Proposal for a Council Decision on a Community position within the Association Council on a derogation from the provisions concerning the definition of the concept of "originating products" and methods of administrative co-operation laid down in the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States and the Republic of Tunisia
Date: 2005-04-18
Institutions: European Commission
Subjects: Tunisia, administrative cooperation, cooperation policy, liberalisation of trade, originating product, trade policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.4.2005 
COM(2005) 142 final 

2005/0054 (ACC) 

Proposal for a 

COUNCIL DECISION 

on a Community position within the Association Council on a derogation from the 
provisions concerning the definition of the concept of "originating products" and 
methods of administrative co-operation laid down in the Euro-Mediterranean 
Agreement establishing an association between the European Communities and their 
Member States and the Republic of Tunisia 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

BACKGROUND 

In the context of the Barcelona process, the Commission has made a proposal to the Council 
for  the  extension  of  the  pan-European  cumulation  of  origin  to  the  Mediterranean  countries, 
which will contribute to the creation of the Euro-Med free trade area by 2010.  

The  pan-Euro-Mediterranean  cumulation  of  origin  will  allow,  amongst  other,  that  garments 
manufactured in Tunisia will be conferred preferential origin for export to the Community if 
they  are  made  up  from  fabrics  originating  in  the  other  pan-Euro-Mediterranean  countries, 
such as Turkey. 

A basic condition for the application of pan-Euro-Mediterranean cumulation is the existence 
of  free  trade  agreements  with  identical  rules  of  origin,  between  the  countries  of  the  zone. 
Tunisia has recently signed a free trade agreement with Turkey. The pan-Euro-Mediterranean 
cumulation  also  requires  that  the  rules  of  origin  of  the  EC-Tunisia  Euro-Mediterranean 
Agreement be amended. A proposal to that effect is currently being discussed by the Council. 

2. 

NATURE OF THE PROBLEM 

The rule of origin applicable to the garments for which the derogation is requested is that all 
the fabrics used must be manufactured from already originating yarn. In other words, it does 
not allow for the use of non-originating fabrics in the manufacture of these garments. 

Based  upon  the  Joint  Declaration  on  Article  39  of  Protocol  No.  4  to  the  EC-Tunisia 
Agreement,  on  16  February  2005,  Tunisia  requested  a  derogation  which  will  allow  the 
manufacture in Tunisia of originating garments from fabrics originating in Turkey for export 
to  the  EU.  This  derogation  aims  at  anticipating  the  effects  of  pan-Euro-Mediterranean 
cumulation of origin among Tunisia, Turkey and the EU.  

3. 

STRUCTURE OF THE PROPOSED DEROGATION 

The proposal lays down that the derogation shall be granted: 

-  in  respect  of  garments  falling  under  chapters  61  and  62  of  the  Harmonized  Commodity 
Description and Coding System; 

-  for  a  quantity  of  8.040  tons  of  trousers  and  for  a  quantity  of  1.855  of  other  garments 
(detailed table enclosed in Annex 1); 

- until the entry into force of the Pan-Euro-Mediterranean protocol on rules of origin among 
the  Parties  concerned,  namely  Tunisia,  Turkey  and  the  EU  but,  in  any  event,  for  no  longer 
than a period of one year; 

-  provided  that  Tunisia  carries  out  quantitative  checks  on  the  exports  of  the  products 
concerned and supplies statements of the quantities in respect of which movement certificates 
have been issued; 

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- provided that Turkey and Tunisia, pending the entry into force of the Free Trade Agreement 
they recently signed, agree to start implementing its rules of origin, including the provision on 
administrative co-operation. 

4. 

CONCLUSION 

The Council is invited to adopt the proposed Community position for the adoption by the EC-
Tunisia Association Council of the decision derogating from the current rules of origin. 

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2005/0054 (ACC) 

Proposal for a 

COUNCIL DECISION 

on a Community position within the Association Council on a derogation from the 
provisions concerning the definition of the concept of "originating products" and 
methods of administrative co-operation laid down in the Euro-Mediterranean 
Agreement establishing an association between the European Communities and their 
Member States and the Republic of Tunisia 

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 paragraph 2, second subparagraph, 

Having regard to the proposal from the Commission, 

Whereas  Article  78  of  the  Euro-Mediterranean  Agreement  establishing  an  association 
between the European Communities and their Member States and the Republic of Tunisia, 
signed on 26 January 1998, establishes an Association Council, 

Whereas  Article  39  of  Protocol  No  4  to  the  Euro-Mediterranean  Agreement,  concerning 
the definition  of  the  concept of "originating products" and  methods of administrative  co-
operation,  provides  that  the  Association  Council  may  decide  to  amend  the  provisions  of 
this Protocol, 

Whereas the Joint Declaration on Article 39 in Annex VIII to Protocol No 4 states that the 
Community is prepared to examine any request from Tunisia for derogations from the rules 
of origin; 

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HAS DECIDED AS FOLLOWS: 

Sole Article 

The position to be adopted by the Community within the Association Council established 
by virtue of the Euro-Mediterranean Agreement on the derogation from the rules of origin 
laid  down  in  Protocol  No  4,  concerning  the  definition  of  the  concept  of  "originating 
products" and methods of administrative co-operation, is that defined in the attached draft 
decision of the EC-Tunisia Association Council. 

