Proposal for a Council Decision on the conclusion of an agreement between the European Community and the Government of Ukraine on trade in certain steel products
Date: 2004-09-27
Institutions: European Commission
Subjects: Ukraine, certificate of origin, customs regulations, export licence, import policy, iron and steel product, quantitative restriction, ratification of an agreement, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.9.2004 
COM(2004) 613 final 

2004/0212 (ACC) 

. 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and 
the Government of Ukraine on trade in certain steel products 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The Community’s Partnership and Cooperation Agreement with Ukraine provides that trade 
in certain steel products must be the subject of an Agreement between the Parties. 

An  agreement  on  trade  between  the  EC  and  Ukraine  in  certain  steel  products  covered  the 
period  July  1997  to  31  December,  2001.  By  its  Decision  of  19.11.2001,  the  Council 
authorised  the  Commission  to  negotiate  a  new  Agreement  for  the  period  2002-2004. 
Negotiations  have  been  completed  successfully  leading  to  the  initialling  of  the  new 
Agreement on 22 June 2004. 

This new Agreement sets quantitative limits for imports into the Community of certain steel 
products and will apply from the date of entry into force until 31.12.2004.  

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2004/0212 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and 
the Government of Ukraine on trade in certain steel products 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133, in conjunction with Article 300(2) thereof, 

Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

(3) 

The  Partnership  and  Cooperation  Agreement  establishing  a  partnership  between  the 
European Communities and their Member States, of the one part, and Ukraine, of the 
other part 2, entered into force on 1 March 1998. 

Article  22(1)  of  the  Partnership  and  Cooperation  Agreement  provides  that  trade  in 
certain steel products shall be governed by Title III, save for Article 14 thereof, and by 
the provisions of an Agreement. 

For the years 1995-2001, trade in certain steel products was the subject of agreements 
between  the  Parties,  and  in  2002,  2003  and  2004  of  specific  arrangements.  It  is 
therefore  appropriate  to  replace  these  as  far  as  2004  is  concerned  with  a  further 
agreement  which  takes  account  of  developments  in  the  relationship  between 
the Parties, 

HAS DECIDED AS FOLLOWS:  

Article 1 

1. 

The Agreement between the European Community and the Government of Ukraine 
concerning  trade  in  certain  steel  products  is  hereby  approved  on  behalf  of  the 
Community. 

2. 

The text of the Agreement3 is attached to this Decision. 

1 
2 
3 

OJ C […], […], p. […]. 
OJ L 49, 19.2.1998, p. 3. 
See page […] of this Official Journal. 

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The President of the Council is hereby authorised to designate the persons empowered to sign 
the Agreement referred to in Article 1 in order to bind the Community. 

Article 2 

Done at Brussels, […] 

For the Council 
The President 

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ANNEX 

AGREEMENT 

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

THE EUROPEAN COMMUNITY, hereinafter referred to as “the Community”, 

of the one part, and 

THE GOVERNMENT OF UKRAINE, 

of the other part, 

together referred to as “the Parties”, 

Whereas the Partnership and Cooperation Agreement establishing a partnership between the 
European  Communities  and  their  Member  States,  of  the  one  part,  and  Ukraine,  of  the  other 
part, entered into force on 1 March 1998; 

Desirous  to  promote  the  orderly  and  equitable  development  of  trade  in  steel  between  the 
Community and Ukraine; 

Whereas Article 22(1) of the Partnership and Cooperation Agreement provides that trade in 
certain steel products  shall  be  governed  by Title III,  save  for Article 14 thereof,  and  by the 
provisions of an Agreement; 

Bearing in mind the process of accession of Ukraine to the World Trade Organisation (WTO) 
and  the  Community’s  support  for  the  integration  of  Ukraine  into  the  international  trading 
system;  

Whereas for the years 1995-2001 trade in certain steel products was the subject of agreements 
between  the  Parties,  and  in  2002,  2003  and  2004  of  specific  arrangements.  It  is  therefore 
appropriate to replace these as far as 2004 is concerned with a further agreement which takes 
account of developments in the relationship between the Parties;  

Whereas  the  Parties  reiterate  their  commitment  to  achieve  as  soon  as  the  conditions  are 
fulfilled  complete  liberalisation  of  trade  in  respect  of  the  steel  products  covered  by  this 
Agreement; 

Whereas  this  Agreement  should  be  accompanied  by  cooperation  between  the  Parties  in 
respect  of  their  steel  industries,  including  appropriate  exchanges  of  information,  within  a 
contact group on coal and steel as foreseen in Article 22.2 to the Partnership and Cooperation 
Agreement, 

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HAVE AGREED AS FOLLOWS: 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

Article 1 

This  agreement  applies  to  trade  in  the  steel  products  set  out  in  Annex  I  to  this 
Agreement originating within the Parties. 

Trade  in  steel  products  not  set  out  in  Annex  I  shall  not  be  subject  to  quantitative 
limits  and  shall  be  governed  by  the  relevant  provisions  of  the  Partnership  and 
Cooperation Agreement, in particular those relating to anti-dumping procedures and 
safeguard measures. 

In the case of a subject matter which is not covered by this Agreement, the relevant 
provisions of the Partnership and Cooperation Agreement shall apply. 

