Proposal for a Council Decision concerning the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Cyprus adding a Protocol on mutual administrative assistance in customs matters to the Association Agreement between the European Economic Community and the Republic of Cyprus
Date: 2001-04-06
Institutions: European Commission
Subjects: Cyprus, administrative cooperation, association agreement, cooperation agreement (EU), customs cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.04.2001
COM(2001) 134 final

2001/0057 (ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an exchange of letters
between the European Community and the Republic of Cyprus adding a Protocol on
mutual administrative assistance in customs matters to the Association Agreement
between the European Economic Community and the Republic of Cyprus

(presented by the Commission)

1.

2.

3.

4.

5.

6.

7.

EXPLANATORY MEMORANDUM

The Association Agreement concluded between the European Economic Community
and the Republic of Cyprus on 19 December 19721 included among its objectives
close and extensive cooperation to increase and diversify trade between the parties,
and provided a means for the reciprocal liberalisation of commerce.

However, this Agreement contains no specific requirements with regard to methods of
administrative cooperation to be applied to its general provisions.

In order to provide greater security in the customs sector for legitimate trade,
the respective Agreement parties considered it necessary to conclude an additional
to the
protocol on mutual administrative assistance in the customs
Association Agreement.

sector

On this basis, negotiations have taken place between the Commission and the
Republic of Cyprus. These exchanges have resulted in the Protocol and the Agreement
in the form of an exchange of letters initialled in Brussels in July 2000.

The purpose of this Protocol is the prevention, detection and prosecution, by way of
mutual assistance conducted between the parties' competent authorities of activities in
breach of customs legislation. The assistance in question chiefly involves the
forwarding of information and documents with regard to investigations, and the
surveillance of specific individuals, goods, and places or means of transport.

The Protocol is virtually identical to the standard version drawn up in 1997 by the
Council Working Group on Economic Questions.

In cases involving questions relating to the applicability of the Protocol,
Contracting Parties agree to consult with each other
matters. Such consultation is to be carried out within the framework of
Customs Cooperation Committee set up by the Association Council.

the
in order to resolve such
the

8.

The Agreement now needs to be signed and concluded. The Council is then invited:

–

to approve, on behalf of the Community, the Agreement in the form of an
exchange of letters between the Community and the Republic of Cyprus adding
a Protocol on mutual administrative assistance in customs matters to the
Association Agreement;

–

to designate a person authorised to sign the Agreement.

1

Council Regulation (EEC) No 1246/73 of 14 May 1973 – OJ L 133, 21.5.1973, p. 1.

2

2001/0057 (ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an exchange of letters
between the European Community and the Republic of Cyprus adding a Protocol on
mutual administrative assistance in customs matters to the Association Agreement
between the European Economic Community and the Republic of Cyprus

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

To allow mutual administrative assistance in customs matters between the
two parties as
the
European Economic Community and the Republic of Cyprus2, a Protocol should be
added to that Agreement.

the Association Agreement

provided

between

for

in

Negotiations to that effect have taken place with the Republic of Cyprus and have led
to an Agreement in the form of an exchange of letters, which it is in the Community's
interest to approve.

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of letters between the European Community
and the Republic of Cyprus adding a Protocol on mutual administrative assistance in
customs matters to the Association Agreement between the European Economic Community
and the Republic of Cyprus 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.

The President of the Council is hereby authorised to designate the persons authorised to sign
the Agreement in the form of an exchange of letters referred to in Article 1.

Article 2

1

2

OJ C ...
OJ L 133 21.5.1973, p. 1.

3

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

4

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and the Republic of Cyprus adding a Protocol on
mutual administrative assistance in customs matters to the Association Agreement

ANNEX

A. Letter from the European Community

Brussels,

Sir,

to refer

I have the honour
the
European Community and the Republic of Cyprus with a view to concluding an Agreement
on mutual administrative assistance in customs matters adding a Protocol
to the
Association Agreement of 19 December 1972.

to the negotiations between the representatives of

This Protocol,
the text of which is annexed hereto, will form an integral part of the
Association Agreement and will enter into force on the first day of the second month
following the date of notification that the necessary procedures have been accomplished.