Done at Brussels, 

For the Council 
The President 

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Draft for a 

DECISION No. 1/2005 OF THE EC-TUNISIA ASSOCIATION COUNCIL 

derogating from the provisions concerning the definition of the concept of 
"originating products" and methods of administrative co-operation laid down in the 
Euro-Mediterranean Agreement establishing an association between the European 
Communities and their Member States and the Republic of Tunisia 

THE EC-TUNISIA ASSOCIATION COUNCIL, 

Having regard to the Euro-Mediterranean Agreement establishing an association between 
the European Communities and their Member States and the Republic of Tunisia1 signed at 
Brussels on 26 January 1998, and in particular to Article 39 of Protocol No. 4 concerning 
the  definition  of  the  concept  of  originating  products  and  methods  of  administrative  co-
operation thereof, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Joint  Declaration  on  Article  39  states  that  the  Community  is  prepared  to 
examine  any  request  from  Tunisia  for  derogations  from  the  rules  of  origin  after 
signature of the Euro-Mediterranean Agreement; 

On 16 February 2005, Tunisia submitted a request for a derogation from the rules 
of origin for a quantity of 8.040 tons of trousers and for a quantity of 1.855 of other 
garments  falling  under  chapters  61  and  62  of  the  Harmonized  Commodity 
Description and Coding System; 

Pending the entry into force of the Tunisia-Turkey Free Trade Agreement signed on 
25  November  2004  and  pending  the  amendment  of  the  EC-Tunisia  protocol  on 
rules  of  origin  for  the  purpose  of  pan-Euro-Mediterranean  cumulation,  the 
derogation  would  allow  the  manufacture  in  Tunisia  of  originating  garments  from 
fabrics originating in Turkey for export to the EU; 

For the purpose of this derogation, Tunisia and Turkey need to implement identical 
rules of origin, including the provision on administrative co-operation; 

The  derogation  can  be  granted  until  the  entry  into  force  of  the  Pan-Euro-
Mediterranenan  protocol  on  rules  of  origin  among  the  three  Parties  concerned, 
namely Tunisia, Turkey and the EU but, in any event, for no longer than a period of 
one year. 

1 OJ no L 97 of 30.03.1998, p. 2. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

By way of derogation from the special provisions in the list in Annex II to Protocol No. 4 
of the EC-Tunisia Agreement, the garments listed in Annex I and obtained in Tunisia from 
fabric  originating  in  Turkey  shall  be  considered  as  originating  in  Tunisia  in  accordance 
with the terms of this Decision. 

Article 2 

The  derogation  provided  for  in  Article  1  may  only  be  applied  provided  that  preferential 
rules of origin identical to the rules of origin contained in Protocol No. 4 of the EC-Tunisia 
Agreement are in force between Turkey and Tunisia in order to determine the originating 
status of the fabrics sourced in Turkey. 

Article 3 

The quantity referred to in Annex I shall be managed by the Commission, which shall take 
all administrative actions it deems advisable for their efficient management. Articles 308a, 
308b  and  308c  of  Regulation  (EEC)  No  2454/93  relating  to  the  management  of  tariff 
quotas shall apply mutatis mutandis to the management of the quantities referred to in the 
Annex.  

Article 4 

The customs authorities of Tunisia shall take the necessary steps to carry out quantitative 
checks on exports of the products referred to in Article 1. To that end, all the certificates 
they issue pursuant to this Decision shall bear a reference to it. The competent authorities 
of  Tunisia  shall  forward  to  the  Commission  every  three  months  a  statement  of  the 
quantities in respect of which movement certificates EUR.1 have been issued pursuant to 
this Decision and the serial numbers of those certificates. 

Box 7 of movement certificates EUR.1 issued pursuant to this Decision shall contain the 
following indication, in one of the languages in which the Agreement is drawn up: 

Article 5 

"Derogation – Decision No. 1/2005 

Article 6 

Tunisia  and  the  Member  States  of  the  European  Community  shall  take  the  measures 
necessary on their part to implement this Decision. 

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Article 7 

This Decision shall enter into force on the day of its adoption and be applicable as soon as 
the conditions of Article 2 are fulfilled. 

