Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Government of Ukraine establishing a double-checking system without quantitative limits in respect of the export of certain steel products covered by the EC and ECSC Treaties from Ukraine to the European Community
Date: 2002-01-07
Institutions: European Commission
Subjects: Ukraine, agreement (EU), customs inspection, export, iron and steel product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.1.2002
COM(2001) 816 final

2002/0001 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an Exchange of Letters between the
European Community and the Government of Ukraine establishing a double-checking
system without quantitative limits in respect of the export of certain steel products
covered by the EC and ECSC Treaties
from Ukraine to the European Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Community’s  Partnership  and  Cooperation  Agreement  with  Ukraine  provides  for
agreements on quantitative arrangements concerning exchanges of ECSC steel products.  The
current  ECSC  Steel  Agreement  expires  on  31  December  2001.    Moreover,  certain  steel
products which fall outside the scope of the Steel Agreement are subject to a double-checking
system  without  quantitative  limitations.  This  double-checking  system  also  ends  on
31 December 2001.

During the negotiations on the new ECSC steel Agreement, the Parties agreed to re-establish
a  double-checking  system  without  quantitative  limitations  in  order  to  monitor  the  trade  in
certain  EC  and  ECSC  Treaty  steel  products  which  fall  outside  the  scope  of  the  ECSC
Agreement. The aim of the double-checking system is to improve transparency and to avoid
possible  diversions  of  trade.  It  is  without  prejudice  to  the  application  of  the  relevant
provisions of the agreements on trade and trade-related matters, in particular those relating to
anti-dumping and safeguard measures.

The double-checking system would apply for the period 2002-2004. It will be established by
means of an Agreement in the form of an Exchange of Letters.

2

2002/0001 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community and the Government of Ukraine establishing
a double-checking system without quantitative limits in respect of the export of
certain steel products covered by the EC and ECSC Treaties
from Ukraine to the European Community

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

The  Partnership  and  Cooperation  Agreement  establishing  a  partnership
between the European Communities and their Member States, of the one part,
and Ukraine, of the other part 1, entered into force on 1 March 1998,

The European Community and the Government of Ukraine agreed to establish
a  double-checking  system  in  respect  of  certain  steel  products  for  the  period
ranging from 1 July 1997 to 31 December 1999.  This Agreement in the form
an Exchange of Letters was approved on behalf of the European Community
by means of Council Decision 97/481/EC2.  The system was extended for the
period  ranging  from  1  January  2000  to  31  December  2001  by  means  of
Council  Decision  2000/202/EC3.    Council  Regulation  (EC)  N°1526/974,
extended  by  Council  Regulation  (EC)  N°  501/20005,  established  the
corresponding implementing legislation for the Community,

The Commission has finalised negotiations for an Agreement in the form of an
Exchange  of  Letters  between  the  European  Community  and  Ukraine
establishing a double-checking system without quantitative limits in respect of
the export of certain steel products covered by the EC and ECSC Treaties from
Ukraine to the European Community,

1
2 
3 
4 
5 

OJ L 49, 19.2.1998, p.3
OJ L 210, 4.8.97, p. 15
OJ L 62, 9.3.2000, p. 25
OJ L 210, 4.8.97, p. 30
OJ L 62, 9.3.2000, p. 1

3

                                                
HAS DECIDED AS FOLLOWS:

Article 1

1.

The Agreement in the form of an Exchange of Letters between the European
Community  and  Ukraine  establishing  a  double-checking  system  without
quantitative  limits  in respect  of the  export of  certain steel  products  covered
by the EC and ECSC Treaties from Ukraine to the European Community is
hereby approved on behalf of the European Community.

2.

The text of the Agreement6 is annexed to this Decision.

Article 2

The President of the Council is hereby authorized to designate the persons empowered
to sign the Agreement in the form of an exchange of letters referred to in Article 1 in
order to bind the Community.

Done at Brussels,

For the Council
The President

6

See page ... of this Official Journal.

4

                                                
Agreement in the form of an Exchange of Letters between the European
Community and the Government of Ukraine establishing a double-checking
system without quantitative limits in respect of the export of certain steel
products covered by the EC and ECSC Treaties
from Ukraine to the European Community

LETTER FROM THE COUNCIL OF THE EUROPEAN UNION

Sir,

1.  I have the honour to refer to the ongoing negotiations between the European Coal
and Steel Community and Ukraine concerning a new ECSC steel agreement, in the
course  of  which  consultations  took  place  with  regard  to  problems  concerning
certain steel products covered by the EC and ECSC treaties which fall outside the
scope of the ECSC steel Agreement.

2.  Following  these  consultations  the  Parties  hereby  agree  to  establish  a  double-
checking system, without quantitative limits, in respect of certain steel products in
order to improve transparency and to avoid possible diversions of trade. The details
of the double-checking system are annexed to this letter.

