Proposal for a Council Decision on the conclusion of an agreement between the European Community and the Russian Federation on trade in certain steel products
Date: 2005-04-06
Institutions: European Commission
Subjects: Russia, iron and steel product, quantitative restriction, ratification of an agreement, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.4.2005 
COM(2005) 129 final 

2005/0024 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and the Russian 
Federation on trade in certain steel products 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  Community’s  Partnership  and  Cooperation  Agreement  (PCA)  with  the  Russian 
Federation provides that trade in certain steel products is governed by an Agreement between 
the Parties. 

An earlier Agreement on trade between the Community and the Russian Federation in certain 
steel products covered the period from July 2002 to 31 December 2004. By its Decision of 2 
November  2004,  the  Council  authorised  the  Commission  to  negotiate  a  new  Agreement  for 
the  period  2005–2006.  Negotiations  have  been  completed  successfully  leading  to  the 
initialling of the new Agreement on 23 December 2004. 

That 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  December  2006  or  until 
Russia’s accession to the WTO, whichever date is earlier. 

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2005/0024 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and the Russian 
Federation 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 Commission 

Whereas: 

(1) 

(2) 

(3) 

The Agreement on partnership and cooperation establishing a partnership between the 
European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Russian 
Federation, of the other part1, hereinafter referred to as “the PCA”, entered into force 
on 1 December 1997. 

Article 21(1) of the PCA provides that trade in certain steel products is governed by 
Title  III  of  that  Agreement  with  the  exception  of  Article  15  thereof,  and  by  the 
provisions of an agreement on quantitative arrangements. 

For the years 1995-2004, trade in certain steel products was the subject of agreements 
between  the  Parties  to  the  PCA.  It  is  therefore  appropriate  to  conclude  a  new 
agreement  which  takes  account  of  the  developments  in  the  relationship  between  the 
Parties. 

(4) 

The Agreement should be approved, 

HAS DECIDED AS FOLLOWS:  

Article 1 

1. 

2. 

The  Agreement  between  the  European  Community  and  the  Russian  Federation  on 
trade in certain steel products is hereby approved on behalf of the Community. 

The text of the Agreement is attached to this Decision. 

1 

OJ L 327, 28.11.1997, p.3 

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The President of the Council is hereby authorised to designate the person(s) empowered to 
sign the Agreement 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 RUSSIAN FEDERATION 
ON TRADE IN CERTAIN STEEL PRODUCTS 

THE EUROPEAN COMMUNITY,  

of the one part, and 

THE RUSSIAN FEDERATION, 

of the other part, 

being the Parties to this Agreement, 

Whereas the Partnership and Cooperation Agreement (hereinafter referred to as the  “PCA”) 
establishing  a  partnership  between  the  European  Communities  and  their  Member  States,  of 
the one part, and the Russian Federation, of the other part1, entered into force on 1 December 
1997; 

Whereas the Parties are desirous to promote the orderly and equitable development of trade in 
steel between the European Community (hereinafter referred to as “the Community”) and the 
Russian Federation (hereinafter referred to as “Russia”); 

Whereas  Article  21  of  the  PCA  provides  that  trade  in  the  steel  products  of  the  former 
European Coal and Steel Community, hereinafter referred to as “ECSC”, shall be governed by 
Title  III,  save  for  Article  15  thereof,  and  by  the  provisions  of  an  agreement;  whereas  this 
Agreement is the agreement referred to in Article 21 of the PCA; 

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

Whereas  for  the  years  1995-2004  trade  in  certain  steel  products  was  the  subject  of 
agreements, which it is appropriate to replace with a further agreement which takes account of 
developments in the relationship between the Parties;  

Whereas  this  Agreement  should  be  accompanied  by  cooperation  between  the  Parties  in 
respect  of  their  steel  industries,  including  appropriate  exchanges  of  information,  within  the 
Contact Group on coal and steel as foreseen in Protocol 1 to the PCA, 

1 

OJ L 327, 28.11.1997, p.3. 

