Proposal for a Council Decision concerning the conclusion of an agreement between the European Community and the Russian Federation on trade in certain steel products
Date: 2007-09-13
Institutions: European Commission
Subjects: Russia, agreement (EU), import restriction, iron and steel product, quantitative restriction, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.9.2007 
COM(2007) 517 final 

2007/0191 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of an agreement between the European Community and the 
Russian Federation 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  Russian 
Federation 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 Russian Federation in certain 
steel products covered the period from January 2005 to 31 December 2006. By its Decision of 
13  November  2006,  the  Council  authorised  the  Commission  to  negotiate  a  new  Agreement. 
Negotiations  have  been  completed  successfully  leading  to  the  initialling  of  the  new 
Agreement on 23 June 2007. 

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  2008  or  until 
Russia’s  accession  to  the  WTO,  whichever  date  is  earlier.  If  necessary,  the  Agreement  is 
renewed annually. 

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2007/0191 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of an agreement between the European Community and the 
Russian Federation 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 Commission, 

Whereas: 

(1) 

(2) 

(3) 

The Partnership and Cooperation Agreement between the European Communities and 
their Member States and the Russian Federation1, hereinafter referred to as “the PCA”, 
entered into force on 1 December 1997. 

Article 21(1) of the PCA provides that trade in certain steel products is governed by 
Title  III  of  that  Agreement  with  the  exception  of  Article  15  thereof,  and  by  the 
provisions of an agreement on quantitative arrangements. 

For the years 1995-2006, 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 

1. 

2. 

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

The text of the Agreement is attached to this Decision. 

1 

OJ L 327, 28.11.1997, p. 3. 

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Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement in order to bind the Community. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

AGREEMENT 
BETWEEN THE EUROPEAN COMMUNITY AND THE RUSSIAN FEDERATION 
ON TRADE IN CERTAIN STEEL PRODUCTS 

THE EUROPEAN COMMUNITY,  

of the one part, and 

THE RUSSIAN FEDERATION, 

of the other part, 

being the Parties to this Agreement, 

Whereas the Partnership and Cooperation Agreement (hereinafter referred to as the  “PCA”) 
establishing  a  partnership  between  the  European  Communities  and  their  Member  States,  of 
the  one  part,  and  the  Russian  Federation,  of  the  other  part2,  entered  into  force  on 
1 December 1997; 

Whereas the Parties are desirous to promote the orderly and equitable development of trade in 
steel between the European Community (hereinafter referred to as “the Community”) and the 
Russian Federation (hereinafter referred to as “Russia”); 

Whereas  Article  21  of  the  PCA  provides  that  trade  in  the  steel  products  of  the  former 
European Coal and Steel Community, hereinafter referred to as “ECSC”, shall be governed by 
Title III, save for Article 15 thereof, and by the provisions of an agreement;  

Whereas this Agreement is the agreement referred to in Article 21 of the PCA; 

Bearing in mind the process of accession of Russia to the World Trade Organisation (WTO) 
and Community support for the integration of Russia into the international trading system;  

Whereas  for  the  years  1995-2006  trade  in  certain  steel  products  was  the  subject  of 
agreements;  it  is  appropriate  to  put  in  place  a  new  agreement  which  takes  account  of 
developments in the relationship between the Parties;  

Whereas  this  Agreement  should  be  accompanied  by  cooperation  between  the  Parties  in 
respect  of  their  steel  industries,  including  appropriate  exchanges  of  information,  within  the 
Contact Group on coal and steel as foreseen in Protocol 1 to the PCA, 

2 

OJ L 327, 28.11.1997, p. 3. 

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HAVE AGREED AS FOLLOWS: 

Article 1 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

1. 

This Agreement applies to trade in former ECSC steel products. 

Trade in steel products set out in Annex I may be subject to quantitative limits. 

Trade  in  steel  products  not  set  out  in  Annex  I  shall  not  be  subject  to  quantitative 
limits. 

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 

The Parties agree to establish and maintain for the period of validity of the present 
Agreement for each calendar year quantitative arrangements fixing the limits set out 
in Annex II on Russian exports to the Community of the products set out in Annex I. 
Such exports shall be subject to a double-checking system as specified in Protocol A 
attached to this Agreement. 

