Proposal for a Council Regulation concerning providing detailed rules for the application of Article 12(2) of the Agreement in the form of an Exchange of Letters between the European Economic Community and the Principality of Andorra
Date: 2001-07-02
Institutions: European Commission
Subjects: Andorra, customs cooperation, import licence, manufactured goods, tobacco, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 02.07.2001
COM(2001) 360 final

2001/0144 (ACC)

Proposal for a

COUNCIL REGULATION

concerning providing detailed rules for the application of Article 12(2) of the Agreement
in the form of an Exchange of Letters between the European Economic Community and
the Principality of Andorra

(presented by the Commission)

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EXPLANATORY MEMORANDUM

Title I of the Agreement in the form of an Exchange of Letters between the European
Economic Community and the Principality of Andorra of 28 June 1990 establishes a
customs union for the products covered by Chapters 25 to 97 of the Harmonised
System. Title II defines the arrangements applicable to products not covered by the
customs union (Chapters 1 to 24 of the HS). Under these arrangements, which are
preferential and non-reciprocal, products which originate in the Principality of
Andorra are exempt from import duties when imported into the Community,
following the preferential rules of origin laid down in an Appendix, while
Community goods only enjoy most-favoured-nation status (Article 12(1)).

However, there is one category of Community goods eligible for a preferential tariff
rate (60% of the rate applied to products from third countries) when imported into
Andorra. Article 12(2) sets a preferential rate for manufactured tobacco products
covered by headings HS 24.02 and 24.03 made from raw tobacco which was in free
circulation in the Community. The preference granted to Community manufactured
tobaccos is thus based not on the Community preferential origin of these products,
but on their Community status combined with the fact that they were manufactured
within the Community from raw tobacco.

These products are not covered by the provisions concerning transit and status which
have been adopted by the Joint Committee. No provisions have been laid down
concerning the application of Article 12(2), and the result is a state of both legal and
practical uncertainty as to the modalities which should govern the granting of the
preference and the documentary evidence which has to be presented. There can be no
doubt that exporters requesting certificates of origins and T2s/T2Ls with a view to
obtaining preferential treatment by the Andorran authorities have been dealt with in a
range of different ways. It is therefore urgent to find a solution to this problem.

The Commission proposes that the problem should be solved by a Council regulation
that would make it possible for the Community customs authorities to issue a
certificate for the purposes of applying Article 12(2) to manufactured tobaccos being
exported to Andorra. For its part, the Principality of Andorra has agreed to issue a
decree laying down that the preferential rate should be granted to holders of the
certificate which can be found in Annex I.

Given the above, the Commission proposes that the Council should adopt
attached proposal for a regulation as soon as possible.

the

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2001/0144 (ACC)

Proposal for a

COUNCIL REGULATION

concerning providing detailed rules for the application of Article 12(2) of the Agreement
in the form of an Exchange of Letters between the European Economic Community and
the Principality of Andorra

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,1

Having regard to the Agreement in the form of an Exchange of Letters between the European
Economic Community and the Principality of Andorra,2 and in particular Article 12(2)
thereof;

Whereas:

(1)

In accordance with Article 12(2) of the aforementioned Agreement, products covered
by heading Nos. 24.02 and 24.03 of the Harmonised System which are manufactured
in the Community from raw tobacco and which meet the conditions of Article 3(1) of
the aforementioned Agreement are eligible, when imported into the Principality of
Andorra, for a preferential rate corresponding to 60% of the rate applied, in the
Principality of Andorra, for the same products vis-à-vis third countries;

(2)

Detailed rules for the application of Article 12(2) should be laid down in order to
ensure uniform interpretation and application of that article,

HAS ADOPTED THIS REGULATION:

Article 1

Scope

The products referred to in Article 12(2) of the Agreement in the form of an Exchange of
Letters between the European Economic Community and the Principality of Andorra,
hereafter referred to as the "Agreement", shall be eligible for the preferential rate when
imported into the Principality of Andorra on presentation of the certificate set out at Annex I.

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2

OJ C …
OJ L 374, 31.12.1990, p. 14. Agreement amended by the 1994 Act of Accession.

