Proposal for a Council Regulation amending Regulation (EC) No 2007/2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process
Date: 2007-02-06
Institutions: European Commission
Subjects: Albania, North Macedonia, Western Balkans, association agreement (EU), economic stabilisation, exemption from customs duties, market access, single market

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.2.2007 
COM(2007) 42 final 

2007/0015 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2007/2000 introducing exceptional trade measures for 
countries and territories participating in or linked to the European Union's Stabilisation 
and Association process 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

I. CONTEXT 

1. 

2. 

3. 

By  Regulation  (EC)  No  2007/20001,  the  European  Communities  have  granted 
exceptional  unlimited  duty-free  access  to  the  EU  market  for  nearly  all  products 
originating  in  the  countries  and  territories  benefiting  from  the  Stabilisation  and 
Association process.  

The key aim of these measures is to revitalise the Western Balkan economies through 
a  privileged  access  to  the  EU  market.  In  turn,  economic  development  is  to  foster 
political stability in the entire region. 

In  accordance  with  the  EU  Stabilisation  and  Association  process,  the  granting  of 
these  exceptional  trade  preferences  is  subject  to  certain  conditions,  namely  the 
respect  by  the  beneficiary  countries  and  territories  of  fundamental  principles  of 
democracy  and  human  rights,  the  readiness  of  the  countries  concerned  to  develop 
economic  relations  between  themselves  and  to  engage  in  economic  reforms  and 
regional integration through trade. Entitlement to the exceptional trade preferences is 
conditional on the beneficiaries’ involvement in effective administrative co-operation 
with the Community in order to prevent any risk of fraud. Finally, these exceptional 
trade preferences could only be maintained if the beneficiaries’ respected a standstill 
in customs duties and measures having equivalent effect to import trade originating 
in the EU. 

4. 

These trade preferences were granted for a period ending on 31 December 2005 and 
renewed in 2005 until the end of 2010. 

II. JUSTIFICATION FOR THIS PROPOSAL 

5. 

6. 

The  present  proposal  aims  at  modifying  the  current  system  of  trade  preferences  to 
take  into  account  the  signature  of  a  Stabilisation  and  Association  Agreement  with 
Albania and, pending the conclusion of ratification procedures, the entry into force of 
an  Interim  Agreement  on  trade  and  trade-related  matters  between  the  European 
Communities and Albania. 

Insofar as the Interim Agreement / Stabilisation and Association Agreement (SAA) 
grants  trade  concessions  to  Albania  on  the  same  products  identified  in  the 
autonomous trade preferences, these have to be withdrawn from Regulation (EC) No 
2007/2000.  These  concern  the  preferential  tariff  quotas  for  certain  wines,  sugar  as 
well  as  for  certain  fishery  products.  This  proposal  withdraws  the  preferential  tariff 
quota  on  sugar  from  the  Regulation  and  modifies  annex  I  of  the  Regulation,  by 
deducting insofar as is practicable the volume of the tariff quotas granted to Albania 
in  the  context  of  the  SAA  from  the  global  tariff  quota  levels  provided  for  in  the 
Regulation. 

1 

OJ  L  240,  23.9.2000,  p.1  Regulation  as  last  amended  by  Regulation  (EC)  No  1946/2005  (OJ  L  312, 
29.11.2005, p.1) 

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7. 

Following  the  conclusion  of  the  Stabilisation  and  Association  Agreement  with  the 
former  Yugoslav  Republic  of  Macedonia,  the  above  mentioned  modification 
concerning this country for concessions on certain fishery products was not made in 
a sufficiently consistent manner. It is therefore appropriate to also remove the former 
Yugoslav Republic of Macedonia from the list of beneficiaries for these concessions 
under  Regulation  (EC)  No  2007/2000,  following  the  same  principle  as  illustrated 
above for Albania. 

III. BUDGETARY IMPLICATIONS 

8. 

The Regulation does not incur costs charged to the EC budget. Its application would 
also not entail any losses of customs revenue compared to the current situation.  

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2007/0015 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2007/2000 introducing exceptional trade measures for 
countries and territories participating in or linked to the European Union's Stabilisation 
and Association process 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
133 thereof, 

Having regard to the proposal from the Commission2, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

2 
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Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional 
trade measures for countries and territories participating in or linked to the European 
Union's Stabilisation and Association process3 provides for unlimited duty free access 
to  the  Community  market  for  nearly  all  products  originating  in  the  countries  and 
territories benefiting from the Stabilisation and Association process 

A  Stabilisation  and  Association  Agreement  between  the  European  Communities  and 
its Member States of the one part and the  Republic  of  Albania of the other part was 
signed  in  Luxemburg  on  12  June  2006.  Pending  the  completion  of  the  procedures 
necessary  for  its  entry  into  force,  an  Interim  Agreement  between  the  European 
Community  and  the  Republic  of  Albania  covering  trade  and  trade-related  provisions 
was concluded and has entered into force on 1 December 20064. 

