Proposal for a Council Decision on a Community position within the Cooperation Council on the introduction of two Joint Declarations concerning the Principality of Andorra and the Republic of San Marino and on amendments to Protocol 4 on the definition of the concept 'of originating products' and methods of administrative cooperation set out in the Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the former Yugoslav Republic of Macedonia, of the other part
Date: 2001-10-25
Institutions: European Commission
Subjects: Andorra, North Macedonia, San Marino, interim agreement (EU), originating product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.10.2001
COM(2001) 608 final

2001/0249 (ACC)

Proposal for a

COUNCIL DECISION

on a Community position within the Cooperation Council on the introduction of two
Joint Declarations concerning the Principality of Andorra and the Republic of San
Marino and on amendments to Protocol 4 on the definition of the concept ‘of originating
products’ and methods of administrative cooperation set out in the Interim Agreement
on trade and trade-related matters between the European Community, of the one part,
and the former Yugoslav Republic of Macedonia, of the other part

(presented by the Commission)

1. 

2. 

3. 

4. 

EXPLANATORY MEMORANDUM

Rules  of  origin  are  essential  to  the  correct  functioning  of  the  free  trade  agreements
between  the  Community  and  its  trading  partners,  including  the  former  Yugoslav
Republic  of  Macedonia.  The  European  Communities  and  its  Member  States,  of  the
one  part,  and  the  former  Yugoslav  Republic  of  Macedonia,  of  the  other  part,  have
signed  a  Stabilisation  and  Association  Agreement  on  9  April  2001.  The  Interim
Agreement on trade and trade-related matters between the European Community and
the former Yugoslav Republic of Macedonia has entered into force on 1 June 2001.

Protocol  4  concerning  the  definition  of  the  concept  of  ‘originating  products’  and
methods  of  administrative  cooperation  has  been  adopted  together  with  the  Interim
Agreement and has entered into force, as well, on 1 June 2001.

In  the  context  of  the  new  Interim  Agreement,  preferential  treatment  may  not  be
granted to products originating in the Republic of San Marino and to products falling
within  Chapters  25  to  97  originating  in  the  Principality  of  Andorra  when  these
products  are  exported  from  those  countries  to  the  former  Yugoslav  Republic  of
Macedonia. The Republic of San Marino and Andorra are bound to a  customs union
with  the  Community  for  those  products  and  identical  joint  declarations  have  been
included,  as  a standard  and  consolidated practice, in  most preferential agreements  to
ensure  that  Protocol  4  is  applied  mutatis  mutandis  to  the  above-mentioned  products
originating in the Principality of Andorra and the Republic of San Marino. Such joint
declarations  would  ensure  that  those  products  are  accepted  at  importation  in  the
former  Yugoslav  Republic  of  Macedonia  as  originating  in  the  Community  and  that
customs  authorities  of  the  former  Yugoslav  Republic  of  Macedonia  would  grant
preferential treatment to those products, accordingly.

In the interest of clarity, it is desirable to correct a number of material errors, as well
as certain errors in Protocol 4 related to mistaken references in individual Articles to
other  Articles.  These  corrections  would  ensure  a  smooth  and  uniform  application  of
the provisions contained in Protocol 4.

The  Commission  therefore  calls  on  the  Council  to  draw  up  a  common  position  for
presentation  to  the  Cooperation  Council  CE  –  former  Yugoslav  Republic  of
Macedonia.

2

2001/0249 (ACC)

Proposal for a

COUNCIL DECISION

on a Community position within the Cooperation Council on the introduction of two
Joint Declarations concerning the Principality of Andorra and the Republic of San
Marino and on amendments to Protocol 4 on the definition of the concept ‘of originating
products’ and methods of administrative cooperation set out in the Interim Agreement
on trade and trade-related matters between the European Community, of the one part,
and the former Yugoslav Republic of Macedonia, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

(1) Whereas Article 38 of Protocol 4 to the Interim Agreement on trade and trade-related
matters between the European Community, of the one part, and the former Yugoslav
Republic of Macedonia, of the other part1, provides that the Cooperation Council may
amend the provisions of this Protocol;

HAS DECIDED AS FOLLOWS:

Article 1

The position to be adopted by the Community within the Cooperation Council established by
virtue  of  the  Cooperation  Agreement2  signed  on  29  April  1997,  by  way  of  Exchange  of
Letters between the European Community and the former Yugoslav Republic of Macedonia,
on the introduction of two Joint Declarations concerning the Principality of Andorra and the
Republic of San Marino and on amendments to Protocol 4 to the Interim Agreement, on the
definition of the concept of ‘originating products’ and methods of administrative cooperation,
is that set out in the attached draft decision of the Cooperation Council.

