Proposal for a Council Decision on the signature on behalf of the Community of an additional Protocol to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, on Conformity Assessment and Acceptance of Industrial Products # Proposal for a Council Decision on the conclusion of an additional Protocol to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, on Conformity Assessment and Acceptance of Industrial Products - PECA -
Date: 2002-03-05
Institutions: Provisional data
Subjects: Latvia, approval, association agreement (EU), industrial product, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 05.03.2002
COM(2002)111 final

2002/0057 (ACC)
2002/0058 (ACC)

Proposal for a

COUNCIL DECISION

on the signature on behalf of the Community of an additional Protocol to the Europe
Agreement establishing an Association between the European Communities and their
Member States, of the one part, and the Republic of Latvia, of the other part, on
Conformity Assessment and Acceptance of Industrial Products

Proposal for a

COUNCIL DECISION

on the conclusion of an additional Protocol to the Europe Agreement establishing an
Association between the European Communities and their Member States, of the one
part, and the Republic of Latvia, of the other part, on Conformity Assessment and
Acceptance of Industrial Products
- PECA -

(presented by the Commission)

EXPLANATORY MEMORANDUM

I. EXPLANATORY MEMORANDUM

On the basis of negotiating directives adopted by the Council on 21.9.1992 and of the specific
decision issued by the Council in June 1997 addressing guidelines to the Commission for the
negotiation of European Conformity Assessment Agreements with Central and Eastern
European Countries, the Commission has negotiated and initialled an additional protocol to
the Europe Agreement with Latvia (Protocol to the Europe Agreement on Conformity
assessment and Acceptance of industrial products, hereinafter referred to as "PECA").

The text of this Protocol is attached to this Communication. The following provides an
assessment of the Protocol in the light of the negotiating directives approved by the Council,
and proposes that the Council authorises the signature of the additional Protocol to the Europe
Agreement and decides to approve its conclusion on behalf of the Community. This
assessment and these proposals are similar to the relevant documents for the PECAs
concluded by the Council with Hungary and the Czech Republic.

I.1 ASSESSMENT OF THE AGREEMENT

Considering that this agreement is intended to work only during the pre-accession period, and
that an appropriate legal framework was offered by the Europe Agreement, it was decided, in
consultation with the 133 Committee, to adopt this agreement as a Protocol to the Europe
Agreement rather than an stand alone agreement as foreseen previously.

The draft PECA follows the general principles laid down in the Commission's communication
on Community External Trade Policy in the field of standards and conformity assessment1
under its paragraph 49. The PECA is a transitional arrangement, and thus will terminate with
the candidate country accession.

The PECA provides for an extension of certain benefits of the Internal Market in sectors
already aligned. The PECA thus facilitates market access by eliminating technical barriers to
trade with respect to industrial products. To this end, the PECA provides for two mechanisms,
a) for the mutual acceptance of industrial products which fulfil the requirements to be
lawfully placed on the market in one of the Parties, and b) the mutual recognition of the
results of conformity assessment of industrial products subject to Community law and to the
equivalent national law.

The first mechanism, i.e. the mutual acceptance of industrial products, confirms that Articles
9.4 and 10.4 of the Europe Agreement with Latvia apply without other restriction as referred
to in Article 35 of the Europe Agreement. This provision adds the predictability that is
necessary to manufacturers and exporters, confirming in advance that industrial products
under this mechanism may freely move between the Parties. The annexes making this
mechanism operational have still to be negotiated.

The second mechanism is a particular type of mutual recognition agreement (MRA) in which
the mutual recognition operates on the basis of the acquis communautaire. It allows industrial
products certified by Notified Bodies in the European Union to be placed on the Latvian
market without having to undergo any further approval procedures, and vice-versa. The

1

COM (96) 564 - final. 13.11.1996

2

following sectors are covered: electrical safety, electromagnetic compatibility,
construction products.

toys and

The draft with Latvia is fully in line with the PECAs concluded on 4th April 2001 by the
Council with Hungary and the Czech Republic2. Latvia has taken over the Community
technical legislation in the sectors covered by the Protocol and participates in the European
organisations in the field of standards, metrology, testing laboratories and accreditation.

The PECA consists of a framework agreement and a series of annexes as referred to above. A
unilateral Community declaration inviting the Latvian representatives to experts meetings and
committees established under the Community law referred to in the annexes is attached to the
Final Act, making it clear that this will not entail any participation in the Community
decision-making process. An assessment of the PECA is made in the next paragraphs.

I.1.1 Framework Agreement

An article-by-article assessment follows:

Pre-amble. This sets out the basic objective of the PECA which is that, as the application for
membership of the European Union implies the implementation of the acquis communautaire
by the applicant country, it provides the opportunity to extend certain benefits of the Single
Market in certain sectors already aligned before.

Article 1: Purpose. This article establishes the purpose of the PECA, namely the elimination
of technical barriers to trade in respect to industrial products. The PECA provides for two
mechanisms, a) for the mutual acceptance of industrial products which fulfil the requirements
to be lawfully placed on the market in one of the Parties, and b) the mutual recognition of the
results of conformity assessment of industrial products subject to Community law and to the
equivalent national law.

is

industrial products,
Article 2: Definitions. This
legislation and
law have been included. All pieces of
Community and national
implementation measures
(administrative provisions, guidelines and other means of
/implementation of the legislation) are covered by the definitions of Community and national
law.

self-explanatory. Definitions of

Article 3: Alignment of legislation. This contains a commitment for Latvia to take
appropriate measures in order to maintain or complete the take-over of Community law,
namely in the field of technical legislation and for the purpose of the PECA. Together with
the 4th whereas, it means that the alignment is an ongoing process and the Parties agree to iron
out any problems of transposition that could appear later.

Article 4: Mutual acceptance of industrial products. The principle under Article 1.1) is
detailed in this article. It provides that listing industrial products in such annexes will confirm
that these products can freely circulate between the Parties. As already stated, no such annex
has been negotiated yet.

2

Council Decision 2001/365/EC of 4 April 2001 on the conclusion of a PECA with the Czech Republic
(OJ L 135, 17.05.2001, p.1) Council Decision 2001/366/EC of 4 April 2001 on the conclusion of a
PECA with Hungary (OJ L 135, 17.05.2001, p.35)

3

Article 5: Mutual recognition of the results of conformity assessment procedures. This
provision expands the principle under Article 1.2). This kind of recognition is similar to the
one in Mutual Recognition Agreements, with the special feature that all legislation and
standards are aligned. The sectoral annexes will contain the references to the relevant
Community and national legislation.

Article 6: Safeguard clause. This sets up the right of each Party to deny market access when
such Party is able to demonstrate that a product might endanger the legitimate concern which
is protected by legislation listed in the annexes (safety and/or public health of users or other
persons mainly). The annexes provide for the detailed procedures to be used in such cases.

Article 7: Extension of coverage. The Parties may modify the scope and coverage of this
Protocol through an amendment of the annexes or by the addition of new annexes as soon as
all alignment conditions are met.

Article 8: Origin. The provisions of this Protocol shall apply to industrial products
irrespective of their origin.

Article 9: Obligations of Parties as regards their authorities and bodies. This article
their respective authorities continuously monitor the
obliges the Parties to ensure that
technical competence and compliance of the notified bodies and have the necessary power
and expertise for designating, suspending, and withdrawing their bodies. In addition,
it
obliges the Parties to ensure that their respective notified bodies continuously comply with the
requirements of Community or national law and maintain their technical competence to carry
out the tasks for which they have been notified.

Article 10: Notified bodies. This describes the procedure for the notification of bodies to
assess conformity in relation to the legal requirements specified in the corresponding annexes.
The procedure is simplified and similar to the one applied within the Community. The second
paragraph sets out the procedure for the removal of notified bodies.

Article 11: Verification of notified bodies. This article gives the right to one Party to request
a verification of a body notified by the other Party. The verification may be done either by the
authorities which have designated the body or together by the authorities of both Parties. If
the Parties do not agree on appropriate steps to take, they may notify the Chair of the
Association Council of their dissent, and leave to the Association Council to decide on
appropriate action. The notified body would then be suspended from the notification of the
Association Council until a final decision is taken.

Article 12: Exchange of information. A transparency provision to ensure a correct and
uniform application and interpretation of the Protocol. The Parties are advised to encourage
their bodies to co-operate in order to establish mutual recognition agreements in the voluntary
sphere.

Article 13: Confidentiality. A classical provision to avoid disclosing information acquired
under this Protocol.

Article 14: Management of the Protocol. The Association Council will be responsible for its
effective functioning and may delegate its duties in conformity with the relevant Articles of
the Europe Agreement.

