Proposal for a Council Regulation on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part, and for applying the Interim Agreement between the European Community, of the one part, and the Republic of Montenegro, of the other part
Date: 2007-09-13
Institutions: European Commission
Subjects: European Community, Montenegro, administrative cooperation, agricultural product, competition law, dumping, economic stabilisation, interim agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.9.2007 
COM(2007) 520 final 

2007/0193 (ACC) 

Proposal for a 

COUNCIL REGULATION 

on certain procedures for applying the Stabilisation and Association Agreement between 
the European Communities and their Member States, of the one part, and the Republic 
of Montenegro, of the other part, and for applying the Interim Agreement between the 
European Community, of the one part, and the Republic of Montenegro, of the other 
part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

A  Stabilisation  and  Association  Agreement  (SAA)  between  the  European  Communities  and 
their  Member  States,  of  the  one  part,  and  the  Republic  of  Montenegro,  of  the  other  part,  is 
planned to be signed in Luxembourg on the 15th of October 2007. It will enter into force on 
the 1st day of the second month following the date on which the Parties notify each other that 
their respective ratification procedures have been completed.  

The  Interim  Agreement  (IA)  between  the  European  Community  and  the  Republic  of 
Montenegro, signed on the same date to allow the early application of trade and trade-related 
provisions of the Stabilisation and Association Agreement (SAA), will enter into force on the 
1st day of the second month following the date on which the Parties notify each other that their 
respective ratification procedures have been completed. 

An  implementing  regulation  is  required  to  lay  down  the  procedures  to  ensure  the  correct 
implementation of the said Agreements provisions with reference to: concessions for fish and 
fishery  products,  tariff  reductions,  technical  adaptations,  general  safeguard  clause  and 
safeguard  clause  for  agricultural  and  fisheries  products,  shortage  clauses,  exceptional  and 
critical  circumstances,  dumping  and  subsidy,  competition,  fraud  and  administrative  co-
operation, management procedures and notification. 

It is therefore proposed that the Council adopt the attached regulation. 

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2007/0193 (ACC) 

Proposal for a 

COUNCIL REGULATION 

on certain procedures for applying the Stabilisation and Association Agreement between 
the European Communities and their Member States, of the one part, and the Republic 
of Montenegro, of the other part, and for applying the Interim Agreement between the 
European Community, of the one part, and the Republic of Montenegro, of the other 
part 

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 Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

A  Stabilisation  and  Association  Agreement  between  the  European  Communities  and 
their  Member  States,  of  the  one  part,  and  the  Republic  of  Montenegro,  of  the  other 
part,1 (hereinafter referred to as ‘SAA’) was signed on …………… . The SAA is in the 
process of ratification. 

On  ……………  the  Council  concluded  an  Interim  Agreement  on  trade  and  trade-
related matters between the European Community, of the one part, and the Republic of 
Montenegro,  of  the  other  part,2  (hereinafter  referred  to  as  the  ‘Interim  Agreement’) 
which provides for the early entry into force of the trade and trade-related provisions 
of the SAA. The Interim Agreement will enter into force on the first day of the second 
month following the date on which the Parties notify each other that their respective 
approval procedures have been completed 

It  is  necessary  to  lay  down  the  procedures  for  applying  certain  provisions  of  the 
Interim  Agreement.  Since  the  trade  and  trade-related  provisions  of  these  instruments 
are  to  a  very  large  extent  identical,  this  Regulation  should  also  apply  to  the 
implementation of the SAA after its entry into force. 

The  SAA  and  the  Interim  Agreement  stipulate  that  fishery  products  originating  in 
Montenegro may be imported into the Community at a reduced customs duty, within 
the limits of tariff quotas. It is therefore necessary to lay down provisions regulating 
the management of these tariff quotas. 

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2 

OJ C[ ],[]200.., p.[ ] 
OJ L[ ],[]200.., p. [ ] 

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(5)  Where  trade  defence  measures  become  necessary,  they  should  be  adopted  in 
accordance  with  the  general  provisions  laid  down  in  Council  Regulation  (EC)  No 
3285/94 of 22 December 1994 on the common rules for imports3, Council Regulation 
(EEC)  No  2603/69  of  20  December  1969  establishing  common  rules  for  exports4, 
Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped imports from countries not members of the European Community5 or, as the 
case  may  be  Council  Regulation  (EC)  No  2026/97  of  6  October  1997  on  protection 
against subsidized imports from countries not members of the European Community6. 

(6)  Where a Member State provides information to the Commission on a possible fraud or 
failure to provide administrative cooperation, the relevant community legislation shall 
apply, in particular Council Regulation (EC) No 515/97 of 13 March 1997 on mutual 
assistance  between  the  administrative  authorities  of  the  Member  States  and 
cooperation between the latter and the Commission to ensure the correct application of 
the law on customs and agricultural matters7. 

