Proposal for a Council Decision on the conclusion of an Additional Protocol to the Interim Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the outcome of the negotiations between the parties on reciprocal preferential concessions for certain wines and spirits, the reciprocal recognition, protection and control of wine names and the reciprocal recognition, protection and control of designations for spirits and aromatised drinks
Date: 2001-08-24
Institutions: European Commission
Subjects: Croatia, European Association Agreement, alcoholic beverage, generalised preferences, product designation, protocol to an agreement, wine

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 24.8.2001
COM(2001) 488 final

2001/0191 (ACC)

Proposal for a

COUNCIL DECISION 

on the conclusion of an Additional Protocol to the Interim Agreement between the
European Communities and their Member States, of the one part, and the Republic of
Croatia, of the other part, to take account of the outcome of the negotiations between
the parties on reciprocal preferential concessions for certain wines and spirits, the
reciprocal recognition, protection and control of wine names and the reciprocal
recognition, protection and control of designations for spirits and aromatised drinks

(presented by the Commission)

1. 

2. 

3. 

4. 

5. 

EXPLANATORY MEMORANDUM

The  Republic  of  Croatia,  the  other  former  Yugoslav  Republics  and  Albania  (since
2000) benefit from a duty-free access to the EU market for certain wines in the form
of a global quota of 545 000 hl. This quota is granted by the European Community
by means of an autonomous measure most recently renewed by Council Regulation
(EC)  No 2007/2000  of  18 September  2000  and  as  amended  by  Council  Regulation
(EC)  No 2563/2000  of  20 November  2000.  Exports  of  wine  from  the  European
Union to the Republic of Croatia do not benefit from preferential concessions.

On  13  November  2000,  the  Council  authorised  the  Commission  to  enter  into
negotiations  with  the  Republic  of  Croatia  on  a  wine  agreement  with  the  following
negotiation guidelines for:

– 

– 

– 

a bilateral trade agreement on wine for reciprocal concessions to distribute the
unilateral  global  quota  of  545 000  hl  allocated  to  the  states  which  had
previously  formed  part  of  the  former  Socialist  Federative  Republic  of
Yugoslavia and Albania,

an agreement on reciprocal recognition, protection and control of wine names,

an agreement on reciprocal recognition, protection and control of designations
of spirits and aromatized drinks.

On  20  November  2000  the  Council  authorised  the  Commission  to  enter  into
negotiations  for  a  Stabilisation  and  Association  Agreement  with  the  Republic  of
Croatia.  Article  27(4)  of  the  Stabilisation  and  Association  Agreement,  which  was
initialled on 14 May 2001 provides that the trade arrangements to apply to wine and
spirits products should be defined. 

Pending  the  completion  of  the  procedures  necessary  for  the  entry  into  force  of  the
Stabilisation  and  Association  Agreement,  the  provisions  relating  to  trade  and  trade
related matters will be put into effect by means of an Interim Agreement between the
Community and Croatia, initialled on 10 July 2001. Article 14(4) of the draft Interim
Agreement repeats the commitment to a wine and spirit protocol.

On 20 April 2001 and in accordance with the directives adopted by the Council the
Commission  and  the  Republic  of  Croatia  reached  an  agreement  on  the  new
preferential  trade  regime  for  certain  wines  and  spirit  drinks  and  the  reciprocal
protection and control of wine names and spirits designations. It is foreseen that the
protocol, composed of three agreements, should enter into force on 1 January 2002.
In order to ensure consistency within the overall stabilisation process, the results of
these negotiations on wines and spirits should be integrated into the framework of the
Stabilisation and Association Agreement  and of  the  Interim Agreement in the form
of an Additional Protocol. Regulation (EC) No 2007/2000 of 18 September 2000, as
last amended by Regulation (EC) No 2563/2000 of 20 November 2000, will have to
be amended accordingly to take account of the yearly quota allocated to Croatia.

2

6. 

The  purpose  of  these  proposals  is  to  ask  the  Council  to  approve  these  agreements
with  the  Republic  of  Croatia  in  the  form  of  an  Additional  Protocol  to  the
Stabilisation and Association Agreement initialled on 14 May 2001 and in the form
of an Additional Protocol to the Interim Agreement initialled on 10 July 2001. 

7. 

The Council is requested to adopt the proposed Decisions.

3

2001/0191 (ACC)

Proposal for a

COUNCIL DECISION 

on the conclusion of an Additional Protocol to the Interim Agreement between the
European Communities and their Member States, of the one part, and the Republic of
Croatia, of the other part, to take account of the outcome of the negotiations between
the parties on reciprocal preferential concessions for certain wines and spirits, the
reciprocal recognition, protection and control of wine names and the reciprocal
recognition, protection and control of designations for spirits and aromatised drinks

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 the first subparagraph of Article 300(2),
and Article 300(4) thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

The Stabilisation and Association Agreement, establishing an association between the
European Communities and their Member States, of the one part, and the Republic of
Croatia,  of  the  other,  hereinafter  referred  to  as  the  Stabilisation  and  Association
Agreement,  was  initialled  on  14  May  2001.  Article  27(4)  of  the  Stabilisation  and
Association  Agreement  provides  that  the  trade  arrangements  to  apply  to  wine  and
spirits products still ought to be defined. 

An  Interim  Agreement  will  ensure  the  development  of  trade  links  through  the
establishment of a contractual relation and shall implement as speedily as possible the
provisions of the Stabilisation and Association  Agreement  on  trade  and  trade-related
matters. This  Interim Agreement was initialled on 10 July 2001. Article 14(4) of the
draft  Interim  Agreement  repeats  the  commitment  to  a  separate  wine  and  spirits
protocol.

In accordance with the Directives adopted by the Council on 13 November 2000, the
Commission and the Republic of Croatia reached agreement on 20 April 2001 on new
reciprocal  trade  concessions  for  certain  wines  and  on  the  reciprocal  recognition,
protection  and  control  of  wine  names  and  spirits  designations.  In  order  to  ensure
consistency  within  the  overall  stabilisation  process,  the  results  of  these  negotiations
should be integrated  into the  framework of the  Interim Agreement  in the form  of  an
Additional Protocol. 

1

OJ C , p. .

4

                                                
(4)

(5)

(6)

Provisions  to  adopt  the  implementing  Regulations  on  preferential  trade  concessions
provided  for  certain  wines,  should  be  made  by  the  Commission,  assisted  by  the
Customs  Code  Committee  set  up  by  Article  248a  of  Council  Regulation  (EEC)
No 2913/92  establishing  the  Community  Customs  Code2,  notwithstanding  Article  62
of  Council  Regulation  (EC)  No 1493/1999  of  17  May  1999  on  the  common
organisation  of  the  market  in  wine3.  The  Commission  shall  make  the  necessary
amendments and technical adaptations to the implementing Regulations  which might
result from new preferential agreements, protocols, Exchanges of Letters or other acts
concluded  between  the  European  Community  and  the  Republic  of  Croatia,  or  which
are necessary following the changes to the Combined Nomenclature and Taric codes.