The Parties agree that imports into the Community from Russia of products included 
in Annex I as from 1 January 2007 until the entry into force of this Agreement shall 
be deducted from the quantitative limits set out in Annex II. 

Imports  of  quantities  in  excess  of  those  mentioned  in  Annex  II  shall  be  authorised 
where the Community's steel Indus try is unable to meet the internal demand which 
results  in  a  shortage  of  supply  for  one  or  more  products  listed  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 quantitative limits set out in Annex II. 

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. 

Article 3 

Imports  into  the  customs  territory  of  the  Community  for  free  circulation  of  the 
products  set  out  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 Russia, and to proof of 
origin in accordance with the provisions of Protocol A attached to this Agreement. 

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2. 

3. 

4. 

Imports into the customs territory of the Community of the products set out 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. 

Carry-over to the corresponding quantitative limits for the following calendar year of 
the amounts of quantitative limits not used during the first calendar year is authorized 
up to 7% of the relevant quantitative limit set out in Annex II for a product group in 
question for the year in which it was not used. Russia shall notify the Community no 
later than 31 March of the following year if it intends to make use of this provision.  

Up to 7% of the quantitative limit for a given  product  group  may  be  transferred  to 
one  or  more  other  groups  within  the  same  product  category,  that  is  to  say  within 
categories  SA  or  SB.  Furthermore,  transfers  between  SA  and  SB  categories  are 
permitted  up  to  25000  tonnes.  In  addition,  up  to  another  25000  tonnes  might  be 
transferred  between  SA  and  SB  following  agreement  between  the  Parties.  After 
Russia's request to transfer this additional 25000 tonnes, the Community shall inform 
Russia  of  its  decision  within  a  reasonable  period  of  time,  possible  within  60  days 
from the date of the receipt of the request. Such transfers can take place once in the 
course of a calendar year. Any adjustments to the quantitative limits resulting from 
transfers  shall  only  affect  the  calendar  year  in  progress.  Russia  shall  notify  the 
Community no later than 1 May if it intends to make use of this provision.  

1. 

With a view to rendering the double-checking system as effective as possible and to 
minimize the possibilities for abuse and circumvention: 

Article 4 

– 

– 

the  Community  authorities  shall  inform  Russia  by  the  28th  of  each  month  of 
the import authorizations issued during the preceding month; 

the Russian authorities shall inform the Community by the 28th of each month 
of the export licences issued during the preceding month. 

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, the Community and Russia agree to take all necessary 
steps to prevent, to investigate and to take any necessary legal and/or administration 
action  against  circumvention,  notably  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. 
Accordingly,  the  Community  and  Russia  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.  

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3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

Should  the  Community  believe  on  the  basis  of  information  available  that  this 
Agreement  is  being  circumvented,  the  Community  may  request  consultations  with 
Russia which shall be held immediately. 

Pending the results of the consultations referred to in paragraph 3, Russia shall, as a 
precautionary  measure,  and  if  so  requested  by  the  Community,  take  all  necessary 
measures  to  ensure  that,  where  sufficient  evidence  of  circumvention  is  provided, 
adjustments of the quantitative limits liable to be agreed following the consultations 
referred  to  in  paragraph  3,  shall  be  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. 

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: 

(a)  where  there  is  sufficient  evidence  that  products  covered  by  this  Agreement 
originating in Russia have been imported in circumvention of this Agreement, to set 
off  the  relevant  quantities  against  the  quantitative  limits  established  under  the 
Agreement.  

(b)  where  sufficient  evidence  shows  false  declaration  concerning  quantities 
description  or  classification  has  occurred,  to  refuse  to  import  the  products  in 
question. 

The Parties agree to cooperate fully to prevent and to address effectively all problems 
arising from circumvention of this Agreement. 

Article 5 

The  quantitative  limits  established  under  this  Agreement  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. 

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

Russia shall endeavour to ensure that exports into the Community of products set out 
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. 

