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 Russian Federation 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 Russian Federation to the European Community
Date: 2002-01-07
Institutions: European Commission
Subjects: Russia, customs inspection, export, iron and steel product, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.1.2002
COM(2001) 815 final

2002/0002 (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 Russian Federation 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 Russian Federation
to the European Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Community’s  Partnership  and  Cooperation  Agreement  with  the  Russian  Federation
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

2002/0002 (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 Russian Federation 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 Russian Federation
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  Russian
Federation, of the other part 1, entered into force on 1 December 1997,

The  European  Community  and  the  Russian  Federation  agreed  to  establish  a  double-
checking  system  in  respect  of  certain  steel  products  for  the  period  ranging  from
13 October 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 97/741/EC2. The system was extended for the period ranging from 1 January
2000  to  31  December  2001  by  means  of  Council  Decision  2000/294/EC3.  Council
Regulation  (EC)  N°2135/974,  extended  by  Council  Regulation  (EC)  N°  793/20005,
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  the  Russian  Federation
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
Russian Federation to the European Community,

1
2 
3 
4 
5 

OJ L 327, 28.11.1997, p.3.
OJ L 300, 4.11.97, p. 36.
OJ L 96, 18.4.2000, p. 44.
OJ L 300, 4.11.97, p. 1.
OJ L 96, 18.4.2000, 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  the  Russian  Federation  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  Russian  Federation  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 the Russian Federation 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 Russian
Federation 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  Russian  Federation  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,  the
Russian  Federation  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 the Russian Federation, 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 RUSSIAN FEDERATION

 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  Russian  Federation  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,  the
Russian  Federation  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 the Russian Federation, 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 Russian Federation.

6

ANNEX

to the Agreement in the form of and Exchange of Letters between the European
Community and the Russian Federation 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 Russian Federation 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  the  Russian  Federation  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 the
Russian Federation shall, in addition, be subject  to the issue of an export document
by the competent Russian 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.    The  Russian  Federation  shall  notify  the  Commission  of  the  European
Communities  of  the  names  and    addresses  of  the  appropriate  Russian  governmental
authorities which are authorised to issue and to verify export documents together with
specimens of  the  stamps  and  signatures  they  use.  The  Russian  Federation  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  the  Russian
Federation 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.  The  Russian  Federation  undertakes  to  supply  the  Community  with  precise
statistical    information  on  the  export  documents  issued  by  the  Russian  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  Russian  authorities  with  precise
statistical information on surveillance documents issued by Member States in respect
of  the  export  documents  issued  by  the  Russian  authorities  pursuant  to  1.1.  Such
information  shall  be  transmitted  to  the  Russian  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 in the form of an Exchange
of Letters. Such consultations shall be held promptly.  Any consultations held under
this Article 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  the  Russian  Federation,  to  the  Ministry  for  Foreign  Economic
Relations, Department for Regulation of External Economic Activities.

8

APPENDIX I

List of products subject to double-checking without quantitative limits

Russian Federation

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

RUSSIAN FEDERATION

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: RU = Russian Federation,

-  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,

-  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.  The Russian Federation need not show price information on the export documentbut that
information is available to the competent 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  Russian  Federation  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 Russian Federation 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
Russian Federation to the European Community

5.

Method of calculation:

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

18