Article 15: Technical co-operation and assistance. This confirms the Community policy on
technical co-operation and assistance with a view to properly implementing this Protocol.

4

Article 16: Agreements with other countries. This confirms that, unless otherwise agreed,
the PECA does not entail any obligation, for one Party, to accept conformity assessments
carried out in another country, even if there is an agreement on recognition of conformity
assessment between the other Party and any other third country.

Article 17: Entry into force. This is a standard provision that provides the arrangement for
the entry into force.

Article 18: Status of the Protocol. This establishes the fact that the PECA is an integral part
of the Europe Agreement.

I.1.2 The Annexes to the Protocol

I.1.2.1 Annexes on Mutual Recognition of Results of Conformity Assessment

There follows an assessment of the content of the annexes in terms of their coverage, and
other implications where relevant. In making this assessment, the Commission has kept in
mind the following elements:

a)

b)

the overall consistency with the Community policy objectives in the field of
standardisation, certification and conformity assessment for the sectors and industrial
products covered;

the overall consistency with Community policy objectives in the field of the removal of
technical barriers to trade;

The sectoral assessment is followed in item I.2 by an overall appreciation of the benefits of
the Protocol.

Annexes on Electrical Safety, Electromagnetic Compatibility, Toys and Construction
products.

These annexes on mutual recognition of results of conformity assessment cover a range of
industrial products subject to third party conformity assessment under the New Approach
Directives in the relevant sectors All these annexes present the same structure.

Coverage is determined by the relevant Community or national law, listed under Section I of
each annex. Section II, on notifying authorities,
lists the authorities responsible for the
designation of bodies in the Member Sates and Latvia. Section III, on notified bodies, makes
reference to the notification of all Conformity Assessment Bodies notified by the Member
States and by Latvia. Section IV, on specific arrangements, fixes the two procedures for the
safeguard clause, relating to industrial products and to harmonised standards.

For Toys, two specific provisions are included in Section IV. According to the first, the
notifying authorities may obtain on request a copy of the certificate, and, on reasoned request,
a copy of the technical file and reports on the examination and tests carried out. The second
one concerns the notification by Latvian bodies to its Ministry of Economy when refusing to
issue an EC-type examination certificate and the subsequent notification to the European
Commission.

The annex on construction products shall only apply on products covered by harmonised
standards and corresponding Latvian national standards.

5

I.1.2.2 Annexes on Mutual Acceptance of Industrial Products

No such annexes have been negotiated for the moment. The PECA, in line with the Europe
Agreement, provides nevertheless the basis for such acceptance of products, similar to the one
which operates in the Community.

I.1.2.3 Unilateral Declaration

This is attached to the Final Act and is annexed to this Communication.

a) Unilateral Community Declaration relating to attendance of
the Latvian
representatives to Committees. Through this declaration, Latvia is invited to send observers
to the meetings of the Committees established or referred to under the Community legislation
included in the annexes. This declaration follows the principles of
the Commission
Communication on "Participation of candidate countries in Community programmes, agencies
and committees"3.

I.1.3 Relations with EFTA /EEA Member Countries

In accordance with the general information and consultation procedures set out
in the
European Economic Area-Agreement and Protocol 12 of that Agreement, the Commission
kept EFTA/EEA Member Countries regularly informed on the progress of the negotiations
and informed them on the final result thereof. The EFTA/EEA Member Countries are in the
initial stage of negotiating a parallel mutual recognition agreement with Latvia.

I.2 OVERALL APPRECIATION

The Commission considers that the proposed PECA creates an acceptable balance of benefits
for all parties in the pre-accession framework. In all sectors the Community has secured
effective market access - in terms of access to all mandatory procedures of the other party.
The PECA confirms that Latvia has taken over the Community legislation in certain sectors
before its accession. Both political and commercial benefits are achieved with the PECA.

The Protocol will allow Community exporters, if they so choose, to test and certify their
industrial products to the same (aligned) requirements prior to export, and then access that
market without any further conformity assessment requirements. The certification procedures
will only need to be carried out one time for both markets and against the same aligned
requirements or standards. The recognition of certification will permit savings and stimulate
exports. European industry federations were consulted and supported unequivocally the
Protocol.

Industrial groups, while supporting the Protocol, have not always been able to quantify the
costs or time taken to obtain conformity assessment of their industrial products in Latvia. The
precise extent of savings in time, cost and market opportunity of this Protocol is therefore not
feasible in every case to determine. This may only be possible once the Protocol has been in
operation for some time. However, on the basis of a rough calculation, it is estimated4 that
this Protocol would create cost saving opportunities for the exporting industry of around
2.5
360,000 in terms of cost savings to exporters to the EC, some of which
millions and about
will be passed on to European importers and consumers.

€

€

3

4

Point 4.2.b. COM (99)710 – final 20.12.1999.
Working hypothesis that certification and other related costs amount to an average of 1.5 % of trade

6

Trade figures between the EC and Latvia are attached for information. In 2000, the general
140
trade balance in sectors covered by this Protocol shows a trade surplus for EU of around
million (factor of 6.9:1 varying from 3.5:1 in the toys sector to 7.3:1 in the electrical sector).
However, the trade surplus is for Latvia in the construction products sector ( at this stage,
Portland cement). It is expected that trade will increase further when the PECA is in force.

€

In fact, most benefits are clearly not quantifiable, such as reduced time for accessing markets,
better predictability,
less protectionism, and harmonisation of systems. What can be
ascertained is that any agreement provides reciprocal levels of market access, in terms of
conformity assessment.

These advantages outweigh greatly the resources that the Commission will have to engage in
maintenance activities of the Protocol, evaluated at 0.8 person per year and some travel and
other expenses relating to meetings and other activities such as editing guides.

In terms of the benefits to Latvia, the PECA will facilitate access to the Community market
and will give political credit for having aligned its legislation. Latvia regards the PECA as a
means to develop closer industrial relations with the EU and fully to integrate certain sectors
with the Single Market before accession.

II. THE DRAFT COUNCIL DECISIONS

A proposal for two Council decisions is attached. Both are similar to the Commission
proposals for the previous Council decisions on the signature on behalf of the Community and
conclusion of the PECAs with Hungary and the Czech Republic5

The first one is concerned with the signature of the Protocol. Signature is required by Latvia
for the adoption of this Protocol. It is accordingly proposed that the President of the Council
be authorised to designate the person empowered to sign the Protocol on behalf of the
Community, subject to conclusion later, on the basis of Articles 133 and 300 of the Treaty.

The proposal for a second decision is concerned with the adoption of the PECA. In this
context, the Council should, in line with the previous Council decisions on the conclusion of
PECAs and mutual recognition agreements, establish the appropriate Community procedure
for the implementation and management of the Protocol.

In particular, the Council should confer on the Commission, in consultation with the special
committee appointed by the Council,
the necessary powers for the management and
implementation of the Protocol. Moreover, the Council should delegate to the Commission,
acting in consultation with the special committee, the necessary powers to determine in
certain cases the Community position with regard to this Protocol in the Association Council,
or where applicable the Association Committee.

In all other cases the Community position with respect to the Protocol shall be determined by
the Council, acting by qualified majority, on a proposal from the Commission.

The Commission therefore proposes that the Council adopts the attached decisions on the
signature and conclusion of the PECA.

5

For the Czech Republic, Council decision 2001/365/EC of 4 April 2001 (OJ L 135, 17.05.2002, p.1).
For Hungary, Council decision 2001/366/EC of 4 April 2001 (OJ L 135, 17.05.2002, p.35)

7

EU-Latvia Trade - Annex to the Explanatory Memorandum to the Council

EU trade with Latvia (1000 Ecu)

1998

1999

2000

IMPORT EXPORT Balance Total Trade IMPORT EXPORT Balance Total Trade IMPORT EXPORT Balance

Total Trade

TOTAL Trade

1.342.494 1.819.374 476.880

3.161.869 1.373.814 1.590.076 216.261

2.963.890 1.853.057 1.945.243

92.187

3.798.300

Electrical sector

26.563

138.204 111.641

164.767

17.528

127.952 110.424

145.480

19.096

149.005

129.909

168.101

Toys

2.383

9.836

7.453

12.219

2.369

9.041

6.672

11.410

3.910

14.909

10.999

18.818

Portland Cement

7.202

60

-7.141

7.262

4.339

2

-4.337

4.341

1.336

4

-1.332

1.339

PECA sectors

36.147

148.100 111.953

184.247

24.236

136.995 112.759

161.231

24.341

163.917

139.576

188.259

Machinery

Lifts

Simple Pressure Vessel

Pressure Equip

Pharmaceuticals

9.407

232.729 223.321

242.136

12.661

246.202 233.541

258.862

24.183

310.667

286.484

334.850

4

59

873

496

1.310

1.307

1.314

2

1.525

1.523

1.527

428

369

487

251

251

251

14

27

1.700

1.686

1.714

294

268

321

28.881

28.008

29.754

39.749

39.253

40.245

969

530

27.652

26.683

28.621

2.133

27.539

25.406

29.672

39.150

38.620

39.679

1.005

45.853

44.847

46.858

Telecomm Term Equip

692

25.433

24.741

26.124

371

27.435

27.064

27.806

834

25.908

25.074

26.743

Proposed
extension

sectors/1st

11.530

328.529 316.999

340.059

14.533

342.214 327.681

356.747

28.196

411.962

383.766

440.157

8

2002/0057 (ACC)

Proposal for a

COUNCIL DECISION

on the signature on behalf of the Community of an additional Protocol to the Europe
Agreement establishing an Association between the European Communities and their
Member States, of the one part, and the Republic of Latvia, of the other part, on
Conformity Assessment and Acceptance of Industrial Products

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission6,

Whereas:

(1)

(2)

(3)

(4)

The Europe Agreement
establishing an association between the European
Communities and their Member States, of the one part, and the Republic of Latvia of
the other part, 7 entered into force on 1 February 1998.