Article 2 

The Parties agree to establish and maintain for the period of validity of the present 
Agreement  quantitative  arrangements  fixing  the  limits  set  out  in  Annex  II  of  this 
Agreement on Ukrainian exports to the Community of the products set out in Annex 
I. Such exports shall be subject to a double-checking system as specified in Protocol 
A of this Agreement (hereinafter referred to as Protocol A) . 

The Parties reiterate their commitment to achieve complete liberalisation of trade in 
respect of the steel products set out in Annex I as soon as the conditions have been 
established. 

For  the  product  groups  included  in  Annex  I,  quantities  covered  by  imports 
authorisations  issued  by  the  Community,  on  the  basis  of  the  Council  Decision 
2003/893/EC of 15 December 2003, as from 1 January 2004 until the entry into force 
of this Agreement, will be deducted from the quantitative limits set out in Annex II. 

Imports  of  quantities  in  excess  of  those  mentioned  in  Annex  II  shall  be  authorised 
where the Community industry is unable to meet the internal demand and results in a 
shortage  of  supply  for  one  or  more  products  listed  in  Annex  I.  Consultations  shall 
take  place  immediately  at  the  request  of  either  Party  to  determine  the  level  of  the 
shortage. Following the conclusions of the consultations and on the basis of objective 
evidence,  the  Community  shall  instigate  its  internal  procedures  to  increase  the 
quantities set out in Annex II. 

5. 

Each Party may, at any time, request consultations concerning : 

– 

– 

the levels of the quantitative limits set out in Annex II, where the conditions in 
respect of the products covered by Annex I  have  substantially  deteriorated or 
improved; 

the possibility of transferring unused amounts set out in Annex II from under-
utilised product groups to other groups. 

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Article 3 

1. 

2. 

Imports  into  the  customs  territory  of  the  Community  for  free  circulation  of  the 
products  set  out  in  Annex  I  shall  be  subject  to  the  production  of  an  export  licence 
issued  by  the  authorities  of  Ukraine  and  to  proof  of  origin  in  accordance  with  the 
provisions of Protocol A. 

Imports into the customs territory of the Community of the products set out in Annex 
I shall not be subject to the quantitative limits set out in Annex II provided they are 
declared  to  be  for  re-export  outside  the  Community  in  the  same  state  or  after 
processing,  within  the  administrative  system  of  control  which  exists  within  the 
Community. 

1. 

With a view to rendering the double-checking system as effective as possible and to 
minimize the possibilities for abuse and circumvention: 

Article 4 

– 

– 

the Community authorities shall inform the Ukrainian authorities by the 28th of 
each month of the import authorizations issued during the preceding month; 

the  Ukrainian  authorities  shall  inform  the  Community  by  the  28th  of  each 
month of the export licences issued during the preceding month. 

In  the  event  of  any  significant  discrepancy  taking  account  of  the  time  factors 
involved in respect of such information either Party may request consultations which 
shall be opened immediately. 

Without  prejudice  to  paragraph  1  and  with  a  view  to  ensuring  the  effective 
functioning  of  this  Agreement,  the  Parties  agree  to  take  all  necessary  steps  to 
prevent,  to  investigate  and  to  take  any  necessary  legal  and/or  administration  action 
against  circumvention,  notably  by  transhipment,  re-routing,  false  declaration 
concerning  the  country  or  place  of  origin,  falsification  of  documents,  false 
declaration  concerning  quantities,  description  or  classification  of  merchandise. 
Accordingly,  the  Parties  agree  to  establish  the  necessary  legal  provisions  and 
administrative  procedures  permitting  effective  action  to  be  taken  against  such 
circumvention,  which  shall  include  the  adoption  of  legally  binding  corrective 
measures against exporters and/or importers involved.  

Should either Party believe on the basis of information available that this Agreement 
is being circumvented, it may request consultations with the other Party which shall 
be held immediately. 

Pending the results of the consultations referred to in paragraph 3, the Government of 
Ukraine  shall,  as  a  precautionary  measure,  and  if  so  requested  by  the  Community, 
that,  where  sufficient  evidence  of 
take  all  necessary  measures 
circumvention is provided, adjustments of the quantitative limits liable to be agreed 
following  the  consultations  referred  to  in  paragraph  3,  shall  be  carried  out  for  the 
calendar year in which the request for consultations under paragraph 3 was made, or 
for the following year, if the limit for that calendar year is exhausted. 

to  ensure 

2. 

3. 

4. 

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5. 

6. 

7. 

1.  

2. 

3. 

4. 

1. 

Should  the  Parties  be  unable  in  the  course  of  the  consultations  referred  to  in 
paragraph 3 to reach a mutually satisfactory solution, the Community shall have the 
right, where there is sufficient evidence that products set out in Annex I originating 
in  Ukraine  have  been  imported  in  circumvention  of  this  Agreement,  to  set  off  the 
relevant quantities against the quantitative limits established under Annex II.  

Should  the  Parties  be  unable  in  the  course  of  the  consultations  referred  to  in 
paragraph 3 to reach a mutually satisfactory solution, the Community shall have the 
right,  where  sufficient  evidence  shows  false  declaration  concerning  quantities 
description  or  classification  has  occurred,  to  refuse  to  import  the  products  in 
question. 

The Parties agree to cooperate fully to prevent and to address effectively all problems 
arising from circumvention of this Agreement. 

Article 5 

The quantitative limits established under this Agreement on imports of steel products 
set out in Annex I into the Community shall not be broken down by the Community 
into regional shares. 