(7) 

(8) 

For  the  purposes  of  implementing  the  relevant  provisions  of  this  Regulation  the 
Commission  should  be  assisted  by  the  Customs  Code  Committee  established  by 
Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the 
Community Customs Code8. 

The measures necessary for the implementation of this Regulation should be adopted 
in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the 
procedures for the exercise of implementing powers conferred on the Commission9, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Subject matter 

This  Regulation  lays  down  certain  procedures  for  the  adoption  of  detailed  rules  for  the 
implementation of certain provisions of the Stabilisation and Association Agreement between 
the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of 
Montenegro,  of  the  other  part,  (hereinafter  referred  to  as  ‘SAA’),  and  of  the  Interim 
Agreement on trade and trade-related matters between the European Community, of the one 
part,  and  the  Republic  of  Montenegro,  of  the  other  part  (hereinafter  referred  to  as  'Interim 
Agreement'). 

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OJ L 349, 31.12.1994, p. 53. Regulation as last amended by Regulation (EC) No 2200/2004 (OJ L 374, 
22.12.2004, p. 1). 
OJ L 324, 27.12.1969, p. 25. Regulation as last amended by Regulation (EEC) No 3918/91 (OJ L 372, 
31.12.1991, p. 31). 
OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2117/2005  (OJ  L  340, 
23.12.2005, p. 17). 
OJ  L  288,  21.10.1997,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  461/2004  (OJ  L  77, 
13.3.2004, p. 12). 
OJ L 82, 22.3.1997, p. 1. 
OJ L 302, 19.10.1992, p. 1. Regulation as last amended by Regulation (EC) No 648/2005 (OJ L 117, 
4.5.2005, p. 13). 
OJ L 184, 17.7.99, p.23 

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Article 2 

Concessions for fish and fishery products 

Detailed rules on the implementation of Article 14 of the Interim Agreement, and thereafter 
Article  29  of  the  SAA,  concerning  the  tariff  quotas  for  fish  and  fishery  products,  shall  be 
adopted by the Commission in accordance with the management procedure set out in Article 
12(2).  

Article 3 

Tariff reductions 

1. Subject to paragraph 2, rates of preferential duty shall be rounded down to the first decimal 
place. 

2. Where the result of calculating the rate of the preferential duty in application of paragraph 1 
is one of the following, the preferential rate shall be considered a full exemption: 

(a) 1 % or less in the case of ad valorem duties, or 

(b) EUR 1 or less per individual amount in the specific duties. 

Article 4 

Technical adaptations 

Amendments and technical adaptations to the provisions adopted pursuant to this Regulation 
rendered  necessary  by  changes  to  the  Combined  Nomenclature  codes  and  to  the  TARIC 
subdivisions  or  arising  from  the  conclusion  of  new  or  modified  Agreements,  Protocols, 
Exchanges of Letters or other acts between the Community and the Republic of Montenegro, 
shall be adopted in accordance with the procedure set out in Article 12(2). 

Article 5 

General safeguard clause 

Without prejudice to Article 7, where the Community needs to take a measure as provided for 
in  Article  26  of  the  Interim  Agreement,  and  thereafter  Article  41  of  the  SAA,  it  shall  be 
adopted in accordance with the conditions and procedures laid down in Regulation (EC) No 
3285/94,  unless  otherwise  specified  in  Article  26  of  the  Interim  Agreement,  and  thereafter 
Article 41 of the SAA.  

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Article 6 

Shortage clause 

Without prejudice to Article 7, where the Community needs to take a measure as provided for 
in  Article  27  of  the  Interim  Agreement,  and  thereafter  Article  42  of  the  SAA,  it  shall  be 
adopted in accordance with the procedures laid down in Regulation (EEC) No 2603/69. 

Article 7 

Exceptional and critical circumstances 

Where  exceptional  and  critical  circumstances  arise  within  the  meaning  of  Articles  26(5)(b) 
and 27(4) of the Interim Agreement , and thereafter Article 41(5)(b) and 42(4) of the SAA, 
the Commission may take immediate measures as provided for in Articles 26 and 27 of the 
Interim Agreement, and thereafter Article 41 and 42 of the SAA. 

If  the  Commission  receives  a  request  from  a  Member  State,  it  shall  take  a  decision  thereon 
within five working days of receipt of the request.  

The Commission shall notify the Council of its decision. 

Any Member State may refer the Commission’s decision to the Council within ten working 
days of receiving notification of the decision. 

The Council, acting by a qualified majority, may take a different decision within two months. 

