Proposal for a Council Decision on the conclusion of an agreement between the European Community and the Republic of Kazakhstan on trade in certain steel products
Date: 2005-05-23
Institutions: European Commission
Subjects: Kazakhstan, iron and steel product, quantitative restriction, ratification of an agreement, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.5.2005 
COM(2005) 201 final 

2005/0093 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and the Republic 
of Kazakhstan 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  Republic  of 
Kazakhstan 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  Republic  of  Kazakhstan  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 8 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 
Kazakhstan’s accession to the WTO, whichever date is earlier. 

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2005/0093 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an agreement between the European Community and the Republic 
of Kazakhstan 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 the Republic of 
Kazakhstan2, of the other part, hereinafter referred to as “the PCA”, entered into force 
on 1 July 1999. 

Article 17(1) of the PCA provides that trade in certain steel products is governed by 
Title  III  of  that  Agreement  with  the  exception  of  Article  11  thereof,  and  by  the 
provisions of an agreement on quantitative arrangements. 

For the years 2000-2004, 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 

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

The text of the Agreement is attached to this Decision. 

OJ C , , p. . 
OJ L 196, 28.7.1999, p.3 

1. 

2. 

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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 Government of the Republic of Kazakhstan 
on trade in certain steel products 

THE EUROPEAN COMMUNITY, 

of the one part, and 

THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN, 

of the other part, 

being the Parties to this Agreement, 

Whereas  the  Partnership  and  Cooperation  Agreement  (hereinafter  referred  to  as  “PCA”) 
between  the  European  Communities  and  their  Member  States,  on  the  one  part,  and  the 
Republic of Kazakhstan, on the other part3, signed on 23 January 1995 has entered into force 
on 1 July 1999, 

Whereas  the  European  Community  (hereinafter  referred  to  as  “the  Community”)  and  the 
Government  of  the  Republic  of  Kazakhstan  (hereinafter  referred  to  as  “Kazakhstan”)  are 
desirous to promote the orderly and equitable development of trade in steel products between 
the Community and Kazakhstan; 

Whereas Article 17 (1) of the PCA provides that trade in certain steel products (i.e. the steel 
products  of  the  former  European  and  Coal  Steel  Community,  hereinafter  referred  to  as 
‘ECSC’)  is  governed  by  Title  III  of  the  PCA  ,  save  for  Article 11  thereof  and  by  the 
provisions of an Agreement; whereas this Agreement constitutes an Agreement in the sense of 
Article 17 (1) of the PCA; 

Whereas  for  the  years  2000-2004,  trade  in  these  steel  products  was  the  subject  of  an 
agreement, which it is appropriate to replace with a further agreement which takes account of 
developments in the relationship between the Parties; 

Whereas  this  Agreement  is  designed  to  provide  a  framework  permitting  the  removal  of 
quantitative restrictions on trade in certain steel products, provided that certain conditions are 
met and in particular when proper competitive conditions have been established in respect of 
the steel products covered by the Agreement; 

3 

OJ L 196, 28.07.1999, p. 3 

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Whereas this Agreement should be complemented by the cooperation between the Parties in 
respect  of  their  steel  industries,  including  appropriate  exchanges  of  information,  within  the 
Contact Group as foreseen in Article 17 (2) of the PCA, 

HAVE AGREED AS FOLLOWS: 

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

Article 1 

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 each calendar year quantitative limits on the 
Kazakh exports to the Community as set out in Annex II for 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 reiterate their commitment to achieve complete liberalisation of trade in respect 
of the steel products mentioned in Annex I provided that compatible competitive conditions 
have been established. 

3. Quantitative restrictions, customs duties, charges or any similar measures on the export of 
ferrous  scrap  and  waste  under  the  Combined  Nomenclature  heading  7204  are  prohibited 
among the Parties. 