I should be grateful if you would confirm the agreement of the Republic of Cyprus to
the foregoing.

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

On behalf of the European Community

5

B. Letter from the Republic of Cyprus

Nicosia

Sir,

I have the honour
following content:

to acknowledge receipt of your

letter of

today's date with the

to refer

"I have the honour
the
European Community and the Republic of Cyprus with a view to concluding an Agreement
on mutual administrative assistance in customs matters adding a Protocol
to the
Association Agreement of 19 December 1972.

to the negotiations between representatives of

This Protocol,
the text of which is annexed hereto, will form an integral part of the
Association Agreement and will enter into force on the first day of the second month
following the date of notification that the necessary procedures have been accomplished.

I should be grateful if you would confirm the agreement of the Republic of Cyprus to
the foregoing."

I can confirm the agreement of the Republic of Cyprus to the foregoing.

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

For the Republic of Cyprus

6

PROTOCOL

ON MUTUAL ADMINISTRATIVE ASSISTANCE

IN CUSTOMS MATTERS

ARTICLE 1

Definitions

For the purposes of this Protocol:

regulatory provisions adopted by the
"customs legislation" shall mean any legal or
Community or Cyprus governing the import, export and transit of goods and their placing
under any other customs regime or procedure, including measures of prohibition, restriction
and control;

"applicant authority" shall mean a competent administrative authority which has been designated
by a Contracting Party for this purpose and which makes a request for assistance on the basis of
this Protocol;

"requested authority" shall mean a competent administrative authority which has been designated
by a Contracting Party for this purpose and which receives a request for assistance on the basis of
this Protocol;

"personal data" shall mean all information relating to an identified or identifiable individual;

"operation in breach of customs legislation" shall mean any violation or attempted violation of
customs legislation.

ARTICLE 2

Scope

1.

2.

The Contracting Parties shall assist each other, in the areas within their competence,
in the manner and under the conditions laid down in this Protocol, to ensure the
correct application of
in particular by preventing,
investigating and combating operations in breach of that legislation.

the customs

legislation,

Assistance in customs matters, as provided for in this Protocol, shall apply to any
administrative authority of the Contracting Parties which is competent
for the
application of this Protocol. It shall not prejudice the rules governing mutual assistance
in criminal matters. Nor shall it cover information obtained under powers exercised at
the request of a judicial authority, except where communication of such information is
authorized by that authority.

3.

Assistance to recover duties, taxes or fines is not covered by this Protocol.

7

ARTICLE 3

Assistance on request

1.

At the request of the applicant authority, the requested authority shall provide it with all
relevant information which may enable it to ensure that customs legislation is correctly
applied, including information regarding activities noted or planned which are or could
be operations in breach of customs legislation.

2.

At the request of the applicant authority, the requested authority shall inform it:

(a)

(b)

whether goods exported from the territory of one of the Contracting Parties
have been properly imported into the territory of the other Contracting Party,
specifying, where appropriate, the customs procedure applied to the goods;

whether goods imported into the territory of one of the Contracting Parties have
been properly exported from the territory of the other Party, specifying, where
appropriate, the customs procedure applied to the goods.

3.

At the request of the applicant authority, the requested authority shall, within the
framework of its legal or regulatory provisions, take the necessary steps to ensure
special surveillance of:

(a)

(b)

(c)

(d)

natural or legal persons in respect of whom there are reasonable grounds for
believing that they are or have been involved in operations in breach of customs
legislation;

places where stocks of goods have been or may be assembled in such a way that
there are reasonable grounds for believing that these goods are intended to be
used in operations in breach of customs legislation;

goods that are or may be transported in such a way that there are reasonable
grounds for believing that they are intended to be used in operations in breach of
customs legislation;

means of transport that are or may be used in such a way that there are
reasonable grounds for believing that they are intended to be used in operations
in breach of customs legislation.