The  Parties  shall  cooperate  in  order  to  prevent  sudden  and  prejudicial  changes  in 
traditional trade flows into the Community. Should a sudden and prejudicial change 
in  traditional  trade  flows  arise  (including  regional  concentration  or  the  loss  of 
traditional  customers),  the  Community  will  be  entitled  to  request  consultations  in 
order to find a satisfactory solution to the problem. Such consultations shall be held 
immediately. 

Ukraine shall endeavour to ensure that exports into the Community of products set 
out in Annex I are spaced out as evenly as possible over the year. Should a sudden 
and  prejudicial  surge  of  imports  arise,  the  Community  will  be  entitled  to  request 
consultations  in  order  to  find  a  satisfactory  solution  to  the  problem.  Such 
consultations shall be held immediately. 

In addition to the obligation contained in paragraph 3, and without prejudice to the 
consultations  foreseen  by  Article  2  (7),  where  licences  issued  by  the  Ukrainian 
authorities  have  reached  90%  of  the  quantitative  limits,  either  Party  may  request 
consultations. Such consultations shall be held immediately. Pending the outcome of 
such consultations the Ukrainian authorities may continue to issue export licences for 
the products set out in Annex I provided they do not exceed the quantities set out in 
Annex II. 

Article 6 

Where  any product  set  out  in  Annex I is being imported into the Community from 
Ukraine under such conditions as to cause or threaten to cause substantial injury to 
Community producers of like products, the Community shall supply Ukraine with all 
relevant information with a view to seeking a solution acceptable to both Parties. The 
Parties shall commence consultations promptly. 

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2. 

3. 

1. 

2. 

1. 

2. 

1. 

2. 

Should  the  consultations  referred  to  in  paragraph  1  above  fail  to  lead  to  agreement 
within  30  days  of  the  Community's  request  for  consultations,  the  Community  may 
utilise  the  right  to  take  action  concerning  safeguard  measures  pursuant  to  the 
provisions of the Partnership and Cooperation Agreement.  

Notwithstanding the provisions of this Agreement, the provisions of Article 19 of the 
Partnership and Cooperation Agreement shall apply. 

Article 7 

The  classification  of  the  products  covered  by  this  Agreement  is  based  on  the  tariff 
and  statistical  nomenclature  of  the  Community  (hereinafter  called  the  “combined 
nomenclature”,  or  in  abbreviated  form  “CN”).  Any  amendment  to  the  combined 
nomenclature  made  in  accordance  with  the  procedures  in  force  in  the  Community 
concerning  the  products  set  out  in  Annex  I  or  any  decision  relating  to  the 
classification of goods shall not have the effect of reducing the quantitative limits of 
the products set out Annex II. 

The  origin  of  the  products  covered  by  this  Agreement  shall  be  determined  in 
accordance with the rules in force in the Community. Any amendment to these rules 
of origin shall be communicated to the Government of Ukraine and shall not have the 
effect  of  reducing  the  quantitative  limits  of  this  Agreement.  The  procedures  for 
control of the origin of the products referred to above are laid down in Protocol A. 

Article 8 

Without  prejudice  to  the  periodic  exchange  of  information  on  export  licences  and 
import  authorizations  pursuant  to  Article  4  (1),  the  Parties  agree  to  exchange 
available statistical information relating to trade in the products set out in Annex I at 
appropriate intervals, taking account of the shortest periods in which the information 
in question is prepared, which shall cover export licences and import authorizations 
issued pursuant to Article 3 and import and export statistics in respect of the products 
in question. 

Either  Party  may  request  consultations  in  the  event  of  any  significant  discrepancy 
between the information exchanged.  

Article 9 

Without  prejudice  to  provisions  concerning  consultations  foreseen  in  respect  of 
specific  circumstances  in  preceding  Articles,  consultations  shall  be  held  on  any 
problems  arising  from  the  application  of  this  Agreement  at  the  request  of  either 
Party. Any consultations shall take place in a spirit of cooperation and with a desire 
to reconcile the differences between the Parties. 

Where  this  Agreement  provides  that  consultations  shall  be  held  immediately,  the 
Parties undertake to use all reasonable means to ensure that this is achieved. 

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3. 

All other consultations shall be governed by the following provisions: 

– 

– 

– 

– 

any request for consultations shall be notified in writing to the other Party, 

where appropriate, the request shall be followed within a reasonable period by 
a report setting out the reasons for the consultations, 

consultations  shall  begin  within  one  month  from  the  date  of  receipt  of  the 
request, 

consultations  shall  endeavour  to  arrive  at  a  mutually  acceptable  result  within 
one month of their commencement, unless the period is extended by agreement 
between the Parties. 

Article 10 

1. 

2. 

3. 

4. 

This  Agreement  shall  enter  into  force  on  the  date  of  its  signature.  It  shall  be 
applicable until 31 December 2004 subject to any modifications agreed by the Parties 
and unless it is denounced in accordance with the provisions of paragraph 3 of this 
Article. 

Either  Party  may  at  any  time  propose  modifications  to  this  Agreement  which  shall 
require the mutual consent of the Parties and take effect as agreed by them. 

Either Party may denounce this Agreement, provided that at least six months' notice 
is  given.  In  that  event,  the  Agreement  shall  come  to  an  end  on  the  expiry  of  the 
period of notice and the limits established by this Agreement shall be reduced on a 
pro  rata  basis  up  to  the  date  on  which  denunciation  takes  effect  unless  the  Parties 
decide otherwise by common agreement. 