In  order  to  facilitate  the  implementation  of  certain  provisions  of  the  Protocol,  the
Commission should be authorised to approve, on behalf of the Community, decisions
establishing or amending the Annexes and  Protocols  to  the  Agreement  on  reciprocal
recognition, protection and control of wine names (Annex 2 to the Protocol) and to the
Agreement on reciprocal recognition, protection and control of designations of spirits
and  aromatized  drinks  (Annex 3  to  the  Protocol).  In  adopting  these  acts,  the
Commission should be assisted by the Management Committee for Wine instituted by
Article 74  of  Regulation  (EC)  No 1493/1999,  respectively  by  the  Implementation
Committee  for  Spirit  Drinks  instituted  by  Article 13  of  Council  Regulation  (EEC)
No 1576/89 of 29 May 1989 laying down general rules on the definition, description
and presentation of spirit drinks4. 

Since the measures necessary for the implementation of this Decision are management
measures  within  the  meaning  of  Article  2  of  Council  Decision  1999/468/EC  of
28 June  1999  laying  down  the  procedures  for  the  exercise  of  implementing  powers
conferred  on  the  Commission5,  they  should  be  adopted  by  use  of  the  management
procedure provided for in Article 4 of that Decision.

HAS DECIDED AS FOLLOWS: 

Article 1

The “Additional Protocol to the Interim Agreement between the European Communities and
their Member  States, of the one part, and the Republic of Croatia,  of the other  part,  to  take
account  of  the  outcome  of  the  negotiations  between  the  parties  on  reciprocal  preferential
concessions for certain wines and spirits, the reciprocal recognition, protection and control of
wine names and the reciprocal recognition, protection and control of designations for spirits
and  aromatised  drinks”  (hereinafter  referred  to  as  "the  Protocol"),  is  hereby  approved  on
behalf of the Community.

The text of the Protocol is attached to this Decision.

2

3

4

5

OJ  L  302,  19.10.1992,  p.  1.  Regulation  last  amended  by  Regulation  (EC)  No  2700/2000  (OJ  L  311,
12.12.2000, p. 17).
OJ L 179, 14.7.1999, p. 1.
OJ L 160, 12.6.1989, p. 1.
OJ L 184, 17.7.1999, p. 23.

5

                                                
Article 2

1.

2.

The President of the Council is hereby authorised to designate the person empowered
to sign the Protocol on behalf of the Community. 

The  President  of  the  Council  shall,  on  behalf  of  the  Community,  make  the
notification of approval provided for in Article 3 of the Protocol.

Article 3

Provisions for the application of the tariff quotas for certain wines provided in Annex 1 to the
Protocol, as well as amendments and technical adaptations to  the  implementing Regulations
necessary  following  changes  to  the  Combined  Nomenclature  codes  and  to  the  Taric-
subdivisions  or  arising  from  the  conclusion  of  new  agreements,  protocols,  Exchanges  of
Letters or other acts between the Community and the Republic of Croatia, shall be adopted by
the Commission according to the procedure set out in Article 4, notwithstanding Article 62 of
Council Regulation (EC) No 1493/1999.

Article 4

1.

2.

3.

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  instituted  by
Article 248a of Regulation (EEC) No 2913/92. 

Where  reference  is  made  to  this  paragraph,  Articles  4  and  7  of  Decision
1999/468/EC shall apply. 

The  period  provided  for  in  Article  4(3)  of  Decision  1999/468/EC  shall  be  three
months.

Article 5

For  the  purposes  of  Articles  13  and  14  of  the  Agreements  on  the  reciprocal  recognition,
protection  and  control  of  wine  names,  the  Commission  shall  conclude  the  necessary  acts
amending the Agreement according to the procedure set out in Article 6.

Article 6

1.

2.

3.

The Commission shall be assisted by the Management Committee for Wine instituted
by Article 74 of Regulation (EC) No 1493/1999.

Where reference is made to this paragraph, the management procedure laid down in
Article  4  of  Decision  1999/468/EC  shall  apply,  in  compliance  with  Article  7(3)
thereof. 

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

6

Article 7

For  the  purposes  of  Articles  13  and  14  of  the  Agreement  on  the  reciprocal  recognition,
protection and control of designations for spirits and aromatised drinks, the Commission shall
conclude  the  necessary  acts  amending  the  Agreement  according  to  the  procedure  set  out  in
Article 8.

Article 8

1.

2.

3.

The  Commission  shall  be  assisted  by  the  Implementation  Committee  for  Spirits
Drinks instituted by Article 13 of Regulation (EEC) No 1576/89. 

Where reference is made to this paragraph, the management procedure laid down in
Article  4  of  Decision  1999/468/EC  shall  apply,  in  compliance  with  Article  7(3)
thereof. 

The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

Article 9

This Decision shall be published in the Official Journal of the European Communities.

Done at Brussels, 

For the Council
The President

7

ATTACHMENT

ADDITIONAL PROTOCOL

BETWEEN THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES, OF
THE ONE PART, AND THE REPUBLIC OF CROATIA, OF THE OTHER PART, TO
TAKE ACCOUNT OF THE OUTCOME OF THE NEGOTIATIONS BETWEEN THE
PARTIES ON RECIPROCAL PREFERENTIAL CONCESSIONS FOR CERTAIN
WINES AND SPIRITS, THE RECIPROCAL RECOGNITION, PROTECTION AND
CONTROL OF WINE NAMES AND THE RECIPROCAL RECOGNITION,
PROTECTION AND CONTROL OF DESIGNATIONS FOR SPIRITS
AND AROMATISED DRINKS

THE EUROPEAN COMMUNITY, hereinafter referred to as “the Community”,

of the one part, and

THE REPUBLIC OF CROATIA, hereinafter referred to as “Croatia”,

of the other part,

hereinafter referred to as “the Contracting Parties”,

WHEREAS the Stabilisation and Association Agreement between the European Communities
and their Member States, of the one part, and the Republic of Croatia, of the other part, was
initialled in Brussels on 14 May 2001,

WHEREAS Article 27(4) of the Stabilisation and Association Agreement provides that a wine
and spirits agreement still ought to be negotiated,

WHEREAS  an  Interim  Agreement  shall  ensure  the  development  of  trade  links  through  the
establishment  of  a  contractual  relation  and  shall  implement  as  speedily  as  possible  the
provision of the Stabilisation and Association Agreement on trade and trade-related matters.
This  Interim  Agreement  was  initialled  on  10  July  and  will  enter  into  force  at  the  latest  by
1 January  2002.  Article  14(4)  of  the  draft  Interim  Agreement  repeats  the  commitment  to  a
separate wine and spirits protocol,

WHEREAS on this basis negotiations have been undertaken and were concluded between the
Parties,

WHEREAS in order  to ensure consistency  within the  overall  stabilisation process,  the  wine
and spirits agreement should be integrated into the framework of the Interim Agreement in the
form of a Protocol,

WHEREAS this Protocol on wines and spirits shall enter into force on 1 January 2002,

WHEREAS to this end it is necessary to implement as speedily as possible the provisions of
this Protocol,

8

DESIROUS  of  improving  the  conditions  for  the  marketing  of  wines,  spirits  and  aromatised
drinks on their respective markets, in accordance with the principles of quality, mutual benefit
and reciprocity,

HAVING  REGARD  to  the  interest  of  both  Contracting  Parties  in  the  reciprocal  protection
and control of wine names, designations for spirits and aromatised drinks,

HAVE AGREED AS FOLLOWS:

Article 1

A  Protocol  applicable  for  import  of  certain  wines  originating  in  Croatia  and  for  import  of
certain  wines  originating  in  the  Community  has  been  established,  including  the  following
elements:

(1)

(2)

(3)

an  Agreement  on  reciprocal  trade  concessions  for  certain  wines  (as  described  in
Annex 1 to this Protocol).

an  Agreement  on  reciprocal  recognition,  protection  and  control  of  wine  names  (as
described in Annex 2 to this Protocol).

an  Agreement  on  reciprocal  recognition,  protection  and  control  of  designations  of
spirits and aromatized drinks (as described in Annex 3 to this Protocol).