ARTICLE 4

Spontaneous assistance

The Contracting Parties shall assist each other, at their own initiative and in accordance with
their legal or regulatory provisions, if they consider that to be necessary for the correct
application of customs legislation, particularly by providing information obtained pertaining
to:

– activities which are or appear to be operations in breach of customs legislation and which

may be of interest to the other Contracting Party;

– new means or methods employed in carrying out operations in breach of customs legislation;

8

– goods known to be subject to operations in breach of customs legislation;

– natural or legal persons in respect of whom there are reasonable grounds for believing that

they are or have been involved in operations in breach of customs legislation;

– means of transport in respect of which there are reasonable grounds for believing that they

have been, are, or may be used in operations in breach of customs legislation.

ARTICLE 5

Delivery, Notification

At the request of the applicant authority, the requested authority shall, in accordance with legal
or regulatory provisions applicable to the latter, take all necessary measures in order:

– to deliver any documents or

– to notify any decisions,

emanating from the applicant authority and falling within the scope of this Protocol, to an
addressee residing or established in the territory of the requested authority.

Requests for delivery of documents or notification of decisions shall be made in writing in an
official language of the requested authority or in a language acceptable to that authority.

ARTICLE 6

Form and substance of requests for assistance

1.

Requests pursuant to this Protocol shall be made in writing. They shall be accompanied
by the documents necessary to enable compliance with the request. When required
because of the urgency of the situation, oral requests may be accepted, but must be
confirmed in writing immediately.

2.

Requests pursuant to paragraph 1 shall include the following information:

(a)

(b)

(c)

(d)

(e)

the applicant authority;

the measure requested;

the object of and the reason for the request;

the legal or regulatory provisions and other legal elements involved;

indications as exact and comprehensive as possible on the natural or legal
persons who are the target of the investigations;

(f)

a summary of the relevant facts and of the enquiries already carried out.

3.

Requests shall be submitted in an official language of the requested authority or in a
language acceptable to that authority. This requirement shall not apply to any
documents that accompany the request under paragraph 1.

9

4.

1.

2.

3.

4.

1.

2.

3.

1.

If a request does not meet the formal requirements set out above, its correction or
completion may be requested; in the meantime precautionary measures may be ordered.

ARTICLE 7

Execution of requests

In order to comply with a request for assistance, the requested authority shall proceed,
within the limits of its competence and available resources, as though it were acting on
its own account or at the request of other authorities of that same Contracting Party, by
supplying information already possessed, by carrying out appropriate enquiries or by
arranging for them to be carried out. This provision shall also apply to any other
authority to which the request has been addressed by the requested authority when the
latter cannot act on its own.

Requests for assistance shall be executed in accordance with the legal or regulatory
provisions of the requested Contracting Party.

Duly authorized officials of a Contracting Party may, with the agreement of the other
Contracting Party and subject to the conditions laid down by the latter, be present to
obtain in the offices of the requested authority or any other concerned authority in
accordance with paragraph 1, information relating to activities that are or may be
operations in breach of customs legislation which the applicant authority needs for the
purposes of this Protocol.

Duly authorized officials of a Contracting Party may, with the agreement of the other
Contracting Party and subject to the conditions laid down by the latter, be present at
enquiries carried out in the latter's territory.

ARTICLE 8

Form in which information is to be communicated

The requested authority shall communicate results of enquiries to the applicant
authority in writing together with relevant documents, certified copies or other items.

This information may be in computerized form.

Original documents shall be transmitted only upon request in cases where certified
copies would be insufficient. These originals shall be returned at
the earliest
opportunity.

ARTICLE 9

Exceptions to the obligation to provide assistance

Assistance may be refused or may be subject to the satisfaction of certain conditions or
requirements, in cases where a Party is of the opinion that assistance under this
Protocol would:

(a)

be likely to prejudice the sovereignty of Cyprus or that of a Member State
which has been requested to provide assistance under this Protocol; or

10

(b)

be likely to prejudice public policy, security or other essential interests, in
particular in the cases referred to under Article 10(2); or

(c)

violate an industrial, commercial or professional secret.

Assistance may be postponed by the requested authority on the ground that it will
interfere with an ongoing investigation, prosecution or proceeding. In such a case, the
requested authority shall consult with the applicant authority to determine if assistance
can be given subject to such terms or conditions as the requested authority may require.