Annexes  I  and  II,  declarations  1,  2,  3  and  4,  the  agreed  minute  and  Protocol  A 
attached to this Agreement shall form an integral part thereof.  

Article 11 

This  Agreement  shall  be  drawn  up  in  duplicate  in  the  Czech,  Danish,  Dutch,  English, 
Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, 
Polish,  Portuguese,  Slovak,  Slovenian,  Spanish,  Swedish  and  Ukrainian  languages,  each  of 
these texts being equally authentic. 

Done at Brussels, […] 

For the European Community 

For the Government of Ukraine 

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ANNEX I 

SA Flat-rolled products 

SA1. (coils) 

7208 10 00 00 
7208 25 00 00 
7208 26 00 00 
7208 27 00 00 

7208 36 00 00 
7208 37 00 10 
7208 37 00 90 
7208 38 00 10 
7208 38 00 90 
7208 39 00 10 
7208 39 00 90 

7211 14 00 10 
7211 19 00 10 

7219 11 00 00 

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

7225 20 00 10 
7225 30 10 00 
7225 30 90 00 

SA2. 
Plate) 

(heavy 

7208 40 00 10 
7208 51 20 10 
7208 51 20 91 
7208 51 20 93 
7208 51 20 97 
7208 51 20 98 
7208 51 91 10 
7208 51 91 90 

7208 51 98 10 
7208 51 98 91 

7208 51 98 99 
7208 52 20 10 
7208 52 20 90 
7208 52 80 10 
7208 52 80 90 

7208 53 00 10 

7211 13 00 00 

7225 40 12 10 
7225 40 12 20 
7225 40 40 10 
7225 40 40 90 
7225 40 60 00 
7225 99 00 10 

SA3.  (other  flat 
rolled products) 

7208 40 00 90 
7208 53 00 90 
7208 54 00 10 
7208 54 00 90 
7208 90 00 10 

7209 15 00 00 

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

7209 28 10 00 
7209 28 90 00 

7209 90 00 10 

7210 11 00 10 
7210 12 20 10 
7210 12 80 10 

7210 20 00 10 
7210 30 00 10 
7210 41 00 10 
7210 49 00 10 
7210 50 00 10 
7210 61 00 10 
7210 69 00 10 
7210 70 10 10 
7210 70 80 10 
7210 90 30 10 
7210 90 40 10 
7210 90 80 91 

7211 14 00 90 
7211 19 00 90 
7211 23 20 10 
7211 23 30 10 
7211 23 30 91 
7211 23 80 10 
7211 23 80 91 
7211 29 00 10 
7211 90 00 11 

7212 10 10 00 

7209 17 90 00 

7212 10 90 11 

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

7212 20 00 11 
7212 30 00 11 
7212 40 20 10 
7212 40 20 91 
7212 40 80 11 
7212 50 20 11 
7212 50 30 11 
7212 50 40 11 

7212 50 61 11 
7212 50 69 11 

7212 50 90 15 
7212 50 90 17 
7212 60 00 11 
7212 60 00 91 

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

7219 33 90 10 
7219 33 90 90 
7219 34 10 00 
7219 34 90 10 
7219 34 90 90 
7219 35 10 00 
7219 35 90 10 
7219 35 90 90 

7225 40 12 90 
7225 40 90 00 

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SB Longs  

SB1. (beams) 

7207 19 80 10 
7207 20 80 10 

7216 31 10 10 
7216 31 10 90 

7216 31 90 10 
7216 31 90 90 
7216 32 11 00 
7216 32 19 00 
7216 32 91 00 
7216 32 99 00 
7216 33 10 00 
7216 33 90 00 

SB2. (wire rod) 

7213 10 00 00 
7213 20 00 00 
7213 91 10 00 
7213 91 20 00 
7213 91 41 00 
7213 91 49 00 
7213 91 70 00 
7213 91 90 00 
7213 99 10 00 
7213 99 90 00 

7221 00 10 00 
7221 00 90 00 

7227 10 00 00 
7227 20 00 00 
7227 90 10 00 
7227 90 50 00 
7227 90 95 00 

SB3. 
longs) 

(other 

7222 11 11 00 

7207 19 12 10 
7207 19 12 91 
7207 19 12 99 
7207 20 52 10 
7207 20 52 91 

7207 20 52 99 

7214 20 00 00 
7214 30 00 00 
7214 91 10 00 
7214 91 90 00 
7214 99 10 00 
7214 99 31 00 
7214 99 39 00 
7214 99 50 00 
7214 99 71 00 

7214 99 79 00 

7214 99 95 00 

7215 90 00 10 

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

7216 50 91 00 
7216 50 99 00 
7216 99 00 10 

7222 11 19 00 

7222 11 81 00 
7222 11 89 00 

7222 19 10 00 

7222 19 90 00 
7222 30 97 10 
7222 40 10 00 
7222 40 90 10 

7224 90 02 95 
7224 90 31 00 
7224 90 38 00 
7228 10 20 10 
7228 10 20 90 
7228 20 10 10 
7228 20 10 91 
7228 20 91 10 
7228 20 91 90 
7228 30 20 00 
7228 30 41 00 
7228 30 49 00 
7228 30 61 00 
7228 30 69 00 
7228 30 70 00 
7228 30 89 00 
7228 60 20 10 
7228 60 80 10 
7228 70 10 00 

