Proposal for a Council Decision on trade in certain steel products between the European Community and Ukraine
Date: 2003-10-22
Institutions: European Commission
Subjects: Ukraine, cooperation agreement (EU), iron and steel product, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.10.2003
COM(2003) 618 final

2003/0243 (ACC)

Proposal for a

COUNCIL DECISION

on trade in certain steel products between the European Community and Ukraine

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Partnership  and  Cooperation  Agreement  between  the  European  Communities  and  their
Member  States,  on  the  one  hand,  and  Ukraine,  on  the  other  hand,  provides  in  Article  22,
paragraph 1, that trade in some steel products shall be the subject of a specific agreement. The
previous  bilateral  agreement  between  the  European  Coal  and  Steel  Community  and  the
Government of Ukraine on trade for certain steel products expired on 31 December 2001. The
Parties  agreed  to  conclude  a  new  Agreement  for  the  years  2002-2004.  Negotiations  on  the
new  steel  Agreement  were  completed  in  December  2001.  However,  the  Government  of
Ukraine  was  not  reimbursing  the  VAT  to  Ukrainian  exporters  of  ferrous  scrap,  thereby
introducing a disincentive and an obstacle to the  export of ferrous scrap. This is contrary to
the provisions of the draft Agreement that explicitly foresees that there must be no obstacles
whatsoever in trade of ferrous scrap between the Parties. Pending the resolution of this VAT
refund issue,  the signature of the Agreement was postponed. Furthermore, towards the end of
the year 2002, Ukraine further imposed a tax of € 30/tonne on the export of ferrous scrap.

In  the  absence  of  an  Agreement,  autonomous  measures  fixing  quantitative  limits  on  the
imports of certain steel products had to be taken for the  years 2002 and 2003 by the ECSC
and, after the expiry of that Treaty, by the EC.

However,  in  parallel,  negotiations  to  conclude  a  new  Agreement  have  taken  place  but  have
not  yet  been  finalised.  Pending  the  conclusion  and  entry  into  force  of  the  new  Agreement,
autonomous  measures  fixing  quantitative  limits  for  the  year  2004  are  necessary.  The
quantitative limits for the year 2003 were set taking into account the imposition by Ukraine of
a tax of € 30/tonne on the export of ferrous scrap. Given that that tax level is unchanged, the
quantitative limits for the year 2004 have been set at the same level of the  year 2003. Upon
accession of the new Member States to the Community on 1 May 2004 the quantitative limits
will be reviewed.

This  Council  Decision  will  be  automatically  repealed  when  the  new  Agreement  enters  into
force. Furthermore, the quantitative limits contained in this Decision would be reviewed if the
Ukrainian tax on ferrous scrap exports is significantly decreased or lifted earlier than the entry
into force of the new Agreement.

2

2003/0243 (ACC)

Proposal for a

COUNCIL DECISION

on trade in certain steel products between the European Community and Ukraine

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)

(2)

(3)

(4)

(5)

(6)

The Partnership and Cooperation Agreement between the European Communities and
their Member States, of the one part,  and  Ukraine,  of  the  other  part1,  provides  in  its
Article  22  (1),  that  trade  in  some  steel  products  shall  be  the  subject  of  a  specific
agreement;

The  previous  bilateral  agreement  between  the  European  Coal  and  Steel  Community
(ECSC) and the Government of Ukraine on trade for certain steel products expired on
31 December 2001;

The  European  Community  has  taken  over  the  international  obligations  of  the  ECSC
since the expiry of the ECSC Treaty, and measures relating to trade in steel products
with third countries now fall under the competence of the Community in the field of
trade policy;

The  Parties  agreed  to  conclude  a  new  agreement  and  the  negotiations  of  this  new
agreement have not yet been completed;

Pending  the  signature  and  the  entry  into  force  of  the  new  agreement,  quantitative
limits for the year 2004 should  be established; these limits should be reviewed in the
light of accession of new Member States to the Community on 1 May 2004;

Given that the tax of 30 €/ tonne on exports of ferrous scrap applied as of 1 January
2003 has not been lifted nor diminished, it is appropriate to set the quantitative limits
for the year 2004 at the same level as for the year 2003,

1 

OJ L 49, 19.2.1998, p.3

3

                                                
HAS DECIDED AS FOLLOWS:

Article 1

During  the  period  1  January  to  31  December  2004,  imports  into  the  Community  of  steel
products referred to in Annex I originating in Ukraine shall be subject to licensing.

Article 2

Imports shall be authorised, for each product group and for the whole of the Community, up
to the quantitative limits indicated in Annex II.

Licences shall be issued only within these limits.