The lists referred to in Article 5 of the Agreement mentioned under (2) and in Article 5 of the
Agreement mentioned under (3) shall be established at a later stage and approved according to
the procedure foreseen in the respective Articles 13 and 14 of these Agreements.

This  Protocol  shall  form  an  integral  part  of  the  Interim  Agreement.  The  Annexes  to  this
Protocol shall form an integral part thereof.

Article 2

Article 3

This Protocol shall be approved by the Community and the Republic of Croatia in accordance
with  their  own  procedures.  The  Contracting  Parties  shall  take  the  necessary  measures  to
implement this Protocol. 

The Contracting Parties shall notify each other of  the  accomplishment  of  the  corresponding
procedures according to the first paragraph of Article 3.

This Protocol shall enter into force on 1 January 2002. 

Article 4

9

Article 5

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish and Croatian languages, each of these
texts being equally authentic.

Done at Brussels, 

For the European Community

For the Republic of Croatia

10

ANNEX 1

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF CROATIA
ON RECIPROCAL PREFERENTIAL TRADE CONCESSIONS FOR CERTAIN WINES

1.

Imports into the Community of the following products originating in the Republic of
Croatia shall be subject to the concessions set out below:

CN code

Description

ex 2204 10

Quality sparkling wine

ex 2204 21

Wine of fresh grapes

Applicable
duty

Year 2002
quantities
(hl)

Yearly
increase
(hl)

Specific
provisions

exemption

30 000

10 000

(1)(2)

ex 2204 29 Wine of fresh grapes 

exemption

15 000

0

(2)

Subject  to  at  least  80%  of  the  eligible  quantity  having  been  utilised  in  the  previous  year,  the  yearly
increase is applied until the sum of the quota applying to position ex 2204 10 and ex 2204 21 and the
quota applying to position ex 2204 29 reaches a maximum of 70 000 hl.
Consultations  at  the  request  of  one  of  the  Contracting  Parties  may  be  held  to  adapt  the  quotas  by
transfering quantities from the quota applying to position ex 2204 29 to the quota applying to positions
ex 2204 10 and ex 2204 21.

The Community shall grant a preferential zero-duty within tariff quotas as mentioned
under  point  1,  subject  to  the  condition  that  no  export  subsidies  shall  be  paid  for
exports of these quantities by the Republic of Croatia.

Imports  into  the  Republic  of  Croatia  of  the  following  products  originating  in  the
Community shall be subject to the concessions set out below :

Croatian
customs
tariff code

Description

Applicable
duty

Year 2002
quantities
(hl)

Yearly
increase
(hl)

Specific
provisions

ex 2204 10

Quality sparkling wine

ex 2204 21

Wine of fresh grapes

exemption

8 000

800

(1)

Subject  to  at  least  80%  of  the  eligible  quantity  having  been  utilised  in  the  previous  year,  the  yearly
increase is applied until the quota reaches a maximum of 12 000 hl.

The  Republic  of  Croatia  shall  grant  a  preferential  zero-duty  within  tariff  quotas  as
mentioned  under  point  3,  subject  to  the  condition  that  no  export  subsidies  shall  be
paid for exports of these quantities by the Community.

(1)

(2)

2.

3.

(1)

4.

11

5.

This Agreement shall cover wine 

(a) which has been produced from fresh grapes wholly produced and harvested in

the territory of the Contracting Party in question, and

(b)

(i)

originating in the EU, which  has  been  produced  in  accordance  with  the
rules  governing  the  oenological  practices  and  processes  referred  to  in
Title V of Council Regulation (EC) No 1493/1999;

(ii)

originating  in  the  Republic  of  Croatia,  which  has  been  produced  in
accordance  with  the  rules  governing  the  oenological  practices  and
processes  in  conformity  with  the  Croatian  law.  These  oenological  rules
referred to shall be in conformity with the Community legislation.

6.

7.

8.

9.

10.

Imports of wine under the concessions provided in this Agreement will be subject to
the  presentation  of  a  certificate  issued  by  a  mutually  recognised  official  body
appearing  on  the  lists  drawn  up  jointly,  to  the  effect  that  the  wine  in  question
complies with point 5(b).

The Contracting Parties shall examine  no  later  than  in  the  first  quarter  of  2005  the
opportunities  for  granting  each  other  further  concessions  taking  into  account  the
development of wine trade between the Contracting Parties.

The  Contracting  Parties  shall  ensure  that  the  benefits  granted  reciprocally  are  not
called into question by other measures.

Consultations  are  to  take  place  at  the  request  of  either  Contracting  Party  on  any
problem relating to the way this Agreement operates.

This Agreement shall apply,  on  the  one hand, in  the  territories in  which  the Treaty
establishing the European Community is applied and under the conditions laid down
in that Treaty and, on the other hand, in the territory of the Republic of Croatia.

12

ANNEX 2

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF CROATIA ON
THE RECIPROCAL RECOGNITION, PROTECTION AND CONTROL OF WINE NAMES

ARTICLE 1

OBJECTIVES

1.

2.

The  Contracting  Parties  hereby  agree,  in  accordance  with  the  principles  of  non-
discrimination  and  reciprocity,  to  recognise,  protect  and  control  names  of  wines
originating in their territory on the conditions laid down herein.

The  Contracting  Parties  shall  take  all  general  and  specific  measures  necessary  to
ensure  that  the  obligations  laid  down  by  this  Agreement  are  fulfilled  and  that  the
objectives set out in this Agreement are attained.

ARTICLE 2

SCOPE AND COVERAGE

This  Agreement  shall  apply  to  wines  falling  under  heading  No  2204  of  the  International
Convention  on  the  Harmonised  Commodity  Description  and  Coding  System  (“Harmonised
System”), done at Brussels on 14 June 1983. 

