Proposal for a Council Decicion concerning the approval of an agreement in the form of an exchange of letters between the Community and each of the EFTA countries that grants tariff preferences under the GSP (Norway and Switzerland), providing that goods originating in Norway or Switzerland shall be treated on their arrival on the customs territory of the Community as goods with content of Community origin (reciprocal agreement)
Date: 2000-09-22
Institutions: European Commission
Subjects: EFTA, accession to an agreement, certificate of origin, customs regulations, generalised preferences

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.09.2000
COM(2000) 590 final

2000/0242 (ACC)

Proposal for a

COUNCIL DECISION

concerning the approval of an agreement in the form of an exchange of letters between
the Community and each of the EFTA countries that grants tariff preferences under the
GSP (Norway and Switzerland), providing that goods originating in Norway or
Switzerland shall be treated on their arrival on the customs territory of the Community
as goods with content of Community origin (reciprocal agreement)

(presented by the Commission)

EXPLANATORY MEMORANDUM

In 1995 the provisions on cumulation of origin between the Community and the countries
benefiting from the generalised system of preferences (GSP) came into force. Cumulation of
origin (“donor country content”) encourages countries benefiting from the GSP to use
Community components, since these are then treated as originating in the country using them,
which facilitates compliance with the origin criteria.

In 1980 the Community and the EFTA countries (six at the time) decided to facilitate
movement between them of goods benefiting from one of the seven GSP schemes (the
Community GSP and the GSPs of the six EFTA countries). They did so at the time using
simple bilateral administrative agreements, which were not published.

The agreements allowed replacement certificates to be issued for goods accompanied by a
certificate of origin form A entering one of the seven territories granting preferences where all
or part of the goods were to be forwarded to another one or more of the seven territories
(Article 89 of Regulation EEC No 2454/93 of 2 July 1993, as last amended by Regulation EC
No 12/97 of 18 December 1996).

It was possible to introduce this arrangement because the Community GSP and those of the
EFTA countries (now Switzerland and Norway) are based on similar principles, particularly
as regards the origin criteria which are, de facto, those established by the Community and
adopted by both Switzerland and Norway. This correspondence of principles was lost in 1995
when the Community decided to introduce the cumulation rule referred to above.

However, in 1998 the Swiss and Norwegian rules were amended to introduce the equivalent
of the cumulation rules in their schemes. The logical implication of allowing this transit
facility to continue to apply to all goods eligible for one or other of the GSPs is that each of
the three parties should recognise components originating on the territories of each of the two
others as originating in the beneficiary country within the meaning of its own cumulation of
origin rules. In practice, the Community will grant preferences to goods originating in
beneficiary countries where some of the components originate in Switzerland and/or Norway
and, those two countries will treat goods containing Community components in the same way.

In other words, the Community and EFTA will accept components from the other two parties
via export to developing countries. This situation will make it possible to maintain the
correspondence of the GSPs, particularly as concerns rules of origin, so as not to disrupt the
very frequent movement of goods within the economic area composed of these three customs
territories, which is very extensively integrated (e.g.: a cargo of Brazilian products is cleared
by customs in the Netherlands and broken up into consignments going to Germany and
Switzerland, using a replacement certificate for the latter country, which is issued by the
Netherlands customs). The volume of the Community economy compared to that of the Swiss
and Norwegian economies means that more Community components are likely to enter EFTA
countries via beneficiary countries than vice versa.

The Commission accordingly asked the Council for a negotiating mandate to establish two
parallel agreements in the form of letters with Switzerland and Norway making these
arrangements consistent under international law. The agreements are to cover the entire
replacement certificate procedure, whether or not the goods meet the origin criteria because of
cumulation; it has transpired that the 1980 agreements were not watertight
in terms of
international law.

2

After the Council gave the Commission the negotiating mandate on 29 March 1996, talks
with the Swiss and Norwegian authorities produced the annexed draft exchanges of letters.
The provisions were finalised at the technical level between the three parties, who have
recently started applying this bilateral cumulation arrangement.