3.  The  present  Exchange  of  Letters  is  without  prejudice  to  the  application  of  the
relevant provisions of  the bilateral agreements  on  trade  and  trade-related  matters,
in particular those relating to anti-dumping and safeguard measures.

4.  Either Party may at any time propose modifications to the Annex or its appendices
which shall require the mutual consent of the Parties and shall take effect as agreed
by them. In the event that anti-dumping or safeguard investigations are initiated or
measures introduced in the European Community concerning a product under the
double-checking  system,  Ukraine  will  decide  whether  to  exclude  the  product  in
question  from  the  double-checking  system.  Such  a  decision  shall  not  affect  the
entry into free circulation of the product in question into the Community.

5.  In  conclusion,  I  have  the  honour  to  propose  that  if  this  letter,  its  annex  and
appendices  are  acceptable  to  your  Government,  this  letter  and  your  confirmation
shall  together  constitute  an  agreement  between  the  European  Community  and
Ukraine, which shall enter into force on the date of your reply.

 Please accept, sir, the assurance of my highest consideration,

 For the Council of the European Union

5

 LETTER FROM THE GOVERNMENT OF UKRAINE

 Sir,

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

“1.

2.

3.

4.

5.

I have the honour to refer to the ongoing negotiations between the European
Coal and Steel Community and the Government of the Ukraine concerning a
new ECSC steel agreement, in the course of which consultations took place
with regard to problems concerning certain steel products covered by the EC
and  ECSC  treaties  which  fall  outside  the  scope  of  the  ECSC  steel
Agreement.

Following these consultations the Parties hereby agree to establish a double-
checking  system,  without  quantitative  limits,  in  respect  of  certain  steel
products in order to improve transparency and to avoid possible diversions of
trade. The details of the double-checking system are annexed to this letter.

The present Exchange of Letters is without prejudice to the application of the
relevant  provisions  of  the  bilateral  agreements  on  trade  and  trade-related
matters, in particular those relating to anti-dumping and safeguard measures.

Either  Party  may  at  any  time  propose  modifications  to  the  Annex  or  its
appendices  which  shall  require  the  mutual  consent  of  the  Parties  and  shall
take  effect  as  agreed  by  them.  In  the  event  that  anti-dumping  or  safeguard
investigations  are  initiated  or  measures  introduced  in  the  European
Community  concerning  a  product  under  the  double-checking  system,
Ukraine  will  decide  whether  to  exclude  the  product  in  question  from  the
double-checking system. Such  a decision shall not affect the  entry into free
circulation of the product in question into the Community.

In conclusion, I have the honour to propose that if this letter, its annex and
appendices  are  acceptable  to  your  Government,  this  letter  and  your
confirmation  shall  together  constitute  an  agreement  between  the  European
Community  and  Ukraine,  which  shall  enter  into  force  on  the  date  of  your
reply.”

I have the honour to confirm that the above is acceptable to my Government and that
your  letter,  this  reply  and  the  attached  annex  and  appendices  together  constitute  an
agreement, in accordance with your proposal.

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

For the Government of Ukraine.

6

ANNEX

to the Agreement in the form of and Exchange of Letters between
the European Community and the Government of Ukraine establishing a
double-checking system without quantitative limits in respect of the export of
certain steel products covered by the EC and ECSC Treaties
from Ukraine to the European Community

1.1. For the period running from the date on which this Agreement is applied between
the  Parties  to  31  December  2004,  unless  both  Parties  agree  to  terminate  the  system
earlier, imports into the Community of the products listed in Appendix I originating in
Ukraine shall be subject to the presentation of a surveillance document conforming to
the model shown at Appendix II issued by the authorities in the Community.

1.2.  For  the  period  running  from  the  date  on  which  this  Agreement  is  applied  to
31 December 2004, unless both Parties agree to terminate the system earlier, imports
into  the  Community  of  the  products  listed  in  Appendix  I  and  which  originate  in
Ukraine  shall,  in  addition,  be  subject    to  the  issue  of  an  export  document  by  the
competent  Ukrainian  authorities.  Presentation  by  the  importer  of  the  original  of  the
export document must be effected not later than 31 March of the year following that
in which the goods covered by the document were shipped.

1.3.  Shipment  is  considered  to  have  taken  place  on  the  date  of  loading  into  the
exporting means of  transport.

1.4. The export document shall conform to the model shown in Appendix III. It shall
be valid for exports throughout the customs territory of the Community.

1.5. Ukraine shall notify the Commission of the European Communities of the names
and  addresses  of  the  appropriate  Ukrainian  governmental  authorities  which  are
authorised  to  issue  and  to  verify  export  documents  together  with  specimens  of  the
stamps  and  signatures  they  use.  Ukraine  shall  also  notify  the  Commission  of  any
change in these particulars.

