Proposal for a Council Decision on a Community position within the Joint Committee on a recommendation on the re-importation of originating products and on the acceptance by the Contracting Parties of simplified proofs of origin, made out by approved exporters, to the Agreement between the European Economic Community, of the one part, and the Swiss Confederation, of the other part
Date: 2005-11-08
Institutions: European Commission
Subjects: Switzerland, agreement (EU), customs regulations, joint committee (EU), originating product, re-import

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.11.2005 
COM(2005) 527 final 

2005/0218 (ACC) 

Proposal for a 

COUNCIL DECISION 

on a Community position within the Joint Committee on a recommendation on the re-
importation of originating products and on the acceptance by the Contracting Parties of 
simplified proofs of origin, made out by approved exporters, to the Agreement between 
the European Economic Community, of the one part, and the Swiss Confederation, of 
the other part 

(presented by the Commission) 

EN 

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EXPLANATORY MEMORANDUM  

1)  CONTEXT OF THE PROPOSAL 

110 

•  Grounds for and objectives of the proposal 

The Agreement between the European Economic Community, of the one part, and the 
Swiss Confederation, of the other part, hereinafter referred to as 'the Agreement' , does 
in principle not make any distinction between products originating in one Party or the 
other,  in order  to define  the  scope of the  abolition  of  the  customs  duties  and  charges 
having  an  equivalent  effect,  and  of  the  prohibition  of  the  introduction  of  new  ones 
provided  for  by  the  Agreement.  Such  a  distinction  is  made  only  regarding  the 
preferential treatment applicable to certain products. 

It should therefore be clarified that, if products are covered by a reciprocal elimination 
of  customs  duties  without  making  a  distinction  between  products  originating  in  one 
Party  or  the  other,  this  elimination  of  customs  duties  applies  at  import  into  the 
Community or into Switzerland of the products concerned, whether these products are 
originating in Switzerland or in the Community.  

Article  22  (1)  of  Protocol  No  3  of  the  Agreement  establishes  that  the  customs 
authorities of the exporting country may authorise any exporter, hereinafter referred to 
as  'approved  exporter',  who  makes  frequent  shipments  of  products  under  the 
Agreement to make out invoice declarations. 

The  contracting  parties  agree  that,  in  the  context  of  the  Agreement,  the  approved 
exporter  authorisation  is  issued  either  by  the  customs  authorities  of  the  Swiss 
Confederation  or  by  the  customs  authorities  of  a  Member  State  of  the  European 
Community, which is not necessarily the Member State where the invoice declaration 
was made out nor the Member State from which the goods were supplied. 

120 

•  General context 

To provide for clear guidelines two interpretative notes have been agreed between the 
representatives  of  the  Swiss  Federal  Administration  and  of  the  services  of  the 
Commission.  These  two  notes  have  been  endorsed  on  10  May  2004  through 
administrative  letters  that  were  signed  for  the  Swiss  administration  by  Mr.  Gerber, 
Swiss State Secretary for Economic Affairs, and for the Commission services by Mr. 
Verrue, Director-General for Taxation and Customs Union. 

The two issues were also addressed at ministerial level. In Annex C to the conclusions 
of the EU - Switzerland summit of 19 May 2004 the interpretations of the experts were 
confirmed. Both sides agreed to formalise these interpretations by recommendations of 
the joint committee in charge of managing the bilateral free trade agreement. 

•  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 

2 

   EN 

139 

141 

EN 

 
Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

No consultation needed because the proposed recommendation follows a request of the 
interested parties. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

Not applicable. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

219 

229 

230 

305 

For authorising the Community delegation to adopt the recommendations the Council 
has  to  agree  to  the  attached  draft  recommendation  as  the  Community  position  to  be 
taken  in  the  EC  -  Switzerland  Joint  Committee.  Following  the  adoption  of  the 
Community  position,  the  competent  Commission  services  shall  proceed  with  the 
adoption of the draft Recommendation by the EC - Switzerland Joint Committee and 
its subsequent publication in the Official Journal of the European Union. 