ARTICLE 3

DEFINITIONS

For the purposes of this Agreement and except where otherwise expressly provided herein:

(a)

(b)

(c)

"wine originating in" followed by the name of one of the Contracting Parties means a
wine produced in the territory of the said Party from grapes which have been wholly
harvested in its territory;

"geographical  indication"  means  any  indication,  including  an  “Appellation  of
origin”,  as  defined  in  Article 22(1)  of  the  Agreement  on  Trade  Related  Aspects  of
Intellectual Property Rights (hereinafter referred to as "the TRIPS agreement"), that
is  recognised  by  the  laws  or  regulations  of  a  Contracting  Party  for  the  purpose  of
describing  and  presenting  a  wine  originating  in  the  territory  of  that  Contracting
Party;

"traditional expression" means a traditionally used name, as specified in the Annex,
referring in particular to the method of production or to the quality, colour or type of
wine which is sufficiently distinctive and/or of established reputation and recognised
by the laws and regulations of a Contracting Party for the purpose of describing and
presenting of such a wine originating in the territory of that Contracting Party;

13

(d)

(e)

(f)

(g)

(h)

(i)

"protected  name"  means  a  geographical  indication  or  a  traditional  expression  as
defined in paragraphs (b) and (c) respectively that is protected under this Agreement;

"homonymous" shall mean the same protected name, or a protected name so similar
as  to  be  likely  to  cause  confusion,  to  denote  different  places  of  origin,  or  different
wines originating in the respective territories of the Contracting Parties;

"description"  means  the  words  used  to  describe  a  wine  on  a  label,  or  on  the
documents  accompanying  the  transport  of  that  wine,  on  commercial  documents,
particularly invoices and delivery notes, and in advertising;

"labelling" means all descriptions and other references , signs, designs or trade marks
identifying a wine and appearing on the container, including its sealing device or the
tag attached thereto and the sheathing covering the neck of bottles;

"presentation" means the words or signs used on containers, including their closure,
on the labelling and on the packaging;

"packaging"  means  the  protective  wrappings  such  as  paper,  straw  envelopes  of  all
kinds, cartons and cases, used in the transport of one or more containers  and/or for
their presentation for sale to the final consumer;

(j)

"trade mark" shall mean:

– 

– 

– 

a trade mark registered in terms of the legislation of a Contracting Party,

a common law trade mark which is recognised under the law of a Contracting
Party; and

a well-known trademark referred to in Article 6bis of the Paris Convention for
the Protection of Industrial Property (1967).

14

TITLE I

RECIPROCAL PROTECTION OF WINE NAMES

ARTICLE 4

PRINCIPLES

1.

Without  prejudice  to  Articles  22  and  23  of  the  TRIPS  Agreement,  set  out  in
Annex 1C  of  the  Agreement  establishing  the  World  Trade  Organisation,  the
Contracting Parties shall take all necessary measures, in accordance with this Annex,
to ensure reciprocal protection of the names referred to in Article 5 which are used
for  the  description  and  presentation  of  wines  originating  in  the  territory  of  the
Contracting Parties. To that end, each Contracting Party shall provide the interested
parties  with  the  appropriate  legal  means  to  ensure  effective  protection  and  prevent
geographical  indications  and  traditional  expressions  from  being  used  to  identify
wines not covered by the indications or the descriptions concerned.

2.

In Croatia, the protected Community names:

(a)

are  reserved  exclusively  to  the  wines  originating  in  the  Community  to  which
they apply, and

(b) may not be used otherwise than under the conditions laid down in the laws and

regulations of the Community.

3.

In the Community, the protected Croatian names:

(a)

are  reserved  exclusively  to  the  wines  originating  in  Croatia  to  which  they
apply, and

(b) may not be used otherwise than under the conditions laid down in the laws and

regulations of the Croatia.

4.

The protection provided for in this Agreement shall prohibit in particular any use of
protected names for wines which do not originate in the geographical area indicated
or in the place where the expression is traditionally used, and shall apply even when:

– 

– 

– 

the true origin of the wine is indicated,

the geographical indication in question is used in translation,

the  name  is  accompanied  by  terms  such  as  'kind',  'type',  'style',  'imitation',
'method' or other expressions of the sort.

5.

In the case of homonymous geographical indications:

(a) where  such  indications  protected  under  this  Agreement  are  homonymous,
protection  shall  be  granted  to  each  indication,  provided  it  has  been  used
traditionally and consistently and consumers are not misled as to the true origin
of the wine;

15

(b) where such indications protected under this Agreement are homonymous with
the  name  of  a  geographical  area  outside  the  territory  of  the  Parties,  the  latter
name may be used to describe and present a wine produced in the geographical
area to which the name refers, provided it is traditionally and consistently used,
its use for that purpose is regulated by the country of origin and consumers are
not  misled into believing  that  the wine  originates  in  the  territory  of  the  Party
concerned.

6.

In the case of homonymous traditional expressions:

(a) where  such  expressions  protected  under  this  Agreement  are  homonymous,
protection  shall  be  granted  to  each  expression,  provided  it  has  been  used
traditionally and consistently and consumers are not misled as to the true origin
of the wine;

(b) where such expressions protected under this Agreement are homonymous with
the name used for a wine not originating in the territory of the Parties, the latter
name may be used to describe and present a wine, provided it is traditionally
and  consistently  used,  its  use  for  that  purpose  is  regulated  by  the  country  of
origin and consumers are not misled into believing that the wine originates in
the territory of the Party concerned.

Each  of  the  Contracting  Parties  shall,  where  necessary,  lay  down  the  practical
conditions  of  use  to  enable  a  distinction  to  be  drawn  between  the  homonymous
indications or expressions referred to in paragraphs 5 and 6, bearing in mind the need
to treat the producers concerned fairly and to ensure that consumers are not misled.

The provisions of this Agreement shall in no way prejudice the right of any person to
use, in the course of trade, their name or the name of their predecessor in business,
except where such name is used in such a manner as to mislead consumers.

Nothing in this Agreement shall oblige a Contracting Party to protect a geographical
indication  or  traditional  expression  of  the  other  Contracting  Party  which  is  not  or
ceases to be protected in its country of origin or which has fallen into disuse in that
country.

7.

8.

9.

10.

The Contracting Parties hereby waive their right to invoke Article 24(4) to (7) of the
TRIPs  Agreement  in  order  to  refuse  to  grant  protection  to  a  name,  from  the  other
Party, for products covered by this agreement.

ARTICLE 5

PROTECTED NAMES

The following names shall be protected with regard to wines:

(a)

originating in the Community:

– 

– 

references to the name of the Member State in which the wine originates,

the  geographical  indications  and  traditional  expressions  appearing  in  the
Annex;

16

(b)

originating in Croatia:

– 

– 

the name “Croatia” or any other name designating that country,

the  geographical  indications  and  traditional  expressions  appearing  in  the
Annex.

ARTICLE 6

TRADEMARKS

1.

2.

The registration of a trade mark for a wine which contains or consists of a protected
name under this Agreement shall be refused or, at the request of the party concerned,
invalidated if:

– 

the wine in question does not originate in the place to which the geographical
indication refers

or, as the case may be,

– 

the wine in question is not one to which the traditional expression is reserved.

However, a trade mark registered in good faith no later than 31 December 1995 may
be  used  until  31  December  2005,  provided  it  has  actually  been  in  continuous  use
since being registered.

ARTICLE 7

EXPORTS

The Contracting Parties shall take all measures necessary to ensure that in cases where wines
originating  in  the  Contracting  Parties  are  exported  and  marketed  outside  of  their  territories,
the protected names of one Contracting Party referred to in article 5 are not used to describe
and present a wine originating in the other Contracting Party.

ARTICLE 8

EXTENSION OF PROTECTION

In  so  far  as  the  relevant  legislation  of  the  Contracting  Parties  permits,  the  benefit  of  the
protection afforded by this Agreement shall extend to natural and legal persons, federations,
associations  and  organisations  of  producers,  traders  or  consumers  whose  head  offices  are
located in the territory of the other Contracting Party.