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HAVE AGREED AS FOLLOWS: 

Article 1 

1. This Agreement applies to trade in former ECSC steel products. 

2. Trade in steel products set out in Annex I may be subject to quantitative limits 

3. Trade in steel products not set out in Annex I shall not be subject to quantitative limits. 

4. In the case of steel products and subject matters which are not covered by this Agreement, 
the relevant provisions of the PCA shall apply. 

Article 2 

1.  The  Parties  agree  to  establish  and  maintain  for  the  period  of  validity  of  the  present 
Agreement for each calendar year quantitative arrangements fixing the limits set out in Annex 
II on Russian 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. 

2.  The  Parties  agree  that  imports  into  the  Community  from  Russia  of  products  included  in 
Annex I as from 1 January 2005 until the entry into force of this Agreement shall be deducted 
from the quantitative limits set out in Annex II. 

3. 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 which 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 on the basis of objective 
evidence.  Following  the  conclusions  of  the  consultations,  the  Community  shall  instigate  its 
internal procedures to increase the quantitative limits set out in Annex II. 

4. In the case where countries candidate for membership of the European Union would accede 
before  the  termination  of  this  Agreement,  the  Parties  agree  to  consider  to  increase  the 
quantitative limits set out in Annex II. 

Article 3 

1. Imports into the customs territory of the Community for free circulation of the products set 
out  in  Annex  I  shall  be  subject  to  the  presentation  of  an  import  authorization  issued  by  the 
competent authority of a Member State based on the production of an export licence issued by 
the authorities of Russia, and to proof of origin in accordance with the provisions of Protocol 
A. 

2.  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. 

3. Carry-over to the corresponding quantitative limits for the following calendar year of the 
amounts of quantitative limits not used during the first calendar year is authorized up to 7% of 

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the relevant quantitative limit set out in Annex II for a product group in question for the year 
in which it was  not  used.  Russia shall notify the  Community no later than 31  March of the 
following year if it intends to make use of this provision.  

4. Up to 7% of the quantitative limit for a given product group may be transferred to one or 
more other groups within the same product category, that is to say within category SA or SB, 
subject to the consent of both Parties.. The quantitative limit for a given product group can be 
reduced  once  in  the  course  of  a  calendar  year.  Furthermore,  transfers  between  SA  and  SB 
categories  are  permitted  up  to  a  maximum  of  25000  tonnes.  Any  adjustments  to  the 
quantitative limits resulting from transfers shall only affect the calendar year in progress. At 
the start of the following calendar year, the quantitative limits shall be those shown at Annex 
II, without prejudice to the provisions of paragraph 3. Russia shall notify the Community no 
later than 31 May if it intends to make use of this provision.  

Article 4 

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

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

- the Russian 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. 

to 

take  any  necessary 

2. Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of 
this  Agreement,  the  Community  and  Russia  agree  to  take  all  necessary  steps  to  prevent,  to 
investigate  and 
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 Community and Russia 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.  

3. Should the Community believe on the basis of information available that this Agreement is 
being  circumvented,  the  Community  may  request  consultations  with  Russia  which  shall  be 
held immediately. 

4.  Pending  the  results  of  the  consultations  referred  to  in  paragraph  3,  Russia  shall,  as  a 
precautionary measure, and if so requested by the Community, take all necessary measures to 
ensure  that,  where  sufficient  evidence  of  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. 

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5. 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: 

(a) where there is sufficient evidence that products covered by this Agreement originating in 
Russia  have  been  imported  in  circumvention  of  this  Agreement,  to  set  off  the  relevant 
quantities against the quantitative limits established under the Agreement.  

(b)  where  sufficient  evidence  shows  false  declaration  concerning  quantities  description  or 
classification has occurred, to refuse to import the products in question. 

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

Article 5 

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

2. 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. 

3.  Russia  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. 

4. In addition to the obligation contained in paragraph 3, where licences issued by the Russian 
authorities have reached 90% of the quantitative limits for the calendar year in question, either 
Party  may  request  consultations  concerning  the  quantitative  limits  for  that  year.  Such 
consultations  shall  be  held  immediately.  Pending  the  outcome  of  such  consultations  the 
Russian 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 

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

2. Should the consultations referred to in paragraph 1 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 PCA.  

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3. Notwithstanding the provisions of this Agreement, the provisions of Article 18 of the PCA 
shall apply. 