It should be noted that, contrary to what was envisaged at the beginning of the negotiations,
fisheries and agriculture products have been excluded from the scope of the agreements
(Chapters 1 to 24 of the CN).

The texts have been the subject of technical scrutiny by Member State experts meeting within
the Customs Code Committee (Origin Section).

3

2000/0242 (ACC)

Proposal for a

COUNCIL DECISION

concerning the approval of an agreement in the form of an exchange of letters
between the Community and each of the EFTA countries that grants tariff
preferences under the GSP (Norway and Switzerland), providing that goods
originating in Norway or Switzerland shall be treated on their arrival on the
customs territory of the Community as goods with content of Community origin
(reciprocal agreement)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof,

Having regard to Article 66(4) and (5) of Commission Regulation (EEC) No 2454/93 of
2 July 1993,1 as last amended by Commission Regulation (EC) No 1602/2000 of 24 July
2000,2

Whereas:

(1)

(2)

To enable the Community, Swiss and Norwegian customs authorities to issue
replacement Form A certificates of origin to facilitate the movement of goods
originating in developing countries which benefit
from the generalised
preferences granted by the Community, Switzerland and Norway, an agreement
should be concluded between the Community, Switzerland and Norway under
which they mutually recognise their components as originating in the developing
countries concerned under the bilateral cumulation of origin rules.

Further to the mandate given by the Council to the Commission on 29 March
1996, negotiations to that effect took place between the European Community,
Switzerland and Norway and led to an agreement in the form of an exchange of
letters which it is in the Community’s interest to approve.

1

2

OJ L 253, 11.10.1993, p. 1.
OJ L 188, 26.7.2000, p. 1.

4

HAS DECIDED AS FOLLOWS:

Article 1

The agreement in the form of an exchange of letters between the European Community,
Switzerland and Norway, which is intended to enable the Community, Swiss and
Norwegian customs authorities to issue replacement Form A certificates of origin to
facilitate the movement of goods originating in developing countries which benefit from
the generalised preferences granted by the Community, Switzerland and Norway, is
hereby approved on behalf of the Community. The text of the agreement in the form of
an exchange of letters is attached to this decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) authorised to
sign the Agreement in the form of an Exchange of Letters referred to in Article 1.

Article 3

The President of the Council shall, on behalf of the Community, give the notification
provided for by the Agreement in the form of an Exchange of Letters.

Done at Brussels,

For the Council
The President

5

ANNEX

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the Community and each of the EFTA countries that grants tariff
preferences under the GSP (Norway and Switzerland), providing that goods
originating in Norway or Switzerland shall be treated on their arrival on the
customs territory of the Community as goods with content of Community origin
(reciprocal agreement)

6

A. Letter from the European Community

Dear Sir,

1.

The European Community and Switzerland acknowledge that each Party applies
similar rules of origin, for the purposes of the Generalised System of Preferences
(GSP), with the following general principles:

–

–

–

–

–

–

–

definition of the concept of originating products based on the same criteria;

provision for regional cumulation of origin;

provisions for applying cumulation to materials which originate, in terms of the
GSP-rules, in the European Community, Switzerland or Norway;

a percentage-tolerance for non-originating materials;

provisions for direct transport of goods from the beneficiary country;

provisions for the issue and acceptance of replacement certificates of origin
Form A (hereinafter referred to as replacement certificates);

requirement for administrative co-operation, with the competent authorities in
the beneficiary countries, on the matter of certificates of origin Form A.

The European Community and Switzerland recognise that materials, originating in
the European Community, in Switzerland or in Norway (in terms of the GSP-rules),
which, in a GSP-beneficiary country, have been processed and incorporated into a
product originating in a GSP-beneficiary country, shall be considered as originating
in that beneficiary country.

subsequent

The customs authorities of the European Community, switzerland or Norway shall
provide each other with any appropriate administrative assistance, particularly for the
purposes of
certificate EUR.1
corresponding to the materials mentioned under above paragraph. The provisions
concerning administrative co-operation laid down in Protocol 3 to the Agreement
EC-Switzerland, in Annex B of the EFTA Convention or in Protocol 4 of the
Agreement on the European Economic Area are to be applied mutatis mutandis.

verification of

the movement

The provisions of this paragraph shall not apply to products of Chapters 1 to 24 of
the Harmonized System.