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Article 2

General conditions for issue

A certificate shall be issued by the customs authorities of the exporting state on
application having been made by the exporter or, under the exporter's responsibility,
by his authorised representative. For this purpose, the exporter or his authorised
representative shall fill out the certificate, a specimen of which appears in the annex.
The certificate shall be completed in one of the languages in which the Agreement is
drawn up.

A certificate shall be issued by the customs authorities of a Community Member
State if the products covered by heading Nos. 24.02 and 24.03 of the Harmonised
System are manufactured in the Community from raw tobacco in free circulation in
the Community.

The issuing customs authorities shall take any steps necessary to verify compliance
with the requirements. For this purpose, they shall have the right to call for any
evidence and to make any check considered appropriate. The issuing customs
authorities shall also ensure that the form is duly completed.

The exporter applying for the issue of a certificate shall be prepared to submit at any
time, at the request of the customs authorities of the exporting state where the
certificate is issued, all appropriate documents proving the necessary working and
the Community status of the goods as required by Article 12(2) of the Agreement.

The certificate shall be issued by the customs authorities and made available to the
exporter as soon as actual exportation has been effected or ensured. The issuing
authority shall keep a copy of the certificate.

The issuing customs authorities shall give a number to each certificate. Copies shall
bear the same number as the respective original.

Article 3

Prohibition of drawback of or exemption from customs duties

Raw tobacco in free circulation used in the manufacture of the goods for which a
certificate is issued or drawn up in accordance with Article 2 shall not be subject in
the Community to drawback of, or exemption from, customs duties of whatever kind.

The exporter of products covered by a certificate shall be prepared to submit at any
time, at the request of the Community customs authorities concerned, all appropriate
documents proving that no drawback has been obtained in respect of the imported
raw tobacco used in the manufacture of the products concerned and that all customs
duties or charges having equivalent effect applicable to the raw tobacco have actually
been paid.

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Article 4

Certificates issued retroactively

Notwithstanding Article 2(5), a certificate may in exceptional circumstances be
issued after exportation of the products to which it relates within a maximum of three
months from the date of export.

For the purposes of implementing paragraph 1, the exporter shall indicate in his
application the place and date of export of the products to which his application
relates together with the reasons for his application.

Certificates issued retroactively must bear one of the following endorsements in
Box 8:

Espedido a posteriori, Udstedt efterfølgende, Nachträglich ausgestellt,
των υστέρων

, Issued retroactively, Delivré a posteriori, Rilasciato a posteriori,
Achteraf afgegeven, Emitido a posteriori, Annettu jälkikäteen, Utfärdat i efterhand,
emes a posteriori

Εκδοθέν εκ

Article 5

Issue of a duplicate of the certificate

In the event of the theft, loss or destruction of a certificate, the exporter may apply to
the customs authorities that issued it for a duplicate to be made on the basis of the
export documents in their possession.

The duplicate shall bear one of the following endorsements in Box 8 of the duplicate:

, DUPLICATE, DUPLICATA,
DUPLICADO, DUPLIKAT,
DUPLICATO, DUPLICAAT, SEGUNDA VIA, KAKSOISKAPPALE, DUPLICAT

The duplicate, which shall bear the date of the original certificate, shall take effect on
that date.

Article 6

Validity of certificate

A certificate shall be valid for four months from the date of issue in the exporting
country and must be submitted within the said period to the customs authorities of
the importing country.

Certificates submitted to the customs authorities of the Principality of Andorra after
the final date for presentation specified in paragraph 1 may be accepted for the
purpose of applying the preference provided for in Article 12(2) of the Agreement
where the failure to submit these documents by the final date set is due to exceptional
circumstances or where the products were submitted to them before the said final
date.

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Article 7

Production of certificate

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2.

Application of the preferential rate must be requested by the importer at the time
when the customs debt is incurred.

Certificates shall be submitted to the customs authorities of the Principality of
Andorra in support of the customs declaration giving rise to the customs debt. The
authorities shall have the right to request a translation of a. certificate.

Article 8

Supporting documents

The documents referred to in Article 2(4) intended to establish that the products covered by
the certificate are eligible for the preferential rate provided for in Article 12(2) of the
Agreement and meet
the other conditions of this Regulation may be submitted in the
following forms:

a)

b)

1.

2.

1.

2.

proof of the Community status of the raw tobacco used, established in accordance
with the relevant Community provisions;

direct evidence of the processes carried out by the exporter or the supplier to obtain
the products concerned, contained for example in his accounts or
internal
bookkeeping.