ARTICLE 9

ENFORCEMENT

1.

If  the  appropriate  competent  authority,  designated  in  accordance  with  Article  11,
becomes  aware  that  the  description  or  presentation  of  a  wine,  in  particular  on  the
labelling, in official or commercial documents or in advertising, is in breach of this
Agreement,  the  Contracting  Parties  shall  apply  the  necessary  administrative

17

measures  and/or  shall  initiate  legal  proceedings  with  a  view  to  combating  unfair
competition or preventing the wrongful use of the protected name in any other way.

2.

The measures and proceedings referred to in paragraph 1 shall be taken in particular
in the following cases:

(a) where the  translation of descriptions  provided  for  by  Community  or  Croatian
legislation into the language or languages of the other Contracting Party results
in the appearance of a word which is liable to be misleading  as  to  the  origin,
nature or quality of the wine thus described or presented;

(b) where  descriptions,  trade  marks,  names,  inscriptions  or  illustrations  which
directly or indirectly give false or misleading information as to the provenance,
origin,  nature,  vine  variety  or  material  qualities  of  the  wine  appear  on
containers or packaging, in advertising or in official or commercial documents
relating to wines whose names are protected under this Agreement;

(c) where, for packaging, containers are used which are misleading as to the origin

of the wine.

3.

The  application  of  paragraphs  1  and  2  shall  not  prejudice  the  possibilities  of  the
persons  and  entities  referred  to  in  Article  8  to  take  appropriate  actions  in  the
Contracting Parties, including recourse to the courts.

ARTICLE 10

OTHER INTERNAL LEGISLATION AND INTERNATIONAL AGREEMENTS

Unless  otherwise  agreed  by  the  Contracting  Parties,  this  Agreement  shall  not  preclude  any
more  extensive  protection  afforded,  now  or  in  the  future,  to  names  protected  by  this
Agreement,  by  the  Contracting  Parties  under  their  internal  legislation  or  other  international
agreements.

18

TITLE II

CONTROLS AND MUTUAL ASSISTANCE
BETWEEN COMPETENT AUTHORITIES

ARTICLE 11

ENFORCEMENT AUTHORITIES 

1.

2.

Each  Contracting  Party  shall  designate  the  authorities  to  be  responsible  for  the
application of this Agreement. Where a Contracting Party designates more than one
competent authority, it shall ensure the co-ordination of the work of these authorities.
For this purpose, a single authority shall be designated.

The Contracting Parties shall inform one another of the names and addresses of these
authorities  not  later  than  two  months  after  this  Agreement  comes  into  force.  There
shall be close and direct co-operation between these authorities.

ARTICLE 12

INFRINGEMENT

1.

If one of the authorities referred to in Article 11 has reason to suspect that:

(a)

a wine being or having been traded between Croatia and the Community, does
not comply with this Agreement or with provisions laid down in the laws and
regulations of the Contracting Parties, and 

(b)

this non-compliance is of particular interest to the other Contracting Party and
could result in administrative measures and/or legal proceedings being taken,

it shall immediately inform the Commission and the relevant authority or authorities
of the other Party.

2.

The information to be provided in accordance with paragraph 1 shall be accompanied
by  official,  commercial  or  other  appropriate  documents,  with  details  of  any
administrative  measures  or  legal  proceedings  that  may,  if  necessary,  be  taken.  The
information shall include, in particular, the following details concerning the wine in
question:

(a)

the producer and the person who has power of disposal over this wine;

(b)

the composition and organoleptic characteristics of this wine;

(c)

its description and presentation;

(d)

details  of  the  non-compliance  with  the  rules  concerning  production  and
marketing.

19

TITLE III

MANAGEMENT OF THE AGREEMENT

ARTICLE 13

WORKING GROUP

1.

2.

1.

2.

Pending  the  entry  into  force  of  the  Stabilisation  and  Association  Agreement,  a
Working  Group,  functioning  under  the  auspices  of  a  special  Committee  on
Agriculture  to  be  created  in  accordance  with  Article  41  of  the  Interim  Agreement,
shall be established.

The Working Group shall see to the proper functioning of this Agreement and shall
examine all questions which may arise in implementing it. In particular, the Working
Group may make recommendations which would contribute to the attainment of the
objectives of this Agreement.

ARTICLE 14

TASKS OF THE CONTRACTING PARTIES

The Contracting Parties shall, either directly or through the Working Group, referred
to in Article 13, maintain contact on all matters  relating to the  implementation  and
the functioning of this Agreement.

In particular, the Contracting Parties shall:

(a)

(b)

(c)

establish and amend the Annexes and the Protocol of this Agreement by mutual
decision to take account of any amendments to the laws and regulations of the
Contracting Parties;

inform each other of the intention to decide new regulations or amendments of
existing  regulations  of  public  policy  concern,  such  as  health  or  consumer
protection, with implications for the wine market;

notify  each  other  of  judicial  decisions  concerning  the  application  of  this
Agreement  and  inform  each  other  of  measures  adopted  on  the  basis  of  such
decisions,

(d)

consult with each other, if necessary, on the decisions taken with regard to the
application of Article 4(7).

3.

Within the framework of this Agreement, either of the  Contracting  Parties  may  put
forward suggestions for widening the scope of their co-operation in the wine market,
taking into account the experience gained in its application.

20

TITLE IV

GENERAL PROVISIONS

ARTICLE 15

TRANSIT SMALL QUANTITIES

This Agreement shall not apply to wines which:

(a)

(b)

pass in transit through the territory of one of the Contracting Parties, or

originate in the territory of one of the Contracting Parties and which are consigned in
small  quantities  between  those  Contracting  Parties  under  the  conditions  and
according to the procedures provided for in the Protocol.

ARTICLE 16

TERRITORIAL APPLICATION

This Agreement shall apply, on the one hand, to the territories to which the Treaty establishing
the European Community applies and under the conditions laid down in that treaty and, on the
other hand, to the territory of the Republic of Croatia.

ARTICLE 17

FAILURE TO COMPLY

1.

2.

3.

4.

The  Contracting  Parties  shall  enter  into  consultations  if  one  of  them  considers  that
the other has failed to fulfil an obligation under this Agreement. 

The Contracting Party which requests the consultations shall provide the other Party
with all the information necessary for a detailed examination of the case in question. 

In cases where any delay could endanger human health or impair the effectiveness of
measures  to  control  fraud,  appropriate  interim  protective  measures  may  be  taken,
without prior consultation, provided that consultations are held immediately after the
taking of these measures. 

If,  following  the  consultations  provided  for  in  paragraphs  1  and  3,  the  Contracting
Parties have  not  reached agreement,  the Party  which  requested  the  consultations  or
which took the measures referred to in paragraph 3 may take appropriate protective
measures so as to permit the proper application of this Agreement.

21

ARTICLE 18

MARKETING OF PRE-EXISTING STOCKS

1.

2.

Wines  which,  at  the  time  of  the  entry  into  force  of  this  Agreement,  have  been
produced,  prepared,  described  and  presented  in  compliance  with  the  internal  laws
and regulations of the Parties but are prohibited by this Agreement may be sold until
stocks run out.

