Proposal for a Council Regulation amending Council Regulation (EC) No 2248/2001 of 19 November 2001 on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, and for applying the Interim Agreement between the European Community and the Republic of Croatia
Date: 2002-10-24
Institutions: European Commission
Subjects: Croatia, association agreement (EU), beef, fishery product, fraud, import, interim agreement (EU), protective clause, tariff reduction

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for a Council Regulation amending Council Regulation (EC) No 2248/2001 of 19
Proposal
November 2001 on certain procedures for applying the Stabilisation and Association Agreement
between the European Communities and their Member States, of the one part, and the Republic of
Croatia, of the other part, and for applying the Interim Agreement between the European
Community and the Republic of Croatia

(2003/C 45 E/13)

COM(2003) 579 final — 2002/0253(ACC)

(Submitted by the Commission on 24 October 2002)

EXPLANATORY MEMORANDUM

A Stabilisation and Association Agreement between the European Communities and their Member States,
of the one part, and the Republic of Croatia, of the other part was signed at Luxembourg on 29 October
2001. It will be concluded once the Parliaments of the Member States have completed the ratification
process.

Meanwhile on 29 October 2001 the Council concluded an Interim Agreement on trade and trade-related
matters between the European Community, of the one part, and the Republic of Croatia, of the other part,
which provides for the early entry into force of the trade and trade-related provisions of the Stabilisation
and Association Agreement. This agreement applied provisionally from 1 January 2002 and it entered into
force on 1 March 2002.

Council Regulation (EC) No 2248/2001 of 19 November 2001 lays down the procedures for applying
certain provisions of these agreements. However, the Regulation does not contain specific procedures for
applying the following articles of the Agreements: Article 18 of the Interim Agreement (safeguard clause
for agricultural and fisheries products; — Article 31 of the Stabilisation and Association Agreement),
(dumping; — Article 37 of the Stabilisation and Association
Article 24 of
Agreement), Articles 25 and 26 of
(general safeguard clause and shortage
clause; — Articles 38 and 39 of the Stabilisation and Association Agreement), Article 30 of the Interim
Agreement (anti-fraud clause; — Article 43 of the Stabilisation and Association Agreement), and Article 35
of the Interim Agreement (competition; — Article 70 of the Stabilisation and Association Agreement).

the Interim Agreement

the Interim Agreement

Therefore an amendment to Council Regulation (EC) No 2248/2001 of 19 November 2001 is proposed.
This amendment is necessary to provide for quick and efficient procedures, especially in situations when
the Community has to react quickly to urgent situations requiring actions such as safeguard or anti-fraud
measures.

The matter is urgent because of a specific case pending (sugar imports from Croatia), which necessitates
the quick establishment of the necessary implementing procedures.

It is therefore proposed that the Council approve the attached proposal.

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Council is in the process of concluding a Stabilisation
and Association Agreement
European
Communities and their Member States, of the one part,

between

the

and the Republic of Croatia, of the other part, (1) which
was signed at Luxembourg on 29 October 2001 (here-
inafter
‘Stabilisation and Association
Agreement — SAA’).

referred to as

(2) Meanwhile on 29 October 2001 the Council has concluded
an Interim Agreement on trade and trade-related matters
between the European Community, of the one part, and
the Republic of Croatia, of
(hereinafter
referred to as ‘Interim Agreement — IA’) (2). The Interim
Agreement entered into force on 1 March 2002 but
applied provisionally from 1 January 2002.

the other part

(1) OJ C 332 E, 27.11.2001, p. 2.
(2) OJ L 330, 14.12.2001, p. 3.

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lays down procedures

(3) Council Regulation (EC) No 2248/2001 of 19 November
2001 (1)
some
provisions of these agreements. It is, however, necessary
to lay down procedures for applying certain additional
provisions of these agreements.

applying

for

(4) With regard to trade defence measures, it is appropriate to
lay down specific provisions concerning the general rules
provided for in Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports
from countries
European
Community (2).

not members

the

of

(5) This Regulation should continue to apply after entry into
force of the Stabilisation and Association Agreement.

HAS ADOPTED THIS REGULATION:

Article 1

In Council Regulation (EC) No 2248/2001 of 19 November
2001 the following Articles 7a to 7g are inserted:

‘Article 7a

General safeguard clause and shortage clause

1. Where a Member State requests the Commission to
take measures as provided for in Articles 25 and 26 of the
Interim Agreement, and thereafter Articles 38 and 39 of
shall
the Stabilisation and Association Agreement,
provide the Commission,
in support of its request, with
the information needed to justify it.

it

The Commission shall be assisted by the Advisory
2.
Committee established by Article 4 of Council Regulation
(EC) No 3285/94 (*)
“the
(hereinafter
Committee”). When reference is made to this Committee,
Article 3 of Council Decision 1999/468/EC (**) shall apply.

referred to as

3. Where the Commission, at the request of a Member
State or on its own initiative, finds that the conditions laid
down in Articles 25 and 26 of the Interim Agreement, and
thereafter Articles 38 and 39 of
the Stabilisation and
Association Agreement are fulfilled, it shall:

— inform the Member States forthwith if acting on its own
it is responding to a Member States
the date of

initiative or,
request, within five working days of
receipt of that request,

if

— consult the Committee on the proposed measures,

— at the same time inform Croatia and shall notify it of
the opening of the consultations within the Interim
Stabilisation and
Committee,

thereafter

and

the

(1) OJ L 304, 21.11.2001, p. 1.
(2) OJ L 56, 6.3.1996, p. 1, as last amended by Council Regulation
(EC) 2238/2000 of 9 October 2000 (OJ L 257, 11.10.2000, p. 2).