The Stabilisation and Association Agreements and the Interim Agreements establish a 
contractual  trade  regime  between  the  Community  and  the  beneficiary  countries.  The 
bilateral  trade  concessions  on  the  Community  side  are  equivalent  to  the  concessions 
applicable within the unilateral autonomous trade measures under Regulation (EC) No 
2007/2000.  

It  is  therefore  appropriate  to  amend  Regulation  (EC)  No  2007/2000  to  take  into 
account these developments. In particular it is appropriate to remove the Republic of 
Albania  from  the  list  of  beneficiaries  of  the  tariff  concessions  granted  for  the  same 
products under the contractual regime. In addition, it is necessary to adjust the global 

OJ C , , p. 
OJ L 240, 23.9.2000, p.1. Regulation as last amended by Council Regulation (EC) No 1946/2005 (OJ L 
312, 29.11.2005, p.1) 
OJ L 300, 31.10.2006, p.1 

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tariff  quota  volumes  for  specific  products  for  which  tariff  quotas  have  been  granted 
under the contractual regimes. 

(5) 

The Republic of Albania, the Republic of Croatia and the former Yugoslav Republic 
of Macedonia will remain  beneficiaries of Regulation (EC) No 2007/2000 insofar as 
that  Regulation  provides  for  concessions  which  are  more  favourable  than  the 
concessions existing under the contractual regimes. 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 2007/2000 is amended as follows: 

(1) 

Article 1 is replaced by the following: 

"Article 1 

Subject to the special provisions laid down in Articles 3 and 4, products originating in 
1. 
Bosnia  and  Herzegovina,  in  Montenegro  or  in  the  customs  territories  of  Serbia  or  Kosovo, 
other  than  those  of  heading  Nos  0102,  0201,  0202,  1604,  1701,  1702  and  2204  of  the 
Combined  Nomenclature,  shall  be  admitted  for  import  into  the  Community  without 
quantitative  restrictions  or  measures  having  equivalent  effect  and  with  exemption  from 
customs duties and charges having equivalent effect. 

Products originating in Albania, in the Republic of Croatia or in the former Yugoslav 
2. 
Republic of Macedonia will continue to benefit from the provisions of this Regulation when 
so indicated or for any measures provided in this Regulation which are more favourable than 
the  trade  concessions  provided  for  in  the  framework  of  bilateral  agreements  between  the 
European Community and these countries. 

3. 
Imports  of  sugar  products  under  heading  Nos  1701  and  1702  of  the  Combined 
Nomenclature  originating  in  Bosnia  and  Herzegovina,  in  Montenegro  or  in  the  customs 
territories of Serbia or Kosovo, shall benefit from concessions provided for in Article 4. " 

(2) 

Article 4, paragraph 4 is replaced by the following: 

Imports  of  sugar  products  under  heading  Nos  1701  and  1702  of  the  Combined 
"4. 
Nomenclature originating in Bosnia and Herzegovina, Montenegro and the customs territories 
of Serbia or Kosovo, shall be subject to the following annual duty-free tariff quotas: 

(a) 12 000 tonnes (net weight) for sugar products originating in Bosnia and Herzegovina; 

(b) 180 000 tonnes (net weight) for sugar products originating in Montenegro and the customs 
territories of Serbia or Kosovo." 

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(3) 

Annex I is replaced by the text in the Annex to this Regulation. 

Article 2 

The provisions of Regulation (EC) No 2007/2000 may be applied to goods which on the date 
of  entry  into  application  of  this  Regulation  are  either  in  transit  or  are  in  the  Community  in 
temporary  storage  in  customs  warehouses  or  in  free  zones  and  are  covered  by  proofs  of 
Albanian  origin  or  origin  of  the  former  Yugoslav  Republic  of  Macedonia  properly  issued 
before the entry into application of this Regulation according to the provisions of Commission 
Regulation (EEC) 2454/1993, articles 98-123. These proofs can be accepted by the customs 
authorities of the Member States within four months of the said date. 

This Regulation shall enter into force on the first day following that of its publication in the 
Official Journal of the European Union. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

"ANNEX I 

CONCERNING THE TARIFF QUOTAS REFERRED TO IN ARTICLE 4(1) 

Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording 
for the description of the products is to be considered as having no more than an indicative 
value,  the  preferential  scheme  being  determined,  within  the  context  of  this  Annex,  by  the 
coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be 
determined by application of the CN code and corresponding description taken together. 