Except  where  provisions  to  the  contrary  are  adopted  by  the  Contracting  Parties,
wines which have been  produced,  prepared, described and presented in  compliance
with this Agreement but whose production, preparation, description and presentation
cease  to  comply therewith  as  a result of  an amendment  thereto  may  continue  to  be
marketed until stocks run out.

22

PROTOCOL TO THE AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF CROATIA ON
THE RECIPROCAL RECOGNITION, PROTECTION AND CONTROL OF WINE NAMES

THE CONTRACTING PARTIES HEREBY AGREE AS FOLLOWS:

Pursuant to Article 15(b) of the Agreement, the following products referred to wines shall be
considered to be small quantities:

1.

2.

quantities in labelled containers of not more than 5 litres fitted with a non-reusable
closing  device  where  the  total  quantity  transported,  whether  or  not  made  up  of
separate consignments, does not exceed 50 litres;

(a)

(b)

(c)

(d)

(e)

(f)

quantities  which  are  contained  in  the  personal  luggage  of  travellers  in
quantities not exceeding 30 litres;

quantities  which  are  sent  in  consignments  from  one  private  individual  to
another in quantities not exceeding 30 litres;

quantities which are forming part of the belongings of private individuals who
are moving house;

quantities which are imported for the purpose of scientific or technical experi-
ments, subject to a maximum of 1 hectolitre;

quantities  which  are 
establishments as part of their duty-free allowance;

imported 

for  diplomatic,  consular  or  similar

quantities  which  are  held  on  board  international  means  of  transport  as
victualling supplies.

The case of exemption referred to in paragraph 1 may not be combined with one or more of
the cases of exemption referred to in paragraph 2.

23

ANNEX 3

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF CROATIA
ON THE RECIPROCAL RECOGNITION, PROTECTION AND CONTROL
OF DESIGNATIONS FOR SPIRITS AND AROMATISED DRINKS

ARTICLE 1

OBJECTIVES

1.

2.

The  Contracting  Parties  hereby  agree,  in  accordance  with  the  principles  of  non-
discrimination  and  reciprocity,  to  recognise,  protect  and  control  designations  for
spirits  and  aromatised  drinks  originating  in  their  territory  on  the  basis  of  the
conditions laid down herein.

The  Contracting  Parties  shall  take  all  general  and  specific  measures  necessary  to
ensure  that  the  obligations  laid  down  by  this  Agreement  are  fulfilled  and  that  the
objectives set out in this Agreement are attained.

ARTICLE 2

SCOPE AND COVERAGE

This Agreement applies to the following products:

(a)

Spirits drinks as defined:

– 

– 

– 

for  the  Community,  in  Council  Regulation  (EEC)  No  1576/891,  as  last
amended by the Act concerning the Conditions of Accession of the Republic of
Austria, the Republic of Finland and the Kingdom of Sweden,

for Croatia, in Regulation on the quality of spirits (O.J.Y. No.16/8 and 63/88)
and also in Law on wine (Narodne novine No 96/96) and in Regulation based
on Law on wine (Narodne novine No 96/96, 7/97, 117/97, 57/00), 

and  falling  within  heading  No  2208  of  the  International  Convention  on  the
Harmonised Commodity Description and Coding System, done at Brussels on
14 June 1983;

(b)

Aromatised  wines,  aromatised  wine-based  drinks  and  aromatised  wine-product
cocktails, hereinafter called "aromatised drinks", as defined:

– 

for  the  Community,  in  Council  Regulation  (EEC)  No  1601/912,  as  last
amended by Regulation (EC) No 2061/96,

1

2

OJ L 160, 12.6.1989, p. 1.
OJ L 149, 14.6.1991, p. 1.

24

                                                
– 

for Croatia, in Regulation on the quality of spirits (O.J.Y. No16/8 and 63/88)
and also in Law on wine (Narodne novine No 96/96) and in Regulation based
on Law on wine (Narodne novine No 96/96, 7/97, 117/97, 57/00),

and  covered by  heading  Nos  2205  and  ex  2206  of  the  International  Convention  on
the  Harmonised  Commodity  Description  and  Coding  System,  done  at  Brussels  on
14 June 1983.

ARTICLE 3

DEFINITIONS

For the purposes of this Agreement:

(a)

(b)

(c)

(d)

(e)

(f)

(g)

"spirit drink originating in", followed by the name of one of the Contracting Parties,
means a spirit drink produced in the territory of that Party;

"aromatised  drink  originating  in",  followed  by  the  name  of  one  of  the  Contracting
Parties, means an aromatised drink produced in the territory of that Party,

"description"  means  the  words  used  on  labelling,  on  documents  accompanying
spirits or aromatised drinks during transport, on commercial documents, particularly
invoices and delivery notes, and in advertising;

"homonymous" shall mean the same protected name, or a protected name so similar
as  to  be  likely  to  cause  confusion,  to  denote  different  places  of  origin,  or  different
spirit  drinks  and  aromatised  wines  originating  in  the  respective  territories  of  the
Contracting Parties;

"labelling" means all descriptions and other references, signs, symbols, illustrations
or  trade  marks  identifying  spirits  and  aromatised  drinks  and  appearing  on  the
container, including the sealing device or the tag attached thereto, and the sheathing
covering the neck of bottles;

"presentation" means the words or signs used on containers, including their closure,
on the labelling and on the packaging;

"packaging"  means  the  protective  wrappings  such  as  paper,  straw  wrapping  of  all
kinds,  cartons  and  cases,  used  in  the  transport  of  one  or  more  containers  and/or  in
their presentation for sale to the final consumer;

(h)

"trade mark" shall mean:

– 

– 

– 

a trade mark registered in terms of the legislation of a Contracting Party,

a common law trade mark which is recognised under the law of a Contracting
Party, and

a well-known trademark referred to in Article 6bis of the Paris Convention for
the Protection of Industrial Property (1967).

25

TITLE I

RECIPROCAL PROTECTION OF DESIGNATIONS
OF SPIRITS AND AROMATISED DRINKS

ARTICLE 4

PRINCIPLES

1.

Without prejudice to Articles 22 and 23 of the Agreement on Trade-Related Aspects
of Intellectual Property Rights set out in Annex 1C of the Agreement establishing the
World  Trade  Organisation  (hereinafter  referred  to  as  "the  TRIPS  Agreement"),  the
Parties  shall  take  all  the  necessary  measures,  in  accordance  with  this  Annex,  to
ensure reciprocal protection of the designations referred  to in Article 5  and  used to
describe  spirits  and  aromatised  drinks  originating  in  the  territory  of  the  Parties.  To
that  end,  each  Party  shall  provide  the  interested  parties  with  the  appropriate  legal
means for preventing the use of a designation to identify spirits or aromatised drinks
not originating in the place  indicated by the designation  in question  or in  the place
where the designation in question is traditionally used.

2.

In Croatia, the protected Community designations:

– 

– 

may not be used otherwise than under the conditions laid down in the laws and
regulations of the Community, and

shall be reserved exclusively for the spirits and aromatised drinks originating in
the Community to which they apply.

3.