The European Community and Switzerland hereby undertake, by mutual agreement,
to accept replacement certificates, issued by each other's customs authorities to
replace certificates of origin Form A issued by the competent authorities of a GSP-
beneficiary country, under the following conditions:

–

–

this procedure shall apply only to certificates of origin Form A, and not to any
other document certifying origin;

the replacement certificate shall be issued at the re-exporter's written request;

7

2.

3.

–

–

–

–

the goods shall have remained under customs supervision in the European
Community or in Switzerland, as the case may be, and shall not have been
subject to operations other than unloading, reloading, splitting of consignments
or any operation designed to preserve them in good condition;

the customs office, under whose control the goods are placed, shall write off
the corresponding amount against the original certificate of origin Form A and
enter on it the serial number(s) of the corresponding replacement certificate(s);

the goods concerned shall not be subject to a derogation from the rules of
origin;

the customs authorities of the European Community and of Switzerland shall
provide each other with any appropriate administrative assistance, particularly
for the purposes of subsequent verification; in particular, and at the request of
the country of destination,
the authorities of the country in which the
the
replacement certificate is issued shall carry out
subsequent verification of the corresponding original certificate of origin Form
A.

the procedure for

4.

The replacement certificate shall be established in the following manner :

–

–

–

–

–

–

–

–

the top right-hand box of the replacement certificate shall indicate the name of
the intermediary country where it is issued;

box 4 shall contain the words "replacement certificate" or "certificat de
remplacement", as well as the date of issue of the original certificate of origin
Form A and its serial number;

the name of the re-exporter shall be given in box 1;

the name of the final consignee may be given in box 2;

all particulars of the re-exported products appearing on the original certificate
must be transferred to boxes 3 to 9;

references to the re-exporter's invoice must be given in box 10;

the customs authority which issued the replacement certificate shall endorse
box 11. The responsibility of the authority is confined to the issue of the
replacement certificate. The particulars in box 12 concerning the country of
origin and the country of destination shall be taken from the original certificate
of origin Form A. This box shall be signed by the re-exporter. A re-exporter
who signs this box in good faith shall not be responsible for the accuracy of the
particulars entered on the original certificate of origin Form A;

the customs office which is requested to perform the operation should note on
the original certificate of origin Form A the weights, numbers and nature of the
goods forwarded and indicate thereon the serial numbers of the corresponding
the
replacement certificate or certificates.
replacement certificate as well as the original certificate of origin Form A for at
least three years;

It shall keep the request of

8

–

a photocopy of the original certificate of origin Form A may be annexed to the
replacement certificate.

5.

6.

In the event of serious misgivings as to the proper functioning of this Agreement,
either Party may suspend its application. In this case, the designated authorities of the
other Party shall be notified in advance.

This Agreement shall enter into force on a mutually-agreed date, once the European
Community and Switzerland have notified each other of the completion of the
internal procedures required for the incorporation,
respective GSP-
schemes, of the provision for cumulation with each other's originating materials.

into their

I would be grateful if your Government would confirm its agreement to the foregoing.

Done at Brussels,

On behalf of the Council
of the European Union

9

Dear Sir,

B. Letter from Switzerland

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

1.

The European Community and Switzerland acknowledge that each Party applies
similar rules of origin, for the purposes of the Generalized System of Preferences
(GSP), with the following general principles:

–

–

–

–

–

–

–

definition of the concept of originating products based on the same criteria;

provision for regional cumulation of origin;

provisions for applying cumulation to materials which originate, in terms of the
GSP-rules, in the European Community, Switzerland or Norway;

a percentage-tolerance for non-originating materials;

provisions for direct transport of goods from the beneficiary country;

provisions for the issue and acceptance of replacement certificates of origin
Form A (hereinafter referred to as replacement certificates);

requirement for administrative co-operation, with the competent authorities in
the beneficiary countries, on the matter of certificates of origin Form A.