Article 9

Preservation of certificates and supporting documents

An exporter applying for the issue of a certificate shall keep for at least three years
the documents referred to in Article 2(4).

The customs authorities of the Principality of Andorra shall keep for at least three
years the certificates submitted to them.

Article 10

Mutual assistance

The customs authorities of the Member States of the Community shall communicate,
via the Commission, specimens of the stamps used in their offices for the issue of
certificates and the addresses of the customs authorities responsible for verifying the
certificates.

In order to ensure the proper application of this Regulation, the customs authorities
of the Member States of the Community and Andorra shall mutually assist one
another in checking the authenticity and accuracy of the documents and the
regularity of the procedures set out in the previous articles.

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Article 11

Subsequent verification

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The subsequent verification of the certificates shall be carried out at random or
whenever the customs authorities of the Principality of Andorra have reasonable
doubts as to the authenticity of the documents,
the working required and the
Community status of the goods concerned or the fulfilment of the other requirements
of this Regulation.

For the purposes of implementing the provisions of paragraph 1,
the customs
authorities of the Principality of Andorra shall return the certificate to the customs
authorities of the exporting state, where appropriate giving the reasons of form or
substance for an inquiry. In support of their request for subsequent verification, they
shall provide all the documents or all the information obtained suggesting that the
particulars given on the certificate are inaccurate.

The verification shall be carried out by the customs authorities of the exporting
country. For this purpose they shall have the right to call for any evidence and carry
out any inspection of the exporter's accounts or any other check they consider
appropriate.

The customs authorities requesting the verification shall be informed of the results of
the verification as soon as possible. These results must indicate clearly whether the
documents are authentic and whether the products concerned fulfil the requirements
of Article 12(2).

If in cases of reasonable doubt there is no reply within ten months of the date of the
verification request or if the reply does not contain sufficient
information to
determine the authenticity of the document in question, the working required or the
Community status of the raw tobacco used, the customs authorities of the Principality
of Andorra shall refuse entitlement to the preferences.

Article 12

Penalties

Penalities shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information for the purpose of obtaining a preferential rate
for a product as provided for in Article 12(2) of the Agreement.

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Article 13

Final provisions

This Regulation shall enter into force on 1 October 2001.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council
The President

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CERTIFICATE FOR THE PURPOSES OF ARTICLE 12/2 EC/ANDORRA CUSTOMS UNION

ANNEX I

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1. Exporter (Name, full address, country)

CERTIFICATE FOR THE EXPORT OF TOBACCO
PRODUCTS OF HEADINGS 24.02 AND 24.03 TO
ANDORRA

No ...........................................................ORIGINAL........

3. Consignee (Name, full adress, country)

2. Closing date for presentation of export

NOTES:
A. This certificate must be made out in one original and one copy.

4. Invoice (s) No (s)

B. The original and the copy of the certificate must be submitted, for endorsement, to the customs office
at which the customs export formalities are completed.

C. The endorsed original must be presented to the customs authorities of Andorra.

5. Marks, number and kind of packages

6. Gross weight (kg)

7. Net weight (kg)

8. Remarks

9. CUSTOMS ENDORSEMENT

10. DECLARATION BY THE EXPORTER

Declaration certified

Export document

Form ....................................

I, the undersigned, declare that the tobacco products of headings
24.02 and/or 24.03 described above have been manufactured
entirely from raw tobacco which has been in free circulation in
the European Community. The goods described above meet the
conditions required for the issue of this certificate.

Stamp

no ......

Place………………, date…………………………………..

…………………………………………………………..
(Signature)

of ...........................................................

Customs office : .................................

Issuing country :......................................

.................................................................

Place............................, date....................

..................................................................

(Signature)

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11. Request for verification, to :

12. RESULT OF VERIFICATION

Verification carried out shows that this certificate (1)
(cid:1)

was issued by the Customs Office indicated and
that the.information contained therein is accurate

(cid:1)

does not meet the requirements as to authenticity
and accuracy (see remarks appended).

Verification of the authenticity and accuracy of this certificate
is requested.

Place................................................., date.................................

Place............................................, date...............................

Stamp

(Signature)

Stamp

(Signature)

_____________

(1) Insert X in the appropriate box.

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