Association Council as provided for in Article 25 (4)
and Article 26 (3) of
the Interim Agreement, and
thereafter Articles 38 (4) and 39 (3) of the Stabilisation
and Association Agreement,

— at the same time provide the Interim Committee, and
the Stabilisation and Association Council,
thereafter
with all
the information necessary for these consul-
tations as provided for in Article 25 (3) and Article
the Interim Agreement, and thereafter
26 (3) of
Articles 38 (3) and 39 (3) of
the Stabilisation and
Association Agreement.

4.
On the completion of the consultations, and if no
other arrangement proves possible, the Commission, after
consulting the Committee, may decide on appropriate
measures provided for
the
Interim Agreement, and thereafter Articles 38 and 39 of
the Stabilisation and Association Agreement.

in Articles 25 and 26 of

This decision shall be notified forthwith to the Council; it
shall also be notified to the Interim Committee, and
thereafter the Stabilisation and Association Council.

The decision shall be applicable immediately.

Any Member State may refer

5.
the Commission's
decision referred to in paragraph 4 to the Council within
ten working days of receiving notification of the decision.

The Council, acting by a qualified majority, may take a
different decision within two months.

If the Commission decides not to take measures as
6.
provided for
the Interim
in Articles 25 and 26 of
Agreement, and thereafter Articles 38 and 39 of the Stabili-
inform the
sation and Association Agreement,
Council accordingly within five working days of receipt
of the request from the Member State.

it shall

Any Member State may refer
the
Commission to the Council within ten working days of
its notification.

this decision of

the opening of

If the Council, acting by qualified majority,
indicates its
intention to adopt a different decision, the Commission
inform Croatia thereof forthwith and shall notify it
shall
the consultations within the Interim
of
Committee, and thereafter the Stabilisation and Association
Council, as provided for in Article 25 (3) and (4) and
Article 26 (3) of the Interim Agreement, and thereafter
Articles 38 (3) and (4) and 39 (3) of the Stabilisation and
Association Agreement.

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The Council, acting by qualified majority, may take a
7.
different decision within two months of the conclusion of
the
Interim
Committee, and thereafter the Stabilisation and Association
Council.

consultations with Croatia within the

8.
The consultations within the Interim Committee, and
thereafter the Stabilisation and Association Council, shall be
deemed to be completed 30 days after the notification
referred to in paragraphs 3 and 6.

___________
(*) OJ L 349, 31.12.1994, p. 53, as last amended by
Council Regulation (EC) No 2474/2000 of 9
November 2000 (OJ L 286, 11.11.2000, p. 1).

(**) OJ L 184, 17.7.1999, p. 23.

Article 7b

Exceptional and critical circumstances

1. Where exceptional and critical circumstances arise
within the meaning of Articles 25 (4) (b) and 26 (4) of
the Interim Agreement, and thereafter Articles 38 (4) (b)
and 39 (4) of the Stabilisation and Association Agreement,
the Commission may take immediate measures as provided
for in Articles 25 and 26 of the Interim Agreement, and
thereafter Articles 38 and 39 of
the Stabilisation and
Association Agreement.

If the Commission receives a request from a Member State,
it shall take a decision thereon within five working days of
receipt of the request.

The Commission shall notify the Council of

2.
decision.

its

Any Member State may refer

3.
the Commission's
decision to the Council within ten working days of
receiving notification of the decision. The Council, acting
by a qualified majority, may take a different decision within
two months.

Article 7c

Safeguard clause for agricultural and fisheries products

Notwithstanding the procedures set out in Articles 7a and
7b, necessary measures concerning agricultural and fisheries
products on the basis of Articles 18 or 25 of the Interim
Agreement, and thereafter Articles 31 or 38 of the Stabili-
sation and Association Agreement or on the basis of
provisions in the annexes covering theses products as
well as of protocol 3, can be taken according to procedures
provided for by the relevant rules establishing the common
organisation of
the agricultural markets or markets in
fishery and aquaculture products, or in specific provisions

the Treaty and
to Article 308 of
adopted pursuant
applicable to products resulting from the processing of
the
agricultural and fisheries products, provided that
conditions established pursuant
the
to Article 18 of
Interim Agreement, and thereafter Article 31 of the Stabili-
sation and Association Agreement and Article 25 (3), (4)
and (5) of the Interim Agreement, and thereafter Article 38
(3),
the Stabilisation and Association
Agreement are met.