Article 76 the Europe Agreement provides that co-operation in the fields of
standardisation and conformity assessment shall seek to achieve the conclusion of
agreements on mutual recognition.

The Protocol to the Europe Agreement on Conformity Assessment and Acceptance of
Industrial Products has been negotiated by the Commission on behalf of the
Community.

Subject to its possible conclusion at a later date, the Protocol to the Europe Agreement
on Conformity Assessment and Acceptance of Industrial Products initialled in
Brussels on 10 July 2000 and 5 April 2001 should be signed,

HAS DECIDED AS FOLLOWS:

6

7

OJ C […], […], p. […].
OJ No L 26, 02.02.1998, p. 3.

9

Sole Article

Subject to a possible conclusion at a later date, the President of the Council is hereby
authorised to designate the person empowered to sign, on behalf of the Community, the
Protocol to the Europe Agreement with the Republic of Latvia on Conformity Assessment
and Acceptance of Industrial Products.

Done at Brussels,

For the Council
The President

10

2002/0058 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an additional Protocol to the Europe Agreement establishing an
Association between the European Communities and their Member States, of the one
part, and the Republic of Latvia, of the other part, on Conformity Assessment and
Acceptance of Industrial Products
- PECA -

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof, in conjunction with the first sentence of the first subparagraph of Article
300(2), the first sentence of the first subparagraph of Article 300(3) and Article 300(4)
thereof,

Having regard to the proposal from the Commission8,

Whereas:

(1) The Europe Agreement establishing an association between the European Communities
and their Member States, of the one part, and the Republic of Latvia of the other part, 9
entered into force on 1 February 1998.

(2) Article 76(2) of the Europe Agreement provides that cooperation in the fields of
standardisation and conformity assessment shall seek to achieve the conclusion of
agreements on mutual recognition.

(3) Article 114(2) of the Europe Agreement provides that the Association Council may

delegate to the Association Committee any of its powers.

(4) Article 2 of Decision 98/98/EC, ECSC, Euratom of the Council and the Commission of
19 December 1997 on the conclusion of the Europe Agreement between the European
Communities and their Member States, of the one part, and the Republic of Latvia, of
the other part, 10 provides for the Community decision-making procedures and for the
presentation of the Community position in the Association Council and in the
Association Committee.

(5) Article 14 of Decision No 1/98 of the Association Council between the European
Communities and their Member States, of the one part, and the Republic of Latvia, of
the other part of 23 February 1998 on its rules of procedure11 provides that
the

8

9

10

11

OJ C , , p. .
OJ L 26, 02.02.1998, p. 3.
OJ L 26, 02.02.1998, p. 1.
OJ L 73, 12.03.1998, p. 31.

11

Association Committee may set up further subcommittees or groups to assist in carrying
out its duties.

(6) The draft Protocol to the Europe Agreement on Conformity Assessment and Acceptance
of Industrial Products, has been signed in Brussels on [… 2000], on behalf of the
Community, and should be approved.

(7) Certain tasks for implementation have been conferred to the Association Council and in

particular the power to amend the Annexes to the Protocol.

(8) The appropriate internal procedures should be established to ensure the proper

functioning of the Protocol.

(9)

It is necessary to empower the Commission to make certain technical amendments to
this Protocol and to take certain decisions for its implementation,

HAS DECIDED AS FOLLOWS:

Article 1

The Protocol
to the Europe Agreement with the Republic of Latvia on Conformity
Assessment and Acceptance of Industrial Products (hereinafter referred to as "the Protocol"),
as well as the declaration annexed to the Final Act thereto, are hereby approved on behalf of
the European Community.

The text of the Protocol, and of the declaration annexed to the Final Act thereto, is attached to
this Decision.

The President of the Council shall, on behalf of the Community, transmit the diplomatic note
provided for in Article 17 of the Protocol12.

Article 2

Article 3

1. The Commission, after consultation with the special committee appointed by the Council,

shall:

(a)

(b)

(c)

carry into effect the notifications, acknowledgements, suspensions and withdrawals
of bodies, and appointments of joint team or teams of experts, in accordance with
Articles 10, 11 and 14, indent c) of the Protocol;

bring about the consultations, exchange of information, the requests for verifications
and for participation in verifications, in accordance with Articles 3, 12 and 14,
indents d) and e), and Sections III and IV of the Annexes to the Protocol concerning
electrical safety, electromagnetic compatibility, toys and construction products;

if necessary, reply to requests in accordance with Article 11, Sections III and IV of
the Annexes
safety, electromagnetic
compatibility, toys and construction products.

to the Protocol concerning electrical

12

The date of entry into force of the Protocol will be published in the Official Journal of the European
Communities by the General Secretariat of the Council.

12

2. Following consultation of the special committee referred to in paragraph 1 of this Article,
the Commission shall determine the position to be taken by the Community in the
Association Council and, where applicable, in the Association Committee, with regard to:

(a)

(b)

(c)

(d)

(e)

amendments to the Annexes in accordance with Article 14, point (a) of the
Protocol;

addition of new Annexes in accordance with Article 14, point (b) of the Protocol;

any decisions regarding disagreements on the results of the verifications and the
suspensions, in part or totally, of any notified body in accordance with the second
and third subparagraphs of Article 11 of the Protocol;

any measures taken in the application of the safeguard clauses in Section IV of the
Annexes of the Protocol concerning electrical safety, electromagnetic compatibility,
toys and construction products;

any measures concerning the verification, suspension, or withdrawal of industrial
products as having mutual acceptance under Article 4 of the Protocol.

3.

In all other cases the position to be taken by the Community in the Association Council
and, where applicable, in the Association Committee, with regard to this Protocol shall be
determined by the Council, acting by qualified majority on a proposal from the
Commission.

Done at Brussels,

For the Council
The President

13

ANNEX

Protocol to the Europe Agreement establishing an Association between the
European Communities and their Member States, of the one part, and the Republic
of Latvia, of the other part on Conformity Assessment and Acceptance of
Industrial Products

-PECA-

The European Community and the Republic of Latvia hereinafter referred to as "the
Parties",

Whereas the Republic of Latvia has applied for membership of the European Union and
such membership implies the effective implementation of the acquis of the European
Community,

Recognising that the progressive adoption and implementation of Community law by the
Republic of Latvia provides the opportunity to extend certain benefits of the Internal
Market and to ensure its effective operation in certain sectors before accession,

Considering that, in the sectors covered by this Protocol, the Latvian national law
substantially takes over the Community law,

Considering their shared commitment to the principles of free movement of goods and
to promoting product quality, so as to ensure the health and safety of their citizens and
the protection of the environment, including through technical assistance and other
forms of co-operation between them,

Desiring to conclude a Protocol to the Europe Agreement on Conformity Assessment
and Acceptance of industrial products (hereafter the Protocol) providing for the
application of the mutual acceptance of industrial products which fulfil the requirements
to be lawfully placed on the market in one of the Parties and of the mutual recognition of
the results of conformity assessment of industrial products which are subject
to
Community or national law, noting that Article 76 of the Europe Agreement provides,
where appropriate, for the conclusion of an agreement on mutual recognition,

Noting the close relationship between the European Community and Iceland,
Liechtenstein and Norway through the Agreement on the European Economic Area,
which makes it appropriate to consider the conclusion of a parallel European Conformity
Assessment Agreement between the Republic of Latvia and these countries equivalent to
this Protocol,

Bearing in mind their status as Contracting Parties to the Agreement establishing the
World Trade Organisation, and conscious in particular of their obligations under the
World Trade Organisation Agreement on Technical Barriers to Trade,

Have agreed as follows:

Article 1

Purpose

The purpose of this Protocol is to facilitate the elimination by the Parties of technical
barriers to trade in respect of industrial products. The means to this end is the
progressive adoption and implementation by the Republic of Latvia of national law,
which is equivalent to Community law.