The European Community and Switzerland recognise that materials, originating in
the European Community, in Switzerland or in Norway (in terms of the GSP-rules),
which, in a GSP-beneficiary country, have been processed and incorporated into a
product originating in a GSP-beneficiary country, shall be considered as originating
in that beneficiary country.

subsequent

The customs authorities of the European Community, switzerland or Norway shall
provide each other with any appropriate administrative assistance, particularly for the
purposes of
certificate EUR.1
corresponding to the materials mentioned under above paragraph. The provisions
concerning administrative co-operation laid down in Protocol 3 to the Agreement
EC-Switzerland, in Annex B of the EFTA Convention or in Protocol 4 of the
Agreement on the European Economic Area are to be applied mutatis mutandis.

verification of

the movement

The provisions of this paragraph shall not apply to products of Chapters 1 to 24 of
the Harmonised System.

The European Community and Switzerland hereby undertake, by mutual agreement,
to accept replacement certificates, issued by each other's customs authorities to
replace certificates of origin Form A issued by the competent authorities of a GSP-
beneficiary country, under the following conditions:

–

this procedure shall apply only to certificates of origin Form A, and not to any
other document certifying origin;

10

2.

3.

–

–

–

–

–

the replacement certificate shall be issued at the re-exporter's written request;

the goods shall have remained under customs supervision in the European
Community or in Switzerland, as the case may be, and shall not have been
subject to operations other than unloading, reloading, splitting of consignments
or any operation designed to preserve them in good condition;

the customs office, under whose control the goods are placed, shall write off
the corresponding amount against the original certificate of origin Form A and
enter on it the serial number(s) of the corresponding replacement certificate(s);

the goods concerned shall not be subject to a derogation from the rules of
origin;

the customs authorities of the European Community and of Switzerland shall
provide each other with any appropriate administrative assistance, particularly
for the purposes of subsequent verification; in particular, and at the request of
the authorities of the country in which the
the country of destination,
replacement certificate is issued shall carry out
the
subsequent verification of the corresponding original certificate of origin Form
A.

the procedure for

4.

The replacement certificate shall be established in the following manner :

–

–

–

–

–

–

–

–

the top right-hand box of the replacement certificate shall indicate the name of
the intermediary country where it is issued;

box 4 shall contain the words "replacement certificate" or "certificat de
remplacement", as well as the date of issue of the original certificate of origin
Form A and its serial number;

the name of the re-exporter shall be given in box 1;

the name of the final consignee may be given in box 2;

all particulars of the re-exported products appearing on the original certificate
must be transferred to boxes 3 to 9;

references to the re-exporter's invoice must be given in box 10;

the customs authority which issued the replacement certificate shall endorse
box 11. The responsibility of the authority is confined to the issue of the
replacement certificate. The particulars in box 12 concerning the country of
origin and the country of destination shall be taken from the original certificate
of origin Form A. This box shall be signed by the re-exporter. A re-exporter
who signs this box in good faith shall not be responsible for the accuracy of the
particulars entered on the original certificate of origin Form A;

the customs office which is requested to perform the operation should note on
the original certificate of origin Form A the weights, numbers and nature of the
goods forwarded and indicate thereon the serial numbers of the corresponding
the
replacement certificate or certificates.

It shall keep the request of

11

replacement certificate as well as the original certificate of origin Form A for at
least three years;

–

a photocopy of the original certificate of origin Form A may be annexed to the
replacement certificate.

5.

6.

In the event of serious misgivings as to the proper functioning of this Agreement,
either Party may suspend its application. In this case, the designated authorities of the
other Party shall be notified in advance.

This Agreement shall enter into force on a mutually-agreed date, once the European
Community and Switzerland have notified each other of the completion of the
respective GSP-
internal procedures required for the incorporation,
schemes, of the provision for cumulation with each other's originating materials.

into their

I would be grateful if your Government would confirm its agreement to the foregoing.".