Article 7 

1.  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 (CN) 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. 

2.  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  Russia  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 

1.  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. 

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

Article 9 

1. Without prejudice to provisions concerning consultations provided for 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. 

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

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 the request, 

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- 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. This Agreement shall enter into force on the day of its signature. It shall remain in force 
until  31  December  2006  subject  to  any  modifications  agreed  by  the  Parties  and  unless  it  is 
denounced or terminated in accordance with, respectively, the provisions of paragraph 3 or 4. 

2. 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. 

3.  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. 

4. In the event that Russia accedes to the WTO before the expiration of this Agreement, the 
Agreement shall be terminated as of the date of accession. 

5.  The  Annexes,  the  agreed  minute,  the  declarations  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  Russian  languages,  each  of 
these texts being equally authentic. 

Done at ............... on ....... 

For the European Community 

For the Russian Federation 

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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 

ANNEX I  

7209 17 90 00 

7212 10 10 00 

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 

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 30 91 

7211 23 80 91 
7211 29 00 10 
7211 90 00 11 

7212 10 90 11 
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 13 

7219 35 10 00 
7219 35 90 00 

7225 40 12 90 
7225 40 90 00 

SA4. Alloyed 
products 

7226 20 00 10 
7226 91 20 00 
7226 91 91 00 

7212 60 00 11 
7212 60 00 91 

7226 91 99 00 
7226 99 00 10 

7219 21 10 00 

7219 21 90 00 
7219 22 10 00 
7219 22 90 00 
7219 23 00 00 

SA5. Alloyed 
quarto plates 

7225 40 12 30 

7225 40 40 00 

7219 24 00 00 
7219 31 00 00 

7225 40 60 00 
7225 99 00 10 

SA6. Alloyed 
cold rolled and 
coated sheets 

7225 50 00 00 
7225 91 00 10 
7225 92 00 10 
7226 92 00 10 

7219 32 10 00 
7219 32 90 00 

7219 33 10 00 
7219 33 90 00 

7219 34 10 00 
7219 34 90 00 

SA2. Heavy 
Plate 

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 91 10 
7208 52 91 90 
7208 52 10 00 
7208 52 99 00 

7208 53 10 00 

7211 13 00 00 

SA3. Other flat 
rolled products 

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

7208 90 00 10 

7209 15 00 00 

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

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7228 80 00 10 
7228 80 00 90 

7301 10 00 00 

SB Long 
products 

SB1. Beams 

7207 19 80 10 
7207 20 80 10 

7216 31 10 10 
7216 31 10 90 
7216 31 90 00 

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. Other 
longs 

7207 19 12 10 
7207 19 12 91 
7207 19 12 99 
7207 20 52 00 

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 10 
7214 99 71 90 
7214 99 79 10 
7214 99 79 90 
7214 99 95 10 
7214 99 95 90 

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 

7218 99 20 00 

7222 11 11 00 
7222 11 19 00 
7222 11 81 10 
7222 11 81 90 
7222 11 89 10 
7222 11 89 90 
7222 19 10 00 
7222 19 90 00 
7222 30 97 10 
7222 40 10 00 
7222 40 90 10 
7224 90 02 89 

7224 90 31 00 
7224 90 38 00 

7228 10 20 00 

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 

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ANNEX II 

QUANTITATIVE LIMITS 

(tonnes) 

Year 2005 

Year 2006 

908 268 

930 975 

190 593 

195 358 

389 741 

399 485 

97 080 

21 509 

99 507 

22 047 

Products 

SA. Flat products 

SA1. Coils 

SA2. Heavy plate 

SA3. Other flat products 

SA4. Alloyed products 

SA 5. Alloyed quarto plates 

SA 6. Alloyed cold-rolled and coated sheets 

100 095 

102 597 

SB. Long products 

SB1. Beams 

SB2. Wire rod 

SB3. Other long products 

44 948 

46 072 

172 676 

176 993 

292 376 

299 685 

Note: 