4. The Parties agree that imports into the Community from Kazakhstan of products mentioned 
in  Annex  I  as  from  1.1.2005  until  the  entry  into  force  of  this  Agreement  shall  be  deducted 
from the quantitative limits set out in Annex II. 

5. 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  mentioned  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 quantities set out in Annex II. 

6. 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. 

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7. Either 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 mentioned in Annex I have substantially deteriorated or improved; 

the  possibility  of  transferring  unused  amounts  from  under-utilised  product  groups  to 

- 
other groups. 

Article 3 

1. Imports into the customs territory of the Community for free circulation of steel products 
mentioned 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 Kazakhstan and to a certificate of origin in accordance with the 
provisions of Protocol A. 

2. Imports into the customs territory of the Community of steel products mentioned 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.  Carryover  to  the  corresponding  quantitative  limits  for  the  following  calendar  year  of  the 
amounts  of  quantitative  limits  set  out  in  Annex  II  not  used  during  the  first  calendar  year  is 
authorised up to 10 % of the relevant quantitative limit for the year in which it was not used. 
Kazakhstan  shall  notify  the  Community  no  later  than  31  March  of  the  following  year  if  it 
intends to make use of this provision.  

4.  The  quantitative  limit  for  a  given  product  group  can  be  adjusted  once  in  the  course  of  a 
calendar  year  up  to  10%  of  the  quantitative  limit  for  a  given  product  group,  subject  to  the 
consent  of  both  Parties.  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 above. Kazakhstan 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 
minimise the possibilities for abuse and circumvention: 

- the Kazakh authorities shall inform the Community authorities by the 28th of each month of 
the export licences issued during the preceding month; 

- the Community authorities shall inform the Kazakh authorities by the 28th of each month of 
the import authorisations issued during the preceding month. 

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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. 

2. Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of 
this Agreement, both Parties agree to take all necessary steps to prevent, to investigate and to 
take any necessary legal and/or administration action against circumvention 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  and  by  whatever  other  means.  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.  

3.  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. 

4. Pending the results of the consultations referred to in paragraph 3, and if requested by the 
Community  and  on  provision  of  sufficient  evidence,  Kazakhstan  shall  ensure  that  any 
adjustments  of  the  quantitative  limits  which  may  result  from  such  consultations,  are  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. 

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,  where  there  is 
sufficient evidence that steel products covered by this Agreement originating in Kazakhstan 
have  been  imported  in  circumvention  of  this  Agreement,  to  set  off  the  relevant  quantities 
against the quantitative limits set out in Annex II.  

6. 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. 

7.  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  set  out  in  Annex  II  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  supplies),  the 

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Community will be entitled to request consultations in order to find a satisfactory solution to 
the problem. Such consultations shall be held immediately. 

3.  Kazakhstan  shall  endeavour  to  ensure  that  exports  into  the  Community  of  steel  products 
mentioned 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 Kazakh 
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 
Kazakh  authorities  may  continue  to  issue  export  licences  for  the  products  covered  by  this 
Agreement provided they do not exceed the quantities set out in Annex II. 

Article 6 

1. Where any product covered by this Agreement is being imported into the Community from 
Kazakhstan  under  such  conditions  as  to  cause  or  threaten  to  cause  substantial  injury  to 
Community  producers  of  like  products,  the  Community  shall  supply  Kazakhstan  with  all 
relevant information with a view to seeking a solution acceptable to both Parties. The Parties 
shall commence consultations immediately. 

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 PCA. 

3.  Notwithstanding  the  provisions  of  this  Agreement,  the  provisions  of  Article  13.6  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')  and  any  amendments  thereof.  Any  amendment  to  the  combined 
nomenclature  (CN)  made  in  accordance  with  the  procedures  in  force  in  the  Community 
concerning  the  products  covered  by  this  Agreement  or  any  decision  relating  to  the 
classification of goods shall not have the effect of reducing the quantitative limits set out in 
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 Kazakhstan and shall not have the effect of reducing the quantitative limits 
set out in Annex II . The procedures for control of the origin of the products referred to above 
are laid down in Protocol A. 