7228 70 90 10 
7228 80 00 10 
7228 80 00 90 

7218 99 20 00 

7301 10 00 00 

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ANNEX II 

QUANTITATIVE LIMITS 

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 

(tonnes) 
2004 

  80 007 

  230 879 

  66 608 

  13 481 

  93 679 

  122 170 

Note:  SA and SB are the «categories» 

SA1, SA2, SA3, SB1, SB2 and SB3 are the «product groups» 

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Agreed minute 

In the context of the Agreement between the European Community and Ukraine on trade in 
certain steel products signed in ............……………………, on ...............……….., the Parties 
agree that: 

-  in  pursuance  of  the  exchange  of  information  foreseen  in  Article  4  (1)  concerning  export 
licences and import authorisations the parties will supply that information by reference to the 
Member States in addition to the Community as a whole, 

-  pending  the  satisfactory  outcome  of  the  consultations  foreseen  by  Article  5  (2),  the 
Government  of  Ukraine  will  cooperate,  if  so  requested  by  the  Community,  by  not  issuing 
export  licences  that  would  further  aggravate  the  problems  resulting  from  sudden  and 
prejudicial changes in traditional trade flows; and 

- the Government of Ukraine will take due account of the sensitive nature of small regional 
markets  within  the  Community  both  as  regards  their  traditional  needs  for  supplies  and  the 
avoidance of regional concentrations. 

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Declaration N° 1 

In  the  context  of  the  Agreement  between  the European  Community  and  the  Government  of 
Ukraine  on  trade  in  certain  steel  products  signed  in  ....................  on  ....................,  and  more 
particularly  Article  3  thereof,  the  Parties  confirm  their  understanding  that  this  Agreement 
does  not  affect  existing  systems  concerning  the  import  and  duties  in  respect  of  the  steel 
products mentioned in Annex I to the Agreement which are intended for certain categories of 
ships, boats and other vessels and for drilling or production platforms for the purposes of their 
construction, repair, maintenance or conversion and in respect of goods intended for fitting to 
or equipping such ships, boats or other vessels. 

Declaration n°2 

It is the objective of both Parties to liberalise fully the trade of ferrous scrap, and to ensure 
that quantitative restrictions or any measures having equivalent effect on the export of ferrous 
scrap and waste under the EC Combined Nomenclature heading 7204, such as customs duties 
or  charges,  are  eliminated.  However,  Ukraine  is  not  able  currently  to  fully  implement  this 
objective  and  is  applying  a  tax  on  the  exports  of  ferrous  scrap  of  €  30  per  tonne.  The 
quantitative limits set out in Annex II of this Agreement take into account that tax. 

As a first step, the Ukraine is committed not to increase this tax. If Ukraine were to reduce or 
remove the tax for the exports of ferrous scrap on an erga omnes basis, then those quantitative 
limits would be revised as follows: 

if the tax would be reduced to € 25/tonne, the quantitative limits would be increased 

a) 
by 70.000 tonnes; 

if the tax would be reduced to € 20/tonne, the quantitative limits would be increased 

b) 
by 130.000 tonnes 

if the tax would be reduced to € 15/tonne, the quantitative limits would be increased 

c) 
by 180.000 tonnes 

if the tax would be reduced to € 10/tonne, the quantitative limits would be increased 

d) 
by 220.000 tonnes 

if the tax would be reduced to € 5/tonne, the quantitative limits would be increased by 

e) 
250.000 tonnes 

if  the  tax  would  be  totally  eliminated,  the  quantitative  limits  would  be  increased  by 

f) 
260.000 tonnes 

The increases referred to above are understood to cover the year 2004. If the reduction of the 
tax is implemented during the course of this year, then the increases referred therein will be 
adjusted prorata. 

The  Parties  agree  that  any  modification  of  the  quantities  set  out  in  Annex  II  resulting  from 
this  Declaration  will  take  place  by  agreement  between  the  European  Commission  and  the 
competent Ukrainian authorities. 

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Declaration N° 3 

Both Parties aim at achieving complete liberalisation of trade in steel products. In this context, 
both  Parties  intend  to  terminate  quantitative  restrictions  once  Ukraine  becomes  a  WTO 
member.  They  also  recognize  that  it  is  an  important  condition  for  promoting  trade  between 
them  that  competition,  state  aid  and  environment  provisions  applicable  within  each  Party 
must be compatible. To this end, and upon request from Ukraine authorities, the Community 
shall provide technical assistance within available budgetary means to help Ukraine to adopt 
and  implement  legislative  provisions  compatible  with  those  adopted  and  applied  by  the 
Community.  Such  assistance  shall  be  specified  in  projects  to  be  agreed  by  both  Parties  and 
identifying clearly, inter alia, the objectives, the means and the calendar. 

Declaration N° 4 

In  the  case  Ukrainian  operators  were  to  set  up  service  centres  in  the  EU  that  would  further 
process  products  imported  from  Ukraine  and  covered  by  this  Agreement,  Ukraine  declares 
that it could request an increase of quantitative limits mentioned in Annex II. In this case, the 
Commission could examine such request of increase if the market situation allows it and will 
respond to Ukraine within 60 days. 

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PROTOCOL A 

TITLE I 

CLASSIFICATION 

Article 1 

1. The competent authorities of the Community undertake to inform Ukraine of any changes 
in the combined nomenclature (CN) in respect of products covered by the Agreement before 
the date of their entry into force in the Community. 