In the Community, the protected Croatian designations:

– 

– 

may not be used otherwise than under the conditions laid down in the laws and
regulations of Croatia, and

shall be reserved exclusively for the spirits and aromatised drinks originating in
Croatia to which they apply.

The protection provided for in this Agreement shall prohibit in particular any use of
protected designations for spirits and aromatised drinks which do not originate in the
geographical  area  indicated  or  in  the  place  where  the  designation  is  traditionally
used, and shall apply even when:

– 

– 

– 

the true origin of the spirits and aromatised drinks is indicated,

the geographical indication in question is used in translation,

the  name  is  accompanied  by  terms  such  as  'kind',  'type',  'style',  'imitation',
'method' or other expressions of the sort.

In  cases  of  homonymous  designations  for  spirits  and  aromatised  drinks,  protection
shall  be  accorded  to  each  designation.  The  Parties  shall  lay  down  the  practical
conditions  under  which  the  homonymous  designations  in  question  are  to  be

4.

5.

26

6.

7.

8.

differentiated  from  each  other,  taking  into  account  the  need  to  treat  the  producers
concerned fairly and to avoid misleading the consumer.

The provisions of this Agreement shall in no way prejudice the right of any person to
use,  for  trade  purposes,  their  own  name  or  the  name  of  the  person  whose  business
they have taken over, provided that such names are not used in a way that misleads
consumers.

Nothing in this Agreement shall oblige a Party to protect any designation of the other
Party  which  is  not  protected  or  ceases  to  be  protected  in  its  country  of  origin  or
which has fallen into disuse in that country.

The Contracting Parties hereby waive their right to invoke Article 24(4) to (7) of the
TRIPS  Agreement  in  order  to  refuse  to  grant  protection  to  designations  from  the
other Party.

ARTICLE 5

PROTECTED DESIGNATIONS

The following designations shall be protected:

(a)

(b)

(c)

(d)

1.

2.

as  regards  spirits  drinks  originating  in  the  Community,  the  designations  listed  in
Annex 1;

as regards spirits drinks originating in Croatia, the designations listed in Annex 2;

as regards aromatised drinks originating in the Community, the designations listed in
Annex 3;

as  regards  aromatised  drinks  originating  in  Croatia,  the  designations  listed  in
Annex 4.

ARTICLE 6

TRADEMARKS

The registration of a trade mark for a spirits or  aromatised drink which  contains or
consists of a designation as referred to in Article 5 shall be refused or, at the request
of an  interested party, be invalidated, with  respect to such  spirits not originating in
the place indicated by the designation.

Notwithstanding paragraph 1, a trade mark registered in good faith by 31 December
1995  at  latest,  may  be  used  until  31  December  2005,  provided  it  has  been  used
effectively without interruption since its registration.

ARTICLE 7

EXPORTS

The Parties shall take all measures necessary to ensure that, in cases where spirits or aromatised
drinks originating in the territory of the Parties are exported and marketed outside their territory,

27

the  designations  of  one  Party  protected  under  this  Agreement  are  not  used  to  designate  and
present spirits or aromatised drinks originating in the other Party.

ARTICLE 8

EXTENSION OF PROTECTION

To  the  extent  that  the  relevant  legislation  of  the  Parties  allows,  the  benefit  of  the  protection
afforded by this Agreement shall  cover natural  and legal  persons  and  federations,  associations
and  organisations  of  producers,  traders  and  consumers  whose  head  offices  are  located  in  the
territory of the other Party.

ARTICLE 9

ENFORCEMENT

1.

2.

If  the  appropriate  competent  authority,  designated  in  accordance  with  Article  11,
becomes aware that the description or presentation of a spirits or aromatised drink, in
particular on the labelling, in official or commercial documents or in advertising, is
in  breach  of  this  Agreement,  the  Parties  shall  apply  the  necessary  administrative
measures  and/or  shall  initiate  suitable  legal  proceedings  with  a  view  to  combating
unfair competition or preventing the wrongful use of the protected designation in any
other way.

The measures and proceedings referred to in paragraph 1 shall be taken in particular
in the following cases:

(a) where the translation of designations provided for by Community or Croatian
legislation into the language or languages of the other Contracting Party results
in the appearance of a  word which is liable to be misleading  as  to  the  origin,
nature or quality of the spirits or aromatised drinks thus identified;

(b) where  descriptions,  trade  marks,  words,  inscriptions  or  illustrations  which
directly  or  indirectly  give  false  or  misleading  information  as  to  the  origin,
nature, material qualities of the spirits or aromatised drink appear on containers
or packaging, in advertising or in official or commercial documents relating to
designations protected under this Agreement;

(c) where, for packaging, containers are used which are misleading as to the origin

of the spirits or aromatised drink.

3.

The  application  of  paragraphs  1  and  2  shall  not  prejudice  the  possibilities  of  the
persons  and  entities  referred  to  in  Article  8  to  take  appropriate  actions  in  the
Contracting Parties, including recourse to the courts.

ARTICLE 10

OTHER INTERNAL LEGISLATION AND INTERNATIONAL AGREEMENTS

Unless otherwise agreed by the Contracting Parties, this Agreement shall not preclude any more
extensive protection afforded, now or in the future, to designations protected by this Agreement
by the Contracting Parties under their internal legislation or other international agreements.

28

TITLE II

CONTROLS AND MUTUAL ASSISTANCE
BETWEEN COMPETENT AUTHORITIES

ARTICLE 11

ENFORCEMENT AUTHORITIES

1.

2.

The  Contracting  Parties  shall  each  designate  the  authorities  responsible  for  the
enforcement of this Agreement. Where a Contracting Party designates more than one
competent authority, it shall ensure the co-ordination of the work of these authorities.
For this purpose, a single authority shall be designated.

The  Parties  shall  inform  one  another  of  the  names  and  addresses  of  the  above
authorities not later  than  two  months  after  this  Agreement  comes  into  force.  These
authorities shall co-operate closely and directly with each other.

ARTICLE 12

INFRINGEMENT

1.

If one of the authorities referred to in Article 11 has reason to suspect that:

(a)

a  spirits  or  aromatised  drink  as  defined  in  Article  2,  being  or  having  been
traded  between  Croatia  and  the  Community,  does  not  comply  with  this
Agreement  or  with  provisions,  laid  down  in  the  laws  and  regulations  of  the
Contracting parties, applicable to spirits and aromatised drinks, and 

(b)

this non-compliance is of particular interest to the other Contracting Party and
could result in administrative measures and/or legal proceedings being taken,

it shall immediately inform the Commission and the relevant authority or authorities
of the other Party.

2.

The information to be provided in accordance with paragraph 1 shall be accompanied
by  official,  commercial  or  other  appropriate  documents,  with  details  of  any
administrative  measures  or  legal  proceedings  that  may,  if  necessary,  be  taken.  The
information shall include, in particular, the following details concerning the spirits or
aromatised drink in question:

(a)

the  producer  and  the  person  who  has  power  of  disposal  over  the  spirits  or
aromatised drink;

(b)

the composition and organoleptic characteristics of that drink;

(c)

its description and presentation;

(d)

details  of  the  non-compliance  with  the  rules  concerning  production  and
marketing.

29

TITLE III

MANAGEMENT OF THE AGREEMENT

ARTICLE 13

WORKING GROUP

1.