14

This Protocol provides for:

1) the mutual acceptance of industrial products, listed in the annexes on "mutual
acceptance of industrial products”, which fulfil the requirements to be lawfully placed
on the market in one of the Parties;

2) the mutual recognition of the results of conformity assessment of industrial products
subject to Community law and to the equivalent Latvian national law, both listed in the
annexes on "mutual recognition of results of conformity assessment".

Article 2

Definitions

For the purpose of this Protocol,

"Industrial products" means products, as specified in Article 9 and in Protocol 2 of the
Europe Agreement.

“Community law” means any legal act and implementing practice of the European
Community applicable to a particular situation, risk or category of industrial products, as
interpreted by the Court of Justice of the European Communities.

"National law" means any legal act and implementing practice by which the Republic of
Latvia takes over the Community law applicable to a particular situation, risk or
category of industrial products.

The terms used in this Protocol shall have the meaning given in Community law and the
Latvian national law.

Article 3

Alignment of legislation

For the purpose of this Protocol, the Republic of Latvia agrees to take appropriate
measures, in consultation with the European Commission, to maintain or complete the
take-over of Community law, in particular in the fields of standardisation, metrology,
accreditation, conformity assessment, market surveillance, general safety of products,
and producer's liability.

Article 4

Mutual Acceptance of industrial products

The Parties agree that, for the purpose of mutual acceptance, industrial products listed in
the annexes on "mutual acceptance of industrial products", which fulfil the requirements
to be lawfully placed on the market of a Party, may be placed on the market of the other
Party, without further restriction. This shall be without prejudice to Article 35 of the
Europe Agreement.

Article 5

Mutual Recognition of the results of conformity assessment procedures

The Parties agree to recognize the results of conformity assessment procedures carried
out in accordance with the Community or national law listed in the annexes on "mutual
recognition of the results of conformity assessment". The Parties shall not require
procedures to be repeated, nor shall they impose additional requirements, for the
purposes of accepting that conformity.

15

Article 6

Safeguard clause

Where a Party finds that an industrial product placed on its territory by virtue of the
present Protocol, and used in accordance with its intended use, may compromise the
safety or health of users or other persons, or any other legitimate concern protected by
legislation identified in the annexes, it may take appropriate measures to withdraw such
a product from the market, to prohibit its placing on the market, putting into service or
use, or to restrict its free movement. The annexes shall provide for the procedure to be
applied in such cases.

Article 7

Extension of Coverage

As the Republic of Latvia adopts and implements further national law taking over
in
Community law,
accordance with the procedure laid down in Article 14.

the Parties may amend the annexes or conclude new ones,

Article 8

Origin

The provisions of this Protocol shall apply to industrial products irrespective of their
origin.

Article 9

Obligation of Parties as regards their authorities and bodies

The Parties shall ensure that authorities under their jurisdiction which are responsible for
the effective implementation of Community and national law shall continuously apply it.
Further, they shall ensure that these authorities are able, where appropriate, to notify,
suspend,
to ensure the
conformity of industrial products with Community or national law or to require their
withdrawal from the market.

remove suspension and withdraw notification of bodies,

The Parties shall ensure that bodies, notified under their respective jurisdiction to assess
conformity in relation to requirements of Community or national law specified in the
annexes, continuously comply with the requirements of Community or national law.
Further, they shall take all necessary steps to ensure that these bodies maintain the
necessary competence to carry out the tasks for which they are notified.

Article 10

Notified bodies

Initially, the bodies notified for the purpose of this Protocol will be those included in the
lists which the Republic of Latvia and the European Community have exchanged before
the completion of the procedures for entry into force

Afterwards, the following procedure shall apply for the notification of bodies to assess
conformity in relation to the requirements of Community or national law specified in the
annexes:

a) a Party shall forward its notification to the other Party in writing;

16

b) on the acknowledgement of the other Party, given in writing, the body will be
considered as notified and as competent
to assess conformity in relation to the
requirements specified in the annexes from that date.

If a Party decides to withdraw a notified body under its jurisdiction, it shall inform the
other Party in writing. The body will cease to assess conformity in relation to the
requirements specified in the annexes from the date of its withdrawal at the latest.
Nevertheless, conformity assessment carried out before that date shall remain valid,
unless otherwise decided by the Association Council.

Article 11

Verification of notified bodies

Each Party may request
the other Party to verify the technical competence and
compliance of a notified body under its jurisdiction. Such request will be justified in
order to allow the Party responsible for the notification to carry out the requested
verification and report speedily to the other Party. The Parties may also jointly examine
the body, with the participation of the relevant authorities. To this end, the Parties shall
ensure the full co-operation of bodies under their jurisdiction. The Parties shall take all
appropriate steps, and use whatever available means may be necessary, with a view to
resolving any problems which are detected.

If the problems cannot be resolved to the satisfaction of both Parties, they may notify the
chairman of the Association Council of their dissent, giving their
reasons. The
Association Council may decide on appropriate action.

Unless and until decided otherwise by the Association Council, the notification of the
body and the recognition of its competence to assess conformity in relation to the
requirements of Community or national law specified in the annexes shall be suspended
in part or totally from the date on which the disagreement of the Parties has been
notified to the chairman of the Association Council.

Article 12

Exchange of information and Co-operation

In order to ensure a correct and uniform application and interpretation of this Protocol,
the Parties, their authorities and their notified bodies shall:

a) exchange all relevant information concerning implementation of law and practice
including, in particular, on procedure to ensure compliance of notified bodies;

b) take part, as appropriate, in the relevant mechanisms of information, co-ordination
and other related activities of the Parties.

c) encourage their bodies to co-operate with a view to establishing mutual recognition
arrangements in the voluntary sphere.

Article 13

Confidentiality

Representatives, experts and other agents of the Parties shall be required, even after their
duties have ceased, not to disclose information acquired under this Protocol which is of
the kind covered by the obligation of professional secrecy. This information may not be
used for purposes other than those envisaged by this Protocol.

17

Article 14

Management of the Protocol

Responsibility for the effective functioning of this Protocol shall be held by the
Association Council in conformity with Article 110 of the Europe Agreement. In
particular, it shall have the power to take decisions regarding:

a) amending the annexes;

b) adding new annexes;

c) appointing a joint team or teams of experts to verify the technical competence of a
notified body and its compliance with the requirements;

d) exchanging information on proposed and actual modifications of the Community and
national law referred to in the annexes;

e) considering new or additional conformity assessment procedures affecting a sector
covered by an annex;

f) resolving any questions relating to the application of this Protocol.

The Association Council may delegate the above responsibilities set out under this
Protocol, in conformity with Articles 114(2) of the Europe Agreement.

Article 15

Technical co-operation and assistance

The European Community may provide technical co-operation and assistance to the
Republic of Latvia where necessary in order to support the effective implementation and
application of this Protocol.

Article 16

Agreements with other Countries

Agreements on conformity assessment concluded by either Party with a country which is
not a Party to this Protocol shall not entail an obligation upon the other Party to accept
the results of conformity assessment procedures carried out in that third country, unless
there is an explicit agreement between the Parties in the Association Council.

Article 17

Entry into force

This Protocol shall enter into force on the first day of the second month following the
date on which the Parties have exchanged diplomatic notes confirming the completion of
their respective procedures for entry into force of the Protocol.

18

Article 18

Status of the Protocol

This Protocol constitutes an integral part of the Europe Agreement.

This Protocol is drawn up in two originals in Latvian, Danish, Dutch, English, Finnish,
French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each text
being equally authentic.

Done at …

**********

19

ANNEXES ON MUTUAL RECOGNITION

OF RESULTS OF CONFORMITY ASSESSMENT

Table of contents

1. Electrical Safety

2. Electromagnetic Compatibility

3. Toys

4. Construction Products

20

ANNEX ON MUTUAL RECOGNITION OF RESULTS OF CONFORMITY ASSESSMENT:

ELECTRICAL SAFETY

SECTION I

COMMUNITY AND NATIONAL LAW

Community law:

National law:

Council Directive 73/23/EEC of 19 February 1973 on the
approximation of the laws of the Member States relating to
electrical equipment designed for use within certain voltage
limits (OJ L 77, 26.03.1973, p. 29), as last amended by
Directive 93/68/EEC of 22 July 1993 (OJ L 220, 30.8.1993,
p.1).