Article 8 

Safeguard clause for agricultural and fishery products 

1.  Notwithstanding  the  procedures  provided  for  in  Articles  5  and  6,  where  the  Community 
needs  to  take  a  safeguard  measure  as  provided  in  Article  26  of  the  Interim  Agreement  and 
thereafter  Article  41  of  the  SAA  concerning  agricultural  and  fishery  products,  the 
Commission shall, at the request of a Member State or on its own initiative, decide upon the 
necessary  measures  after,  where  applicable,  having  had  recourse  to  the  referral  procedure 
provided for in Article 26 of the Interim Agreement and thereafter Article 41 of the SAA.  

If the Commission receives a request from a Member State, it shall take a decision thereon: 

(a) within three working days following the receipt of a request, where the referral procedure 
provided for in Article 26 of the Interim Agreement and thereafter Article 41 of the SAA does 
not apply; or 

(b) within three days of the end of the thirty days period referred to in Article 26(5)(a) of the 
Interim Agreement and thereafter in Article 41(5)(a) of the SAA where the referral procedure 
provided  for  in  Article  26  of  the  Interim  Agreement  and  thereafter  Article  41  of  the  SAA 
applies. 

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The Commission shall notify the Council of the measures it decided. 

2. Measures decided  on by the  Commission pursuant to paragraph 1 may be referred  to  the 
Council  by  any  Member  State  within  three  working  days  of  the  date  on  which  they  were 
notified. The Council shall meet without delay. It may, acting by qualified majority, amend or 
repeal  the  measures  in  question  within  one  month  following  the  date  on  which  they  were 
referred to the Council. 

Article 9 

Dumping and subsidy 

In  the  event  of  a  practice  which  is  liable  to  warrant  application  by  the  Community  of  the 
measures provided for in Article 25(2) of the Interim Agreement, and thereafter Article 40(2) 
of the SAA, the introduction of anti-dumping and/or countervailing measures shall be decided 
upon  in  accordance  with  the  provisions  laid  down  in,  respectively,  Regulation  (EC)  No 
384/96 and/or Regulation (EC) No 2026/97. 

Article 10  

Competition 

1. In the event of a practice that may justify application by the Community of the measures 
provided for in Article 38 of the Interim Agreement, and thereafter Article 73 of the SAA, the 
Commission  shall,  after  examining  the  case,  on  its  own  initiative  or  on  the  request  of  a 
Member State, decide whether such practice is compatible with the Agreement.  

The measures provided for in Article 38(10) of the interim Agreement, and thereafter Article 
73(10) of the SAA, shall be adopted in the cases of aid in accordance with the procedures laid 
down in Regulation (EC) No 2026/97 and in the other cases in accordance with the procedure 
laid down in Article 133 of the Treaty establishing the European Community. 

2. In the event of a practice that may cause measures to be applied to the Community by the 
Republic of Montenegro on the basis of Article 38 of the Interim Agreement, and thereafter 
Article  73  of  the  SAA,  the  Commission  shall,  after  examining  the  case,  decide  whether  the 
practice is compatible with the principles set out in the Interim Agreement, and thereafter the 
SAA. Where necessary, it shall take appropriate decisions on the basis of criteria which result 
from the application of Articles 81, 82 and 87 of the Treaty. 

Article 11 

Fraud or failure to provide administrative co-operation 

Where  the  Commission,  on  the  basis  of  information  provided  by  a  Member  State  or  on  its 
own initiative, finds that the conditions laid down in Article 31 of the Interim Agreement and 
thereafter in Article 46 of the SAA are fulfilled, it shall, without undue delay: 

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(a) inform the Council; and 

(b) notify the Interim Committee, and thereafter the Stabilisation and Association Committee, 
of its finding together with the objective information, and enter into consultations within the 
Interim Committee, and thereafter the Stabilisation and Association Committee. 

Any publication under Article 31 (5) of the Interim Agreement, and thereafter in Article 46 
(5)  of  the  SAA,  shall  be  done  by  the  Commission  in  the  Official  Journal  of  the  European 
Union. 

The  Commission  may  decide,  in  accordance  with  the  advisory  procedure  set  out  in  Article 
12(3), to suspend temporarily the relevant preferential treatment of the products as provided 
for in Article 31(4) of the Interim Agreement, and thereafter Article 46(4) of the SAA. 

Article 12 

Committee 

1. The Commission shall be assisted by the Customs Code Committee set up by Article 248a 
of Regulation (EEC) No 2913/92. 

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall 
apply.  The  period  laid  down  in  Article  4(3)  of  Decision  1999/468/EC  shall  be  set  at  three 
months. 

3. Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall 
apply. 

Article 13 

Notification 

The Commission, acting on behalf of the Community, shall be responsible for notification to 
the  Interim  Committee,  and  thereafter  the  Stabilisation  and  Association  Council  and  the 
Stabilisation and Association Committee, respectively, as required by the Interim Agreement 
or the SAA. 

Article 14 

Entry into force  

This Regulation shall enter into force on the 20th day following its publication in the Official 
Journal of the European Union. 

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

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Done at Brussels,  

For the Council 
The President 

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