2. The competent authorities of the Community undertake to inform the competent authorities 
of  Ukraine  of  any  decisions  relating  to  the  classification  of  products  covered  by  the 
Agreement within one month of their adoption at the latest. 

Such a description shall include: 

(a) a description of the products concerned, 

(b) the relevant CN codes, 

(c) the reasons which have led to the decision. 

3.  Where  a  decision  on  classification  results  in  a  change  of  classification  practice  of  any 
product covered by the Agreement, the competent authorities of the Community shall provide 
30 days' notice, from the date of the Community's communication, before the decision is put 
into effect. Products shipped before the date of entry into effect of the decision shall remain 
subject to the earlier classification practice, provided that the goods in question are presented 
for importation into the Community within 60 day's of that date. 

4.  Where  a  Community  decision  on  classification  resulting  in  a  change  of  classification 
practice  of  any  product  covered  by  the  Agreement  affects  a  category  subject  to  quantitative 
limits,  the  Parties  agree  to  enter  into  consultations  in  accordance  with  the  procedures 
described in Article 9 (3) of the Agreement with a view to honouring the obligation contained 
in Article 7 (1) of the Agreement. 

5.  In  case  of  divergent  opinions  between  the  competent  authorities  of  Ukraine  and  the 
Community at the point of entry into the Community on the classification of products covered 
by the Agreement, classification shall provisionally be based on indications provided by the 
Community,  pending  consultations  in  accordance  with  Article  9  with  a  view  to  reaching 
agreement on the definitive classification of the products concerned. 

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TITLE II 

ORIGIN 

Article 2 

1.  Products  originating  in  Ukraine  according  to  the  Community  Regulations  in  force  for 
export to the Community in accordance with the arrangements established by the Agreement 
shall be accompanied by a certificate of Ukrainian origin conforming to the model annexed to 
this Protocol. 

2.  The  certificate  of  origin  shall  be  certified  by  the  Ukrainian  organisations  authorised  for 
such  purposes  under  Ukrainian  legislation  as  to  whether  the  products  in  question  can  be 
considered as products originating in Ukraine. 

Article 3 

The certificate of origin shall be issued only on application having been made in writing by 
the  exporter  or,  under  the  exporter's  responsibility,  by  his  authorised  representative.  The 
Ukrainian organisations authorised for such purposes under Ukrainian legislation shall ensure 
that the certificate of origin is properly completed and for this purpose they shall call for any 
necessary documentary evidence or carry out any check which they consider appropriate. 

Article 4 

The discovery of slight discrepancies between the statements made in the certificate of origin 
and those made in the documents produced to the customs office for the purpose of carrying 
out  the  formalities  for  importing  the  products  shall  not  ipso  facto  cast  doubt  upon  the 
statements in the certificate. 

TITLE III 

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE 
LIMITS 

SECTION I 

Exportation 

Article 5 

1. The appropriate Ukrainian governmental authorities shall issue an export licence in respect 
of  all  consignments  from  Ukraine  of  steel  products  covered  by  the  Agreement  up  to  the 
quantitative limits set out in Annex II of the Agreement. 

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Article 6 

1. The export licence shall conform to the model annexed to this Protocol and it shall be valid 
for exports throughout the customs territory of the Community. 

2. Each export licence must certify inter alia that the quantity of the product in question has 
been  set  off  against  the  relevant  quantitative  limit  established  for  the  product  concerned  in 
Annex II of the Agreement. 

The  competent  authorities  of  the  Community  must  be  informed  immediately  of  the 
withdrawal or modification of any export licence already issued. 

Article 7 

Article 8 

1. Exports shall be set off against the quantitative limits established for the year in which the 
shipment of goods has been effected even if the export licence is issued after such shipment. 

2. For the purposes of applying paragraph 1, shipment of goods is considered to have taken 
place on the date of their loading onto the exporting transport. 

Article 9 

The presentation of an export licence, in application of Article 11, shall be effected not later 
than 31 March of the year following that in which the goods covered by the licence have been 
shipped. 

SECTION II 

Importation 

Article 10 

1.  For  the  product  groups  included  in  Annex  I  of  this  Agreement,  quantities  covered  by 
import  authorisations  issued  by  the  Community,  on  the  basis  of  the  Council  Decision 
2003/893/EC of 15 December 2003, as from 1 January 2004 until the entry into force of this 
Agreement, will be deducted from the quantitative limits set out in Annex II.  

2. The release for free circulation into the Community of steel products subject to quantitative 
limits shall be subject to the presentation of an import authorisation. 

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Article 11 

1. The competent authorities of the Community shall issue the import authorisation referred to 
in Article 10 paragraph 2 above, within ten working days of the presentation by the importer 
of the original of the corresponding export licence.  

2.  The  import  authorisations  shall  be  valid  for  four  months  from  the  date  of  their  issue  for 
imports throughout the customs territory of the Community. 

3. The competent authorities of the Community shall cancel the import authorisation already 
issued  whenever  the  corresponding  export  licence  has  been  withdrawn.  However,  if  the 
competent authorities of the Community are notified of the withdrawal or the cancellation of 
the  export  licence  only  after  the  release  for  free  circulation  of  the  products  into  the 
Community,  the  relevant  quantities  shall  be  set  off  against  the  limits  established  for  the 
product. 

