Proposal for a Council Decision on a Community position within the Association Council on a derogation from Protocol 4, concerning the definition of originating products and methods of administrative co-operation, to the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, on the one part, and the Kingdom of Morocco, of the other part
Date: 2005-07-18
Institutions: European Commission
Subjects: Association Council (EU), Morocco, administrative cooperation, association agreement (EU), clothing, derogation from EU law, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.7.2005 
COM(2005) 332 final 

2005/0134 (ACC) 

.  

Proposal for a 

COUNCIL DECISION 

on a Community position within the Association Council on a derogation from 
Protocol 4, concerning the definition of originating products and methods of 
administrative co-operation, to the Euro-Mediterranean Agreement establishing 
an association between the European Communities and their Member States, 
on the one part, and the Kingdom of Morocco, of the other part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

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 Morocco 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. On 7 
April 2004 Morocco and Turkey signed a free trade agreement, which contains a declaration 
stating  that  the  two  Parties  will  replace  the  current  origin  protocol  with  the  pan-Euro-Med 
origin  protocol  via  an  exchange  of  letter.  The  pan-Euro-Mediterranean  cumulation  also 
requires  that  the  rules  of  origin  of  the  EC-Morocco  Euro-Mediterranean  Agreement  be 
amended. A proposal to that effect is currently being discussed by the Council. 

•  General context 

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-Morocco 
Agreement,  on  19  April  2005,  Morocco  requested  a  derogation  which  will  allow  the 
manufacture in Morocco 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 Morocco, Turkey and the EU. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with the other policies and objectives of the Union 

The  consistency  of  the  proposed  decision  with  the  various  objectives  of  the 
Neighbourhood Policy has been met. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

No  consultation  needed  because  the  proposed  decision  follows  a  request  of  the 
interested parties, i.e. the Moroccan authorities. 

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•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

Option 1: granting of the derogation. This option will contribute to the development of 
a  key  sector  of  the  Moroccan  economy,  the  textile  sector,  without  jeopardising  the 
Community textile industry. 

Option  2:  refusal  of  the  request  for  derogation.  This  option will  not  contribute  to  the 
development of the Moroccan economy and in particular of the textile industry which 
has been facing a difficult moment due to the abolition of quotas since January 2005.  

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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 10.890 tons of 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 Morocco, Turkey and the EU but, in any event, 
for no longer than a period of one year; 

provided that Morocco 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; 

provided that the free trade agreement between Morocco and Turkey is in force. 

•  Legal basis 

Article  133  in  conjunction  with  Article  300  paragraph  2,  second  subparagraph  of  the 
Treaty establishing the European Community. 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

There  is  no  other  option  in  the  present  case.  Therefore  this  is  the  simplest  measure 
possible. 

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There is no extra financial and administrative burden. 

•  Choice of instruments 

Proposed instruments: other. 

Other means would not be adequate for the following reason(s). 

The derogation implies an amendment of the protocol on rules of origin. Article 39 of 
the  protocol  provides  that  amendments  are  decided  by  the  EC-Morocco  Association 
Council. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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2005/0134 (ACC) 

Proposal for a 

COUNCIL DECISION 

on a Community position within the Association Council on a derogation from 
Protocol 4, concerning the definition of originating products and methods of 
administrative co-operation, to the Euro-Mediterranean Agreement establishing 
an association between the European Communities and their Member States, 
on the one part, and the Kingdom of Morocco, of the other part 

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: 

(1) 

(2) 

(3) 

(4) 

In  accordance  with  Article  78  of  the  Euro-Mediterranean  Agreement  establishing  an 
association between the European Communities and their Member States, on the one 
part, and the Kingdom of Morocco, of the other part, signed on 26 February 19961, an 
Association Council is established, 

In  accordance  with  Article  39  of  Protocol  4  to  the  EC-Morocco  Agreement, 
the Association Council may decide to derogate from the provisions of this Protocol, 

In accordance with the Joint Declaration on Article 39 in Annex VIII to Protocol 4 the 
Community has examined the request from Morocco for a derogation from the rules of 
origin; 

As  a  result  of  this  examination,  the  Council,  on  behalf  of  the  Community,  considers 
that  all  the  conditions  are  met  to  grant  the  derogation  from  the  rules  of  origin  laid 
down in Protocol 4; 

HAS DECIDED AS FOLLOWS: 

1 

OJ L 70 of 18.3.2000. 

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Sole Article 

The position to be adopted by the Community within the Association Council established by 
the  Euro-Mediterranean  Agreement  establishing  an  association  between 
virtue  of 
the  European  Communities  and  their  Member  States,  on  the  one  part,  and  the  Kingdom  of 
Morocco, of the other part, on the derogation from the rules of origin laid down in Protocol 4, 
concerning the definition of originating products and methods of administrative co-operation, 
is that defined in the attached draft decision of the EC-Morocco Association Council. 

