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 Republic of Kazakhstan 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 Republic of Kasakhstan to the European Community
Date: 2002-01-07
Institutions: European Commission
Subjects: Kazakhstan, customs inspection, export, iron and steel product, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 07.01.2002
COM(2001) 820 final

2002/0006 (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 Republic of Kazakhstan 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 Republic of Kasakhstan to the
European Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Community’s  Partnership  and  Cooperation  Agreement  with  Kazakhstan  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

2002/0006 (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 Republic of Kazakhstan 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 Republic of Kasakhstan 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 the Republic of
Kazakhstan, of the other part1, entered into force on 1 July 1999,

The  European  Community  and  the  Republic  of  Kazakhstan  agreed  to  establish  a
double-checking system in respect of certain steel products for the period ranging from
1 January 2000 to 31 December 2001.  This Agreement in the form  an Exchange of
Letters  was  approved  on  behalf  of  the  European  Community  by  means  of  Council
Decision  1999/865/EC2.    Council  Regulation  (EC)  N°2743/19993  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  the  Republic  of
Kazakhstan  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 Republic of Kazakhstan to the European Community,

1 
2 
3 

OJ L 196, 28.07.1999, p.3.
OJ L 342, 31.12.1999, p. 37
OJ L 342, 31.12.1999, 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 the Republic of Kazakhstan 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  Republic  of  Kazakhstan  to  the  European
Community is hereby approved on behalf of the European Community.

2.

The text of the Agreement4 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

2

 See page ... of this Official Journal.

4

                                                
Agreement in the form of an Exchange of Letters between the European Community
and the Government of the Republic of Kazakhstan 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 Kazakhstan to the European Community

LETTER FROM THE COUNCIL OF THE EUROPEAN UNION

Sir,

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 Republic of Kazakhstan 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, Kazakhstan 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
Kazakhstan, 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 THE REPUBLIC OF KAZAKHSTAN

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 Republic of Kazakhstan 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, Kazakhstan 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
Kazakhstan, 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 the Republic of Kazakhstan.

6

ANNEX

to the Agreement in the form of and Exchange of Letters between the European
Community and the Government of Kazakhstan 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 Kazakhstan 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  Kazakhstan
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  Kazakhstan  shall,  in  addition,  be
subject  to  the  issue  of  an  export  document  by  the  competent  Kazakhstan  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. Kazakhstan shall notify the Commission of the European Communities of the names and
addresses  of  the  appropriate  Kazakhstan  governmental  authorities  which  are  authorised  to
issue  and  to  verify  export  documents  together  with  specimens  of  the  stamps  and  signatures
they use. Kazakhstan 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  Kazakhstan  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.

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

2.1. Kazakhstan undertakes to supply the Community with precise statistical information on
the export documents issued by the Kazakhstan 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.

7

2.2. The Community undertakes to supply the Kazakhstan authorities with precise statistical
information  on  surveillance  documents  issued  by  Member  States  in  respect  of  the  export
documents  issued  by  the  Kazakhstan  authorities  pursuant  to  1.1.  Such  information  shall  be
transmitted  to  the  Kazakhstan  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  Kazakhstan,  to  the  Mission  of  the  Republic  of  Kazakhstan  to  the
European Communities.

8

APPENDIX I

List of products subject to double-checking without quantitative limits

Kazakhstan

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

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

KAZAKHSTAN

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: KZ = Kazakhstan,

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

DK = Denmark

DE = Germany

EL = Greece

ES

= Spain

FR = France

IE

IT

= Ireland

= Italy

LU = Luxembourg

NL = Netherlands

AT = Austria

PT

FI

SE

= Portugal

= Finland

= 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,

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

16

-  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. Kazakhstan 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

Title of measure:

Agreement in the form of an Exchange of Letters between the European Community
and  the  Republic  of  Kazakhstan  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 Republic of Kazakhstan 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  the
Republic of Kazakhstan to the European Community

5.

Method of calculation:

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

18