1 OJ L 124, 4.5.2001, p. 2
2 OJ L 348, 18.12.1997, p. 2

3

                                                
Done at Brussels,

For the Council
The President

4

INTERIM AGREEMENT

on trade and trade-related matters between the European Community, of the one part, and the
former Yugoslav Republic of Macedonia, of the other part

DECISION No …/… of the COOPERATION COUNCIL

of …

on the introduction of two joint declarations concerning the Principality of Andorra and
the Republic of San Marino and on amendments to Protocol 4 on the definition of the
concept of ‘originating products’ and methods of administrative cooperation

THE COOPERATION COUNCIL,

Having  regard  to  the  Interim  Agreement  on  trade  and  trade-related  matters  between  the
European Community, of the one part, and the former Yugoslav Republic  of Macedonia, of
the other part3, hereinafter referred to as ‘the Interim Agreement’;

Having regard in particular to Article 38 of Protocol 4 of the Interim Agreement,

Whereas:

(1)

(2)

(3)

Pending the entry into force of the Stabilisation and Association Agreement between
the European Communities and their Member States, of the one part, and the former
Yugoslav Republic of Macedonia, of the other part, signed in Luxembourg on 9 April
2001,  the  Council  Decision  No  2201/330  EC4  of  9  April  2001  has  concluded  the
Interim  Agreement  on  trade  and  trade-related  matters  between  the  European
Community, of the one part, and the former Yugoslav Republic of Macedonia, of the
other part.

In accordance with its Article 50 and following the notification on 27 April 2001 by
both sides regarding the completion of their respective internal procedures, the Interim
Agreement together with its Annexes and Protocols, including Protocol 4 concerning
the definition of the concept of ‘originating products’ and  methods of  administrative
co-operation, has entered into force on 1 June 20015.

It is desirable to insert a joint declaration after Protocol 4, concerning the recognition
and  acceptance  by  the  former  Yugoslav  Republic  of  Macedonia  of  products
originating  in  the  Republic  of  San  Marino  as  originating  in  the  Community.  The
inclusion  of  such  joint  declaration  is  a  standard  practice  within  the  context  of
preferential  agreements  negotiated  by  the  Community  with  third  countries  and  the

3 OJ L 124, 4.5.2001, p. 2
4 OJ L 124, 4.5.2001, p. 1
5 Information of the Council No 149/01. OJ C 149, 19.5.2001, p. 1

5

                                                
existence of a customs union between the Community and the Republic of San Marino
justifies the inclusion of such joint declaration.

(4)

It is desirable to insert a joint declaration after Protocol 4, concerning the recognition
and  acceptance  by  the  former  Yugoslav  Republic  of  Macedonia  of  products  falling
within Chapters 25 to 97 originating in the Principality of Andorra as originating in the
Community. The inclusion of  such joint declaration  is  a standard  practice  within  the
context of preferential agreements negotiated by the Community  with third countries
and the existence of a customs union between the Community and Andorra for those
products justifies the inclusion of such joint declaration.

(5)

In the interest of clarity, it is desirable to correct certain errors in Protocol 4 related to
mistaken  references  in  individual  Articles  to  other  Articles,  as  well  as  a  number  of
material errors.

HAS ADOPTED THIS DECISION:

Article 1

Protocol 4 attached to the Interim Agreement on trade and trade-related matters between the
European Community, of the one part, and the former Yugoslav Republic  of Macedonia, of
the other  part,  applicable  since  1  June  2001  following  the  notification  on  27  April  2001  by
both  sides  regarding  the  completion  of  their  respective  internal  procedures,  is  amended  as
follows:

In  the  ‘Table  of  contents’,  in  Title  II,  the  second  indent  is  replaced  by  the

1.
following:

“- Article 3

Bilateral cumulation in the Community”

In  the  ‘Table  of  contents’,  in  Title  II,  the  third  indent  is  replaced  by  the

2.
following:

“- Article 4

Bilateral cumulation in the former Yougoslav Republic of Macedonia”

3.

In Article 3, the title is replaced by the following:

“Bilateral cumulation in the Community”

4.

The last sentence in Article 3 is replaced by the following:

“It  shall  be  not  necessary  that  such  materials  have  undergone  sufficient  working  or
processing, provided they have undergone working or processing going beyond the operations
referred to in Article 7.”

5.

The last sentence in Article 4 is replaced by the following:

6

“It  shall  be  not  necessary  that  such  materials  have  undergone  sufficient  working  or
processing, provided they have undergone working or processing going beyond the operations
referred to in Article 7.”