Where the applicant authority seeks assistance which it would itself be unable to
provide if so requested, it shall draw attention to that fact in its request. It shall then be
for the requested authority to decide how to respond to such a request.

For the cases referred to in paragraphs 1 and 2, the decision of the requested authority
and the reasons therefor must be communicated to the applicant authority without
delay.

ARTICLE 10

Information exchange and confidentiality

Any information communicated in whatsoever form pursuant to this Protocol shall be
of a confidential or restricted nature, depending on the rules applicable in each of the
Contracting Parties. It shall be covered by the obligation of official secrecy and shall
enjoy the protection extended to similar information under the relevant laws of the
Contracting Party that received it and the corresponding provisions applying to the
Community authorities.

Personal data may be exchanged only where the Contracting Party which may receive it
undertakes to protect such data in at least an equivalent way to the one applicable to that
particular case in the Contracting Party that may supply it. To that end, contracting
parties shall communicate to each other
information on their applicable rules,
including, where appropriate, legal provisions in force in the Member States of the
Community.

The use, in judicial or administrative proceedings instituted in respect of operations in
breach of customs legislation, of information obtained under
is
considered to be for the purposes of this Protocol. Therefore, the Contracting Parties
may, in their records of evidence, reports and testimonies and in proceedings and
charges brought before the courts, use as evidence information obtained and documents
consulted in accordance with the provisions of this Protocol. The competent authority
which supplied that information or gave access to those documents shall be notified of
such use.

this Protocol,

Information obtained shall be used solely for the purposes of this Protocol. Where one
of the Contracting Parties wishes to use such information for other purposes, it shall
obtain the prior written consent of the authority which provided the information. Such
use shall then be subject to any restrictions laid down by that authority.

2.

3.

4.

1.

2.

3.

4.

11

ARTICLE 11

Experts and witnesses

An official of a requested authority may be authorized to appear, within the limitations of the
authorization granted, as an expert or witness in judicial or administrative proceedings regarding
the matters covered by this Protocol, and produce such objects, documents or certified copies
thereof, as may be needed for the proceedings. The request for appearance must indicate
specifically before which judicial or administrative authority the official will have to appear, on
what matters and by virtue of what title or qualification the official will be questioned.

ARTICLE 12

Assistance expenses

The Contracting Parties shall waive all claims on each other for the reimbursement of expenses
incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses,
and those to interpreters and translators who are not public service employees.

ARTICLE 13

Implementation

1.

2.

1.

The implementation of this Protocol shall be entrusted on the one hand to the customs
authorities of Cyprus and on the other hand to the competent services of the
Commission of the European Communities and the customs authorities of the Member
States as appropriate. They shall decide on all practical measures and arrangements
necessary for its application, taking into consideration the rules in force in particular in
the field of data protection. They may recommend to the competent bodies amendments
which they consider should be made to this Protocol.

The Contracting Parties shall consult each other and subsequently keep each other
informed of the detailed rules of implementation which are adopted in accordance with
the provisions of this Protocol.

ARTICLE 14

Other agreements

Taking into account the respective competencies of the European Community and the
Member States, the provisions of this Protocol shall:

– not affect the obligations of the Contracting Parties under any other international

agreement or convention;

– be deemed complementary to agreements on mutual assistance which have been or

may be concluded between individual Member States and Cyprus; and

– not affect the Community provisions governing the communication between the
competent services of the Commission of the European Communities and the
customs authorities of the Member States of any information obtained under this
Protocol which could be of interest to the Community.

12

2.

3.

Notwithstanding the provisions of paragraph 1, the provisions of this Protocol shall take
precedence over the provisions of any bilateral agreement on mutual assistance which
has been or may be concluded between individual Member States and Cyprus insofar as
the provisions of the latter are incompatible with those of this Protocol.

In respect of questions relating to the applicability of this Protocol, the Contracting
Parties shall consult each other to resolve the matter in the framework of the Customs
Cooperation Committee set up by the Association Council.

