Council Regulation (EC) No 1346/2002 of 25 July 2002 amending Regulation (EC) No 2465/96 concerning the interruption of economic and financial relations between the European Community and Iraq
Date: 2002-07-25
Institutions: Council of the European Union
Subjects: EU relations, Iraq, UN resolution, export licence, form, petroleum, petroleum product, trading operation

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1346/2002

of 25 July 2002

amending Regulation (EC) No 2465/96 concerning the interruption of economic and financial
relations between the European Community and Iraq

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 60 and 301 thereof,

Having regard to Council Common Position 2002/599/CFSP of
22 July 2002 supplementing Common Position 96/741/CFSP
concerning the derogations from the embargo with regard to
Iraq (1),

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

Council Regulation (EC) No 2465/96 of 17 December
1996 concerning the interruption of economic and
financial relations between the European Community
and Iraq (2) prohibits, with certain exceptions, the export
to Iraq of all commodities and products originating in,
coming from, or in transit through the Community. This
export
to Resolutions
661(1990), 687(1991) and 986(1995) of the Security
Council of the United Nations.

imposed further

regime was

Pursuant to Resolution 986(1995) an escrow account
has been established for the financing of certain exports
to Iraq. On 14 May 2002, the Security Council of the
United Nations adopted Resolution 1409(2002) laying
down new procedures and rules for approval of exports
to Iraq which will be financed from this escrow account.
These procedures and rules have been applicable since
30 May 2002.

for which an application for
As a result, exports
is made will be
financing from the escrow account
checked against the list of military commodities and
products and against
the revised Goods Review List
(GRL) which the Security Council also adopted. The GRL
comprises goods, services and technologies which can
be used for civil as well as military purposes (dual-use
goods).

If the exports are not included in these lists, the Office of
the Iraq Programme (OIP) will confirm in writing to the
State that sent the application, that the application does
not contain any commodity or product included in these
lists.
If such confirmation is obtained, the export is
eligible for payment from the escrow account. However,
such payment is subject to meeting the conditions of
paragraph 8(a) of Resolution 986(1995), which provides
that the export must be at the request of the Govern-
ment of Iraq, that Iraq effectively guarantees equitable

(5)

(6)

(7)

distribution of the exported goods on the basis of a plan
submitted to, and approved by, the Secretary-General
and that
the Secretary-General receives authenticated
confirmation that the exported goods have arrived in
Iraq.

If an application contains items that are on the revised
GRL, the application will be referred to the Committee
established by Resolution 661(1990). The exports are
not permitted unless the Committee gives its approval.
In this regard, it should be noted that the Committee
may give its approval for exports of commodities and
products included in the revised GRL. If the application
contains military goods, that part of the application will
be considered ineligible for approval.

Applications for financing of exports to Iraq from the
escrow account have to be made to the OIP through the
diplomatic missions of States and international organ-
isations accredited to the United Nations in the format
prescribed by the Security Council.

It
is appropriate that competent authorities in the
Community promptly confirm in writing to the person,
entity or body at whose request the application was
made, any confirmation they receive from the OIP and
any approval they receive from the said Committee.
Such confirmation constitutes sufficient evidence that
the export is not in breach of Regulation (EC) No 2465/
96 and that the Committee has approved the export or
it does not need approval by the Committee.
that
However,
that confirmation does not constitute an
export authorisation required in accordance with applic-
able Community legislation, and in particular Council
Regulation (EC) No 1334/2000 of 22 June 2000 setting
up a Community regime for the control of exports of
dual-use items and technology (3). For foodstuffs, the
competent authority should confirm in writing that the
export or transit has been notified to the Committee
pursuant to Resolution 661(1990).

(8)

that Regulation if,

Regulation (EC) No 2465/96 should be amended in
order to reflect the fact that exports are not in violation
of
in accordance with the new
procedures and rules, it has been confirmed that they
have been approved by the Committee or that they do
not need approval from the Committee.