Article 12 

If the competent authorities of the Community find that the total quantities covered by export 
licences issued by the competent authorities of Ukraine exceed the relevant quantitative limit 
established  for  products  covered  by  Annex  II  of  the  Agreement  the  Community  authorities 
shall suspend the further issue of import authorisations in respect of products covered by the 
quantitative limit in question. In this event, the competent authorities of the Community shall 
immediately  inform  the  authorities  of  Ukraine  and  immediate  consultations  pursuant  to 
Article 9 (2) of the Agreement shall be initiated. 

TITLE IV 

FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, 
AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITY  

Article 13 

1.  The  export  licence  and  the  certificate  of  origin  may  comprise  additional  copies  duly 
indicated as such. They shall be made out in English. If they are completed by hand, entries 
must be in ink and in printed script. 

These documents shall measure 210 x 297 mm. The paper used shall be white writing paper, 
sized, not containing mechanical pulp, and weighing not less than 25 g/m². If the documents 
have  several  copies  only  the  top  copy,  which  is  the  original,  shall  be  printed  with  the 
guilloche pattern background. This copy shall be clearly marked 'original' and the other copies 
'copies'. Only the original shall be accepted by the competent authorities of the Community as 
being valid for the purpose of export to the Community in accordance with the provisions of 
the Agreement. 

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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: UA, 

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

BE  =  Belgium 

CZ  =  Czech Republic 

DK =  Denmark 

DE  =  Germany 

EE  =  Estonia 

EL  =  Greece 

ES  =  Spain 

FR  =  France 

IE  =  Ireland 

IT  =  Italy 

CY  =  Cyprus 

LV  =  Latvia 

LT  =  Lithuania 

LU  =  Luxembourg 

HU =  Hungary 

MT =  Malta 

NL  =  Netherlands 

AT  =  Austria 

PL  =  Poland 

PT  =  Portugal 

SI  =  Slovenia 

SK  =  Slovakia 

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FI  =  Finland 

SE  =  Sweden 

GB  =  United Kingdom; 

-  a  one-digit  number  identifying  the  year  in  question  corresponding  to  the  last  figure  in  the 
year, e.g. “3” for 2003, 

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

-  a  five-digit  number  running  consecutively  from  00001  to  99999  allocated  to  the  intended 
Member State of customs clearance. 

Article 14 

The  export  licence  and  the  certificate  of  origin  may  be  issued  after  the  shipment  of  the 
products  to  which  they  relate.  In  such  cases,  they  must  bear  the  endorsement  'issued 
retrospectively'.  

Article 15 

1. In the event of the theft, loss or destruction of an export licence or a certificate of origin, 
the exporter may apply to the Ukrainian governmental authorities competent to issue licences 
or  to  the  Ukrainian  organisations  authorised  to  issue  certificates  of  origin  under  Ukrainian 
legislation, respectively, for a duplicate to be made out on the basis of the export documents 
in  his  possession.  The  duplicate  of  any  such  certificate  or  licence  so  issued  shall  bear  the 
endorsement 'duplicate'. 

2. The duplicate shall bear the date of the original export licence or certificate of origin. 

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TITLE V 

ADMINISTRATIVE COOPERATION 

Article 16 

The Parties shall cooperate closely in the implementation of the provisions of this Protocol. 
To  this  end,  contacts  and  exchanges  of  views,  including  on  technical  matters,  shall  be 
facilitated by both Parties. 

Article 17 

In  order  to  ensure  the  correct  application  of  this  Protocol,  the  Parties  shall  offer  mutual 
assistance  for  the  checking  of  the  authenticity  and  the  accuracy  of  export  licences  and 
certificates of origin issued or of any declarations made within the terms of this Protocol. 

Article 18 

Ukraine shall send the Commission of the European Communities the names and addresses of 
the  competent  Ukrainian  authorities  which  are  authorised  to  issue  and  to  verify  export 
licences and certificates of origin together with specimens of the stamps and signatures they 
use. Ukraine shall also notify the Commission of any change in this information. 

Article 19 

1.  Subsequent  verification  of  certificates  of  origin  or  export  licences  shall  be  carried  out  at 
random, or whenever the competent Community authorities have reasonable doubt as to the 
authenticity of the certificate or licence or as to the accuracy of the information regarding the 
true origin of the products in question. 

2.  In  such  cases,  the  competent  authorities  in  the  Community  shall  return  the  certificate  of 
origin or the export licence or a copy thereof to the appropriate Ukrainian authorities giving, 
where appropriate, the reasons of form or substance which justify an enquiry. If the invoice 
has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the 
licence  or  their  copies.  The  authorities  shall  also  forward  any  information  that  has  been 
obtained suggesting that the particulars given on the said certificate or licence are inaccurate. 

3.  The  provisions  of  paragraph  1  above  shall  also  apply  to  subsequent  verifications  of  the 
certificates of origin provided for in Article 2 of this Protocol. 

4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 
2 above shall be communicated to the competent authorities of the Community within three 
months  at  the  latest.  The  information  communicated  shall  indicate  whether  the  disputed 
certificate,  licence  or  declaration,  applies  to  the  goods  actually  exported  and  whether  these 

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goods  are  eligible  for  export  under  the  arrangements  established  by  the  Agreement.  The 
information  shall  also  include,  at  the  request  of  the  Community,  copies  of  all  the 
documentation necessary to fully determine the facts, and in particular the true origin of the 
goods. 

Should  such  verifications  reveal  systematic  irregularities  in  the  use  of  certificates  of  origin, 
the Community may subject imports of the products in question to the provisions of Article 2 
(1) of this Protocol. 