2.

1.

2.

3.

Pending  the  entry  into  force  of  the  Stabilisation  and  Association  Agreement,  a
Working  Group,  functioning  under  the  auspices  of  a  special  Committee  on
Agriculture  to  be  created  in  accordance  with  Article  41  of  the  Interim  Agreement,
shall be established.

The Working Group shall see to the proper functioning of this Agreement and shall
examine all questions which may arise in implementing it. In particular, the Working
Group may make recommendations which would contribute to the attainment of the
objectives of this Agreement.

ARTICLE 14

TASKS OF THE CONTRACTING PARTIES

The Contracting Parties shall, either directly or through the Working Group, referred
to in Article 13, maintain contact on all matters  relating to the  implementation  and
the functioning of this Agreement.

In particular, the Contracting Parties shall:

(a)

(b)

(c)

establish and amend the Annexes and the Protocol of this Agreement by mutual
decision to take account of any amendments to the laws and regulations of the
Contracting Parties;

inform each other of the intention to decide new regulations or amendments of
existing  regulations  of  public  policy  concern,  such  as  health  or  consumer
protection, with implications for the spirits and aromatised drinks market;

notify  each  other  of  judicial  decisions  concerning  the  application  of  this
Agreement  and  inform  each  other  of  measures  adopted  on  the  basis  of  such
decisions.

Within the framework of this Agreement, either of the  Contracting  Parties  may  put
forward  suggestions  for  widening  the  scope  of  their  co-operation  in  the  spirits  and
aromatised  drinks  market,  taking  into  account  the  experience  gained  in  its
application.

30

TITLE IV

GENERAL PROVISIONS

ARTICLE 15

TRANSIT-SMALL QUANTITIES

This Agreement shall not apply to spirits and aromatised drinks which:

(a)

(b)

pass in transit through the territory of one of the Contracting Parties, or

originate in the territory of one of the Contracting Parties and which are consigned in
small  quantities  between  those  Contracting  Parties  under  the  conditions  and
according to the procedures provided for in the Protocol.

ARTICLE 16

TERRITORIAL APPLICATION

This Agreement shall apply, on the one hand, to the territories to which the Treaty establishing
the European Community applies and under the conditions laid down in that treaty and, on the
other hand, to the territory of the Republic of Croatia.

ARTICLE 17

FAILURE TO COMPLY

1.

2.

3.

4.

The Contracting Parties shall enter into consultations if either considers that the other
has failed to fulfil an obligation under this Agreement. 

The Contracting Party which requests the consultations shall provide the other with
all information necessary for a detailed examination of the case in question. 

In cases where any delay could endanger human health or impair the effectiveness of
measures  to  control  fraud,  appropriate  interim  protective  measures  may  be  taken,
without  prior  consultation,  provided  that  consultations  are  held  immediately  after
such measures are taken.

If,  following  the  consultations  provided  for  in  paragraph  1  and  3,  the  Contracting
Parties have not reached agreement, the Party which has requested the consultations or
taken the measures referred to in paragraph 3 may take appropriate safeguard measures
so as to permit the proper application of this Agreement.

31

ARTICLE 18

MARKETING OF PRE-EXISTING STOCKS

1.

2.

Spirits and aromatised drinks which, at the time of entry into force of this agreement,
have been legally produced, described and presented, in accordance with the internal
laws and regulations of the Contracting Parties, but which may be prohibited by this
Agreement may be marketed by wholesalers for a period of one year from the entry
into  force  of  the  Agreement  and  by  retailers  until  stocks  are  exhausted.  From  the
entry into force of this Agreement, spirits and aromatised drinks included herein may
no longer be produced outside the limits of their regions of origin.

Spirits and aromatised drinks produced, described and presented in accordance with
this  agreement  whose  description  and  presentation  cease  to  comply  with  this
Agreement  following  an  amendment  thereto  may  continue  to  be  marketed  until
stocks are exhausted, unless otherwise agreed by the Contracting Parties.

32

PROTOCOL TO THE AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF CROATIA
ON THE RECIPROCAL RECOGNITION, PROTECTION AND CONTROL
OF DESIGNATIONS FOR SPIRITS AND AROMATISED DRINKS

THE CONTRACTING PARTIES HEREBY AGREE AS FOLLOWS:

Pursuant  to  Article  15(b)  of  the  Agreement,  the  following  products  referred  to  spirits  and
aromatised drinks shall be considered to be small quantities:

1.

2.

quantities in labelled containers of not more than 5 litres fitted with a non-reusable
closing  device  where  the  total  quantity  transported,  whether  or  not  made  up  of
separate consignments, does not exceed 10 litres;

(a)

(b)

(c)

(d)

(e)

(f)

quantities  which  are  contained  in  the  personal  luggage  of  travellers  in
quantities not exceeding 10 litres;

quantities  which  are  sent  in  consignments  from  one  private  individual  to
another in quantities not exceeding 10 litres;

quantities which are forming part of the belongings of private individuals who
are moving house;

quantities  which  are  imported  for  the  purpose  of  scientific  or  technical
experiments, subject to a maximum of 1 hectolitre;

quantities  which  are 
establishments as part of their duty-free allowance;

imported 

for  diplomatic,  consular  or  similar

quantities  which  are  held  on  board  international  means  of  transport  as
victualling supplies.

The case of exemption referred to in paragraph 1 may not be combined with one or more of
the cases of exemption referred to in paragraph 2. 

33

FINANCIAL STATEMENT

BUDGET HEADING:
Chapter 10 – Agricultural duties

APPROPRIATIONS:
EUR 1 180 million

TITLE:
Council Decision on the conclusion of an Additional Protocol to the Interim Agreement between the
European Communities and their Member States, of the one part, and the Republic of Croatia, of the
other 
between
the  parties  on  reciprocal  preferential  concessions  for  certain  wines  and  spirits,  the  reciprocal
recognition,  protection  and  control  of  wine  names  and  the  reciprocal  recognition,  protection  and
control of designations for spirits and aromatised drinks.

negotiations 

outcome 

account 

part, 

take 

the 

the 

of 

of 

to 

LEGAL BASIS:
Article 133 of the Treaty

AIMS OF MEASURE:
To establish reciprocal agricultural concessions for certain wines and spirits between the EU and the
Republic of Croatia.

1.

2.

3.

4.

5.

FINANCIAL IMPLICATIONS

PERIOD OF
12 MONTHS

(EUR million)

CURRENT
FINANCIAL
YEAR 2001
(EUR million)

FOLLOWING
FINANCIAL
YEAR 2002
(EUR million)

5.0

5.1

CHARGED TO THE EC BUDGET

NATIONAL ADMINISTRATION
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTION)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
NATIONAL
-

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

-

-

-

-

2003
-
-

2004
-
-

2005
-
-

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN
THE RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS
OF THE CURRENT BUDGET?

6.2

IS A SUPPLEMENTARY BUDGET NECESSARY?

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?

OBSERVATIONS:

-

-

2006
-
-

YES 

YES 

NO

NO

The  proposed  measure  explicitly  allocates  part  of  the  existing  quota  of  545 000  hl  to  Croatia.  There  is,
therefore, no additional financial impact.

34