(1) OJ L 194, 23.7.2002, p. 47.
(2) OJ L 337, 27.12.1996, p. 1.

(3) OJ L 159, 30.6.2000, p. 1. Regulation as last amended by Regu-

lation (EC) No 880/2002 (OJ L 139, 29.5.2002, p. 7).

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(9)

Experience in implementing Regulation (EC) No 2465/
96 has shown that clarification is needed in particular
on administrative procedures,

transit has been approved by the Committee, and
provided that the conditions for payment determined by
the Committee are fulfilled;

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2465/96 is hereby amended as follows:

1. the following recital shall be added:

‘Whereas this Regulation is only intended to implement the
relevant resolutions of the UN Security Council,’;

2. Article 2 shall be replaced by the following:

‘Article 2

The prohibitions in points 1 and 5 of Article 1 shall
the

1.
not apply to the introduction into the territory of
Community of:

(a) commodities or products which originate in, or come
from, Iraq and were exported before 7 August 1990;

(b) petroleum and petroleum products originating in Iraq,
on condition that there is evidence in writing that the
Committee established by Resolution 661(1990) of the
the United Nations (hereinafter
Security Council of
referred to as the “Committee”) has given its approval
for
the commodities or products
concerned, and provided that payment of the full price
is made to the escrow account established by the Secre-
tary-General of the United Nations pursuant to Resolu-
tion 986(1995).

the purchase of

The prohibitions in points 2 and 5 of Article 1 shall
the

from, or transit

through,

2.
not apply to the export
Community to Iraq of:

(a) products intended strictly for medical purposes, on
condition that a competent authority listed in Annex I
has given an authorisation in writing;

(b) foodstuffs, on condition that a competent authority
listed in Annex I has confirmed in writing that the
export or transit has been notified to the Committee;

(c) materials and supplies for essential civilian needs, on
condition that a competent authority listed in Annex I
has confirmed in writing that the export or transit has
been approved by the Committee;

(d) parts and equipment which are essential for the safe
operation of the Kirkuk-Yumurtalik pipeline system in
Iraq, on condition that a competent authority listed in
Annex I has confirmed in writing that the export or

(e) any other commodity or product, on condition that a
competent authority listed in Annex I has confirmed in
writing that the Office of the Iraq Programme (OIP) of
the Secretariat-General of the United Nations has noti-
fied in written form that the export of that commodity
or product may proceed without prior approval of the
Committee and is eligible for payment from the escrow
account upon verification by UN agents that the prod-
ucts have been delivered to Iraq;

(f) any other commodity or product on the condition that
a competent authority listed in Annex I has confirmed
in writing that the export has been approved by the
Committee.

The prohibitions in points 3, 4 and 5 of Article 1 shall

3.
not apply to:

(a) the provision of either postal and telecommunications
services, medical services necessary for the operation of
existing hospitals, or of non-financial services resulting
from contracts or amendments to contracts concluded
before 7 August 1990, where their execution began
before that date;

(b) flights approved by the Committee or destined for activ-
ities of the United Nations in Iraq, on condition that a
competent authority listed in Annex I has confirmed in
writing that the flight either has been approved by the
Committee or is destined for activities of the United
Nations in Iraq;

(c) services,

including financial

transactions, which are
ancillary or directly related to the activities referred to in
paragraphs 1, 2 and 3.

Except

4.
for notifications and applications made by
international organisations which are accredited to the
United Nations, all notifications to the Committee, applica-
tions for approval by that Committee and applications for
payment addressed to the OIP shall be made through the
competent authority of the Member State in which the
person, entity or body concerned is resident or established,
as listed in Annex I. As regards notifications, applications
and requests for payments concerning exports to Iraq, the
request shall be accompanied by the completed form
entitled “Notification or Request to Ship Goods to Iraq”
given in Annex II.

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A confirmation in writing by a competent authority
5.
listed in Annex I, as referred to in this Article, shall be valid
throughout the Community.