I have the honour to confirm the agreement of my Government to the above.

Done at Brussels,

On behalf of the Federal Council
of the Swiss Confederation

12

A. Letter from the European Community

Dear Sir,

1.

The European Community and Norway acknowledge that each Party applies similar
rules of origin, for the purposes of the Generalised System of Preferences (GSP),
with the following general principles:

–

–

–

–

–

–

–

definition of the concept of originating products based on the same criteria;

provision for regional cumulation of origin;

provisions for applying cumulation to materials which originate, in terms of the
GSP-rules, in the European Community, Norway or Switzerland;

a percentage-tolerance for non-originating materials;

provisions for direct transport of goods from the beneficiary country;

provisions for the issue and acceptance of replacement certificates of origin
Form A (hereinafter referred to as replacement certificates);

requirement for administrative co-operation, with the competent authorities in
the beneficiary countries, on the matter of certificates of origin Form A.

The European Community and Norway recognise that materials, originating in the
European Community, in Norway or in Switzerland (in terms of the GSP-rules),
which, in a GSP-beneficiary country, have been processed and incorporated into a
product originating in a GSP-beneficiary country, shall be considered as originating
in that beneficiary country.

subsequent

The customs authorities of the European Community, Norway or switzerland shall
provide each other with any appropriate administrative assistance, particularly for the
purposes of
certificate EUR.1
corresponding to the materials mentioned under above paragraph. The provisions
concerning administrative co-operation laid down in Protocol 3 to the Agreement
EC-Switzerland, in Annex B of the EFTA Convention or in Protocol 4 of the
Agreement on the European Economic Area are to be applied mutatis mutandis.

verification of

the movement

The provisions of this paragraph shall not apply to products of Chapters 1 to 24 of
the Harmonised System.

The European Community and Norway hereby undertake, by mutual agreement, to
accept replacement certificates, issued by each other's customs authorities to replace
certificates of origin Form A issued by the competent authorities of a GSP-
beneficiary country, under the following conditions:

–

–

this procedure shall apply only to certificates of origin Form A, and not to any
other document certifying origin;

the replacement certificate shall be issued at the re-exporter's written request;

13

2.

3.

–

–

–

–

the goods shall have remained under customs supervision in the European
Community or in Norway, as the case may be, and shall not have been subject
to operations other than unloading, reloading, splitting of consignments or any
operation designed to preserve them in good condition;

the customs office, under whose control the goods are placed, shall write off
the corresponding amount against the original certificate of origin Form A and
enter on it the serial number(s) of the corresponding replacement certificate(s);

the goods concerned shall not be subject to a derogation from the rules of
origin;

the customs authorities of the European Community and of Norway shall
provide each other with any appropriate administrative assistance, particularly
for the purposes of subsequent verification; in particular, and at the request of
the country of destination,
the authorities of the country in which the
the
replacement certificate is issued shall carry out
subsequent verification of the corresponding original certificate of origin Form
A.

the procedure for

4.

The replacement certificate shall be established in the following manner :

–

–

–

–

–

–

–

–

the top right-hand box of the replacement certificate shall indicate the name of
the intermediary country where it is issued;

box 4 shall contain the words "replacement certificate" or "certificat de
remplacement", as well as the date of issue of the original certificate of origin
Form A and its serial number;

the name of the re-exporter shall be given in box 1;

the name of the final consignee may be given in box 2;

all particulars of the re-exported products appearing on the original certificate
must be transferred to boxes 3 to 9;

references to the re-exporter's invoice must be given in box 10;

the customs authority which issued the replacement certificate shall endorse
box 11. The responsibility of the authority is confined to the issue of the
replacement certificate. The particulars in box 12 concerning the country of
origin and the country of destination shall be taken from the original certificate
of origin Form A. This box shall be signed by the re-exporter. A re-exporter
who signs this box in good faith shall not be responsible for the accuracy of the
particulars entered on the original certificate of origin Form A;

the customs office which is requested to perform the operation should note on
the original certificate of origin Form A the weights, numbers and nature of the
goods forwarded and indicate thereon the serial numbers of the corresponding
the
replacement certificate or certificates.
replacement certificate as well as the original certificate of origin Form A for at
least three years;

It shall keep the request of

14

–

a photocopy of the original certificate of origin Form A may be annexed to the
replacement certificate.