In addition to the obligation contained in paragraph 3, where licences issued by the 
Russian 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 Russian authorities may continue to issue export licences for 

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1. 

2. 

3. 

1. 

2. 

1. 

the products set out in Annex I provided they do not exceed the quantities set out in 
Annex II. 

Article 6 

Where  any  product  set  out  in  Annex I is being imported into the Community from 
Russia  under  such  conditions  as  to  cause  or  threaten  to  cause  substantial  injury  to 
Community producers of like products, the Community shall supply Russia with all 
relevant information with a view to seeking a solution acceptable to both Parties. The 
Parties shall commence consultations promptly. 

Should the consultations referred to in paragraph 1 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.  

Notwithstanding the provisions of this Agreement, the provisions of Article 18 of the 
PCA shall apply. 

Article 7 

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”.  Any  amendment  to  the  combined 
nomenclature  (CN)  made  in  accordance  with  the  procedures  in  force  in  the 
Community concerning the products set out in Annex I or any decision relating to the 
classification of goods shall not have the effect of reducing the quantitative limits of 
the products set out Annex II. 

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 Russia and shall not have the effect of reducing 
the quantitative limits of this Agreement. The procedures for control of the origin of 
the  products  referred  to  above  are  laid  down  in  Protocol  A  attached  to  this 
Agreement. 

Article 8 

Without  prejudice  to  the  periodic  exchange  of  information  on  export  licences  and 
import  authorizations  pursuant  to  Article  4  (1),  the  Parties  agree  to  exchange 
available statistical information relating to trade in the products set out 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 authorizations 
issued pursuant to Article 3 and 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.  

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1. 

2. 

3. 

1. 

2. 

3. 

4. 

5. 

Article 9 

Without prejudice to provisions concerning consultations provided for 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 
Party. Any consultations shall take place in a spirit of cooperation and with a desire 
to reconcile the differences between the Parties. 

Where  this  Agreement  provides  that  consultations  shall  be  held  immediately,  the 
Parties undertake to use all reasonable means to ensure that this is achieved. 

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

Article 10 

This Agreement shall enter into force on the day of its signature. It shall remain in 
force until 31 December 2008 subject to any modifications agreed by the Parties and 
unless it is denounced or terminated in accordance with the provisions of paragraphs 
3 or 4. After 31 December 2008 this Agreement shall be automatically renewed year 
by  year  provided  that  neither  Party  gives  the  other  Party  written  notice  of 
denunciation of the Agreement at least six months before it expires. With each yearly 
renewal, quantities in every product group shall be increased by 2,5%. 

Either  Party  may  at  any  time  propose  modifications  to  this  Agreement  which  shall 
require the mutual consent of the Parties and take effect as agreed by them. 

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 limits established by this Agreement shall be reduced on a 
pro  rata  basis  up  to  the  date  on  which  denunciation  takes  effect  unless  the  Parties 
decide otherwise. 

In the event that Russia accedes to the WTO before the expiration of this Agreement, 
the Agreement shall be terminated as of the date of accession. 

The  Annexes,  the  agreed  minute,  the  declarations  and  Protocol  A  attached  to  this 
Agreement shall form an integral part thereof.  

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This  Agreement  shall  be  drawn  up  in  duplicate  in  the  Bulgarian,  Czech,  Danish,  Dutch, 
English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, 
Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovenian,  Spanish,  Swedish  and  Russian 
languages, each of these texts being equally authentic. 

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

For the European Community 

For the Russian Federation 

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SA Flat-rolled products 

SA1. Coils 

7208 10 00 00 
7208 25 00 00 
7208 26 00 00 
7208 27 00 00 
7208 36 00 00 

7208 37 00 10 

7208 37 00 90 
7208 38 00 10 
7208 38 00 90 
7208 39 00 10 
7208 39 00 90 
7211 14 00 10 
7211 19 00 10 
7219 11 00 00 
7219 12 10 00 

7219 12 90 00 
7219 13 10 00 
7219 13 90 00 
7219 14 10 00 
7219 14 90 00 

7225 30 10 00 
7225 30 30 10 
7225 30 90 00 

7225 40 15 10 
7225 50 20 10 

ANNEX I  

7209 17 90 00 

7212 10 10 00 

7209 18 10 00 
7209 18 91 00 
7209 18 99 00 
7209 25 00 00 
7209 26 10 00 
7209 26 90 00 

