Proposal for a Council Decision on the conclusion of an Agreement amending the Protocol to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, on Conformity Assessment and Acceptance of Industrial Products - PECA -
Date: 2003-04-22
Institutions: European Commission
Subjects: Hungary, association agreement (EU), designation of origin, industrial product, product quality, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.04.2003
COM(2003) 196 final

2003/0072 (ACC)
2003/0073 (ACC)

Proposal for a

COUNCIL DECISION

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

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement amending the Protocol to the Europe Agreement
establishing an Association between the European Communities and their Member
States, of the one part, and the Republic of Hungary, 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,  on  14  April  2001  the  Council  approved  a  Protocol  to  the  Europe
Agreement  establishing  an  Association  between  the  European  Communities  and  their
Member  States,  of  the  one  part,  and  the  Republic  of  Hungary,  of  the  other  Part,  on
Conformity  Assessment  and  Acceptance  of  Industrial  Products1  (hereinafter  referred  to  as
“PECA”).  On  the  basis  of  the  same  negotiating  directives  as  amended  by  the  Council  on
19.7.2002 the  Commission has negotiated and  initialled  an  Agreement  amending  the  PECA
with the Republic of Hungary (hereinafter “the Agreement”).

The  text  of  the  Agreement  is  attached  to  this  Communication.  The  following  provides  an
assessment  of  the  Agreement,  and  proposes  that  the  Council  authorises  the  signature  of  the
Agreement and decides to approve its conclusion on behalf of the Community.

ASSESSMENT OF THE AGREEMENT

The  PECA  provides  for  an  extension  of  certain  benefits  of  the  Internal  Market  in  sectors
already aligned. It thus facilitates market access by eliminating technical barriers to trade with
respect to industrial products. To this end, it 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.

As originally drafted, Article 8: Origin, of the PECA provides that the PECA applies only to
goods originating in the Parties according to non-preferential rules of origin.

The  Agreement  amends  this  provision  to  extend  the  coverage  of  the  Protocol  to  industrial
products irrespective of their origin. This  will improve  the alignment of the  PECA with the
position  that  will  apply  once  the  Republic  of  Hungary  becomes  a  Member  State  of  the
Community,  and  will  also  further  facilitate  market  access  insofar  as  products  originating
outside  the  Community  and  the  Republic  of  Hungary  need  only  be  certified  in  one  to  have
access to the markets in both.

II. THE DRAFT COUNCIL DECISIONS

A proposal for two Council decisions is attached.

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

1OJ L 135, 17.5.2001, p.37

2

                                                
The proposal for a second decision is concerned with the adoption of the Agreement.

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

3

2003/0072 (ACC)

Proposal for a

COUNCIL DECISION

on the signature on behalf of the Community of an Agreement amending the Protocol to
the Europe Agreement establishing an Association between the European Communities
and their Member States, of the one part, and the Republic of Hungary, 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 with the first sentence of the first subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission2,

Whereas:

(1)

(2)

(3)

(4)

the  European
The  Europe  Agreement  establishing  an  association  between 
Communities and their Member States, of the one part, and the Republic of Hungary
of the other part,3 entered into force on 1st February 1994;

The  Protocol  to  the  Europe  Agreement  establishing  an  association  between  the
European Communities and their Member States, of the one part, and the Republic of
Hungary  of  the  other  part,  on  Conformity  Assessment  and  Acceptance  of  Industrial
Products4 entered into force on 1 June 2001;

The  Agreement  amending  the  Protocol  to  the  Europe  Agreement  establishing  an
association between the  European Communities  and their Member States, of the one
part, and the Republic of Hungary, of the other part, 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 Agreement amending the Protocol
to  the  Europe  Agreement  establishing  an  association  between  the  European
Communities and their Member States, of the one part, and the Republic of Hungary
of  the  other  part,  on  Conformity  Assessment  and  Acceptance  of  Industrial  Products,
initialled in Brussels on 11 December 2002, should be signed;

2OJ C , , p. .
3OJ L 347, 31.12.1993, p. 1.
4OJ L 135, 17.5.2001, p.37

4

                                                
HAS DECIDED AS FOLLOWS:

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
Agreement amending the Protocol to the Europe Agreement with the Republic of Hungary on
Conformity Assessment and Acceptance of Industrial Products.