13

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal for a Council Decision concerning the conclusion of an Agreement in
the form of an exchange of letters between the European Economic Community
and the Republic of Cyprus adding a Protocol on mutual administrative
assistance in customs matters to the Association Agreement between the
European Economic Community and its Member States of the one part, and the
Republic of Cyprus, of the other part.

2.

BUDGET HEADING(S) INVOLVED

A7-7010

A7-7031

3.

LEGAL BASIS

Protocol

The
Association Agreement between the Community and Cyprus,
19 December 1972.

question was

negotiated

the

on

in

basis

of

the
signed on

Subsequently,
the parties agreed on a Protocol on mutual administrative
assistance in customs matters which now needs to be appended to the
Association Agreement by means of an agreement in the form of an exchange
of letters.

4.

DESCRIPTION OF OPERATION

The purpose of the Protocol
is the prevention, detection and prosecution,
through mutual assistance by the parties’ competent authorities, of activities
breaching customs legislation. This assistance mainly involves the forwarding of
information and documents on investigations and the surveillance of specific
individuals, goods, places or means of transport. The Protocol is of indefinite
duration and does not require renewal.

The Protocol will
Customs Cooperation Committee set up by the Association Council

administered within

framework

the

be

of

the

5.

CLASSIFICATION OF EXPENDITURE OR REVENUE

Non-compulsory expenditure.

14

6.

TYPE OF EXPENDITURE OR REVENUE

– Cost of Community missions to Cyprus every two years.

– Where required, any meeting costs not covered by the existing infrastructure.

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation (relation between individual
and total costs)

-

7.2

Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

Breakdown

year n

n+1

n+2

n+3

n+4

n+5
and
subs.
Yrs

Total

7.3

Operational expenditure for studies, experts etc. included in Part B of the
budget

Commitment appropriations EUR million (at current prices)

year n

n+1

n+2

n+3

n+4

Total

n+5
and
subs.
Yrs

– Studies

– Meetings of experts

– Information and
publications

Total

15

7.4

Schedule of commitment and payment appropriations

year n

n+1

n+2

n+3

n+4

EUR million

Total

n+5
and
subs.
yrs

Commitment appropriations

Payment appropriations

year n
n+1
n+2
n+3
n+4
n+5
and subs. yrs

Total

8.

FRAUD PREVENTION MEASURES

– Implementation of Community regulations.

9.

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Grounds for the operation :

The main aim is to protect the collection of traditional own resources. To that
end, a system will be set up to transmit information between the competent
authorities on transactions which are or appear to be against Community
customs legislation.

10.

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

Actual mobilisation of the necessary administrative resources will depend on the
Commission’s annual decision on the allocation of resources,
taking into
account the number of staff and additional amounts authorised by the budgetary
authority.

16

10.1

Effect on the number of posts

Type of post

Staff to be assigned to managing
the operation

Source

Duration

Permanent
posts

Temporary
posts

Officials or
temporary staff

Other resources

Total

A
B
C

0’1

0’1

Additional
resources

Not
determined.

Existing
resources in
the DG or
department
concerned

0’1

0’1

10.2

Overall financial impact of additional human resources

EUR

Amounts

Method of calculation

Officials

10 800

0’1 man-years at EUR 108 000 (unit cost), Title A

A-5 and A-7

Temporary staff

Other resources (indicate
budget heading)

Total

10 800

17

10.3

Increase in other administrative expenditure as a result of the operation

EUR

Budget heading

Amounts

Method of calculation

Working party meetings (once a year, alternately in Brussels and
Cyprus)

A-7010

3 800

- meetings held in Cyprus: 4-day mission for one Commission
official (EUR ... per official)

A-7031

p.m.

Working party: travel costs of Council representatives involved in
the working party will be met by the General Secretariat of the
Council.

Total

A-7010

A-7031

3 800

p.m.

In the years in which the working party meets in Cyprus.

The amounts given correspond to expenditure for 12 months (operation is indefinite).

NB:

Resources needed for missions undertaken by Commission officials will be
obtained by redeploying existing resources.

18