(4) and (5) of

Article 7d

Dumping

in Article 24 (1) of

In the case of a practice which is liable to warrant
application by the Community of the measures provided
for
the Interim Agreement, and
thereafter Article 37 (1) of the Stabilisation and Association
Agreement,
the introduction of anti-dumping measures
shall be decided upon in accordance with the provisions
laid down in Council Regulation (EC) No 384/96 and the
procedure provided for in Article 24 (2) of the Interim
Agreement, and thereafter Article 37 (2) of the Stabilisation
and Association Agreement.

Article 7e

Competition

Stabilisation

and Association Agreement,

shall propose the adoption of

1.
In the case of a practice that may justify application
by the Community of the measures provided for in Article
35 of the Interim Agreement, and thereafter Article 70 of
the
the
Commission after examining the case, on its own initiative
or on the request of a Member State, shall decide whether
such practice is compatible with the Agreement. Where
necessary it
safeguard
measures to the Council, which shall act in accordance
with the procedures laid down in Article 133 of
the
Treaty, except in the cases of aid to which Council Regu-
lation (EC) No 2026/97 (*) applies, when measures shall be
taken according to the procedures laid down in that Regu-
lation. Measures shall be taken only under the conditions
set out in Article 35 (9) of the Interim Agreement, and
thereafter Article 70 (9) of the Stabilisation and Association
Agreement.

after

the Stabilisation and Association Agreement,

In the case of a practice that may cause measures to
2.
be applied to the Community by Croatia on the basis of
Article 35 of the Interim Agreement, and thereafter Article
the
70 of
Commission,
shall decide
whether the practice is compatible with the principle set
out in the Interim Agreement, and thereafter the Stabili-
sation and Association Agreement. Where necessary, it shall
take appropriate decisions on the basis of criteria which
result from the application of Articles 81, 82 and 87 of
the Treaty.

examining

case,

the

___________
(*) OJ L 288, 21.10.1997, p. 1.

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Article 7f

In addition, it may:

Fraud or failure to provide administrative co-operation

For the purpose of

interpreting Article 30 of

1.
the
Interim Agreement, and thereafter Article 43 of the Stabili-
sation and Association Agreement,
failure to provide
administrative co-operation as required for the verification
of evidence of origin shall mean inter alia:

— the absence of administrative co-operation, such as the
failure to provide names and addresses of customs or
government authorities
issuing and
checking certificates of origin, or specimens of stamps
used to authenticate the certificates, or the failure to
update that information where appropriate;

responsible for

— a systematic lack or inadequacy of action in verifying
the originating status of products and the fulfilment of
the other requirements of Protocol 4 of the Agreements
and identifying or preventing contravention of the rules
of origin;

— a systematic refusal or undue delay to carry out, at the
request of the Commission, subsequent verification of
the proof of origin and to communicate its results in
time;

— a systematic refusal or undue delay to obtain the auth-
orisation to conduct administrative and investigative
in order to verify
co-operation missions in Croatia,
the authenticity of documents or
the accuracy of
information relevant
for granting the preferential
treatment granted under the Agreements, or to carry
out or arrange for appropriate inquiries to identify or
prevent contravention of the rules of origin.

2. Where the Commission finds that the conditions laid
down in Article 30 of
the Interim Agreement, and
thereafter Article 43 of the Stabilisation and Association
Agreement, are fulfilled it shall:

— call on the Member States to take such precautionary
measures as are necessary in order to safeguard the
Community's financial interests;

stating

— publish a notice in the Official Journal of the European
for
that
Communities
reasonable doubts
the
about
provisions relevant to the application of Article 30 of
the Interim Agreement, and thereafter of Article 43 of
the Stabilisation and Association Agreement.

grounds
application of

there
the

are

3.
Pending a mutually satisfactory solution having been
reached in the consultations referred to in paragraph 2
above, the Commission may decide on other appropriate
measures it deems necessary in accordance with Article 30
of the Interim Agreement, and thereafter Article 43 of the
Stabilisation and Association Agreement, as well as with the
procedure provided for in paragraph 4.

4.
The Commission shall be assisted by the Customs
Code Committee set up by Article 248a of Regulation
(EEC) No 2913/92 (*). Where reference to this paragraph
is made, Article 3 of Decision 1999/468/EC shall apply.

___________
(*) OJ L 302, 19.10.1992, p. 1, as last amended by
Regulation (EC) No 2700/2000 of 16 November 2000
(OJ L 311, 12.12.2000, p. 17).

Article 7g

Notification

Notification to the Interim Committee and thereafter the
Stabilisation and Association Council, as required by the
Interim Agreement, and thereafter the Stabilisation and
Association Agreement shall be the responsibility of the
Commission, acting on behalf of the Community.’

Article 2

— inform the Council;

— enter immediately into consultations with Croatia, to
find an appropriate solution as provided for in those
provisions.

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

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