Regulations of the Cabinet of Ministers of May 30, 2000
No.187 (Latvijas V

stnesis No. 201/204, 02.06.2000, p.4).

ē

SECTION II

NOTIFYING AUTHORITIES

European Community:

• Austria:

• Belgium:

• Denmark:

• Finland:

• France:

• Germany:

• Greece:

•

•

Ireland:

Italy:

Bundesministerium für Wirtschaftliche und Arbeit .

Ministère
Economische Zaken.

des

Affaires

Economiques/Ministerie

van

Økonomi- og Erhvervsministeriet, Elektricitetsrådet

Kauppa-ja teollisuusministeriö/Handels-och industriministeriet.

Ministère de l'économie, des finances et de l'industrie. Direction
Générale de l'Industrie, des Technologies de l'Information et des
Postes (DiGITIP) - SQUALPI.

Bundesministerium für Arbeit und Sozialordung.
Υπουργείο Ανάπτυξης

Γενική

Γραµµατεία Βιοµηχανίας

.

(Ministry of Development. General Secretariat of Industry).

Department of Enterprise and Employment.

Ministero dell' Industria, del Commercio e dell' Artigianato.

• Luxembourg:

Ministère de l'Economie- Service de l'Energie de l'Etat.

21

Ministère du Travail (Inspection du Travail et des Mines).

• Netherlands:

Minister van Volksgezondheid, Welzijn en Sport
goods).

(consumer

Minister van Sociale Zanken en Werkgelegenheid (others).

• Portugal:

Under the authority of the Government of Portugal:

• Spain:

• Sweden:

Instituto Português da Qualidade.

Ministerio de Ciencia y Tecnología.

Under the authority of the Government of Sweden :

Styrelsen för ackreditering och teknisk kontrol (SWEDAC).

• United Kingdom: Department of Trade and Industry

Latvia:

Ekonomikas ministrija (Ministry of Economy)

SECTION III

NOTIFIED BODIES

European Community:

Bodies which have been notified by the Member States of the Community in accordance with the
Community law of Section I and notified to Latvia in accordance with Article 10 of this Protocol.

Latvia:

Bodies which have been authorised by Latvia in accordance with the Latvian national law of
Section I and notified to the Community in accordance with Article 10 of this Protocol.

22

SECTION IV

SPECIFIC ARRANGEMENTS

Safeguard Clauses

A. Safeguard clause relating to industrial products

1. Where a Party has taken a measure to deny free access to its market for industrial products
bearing the CE marking, subject to this Annex, it shall immediately inform the other Party,
indicating the reasons for its decision and how non compliance has been assessed.

2. The Parties shall consider the matter and the evidence brought to their knowledge, and

shall report to each other the results of their investigations.

3.

4.

In case of agreement, the Parties shall take appropriate measures to ensure that such
products are not placed on the market.

In case of disagreement on the outcome of such investigations the matter shall be
forwarded to the Association Council who may decide to have an expertise carried out.

5. Where the Association Council finds that the measure is:

(a) unjustified, the national authority of the Party who has taken the measure shall

withdraw it;

(b) justified, the Parties shall take appropriate measures to ensure that such products are

not placed on the market.

B. Safeguard clause relating to harmonised standards

1. Where the Republic of Latvia considers that a harmonised standard referred to in the
the essential requirements of such

legislation defined in this Annex, does not meet
legislation, it shall inform the Association Council giving the reasons thereof.

2. The Association Council shall consider the matter and may request the Community to
proceed in accordance with the procedure provided for in the Community legislation
identified in this Annex.

3. The Community shall keep the Association Council and the other Party informed of the

proceedings.

4. The outcome of the procedure shall be notified to the other Party.

23

ANNEX ON MUTUAL RECOGNITION OF RESULTS OF CONFORMITY ASSESSMENT:

ELECTROMAGNETIC COMPATIBILITY

SECTION I

COMMUNITY AND NATIONAL LAW

Council Directive 89/336/EEC of 3 May 1989 on the approximation
of the laws of the Member States relating to electromagnetic
compatibility (OJ L 139, 23.05.1989, p. 19), as last amended by
Council Directive 93/68/EEC of 22 July 1993 (OJ L 220, 30.8.1993,
p.1).

Regulations of the Cabinet of Ministers of May 30, 2000 No.188
ē
(Latvijas V
stnesis No. 201/204, 02.06.2000, p.5), as amended by
as amended by Regulations nr.78 of 20 February 2001 (Latvijas
V

stnesis No.31, 23.02.2001 p.3).

ē

Community law:

National law:

SECTION II

NOTIFYING AUTHORITIES

European Community:

• Austria:

• Belgium:

• Denmark:

• Finland:

• France:

• Germany:

• Greece:

•

•

Ireland:

Italy:

Bundesministerium für Wirtschaft und Arbeit.

Ministère des Affaires Economiques/Ministerie van Economische
Zaken.

Telestyrelsen.

Kauppa-ja teollisuusministeriö/Handels-och industriministeriet.

For EMC aspects of telecommunications and radio equipment:

Liikenne-ja viestintäministeriö/Kommunikationsministeriet.

Ministère de l'économie, des finances et de l'industrie. Direction
Générale de l'Industrie, des Technologies de l'Information et des Postes
(DiGITIP), SQUALPI.

Bundesministerium für Arbeit und Sozialordnung.
Υπουργείο Ανάπτυξης
.
Development. General Secretariat of Industry).

Γενική Γραµµατεία Βιοµηχανίας

(Ministry of

Department of Enterprise and Employment.

Ministero dell' Industria, del Commercio e dell' Artigianato.

24

• Luxembourg:

• Netherlands:

• Portugal:

Ministère de l'Economie- Service de l'Energie de l'Etat.

Minister van Verkeer en Waterstaat.

Ministério do Equipamento Social. Instituto das Comunicações de
Portugal.

• Spain:

Ministerio de Ciencia y Tecnología.

• Sweden:

Under the authority of the Government of Sweden :

Styrelsen för ackreditering och teknisk kontrol (SWEDAC).

• United Kingdom:

Department of Trade and Industry.

Latvia:

Ekonomikas ministrija (Ministry of Economy)

SECTION III

NOTIFIED AND COMPETENT BODIES

European Community:

Bodies which have been notified by the Member States of the Community in accordance with the
Community law of Section I and notified to Latvia in accordance with Article 10 of this Protocol.

Latvia:

Bodies which have been authorised by Latvia in accordance with the Latvian national law of
Section I and notified to the Community in accordance with Article 10 of this Protocol.

25

SECTION IV

SPECIFIC ARRANGEMENTS

Safeguard Clauses

A. Safeguard clause relating to industrial products

1. Where a Party has taken a measure to deny free access to its market for industrial products
bearing the CE marking, subject to this Annex, it shall immediately inform the other Party,
indicating the reasons for its decision and how non compliance has been assessed.

2. The Parties shall consider the matter and the evidence brought to their knowledge, and

shall report to each other the results of their investigations.

3.

4.

In case of agreement, the Parties shall take appropriate measures to ensure that such
products are not placed on the market.

In case of disagreement on the outcome of such investigations the matter shall be
forwarded to the Association Council who may decide to have an expertise carried out.

5. Where the Association Council finds that the measure is:

(a) unjustified, the national authority of the Party who has taken the measure shall withdraw

it;

(b) justified, the Parties shall take appropriate measures to ensure that such products are not

placed on the market.

B. Safeguard clause relating to harmonised standards

1. Where the Republic of Latvia considers that a harmonised standard referred to in the
the essential requirements of such

legislation defined in this Annex, does not meet
legislation, it shall inform the Association Council giving the reasons thereof.

2. The Association Council shall consider the matter and may request the Community to
proceed in accordance with the procedure provided for in the Community legislation
identified in this Annex.

3. The Community shall keep the Association Council and the other Party informed of the

proceedings.

4. The outcome of the procedure shall be notified to the other Party.

26

ANNEX ON MUTUAL RECOGNITION OF RESULTS OF CONFORMITY ASSESSMENT:

TOYS

SECTION I

COMMUNITY AND NATIONAL LAW

Council Directive of 3 May 1988 on the approximation of
the laws of the Member States concerning the safety of
toys (88/378/EEC)
(OJ L 187, 16.7.1988, p.1), as
amended by Council Directive 93/68/EEC of 22 July 1993
(OJ L 220, 30.08.1993, p.1).

