Agreement in the form of an Exchange of Letters between the European Community and the Republic of Kazakhstan establishing a double-checking system without quantitative limits in respect of the export of certain steel products from the Republic of Kazakhstan to the European Community
Date: 2004-05-28
Institutions: European Community, Kazakhstan
Subjects: Kazakhstan, customs document, customs inspection, import (EU), iron and steel product, surveillance concerning imports, trade agreement (EU)

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in the form of an Exchange of Letters between the European Community and the Republic of
Kazakhstan establishing a double-checking system without quantitative limits in respect of the
export of certain steel products from the Republic of Kazakhstan to the European Community

AGREEMENT

A. Letter from the European Community

Sir,

1. I have the honour to refer to the Agreement between the European Coal and Steel Community and the
Government of the Republic of Kazakhstan on trade in certain steel products concluded on 22 July 2002.
Furthermore, consultations took place with regard to problems concerning certain steel products which
fall outside the scope of the abovementioned Agreement.

2. Following these consultations the Parties hereby agree to establish a double-checking system, without
quantitative limits, in respect of certain steel products in order to improve transparency and to avoid
possible diversions of trade. The details of the double-checking system are annexed to this letter.

3. This Exchange of Letters is without prejudice to the application of the relevant provisions of the bilat-
eral agreements on trade and trade-related matters, in particular those relating to anti-dumping and safe-
guard measures.

4. Either Party may at any time propose amendments to the Annex or the Appendices thereto, which shall
require the mutual consent of the Parties and shall take effect as agreed by them. Should anti-dumping
or safeguard investigations be initiated or measures introduced in the European Community concerning
a product under the double-checking system, Kazakhstan will decide whether to exclude the product in
question from the double-checking system. Such a decision shall not affect the entry into free circula-
tion of the product in question into the Community.

5. In conclusion, I have the honour to propose that if this letter, the Annex and the Appendices thereto
are acceptable to your Government, this letter and your confirmation shall together constitute an agree-
ment between the European Community and Kazakhstan, which shall enter into force on the date of
your reply.

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

On behalf of the European Community

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B. Letter from the Government of the Republic of Kazakhstan

Sir,

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

‘1. I have the honour to refer to the Agreement between the European Coal and Steel Community and
the Government of the Republic of Kazakhstan on trade in certain steel products concluded on
22 July 2002. Furthermore, consultations took place with regard to problems concerning certain
steel products which fall outside the scope of the abovementioned Agreement.

2. Following these consultations the Parties hereby agree to establish a double-checking system,
without quantitative limits, in respect of certain steel products in order to improve transparency
and to avoid possible diversions of trade. The details of the double-checking system are annexed to
this letter.

3. This Exchange of Letters is without prejudice to the application of the relevant provisions of the
bilateral agreements on trade and trade-related matters, in particular those relating to anti-dumping
and safeguard measures.

4. Either Party may at any time propose amendments to the Annex or the Appendices thereto, which
shall require the mutual consent of the Parties and shall take effect as agreed by them. Should anti-
dumping or safeguard investigations be initiated or measures introduced in the European Com-
munity concerning a product under the double-checking system, Kazakhstan will decide whether to
exclude the product in question from the double-checking system. Such a decision shall not affect
the entry into free circulation of the product in question into the Community.

5. In conclusion, I have the honour to propose that if this letter, the Annex and the Appendices
thereto are acceptable to your Government, this letter and your confirmation shall together consti-
tute an agreement between the European Community and Kazakhstan, which shall enter into force
on the date of your reply.’

I have the honour to confirm that the above is acceptable to my Government and that your letter, this
reply and the attached Annex and Appendices together constitute an agreement, in accordance with your
proposal.

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

For the Government of the Republic of Kazakhstan

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ANNEX

1.1. For the period running from the date on which this Agreement is applied between the Parties to 31 December
2004, unless both Parties agree to terminate the system earlier, imports into the Community of the products listed
in Appendix I originating in Kazakhstan shall be subject to the presentation of a surveillance document conforming
to the model shown in Appendix II issued by the authorities in the Community.

1.2. For the period running from the date on which this Agreement is applied to 31 December 2004, unless both
Parties agree to terminate the system earlier, imports into the Community of the products listed in Appendix I and
which originate in Kazakhstan shall, in addition, be subject to the issue of an export document by the competent
Kazakhstan authorities. The importer must present the original of the export document not later than 31 March of
the year following that in which the goods covered by the document were shipped.

1.3. Shipment is considered to have taken place on the date of loading on to the exporting means of transport.

1.4. The export document shall conform to the model shown in Appendix III. It shall be valid for exports throughout

the customs territory of the Community.

1.5. Kazakhstan shall notify the Commission of the European Communities of the names and addresses of the appro-
priate Kazakhstan governmental authorities which are authorised to issue and verify export documents together
with specimens of the stamps and signatures they use. Kazakhstan shall also notify the Commission of any change
in these particulars.

1.6. The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature of
the Community (hereinafter called CN). The origin of the products covered by this Agreement shall be determined
in accordance with the rules in force in the Community.