7209 27 10 00 
7209 27 90 00 

7209 28 10 00 
7209 28 90 00 
7209 90 80 10 

7210 11 00 10 
7210 12 20 10 
7210 12 80 10 
7210 20 00 10 
7210 30 00 10 

7210 41 00 10 
7210 49 00 10 
7210 50 00 10 
7210 61 00 10 
7210 69 00 10 

7210 70 10 10 
7210 70 80 10 
7210 90 30 10 
7210 90 40 10 

7210 90 80 91 

7211 14 00 90 
7211 19 00 90 
7211 23 30 91 

7211 23 80 91 
7211 29 00 10 
7211 90 80 10 

7212 10 90 11 
7212 20 00 11 
7212 30 00 11 
7212 40 20 10 
7212 40 20 91 
7212 40 80 11 

7212 50 20 11 
7212 50 30 11 

7212 50 40 11 
7212 50 61 11 
7212 50 69 11 
7212 50 90 13 

7219 35 10 00 
7219 35 90 00 

7225 40 12 90 
7225 40 90 00 

SA4. Alloyed 
products 

7226 20 00 10 
7226 91 20 00 
7226 91 91 00 

7212 60 00 11 
7212 60 00 91 

7226 91 99 00 
7226 99 70 10 

7219 21 10 00 

7219 21 90 00 
7219 22 10 00 
7219 22 90 00 
7219 23 00 00 

SA5. Alloyed 
quarto plates 

7225 40 12 30 

7225 40 40 00 

7219 24 00 00 
7219 31 00 00 

7225 40 60 00 
7225 99 00 10 

SA6. Alloyed 
cold rolled and 
coated sheets 

7225 50 80 00 
7225 91 00 10 
7225 92 00 10 
7226 92 00 10 

7219 32 10 00 
7219 32 90 00 

7219 33 10 00 
7219 33 90 00 

7219 34 10 00 
7219 34 90 00 

SA2. Heavy 
Plate 

7208 40 00 10 

7208 51 20 10 
7208 51 20 91 
7208 51 20 93 

7208 51 20 97 
7208 51 20 98 

7208 51 91 00 

7208 51 98 10 
7208 51 98 91 
7208 51 98 99 
7208 52 91 00 

7208 52 10 00 
7208 52 99 00 

7208 53 10 00 

7211 13 00 00 

SA3. Other flat 
rolled products 

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

7208 90 80 10 

7209 15 00 00 

7209 16 10 00 
7209 16 90 00 
7209 17 10 00 

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7228 80 00 10 
7228 80 00 90 

7301 10 00 00 

SB Long 
products 

SB1. Beams 

7207 19 80 10 
7207 20 80 10 

7216 31 10 00 

7216 31 90 00 

7216 32 11 00 
7216 32 19 00 
7216 32 91 00 
7216 32 99 00 
7216 33 10 00 
7216 33 90 00 

SB2. Wire rod 

7213 10 00 00 
7213 20 00 00 
7213 91 10 00 
7213 91 20 00 
7213 91 41 00 
7213 91 49 00 
7213 91 70 00 
7213 91 90 00 
7213 99 10 00 
7213 99 90 00 

7221 00 10 00 
7221 00 90 00 

7227 10 00 00 
7227 20 00 00 
7227 90 10 00 
7227 90 50 00 
7227 90 95 00 

SB3. Other 
longs 

7207 19 12 10 
7207 19 12 91 
7207 19 12 99 
7207 20 52 00 

7214 20 00 00 
7214 30 00 00 
7214 91 10 00 
7214 91 90 00 
7214 99 10 00 
7214 99 31 00 
7214 99 39 00 
7214 99 50 00 
7214 99 71 00 

7214 99 79 00 

7214 99 95 00 

7215 90 00 10 

7216 10 00 00 
7216 21 00 00 
7216 22 00 00 
7216 40 10 00 
7216 40 90 00 
7216 50 10 00 