Regulations of the Cabinet of Ministers of 4 April 2000
No 128 "Regulations on safety of
(Latvijas
ē
V

stnesis No 125, 07.04.2000, p.2), as amended by …

toys"

Community law:

National law:

SECTION II

NOTIFYING AUTHORITIES

European Community

• Austria:

• Belgium:

• Denmark:

• Finland:

• France:

• Germany:

• Greece:

•

•

Ireland:

Italy:

Bundesministerium für soziale Sicherheit und Generationen

Ministère
Economische Zaken.

des Affaires

Economiques/Ministerie

van

Økonomi- og Erhvervsministeriet, Forbrugerstyrelsen

Kauppa-ja teollisuusministeriö /Handels-och
industriministeriet

Ministère de l’Economie et des Finances

Bundesministerium für Arbeit und Sozialordnung
Υπουργείο Ανάπτυξης
.

Γενική Γραµµατεία Βιοµηχανίας

(Ministry of Development. General Secretary of Industry)

Department of Enterprise and Employment

Ministero de l’Industria

27

• Luxembourg:

Ministère du travail et de l’emploi

• Netherlands:

General Inspectorate for Health Protection

• Portugal:

• Spain:

Divisao de Estudos de Produtos do Instituto do Consumidor

Ministerio de Ciencia y Tecnología.

Insituto Nacional de Consumo.

• Sweden:

Under the authority of the Government of Sweden:

SWEDAC-Styrelsen för ackreditering och teknisk kontroll

• United Kingdom: Department of Trade and Industry

Latvia:

Ekonomikas ministrija (Ministry of Economy)

SECTION III

NOTIFIED BODIES

European Community

Bodies which have been notified by the Member States of the Community in accordance with the
Community law of Section I and notified to the Latvia in accordance with Article 10 of this
Protocol.

Latvia:

Bodies which have been authorised by Latvia in accordance with the Latvian national law of
Section I and notified to the Community in accordance with Article 10 of this Protocol.

SECTION IV

SPECIFIC ARRANGEMENTS

1.

Information concerning the certificate and the technical file

In accordance with Article 10(4) of Directive 88/378/EEC, the authorities listed in section II may
obtain on request a copy of the certificate and, on reasoned request, a copy of the technical file and
the reports on the examinations and tests carried out.

28

2.

Notification of grounds for refusal by approved bodies

In accordance with Article 10(5) of Directive 88/378/EEC, the Latvian bodies shall inform the
Ministry of Economy when refusing to issue an EC type- examination certificate. The Ministry of
Economy shall likewise notify the Commission of the European Communities thereof.

3.

Safeguard Clauses

A. Safeguard clause relating to products

1. Where a Party has taken a measure to deny free access to its market for products bearing
it shall immediately inform the other Party,

the CE marking, subject
indicating the reasons for its decision and how non compliance has been assessed.

to this Annex,

2. The Parties shall consider the matter and the evidence brought to their knowledge, and

shall report to each other the results of their investigations.

3.

4.

In case of agreement, the Parties shall take appropriate measures to ensure that such
products are not placed on the market.

In case of disagreement on the outcome of such investigations the matter shall be
forwarded to the Association Council who may decide to have an expertise carried out.

5. Where the Association Council finds that the measure is:

(a) unjustified, the national authority of the Party who has taken the measure shall withdraw

it;

(b) justified, the Parties shall take appropriate measures to ensure that such products are not

placed on the market.

B. Safeguard clause relating to harmonised standards

1. Where the Republic of Latvia considers that a harmonised standard referred to in the
legislation defined in the present annex, does not meet the essential requirements of such
legislation, it shall inform the Association Council giving the reasons thereof.

2. The Association Council shall consider the matter and may request the Community to
proceed in accordance with the procedure provided for in the Community legislation
identified in this Annex.

3. The Community shall keep the Association Council and the other Party informed of the

proceedings.

4. The outcome of the procedure shall be notified to the other Party.

29

ANNEX ON MUTUAL RECOGNITION OF RESULTS OF CONFORMITY ASSESSMENT:

CONSTRUCTION PRODUCTS:

SECTION I

COMMUNITY AND NATIONAL LAW

Community law:

National law:

ē

Council Directive 89/106/EEC of 21 December 1988 on
the approximation of laws, regulations and administrative
provisions of the Member States relating to construction
products (OJ L 040 , 11/02/1989 p. 12), as amended by
Council Directive 93/68/EEC of 22 July 1993 (OJ L 220,
30.08.1993, p.1).

ē
Building Law of 10.08.1995 (Latvijas V
stnesis No 131,
30.08.1995) as amended by Law of 27.02.1997 (Latvijas
V
stnesis No 69/70, 11.03.1997) and Law of 01.10.1997
ē
(Latvijas V
stnesis No 274/276, 21.10.1997).
Cabinet Order 313 of 17 June 1998 On authorisation of
bodies involved in conformity attestation of building
materials and construction products in mandatory area.
Regulations
of Ministers Nr.181
"Procedure of conformity attestation of building materials
and construction products"(LatvijasV stnesis No 52,
30.03.2001).
Building Code LBN 006-00 “Essential Requirements for
No52,
construction
30.03.2001).

the Cabinet

(LatvijasV

works”

stnesis

of

ē

30

SECTION II

NOTIFYING AUTHORITIES

European Community

• Austria:

• Belgium:

• Denmark:

• Finland:

• France:

• Germany:

• Greece:

•

•

Ireland:

Italy:

• Luxembourg:

• Netherlands:

• Portugal:

Bundesministerium für Wirtschaft und Arbeit

Ministère des Communications et de l'Infrastructure
Ministerie van Verkeer & Infrastructuur

/

Økonomi-
Boligstyrelsen

og

Erhvervsministeriet, Erhvervs-

og

Ympäristöministeriö/Miljöministeriet

Ministère de l'Índustrie

Ministère de l'Équipement

Bundesministerium für Verkehr, Bau-und Wohnungswesen

Ministry for Environment Physical Planning and Public
Works

Department of the Environment and the Local Government

Ministère de l4Economie-Service de l’Energie de l’État

Ministerie van Volkshuisvesting, Ruimtelijke Ordening en
Milieubeheer. Directoraat Generaal van de Volkshuisvesting

Ministério
Indústria/Instituto Português da Qualidade (IPQ)

Economia.

Direcçao-General

da

da

• Spain:

Ministerio de Fomento.

Ministerio de Ciencia y Tecnología.

• Sweden:

Under the authority of the Government of Sweden:

Styrelsen för ackreditering och teknisk kontroll (SWEDAC)

• United Kingdom: Department of Transport, Local Government and the Regions

Latvia:

Ekonomikas ministrija (Ministry of Economy)

31

SECTION III

NOTIFIED BODIES

European Community

Bodies which have been notified by the Member States of the Community in accordance with
the Community law of Section I and notified to the Latvia in accordance with Article 10 of
this Protocol.

Latvia:

Bodies which have been authorised by Latvia in accordance with the Latvian national law of
Section I and notified to the Community in accordance with Article 10 of this Protocol.

SECTION IV

SPECIFIC ARRANGEMENTS

1. Scope and coverage

The provisions of this Annex shall only apply construction products covered by harmonised
standards and corresponding Latvian national standards.

2. Safeguard Clauses

A. Safeguard clause relating to products

1. Where a Party has taken a measure to deny free access to its market for products
bearing the CE marking, subject to this Annex, it shall immediately inform the other
Party, indicating the reasons for its decision and how non compliance has been
assessed.

2. The Parties shall consider the matter and the evidence brought to their knowledge, and

shall report to each other the results of their investigations.

3.

4.

In case of agreement, the Parties shall take appropriate measures to ensure that such
products are not placed on the market.

In case of disagreement on the outcome of such investigations the matter shall be
forwarded to the Association Council who may decide to have an expertise carried
out.

5. Where the Association Council finds that the measure is:

(a) unjustified, the national authority of the Party who has taken the measure shall

withdraw it;

32

(b) justified, the Parties shall take appropriate measures to ensure that such products are

not placed on the market.

B. Safeguard clause relating to harmonised standards

1. Where the Republic of Latvia considers that a harmonised standard referred to in the
legislation defined in the present annex, does not meet the essential requirements of
such legislation, it shall inform the Association Council giving the reasons thereof.

2. The Association Council shall consider the matter and may request the Community to
proceed in accordance with the procedure provided for in the Community legislation
identified in this Annex.

3. The Community shall keep the Association Council and the other Party informed of

the proceedings.

4. The

outcome

of

the

procedure

shall

be

notified

to

the

other Party.

33

DECLARATION BY THE COMMUNITY ON THE ATTENDANCE

OF LATVIAN REPRESENTATIVES AT COMMITTEE MEETINGS

In order to ensure a better understanding of the practical aspects of the application of the
acquis communautaire, the Community declares that the Republic of Latvia is invited, under
the following conditions, to the meetings of the committees established or referred to under
electrical safety and construction
the Community law on electromagnetic compatibility,
products.

