on trade and trade-related
matters, in particular those relating to anti-dumping and safeguard measures.

The double-checking system should enter into force at the same time as the new
ECSC steel agreement. It would apply for the period 2000-2001. It will be established
by means of an Agreement in the form of an Exchange of Letters.

2

99/0229 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community and the Republic of Kazakhstan establishing
a double-checking system without quantitative limits in respect of the export of
certain steel products covered by the EC and ECSC Treaties from the Republic
of Kasakhstan to the European Community

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 together with Article 300 (2), first sentence thereof,

Having regard to the proposal from the Commission,

(1) Whereas the Partnership and Cooperation Agreement between the Parties

signed on 23 January 1995 has entered into force on 1 July 1999,

(2) Whereas the Commission has finalised negotiations for an Agreement in the
form of an Exchange of Letters between the European Community and the
Republic of Kazakhstan establishing a double-checking system without
quantitative limits in respect of the export of certain steel products covered by
the EC and ECSC Treaties from the Republic of Kazakhstan to the European
Community,

HAS DECIDED AS FOLLOWS:

Article 1

1.

The Agreement in the form of an Exchange of Letters between the European
Community and the Republic of Kazakhstan establishing a double-checking
system without quantitative limits in respect of the export of certain steel
products covered by the EC and ECSC Treaties from the Republic of
Kazakhstan to the European Community is hereby approved on behalf of the
European Community.

2.

The text of the Agreement1 is annexed to this Decision.

1 See page ... of this Official Journal.

3

Article 2

The President of the Council is hereby authorized to designate the persons empowered
to sign the Agreement in the form of an exchange of letters referred to in Article 1 in
order to bind the Community.

Done at Brussels,

For the Council
The President

4

Agreement in the form of an Exchange of Letters between the European
Community and the Government of the Republic of Kazakhstan establishing a
double-checking system without quantitative limits in respect of the export of
certain steel products covered by the EC and ECSC Treaties from Kazakhstan to
the European Communities

LETTER FROM THE COUNCIL OF THE EUROPEAN UNION

Sir,

1.

2.

3.

4.

5.

I have the honour to refer to the recently concluded negotiations between the
European Coal and Steel Community and the Government of the Republic of
Kazakhstan concerning a new ECSC steel agreement, in the course of which
consultations took place with regard to problems concerning certain steel
products covered by the EC and ECSC treaties which fall outside the scope
of the ECSC steel Agreement.

Following these consultations the Parties hereby agree to establish a double-
checking system, without quantitative limits,
in respect of certain steel
products in order to improve transparency and to avoid possible diversions of
trade. The details of the double-checking system are annexed to this letter.

The present Exchange of Letters is without prejudice to the application of the
relevant provisions of the bilateral agreements on trade and trade-related
matters, in particular those relating to anti-dumping and safeguard measures.

Either Party may at any time propose modifications to the Annex or its
appendices which shall require the mutual consent of the Parties and shall
take effect as agreed by them. In the event that anti-dumping or safeguard
introduced in the European
investigations are initiated or measures
the double-checking system,
Community concerning a product under
Kazakhstan will decide whether to exclude the product in question from the
double-checking system. Such a decision shall not affect the entry into free
circulation of the product in question into the Community.

In conclusion, I have the honour to propose that if this letter, its annex and
appendices are acceptable to your Government,
this letter and your
confirmation shall together constitute an agreement between the European
Community and Kazakhstan, which shall enter into force on the date of your
reply.

Please accept, sir, the assurance of my highest consideration,

For the Council of the European Union

5

LETTER FROM THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

Sir,

I have the honour to acknowledge receipt of your letter of ............... which reads as
follows:

“1.

2.

3.

4.

5.

I have the honour to refer to the recently concluded negotiations between the
European Coal and Steel Community and the Government of the Republic of
Kazakhstan concerning a new ECSC steel agreement, in the course of which
consultations took place with regard to problems concerning certain steel
products covered by the EC and ECSC treaties which fall outside the scope
of the ECSC steel Agreement.

Following these consultations the Parties hereby agree to establish a double-
checking system, without quantitative limits,
in respect of certain steel
products in order to improve transparency and to avoid possible diversions of
trade. The details of the double-checking system are annexed to this letter.

The present Exchange of Letters is without prejudice to the application of the
relevant provisions of the bilateral agreements on trade and trade-related
matters, in particular those relating to anti-dumping and safeguard measures.

Either Party may at any time propose modifications to the Annex or its
appendices which shall require the mutual consent of the Parties and shall
take effect as agreed by them. In the event that anti-dumping or safeguard
introduced in the European
investigations are initiated or measures
Community concerning a product under
the double-checking system,
Kazakhstan will decide whether to exclude the product in question from the
double-checking system. Such a decision shall not affect the entry into free
circulation of the product in question into the Community.

In conclusion, I have the honour to propose that if this letter, its annex and
this letter and your
appendices are acceptable to your Government,
confirmation shall together constitute an agreement between the European
Community and Kazakhstan, which shall enter into force on the date of your
reply.”

I have the honour to confirm that the above is acceptable to my Government and that
your letter, this reply and the attached annex and appendices together constitute an
agreement, in accordance with your proposal.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Kazakhstan.