5. For the purpose of subsequent verification of certificates of origin, copies of the certificates 
as well as any export documents referring to them shall be kept by the appropriate Ukrainian 
authorities for at least one year following the end of the Agreement. 

6. Recourse to the random verification procedure specified in this Article must not constitute 
an obstacle to the release for free circulation of the products in question. 

Article 20 

1. Where the verification procedure referred to in Article 19 or where information available to 
the competent authorities of the Community or of Ukraine indicates or appears to indicate that 
the  provisions  of  the  Agreement  are  being  circumvented  or  infringed,  the  two  Parties  shall 
cooperate  closely  and  with  the  appropriate  urgency  in  order  to  prevent  any  such 
circumvention or infringement. 

2.  To  this  end,  the  appropriate  Ukrainian  authorities  shall,  on  their  own  initiative  or  at  the 
request of the Community, carry out appropriate inquiries, or arrange for such inquiries to be 
carried  out,  concerning  operations  which  are,  or  appear  to  the  Community  to  be,  in 
circumvention  or  infringement  of  this  Protocol.  Ukraine  shall  communicate  the  results  of 
these  inquiries  to  the  Community,  including  any  other  pertinent  information  enabling  the 
cause  of  the  circumvention  or  infringement,  including  the  true  origin  of  the  goods  to  be 
determined. 

3. By agreement between the Parties, officials designated by the Community may be present 
at the inquiries referred to in paragraph 2 above. 

4. In pursuance of the cooperation referred to in paragraph 1 above, the competent authorities 
of the Community and Ukraine shall exchange any information considered by either Party to 
be  of  use  in  preventing  circumvention  or  infringement  of  the  provisions  of  the  Agreement. 
These exchanges may include information on the trade in the type of products covered by the 
Agreement  between  Ukraine  and  third  countries,  particularly  where  the  Community  has 
reasonable  grounds  to  consider  that  the  products  in  question  may  be  in  transit  across  the 
territory  of  Ukraine  prior  to  their  importation  into  the  Community.  This  information  may 
include  at  the  request  of  the  Community  copies  of  all  relevant  documentation,  where 
available. 

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5.  Where  sufficient  evidence  shows  that  the  provisions  of  this  Protocol  have  been 
circumvented  or  infringed,  the  competent  authorities  of  Ukraine  and  the  Community  may 
agree to take any measures as are necessary to prevent a recurrence of such circumvention or 
infringement. 

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1 Exporter (name, full address, country) 

ORIGINAL 

2 

No 

EXPORT LICENCE 

3 Year 

4 Product group 

5 Consignee (name, full address, country) 

EXPORT LICENCE 

(for certain steel products) 

6 Country of origin 

7 Country of destination 

8 Place and date of shipment – means of 
transport 

9 Supplementary details 

10 Description of goods – manufacturer 

11 CN code 

12 Quantity(1) 

13 Fob value(2) 

14 CERTIFICATION BY THE COMPETENT AUTHORITY 

I, the undersigned, certify that the goods described above have been charged against the quantitative limit established for the 
year shown in box No 3 in respect of the Product group shown in box No 4 by the provisions regulating trade in certain steel 
products with the European Community. 

15  Competent  authority 
address, country) 

(name, 

full 

At …………………………………. on ……………………………………… 

(Signature) 

(Stamp) 

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1 Exporter (name, full address, country) 

COPY 

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No 

EXPORT LICENCE 

3 Year 

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5 Consignee (name, full address, country) 

EXPORT LICENCE 

(for certain steel products) 

6 Country of origin 

7 Country of destination 

8 Place and date of shipment – means of 
transport 

9 Supplementary details 

10 Description of goods – manufacturer 

11 CN code 

12 Quantity(1) 

13 Fob value(2) 

14 CERTIFICATION BY THE COMPETENT AUTHORITY 

I, the undersigned, certify that the goods described above have been charged against the quantitative limit established for the 
year shown in box No 3 in respect of the Product group shown in box No 4 by the provisions regulating trade in certain steel 
products with the European Community. 

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CERTIFICATE OF ORIGIN 

1 Exporter (name, full address, country) 

ORIGINAL 

2 

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4 Product group 

No 

5 Consignee (name, full address, country) 

CERTIFICATE OF ORIGIN 

(for certain steel products) 

6 Country of origin 

7 Country of destination 

8 Place and date of shipment – means of 
transport 

9 Supplementary details 

10 Description of goods – manufacturer 

11 CN code 

12 Quantity(1) 

13 Fob value(2) 

14 CERTIFICATION BY THE COMPETENT AUTHORITY 

I, the undersigned, certify that the goods described above originated in the country shown in box No 6, in accordance with the 
provisions in force in the European Community. 

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CERTIFICATE OF ORIGIN 

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No 

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CERTIFICATE OF ORIGIN 

(for certain steel products) 

6 Country of origin 

7 Country of destination 

8 Place and date of shipment – means of 
transport 

9 Supplementary details 

10 Description of goods – manufacturer 

11 CN code 

12 Quantity(1) 

13 Fob value(2) 

14 CERTIFICATION BY THE COMPETENT AUTHORITY 

I, the undersigned, certify that the goods described above originated in the country shown in box No 6, in accordance with the 
provisions in force in the European Community. 

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(name, 

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At …………………………………. on ……………………………………… 

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