1.7. The competent authorities of the Community undertake to inform Kazakhstan of any changes in the CN in respect

of products covered by this Agreement before their date of entry into force in the Community.

1.8. Certain technical provisions on the implementation of the double-checking system are set out in Appendix IV.

2.1. Kazakhstan undertakes to supply the Community with precise statistical information on the export documents
issued by the Kazakhstan authorities pursuant to 1.2. Such information shall be transmitted to the Community by
the end of the month following the month to which the statistics relate.

2.2. The Community undertakes to supply the Kazakhstan authorities with precise statistical information on surveillance
documents issued by Member States in respect of the export documents issued by the Kazakhstan authorities
pursuant to 1.1. Such information shall be transmitted to the Kazakhstan authorities by the end of the month
following the month to which the statistics relate.

3.

If necessary, at the request of either of the Parties, consultations shall be held on any problems arising from the
operation of this Agreement. Such consultations shall be held promptly. Any consultations held under this para-
graph shall be approached by both Parties in a spirit of cooperation and with a desire to reconcile the difference
between them.

4. Any notices to be given hereunder shall be given:

— in respect of the Community, to the Commission of the European Communities,

— in respect of Kazakhstan, to the Mission of the Republic of Kazakhstan to the European Communities.

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Appendix I

List of products subject to double-checking without quantitative limits

KAZAKHSTAN

ex 7211 23 30 (TARIC code 7211 23 30 99)

ex 7211 23 80 (TARIC code 7211 23 80 99)

ex 7211 29 00 (TARIC code 7211 29 00 91)

ex 7211 29 00 (TARIC code 7211 29 00 99)

ex 7211 90 00 (TARIC code 7211 90 00 90)

ex 7211 23 20 (TARIC code 7211 23 20 90)

ex 7225 19 10 (TARIC code 7225 19 10 00)

ex 7225 19 90 (TARIC code 7225 19 90 00)

ex 7226 19 10 (TARIC code 7226 19 10 00)

ex 7226 19 80 (TARIC code 7226 19 80 10)

ex 7226 19 80 (TARIC code 7226 19 80 90)

ex 7226 11 00 (TARIC code 7226 11 00 90)

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Appendix II

EUROPEAN COMMUNITY SURVEILLANCE DOCUMENT

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EUROPEAN COMMUNITY SURVEILLANCE DOCUMENT

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Appendix III

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Appendix IV

KAZAKHSTAN

Technical provisions on the implementation of the double-checking system

1. The export documents shall measure 210 × 297 mm. The paper used shall be white writing paper, sized, not
containing mechanical pulp, and weighing not less than 25 g/m2. They shall be made out in English. If they are
completed by hand, entries must be in ink and in printed script. These documents may comprise additional copies
duly indicated as such. If the documents have several copies only the top copy is the original. This copy shall be
clearly marked as ‘original’ and other copies as ‘copies’. Only the original shall be accepted by the competent authori-
ties of the Community as being valid for the control of export to the Community in accordance with the provisions
of the double-checking system.

2. Each document shall bear a standardised serial number, whether or not printed, by which it can be identified. This

number shall be composed of the following elements:

— two letters identifying the exporting country as follows: KZ = Kazakhstan,

— two letters identifying the intended Member State of customs clearance as follows:

BE = Belgium

DK = Denmark

DE = Germany

EL = Greece

ES = Spain

FR = France

IE

= Ireland

IT = Italy

LU = Luxembourg

NL = Netherlands

AT = Austria

PT = Portugal

FI

= Finland

SE = Sweden

GB = United Kingdom

CZ = Czech Republic (*)

EE = Estonia (*)

CY = Cyprus (*)

LV = Latvia (*)

LT = Lithuania (*)

HU = Hungary (*)

MT = Malta (*)

PL = Poland (*)

SI

= Slovenia (*)

SK = Slovak Republic (*)

— a one-digit number identifying the year, corresponding to the last figure in the respective year, e.g.‘4’ for 2004,

— a two-digit number from 01 to 99, identifying the particular issuing office concerned in the exporting country,

— a five-digit number running consecutively from 00001 to 99 999 allocated to the intended Member State of

customs clearance.

(*) These references of these Member States and the associated codes shall apply as of their accession to the European community.

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3. The export documents shall be valid for the calendar year during which they are issued, as shown in Box No 3 of the

export document.

4. Since the importer needs to present the original export document when requesting an import document, export
documents should, as far as possible, be issued in respect of individual commercial transactions, not global contracts.

5. Kazakhstan need not show price information on the export document, but that information is available to the

Commission authorities on request.

6. Export documents may be issued after the shipment of the products to which they relate. In such cases they must

bear the endorsement ‘issued retrospectively’.

7. In the event of a theft, loss or destruction of an export document, the exporter may apply to the competent govern-
mental authority which issued the document for a duplicate to be made out on the basis of the export documents in
his possession. The duplicate of any such document so issued shall bear the endorsement ‘duplicate’. The duplicate
shall bear the date of the original export document.

8. The competent authorities of the Community shall be informed immediately of the withdrawal or modification of

any export documents already issued and, where relevant, of the basis for such action.