SA and SB are product categories 
SA1 to SA6 and SB1 to SB3 are product groups 

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Agreed minute N° 1 

In the context of this Agreement, the Parties agree that: 

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

- if the Parties are unable to reach a satisfactory solution during the consultations provided for 
in  Article  5(2),  Russia  will  cooperate,  if  so  requested  by  the  Community,  by  not  issuing 
export  licences  for  an  intended  destination  where  imports  pursuant  to  such  licences  would 
aggravate  the  problems  resulting  from  sudden  and  prejudicial  changes  in  traditional  trade 
flows,  it  being  understood  that  Russia  may  continue  to  issue  licences  for  other  Community 
destinations,  

-  the  Parties  will  cooperate  closely  in  order  to  prevent  sudden  and  prejudicial  changes  in 
traditional  trade  flows  in  respect  of  coils  (product  group  SA1);  Russia  will  give  priority  to 
deliveries  to  its  traditional  customers  for  these  products  in  order  to  avoid  disturbing  the 
Community  market,  and  both  Parties  will  inform  the  other  immediately  in  the  event  of  any 
emerging problems, and 

-  Russia  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 No 1 

In  the  case  Russian  operators  were  to  set  up  service  centers  in  the  Community  that  would 
further process products covered by this Agreement imported from Russia , Russia declares 
that it could request an increase of quantitative limits mentioned in Annex II. In this case, the 
Community will examine such request of increase and the Parties will enter into consultations 
if required.  

Declaration No 2 

The  Parties  declare  that  they  aim  at  achieving  complete  liberalisation  of  trade  in  steel 
products.  Both  Parties  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 Russia, the Community shall 
provide  technical  assistance,  within  relevant  earmarked  budgetary  limits,  to  help  Russia  to 
adopt and implement legislative provisions compatible with those adopted and applied by the 
Community. The technical assistance shall be channelled through detailed projects agreed by 
both Parties. 

Declaration No 3 

The  Parties  agree  that  they  shall  not  apply  with  respect  to  the  other  Party  quantitative 
restrictions,  customs  duties,  charges  or  any  similar  measures  on  the  export  of  ferrous  waste 
and  scrap  under  the  EC  Combined  Nomenclature  heading  7204,  without  prejudice  to  the 
provisions of Article 19 of the PCA. 

Without  prejudice  to  the  previous  paragraph,  Russia  applies  currently  a  tax  on  exports  of 
ferrous waste and scrap under the EC Combined Nomenclature 7204. The tax is currently set 
at 15% but not less than € 15 per tonne for all products of 7204, except for product 7204 41 
00 where the tax is set at 5%.  

The Parties agree to continue the discussion to find a satisfactory solution. Furthermore, it is 
understood  that  the  quantitative  limits  set  out  in  Annex  II  of  the  Agreement  would  be 
increased  by  12%  if  Russia  removes  completely  the  tax  or  by  a  lower  percentage  to  be 
determined if such tax is reduced, provided that  no other measures that  would constitute  an 
obstacle to free export are introduced by Russia. 

The  products  of  particular  interest  for  the  Community  are:  7204 10 00,  7204 21 10, 
7204 41 10, 7204 49 10, 7204 49 30, 7204 49 91 and 7204 49 99. 

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PROTOCOL A 

TITLE I 

CLASSIFICATION 

Article 1 

The  competent  authorities  of  the  Community  undertake  to  inform  Russia  of  any  changes  in 
the  combined  nomenclature  (CN)  in  respect  of  products  covered  by  this  Agreement  at  least 
one month before the date of their entry into force in the Community. 

TITLE II 

ORIGIN 

Article 2 

1. Products covered by this Agreement originating in Russia (origin as defined by the relevant 
Community  Regulations)  to  be  exported  to  the  Community  in  accordance  with  the 
arrangements established by this Agreement shall be accompanied by a certificate of Russian 
origin conforming to the model annexed to this Protocol. 

2.  The  certificate  of  origin  shall  be  certified  by  the  competent  Russian  organizations 
authorized under Russian legislation as to whether the products in question can be considered 
products originating in that country. 

