Proposal for a Council Decision concerning the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Republic of Vietnam amending the Memorandum of Understanding between the European Community and the Socialist Republic of Vietnam on the prevention of fraud in trade in footwear products
Date: 2002-12-30
Institutions: European Commission
Subjects: Viet Nam, footwear industry, import (EU), originating product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 30.12.2002
COM(2002) 777 final

2002/0307 (ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community and the Republic of Vietnam amending the
Memorandum of Understanding between the European Community and the Socialist
Republic of Vietnam on the prevention of fraud in trade in footwear products

(presented by the Commission)

EXPLANATORY MEMORANDUM

In accordance with the Council negotiating directives of 2002, the Commission has negotiated
the renewal of the Memorandum of Understanding provisionally, applied since 1 of January
2000,  establishing  a  double-checking  system  covering  the  imports  into  the  European
Community of certain footwear products originating in the Socialist Republic of Vietnam.

Given  the  possible  deflection  of  trade  of  these  products  from  neighbouring  countries,  in
particular from China, which are subject to quantitative restrictions, such a system is designed
to give more security over the genuine Vietnamese origin of such goods and be able to better
trace back the origin of possible circumvention of such quotas.

It  is  proposed  to  prolong  the  Memorandum  of  Understanding  for  two  supplementary  years
until the end of 2004.

In  parallel  an  amendment  introduces  the  possibility  to  officially  accept  the  electronic
transmission of the export licence.

The  Council  is  invited  to  approve  this  proposal  for  a  Council  Decision  on  the  signing,  on
behalf of the European Community, of the renewal of the Memorandum of Understanding and
authorising its provisional application pending the formal conclusion of that Agreement.

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2002/0307 (ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community and the Republic of Vietnam amending the
Memorandum of Understanding between the European Community and the Socialist
Republic of Vietnam on the prevention of fraud in trade in footwear products

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 Article 300 (2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

The  Commission  has  negotiated  with  Vietnam,  on  behalf  of  the  Community,  a
bilateral  Agreement  in  the  form  of  an  Exchange  of  Letters,  amending  the
Memorandum of  Understanding between the European Community  and  the  Socialist
Republic of Vietnam on the prevention of fraud in trade in footwear products initialled
on 4 August 1999 and provisionally in force since 1 January 2000;

(2)

The Agreement in the form of an Exchange of Letters should be approved on behalf of
the Community;

HAS DECIDED AS FOLLOWS:

Sole Article

The Agreement in the form of an Exchange of Letters between the European Community and
Vietnam amending the Memorandum of Understanding on the prevention of fraud in trade in
footwear  products  between  the  European  Community  and  Vietnam  is  hereby  approved  on
behalf of the Community.

The text of the Agreement is annexed to this Decision.

Done at Brussels,

For the Council
The President

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ANNEX

Agreement in the form of an exchange of letters amending the Memorandum of
Understanding between the European Community and the Government of the Socialist
Republic of Vietnam, applied provisionally since 1 January 2000, on the prevention of
fraud in trade in footwear products

Letter No 1

LETTER TO THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM

Sir,

1.

I have the honour to refer to the negotiations held between our respective delegations
on  the  28  November  2002  with  a  view  to  amending  the  Memorandum  of
Understanding  between  the  European  Community  and  the  Socialist  Republic  of
Vietnam  on  the  prevention  of  fraud  in  trade  in  footwear  products  applied  from  1
January 2000.

2.

As a result of those negotiations, it was agreed to amend the Agreement as follows:

2.1 Paragraph 3 of Article 3 shall be replaced by the following text:

"Subject  to  an  administrative  arrangement  to  be  entered  into  between  the
Socialist  Republic  of  Vietnam  and  the  Community,  the  transmission  of  this
information by electronic means may replace the issuance of export certificates
in paper form."

2.2 Paragraph 2 of Article 7 shall be replaced by the following text:

"This Agreement shall apply until 31 December 2004."

3.

I should be obliged if you would confirm the agreement of your Government to the
contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the European Community

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Letter No 2

LETTER FROM THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF
VIETNAM

Sir,

I have the honour to acknowledge receipt of your letter dated ……. which reads as follows:

1.

I have the honour to refer to the negotiations held between our respective delegations
on  the  28  November  2002  with  a  view  to  amending  the  Memorandum  of
Understanding  between  the  European  Community  and  the  Socialist  Republic  of
Vietnam  on  the  prevention  of  fraud  in  trade  in  footwear  products  applied  from  1
January 2000.

2.

As a result of those negotiations, it was agreed to amend the Agreement as follows:

2.1 Paragraph 3 of Article 3 shall be replaced by the following text:

"Subject  to  an  administrative  arrangement  to  be  entered  into  between  the
Socialist  Republic  of  Vietnam  and  the  Community,  the  transmission  of  this
information by electronic means may replace the issuance of export certificates
in paper form."

2.2 Paragraph 2 of Article 7 shall be replaced by the following text:

"This Agreement shall apply until 31 December 2004."

3.

I should be obliged if you would confirm the agreement of your Government to the
contents of this letter.

I have the honour to  confirm that my Government is  in agreement with the contents of this
letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Socialist Republic of Vietnam

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