Upon receipt of an authorisation from the Committee or a
notification from the OIP that an export does not need
approval from the Committee, the competent authorities
listed in Annex I shall promptly give such written confirma-
tion to the person, entity or body concerned.

The competent authorities shall remind the person, entity or
body concerned that, where an export authorisation is
required in accordance with paragraph 2(a) or under other
applicable Community legislation, the confirmation does
not exempt that person, entity or body from the require-
ment to make an application for an export authorisation
before the export takes place.

The competent authorities shall give confirmation in writing
of a notification to the Committee as soon as such noti-
fication is made.

6.
A confirmation of an authorisation concerning export
or transit to Iraq or of a notification referred to in para-
graph 5 shall be made out on a form corresponding to the
model given in Annex IV and shall be issued free of charge.
Member States shall be responsible for having this form
printed.

The exporter shall present this confirmation to the customs
authorities together with the customs declaration.

A translation of this authorisation into an official language
of
the Member State where the export declaration is
presented may be required of the exporter.

If an authorisation in writing referred to in paragraph
7.
2(a) is issued by a competent authority listed in Annex I, it
shall be valid throughout the Community. It shall be made
out on a form corresponding to the model given in Annex
V and shall be issued free of charge. Member States shall be
responsible for having this form printed.

The exporter shall present this authorisation to the customs
authorities together with the customs declaration.

A translation of this authorisation into an official language
of
the Member State where the export declaration is
presented may be required of the exporter.

8.
The forms referred to in paragraphs 6 and 7 shall be
printed in accordance with Article 12(9) of Council Regula-
tion (EC) No 3285/94 of 22 December 1994 on the
common rules for imports (*). In particular, the layout of
the forms shall be followed precisely and the forms shall
have a yellow printed guilloche pattern background so as to
reveal any falsification by mechanical or chemical means.

(*) OJ L 349, 31.12.1994, p. 53. Regulation as

last
amended by Regulation (EC) No 2474/2000 (OJ L
286, 11.11.2000, p. 1).’

3. Article 4 shall be replaced by the following:

‘Article 4

Any direct or indirect payment from the escrow account
established by the Secretary-General of the United Nations
pursuant to Resolution 986(1995) shall be destined only
for the purposes indicated in paragraph 8 of that Resolu-
tion as contained in Annex III, and shall not be diverted
to any other purpose.’

4. the following subparagraph shall be added to Article 6:

‘The Commission shall be empowered to amend Annex II
in order to bring it into line with changes that may be
made by the Committee.’;

5. Annexes I, II, III, IV and V, which appear in the Annex
to this Regulation, shall be added to Regulation (EC) No
2465/96.

Article 2

This Regulation shall enter into force on the day of
its
publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 25 July 2002.

For the Council

The President

P. S. MØLLER

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ANNEX

‘ANNEX I

List of competent authorities referred to in Article 2

BELGIUM

Ministère des affaires économiques
Administration des relations économiques
Politique d'accès aux marchés
Service: Licences
60, Rue Général Leman
B-1040 Bruxelles
Tél. 32 2 206 58 11
Fax 32 2 230 83 22

Ministerie van Economische Zaken
Bestuur economische betrekkingen
Marktordening
Dienst: vergunningen
60, Generaal Lemanstraat
B-1040 Brussel
Tel.: 32 2 206 58 11
Fax: 32 2 230 83 22

DENMARK

Erhvervs- og Boligstyrelsen
Dahlerups Pakhus
Langelinie Allé 17
DK-2100 København Ø
Tel.: 45 35 46 60 00
Fax: 45 35 46 60 01

GERMANY

Generaldirektor für Luft- und Raumfahrt
Bundesministerium für Verkehr, Bau- und Wohnungswesen
Postfach 20 01 00
D-53170 Bonn
Tel. 49 228 300 45 00
Fax 49 228 300 45 99