Done at Brussels, 

For the Council 
The President 

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Proposal for a 

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

of 

derogating from Protocol 4, concerning the definition of originating products and 
methods of administrative co-operation , to the Euro-Mediterranean Agreement 
establishing an association between the European Communities and their 
Member States, on the one part, and the Kingdom of Morocco, of the other part 

THE EC-MOROCCO ASSOCIATION COUNCIL, 

Having regard to the Euro-Mediterranean Agreement establishing an association between the 
European  Communities  and  their  Member  States  and  the  Kingdom  of  Morocco2,  signed  at 
Brussels  on  26  February  1996,  hereinafter  "EC-Morocco  Agreement",  and  in  particular  to 
Article  39  of  Protocol  4  concerning  the  definition  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 Morocco for derogations from the rules of origin after signature of 
the EC-Morocco Agreement; 

On  19  April  2005,  Morocco  submitted  a  request  for  a  derogation  from  the  rules  of 
origin  for  garments.  On  7  June  2005,  Morocco  completed  its  request  by  sending  the 
list of products and relevant quantities, for a total amount of 10.890 tons of garments 
falling  under  chapters  61  and  62  of  the  Harmonized  Commodity  Description  and 
Coding System; 

Pending the entry into force of the Morocco-Turkey Free Trade Agreement signed on 
7  April  2004  and  pending  the  amendment  of  the  EC-Morocco  protocol  on  rules  of 
origin,  the  derogation  would  allow  the  manufacture  in  Morocco  of  originating 
garments from fabrics originating in Turkey for export to the Community; 

This derogation applies also to fabrics originating in Turkey and exported to Morocco 
from the Community; 

This  derogation  will  anticipate  the  effects  of  a  higher  degree  of  cumulation  as 
compared  to  the  one  provided  for  in  the  current  origin  protocol,  thus  contributing  to 
the development of the Moroccan economy, in particular of its textile sector; 

2 

OJ L 70 of 18.3.2000. 

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(6) 

(7) 

Accordingly,  this  derogation  should  be  granted  on  the  condition  that  the  free  trade 
agreement between Morocco and Turkey, including its protocol on rules of origin, has 
entered into force. 

The  derogation  should  be  granted  until  the  entry  into  force  of  the  new  protocol  on 
rules  of  origin  among  the  three  Parties  concerned,  namely  Morocco,  Turkey  and  the 
Community but, in any event, for no longer than a period of one year. 

HAS DECIDED AS FOLLOWS: 

Article 1 

By  way  of  derogation  from  Annex  II  to  Protocol  4  to  the  EC-Morocco  Agreement,  the 
garments listed in the Annex to this Decision and obtained in Morocco from fabric originating 
in Turkey shall be considered as originating in Morocco. 

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 to the EC-Morocco Agreement 
are in force between Turkey and Morocco in order to determine the originating status of the 
fabrics sourced in Turkey. 

Article 3 

For  the  purpose  of  this  Decision  and  by  way  of  derogation  from  Article  18  (4)  and  (5)  to 
Protocol No 4 of the EC-Morocco Agreement, the customs authorities of a Member State of 
the  European  Community  may  issue  EUR.1  movement  certificates  for  fabric  originating  in 
Turkey to be exported to Morocco. 

Article 4 

The quantities referred to in the Annex 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 Council Regulation (EEC) No 2454/933 shall apply mutatis mutandis to the 
management of those quantities referred to in the Annex.  

Article 5 

The  customs  authorities  of  Morocco  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 
Morocco shall forward to the Commission every three months a statement of the quantities in 

3 

OJ  L  25,  11.10.1993,  p.  1  as  last  amended  by  Regulation  (EC)  No  883/2005  of  the  Commission, 
OJ L 148, 11.6.2005, p. 5. 

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respect of which movement certificates EUR.1 have been issued pursuant to this Decision and 
the serial numbers of those certificates. 

Article 6 

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 EC-Morocco Agreement is drawn 
up, that is to say all Community languages and Arabic: 

"Derogation – Decision No. 1/2005 

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

Article 7 

This Decision shall enter into force on the day of its adoption.  

Article 8 

This  Decision  shall  apply  until the  entry  into  force  of  the  new  protocol  on  the  definition  of 
originating products and methods of administrative co-operation among Morocco, Turkey and 
the Community but, in any event, for no longer than a period of one year. 

Done at Brussels 

For the Association Council 
The President 

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Quantities 
(tons) 

6400 

860 

ANNEX I 

LIST AS REFERRED TO IN ARTICLE 1 

(products benefiting from the derogation) 

HS heading No. 

Description 

6203 42 and 

6204 62 

Men's  or  boys'  trousers,  bib  and  braces 
overalls, breeches and shorts of cotton 

Women's  or  girls'  trousers,  bib  and  braces 
overalls, breeches and shorts of cotton 

6204 63 and 

6204 69 

Women's  or  girls'  trousers,  bib  and  braces 
overalls,  breeches  and  shorts of  synthetic 
fibres 

6207 

6211 

6212 

6203 41 

6203 43 

6203 49 

Women's  or  girls'  trousers,  bib  and  braces 
overalls, breeches and shorts of other textile 
materials 

Men's  or  boys'  singlets  and  other  vests, 
underpants,  briefs,  nightshirts,  pyjamas, 
bathrobes,  dressing  gowns  and  similar 
articles 

Tracksuits,  ski  suits  and  swimwear;  other 
garments 

girdles, 

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

corsets, 

Men's  or  boys'  trousers,  bib  and  braces 
overalls, breeches and shorts of wool or fine 
animal hair 

700 

Men's  or  boys'  trousers,  bib  and  braces 
overalls,  breeches  and  shorts of  synthetic 
fibres 

Men's  or  boys'  trousers,  bib  and  braces 
overalls, breeches and shorts of other textile 
materials 

6205 and  

Men's or boys' shirts 

800 

6206 

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

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6204 51 to  

Women's or girls' skirts and divided skirts 

800 

6204 59 

6109 90 

T-shirts,  singlets  and  other  vests,  knitted  or 
crocheted of other textiles materials 

6204 31 to 6204 39  Women's or girls' jackets and blazers 

6111 30 

Babies'  garments  and  clothing  accessories, 
knitted or crocheted of synthetic fibres 

6204 42 

Women's or girls' dresses of cotton 

450 

430 

350 

100 

TOTAL 

10.890 

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