1.6. The classification of the products covered by this Agreement is based on the tariff
and  statistical  nomenclature  of  the  Community  (hereinafter  called  the  'Combined
Nomenclature`, or in  abbreviated form 'CN`). The origin of the products covered by
this  Agreement  shall  be  determined  in    accordance  with  the  rules  in  force  in  the
Community.

1.7. The competent authorities of the Community undertake to inform Ukraine of any
changes in the Combined Nomenclature (CN) in respect of products covered by this
Agreement before their date of entry into force in the Community.

7

1.8.  Certain  technical  provisions  on  the  implementation  of  the  double-checking
system are set out  in Appendix IV.

2.1. Ukraine undertakes to supply the Community with precise statistical  information
on  the  export  documents  issued  by  the  Ukrainian  authorities  pursuant  to  1.2.  Such
information shall be transmitted to the Community by the end of the month following
the month to which the statistics relate.

2.2.  The  Community  undertakes  to  supply  the  Ukrainian  authorities  with  precise
statistical information on surveillance documents issued by Member States in respect
of  the  export  documents  issued  by  the  Ukrainian  authorities  pursuant  to  1.1.  Such
information shall be transmitted to the Ukrainian authorities by the end of the month
following the month to which the statistics relate.

3.  If  necessary,  at the  request  of either of the Parties,  consultations shall be held  on
any problems  arising  from  the  operation  of the  Agreement.  Such  consultations  shall
be held promptly.  Any consultations held  under this  paragraph shall be approached
by both Parties in a spirit of  cooperation and with a desire to reconcile the difference
between them.

4. Any notices to be given hereunder shall be given:

– 

– 

in  respect  of  the  Community,  to  the  Commission  of  the  European
Communities,

in  respect  of  Ukraine,  to  the  Mission  of  Ukraine  to  the  European
Communities.

8

APPENDIX I

List of products subject to double-checking without quantitative limits

Ukraine

Cold-rolled narrow strip of a width not exceeding 500mm

7211 23 99

7211 29 50

7211 29 90

7211 90 90

Grain non-oriented electrical sheet

7211 23 91

7225 19 10

7225 19 90

7226 19 10

7226 19 30

7226 19 90

Ingots and other primary forms

7218 10 00

7224 10 00

Grain-oriented electrical sheet

7226 11 90

9

APPENDIX II

EUROPEAN COMMUNITY

SURVEILLANCE DOCUMENT

1

1. Consignee (name, full address, country, VAT number)

2. Issue number

3. Proposed place and date of import

4. Authority responsible for issue
(name, address and telephone No)

y
p
o
c

s
’
r
e
d

l
o
H

1

5. Declarant/representative as applicable

(name and full address)

6. Country of origin

(and geonomenclature code)

7. Country of consignment

(and geonomenclature code)

8. Last day of validity

9. Description of goods

10. CN code and category

11. Quantity in kilograms (net mass) or
in additional units

12. Value in euros, cif at Community
frontier

13. Additional remarks

14. Competent authority’s endorsement

Date :

Signature:

Stamp:

10

 
15. ATTRIBUTIONS

Indicate the quantity available in part 1 of column 17 and the quantity attributed in part 2 thereof

16. Net quantity (net mass or other unit of measure
stating the unit)

19. Customs document

(form and number) or
extract No and date
of attribution

20. Name, Member State, stamp and
signature of the attributing
authority

17. In figures

18. In words for the quantity
attributed

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

Extension pages to be attached hereto

11

EUROPEAN COMMUNITY

SURVEILLANCE DOCUMENT

2

1. Consignee (name, full address, country, VAT number)

2. Issue number

y
t
i
r
o
h
t
u
a
g
n
u
s
s
i

i

e
h
t

r
o
f

y
p
o
C

2

3. Proposed place and date of import

4. Authority responsible for issue
(name, address and telephone No)

5. Declarant/representative as applicable

(name and full address)

6. Country of origin

(and geonomenclature code)

7. Country of consignment

(and geonomenclature code)

8. Last day of validity

9. Description of goods

10. CN code and category

11. Quantity in kilograms (net mass) or
in additional units

12. Value in euros, cif at Community
frontier

13. Additional remarks

14. Competent authority’s endorsement

Date :

Signature:

Stamp:

12

 
 
 
 
15. ATTRIBUTIONS

Indicate the quantity available in part 1 of column 17 and the quantity attributed in part 2 thereof

16. Net quantity (net mass or other unit of measure
stating the unit)

19. Customs document

(form and number) or
extract No and date
of attribution

20. Name, Member State, stamp and
signature of the attributing
authority

17. In figures

18. In words for the quantity
attributed

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

1.