Bundesamt für Wirtschaft und Ausfuhrkontrolle
Referat 214
Postfach 5160
D-65726 Eschborn
Tel. 49 6196 908 0
Fax 49 6196 908 905

Bundesanstalt für Landwirtschaft und Ernährung
Referat 412
Postfach 18 02 03
D-60322 Frankfurt a.M.
Tel. 49 69 1564 0
Fax 49 69 1564 444

GREECE

Υπουργείο Εθνικής Οικονοµίας και Οικονοµικών
Γενική Γραµµατεία ∆ιεθνών Σχέσεων
Γενική ∆ιεύθυνση Πολιτικού Προγραµµατισµού και Εφαρµογής
∆ιεύθυνση ∆ιεθνών Οικονοµικών Θεµάτων
Τηλ.: 301 03286021, 03286051
Φαξ: 301 03286094, 03286059
E-mail: e3c@dos.gr

Ministry of Economy and Economics
General Secretariat of International Relations
General Directorate for Policy Planning and Implementation
Directory for International Economy Issues
Tel.: 301 03286021, 03286051

Fax: 301 03286094, 03286059
E-mail: e3c@dos.gr

SPAIN

Ministerio de Economía
Secretaría General de Comercio Exterior
Paseo de la Castellana 162
E-28046 Madrid
Tel.: 34 91 3493904
Fax: 34 91 3493802

Ministerio de Fomento
Dirección General de Aviación Civil
Paseo de la Castellana 67
E-28071 Madrid
Tel.: 34 91 5977000
Fax: 34 91 5975357

FRANCE

Ministère de l'économie, des finances et de l'industrie
Direction générale des douanes et droits indirects (DGDDI)
Sous-direction du commerce international
Bureau E/2 — Prohibitions, agriculture et protection du consommateur
Cellule embargo
23 bis, rue de l'Université
F-75700 Paris 07 SP
Tél. 33 1 44 74 48 93 (ou 96)
Fax 33 1 44 74 48 97

IRELAND

Licensing Unit
Department of Enterprise, Trade and Employment
Block C
Earlsfort Centre
Hatch Street
Dublin 2
Ireland
Tel.: 353 1-6312534
Fax: 353 1-6312562

ITALY

Ministero delle Attività Produttive
D. G. per la Politica Commerciale e per la Gestione del Regime degli
Scambi
Divisione IV — UOPAT
Viale Boston, 35
I-00144 Roma
Dirigente:
Tel. 39 06 59647534
Fax 39 06 59647506
Collaboratori:
Tel. 39 06 59933295
Fax 39 06 59932430

LUXEMBOURG

Ministère des affaires étrangères, du commerce extérieur, de la coopér-
ation, de l'action humanitaire et de la défense
Direction des relations économiques internationales
Office des licences
BP 113
L-2011 Luxembourg
Tél. 352 478 23 70
Fax 352 46 61 38

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NETHERLANDS

For agricultural products
Ministerie van Landbouw
Directie Juridische Zaken
Postbus 20401
2500 EK Den Haag
Nederland
tel.: 31 70 378 4481
fax: 31 70 378 6127

For other exports
Belastingdienst/Douane centrale dienst voor in- en uitvoer
Postbus 30003
9700 RD Groningen
Nederland
tel.: 31 50 5239111
fax: 31 50 5260698
e-mailadres: cdiusgs@bart.nl

For flights to Iraq
Ministerie van Verkeer en Waterstaat
Directoraat Generaal Luchtvaart
Postbus 90771
2509 LT Den Haag
Nederland
tel.: 31 70 351 7526
fax: 31 70 356 3450

AUSTRIA
Bundesministerium für Wirtschaft und Arbeit
Abteilung C/2/2
Außenwirtschaftsadministration
Landstraßer Hauptstrasse 55-57
A-1030 Wien
Tel. 43 1 71100/8327
Fax 43 1 71100/8386

PORTUGAL
Ministério dos Negócios Estrangeiros
Direcção Geral dos Assuntos Multilaterais
Serviços das Organizações Políticas Internacionais