Article 3 

The  certificate  of  origin  shall  be  issued  only  on  application  in  writing  by  the  exporter  or, 
under  the  exporter's  responsibility,  by  his  authorized  representative.  The  competent  Russian 
organizations authorized under Russian legislation shall ensure that the certificate of origin is 
properly  completed  and  for  this  purpose  they  shall  request  for  any  necessary  documentary 
evidence or carry out any checking 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 necessary formalities for importing the products shall not ipso facto cast doubt upon 
the statements in the certificate. 

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TITLE III 

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE 
LIMITS 

SECTION I 

Exportation 

Article 5 

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

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 to 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  as  evidenced  by  their  bill  of 
lading or other transport document. 

SECTION II 

Importation 

Article 9 

The release for free circulation into the Community of the products covered by the Agreement 
shall be subject to the presentation of an import authorization. 

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Article 10 

1. The presentation by the importer of an export licence shall be made not later than 31 March 
of the year following that in which the goods covered by the licence have been shipped. 

2. The competent authorities of the Community shall issue the import authorization referred to 
in Article 9, within 10 working days of the presentation by the importer of the original of the 
corresponding export licence. 

3.  The  import  authorizations  shall  be  valid  for  four  months  from  the  date  of  their  issue  for 
importation throughout the customs territory of the Community. 

4. The competent authorities of the Community shall cancel the import authorization 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 11 

If  the  competent  authorities  of  the  Community  find  that  the  total  quantity  of  the  products 
covered by export licences issued by the competent authorities of Russia exceed the limits set 
out in Annex II to the Agreement, the Community authorities shall suspend the further issue 
of  import  authorizations.  In  this  event,  the  competent  authorities  of  the  Community  shall 
immediately inform the competent authorities of Russia and immediate consultations pursuant 
to Article 9 (2) of the Agreement shall be initiated. 

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

TITLE IV 

Article 12 

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. 

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

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This number shall be composed of the following elements: 

- two letters identifying the exporting country as follows: RU, 

- 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 

IT 

= 

= 

Ireland 

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 

FI 

=  Finland 

SE  =  Sweden 

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GB  =  United Kingdom, 

-  a  one-digit  number  identifying  the  year  in  question  corresponding  to  the  last  figure  in  the 
year, e.g. ‘5’ for year 2005, 

-  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 13 

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 14 

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 competent Russian authorities 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 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. 

TITLE V 

ADMINISTRATIVE COOPERATION 

Article 15 

The Community and Russia 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 16 

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

Article 17 

Russia  shall  send  the  Community  (European  Commission)  the  names  and  addresses  of  the 
competent  Russian  governmental  authorities  which  are  authorized  to  issue  and  to  verify 
export licences and the competent Russian organizations authorized under Russian legislation 

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to issue certificates of origin together with specimens of the stamps and signatures they use. 
Russia  shall  also  notify  the  Community  (European  Commission)  of  any  change  in  these 
particulars. 

Article 18 

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  Russian  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 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 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 or 
licence applies to the goods actually exported and whether these 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. 

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  competent  Russian 
organizations 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 19 

1. Where the verification procedure referred to in Article 18 or where information available to 
the competent authorities of the Community or of Russia indicates or appears to indicate that 
the  provisions  of  this  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  Russian  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. Russia 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. 

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

4. In pursuance of the cooperation referred to in paragraph 1, the competent authorities of the 
Community  and  Russia  shall  exchange  any  information  considered  by  either  Party  to  be  of 
use in preventing circumvention or infringement of the provisions of this Agreement. These 
exchanges  may  include  information  on  the  trade  in  the  type  of  products  covered  by  this 
Agreement  between  Russia  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  Russia  prior  to  their  importation  into  the  Community.  This  information  may 
include,  at  the  request  of  the  Community,  copies  of  all  relevant  documentation,  where 
available. 

5.  Where  sufficient  evidence  shows  that  the  provisions  of  this  Protocol  have  been 
circumvented or infringed, the competent authorities of Russia and the Community may agree 
to  take  any  measures  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 TARIC 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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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 TARIC 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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At …………………………………. on ……………………………………… 

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CERTIFICATE OF ORIGIN 

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(for certain steel products) 

6 Country of origin 

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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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