This participation shall be limited to meetings or parts thereof during which the application of
the acquis is discussed; it shall not entail attendance at meetings intended to prepare and issue
opinions on implementation or management powers delegated to the Commission by the
Council.

This invitation may be extended, on a case-by-case basis, to groups of experts convened by
the Commission.

34

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): External trade relations, including access to the markets of non-Community
countries

Activit(y/ies): Conformity Assessment Procedures and Acceptance of Industrial Products

TITLE OF ACTION:

Protocol to the Europe Agreement establishing an Association between the European
Communities and their Member States, of the one part, and the Republic of Latvia, of
the other part, on Conformity Assessment and Acceptance of Industrial Products
(PECA)

1.

BUDGET LINE(S) + HEADING(S):

B7-8500

A-7010

2.

2.1.

2.2.

OVERALL FIGURES

Total allocation for action (Part B):

€

72380

Period of application:

The general action undertaken will be of a definite duration. The PECA has a
lifetime limited to the pre-accession period of the Republic of Latvia. The initial
period of confidence building will require a more intensive effort but the expenditure
should be substantially less after 1 year. However, during the life of the PECA a
continued effort will be needed to ensure management and maintenance of
confidence.

2.3.

Overall multiannual estimate of expenditure:

Schedule of commitment appropriations/payment appropriations (financial

(a)
intervention) (see point 6.1.1)
€

Year

2002
14550

Commitments

2003
12270

2004
8520

2005
8520

2006
8520

Total

52380

Payments

14550

12770

8520

8520

8520

52380

35

Technical and administrative assistance and support expenditure(see point

(b)
6.1.2)

Commitments

10000

5000

5000

Payments

10000

5000

5000

Subtotal a+b

2002

2003

2004

2005

Commitments

24550

17270

13520

8520

Payments

25550

17270

13520

8520

2006

8520

8520

20000

20000

Total

72380

72380

financial

(c) Overall
expenditure
(see points 7.2 and 7.3)

impact of human resources and other administrative

2002

2003

2004

2005

2006

Total

Commitments

96310

94300

94300

94300

94300

473510

Payments

96310

94300

94300

94300

94300

473510

TOTAL
a+b+c

2002

2003

2004

2005

2006

Total

Commitments

120860

111570

107820

102820

102820

545890

Payments

120860

111570

107820

102820

102820

545890

2.4.

Compatibility with financial programming and financial perspective

Proposal is compatible with existing financial programming.

2.5.

Financial impact on revenue:

Proposal does not involve any type of revenue.

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

Non-comp

Diff

NO

NO

NO

No 4

4.

LEGAL BASIS

Article 133 of the Treaty establishing the European Community.

36

Council Decision 98/552/EC of 24 September 1998 on the implementation by the
Commission of activities relating to the Community market access strategy (OJ L
265, 30.9.1998, p. 31).

Proposal for a Council decision N°.... on the conclusion by the European Community
of an additional Protocol to the Europe Agreement establishing an Association
between the European Communities and their Member States, of the one part, and
the Republic of Latvia, of the other part, on Conformity Assessment and Acceptance
of Industrial Products (PECA)

5.

DESCRIPTION AND GROUNDS

5.1.

NEED FOR COMMUNITY INTERVENTION

5.1.1. OBJECTIVES PURSUED

Community trade objectives in the field of standards and conformity assessment can
be summarised. First, to reduce technical barriers to trade in external markets and to
prevent the emergence of new ones; and second, to encourage our trading partners to
adopt standards and regulatory approaches based on, or compatible with international
or European practice.

These Community's trade objectives have so far been pursued through a four-fold
strategy. One of them is the negotiation of Mutual Recognition Agreements (MRAs).
PECAs are mutual recognition agreements in which the mutual recognition operates
on the basis of the acquis communautaire. They are trade agreements with the
applicant countries, and are an important element of the pre-accession strategy.

The main objective of the PECA is to facilitate trade by means of the elimination of
technical barriers in respect of industrial products in certain sectors in which the
candidate country has aligned its legislation on the acquis communautaire.

The purpose of this PECA is to establish the mutual acceptance of industrial products
which fulfil the requirements to be lawfully placed on the market and the mutual
recognition of the results of conformity assessment of industrial products subject to
regulations and to the equivalent Latvian national
the Community technical
legislation.

5.1.2. Measures taken in connection with ex ante evaluation

The Protocols to the Europe Agreement on Conformity Assessment and Acceptance
of Industrial products (PECAs) are to be considered in the context of Enlargement
policy of the European Union.

The Europe Agreements recognise that a major precondition for the Associated
Countries’ economic integration into the Community is the integration into the
internal market via the approximation of their legislation to the Community

The Article 76 of the Europe Agreement establishing an Association between the
European Communities and their Member States, of one part, and the Republic of

37

Latvia, of the other part, promotes the conclusion of agreements on mutual
recognition in the field of industrial standards and conformity assessment.

5.1.3. Measures taken following ex post evaluation

The major actions, which will be pursued by the Commission under this budget line,
will be the following:

-Confidence-building activities to facilitate the proper implementation of the PECA.

-Management of the PECA and maintenance of the necessary degree of confidence.

-Extension of the PECA to new sectors.

The Commission will be assisted by experts, particularly in regard to sectoral
activities. It will however remain the final arbiter in the management of this PECA.

5.2.

Action envisaged and budget intervention arrangements

-the target population

The target population are the exporting companies, business associations, chambers
of commerce and public institutions of the European Union and the general
consumer which will benefit, or have an interest
the mutual acceptance of
industrial products and recognition of results of conformity assessment certification.

in,

The specific objectives of PECAs (Protocols on Conformity Assessment and
Acceptance of Industrial Products) are:

-to avoid duplication of certification by economic operators.

-to promote exports, employment, competitivity and investment.

-to reduce costs, in particular for small and medium-sized enterprises and ultimately
for the consumer,

-to extend certain benefits of the Internal Market to the Republic of Latvia

-to ensure the effective operation of the Internal Market in certain sectors before
accession of the Republic of Latvia.

-the concrete measures to be taken to implement the action are:

Attendance at the Association Council, the Association Committee or any
A.
special subcommittee or group to which has been delegated the management of the
PECA.

This will be attended by Commission officials and some experts from the Member
States. Travel and per diem expenses should be foreseen within the normal range of
such expenses. The travel expenditure for officials will be covered by the "Mission
budget" (A-7010). The reimbursement of travel and related expenses for experts will
be made on line B7-8500.

38

B. Workshops and Seminars

These will be held to familiarise economic and other operators with the requirements
of the PECA. The cost of these seminars will vary according to the subject matter
and location, and will include travel and organisational costs (when in the EC) and
substantial travel costs when in the Republic of Latvia. Organisational costs will cost
c. 3000 Euro each. The number of seminars will vary depending on the individual
industrial sectors covered by the PECA.

C.

Verification actions

The competence of the notified bodies will in some cases have to be checked, more
so in the initial period of the PECA, but as a matter of course throughout the life of
the PECA to maintain confidence in the system.

This will involve on-site assessment by teams of experts of notified bodies in
the partner country in the initial stages, and subsequently investigation of complaints.
This expenditure will cover all sectors of the PECA and may involve several notified
bodies in each sector.

D.

Production and dissemination of information

Certain costs may need to be incurred for the dissemination of information.
Guides to regulations and assessment procedures may be needed typically at a cost of
10,000 Euro.

5.3.

METHODS OF IMPLEMENTATION

Under Article 133 of the Treaty the Community has exclusive competence for
commercial policy and this agreement have been negotiated in accordance with a
mandate of the Council of Ministers and in consultation with the 133 Committee.
The Commission will be responsible for implementation and management of this
Protocol.

The choice of management method (Association Council) has been set out in the
PECA and constitute a minimum necessary for the proper functioning of the PECA.
The use of seminars in the initial phases will allow ensuring familiarity with other
systems.

These seminars and verifications are also designed to build mutual confidence;
verifications will also be required to ensure this confidence is maintained throughout
the life of the PECA. Confidence and its maintenance are keys to the successful
operation of the PECA.

The importance of this budget is justified when put in perspective with the trade
involved in this PECA and the yearly savings for EU exporters which are expected
3 million for EU exporters to the Republic of
(estimated on a yearly basis at
Latvia).

€

There is no main factors of uncertainty which could affect the specific results of the
operation.

39

6.

FINANCIAL IMPACT

6.1.

TOTAL FINANCIAL IMPACT ON PART B - (OVER THE ENTIRE PROGRAMMING
PERIOD)

(The method of calculating the total amounts set out in the table below must be
explained by the breakdown in Table 6.2. )

6.1.1. Financial intervention

€

Commitments (in

Breakdown

)

Year

2002

2003

2004

2005

2006

Total

Committees

Seminars

Verifications

5360

6030

3160

5360

3750

3160

3160

TOTAL 14550

12270

8520

5360

5360

5360

26800

3160

8520

3160

8520

9780

15800

52380

6.1.2.