5.

6.

In the event of serious misgivings as to the proper functioning of this Agreement,
either Party may suspend its application. In this case, the designated authorities of the
other Party shall be notified in advance.

This Agreement shall enter into force on a mutually-agreed date, once the European
Community and Norway have notified each other of the completion of the internal
procedures required for the incorporation, into their respective GSP-schemes, of the
provision for cumulation with each other's originating materials.

I would be grateful if your Government would confirm its agreement to the foregoing.

Done at Brussels,

On behalf of theCouncil
of the European Union

15

Dear Sir,

B. Letter from Norway

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

1.

The European Community and Norway acknowledge that each Party applies similar
rules of origin, for the purposes of the Generalised System of Preferences (GSP),
with the following general principles:

–

–

–

–

–

–

–

definition of the concept of originating products based on the same criteria;

provision for regional cumulation of origin;

provisions for applying cumulation to materials which originate, in terms of the
GSP-rules, in the European Community, Norway or Switzerland;

a percentage-tolerance for non-originating materials;

provisions for direct transport of goods from the beneficiary country;

provisions for the issue and acceptance of replacement certificates of origin
Form A (hereinafter referred to as replacement certificates);

requirement for administrative co-operation, with the competent authorities in
the beneficiary countries, on the matter of certificates of origin Form A.

The European Community and Norway recognise that materials, originating in the
European Community, in Norway or in Switzerland (in terms of the GSP-rules),
which, in a GSP-beneficiary country, have been processed and incorporated into a
product originating in a GSP-beneficiary country, shall be considered as originating
in that beneficiary country.

subsequent

The customs authorities of the European Community, Norway or switzerland shall
provide each other with any appropriate administrative assistance, particularly for the
purposes of
certificate EUR.1
corresponding to the materials mentioned under above paragraph. The provisions
concerning administrative co-operation laid down in Protocol 3 to the Agreement
EC-Switzerland, in Annex B of the EFTA Convention or in Protocol 4 of the
Agreement on the European Economic Area are to be applied mutatis mutandis.

verification of

the movement

The provisions of this paragraph shall not apply to products of Chapters 1 to 24 of
the Harmonised System.

The European Community and Norway hereby undertake, by mutual agreement, to
accept replacement certificates, issued by each other's customs authorities to replace
certificates of origin Form A issued by the competent authorities of a GSP-
beneficiary country, under the following conditions:

–

this procedure shall apply only to certificates of origin Form A, and not to any
other document certifying origin;

16

2.

3.

–

–

–

–

–

the replacement certificate shall be issued at the re-exporter's written request;

the goods shall have remained under customs supervision in the European
Community or in Norway, as the case may be, and shall not have been subject
to operations other than unloading, reloading, splitting of consignments or any
operation designed to preserve them in good condition;

the customs office, under whose control the goods are placed, shall write off
the corresponding amount against the original certificate of origin Form A and
enter on it the serial number(s) of the corresponding replacement certificate(s);

the goods concerned shall not be subject to a derogation from the rules of
origin;

the customs authorities of the European Community and of Norway shall
provide each other with any appropriate administrative assistance, particularly
for the purposes of subsequent verification; in particular, and at the request of
the authorities of the country in which the
the country of destination,
replacement certificate is issued shall carry out
the
subsequent verification of the corresponding original certificate of origin Form
A.

the procedure for

4.