Largo do Rilvas, P-1399-030 Lisboa
e-mail: mne_dgam_spm@hotmail.com
Tel.: 351 21 3946702
Fax: 351 21 3946073

FINLAND

Ulkoasiainministeriö/Utrikesministeriet
PL/PB 176
FIN-00161 Helsinki/Helsingfors
Tel.: 358 9 16 05 59 00
Fax: 358 9 16 05 57 07

SWEDEN

Utrikesdepartementet
Rättssekretariatet för EU-frågor
S-103 39 Stockholm
Tel.: 46 8 405 1000
Fax: 46 8 723 1176

UNITED KINGDOM

Sanctions Licensing Unit
Department for Trade and Industry (DTI)
Bay 310
4 Abbey Orchard Street
London SW1P 2HT
United Kingdom
Tel.: 44 20 7215 0594
Fax: 44 20 7215 0593

EUROPEAN COMMUNITY

Commission of the European Communities
Directorate-general for External Relations
Directorate CFSP
Unit A.2/Mr A. de Vries
Rue de la Loi/Wetstraat 200
B-1049 Bruxelles/Brussel
Tel.: 32 2 295 68 80
Fax: 32 2 296 75 63
E-mail: anthonius.de-vries@cec.eu.int

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ANNEX II

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ANNEX III

Paragraph 8 of Resolution 986(1995)

as referred to in Article 4 of Regulation (EC) No 2465/96

8. Decides that the funds in the escrow account shall be used to meet the humanitarian needs of the Iraqi population and
for the following other purposes, and requests the Secretary-General to use the funds deposited in the escrow account:

(a) To finance the export to Iraq, in accordance with the procedures of the Committee established by resolution
661(1990), of medicine, health supplies, foodstuffs, and materials and supplies for essential civilian needs, as
referred to in paragraph 20 of resolution 687(1991) provided that:
(i) Each export of goods is at the request of the Government of Iraq;
(ii) Iraq effectively guarantees their equitable distribution, on the basis of a plan submitted to and approved by the

Secretary-General,

including a description of the goods to be purchased;

(iii) The Secretary-General receives authenticated confirmation that the exported goods concerned have arrived in

Iraq;

(b) To complement, in view of the exceptional circumstances prevailing in the three Governorates mentioned below,
the distribution by the Government of Iraq of goods imported under this resolution,
in order to ensure an
equitable distribution of humanitarian relief to all segments of the Iraqi population throughout the country, by
providing between 130 million and 150 million United States dollars every 90 days to the United Nations
Inter-Agency Humanitarian Programme operating within the sovereign territory of Iraq in the three northern
Governorates of Dihouk, Arbil and Suleimaniyeh, except that if less than one billion United States dollars worth of
petroleum or petroleum products is sold during any 90 day period, the Secretary-General may provide a
proportionately smaller amount for this purpose;

(c) To transfer to the Compensation Fund the same percentage of the funds deposited in the escrow account as that

decided by the Council

in paragraph 2 of resolution 705(1991) of 15 August 1991;

(d) To meet the costs to the United Nations of the independent inspection agents and the certified public accountants

and the activities associated with implementation of this resolution;

(e) To meet the current operating costs of the Special Commission, pending subsequent payment in full of the costs of

carrying out the tasks authorised by section C of resolution 687(1991);

(f) To meet any reasonable expenses, other than expenses payable in Iraq, which are determined by the Committee
established by resolution 661(1990) to be directly related to the export by Iraq of petroleum and petroleum
products permitted under paragraph 1 above or to the export to Iraq, and activities directly necessary therefor, of
the parts and equipment permitted under paragraph 9 below;

(g) To make available up to 10 million United States dollars every 90 days from the funds deposited in the escrow

account for the payments envisaged under paragraph 6 of resolution 778(1992) of 2 October 1992.

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ANNEX IV

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ANNEX V

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