6

ANNEX

to the Agreement in the form of and Exchange of Letters between the European
Community and the Government of establishing a double-checking system
without quantitative limits in respect of the export of certain steel products
covered by the EC and ECSC Treaties from Kazakhstan to the European
Community

1.1. For the period running from the date on which this Agreement is applied between
the Parties to 31 December 2001, unless both Parties agree to terminate the system
earlier, imports into the Community of the products listed in Appendix I originating in
Kazakhstan shall be subject
to the presentation of a surveillance document
conforming to the model shown at Appendix II issued by the authorities in the
Community.

1.2. For the period running from the date on which this Agreement is applied to 31
December 2001, unless both Parties agree to terminate the system earlier, imports into
the Community of the products listed in Appendix I and which originate in
Kazakhstan shall, in addition, be subject to the issue of an export document by the
competent Kazakh authorities. Presentation by the importer of the original of the
export document must be effected not later than 31 March of the year following that
in which the goods covered by the document were shipped.

1.3. An export document will not be required for goods already shipped to the
the
Community before the date of application of this Agreement, provided that
destination of such products is not changed from a non-Community destination and
that those products which, under the currently applicable prior surveillance regime,
could be imported only on presentation of a surveillance document are in fact
accompanied by such a document.

1.4. Shipment is considered to have taken place on the date of loading into the
exporting means of transport.

1.5. The export document shall conform to the model shown in Appendix III. It shall
be valid for exports throughout the customs territory of the Community.

1.6. Kazakhstan shall notify the Commission of the European Communities of the
names and addresses of the appropriate Kazakh governmental authorities which are
authorised to issue and to verify export documents together with specimens of the
stamps and signatures they use. Kazakhstan shall also notify the Commission of any
change in these particulars.

1.7. 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`). The origin of the products covered by
this Agreement shall be determined in accordance with the rules in force in the
Community.

7

1.8. The competent authorities of the Community undertake to inform Kazakhstan of
any changes in the Combined Nomenclature (CN) in respect of products covered by
this Agreement before their date of entry into force in the Community.

1.9. Certain technical provisions on the implementation of the double-checking
system are set in out in Appendix IV.

2.1. Kazakhstan undertakes to supply the Community with precise statistical
information on the export documents issued by the Kazakh authorities pursuant to 1.2.
Such information shall be transmitted to the Community by the end of the month
following the month to which the statistics relate.

2.2. The Community undertakes to supply the Kazakh authorities with precise
statistical information on surveillance documents issued by Member States in respect
of the export documents issued by the Kazakh authorities pursuant to 1.1. Such
information shall be transmitted to the Kazakh authorities by the end of the month
following the month to which the statistics relate.

3. If necessary, at the request of either of the Parties, consultations shall be held on
any problems arising from the operation of the Agreement. Such consultations shall
be held promptly. Any consultations held under this paragraph shall be approached by
both Parties in a spirit of cooperation and with a desire to reconcile the difference
between them.

4. Any notices to be given hereunder shall be given:

–

–

in respect of
Communities,

the Community,

to the Commission of

the European

in respect of Kazakhstan, to the Mission of the Republic of Kazakhstan to the
European Communities.

8

APPENDIX I

List of products subject to double-checking without quantitative limits

Cold-rolled narrow strip of a width not exceeding 500mm

Kazakhstan

7211 23 99

7211 29 50

7211 29 90

7211 90 90

Grain non-oriented electrical sheet

7211 23 91

7225 19 10

7225 19 90

7226 19 10

7226 19 30

7226 19 90

Grain-oriented electrical sheet

7226 11 90

9

APPENDIX II

EUROPEAN COMMUNITY

SURVEILLANCE DOCUMENT

1

1. Consignee (name, full address, country, VAT number)

2. Issue number

3. Proposed place and date of import

4. Authority responsible for issue
(name, address and telephone No)

y
p
o
c

s
’
r
e
d
l
o
H

1

5. Declarant/representative as applicable

(name and full address)

6. Country of origin

(and geonomenclature code)

7. Country of consignment

(and geonomenclature code)

8. Last day of validity

9. Description of goods

10. CN code and category

11. Quantity in kilograms (net mass) or
in additional units

12. Value in euros, cif at Community
frontier

13. Additional remarks

14. Competent authority’s endorsement

Date :

Signature:

Stamp:

10

15. ATTRIBUTIONS

Indicate the quantity available in part 1 of column 17 and the quantity attributed in part 2 thereof

16. Net quantity (net mass or other unit of measure
stating the unit)

19. Customs document

(form and number) or
extract No and date
of attribution

20. Name, Member State, stamp and
signature of the attributing
authority

17. In figures

18. In words for the quantity
attributed

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

Extension pages to be attached hereto

11

EUROPEAN COMMUNITY

SURVEILLANCE DOCUMENT

2

1. Consignee (name, full address, country, VAT number)

2. Issue number

y
t
i
r
o
h
t
u
a
g
n
i
u
s
s
i

e
h
t

r
o
f
y
p
o
C

2

3. Proposed place and date of import

4. Authority responsible for issue
(name, address and telephone No)

5. Declarant/representative as applicable

(name and full address)