The replacement certificate shall be established in the following manner:

–

–

–

–

–

–

–

–

the top right-hand box of the replacement certificate shall indicate the name of
the intermediary country where it is issued;

box 4 shall contain the words "replacement certificate" or "certificat de
remplacement", as well as the date of issue of the original certificate of origin
Form A and its serial number;

the name of the re-exporter shall be given in box 1;

the name of the final consignee may be given in box 2;

all particulars of the re-exported products appearing on the original certificate
must be transferred to boxes 3 to 9;

references to the re-exporter's invoice must be given in box 10;

the customs authority which issued the replacement certificate shall endorse
box 11. The responsibility of the authority is confined to the issue of the
replacement certificate. The particulars in box 12 concerning the country of
origin and the country of destination shall be taken from the original certificate
of origin Form A. This box shall be signed by the re-exporter. A re-exporter
who signs this box in good faith shall not be responsible for the accuracy of the
particulars entered on the original certificate of origin Form A;

the customs office which is requested to perform the operation should note on
the original certificate of origin Form A the weights, numbers and nature of the
goods forwarded and indicate thereon the serial numbers of the corresponding
the
replacement certificate or certificates.

It shall keep the request of

17

replacement certificate as well as the original certificate of origin Form A for at
least three years;

–

a photocopy of the original certificate of origin Form A may be annexed to the
replacement certificate.

5.

6.

In the event of serious misgivings as to the proper functioning of this Agreement,
either Party may suspend its application. In this case, the designated authorities of the
other Party shall be notified in advance.

This Agreement shall enter into force on a mutually-agreed date, once the European
Community and Norway have notified each other of the completion of the internal
procedures required for the incorporation, into their respective GSP-schemes, of the
provision for cumulation with each other's originating materials.

I would be grateful if your Government would confirm its agreement to the foregoing.".

I have the honour to confirm the agreement of my Government to the above.

Done at Brussels,

On behalf of the Government
of the Kingdom of Norway

18

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Draft Council Decision approving an agreement in the form of an exchange of letters
between the Community and each of
the EFTA countries that grants tariff
preferences under
the GSP (Norway and Switzerland), providing that goods
originating in Norway or Switzerland shall be treated on their arrival on the customs
territory of the Community as goods with content of Community origin (reciprocal
agreement).

2.

BUDGET HEADING INVOLVED

This agreement is financially neutral since it does not introduce any new tariff
concessions.

3.

LEGAL BASIS

Article 133 of the Treaty.

4.

4.1

DESCRIPTION OF OPERATION

General objective

The agreement authorises mutual recognition of components from Switzerland,
Norway and the Community in the context of movement of goods eligible for
generalised tariff preferences where the goods meet the origin criteria because of
components originating from these preference-granting countries.

4.2

Period covered and arrangements for renewal or extension

No time limit

5.

FRAUD PREVENTION MEASURES

Item 5 of the agreement provides for the possibility of suspending the agreement
where doubt arises as to its correct application.

6.

ADMINISTRATIVE EXPENDITURE (PART A OF SECTION III OF THE
GENERAL BUDGET)

6.1

Overall financial impact in terms of additional human resources

None. Decentralised administration (national customs).

19

IMPACT ASSESSMENT FORM

IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO
SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

1.

TITLE OF PROPOSAL

Draft Council Decision approving an agreement in the form of an exchange of letters
between the Community and each of
the EFTA countries that grants tariff
preferences under
the GSP (Norway and Switzerland), providing that goods
originating in Norway or Switzerland shall be treated on their arrival on the customs
territory of the Community as goods with content of Community origin (reciprocal
agreement).

2.

DOCUMENT REFERENCE NUMBER

TAXUD/2080/99

3.

PROPOSAL

Taking account of the principle of subsidiarity, why is Community legislation
necessary in this area and what are its main aims?

In the context of free movement between the EU, Switzerland and Norway, this
measure will facilitate trade in that area for goods from developing countries.

THE IMPACT ON BUSINESS

– Who will be affected by the proposal?

Economic operators

– which sectors of business?

Importers

– which sizes of business (what is the concentration of small and medium-sized

firms)?

All sizes

– are there particular geographical areas of the Community where these businesses

are found?

No

– what will business have to do to comply with the proposal?

Nothing

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– does the proposal contain measures to take account of the specific situation of

small and medium-sized firms (reduced or different requirements etc)?

No

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