Done at Brussels,

For the Council
The President

5

2003/0073 (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement amending the Protocol to the Europe Agreement
establishing an Association between the European Communities and their Member
States, of the one part, and the Republic of Hungary, 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),
and the first sentence of the first subparagraph of Article 300(3) thereof,

Having regard to the proposal from the Commission5,

Whereas:

(1)

(2)

(3)

(4)

(5)

The  Europe  Agreement  establishing  an  association  between 
the  European
Communities and their Member States, of the one part, and the Republic of Hungary
of the other part,6 entered into force on 1st February 1994;

On  26  February  2001  the  Parties  agreed  a  Protocol  to  the  Europe  Agreement
establishing  an  Association  between  the  European  Communities  and  their  Member
States, of the one part, and the Republic of Hungary, of the other part, on Conformity
Assessment  and  Acceptance  of  Industrial  Products  (“hereinafter  referred  to  as  “the
Protocol”)7;

The  Protocol  in  Article  8  restricted  the  application  of  the  Protocol  to  industrial
products that originate in the Parties according to non-preferential rules of origin;

In  order  to  improve  trade  between  the  Parties,  to  simplify  the  operation  of  the
Protocol, and to improve alignment with the position that will apply after accession of
the Republic of Hungary as a Member State, the origin restriction in Article 8 should
be deleted by way of an Amendment to the Protocol;

The  Agreement  amending  the  Protocol  to  the  Europe  Agreement  establishing  an
Association between the European Communities and their Member States of one part,
and  the  Republic  of  Hungary  of  the  other  part,  on  Conformity  Assessment  and
Acceptance of Industrial Products signed in […] on […] should be approved;

5OJ C , , p. .
6OJ L 347, 31.12.1993, p. 1.
7OJ L 135, 17.5.2001, p.37

6

                                                
HAS DECIDED AS FOLLOWS:

Article 1

The  Agreement  amending  the  Protocol  to  the  Europe  Agreement  with  the  Republic  of
Hungary  on  Conformity  Assessment  and  Acceptance  of  Industrial  Products  (hereinafter
referred to as “the Agreement”), is hereby approved on behalf of the European Community.

The text of the Agreement is attached to this Decision.

Article 2

The President of the Council shall, on behalf of the Community, transmit the diplomatic note
provided for in Article 2 of the Agreement8.

Done at Brussels,

For the Council
The President

8The date of entry into force of the Agreement will be published in the Official Journal of the European Union

by the General Secretariat of the Council.

7

                                                
ANNEX

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

THE  EUROPEAN  COMMUNITY  AND  THE  REPUBLIC  OF  HUNGARY,  hereinafter
referred to as “the Parties”,

WHEREAS  on  26  February  2001  the  Parties  agreed  a  Protocol  to  the  Europe  Agreement
establishing an Association between the European Communities and their Member States, of
the one part, and the Republic of Hungary, of the other part, on Conformity Assessment and
Acceptance of Industrial Products (“hereinafter referred to as “the Protocol”)9;

WHEREAS  the  Protocol  in  Article  8  restricted  the  application  of  the  Protocol  to  industrial
products that originate in the Parties according to non-preferential rules of origin;

CONSIDERING that in order to improve trade between the Parties, to simplify the operation
of the Protocol, and to improve alignment with the position that will apply after accession of
the  Republic  of  Hungary  as  a  Member  State,  the  origin  restriction  in  Article  8  should  be
deleted by way of an Amendment to the Protocol;

HAVE AGREED AS FOLLOWS:

Article 1

Amendment to the Protocol

The Protocol is amended as follows:

Article 8 is deleted and replaced with the following:

“Article 8

Origin

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

Article 2

Entry into force

This Agreement 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 adoption of this Agreement.

9OJ L 135, 17.5.2001, p.37

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

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FINANCIAL STATEMENT

1.

2.

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

APPROPRIATIONS:

There are no financial implications to this proposal.

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IMPACT ASSESSMENT FORM

THE IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE
TO SMALL AND MEDIUM-SIZED ENTERPRISES( SMEs)

TITLE OF PROPOSAL

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

THE PROPOSAL

These  decisions  are  necessary  to  conclude  the  Agreement  amending  the  Protocol  to  the
Europe  Agreement  between  the  European  Community  and  the  Republic  of  Hungary  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 machinery, electrical safety, electromagnetic compatibility,
hot  water  boilers,  gas  appliances,  medical  devices,  good  manufacturing  practice  (GMP)  for
medicinal products for human use, and GMP inspection and batch certification.

The  PECA  as  originally  agreed  extends  certain  benefits  of  the  Internal  Market  in  industrial
sectors  already  aligned.  It  permits  certification  of  conformity  with  technical  regulations  on
product  safety,  etc,  to  be  conducted  in  the  European  Union  for  exports  destined  for  the
Republic  of  Hungary,  and  vice  versa.  This  avoids  the  need  for  further  certification  by
conformity  assessment  bodies  before  putting  products  onto  the  other  party’s  market.  The
certification procedure and the technical regulations are the same. The PECA also envisages
acceptance  of  industrial  products  that  fulfil  the  requirements  to  be  legally  placed  on  one
party’s market by the other party without subject further requirement.

The  Agreement  as  originally  negotiated  restricted  its  application  to  products  originating  on
the  territory  of  the  Parties  according  to  non-preferential  rules  of  origin.  The  present
amendment removes that restriction, and thus aligns  the position with that which will apply
after the Republic of Hungary becomes a Member State. This will improve trade since it will
allow either Party’s certification bodies to certify products according to common regulations
and standards irrespective of their origin. It will also further facilitate market access insofar as
products  originating  outside  the  Community  and  the  Republic  of  Hungary  need  only  be
certified in one to have access to the markets in both.

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.

11