This  Decision  shall  apply  until  the  entry  into  force  of  the  pan-Euro-Mediterranean 
cumulation  of  origin  among  Tunisia,  Turkey  and  the  EU  but,  in  any  case,  for  no  longer 
than a period of one year. 

Done at Brussels, 

For the Association Council 
The President 

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ANNEX I 

LIST AS REFERRED TO IN ARTICLE 1 

(product benefiting from the derogation) 

HS heading No. 

Description 

Quantities 
(tons) 

ex 620342 and 

Men's or boys' trousers of cotton 

6.505 

ex 620462 

Women's or girls' trousers of cotton 

ex 620343 

Men's or boys' trousers of synthetic fibres 

ex 620341, 

ex 620349, 

ex 620461, 

Men's  or  boys'  trousers  of  wool  or  fine 
animal hair 

Men's  or  boys'  trousers  of  other  textile 
materials 

Women's  or  girls'  trousers  of  wool  or  fine 
animal hair 

ex 620463 and 

Women's or girls' trousers of synthetic fibres

ex 620469 

6208 and  

6212 

Women's  or  girls'  trousers  of  other  textile 
materials 

Women's  or  girls'  singlets  and  other  vests, 
slips, petticoats, briefs, panties, nightdresses, 
pyjamas,  négligés,  bathrobes,  dressing 
gowns  and  similar  articles  of  man-made 
fibres 

girdles, 

Brassières, 
braces, 
suspenders,  garters  and  similar  articles  and 
parts  thereof,  whether  or  not  knitted  or 
crocheted 

corsets, 

674 

861 

646 

. 6205 and  

Men's or boys' shirts 

663 

. 6206 

611231 to 

611239 and 

611241 to 

611249 

620451 to  

620459 

Women's  or  girls'  blouses,  shirts  and  shirt-
blouses 

Men's or boys' swimwear of synthetic fibres 

105 

Men's  or  boys'  swimwear  of  other  textile 
materials 

Women's  or  girls'  swimwear  of  synthetic 
fibres 

Women's  or  girls'  swimwear  of other  textile 
materials 

Women's or girls' skirts and divided skirts 

TOTAL 

441 

9.895 

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LEGISLATIVE FINANCIAL STATEMENT 

2.5. 

FINANCIAL IMPACT ON REVENUE: 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

Prior to
action 
[Year 
n-1] 

Situation following action 

[Yea
r n] 

[n+1
] 

[n+2
] 

[n+3
] 

[n+4]  [n+5] 

(€ million to one decimal place) 

120 

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

p.m. 

It  is  impossible  to  determine  exactly  the  loss  to  the  Community  budget.  Without  a 
derogation permitting duty-free importation into the Community, it is not certain that 
Tunisian  production  would  interest  Community  importers  if  they  had  to  pay  the 
import duty. 

Nevertheless, it may be mentioned as an indication that the minimum customs duty 
rate applicable to the products in question when originating in third countries is 12%. 

4. 

LEGAL BASIS  

EC-Tunisia  Euro-Mediterranean  Agreement  signed  on  26  January  1998  –  Joint 
Declaration on Article 39 in Annex VIII to Protocol No. 4. 

5. 

DESCRIPTION AND GROUNDS 

Decision  of  the  EC-Tunisia  Association  Council  derogating  from  the  provisions 
concerning  the  definition  of  the  concept  of  originating  products  laid  down  in  the 
Euro-Mediterranean  Agreement  establishing  an  association  between  the  European 
Communities and their Member States and the Republic of Tunisia. 

Granting Tunisia a derogation from the rules of origin for certain textiles products for 
a period of 1 year or until the entry into force of the pan-euro-med protocol on rules 
of origin among the three Parties concerned, namely Tunisia, Turkey and the EU. 

Methods of implementation 

The  management  of  quantitative  control  will  be  carried  out  by  the  Commission  in 
accordance  with  the  quota  allocation  procedure.  All  certificates  issued  by  the 
Tunisian  authorities  pursuant  to  this  Decision  shall  bear  a  reference  to  it.  The 
customs  authorities  of  Tunisia  shall  carry  out  quantitative  checks  on  the  exports  of 
the  products  and  they  shall  forward  to  the  Commission  information  on  the  EUR  .1 

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movement certificates issued. The competent authorities of Tunisia shall send to the 
Commission statistics on the import and export of the textile products concerned. 

9. 

ANTI-FRAUD MEASURES 

Title  V  of  Protocol  No.  4  to  the  EC-Tunisia  Euro-Mediterranean  Agreement,  and 
more  in  particular  Articles  33,  34  and  35,  deals  with  the  arrangements  for 
administrative  co-operation  between  the  Parties  in  relation  to  the  verification 
procedures of the proofs of origin. 

The  same  provisions  will  have  to  be  applied  between  Tunisia  and  Turkey  for  the 
implementation of the present derogation. 

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