6. Country of origin

(and geonomenclature code)

7. Country of consignment

(and geonomenclature code)

8. Last day of validity

9. Description of goods

10. CN code and category

11. Quantity in kilograms (net mass) or
in additional units

12. Value in euros, cif at Community
frontier

13. Additional remarks

14. Competent authority’s endorsement

Date :

Signature:

Stamp:

12

15. ATTRIBUTIONS

Indicate the quantity available in part 1 of column 17 and the quantity attributed in part 2 thereof

16. Net quantity (net mass or other unit of measure
stating the unit)

19. Customs document

(form and number) or
extract No and date
of attribution

20. Name, Member State, stamp and
signature of the attributing
authority

17. In figures

18. In words for the quantity
attributed

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

Extension pages to be attached hereto

13

1 Exporter (name, full address, country)

ORIGINAL

2

No

APPENDIX III

3 Year

4 Product group

5 Consignee (name, full address, country)

EXPORT DOCUMENT

(ECSC and EC steel products)

6 Country of origin

7 Country of destination

8 Place and date of shipment – means of
transport

9 Supplementary details

10 Description of goods - manufacturer

11 CN code

12 Quantity(1)

13 Fob value(2)

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14 CERTIFICATION BY THE COMPETENT AUTHORITY

15 Competent authority (name, full address,
country)

At …………………………………. on ………………………………………

(Signature)

(Stamp)

14

1 Exporter (name, full address, country)

COPY

2

No

3 Year

4 Product group

5 Consignee (name, full address, country)

EXPORT DOCUMENT

(ECSC and EC steel products)

6 Country of origin

7 Country of destination

8 Place and date of shipment – means of
transport

9 Supplementary details

10 Description of goods - manufacturer

11 CN code

12 Quantity(1)

13 Fob value(2)

14 CERTIFICATION BY THE COMPETENT AUTHORITY

15 Competent authority (name, full address,
country)

At …………………………………. on ………………………………………

(Signature)

(Stamp)

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15

APPENDIX IV

KAZAKHSTAN

Technical Annex on the double-checking system

1. The export documents shall measure 210 × 297 mm. The paper used shall be white
writing paper, sized, not containing mechanical pulp, and weighing not less than
25 g/m². They shall be made out in English. If they are completed by hand, entries
must be in ink and in printed script. These documents may comprise additional copies
duly indicated as such. If the documents have several copies only the top copy is the
original. This copy shall be clearly marked as 'original` and other copies as 'copies`.
Only the original shall be accepted by the competent authorities of the Community as
being valid for the control of export to the Community in accordance with the
provisions of the double-checking system.

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:

DK = Denmark

DE = Germany

EL = Greece

ES

= Spain

FR = France

IE

IT

= Ireland

= Italy

LU = Luxembourg

NL = Netherlands

AT = Austria

PT

FI

SE

= Portugal

= Finland

= Sweden

GB = United Kingdom,

- a one-digit number identifying the year, corresponding to the last figure in the
respective year, e.g. "0" for 2000,

- a two-digit number from 01 to 99, identifying the particular issuing office concerned
in the exporting country,

16

- a five-digit number running consecutively from 00001 to 99999 allocated to the
intended Member State of customs clearance.

3. The export documents shall be valid for the calendar year during which they are
issued, as shown in Box N° 3 of the export document.

4. Since the importer needs to present the original export document when requesting
an import document, export documents should, as far as possible, be issued in respect
of individual commercial transactions, not global contracts.

5. Kazakhstan need not show price information on the export document, but that
information is available to the Commission authorities on request.

6. Export documents may be issued after the shipment of the products to which they
relate. In such cases they must bear the endorsement 'issued retrospectively`.

7. In the event of a theft, loss or destruction of an export document, the exporter may
apply to the competent governmental authority which issued the document for a
duplicate to be made out on the basis of the export documents in his possession. The
duplicate of any such document so issued shall bear the endorsement 'duplicate`. The
duplicate shall bear the date of the original export document.

8. The competent authorities of the Community shall be informed immediately of the
withdrawal or modification of any export documents already issued and, where
relevant, of the basis for such action.

17

FINANCIAL STATEMENT

1.

2.

3.

Budget heading involved:

Chapter 12

Legal Basis:

Article 95 ECSC

Title of measure:

Agreement between the European Coal and Steel Community and
Kazakhstan on trade in certain steel products. (The double-checking system
without quantitative limitations has no financial
the
Community budget).

implications for

4.

Purpose:

To conclude a new steel agreement with Kazakhstan establishing quantitative
limits on the amount of certain ECSC steel products which can be imported
into the Community in the period 2000-2001.

5.

Method of calculation:

The average duty in respect of the products in question is, for the twoyears
covered by the agreements: 1.5% and 1.0% (in line with Uruguay Round
commitments).

Applying the average duty to the quantities foreseen in the agreements at
€
/tonne gives the following theoretical net gain
present average values of 260
to the Community's resources:

€

Kazakhstan:

305 312 in 2000 and

€

208 629 in 2001.

18