Technical and administrative assistance, support expenditure and IT expenditure
(commitment appropriations)

Year

2002

2003

2004

2005

2006

Total

1)
administrative assistance

Technical

and

Technical

a)
offices

assistance

b) Other
administrative assistance:

technical

and

- intra muros:

- extra muros:

of which for construction
and
of
maintenance
computerised management
systems

Subtotal 1

2) Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

10000

5000

5000

Subtotal 2

10000

5000

TOTAL 10000

5000

5000

5000

40

20000

20000

20000

6.2.

CALCULATION OF COSTS BY MEASURE ENVISAGED IN PART B (OVER THE ENTIRE
PROGRAMMING PERIOD)13

(Where there is more than one action, give sufficient detail of the specific measures
to be taken for each one to allow the volume and costs of the outputs to be
estimated.)

Commitments (in

€

)

Breakdown

Meetings/year

Number of
outputs

Average unit
cost

(total for years
1…n)

Total cost

(total for years
1…n)

Action 1: Committees (B7-8500)

-Meetings in Bxl

- Meetings in Latvia

Action 2 : Seminars (B7-8500)

- In Bxl

- In Latvia

Action 3: Verifications (B7-8500)

-In Latvia

1

1

.

.

.

.

1

TOTAL COST

5

5

.

1

1

.

5

2200

3160

.

3750

6030

.

3160

11000

15800

.

3750

6030

.

15800

52380

If necessary explain the method of calculation (See table annexed)

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

IMPACT ON HUMAN RESOURCES

Types of post

Staff
to be assigned to
management of the action
and/or
existing
using
additional resources

Total

Description of tasks deriving from the
action

If necessary, a fuller description of the
tasks may be annexed.

Number of
permanent posts

Number of
temporary posts

Officials
temporary staff

or

A

B

C

0,6

.

0,2

Other human resources None

Total

0,8

None

0,6

.

0,2

0,8

13

For further information, see separate explanatory note.

41

7.2.

OVERALL FINANCIAL IMPACT OF HUMAN RESOURCES
€

Type of human resources

Amount (

)

Officials

Temporary staff

Other human resources

86.400

(specify budget line)

Total

86.400

The amounts are total expenditure for twelve months.

Method of calculation *
€

per staff member

0,8 staff ( 108.000
per year

7.3.

OTHER ADMINISTRATIVE EXPENDITURE DERIVING FROM THE ACTION

Budget line

2002

2003

2004

2005

2006 Total

A0701- Missions (Committee)
A0701- Seminars in Latvia
A0701-Verifications in Latvia
TOTAL

6320
2010
1580
9910

6320
0
1580
7900

6320

6320

6320

1580
7900

1580
7900

1580
7900

31600
2010
7900
41510

Budget line

(number and heading)

€

Amount

Method of calculation

Overall allocation (Title A7)

A0701 – Missions (Committee)

.

A0701 – Seminars in Latvia

.

A0701- Verifications in Latvia

.

31600

.

2010

.

7900

Total

41510

€

2 days meeting in Latvia:Travel
per diem
officials; 1 meeting a year, 5 years

1150,
215, 4 Commission

€

4 days
seminar
€
1150; per diem

€

in Latvia; Travel
215; 1 Commission

official; 1 meeting year 2002

2 days meeting in Latvia; Travel
€
€
215; 1 Commission

1150; per diem

official; 1 meeting a year; 5 years

The amounts are total expenditure for the period 2002-2006

Specify the type of committee and the group to which it belongs.

I.

Annual total (7.2 + 7.3)

2002

– 2003-2006

II.

Total cost of action (2002-2006)

€

96310

377200
€

473510

(In the estimate of human and administrative resources required for the action,
DGs/Services must take into account the decisions taken by the Commission in its
orientation/APS debate and when adopting the preliminary draft budget (PDB). This
means that DGs must show that human resources can be covered by the indicative
pre-allocation made when the PDB was adopted.

42

Exceptional cases (i.e. those where the action concerned could not be foreseen when
the PDB was being prepared) will have to be referred to the Commission for a
decision on whether and how (by means of an amendment of the indicative pre-
allocation, an ad hoc redeployment exercise, a supplementary/amending budget or a
letter of amendment to the draft budget) implementation of the proposed action can
be accommodated.)

8.

FOLLOW-UP AND EVALUATION

8.1.

FOLLOW-UP ARRANGEMENTS

The success of this PECA can be quantified by trade facilitation through avoidance
of duplication of testing and certification and costs. It is estimated on a yearly basis
at

3 million for EU exporters to the Republic of Latvia.

€

Success can also be measured by increased EU and Latvian exports and this factor
will be taken into consideration although export performance is subject to such a
wide range of variables (e.g. changes in exchange rates, general economic trends)
that this can never been the sole factor for evaluation. In addition, official trade data
are not always available for all types of specific products covered by the sectoral
annexes to the PECA.

Success can also be measured increased certificates delivered to companies in
accordance with the PECA. This could be put
into relation to the number of
certificates delivered under the domestic systems before the PECA entered into
force.

8.2.

Arrangements and schedule for the planned evaluation

Progress in the attainment of the PECA objectives will be monitored by Commission
officials, the Association Council and by the economic operators concerned.

The evaluation of the effectiveness and usefulness of the PECA will be regularly
monitored by the Commission, by the Association Council at its annual meeting, by
the Association Committee at its annual meeting, or by any special subcommittee or
group to which the Association Council has delegated the management of the PECA.
At least, the first major evaluation will be two years after the entry into force.

43

9.

ANTI-FRAUD MEASURES

Methods of control (submission of reports, etc.) will be included in all contracts or
grant agreements between the Commission and beneficiaries.

A close co-operation with the delegations of the Commission and the participation of
a representative of the Commission at events in third countries will check on the spot
the work to ensure that it corresponds with the terms of reference, contract provisions
and required professionalism.

The checks take place before the final payment. The same rule applies to the
financial incentives paid to participating companies. Where appropriate, agreements
also require organisations to submit financial accounts certified by their auditors.

44

IMPACT ASSESSMENT FORM

THE IMPACT OF THE PROPOSAL ON BUSINESS
with special reference to small and medium-sized enterprises

Title of proposal

Proposal for Council Decisions on the signature and conclusion of an additional Protocol to
the Europe Agreement between the European Community and the Republic of Latvia on
Conformity Assessment and Acceptance of Industrial Products (PECA).

Reference number

The proposal

These decisions are necessary to conclude the Protocol to the Europe Agreement between
the European Community and the Republic of Latvia on Conformity Assessment and
Acceptance of Industrial Products. The Commission negotiated the draft Protocol
in
accordance with the negotiating guidelines for the negotiation of European Conformity
Assessment Agreement with the Central Eastern European Countries, adopted by the
Council in June 1997.

The impact on business

The business sectors affected are electrical safety, electromagnetic compatibility, toys and
construction products.

The PECA provides to extend certain benefits of the Internal Market in industrial sectors
already aligned. The PECA permits certification of conformity with technical regulations on
product safety, etc, to be conducted in the European Union for exports destined the Republic
of Latvia. This avoids the need for further certification by Latvian conformity assessment
bodies before putting them on the Latvian market. The certification procedure and the
technical regulations are the same as the Community one.

The PECA also envisages acceptance of industrial products that fulfil the requirements to be
legally placed on the EU market by the Republic of Latvia without subject further
requirement. Annexes under this mechanism have still to be negotiated.

The PECA therefore presents important advantages from the point of view of transparency,
market access, avoidance of duplication especially of cost, effective operation in certain
sectors before accession and general facilitation of trade. This is of particular importance for
small and medium-sized enterprises. The PECA covers a wide range of sectors and
therefore affects an extensive range of firms both large and small. The advantages are not
limited to specific geographical areas in the Community.

Businesses will have to apply Latvian regulations and procedures. However, these are
aligned on the EC ones in sectors covered by the PECA. Furthermore, certification, as stated
above, will be conducted by conformity assessment bodies located and already designated
by the Member States in the Community, and not in the Republic of Latvia. The PECA will
substantially reduce certification costs and improve prospects for exports, employment,
investment and competitiveness by Community firms.

45

The PECA does not contain measures to take account of the specific situation of small and
medium-sized firms, but by its nature and by reducing certification costs which are the same
for all firms, the agreement will benefit small and medium sized enterprises to a greater
extent proportionately than larger firms.

Consultation

The main industry organisations (e.g. EFPIA, Eurobit, Unice and Orgalime) have been
consulted and have declared their support for this Protocol.

46