2.

Extension pages to be attached hereto

13

1 Exporter (name, full address, country)

ORIGINAL

2

No

APPENDIX III

3 Year

4 Product group

5 Consignee (name, full address, country)

EXPORT DOCUMENT

(ECSC and EC steel products)

6 Country of origin

7 Country of destination

8 Place and date of shipment – means of
transport

9 Supplementary details

10 Description of goods - manufacturer

11 CN code

12 Quantity(1)

13 Fob value(2)

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14 CERTIFICATION BY THE COMPETENT AUTHORITY

15 Competent authority (name, full address,
country)

At …………………………………. on ………………………………………

(Signature)

(Stamp)

14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Exporter (name, full address, country)

COPY

2

No

3 Year

4 Product group

5 Consignee (name, full address, country)

EXPORT DOCUMENT

(ECSC and EC steel products)

6 Country of origin

7 Country of destination

8 Place and date of shipment – means of
transport

9 Supplementary details

10 Description of goods - manufacturer

11 CN code

12 Quantity(1)

13 Fob value(2)

14 CERTIFICATION BY THE COMPETENT AUTHORITY

15 Competent authority (name, full address,
country)

At …………………………………. on ………………………………………

(Signature)

(Stamp)

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15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX IV

UKRAINE

Technical Annex on the double-checking system

1.    The  export    documents  shall  measure  210  ×  297  mm.  The  paper  used  shall  be
white  writing  paper,  sized,  not    containing  mechanical  pulp,  and  weighing  not  less
than  25  g/m².  They  shall  be  made  out  in  English.    If  they  are  completed  by  hand,
entries  must  be  in  ink  and  in  printed  script.  These  documents  may    comprise
additional  copies  duly  indicated  as  such.  If  the  documents  have  several  copies  only
the  top copy is the original. This copy shall be clearly marked as 'original` and other
copies as  'copies`. Only the original shall be accepted by the competent authorities of
the  Community  as    being  valid  for  the  control  of  export  to  the  Community  in
accordance with the provisions of the  double-checking system.

2.  Each document shall bear a standardised serial number, whether or not printed, by
which it can  be identified. This number shall be composed of the following elements:

-  two letters identifying the exporting country as follows: UA = Ukraine,

-  two letters identifying the intended Member State of customs clearance as follows:

BE =  Belgium

DK =  Denmark

DE =  Germany

EL =  Greece

ES =  Spain

FR =  France

IE =  Ireland

IT =  Italy

LU =  Luxembourg

NL =  Netherlands

AT =  Austria

PT =  Portugal

FI =  Finland

SE =  Sweden

GB =  United Kingdom

-    a  one-digit  number  identifying  the  year,  corresponding  to  the  last  figure  in  the
respective  year, e.g. “2” for 2002,

16

-    a  two-digit  number  from  01  to  99,  identifying  the  particular  issuing  office
concerned in the  exporting country,

-    a  five-digit  number  running  consecutively  from  00001  to  99999  allocated  to  the
intended Member  State of customs clearance.

3.  The export documents shall be valid for the calendar  year during which they are
issued, as shown in Box N° 3 of the export document.

4.  Since the importer needs to present the original export document when requesting
an import  document, export documents should, as far as possible, be issued in respect
of individual commercial transactions, not global contracts.

5.    Ukraine  need  not  show  price  information  on  the  export  document,  but  that
information is available to the Commission authorities on request.

6.  Export documents may be issued after the shipment of the products to which they
relate. In such  cases they must bear the endorsement 'issued retrospectively`.

7.  In the event of a theft, loss or destruction of an export document, the exporter may
apply  to    the  competent  governmental  authority  which  issued  the  document  for  a
duplicate to be made out on  the basis of the export documents in his possession. The
duplicate of any such document so issued  shall bear the endorsement 'duplicate`. The
duplicate shall bear the date of the original export  document.

 8.  The competent authorities of the Community shall be informed immediately of the
withdrawal  or    modification  of  any  export  documents  already  issued  and,  where
relevant, of the basis for such action.

17

FINANCIAL STATEMENT

1.

2.

3.

Budget heading involved:

Chapter 12

Legal Basis:

Article 133 EC treaty

Title of measure:

Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European
Community and the Government of Ukraine establishing a double-checking
system  without  quantitative  limits  in  respect  of  the  export  of  certain  steel
products  covered  by  the  EC  and  ECSC  Treaties  from  the  Ukraine  to  the
European Community.

4.

Purpose:

To establish a double-checking system without quantitative limits in respect
of the export of certain steel products covered by the EC and ECSC Treaties
from Ukraine to the European Community

5.

Method of calculation:

The double-checking system without quantitative limitations has no financial
implications for the Community budget

18