7216 50 91 00 
7216 50 99 00 
7216 99 00 10 

7218 99 20 00 

7222 11 11 00 
7222 11 19 00 
7222 11 81 00 

7222 11 89 00 

7222 19 10 00 
7222 19 90 00 
7222 30 97 10 
7222 40 10 00 
7222 40 90 10 
7224 90 02 89 

7224 90 31 00 
7224 90 38 00 

7228 10 20 00 

7228 20 10 10 
7228 20 10 91 
7228 20 91 10 
7228 20 91 90 
7228 30 20 00 
7228 30 41 00 
7228 30 49 00 
7228 30 61 00 
7228 30 69 00 
7228 30 70 00 
7228 30 89 00 
7228 60 20 10 
7228 60 80 10 
7228 70 10 00 
7228 70 90 10 

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ANNEX II 

QUANTITATIVE LIMITS 

(tonnes) 

Year 2007 

Year 2008 

1.042.090 

1.035.000 

270.820 

275.000 

565.770 

595.000 

94.860 

105.000 

20.460 

25.000 

Products 

SA. Flat products 

SA1. Coils 

SA2. Heavy plate 

SA3. Other flat products 

SA4. Alloyed products 

SA5. Alloyed quarto plates 

SA6. Alloyed cold-rolled and coated sheets 

105.000 

110.000 

SB. Long products 

SB1. Beams 

SB2. Wire rod 

SB3. Other long products 

55.800 

55.000 

275.000 

324.000 

474.200 

507.000 

Note:  SA and SB are product categories 

SA1 to SA6 and SB1 to SB3 are product groups 

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In the context of this Agreement, the Parties agree that: 

Agreed minute No 1 

– 

– 

– 

– 

in pursuance of the exchange of information provided for in Article 4(1) concerning 
export licences and import authorizations, the Parties will supply that information by 
reference to the Member States in addition to the Community as a whole, 

if  the  Parties  are  unable  to  reach  a  satisfactory  solution  during  the  consultations 
provided  for  in  Article  5(2),  Russia  will  cooperate,  if  so  requested  by  the 
Community, by not issuing export licences for an intended destination where imports 
pursuant  to  such  licences  would  aggravate  the  problems  resulting  from  sudden  and 
prejudicial  changes  in  traditional  trade  flows,  it  being  understood  that  Russia  may 
continue to issue licences for other Community destinations,  

the Parties will cooperate closely in order to prevent sudden and prejudicial changes 
in  traditional  trade  flows  in  respect  of  coils  (product  group  SA1);  Russia  will  give 
priority to deliveries to its traditional customers for these products in order to avoid 
disturbing  the  Community  market,  and  both  Parties  will  inform  the  other 
immediately in the event of any emerging problems, and 

Russia 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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Declaration No 1 

In  the  case  Russian  operators  were  to  set  up  service  centers  in  the  Community  that  would 
further process products covered by this Agreement imported from Russia , Russia declares 
that it could request an increase of quantitative limits mentioned in Annex II. In this case, the 
Community will examine such request of increase and the Parties will enter into consultations 
if required.  

Declaration No 2 

The  Parties  declare  that  they  aim  at  achieving  complete  liberalisation  of  trade  in  steel 
products.  Both  Parties  also  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 Russia, the Community shall 
provide  technical  assistance,  within  relevant  earmarked  budgetary  limits,  to  help  Russia  to 
adopt and implement legislative provisions compatible with those adopted and applied by the 
Community. The technical assistance shall be channelled through detailed projects agreed by 
both Parties. 

Declaration No 3 

The  Parties  agree  that  they  shall  not  apply  with  respect  to  the  other  Party  quantitative 
restrictions,  customs  duties,  charges  or  any  similar  measures  on  the  export  of  ferrous  waste 
and  scrap  under  the  EC  Combined  Nomenclature  heading  7204,  without  prejudice  to  the 
provisions of Article 19 of the PCA. 