In Article 5, paragraph 2(a)(b)(c)(d)(e); Article 17, paragraph 4 and Article 31,
6.
paragraph 1 the terms “EC Member State” and “EC Member States” are replaced by
the following:

“Member State of the Community” and “Member States of the Community”

7.

Article 15, paragraph 1 is replaced by the following:

“1.  Non-originating  materials  used  in  the  manufacture  of  products  originating  in  the
Community or in the former Yugoslav Republic of Macedonia, for which a proof of origin is
issued  or  made  out  in  accordance  with  the  provisions  of  Title  V  shall  not  be  subject  in  the
Community  or  the  former  Yugoslav  Republic  of  Macedonia  to  drawback  of,  or  exemption
from, customs duties of whatever kind.”

8.

Article 15, paragraph 2 is replaced by the following:

“2.  The  prohibition  in  paragraph  1  shall  apply  to  any  arrangement  for  refund,  remission  or
non-payment,  partial  or  complete, of  customs duties  or  charges having an  equivalent  effect,
applicable in the Community or in the former Yugoslav Republic of Macedonia to materials
used in the manufacture, where such refund, remission or non-payment applies, expressly or
in effect, when products obtained from the said materials are exported and not when they are
retained for home use there.”

9.

The last subparagraph in Article 15 is replaced by the following:

“7.  The  provisions  of  this  Article  shall  apply  from  1  January  2003.  The  provisions  of
paragraph 6 shall apply until 31 December 2005 and may be reviewed by common accord.”

10. Article 30, paragraph 1 is replaced by the following:

“1. For the application of the provisions of Article 21(1)(b) and Article 26(3) in cases where
products are invoiced in a currency other than euro, amounts in the national currencies of the
Member States or of the former Yugoslav Republic of Macedonia equivalent to the amounts
expressed in euro shall be fixed annually by each of the countries concerned.”

In  Article  30,  paragraph  3  and  Article  31,  paragraph  1  the  terms  “European

11.
Commission” are replaced by the following:

“Commission of the European Communities”

In Annexe II, the last indent in column (3) of Heading 1901 is replaced by the

12.
following:

“ – the value of the materials of Chapter 17 used does not exceed 30% of the ex-works price
of the product”.

7

In Annexe II, the last indent in column (3) of Heading 2106 is replaced by the

13.
following:

“- the value of the materials of Chapter 17 used does not exceed 30% of the ex-works price of
the product”.

In Annexe II, the last three indents in column (3) applicable to the first indent

14.
in column (2) in Heading 5602, are replaced by the following:

“- polypropylene filament of heading No 5402,

- polypropylene fibres of heading No 5503 or 5506

or

- polypropylene filament tow of heading No 5501,

of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may
be used provided their value does not exceed 40 % of the ex-works price of the product”

In Annexe II, the last three indents in column (3) applicable to the first indent

15.
in column (2) in Chapter 57, are replaced by the following:

“- polypropylene filament of heading No 5402,

- polypropylene fibres of heading No 5503 or 5506

or

- polypropylene filament tow of heading No 5501,

of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may
be used provided their value does not exceed 40 % of the ex-works price of the product

Jute fabric may be used as a backing”

After Protocol 4 the following Joint Declarations are added:

Article 2

JOINT DECLARATION

concerning the Principality of Andorra

1.
Products originating in the Principality of Andorra falling within Chapters 25
to 97 of the Harmonized System shall be accepted by the former Yugoslav Republic

8

of  Macedonia  as  originating  in  the  Community  within  the  meaning  of  this
Agreement.

Protocol  4  shall  apply  mutatis  mutandis  for  the  purpose  of  defining  the

2.
originating status of the above-mentioned products.

***

JOINT DECLARATION

concerning the Republic of San Marino

1.
Products  originating  in  the  Republic  of  San  Marino  shall  be  accepted  by  the
former Yugoslav Republic of Macedonia as originating in the Community within the
meaning of this Agreement.

Protocol  4  shall  apply  mutatis  mutandis  for  the  purpose  of  defining  the

2.
originating status of the above-mentioned products.”

Article 3

This Decision shall enter into force on the day of its adoption and shall apply from the first
day of the month following its adoption.

Done at Brussels, …

For the Cooperation Council

The President

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LEGISLATIVE FINANCIAL STATEMENT

The proposed Cooperation Council decision has no financial impact, as it only concerns the
granting  of  the  preferential  treatment  by  the  former  Yugoslav  Republic  of  Macedonia  to
originating  products  exported  from  the  Republic  of  San  Marino  and  the  Principality  of
Andorra (Andorran agricultural products are excluded).

10