310 

•  Legal basis 

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

329 

•  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. 

There is no extra financial and administrative burden. 

•  Choice of instruments 

Proposed instruments: recommendation. 

331 

332 

341 

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342 

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

Article 29 of the Agreement provides that, for the purposes of the administration of the 
Agreement, measures taken by the EC-Switzerland Joint Committee take the form of 
recommendation. 

4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

EN 

4 

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2005/0218 (ACC) 

Proposal for a 

COUNCIL DECISION 

on a Community position within the Joint Committee on a recommendation on the re-
importation of originating products and on the acceptance by the Contracting Parties of 
simplified proofs of origin, made out by approved exporters, to the Agreement between 
the European Economic Community, of the one part, and the Swiss Confederation, 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  Article  29  of  the  Agreement  between  the  European  Economic  Community,  of  the 
one  part,  and  the  Swiss  Confederation,  of  the  other  part,  provides  that  the  Joint  Committee 
may decide to make recommendations, 

HAS DECIDED AS FOLLOWS: 

Sole Article 

The  position  to  be  adopted  by  the  Community  within  the  Joint  Committee  established  by 
virtue of the Agreement between the European Economic Community, of the one part, and the 
Swiss  Confederation,  of  the  other  part,  on  a  recommendation  on  the  re-importation  of 
originating products and on the acceptance by the Contracting Parties of simplified proofs of 
origin, made out by approved exporters, is that defined in the attached draft recommendation 
of the EC-Switzerland Joint Committee. 

Done at Brussels, 

For the Council 
The President 

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Draft 

RECOMMENDATION No …/2005 of the EC – SWITZERLAND JOINT 
COMMITTEE 

on the re-importation of originating products and the acceptance by the Contracting 
Parties of simplified proofs of origin, made out by approved exporters 

of … 

THE JOINT COMMITTEE, 

Having  regard  to  the  Agreement  between  the  European  Economic  Community,  of  the  one 
part,  and  the  Swiss  Confederation,  of  the  other  part,  hereinafter  referred  to  as  ‘the 
Agreement’, signed in Brussels on 22 July 1972, and in particular Article 29 thereof ; 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  Agreement  does  in  principle  not  make  any  distinction  between  products 
originating in one Party or the other, in order to define the scope of the abolition of the 
customs duties and charges having an equivalent effect, and of the prohibition of the 
introduction of new ones provided for by the Agreement. Such a distinction is made 
only regarding the preferential treatment applicable to certain products; 

The Contracting Parties to the Agreement share the understanding that this elimination 
of  customs  duties  applies  at  import  into  the  Community  or  into  Switzerland  of  the 
products  concerned,  whether  these  products  are  originating  in  Switzerland  or  in  the 
Community, exclusively in the cases were a reciprocal elimination of customs duties 
applies without making a distinction between products originating in one Party or the 
other; 

Article  22  (1)  of  Protocol  No  3  of  the  Agreement  establishes  that  the  customs 
authorities of the exporting country may authorise any exporter, hereinafter referred to 
as  'approved  exporter',  who  makes  frequent  shipments  of  products  under  this 
Agreement to make out invoice declarations; 

The  Contracting  Parties  agree  that,  in  the  context  of  the  Agreement,  the  approved 
exporter  authorisation  is  issued  either  by  the  customs  authorities  of  the  Swiss 
Confederation  or  by  the  customs  authorities  of  a  Member  State  of  the  European 
Community, which is not necessarily the Member State where the invoice declaration 
was made out nor the Member State from which the goods were supplied; 

(5) 

It  is  appropriate,  for  the  proper  functioning  of  the  Agreement,  recommend  to  the 
Contracting Parties a consistent interpretation of the Agreement; 

EN 

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HAS ADOPTED THIS RECOMMENDATION: 

Sole Article 

The Contracting Parties shall apply the Agreement, as from 1 June 2004, in conformity with 
the  two  interpretative  notes  in  the  annex  to  this  Recommendation,  which  concern  the  re-
importation  of  originating  products  and  the  acceptance  by  the  Contracting  Parties  of 
simplified proofs of origin, made out by approved exporters. 