Quota 
volume per 
year 1 

Beneficiaries 

Rate of duty 

70 tonnes  Bosnia and 

Exemption 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

Order 
No 

09.1571 

CN Code 

Description 

Trout (Salmo 
trutta, 
Oncorhynchus 
mykiss, 
Oncorhynchus 
clarki, 
Oncorhynchus 
aguabonita, 
Oncorhynchus 
gilae, 
Oncorhynchus 
apache and 
Oncorhynchus 
chrysogaster): 
live; fresh or 
chilled; frozen; 
dried, salted or in 
brine, smoked; 
fillets and other 
fish meat; flours, 
meals and pellets, 
fit for human 
consumption 

0301 91 10 

0301 91 90 

0302 11 10 

 0302 11 20 

0302 11 80 

0303 21 10 

0303 21 20 

0303 21 80 

0304 19 15 

0304 19 17 

ex 0304 19 19 

ex 0304 19 91 

0304 29 15 

 0304 29 17 

ex 0304 29 19 

ex 0304 99 21 

ex 0305 10 00 

ex 0305 30 90 

0305 49 45 

 ex 0305 59 80 

ex 0305 69 80 

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Order 
No 

CN Code 

Description 

Quota 
volume per 
year 1 

Beneficiaries 

Rate of duty 

120 tonnes  Bosnia and 

Exemption 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

Carp: live; fresh 
or chilled; frozen; 
dried, salted or in 
brine, smoked; 
fillets and other 
fish meat; flours, 
meals and pellets, 
fit for human 
consumption 

95 tonnes  Bosnia and 

Exemption 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

Sea bream 
(Dentex dentex 
and Pagellus 
spp.): live; fresh 
or chilled; frozen; 
dried, salted or in 
brine, smoked; 
fillets and other 
fish meat; flours, 
meals and pellets, 
fit for human 
consumption 

09.1573 

0301 93 00 

0302 69 11 

0303 79 11 

ex 0304 19 19 

ex 0304 19 91 

ex 0304 29 19 

ex 0304 99 21 

ex 0305 10 00 

ex 0305 30 90 

ex 0305 49 80 

ex 0305 59 80 

 ex 0305 69 80 

09.1575 

ex 0301 99 80 

0302 69 61 

0303 79 71 

ex 0304 19 39 

ex 0304 19 99 

ex 0304 29 99 

ex 0304 99 99 

ex 0305 10 00 

ex 0305 30 90 

ex 0305 49 80 

ex 0305 59 80 

ex 0305 69 80 

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Quota 
volume per 
year 1 

Beneficiaries 

Rate of duty 

80 tonnes  Bosnia and 

Exemption 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

Order 
No 

CN Code 

Description 

Sea bass 
(Dicentrarchus 
labrax): live; 
fresh or chilled; 
frozen; dried; 
salted or in brine, 
smoked; fillets 
and other fish 
meat; flours, 
meals and pellets, 
fit for human 
consumption 

09.1577 

ex 0301 99 80 

0302 69 94 

ex 0303 77 00 

ex 0304 19 39 

ex 0304 19 99 

ex 0304 29 99 

ex 0304 99 99 

ex 0305 10 00 

ex 0305 30 90 

ex 0305 49 80 

 ex 0305 59 80 

 ex 0305 69 80 

09.1579 

1604 13 11 

1604 13 19 

ex 1604 20 50 

Prepared or 
preserved 
sardines 

09.1561 

1604 16 00 

1604 20 40 

Prepared or 
preserved 
anchovies 

70 tonnes  Bosnia and 

6 % 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

260 tonnes  Bosnia and 

12.5 % 

Herzegovina, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

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Order 
No 

CN Code 

Description 

Wine of fresh 
grapes, of an 
actual alcoholic 
strength by 
volume not 
exceeding 15% 
vol, other than 
sparkling wine 

09.1515 

2204 21 79 

ex 2204 21 80 

 2204 21 84 

ex 2204 21 85 

2204 29 65 

ex 2204 29 75 

2204 29 83 

ex 2204 29 84 

Quota 
volume per 
year 1 

Beneficiaries 

Rate of duty 

145 000 hl2  Albania5, 

Exemption 

Bosnia and 
Herzegovina, 
Croatia3, 
former 
Yugoslav 
Republic of 
Macedonia4, 
Montenegro, 
customs 
territories of 
Serbia or 
Kosovo 

1 

One global volume per tariff quota accessible to imports originating in the beneficiaries. 

2 
applicable under order Nos 09.1588 and 09.1548, for certain wines originating in Croatia are increased. 

The  volume  of  this  global  tariff  quota  shall  be  reduced  if  the  quota  volumes  of  the  individual  tariff  quotas 

3 
Access for wine originating in the Republic of Croatia to this global tariff quota, is subject to the prior exhaustion 
of  the  individual  tariff  quotas  provided  for  in  the  Additional  Protocol  on  wine  concluded  with  Croatia.  These  individual 
tariff quotas are opened under order Nos 09.1588 and 09.1589. 

4 
Access for wine originating in the former Yugoslav Republic of Macedonia to this global tariff quota is subject to 
the  prior  exhaustion  of  the  individual  tariff  quotas  provided  for  in  the  Additional  Protocol  on  wine  concluded  with  the 
former Yugoslav Republic of Macedonia. These individual tariff quotas are opened under order Nos 09.1558 and 09.1559. 

5 
Access for wine originating in the Republic of Albania to this global tariff quota is subject to the prior exhaustion 
of  the  individual  tariff quotas  provided for  in  the  Additional  Protocol  on  wine  concluded with Albania.  These  individual 
tariff quotas are opened under order Nos 09.1512 and 09.1513. 

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