Article 3

The rules for issuing licences and other relevant provisions shall be published in the Official
Journal of the European Union.

Member  States  shall  issue  licences  according  to  those  rules  and  inform  the  Commission
thereof  immediately.  The  Commission  shall  keep  the  Member  States  regularly  informed  of
the extent to which the quantities have been used up.

The Member States and the Commission shall confer in order to ensure that these quantities
are not exceeded.

Article 4

The provisions of the agreement on trade in certain steel products together with any measures
to give effect to it, shall as from the date of entry into force of the said agreement replace the
provisions of this Decision.

Article 5

This Decision shall enter into force on the third day following its publication in the Official
Journal of the European Union.

Done at Brussels,

For the Council
The President

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SA Flat-rolled products

SA1. Coils

7208 10 00
7208 25 00
7208 26 00
7208 27 00
7208 36 00
7208 37 10
7208 37 90
7208 38 10
7208 38 90
7208 39 10
7208 39 90

7211 14 10
7211 19 20

7219 11 00
7219 12 10
7219 12 90
7219 13 10
7219 13 90
7219 14 10
7219 14 90

7225 20 20
7225 30 00

SA2. Heavy Plate

7208 40 10
7208 51 10
7208 51 30
7208 51 50
7208 51 91
7208 51 99
7208 52 10
7208 52 91
7208 52 99
7208 53 10

7211 13 00
7225 40 20
7225 40 50
7225 99 10
SA3. Other flat rolled products

7208 40 90
7208 53 90
7208 54 10
7208 54 90
7208 90 10

7209 15 00
7209 16 10
7209 16 90
7209 17 10

7209 17 90
7209 18 10
7209 18 91
7209 18 99
7209 25 00
7209 26 10
7209 26 90
7209 27 10
7209 27 90
7209 28 10
7209 28 90
7209 90 10

7210 11 10
7210 12 11
7210 12 19
7210 20 10
7210 30 10
7210 41 10
7210 49 10
7210 50 10
7210 61 10
7210 69 10
7210 70 31
7210 70 39
7210 90 31
7210 90 33
7210 90 38

7211 14 90
7211 19 90
7211 23 10
7211 23 51
7211 29 20
7211 90 11

7212 10 10
7212 10 91
7212 20 11
7212 30 11
7212 40 10
7212 40 91
7212 50 31
7212 50 51
7212 60 11
7212 60 91

7219 21 10
7219 21 90
7219 22 10
7219 22 90
7219 23 00
7219 24 00
7219 31 00
7219 32 10
7219 32 90
7219 33 10
7219 33 90

ANNEX I

Products referred to in Article 1

7219 34 10
7219 34 90
7219 35 10
7219 35 90

7225 40 80

SB Longs

SB1. Beams

7207 19 31
7207 20 71

7216 31 11
7216 31 19
7216 31 91
7216 31 99
7216 32 11
7216 32 19
7216 32 91
7216 32 99
7216 33 10
7216 33 90

SB2. Wire rod

7213 10 00
7213 20 00
7213 91 10

7213 91 20
7213 91 41
7213 91 49
7213 91 70
7213 91 90
7213 99 10
7213 99 90

7221 00 10
7221 00 90

7227 10 00
7227 20 00
7227 90 10
7227 90 50

7227 90 95

SB3. Other longs

7207 19 11
7207 19 14
7207 19 16
7207 20 51
7207 20 55
7207 20 57

7214 20 00
7214 30 00

5

7214 91 10
7214 91 90
7214 99 10
7214 99 31
7214 99 39
7214 99 50
7214 99 61
7214 99 69
7214 99 80
7214 99 90

7215 90 10

7216 10 00
7216 21 00
7216 22 00
7216 40 10
7216 40 90
7216 50 10
7216 50 91
7216 50 99
7216 99 10

7218 99 20

7222 11 11
7222 11 19
7222 11 21
7222 11 29
7222 11 91
7222 11 99
7222 19 10
7222 19 90
7222 30 10
7222 40 10
7222 40 30

7224 90 31
7224 90 39

7228 10 10
7228 10 30
7228 20 11
7228 20 19
7228 20 30
7228 30 20

7228 30 41
7228 30 49
7228 30 61
7228 30 69
7228 30 70
7228 30 89
7228 60 10
7228 70 10
7228 70 31
7228 80 10
7228 80 90

7301 10 00

ANNEX II

Quantitative limits referred to in Article 2

(tonnes)

Products

SA. Flat products

SA1. Coils

SA2. Heavy plate

SA3. Other flat products

SB. Long products

SB1. Beams

SB2. Wire rod

SB3. Other long products

19 190

73 444

5 926

2 583

36 904

46 499

6