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Article 8 

1.  Without  prejudice  to  the  periodic  exchange of information on export licences and import 
authorisations pursuant to Article 4 (1) of this Agreement, the Parties agree to exchange full 
statistical information relating to the products mentioned 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  authorisations  issued  pursuant  to  Article  3  of  this 
Agreement, 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  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  of  the  Parties.  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 
Contracting 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, 

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

4. Specific additional consultations may also be held by agreement between the Parties. 

Article 10 

Both Parties aim at achieving complete liberalisation of trade in steel products and 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 Kazakhstan the Community shall provide technical assistance to help 
Kazakhstan 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. 

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Article 11 

1. This Agreement shall enter into force on the day of its signature. It shall be applicable until 
31 December 2006 unless it is denounced or terminated in accordance with, respectively, the 
provisions of paragraph 3 or 4 of this Article.  

2. Either Party may at any time propose modifications to this Agreement which at the request 
of either Party shall be the subject of consultations. 

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 quantitative limits in the Community established in Annex 2 of 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 Kazakhstan accedes to the WTO before the expiration of this Agreement, 
the Agreement shall be terminated as of the date of accession.  

5. The Community reserves the right at all times to take all appropriate measures including, 
where  the  Parties  are  unable  to  reach  a  mutually  satisfactory  solution  in  the  consultations 
foreseen  in  previous  Articles  or  where  this  Agreement  is  denounced  by  either  Party,  the 
reintroduction of a system of autonomous quotas in respect of exports from Kazakhstan of the 
products mentioned in Annex I.  

6. The Annexes and Protocol A attached to this Agreement shall form an integral part thereof. 

Article 12 

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,  Kazakh  and  Russian  languages, 
each of these texts being equally authentic. 

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

For the European Community 
For the Government of the Republic of Kazakhstan 

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ANNEX I 

SA  Flat-rolled 
products 

SA1. Coils 

SA2. 
Plate 

Heavy 

  SA3.  Other  flat 
rolled products 

7208 10 00 00 

7208 40 00 10 

7208 25 00 00 

7208 51 20 10 

7208 26 00 00 

7208 51 20 91 

7208 27 00 00 

7208 51 20 93 

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

7210 70 80 10

7219 22 90 00 

7210 90 30 10

7219 23 00 00 

7210 90 40 10

7219 24 00 00 

7210 90 80 91

7219 31 00 00 

7208 36 00 00 

7208 51 20 97 

  7208 90 00 10

7211 14 00 90

7208 37 00 10 

7208 37 00 90 

7208 51 20 98 

  7209 15 00 00

7211 19 00 90

7219 32 10 00 

7208 38 00 10 

7208 38 00 90 

7208 51 91 10 

  7209 16 10 00

7211 23 20 10

7219 32 90 00 

7208 39 00 10 

7208 39 00 90 

7208 51 91 90 

7211 14 00 10 

7208 51 98 10 

7211 19 00 10 

7208 51 98 91 

7219 11 00 00 

7208 51 98 99 

7219 12 10 00 

7208 52 91 10 

7219 12 90 00 

7208 52 91 90 

  7209 16 90 00
  7209 17 10 00
  7209 17 90 00
  7209 18 10 00
  7209 18 91 00
  7209 18 99 00