Done at […], 

For the Joint Committee 

The Chairman 

EN 

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Interpretative Note 

The  experts  representing  the  services  of  the  European  Commission 
and the Swiss Federal Administration, 

HAVING  IN  MIND  that  the  Agreement  of  22  July  1972  between  the  European 
Economic Community and the Swiss Confederation aims, in particular, at promoting, 
through the expansion of reciprocal trade, the harmonious development of economic 
relations  between  the  Parties  and  that  such  an  objective  mainly  implies  the 
progressive elimination of the obstacles to substantially all their trade, in accordance 
with the provisions of the GATT concerning the establishment of free trade areas, 

CONSIDERING  that,  in  tariff  terms,  this  elimination  implies  for  a  Party,  subject  to 
conditions specific to certain products, to abolish customs duties and charges having 
equivalent  effect  and  to  prohibit  the  introduction  of  new  customs  duties  or  charges 
having  equivalent  effect  on  products  originating  in  the  other  Party,  covered  by  the 
Agreement, 

POINTING OUT, following a joint analysis of the specific terms of the Agreement, in 
particular  Article  2  thereof,  read  in  combination  with  Articles  3  to  7,  that  it  did  not 
make any distinction between products originating in one Party or the other, in order 
to  define  the  scope  of  the  abolition  of  the  customs  duties  and  charges  having  an 
equivalent  effect  –  as  completed  on  1  July  1977  –  and  of  the  prohibition  of  the 
introduction  of  new  ones,  such  a  distinction  being  made,  however,  regarding  the 
preferential treatment to apply to certain products, 

HAVE AGREED as follows: 

"The abolition of the customs duties and charges having an equivalent effect, as 
well  as  the  prohibition  of  the  introduction  of  new  customs  duties  and  charges 
having  an  equivalent  effect,  as  provided  for  in  the  Agreement  between  the 
European  Economic  Community  and  the  Swiss  Confederation  of  22  July  1972, 
apply  at  import  into  the  Community  or  into  Switzerland  of  the  products 
concerned,  whether  these  products  are  originating  in  Switzerland  or  in  the 
Community. 

This  interpretation  is  applicable  only  to  products  which  benefit  from  the 
reciprocal  elimination  of  customs  duties.  It  is  therefore  not  applicable  to 
products  originating  in  one  Party,  for  which  the  Agreement  has  defined  a 
preferential tariff treatment by making reference only to products originating in 
the other Party." 

EN 

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Interpretative Note 

The experts representing the services of the European Commission and the 
Swiss Federal Administration, 

CONSIDERING the terms of Article 22 (1) of Protocol 3 of the Agreement of 22 July 1972 
between  the  European  Economic  Community  and  the  Swiss  Confederation,  according  to 
which  the  customs  authorities  of  the  exporting  country  may  authorise  any  exporter, 
hereinafter  referred  to  as  'approved  exporter',  who  makes  frequent  shipments  of  products 
under  this  Agreement  to  make  out  invoice  declarations  irrespective  of  the  value  of  the 
products concerned. An exporter seeking such authorisation must offer to the satisfaction of 
the  customs  authorities  all  guarantees  necessary  to  verify  the  originating  status  of  the 
products as well as the fulfilment of the other requirements of this Protocol, 

CONSIDERING Article 8 of Council Regulation (EC) No 1207/2001 of 11.6.2001, 

HAVE AGREED as follows: 

« The phrase customs authorities of the exporting country refers, on the one hand, to the 
customs authorities of the Swiss Confederation and, on the other hand, to the customs 
authorities  of  the  Member  State  of  the  European  Community  having  issued  the 
authorisation,  without  taking  into  consideration  either  the  Member  State  where  the 
invoice  declaration  was  made  out  or  the  Member  State  from  which  the  goods  were 
supplied » 

EN 

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