Without  prejudice  to  the  previous  paragraph,  Russia  applies  currently  a  tax  on  exports  of 
ferrous waste and scrap under the EC Combined Nomenclature 7204. The tax is currently set 
at  15%  but  not  less  than  €  15  per  tonne  for  all  products  of  7204,  except  for  product 
7204 41 00 where the tax is set at 5%.  

The Parties agree to continue the discussion to find a satisfactory solution. Furthermore, it is 
understood  that  the  quantitative  limits  set  out  in  Annex  II  of  the  Agreement  would  be 
increased  by  12%  if  Russia  removes  completely  the  tax  or  by  a  lower  percentage  to  be 
determined if such tax is reduced, provided that  no other measures that  would constitute  an 
obstacle to free export are introduced by Russia. 

The  products  of  particular  interest  for  the  Community  are:  7204 10 00,  7204 21 10, 
7204 41 10, 7204 49 10, 7204 49 30, 7204 49 91 and 7204 49 99. 

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PROTOCOL A 

TITLE I 

CLASSIFICATION 

Article 1 

The  competent  authorities  of  the  Community  undertake  to  inform  Russia  of  any  changes  in 
the  combined  nomenclature  (CN)  with  complete  description  of  products  covered  by  this 
Agreement at least one month before the date of their entry into force in the Community. 

TITLE II 

ORIGIN 

Article 2 

1. 

2. 

Products covered by this Agreement originating in Russia (origin as defined by the 
relevant  Community  Regulations)  to  be  exported  to  the  Community  in  accordance 
with  the  arrangements  established  by  this  Agreement  shall  be  accompanied  by  a 
certificate of Russian origin conforming to the model annexed to this Protocol. 

The  certificate  of  origin  shall  be  certified  by  the  competent  Russian  organizations 
authorized  under  Russian  legislation  as  to  whether  the  products  in  question  can  be 
considered products originating in that country. 

Article 3 

The  certificate  of  origin  shall  be  issued  only  on  application  in  writing  by  the  exporter  or, 
under  the  exporter's  responsibility,  by  his  authorized  representative.  The  competent  Russian 
organizations authorized under Russian legislation shall ensure that the certificate of origin is 
properly  completed  and  for  this  purpose  they  shall  request  for  any  necessary  documentary 
evidence or carry out any checking 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 necessary formalities for importing the products shall not ipso facto cast doubt upon 
the statements in the certificate. 

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TITLE III 

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE 
LIMITS 

SECTION I 

Exportation 

Article 5 

The appropriate Russian governmental authorities shall issue an export licence in respect of 
all consignments from Russia of steel products covered by the Agreement up to the relevant 
quantitative limits set out in Annex II to the Agreement. 

Article 6 

1. 

2. 

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. 

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 to 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. 

2. 

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. 

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 as evidenced by 
their bill of lading or other transport document. 

SECTION II 

Importation 

Article 9 

The release for free circulation into the Community of the products covered by the Agreement 
shall be subject to the presentation of an import authorization. 

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Article 10 

1. 

2. 

3. 

4. 

The presentation by the importer of an export licence shall be made not later than 31 
March  of  the  year  following  that  in  which  the  goods  covered  by  the  licence  have 
been shipped. 

The  competent  authorities  of  the  Community  shall  issue  the  import  authorization 
referred to in Article 9, within 10 working days of the presentation by the importer of 
the original of the corresponding export licence. 

The import authorizations shall be valid for four months from the date of their issue 
for importation throughout the customs territory of the Community. 

The  competent  authorities  of  the  Community  shall  cancel  the  import  authorization 
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 11 

If  the  competent  authorities  of  the  Community  find  that  the  total  quantity  of  the  products 
covered by export licences issued by the competent authorities of Russia exceed the limits set 
out in Annex II to the Agreement, the Community authorities shall suspend the further issue 
of  import  authorizations.  In  this  event,  the  competent  authorities  of  the  Community  shall 
immediately inform the competent authorities of Russia 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 12 

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. 

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2. 

Each  document  shall  bear  a  standardized 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: RU, 

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

BE  = 

Belgium 

BG  = 

Bulgaria 

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 

RO  = 

Romania 

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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. ‘7’ for year 2007, 

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 13 

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 14 

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 competent Russian authorities which issued the 
document 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 15 

The Community and Russia 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. 