7211 23 30 10

7211 23 30 91

7219 33 10 00 

7211 23 80 10

7219 33 90 00 

7211 23 80 91

7211 29 00 10

7219 34 10 00 

7211 90 00 11

7219 34 90 00 

7219 13 10 00 

7208 52 10 00 

  7209 25 00 00

7212 10 10 00

7219 13 90 00 

7208 52 99 00 

  7209 26 10 00

7212 10 90 11

7219 35 10 00 

7219 14 10 00 

7208 53 10 00 

  7209 26 90 00

7212 20 00 11

7219 35 90 00 

7219 14 90 00 

7211 13 00 00 

  7209 27 10 00

7212 30 00 11

7225 20 00 10 

7225 30 10 00 

7225 30 90 00 

  7209 27 90 00

7212 40 20 10

7225 40 12 90 

  7209 28 10 00

7212 40 20 91

7225 40 90 00 

  7209 28 90 00

7212 40 80 11

  7209 90 00 10

7212 50 20 11

  7210 11 00 10 

7212 50 30 11 

  7210 12 20 10

7212 50 40 11

  7210 12 80 10

7212 50 61 11

  7210 20 00 10

7212 50 69 11

  7210 30 00 10

7212 50 90 13

  7210 41 00 10

  7210 49 00 10

7212 60 00 11

  7210 50 00 10

7212 60 00 91

  7210 61 00 10

7219 21 10 00

  7210 69 00 10

7219 21 90 00

  7210 70 10 10

7219 22 10 00

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ANNEX II 

QUANTITATIVE LIMITS 

(Tonnes) 

Products 

2005 

2006 

SA. Flat products 

SA1. Coils 

85000 

87125 

SA2. Heavy plate 

0 

0 

SA3. Other flat products 

115000 

117875 

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Agreed minute 

In the context of this Agreement, 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), Kazakhstan 
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 

- Kazakhstan 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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PROTOCOL A 

TITLE I 

CLASSIFICATION 

Article 1 

1.  The  competent  authorities  of  the  Community  undertake  to  inform  Kazakhstan  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  Kazakhstan  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  Kazakhstan  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  Kazakhstan 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 Kazakh origin conforming to the model annexed to 
this Protocol. 

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

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 
Kazakh organisations authorised for such purposes under Kazakh 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 

The appropriate Kazakh governmental authorities shall issue an export licence in respect of all 
consignments  from  Kazakhstan  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 

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. 

Article 11 

1. The competent authorities of the Community shall issue the import authorisation referred to 
in Article 10 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. 

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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  Kazakhstan  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  Kazakhstan  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 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. 

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

This number shall be composed of the following elements: 

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

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

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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 

GB  =  United Kingdom, 

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

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-  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 Kazakh governmental authorities competent to issue licences or 
to the Kazakh organisations authorised to issue certificates of origin under Kazakh 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. 

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 

Kazakhstan  shall  send  the  Community  (European  Commission)  the  names  and  addresses  of 
the competent Kazakh 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. 

EN 

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Kazakhstan  shall  also  notify  the  Community  (European  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  Kazakh  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 
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  Kazakh 
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 Kazakhstan indicates or appears to indicate 
that  the  provisions  of  the  Agreement  are  being  circumvented  or  infringed,  the  two  Parties 

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shall  cooperate  closely  and  with  the  appropriate  urgency  in  order  to  prevent  any  such 
circumvention or infringement. 

2.  To  this  end,  the  appropriate  Kazakh  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. Kazakhstan 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 Kazakhstan 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  Kazakhstan  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 Kazakhstan 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 Kazakhstan 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 
country) 

(name, 

full  address, 

EXPORT LICENCE 

(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  (name,  full 
address, country) 

At …………………………………. on ……………………………………… 

(Signature) 

(Stamp) 

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1 Exporter (name, full address, country) 

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6 Country of origin 

7 Country of destination 

8  Place  and  date  of  shipment  –  means 
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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  (name,  full 
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CERTIFICATE OF ORIGIN 

1 Exporter (name, full address, country) 

ORIGINAL 

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4 Product group 

No 

5  Consignee 
country) 

(name, 

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CERTIFICATE OF ORIGIN 

(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. 

15  Competent  authority  (name,  full 
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CERTIFICATE OF ORIGIN 

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7 Country of destination 

8  Place  and  date  of  shipment  –  means 
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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. 

15  Competent  authority  (name,  full 
address, country) 

At …………………………………. on ……………………………………… 

(Signature) 

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