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Article 16 

In  order  to  ensure  the  correct  application  of  this  Protocol,  the  Community  and  Russia  offer 
mutual  assistance  for  the  checking  of  the  authenticity  and  the  accuracy  of  export  licences 
issued  and  certificates  of  origin  issued  or  of  any  declarations  made  within  the  terms  of  this 
Protocol. 

Article 17 

Russia  shall  send  the  Community  (European  Commission)  the  names  and  addresses  of  the 
competent  Russian  governmental  authorities  which  are  authorized  to  issue  and  to  verify 
export licences and the competent Russian organizations authorized under Russian legislation 
to issue certificates of origin together with specimens of the stamps and signatures they use. 
Russia  shall  also  notify  the  Community  (European  Commission)  of  any  change  in  these 
particulars. 

1. 

2. 

3. 

4. 

5. 

6. 

Article 18 

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. 

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 Russian 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. 

The  provisions  of  paragraph  1  shall  also  apply  to  subsequent  verifications  of  the 
certificates of origin provided for in Article 2 of this Protocol. 

The results of the subsequent verifications carried out in accordance with paragraphs 
1 and 2 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  or  licence  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. 

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 
competent  Russian  organizations  for  at  least  one  year  following  the  end  of  the 
Agreement. 

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. 

EN 

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1. 

2. 

3. 

4. 

5. 

Article 19 

Where  the  verification  procedure  referred  to  in  Article  18  or  where  information 
available  to  the  competent  authorities  of  the  Community  or  of  Russia  indicates  or 
appears to indicate that the provisions of this Agreement are being circumvented or 
infringed, the two Parties shall cooperate closely and with the appropriate urgency in 
order to prevent any such circumvention or infringement. 

To this end, the appropriate Russian 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.  Russia  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. 

By  agreement  between  the  Community  and  Russia,  officials  designated  by  the 
Community may be present at the inquiries referred to in paragraph 2. 

In pursuance of the cooperation referred to in paragraph 1, the competent authorities 
of the  Community and  Russia  shall exchange any information considered by either 
Party to be of use in preventing circumvention or infringement of the provisions of 
this Agreement. These exchanges may include information on the trade in the type of 
products covered by this Agreement between Russia 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 Russia prior to their importation into 
the  Community.  This  information  may  include,  at  the  request  of  the  Community, 
copies of all relevant documentation, where available. 

Where  sufficient  evidence  shows  that  the  provisions  of  this  Protocol  have  been 
circumvented or infringed, the competent authorities of Russia and the Community 
may  agree  to  take  any  measures  necessary  to  prevent  a  recurrence  of  such 
circumvention or infringement. 

EN 

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1 Exporter (name, full address, country) 

ORIGINAL 

2 

No 

EXPORT LICENCE 

3 Year 

4 Product group 

5 Consignee (name, full address, country) 

EXPORT LICENCE 

(for certain 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 TARIC 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 
address, country) 

(name, 

full 

At …………………………………. on ……………………………………… 

(Signature) 

(Stamp) 

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1 Exporter (name, full address, country) 

COPY 

2 

No 

EXPORT LICENCE 

3 Year 

4 Product group 

5 Consignee (name, full address, country) 

EXPORT LICENCE 

(for certain 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 TARIC 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 
address, country) 

(name, 

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CERTIFICATE OF ORIGIN 

1 Exporter (name, full address, country) 

ORIGINAL 

2 

3 Year 

4 Product group 

No 

5 Consignee (name, full address, country) 

CERTIFICATE OF ORIGIN 

(for certain 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 
address, country) 

(name, 

full 

At …………………………………. on ……………………………………… 

(Signature) 

(Stamp) 

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CERTIFICATE OF ORIGIN 

1 Exporter (name, full address, country) 

COPY 

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3 Year 

4 Product group 

No 

5 Consignee (name, full address, country) 

CERTIFICATE OF ORIGIN 

(for certain 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 
address, country) 

(name, 

full 

At …………………………………. on ……………………………………… 

(Signature) 

(Stamp) 

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